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on Environmental Economics |
| By: | Tripathi, Sabyasachi |
| Abstract: | This study assesses the impact of disasters and climate change on poverty and inequality in India from 1900 to 2018. Country level analysis shows that natural disasters, mainly flood, is increasing over time. Almost 41% of the total deaths in the period 1900–2018 occurred between 1991and 2018 due to natural disasters. Climate change variables show a whopping 545% increase in the CO2 emissions, 7% increase in the mean temperature, and a mammoth 835% increase in annual rainfall from 1960 to 2014. Poverty figures show that there is a 23.4% decline in poverty from 1993–94 to 2011–12. Inequality in India has increased from 0.33 in 1973–74 to 0.36 to 2011–12. The calculated correlation values show that the rate of poverty is negatively associated with CO2 emissions, annual mean temperature, and annual rainfall. A state-level analysis shows that the correlation between rainfall and inequality is positive. Statewise panel data model analysis from the period of 2004–05 to 2011–12 shows that natural disasters and climate change, which are measured by the change in rainfall, has a positive effect on state-level poverty and inequality in India. Finally, we suggest that eco-friendly economic growth strategies and redistributive policies are essential for sustainable economic growth in India. |
| Keywords: | Disasters, climate change, poverty, inequality, India |
| JEL: | D63 I32 Q53 Q54 |
| Date: | 2019–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:94132&r=all |
| By: | Suzi Kerr (Motu Economic and Public Policy Research); Juan-Pablo Montero (Pontificia Universidad Católica de Chile); Ruben Lubowski (Environmental Defense Fund); Angela Cadena (Universidad de los Andes); Mario Londoño (Universidad de los Andes); Soffia Alarcon (Carbon Trust); Oscar Rodriguez (Econometría) |
| Abstract: | The primary objective of a Colombian ETS would be to support the country to achieve its climate targets as defined in its Nationally Determined Contribution (NDC): a 20 - 30% reduction in GHG emissions compared to the business as usual scenario by 2030. An ETS, like a carbon tax (which could be used at the same time), can also raise revenue. Neither of these pricing policies constitutes a complete climate mitigation policy. On 27 July 2018, Colombia adopted a climate law, which outlines provisions for the establishment of a National Program of Greenhouse Gas Tradable Emission Quotas. This makes Colombia the second country in Latin America (joining Mexico) to enact legislation for what is likely to become a national Emissions Trading System (ETS). Colombia also already has a carbon tax that covers many fossil fuels and an offset system that can be used instead of paying this tax. This paper presents a working model for what an ETS could look like in Colombia and was part of a larger project, funded by the World Bank´s Partnership for Market Readiness with support from the Colombian government. While the working model in this paper was designed specifically for Colombia, taking into account its GHG emissions profile and a variety of contextual parameters, many of its design lessons extend to other countries and/or regions. We designed this model with the aim of including all sectors and covering nearly all the country´s emissions. |
| Keywords: | Emissions trading, climate change, Colombia, global warming, agriculture, forestry, energy |
| JEL: | Q15 Q28 Q54 Q58 O13 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:19_06&r=all |
| By: | Nordin, Ida; Wilhelmsson, Fredrik; Jansson, Torbjörn; Fellmann, Thomas; Barreiro-Hurle, Jesús; Himics, Mihaly |
| Abstract: | There is concern that unilateral climate action in the EU agricultural sector may cause higher emissions abroad (i.e. emission leakage) and harm the competitiveness of the EU´s agricultural sector. Applying the CAPRI model, this paper assesses the potential for border carbon adjustments (BCA) in the form of import tariffs to limit the leakage of emissions and preserve the competitiveness of the EU agricultural sector. Our results show that even though BCA reduces emission leakage, 92 % of the emission reduction in the EU is still offset by emission increases outside the EU. What limits the effectiveness of the investigated BCA measures is that these measures are unilateral, and thus they only adjust for the reduced competitiveness at the EU internal market, whereas EU exports are still largely replaced by commodities produced in less GHG-efficient countries. Therefore, BCA alone cannot solve the high risk of emission leakage in the agri-food sector as a consequence of unilateral EU climate action. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, International Relations/Trade |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:290209&r=all |
| By: | Reynaert, Mathias |
| Abstract: | Emission standards are a major policy tool to reduce greenhouse gas emissions from transportation. The welfare effects from this type of regulation depend on how firms choose to abate emissions, i.e., by sales-mixing (changing prices), by downsizing (releasing smaller cars), by technology adoption or by gaming emission tests. Using panel data covering 1998-2011, I find that the introduction of a EU-wide emission standard coincides with a 14% drop in emission ratings. I find that this drop is fully explained by technology adoption and gaming and not by sales mixing or downsizing. I estimate a structural model to find that the regulation missed its emission target and was not welfare improving. Abatement with sales mixing would have reduced emissions, but at high costs. The political environment in the EU shaped the design and weak enforcement of the regulation and explains the choices for abatement by technology adoption and gaming. |
| Keywords: | automobiles; Carbon Emissions; compliance; Environmental Regulation; fuel economy |
| JEL: | L5 Q5 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13756&r=all |
| By: | Edward J. Balistreri (Center for Agricultural and Rural Development (CARD)); Daniel T. Kaffine; Hidemichi Yonezawa |
| Abstract: | A country choosing to adopt border carbon adjustments based on embodied emissions is motivated by both environmental and strategic incentives. We argue that the strategic component is inconsistent with commitments under the General Agreement on Tariffs and Trade (GATT). We extend the theory of border adjustments to neutralize the strategic incentive, and consider the remaining environmental incentive in a simplified structure. The theory supports border adjustments on carbon content that are below the domestic carbon price, because price signals sent through border adjustments inadvertently encourage consumption of emissions intensive goods in unregulated regions. The theoretic intuition is supported in our applied numeric simulations. Countries imposing border adjustments at the domestic carbon price will be extracting rents from unregulated regions at the expense of efficient environmental policy and consistency with international trade law. JEL classifications: F13, F18, Q54, Q56 Keywords: climate policy, border tax adjustments, carbon leakage, trade and carbon taxes. |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:19-wp591&r=all |
| By: | Simplice A. Asongu (Yaoundé/Cameroon); Jacinta C. Nwachukwu (Preston,United Kingdom); Chris Pyke (Preston, United Kingdom) |
| Abstract: | This study examines how information and communication technology (ICT) could be employed to dampen the potentially damaging effects of environmental degradation in order to promote inclusive human development in a panel of 44 Sub-Saharan African countries. ICT is captured with internet and mobile phone penetration rates whereas environmental degradation is measured in terms of CO2 emissions per capita and CO2 intensity. The empirical evidence is based on Fixed Effects and Tobit regressions using data from 2000-2012. In order to increase the policy relevance of this study, the dataset is decomposed into fundamental characteristics of inclusive development and environmental degradation based on income levels (Low income versus (vs.) Middle income); legal origins (English Common law vs. French Civil law); religious domination (Christianity vs. Islam); openness to sea (Landlocked vs. Coastal); resource-wealth (Oil-rich vs. Oil-poor) and political stability (Stable vs. Unstable). Baseline findings broadly show that improvement in both of measures of ICT would significantly diminish the possibly harmful effect of CO2 emissions on inclusive human development. When the analysis is extended with the abovementioned fundamental characteristics, we observe that the moderating influence of both our ICT variables on CO2 emissions is higher in the group of English Common law, Middle income and Oil-wealthy countries than in the French Civil law, Low income countries and Oil-poor countries respectively. Theoretical and practical policy implications are discussed. |
| Keywords: | CO2 emissions; ICT; Economic development; Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:18/037&r=all |
| By: | Kaiser, Alexander; Schaffer, Axel; McCormack, Michele; Buckley, Cathal |
| Abstract: | Increasing agricultural production efficiency is a common economic strategy for dealing with the conflict of growing demands and environmental pressures. The application of Nitrogen is exemplary for this conflict, boosting yields on the one hand, while having negative impacts on soil and surrounding ecosystems, such as eutrophication. An all-things-considered analysis of progress in productivity must therefore account for environmental pressures as well. In this paper we apply the Malmquist-Luenberger index, a non-parametric measure of productivity, which allows for the inclusion of undesirable outputs into efficiency measurement. We then compare it to the standard Malmquist Productivity Index to assess if increasing eco-efficiency is a suitable strategy towards sustainable agriculture. The empirical analysis, based on NFS Irish farm level data from 2006 to 2016, shows an increasing trend both in efficiency and in eco-efficiency, with differences in technological change and among farm types indicating a future potential for dairy farms to increase eco-efficiency. |
| Keywords: | Agricultural and Food Policy, International Development |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289578&r=all |
| By: | Simplice A. Asongu (Yaoundé/Cameroon) |
| Abstract: | We provide policy-relevant critical masses beyond which, increasing CO2 emissions negatively affects inclusive human development. This study examines how increasing CO2 emissions affects inclusive human development in 44 Sub-Saharan African countries for the period 2000-2012. The empirical evidence is based on Fixed Effects and Tobit regressions. In order to increase the policy relevance of this study, the dataset is decomposed into fundamental characteristics of inclusive development and environmental degradation based on income levels (Low income versus (vs.) Middle income); legal origins (English Common law vs. French Civil law); religious domination (Christianity vs. Islam); openness to sea (Landlocked vs. Coastal); resource-wealth (Oil-rich vs. Oil-poor) and political stability (Stable vs. Unstable). All computed thresholds are within policy range. Hence, above these thresholds, CO2 emissions negatively affect inclusive human development. |
| Keywords: | CO2 emissions; Economic development; Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:18/023&r=all |
| By: | Alfani, Federica; Arslan, Aslihan; McCarthy, Nancy; Cavatassi, Romina; Sitko, Nicholas J. |
| Abstract: | This paper examines the impacts of the El Nino during the 2015/2016 season on maize productivity and income in rural Zambia. The analysis aims at identifying whether and how sustainable land management (SLM) practices and livelihood diversification strategies have contributed to moderate the impacts of such a weather shock. The analysis was conducted using a specifically designed survey called the El Nino Impact Assessment Survey (ENIAS), which is combined with the 2015 wave of the Rural Agricultural Livelihoods Surveys (RALS), as well as high resolution rainfall data from the Africa Rainfall Climatology version 2 (ARC2). This unique, integrated data set provides an opportunity to understand the impacts of shocks like El Nino that are expected to get more frequent and severe in Zambia, as well as understand the agricultural practices and livelihood strategies that can buffer household production and welfare from the impacts of such shocks to drive policy recommendations. Results show that households affected by the drought experienced a decrease in maize yield by around 20 percent, as well as a reduction in income up to 37 percent, all else equal. Practices that moderated the impact of the drought included livestock diversification, income diversification, and the adoption of agro-forestry. Interestingly, the use of minimum soil disturbance was not effective in moderating the yield and income effects of the drought. Policies to support livestock sector development, agroforestry adoption, and off -farm diversification should be prioritized as effective drought resiliency strategies in Zambia. |
| Keywords: | Crop Production/Industries, Risk and Uncertainty |
| Date: | 2019–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:faoaes:288949&r=all |
| By: | Danley, Brian (CERE - the Center for Environmental and Resource Economics) |
| Abstract: | The extensive literature on non-industrial private forest owner typologies often assumes that different forest owner types will respond to different policy instruments according to shared forest ownership objectives. Forest owner typologies using principal component analysis and subsequent k-means clustering techniques are now prolific. The surprisingly little empirical work linking forest owner objectives typologies with forest owner opinions or experiences of different policy instruments, however, shows ambiguous support for recommended targeting efforts. This study uses standard tools of analysis to investigate the relationship between private forest owners’ ownership objectives and their opinions on forest conservation policy instruments. Results show some statistically significant, but in absolute terms weak relationships between ownership objectives and Sweden’s command and control green tree retention measures, participation in voluntary forest stewardship certification, acceptance of a hypothetical financial incentive, and overall interest in taking more environmentally beneficial forest management measures. These results suggest the benefits of targeting different kinds of instruments to different kinds of ownership objectives may be limited. |
| Keywords: | forest policy; k-means cluster analysis; non-industrial private forest owners |
| JEL: | C38 Q28 Q58 |
| Date: | 2019–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2019_007&r=all |
| By: | Conti, Valentina; Sitko, Nicholas J.; Ignaciuk, Ada |
| Abstract: | This paper examines the impact of the harsh 2012 winter on livestock herding households in Kyrgyzstan and identifies policy options to increase household resilience to such shocks. While existing studies mostly focus on rainfall shocks in tropical or dry climate areas, this analysis examines the exceptionally harsh winter that hit Kyrgyzstan in 2012, which resulted in the death of 25 000 animals. Using a unique household panel survey, merged with observed temperature data, the analysis finds that, on average, the negative effects of the winter shock on household welfare are significant and persistent over time, leading to a 5 percent and a 8 percent decrease in households' food consumption expenditure in the short- (2011'2013) and medium-run (2011'2016), respectively. When disaggregating by income quantiles, the evidence shows that negative impact is concentrated in the upper quantiles of the welfare distribution. Several policy options are identified as effective in mitigating the negative welfare impacts of the weather shock. First, supporting households to restock their herds following weather shocks is found to significantly improve medium-term welfare by 10 percent relative to those that did not restock. Restocking efforts can be addressed in a holistic manner that takes into account immediate household needs, while simultaneously building long-term resilience in the livestock sector. This may include mitigating animal losses through the development of local forage markets that increase the availability of winter forage, combined with efforts to improve the genetic pool of livestock species through breeding programmes that select for resiliency traits. Second, results show that households living in regions with higher access to public veterinary services had significantly better welfare outcomes following the winter shock. Improvements of veterinary services and strengthening community-based organizations focusing on livestock and pasture development may help herding households to cope with weather shocks. |
| Keywords: | Farm Management, Livestock Production/Industries |
| Date: | 2018–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:faoaes:288951&r=all |
| By: | Reynaert, Mathias; Sallee, James |
| Abstract: | Firms sometimes comply with externality-correcting policies by gaming the measure that determines policy. This harms consumers by eroding information, but it benefits them when cost savings are passed through into prices. We develop a model that highlights this tension and use it to analyze gaming of automobile carbon emission ratings in the EU. We document startling increases in gaming using novel data. We then analyze the effects of gaming in calibrated simulations. Over a wide range of parameters, we find that pass through substantially outweighs information distortions; on net, consumers benefit from gaming, even when they are fooled by it. |
| Keywords: | automobiles; Carbon Emissions; corrective taxation; Environmental Regulation; fuel economy; Gaming; Goodhart's Law |
| JEL: | H2 L5 Q5 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13755&r=all |
| By: | Quitzow, Rainer; Thielges, Sonja; Goldthau, Andreas; Helgenberger, Sebastian; Mbungu, Grace |
| Abstract: | International cooperation in support of a global energy transition is on the rise. Initiatives and venues for multilateral cooperation are complemented by growing bilateral engagement to foster international lesson-drawing and exchange. Official development assistance (ODA) in the energy sector is increasingly being directed to renewable energy sources. Despite these promising developments, it is widely acknowledged that investment towards achieving the Sustainable Development Goal (SDG) 7 on clean and affordable energy is insufficient. A recent report by SE4ALL estimates annual investments in support of SDG7 at USD 30 billion. This is well below the USD 52 billion that would be needed (SE4ALL and Climate Policy Initiative, Energizing finance: Understanding the landscape 2018, 2018). Moreover, investment in clean energy remains heavily concentrated in a small number of frontrunner countries. In terms of technologies, investments in clean energy still overwhelmingly target grid-connected electricity generation. Despite their proven ability to provide rapid and affordable access to clean energy in many country contexts, off-grid technologies account for only 1.3 percent of investments (SE4ALL and Climate Policy Initiative, 2018). Worryingly, a significant share of international public sector financing, most notably by export-credit agencies, is still allocated to coal and other fossil-based technologies. Against this background, this paper makes three recommendations for strengthening international cooperation in support of a global energy transition: 1) Promote investment in clean energy and end support for coal-based energy infrastructure. 2) Tackle the socio-economic dimension of the global energy transition. 3) Provide early market support to promote challenge-based energy innovation. |
| Keywords: | public policy,climate,energy,innovation,development,international political economy |
| JEL: | F5 O3 O38 Q01 Q4 Q48 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201937&r=all |
| By: | Dybikowska, Adrianna; Graczyk, Magdalena |
| Abstract: | Functioning of modern agriculture and farms is dominated by increasing demand for energy. Meeting this demand is, however, a strategic problem which affects energy, food and environmental safety as well as operating costs of commercial farms and rural households. This paper discusses the problems of implementation of eco-innovation on the example of renewable energy sources in the Polish farm sector. The paper analyses energy intensity and structure of energy consumption in the Polish agricultural sector. It discusses the structure of energy consumption, taking into account rural areas, in Poland and Europe as well as analyzes energy costs in various types of agricultural production. Moreover, the paper assesses the potential of renewable energy sources in the Polish agriculture and presents barriers connected to their use. |
| Keywords: | Agribusiness, Farm Management, Resource /Energy Economics and Policy |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:289465&r=all |
| By: | Sosso Feindouno (FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Patrick Guillaumont (FERDI - Fondation pour les Etudes et Recherches sur le Développement International) |
| Abstract: | Many donors, international agencies and national policy makers, have called for the development of vulnerability to climate change indices which would make it possible to prioritize the recipients of financial support for adaptation to climate change. Indeed, despite the complexity of the phenomenon, there has been a proliferation of indices of vulnerability to climate change. However, these indices do not break down what is due to exogenous factors and what is due to the factors linked to policy (which mainly have an impact on resilience). What is needed for international policy design is a measure of vulnerability independent of domestic policy. |
| Date: | 2019–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02128487&r=all |
| By: | Alexander, Diane (Federal Reserve Bank of Chicago); Schwandt, Hannes |
| Abstract: | Car exhaust is a major source of air pollution, but little is known about its impacts on population health. We exploit the dispersion of emissions-cheating diesel cars across the United States from 2008–2015 as a natural experiment to measure the health impact of car pollution—each cheating diesel car secretly polluted up to 150 times as much as gasoline cars. Using the universe of vehicle registrations, we demonstrate that a 10 percent cheating-induced increase in car exhaust increases fine particulate matter by 2 percent and rates of low birth weight and acute asthma attacks among children by 1.9 and 8.0 percent, respectively. These health impacts occur at all pollution levels and across the entire socioeconomic spectrum. |
| Keywords: | car pollution, health, emissions-cheating |
| JEL: | I10 I14 K32 J13 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12427&r=all |
| By: | Gagliarducci, Stefano; Paserman, M. Daniele; Patacchini, Eleonora |
| Abstract: | This paper studies how politicians and voters respond to new information on the threats of climate change. Using data on the universe of federal disaster declarations between 1989 and 2014, we document that congress members from districts hit by a hurricane are more likely to support bills promoting more environmental regulation and control in the year after the disaster. The response to hurricanes does not seem to be driven by logrolling behavior or lobbysts' pressure. The change in legislative agenda is persistent over time, and it is associated with an electoral penalty in the following elections. The response is mainly promoted by representatives in safe districts, those with more experience, and those with strong pro-environment records. Our evidence thus reveals that natural disasters may trigger a permanent change in politicians' beliefs, but only those with a sufficient electoral strength or with strong ideologies are willing to engage in promoting policies with short-run costs and long-run benefits. |
| Keywords: | hurricanes; legislative activity; U.S. Congress |
| JEL: | D70 D72 H50 Q54 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13747&r=all |
| By: | Valentina De Marchi (Department of Economics and Management ‘Marco Fanno’, University of Padova); Eleonora Di Maria (Department of Economics and Management ‘Marco Fanno’, University of Padova) |
| Abstract: | Environmental sustainability has increased its relevance within business strategies and innovation in particular while circular economy (CE) is receiving growing attention as a new paradigm of production and value creation. Low attention has been given to explore the relationship between digital transformation of business processes via industry 4.0 technologies and CE strategies. On the one hand, digital manufacturing supports efficient use and control of resources. On the other hand, such technologies improve product life cycle management (through IoT or big data) and new business models (product-as-a-service). The paper explores the relationship between environmental sustainability strategies, technological investments in industry 4.0 and green outcomes, based on unique data gathered through an original 2017 survey on a sample of more than 1,100 Italian firms. Results show the positive relationship between green drivers and green outcomes for firms adopting industry 4.0 technologies, both in terms of eco-efficiency and circularity. Investing in digital manufacturing, smart products, and higher variety of 4.0s technologies characterize adopters with green outcomes. Having a clear green strategy, ICT propensity, domestic production, and low customer dependency are factors positively related with green outcomes for adopters. |
| Keywords: | digital manufacturing, industry 4.0, circular economy, sustainability, eco-efficiency |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0231&r=all |
| By: | Broberg, Thomas (CERE - the Center for Environmental and Resource Economics); Melkamu Daniel , Aemiro (CERE - the Center for Environmental and Resource Economics); Persson, Lars (CERE - the Center for Environmental and Resource Economics) |
| Abstract: | In this paper we investigate if a pro-environmental framing influences households' stated willingness to accept restrictions on their electricity use. We use a split-sample choice experiment (CE) and ask respondents to choose between their current electricity contract and hypothetical contracts featuring various load controls and a monetary compensation. Our results indicate that the pro-environmental framing have little impact on the respondents' choices. We observe a significant framing effect on choices and marginal willingness-to-accept (MWTA) for only a few contract attributes. The results further suggest that there is no significant framing effect among households that engage in different pro-environmental activities. |
| Keywords: | Choice experiment; Demand response; Electricity contract; Load management; Pro-environmental framing; Willingness to accept |
| JEL: | C25 D83 Q51 Q54 |
| Date: | 2019–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2019_008&r=all |
| By: | Turvey, Calum G.; Shee, Apurba; Marr, Ana |
| Abstract: | Climate risk financing programs in agriculture have caught the attention of researchers and policy makers over the last decade. Weather index insurance has emerged as a promising market-based risk financing mechanism. However, to develop a suitable weather index insurance mechanism it is essential to incorporate the distribution of underlying weather and climate risks to a specific event model that can minimize intra-seasonal basis risk. In this paper we investigate the erratic nature of rainfall patterns in Kenya using CHIRPS rainfall data from 1983-2017. We find that the patterns of rainfall are fractional, both erratic and persistent which is consistent with the Noah and Joseph effects well known in mathematics. The erratic nature of rainfall emerges from the breakdown of the convergence to a normal distribution. Instead we find that the distribution about the average is approximately lognormal, with an almost 50% higher chance of deficit rainfall below the mean versus adequate rainfall above the mean. We find that the rainfall patterns obey Hurst law and the measured Hurst coefficients for seasonal rainfall pattern across all years range from a low of 0.137 to a high above 0.685. To incorporate the erratic and persistent nature of seasonal rainfall, we develop a new approach to weather index insurance based upon the accumulated rainfall in any 21-day period falling below 60% of the long-term average for that same 21-day period. We argue that this approach is more satisfactory to matching drought conditions within and between various phenological stages of growth. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289580&r=all |
| By: | Dennis Guignet; Matthew T. Heberling; Michael Papenfus; Olivia Griot; Ben Holland |
| Keywords: | benefit transfer, hedonic, meta-analysis, property value, water pollution, water quality |
| JEL: | Q51 Q53 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201905&r=all |
| By: | Dakshina De Silva; Robert McComb; Anita Schiller; Aurelie Slechten |
| Abstract: | We consider the relationship between the location choices of potentially polluting firms and local income. Unlike previous research in the area of economic justice, we distinguish between pollution potential and actual releases of toxic substances in the locality. We explore the relationship between profit maximizing behavior of potentially polluting firms in their choice of both location and expenditures to influence the likelihood of toxic releases and their expected financial costs. We proxy the expenditures on prudential behavior by observing the co-localization of waste remediation activities. Evidence supports the conclusion that firms behave rationally in managing risk of toxic release. |
| Keywords: | EKC, Environmental Justice, Agglomeration, Entry and Exit |
| JEL: | Q2 L6 R1 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:266151372&r=all |
| By: | Ervin, Paul A.; Gayoso de Ervin, Lyliana |
| Abstract: | This working paper analyses the effect climate change is expected to have on agricultural productivity, caloric consumption, and vulnerability to food insecurity of household agricultural producers in Paraguay. Our results suggest that increasing temperatures and reduced precipitation will reduce agricultural productivity and caloric consumption, and increase vulnerability to food insecurity. Specifically, a 1 percent increase in average maximum temperatures is associated with a 5 percent reduction in agricultural productivity. A 5 percent reduction in agricultural productivity translates into nearly a 1 percent reduction in caloric consumption. Vulnerability to food insecurity in Paraguay is expected to increase by 28 percentage points by 2100 due to climate change, increasing fastest in areas where temperatures are increasing and rainfall is diminishing. We explore a number of interventions that policy makers can pursue to limit the impact of climate change on food insecurity. |
| Keywords: | Consumer/Household Economics, Food Security and Poverty, Risk and Uncertainty |
| Date: | 2019–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:faoaes:288947&r=all |
| By: | Johansson, Per-Olov (CERE - the Center for Environmental and Resource Economics); Kriström, Bengt (CERE - the Center for Environmental and Resource Economics) |
| Abstract: | In this note we discuss how a cost–benefit analysis could be formulated in a second-best world where lump-sum taxation is not available. The question is how the government’s budget is balanced. Different options are available. A value added tax or an income tax or a profit tax could be adjusted so as to balance the budget. Alternatively, expenditures on public or private goods are displaced. A variation occurs if the government has a policy target. For example, a certain number of hectares of valuable forest areas should be preserved. Then, the central part of a cost–benefit analysis is to compare the costeffectiveness of different policy instruments that can be used to achieve the target. However, there are also deadweight losses provided there are distortionary taxes. Such considerations also opens up for a broader formulation of the valuation question in willingness-to-pay experiments than one based on lump-sum taxation. |
| Keywords: | Cost–effectiveness; cost–benefit analysis; second best; policy targets; deadweight losses; forestry; conservation; contingent valuation; choice experiments. |
| JEL: | H41 I39 Q23 Q57 |
| Date: | 2019–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2019_006&r=all |
| By: | Hayden, Anne; Adenaeuer, Lucie; Jansson, Torbjorn; Hoglind, Lisa; Breen, James |
| Abstract: | The Luxembourg agreement of 2005 marked a new direction for EU agriculture with the decoupling of direct support payments for production. Under the CAP reform of 2013, Member States had the option to retain an element of coupled support for agriculture. Building on a previous study from Jansson et al. (2018), this study analyses the regional effects for beef production resulting from a redistribution of voluntary coupled supports (VCS) through area payments in the national budgets. The redistribution of VCS payments is projected to result in a modest reduction in the income from beef production, the EU beef herd size as well as the total Greenhouse Gas (GHG) Emissions form EU beef production. However, these impacts vary across EU regions with some regions marginally increasing their beef production levels while other regions are projected to significantly reduce their beef meat activities. Especially Member States which had retained some form of VCS, a reduction in beef herd size and income is likely while those countries that had opted to fully decouple payments in 2005 are projected to show a slight increase in herd size and income. Generally, this leads to a decrease of the total GHG emissions, yet, an increase in GHG emission per livestock unit is seen due to a change in herd composition, production or feed intensity. From the results, it can be inferred that VCS payments for the beef sector have the potential to encourage beef production in regions where it may be less profitable to do so (negative income before the redistribution of VCS in the national budgets). Therefore, the decoupling of the remaining coupled supports within the CAP would likely lead to a minor restructuring of beef production within the EU. |
| Keywords: | Agricultural and Food Policy, Livestock Production/Industries |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289579&r=all |
| By: | Annalisa Marini (University of Exeter); Steve McCorriston (University of Exeter) |
| Abstract: | Changes in weather patterns associated with climate change can be an important determinant of commodity price volatility. In this paper, we provide new insights into this issue from two perspectives. First, by using detailed country-level precipitation data for a specific commodity (bananas), and employing a panel VAR model, we show that untypical rainfall patterns are an important influence on export prices and that the impact on export prices varies across exporters given the largely uncorrelated experience of anomalous levels of precipitation. Second, we show that source-specific rainfall patterns generate spillovers across competing exporters and these spillover effects can dominate the own-country precipitation anomaly effect. Accounting for these spillover effects is important for several reasons: (i) the aggregate impact of weather fluctuations on importers depends on the magnitude of these effects which we show to be quantitatively strong; (ii) for some exporters, the spillover effect on export prices can be a more important source of price volatility than their own experience of untypical weather; (iii) given the frequency of precipitation anomalies across all export countries, untypical variations in weather is an important source of commodity price volatility for all exporters and importers. In sum, the impact of climate-related weather events on prices is more nuanced than recent research has suggested. |
| Keywords: | Weather, Spillovers, Export Prices, Panel Vector Autoregression (PVAR) |
| JEL: | F00 C3 C5 Q1 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:1905&r=all |
| By: | Simplice A. Asongu (Yaoundé/Cameroon) |
| Abstract: | Sustainable development within the investigated context includes the ability of African countries to meet the present economic, social and environmental needs without compromising the ability of future generations to meet their own needs. A challenging contemporary policy syndrome is the lack of funding for adequate capacities and structures essential for the realisation of the post-2015 development agenda. This introductory chapter provides highlights on all chapters covered by the book in the direction of addressing the underlying policy syndrome. |
| Keywords: | finance; sustainable development; Africa |
| JEL: | B20 F35 F50 O10 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:18/021&r=all |
| By: | Seppälä, Timo; Mattila, Juri; Rajala, Risto |
| Abstract: | Abstract It is predicted that in 2030, the energy consumption of the ICT sector will be 21% of the world’s energy consumption, but will resources be enough to carry out all the digital technology development trends at the same time? Trends, such as the transition to the ecommerce, the transition of mobile services to the fifth-generation network, video streaming, online gaming and the rise of electric cars, all increase the need for both storage and computing capacity and energy as well. More broadly, the geographical location of digital resources and infrastructures has implications to country’s security of supply, for example in systems of systems development of smart traffic. The ecological effects of digitalization should also be explored through the lens of digital ecology and sustainability. |
| Keywords: | ICT, Energy efficiency, Computing capacity, Emissions trading, Security of supply |
| JEL: | O3 O33 Q4 Q5 |
| Date: | 2019–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:rif:briefs:80&r=all |
| By: | Adenuga, Adewale Henry; Davis, John; Hutchinson, George; Patton, Myles; Donnellan, Trevor |
| Abstract: | The dairy sector is an important sector in Northern Ireland being the single largest contributor to its agricultural economy. However, the sector contributes more to soil phosphorus (P) surplus compared to other agricultural sectors. Consequently, the goal of this research is to analyse the environmental technical efficiency of dairy farms making use of a novel parametric hyperbolic distance function approach. The model is able to internalise P surplus as undesirable output in the dairy production process by treating desirable and undesirable outputs asymmetrically, thereby allowing for the maximum expansion of the desirable output and an equi-proportionate contraction of the undesirable output. The stochastic production frontier model is analysed simultaneously with an inefficiency model to explain variability in efficiency scores assuming the existence of heteroskedasticity in the idiosyncratic error term. Additionally, we estimated the shadow price and pollution cost ratio of P surplus in dairy farms. Our results showed that the average environmental technical efficiency estimates for dairy farms in Northern Ireland is 0.93. Intensification resulting in increased use of concentrates feed was found to be negatively related to environmental technical efficiency. We also found that age of the farmer and share of milk output have a positive relationship with environmental technical efficiency. |
| Keywords: | Environmental Economics and Policy, Livestock Production/Industries |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289576&r=all |
| By: | Yuriko Nakao (Faculty of Business Administration, Tottori University of Environmental Studies); Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University); Kimitaka Nishitani (Research Institute for Economics and Business Administration, Kobe University) |
| Abstract: | Narrative content in sustainability reports can affect readers' impressions of a company, but there are no clear guidelines for companies on how to construct this content. This study examines narratives in sustainability reports to clarify factors that influence corporate disclosure strategies. We investigate chief executive officer (CEO) statements and environmental and social information sections in sustainability reports of Japanese companies over a two-year period. The results show that CEO statements tend to use an optimistic and ambiguous tone when social and environmental performance is poor, that stakeholders can influence the narrative tone of reporting, and that sustainability reporting approaches differ by industry. This is a novel approach to quantitative analyses on sustainability reporting narratives because it uniquely discusses the authenticity of textual expressions in sustainability reports. The results further an understanding of narratives’ credibility issues. This study demonstrates the importance of textual expressions to encourage correct interpretations of performance information. |
| Keywords: | DICTION, impression management, narratives, sustainability reporting, tone |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:kbb:dpaper:2019-01&r=all |
| By: | Hiwatari, Masato; Yamada, Daichi; Hangoma, Peter; Narita, Daiju; Mphuka, Chrispin; Chitah, Bona; Yabe, John; Nakayama, Shouta MM; Nakata, Hokuto; Choongo, Kennedy; Ishizuka, Mayumi |
| Abstract: | In this study, we aim to quantitatively assess the population-wide exposure to lead pollution in Kabwe, Zambia. While Kabwe is known as one of the most significant cases of environmental pollution in the world, the available information does not provide a representative figure on residents’ lead poisoning conditions. To obtain a representative figure, we estimate blood lead level (BLL) of the representative sample of Kabwe by combining two datasets: BLL data collected based on residents’ voluntary participation to blood sampling and socioeconomic data collected for approximately 900, randomly chosen households that represent Kabwe population. The results show that the representative mean BLL is slightly lower than the one observed in previous studies but a few times higher than the recent standard BLL of 5μg/dL above which health risks become significant. |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:hok:dpaper:338&r=all |
| By: | Luca Lo Re (International Energy Agency); Manasvini Vaidyula (OECD) |
| Abstract: | This paper provides a technical analysis of two specific unresolved issues in the negotiations of rules for Article 6 of the Paris Agreement: (i) accounting methods for single- and multi-year NDCs under Article 6.2 and (ii) the implications of a potential transition of activities and units from the Kyoto Protocol mechanisms to the Article 6.4 mechanism. The paper first describes the accounting methods under consideration in Article 6.2 discussions and highlights that different methods can have different implications for environmental integrity, particularly if used by Parties with single-year NDCs. The paper then presents different options of transition of activities and units from the Clean Development Mechanism to the Article 6.4 mechanism. The analysis highlights that a potential full transition of activities could inhibit or delay new investments in mitigation activities, and that the supply of units could be several times larger than demand in 2020, leading to a significant carry-over. |
| Date: | 2019–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaab:2019/03-en&r=all |
| By: | Özge Özdemir (PBL Netherlands Environmental Assessment Agency); Benjamin F Hobbs (The Johns Hopkins University); Marit van Hout (PBL Netherlands Environmental Assessment Agency); Paul Koutstaal (PBL Netherlands Environmental Assessment Agency) |
| Keywords: | Electricity markets, renewable policy, capacity subsidy, energy subsidy, renewable target |
| JEL: | H23 L94 Q28 Q48 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg1911&r=all |
| By: | Trivikram Dokka Venkata Satyanaraya; Herve Moulin; Indrajit Ray; Sonali Sen Gupta |
| Abstract: | Coarse correlated equilibria (CCE, Moulin and Vial, 1978) can be used to substantially improve upon the Nash equilibrium solution of the well-analysed abatement game (Barrett, 1994). We show this by computing successively the CCE with the largest total utility, the one with the highest possible abatement levels and finally, the one with maximal abatement level while maintaining at least the level of utility from the Nash outcome. |
| Keywords: | Abatement game, Coarse correlated equilibrium, Efficiency gain |
| JEL: | C72 Q52 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:266042710&r=all |
| By: | Magadán-Díaz, Marta; Sotiriadis, Marios; Rivas-García, Jesús |
| Abstract: | The main goal of this research is to determine whether the accommodation capacity and the financial performance can be considered as the main driving forces of eco-innovation in the context of Spanish hotel industry. Eco-innovation is a challenge for tourism industry, given the connection and interrelationship between environmental quality and business performance. The eco-innovation plans represent a new field of research in its infancy. This paper addresses the conceptual evolution of eco-innovation to subsequently develop an analytical framework that tentatively explores this concept and its implementation in Spanish hotel companies through two basic internal characteristics of these organizations: their business performance and their respective size, measured in terms of accommodation capacity. The case study method was applied -through documentary evidence and structured interviews- to the 10 companies leading -in terms of turnover- the national hotel offering and have a remarkable international presence. All these interviews were conducted between November 6th, 2017 and February 28th, 2018. |
| Keywords: | Eco-innovation; environmental responsibility; hospitality industry; drivers; organizational change; Spain |
| JEL: | L83 M14 Q2 |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:94090&r=all |
| By: | Koichi Futagami (Graduate School of Economics, Osaka University); Yasuhiro Nakamoto (Faculty of Informatics, Kansai University,) |
| Abstract: | We examine the effects of tax policies on pollution in a small open economy. There are two pollution causes: consumption activities of households and production activities of rms. In this setup, we examine how tax policies affect pollution and the small open economy. Considering that pollution control policies are undertaken only for temporary periods in countries, we mainly focus on duration of governments' pollution control poli- cies; that is, permanent and temporary policies. The main nding is that the government in the small open economy need to tackle pollution problems from a long-term perspective in order to decrease the level of pollution. |
| Keywords: | Pollution, Pollution control policies, Temporary and permanent policies, Small open economy |
| JEL: | F41 H21 Q52 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:1908&r=all |
| By: | Hernandez-Maskivker, Gilda; Ferrari, Sonia; Cruyt, Aurélie Nathalie J. |
| Abstract: | In the last years, there have been protests by residents against tourism in several destinations around the world. Tourists have also increasingly complained about destinations being overcrowded. At the same time, visitors are looking for more authentic experiences. Our research has been conducted in Bruges, one of the major tourist destinations in Belgium to analyse stakeholder’s perceptions of mass tourism and how destinations can ensure a more sustainable development. One of the major findings from this research is the importance of locals’ support to promote a sustainable tourism. Residents and local entrepreneurship could have a more positive attitude towards tourism if the positive impact outweighs the disadvantages of tourism. Practical and managerial implications are suggested. |
| Keywords: | mass tourism; overtourism; mature destination; sustainable tourism |
| JEL: | L83 R14 R33 |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:94223&r=all |
| By: | Le Coent, Philippe; Preget, Raphaële; Thoyer, Sophie |
| Abstract: | The economic literature on Agri-environmental Schemes (AES) largely considers that farmers participate in contracts if the payment offered is superior to their opportunity costs. Psychological and social forces may however be at play in this decision. This article analyses the role played by social norms in farmers’ decisions to enrol into AES. It develops a simple theoretical model highlighting the interplay of descriptive and injunctive norms in farmers’ utility functions. Results of this model lead us to propose few policy recommendations to counter or, in other contexts, to take advantage of the influence of social norms to increase farmers’ participation to AES. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Institutional and Behavioral Economics |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289863&r=all |
| By: | Takayama, Noriyuki |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:hit:cisdps:679&r=all |
| By: | Yang Han (Department of Electrical and Electronic Engineering, The University of Hong Kong); Victor OK Li (Department of Electrical and Electronic Engineering, The University of Hong Kong); Jacqueline CK Lam (Department of Electrical and Electronic Engineering, The University of Hong Kong); Michael Pollitt (EPRG, University of Cambridge) |
| Keywords: | Blue Sky Day (BSD), Air Quality, Beijing, Data Irregularity, Bayesian LSTM, Data Estimation |
| JEL: | C53 C63 Q53 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg1912&r=all |
| By: | De Lucia, Caterina; Pazienza, Pasquale |
| Abstract: | The 2018 European Strategy for Plastics in a Circular Economy identifies a set of actions to reduce plastic waste in the EU in the near future. To implement this strategic view appropriate policy tools need to be identified within Member Countries. The present work attempts to understand farmers’ attitudes to traditional policy tools (i.e. subsidies and tax-credits) as well as new initiatives such as pay-back mechanisms under an Extended Producer Responsibility (EPR) scheme to abate plastic waste in the agricultural sector. To achieve the above aim we consider a pilot case for the province of Foggia an area which is recognised as the largest plain of southern Italy. We consider a survey returned from 1,783 farmers and a multinomial regression model to infer on the probability to adopt the above policy tools. Key results suggest that the above policy options would be affected by the type of plastic waste generated. In particular, plastic packaging and plastic films would affect the probability to opt for a subsidy. In contrast, other types of plastic waste (e.g. anti-bird, wind-breaking, etc.) and plastic waste from exhausted oil and filters bins would favour the adoption of a tax-credit mechanism; and horticultural productions and the proximity to a collection point for waste disposal would increase the probability for farmers to see more favourable an EPR policy to contribute to plastic waste reduction. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289584&r=all |
| By: | Adenuga, Adewale Henry; Davis, John; Hutchinson, George; Patton, Myles; Donnellan, Trevor |
| Abstract: | Nitrogen (N) surplus is an important environmental issue on the island of Ireland (Northern Ireland and the Republic of Ireland), with dairy farms contributing more compared to other agricultural sectors. As a result, there has been increased demand for efficient policy measures to improve the economic and environmental performance of dairy farms in both countries. In this study, we employed the positive mathematical programming (PMP) optimization modelling framework to simulate the economic and environmental impact of two alternative agri-environmental policy instruments on different dairy farm types. Specifically, the study considers the effects of N surplus tax and agri-environmental nutrient application standard in which farms are not allowed to apply more than 170Kg of livestock N manure per hectare on dairy farms. The results of the analyses showed that the effects agri-environmental policy instruments vary across the two countries and clusters of dairy farms, resulting in clear differential effects on farm structure and N surpluses. The study concluded that in situations where the nutrient surplus is already high, as with the large farms clusters in this study, the use of manure application standards will be more effective in limiting nutrient surplus to soils compared to the use of nutrient surplus tax. |
| Keywords: | Environmental Economics and Policy, Livestock Production/Industries |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289577&r=all |
| By: | Clement Gastaud; Theophile Carniel; Jean-Michel Dalle |
| Abstract: | Thanks to the recent availability of comprehensive and detailed online databases of startup companies, it has become possible to more directly investigate startup ecosystems i.e. startup populations in specific regions. In this paper, we analyze the emergence of 20+ such ecosystems in Europe and the USA, with a specific focus on their sectoral diversity. Analyzing the sectoral landscapes of these ecosystems using a new visualization tool indeed highlights marked differences in terms of diversity, which we characterize using metrics derived from ecological sciences. Numerical simulations suggest that the emerging diversity of startup ecosystems can be explained using a simple preferential attachment model based on sectoral funding. |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1906.02455&r=all |