|
on Environmental Economics |
| By: | Dominique Desbois (ECO-PUB - Economie Publique - AgroParisTech - INRA - Institut National de la Recherche Agronomique) |
| Abstract: | Signatory States to the 2015 Paris Agreement have set a common goal of achieving carbon neutrality. According to a logic of net emissions flow adopted by several European countries, France has adopted a Climate Plan in July 2017 with a target of zero net emissions (ZEN) of greenhouse gases, at the 2050 horizon (Quinet, 2019). The introduction of an option to use offset credits from agricultural projects in the European Emissions Trading Scheme (EETS) requires the drafting of a regulation requiring the establishment of the initial level of carbon in the EU soil and verification of the amount of CO2 sequestered by eligible projects. The decision to adopt one or another of the sustainable land management alternatives should not be based solely on their respective benefits in terms of climate change mitigation but rather based on the consideration of the workshops. farm, assessing comprehensively the productivity, resource utilization and environmental impact of the productive system (Pellerin et al., 2017). |
| Abstract: | Les États signataires de l'Accord de Paris de 2015 ont fixé un objectif commun visant à atteindre la neutralité carbone. Selon une logique de flux nets d'émissions adoptée par plusieurs pays européens, la France a adopté en juillet 2017 un Plan Climat visant un objectif de zéro émission nette (ZEN) de gaz à effet de serre, à l'horizon 2050 (Quinet, 2019). L'introduction d'une option d'utilisation des crédits compensatoires provenant de projets agricoles dans le Système européen d'échange de quotas d'émission (EETS) nécessite la rédaction d'un règlement exigeant la fixation du niveau initial de carbone dans le sol de l'UE et la vérification de la quantité de CO2 séquestrée par les entreprises éligibles. projets. La décision d'adopter l'une ou l'autre des solutions de rechange en matière de gestion durable des sols ne devrait pas reposer uniquement sur leurs avantages respectifs en termes d'atténuation des changements climatiques, mais plutôt sur la prise en compte des ateliers. de l'exploitation agricole, en évaluant globalement leur productivité, l'utilisation des ressources et l'impact environnemental du système de production (Pellerin et al., 2017). |
| Keywords: | Cost,Soil,Erosion |
| Date: | 2019–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02790409&r=all |
| By: | Hintermann, Beat (University of Basel); Zarkovic, Maja (University of Basel) |
| Abstract: | Swiss climate policy consists of three regulatory instruments for greenhouse gas emissions reduction: A CO 2 levy, the Swiss Emissions Trading System (CH EHS), and an additional nonEHS" program for medium-sized plants that consists of command-and-control elements plus a sizeable abatement subsidy. Our paper informs about this tripartite climate policy, which is unique in the international context. Second, we estimate the dierential impact of the CH EHS and the nonEHS program on plants' emissions. Our empirical strategy exploits a policy change in 2013 that instituted a mandatory emissions trading system for a subset of previously regulated rms. We nd that the nonEHS outperforms the CH EHS for a minority of plants, but that on average, the two programs result in similar abatement eorts despite very dierent nancial incentives. Firms that previously engaged in abatement eorts continue to do so even after the nancial incentives were reduced by an order of magnitude. Our results suggest the presence of preferences for abatement per se, above and beyond nancial incentives. They further imply that expanding the nonEHS system at the expense of the CO 2 levy may be associated with signifcant costs but no additional emission reductions. |
| Keywords: | Climate policy, emissions tax, carbon tax, emissions trading, subsidies, command-and-control, Switzerland |
| JEL: | D22 D62 H23 H25 H32 Q52 Q54 Q58 |
| Date: | 2020–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2020/05&r=all |
| By: | Tensay Meles; L. (Lisa B.) Ryan; Joe Wheatley |
| Abstract: | The COVID-19 crisis comes at a complex moment for European climate policy as it pivots from a 40% 2030 emissions reduction target to a European Green Deal that is in better alignment with long-term Paris Agreement goals. Here, the implications of the dramatic fall in economic output associated with the crisis are examined using a representative range of growth scenarios. With lower economic activity resulting from the COVID-19 crisis, existing policy measures could achieve the 40% target sooner than 2030. However, we find that even in the most severe economic scenario examined, this falls well short of the 50-55% emissions reduction target under the Green Deal. Maintaining the existing 40% target in 2030 with reduced policy measures on the other hand would move European climate policy away from the required path. This analysis indicates the feasibility of increased climate ambition in the wake of the pandemic and supports the Green Deal 50-55% targets in 2030. |
| Keywords: | Climate change policy; Greenhouse gas emissions; Economic recovery; COVID-19 economic effects; Energy demand |
| JEL: | Q5 Q54 Q58 E6 Q43 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:wpaper:wp202003&r=all |
| By: | Mireille Chiroleu-Assouline (Paris School of Economics, University Paris 1 Panthéon-Sorbonne); Mouez Fodha (Paris School of Economics, University Paris 1 Panthéon-Sorbonne); Yassine Kirat (Paris School of Economics, University Paris 1 Panthéon-Sorbonne) |
| Abstract: | Among the ten countries with the highest carbon intensity, six are natural resource-rich countries. This suggests the existence of a carbon curse: resource-rich countries would tend to follow more carbon-intensive development paths than resource-poor countries. We investigate this assumption empirically using a panel data method covering 29 countries (OECD and BRIC) and seven sectors over the 1995-2009 period. First, at the macroeconomic level, we find that the relationship between national CO2 emissions per unit of GDP and abundance in natural resources is U-shaped. The carbon curse appears only after the turning point. Second, we measure the impact of resource abundance on sectoral emissions for two groups of countries based on their resource endowments. We show that a country rich in natural resources pollutes relatively more in resource related sectors as well as all other sectors. Our results suggest that the debate on climate change mitigation should rather focus on a comparison of resource-rich countries versus resource-poor countries than the developed-country versus developing-country debate. |
| Keywords: | carbon curse, carbon intensity, resource-rich economies |
| JEL: | Q32 Q53 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2020.17&r=all |
| By: | Aniruddh Mohan; Nicholas Z. Muller; Akshay Thyagarajan; Randall V. Martin; Melanie S. Hammer; Aaron van Donkelaar |
| Abstract: | A persistent issue in environmental economics is whether growth is sustainable. Pollution is a key driver of sustainability, which we define as an economy exhibiting falling pollution damages at its balanced growth path. We deduct air pollution and carbon dioxide damages from the national accounts for 163 countries between 1998 and 2018. Global pollution intensity fell from 1998 to 2008, remaining flat thereafter. China highlights the importance of defining sustainability in terms of damages; between 2011 and 2018, physical measures of environmental quality improved, but monetary damage increased by 50 percent. Sustainability based on emissions ignores this rise in damage. |
| JEL: | E13 Q51 Q53 Q54 Q56 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27398&r=all |
| By: | Jordan Hristov (European Commission - JRC); Andrea Toreti (European Commission - JRC); Ignacio Perez Dominguez (European Commission - JRC); Dentener Frank (European Commission - JRC); Thomas Fellmann (European Commission - JRC); Christian Elleby (European Commission - JRC); Andrej Ceglar (European Commission - JRC); Davide Fumagalli (European Commission - JRC); Stefan Niemeyer (European Commission - JRC); Iacopo Cerrani (European Commission - JRC); Lorenzo Panarello (European Commission - JRC); Marian Bratu (European Commission - JRC) |
| Abstract: | The 2013 EU strategy on adaptation to climate change aims at contributing to a more climate-resilient Europe. However, there are still large gaps in understanding and characterising climate impacts in Europe and how impacts in the rest of the world could affect Europe. This report provides quantitative modelling-based results from biophysical and agro-economic models as part of the PESETA-IV (Projection of Economic impacts of climate change in Sectors of the European Union based on bottom-up Analysis) project. We analyse climate change projections for 2050 considering the Representative Concentration Pathway (RCP) of 8.5 W/m2 (with corresponding global warming levels ranging between 1.6 oC and 2.7 oC compared to pre-industrial levels), as well as for 1.5 °C and 2 °C warming conditions. Results show that climate change will pose a threat to global food production in the medium to long term, and that Europe will also be affected. Forced by the projected changes in daily temperature, precipitation, wind, relative humidity, and global radiation, grain maize yields in the EU will decline between 1% and 22%. In addition, wheat yields in Southern Europe are expected to decrease by up to 49%. However, in Northern Europe some of the negative productivity effects caused by climate change may be partially offset by higher levels of atmospheric CO2 concentrations and changing precipitation regimes. Losses, especially in Southern Europe may be reduced by tailored adaptation strategies; e.g. changing varieties and crop types, increasing and improving irrigation practices for certain crops and when economically feasible. However, limitations on sustainable water abstraction levels could become a barrier to increase irrigation levels, specifically in the Mediterranean countries (particularly Spain, Portugal, Greece, Cyprus, Malta, Italy and Turkey) where duration of water scarcity under global warming are projected to intensify. As large negative climate change impacts on productivity outside of the EU are estimated, large market spill-over effects will push up production in both Northern and Southern Europe through higher demand for some agricultural commodities outside of EU, resulting in higher producer prices. This, in turn, may benefit farmers' income and have positive effects on the EU’s agricultural commodity exports. However, other limiting factors (not all fully integrated into the used modelling system yet), such as increasing water shortage in Southern Europe (Task 10) and constraints on the expansion of irrigation, increasing impacts of heatwaves and droughts, consequences of reduction of nutrient use due to environmental and climate mitigation constraints, need to be further evaluated. |
| Keywords: | climate change, biophysical modelling, agro-economic modelling, market effect |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc119632&r=all |
| By: | Alejandro Lopez Feldman; Carlos Chavez, Maria Velez, Hernan Bejarano, Ariaster Chimeli, Jose Feres, Juan Robalino |
| Abstract: | COVID-19 is currently having major short run effects with possible serious long run consequences on economic and social aspects, including several potential implications for the environment and the management of natural resources in Latin America. In this paper, we discuss the possible effects of the pandemic on air pollution, deforestation and other relevant environmental dimensions across the region. With contributions from environmental economists from eight countries, we give an overview of the initial and expected environmental effects of this health crisis. We discuss potential effects on environmental regulations and possible policy interventions, as well as an agenda for future research for those interested in the design and evaluation of environmental policies relevant for the Latin American context. |
| Keywords: | Air pollution; COVID-19; coronavirus; deforestation; environmental impacts; environmental policy; Latin America; pandemic; SARS-Cov2-19 |
| JEL: | H12 Q22 Q23 Q53 Q56 |
| Date: | 2020–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2020wpecon11&r=all |
| By: | Pierre Dupraz (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - INRA - Institut National de la Recherche Agronomique); Abdoul Nasser Seyni Abdou (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - INRA - Institut National de la Recherche Agronomique); Thomas Coisnon (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - INRA - Institut National de la Recherche Agronomique); Bertille Thareau (LARESS - ESA - Ecole Superieure Agronomique) |
| Abstract: | In addition to their role in maintaining biodiversity, producing many ecosystem services or contributing to the landscape quality of the areas, hedgerows have the capacity to store carbon in their above-and below-ground biomass, an environmental function that can provide an opportunity for companies wishing to offset voluntarily their CO2 emissions. In this paper, we examine the conditions for the existence and development of voluntary carbon offset markets as a new way to improve hedge maintenance and mitigate climate change. Through a series of surveys conducted among companies and farmers in Western France, we aimto determine the existence of a space for negotiation between these actors by adopting a discrete choiceexperimentmethod. The results show acertain heterogeneity in the expression of willingness to pay and willingness to receive, but a space for negotiation is well identified for a category of actors and for some modalitiesof the scheme. From a methodological point of view, our work shows ina new way thatthe choice experiment method can be used to identify the conditions of existence of a market for environmental goods. |
| Keywords: | Willingness to pay,Willingness to receive,discrete choice experiment,conditional logit,mixed logit,voluntary carbon market,hedges |
| Date: | 2019–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02503308&r=all |
| By: | Rosemary Ostfeld; David M Reiner (EPRG, CJBS, University of Cambridge) |
| Keywords: | Citizens' jury, focus groups, energy transition, climate policy, renewable energy, low-carbon technologies, Scotland, carbon capture and storage |
| JEL: | P18 Q42 Q54 Q58 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg1934&r=all |
| By: | Bortz, Pablo Gabriel; Toftum, Nicole |
| Abstract: | The paper reviews the alternatives available to Emerging Market Economies (EMEs) to finance investment required to mitigate and adapt to climate change. It also takes into account the financial needs to achieve the Sustainable Development Goals (SDGs). Since the requirements dwarfs the financial capabilities of the public sector in EMEs, the paper explores possible funding channels focusing on international financial markets. The paper identifies potential obstacles to a smooth and sustainable finance provision, including the influence of the global financial cycle on credit supply, risks related to currency mismatch and creditworthiness assessment, and mispricing of risks. The review also identifies the challenges to the exporting profile and therefore the sustainability of the balance of payments of EMEs. Finally, the paper provides some reflections on the limits of domestic private capital markets to bridge the “environmental financial gap”, and calls for the deeper involvement of specialized and official financial institutions. |
| Keywords: | Climate Change, Sustainable Development Goals, Financial requirements, international capital markets, green bonds, sustainable finance |
| JEL: | E44 F64 G23 O13 Q58 |
| Date: | 2020–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101722&r=all |
| By: | Peszko,Grzegorz; Van Der Mensbrugghe,Dominique; Golub,Alexander Alexandrovich |
| Abstract: | Fossil fuel importers can apply various climate and trade taxes to encourage fossil fuel?dependent countries to cooperate on climate mitigation, and fossil fuel?dependent countries can respond with alternative diversification and cooperation strategies. This paper runs macroeconomic model simulations of alternative strategies that the global community and fossil fuel?dependent countries can pursue to encourage and enable their participation in a global low-carbon transition. The following are the findings from the simulations. (i) Fuel importers? unilateral carbon taxes capture fossil fuel?dependent countries? resource rents and accelerate their emission-intensive diversification. (ii) Border taxes on the carbon content of imports from fossil fuel?dependent countries do not induce comprehensive cooperation, but broader trade sanctions do. (iii) Cooperative wellhead carbon taxes can achieve cooperation without trade wars. (iv) Lower-income fossil fuel?dependent countries with large untapped reserves need additional incentives and enablers to cooperate and diversify into low-carbon assets. (v) Incentives to cooperate are misaligned between different fossil fuel?dependent countries and between owners of different fuels. (vi) The strategies that maximize consumption and growth in fossil fuel?dependent countries reduce the value of assets in extractive and heavy industries. (vii) Asset diversification is a robust, long-term strategy but faces the tragedy of the horizon. |
| Keywords: | Climate Change Mitigation and Green House Gases,International Trade and Trade Rules,Energy and Environment,Energy Demand,Energy and Mining,Oil&Gas |
| Date: | 2020–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9315&r=all |
| By: | KERAMIDAS Kimon (European Commission - JRC); DIAZ VAZQUEZ Ana R. (European Commission - JRC); WEITZEL Matthias (European Commission - JRC); VANDYCK Toon (European Commission - JRC); TAMBA Marie (European Commission - JRC); TCHUNG-MING Stephane (European Commission - JRC); SORIA RAMIREZ Antonio (European Commission - JRC); KRAUSE Jette; VAN DINGENEN Rita; SO CHAI Qimin; FU Sha; WEN Xinyuan |
| Abstract: | This edition of the Global Energy and Climate Outlook (GECO) analyses the role of electrification in global transition pathways to a low Greenhouse Gas (GHG) emissions economy. Electricity is found to be an increasingly important energy carrier in final energy consumption already in the absence of stronger climate policies than those currently in place (Reference scenario), while enhanced electrification of final energy demand is a crucial element of the 2°C temperature change scenario, paving the way to climate neutrality. The 2°C target could be achieved by simultaneously transforming various elements of the energy system: shifting final energy demand from mainly fossil fuels towards electricity and low-carbon synthetic fuels mainly derived from electricity; decarbonising power generation; increasing energy efficiency in end-uses, which is favoured by further electrification; and mobilising novel options to better accommodate high shares of intermittent renewable electricity sources, such as demand-side load management and power storage. This report further shows that the 2°C target is technically possible at relatively low cost for the overall economy (global GDP reduction below 1% across all sensitivities compared to Reference in 2050). This would also bring along co-benefits for air quality. In order to explore the role that electrification can play as an emissions mitigation option, a number of sensitivity variants on key parameters impacting the energy system – energy prices, cost of technologies, non-economic drivers related to behaviour and policy – are conducted. The role of electricity is examined by large sector (industry, transport, buildings, power generation), with a particular regional focus on the EU and China and a sectoral focus on road transport electrification. |
| Keywords: | Electrification, Paris Agreement, Climate Change mitigation, 2°C scenarios |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc119619&r=all |
| By: | Jacques Despres (European Commission - JRC); Marko Adamovic (European Commission - JRC) |
| Abstract: | PESETA IV assesses the impacts of climate change on electricity production by hydro, wind, solar, nuclear and other thermal power plants, including biomass, coal, gas and oil. We assess these impacts in the present power system and in 2050 for a dynamic scenario in line with 2°C mitigation efforts. Both scenarios show that, at EU-level, the production of hydropower plants increases with global warming thanks to higher water availability (although this does not imply substantial development of new hydro plants), while nuclear power decreases. However, there are regional differences in the impacts, such as increased hydro production in the North, and a decline in hydro- and nuclear power production in southern Europe due to lower water availability for direct production or for cooling river-based plants. In northern Europe, the increasing availability of cheaper hydro results in substitution effects and lower production costs, while in southern Europe production costs could increase. Based on the modelling methodology used and the latest available climate simulations, the direct impacts of climate change on wind and solar production are not significant at EU-level. However, in the 2050 power system their capacity would increase in southern regions to compensate for the lost hydro and nuclear production. Climate change impacts on energy in the rest of the world show a negligible spill-over effect on Europe. Improved cooling technologies have the potential to reduce strongly the negative effects of water scarcity, particularly for nuclear plants in southern Europe. |
| Keywords: | Climate change impacts, Water scarcity, Hydropower, Thermal plants, Wind, Solar, Climate change, Electricity production, Electricity supply |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc118155&r=all |
| By: | Sophie Clot (UOR - University of Reading); Gilles Grolleau (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEREN - Centre de Recherche sur l'ENtreprise [Dijon] - BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC)); Lisette Ibanez (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | The projection bias corresponds to the human tendency to project current preferences into the future as if present tastes remained unchanged. We apply the projection bias to the environmental domain and design a survey experiment to investigate its relevance on two environmentally friendly initiatives, namely solar panels and eco-friendly transport. We found that some attitudes and behavioral intentions are subject to positive change when individuals are solicited a day when the weather is congruent with the proposed changes. We draw several policy and managerial implications for ecological issues. |
| Keywords: | environment,experimental survey,projection bias,solar panels,transport. |
| Date: | 2020–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02874044&r=all |
| By: | Yuanning Liang; Ivan J. Rudik; Eric Zou; Alison Johnston; Amanda D. Rodewald; Catherine L. Kling |
| Abstract: | Massive wildlife losses over the past 50 years have brought new urgency to identifying both the drivers of population decline and potential solutions. We provide the first large-scale evidence that air pollution, specifically ozone, is associated with declines in bird abundance in the United States. We show that an air pollution regulation limiting industrial emissions during summer ozone seasons has generated substantial benefits in conserving bird populations. Our results imply that air quality improvements over the past four decades have substantially slowed the decline in bird populations, preventing a loss of 1.5 billion birds, approximately 20 percent of current totals. Our results highlight that in addition to protecting human health, air pollution regulations have previously unrecognized and unquantified conservation co-benefits. |
| JEL: | Q53 Q57 Q58 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27415&r=all |
| By: | Lovcha, Yuliya; Pérez Laborda, Àlex; Sikora, Iryna |
| Abstract: | European Union has launched its Emissions Trading Scheme (ETS) in 2005, creating the first and one of the biggest international carbon markets, with the aim of reducing CO2 emissions of the Member States. Forming a part of the EU Climate Action plan, composed by a broad set of policies, as well as belonging to a complex interrelated energy system, the assessment of the ETS system effectiveness is not straight forward. Policy-makers tend to use emission levels or CO2 prices as indicators, even though both measures are affected by other policies, energy market fundamentals, and speculative shocks. This paper develops an empirical VAR model that connects the energy sector (oil, natural gas, coal and electricity prices, as well as a share of fossil fuels in electricity production), economic activity and CO2 permit prices. We use frequency domain analysis to study how the parts of this system impact each other and how these impacts evolve over time. The model can be used as a monitoring tool for CO2 price dynamics and for the effectiveness of the ETS system. Our empirical results indicate that up to 90% (65% on average) of the variation in CO2 prices, adjusted by supply effects, is explained by the variations in fundamental market variables; however, the individual contributions of them have changed over time. For example, the importance of the economic activity, used to be a major source of CO2 price variations in the past, is vanishing recently, while the opposite occurs to the coal prices, which have gained in importance in recent periods. The impact of CO2 prices on a share of fossil fuels in electricity production is limited, pointing towards the still low contribution of the ETS system for renewable energy penetration. |
| Keywords: | Anhídrid carbònic--Aspectes econòmics, 33 - Economia, 504 - Ciències del medi ambient, |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/376031&r=all |
| By: | Venter, Zander; Barton, David; gundersen, vegard; Figari, Helene; Nowell, Megan |
| Abstract: | The global response to the COVID-19 pandemic has brought with it significant changes to human mobility patterns. We aimed to explore how social distancing measures affected recreational use of urban green space during the partial lockdown in Oslo, Norway. Mobile tracking data from thousands of recreationists were used to analyze high resolution spatio-temporal changes in activity. We estimated that outdoor recreational activity increased by 291% during lockdown relative to a 3-yr average for the same days. This increase was significantly greater than expected after adjusting for the prevailing weather and time of year and equates to approx. 86,000 extra activities per day over the municipality (population of 690,000). Both pedestrians (walking, running, hiking) and cyclists appeared to intensify activity on trails with higher greenviews and tree canopy cover, but with differences in response modulated by trail accessibility and social distancing preferences. The magnitude of increase was positively associated with trail remoteness, suggesting that green spaces facilitated social distancing and indirectly mitigated the spread of COVID-19. Finally, pedestrian activity increased in city parks, peri-urban forest, as well as protected areas, highlighting the importance of access to green open spaces that are interwoven within the built-up matrix. These findings shed new light on the value of urban nature as resilience infrastructure during a time of crisis. The current pandemic also reveals some important dilemmas we might face regarding green justice on the path towards urban planning for future sustainable cities. |
| Date: | 2020–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:kbdum&r=all |
| By: | Ferran Sancho |
| Abstract: | Eco-taxation is the preferred market based tool for achieving mitigation of CO2 emissions and fostering sustainability. It works through tax-induced changes in the price of polluting activities while ideally transferring the environmental cost to emitters and users. The initial eco-tax signaling is transmitted and further amplified to the rest of the economy through the structure of cost interactions. In particular, real-world economies work under wage adjustment rules that reflect downward rigidity in labor costs when facing rising prices. These common rules may in fact affect the mitigation capacity of the eco-tax policies. We study this issue using an interindustry model in which we overcome the classical dichotomy between prices and quantities thanks to the novelty of connecting consumption demand with the changes in private income levels that would follow from the enacted eco-tax. We isolate income effects by keeping the given productive structure of the economy as unaltered as possible. In this sense, the proposed model has a bit of a neo-ricardian flavor. We implement the model and check the mitigation effectiveness of two different eco-tax policies using recent tabular data for the Spanish economy in 2015. The main conclusion is that we would not observe double benefits, even when all eco-tax collections are recycled back into the economy. |
| Keywords: | Mitigation, eco-taxation, tax recycling, wage adjustment. |
| JEL: | C57 Q41 Q52 Q58 |
| Date: | 2020–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:aub:autbar:968.20&r=all |
| By: | Mateo Cordier (CEARC - Cultures, Environnements, Arctique, Représentations, Climat - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - CNRS - Centre National de la Recherche Scientifique, Université Paris-Saclay, UVSQ - Université de Versailles Saint-Quentin-en-Yvelines); Takuro Uehara (Ritsumeikan University); Juan Baztan (UVSQ - Université de Versailles Saint-Quentin-en-Yvelines, CEARC - Cultures, Environnements, Arctique, Représentations, Climat - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - CNRS - Centre National de la Recherche Scientifique, Université Paris-Saclay); Bethany Jorgensen (Marine Sciences For Society - Marine Science for Society, Cornell University) |
| Abstract: | Green economic growth fed by technological solutions is often mentioned to mitigate plastic pollution. But economic growth appears to be in contradiction to planetary boundaries. By developing two worldwide socio-economic models based on non-technological solutions, economic production, social, and policy data, we demonstrate the adverse ecological impact of the lack of regulatory process and educational environmental programs. Our results support other studies that observe the effect of several key factors on behaviors in favor of the environment: i) improving the quality of democracy with better regulation in all country income categories, ii) implementing long-term educational programs to increase environmental awareness in low and middle income countries, iii) limiting urbanization and urban sprawl, which generates disconnection from the environment and reduces opportunities for personal experiences with the ecosystem. All these key factors feature industrial responsibility, environmental awareness and willingness to engage in ethical production, consumption and plastic waste management. Our results show a 1% increase in education or corruption control policies reduces annual inadequately managed plastic waste by 0.97% and 0.18% respectively. As a result, progressively raising the number of schooling years to 12 and implementing tighter corruption control policies would reduce by 44% and 28% respectively the global amount of inadequately managed plastic waste discarded into the global ecosystem in 2050 as compared to 1990. Otherwise, this amount is predicted to increase from 61-72 million tonnes per year in 1990 to 61-110 million tonnes per year in 2050. |
| Keywords: | gross domestic product (GDP),plastic pollution,global economic model,socio-economic scenarios,waste management,governance factors,socio- economic scenarios |
| Date: | 2020–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02862787&r=all |
| By: | Flavio M. Menezes (School of Economics, University of Queensland); Morganna W. Capodeferro (COPPE and FGV CERI); Juliana J. Smiderle (Poli/UFRJ and FGV CERI); Pedro E. Guimarães (EPGE and FGV CERI) |
| Abstract: | The conflicting demands for water from irrigating perennial crops, generating power, and supplying humans and livestock have placed many river basins around the world under stress. These conflicts are being and will continue to be exacerbated by the impact of climate change. Here we expound a methodology, based on economic theory, that allows the estimation of the implicit value of the water for irrigation purposes. In turn, these implicit values can be employed to determine the amount to be charged for water to promote sustainable outcomes. The methodology is developed and applied in the context of Brazil’s Sao Marcos River Basin, where agriculture and hydroelectricity generation activities compete for the existing water resources. We show that current water charges would have to increase by over 270 times to reduce the water consumption in the basin to a sustainable level. |
| Date: | 2020–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:624&r=all |
| By: | Akinyemi, Opeyemi; Efobi, Uchenna; Asongu, Simplice; Osabuohein, Evans |
| Abstract: | The paper investigates the dynamic relationship between renewable energy usage and trade performance in sub-Saharan Africa (SSA), while considering the conditioning role of corruption control, regulatory quality, and the private sector access to finance. Focusing on 42 SSA countries for the period 2004-2016, and engaging the System generalized method of moments (GMM) technique for its estimation, this study found a negative relationship between renewable energy usage and the indicators of trade performance. However, with corruption control, improved regulatory framework, and better finance for the private sector, there are potentials for a positive net impact of renewable energy usage on manufacturing export. For renewable energy and total trade nexus, we find that improved regulatory framework and better finance for the private sector are important conditioning structures. These findings are significant because they highlight the different important structures of SSA countries that improve the effect of renewable energy use on trade outcomes. For instance, the consideration of the financial, institutional and regulatory frameworks in SSA countries in conditioning the renewable energy-trade nexus stipulates a clear policy pathway for countries in this region as the debate for transition to the use of renewable energy progresses. |
| Keywords: | Environment; Green growth; Trade performance; Pollution; Renewable energy; sub-Saharan Africa |
| JEL: | C50 F1 Q40 Q5 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101099&r=all |
| By: | Purkus, Alexandra; Lüdtke, Jan; Jochem, Dominik; Rüter, Sebastian; Weimar, Holger |
| Abstract: | The Charter for Wood 2.0 aims to increase the contribution of sustainable forestry and wood use to climate change mitigation, value creation and resource efficiency. Using wood in the construction of buildings can be an effective option to support these objectives. Apart from carbon storage in long-lived harvested wood products, wood use can contribute to a reduction in greenhouse gas emissions if it substitutes materials that would have been more energy-intensive in their production. Conserving non-renewable raw materials contributes to the resource efficiency of the economy. Additionally, the use of wood in construction strengthens value creation in the forestry and wood cluster and offers employment perspectives for rural areas. However, there are several known challenges that inhibit market growth, particularly when it comes to innovative, multi-storey wood construction. Examples are path dependencies, which affect the design of building regulations or education structures; a lack of information on the part of potential customers; as well as a tendency to neglect environmental impacts of construction and end of life phases of buildings. In recent years, however, the framework conditions for wood construction have developed dynamically. The Charter for Wood 2.0 working groups, which support the Charter’s implementation as part of a dialogue process, develop further measures to address challenges. This study therefore focuses on the question of whether recent changes in market, legal or political framework conditions have contributed to solving known challenges for wood construction. The assessment of developments is based on literature and document analyses as well as on interviews with experts from associations, science, administration and the wood construction industry. In order to gain a systemic understanding of the way in which changes interact, we use the innovation system approach as a theoretical framework for our analysis. Innovation research points to distinct system functions that support the development, diffusion and use of innovations. By analysing whether developments in framework conditions have strengthened these functions, the study provides a theory-based foundation for identifying further needs for action. In this way, it supports ongoing efforts in the Charter for Wood 2.0 dialogue process. The study was conducted as part of the learning-oriented evaluation of the Charter for Wood 2.0. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2020–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:jhimwo:303880&r=all |
| By: | Stephan Schulmeister |
| Abstract: | Neither a gradually rising carbon tax nor emission trading schemes can ensure that the costs of emitting greenhouse gases, in particular CO2, will steadily rise faster than the general price level. If, e.g., global fossil energy prices decline faster than a carbon tax or the emission permit price rises, then the final good and its use become cheaper. Since the prices of fossil energy as well as CO2 emission permit prices belong to the most unstable prices in the global economy, carbon taxes and trading schemes cannot anchor the long-term expectation that the effective emission costs for firms and households will rise continuously. Such an expectation, however, is a prerequisite for steadily growing investment in energy efficiency and/or renewable energy because the profits from such investments consist of the saved fossil energy costs ("opportunity profits"). This paper presents an alternative approach: the EU sets a path of steadily rising prices of crude oil, coal and natural gas by skimming off the difference between the EU target price and the respective world market price through a monthly adjusted quantity tax. Instead of the prices of fossil raw materials, the (implicit) quantity tax should fluctuate. In this way, the uncertainty about future price developments of crude oil, coal and natural gas and, hence, of the effective emission costs would be eliminated. Firms and households could calculate the profitability of investments in avoiding carbon emissions. At the same time, such a tax would ensure a uniform European carbon price in all sectors, provided the initial level of the price paths of crude oil, coal and natural gas account for the different CO2 intensities of these types of fossil energy. Given the size of the EU import bill for fossil energy, the amount of potential receipts of such an implicit and flexible CO2 tax would be (very) huge. |
| Date: | 2020–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2020:i:604&r=all |
| By: | Zhu Liu; Philippe Ciais; Zhu Deng; Steven J. Davis; Bo Zheng; Yilong Wang; Duo Cui; Biqing Zhu; Xinyu Dou; Piyu Ke; Taochun Sun; Rui Guo; Olivier Boucher; Francois-Marie Breon; Chenxi Lu; Runtao Guo; Eulalie Boucher; Frederic Chevallier |
| Abstract: | We constructed a near-real-time daily CO2 emission dataset, namely the Carbon Monitor, to monitor the variations of CO2 emissions from fossil fuel combustion and cement production since January 1st 2019 at national level with near-global coverage on a daily basis, with the potential to be frequently updated. Daily CO2 emissions are estimated from a diverse range of activity data, including: hourly to daily electrical power generation data of 29 countries, monthly production data and production indices of industry processes of 62 countries/regions, daily mobility data and mobility indices of road transportation of 416 cities worldwide. Individual flight location data and monthly data were utilised for aviation and maritime transportation sectors estimates. In addition, monthly fuel consumption data that corrected for daily air temperature of 206 countries were used for estimating the emissions from commercial and residential buildings. This Carbon Monitor dataset manifests the dynamic nature of CO2 emissions through daily, weekly and seasonal variations as influenced by workdays and holidays, as well as the unfolding impacts of the COVID-19 pandemic. The Carbon Monitor near-real-time CO2 emission dataset shows a 7.8% decline of CO2 emission globally from Jan 1st to Apr 30th in 2020 when compared with the same period in 2019, and detects a re-growth of CO2 emissions by late April which are mainly attributed to the recovery of economy activities in China and partial easing of lockdowns in other countries. Further, this daily updated CO2 emission dataset could offer a range of opportunities for related scientific research and policy making. |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2006.07690&r=all |
| By: | Jihad C. Elnaboulsi (CRESE, Univ. Bourgogne Franche-Comté); Wassim Daher (Gulf University for Science and Technology, Department of Mathematics and Natural Sciences); Yigit Saglam (Victoria University of Wellington, School of Economics and Finance) |
| Abstract: | We analyze how environmental taxes should be optimally levied when the regulators and firms face costs uncertainties in a Stackelberg-Cournot game. We allow linear-quadratic payoffs functions coupled with an affine information structure encompassing common and private information with noisy signals. In the first period, the regulator chooses the intensity of emissions taxes in order to reduce externalities. In the second period, facing industry-related and firm-specific shocks, firms compete in the market-place as Cournot rivals and choose outputs. We show that, given costs uncertainties with non-uniform quality of signals across firms, the regulator sets differentiated tax policy. We also examined the social value of information under ex-ante calibrated emissions taxes. We argue that the magnitude of the associated social benefits and costs of more precise private signals hinge largely and fundamentally on the value of the ratio of the slopes of the marginal damage and the marginal consumer surplus. The lack of accurate data clouds the regulatory process by preventing the necessary fine-tuning of the tax rules towards specific environmental circumstances. Finally, we investigate information sharing between polluters and its impacts on welfare. We stress that, when there are threats of severe environmental damages under deep uncertainties, collusion is welfare reducing and may jeopardize the regulatory process. Numerical simulations illustrate the results that the model delivers. |
| Keywords: | Differentiated Taxes, Costs Uncertainties, Signaling, Precision, Information Sharing, Collusion, Energy Markets. |
| JEL: | D43 D83 H23 L13 Q58 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:crb:wpaper:2020-04&r=all |
| By: | Margaret Insley (Department of Economics and The Water Institute, University of Waterloo, Canada); Sara Aghakazemjourabbaf (Department of Economics, University of Waterloo, Canada) |
| Abstract: | The paper studies the impacts of an environmental bond, which fully covers waste cleanup costs, on a mining firm's optimal actions when bankruptcy may shift cleanup costs to the government. A firm's stochastic optimal control problem is described by an HJB equation with the resource price modelled as an Ito process. A theoretical result is derived, showing that when a firm does not have the option to declare bankruptcy, the bond has no impact on the optimal controls. In contrast, if a firm does have a bankruptcy option and if no environmental bond is required, the firm produces too much waste relative to a benchmark case, resulting in an effciency loss and a cleanup liability imposed on government. In the presence of a bankruptcy option, a bond ensures that the firm acts optimally and no effciency loss is imposed on society. A numerical solution of the HJB equation is implemented for a hypothetical copper mine and results are analyzed for two different models of bankruptcy risk. |
| JEL: | C61 D81 K32 Q52 Q58 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:wat:wpaper:2002&r=all |
| By: | Sébastien Marchand (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Maimouna Barro (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Huanxiu Guo (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: | In the process of industrialization, relocation of manufacturing industries from urban to rural areas may have important implications for the rural environment and agricultural production. As a demonstration, the aim of this paper is to estimate the impact of wastewater from industrial firms on agricultural yields in rice farming of Jiangsu province, China. Using 2011-2015 panel data from both the China Rural Fixed Point Survey and the China Environmental Statistics Database between 2011 and 2015, we find that industrial wastewater significantly reduces rice yields. The econometric strategy implemented allows us to assume that this result reflects a causal and detrimental biological effect of wastewater on the growing process of the rice. These results highlight the need to better understand the conflicts between industry and agriculture at the local level in a context of rapid industrialization. |
| Keywords: | China,Rural environment,Rice farming,Industrial water pollution |
| Date: | 2020–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02871257&r=all |
| By: | Andersson, Malin; Morgan, Julian; Baccianti, Claudio |
| Abstract: | This Occasional Paper reviews how climate change and policies to address it may affect the macro economy in ways that are relevant for central banks’ monetary policy assessment of the inflation outlook. To this end, the paper focuses on the potential channels through which climate change and the policy and technological responses to climate change could have an impact on the real economy. Overall, the existing literature suggests a likelihood that climate change will have demand-side implications, but will also cause a negative supply shock in the decades to come and may even have the potential to lead to widespread disruption to the economic and financial system. We may already be observing a rise in the costs resulting from an increased incidence of extreme weather conditions. The direct effects stemming from climate change are likely to increase gradually over time as global temperatures increase. Nevertheless, it is extremely difficult to obtain reliable estimates of the overall macroeconomic impact of climate change, which will also depend on the extent to which it can be brought under control through mitigation policies requiring major structural changes to the economy. In order to implement such policies political economy obstacles will need to be overcome and measures will need to be put in place that address underlying market failures. They could involve significant fiscal implications, with an increased price of carbon contributing to higher overall prices. At the same time, these measures could also foster innovation, generate fiscal revenues and dampen inflationary pressures as energy efficiency increases and the price of renewable energy falls. JEL Classification: Q43, Q54, Q55, Q58 |
| Keywords: | climate, energy, global warming, government policy, macro economy, technological innovation |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2020243&r=all |
| By: | TCHUNG-MING Stephane (European Commission - JRC); DIAZ VAZQUEZ Ana R. (European Commission - JRC); KERAMIDAS Kimon (European Commission - JRC) |
| Abstract: | This document complements the Global Energy and Climate Outlook 2018 report. It provides the detailed GHG and energy balances for the Reference, the central 2°C and 1.5°C scenarios described in the main report. The results displayed in this report have been produced with the global energy & GHG model POLES-JRC. |
| Keywords: | Energy Balance, GHG emissions Balance, Paris Agreement, energy sector, Mid-century strategy, Long-Term Strategy, 2°C, 1.5°C, UNFCCC, climate change mitigation |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc114840&r=all |
| By: | Cecilia Bellora; Lionel Fontagné (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne) |
| Abstract: | The new European Commission has announced policies to reduce greenhouse gas emissions drastically. Reaching an ambitious target for a global good – the climate – would require a common price for carbon worldwide. This however clashes with the free-riding problem. Furthermore, unilateral policies are not efficient since they lead to carbon leakages and distort competitiveness. To tackle these issues, the European Union can rely on different policies. Firstly, a carbon pricing of imports can combined with an export rebate to constitute a ‘complete CBA' (Carbon Border Adjustment) solution. Alternatively, a simple tariff at the border can compensate for differences in carbon prices between domestic and imported products. A consumption-based carbon taxation can al so be contemplated. Last, a uniform tariff on imports from countries not imposing (equivalent) carbon policies may help solving the free-riding problem. |
| Keywords: | Carbon Border Adjustment,Climate Change,International Trade,Tariffs |
| Date: | 2020–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-02880332&r=all |
| By: | Antonin Pottier (CIRED); Emmanuel Combet (ADEME); Jean-Michel Cayla (EDF); Simona de Lauretis (CIRED); Franck Nadaud (CIRED) |
| Abstract: | This article provides an overview of the inequalities in greenhouse gas (GHG) emissions between French households. It presents in a detailed and critical manner the methodological conventions used to compute "household emissions", and the related assumptions. The most common principle of attribution, the carbon footprint, which assigns to households the emissions of the products they consume, conveys implicit conceptions of responsibility. It focuses attention on the contributions of individuals, on their choices, and may obscure the role of non-individual actors as well as the collective component of GHG emissions, and neglect the dimensions of responsibility not related to consumption choices. We estimate the distribution of household carbon footprints based on data from the 2011 French Expenditure Survey. Household emissions tend to increase with income, but they also show a strong variability linked to geographical and technical factors that force to use fossil fuels. Based on sectoral surveys (ENTD 2008; PHEBUS 2013), we also reconstruct household CO2 emissions linked to housing and transport energy. For transport, emissions are proportional to the distances travelled due to the predominant use of private cars. Urban settlement patterns constraint both the length of daily commuting and access to less carbon-intensive modes of transport. For housing, while house size increases with income and distance from urban centres, the first factor to account for variability of emissions is the heating system. It has little to do with income but more to do with settlement patterns, which constrain access to the various energy carriers. Finally, we discuss the difficulties, both technical and conceptual, involved in estimating emissions from the super-rich (the top 1 percent). |
| Keywords: | greenhouse gas emissions, carbon footprint, emissions inequality, household expenditure distribution, responsibility |
| JEL: | D12 D30 Q56 R20 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2020.15&r=all |
| By: | Dominique Desbois (ECO-PUB - Economie Publique - AgroParisTech - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | The decision to adopt one or another of the sustainable land management alternatives should not be based solely on their respective benefits in terms of climate change mitigation but also based on the performances of the productive systems used by farm holdings, assessing their environmental impacts through the cost of specific resources used. This communication uses the symbolic data analysis tools in order to analyse the conditional quantile estimates of the fertilizer costs of specific productions in agriculture, as a replacement proxy for internal soil erosion costs. After recalling the conceptual framework of the estimation of agricultural production costs, we present the empirical data model, the quantile regression approach and the interval data techniques used as symbolic data analysis tools, mainly symbolic principal component analysis and symbolic clustering of the estimation intervals. The comparative analysis of econometric results for main products between European regions illustrates the relevance of the displays obtained for inter-regional comparisons based on specific productivity. |
| Abstract: | La décision d'adopter l'une ou l'autre des alternatives de gestion durable des terres ne doit pas être basée uniquement sur leurs avantages respectifs en termes d'atténuation du changement climatique mais également sur les performances des systèmes de production utilisés par les exploitations agricoles, en évaluant leurs impacts environnementaux à travers le coût des ressources spécifiques utilisées. Cette communication utilise les outils de l'analyse de données symboliques afin d'analyser les estimations quantiles conditionnelles des coûts de production spécifique agricole en engrais, comme substitut pour les coûts d'érosion interne des sols. Après avoir rappelé le cadre conceptuel de l'estimation des coûts de production agricole, nous présentons le modèle de données empiriques, l'approche de régression quantile et les techniques de données d'intervalle utilisées comme outils d'analyse des données symboliques, principalement l'analyse des composantes principales symboliques et la classification symbolique des intervalles d'estimation. L'analyse comparative des résultats économétriques des principaux produits entre les régions européennes illustre la pertinence des affichages obtenus pour les comparaisons interrégionales basées sur une productivité spécifique. |
| Keywords: | Production Cost,Interval Data,Symbolic Data Analysis,symbolic principal component analysis,symbolic clustering,Fertilizer Input,Soil Erosion |
| Date: | 2020–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02790417&r=all |
| By: | Marc Baudry (EconomiX (Université Paris Nanterre) & Chaire Economie du Climat (PSL)); Anouk Faure (EconomiX (Université Paris Nanterre) & Chaire Economie du Climat (PSL)); Simon Quemin (Grantham Research Institute (LSE) & Chaire Economie du Climat (PSL)) |
| Abstract: | We develop an equilibrium model of emissions permit trading in the presence of ï¬ xed and proportional trading costs in which the permit price and ï¬ rms’ participation in and extent of trading are endogenously determined. We analyze the sensitivity of the equilibrium to changes in the trading costs and ï¬ rms’ allocations, and characterize situations where the trading costs alternatively depress or raise permit prices relative to frictionless market conditions. We calibrate our model to annual transaction and compliance data in Phase II of the EU ETS (2008-2012) which we consolidate at the ï¬ rm level. We ï¬ nd that trading costs in the order of 10 k€ per annum plus 1€ per permit traded substantially reduce discrepancies between observations and theoretical predictions for ï¬ rms’ behavior (e.g. autarkic compliance). Our simulations suggest that ignoring trading costs leads to an underestimation of the price impacts of supply-curbing policies, this difference varying with the incidence on ï¬ rms. |
| Keywords: | Emissions trading, Transaction costs, Policy design and evaluation, EU ETS |
| JEL: | D22 D23 H23 Q52 Q58 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2020.16&r=all |
| By: | Giorgos N. Diakoulakis (Department of Agricultural Economics and Rural Development, Agricultural University of Athens); Athanasios Kampas (Department of Agricultural Economics and Rural Development, Agricultural University of Athens) |
| Abstract: | This article explores farmer's decisions regarding the expansion of organic farming through intensive input use and the degree of in-house organic fertilizer production. Using a theoretical synthesis of two strands of the scholarly literature, namely pro-environmental norms and the goal-framing theory, the contribution of this article to the current literature is: (i) it redefines the concept of the crowding effects, which encompasses both changes in environmental preferences and in normative objectives; (ii) it points that the impact of a green payment on vertical integration depends on both the relative (i.e. the direction) and the absolute (i.e. the magnitude) size of the crowding effect being expected; (iii) it states that a trade-off between input use and vertical integration does always exist once a land subsidy is implemented, but not necessarily if a price premium is offered instead. |
| Keywords: | personal and social norms, crowding theory, goal-framing theory, green payments, vertical integration |
| JEL: | Q18 Q58 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:aua:wpaper:2020-1&r=all |
| By: | Ornella Tarola (University of Rome La Sapienza); skerdilajda Zanaj (Department of Economics and Management, Université du Luxembourg) |
| Abstract: | We define a model of international trade with two countries, two vertically differentiated goods, and heterogeneous consumers in terms of their willingness to pay for quality. Trade generates two sources of pollution: the production of domestic and traded goods and the transportation of goods between the two countries. Consumers in both countries manifest home bias, which translates into ethnocentric preferences: (i) consumers perceive the quality of the domestic good as amplified, and (ii) consumers derive additional satisfaction when consuming a domestic good rather than a foreign one since only the former can satisfy their sense of place; in contrast, they suffer a psychological penalty when consuming a foreign product. We investigate the role of trade costs and ethnocentrism in shaping the equilibrium configuration of the international duopoly. Finally, we uncover the environmental damage from production and from transport in the presence of ethnocentrism. |
| Keywords: | ethnocentrism, international trade, environmental damage, relative preferences, vertically differentiated mode. |
| JEL: | D43 F10 F15 Q56 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:20-18&r=all |
| By: | Dorothée Brecard (Universite de Toulon, LEAD); Mireille Chiroleu-Assouline (Paris School of Economics, University of Paris 1 Pantheon-Sorbonne) |
| Abstract: | Non-governmental organizations (NGOs) are exerting growing pressure on firms to eliminate product components (such as palm oil) that are harmful to the environment (such as rainforests) or replace such components with NGO-certified sustainable components. Under which conditions does NGO pressure lead firms to eliminate basic components from their products or, alternatively, substitute damaging components with certified sustainable components? What are the ensuing effects on market structure, environmental quality, and social welfare? The paper addresses these issues using a model of two-dimensional vertical product differentiation. It shows that, for an NGO that collects certification fees to accrue its budget and finance its awareness campaign, it may paradoxically be optimal to reduce the certified product's market share and eventually evict it. |
| Keywords: | Environmental quality, Product differentiation, Palm oil, Biofuelsy |
| JEL: | D11 D62 D83 L15 Q58 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2020.14&r=all |
| By: | Jill Furzer; Boriana Miloucheva |
| Abstract: | This paper investigates the role of long-term exposure to fine particulate pollution (PM 2.5) on COVID-19 disparities. To isolate the effect of PM 2.5, we leverage pollution spillovers from neighbouring counties not meeting Clean Air Act-set maximums on acceptable pollution levels. We find a 1-unit increase in cumulative exposure to PM 2.5 increased COVID-19 deaths by 43.5%. PM 2.5 exposure carries an additional race-specific mortality effect of 6.8%-16% for counties with a high proportion of minority or Black residents. However, counties just above CAA pollution thresholds, which had significant pollution reductions over time, saw a full standard deviation reduction in COVID-19 deaths per 100,000. Counties with higher representation of minority or Black residents saw reductions in deaths by 1.50 and 1.15 standard deviations, respectively. Nevertheless, these protective effects insufficiently compensate for the still higher levels of pollution exposure in counties with more Black or minority residents and the more consequential impact of pollution for these communities. |
| Keywords: | pollution, health, racial disparities |
| JEL: | I10 I14 Q52 Q53 |
| Date: | 2020–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-668&r=all |
| By: | Dominique Desbois (ECO-PUB - Economie Publique - AgroParisTech - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | The decision to adopt one or another of the sustainable land management alternatives should not be based solely on their respective benefits in terms of climate change mitigation but also based on the performances of the productive systems used by farm holdings, assessing their environmental impacts through the cost of specific resources used. This communication uses the symbolic clustering tools in order to analyse the conditional quantile estimates of the fertilizer costs of specific productions in agriculture, as a replacement proxy for internal soil erosion costs. After recalling the conceptual framework of the estimation of agricultural production costs, we present the empirical data model, the quantile regression approach and the symbolic clustering tools used to obtain typologies of European countries on the basis of the conditional quantile distributions of fertilizer cost empirical estimates. The comparative analysis of econometric results for main products between European countries illustrates the relevance of the typologies obtained for international comparisons based on their input specific productivity. |
| Abstract: | La décision d'adopter l'une ou l'autre des alternatives de gestion durable des terres ne devrait pas être fondée uniquement sur leurs avantages respectifs en termes d'atténuation du changement climatique, mais également sur les performances des systèmes de production utilisés par les exploitations agricoles, en évaluant leurs impacts environnementaux à travers le coût des ressources spécifiques utilisées. Cette communication mobilise les outils de la classification symbolique afin d'analyser les estimations quantitatives conditionnelles des coûts des engrais de productions spécifiques en agriculture, en tant que substitut des coûts internes de l'érosion des sols. Après avoir rappelé le cadre conceptuel de l'estimation des coûts de production agricole, nous présentons le modèle de données empiriques, l'approche de régression quantile et les outils de classification symbolique utilisés pour obtenir des typologies de pays européens sur la base des estimations empiriques des distributions quantile conditionnelles des coûts des engrais. L'analyse comparative des résultats économétriques pour les principaux produits entre les pays européens illustre la pertinence des typologies obtenues pour les comparaisons internationales basées sur la productivité spécifique de leurs intrants. |
| Keywords: | intervalles d'estimation,agricultural product,European countries,classification symbolique,quantile regression,empirical distributions,specific cost,symbolic clustering,interval estimates,distributions empiriques,coût spécifique,produit agricole : pays européens,régression quantile |
| Date: | 2020–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02806732&r=all |
| By: | Robert J R Elliott (University of Birmingham); Ingmar Schumacher (IPAG Business School); Cees Withagen (Vrije Universiteit Amsterdam,) |
| Abstract: | In this article we draw upon early lessons from the 2020 Covid-19 crisis and discuss how these may relate to a future research agenda in environmental economics. In particular, we describe how the events surrounding the Covid-19 crisis may inform environmental research related to globalization and cooperation, the green transition, pricing carbon externalities, as well as the role of uncertainty and timing of policy inventions. We also discuss the implications for future empirical research in this area. |
| Keywords: | Covid-19, environmental economics, research agenda, green stimulus, cooperation, globalization, green transition |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:bir:birmec:20-15&r=all |
| By: | Matthew E Khan (Department of Economics, University of Southern California); Kamiar Mohaddes (Faculty of Economics, University of Cambridge); Ryan N.C. Ng (Faculty of Economics, University of Cambridge); Hashem Pesaran (University of Southern California and Trinity College); Mehdi Raisse (IMF) |
| Keywords: | Climate change, economic growth, adaptation, counterfactual analysis. |
| JEL: | C33 O40 O44 O51 Q51 Q54 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg1925&r=all |
| By: | Simone Pieralli (ECO-PUB - Economie Publique - AgroParisTech - INRA - Institut National de la Recherche Agronomique) |
| Abstract: | This study provides an economic method to identify the impact of changes in stochastic (climatic) and non-stochastic (farm managed) inputs on the production of a representative sample of French field crop farms between 1990 and 2015. This economic decompositionmethod specifically attributes output changes to the impact of soil characteristics, climatic variables, non-stochastic farm managed inputs, and technological adaptation change. We quantify these impacts by decomposing product changes over time via Luenberger-type indicators, through a second-order flexible parametric technology estimation. We identify large disruptive effects due to climatic variables, especially since the beginning of this century. |
| Abstract: | Cette étude fournit une méthodologie économique permettant d'identifier l'impact des modifications des intrants stochastiques (climatiques) et non stochastiques (gérés par les exploitations agricoles) sur la production d'un échantillon représentatif de grandes cultures françaises entre 1990 et 2015. Cette méthode de décomposition économique attribue spécifiquement les changements de production à l'impact des caractéristiques du sol, des variables climatiques, des intrants non stochastiques gérés par les exploitations et au changement de l'adaptation technologique. Nous quantifions ces impacts en décomposant l'évolution du produit dans le temps au moyen d'indicateurs de type Luenberger, avec une technologie paramétrique flexible de second ordre. Nous identifions des effets perturbateurs importants dus aux variables climatiques, en particulier depuis le début de ce siècle. |
| Keywords: | weather,France,climatic variability,agricultural production |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02786610&r=all |
| By: | Côme Billard (University of Paris-Dauphine / Climate Economics Chair); Anna Creti (University of Paris-Dauphine / Climate Economics Chair); Antoine Mandel (University of Paris-I Pantheon Sorbonne / Paris School of Economics) |
| Abstract: | In this paper, we reconstruct the network of environmental policies diffusion across American states from 1974 to 2018. Our results highlight an inefficient structure, suggesting lags in policy spreading. We identify Minnesota, California and Florida to be the main "facilitators" of the dynamics. Targeting them ensures the maximum likelihood of policy diffusion across the country. We then evaluate the determinants of the inferred network. Our results emphasize the role of contiguity and wealth in policy transmission. We also find sustainable economic systems as well as state’s expected economic losses due to climate change as critical factors of environmental policy flows. |
| Keywords: | Network, United States, Environmental Policy Diffusion, Cascades. |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2020.12&r=all |
| By: | Mayuko Nakamaru (School of Environment and Society, Tokyo Institute of Technology); Ayumi Onuma (Faculty of Economics, Keio University) |
| Abstract: | A major challenge in biodiversity management is overharvesting by unsustainable harvesters. If a scenario could be created where sustainable harvesters benefit more than the unsustainable ones, even in the short term, the issue of overharvesting would be solved. Then, everyone would follow the lead of sustainable harvesters. However, creating such a scenario is not an easy task; the difficulty is intensified if the habitat is open-access and a property rights system is not in place. There is a special case where sustainable harvesters are believed to gain more than unsustainable harvesters: swiftlets in Sarawak, Malaysia. Edible nests built by adult swiftlets are used as ingredients for a traditional luxurious soup in Chinese cuisine. A rise in nest prices has increased the instances of unsustainable harvesters wrongfully collecting nests along with the eggs and fledglings, which are then abandoned. Swiftlets live in caves and build nests on cave ceilings. It is known that swiftlets escape from cave ceilings when these harvesters take the nests, and they do not return to the same place. This ecological feature appears to work as the swiftlet's punishment against unsustainable harvesters. This paper constructs a stage-structured population model and examines the effect of property rights and the punishment by swiftlets on the population dynamics of the bird and on the economic return of both sustainable and unsustainable harvesters. Our findings are as follows: the punishment by swiftlets provides sustainable harvesters a higher short-term return than unsustainable harvesters under the property rights system, as long as swiftlets return to the cave after they escape from the unsustainable harvesters. While previous studies regarding the management of a commons have stressed the importance of rules and regulations for sustainable harvesting without considering the ecological uniqueness of each species, this study suggests that ecological exploration, and the discovery of ecological features are also essential for designing a sustainable framework. |
| Keywords: | the tragedy of the commons, property rights, indirect punishment by swiftlets, difference equations |
| JEL: | Q01 Q57 |
| Date: | 2020–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2020-011&r=all |
| By: | A. Hilario-Caballero; A. Garcia-Bernabeu; J. V. Salcedo; M. Vercher |
| Abstract: | Sustainable finance, which integrates environmental, social and governance (ESG) criteria on financial decisions rests on the fact that money should be used for good purposes. Thus, the financial sector is also expected to play a more important role to decarbonise the global economy. To align financial flows with a pathway towards a low-carbon economy, investors should be able to integrate in their financial decisions additional criteria beyond return and risk to manage climate risk. We propose a tri-criterion portfolio selection model to extend the classical Markowitz mean-variance approach in order to include investors preferences on the portfolio carbon risk exposure as an additional criterion. To approximate the 3D Pareto front we apply an efficient multi-objective genetic algorithm called ev-MOGA which is based on the concept of e-dominance. Furthermore, we introduce an a posteriori approach to incorporate the investor's preferences into the solution process regarding their sustainability preferences measured by the carbon risk exposure and his/her loss-adverse attitude. We test the performance of the proposed algorithm in a cross section of European SRI open-end funds to assess the extent to which climate related risk could be embedded in the portfolio according to the investor's preferences. |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2006.11888&r=all |
| By: | Luis Sarmiento |
| Abstract: | I assert that air pollution from nitrogen oxides affects the productivity of employees in Mexican court hearings. This is the first article analyzing this connection and the first to disentangle work-breaks from the productivity of white-collar workers. I merge hourly pollution with granular hearing data under the assumption that the length of the hearing approximates productivity and identify causality from panel and instrumental variable techniques. Results show a loss of 3.83 workdays during the sample period due to the productivity shock stemming from comparing exposure at the hours with the highest and lowest concentration of nitrogen oxides in the data-set. |
| Keywords: | Air pollution, nitrogen oxides, productivity, labor market effects |
| JEL: | C23 J24 Q53 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1878&r=all |
| By: | Pierre Dupraz (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thibault Salou (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Alexandre Gohin (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Projet Terres de Sources AMI-TIGA Développement d'un modèle économique Etude des coûts évités Rapport complet |
| Keywords: | production d’eau potable,pollution diffuse,pesticides,modélisation économique |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02788289&r=all |
| By: | Helena Ting; Martina Bozzola; Timothy Swanson |
| Abstract: | We study the propensity to save on permanent and transitory income based on a comprehensive household panel data-set from South Africa. We decompose income into permanent and transitory components, and proxy transitory income by weather deviations from thirty-year normal. We evaluate the propensity to save by OLS and by median regressions. By OLS, we find that the propensity to save on transitory income is not significantly different from one, while the propensity to save on permanent income is significantly different from zero. This finding is in alignment with previous studies. By median regression, we find that the propensity to save by permanent or transitory income are significantly different from either zero or one, meaning that the propensity to save represents some fractions of permanent and transitory income. We also evaluate the propensity to save by income quintiles using median regression. We find that the propensity to save from permanent and transitory income are only significantly different in the highest quintile when durable goods are considered as saving, while not significantly different in the lower 80% of the income distribution. In the top 20%, we find the propensity to save from transitory income is significantly higher than that of permanent income, although it still does not reach one. |
| Keywords: | consumption and saving; health behavior; agriculture; climate; Africa; South Africa. |
| JEL: | D14 I14 Q12 Q56 |
| Date: | 2020–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:gii:ciesrp:cies_rp_49_v2&r=all |
| By: | Boyd D. Blackwell (Centre for Ecology and Biodiversity, Institute for Marine and Antarctic Studies, University of Tasmania.; Centre for Aboriginal Economic Policy Research, The Australian National University.); John Asafu-Adjaye (School of Economics, University of Queensland) |
| Abstract: | This study assesses the economic value held by recreational users for the replication of Noosa National Park, Australia. The lower bound benefits accruing to recreational users amounts to $19 per person per visit, resulting in a total annual use value of approximately $28 m-$44 m. We find a significant proportion of park users also hold non-use values for the park. The results lend weight to calls for the preservation of national parks with similar attributes. While user pays may present opportunities for better management of parks, user fees can be politically unpalatable, prevent equity in access, and create perverse incentives to create and manage parks solely for their recreational values rather than the broader set of ecosystem goods and services they provide. |
| Keywords: | Protected areas; economic values; non-market valuation; user pays; estate expansion |
| Date: | 2020–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:622&r=all |
| By: | Andrew B. Martinez (Office of Macroeconomic Analysis, US Department of the Treasury) |
| Abstract: | I analyze damages from hurricane strikes on the United States since 1955. Using machine learning methods to select the most important drivers for damages, I show that large errors in a hurricane’s predicted landfall location result in higher damages. This relationship holds across a wide range of model specifications and when controlling for ex-ante uncertainty and potential endogeneity. Using a counterfactual exercise I find that the cumulative reduction in damages from forecast improvements since 1970 is about $82 billion, which exceeds the U.S. government’s spending on the forecasts and private willingness to pay for them. |
| Keywords: | Adaptation, Model Selection, Natural Disasters, Uncertainty |
| JEL: | C51 C52 Q51 Q54 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:gwc:wpaper:2020-003&r=all |
| By: | Adams, Nicole; Tell, Lisa A.; Bandivadekar, Ruta R.; Bay, Rachael |
| Abstract: | Recent research suggests that bird populations are declining at alarming rates across the United States. Over the last century, local, national, and international efforts to limit declines in bird populations have resulted in state and federal laws that now protect most of California’s 650 bird species. To comply with these protections, transportation infrastructure projects often face strict mitigation requirements, which can be expensive and cause delays. Understanding a project’s effects on specific bird populations can refine mitigation requirements and optimize infrastructure planning. The tools for identifying separate populations within species and understanding protected birds’ seasonal movement have been limited until recently. New genetic and genomic tools now provide a method for understanding population differentiation, which is vital to a wide array of conservation goals including estimating population declines, identifying potential for adaptation to stressors, measuring connectivity between populations, and estimating inbreeding. Because infrastructure projects can directly impact genetic diversity and connectivity, a toolkit to assess population structure and the distribution of genetic variation could aid in predicting and mitigating the impacts of such projects. As a test case, researchers at the University of California, Davis, sequenced entire genomes for 40 individual Anna’s hummingbirds (Calypte anna) from across California to identify breeding populations and develop a genetic toolkit to assign individuals to those populations. The presence of this species at bridge construction sites has resulted in construction delays in part because little information exists on the status of different populations within the species. This research brief summarizes findings and implications from the project. View the NCST Project Webpage |
| Keywords: | Life Sciences, Birds, Bridge construction, Connectivity, Genetics, Habitat (Ecology) |
| Date: | 2020–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt9np5d1j7&r=all |
| By: | Franz Sinabell; Mark Sommer (WIFO); Gerhard Streicher |
| Abstract: | The measures taken to limit the spread of the COVID-19 virus, which at the same time severely restrict economic activity in many countries, have consequences not only on unemployment, trade, production, income and value added, but also on the environment. This analysis examines the effects on greenhouse gas emissions in Austria. For this purpose, a new, lean and very flexible model, ALICE, was developed, which quantifies the short to medium-term effects of changes in production and consumption with regard to output, value added and greenhouse gas emissions. In order to determine the consequences as precisely as possible, 74 economic activities and households are distinguished. The model results show not only the direct consequences, but also the consequences resulting from the interdependence of the economic system. The scenario presented here is based on the forecast published by WIFO in late June 2020, which forecasts a decline in gross domestic product by 7 percent in 2020. The sector-specific declines in value added and expected changes in household consumption behaviour are the input parameters for the model that calculates the associated greenhouse gas emissions. Greenhouse gas emission – as defined by the Austrian inventory – is estimated to decline by 9.9 percent. This decline is due to the change of economic activities. Factors that also affect the level of emissions, such as ambient temperatures, changes in land use and forest growth, are not considered here. Following the conventions of the greenhouse gas inventory, international aviation is not included in the calculation either. There are several uncertainties because the economy may suffer even more than expected in June 2020. The actual production of industries and the behaviour of households throughout the year, especially with regard to their travel activities, may unfold in a different manner than expected. |
| Keywords: | TP_COVID |
| Date: | 2020–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2020:i:605&r=all |
| By: | Fernández-Méndez, Pablo |
| Abstract: | COVID-19 has made evident that we are ill-prepared to respond to an international health emergency, the complex interdependence of social and ecological systems, and that to reduce the risk of future zoonotic pandemics we must safeguard nature. Approaches based on complexity science taking into account that interdependence and its associated systemic risks must be mainstreamed in current policy making, in general. However, at present, that could result in failure for three main reasons: (1) those approaches might be too sophisticated for current policy making pursuing sustainable development; (2) the reductionist views from conventional economics still deeply influence economic and environmental policy making; (3) it is unlikely that far-reaching policies aimed at stimulating post-pandemic economic development can be steered through radically innovative approaches that remain untested. Here, using COVID-19 as an example, I suggest that the use of innovative complexity-based approaches could be enabled through intermediary approaches equipped to resonate with the mindset pervading current policy making. In particular, I propose to understand the response to unexpected systemic threats as instances of reactive policy making driven by radical uncertainty, and advance three notions that could enhance that understanding: modulating contingency, adaptive inference and blue uncertainty. |
| Date: | 2020–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:ing:wpaper:202003&r=all |
| By: | Méndez, Pablo F. (Institute for Innovation and Knowledge Management (INGENIO, Spanish Research Council-Universitat Politècnica de València)) |
| Abstract: | COVID-19 has made evident that we are ill-prepared to respond to an international health emergency, the complex interdependence of social and ecological systems, and that to reduce the risk of future zoonotic pandemics we must safeguard nature. Approaches based on complexity science taking into account that interdependence and its associated systemic risks must be mainstreamed in current policy making, in general. However, at present, that could result in failure for three main reasons: (1) those approaches might be too sophisticated for current policy making pursuing sustainable development; (2) the reductionist views from conventional economics still deeply influence economic and environmental policy making; (3) it is unlikely that far-reaching policies aimed at stimulating post-pandemic economic development can be steered through radically innovative approaches that remain untested. Here, using COVID-19 as an example, I suggest that the use of innovative complexity-based approaches could be enabled through intermediary approaches equipped to resonate with the mindset pervading current policy making. In particular, I propose to understand the response to unexpected systemic threats as instances of reactive policy making driven by radical uncertainty, and advance three notions that could enhance that understanding: modulating contingency, adaptive inference and blue uncertainty. |
| Date: | 2020–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:z2br5&r=all |
| By: | Stephan Marette (ECO-PUB - Economie Publique - AgroParisTech - INRA - Institut National de la Recherche Agronomique); Anne-Célia Disdier (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); John Beghin (Yeutter Institute of International Trade and Finance, University of Nebraska [Lincoln] - University of Nebraska System) |
| Abstract: | We compare consumers' attitude towards and willingness to pay (WTP) for gene-edited (GE) apples in Europe and the US. Using virtual choices in a lab and different technology messages, we estimate WTP of 162 French and 166 US consumers for new apples, which do not brown upon being sliced or cut. Messages center on (i) the social and private benefits of having the new apples, and (ii) possible technologies leading to this new benefit (conventional hybrids, GE, and genetically modified (GMO)). French consumers do not value the innovation and actually discount it when it is generated via biotechnology. US consumers do value the innovation as long as it is not generated by biotechnology. In both countries, the steepest discount is for GMO apples, followed by GE apples. Furthermore, the discounting occurs through "boycott" consumers who dislike biotechnology. However, the discounting is weaker for US consumers compared to French consumers. Favorable attitudes towards sciences and new technology totally offset the discounting of GE apples. |
| Keywords: | Gene editing,genetically modified organisms,hybrids,consumer information,experimental economics,willingness to pay |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02872222&r=all |
| By: | Clara Berestycki; Antoine Dechezleprêtre |
| Abstract: | Ambitious environmental policies are necessary to enable the transition to a greener economy. However, these policies could impose economic burdens on firms through different channels. They may increase barriers to entry and distort competition. They may also impose transaction and administrative costs related to permitting and licensing. If stringent environmental policies can be designed in a way that minimises such economic burdens, they can facilitate the achievement of economic and environmental goals and a cleaner growth model. |
| Keywords: | administrative burdens, barriers to entry, competition, environmental policies, environmental regulation, public policy evaluation |
| JEL: | Q58 L50 L59 |
| Date: | 2020–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1611-en&r=all |
| By: | Dominique Desbois (ECO-PUB - Economie Publique - AgroParisTech - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This paper proposes the use of structural modeling for the evaluation of ecosystem-based practices (e.g. biological control of crop pests) on the basis of data collected at the scale of the agricultural plot. In the first part, we present the analytical approach used - structural modeling in partial least squares, i.e. Partial Least Squares - Path Modeling (PLS-PM). In the second part, we present the field of study and the data considered in this work. In the third part, we present and discuss the results from the PLS-PM approach. Finally, we conclude on the validation of this approach and the prospects for its possible extension. |
| Abstract: | Cet article propose l'usage de la modélisation structurelle pour l'évaluation de pratiques écosystémiques (exemple contrôle biologique d'agresseurs des cultures) sur la base de données recueillies à l'échelle de la parcelle agricole. Dans la première partie, nous présentons la démarche d'analyse utilisée – modélisation structurelle en moindres carrés partiels, en anglais Partial Least Squares - Path Modeling (PLS-PM). Dans la seconde partie, nous présentons le terrain d'étude et les données considérées dans ce travail. Dans la troisième partie, nous présentons et discutons les résultats issus de la mise en approche PLS-PM. Enfin, nous concluons sur la validation de cette approche et les perspectives de son éventuelle extension. |
| Keywords: | biological pest,specific costs,gross margin,ecosystem-based practices,structural modeling,Partial Least Squares,plot scale,pratiques écosystémiques,modélisation structurelle,moindres carrés partiels,échelle parcellaire,bio-agresseur,coûts spécifiques,marge brute |
| Date: | 2020–05–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02635543&r=all |
| By: | Chalmers Mulwa; T.S Jayne; Milu Muyanga; Martine Visser |
| Abstract: | Pervasive threats of climate change and land degradation have compounded the low farm productivity problem inherent in sub-Saharan Africa. Though sustainable agricultural intensification practices have been shown to improve resilience of farm production in the face of these emerging threats, they suffer low adoption rates typical of technology adoption in these regions. Recent evidence shows the emergence of large grain traders in the smallholder farm output markets. Given established correlation between contractual farm arrangements and technology adoption, the hypothesis is that these traders can incentivize technology adoption at scale at the farm level, given their financial capacity. This study tests this hypothesis using a large panel dataset from Kenya spanning a decade. A dynamic random effects Probit model is used to evaluate how past adoption of sustainable inputs influence subsequent adoption behavior, while a control function approach is used evaluate how sales to large grain traders affect the adoption of sustainable inputs at the farm level. Results indicate that sales to large grain traders lead to higher adoption of inorganic fertilizer but not improved seed and manure, and that land ownership is a key success factor in explaining sales to these market actors. The adoption of improved seed and organic manure is persistent across time, indicating state dependence in the use of these inputs. These results suggest that strategies to foster engagements between large grain traders and farmers can enhance uptake of inorganic fertilizer; such strategies should also be accompanied by efforts to enable resource-poor farmers access to these markets |
| Keywords: | Large grain traders, Smallholder farm markets, Sustainable agricultural intensification, Kenya |
| JEL: | D13 Q12 Q13 Q16 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:812&r=all |
| By: | Serhan Cevik; João Tovar Jalles |
| Abstract: | Climate change is already a systemic risk to the global economy. While there is a large body of literature documenting potential economic consequences, there is scarce research on the link between climate change and sovereign risk. This paper therefore investigates the impact of climate change vulnerability and resilience on sovereign bond yields and spreads in 98 advanced and developing countries over the period 1995–2017. We find that the vulnerability and resilience to climate change have a significant impact on the cost government borrowing, after controlling for conventional determinants of sovereign risk. That is, countries that are more resilient to climate change have lower bond yields and spreads relative to countries with greater vulnerability to risks associated with climate change. Furthermore, partitioning the sample into country groups reveals that the magnitude and statistical significance of these effects are much greater in developing countries with weaker capacity to adapt to and mitigate the consequences of climate change. |
| Date: | 2020–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:20/79&r=all |
| By: | Bowei Guo (Faculty of Economics, University of Cambridge); David Newbery (Faculty of Economics, University of Cambridge); Giorgio Castagneto Gissey (University College London) |
| Keywords: | Carbon tax, Interconnectors, Cost-benefit analysis, M-GARCH |
| JEL: | Q48 F14 D61 C13 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg1918&r=all |
| By: | REY LOS SANTOS Luis (European Commission - JRC); WOJTOWICZ Krzysztof (European Commission - JRC); TAMBA Marie (European Commission - JRC); VANDYCK Toon (European Commission - JRC); WEITZEL Matthias (European Commission - JRC); SAVEYN Bert (European Commission - JRC); TEMURSHO Umed |
| Abstract: | In this document the economic balances for the Baseline scenario used in the Global Energy and Climate Outlook (GECO) 2018 are presented. The Baseline scenario represents a projection of the world economy with corresponding energy demand and GHGs emissions under the assumption of current climate and energy policies and also realization of Nationally Determined Contributions (NDC) in line with Paris agreement. As this scenario still does not allow avoiding catastrophic climate change in the future, it is used as a reference to compare alternative scenarios with more stringent policy measures. Economic balances are supplemented by energy balances, where the latter are coming from energy models, but are consistent with economic data. Finally we show GHGs evolution over time that comes from economic activity presented in the Baseline. The procedure that was used to generate Baseline scenario is called PIRAMID which stands for: Platform to Integrate, Reconcile and Align Model-based Input-output Data. PIRAMID is a new methodology to project Multi-Regional Input-Output tables over time. This approach allows for integrating data from external models and databases. The result is a series of consistent and transparent IO tables. |
| Keywords: | Baseline, CGE, Input-Output tables, Macroeconomic projections |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc113981&r=all |
| By: | Mathias Mier |
| Abstract: | We consider an economy in which competitive firms use three technologies for electricity production: pollutive fossils, intermittent renewables whose availability varies continuously over time, and storage. A Pigouvian tax implements the first-best solution. This is also the case for an electricity consumption tax that is supplemented by subsidies for renewables and a tax on storage, but not for high shares of renewables in the energy mix. We then analyze second-best subsidies for renewables and storage capacities when carbon pricing is imperfect. The subsidy rate for renewables decreases as electricity production becomes less reliant on fossils. The storage subsidy is usually negative as long as fossils contribute to filling the storage, but turns positive (and remains constant for linear demand) thereafter. This is because more storage capacity reduces the price during times of destorage, but raises it when electricity is taken from the market to fill the storage. This has countervailing effects on firms’ incentives to invest in fossil capacities, which are more pronounced for higher round-trip efficiency losses during a storage cycle. A numerical simulation illustrates that substantial subsidy payments are required even after fossils have been completely driven out of the market. |
| Keywords: | intermittent renewable energies, electricity storage, carbon externality, subsidies, peak-load pricing, optimal control |
| JEL: | H23 Q42 Q58 O33 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ifowps:_330&r=all |
| By: | Purkus, Alexandra; Lüdtke, Jan; Jochem, Dominik; Rüter, Sebastian; Weimar, Holger |
| Abstract: | Die Charta für Holz 2.0 verfolgt das Ziel, Beiträge der Holznutzung aus nachhaltiger Forstwirtschaft zum Klimaschutz sowie zur Wertschöpfung und Ressourceneffizienz zu stärken. Die Verwendung von Holz in der Konstruktion von Gebäuden kann hierzu einen wichtigen Beitrag leisten. Neben der Kohlenstoffspeicherwirkung langlebiger Holzprodukte lassen sich Treibhausgasemissionen reduzieren, wenn Materialien, die in der Herstellung energieintensiver sind, substituiert werden. Die Schonung nicht erneuerbarer Rohstoffe trägt zur gesamtwirtschaftlichen Ressourceneffizienz bei. Gleichzeitig stärkt Bauen mit Holz die Wertschöpfung im Cluster Forst & Holz und bietet Beschäftigungsperspektiven auch in ländlichen Räumen. Allerdings treten verschiedene Herausforderungen auf, welche die Marktausweitung insbesondere im Bereich innovativer, mehrgeschossiger Holzbauweisen behindern. Hierzu zählen z. B. Pfadabhängigkeiten bei der Gestaltung des Bauordnungsrechts oder bei Ausbildungsstrukturen, Informationsdefizite bei potenziellen Auftraggebern sowie die Vernachlässigung von Umweltwirkungen, die mit der Herstellung und Entsorgung von Gebäuden einhergehen. In den letzten Jahren haben sich jedoch dynamische Entwicklungen in den Rahmenbedingungen für das Bauen mit Holz ergeben. In den Arbeitsgruppen, welche die Umsetzung der Charta für Holz 2.0 begleiten, werden weitere Maßnahmen entwickelt, um Hemmnisse zu adressieren. Ziel der vorliegenden Studie ist daher zu analysieren, inwiefern Änderungen in marktlichen, rechtlichen und politischen Rahmenbedingungen in den letzten fünf Jahren zur Adressierung von Herausforderungen beigetragen haben. Neben einer Literatur- und Dokumentenanalyse wurden zur Bewertung von Entwicklungen Interviews mit Experten aus Verbänden, Wissenschaft, Verwaltung und Holzbau-Praxis durchgeführt. Um ein systemisches Verständnis davon zu erhalten, wie Veränderungen zusammenwirken, wird der Innovationssystemansatz als theoretischer Analyserahmen verwendet. So sind aus der innovationswissenschaftlichen Literatur spezifische Systemfunktionen bekannt, welche die Entstehung, Verbreitung und Nutzung von Innovationen unterstützen. Durch eine Analyse, die zeigt, inwiefern Entwicklungen in Rahmenbedingungen zur Stärkung entsprechender Funktionen beigetragen haben, wird eine theoriegestützte Grundlage für die Ableitung weiteren Handlungsbedarfs gelegt. Die im Rahmen der lernorientierten Evaluation der Charta für Holz 2.0 erstellte Studie unterstützt so laufende Arbeiten im Charta-Dialogprozess. |
| Keywords: | Holzbau,nachhaltiges Bauen,Klimaschutz,Bioökonomie,Holznutzung,Innovationssystemanalyse,wood construction,sustainable construction,climate change mitigation,bioeconomy,wood use,innovation system analysis |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:jhtire:78&r=all |
| By: | Qian, Xiaodong |
| Abstract: | Bikeshare programs are increasingly popular in the United States and they are an important part of sustainable transportation systems, offering a viable mode choice for many types of last-mile trips. This popularity means that an increasing number of people can enjoy the convenience of cycling and the associated physical health benefits without actually owning a bike (or having access to their own bikes). However, bikeshare systems have not captured high levels of ridership from disadvantaged populations. Many barriers exist that prohibit residents from disadvantaged communities from accessing bikeshare services. These barriers include absence of bikeshare stations within walking distances, lack of financial resources, cultural barriers, and/or unsafe cycling environments. Most of the current research on bikeshare programs focuses on societal benefits (e.g. reducing greenhouse gas emissions by replacing auto trips with bike trips) and bikeshare system management (e.g., bike repositioning between stations). There is some emerging research focused on equity issues in developing bikeshare. However, far less attention has been paid to bikeshare programs’ potential benefits for disadvantaged communities and virtually no quantitative research on how to design bikeshare systems to improve access for these populations. This dissertation work addresses three fundamental bikeshare equity problems. |
| Keywords: | Engineering, Social and Behavioral Sciences, Bikeshare, Demand estimation, Social equity, Sustainable transportation, Trip distribution |
| Date: | 2019–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt4kp5092s&r=all |
| By: | Chattopadhyay, Mriduchhanda; Arimura, Toshi H.; Katayama, Hajime; Sakudo, Mari; Yokoo, Hide-Fumi |
| Abstract: | An increasing number of empirical studies have investigated the determinants of cooking fuel choice in developing countries, where health risk from household air pollution is one of the most important issues. We contribute to this stream of literature by examining individuals’ subjective probabilistic expectations about health risks when using different types of fuel and their influence on cooking fuel usage patterns. We also explore how these patterns, in turn, affect health status. Using data collected from 557 rural Indian households, we find that subjective probabilistic expectations of becoming sick from dirty fuel usage have a negative influence on the fraction of days with dirty fuel usage in the household. The results also show that dirty fuel usage degrades the health of the individual. We then examine the effectiveness of information provision regarding the health risks of dirty/clean fuel usage. Our simulation demonstrates that although the provision of information results in statistically significant changes in the households’ cooking fuel usage patterns and in the individuals’ health status, the changes may be small in size. |
| Keywords: | Subjective probabilistic expectations, Household air pollution, Cooking fuel usage pattern, Health, Developing country |
| JEL: | I10 Q40 C83 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:hit:econdp:2020-05&r=all |
| By: | Marek Antosiewicz; Rodrigo Fuentes; Piotr Lewandowski; Jan Witajewski-Baltvilks |
| Abstract: | In this paper, we assess the distributional impact of introducing a carbon tax in Poland. We apply a two- step simulation procedure. First, we evaluate the economy-wide effects with a dynamic general equilibrium model. Second, we use a microsimulation model based on household budget survey data to assess the effects on various income groups and on inequality. We introduce a new adjustment channel related to employment changes, which is qualitatively different from price and behavioural effects, and is quantitatively important. We find that the overall distributional effect of a carbon tax is largely driven by how the revenue is spent: distributing the revenues from a carbon tax as lump-sum transfers to households reduces income inequality, while spending the revenues on a reduction of labour taxation increases inequality. These results could be relevant for other coal-producing countries, such as South Africa, Germany, or Australia |
| Keywords: | climate policy, distribution effect, microsimulation model, general equilibrium model, employment |
| JEL: | H23 P18 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:wpaper:wp072020&r=all |
| By: | Pierre Dupraz (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - INRA - Institut National de la Recherche Agronomique); Bertille Thareau (LARESS - ESA - Ecole Superieure Agronomique); Thomas Coisnon (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Abdoul Nasser Seyni Abdou (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - INRA - Institut National de la Recherche Agronomique) |
| Abstract: | Conception of local carbon markets connecting farmers and companies: socio-economic outlines of innovative devices. |
| Keywords: | carbon offset volontary market |
| Date: | 2020–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02503307&r=all |
| By: | Will, Sabine; Zander, Katrin |
| Abstract: | Within the BEPASO project, three scenarios have been developed which illustrate different possi-bilities for a bioeconomy in Germany in 2050. Bioeconomy refers to the transition from a fossil-based economy to a bio-based economy. The three developed scenarios "Bioeconomy on the Drip", "Bioeconomy Islands" and "Bioeconomy Change" evolved from an intensive stakeholder process with representative from industry, policy and science. The aim of this study here was to answer the question: How do citizens evaluate different scenarios of the bio-economy for Ger-many in 2050? To answer the research question raised, a qualitative (group discussions) and a quantitative survey step (online survey) were combined. From the citizens' point of view, the "Bioeconomy Change" scenario was the most acceptable since it was perceived to be sustainable and promising. Governmental measures such as the promotion of the use of renewable raw materials or a product tax based on the ecological foot-print of products were welcomed. However, a functioning compensation mechanism was reques-ted to cushion the likely financial burdens on low-income population groups. The acceptance of the "Bioeconomy Change" scenario depended largely on the attitudes of citizens towards the bio-economy. The more emphasis was placed on respecting natural interactions and on the need of sufficiency strategies, the greater the acceptance. The more relevant economic cost-benefit considerations were for the respondents, the lesser the acceptance. In the scenario "Bioeconomy Islands", the use of renewable energies and of use of bio-based raw materials were appreciated. According to the scenario, only industrialised countries were suppo-sed to benefit from these advances while developing countries presumably suffered from negati-ve ecological effects. These effects were heavily criticised. Also, the increasing social disparities described in this scenario were not acceptable from the respondents’ point of view. This scenario tended to be better perceived if respondents had a strong orientation towards technologic and economic efficiency. The “Bioeconomy on the Drip" scenario was the least accepted vision of the future due to its lack of sustainability. This was primarily attributed to the passive role of policy and the consumption-oriented lifestyle of the population. These disadvantages outweighed the positive effects, such as constant prices and unchanged living conditions. The more important an economic cost-benefit analysis was for respondents’ assessment of the bioeconomy, the better the "Bioeconomy on the Drip” scenario was perceived. In contrast, a positive environmental orientation had a negative effect on the perception of this scenario. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2020–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:jhimwp:303879&r=all |
| By: | OECD |
| Abstract: | Global demand for materials has been growing over the past century, driven by a steady economic growth in OECD countries, the industrialisation of emerging economies and a growing world population. At the global level, materials use more than doubled between 1990 and 2017, and it is projected to double again by 2060. Due to the growing amounts of materials use, environmental pressures such as land degradation, greenhouse gas emissions and the dispersion of toxic substances in the environment are projected to more than double in the decades to come. In this context, improving resource efficiency and stimulating the transition towards a more circular economy has become crucial. In recent years an increasing number of governments have started implementing policies and strategies to meet this objective, but stronger efforts are needed to significantly improve the sustainability of materials management and the circularity of economies across the world. |
| Date: | 2020–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaac:20-en&r=all |
| By: | Abbasi, Kashif; Jiao, Zhilun; Khan, Arman; Shahbaz, Muhammad |
| Abstract: | This paper explores the asymmetric relationship between renewable energy consumption, non-renewable energy, and terrorism on economic growth of Pakistan. We applied a novel econometric cointegration method known as a nonlinear autoregressive distributed lag modeling (NARDL). Our empirical findings indicate that positive and negative changes have a significant long-run asymmetric relationship between renewable energy, and terrorism on economic growth. We also found a negative and significant effect of non-renewable energy consumption on economic growth. To keep our environment clean and free of emissions, the study specifies policies that rely on renewable energy sources to boost economic growth. However, reduces terrorism has a positive impact on economic growth in the long-run and shows as an influential tool to combat terrorism in Pakistan. These novel results will help policy-makers and government officials to understand better the role of renewable energy and economic growth in Pakistan's development. |
| Keywords: | Renewable Energy, Non-renewable, Terrorism, Economic Growth, NARDL, Pakistan |
| JEL: | E0 |
| Date: | 2020–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101854&r=all |
| By: | Beja, Edsel Jr. |
| Abstract: | The paper tests the convergent validity and causality of the Consumer Expectations Survey from the Bangko Sentral ng Pilipinas and the Quarterly Social Weather Survey from the Social Weather Stations. The results indicate that there is convergent validity; and that there is bi-direction causality. Further results reveal that both share a common set of determinants. Overall, the findings imply that the Consumer Expectations Survey and the Quarterly Social Weather Survey embody comparable information. As such, one can be a proxy measure of the other. For policy, the findings support the view that a monetary approach for controlling the overall performance of the country, especially with regard to the inflation rate, in conjunction with a fiscal approach for securing the provision of basic social services are key to an effective management of sentiments and for an improvement in the quality of life. |
| Keywords: | Consumer Expectations Survey Quarterly Social Weather Survey Convergent validity Cointegration Causality Toda-Yamamoto procedure |
| JEL: | C1 I00 |
| Date: | 2019–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101074&r=all |
| By: | Th\'eophile Carniel; Jean-Michel Dalle |
| Abstract: | We suggest the use of indicators to analyze entrepreneurial ecosystems, in a way similar to ecological indicators: simple, measurable, and actionable characteristics, used to convey relevant information to stakeholders and policymakers. We define 3 possible such indicators: Fundraising Speed, Acceleration and nth-year speed, all related to the ability of startups to develop more or less rapidly in a given ecosystem. Results based on these 3 indicators for 6 prominent ecosystems (Berlin, Israel, London, New York, Paris, Silicon Valley) exhibit markedly different situations and trajectories. Altogether, they contribute to confirm that such indicators can help shed new and interesting light on entrepreneurial ecosystems, to the benefit of potentially more grounded policy decisions, and all the more so in otherwise blurred and somewhat cacophonic environments. |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2006.14313&r=all |
| By: | Vitor Gaspar; David Amaglobeli; Mercedes Garcia-Escribano; Delphine Prady; Mauricio Soto |
| Abstract: | The goal of this paper is to estimate the additional annual spending required for meaningful progress on the SDGs in these areas. Our estimates refer to additional spending in 2030, relative to a baseline of current spending to GDP in these sectors. Toward this end, we apply an innovative costing methodology to a sample of 155 countries: 49 low- income developing countries, 72 emerging market economies, and 34 advanced economies. And we refine the analysis with five country studies: Rwanda, Benin, Vietnam, Indonesia, and Guatemala. |
| Keywords: | Sustainable development;Sustainable Development Goals (SDG);Development;Fiscal policy;Economic growth;Tax revenues;Government expenditures;Poverty reduction;Low-income developing countries;Emerging markets;Development policy;National income;Economic conditions;Sustainable Development Goals,Structure and Scope of Government,General,International Fiscal Issues,Fiscal and Monetary Policy in Development,Health and Economic Development,Education and Economic Development,Railroads and Other Surface Transportation: Autos,Buses,Trucks,and Water Carriers,Electric Utilities,low-income develop country,emerge market economy,SDG,advanced economy,world GDP |
| Date: | 2019–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfsdn:2019/003&r=all |
| By: | Karsten Neuhoff (DIW Berlin); Robert A. Ritz (EPRG, University of Cambridge) |
| Keywords: | Carbon pricing, cost pass-through, free allocation, full carbon price internalization, international trade, market structure |
| JEL: | L11 L70 Q54 Q58 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg1935&r=all |
| By: | Duque, Valentina; Gilraine, Michael |
| Abstract: | This paper examines the effect of air pollution from power production on students’ cognitive outcomes. To do so, we leverage variation in power production over time, wind patterns, and plant closures. We find that each one million megawatt hours of coal-fired power production decreases student performance in schools within ten kilometers by 0.02 SD and 0.01 SD in math and English, respectively. We find no such relationship for gas-fired plants. Extrapolating our results nationwide indicates that the decline in coal use in the United States from 2007 through 2018 increased student performance by 0.003 SD and reduced the black-white test score gap by 0.002 SD. |
| Keywords: | Air Pollution; Coal Power; Education; Health. |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:syd:wpaper:2020-07&r=all |
| By: | Benedikt Janzen; Doina Radulescu |
| Abstract: | We employ hourly electricity load data for Switzerland as a real time indicator of the economic e ects of the lockdown following the spread of SARS-CoV-2. Our findings reveal that following the drastic lockdown, overall electricity use decreased by 4 per cent, with a reduction of even 11.3 per cent in the Canton of Ticino where the number of confirmed cases per capita was one of the highest in Switzerland and also stricter measures such as closures of construction sites and industrial companies were implemented on top of federal regulations. Looking at working days only, we estimate a Swiss-wide decrease in electricity consumption of 6.3 per cent. Assuming industry, services, transport and agriculture account for 67 per cent of electricity demand, the 4 per cent decrease in electricity use implies a 6 per cent output reduction in these sectors. In addition, the reduced electricity imports and the change in the generation mix of neighbouring countries, also translates into reduced CO2 emissions related to these imports. |
| Keywords: | COVID-19, economic indicator, electricity load, CO2 emissions |
| JEL: | C53 Q4 C3 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:ube:dpvwib:dp2010&r=all |
| By: | Istvan Feher (Szent István University); Andrew Fieldsend (Research Institute of Agricultural Economics, Budapest) |
| Abstract: | Together with Russia and Ukraine, Kazakhstan is considered as a ‘future main player’ in world grain supply. Many observers have indeed argued that Central Asia, and especially Kazakhstan, has the potential to enhance local, regional and global food security by expanding grain production and exports. This study provides an overview of the Kazakh farming sector; agricultural policies; wheat production, processing, and logistics, environmental resources and challenges; and on domestic consumption, exports and prices of wheat. Based on this information, it is concluded that Kazakhstan has a great potential for expanding its wheat production and exports in the future and it could play a non-negligible role in fulfilling local, but especially regional, food security. By compensating for the export fluctuations of other major players, it could have an important stabilizing role on the world market for wheat and thereby contribute to global food security. Nevertheless, this positive view on the future of Kazakh wheat production is highly conditional on several factors. Projections on the role of climate change are uncertain, but may lead to considerable yield losses. In addition, investments in infrastructure and machinery will be essential to unlock the wheat potential of the country and to compensate for the potential consequences of climate change, water scarcity and soil degradation. |
| Keywords: | Kazakhstan, wheat, food security |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc113009&r=all |
| By: | Larionova, Marina (Ларионова, Марина) (The Russian Presidential Academy of National Economy and Public Administration); Sakharov, Andrey (Сахаров, Андрей) (The Russian Presidential Academy of National Economy and Public Administration); Kolmar, Olga (Колмар, Ольга) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | Since the adoption of the Sustainable Development Goals by the UN in 2015 the G20 has repeatedly expressed its commitment to their implementation. The results of the study revealed the main areas in which the G20 contributes to the implementation of the trade and investment targets of the SDGs. At the same time, the factors hindering the implementation of the SDG trade and investment objectives by the G20 members were identified: A comparative analysis of the contribution of trade policies of the G20 members to the development of the trade and economic potential of the least developed countries revealed that a significant share of exports of the least developed countries (26.3% in the period 2015-2017) is affected by the protectionist measures of the G20 members. It was also established that the most potential harm to the export potential of the least developed partner countries was caused by the protectionist measures of the following G20 members: China (47.94 billion US dollars), USA (24.64 billion US dollars), EU (11.19 billion US dollars), Brazil (11.02 billion US dollars) and India (6.07 billion US dollars). |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:042010&r=all |
| By: | Margaret Insley (Department of Economics and The Water Institute, University of Waterloo, Canada); Yichun Huang (Department of Economics, University of Waterloo, Canada) |
| Abstract: | Large water demands by the mining industry are of increasing concern around the world. Command and control water regulations may be highly inefficient. The cost of a specific command and control water management policy is studied for an oil sands mining operation in Canada, where restrictions on water withdrawals vary with fluctuations in the river. A dynamic stochastic optimal control model is specified for a firm choosing production, water use, and the timing to build a water storage facility, under conditions of uncertain oil prices and uncertain water withdrawal limits. A numerical solution of an HJB equation is implemented to determine the difference in value and optimal controls for the oil-producing asset, with and without water restrictions. The cost of the restrictions is estimated to be quite small given the current reserve base and capacity of the industry. The marginal cost of tightening restrictions is non-monotonic with respect to price volatility. |
| JEL: | Q30 Q40 C61 C63 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:wat:wpaper:2003&r=all |
| By: | Matteo Fontana; Massimo Tavoni; Simone Vantini |
| Abstract: | Complex computational models are increasingly used by business and governments for making decisions, such as how and where to invest to transition to a low carbon world. Complexity arises with great evidence in the outputs generated by large scale models, and calls for the use of advanced Sensitivity Analysis techniques. To our knowledge, there are no methods able to perform sensitivity analysis for outputs that are more complex than scalar ones and to deal with model uncertainty using a sound statistical framework. The aim of this work is to address these two shortcomings by combining sensitivity and functional data analysis. We express output variables as smooth functions, employing a Functional Data Analysis (FDA) framework. We extend global sensitivity techniques to function-valued responses and perform significance testing over sensitivity indices. We apply the proposed methods to computer models used in climate economics. While confirming the qualitative intuitions of previous works, we are able to test the significance of input assumptions and of their interactions. Moreover, the proposed method allows to identify the time dynamics of sensitivity indices. |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2006.13850&r=all |
| By: | Lade, Gabriel; Rudik, Ivan (Cornell University) |
| Abstract: | Efficient pollution regulation equalizes marginal abatement costs across sources. We study a new flaring regulation in North Dakota and document its efficiency. We attribute most of the observed flaring reductions at new wells in the state since late 2014 to the regulation. We construct firm-specific marginal abatement cost curves and find that the same quantity of flaring reductions could have been achieved at 44% lower cost by taxing flared gas instead of imposing firm-specific requirements. Taxing flared gas at the existing public lands royalty rate would achieve 99% of the flaring reductions at 46% lower cost. |
| Date: | 2020–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:3e9xk&r=all |
| By: | Julia Rechlitz; Luis Sarmiento; Aleksandar Zaklan |
| Abstract: | This paper uses a panel of German individuals and highly granular pollution data to test if air pollution affects adults’ well-being indirectly through the health of their children. Results show that ozone decreases the well-being of individuals with children while not affecting persons without kids. We confirm the same effect for fine particulate matter and sulfur dioxide. Concerning the mechanism, we find that above-median earners drive this effect and that ozone causes losses in workdays to care for a sick child, providing evidence on the children’s health channel to adults’ welfare losses. |
| Keywords: | Air pollution, ozone, well-being, subjective health, children’s health, parental in- vestments |
| JEL: | Q53 I31 I18 J22 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1877&r=all |
| By: | Stephanie Lackner |
| Abstract: | Natural disasters are known to have devastating immediate impacts, but their long-run effect on economic growth is not well understood. For the natural hazard of earthquakes, this paper provides the first global empirical study on this topic that applies a measure of the exogenous physical hazard responsible for earthquake impacts, earthquake ground shaking. I exploit the random within-country year-to-year variation of shaking to identify the causal effect of earthquakes on economic growth. To construct a panel dataset with country-year observations of earthquake exposure and socioeconomic variables, I combine the universe of relevant earthquake ground shaking data from 1973 to 2015 with country-level World Bank indicators. I find negative long-run growth impacts for an average country comparable with recent findings for climate related natural disasters. A typical earthquake reduces GDP per capita by 1.6% eight years later, with substantial heterogeneity by country categories. In particular, low and middleincome countries experience the greatest long-run economic damages while high-income countries may even experience some positive “building back better†effects. Based on an analysis of alternative spatial aggregation approaches, I find earthquake impacts are driven by local high-intensity events rather than spatially diffuse exposure to lower intensity shaking. |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2018:i:190&r=all |
| By: | Moustafa, Khaled |
| Abstract: | Open and free access to scientific knowledge keeps scientists up to date with latest achievements in their respective fields to find solutions to health, environmental and technical issues. One of the most efficient venues in this regard is preprint servers- open repositories that allow authors to post their manuscripts ahead of formal peer review/publishing in traditional journals. The use and recognition of preprints as an essential part of science landscape are on the rise worldwide. In 2018, a European funder coalition, called Coalition S, has been formed and issued an open access plan, called Plan S, that requires authors of studies funded by the Coalition to publish their manuscripts- starting from January 2021- in open-access journals or repositories that meet the guidelines of Plan S. Many publishers and researchers welcomed the Plan S as a step forward to promote openness and free access to publicly funded research. To fit with the Plan S and open science actions, I'd propose a dedicated European preprint server/repository- called EuroRxiv (for European arXiv: https://eurorxiv.eu). The project- still under construction- is an individual initiative, and interested funders and European institutions (Universities, Coalition S, EuroScience, European Research Council "ERC", EuroDoc, etc.) are welcome to join/sponsor the project. EuroRxiv will be a multidisciplinary and multilingual repository that will accept manuscripts (preprints and postprints) in the various European languages. If well-funded and supported, EuroRxiv can become the European open science repository that help authors and research funded by the Coalition S meet the plan S's rules in the dissemination of scientific knowledge freely and transparently. |
| Date: | 2020–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:osf:frenxi:ey459&r=all |
| By: | Thorstensen, Vera Helena; Mota, Catherine Rebouças |
| Abstract: | No processo de acessão do Brasil à OCDE, o País passará pelo crivo de seus membros, com base nos indicadores verdes da Organização, quais sejam: os de sustentabilidade, os de crescimento verde e os de meio ambiente. Neste sentido, o objetivo do artigo é apresentar os indicadores verdes da OCDE e, desde já, evidenciar os dados que a Organização possui sobre o Brasil sob a análise de alguns desses indicadores. |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:fgv:eesptd:531&r=all |
| By: | Chichilnisky, Graciela (Columbia University); Hammond, Peter J. (University of Warwick); Stern, Nicholas (LSE) |
| Abstract: | Ramsey famously condemned discounting “future enjoyments” as “ethically indefensible”. Suppes enunciated an equity criterion which, when social choice is utilitarian, implies giving equal weight to all individuals’ utilities. By contrast, Arrow (1999a, b) accepted, perhaps reluctantly, what he called Koopmans’ (1960) “strong argument” implying that no equitable preference ordering exists for a sufficiently unrestricted domain of infinite utility streams. Here we derive an equitable utilitarian objective for a finite population based on a version of the Vickrey–Harsanyi original position, where there is an equal probability of becoming each person. For a potentially infinite population facing an exogenous stochastic process of extinction, an equitable extinction biased original position requires equal conditional probabilities, given that the individual’s generation survives the extinction process. Such a position is well-defined if and only if survival probabilities decline fast enough for the expected total number of individuals who can ever live to be finite. Then, provided that each individual’s utility is bounded both above and below, maximizing expected “extinction discounted” total utility — as advocated, inter alia, by the Stern Review on climate change — provides a coherent and dynamically consistent equitable objective, even when the population size of each generation can be chosen |
| Keywords: | Discounting ; time perspective ; fundamental preferences ; fundamental utilitarianism ; consequentialization ; Vickrey–Harsanyi original position ; Suppes equity ; intergenerational equity ; sustainable preferences ; extinction discounting. Jel Classification: D63 ; D70 ; D90 ; Q54 ; Q56 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:wcreta:55&r=all |
| By: | David Newbery (Faculty of Economics, University of Cambridge); Michael Pollitt (EPRG, CJBS, University of Cambridge); David M Reiner (EPRG, CJBS, University of Cambridge); Simon Taylor (EPRG, CJBS, University of Cambridge) |
| Keywords: | Nuclear power, financing, RAB, WACC, risk |
| JEL: | C54 D53 E43 G11 H54 L94 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg1926&r=all |
| By: | bahri, muhamad |
| Abstract: | The reservoir usually has multiple functions such as hydropower and water distribution for different end users. Multiple functions and multiple agents also mean there are tradeoffs among multiple functions among different end users. Through feedback loops, the system dynamics tools concern on the interdependency and the complexity of the nexus elements. This paper applies the system archetypes in investigating water-energy-food-land nexus (WEFLN) in the Jatiluhur reservoir, the largest reservoir in Indonesia. Using the system archetypes. It is found that there are growth engines to support industrial, residential, and fisheries sectors. However, water availability will be a crucial issue that possibly bounds the growth engines. This situation is called the limits to growth archetype. Another system archetype, the success to successful, is also identified. This archetype reminds us the distribution of water and power should be adjusted accordingly to sustain the growth in all sectors including industry, residence, and fisheries. |
| Date: | 2020–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:c9b7d&r=all |
| By: | L. Vanessa Smith; Nori Tarui; Takashi Yamagata |
| Abstract: | The shock to the global economy from COVID-19 is predicted to be faster and more severe than the 2008 global financial crisis and even the Great Depression. We assess its impact on global fossil fuel consumption and CO2 emissions over a two-year horizon. For this purpose we employ a global vector autoregressive (GVAR) model, which captures complex spatial-temporal interdependencies across countries due to the spread of the virus and associated international propagation of economic impact. The model makes use of a unique quarterly data set of coal, natural gas, and oil consumption, output and exchange rates, including global fossil fuel prices for 32 major CO2 emitting countries. We produce forecasts of coal, natural gas and oil consumption, conditional on GDP growth scenarios based on alternative IMF World Economic Outlook forecasts that were made before and after the outbreak. We also simulate the effect of a relative price change in fossil fuels, due to carbon pricing in all countries in the sample, on consumption and output. Our results show that fossil fuel consumption and CO2 emissions are expected to return to their pre-crisis levels, and even exceed them, within the two-year horizon despite the large reductions in the first quarter following the outbreak. Our forecasts anticipate more robust growth for emerging than for advanced economies. Recovery to the pre-crisis levels is expected even if another wave of pandemic occurs within a year. The results from our counterfactual carbon pricing scenario show that an increase in coal prices is expected to have a smaller impact on GDP than on fossil fuel consumption. Thus, the COVID-19 pandemic would not provide countries with a strong reason to delay climate change mitigation efforts. |
| Keywords: | COVID-19, CO2 emissions, fuel consumption, Global VAR (GVAR), conditional forecasts |
| JEL: | C33 O50 P18 Q41 Q43 Q47 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:20/07&r=all |
| By: | Breyne Johanna (Université de Liège - Gembloux); Abildtrup Jens (BETA - Bureau d'Économie Théorique et Appliquée - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Chaer Soraya (BETA - Bureau d'Économie Théorique et Appliquée - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Date: | 2020–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02861400&r=all |