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on Environmental Economics |
|
Issue of 2021‒06‒14
eighty-two papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Pe'er, Guy; Birkenstock, Maren; Lakner, Sebastian; Röder, Norbert |
| Abstract: | Despite significant efforts, investments and some local successes, the EU's Common Agricultural Policy (CAP) has not succeeded in halting the loss of farmland biodiversity. To address this (and other) weaknesses, the CAP post-2020 proposes a new "Green Architecture" comprising (inter alia) compulsory elements (enhanced conditionality through Good Agricultural and Environmental Conditions - GAEC), voluntary Agri-Environment-Climate Measures (AECMs), and a new instrument called "Eco-schemes". Will this new Green Architecture, combined with a result-based orientation of the CAP, help address the biodiversity crisis? To provide science-based feedback on this proposal, more than 300 scientists from 22 Member States (MSs) have provided their expertise through 13 workshops that took place between October and December 2020, and a follow up online survey. The results are published in Thünen Working Reports with 3 volumes. The Thünen Working Paper 175 - Volume 1 contains all results of the workshops with experts' assessment. The present Thünen Working Paper 175 - Volume 2 contains all reports of the Member-State-Workshops as well as an overview of the experts' opinions on the Flagship-Eco-schemes proposed by the EU Commission. In addition, a policy brief on the results was published in Thünen Working Paper 175 - Volume 3. |
| Keywords: | CAP,Common Agricultural Policy,AECM,Eco-schemes,European Union,Biodiversity |
| JEL: | Q15 Q18 Q57 Q58 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:jhtiwp:1752&r= |
| By: | Alan Davide Bazzana (University of Brescia, Fondazione Eni Enrico Mattei); Jeremy Foltz (University of Wisconsin-Madison); Ying Zhang (Johns Hopkins University) |
| Abstract: | The study proposes an agent-based model to investigate how adoption of climate smart agriculture (CSA) affects food security. The analysis investigates the role of social and ecological pressures (i.e. community network, climate change and environmental externalities) on the adoption of physical water and soil practices as well as crop rotation technique. The findings reveal that CSA may be an effective strategy to improve the rural populations' well-being for farm households with access to capital, strong social networks and access to integrated food markets. The climate scenario simulations indicate that farmers adopting CSA fare better than non-adopters, although CSA adoption does not fully counterbalance the severe climate pressures. In addition, farmers with poor connections to food markets benefit less from CSA due to stronger price oscillations. These results call for an active role for policy makers in encouraging adaptation through CSA adoption by increasing access to capital, improving food market integration and building social networks. |
| Keywords: | Climate Smart Agriculture, Food Security, Agent-Based Modelling, Externality, Sustainable Development |
| JEL: | C63 O13 Q1 Q15 Q55 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2021.18&r= |
| By: | Woźniak, Marian |
| Abstract: | The purpose of the article is to find out the opinions of rural youth regarding their awareness of climate change and the impact of this change on agriculture, and based on it, to determine whether these young people have adequate knowledge about global climate change. This goal results from the fact that the world is more and more severely affected by the effects of climate change associated with a more frequent occurrence of extreme weather phenomena, air temperature increase, periodic drought and heat waves, violent hurricanes or melting glaciers. These changes, which are already beginning to take a stage of crisis, are mainly associated with the emission of greenhouse gases, and above all carbon dioxide, for which humanity is primarily responsible. It is therefore necessary to increase the awareness of rural residents, starting with children and young people, who in the near future will steer the development of regions and the world, about how great a threat are progressive climate changes to them, agriculture, and consequently to food security and human health. Young people currently need appropriate support from scientists and teachers who will help them understand and realize how important and necessary it is to undertake adaptation measures related to eliminating threats resulting from climate change, growing plant species more resistant to climatic conditions, protecting biodiversity, and water resources, forests and soil. The article presents the causes and consequences of climate change in the light of research and public opinion, the impact of climate change on agriculture and the opinions of the surveyed rural youth from the Podkarpackie Province on contemporary climate change. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:311264&r= |
| By: | Chien, Fengsheng; Anwar, Ahsan; Hsu, Ching-Chi; Sharif, Arshian; Razzaq, Asif; Sinha, Avik |
| Abstract: | Sustainability through information and communication technologies is a complex matter, raising interesting debate among researchers. Pursuing the same, this research investigates the impact of information and communication technologies, economic growth, and financial development on carbon dioxide emissions by simultaneously testing the Environmental Kuznets curve (EKC) hypothesis in BRICS countries. In doing so, this study employs Methods of Moments - Quantile Regression, which confirms that the effects of the explanatory variables vary across different quantiles of carbon dioxide emissions. The overall results indicate that economic growth and financial development contribute to carbon dioxide emissions across all quantiles, while information and communication technologies significantly mitigate the level of carbon dioxide emissions only at lower emissions quantiles. Moreover, the results confirm the presence of the EKC hypothesis. Interestingly, the effect of economic growth and information and communication technologies on carbon dioxide emissions is lowest in magnitude at lower quantiles and highest at higher quantiles of carbon dioxide emissions. The empirical findings of DH panel heterogenous causality test confirm bidirectional causality between the model parameters, indicating that any policy intervention concerning explanatory variables significantly causes carbon dioxide emissions and vice versa. The results set out the foundation for policymakers to devise a policy framework to attain the objectives of Sustainable Development Goals (SDGs). |
| Keywords: | ICT; Financial development; EKC hypothesis; CO2 emissions; BRICS; MMQR |
| JEL: | Q5 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108162&r= |
| By: | Pe'er, Guy; Birkenstock, Maren; Lakner, Sebastian; Röder, Norbert |
| Abstract: | Despite significant efforts, substantial investments and some local successes, the EU's Common Agricultural Policy (CAP) has not succeeded in halting the loss of farmland biodiversity. To address these weaknesses, the CAP post-2020 proposes a new "Green Architecture" comprising, inter alia, compulsory elements (enhanced conditionality through Good Agricultural and Environmental Conditions - GAEC), voluntary Agri-Environment-Climate Measures (AECMs), and a new instrument called "Eco-schemes". Will this new Green Architecture, combined with a result-based orientation of the CAP, help address the biodiversity crisis? To provide science-based feedback on this proposal, more than 300 scientists from 22 Member States (MSs) have provided their expertise through 13 workshops that took place between October-December 2020, as well as a follow up online survey. The results are published as Thünen Working Paper 1751 comprising three volumes: Thünen Working Paper Vol. 1 (this document) contains a comprehensive synthesis of the results of the workshops alongside experts' assessments of the flagship Eco-schemes proposed by the European Commission. Thünen Working Paper Vol. 2 contains the full reports of the Member State Workshops (Annex I) and the inputs submitted by the experts' regarding their opinions on the Flagship-Eco-schemes proposed by the EU Commission (Annex II)2. A policy brief is published as Thünen Working Paper Vol. 33. Although the Working Paper focuses on the proposed CAP's performance for biodiversity as a core topic, benefits for climate change mitigation and other environmental aspects were highlighted by workshop participants; and economic considerations were highlighted where relevant. [ ...] |
| Keywords: | CAP,Common Agricultural Policy,AECM,Eco-schemes,European Union,Biodiversity |
| JEL: | Q15 Q18 Q57 Q58 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:jhtiwp:1751&r= |
| By: | Torsten Ehlers; Frank Packer; Kathrin de Greiff |
| Abstract: | Do banks price the risks of climate policy change? Combining syndicated loan data with carbon intensity data (CO2 emissions relative to revenue) of borrowers across a wide range of industries, we find a significant "carbon premium" since the Paris Agreement. The loan risk premium related to CO2 emission intensity is apparent across industries and broader than that due simply to "stranded assets" in fossil fuel or other carbon-intensive industries. The price of risk, however, appears to be relatively low given the material risks faced by borrowers. Only carbon emissions directly caused by the firm (scope 1) are priced, and not the overall carbon footprint including indirect emissions. "Green" banks do not appear to price carbon risk differently from other banks. |
| Keywords: | environmental policy, climate policy risk, transition risk, loan pricing |
| JEL: | G2 Q01 Q5 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:946&r= |
| By: | Sharma, Rajesh; Sinha, Avik; Kautish, Pradeep |
| Abstract: | The consistent performance on the economic front and alarmingly increasing air pollution in the eight emerging economies of South and Southeast Asia compelled us to scrutinize whether the association between per capita income and carbon dioxide (CO2) emissions remained nonlinear during the study period (1990-2015). Further, we intended to examine the long-run impacts of financial development, trade expansion, and nonrenewable energy consumption on CO2 emissions. Considering the possibility of the cross-sectional dependency, we employed a relatively new approach, i.e. the cross-sectional augmented distributed lag mean estimation. The simulation results of the study confirmed an N-shaped environmental Kuznets curve in the selected emerging economies. Further, the improvements in the financial sector, nonrenewable energy consumption, and trade expansion contributed to increasing the level of CO2 emissions in the long run. Based on the outcomes, we proposed the policy framework, which may help in achieving Sustainable Development Goals. |
| Keywords: | CO2 emissions; financial development; nonrenewable energy resources; South and Southeast Asian countries; CS-DL |
| JEL: | Q5 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108163&r= |
| By: | Alan Finkelstein Shapiro (Tufts University); Gilbert E. Metcalf (Tufts University) |
| Abstract: | We analyze the quantitative labor market and aggregate effects of a carbon tax in a framework with pollution externalities and equilibrium unemployment. Our model incorporates endogenous labor force participation and two margins of adjustment influenced by carbon taxes: firm creation and green production-technology adoption. A carbon-tax policy that reduces carbon emissions by 35 percent - roughly the emissions reductions that will be required under the Biden Administration's new commitment under the Paris Agreement - and transfers the tax revenue to households generates mild positive long-run effects on consumption and output; a marginal increase in the unemployment and labor force participation rates; and an expansion in the number and fraction of firms that use green technologies. In the short term, the adjustment to higher carbon taxes is accompanied by gradual gains in output and consumption and a negligible expansion in unemployment. Critically, abstracting from endogenous firm entry and green-technology adoption implies that the same policy has substantial adverse short- and long-term effects on labor income, consumption, and output. Our findings highlight the importance of these margins for a comprehensive assessment of the labor market and aggregate effects of carbon taxes. |
| Keywords: | Environmental and Fiscal Policy, Carbon Tax, Endogenous Firm Entry, Green Technology Adoption, Search Frictions, Unemployment, Labor Force Participation |
| JEL: | E20 E24 E62 H23 O33 Q52 Q55 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2021.17&r= |
| By: | Böhringer, Christoph; Peterson, Sonja; Rutherford, Thomas F.; Schneider, Jan; Winkler, Malte |
| Abstract: | This article summarizes insights of the 36th Energy Modeling Forum study (EMF36) on the magnitude and distribution of economic adjustment costs to greenhouse gas emission reduction targets. Under the Paris Agreement countries voluntarily committed themselves to emission reductions - so-called Nationally Determined Contributions (NDCs) - in order to combat global warming. The study suggests that tightening of NDCs in line with the commonly agreed 2 degrees temperature target will induce global economic costs of roughly 1% in 2030 - yet, these costs are unevenly spread across regions with fossil fuel exporting countries being most adversely affected from the transition towards a low-carbon economy. In order to reduce adjustment costs at the global and regional level, comprehensive emissions trading which exploits leastcost abatement options is strongly desirable as it can relax contentious normative debates on equitable burden sharing. Lump-sum recycling of revenues from emissions pricing in equal amounts to every household appeals as an attractive strategy to mitigate regressive effects and thereby make stringent climate policy more acceptable on societal fairness grounds. |
| Keywords: | Paris Agreement,emissions pricing and trading,revenue recycling |
| JEL: | D58 H23 Q54 Q58 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2183&r= |
| By: | Renaud Coulomb (University of Melbourne); Fanny Henriet (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - 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); Léo Reitzmann (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Not all barrels of oil are created equal: their extraction varies in both private cost and carbon intensity. Using a rich micro-dataset on World oil fields and estimates of their carbon intensities and private extraction costs, this paper quantifies the additional emissions and costs from having extracted the 'wrong' deposits. We do so by comparing historic deposit-level supplies to counterfactuals that factor in pollution costs, while keeping annual global consumption unchanged. Between 1992 and 2018, carbon misallocation amounted to at least 10.02 GtCO2 with an environmental cost evaluated at 2 trillion US dollars (2018). This translates into a significant supply-side ecological debt for major producers of dirty oil. Looking towards the future, we estimate the gains from making deposit-level extraction socially-optimal, and document the very unequal distribution of the subsequent stranded oil reserves across countries. |
| Keywords: | climate change,oil,carbon mitigation,misallocation,stranded assets |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-03244647&r= |
| By: | Pe'er, Guy; Birkenstock, Maren; Lakner, Sebastian; Röder, Norbert |
| Abstract: | Despite significant efforts, investments and some local successes, the EU's Common Agricultural Policy (CAP) has not succeeded in halting the loss of farmland biodiversity. To address these weaknesses, the CAP post-2020 proposes a new "Green Architecture" comprising, inter alia, compulsory elements (enhanced conditionality through Good Agricultural and Environmental Conditions - GAEC), voluntary Agri-Environment-Climate Measures (AECM), and a new instrument called "Eco-schemes". Will this new Green Architecture, combined with a result-based orientation of the CAP, help address the biodiversity crisis? To provide science-based feedback on this proposal, more than 300 scientists from 22 MSs have provided their expertise through 13 workshops that took place between October-December 2020, and a follow up online survey. The results are published in Thünen Working Paper 1751 comprising three volumes: Volume 1 is a synthesis of the results from all workshops and expert inputs as submitted through the online survey. 2 Volume 2 contains the full reports from all MS Workshops as well as all expert inputs regarding their opinions on the Flagship-Eco-schemes proposed by the European Commission. 3 Thünen Working Paper 175 - Volume 3 (this document) offers a policy brief summarizing the results. Although the Working Paper focuses on the proposed CAP's performance for biodiversity as a core topic, benefits for climate change mitigation and other environmental aspects were highlighted by workshop participants; and economic considerations were highlighted where relevant. [...] |
| Keywords: | CAP,Common Agricultural Policy,AECM,Eco-schemes,Green Architecture,European Union,Biodiversity |
| JEL: | Q15 Q18 Q57 Q5 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:jhtiwp:1753&r= |
| By: | Richard Jaimes |
| Abstract: | This paper develops a climate–economy model to study the joint design of optimal climate and fiscal policies in economies with overlapping generations. I demonstrate how capital taxation, if optimal, drives a wedge between the market costs of carbon (the net present value of marginal damages using the market interest rate) and the Pigouvian tax (the net present value of marginal damages using the consumption discount rate of successive overlapping generations). In contrast to deterministic infinitely-lived representative agent models, at the optimum, the capital income tax is positive, the carbon price equals the market costs of carbon but it falls short of the Pigouvian tax when (i) preferences are not separable over consumption and leisure; and (ii) labor income taxes cannot be age-dependent. I also show that restrictions on climate change policy provide a novel rationale for positive capital income taxes. |
| Keywords: | Climate change, Environmental policies, Externalities, Fiscal policy, Optimaltaxation. |
| JEL: | E62 H21 H23 Q58 |
| Date: | 2021–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:col:000416:019283&r= |
| By: | Richard Jaimes |
| Abstract: | This paper considers an overlapping generations model with idiosyncratic labor income risk and a climate externality. We illustrate analytically that market-based climate policies must be adjusted when there are other intertemporal distortions in the economy. Specifically, we show that under precautionary savings the government finds it optimal to tax capital and to correct the carbon price accordingly. In a numerical exercise, we find that idiosyncratic risk leads to an optimal capital income tax rate of 48% and a carbon price 11% lower than its Pigouvian level in the first best |
| Keywords: | Fiscal policy, Optimal taxation, Externalities, Environmental policies. |
| JEL: | E62 H21 H23 Q58 |
| Date: | 2021–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:col:000416:019276&r= |
| By: | Anwar, Ahsan; Sharif, Arshian; Fatima, Saba; Ahmad, Paiman; Sinha, Avik; Khan, Syed Abdul Rehman; Jermsittiparsert, Kittisak |
| Abstract: | Transportation infrastructure is a pillar of economic development as well as a main contributor to climate change. Therefore, it is necessary to transform the transport sector investment into climate-resilient, low-carbon transportation choices in order to achieve sustainable transportation infrastructure. In case of China, this transformation might be necessary from the perspective of the “New-style Urbanization” strategy, and for fulfilling this strategy, policy realignment is required. To address this policy-level void in the literature, we explore the influence of public private partnerships investment in transport sector, renewable energy consumption, urbanization on transport-induced carbon emissions in China. For this purpose, we apply Quantile Autoregressive Distributed Lagged (QARDL) method during 1990Q1-2018Q4. Based on the results of the study, a multipronged sustainable development goal (SDG) framework has been suggested, under which SDG 11, SDG 13, and SDG 8 are addressed, while using SDG 17 as a vehicle. |
| Keywords: | Public Private partnership investment in transport, Transport CO2 emissions, Urbanization, Renewable energy consumption, Quantile ARDL |
| JEL: | Q5 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108160&r= |
| By: | Böhm, Jens; Peterson, Sonja |
| Abstract: | Different reports including the broadly cited OECD fossil fuel subsidy inventory arrive at high monetary values of fossil fuel subsidies and suggest that phasing out these subsidies has a high potential to increase the efficiency of climate policies. We show that the inventory approach gives misleading information about this potential since there is little correlation with net carbon prices that actually reflect the stringency of climate policies. We use data on net fossil fuel taxation from the OECD's Taxing Energy Use report and augment it with data on subsidies and emission permits, to calculate national and sectoral net carbon prices for the top six emitters (China, US, India, Russia, Japan and Germany) and for Poland and Sweden, two European countries perceived as examples of opposing environmental policies. Our results show that in high-income countries, subsidies mainly relate to reduced fuel tax rates for certain uses, so that e.g. Sweden, for which the OECD inventory reports subsidies per ton of CO2 26 times higher than the US, has a 770% higher national net carbon price than the US. While Germany and Russia have similar subsidy levels in the OECD inventory, the national net carbon price in Germany is 50 €/tCO2, while producer subsidies lead to a negative net carbon price of -6€/tCO2 in Russia. Our results illustrate that raising taxes on fossil fuels will often lead to higher reported inventory subsidies. Inventory measures thus give little information about the efficiency of climate policy. Our analysis also shows the large differences in net carbon prices across countries and across sectors within countries. Net carbon prices should replace fossil fuel subsidies in the policy debates and become the basis for national energy tax reforms and international agreements on minimum carbon prices. |
| Keywords: | fossil fuel subsidies,carbon pricing,energy taxation,climate policy |
| JEL: | H2 Q48 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2186&r= |
| By: | Wrzaszcz, Wioletta; Prandecki, Konrad |
| Abstract: | Growing environmental and climate problems are forcing the search for effective solutions to economic activity, including agriculture. The popularization of relevant production practices and techniques is of great importance in this regard. The direction of European agriculture is of particular importance for solving environmental and climate problems. For years, strategies or sustainable development programs have been implemented, which, despite initiating the desired direction of changes, are still insufficient in terms of perceived needs. In December 2019, the European Commission issued a communication on the European Green Deal strategy, which was intended to launch further international action to achieve ambitious climate and environmental targets. The aim of the paper is to present the main issues related to the implementation of the European Green Deal strategy, including agriculture, and to outline the challenges facing it. The study used a review of literature and legal acts. The results of the study indicated the appropriateness of seeking further economic solutions consistent with the European Green Deal strategy. The goals included in the European Green Deal are very ambitious and will require a complex, multi-threaded approach to agricultural policy and a change in the attitude of farmers, i.e., greater consideration of non-production aspects of their activity, in particular in the field of environmental protection. At the same time, the European Green Deal should be assessed in a much broader sense than in terms of environmental requirements. The holistic nature of this document makes it a step towards building a new economy that takes into account the noneconomic consequences of the actions taken. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:311273&r= |
| By: | Roland Ismer; Harro van Asselt; Jennifer Haverkamp; Michael Mehling; Karsten Neuhoff; Alice Pirlot |
| Abstract: | To reach climate neutrality, carbon emissions from the production of basic materials need to be significantly reduced. For governments’ support measures to be consistent with their World Trade Organization obligations, they need to be compatible with the WTO’s Agreement on Subsidies and Countervailing Measures (ASCM). This paper analyzes the ASCM consistency of three selected support schemes, namely: (1) free allocation under emissions trading systems such as the European Union Emissions Trading System (EU ETS) to operators of installations deemed to be at significant risk of carbon leakage; (2) a combination of a charge on carbon-intensive materials with free allocation; and (3) carbon contracts for differences (CCfDs) for operators of climate-neutral installations, in which governments pay out the incremental costs of climate neutral-production processes relative to the costs of conventional primary material production. The analysis reveals that the current system of carbon leakage protection through free allocation is vulnerable to challenges under the ASCM. By contrast, a transition to a combination of free allocation and a charge on carbon-intensive materials would implement consistent carbon-pricing and thus would very likely not amount to a subsidy under the ASCM. In a similar vein, support for climate-neutral installations through CCfDs could be designed in such a way that it confers no benefit, so that it would also not constitute a subsidy. |
| Keywords: | WTO, ASCM, Carbon Pricing, Free allowance allocation, Climate Contribution, Carbon Contracts for Difference |
| JEL: | K32 F13 Q54 Q56 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1948&r= |
| By: | Dauren Oshakbaev; Zhanna Akisheva; Alexandre Martoussevitch (OECD) |
| Abstract: | Water security is a matter of great national importance for Kazakhstan, with its Security Council meeting on 26 June 2019 devoted to “Ensuring Water Security”. This paper presents recent progress in Kazakhstan with regard to identifying water security priorities and establishing indicators to monitor and measure progress towards achieving water security. The paper also analyses those water security indicators that simultaneously relate to the “nationalised” Green Growth Indicators (GGIs) and Sustainable Development Goal (SDG) indicators that are relevant to water security, and also identifies opportunities for complimentary indicators to be developed to track the full suite of water security targets. The paper identifies remaining challenges for future work in this domain, including improving data collection and reporting; and integrating water security indicators into relevant policy documents, strategies and plans to secure the technical and political attention necessary to drive progress in this domain. |
| Keywords: | Kazakhstan, SDG indicators, water security, water security indicators, water-related green growth |
| JEL: | Q25 Q15 Q28 Q56 D78 |
| Date: | 2021–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:177-en&r= |
| By: | Ambre Maucorps (The Vienna Institute for International Economic Studies, wiiw); Roman Römisch (The Vienna Institute for International Economic Studies, wiiw); Roman Stöllinger (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Chart of the month Economic growth and carbon emissions in CESEE countries by Ambre Maucorps Opinion Corner Is a carbon border tax a good idea? by Roman Stöllinger This contribution argues that a carbon border tax is a promising tool to achieve the goals of the European Green Deal. Its implementation would enable the EU to earn a ‘triple dividend’ consisting of support for its ecological transformation, the mitigation of carbon leakage, and the provision of significant new funds for the EU budget. Are we tired of cohesion? by Roman Römisch Smaller EU transfers and low investment rates are dampening growth expectations in the EU’s less developed regions. As a consequence, we might soon see the end of the 20-year-long convergence process. The European Green Deal and agriculture are EU regional farming systems ready for the green transition? by Ambre Maucorps The European Green Deal calls on the farming sector to become more carbon efficient and environmentally friendly. Even though the majority of EU countries have reduced their greenhouse gas emissions from agriculture over the past three decades, only a few regions have a proper sustainability-oriented agriculture. The green transition is expected to be particularly problematic for the farming systems of Eastern European regions. Monthly and quarterly statistics for Central, East and Southeast Europe |
| Keywords: | economic growth, carbon emissions, EU emissions trading system, carbon leakage, carbon border tax, EU cohesion policy, investment rates, economic convergence, European Green Deal, regional farming systems, Farm to Fork Strategy |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:wii:mpaper:mr:2020-12&r= |
| By: | Ulrich Eydam (University of Potsdam) |
| Abstract: | Promoting the decarbonization of economic activity through climate policies raises many questions. From a macroeconomic perspective, it is important to understand how these policies perform under uncertainty, how they affect short-run dynamics and to what extent they have distributional effects. In addition, uncertainties directly associated with climate policies, such as uncertainty about the carbon budget or emission intensities, become relevant aspects. We study the implications of emission reduction schemes within a Two-Agent New-Keynesian (TANK) model. This quantitative exercise, based on data for the German economy, provides various insights. In the light of frictions and fluctuations, compared to other instruments, a carbon price (i.e. tax) is associated with lower volatility in output and consumption. In terms of aggregate welfare, price instruments are found to be preferable. Conditional on the distribution of revenues from climate policies, quantity instruments can exert regressive effects, posing a larger economic loss on wealth-poor households, whereas price instruments are moderately progressive. Finally, we find that unexpected changes in climate policies can induce substantial aggregate adjustments. With uncertainty about the carbon budget, the costs of adjustment are larger under quantity instruments. |
| Keywords: | macroeconomic dynamics, environmental policy, inequality, policy design |
| JEL: | Q52 Q58 E32 E61 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:33&r= |
| By: | Injete Amondo, Emily; Mirzabaev, Alisher; Nshakira-Rukundo, Emmanuel |
| Abstract: | Children in rural farming households across the developing countries are often vulnerable to a multitude of risks, including health risks associated with climate change and variability. This study empirically traced the effect of extreme weather events on nutritional health outcomes among rural children in Uganda, while accounting for households’ behavioural responses. We combined four waves of the Uganda National Panel Survey (UNPS) for the period 2009-2014, with long-term rainfall and temperature datasets and study the effect of extreme weather shocks on child health. We find that droughts and heat waves worsened child anthropometrics, particularly child chronic undernutrition. Exposure to drought significantly lowered height-for-age scores (HAZ) of up to -0.57 standard deviations. The main causal transmission channels were through lower crop production and increased frequency of child diseases. We highlight on the importance of ex-ante resilience building against extreme weather events particularly when compared to ex-post relief actions. |
| Keywords: | Health Economics and Policy, Labor and Human Capital |
| Date: | 2021–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:311135&r= |
| By: | Woźniak, Leszek; Woźniak, Grzegorz |
| Abstract: | Implementing the concept of sustainable development of the food economy requires profound and rapid changes in this area of economic activity. Following the current path may intensify the already existing problem of the declining biological and health quality of food. The aim of the paper is to define the essence and specificity of eco-innovations as a factor of sustainable development of agriculture and food processing. Bibliometric analysis based on a review of literature and an analysis of its content showed a systematic increase in the interest of scientists in the theory and practice of eco-innovations. They will be of particular importance in the evolution of food production and processing towards methods guaranteeing the highest biological and health quality of food products. The following conclusions can be drawn: the European food economy needs a paradigm shift, i.e. it is necessary to restore and use agricultural and processing methods which will allow the return to a high content of nutrients in food. This need stems both from the very low biological and health quality of many products and also from a need to protect the agricultural environment in an effective manner. A basic instrument fostering positive evolution is the use of eco-innovations, including solutions known as traditiovations; the objectives of the European Green Deal will strongly favor the support of eco-innovations in food production and processing. |
| Keywords: | Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:311277&r= |
| By: | G. Cornelis van Kooten; Mark E. Eiswerth; Jonathon Izett; Alyssa R. Russell |
| Keywords: | climate science and climate modelling; energy balance; ocean heat; climate feedbacks; reforestation |
| JEL: | Q54 C61 E17 F64 H23 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:rep:wpaper:2021-01&r= |
| By: | Meghana Agarwala (Ashoka University); Shampa Bhattacharjee (Shiv Nadar University); Aparajita Dasgupta (Ashoka University) |
| Abstract: | Crop residue burning is a major concern for many countries since it leads to a deterioration of air quality, which has a number of health implications. This paper examines the unintended consequences of a policy aimed at improving the groundwater level on crop residue burning in India. The Preservation of Subsoil Water Act, 2009 was implemented in the Indian states of Punjab and Haryana in March 2009, and it bans the transplantation of paddy before mid-June to preserve groundwater. Theoretically, this leaves a short window of time for clearing the crop residue before the next crop and thus increases the likelihood of farmers adopting time saving methods like crop residue burning. Exploiting the spatial and temporal variation of the Preservation of Subsoil Water Act, we compare the bordering areas of Punjab and Haryana with that of the neighbouring states and find that the ban results in both delay and an increase in crop residue burning in the winter months. The findings have important implications for environmental policy design. |
| Keywords: | Crop Residue Burning, Groundwater, Water Policy, Waste Management, Air Pollution, India |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:ash:wpaper:61&r= |
| By: | Rudik, Ivan; Lyn, Gary; Tan, Weiliang; Ortiz-Bobea, Ariel |
| Abstract: | Climate change is expected to significantly affect the planet, but the ultimate economic impact depends on the structure of the economy and the extent to which markets can adapt to changes in local climatic conditions. Here we develop a dynamic-spatial multi-industry climate-economy model with several novel forms of heterogeneity. In our model, regions are linked through trade and factor markets, and daily temperature affects productivity growth and local amenities. We first demonstrate how to use equilibrium conditions of the model to estimate climate impacts on growth and amenities accounting for dynamic and spatial behavior. With a focus on the United States, we then simulate our model to quantify the value of adaptation through inter-state migration or by changing workers' industry of employment, which alter production patterns and trade. We find that market adaptation mitigates and even reverses the negative effects of climate change in the US. In total, market-based adaptation improves US welfare by 14 percentage points. Heterogeneity in industrial responses to climate change and within-year temperature variability play a central role in welfare and the benefits of adaptation. Heterogeneous industrial responses make climate change more beneficial by magnifying the benefits of trade and industry switching. Differences in temperature variability across space and time worsen welfare, and depress the value of adaptation through trade, migration, and industry switching. Our findings point to the importance of proper representation of industrial and climatic heterogeneity for quantifying the impacts of climate change and market-based adaptation. |
| Date: | 2021–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:202106020700001127&r= |
| By: | Luca Lo Re (International Energy Agency); Jane Ellis (OECD) |
| Abstract: | This paper identifies and analyses options for the design of the Article 6.4 mechanism in two key areas. These are the possible transition of eligible activities registered under the Kyoto Protocol’s Clean Development Mechanism (CDM) to the Article 6.4 mechanism; and the registration of new activities under the Article 6.4 mechanism. The paper outlines possible transition options and potential implications for four issues relating to host Party approval of activities and to the use, review and revision of baseline methodologies and accreditation standards. The paper also highlights the steps needed to register new or transitioned activities under the Article 6.4 mechanism, and how co-ordination between different actors can facilitate a transition. The paper concludes that there are options available to ensure that the Article 6.4 mechanism can be implemented within a few years of a formal agreement on the rules, modalities and procedures for Article 6, and can build on the significant experience gained with the CDM. The paper highlights different ways that this CDM experience can be built on, and outlines the varying administrative and environmental implications of doing so. |
| Keywords: | Article 6, carbon markets, CDM, Kyoto Protocol, Paris Agreement, UNFCCC |
| JEL: | F53 Q29 Q49 Q54 Q56 Q58 |
| Date: | 2021–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaab:2021/02-en&r= |
| By: | Cloete, Schalk; Ruhnau, Oliver; Cloete, Jan Hendrik; Hirth, Lion |
| Abstract: | Is there a place for today’s fossil fuel exporters in a low-carbon future? This study explores trade channels between energy exporters and importers using a novel electricity-hydrogen-steel energy systems model calibrated to Norway, a major natural gas producer, and Germany, a major energy consumer. Under tight emission constraints, Norway can supply Germany with electricity, (blue) hydrogen, or natural gas with re-import of captured CO2. Alternatively, it can use hydrogen to produce steel through direct reduction and supply it to the world market, an export route not available to other energy carriers due to high transport costs. Although results show that natural gas imports with CO2 capture in Germany is the least-cost solution, avoiding local CO2 handling via imports of blue hydrogen (direct or embodied in steel) involves only moderately higher costs. A robust hydrogen demand would allow Norway to profitably export all its natural gas production as blue hydrogen. However, diversification into local steel production, as one example of easy-to-export industrial base products, offers an effective hedge against the possibility of lower European blue hydrogen demand. Thus, it is recommended that hydrocarbon exporters like Norway consider a strategic energy export transition to a diversified mix of blue hydrogen and climate-neutral industrial base products. |
| Keywords: | Hydrogen economy,Energy-intensive industry,Decarbonization,CO2 capture and storage,Variable renewable energy |
| JEL: | Q4 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:234469&r= |
| By: | William D. Nordhaus (Cowles Foundation, Yale University) |
| Abstract: | A proposal to combat free-riding in international climate agreements is the notion of a “climate club†or coalition of countries to encourage high levels of participation. Empirical models of climate clubs in the early stages relied on the analysis of single-period coalition formation. The results suggested that there were limits on the potential strength of clubs and that it would be difficult to have deep abatement strategies in the club framework. The current work extends the single-period approach to many periods and develops an approach analyzing “supportable policies†to analyze multi-period clubs. The major surprise of the study is the interaction between the club structure and rapid technological change. Neither alone will produce incentive-compatible policies that can attain the ambitious objectives of international climate policy. The trade sanctions without rapid technological decarbonization will be too costly to produce highly costly abatement; similarly, rapid technological decarbonization by itself will not induce deep abatement because of country free-riding. But the two together can achieve the international objectives. |
| Keywords: | Climate change, Club, Optimal climate policy, Social cost of carbon |
| JEL: | Q5 Q54 C6 H4 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2286&r= |
| By: | Kristina Govorukha; Philip Mayer; Dirk Rübbelke |
| Abstract: | In order to achieve the commonly agreed emission reduction target, the European Commission developed binding national targets for each member state until 2030 and called upon the member states to submit National Energy and Climate Plans to ensure increased transparency for the respective national targets and strategies. An analysis of these plans shows that some of the emission reductions set at the national level prescribe a more ambitious decarbonisation than the EU-wide limits. However, since a transformation to a climate-friendly system requires considerable investment, the question arises as to why some states apparently want to be in the vanguard. We find that countries may have an incentive to outperform other states in the development of a low-carbon electricity system in order to pass on part of the transformation costs to neighbouring countries. |
| Keywords: | electricity, utilities, thermal generation, unilateral action, climate policy |
| JEL: | C60 Q40 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9093&r= |
| By: | Tafarte, Philip; Lehmann, Paul |
| Abstract: | The deployment of onshore wind power is an important means to mitigate climate change. However, wind turbines also have negative impacts at the local scale, like disamenities to residents living nearby, changes in landscape quality, or conflicts with nature conservation. Our paper analyses how these impacts affect the optimal siting of wind turbines, as compared to a spatial allocation focused solely on minimizing generation costs. To quantify the spatial trade-offs between these criteria, we propose a novel approach using Pareto frontiers and a Gini-like potential trade-off indicator. Our analysis builds on a spatial optimization model using geographical information system data for Germany. We show that spatial trade-offs between the criteria under consideration are significant. The size of the trade-off varies substantially with the criteria under consideration, depending on the spatial heterogeneity of each criterion as well as on the spatial correlation between the criteria. Spatial trade-offs are particularly pronounced between nature conservation (measured by impacts on wind powersensitive birds) and other criteria. |
| Keywords: | impact assessment,Germany,renewable energy,spatial optimization,wind power |
| JEL: | D62 Q42 Q51 Q53 R14 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzdps:22021&r= |
| By: | Ojo/Roedl, Marianne |
| Abstract: | The implications of COVID developments for monetary policy will certainly extend beyond the increased use of digital platforms and payments. The current environment is also focused on smart green techniques and green initiatives aimed at promoting a transition to a net zero based carbon emissions economy. During the onset of the pandemic, it was initially thought that carbon emissions would fall drastically – given the impact of the pandemic, not only on the airlines industry, but also as a result of “Stay at Home” measures imposed by jurisdictions, which even made it illegal to drive to certain places, where purposes for doing so were unjustified. However, the pandemic has also witnessed unprecedented levels in digital subscriptions, online sales and marketing – also fueled through digital payments and the use of digital platforms and distributed ledger technologies in facilitating cashless payments – cash, namely bank notes and coins, also being considered to be a medium of COVID transmission. Coupled with attributes such speed, convenience and ease, the need for financial inclusion has also become an objective in facilitating the era of innovative digital means of payments. As well as considering the current implications of measures that have been instigated to address the impacts of the pandemic, drawing from past and current lessons from selected jurisdictions, this paper also considers why the transition to a net zero carbon economy may prove more challenging than may first appear. However, jurisdictional differences and historical developments will play a part in determining how sustainable certain implemented policies and measures are – as well as in facilitating a transition to normality. |
| Keywords: | EU Green Deal; sustainable finance, interest rates; inflation; pandemic asset purchase program (PEPP); APP asset purchase program; longer term financing operations; transition risks; financial stability; CBDCs |
| JEL: | E5 G21 G28 G3 G38 K2 |
| Date: | 2021–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108119&r= |
| By: | Antonin Pottier (EHESS - CIRED); Emmanuel Combet (ADEME); Jean-Michel Cayla (EDF); Simona de Lauretis (EDF – CIRED); Franck Nadaud (CNRS - CIRED) |
| Abstract: | This article provides a panorama of greenhouse gas (GHG) emission inequalities between French households. It presents in a detailed and critical manner the methodological conventions that are used to compute “household emissions†, including the related assumptions. The most common responsibility principle, the “consumer responsibility†, assigns to households the emissions of the products that they consume, resulting in the carbon footprint. It focuses attention on the contributions of individuals, on their choices, and it may obscure the role of non-individual actors and also the collective component of GHG emissions, and it neglects the dimensions of responsibility that are not related to consumption choices. We estimate the distribution of household carbon footprints based on data from the 2011 French Household Budget Survey. Household emissions tend to increase with income, but they also show a strong variability linked to geographical and technical factors that force the consumer 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 distance travelled due to the predominant use of private cars. Urban settlement patterns constrain both the length of daily commuting and access to less carbon-intensive modes of transport. For housing, while the size of the dwelling increases with income and distance from urban centres, the first factor to account for variability of emissions is the heating system: this 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, that are 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: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2021.14&r= |
| By: | Chimere O. Iheonu (Abuja, Nigeria); Ogochukwu C. Anyanwu (Nsukka, Nigeria); Obinna K. Odo (Nsukka, Nigeria); Solomon Prince Nathaniel (University of Lagos, Akoka, Nigeria.) |
| Abstract: | International trade and urbanization are increasing at an unprecedented rate in sub-Saharan Africa (SSA). The region has also witnessed a fair share of economic growth, with minimal investment and consumption of renewables. Therefore, this study investigates the influence of economic growth, international trade, and urbanization on CO2 emissions in SSA. The current study enriches the existing literature by employing the panel quantile regression analysis to account for existing levels of CO2 emissions in the region. Empirical findings reveal that GDP increases CO2 emissions across quantiles, especially in countries where the existing level of CO2 emissions is low. International trade improves environmental sustainability in countries where the existing levels of CO2 emissions are at their lowest and highest levels but exacts a reversed impact on CO2 emissions at the median. Further findings suggest that urbanization increases CO2 emissions across the observed quantiles with a more pronounced effect in countries where the existing levels of CO2 emissions are at its lowest level. The study also reveals a bi-directional causality between economic growth, international trade, urbanization, and the emissions of CO2. The limitations of the study and possible direction for future research have been highlighted. Policy directions are discussed. |
| Keywords: | Economic Growth, International Trade, Urbanization, CO2 Emission, sub-Saharan Africa, Quantile Regression |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:21/003&r= |
| By: | Florian B\¨oser (CER–ETH – Center of Economic Research at ETH Zurich, Switzerland); Chiara Colesanti Senni (Council on Economic Policies) |
| Abstract: | Policy makers have argued that markets are not pricing climate risk appropriately yet, which may lead to a misallocation of resources and financial instability. Climate risk-adjusted refinancing operations (CAROs) conducted by the central bank are one possible instrument to address this issue. CAROs are characterized by interest rates on reserve loans, which depend on the climate risk exposure of the assets held by the borrowing bank. If private agents and the central bank have differing beliefs about the likelihood of the transition to a low-carbon economy, the allocation emerging without CAROs is, from the central bank’s perspective, suboptimal and may lead to financial instability. We find that an appropriate design of CAROs allows the central bank to influence bank lending in a way that induces the optimal allocation under its beliefs and eliminates financial instability. Moreover, we show that investment into climate risk mitigation reduces the need for central bank intervention, and that CAROs can be used to achieve specific climate-related allocation targets. |
| Keywords: | central bank, banks, refinancing operations, interest rates, climate risk |
| JEL: | D84 E42 E43 E44 E58 G21 Q50 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:21-354&r= |
| By: | Berner, Anne; Bruns, Stephan B.; Moneta, Alessio; Stern, David I. |
| Abstract: | Improving energy efficiency is often considered to be one of the keys to reducing greenhouse gas emissions. However, efficiency gains also reduce the cost of energy services and may even reduce the price of energy, resulting in energy use rebounding and potential energy use savings being eaten up. There is only limited empirical research quantifying the economy-wide rebound effect that takes the dynamic economic responses to energy efficiency improvements into account. We use a Structural Factor-Augmented Vector Autoregressive model (S-FAVAR) that allows us to track how energy use changes in response to an energy efficiency improvement while accounting for a vast range of potential confounders. Our findings point to economy-wide rebound effects of 78% to 101% after two years in France, Germany, Italy, the U.K., and the U.S. These findings imply that energy efficiency innovations alone may be of limited help in reducing future energy use and emphasize the importance of tackling carbon emissions directly. |
| Keywords: | Energy efficiency,economy-wide rebound effect,climate change,climate policy,Structural FAVAR,Independent Component Analysis |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:422&r= |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Rexon T. Nting (University of Wales, London, UK) |
| Abstract: | In this study, we assess how the mobile phone can be leveraged upon to improve the role of governance in environmental sustainability in 44 Sub-Saharan African countries. The Generalised Method of Moments is used to establish policy thresholds. A threshold is a critical mass or level of mobile phone penetration at which the net effect of governance on Carbon dioxide (CO2) emissions changes from positive to negative. Mobile phone penetration thresholds associated with negative conditional effects are: 36 (per 100 people) for political stability/no violence; 130 (per 100 people) for regulation quality; 146.66 (per 100 people) for government effectiveness; 65 (per 100 people) for corruption-control and 130 (per 100 people) for the rule of law. Practical and theoretical implications are discussed. The study provides thresholds of mobile phone penetration that are critical in complementing governance dynamics to reduce CO2 emissions. |
| Keywords: | CO2 emissions; ICT; Economic development; Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:21/035&r= |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Rexon T. Nting (University of Wales, London, UK) |
| Abstract: | In this study, we assess how the mobile phone can be leveraged upon to improve the role of governance in environmental sustainability in 44 Sub-Saharan African countries. The Generalised Method of Moments is used to establish policy thresholds. A threshold is a critical mass or level of mobile phone penetration at which the net effect of governance on Carbon dioxide (CO2) emissions changes from positive to negative. Mobile phone penetration thresholds associated with negative conditional effects are: 36 (per 100 people) for political stability/no violence; 130 (per 100 people) for regulation quality; 146.66 (per 100 people) for government effectiveness; 65 (per 100 people) for corruption-control and 130 (per 100 people) for the rule of law. Practical and theoretical implications are discussed. The study provides thresholds of mobile phone penetration that are critical in complementing governance dynamics to reduce CO2 emissions. |
| Keywords: | CO2 emissions; ICT; Economic development; Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:21/035&r= |
| By: | Sharma, Rajesh; Sinha, Avik; Kautish, Pradeep |
| Abstract: | In the preceding two decades, the expansion of financial services has played a vital role in pursuing economic growth agendas in the developing Asian nations. However, its harmful effect on environmental quality cannot be denied. In this backdrop, in the present study, we investigated whether the financial sector development moderated the ecological footprint, carbon footprint, and land footprint in the eight developing nations of South and Southeast Asia from 1990-2015. In doing so, we included the per capita income, energy solutions, and trade expansions as determinants of the ecological indicators. The results of the second-generation unit root tests and Westerlund’s cointegration test reported the long-run stability and cointegration, respectively. To navigate the possible cross-country dependency, we employed the cross-sectional augmented autoregressive distributed lag approach (CS-ARDL). The results confirmed that per capita income, energy solutions, trade expansion, and financial sector development invigorated the ecological footprint, carbon footprint, and land footprint in the long run. Further, it is reported that the development in the financial sector has a significant moderating impact on the nexus between energy and environmental footprints. In other words, the financial sector development drove the association between the overall environmental quality and energy solutions in the long run. Similarly, we observed that the financial sector development worked as a significant mediator between environmental proxies and trade expansion. By including the ecological footprint, carbon footprint, and land footprint as environmental proxies, the study provides the wider environmental spectrum. Based on the outcomes of the study, we proposed a novel scheme, which may help to address the harmful environmental impacts of the financial sector development in the selected developing nations. |
| Keywords: | Ecological footprint; carbon footprint; land footprint, South Asian countries; Southeast Asian countries; per capita income; energy |
| JEL: | Q5 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108161&r= |
| By: | Miguel Borrero (University of Valencia); Santiago J. Rubio (University of Valencia) |
| Abstract: | This paper studies how the investment in adaptation can influence the participation in an international environmental agreement (IEA) when countries decide in adaptation before they choose their levels of emissions. Two types of agreements are studied, a complete agreement for which countries coordinate their decisions on adaptation and emissions, and an adaptation agreement for which there is only coordination when countries decide their levels of adaptation. In both cases, we assume that the degree of effectiveness of adaptation is bounded from above, in order words, adaptation can alleviate the environmental problem, but it cannot solve it by itself leading the vulnerability of the country to almost zero. Our results show that the grand coalition could be stable for both types of agreement, but for extremely high degrees of effectiveness of adaptation. If this condition is not satisfied, the model predicts low levels of membership. The standard result of three countries for the complete agreement. For the adaptation agreement participation can be higher than three, but not higher than six countries. In any case, we can conclude that under reasonable values for the degree of effectiveness of adaptation, in our model adaptation does not promote participation in an IEA. |
| Keywords: | International Environmental Agreements, Adaptation-Mitigation Game, Vulnerability, Effectiveness of Adaptation, Complete Agreement, Adaptation Agreement |
| JEL: | D62 F53 H41 Q54 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2021.16&r= |
| By: | Winkler, Malte; Peterson, Sonja; Thube, Sneha |
| Abstract: | Linking the EU and Chinese Emission Trading Systems (ETS) increases the cost-efficiency of reaching greenhouse gas mitigation targets, but both partners will benefit - if at all - to different degrees. Using the global computable-general equilibrium (CGE) model DART Kiel, we evaluate the effects of linking ETS in combination with 1) restricted allowances trading, 2) adjusted allowance endowments to compensate China, and 3) altered Armington elasticities when Nationally Determined Contribution (NDC) targets are met. We find that generally, both partners benefit from linking their respective trading systems. Yet, while the EU prefers full linking, China favors restricted allowance trading. Transfer payments through adjusted allowance endowments cannot sufficiently compensate China so as to make full linking as attractive as restricted trading. Gains associated with linking increase with higher Armington elasticities for China, but decrease for the EU. Overall, the EU and China favor differing options of linking ETS. Moreover, heterogeneous impacts across EU countries could cause dissent among EU regions, potentially increasing the difficulty of finding a linking solution favorable for all trading partners. |
| Keywords: | Paris Agreement,NDC,Emission Trading,Linking ETS,China,EU,Verbindung von Emissionshandelsystemen,NDC,Pariser Klimabakommen,Emissionshandel |
| JEL: | F13 F18 Q58 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2185&r= |
| By: | Alena Miftakhova (CER–ETH – Center of Economic Research at ETH Zurich, Switzerland); Clément Renoir (CER–ETH – Center of Economic Research at ETH Zurich, Switzerland) |
| Abstract: | We study the role of the anticipation of climate policies on equity and economic growth in a numerical model of general equilibrium. The presence of the anticipation period allows the agents to adjust their choices before policy implementation. This period might change the equilibrium dynamics. It might also impact the redistribution of wealth in the economy. We choose the Swiss economy to exemplify and analyze these effects. The supply-side of the economy adjusts by redirecting the investments to “cleaner” sectors with a lower tax burden and higher profitability. On the demand side, welfare impacts by households vary according to their principal source of income. Households that have a high share of their income from capital rents benefit more from the policy’s announcement than others do. We find that, for the most stringent climate policies, the effect of anticipation is strongly positive but also regressive. |
| Keywords: | Climate policy, Environmental tax, Economic inequality, Endogenous growth, CGE Modelling |
| JEL: | C63 E62 O44 Q43 Q48 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:21-355&r= |
| By: | Adamowicz, Mieczysław |
| Abstract: | The subject of the paper is the concept of bioeconomy as a new, combined method to perceive the functioning of various sectors of the national economy producing and processing biological resources. Based on discussions in the literature and documents of the European institutions, bioeconomy has been presented as a theoretical concept and its essence and ways of defining the scope and size of bioeconomy, and the opportunities and risks associated with bioeconomy. The directions and areas of action as well as current strategies to support the development of sustainable bioeconomy and its relation to the circular economy model have been shown. Results from analyses show that bioeconomy is a promising concept for the development of agriculture, agribusiness, forestry, and other sectors producing and using bio-based raw materials. For making use of the real opportunities of bioeconomy, it is essential to have national and regional bioeconomy development strategies in place and to develop an efficient design and management system at the level of enterprises, sectors, and regional systems. |
| Keywords: | Agribusiness, Agricultural and Food Policy |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:311272&r= |
| By: | Noe Reidt (CER–ETH – Center of Economic Research at ETH Zurich, Switzerland) |
| Abstract: | This paper investigates the impact of climate policies on the labor markets in developing countries characterized by a large informal economy. I conduct the analysis employing a dynamic general equilibrium model, which incorporates the three prevalent working groups in developing countries: informal self-employment, informal employment, and formal employment. To capture the mobility of workers between these groups, I use a search and match mechanism with search frictions for formal and informal firms and with on-thejob search. The model is calibrated to India to elaborate on the impact of climate policies envisioning a tax on energy with different redistribution schemes of the tax revenue. The results show that climate policies strengthening the position of the productive formal sector can lead to a triple dividend effect: emissions drop due to the energy tax, whereas the redistribution scheme increases the formal labor share and welfare. Developing countries with widespread informality can utilize climate policies to improve labor conditions while reaching their climate targets. |
| Keywords: | development, climate policies, employment, search frictions, informality |
| JEL: | C68 E26 J46 J64 Q56 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:21-351&r= |
| By: | Anderson Hoffner, Laurel.; Simpson, Joni.; Martinez-Fernandez, Cristina.; Patumtaewapibal, Aruch. |
| Abstract: | Violence and harassment are widespread issues within the garment sector in Asia (Better Work 2019a), and with the effects of climate change increasing, it is possible that these behaviours could escalate. Using Bangladesh as a case study, this working paper will highlight the intersection between climate change and gender-based violence and harassment by exploring how climate change, measured by increasing heat stress and extreme weather events, could lead to heightened violence being faced by the (mostly female) workers in the sector as a result of its impact on productivity. It is important to note that gender-based vio- lence in the world of work exists independently of climate change; however, evidence finds that violence in the garment sector can be linked to workplace intensity, which is likely to be further stressed by the impacts of climate change, should current trends continue. In addition, gender- based violence tends to increase with higher levels of socio-economic vulnerability, which climate change will also increase. Accordingly, while addressing harmful social norms is key to improving gender equality and reducing gender-based vi- olence and harassment in the world of work, this working paper will explore how climate change will fur- ther exacerbate the factors associated with the prevalence of such behaviours within the current context and how, if left unaddressed, this combination of factors could ultimately contribute towards heightened levels of violence and harassment within the garment sector. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:995126893202676&r= |
| By: | Delera, Michele |
| Abstract: | Sustainability in global value chains (GVCs) hinges on the interplay between specialisation, scale, and efficiency effects. This paper reviews different strands of literature which provide evidence on these channels. The evidence that I collect suggests that the sustainability impacts of GVCs are ambiguous. By allowing firms to specialise through the offshoring of relatively more polluting production activities, GVCs are associated to sizeable amounts of carbon leakage. Insofar as firms expand following entry in foreign markets, environmental impacts may also increase. Yet at the same time, participation in GVCs makes firms more energy and emission efficient than their domestic peers through a variety of mechanisms. Thus, GVCs also contribute to dampen emission growth. In terms of social sustainability, GVCs are associated with an income premium for workers and producers alike, although these benefits are not equally distributed. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:pegnps:042020&r= |
| By: | Elva Bova |
| Abstract: | As many Member States are moving towards a greening of their economy, this work investigates whether their budgetary practices are shaped in a way that supports the green transition. Based on a review of budgetary documents across the EU countries, this study presents green budgeting experiences in selected Member States. After discussing concepts related to green budgeting, expenditure and revenue, this paper reviews and compares the coverage, the methodology and the governance of the selected green budgeting practices. It also provides information on the transparency and accountability arrangements of these practices. Overall, the study shows an incipient development of green budgeting and large heterogeneity of practices across countries. It shows that this heterogeneity is partly explained by different underlying concepts and definitions regarding the environmental objectives and budgets’ contribution towards them. |
| JEL: | H5 H61 Q58 Q51 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:euf:dispap:140&r= |
| By: | Lesly Cassin (Univ Paris I); Paolo Melindi-Ghidi (Univ Paris Nanterre, EconomiX); Fabien Prieur (Univ Montpellier CEE-M) |
| Abstract: | This article analyzes the impact of income inequality on environmental policy in the presence of green consumers. We first develop a model with two main ingredients: citizens, with different income capacities, have access to two commodities whose consumption differs in terms of price and environmental impact, and they vote on the environmental policy. In this setting, there exists a unique political equilibrium in which the population is split into two groups, that differ in the type of good, conventional vs. green, they consume. The analysis shows that a change in the level of inequality induces variations in both the size and composition of these two groups of citizens. This in turn determines whether or not more inequality stimulates the public policy. We then conduct an empirical investigation on a panel of European countries over the period 1996-2019. We find the existence of an inverted J-shape relationship between inequality and public environmental spending. This outcome can be explained by the combination of a composition effect, affecting the green group, and a substitution effect between private green consumption and public environmental spending. |
| Keywords: | income inequality, green consumption, environmental policy, probabilistic voting, political equilibrium |
| JEL: | Q58 H23 D31 D72 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2021.08&r= |
| By: | Ruhnau, Oliver; Bucksteeg, Michael; Ritter, David; Schmitz, Richard; Böttger, Diana; Koch, Matthias; Pöstges, Arne; Wiedmann, Michael; Hirth, Lion |
| Abstract: | The European electricity industry, the dominant sector of the world’s largest cap-and-trade scheme, is one of the most-studied examples of carbon pricing. In particular, numerical models are often used to study the uncertain future development of carbon prices and emissions. While parameter uncertainty is often addressed through sensitivity analyses, the potential uncertainty of the models themselves remains unclear from existing single-model studies. Here, we investigate such model-related uncertainty by running a structured model comparison experiment, in which we exposed five numerical power sector models to aligned input parameters—finding stark model differences. At a carbon price of 27 EUR/t in 2030, the models estimate that European power sector emissions will decrease by 36–57% when compared to 2016. Most of this variation can be explained by the extent to which models consider the market-driven decommissioning of coal- and lignite-fired power plants. Higher carbon prices of 57 and 87 EUR/t yield a stronger decrease in carbon emissions, by 45–75% and 52–80%, respectively. The lower end of these ranges can be attributed to the short-term fuel switch captured by dispatch-only models. The higher reductions correspond to models that additionally consider market-based investment in renewables. By further studying cross-model variation in the remaining emissions at high carbon prices, we identify the representation of combined heat and power as another crucial driver of differences across model results. |
| Keywords: | Carbon pricing,EU Emission Trading System (EU ETS),Electricity decarbonization,Power sector,Renewable energy,Fuel switch,Combined heat and power,Electricity market modeling,Model comparison,Model-related uncertainty |
| JEL: | Q4 Q5 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:234468&r= |
| By: | Manstetten, Reiner; Kuhlmann, Andreas; Faber, Malte; Frick, Marc |
| Abstract: | A decade ago, the German Advisory Council to the Federal Government on Global Environmental Change (Wissenschaftlichen Beirats der Bundesregierung für Globale Umweltveränderungen - WBGU) published its main report. This attempt to take stock in 2011 made an impact and provided orientation on both a national and international scale. The WBGU report did not hold back: It aimed to show the urgent need for change in terms of sustainable development through the interplay of politics, economy, society and nature. The central message was: We need a "social contract for a Great Transformation", and it must be implemented by 2021. How is the report to be assessed today? We will summarise the positions of the WGBU report, cite its merits, and comment on them critically and constructively. Our approach examines the five main themes of the report: the global social contract; global governance using the example of the Paris Climate Agreement; acceptance by those involved and affected; the urgency of economic, political and social action; and the concept of the Great Transformation. In our critique, we suggest ways to constructively elaborate on the ideas laid out in the WBGU report, ideas that were not thought through to the end. Our focus lies particularly on how to deal with time and the concept of the Great Transformation. In doing so, we will also address the significance of technical advances, innovation and our own ignorance. The title of the report uses the term "Great Transformation" which acts as a leitmotif throughout. Put forth by Karl Polanyi (1941/44), this term, as used in the WBGU's parlance, is intended to address the far-reaching changes that a regulatory state would have to undertake, along with the participation of the global citizenry, in order to overcome the ecological crisis of the coming decades. In our conclusion, we argue that the idea of a uniformly planned and comprehensively attainable transformation of the current situation is inadequate. Instead, we have observed that different actors in different places have worked at different speeds not on a Great Transformation but on a multitude of social-ecological transformation processes. The effectiveness of such movements - which often emerge spontaneously - has grown to the present day. This gives us hope. |
| Keywords: | Great Transformation,social-ecological transformation,global social contract,consensus,global governance,top-down/bottom-up approach,ignorance,temporal structures,technical progress,international climate policy,WBGU,Fridays for Future |
| JEL: | A00 A12 B12 B59 F64 H19 N50 O39 Q01 Q50 Q59 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:21043&r= |
| By: | Massimo Filippini (CER–ETH – Center of Economic Research at ETH Zurich and Università della Svizzera italiana, Switzerland); Nilkanth Kumar (CER–ETH – Center of Economic Research at ETH Zurich, Switzerland); Suchita Srinivasan (CER–ETH – Center of Economic Research at ETH Zurich, Switzerland) |
| Abstract: | Air pollution is a grave problem in urban areas of developing countries, with the transport sector being one of the largest contributors to emissions. A possibility to reduce carbon dioxide emissions would be for individuals to switch to more fuel-efficient vehicles. However, a gamut of behavioral anomalies and market failures have been known to inhibit individuals from investing in fuel-efficiency (due to the well-known ‘energy-efficiency gap’). In this study, we use novel data from Kathmandu, Nepal to understand the socio-economic and psychological determinants of three behavioral anomalies, namely present bias, loss aversion, risk aversion, as well as time preferences. In a second step, we evaluate the effect of these anomalies on the energy-efficiency gap in the choice of motorcycles of individuals. We find that present-biased individuals are less likely to invest in fuel-efficient motorcycles, and thus more likely to buy motorcycles having relatively high total lifetime costs. We also find that other factors such as income, as well as having applied for loans, play an important role in determining these choices. Our results suggest that behavioral anomalies may indeed pose as a hindrance to individuals making cost-minimizing (and also environmentally sound) investment decisions. |
| Keywords: | Behavioral anomalies, Present bias, Fuel efficiency, Energy-efficiency gap, Motorcycles, Nepal |
| JEL: | D1 D8 Q4 Q5 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:21-353&r= |
| By: | Pogodzińska, Kinga |
| Abstract: | The cultivation of genetically modified plants is controversial. In the Polish society, the opponents of GMOs are strongly lobbying against it, claiming that it is harmful, unnecessary and unethical. Experts in the field of biotechnology, however, state that there is no reason for concern and that genetic modifications provide undisputable benefits. The paper presents the opinions of 128 farmers from the Świętokrzyskie and Opolskie Provinces on GMO crops and food, which were compared with the assessments of experts in the field of biotechnology. On average, the research results showed a negative attitude of the respondents and a low level of knowledge about GMOs. Convinced of its harmfulness, the farmers expressed little interest in the cultivation of genetically modified crops, although being aware of the advantages of the modification (including resistance to pathogens, lower costs, better quality features). The farmers younger in age, better educated, and running larger farms showed greater openness to GMO cultivation. Lack of adequate knowledge and even false perceptions about GMOs in the small sample indicate the need for more extensive surveying of the farming community in Poland, as well as the need for a substantive discussion of the benefits and potential risks. |
| Keywords: | Agricultural and Food Policy, Farm Management |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:311265&r= |
| By: | Cheng, Ya; Sinha, Avik; Ghosh, Vinit; Sengupta, Tuhin; Luo, Huawei |
| Abstract: | Decarbonation has been a primary policy prerogative for Sweden, and carbon tax has been a primary policy instrument in this pursuit, and the revenue generated out of carbon tax has been a driver for energy innovation. However, the benefits of energy innovation have not been experienced across various sectors in Swedish economy, and it might be anticipated that the potential aim of achieving carbon neutrality might not be accomplished to the fullest. Hence, being faced with the need of policy realignment for Sweden, this study has made an attempt to discover the dynamics between carbon tax revenue and energy innovation over a period of 1990-2019, following Quantile-on-Quantile Regression framework. The results obtained from the study show that the impact of carbon tax revenue on energy innovation might turn out to be ineffective beyond a certain threshold limit. A similar pattern has also been observed for the impact of energy innovation on carbon tax revenue. This study gives an indication that there might be a non-linear association between both these model parameters. The study outcomes have paved a way to design a policy framework for helping Swedish economy to attain the objectives of Sustainable Development Goals, while paving the ways to achieve carbon neutrality. |
| Keywords: | Carbon neutrality; Carbon tax; Energy innovation; Sustainable Development Goals; Sweden |
| JEL: | Q5 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108185&r= |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Joseph Nnanna (The Development Bank of Nigeria, Abuja, Nigeria) |
| Abstract: | This study assesses how globalization modulates the effect of governance on CO2 emissions in sub-Saharan African countries. The empirical evidence is based on Generalized Method of Moments. The minimum level (or negative threshold) of FDI required for it to interact with political stability and contribute towards the green economy is 45% of GDP, while 90% of GDP is the maximum level (or positive threshold) required for trade to complement “voice & accountability†in mitigating CO2 emissions. 76 % of GDP and 80 % of GDP are respectively negative trade thresholds for government effectiveness and economic governance. The corresponding negative trade thresholds for the rule of law, corruption-control and institutional governance are respectively, 230% of GDP, 63.5% of GDP and 106.5% of GDP. Actionable openness policy thresholds are provided to inform policy makers on how governance interacts with globalization to promote the green economy. |
| Keywords: | CO2 emissions; Economic development; Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:21/015&r= |
| By: | Edakunny, Preeti |
| Abstract: | India accounts for 17 per cent of world palm oil consumption. Palm oil was initially considered a potential nutrition and environment solution that would replace fossil fuel and trans-fats in the nutrition chain. That promise of replacing fossil fuels and trans-fats is far from met; palm tree monoculture has led to devastation of rainforests in Indonesia and Malaysia, which together account for 85 of global palm oil production. Symmetrical rows of palm trees have replaced once-dense irreplaceable habitats of trees and plants. The initial deforestation was induced by European innovation and consumption. India and China have now outstripped European buyers as the main buyers of palm oil. The global cropscape of the palm is reviewed in this paper in the Indian context. Policy appears to encourage palm oil imports in the face of India’s dire agricultural landscape, with negative returns for farmers, a growing nutritionally bereft food chain and exponential deforestation of tropical forests in Indonesia and Malaysia. The paper explores the inherently economically and the socially destructive substitution of ethnically produced and consumed seed oils such as mustard, sesame and coconut. Small farm holdings comprise nearly 85 per cent of India’s total cultivated area. This paper studies the global supply chain of the palm seed oil that potentially has multi-pronged externalities of destruction of farm income in the importing nation, disruption of nutrition needs and augmenting global emissions through deforestation . |
| Date: | 2019–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:k5gsn&r= |
| By: | Matthews, Nicholas; Stamford, Laurence; Shapira, Philip (The University of Manchester) |
| Abstract: | Businesses are increasingly focussing their efforts on developing sustainable technological innovations. In doing so, they face obstacles in the systemic nature of innovation processes, the uncertain and ambiguous nature of sustainability, and in reconciling their business model and strategy with social and environmental value creation. This is particularly the case for those trying to emulate the so-called ‘Silicon Valley model’, which prioritises speed to deliver on its ambitious socially significant mission, relies on high-risk venture capital financing, and encourages flexibility and curiosity on the part of employees. This article uses data gathered during an action research case study to explore whether this much vaunted model could be better aligned with sustainable development. While, in this case, we find systemic and cognitive challenges to be currently precluding concerted action on sustainability, we also identify opportunities for greater alignment. Changes in the market and financial environment promise to provide new incentives for sustainability while the use of public deliberations such as citizen assemblies could help to reduce ambiguity. Complementary application of approaches like Constructive Sustainability Assessment within companies would allow business models to be more proactively and demonstrably aligned with employee values and ambitious sustainability missions. |
| Date: | 2021–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:sh9an&r= |
| By: | Cohen, Adam P; Shaheen, Susan A PhD; Farrar, Emily M |
| Abstract: | Since the early 20th century, inventors have conceptualized “plane cars” and other urban aerial transportation. Emerging innovations in electrification, automation, and other technologies are enabling new opportunities for on-demand air mobility, business models, and aircraft design. Urban air mobility (UAM) envisions a safe, sustainable, affordable, and accessible air transportation system for passenger mobility, goods delivery, and emergency services within or traversing metropolitan areas. This research employed a multi-method approach comprised of 106 interviews with thought leaders and two stakeholder workshops to construct the history, ecosystem, state of the industry, and potential evolution of UAM. The history, current developments, and anticipated milestones of UAM can be classified into six phases: 1) “flying car” concepts from the early 1910s to 1950s, 2) early UAM operations using scheduled helicopter services from the 1950s to 1980s, 3) re-emergence of on-demand services starting in the 2010s, 4) corridor services using vertical take-off and landing (VTOL) envisioned for the 2020s, 5) hub and spoke services, and 6) point-to-point services. In the future, UAM could face several barriers to growth and mainstreaming, such as the existing regulatory environment; community acceptance; and concerns about safety, noise, social equity, and environmental impacts. UAM also could be limited by infrastructure and airspace management needs, as well as business model constraints. The paper concludes with recommendations for future research on sustainability, social and economic impacts, airspace integration, and other topics. |
| Keywords: | Engineering, advanced air mobility (AAM), automation, electrification, flying cars, helicopters, on-demand air mobility, rural air mobility, unmanned aircraft systems (UAS), unmanned aerial vehicles (UAVs), unmanned aircraft (UA), urban air mobility (UAM), vertical take-off and land (VTOL) |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt8nh0s83q&r= |
| By: | Walter, Antonia (RWTH Aachen University); Held, Maximilian (ETH Zurich, Institute of Energy Technology); Pareschi, Giacomo (ETH Zurich, Institute of Energy Technology); Pengg, Hermann (Audi e-gas Betreibergesellschaft m.b.H.); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | This paper focuses on assessing the impact of different policy measures, in particular different vehicle taxation schemes, on the composition of the fleet of newly registered cars in Norway and Germany. For this purpose, a fjeet turnover model was extended by an economic model for predicting tax-induced market penetration of different powertrain technologies. The economic model determines a cost-optimal powertrain portfolio of the newly registered passenger cars based on financial and non-financial aspects. Model evaluation was performed for the case of Norway and Germany by means of reference scenarios that map the current taxation and non-financial preferences, such as range anxiety. The reference scenario in both cases overestimates the role of ZEVs, but is able to reflect the differences in regionalities (driven mainly by the taxation). Considering disutility costs leads to a shift away from ZEVs. Among the considered non-financial preferences, range anxiety has the strongest in uence. The optimization framework is a valuable predictor of qualitative statements regarding the impact of tax measures on the fleet composition of newly registered passenger cars. |
| Keywords: | Decarbonization; alternative powertrain technologies; powertrain mix; consumer heterogeneity; non-financial preferences; techno-economic modeling; vehicle taxation |
| JEL: | H30 O38 R48 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2020_018&r= |
| By: | Marion Davin (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Mouez Fodha (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thomas Seegmuller (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université) |
| Abstract: | We study whether fiscal policies, especially public debt, can help to curb the macroeconomic and health consequences of epidemics. Our approach is based on three main features: we introduce the dynamics of epidemics in an overlapping generations model to take into account that old people are more vulnerable; people are more easily infected when pollution is high; public spending and public debt can be used to tackle the effects of epidemics. We show that fiscal policies can promote the convergence to a stable steady state with no epidemics. When public policies are not able to permanently eradicate the epidemic, public debt and income transfers could reduce the number of infected people and increase capital and GDP per capita. As a prerequisite, pollution intensity should not be too high. Finally, we define a household subsidy policy which eliminates income and welfare inequalities between healthy and infected individuals. |
| Keywords: | Epidemics,pollution,overlapping generations,public debt |
| Date: | 2021–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-03221945&r= |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Omang O. Messono (University of Dschang , Cameroon); Keyanfe T. J. Guttemberg (Yaoundé, Cameroon) |
| Abstract: | The objective of this article is to analyze the effect of the political empowerment of women on vulnerability to climate change in 169 countries for the period 1995-2017. The empirical evidence which is based on panel fixed effects regressions shows that: i) the political empowerment of women as well as its components (i.e. civil liberties of women, participation of women in civil society and participation of women in political debates) reduce vulnerability to climate change. ii) The underlying effect is most pronounced in upper middle income, Latin American, small and fragile countries. iii) Public spending on education, the effectiveness of governance and education are the real transmission channels through which vulnerability to climate change is affected by women’s political empowerment. The findings are robust to alternative estimation methods such as the Tobit, the dynamic fixed effects, and the generalized method of moments regressions. Policy implications are discussed, inter alia, the need for sampled countries to encourage women's political empowerment in order to reduce risks linked to climate change. |
| Keywords: | climate change; vulnerability; political empowerment |
| JEL: | Q50 Q54 Q58 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:21/010&r= |
| By: | Pauline Lécole (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Raphaële Préget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sophie Thoyer (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | The small farm sector has long been neglected by the Common Agricultural Policy (CAP). Since CAP support is mainly allocated through the first pillar budget on a per-hectare basis, small farms receive little or no direct income support. This situation is compounded by cumbersone administrative procedures which discourage small farmers from claiming the financial support they are entitled to, and by eligibility criteria which exclude part of the small farm sector from the CAP system. The 2014 CAP introduced the Small Farmers Scheme (SFS) offering small farms the option of an unconditional annual lump-sum payment per farm replacing the standard direct payments of the first pillar. This paper assesses the acceptability in France of a more sophisticated version of the 2014 SFS for the post-2020 CAP. We propose that this extended SFS include easily controllable conditions on environmental efforts and on salaried employment. The results of a discrete choice experiment conducted in France show that the principle of such extended SFS would be attractive to small farmers, especially market gardeners, and that the vast majority of respondents have a preference for an extended SFS incorporating an environmental condition. |
| Date: | 2020–11–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-03027230&r= |
| By: | Meller, Patricio; Meller, Ariel |
| Abstract: | Este estudio se orienta a analizar cuál es la importancia de priorizar a la pequeña y mediana empresa (pyme) productora de mineral, las razones para dar un trato preferencial a la pyme minera privada en los países andinos, el rol del Estado a este respecto y el tipo de políticas que debería implementar, así como la posible existencia de una “solución institucional” que sea exitosa para enfrentar estas materias. En relación con esto último, se afirma que la Empresa Nacional de Minería (ENAMI) —empresa estatal chilena— constituye un modelo interesante y de larga trayectoria, que ha aplicado políticas de fomento integral a la pyme minera chilena durante 60 años. Por esto se examinan a fondo el modelo de fomento integral, la gestión, los incentivos y los mecanismos utilizados por la ENAMI, así como sus fortalezas y debilidades, y se efectúa un análisis de la relevancia de los incentivos e instrumentos para otros países andinos. |
| Keywords: | INDUSTRIA MINERA, PEQUEÑAS EMPRESAS, EMPRESAS MEDIANAS, DESARROLLO DE EMPRESAS, DESARROLLO SOSTENIBLE, RECURSOS MINERALES, POLITICA DE DESARROLLO, EMPRESAS PUBLICAS, MODELOS DE DESARROLLO, MINING INDUSTRY, SMALL ENTERPRISES, MEDIUM ENTERPRISES, ENTERPRISE DEVELOPMENT, SUSTAINABLE DEVELOPMENT, MINERAL RESOURCES, DEVELOPMENT POLICY, PUBLIC ENTERPRISES, DEVELOPMENT MODELS |
| Date: | 2021–05–27 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:46920&r= |
| By: | Wieliczko, Barbara |
| Abstract: | The development of agricultural policy is becoming a more and more difficult task. The number of factors which should be taken into account continues to grow, while at the same time there is an increased diversification of agricultural needs as well as higher consumer and taxpayer expectations. In this situation, the approach to agricultural policy-making used so far does not function properly. The final shape of the Common Agricultural Policy (CAP) in the new multi- annual financing frameworks of the European Union has not been fully established yet. The work has been prolonged for many reasons. The current European Commission pays much attention to environmental and climate challenges, proposing the implementation of the European Green Deal strategy. One of the key elements of this development concept is the “Farm to Fork” strategy, which indicates the directions of transformation of food systems in the EU. A question arises whether the proposed shape of the EU strategy for agriculture is optimal in terms of challenges faced by this sector. Complexity economics may be an answer to this question, as it offers an approach to policy-making based on the recognition of the complexity of socio-economic systems and their specific dynamics requiring a specific shape of actions taken by the state. The aim of the article is to present the complexity economics as an appropriate approach to agricultural policy-making in the context of many challenges faced by this sector and to indicate to what extent the current agricultural policy takes the indications of the complexity economics into account. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Food Security and Poverty |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:311259&r= |
| By: | Vanessa Angst (Infras AG); Chiara Colesanti Senni (Council on Economic Policies); Markus Maibach (Infras AG); Martin Peter (Infras AG); Noe Reidt (CER–ETH – Center of Economic Research at ETH Zurich, Switzerland); Renger van Nieuwkoop (Modelworks) |
| Abstract: | Switzerland committed to achieving net-zero emissions in 2050. This goal is particularly ambitious for the Swiss passenger transport system, which emits more than one third of Swiss CO2 emissions, and is not yet on a clear emission reduction path. We investigate the economic impact and the emission-saving potential of a decarbonization pathway for the Swiss transport sector based on three edge case scenarios and on a combination of them: (1) improved fuel/engine technology and fostered diffusion of battery electric vehicle, (2) increased capacity use of passenger cars, and (3) enhanced modal shift towards public transport. Our analysis is conducted using a multi-model framework, which interlinks a computational general equilibrium model with two external transportation models. This approach allows us to incorporate a highly disaggregated passenger transport system into the economic analysis. The framework is calibrated to Swiss data to assess the optimal scenario mix in terms of emissions and economic impact. The optimal decarbonization pathway mix slightly increases welfare and lowers CO2 emissions of passenger transport in 2050 from 6 to 1.7 million tons CO2 compared to the reference scenario. Despite the sharp reduction in emissions, a decarbonization pathway based on the considered scenarios is insufficient to reach the net-zero emission target. |
| Keywords: | Passenger transport, Decarbonization, Switzerland, Computable general equilibrium model |
| JEL: | C68 R40 R42 R48 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:21-352&r= |
| By: | Steinhübel, Linda; Wenzel, Arne; Hulamani, Prashant; von Cramon-Taubadel, Stephan; Mason, Nicole M. |
| Abstract: | CONTEXT Agricultural management systems of many smallholders in low and middle-income countries depend on services by pollinator populations. However, increased adoption of modern inputs and particularly the wide-spread use of agrochemicals threaten pollinators and smallholders' crop production. Understanding how farmers' use of modern inputs affects pollinator communities is, therefore, crucial for development efforts and the design and promotion of sustainable agricultural practices. OBJECTIVE We contribute to the still scarce literature on pollinator communities in low and middle-income countries by analyzing the link between the use of agrochemicals and wild bee populations in South India. Moreover, we capture temporal and spatial scaling in farm-pollinator relationships by explicitly analyzing effects of present, past, and neighboring agricultural management decisions on wild bee populations. METHODS Our empirical analysis is based on an interdisciplinary data set, combining information from pan trap experiments and a socio-economic survey of 127 agricultural plots in the rural-urban interface of Bangalore, India. We implemented a Poisson generalized linear model (GLM) to analyze factors influencing bee abundance and richness with a particular focus on the effects of farmers' management decisions. Present and past management were measured by the use of chemical fertilizers, pesticides, and irrigation in 2018 and during the previous years respectively. By setting up spatial weight matrices, we derived a proxy for neighboring management decisions and were able to estimate potential spillover effects. RESULTS AND CONCLUSION Our results suggest that agricultural intensification is associated with a decline of bee abundance and richness in our study area. Both time and space play important roles in explaining farm-bee interactions. We find statistically significant negative spillovers of pesticide use. With every addition percent of neighboring farmers using pesticides, bee abundance and richness decrease by up to 0.68 percent on the focal plot. Furthermore, smallholders' decisions to use chemical fertilizers and pesticides on their own plots significantly decrease the number of observed bees by about 20 percent. Also, every additional year of intensive past management reduces both bee abundance and richness by up to 8 percent. SIGNIFICANCE We provide new empirical evidence on farm-pollinator relationships in tropical low and middleincome countries. Based on our results, cooperative behavior among farmers and/or the regulation of agrochemical use seem to be crucial to moderate spatial spillovers of agricultural decision-making. Also, a rotation of extensive and intensive management seems to be an appropriate way to mitigate negative effects of agricultural intensification on bee populations. |
| Keywords: | Bee communities,India,pesticides,spillovers,temporal and spatial scales |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:daredp:2103&r= |
| By: | De Bruin, Kelly; Kiran Krishnamurthy, Chandra |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp697&r= |
| By: | Adamowicz, Mieczysław |
| Abstract: | The subject and aim of the paper is to present general trends of agricultural development, global conditions, and new concepts and forms of sustainable development. As part of the concept of sustainable development, which has been widely recognized as a development paradigm, in recent years we have seen the emergence of more than a dozen new proposals which modify or complement mainstream sustainable development. These concepts also apply to agriculture and rural areas. Based on an analysis of the literature, this paper presents selected concepts: the green economy, smart specializations, smart villages, the circular economy, responsible consumption and production, and the participatory economy. The role of international integration and EU authorities in disseminating these concepts as forms of innovation in the economic systems of the Member States of the European Union has been identified. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:311274&r= |
| By: | Nicola Da Schio; Claire Pelgrims; Sebastiano Cincinnato; Anneloes Vandenbroucke |
| Date: | 2021–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/324733&r= |
| By: | Zieliński, Marek; Łopatka, Artur; Koza, Piotr |
| Abstract: | The purpose of this study is to characterize municipalities with a high share of LFAs (specific type zone I) as well as to assess the functioning of farms located in such municipalities against the background of analogous farms in non-LFA municipalities which kept accounts for the Polish FADN continuously in 2016-2018. The first part of the study describes the method of determining and characterizing areas with natural constraints (LFA) of specific type located in zone I in Poland designated by the Institute of Soil Science and Plant Cultivation – NRI (IUNG-PIB) on behalf of the Ministry of Agriculture and Rural Development (MRiRW) and the European Commission (EC). These areas were determined on the basis of the threshold values of the Nature and Tourism Index (WCPT) and the Index for the Valorisation of Agricultural Production Area (WWRPP). They have functioned in our country since 2019 and include 1233,7 thousand ha UAA. The second part of the study presents the functioning of farms located in municipalities with a high share of LFAs (specific type zone I) (at least 80% UAA LFA specific type zone 1 in total UAA) against the background of analogous farms in non-LFA municipalities that kept accounts for the Polish FADN continuously in 2016-2018. It was found that farms located in LFAs are characterized by lower capital value, older farm owners, and poorer quality of used soils. In addition, they incur lower costs per 1 ha of UAA, have worse production effects and lower factor productivity. Moreover, they have lower income per 1 ha of UAA, and thus smaller development opportunities. |
| Keywords: | Environmental Economics and Policy, Farm Management, Production Economics |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:311260&r= |
| By: | Anmina Murielle Djiguemde (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Dimitri Dubois (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Alexandre Sauquet (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Tidball Mabel (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We study the impact of discrete versus continuous time on the behavior of agents in the context of a dynamic common pool resource game. To this purpose, we consider a linear quadratic model in which agents exploit a renewable resource with an infinite horizon and conduct a lab experiment. We use a differential game for continuous time and derive its discrete time approximation. When the agent is the sole owner of the resource, we fail to detect on a battery of indicators any difference between discrete and continuous time. Conversely, in the two-player setting, significantly more agents can be classified as myopic and end up with a low resource level in discrete time. Continuous time seems to allow for better cooperation and thus greater sustainability of the resource than does discrete time. Also, payoffs are more equally distributed in the continuous time setting. |
| Keywords: | Common Pool Resource,Differential Games,Experimental Economics,Continuous Time,Discrete Time |
| Date: | 2021–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-03214973&r= |
| By: | Grilli, Gianluca; Curtis, John |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp696&r= |
| By: | Stephen Jarvis |
| Abstract: | Large infrastructure projects can create widespread societal bene ts, but also fre- quently prompt strong local opposition. This is sometimes pejoratively labeled NIMBY (Not In My Backyard) behavior. In this paper I estimate the economic costs of NIMBYism and its role in local planning decisions. To do this I use de- tailed data on all major renewable energy projects proposed in the United Kingdom spanning three decades. First, I use hedonic methods to show that wind projects impose signi cant negative local costs, while solar projects do not. I then show that planning ocials are particularly responsive to the local costs imposed within their jurisdictions, but fail to account for variation in these costs across jurisdic- tions. The result has been a systematic misallocation of investment, which may have increased the cost of deploying wind power by 10-29%. Much of this can be attributed to the fragmented and localized nature of the planning process. |
| Keywords: | Infrastructure, Electricity, Renewables, NIMBY, Local, Planning |
| JEL: | Q42 Q51 Q53 R30 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2021_300&r= |
| By: | Zivin, Joshua Graff (University of California, San Diego); Neidell, Matthew (Columbia University); Sanders, Nicholas (Cornell University); Singer, Gregor (London School of Economics) |
| Abstract: | Influenza and air pollution each pose significant public health risks with large global economic consequences. The common pathways through which each harms health presents an interesting case of compounding risk via interacting externalities. Using instrumental variables based on changing wind directions, we show increased levels of contemporaneous pollution significantly increase influenza hospitalizations. We exploit random variations in the effectiveness of the influenza vaccine as an additional instrument to show vaccine protection neutralizes this relationship. This suggests seemingly disparate policy actions of pollution control and vaccination campaigns jointly provide greater returns than those implied by addressing either in isolation. |
| Keywords: | air pollution, influenza, hospitalizations, vaccines, externalities |
| JEL: | Q53 I12 I11 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14399&r= |
| By: | David J. Erickson |
| Abstract: | Remarks at Capital Quest: Connecting Capital to Communities (delivered via videoconference). |
| Keywords: | communities; neighborhoods; health; community development; Federal Reserve Bank of New York; income; poverty; climate change |
| Date: | 2021–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsp:92402&r= |
| By: | Koffi Serge William Yao (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Emmanuelle Lavaine (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Marc Willinger (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We investigate the approval mechanism (AM) for a common pool resource (CPR) game with three players, underlining the role of unanimity and majority rules. The game involves two stages. In stage 1, players simultaneously and privately choose a proposed level of extraction from the CPR. In the second stage, they simultaneously decide whether to approve or disapprove others' choices. If the group approves, players' fi rst stage proposed extractions are implemented. Otherwise, a uniform extraction level, called disapproval benchmark (DB), is implemented onto each group member. We combine two approval rules, majority and unanimity, with two DBs, the minimum extraction level (MIN DB) and the Nash extraction level (NASH DB). These combinations offer four different treatments for testing the approval mechanism (AM). Our experimental findings show that the AM reduces signi cantly over-extraction in each treatment, and that the unanimity rule is more effective than the majority rule to lower extractions. The MIN DB reduces more group extractions than the NASH DB. Finally, only the MIN DB with unanimity implements the Pareto-effcient extraction level. |
| Keywords: | Approval mechanism,lab experiment,common pool resource,majority/unanimity,di erence in di erence |
| Date: | 2021–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03235539&r= |
| By: | Micael Castanheira De Moura; Nils Bandelow; Benoit Rihoux |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/324654&r= |
| By: | Koffi Serge William Yao (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Emmanuelle Lavaine (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Marc Willinger (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We investigate the approval mechanism (AM) for a common pool resource (CPR) game with three players, underlining the role of unanimity and majority rules. The game involves two stages. In stage 1, players simultaneously and privately choose a proposed level of extraction from the CPR. In the second stage, they simultaneously decide whether to approve or disapprove others' choices. If the group approves, players' first stage proposed extractions are implemented. Otherwise, a uniform extraction level, called disapproval benchmark (DB), is implemented onto each group member. We combine two approval rules, majority and unanimity, with two DBs, the minimum extraction level (MIN DB) and the Nash extraction level (NASH DB). These combinations offer four different treatments for testing the approval mechanism (AM). Our experimental findings show that the AM reduces signi cantly over-extraction in each treatment, and that the unanimity rule is more effective than the majority rule to lower extractions. The MIN DB reduces more group extractions than the NASH DB. Finally, only the MIN DB with unanimity implements the Pareto-effcient extraction level. |
| Keywords: | Approval mechanism,lab experiment,common pool resource,majority/unanimity,dference in difference |
| Date: | 2021–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-03234786&r= |
| By: | Koffi Serge William Yao (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Emmanuelle Lavaine (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Marc Willinger (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We investigate the approval mechanism (AM) for a common pool resource (CPR) game with three players, underlining the role of unanimity and majority rules. The game involves two stages. In stage 1, players simultaneously and privately choose a proposed level of extraction from the CPR. In the second stage, they simultaneously decide whether to approve or disapprove others' choices. If the group approves, players' first stage proposed extractions are implemented. Otherwise, a uniform extraction level, called disapproval benchmark (DB), is implemented onto each group member. We combine two approval rules, majority and unanimity, with two DBs, the minimum extraction level (MIN DB) and the Nash extraction level (NASH DB). These combinations offer four different treatments for testing the approval mechanism (AM). Our experimental findings show that the AM reduces signi cantly over-extraction in each treatment, and that the unanimity rule is more effective than the majority rule to lower extractions. The MIN DB reduces more group extractions than the NASH DB. Finally, only the MIN DB with unanimity implements the Pareto-effcient extraction level. |
| Keywords: | Approval mechanism,lab experiment,common pool resource,majority/unanimity,dference in difference |
| Date: | 2021–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03234786&r= |
| By: | Kato, Hayato; Okubo, Toshihiro |
| Abstract: | When do multinationals show resilience during natural disasters? To answer this, we develop a simple model in which multinationals and local firms in the host country are interacted through input-output linkages. When natural disasters seriously hit local firms and thus increase the cost of sourcing local intermediates, most multinationals may leave the host country. However, they are likely to stay if they are tightly linked with local suppliers and face low trade costs of importing foreign intermediates. We further provide two extensions of the basic model to allow for multinationals with heterogeneous productivity and disaster reconstruction |
| Keywords: | Foreign direct investment (FDI); Multinational enterprises (MNEs); Input-output linkages; Supply chain disruptions; Multiple equilibria |
| JEL: | F12 F23 Q54 R11 |
| Date: | 2021–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108091&r= |
| By: | Sviataslau Valasiuk (Faculty of Economic Sciences, University of Warsaw; Swedish University of Agricultural Sciences, Faculty of Forest Sciences, School for Forest Management, Forest-Landscape-Society Network); Mikołaj Czajkowski (Faculty of Economic Sciences, University of Warsaw); Marek Giergiczny (Faculty of Economic Sciences, University of Warsaw); Tomasz Żylicz (Faculty of Economic Sciences, University of Warsaw); Knut Veisten (Institute of Transport Economics, Gaustadalleen); Iratxe Landa Mata (Institute of Transport Economics, Gaustadalleen); Askill Harkjerr Halse (Institute of Transport Economics, Gaustadalleen); Per Angelstam (Department of Forestry and Wildlife Management, Inland Norway University of Applied Sciences) |
| Abstract: | Former studies have shown that transboundary nature protected areas are not perceived as pure international public goods by citizens in neighbouring countries that share national parks. In this study, we assess what drives the valuation of nature protection on the other side of the border in two European transboundary nature areas, the Białowieża Forest and Fulufjället. Applying hybrid choice modelling, we account for people’s attitudes when eliciting their preferences towards transboundary nature protected areas, and examine the impact of attitudes on the degree to which those preferences are consistent with the international public good hypothesis. We found that the intention of visiting the foreign part of the transboundary area, appreciation of transboundary justice and altruism, were the main drivers, whereas suspicious attitude towards the neighbouring country, propensity to free-ride, and manifestations of ‘patriotism’ applied as international public good mitigators to a limited degree only. Value of an extending the protection regime abroad was still positive for Scandinavians, whilst for Polish and Belarusian respondents a policy aiming at extending the protection abroad would lead to loss of human welfare. Facilitating visits of the foreign part by enhancing cross-border access can be expected to shift peoples’ preferences towards transboundary co-operation. |
| Keywords: | International public goods, national parks, forest, transboundary nature protected areas, public preferences, willingness to pay, discrete choice experiment, hybrid modeling |
| JEL: | Q51 Q57 H41 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2021-09&r= |
| By: | Sule Alan; Elif Bodur; Elif Kubilay; Ipek Mumcu |
| Abstract: | We investigate how adolescents’ social status in their peers’ eyes shapes the way they view their social climate in secondary schools. Utilizing novel data on over 10,000 students, we construct comprehensive measures of social status and perceived social climate for each student, including a sense of belonging, perceived behavioral norms, and bullying experience. We show that while central and well-connected students are positive about their social environment, less central and socially isolated students view it as hostile. Our results highlight the importance of improving the relational dynamics of adolescents in disadvantaged schools to create better learning environments for all. |
| Keywords: | social status, student networks, classroom climate |
| JEL: | A14 I20 I24 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9095&r= |
| By: | Islam, Mahnaz; Beg, Sabrin |
| Abstract: | Heavy government subsidies have led to inefficient application and overuse of fertilizer in Bangladesh. This results in higher than optimal costs to farmers and environmental and public costs. In a randomized controlled trial, we provide farmers with a simple tool (leaf color chart) and basic `rule-of-thumb' instructions to guide the timing and quantity of urea (nitrogen) application. Treatment farmers reduce urea use by 8\% without compromising yield, suggesting significant scope for improving urea management. The results are mainly driven by farmers delaying urea application as returns to urea are low early on in the season and urea applied is likely to be wasted. Cost-effectiveness estimates suggest that each dollar spent on this intervention produces a return of \$2.8 dollars due to reduction of urea use over three seasons, as well as significant environmental benefits. We also find suggestive evidence that optimizing the timing of urea application affects farmers' yields, plausibly as the intervention allows farmers to reallocate urea application to times when returns to urea are highest. |
| Keywords: | Technology Adoption, Farm Management, Environmental Economics, Resource Management |
| JEL: | H50 O12 O13 |
| Date: | 2020–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108117&r= |
| By: | Gauger, Felix; Pfnür, Andreas; Strych, Jan-Oliver |
| Date: | 2021–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:126939&r= |