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on Environmental Economics |
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Issue of 2021‒06‒28
sixty-two papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Toke R. Fosgaard (Department of Food and Resource Economics, University of Copenhagen); Alice Pizzo (Department of Food and Resource Economics, University of Copenhagen); Sally Sadoff (Rady School of Management, University of California, San Diego) |
| Abstract: | Food production is a primary contributor to climate change with greenhouse gas (GHG) emissions varying widely across food groups. In a randomized experiment, we examine the impact of providing individualized information on the GHG emissions of grocery purchases via a smartphone app, compared to providing information on spending. Carbon footprint information decreases GHG emissions from groceries by an estimated 27% in the first month of treatment, with an estimated 45% reduction in emissions from beef, the highest emissions food group. Treatment effects fade in the longer-run along with app engagement. However, we find evidence of persistent effects among those who remain engaged with the app. Our results suggest that individualized carbon footprint information can reduce the climate impact of food consumption but requires sustained engagement. |
| Keywords: | Field Experiment, Pro-environmental Behavior, Carbon Footprint, Food Consumption, Consumer Behavior |
| JEL: | C93 D11 D91 Q5 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2021_05&r= |
| By: | Arya Sasongko; Ali Sakti |
| Abstract: | Green Sukuk continues to grow, but it still has problems in pricing. It has an unexplainable pricing difference between Green and Non-Green financing instruments. The research selects to takea fundamental asset pricing methodology that analyzes environmental risk. Sukuk and other financings might finance environmentally-harmful projects which support waste generation and accumulation. We noticed that unique environmental risks impose Sukuk holders, i.e., systemic and reputation risks. Finally, the model confirmed that these risks cause the price difference. |
| Keywords: | Islamic finance, Climate risk, Climate finance, Environmental systemic risk premium, Environmental Reputation Risk Premium |
| JEL: | F64 G12 Q51 Q54 L14 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:idn:wpaper:wp022020&r= |
| By: | Ferrari, Massimo; Pagliari, Maria Sole |
| Abstract: | In this paper we explore the cross-country implications of climate-related mitigation policies. Specifically, we set up a two-country, two-sector (brown vs green) DSGE model with negative production externalities stemming from carbon-dioxide emissions. We estimate the model using US and euro area data and we characterize welfare-enhancing equilibria under alternative containment policies. Three main policy implications emerge: i) fiscal policy should focus on reducing emissions by levying taxes on polluting production activities; ii) monetary policy should look through environmental objectives while standing ready to support the economy when the costs of the environmental transition materialize; iii) international cooperation is crucial to obtain a Pareto improvement under the proposed policies. We finally find that the objective of reducing emissions by 50%, which is compatible with the Paris agreement's goal of limiting global warming to below 2 degrees Celsius with respect to pre-industrial levels, would not be attainable in absence of international cooperation even with the support of monetary policy. JEL Classification: F42, E50, E60, F30 |
| Keywords: | climate modelling, DSGE model, open-economy macroeconomics, optimal policies |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20212568&r= |
| By: | Olatunji A. Shobande (Business School, University of Aberdeen, UK); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | Africa is currently experiencing both financial and human development challenges. While several continents have advocated for financial development in order to acquire environmentally friendly machinery that produces less emissions and ensures long-term sustainability, Africa is still lagging behind the rest of the world. Similarly, Africa's human development has remained stagnant, posing a serious threat to climate change if not addressed. Building on the underpinnings of the Environmental Kuznets Curve (EKC) hypothesis on the nexus between economic growth and environmental pollution, this study contributes to empirical research seeking to promote environmental sustainability as follows. First, it investigates the link between financial development, human capital development and climate change in East and Southern Africa. Second, six advanced panel techniquesare used, and they include: (1) cross-sectional dependency (CD) tests; (2) combined panel unit root tests; (3) combined panel cointegration tests; (4) panel VAR/VEC Granger causality tests and (5) combined variance decomposition analysis based on Cholesky and Generalised weights. Our finding shows that financial and human capital developments are important in reducing CO2 emissions and promoting environmental sustainability in East and Southern Africa. |
| Keywords: | Financial Development; Human Capital; East and Southern Africa; Climate Change |
| JEL: | G21 I21 I25 O55 Q54 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:21/042&r= |
| By: | Stephie Fried; Kevin Novan; William B. Peterman |
| Abstract: | Uncertainty surrounding if and when the U.S. government will implement a federal climate policy introduces risk into the decision to invest in capital used in conjunction with fossil fuels. To quantify the macroeconomic impacts of this climate policy risk, we develop a dynamic, general equilibrium model that incorporates beliefs about future climate policy. We find that climate policy risk reduces carbon emissions by causing the capital stock to shrink and become relatively cleaner. Our results reveal, however, that a carbon tax could achieve the same reduction in emissions at less than half the cost. |
| Keywords: | Climate Policy; Policy Uncertainty |
| JEL: | H30 Q58 H23 |
| Date: | 2021–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2021-18&r= |
| By: | ; Francois Gourio |
| Abstract: | How costly will rising temperature due to climate change be for the U.S. economy? Recent research has used the well-identified response of output to weather to estimate this cost. But agents may adapt to the new climate. We propose a methodology to infer adaptation technology from the heterogeneous responses of output to weather observed currently across the U.S. Our model estimates how much each region has adapted already, and can predict how much each will adapt further after climate change. The size and distribution of losses from climate change vary substantially once adaptation is taken into account. |
| Keywords: | Climate Change; Adaptation; Temperature; Income |
| JEL: | R12 Q54 E23 |
| Date: | 2020–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedhwp:92772&r= |
| By: | Espoir, Delphin Kamanda; Sunge, Regret; Bannor, Frank |
| Abstract: | The relationship between economic growth and environmental pollution continues to attract undying research interest. While existing studies focused on examining the relationship from growth to pollution or pollution to growth, research on the causal relationship between the two variables is still lacking. This study examined the causal relationship between growth and Co2 emissions across 47 African countries using annual panel data from 1995-2016. Unlike other studies in Africa, the uniqueness of this paper is that we employed the methodology developed by Emirmahmutoğlu and Kose (2011), which considers cross-sectional dependence and slope heterogeneity. The empirical results of the study are as follows: (1) the analysis underpinned a bidirectional causal relationship between growth and Co2 emissions in three countries (Burkina Faso, Mauritania, and the Congo Republic), (2) a unidirectional relationship running from growth to Co2 emissions in seven countries (Niger, Sierra Leone, Angola, Mauritius, Mozambique, Uganda, and Kenya), and (3) a unidirectional relationship running from Co2 emissions to growth in nine countries (Lesotho, Namibia, Tanzania, Egypt, Libya, Chad, Ethiopia, Gabon, and Central African Republic (CAR). The results also suggested the neutrality hypothesis for the rest of the countries that were not part of these three groups. Henceforth, we provided policy implications based on the four groups’ results. |
| Keywords: | Economic development,Environmental pollution,Cross sectional dependence,Heterogeneity,Granger Causality,Africa |
| JEL: | Q53 Q54 Q56 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:235141&r= |
| By: | Perez, Nicostrato D.; Kassim, Yumna; Ringler, Claudia; Thomas, Timothy S.; ElDidi, Hagar |
| Abstract: | With climate change, Egypt’s already arid climate will face even higher temperatures and lower rainfall over key agricultural areas, requiring further urgent adaptation investments. Data from three general circulation models of climate were used to better understand the likely effects of climate changes on Egypt’s agricultural sector. The findings show largely adverse biophysical effects of climate change by 2050. Compared to a no-climate change scenario, yields for food crops are projected to decline by over 10 percent by 2050 due to higher temperatures and water stress as well as increased salinity of irrigation water. The highest biophysical yield declines are estimated for maize, sugar crops, and fruits and vegetables. Moreover, due to the country’s dependence on food imports, Egypt is not only affected by climate change impacts at home, but also by impacts in other food producing countries. Climate change-induced increases in food prices will reduce Egypt’s food import demand, while also dampening demand for Egypt’s exports. The implications for Egypt are tighter food markets with both reduced domestic production and increased difficulties to import food making it more difficult to augment domestic food supplies. This situation suggests the need for investments in climate change adaptation in the agriculture sector. Global cooperation to mitigate greenhouse gas emissions is also warranted given the high cost to Egypt’s society from adverse climate change impacts worldwide. |
| Keywords: | EGYPT, ARAB COUNTRIES, MIDDLE EAST, NORTH AFRICA, AFRICA, climate change, agriculture, agricultural sector, agricultural productivity, food production, food prices, policies |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:menapn:17&r= |
| By: | Olijslager, Stan; van der Ploeg, Frederick; van Wijnbergen, Sweder |
| Abstract: | CO2 pricing is essential for an efficient transition to the green economy. Despite Daniel, Litterman and Wagner (2019)' claim that CO2 prices should decline, CO2 prices should rise over time. First, damages from global warming are proportional to economic activity and this makes CO2 prices grow at the same rate as the economy. Second, even if uncertainty about the damage ratio is gradually resolved over time, this only slows down the price rise. Third, if CCS is allowed for, the optimal CO2 price will rise before it declines but this decline does not occur until more than two centuries ahead. Fourth, damages are likely to be a very convex function of temperature which with rising temperature implies that CO2 prices must grow faster than the economy. Fifth, internalizing the social benefits of learning by doing or a shift towards technical progress in renewable energy production requires a subsidy for renewable energy, not a temporary spike in CO2 prices. Having high CO2 prices upfront is an artefact of failing to separate out renewable energy subsidies from the carbon price. Finally, efficient intertemporal allocation of policy efforts implies that a temperature cap or cap on cumulative emissions requires that CO2 prices must rise at a rate equal to the risk-adjusted interest rate, typically higher than the economic growth rate. Summing up, CO2 prices must rise at a rate at least equal to the economic growth rate and at most to the risk-adjusted interest rate. They should not decline. |
| Keywords: | CO2 prices; Damages; risk |
| JEL: | H23 Q51 Q54 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14795&r= |
| By: | Maxime MENUET; Alexandru MINEA; Patrick VILLIEU; Anastasios XEPAPADEAS |
| Keywords: | , Growth, Environment, Pollution, Poverty Traps, Endogenous Cycles |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:leo:wpaper:2889&r= |
| By: | Francois Bareille (Paris-Saclay University, INRAE, AgroParisTech, Economie Publique, 78850, Thiverval-Grignon, France); Raja Chakir (Paris-Saclay University, INRAE, AgroParisTech, Economie Publique, 78850, Thiverval-Grignon, France) |
| Abstract: | The costs of climate change borne by agriculture are critically dependent on farmers’ adaptation. In this paper, we investigate how farmers adjust their input mix in response to weather fluctuations during the growing season using individual panel data from Meuse (France) between 2006 and 2012. Specifically, we consider weather and price information to estimate structural models of profit-maximizing farmers with crop-specific yields and input-crop-specific demand functions, conditionally on farm and annual fixed effects. The results show that weather fluctu-ations affect crop yields but that farmers adapt their fertilizer and pesticide applications. We use our estimates to simulate the impacts of a climate change scenario: we show that farmers in Meuse would increase fertilizer applications by 2.60% but reduce pesticide applications by6.92% under an RCP 4.5 scenario in 2050. These adjustments limit the negative direct impacts of climate change on plant growth, though heterogeneously among crops. In total, the added value of the agricultural sector is likely to reduce by 3.02%. Society could benefit from adaptation as the reduction in damage due to agrochemicals’ negative externalities represents twice the market costs borne by the agricultural sector. |
| Keywords: | Climate Change, Variable input, Growing season adjustments, Short-term adaptation, Structural econometrics |
| JEL: | Q12 Q53 Q54 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2021.09&r= |
| By: | Berardino Cesi (University of Rome Tor Vergata, Rome, Italy); Alessio D'Amato (University of Rome †Tor Vergata†, Italy) |
| Abstract: | Environmental regulation and pollution control may clash against the presence of unverifiable tasks, like source specific emissions. To tackle this issue we reshape a voluntary agreement instrument, already available in the received literature, in a dynamic perspective by means of a relational contracting approach. Setting up a Relational Voluntary Environmental Agreement (REA) helps the regulator to solve the unverifiability issue, and may provide polluting firms with the incentives to stick to environmental requirements. In an N firms symmetric context we show that even if emissions are not contractible across firms, so that enforcement cannot be delegated to a third party, if firms themselves are sufficiently patient, a self-enforcing equilibrium, under which the environmental objective is voluntarily met, exists. Finally, the policy analysis reveals that our REA may be welfare-improving with respect to a Voluntary Environmental Agreement on contractible emissions. This occurs when the enforcement cost savings under a relational agreement are larger than the additional social costs related to free riding. |
| Keywords: | Relational Contracts, Environmental Policy, UnveriÂ…ability, Voluntary Environmental Agreement |
| JEL: | D62 H23 Q58 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0821&r= |
| By: | Félix Bastit; Marielle Brunette; Claire Montagne-Huck |
| Abstract: | Natural disturbances are paramount in the development of ecosystems but may jeopardise the provision of forest ecosystem services. Climate change exacerbates this threat and favours interactions between disturbances. Our objective was thus to capture this dimension of multiple disturbances in forest economics through a literature review. We built a database that encompasses 101 English peer-reviewed articles published between 1916 and 2020. We looked at the relationships between six main natural hazards: fire, windstorm, drought, ice/snow, insects and pathogens/disease. Our results indicate that the most frequent pairs of hazards analysed together are “Wind-Insects” in Europe and “Fire-Insects” in North America. We observed that timber production is often the only ecosystem service considered. We show that most economic studies assume that natural hazards are independent of each other and could thus miss some of the effects of changing hazard regimes, contrary to ecology-oriented articles. Finally, we propose to refine current economic models by improving the modelling of natural hazards in order to find better-adapted silvicultural strategies in the future. |
| Keywords: | multi-hazard risk, interaction, economics, management, ecology, review, forest. |
| JEL: | D81 Q23 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2021-25&r= |
| By: | Laura Nowzohour |
| Abstract: | Adjustment costs are a central bottleneck of the real-world economic transition essential for achieving the sizeable reduction of greenhouse gas (GHG) emissions set out by policy makers. Could these costs derail the transition process to green growth, and if so, how should policy makers take this into account? I study this issue using the model of directed technical change in Acemoglu, Aghion, Bursztyn, and Hemous (2012), AABH, augmented by a friction on the choice of scientists developing better technologies. My results show that such frictions, even minor, materially affect the outcome. In particular, the risk of reaching an environmental disaster is higher than in the baseline AABH model. Fortunately, policy can address the problem. Specifically, a higher carbon tax ensures a disaster-free transition. In this case, the re-allocation of research activity to the clean sector happens over a longer but more realistic time horizon, namely around 15 instead of 5 years. An important policy implication is that optimal policies do not act over a substantially longer time horizon but must be more aggressive today in order to be effective. In turn, this implies that what may appear as a policy failure in the short-run — a slow transition albeit aggressive policy — actuallyreflects the efficient policy response to existing frictions in the economy. Furthermore, the risk of getting environmental policy wrong is highly asymmetric and "robust policy" implies erring on the side of stringency.Keywords: green growth, endogenous growth, directed technical change, induced innovation, environmental policy, adjustment costs. |
| Date: | 2021–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:gii:ciesrp:cies_rp_67&r= |
| By: | Kimon Keramidas (Joint Research center - European Commission); Silvana Mima (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Adrien Bidaud (Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Keywords: | Decarbonation reaction,Transition,Cement |
| Date: | 2021–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03252093&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 GtCO 2 with an environmental cost evaluated at US$ 2 trillion (US$ 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:wpaper:halshs-03244647&r= |
| By: | Konrad, Kai A. (Max Planck Institute for Tax Law and Public Finance); Lommerud, Kjell Erik (University of Bergen) |
| Abstract: | A central issue that is discussed in climate policy is the fear of owners of stocks of fossil hydrocarbon deposits that high CO2 taxes and bans on the combustion use of hydrocarbons will turn their stocks into stranded assets. They might react by extracting and selling their reserves today: a rush to burn results. We show how the stranded-asset problem could be avoided or strongly moderated. We analyze a simple intertemporal equilibrium with a given stock of fossil hydrocarbons. In this framework the following properties hold: For a climate-neutral solution to the rush-to-burn problem it is important to maintain existing and generate new markets for climate-neutral products from fossil hydrocarbons in the future, where we give examples for such products. Subsidies for such products (or for their innovation) reduce the rush-to-burn problem. In contrast, the creation of substitutes for fossil hydrocarbon-based climate-neutral products, or subsidies for such products reduce the market for products made from fossil hydrocarbons. This can aggravate the stranded-assets problem and thus can have a climate-damaging effect. |
| Keywords: | green paradox, rush to burn, catalytic pyrolysis, hydro-carbons, plastics |
| JEL: | Q54 Q35 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14451&r= |
| By: | Ní Choisdealbha, Áine; Lunn, Pete |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb202025&r= |
| By: | Khan, Haider |
| Abstract: | ABSTRACT With the election of Biden as the next US President and Harris as his Vice President, hopes regarding mitigating global climate change through renewable energy transitions have received a new impetus. Using data from the 2019 input-output table, a set of multipliers are computed for the US. Three different scenarios for transition to renewable energy are computed and analyzed using two different methodologies. It turns out that even modest changes in the direction of renewable energy transitions will help both mitigation of global warming and create new decent jobs in many sectors. Under the first methodology, the study found that with a 0.5% of GDP investment (107.15 billion), uniformly distributed across all sectors of the economy, a total of 388,089 jobs will be created in the renewable energy sector, the number doubles and quadruples to of 776,178 and 1,552,355 accordingly for 1% and 2% of GDP investments. Even under the second methodology, which only focuses on job-growth in the energy-intensive sectors, 1,406,466 would be created in the low assessment, 2,812,933 in the medium, and 5,625,866 jobs will be generated in the high assessment scenarios. Similar trends are seen output growth as well. Thus, there can be a double dividend from a set of renewable energy production and investment policies. |
| Keywords: | Keywords: Renewable energy, GDP, Biden, Harris |
| JEL: | A1 E0 |
| Date: | 2020–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108322&r= |
| By: | Andri Brenner (University of Potsdam, MCC Berlin) |
| Abstract: | Economists are worried that the lack of property rights to natural capital goods jeopardizes the sustainability of the economic growth miracle that has existed since industrialization. This article questions their position. A vertical innovation model with a portfolio of technologies for abatement, adaptation, and general (Harrod-neutral) technology reveals that environmental damage spillovers have a comparable effect on research profits as technology spillovers so that the social costs of depleting public natural capital are internalized. As long as there is free access to information and technology, growth is sustainable and the allocation of research efforts among alternative technologies is socially optimal. While there still is a need to address externalities from monopolistic research markets, no environmental policy is necessary. These results suggest that environmental externalities may originate in restricted access to information and technology, demonstrating that (i) information has a similar effect as an environmental tax and (ii) knowledge and technology transfers have an impact comparable to that of subsidies for research in green technology. |
| Keywords: | endogenous growth, horizontal innovation, sustainability |
| JEL: | O30 O44 Q55 Q56 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:35&r= |
| By: | Perez, Nicostrato D.; Kassim, Yumna; Ringler, Claudia; Thomas, Timothy S.; ElDidi, Hagar |
| Abstract: | Climate change negatively affects Egypt’s agriculture sector. This brief summarizes the results of a modeling exercise to examine a range of climate change adaptation approaches to counteract agricultural productivity declines. Rather than simulating a single technology, a ‘suite of technologies’ approach was used. For several food crops, none of the technology suites, individually or in combination, are shown to counteract the adverse impacts of climate change. For these crops, which include maize, oilseeds, pulses, and sugar, even stacking of technologies will not return productivity to pre-climate change levels. However, for fruits and vegetables, potatoes, rice, and wheat, crops less adversely affected by climate change, increased investments in climate changeresponsive crop traits, soil fertility improvement, water management, crop protection, or a combination of these technologies can counteract the adverse impacts of climate change on agricultural productivity. From a policy perspective, strong cooperation with the rest of the world on climate change adaptation will ultimately benefit Egyptian consumers. Doing so will reduce disruption of global food markets, which is of particular importance for countries, like Egypt, that are well integrated into those markets. In particular, Egypt’s economy and all Egyptian consumers benefit from the importation of lower-value, high water-consuming cereals under the hotter and drier conditions that can be expected in Egypt in the future due to climate change. |
| Keywords: | EGYPT, ARAB COUNTRIES, MIDDLE EAST, NORTH AFRICA, AFRICA, climate change, agriculture, agricutural sector, agricultural productivity, food production, food prices, technology, suite of technologies |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:menapn:18&r= |
| By: | Yoo, Sunbin; Hong, Sungwan; Park, Yeongkyung; Okuyama, Akihiro; Zhang, Zhaozhe; Yoshida, Yoshikuni; Managi, Shunsuke |
| Abstract: | While various policy instruments have attempted to raise environmental concerns in the past decades, it is unclear if these concerns are revealed in the consumer choices of our daily life. In this study, we investigate whether environmental concerns drive the choices of modes of transport through the bike-sharing example in Tokyo and Shanghai. We conducted a survey questionnaire to define three types of environmental concerns and quantitatively estimated their effects on bike-sharing choices using the latent class model, considering individual heterogeneity. The results show that environmental concerns affect bike-sharing choices differently for different people. While the fear of natural disasters and/or an indifference towards the environment would be dominant factors in commuting, the willingness to preserve a natural environment shows substantial correlations to bike-sharing when respondents return from weekend shopping. These differences indicate that relevant policies should be effectively implemented to interact with such environmental concerns. |
| Keywords: | Bike-sharing; shared transportation; demand estimation; latent choice model; latent class; environmental concern |
| JEL: | L62 Q5 Q55 R4 |
| Date: | 2021–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108312&r= |
| By: | Ahmad Naimzada; Marina Pireddu |
| Abstract: | We extend the dynamic Cournot duopoly framework with emission charges on outputs by Mamada and Perrings (2020), which encompassed homogeneous products in its original formulation, to the more general case of differentiated goods, in order to highlight the richness in its static and dynamic outcomes. In the model each firm is taxed proportionally to its own emission only and charge functions are quadratic. Moreover, due to an adjustment capacity constraint, firms partially modify their output level toward the best response. Like it happened in Mamada and Perrings (2020), the only model steady state coincides with the Nash equilibrium. We find that the full efficacy of the environmental policy, which applies to an equilibrium that is globally asymptotically stable anytime it is admissible, is achieved in the case of independent goods, as well as with a low interdependence degree between goods in absolute value, independently of being substitutes or complements. On the other hand, when goods are substitutes and their interdependence degree is high, the considered environmental policy is still able to reduce pollution at the equilibrium, but the latter is stable just when the policy intensity degree is high enough. When instead goods are complements and their interdependence degree is high in absolute value, the considered environmental policy produces detrimental effects on the pollution level and the unique equilibrium is always unstable, when admissible. This highlights that, from a static viewpoint, even in the absence of free riding possibilities, the choice of the mechanism to implement has to be carefully pondered, according to the features of the considered economy. |
| Keywords: | dynamic Cournot duopoly, differentiated products, emission charges, pollution control, comparative statics, stability analysis. |
| JEL: | C62 D43 Q51 Q58 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:471&r= |
| By: | Tovar Reaños, Miguel |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb202032&r= |
| By: | Giovanni Di Bartolomeo; Behnaz Minooei Fard; Willi Semmler |
| Abstract: | Policies designed to limit greenhouse gases (GHGs) imply domestic tradeoffs and international externalities, which lead to both domestic and international conflicts, influencing their feasibility and implementation. Our paper aims at investigating two quantitative aspects within this debate. We intend to quantify the impact of (a) the internalization of international externalities and (b) the damage associated with a short-term view of climate policies. In this respect, we adopt the innovative (in this field) idea of model predictive control to formalize moving-horizon policy strategies and, thus, to build counterfactuals in which policymakers may have different horizons |
| Keywords: | Global warming, CO2 concentration, Climate policy, Short termism, Non-linear model predictive control |
| JEL: | C61 P28 Q54 Q58 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:sap:wpaper:wp196&r= |
| By: | Louise Ella Desquith; Olivier Renault |
| Abstract: | AbstractThis article is a review of the literature on the determinants of farmers’ adaptation choice in sub-Saharan Africa. A set of studies has highlighted the existence of inequalities in adaptation at local level that suggests paying more attention to its micro determinants. Maddison (2007) emphasizes the importance of the perception of agricultural change in the adaptation process. Paradoxically, a recent literature shows that farmers have a good perception of climate change but do not really engage in adaptation strategies even when financial or institutional resources are not binding. This paradox suggests that beliefs, prone to develop in uncertain contexts, play an important role in the choice of adaptation. The specificity of the sub-Saharan households’ beliefs must be considered in policies aimed at developing adaptation. |
| Keywords: | Climate change, Adaptation, Vulnerability, perceptions, beliefs |
| JEL: | Q54 D81 D83 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2021-17&r= |
| By: | Jabir Ali Ouassou; Julian Straus; Marte Fodstad; Gunhild Reigstad; Ove Wolfgang |
| Abstract: | Conventional energy production based on fossil fuels causes emissions which contribute to global warming. Accurate energy system models are required for a cost-optimal transition to a zero-emission energy system, an endeavor that requires an accurate modeling of cost reductions due to technological learning effects. In this review, we summarize common methodologies for modeling technological learning and associated cost reductions. The focus is on learning effects in hydrogen production technologies due to their importance in a low-carbon energy system, as well as the application of endogenous learning in energy system models. Finally, we present an overview of the learning rates of relevant low-carbon technologies required to model future energy systems. |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2106.06373&r= |
| By: | Tamara Sheldon; Rubal Dua; Omar Al Harbi (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The transportation sector accounts for 24% of global greenhouse gas (GHG) emissions (IEA 2020). Road transport is the most utilized mode because of its convenience (Van Essen 2008). However, it is also the most emissions intensive mode, accounting for 75% of global transport GHG emissions, with roughly 44% coming from road passenger vehicles alone (IEA 2020). |
| Keywords: | Fleet Fuel Economy, Freight transport activity, |
| Date: | 2021–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2021-dp07&r= |
| By: | May Attallah; Jens Abildtrup; Anne Stenger |
| Abstract: | In this article, we use an experimental approach to test the effect of non-monetary incentives that can guide harvest professionals into adopting new sustainable harvesting practices. First, we test the effect of signing a declaration that commits wood buyers who voluntarily sign it to act in a sustainable manner. Second, we test the effect of priming by activating a concept of sustainability on subjects’ behaviour. Our results provide evidence that signing a declaration is more effective than priming in inducing subjects to act in a sustainable manner when personal and collective interests are not aligned and there are financial incentives to make decisions that are against environmental sustainability. From a public policy point of view, a declaration is an effective tool and easy to implement by institutions aiming at fostering pro-environmental behaviour. |
| Keywords: | Timber harvest; Laboratory experiment; Non-monetary incentives; Commitment; Priming. |
| JEL: | C91 Q23 Q56 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2021-20&r= |
| By: | Mary C. Daly |
| Date: | 2021–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfsp:92795&r= |
| By: | Zarkovic, Maja (University of Basel) |
| Abstract: | A persistent concern in the literature on climate policy is that the emissions abatement, which is achieved via environmental regulation, has potentially adverse affects on firms' economic performance. I investigate this issue in the context of the European Union Emissions Trading Scheme (EU ETS) and the German manufacturing sector. My investigation uses confidential data from an administrative firm-level production census. As a measure of the economic performance, I estimate cost efficiencies and their determinants for narrowly defined industries with a stochastic cost frontier (SCF) analysis. In order to directly compare cost efficiencies across treatment groups, I use a stochastic meta frontier (SMF) analysis. I provide additional evidence of the causal impact of the EU ETS on various types of firms` costs with a difference-in-differences (DD) framework. My results indicate that the EU ETS regulation has resulted in a small but significant increase in costs across the German manufacturing sector. This increase is driven mostly by an increase in energy and capital costs. I demonstrate that the potential to increase cost efficiency exists for most industries in the German manufacturing sector. The analysis of the drivers of cost efficiency confirms that in most industries, exporting firms are more cost efficient than their counterparts. In contrast, the results show that innovating firms and firms that are regulated by the EU ETS are less cost efficient than unregulated firms. |
| Keywords: | Stochastic Frontier Analysis, Meta Frontier Analysis, EU ETS, Manufacturing Sector |
| JEL: | D22 D24 N64 Q52 |
| Date: | 2020–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2020/12&r= |
| By: | Cartes Mena, Fernando |
| Abstract: | Para cumplir los objetivos del Acuerdo de París, hace falta una transformación a gran escala de la estructura de la actividad económica, y ello exige también un cuidadoso diseño de la política climática. Como señala la Comisión de Alto Nivel sobre los Precios del Carbono, el diseño adecuado del precio del carbono es una parte indispensable de la estrategia para reducir las emisiones de manera eficiente, que puede complementarse con la fijación de precios sombra en las actividades del sector público. En la mayor parte de los sistemas nacionales de inversión pública de América Latina y el Caribe, se hace referencia a este concepto con la denominación de “precio social”. En este estudio se presentan algunas metodologías para la estimación del precio social del carbono, se describe cómo este puede incluirse en los procesos de evaluación de los proyectos de inversión pública, tomando el caso de Chile como ejemplo, y se propone la aplicación de una de las metodologías analizadas en los proyectos de inversión pública de los países de la región, en el marco de los sistemas nacionales de inversión pública. |
| Keywords: | CARBONO, PRECIOS, INDICES DE PRECIOS, INVERSION PUBLICA, EVALUACION DE PROYECTOS, DESARROLLO SOSTENIBLE, CAMBIO CLIMATICO, CARBON, PRICES, PRICE INDEXES, PROJECT EVALUATION, SUSTAINABLE DEVELOPMENT, CLIMATE CHANGE |
| Date: | 2021–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:46957&r= |
| By: | Holden, Stein T. (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Tilahun, Mesfin (Centre for Land Tenure Studies, Norwegian University of Life Sciences) |
| Abstract: | We have used simple incentivized social preference experiments for a sample of 2427 resource-poor rural youth that have formed natural-resource based youth business groups in their home communities. The experiments were combined with questions investigating their attitudes towards environmental conservation and willingness to contribute to conservation of local natural resources related to a compulsory labor contribution program. The paper investigates whether and how the revealed social preferences are associated with the attitudes towards environmental conservation and explores the spatial heterogeneity of conservation attitudes. It tests whether youth with altruistic and egalitarian social preferences are associated with stronger motivations for contributing to the compulsory conservation program than youth with selfish and spiteful preferences. Our study finds evidence in support of this hypothesis. We also find evidence of substantial spatial variation in the attitudes towards the environmental conservation program and much of this heterogeneity seems to be determined at the community (tabia) level which is the lowest administrative level and the level at which the compulsory conservation program is organized. In general, we find strong support for the compulsory conservation work program among the youth. 97% of the youth agree or strongly agree that the program is very important to protect the natural resource base and secure the future livelihoods in their community. On average the subjects were willing to contribute 19.4 days/year free labor to the program, which was close to the current requirement of 20 days/year. |
| Keywords: | Social preferences; incentivized experiments; attitudes towards conservation; compulsory public works; local public goods; natural resource conservation; Tigray |
| JEL: | D64 D91 H23 H26 Q56 |
| Date: | 2021–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsclt:2021_003&r= |
| By: | Berlemann, Michael (Helmut Schmidt University, Hamburg); Haustein, Erik (Helmut Schmidt University, Hamburg); Steinhardt, Max F. (Free University of Berlin) |
| Abstract: | Slow onset climate change has the potential to cause significant migration flows. Scientists have recently made considerable efforts to quantify these flows based on empirical methods. However, the literature on international migration has failed to come to a clear conclusion as many studies found no significant effects of climate, while others did. In this paper, we aim to uncover a factor which likely contributes to the mixed picture in the literature: how migration flow data is obtained from migrant stock data. Using the influential study of Cattaneo and Peri (2016) as a workhorse, we demonstrate that the derived empirical results depend heavily on the applied method to derive migration flows. Therefore, our study reveals the necessity for future research on international migration to test the sensitivity of estimated effects to changes in the construction of migration flows. |
| Keywords: | climate change, emigration, economic development, migration data |
| JEL: | F22 J61 O15 Q54 Q56 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14450&r= |
| By: | Rasool, Muhammad (University of Technology Sydney, Australia); Khalilpour, Kaveh (University of Technology Sydney, Australia); Rafiee, Ahmad (Dana Cluster Pty Ltd., Sydney, Australia); Karimi, Ifthekar (National University of Singapore); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | Over the last five decades, there have been a few phases of interest in the so-called hydrogen economy, stemming from the need for either energy security enhancement or climate change mitigation. None of these phases has been successful in a major market development mainly due to the lack of cost competitiveness and partially due to technology readiness challenges. Nevertheless, a new phase has begun very recently, which despite holding original objectives has a new motivation to be fully green, based on renewable energy. This new movement has already initiated bipartisan cooperation of some energy importing countries and those with abundant renewable energy resources and supporting infrastructure. For example, the abundance of renewable resources and a stable economy of Australia can attract investments in building these green value chains with countries such as Singapore, South Korea, Japan, and those even further distant like in Europe. One key challenge in this context is the diversity of pathways for the (national and international) export of non-electricity renewable energy. This poses another challenge, i.e., the need for an agnostic tool for comparing various supply chain pathways fairly while considering various techno-economic factors such as renewable energy sources, hydrogen production and conversion technologies, transport, and destination markets, along with all associated uncertainties. This paper addresses the above challenge by introducing a probabilistic decision analysis cycle methodology for evaluating various renewable energy supply chain pathways based on the hydrogen vector. The decision support tool is generic and can accommodate any kind of renewable chemical and fuel supply chain option. As a case study, we have investigated eight supply chain options composed of two electrolysers (alkaline and membrane) and four carrier options (compressed hydrogen, liquefied hydrogen, methanol, and ammonia) for export from Australian ports to three destinations in Singapore, Japan, and Germany. The results clearly show the complexity of decision making induced by multiple factors. |
| Keywords: | Hydrogen economy; renewable hydrogen vector; renewable energy utilisation; renewable energy supply chain; decision analysis cycle; expected levelised cost of hydrogen (ELCOH) |
| JEL: | Q40 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2021_004&r= |
| By: | David Gaukrodger (OECD) |
| Abstract: | As our societies face new challenges and make new demands from policies addressing international investment, there is a new urgency to profoundly reconsider treaties addressing investment. This paper was prepared originally as background for initial inter-governmental and public discussions at the OECD about future investment treaties as well as possible alternatives. The paper surveys potential roles for treaties addressing investment in (i) contributing to sustainable development and responsible business conduct; (ii) preserving and improving investment market access and liberalisation of investment, and facilitating FDI; (iii) regulating subsidised state-owned enterprises, competition in subsidies for investment, and digitalisation; and (iv) addressing the interests of treaty-covered and other investors in reasonable legal predictability and a level playing field, together with the need for policy space and public support for treaty policy. It considers potential use of more flexible and varied remedies and implementation mechanisms. A final section briefly considers treaty policies as governments and societies confront the urgent challenge of climate change. |
| Keywords: | environmental law, human rights, labour law, responsible business conduct, sustainable development |
| JEL: | F18 F13 F21 F23 F53 F60 K23 K32 K33 K40 |
| Date: | 2021–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dafaaa:2021/03-en&r= |
| By: | Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Sheykkha, Siamak (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Briglauer, Wolfgang (Vienna University of Economics and Business) |
| Abstract: | Massive increases in Internet data traffic over the last years have led to rapidly rising electricity demand and CO2 emissions, giving rise to environmental externalities and network congestion costs. One particular concern is the rise in data traffic generated by video-streaming services. We analyze the electricity-saving potential related to video streaming in Europe from 2020 to 2030. To this end, three trend scenarios (Business-as-usual, Gray, and Green) are considered and modeled bottom-up, taking specific energy consumption (and trends) of data transmission networks, end-use devices, and data centers into account. Using these scenarios, we examine in more detail the approximate energy-saving impact that regulatory interventions and technical standards can have on the electricity consumption of end-users, network operators, and data centers. The model results reveal that regulatory intervention can have a significant impact on energy consumption and CO2 emissions. As technical regulation carries the risk of stymieing innovation and dynamic efficiency, we propose economic regulation in terms of a mandatory transit fee as a long-term solution. |
| Keywords: | Video streaming; Scenario analysis; Electricity-saving potential; Energy efficiency improvement; User behavior; Market failure; Internet traffic regulation |
| JEL: | D62 L82 L96 O33 O52 P48 Q47 Q48 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2021_005&r= |
| By: | Judson Boomhower |
| Abstract: | The electoral salience of some issues may diminish when one politician has authority over many policy areas. This study measures the role of environmental regulation in concurrent elections for governors and specialized energy regulators in two U.S. states. I first show that while both offices can influence environmental and energy policies, quantitative analysis of campaign news coverage reveals clear differences in the importance of these issues in the two races. Next, I use geologic variation in earthquakes caused by oil and gas production to measure the electoral consequences of a costly environmental externality. There are measurable effects only in the energy regulator race. These results are consistent with theories of issue bundling. Finally, the unbundling effects that I measure appear to be themselves limited by voter attentiveness and partisanship. |
| JEL: | D72 H11 Q35 Q58 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28857&r= |
| By: | Drechsler, Martin |
| Abstract: | Tradable permits or offsetting schemes are increasingly used as an instrument for the conservation of biodiversity on private lands. Since the restoration of degraded land often involves uncertainties and time lags, conservation biologists have strongly recommended that credits in conservation offset schemes should awarded only with the completion of the restoration process. Otherwise, as is claimed, is the instrument likely to fail on the objective of no net loss in species habitat and biodiversity. What is ignored in these arguments, however, is that such a scheme design may incur higher economic costs than a design in which credits are already awarded at the initiation of the restoration process. In the present paper a generic agent-based ecological-economic simulation model is developed to explore different pros and cons of the two scheme designs, in particular their cost-effectiveness. The model considers spatially heterogeneous and dynamic conservation costs, risk aversion and time preferences in the landowners, as well as uncertainty in the duration and the success of restoration process. It turns out that, especially under fast change of the conservation costs, awarding credits at the initiation of restoration can be more cost-effective than awarding them with completion of restoration. |
| Keywords: | agent-based modelling, conservation offsets, ecological-economic modelling, habitat restoration, uncertainty |
| JEL: | Q15 Q57 |
| Date: | 2021–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108209&r= |
| By: | Baranzini, Andrea; Carattini, Stefano; Tesauro, Linda |
| Abstract: | While instruments to price congestion exist since the 1970s, less than a dozen cities around the world have a cordon or zone pricing scheme. Geneva, Switzerland, may be soon joining them. This paper builds on a detailed review of the existing schemes to identify a set of plausible design options for the Geneva congestion charge. In turn, it analyzes their acceptability, leveraging a large survey of residents of both Geneva and the surrounding areas of Switzerland and France. Our original approach combines a discrete choice experiment with randomized informational treatments. We consider an extensive set of attributes, such as perimeter, price and price modulation, use of revenues, and exemption levels and beneficiaries. The informational treatments address potential biased beliefs concerning the charge’s expected effects on congestion and pollution. We find that public support depends crucially on the policy design. We identify an important demand for exemptions, which, albeit frequently used in the design of environmental taxation, is underexplored in the analysis of public support. This demand for exemptions is not motivated by efficiency reasons. It comes mostly by local residents, for local residents. Further, people show a marked preference for constant prices, even if efficiency would point to dynamic pricing based on external costs. Hence, we highlight a clear trade-off between efficiency and acceptability. However, we also show, causally, that this gap can in part be closed, with information provision. Analyzing heterogeneity, we show that preferences vary substantially with where people live and how they commute. Even so, we identify several designs that reach majority support. |
| Keywords: | acceptability; congestion charge; poicy design; public support; road pricing; Centre for Climate Change Economics and Policy; PZ00P1_180006/1 |
| JEL: | D72 H23 Q53 Q58 R41 R48 |
| Date: | 2021–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:110870&r= |
| By: | CGIAR Research Program on Policies, Institutions, and Markets (PIM) |
| Abstract: | What are the key drivers of change in agrifood systems? What challenges do these drivers present to achievement of sustainable food and nutrition security at global, regional, and national scales? How can agricultural technologies, natural resource management practices, and investment in infrastructure address these challenges in ways that manage trade-offs, protect natural capital, and sustain the provision of ecosystem services? PIM researchers analyzed the consequences of a number of key drivers for the future development of food systems. The primary focus has been on climate change, population and income growth, food prices, and their combined effects on dietary preferences, health, and the environment, as well as on the role of changing technology and responses to investments in key components of the food system. A body of work comprised of ground-breaking original research and review studies was made possible by the successful building of a community of practice on foresight that brought together researchers across CGIAR with collaborators from academia and centers of excellence all over the world. |
| Keywords: | WORLD, capacity development, technology, innovation, food systems, policies, gender, women, agriculture, intensification, sustainable intensification, policy change, |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:pimfis:1&r= |
| By: | Stephie Fried; Kevin Novan; William B. Peterman |
| Abstract: | This paper explores how to recycle carbon tax revenue back to households to maximize welfare. Using a general equilibrium lifecycle model calibrated to reflect the heterogeneity in the U.S. economy, we find the optimal policy uses two thirds of carbon-tax revenue to reduce the distortionary tax on capital income while the remaining one third is used to increase the progressivity of the labor-income tax. The optimal policy attains higher welfare and more equality than the lump-sum rebate approach preferred by policymakers as well as the approach originally prescribed by economists -- which called exclusively for reductions in distortionary taxes. |
| Keywords: | Carbon tax; Overlapping generations; Revenue recycling |
| JEL: | E62 H21 H23 |
| Date: | 2021–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2021-23&r= |
| By: | Antonio Di Cintio; Marco Torri; Federico Falcini; Raffaele Corrado; Guglielmo Lacorata; Angela Cuttitta; Bernardo Patti; Rosalia Santoleri |
| Abstract: | During the last decades, scientific community has been investigating both biological and hydrographic processes that affect fisheries. Such an interdisciplinary and synergic approach is nowadays giving a fundamental contribution, in particular, in connecting the dots between hydrographic phenomena and biomass variability and distribution of small pelagic fish. Here we estimate impacts of hydrographic fluctuations on small pelagic fishery, focusing on the inter-annual variability that characterizes connectivity between spawning and recruiting areas for the European anchovy (Engraulis encrasicolus, Linnaues 1758), in the Northern side of the Sicily Channel (Mediterranean Sea). Results show that coastal transport dynamics of a specific year largely affect the biomass recorded the following year. Our work, moreover, quantifies the specific monetary impacts on landings of European anchovy fishery due to hydrodynamics variability, connecting biomass fluctuations with fishery economics in a highly dynamic and exploited marine environment as the Sicily Channel. In particular, we build a model that attributes a monetary value to the hydrographic phenomena (i.e., cross-shore vs. alongshore eggs and larvae transport), registered in the FAO Geographical Sub-Area (GSA) 16 (Southern Sicily). This allows us to provide a monetary estimation of catches, derived from different transport dynamics. Our results highlight the paramount importance that hydrographic phenomena can have over the socio-economic performance of a fishery. |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2106.09437&r= |
| By: | Beatrice Bertelli; Gianna Boero; Costanza Torricelli |
| Abstract: | Fostered by an empirical literature providing disparate evidence on the green premium, we propose a two-factor model to explain returns on green bonds not only as a function of market risk but also of the bond greenness. The second factor can be interpreted as a greenness premium, which can be either positive or negative depending on the product of the price given by the market to greenness and the sensitivity of the specific green bond to the latter. Based on the model proposed and its Fama-Mac Beth estimation on a sample of Euro-denominated bonds over the period 08.10-2014-31.12.2019, we are able to conclude that the market does price greenness, but the price is very small: including Government green bonds is 0.7 bps, and focusing on corporate green bonds only is – 1.3 bps. In all cases the dynamics of the price for greenness has a positive drift as the market reaches a more mature phase, landing to a positive average value (2 bps), which implies greenness being viewed as a small penalty. However, differences emerge when we look at the issuer sector level and at single bonds, thus our model is able to explain the disparate empirical evidence provided by the literature on the greenium. On the whole, results hint to a market where the difference in pricing between conventional and green bonds is, ceteris paribus, shrinking, which is consistent with greenness becoming a new normal. These results are of interest for many economic agents, including market participants and financial intermediaries, whereby the latter are also called by the regulator to manage their portfolio in consideration of climate risk |
| Keywords: | green bonds, green premium, sustainable finance, factor models, asset pricing |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:mod:wcefin:0083&r= |
| By: | GEA ARANOA Ainhoa |
| Abstract: | This report proposes a number of indicators aimed at facilitating the work of European regional governments that want to monitor how their policies contribute to the Sustainable Development Goals (SDGs) and their progress toward them. For this purpose, this report analyses four European SDG sub-national indicator sets. The analysis starts by identifying which indicators included in the European Handbook for SDG Voluntary Local Reviews (published by the European Commission in 2020) and proposed for the local level are also meaningful and available at the regional level. After this first step, three case studies are analysed: the Basque Country and Navarre in Spain, and Flanders in Belgium. In spite of the differences between the case studies of the Basque Country, Navarra and Flanders, there are also remarkable similarities in these examples, which shows once again that the 2030 Agenda allows regions to speak a "common language”. Any regional government willing to adopt the proposed consolidated indicator system as the basis for the development of its own monitoring system, might select those indicators most relevant to the local situation and integrate them with additional indicators identified in the specific regional context. |
| Keywords: | sustainable development indicators, SDGs, regional indicators |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc124590&r= |
| By: | Dugoua, Eugenie |
| Abstract: | Global environmental problems are some of the most pressing issues that humanity is facing. There are few examples of success at resolving them; the fight to protect the ozone layer is one of them. This paper provides evidence that the Montreal Protocol’s restrictions on chlorofluorocarbons ( CFCs) triggered a substantial increase in research and innovation on alternatives to ozone-depleting molecules. I compare CFC substitute molecules to molecules that have similar uses but are unrelated to ozone depletion. After the signing of the agreement, patents on CFC substitutes increased by 400% and scientific articles by 500% compared to the control group. These findings suggest that agreements can indeed trigger the development of technological solutions, thereby improving the benefit-cost equation of environmental protection |
| JEL: | O55 O31 O33 F53 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:110859&r= |
| By: | Azhgaliyeva, Dina (Asian Development Bank Institute); Beirne, John (Asian Development Bank Institute); Mishra, Ranjeeta (Asian Development Bank Institute) |
| Abstract: | We examine the drivers of private investment in renewable energy by source of funding for 13 global economies over the period 2008 to 2018, with a focus on a sub-panel of Asian economies. Using a seemingly unrelated regression model, we provide a first quantitative estimate of the effect of government renewable energy policies on private investments across different sources of financing. Our results indicate that feed-in-tariffs (FITs) have the greatest overall effect in Asia on driving private investment in renewable energy, particularly from asset finance compared with other funding sources. The impact of FITs in Asia is also greater than that of the global sample. The impact of FITs is amplified in the presence of lower regulatory quality, which may be related to ease of market entry. We also find an important role in Asia for government expenditure on research and development in stimulating private investment. The magnitudes of the effects in Asia are broadly in line with the overall global sample. Finally, we find that technology costs, are less elastic on private investment in Asia compared with globally in affecting private investment in renewable energy across all funding sources, which may be related to the prevailing strong cost competitiveness of Asian economies in renewable energy provision. |
| Keywords: | private investment; public investment; renewable energy; green investment; feed-in tariff |
| JEL: | O30 O38 Q28 Q42 |
| Date: | 2021–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1246&r= |
| By: | Echeverría, Lucía (University of Zaragoza); Gimenez-Nadal, J. Ignacio (University of Zaragoza); Molina, José Alberto (University of Zaragoza) |
| Abstract: | Recent years have witnessed efforts worldwide to promote green mobility, aimed at boosting sustainable economic growth. However, how green mobility relates to travelers' well-being remains an open question. We explore whether "green" modes of transportation (public transit and walking/cycling) are associated with higher levels of well-being in comparison to private driving, placing special focus on different types of travel (related to paid work, unpaid work, personal care, childcare, and leisure). We use the UK Time Use Survey (UKTUS) from 2014-2015, and exploit information on self-reported enjoyment during travel, as a measure of experienced well-being. We estimate Ordinary Least Squares and Random Effects regressions for each travel category, and find relative, positive effects of physical transport on enjoyment, in terms of personal care and leisure, while the relative negative effects of public transport are observed for childcare and work/paid travel, in relationship to traditional driving modes. Our evidence suggests a need to develop strategies to effectively promote mobility by physical modes, while improving the experience of public transit users. |
| Keywords: | subjective well-being, green travelling, walking/cycling, public transport |
| JEL: | R4 J22 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14430&r= |
| By: | Joab D. Valdivia C.; Angélica C. Calle S.; Juan C. Carlo S.; Rolando E. Paz R. (Banco Central de Bolivia) |
| Abstract: | Bolivia siempre fue caracterizada como un país exportador de materias primas; esta particularidad se debe a la producción de gas natural y minerales. En la literatura, estos sectores se definen como extractivos no renovables. La presente investigación empleó un set de modelos para evidenciar la sostenibilidad de estos sectores en el crecimiento económico. En línea con Sachs y Warner (1995) y Ding y Field (2005), los resultados son laudables, es decir, existe un efecto negativo de las variables asociadas a recursos naturales extractivos. En la versión recursiva del modelo de Vectores Autorregresivos, se aprecia una mayor persistencia del efecto negativo de recursos naturales en el comportamiento del PIB desde 2012, año en el cual los términos de intercambio presentaron una desaceleración pronunciada. Finalmente, el sector industrial de Bolivia muestra efectos positivos en el comportamiento del crecimiento económico, siendo 0,10pp en 2010 como el máximo efecto y 0,04pp como el mínimo, a junio de 2019. |
| Keywords: | Renta minera, renta por gas natural, recursos naturales, control sintético, diferencias en diferencias, Vectores Autoregresivos (VAR) recursivos |
| JEL: | O13 P28 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:blv:doctra:2019/02&r= |
| By: | Pankaj Koirala (School of Economics and Management, Kochi University of Technology); Raja Rajendra Timilsina (School of Economics and Management, Kochi University of Technology); Koji Kotani (School of Economics and Management, Kochi University of Technology) |
| Abstract: | Intergenerational sustainability (IS) has emerged as the most serious social problem reflecting climate change and accumulation of public debt in modern democratic societies, undermining the potential interests and concerns of future generations. However, little is known about whether or not deliberative forms of democracy with majority voting helps support at maintaining IS by representing future generations’ potential interests and concerns. We institute intergenerational sustainability dilemma game (ISDG) with three forms of decision-making models with majority voting and examine how they maintain IS in laboratory experiments. In ISDG, a sequence of six generations is prepared where each generation consisting of three subjects is asked to choose either maintaining IS (sustainable option) or maximizing their own generation’s payoff by irreversibly costing the subsequent generations (unsustainable option) with anonymous voting systems: (1) majority voting (MV), (2) deliberative majority voting (DMV) and (3) majority voting with deliberative accountability (MVDA). In MV and DMV, generations vote for their choices without and with deliberation, respectively. In MVDA, generations are asked to be possibly accountable for their choices to the subsequent generations during deliberation, and then vote. Our analysis shows that decision-making models with only majority voting generally does not address IS, while DMV and MVDA treatments induce more and much more generations to choose a sustainable option than MV, respectively. Overall, the results demonstrate that deliberation and accountability along with majority voting shall be necessary in models of decision making at resolving IS problems and representing future generations’ potential interests and concerns. |
| Keywords: | democracy, decision-making, majority voting, deliberation, intergenerational accountability |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2021-6&r= |
| By: | Bartolini, Stefano; Sarracino, Francesco |
| Abstract: | Empirical evidence suggests that achieving sustainability requires reducing economic growth, not just greening it. This conclusion often leads to ecological pessimism, based on two beliefs. The first is that there is a human tendency to unlimited expansion; the second is that lack of consensus makes limiting growth politically unfeasible. We challenge both beliefs. The decline of fertility and per-capita income growth provide reasons to expect decreasing human pressure on ecosystems. Moreover, the lack of a clear alternative to growth as a means to increase well-being creates the widespread perception of a trade-off between sustainability and current well-being. This hinders the consensus to the policy of limits to growth. Drawing on a large literature on happiness, social capital and other topics, we argue that policies for social capital can decouple well-being from economic growth. Indeed, the crisis of social capital experienced by much of the world's population is at the origin of the current unsustainable growth of the world economy. Declining social capital leads the economies to excessive growth, because people seek economic affluence to compensate for the emotional distress and collective disempowerment caused by poor social capital. We then suggest policies that, by promoting social capital, would expand well-being, and shift the economy to a more sustainable path characterized by slower economic growth. Such set of proposals is more politically viable than the current agenda of limits to growth and reconcile sustainability and well-being. |
| Keywords: | sustainability; social relations; subjective well-being; economic growth. |
| JEL: | I31 J1 O1 Q56 |
| Date: | 2021–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108309&r= |
| By: | Abay, Kibrom A.; El-Enbaby, Hoda; Abdelfattah, Lina; Breisinger, Clemens |
| Abstract: | Increasing population pressure and population density in many African countries are inducing land scarcity and land constraints. These are expected to trigger various responses and adaptation strategies, including agricultural intensification induced by land scarcity, as postulated by the Boserup hypothesis. However, most empirical evaluations of the hypothesis come from rainfed agriculture and mostly from sub-Saharan Africa, where application of agricultural inputs remains historically low. Agricultural intensification practices and the relevance of the Boserup hypothesis in irrigated agriculture (and where application of improved inputs is high) remains unexplored. We investigate the implication of land scarcity on agricultural intensification and the relevance of the Boserup hypothesis in the context of Egypt, where agriculture is dominated by irrigation and input application rates are much higher than elsewhere in Africa. We find that land scarcity increases overapplication of nitrogen fertilizer relative to crop-specific agronomic recommendations. This implies that land constraints remain as important challenges for sustainable agricultural intensification. Finally, we find suggestive evidence that such overapplication of nitrogen fertilizers is not yield-enhancing, but, rather, yield-reducing. We also document that land scarcity impedes mechanization of agriculture. |
| Keywords: | EGYPT, ARAB COUNTRIES, MIDDLE EAST, NORTH AFRICA, AFRICA, land resources, sustainability, smallholders, irrigated farming, agriculture, farming systems, intensification |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:menapn:16&r= |
| By: | James E. Archsmith; Erich Muehlegger; David S. Rapson |
| Abstract: | This paper identifies and quantifies major determinants of future electric vehicle (EV) demand in order to inform widely-held aspirations for market growth. Our model compares three channels that will affect EV market share in the United States from 2020-2035: intrinsic (no-subsidy) EV demand growth, net-of-subsidy EV cost declines (e.g. batteries), and government subsidies. Geographic variation in preferences for sedans and light trucks highlights the importance of viable EV alternatives to conventional light trucks; belief in climate change is highly correlated with EV adoption patterns; and the first $500 billion in cumulative nationwide EV subsidies is associated a 7-10 percent increase in EV market share in 2035, an effect that diminishes as subsidies increase. The rate of intrinsic demand growth dwarfs the impact of demand-side subsidies and battery cost declines, highlighting the importance of non-monetary factors (e.g. charging infrastructure, product quality and/or cultural acceptance) on EV demand. |
| JEL: | H23 Q47 Q48 Q5 R4 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28933&r= |
| By: | Monica Pratesi; Claudio Ceccarelli; Stefano Menghinello |
| Abstract: | Official statistics are collected and produced by national statistical institutions (NSIs) based upon standardized questionnaire forms and a priori designed survey frame. Although the response to NSIs’ surveys is mandatory for respondent units, increasing disaffection in replying to official surveys is a common trend across many advanced countries. This work explores the possibility to use Citizen-Generated Data (CGD) as a new information source for the compilation of official statistics. CGD represent a unique and still unexploited data source that share some key characteristics with Big Data, while they present some specific features in terms of information relevance and data generating process. Given the relevance of CGD to reduce the information gap between the demand and supply of new or more robust Sustainable Development Goals (SDG) indicators, the experimental setting to assess the data quality of CGD refers to different ways to integrate official statistics and CGD. Istat collects CGD within the framework of a pilot survey focused on key SDG indicators, and the appropriate methodological approach to assess data quality for official statistics is defined according to different data integration modalities. |
| Keywords: | Citizen-Generated Data (CGD), National statistical Institutions (NSIs), Sustainable Development Goals (SDG), Official statistics (OS), Data Science, Latent variables models, civil society organizations (CSOs) |
| JEL: | C81 C83 |
| Date: | 2021–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:pie:dsedps:2021/274&r= |
| By: | Ahmed, Akhter; Bakhtiar, M. Mehrab; Ghostlaw, Julie; Parvin, Aklima; Khan, A. S. M. Mahbubur Rahman; Sultana, Nasreen; Siddique, Rezaul Karim; Kundu, Subrata Kumar |
| Abstract: | From December 6-10, 2020, USAID organized and IFPRI facilitated five virtual stakeholder consultation workshops on agricultural research and biotechnology, bringing together relevant stakeholders involved in crop and non-crop agriculture from Barishal, Cox’s Bazar, Dhaka, Jashore, and Khulna districts in southern Bangladesh. This format aimed to capture the views and perceptions of a range of relevant actors on the status, opportunities and challenges, and recommendations for improving agricultural research and biotechnology. This report presents the subjective views of participants who are affected by and have a stake in these discussions, from value chain actors who have had challenges cultivating certain varieties and raising certain breeds due to climate-related challenges to researchers who are developing new varieties and breeds accounting for these ground-level challenges. Although the authors have substantiated parts of this report with primary and secondary data sources, the major thrust of this report is to communicate perspectives as they were framed during the workshops. Although stakeholder responses reflect varying knowledge levels of biotechnology among participants, some of which may be convoluted or inaccurate, this report preserves the diversity of stakeholder input as an honest reflection of the opinions received. |
| Keywords: | BANGLADESH; SOUTH ASIA; ASIA; agricultural research; biotechnology; stakeholders; commercialization; agriculture; research; rice; farmers; workshops; value chains; private sector; crops |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:resrep:1243326121&r= |
| By: | Ambler, Kate; Herskowitz, Sylvan; Maredia, Mywish K.; Mockshell, Jonathan |
| Abstract: | This note summarizes perceptions of COVID-19 impacts and risks from a panel phone survey of rural households in eight districts in rural Malawi. While the results from the first round conducted in August 2020 were reported in a previous brief, this note will focus on the evolution of indicators from round 1 to round 2, conducted in November 2020. The sample comprises 833 households interviewed in both survey rounds. Two additional follow-up survey rounds are planned for 2021. The survey was originally designed to measure the seasonality of labor activities but was adjusted to assess COVID-19 impacts and perceptions in rural Malawi. Though initial concern of the impact of COVID-19 on Malawi was high at the start of the global pandemic, case numbers stayed relatively low through the end of 2020. Seven-day averages of 50-100 cases during the first survey round had dropped to under 5 in the fourth quarter of the year. Our analysis will examine how people’s perceptions evolved during this period of low infections. |
| Keywords: | MALAWI; SOUTHERN AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; Coronavirus; coronavirus disease; Coronavirinae; COVID-19; rural areas; risk; economic impact |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:prnote:1243326088&r= |
| By: | Kazuo Mino (Institute of Economic Research, Kyoto University); Hiroaki Sasaki (Graduate School of Economics, Kyoto University) |
| Abstract: | This study explores how population decline affects the long-run performance of an economy in which exhaustible natural resources are indispensable in the process production. Using a one-sector neoclassical growth model with external increasing returns, we inspect the conditions under which the per capita income and consumption persistently expand in the long-run equilibrium. We fi nd that it is population decline, rather than exhaustible resources, that might terminate persistent growth in per capita income and consumption. |
| Keywords: | exhaustible natural resources, population decline, long-run growth, external increasing returns |
| JEL: | O13 O44 Q32 Q43 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:kyo:wpaper:1062&r= |
| By: | Zhang, Xue; Rivas, Marcela Gonzalez; Grant, Mary; Warner, Mildred E. |
| Abstract: | We examine the 500 largest community water systems in the US to explore if ownership is related to annual water bills and the percent of income that low-income households spend on water. Results show that, among the largest water systems, private ownership is related to higher water prices and less affordability for low-income families. In states with regulations favorable to private providers, water utilities charge even higher prices. Affordability issues are more severe in communities with higher poverty and older infrastructure. Water policy needs to address ownership and regulation and explore new mechanisms to ensure water affordability for low-income residents. |
| Date: | 2021–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:7mc4r&r= |
| By: | Nindi, Tabitha |
| Abstract: | Although sustainable intensification (SI) practices such as intercropping of cereals with legumes are believed to offer productivity benefits to farmers, the adoption of cereal-legume intercropping remains low in Malawi. We use dynamic programing to assess the impact of four key constraints that smallholder farmers face. These constraints are i) land, ii) labor, ii) input market access and iv) output market access. We use the model to evaluate farmers’ optimal production plans across six scenarios in which these constraints are relaxed and compare their production plans across these scenarios. The farmer’s decision process given these alternative scenarios is modeled to assess the impact of these constraints on SI adoption decisions. Our model preliminary results suggest that both resource (land and labor) and institutional constraints (access to input and output market) play a key role in influencing smallholder farmers’ SI adoption decisions. The model results help to illustrate how labor constraints, land constraints and limited access to input and output market affect smallholders’ adoption of cereal-legume intercropping in Malawi. |
| Keywords: | MALAWI, SOUTHERN AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, intensification, sustainability, smallholders, farmers, cereals, legumes, dynamic programming, agricultural production, risk, food prices, sustainable intensification, production risk |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:masprn:march2021&r= |
| By: | CGIAR Research Program on Policies, Institutions, and Markets (PIM) |
| Abstract: | What are the drivers and consequences of tenure insecurity? PIM research under Flagship 5 addressed drivers and consequences of tenure insecurity from three angles: women’s rights, individual or household rights, and collective rights (where ownership or long-term use and/or management rights have been recognized or devolved to communities to some extent). Individual and household rights focus on agricultural land; collective rights on forests, rangelands, and water; and women’s rights consider the full range of resources. |
| Keywords: | WORLD, capacity development, governance, natural resources, tenure insecurity, women, gender, tenure security, land rights, households, innovation, policies, multi-stakeholder processes, stakeholders, |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:pimfis:5&r= |
| By: | F. Roussafi (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This article aims to study the regional development of renewable energies (RE) in France over the period 1990–2015. As a first step, Principal Component Analysis was used on the collected data, which led to a classification of RE's development into four sub-periods. The first two sub-periods (1990–1994) and (1995–2003) are characterized by a strong dependence on hydro, thermal, and fossil energies. The third sub-period (2004–2011) shows the development of new RE sources. In the last sub-period (2012–2015), RE's use in transport and heating sectors has grown significantly. In a second step, we carried out a Hierarchical Ascendant Classification (HAC) on each sub-period to highlight the similarities and differences between regions in terms of diversification of the energy mix. The results show that 16 regions followed a similar path over the 1990–2015 period because of an initial favorable condition for sharing RE consumptions. Other regions (Auvergne, Aquitaine, Burgundy, Franche-Comté, Poitou Charentes, and Lorraine) experienced more contrasting trajectories in their RE development. © 2021 The Author |
| Keywords: | Data analysis methods,Regional disparities,Renewable energy consumption |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03225571&r= |
| By: | Rabah Arezki; Markus Brueckner |
| Abstract: | Military expenditure shares significantly affect the relationship between the risk of civil conflict outbreak and natural resources. We show that a significant positive correlation between the risk of civil conflict outbreak and resource rents is limited to countries with low military expenditure shares. In countries with high military expenditure shares there is no significant relationship between the risk of civil conflict outbreak and rents from natural resources. An important message is thus that a conflict resource curse is absent in countries with sufficiently large military expenditure shares. However, there is a trade-off: the larger military expenditure shares, the smaller is the effect that resource rents have on economic growth and democracy. |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2021-50&r= |