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on Environmental Economics |
| By: | Ozili, Peterson K |
| Abstract: | The purpose of this study is to present a sustainable (or green) loan loss provisioning system that align bank loan loss provisioning with the sustainable development goals. The findings of the study are that the proposed sustainable (or green) loan loss provisioning system will align bank loan loss provisioning with the sustainable development goals by adjusting loan loss provisions estimates to reflect the environmental benefits and costs of borrowers’ business activities. Banks will incur additional provisions above normal provisions for loans issued to businesses whose activities are harmful to the environment and the climate. Banks will allocate fewer provisions whenever they issue loans to eco-friendly or green businesses. The implication of the proposed sustainable (or green) loan loss provisioning system is that bank regulators and supervisors need to consider the impact of the sustainable (or green) loan loss provisioning system on bank capital and bank stability. |
| Keywords: | Bank performance, loan loss provisions, sustainability, sustainable development, SDGs, green washing, credit risk, green loan loss provisioning, sustainable loan loss provisioning. |
| JEL: | G21 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115989&r=env |
| By: | Tii N. Nchofoung (Ministry of Trade, Cameroon); Hervé Kaffo Fotio (University of Maroua, Cameroon); Clovis Wendji Miamo (University of Dschang, Cameroon) |
| Abstract: | There is substantial literature on the determinants of renewable energy consumption. This growing interest is related to the fact that renewable energy is not only one of the main drivers of greenhouse gas mitigation but also its contribution to the achievement of other sustainable goals. Despite this strategic role, the adoption level of renewable energy remains quite low. In this article, we address one of the determinants so far ignored by the literature, namely the environmental tax. This study, therefore, examines the effect of environmental taxes on the adoption of renewable technologies for 49 global samples between the 1996-2017 periods. The results through the FE Driscoll and Kraay, the Newey-West, the system GMM, and the quantile regression methodologies show that environmental tax increase the consumption of renewable energy. However, taking into account disparities in the level of development, the results suggest that the environmental tax spurs renewable energy technologies adoption in developed countries while it decreases renewable energy technologies adoption in developing countries. As policy implications, policymakers within this sample should consider the optimization of environmental taxation as a policy toward environmental protection. This would cause energy consumers to opt for renewable energy sources of energy to escape these taxes. |
| Keywords: | Green taxation; renewable energy; panel data; SDG7; environmental protection |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/007&r=env |
| By: | Ara Jo (Department of Economics, University of Bath, 3 East, BA2 7AY, Bath, United Kingdom); Christos Karydas (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland) |
| Abstract: | We develop a dynamic general equilibrium model to quantify the interaction between climate policy, industry dynamics, and the elasticity of substitution between clean and dirty energy in the economy. The model incorporates empirical observations that firms differ substantially in their potential for energy substitution and that the economy is growing more capable of substituting clean for dirty energy over time as environmental regulation becomes more stringent. Our model highlights the effect of dynamic industry response on increasing the average elasticity of substitution in the economy due to the exit of least flexible firms in response to climate policy. The higher average elasticity of substitution increases the effectiveness of the policy at reducing emissions, resulting in a 35 percent decrease in the size of the carbon tax required to achieve carbon neutrality |
| Keywords: | industry dynamics, elasticity of substitution, climate policy |
| JEL: | Q40 Q55 Q54 O33 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:23-378&r=env |
| By: | Mr. James Roaf; Mr. Simon Black; Karlygash Zhunussova; Danielle N Minnett; Ian W.H. Parry |
| Abstract: | There is growing interest in international coordination over climate mitigation policy. Climate clubs or international carbon price floors could complement the Paris Agreement by helping to deliver the near-term cuts in global greenhouse gas emissions needed to contain global warming to 1.5 to 2oC. To ensure inclusivity, these arrangements need to account for varying mitigation policies across countries, including carbon pricing, fuel taxes, subsidy reform, and non-pricing approaches like regulations. A transparent methodology is needed to compare and monitor mitigation effort by countries implementing diverse policy packages. This paper presents and illustrates a methodology for converting climate mitigation policies and targets into their carbon price equivalents and applies it to the Group of Twenty (G20) countries. |
| Keywords: | Emissions reductions; carbon price equivalence; G20; non-pricing instrument; sectoral target; fuel taxes; temperature aligned mitigation.; climate mitigation policy; annex B. policy equivalence; reductions from Policites; policy package; industry emissions target; policy instrument; mitigation approach; emissions impact; BAU emissions projection; emission rate standard; Greenhouse gas emissions; Fuel tax; Climate policy; Global; Africa |
| Date: | 2022–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/254&r=env |
| By: | Jochen M. Schmittmann; Yun Gao |
| Abstract: | We analyze the corporate green bond market under a rational framework without an innate green preference, using a simple adverse selection model. Firms can use green bonds to signal their green credentials to investors. Transition risk stems from uncertainty over the introduction of carbon pricing. We show that green bonds have a price premium over conventional bonds when there are information asymmetry, transition risk, and it is costly to engage in greenwashing, that is, false or exaggerated claims of being green. The extent of greenwashing in the market is a function of the green bond premium. A swift and gradual implementation of carbon pricing generates a small green bond premium and a low level of greenwashing, while delayed and large carbon pricing has an ambiguous effect on both. The model provides a rich set of policy implications, notably the need for swift action on carbon pricing and strong information disclosures and regulations to ensure the integrity of green bonds. |
| Keywords: | green bond pricing; greenwashing; transition risk; carbon pricing; green debt; climate finance; green bond premium; brown firm; green bond; Carbon tax; Bonds; Greenhouse gas emissions; Asia and Pacific; Global |
| Date: | 2022–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/246&r=env |
| By: | Laurent Millischer; Tatiana Evdokimova; Oscar Fernandez |
| Abstract: | Financial markets can support the transition to a low-carbon economy by redirecting funds from highly emissive to clean investments. We study whether European stock markets incorporate carbon prices in company valuations and to what degree they discriminate between firms with different carbon intensities. Using a novel dataset of stock prices and carbon intensities of 338 European publicly traded companies between 2013 and 2021, we find a strongly statistically significant relationship between weekly carbon price changes and stock returns. Crucially, this relationship depends on firms’ carbon intensity: the higher the carbon costs a firm faces, the poorer its stock performance during the periods of carbon price increases. Emissions covered with free allowances however do not affect this relationship, illustrating how both carbon pricing and disclosures are needed for financial markets to foster climate change mitigation. The relationship we identify can provide an incentive for firms to decarbonize. We argue in favor of more ambitious carbon pricing policies, as this would strengthen the stock-market incentive channel while causing only limited financial stability risk for stocks. |
| Keywords: | European Union Emissions Trading Scheme; Carbon price; Stock price valuation; Climate Finance; Climate Change Mitigation; Multifactor Market Model; stock-market incentive channel; firm face; IMF working papers; carbon intensity; Greenhouse gas emissions; Asset prices; Non-wage benefits; Inflation; Europe |
| Date: | 2022–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/231&r=env |
| By: | Anne de Bortoli; Maxime Agez |
| Abstract: | Industries struggle to build robust environmental transition plans as they lack the tools to quantify their ecological responsibility over their value chain. Companies mostly turn to sole greenhouse gas (GHG) emissions reporting or time-intensive Life Cycle Assessment (LCA), while Environmentally-Extended Input-Output (EEIO) analysis is more efficient on a wider scale. We illustrate EEIO analysis usefulness to sketch transition plans on the example of Canada s road industry - estimation of national environmental contributions, most important environmental issues, main potential transition levers of the sector, and metrics prioritization for green purchase plans). To do so, openIO-Canada, a new Canadian EEIO database, coupled with IMPACT World plus v1.30-1.48 characterization method, provides a multicriteria environmental diagnosis of Canada s economy. The road industry generates a limited impact (0.5-1.8 percent) but must reduce the environmental burden from material purchases - mainly concrete and asphalt products - through green purchase plans and eco-design and invest in new machinery powered with cleaner energies such as low-carbon electricity or bioenergies. EEIO analysis also captures impacts often neglected in process-based pavement LCAs - amortization of capital goods, staff consumptions, and services - and shows some substantial impacts advocating for enlarging system boundaries in standard LCA. Yet, pavement construction and maintenance only explain 5 percent of the life cycle carbon footprint of Canada s road network, against 95 percent for the roads usage. Thereby, a carbon-neutral pathway for the road industry must first focus on reducing vehicle consumption and wear through better design and maintenance of roads (...) |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2301.08302&r=env |
| By: | Tii N. Nchofoung (Ministry of Trade, Cameroon); Hervé Kaffo Fotio (University of Maroua, Cameroon); Clovis Wendji Miamo (University of Dschang, Cameroon) |
| Abstract: | There is substantial literature on the determinants of renewable energy consumption. This growing interest is related to the fact that renewable energy is not only one of the main drivers of greenhouse gas mitigation but also its contribution to the achievement of other sustainable goals. Despite this strategic role, the adoption level of renewable energy remains quite low. In this article, we address one of the determinants so far ignored by the literature, namely the environmental tax. This study, therefore, examines the effect of environmental taxes on the adoption of renewable technologies for 49 global samples between the 1996-2017 periods. The results through the FE Driscoll and Kraay, the Newey-West, the system GMM, and the quantile regression methodologies show that environmental tax increase the consumption of renewable energy. However, taking into account disparities in the level of development, the results suggest that the environmental tax spurs renewable energy technologies adoption in developed countries while it decreases renewable energy technologies adoption in developing countries. As policy implications, policymakers within this sample should consider the optimization of environmental taxation as a policy toward environmental protection. This would cause energy consumers to opt for renewable energy sources of energy to escape these taxes. |
| Keywords: | Green taxation; renewable energy; panel data; SDG7; environmental protection |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/007&r=env |
| By: | Matthias Kalkuhl (MCC Berlin, University of Potsdam); Max Franks (PIK Potsdam, TU Berlin); Friedemann Gruner (MCC Berlin, University of Potsdam); Kai Lessmann (PIK Potsdam, MCC Berlin); Ottmar Edenhofer (PIK Potsdam, MCC Berlin, TU Berlin) |
| Abstract: | Carbon dioxide removal from the atmosphere is becoming an important option to achieve net zero climate targets. This paper develops a welfare and public economics perspective on optimal policies for carbon removal and storage in non-permanent sinks like forests, soil, oceans, wood products or chemical products. We derive a new metric for the valuation of non-permanent carbon storage, the social cost of carbon removal (SCC-R), which embeds also the conventional social cost of carbon emissions. We show that the contribution of CDR is to create new carbon sinks that should be used to reduce transition costs, even if the stored carbon is released to the atmosphere eventually. Importantly, CDR does not raise the ambition of optimal temperature levels unless initial atmospheric carbon stocks are excessively high. For high initial atmospheric carbon stocks, CDR allows to reduce the optimal temperature below initial levels. Finally, we characterize three different policy regimes that ensure an optimal deployment of carbon removal: downstream carbon pricing, upstream carbon pricing, and carbon storage pricing. The policy regimes differ in their informational and institutional requirements regarding monitoring, liability and financing. |
| Keywords: | Carbon Dioxide Removal, Carbon Capture, Social Cost of Carbon, Climate Policy, Impermanence |
| JEL: | D61 H23 Q54 Q58 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:62&r=env |
| By: | Pal, Barun Deb; Gurung, Tayan Raj; Pathak, Himanshu |
| Abstract: | The agriculture sector in Bhutan has evolved progressively from subsistence to integrated semi-commercial sector, and encompasses forestry, agriculture, and livestock, collectively termed as Renewable Natural Resources (RNR). Systematic development since the 1960s has helped improve production of crops, livestock, and overall management of natural resources. Agriculture continues to be a major source of employment after five decades of planned development, with a staggering 51 percent of its population in farming, of which 61.7 percent are female (NSB 2019). Bhutan has also successfully maintained 71 percent of its natural forest cover (FRMD 2018), representing extensive carbon sequestration sink and making the country carbon-negative. Bhutan’s “green†approach to development, founded on the philosophy of Gross National Happiness and more particularly its local values, culture, and religious beliefs of coexistence with nature, has helped in maintaining remarkably stable forest cover and clean environment. Forest cover in Bhutan consists predominantly of broad-leaved trees accounting for 50 percent coverage (1.928 million ha), while 20 percent cover is provided by coniferous trees. The estimated forest biomass of about 973 million tonnes serves as a significant terrestrial carbon sink, amounting to 457 million tonnes of carbon (FRMD 2018). The forests of Bhutan show a wide range of ecological variation and species diversity offering wide variety of social and economic benefits, ranging from easily quantifiable economic values associated with forest products to less tangible services and contributions to society, thereby serving as the foundation of sustainable development. This initiative of collaboration resulted into formalization of a Memorandum of Understanding (MoU) between the Ministry of Agriculture and Forests (MoAF) and IFPRI on July 19, 2019, that defines the areas of cooperation between the two institutions. Since the initiation of this MoU in late 2018, MoAF and IFPRI started working on the collaboration which focused on capacity development of MoAF in policy analysis and visioning. This report aims to provide synopsis of MoAF–IFPRI collaborations from 2018 to 2020, highlighting the main output and defining areas of future collaborations. |
| Keywords: | BHUTAN; SOUTH ASIA; ASIA; agriculture; crops; livestock; natural resources; employment; climate change; gender; forestry; biomass; carbon sinks; sustainable development; Renewable Natural Resources (RNR);crop modeling tools |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:fprepo:136433&r=env |
| By: | Glauber, Joseph |
| Abstract: | Recent attention has focused on "repurposing" and redirecting agricultural support programs towards achieving environmental, climate and nutritional outcomes. Under these proposals, typically equivalent levels of subsidies and other forms of government support would be focused on the reducing GHG emissions, environmental externalities and other broader public policy objectives such as improving nutrition. But questions arise as to whether new support programs would necessarily be consistent with WTO disciplines. This paper examines various measures aimed at reducing GHG emissions including imposition of carbon standards and taxes, border measures to reduce slippage, and so-called "Climate Smart" domestic support measures and considers how such measures comport with WTO trade rules. |
| Keywords: | agriculture; climate change; climate change adaptation; greenhouse gas emissions; nutrition; subsidies; WTO; agricultural support programs; carbon border adjustment measures; product standards |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2164&r=env |
| By: | Claire Alestra (Aix-Marseille University, CNRS, AMSE, France); Gilbert Cette (NEOMA Business School, France); Valérie Chouard (Banque de France, France); Rémy Lecat (Banque de France, France) |
| Abstract: | This paper highlights how technology can contribute to reaching the COP21 goals of net zero CO 2 emissions and global warming below 2°C at the end of the century. It uses the ACCL model, particularly adapted to quantify the consequences of energy price shocks and technology improvements on CO 2 emissions, temperature changes, climate damage and GDP. Our simulations show that without climate policies, i.e. a 'business as usual' scenario, the warming may be +4 to +5°C in 2100, with considerable climate damage. We also find that an acceleration in 'usual technical progress'-not targeted at reducing greenhouse gas intensity-makes global warming and climate damage worse than the 'business as usual' scenario. According to our estimates, the world does not achieve climate goals in 2100 without technological changes to avoid CO 2 emissions. To hit such climatic targets, intervening only through the relative price of different energy types, e.g. via a carbon tax, requires challenging hypotheses of international coordination and price increase for polluting energies. We assess a multi-lever climate strategy, associating diverse price and technology measures. This mix combines energy efficiency gains, carbon sequestration, and a decrease of 3% per year in the relative price of non-carbon-emitting electricity with a 1 to 1.5% annual rise in the relative price of our four polluting energy sources. None of these components alone is sufficient to reach climate objectives. Our last and most important finding is that our composite scenario achieves the climate goals. |
| Keywords: | climate, global warming, Technology, Environmental policy, growth, long-term projections, Uncertainties, Renewable energy |
| JEL: | H23 Q54 E23 E37 O11 O47 O57 Q43 Q48 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:2301&r=env |
| By: | Hege, Ulrich; Pouget, Sébastien; Zhang, Yifei |
| Abstract: | We study the impact of climate-related patents on financial markets. We exploit the quasi-random assignment of patent examiners with different degrees of leniency as an exogenous shock in patent approvals to allow for causal interpretations. We find that firms with more lucky climate-related patents subsequently display higher positive cumulative abnormal stock returns and enjoy a lower cost of capital, compared with similarly innovative but unlucky firms. These results hold especially during periods of high attention towards climate change and for initial climate patent granting. Firms with more lucky climate-related patents also exhibit better environmental ratings and attract more responsible institutional investors. OLS regressions show that firms developing more climate-related technologies reduce more direct carbon emission intensity. |
| Keywords: | climate-related patents; green patents; examiner leniency; climate change; implied cost of capital; ESG ratings; responsible investors; CO2 emissions. |
| JEL: | G11 G23 G24 O34 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:127752&r=env |
| By: | Lee, Sangwon (Korea Institute for Industrial Economics and Trade) |
| Abstract: | The concept of a just transition, which was based on the labor movement, has evolved and spread to other areas and fields, from climate justice organizations to international organizations and the private sector. As dealing with global climate change has become a priority, the meaning of the phrase has evolved to be used in policy tools that seek to minimize the burden and damage to vulnerable industries, workers, regions and classes from a low-carbon transition. Recently, Korea has also declared its intent to become carbon neutral by 2050, and awareness of the just transition has grown alongside that of a green industrial transition. However, Korea’s strategies are still in its early stages, so efforts are being made for more discussions and concrete policies for a just industrial transition. This paper examines just transition strategies and policies across the world and proposes a set of policies that may help ensure a just transition for all stakeholders. |
| Keywords: | climate change; carbon emissions; industrial structure; just transition; renewable energy; environmental policy; industrial policy; net-zero; net-zero emissions; carbon neutrality; carbon neutrality policy; carbon policy; Korea |
| JEL: | P18 Q43 Q56 |
| Date: | 2022–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieter:2022_017&r=env |
| By: | Lee, Sul-Ki (Korea Institute for Industrial Economics and Trade) |
| Abstract: | Manufacturing and other carbon-intensive sectors account for a large proportion of the Korean economy, and so transitioning into a low-carbon society will necessitate a soft landing; efforts to cut greenhouse gas emissions must not impair the ability of economic growth to produce qualitative improvements in quality of life. In this context, it is essential for Korea to comprehensively examine the impact of the EU CBAM on Korea’s manufacturing industry and develop countermeasures. This paper examines domestic and foreign policy trends with regards to EU carbon border adjustment, and conceptually summarizes various pathways through which the EU carbon border adjustment may affect Korea’s economy. |
| Keywords: | carbon border adjustment mechanism; CBAM; greenhouse gas emissions; GHG emissions; GHGs; steel; manufacturing; Korea; manufacturing competitiveness; environmental policy; environmental regulation; carbon emissions; emissions policy; carbon policy; EU; European Union |
| JEL: | P18 Q48 Q54 |
| Date: | 2022–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieter:2022_016&r=env |
| By: | Claire Alestra (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Gilbert Cette (NEOMA - Neoma Business School); Valérie Chouard (Centre de recherche de la Banque de France - Banque de France); Rémy Lecat (Centre de recherche de la Banque de France - Banque de France) |
| Abstract: | This paper highlights how technology can contribute to reaching the COP21 goals of net zero CO2 emissions and global warming below 2°C at the end of the century. It uses the ACCL model, particularly adapted to quantify the consequences of energy price shocks and technology improvements on CO2 emissions, temperature changes, climate damage and GDP. Our simulations show that without climate policies, i.e. a 'business as usual' scenario, the warming may be +4 to +5°C in 2100, with considerable climate damage. We also find that an acceleration in 'usual technical progress'-not targeted at reducing greenhouse gas intensity-makes global warming and climate damage worse than the 'business as usual' scenario. According to our estimates, the world does not achieve climate goals in 2100 without technological changes to avoid CO2 emissions. To hit such climatic targets, intervening only through the relative price of different energy types, e.g. via a carbon tax, requires challenging hypotheses of international coordination and price increase for polluting energies. We assess a multilever climate strategy, associating diverse price and technology measures. This mix combines energy efficiency gains, carbon sequestration, and a decrease of 3% per year in the relative price of noncarbon-emitting electricity with a 1 to 1.5% annual rise in the relative price of our four polluting energy sources. None of these components alone is sufficient to reach climate objectives. Our last and most important finding is that our composite scenario achieves the climate goals. |
| Keywords: | Climate, Global warming, Technology, Environmental policy, Growth, Long-term projections, Uncertainties, Renewable energy |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03924629&r=env |
| By: | Vincent Chatellier (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Cécile Détang-Dessendre (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Pierre P. Dupraz (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Hervé Guyomard (SDAR Bretagne Normandie - Services déconcentrés d'appui à la recherche Bretagne-Normandie - INRA - Institut National de la Recherche Agronomique) |
| Abstract: | The future CAP displays a greater climate and environmental ambition sought notably through the new first-pillar instrument of the eco-scheme. This article analyses the access conditions of farmers to the French eco-scheme through the so-called environmental certification way. Our results highlight the low level of climate and environmental ambition of this access way since almost all farms would have access to the first level and more than a third to the upper level without any change in their current practices. |
| Abstract: | La future PAC affiche une plus grande ambition climatique et environnementale recherchée via notamment le nouvel instrument de l'éco-régime du premier pilier. Cet article analyse les conditions d'accès des agriculteurs à l'éco-régime français par la voie dite de la certification environnementale. Nos résultats mettent en lumière le faible niveau d'ambition climatique et environnementale de la voie puisque la quasi-totalité des exploitations auraient accès au premier niveau, et plus d'un tiers au niveau supérieur, sans aucune modification de leurs pratiques actuelles. |
| Keywords: | Common Agricultural Policy CAP, National Strategic Plans NSP, Eco-scheme, High Environmental Value, French FADN, Politique Agricole Commune PAC, Plan Stratégique National PSN, Éco-régime, Haute Valeur Environnementale, RICA français |
| Date: | 2022–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03937993&r=env |
| By: | Böning, Justus; Di Nino, Virginia; Folger, Till |
| Abstract: | The EU is revising its emissions trading system (ETS) and plans to impose a carbon border adjustment mechanism (CBAM) on imports. We evaluate the efficacy of the ETS retrospectively and its anti-competitive effects. We find that the ETS contributed to cut greenhouse gas (GHG) emissions in the EU by 2-2.5 percentage points per year; pricier emissions and more stringent caps accelerated the EU greening process. However, some carbon leakages occurred as declining emissions in regulated industries within the EU were counterbalanced by an intensification elsewhere. Moreover, it burdened companies in regulated industries. For a comparable rise in the emission intensity of production, gross output of companies located in the EU drops more than output of companies outside the EU. In addition, the choice of purchasing high-emission inputs from within the EU translates into a competitive disadvantage for companies located within the EU. The large drop in F-type output when emissions intensity rises might signal their enhanced ability to relocate the production of high-carbon footprints intermediates to non-regulated regions. Outsourcing helps dodging the EU green regulation and the strategy becomes increasingly appealing as the sectoral coverage of the ETS is extended. A careful joint design of the CBAM and the ETS becomes thus crucial to avoid that applying the CBAM to a restricted list of imports while expanding the ETS coverage puts the EU at greater risk of carbon leakages without concretely reducing global emissions. JEL Classification: Q52, Q58 |
| Keywords: | Carbon leakages, CBAM, ETS, GHG emissions |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232764&r=env |
| By: | Evdokia Moïsé; Stela Rubínová |
| Abstract: | Affordable and sustainable lithium-ion batteries are key to the development of electric vehicles markets and to the green energy transition. Circular economy solutions for end-of-life batteries can help address primary inputs disruptions, while reducing environmental costs associated with the mining of these inputs or with battery production. Circular value chains would also help address waste and disposal problems as Li-ion batteries reach end of life. These chains are in their infancy, as complex battery designs, material chemistries and insufficient waste stocks hamper their viability, but the projected growth should support profitability. International trade in Li-ion batteries waste will remain essential in markets where domestic waste streams are insufficient to achieve the scale necessary for economically viable recycling, or where inadequate infrastructure imposes reliance on recycling capacities abroad. Promoting circular value chains for Li-ion batteries would require greater clarity on the status of these batteries as waste, consistency of transport and storage safety regulations, trade facilitation and harmonisation of standards for battery design, and regulatory targets for waste collection and recycling rates, coupled with stewardship and take-back schemes. |
| Keywords: | Critical raw materials, Electric vehicles, Green transition, Hazardous waste |
| JEL: | F18 F53 F68 K32 O34 Q38 Q53 Q56 |
| Date: | 2023–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaaa:2023/01-en&r=env |
| By: | Andres, Pia-Katharina |
| Abstract: | Countries around the world increase the downstream cost of low carbon technologies using anti-dumping duties and local content requirements, while simultaneously blaming inadequate efforts to address climate change on the economic cost of doing so. This paper presents a 2-country, 2-period strategic model of trade in a clean technology in the presence of differential country-level production costs and imperfect competition. If the difference in production cost is large enough and learning-by-doing allows the laggard country to catch up, then in the absence of production subsidies remaining in autarky during Stage 1 of the game can be welfare-improving for both countries. This result is strengthened when both countries use consumer subsidies. When countries choose their policy mixes, the Nash Equilibrium involves both trade and production subsidies on the part of the laggard country. The analysis suggests that an environmental trade agreement is most likely to be beneficial if production subsidies for clean technology are explicitly permitted. |
| JEL: | R14 J01 J1 |
| Date: | 2023–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117899&r=env |
| By: | Andres, Pia-Katharina |
| Abstract: | Countries around the world increase the downstream cost of low carbon technologies using anti-dumping duties and local content requirements, while simultaneously blaming inadequate efforts to address climate change on the economic cost of doing so. This paper presents a 2-country, 2-period strategic model of trade in a clean technology in the presence of differential country-level production costs and imperfect competition. If the difference in production cost is large enough and learning-by-doing allows the laggard country to catch up, then in the absence of production subsidies remaining in autarky during Stage 1 of the game can be welfare-improving for both countries. This result is strengthened when both countries use consumer subsidies. When countries choose their policy mixes, the Nash Equilibrium involves both trade and production subsidies on the part of the laggard country. The analysis suggests that an environmental trade agreement is most likely to be beneficial if production subsidies for clean technology are explicitly permitted. |
| JEL: | R14 J01 J1 |
| Date: | 2023–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117900&r=env |
| By: | Swisa Ariyapruchya; Ulrich Volz |
| Abstract: | This chapter provides an overview of the state of sustainable finance activities and practices in Southeast Asia. It first reviews the emerging landscape of sustainable financial governance and policy efforts for scaling up funding for investments with green and social impacts across the ten member countries of the Association of Southeast Asian Nations (ASEAN). It subsequently tracks the development of sustainable finance practices in banking and capital markets in the region. The chapter also examines the challenges in scaling up sustainable finance and investment and discusses opportunities and actions that could be seized by ASEAN countries individually and collectively. |
| Keywords: | Development; Financial Market and Asset Pricing; Environmental and Ecological Economics |
| JEL: | G18 Q01 Q58 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:pui:dpaper:197&r=env |
| By: | Yoo, Yiseon (Korea Institute for Industrial Economics and Trade); Lee, Jaeyoon (Korea Institute for Industrial Economics and Trade) |
| Abstract: | As social interest in particulate matter (PM) increases, various abatement policies are being discussed and implemented. However, such a policy could lead to economic burdens for industries that emit large amounts of PM. For example, if we aim to limit PM emissions from industrial production processes, cutting production or installing abatement devices incurs costs. Of course in the long run it may be possible to comply with regulations without additional costs through the development of new technologies. However, assuming that firms are currently producing at an optimal level, additional regulations increase costs in the short run. In industries already subject to environmental regulations, including an emissions trading system (ETS) for achieving national greenhouse gas reduction targets, stringent regulations on PM emissions could be an additional burden. The sources of domestic PM emissions can be categorized into four sectors: power generation, industry, transportation, and households. The emissions from the industrial sector accounts for about 40 percent of total domestic emissions. Therefore the role of industry is most important in curbing PM emissions. Despite this, there is a lack of both academic and policy research discussing issues regarding industrial PM emissions. This study investigates the current state of PM emissions in manufacturing industries and corporate perceptions of government regulations on PM emissions, and further estimates the macroeconomic effect of relevant policies. The results and implications of this study are expected to contribute to improving the efficiency of PM abatement policies. |
| Keywords: | PM emissions; fine dust; environmental regulations |
| JEL: | Q51 Q53 Q58 |
| Date: | 2023–01–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieter:2019_022&r=env |
| By: | Canova, Luciano; Paladino, Giovanna |
| Abstract: | Since 2018 the awareness of sustainability issues and climate change has increased significantly, especially among the younger generation. The COVID-19 pandemic and the related shutdown of many economic activities contributed to raising concerns about the conservation of biodiversity, the environment, and personal economic well-being. In this study, we examine how members of Generation Z deal with issues related to environmental sustainability and personal money management. By using the technique of the principal component analysis, two synthetic indexes were computed from a set of variables associated with the answers to a questionnaire that investigates the approach to environmental and economic sustainability by a representative sample of 400 Italian youngsters aged between 13 and 18 years. The GREEN INDEX is the result of the aggregation of environmental practices while the MONEY INDEX represents habits in personal money management. They are used as dependent variables of linear, ordered probit, and bivariate probit regressions to detect how socio-demographic factors and personality characteristics are associated with sustainability awareness. Our results show the overall importance of character traits - such as curiosity and scrupulousness - in improving the level of awareness and the strong statistical association between attention to money management and a sense of responsibility toward the environment. This finding hints that working on one dimension may produce a positive spillover effect on the other, setting in motion a virtuous circle for policy implementation. |
| Keywords: | Sustainability, Environment, Financial Education, Gen Z |
| JEL: | D14 Q54 |
| Date: | 2023–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115960&r=env |
| By: | Pedro Juarros; Emilio William Fernandez Corugedo; Hee Soo Kim; Carlos Chaverri |
| Abstract: | Central America is one of the world’s most vulnerable regions to extreme climate events. The literature estimates the macroeconomic effects of climate events mainly using annual data, which might underestimate the true effects as these extreme events tend to be short-lived and generate government and family support in response. To overcome this limitation, this paper studies Central American countries’ macroeconomic impact of climatic disasters using high-frequency (monthly) data over the period 2000-2019. We identify extreme climate events by defining dummy variables related to storm and flood events reported in the EM-DAT (Emergency Events Database) and estimate country-specific VAR and panel VAR. The results suggest that a climatic disaster drops monthly economic activity in most countries in the region of around 0.5 to 1 percentage points on impact, with persistent effects on the level of GDP. We show that even as extreme climate events were relatively less severe under our sample period, quantitative effects are similar or larger than previously estimated for the region. In addition, remittances (transfers from family living abroad) increase for most countries in response to a extreme climate event, acting as a shock absorber. The results are robust to controlling for the severity of the climate events, for which we construct a monthly climate index measuring severity of weather indicators by following the spirit of the Actuaries Climate Index (ACI). |
| Keywords: | Climatic disasters; high frequency; CAPDR; VAR; climate event; macro impact; panel VAR; frequency investigation; climate index; Natural disasters; Remittances; Climate change; Vector autoregression; Central America |
| Date: | 2022–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/237&r=env |
| By: | Tobias Riepl; Zuzana Zavarská (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | The European Green Deal, which aims to steer the EU towards climate neutrality, has traditionally been met with a degree of reluctance by the Visegrád countries. The convergence to green targets represents a particular challenge for these economies, given their fossil fuel-intensive industrial orientation and the high labour market exposure of certain regions to coal mining. In reality, progress with the green transition in the region has been mixed. The expansion of renewables has been scaled up in Slovakia and partially in Poland, but has been stagnating in Czechia and even decreasing in Hungary. In the building sector, states’ retrofitting schemes are working well in terms of bringing down energy consumption in housing, despite the limited adoption of innovative heating techniques. In transport, the region focuses almost excessively on highly contested biofuels, whereas the use of green electricity for road transportation and rail systems remains negligible. Still, the Visegrád group has accomplished a remarkable catch-up in enhancing its energy efficiency in recent years, albeit still belonging to the most CO2-intensive regions in Europe. There are numerous obstacles to the green transition in the region, including lower starting points creating path-dependencies, lesser (albeit growing) social recognition of the climate crisis, and the fear of social fallout due to high employment in the coal and automobile sectors. At the same time, the Russian aggression against Ukraine has revealed the vulnerabilities of fossil fuel dependency, and as a result has broadened the pro-green-transition coalition. While it remains to be seen whether this momentum will turn into action, green pioneers such as Austria can take on a more active role by cooperating with and supporting the Visegrád countries in reaching their climate targets. This includes deepening cooperation on green electricity projects, strengthening basic research through cross-country consortia, or incentivising investment in the building and transportation sector, in which Austrian firms are well-positioned. |
| Keywords: | Visegrád countries, European Green Deal, green transition, renewable energy |
| JEL: | O13 Q58 Q42 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:wii:pnotes:pn:64&r=env |
| By: | Holland, Charlotte; Dagher, Leila; Mansouri, Noura; Bennett, Dinah; Ni, Huan |
| Abstract: | We are living in a dynamic and changing world, one that requires youth and young people to be critically informed and prepared to respond ethically and speedily to real-world, complex sustainability challenges. Youth-led initiatives on climate change and sustainability are gaining momentum and have firmly positioned the issue of sustainable development at the core of political agendas at local, national and global levels. Through its first two recommendations, this policy brief proposal seeks to increase youth voice and agency at local and national levels, and in doing so, empower and support youth-led transformative actions for climate change and sustainable development. The third policy recommendation aims to progress youth education for sustainable development and to enhance intergenerational equity, through the (re-)formation of national policies and strategies to accelerate the integration of ICT-enabled education for climate change and sustainable development across the G20 partnership. |
| Keywords: | sustainable development; youth empowerment; SDG; ESD for 2030 |
| JEL: | I2 O19 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116071&r=env |
| By: | Gregor Schwerhoff; Jean Chateau; Ms. Florence Jaumotte |
| Abstract: | We use a global computable general equilibrium model to compare the economic performance of alternative climate policies along multiple dimensions, including macroeconomic outcomes, energy prices, and trade competitiveness. Carbon pricing which keeps the aggregate cost lower and preserves better the overall competitiveness than across-the-board regulation is the first-best policy, especially in energy intensive and trade exposed industries. Regulations and feebates are good alternatives in the power sector, where technological substitution is possible. Feed-in subsidies, if used alone, are not cost effective. |
| Keywords: | Climate policy; policy coordination; carbon leakage; carbon tax; regulation.; climate policy option; Policy stringency; EITE sectors scenario; ambition level; Policy instrument; Greenhouse gas emissions; Non-renewable resources; Global |
| Date: | 2022–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/242&r=env |
| By: | Mr. Vimal V Thakoor; Engin Kara |
| Abstract: | Climate and demographic changes are two major long-term trends that are evolving simultaneously. The global population is aging, while climate change is increasing the frequency and severity of weather-related disasters and lowering productivity. This paper examines the macroeconomic effects of these three changes in a common framework. Simulation results suggest that while aging drags down the real interest rate, climate change puts upward pressure on the real interest rate and inflation. As climate change intensifies, it will be the dominant factor shaping the macroeconomic variables. This results in higher inflation and a higher debt-to-GDP ratio, requiring tighter fiscal and monetary policies. The results further suggest that economic uncertainty induced by climate change amplifies these effects of climate change. |
| Keywords: | Demographic change; climate change; natural disasters; simulation result; results summary; disaster shock; effects of climate change; consumption share; Consumption; Aging; Real interest rates; Global |
| Date: | 2022–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/258&r=env |
| By: | Marion Leroutier (SSE - Stockholm School of Economics); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Objectives: Energy transition scenarios are prospective outlooks describing combinations of changes in socio-economic systems that are compatible with climate targets. These changes could have important health co-benefits. We aimed to quantify the health benefits of physical activity caused by active transportation on all-cause mortality in the French negaWatt scenario over the 2021–2050 period. Methods; Relying on a health impact assessment framework, we quantified the health benefits of increased walking, cycling and E-biking projected in the negaWatt scenario. The negaWatt scenario assumes increases of walking and cycling volumes of +11% and +612%, respectively, over the study period. Results: As compared to a scenario with no increase in volume of active travel, we quantified that the negaWatt scenario would prevent 9, 797 annual premature deaths in 2045 and translate into a 3-month increase in life expectancy in the general population. These health gains would generate €34 billion of economic benefits from 2045 onwards. Conclusion: Increased physical activity implied in the negaWatt transition scenario would generate substantial public health benefits, which are comparable to the gain expected by large scale health prevention interventions. |
| Keywords: | Transport externalities, Environmental inequalities, LMDI |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03921086&r=env |
| By: | Mark Budolfson (Department of Philosophy, Rutgers University); Francis Dennig (Yale-NUS College); Frank Errickson (Princeton's Woodrow Wilson School of Public and International Affairs - Princeton University); Simon Feindt (MCC - Mercator Research Institute on Global Commons and Climate Change - PIK - Potsdam Institute for Climate Impact Research); Maddalena Ferranna (Harvard School of Public Health); Marc Fleurbaey (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - 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); David Klenert (JRC - European Commission - Joint Research Centre [Seville]); Ulrike Kornek (Kiel University); Kevin Kuruc (OU - University of Oklahoma); Aurélie Méjean (CNRS - Centre National de la Recherche Scientifique); Wei Peng (Penn State - Pennsylvania State University - Penn State System); Noah Scovronick (Emory University [Atlanta, GA]); Dean Spears (University of Texas at Austin [Austin]); Fabian Wagner (IIASA - International Institute for Applied Systems Analysis [Laxenburg]); Stéphane Zuber (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - 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, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Existing estimates of optimal climate policy ignore the possibility that carbon tax revenues could be used in a progressive way; model results therefore typically imply that near-term climate action comes at some cost to the poor. Using the Nested Inequalities Climate Economy (NICE) model, we show that an equal per capita refund of carbon tax revenues implies that achieving a 2 °C target can pay large and immediate dividends for improving well-being, reducing inequality and alleviating poverty. In an optimal policy calculation that weighs the benefits against the costs of mitigation, the recommended policy is characterized by aggressive near-term climate action followed by a slower climb towards full decarbonization; this pattern—which is driven by a carbon revenue Laffer curve—prevents runaway warming while also preserving tax revenues for redistribution. Accounting for these dynamics corrects a long-standing bias against strong immediate climate action in the optimal policy literature. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-03462773&r=env |
| By: | Hélène Benveniste (Harvard University [Cambridge]); Michael Oppenheimer (Princeton University); Marc Fleurbaey (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - 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, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - 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) |
| Abstract: | Migration is a widely used adaptation strategy to climate change impacts. Yet resource constraints caused by such impacts may limit the ability to migrate, thereby leading to immobility. Here we provide a quantitative, global analysis of reduced international mobility due to resource deprivation caused by climate change. We incorporate both migration dynamics and within-region income distributions in an integrated assessment model. We show that climate change induces decreases in emigration of lowest-income levels by over 10% in 2100 for medium development and climate scenarios compared with no climate change and by up to 35% for more pessimistic scenarios including catastrophic damages. This effect would leave resource-constrained populations extremely vulnerable to both subsequent climate change impacts and increased poverty. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03907684&r=env |
| By: | - |
| Abstract: | In a regional and international context of weak growth, high inflation and growing inequality, the countries of Latin America and the Caribbean must focus policies on reactivating, rebuilding and transforming economic and production systems to advance towards low-carbon and high-tech economies that address climate change and reduce their historical gaps, structural heterogeneity and dualism. This document considers the complex conditions that pose significant challenges to accelerating growth, tackling high inflation and the cost-of-living crisis, maintaining transfers to the most vulnerable households, mitigating the social costs of the crisis and boosting investment. Its chapters analyse the dynamics of globalization and the policy challenges in changing the production structure and moving towards sustainable development. In addition, they consider strategies for reducing inequality and creating universal protection systems and decent jobs in a challenging world. Nine strategic sectors expected to drive a big push for sustainability are examined through the prism of green growth. The document concludes with policy recommendations for advancing towards a renewed model for inclusive and sustainable growth. |
| Keywords: | DESARROLLO ECONOMICO, MODELOS DE DESARROLLO, GLOBALIZACION, MEDIO AMBIENTE, CAMBIO CLIMATICO, CAMBIO TECNOLOGICO, TECNOLOGIA DIGITAL, PRODUCTIVIDAD, DESARROLLO SOSTENIBLE, POLITICA INDUSTRIAL, EMPLEO, POLITICA SOCIAL, IGUALDAD, GASTOS PUBLICOS, POLITICA ENERGETICA, TRANSPORTE, ECONOMIA VERDE, SALUD, BIENESTAR SOCIAL, CUIDADORES, TURISMO, PEQUEÑAS Y MEDIANAS EMPRESAS, POLITICA DE DESARROLLO, POLITICA ECONOMICA, INTEGRACION ECONOMICA, ECONOMIC DEVELOPMENT, DEVELOPMENT MODELS, GLOBALIZATION, ENVIRONMENT, CLIMATE CHANGE, TECHNOLOGICAL CHANGE, DIGITAL TECHNOLOGY, PRODUCTIVITY, SUSTAINABLE DEVELOPMENT, INDUSTRIAL POLICY, EMPLOYMENT, SOCIAL POLICY, EQUALITY, PUBLIC EXPENDITURES, ENERGY POLICY, TRANSPORT, GREEN ECONOMY, HEALTH, SOCIAL WELFARE, CAREGIVERS, TOURISM, SMALL AND MEDIUM ENTERPRISES, DEVELOPMENT POLICY, ECONOMIC POLICY, ECONOMIC INTEGRATION |
| Date: | 2022–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:c39025:48309&r=env |
| By: | Marc Germain (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In response to the unsustainable nature of current brown growth, the concept of green growth, supposedly compatible with the environment, has been proposed. However, a literature has developed around the unfeasibility of green growth and this article aims to contribute to it on the basis of a reasoning combining (i) the concept of creative destruction; (ii) the distinction between environmental limits, physical limits in the (very) long term and technological limits in the short-medium term; (iii) the description of the possible consequences of the limits on the trajectory of the economy The combination of environmental and physical limits means that indefinite growth (even green growth) in a finite world is impossible. In the long term, the economy can at best tend towards a stationary state. In the medium term, because of an impact effect (due to pollution) and a crowding-out effect (which diverts labor and capital from the production of goods and services), technological limits are likely not only to slow down growth but also to bring the economy into decline (at least transitorily). If innovations (including environmental ones) continually allow technological limits to be pushed back (with diminishing returns due to physical limits), they ultimately exacerbate the contradictions between growth and environmental limits. Far from being the solution, innovations are also the source of the problems because they are at the heart of the creative destruction at the basis of growth. Given the technological limits and the urgency induced by the fact that a number of environmental limits have already been exceeded at the global level, it is problematic, to say the least, to aspire to a transition from the current brown growth to a green growth in the coming decades. To replace brown growth, the alternative is not between green growth and degrowth, but between undergone degrowth and voluntary degrowth. |
| Abstract: | En réponse au caractère insoutenable de la croissance brune actuelle a été proposé le concept de croissance verte, supposée compatible avec l'environnement. Une littérature s'est cependant développée autour de l'infaisabilité de la croissance verte et cet article a pour but d'y contribuer sur la base d'un raisonnement combinant (i) le concept de destruction créatrice ; (ii) la distinction entre limites environnementales, limites physiques à (très) long terme et limites technologiques à court-moyen terme ; (iii) la description des possibles conséquences des limites sur la trajectoire de l'économie. La combinaison des limites environnementales et physiques impose qu'une croissance (même verte) indéfinie dans un monde fini est impossible. A long terme, l'économie peut au mieux tendre vers un état stationnaire. A moyen terme, à cause d'un effet d'impact (dû aux pollutions) et d'un effet d'éviction (qui détourne le travail et le capital de la production de biens et services), les limites technologiques sont susceptibles non seulement de ralentir la croissance mais aussi d'amener l'économie en décroissance (au moins transitoirement). Si les innovations (y compris environnementales) permettent continuellement de repousser les limites technologiques (avec des rendements décroissants à cause des limites physiques), elles exacerbent au final les contradictions entre croissance et limites environnementales. Loin de seulement constituer la solution, les innovations sont aussi la source des problèmes parce qu'elles sont inscrites au coeur de la destruction créatrice à la base de la croissance. Etant donné les limites technologiques et l'urgence induite par le fait que nombre de limites environnementales sont déjà dépassées au niveau mondial, ambitionner dans les prochaines décennies une transition de l'actuelle croissance brune vers une croissance verte est pour le moins problématique. Pour remplacer la croissance brune, l'alternative n'est pas entre croissance verte et décroissance, mais entre décroissance subie et décroissance choisie. |
| Keywords: | croissance verte, destruction créatrice, progrès technique, recyclage, limites à la croissance. |
| Date: | 2022–12–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03913177&r=env |
| By: | - |
| Abstract: | En un contexto regional e internacional de bajo crecimiento, alta inflación y creciente desigualdad, los países de América Latina y el Caribe necesitan enfocar sus políticas no solo hacia la reactivación de los sistemas económicos y productivos, sino también hacia su reconstrucción y transformación para avanzar hacia economías con bajas emisiones de carbono y alto contenido tecnológico que permitan enfrentar el cambio climático y reducir las brechas, heterogeneidades estructurales y dualismos históricos que los caracterizan. Este documento se enmarca en ese complejo contexto con amplios desafíos para acelerar el crecimiento, enfrentar la aceleración inflacionaria y la crisis del costo de vida, mantener las transferencias hacia los hogares más vulnerables y mitigar los costos sociales de la crisis y dinamizar la inversión. Con esta mirada, en sus capítulos se analizan la dinámica de la globalización y los desafíos de política para cambiar la estructura productiva y avanzar hacia un desarrollo sostenible. También se consideran las estrategias para reducir la desigualdad y avanzar hacia sistemas de protección universales y el empleo decente en un mundo en transformación. Desde una perspectiva de crecimiento verde se examinan nueve sectores estratégicos que deberían generar un gran impulso para la sostenibilidad. El documento concluye con recomendaciones de política. |
| Keywords: | DESARROLLO ECONOMICO, MODELOS DE DESARROLLO, GLOBALIZACION, MEDIO AMBIENTE, CAMBIO CLIMATICO, CAMBIO TECNOLOGICO, TECNOLOGIA DIGITAL, PRODUCTIVIDAD, DESARROLLO SOSTENIBLE, POLITICA INDUSTRIAL, EMPLEO, POLITICA SOCIAL, IGUALDAD, GASTOS PUBLICOS, POLITICA ENERGETICA, TRANSPORTE, ECONOMIA VERDE, SALUD, BIENESTAR SOCIAL, CUIDADORES, TURISMO, PEQUEÑAS Y MEDIANAS EMPRESAS, POLITICA DE DESARROLLO, POLITICA ECONOMICA, INTEGRACION ECONOMICA, ECONOMIC DEVELOPMENT, DEVELOPMENT MODELS, GLOBALIZATION, ENVIRONMENT, CLIMATE CHANGE, TECHNOLOGICAL CHANGE, DIGITAL TECHNOLOGY, PRODUCTIVITY, SUSTAINABLE DEVELOPMENT, INDUSTRIAL POLICY, EMPLOYMENT, SOCIAL POLICY, EQUALITY, PUBLIC EXPENDITURES, ENERGY POLICY, TRANSPORT, GREEN ECONOMY, HEALTH, SOCIAL WELFARE, CAREGIVERS, TOURISM, SMALL AND MEDIUM ENTERPRISES, DEVELOPMENT POLICY, ECONOMIC POLICY, ECONOMIC INTEGRATION |
| Date: | 2022–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:c39025:48308&r=env |
| By: | Vierth, Inge (Swedish National Road & Transport Research Institute (VTI)); Ek, Karin (Swedish National Road & Transport Research Institute (VTI)); From, Emma (Swedish National Road & Transport Research Institute (VTI)); Lind, Joar (Swedish National Road & Transport Research Institute (VTI)) |
| Abstract: | The purpose of the paper is to analyze the cost impacts of policy instruments that are part of the European Commission’s climate policy package "Fit for 55". A disaggregated approach for the cargo ships calling at Swedish ports is applied to study the effects of different designs of the extension of the Emissions Trading System (EU ETS) to shipping and the changed Energy Tax Directive (ETD), which implies the introduction of taxes for marine fuel. Three scenarios are compared to the actual situation: the Main scenario is based on the European Commission’s proposal that ships with at least 5, 000 gross tonnage (GT) must be included in the EU ETS and that taxes for marine fuels are introduced, the Low scenario assumes no fuel taxes and the High scenario that ships with at least 400 GT must be included in the EU ETS. A major conclusion is that cargo ships calling at Swedish ports with at least 5, 000 GT account for 56 % of all cargo ships and for 78 % of all CO2 emissions from these ships, which implies that a significant part of the CO2 emissions is missed when the European Commission’s proposal regarding the inclusion of shipping in the EU ETS is applied. The share of missed CO2 emissions could further increase if ships smaller than 5, 000 GT are chosen to avoid the EU ETS. Calculations with the Swedish national freight transport model Samgods confirm that firms have incentives to shift to ships smaller than 5, 000 GT in the Main scenario while they have incentives to shift to ships larger than 5, 000 GT in the High scenario. A recommendation is therefore that smaller ships than 5, 000 GT should also be included in the EU ETS, and if this cannot be done immediately, the EU should clearly plan for ships with less than 5, 000 GT to also be included in the long term and signal this to the market. This would reduce the incentives for the market to make socioeconomically undesirable adjustments to avoid paying for emissions. The fuel cost increases due to the implementation of the policy instruments are estimated per ship and aggregated to nine ship segments. In the Main scenario, the fuel cost increases due to the inclusion of shipping in the EU ETS are in the range of 11-42 % within the European Economic Area (EEA) and in the range of 5-21 % for transports to/from the EEA. In the High scenario, the costs in all segments are roughly 40 % within the EEA and 21% for the sea transports to/from the EEA. The introduction of fuel taxes is estimated to increase the fuel costs for all ships operating within the EEA by about 6 %. Calculations with the Samgods model indicate that the estimated higher fuel costs for shipping have limited impacts on the firms’ choices of mode and port and their total logistics costs. |
| Keywords: | Climate policy; Policy design; Impact analysis; Shipping |
| JEL: | Q58 R48 |
| Date: | 2023–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vtiwps:2023_001&r=env |
| By: | Weicheng Lian; Jose Ramon Moran; Raadhika Vishvesh |
| Abstract: | This paper uses a novel empirical approach, following the literature on hysteresis, to explore medium-term scarring of natural disasters for countries vulnerable to climate change. By quantifying the dynamic effects of natural disasters on real GDP per capita for a large number of episodes using a synthetic control approach (SCA) and focusing on severe shocks, we demonstrate that a persistently large deviation of real GDP per capita from the counterfacutal trend exists five years after a severe shock in many countries. The findings highlight the importance and urgency of building ex-ante resilience to avoid scarring effects for countries prone to natural disasters, such as those in the Caribbean region. |
| Keywords: | Natural disasters; scarring effects; synthetic control approach; IMF working papers; scarring effect; ante resilience; medium-term scarring; output effect; Tourism; Climate change; Caribbean; Global; Western Hemisphere |
| Date: | 2022–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/253&r=env |
| By: | Di Bartolomeo Giovanni; Saltari Enrico; Semmler Willi |
| Abstract: | We study the dynamic problem of pollution control enacted by some policies of regulation and mitigation. The transition dynamics from one level of regulation and mitigation to another usually involve inter-temporal trade-offs. We focus on how different policymaker’s time horizons affect these trade-offs. We refer to shorter lengths in policymaker’s time horizons as political short-termism or inattention, which is associated with political econ-omy or information constraints. Formally, inattention is modeled by using Nonlinear Model Predictive Control. Therefore, it is a dynamic concept: our policymakers solve an inter-temporal decision problem with a finite horizon that involves the repetitive solution of an optimal control problem at each sampling instant in a receding horizon fashion. We find that political short-termism substantially affects the transition dynamics. It leads to quicker but costlier transitions. It also leads to an under-evaluation of the environmental costs that may accelerate climate change. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:ter:wpaper:00154&r=env |
| By: | Fernandes, Bernardo de Barros; Ferreira, Pedro Cavalcanti |
| Abstract: | We develop a multi-sector general equilibrium model, with intersectorial input–output linkages and CO2 emissions, to investigate the economic impacts of the implementation of a carbon taxation policy in an economy permeated by preexisting distorting taxes. The model is calibrated to Brazil and the carbon price is set so that the economy meets its annual global greenhouse gases emissions pledge for 2030 based on the Paris Agreement. In the presence of production networks, the initially concentrated tax shocks propagate throughout the economy, provoking widespread relative input price variations. Depending on the deforestation scenario, GDP losses range between 5.71% and 0.25%, the latter corresponding to the record low deforestation levels of 2012. Sectors are heterogeneously affected. As expected, those sectors more reliant on taxed pollutant resources (e.g., Energy and Transport) suffer sizable decreases in production. But a significant part of the impacts on sectorial production comes indirectly through network effects, even in the absence of new taxes levied on the sector’s product or its direct inputs. When Agriculture & Livestock are also taxed, GDP losses are considerably smaller. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:fgv:epgewp:833&r=env |
| By: | Joao Seixo; Carina Vieira da Silva; Filipe S. Campos; Pedro Cabral; Luis Catela Nunes; Maria Antonieta Cunha-e-Sa |
| Abstract: | This study estimates the economic value of seven land based ecosystem services for mainland Portugal in 2018. The estimated services are Climate Regulation, Drought Regulation, Erosion Prevention, using the market price methodology, and Food Supply, Pollination, Recreation and Water Purification using a meta-analytic benefit transfer function. By estimating a unique meta-analytic benefit transfer function for each service, the commodity consistency condition is addressed. Different welfare measures were not pooled together and methodological variables are not included in the vector of explanatory variables. The results are spatially explicit at the hectare level providing the benchmark to which the consequences of land-use changes to the value of ecosystem services and, therefore, to the welfare of local populations can be adequately assessed. |
| Keywords: | Ecosystem services, Meta-analysis, Benefit transfer, Economic valuation, Portugal |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:unl:unlfep:wp656&r=env |
| By: | Kruse, Tobias; Atkinson, Giles |
| Abstract: | While the importance of climate change adaptation is not in doubt, adaptation funding in developing countries remains scarce. Therefore, climate finance institutions and national decision-makers face difficult trade-offs when allocating funds. While not a substitute for expert judgement, we argue that understanding how the public thinks could play a role in building support. Using a representative sample of the UK population, we use a discrete choice experiment to explore in particular the way in which distributional considerations drive respondent decisions in two dimensions: (a) among recipients of adaptation finance in recipient developing countries, and (b) among those who contribute to this finance (via taxation). We categorise our results as follows. First, respondents show strong distributional preferences for funds to reach the poorest individuals, supporting adoption of egalitarian policy mandates among climate adaptation funds. Secondly, respondents prefer an ‘ability-to-pay’ approach over the ‘polluter-pays-principle’ as a way of funding. Thirdly, our results suggest that a focus on communicating future benefits to UK residents can increase policy support. Overall, however, our findings also reveal that public support for global climate adaptation payments is insufficient. Yet we provide means of understanding how to allocate all-too-scarce funds and how to increase support for adaptation finance. |
| Keywords: | climate policy; choice modelling; climate change adaption; public acceptability |
| JEL: | J1 |
| Date: | 2022–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:112963&r=env |
| By: | Ibrahim Savadogo (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Adrien Beziat (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper assesses the potential environmental impacts of a large-scale deployment of off-hour deliveries (OHD), focusing on CO2 and pollutant emissions. We use a methodological framework involving four steps: transport demand estimation, traffic simulation, emissions calculation and emissions environmental social cost calculation. Based on five scenarios, depending on the scale of the shift to OHD, and applied to the case of the Lyon urban area, we find that OHDs lead to a reduction in CO2 and pollutant emissions. However, their impact is rather small. The maximum reduction in CO2 emissions is 3.4% for 100% OHD for the whole urban area of Lyon (1.9 million inhabitants and 3325 km2). Some factors (population size, density, traffic conditions, research methodology, vehicle fleet composition, etc.) limit the comparability of the results obtained from other case studies. One of the reasons for this low environmental impact of OHDs is that the LUA is a small and not very congested metropolitan area. This impact is 5% when we focus on the densest area (core of area with 0.7 million inhabitants on 2.2% of surface area) which is more important than in the least dense area (outskirts of area with 0.6 million inhabitants on 83.6% of surface area) with 2.6%. These results confirm the limited impacts of OHDs in smaller, less congested urban areas. It also reaffirms the need for OHDs to be implemented in the densest parts of metropolitan areas. The maximum decrease in the environmental social cost is 4.25 million euros per year. Furthermore, the analysis reveals that the adoption of OHD makes it possible to achieve gains of 2.5 million hours per year in travel time that augur a productivity gain for all the actors involved in urban goods movement. |
| Keywords: | Off-hour deliveries, Urban goods movements, Environmental impacts, Large-scale simulation |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03045859&r=env |
| By: | Majid Hashemi (Department of Economics, Queens University, Kingston, Ontario Canada and Cambridge Resources International Inc.); Glenn P. Jenkins (Department of Economics, Queens University, Kingston, Ontario, Canada and Cambridge Resources International Inc.); Frank Milne (Department of Economics, Queens University, Kingston, Ontario, Canada) |
| Abstract: | This paper develops a framework for a financial, economic, and stakeholder analysis of a residential rooftop solar net-metering program. The empirical focus of the paper is the net metering program in Ontario, Canada, but the methodology is applicable to evaluating other public programs. The results highlight that without the Federal Government’s subsidy for the initial investment cost, net-metered solar systems are not financially viable for representative households. Moreover, the stakeholder analysis reveals that for each additional net-metered system installed in Ontario, non-net-metered households experience financial losses of eight times the benefits to the net-metered households. The net losses to the Federal Government of Canada and the Canadian economy are six and twelve times the benefit to the net-metered households, respectively. The only stakeholder who benefits marginally is the Government of Ontario. In terms of environmental benefits, our estimate of the cost of greenhouse gas abatement by residential net-metered solar is 413 CAD per ton of CO2e, which is significantly higher than the current (65 CAD in 2023) and future (170 CAD by 2030) social cost of carbon set by the Government of Canada. |
| Keywords: | rooftop solar, net metering, greenhouse gas emissions, renewable energy, the social cost of carbon, Canada |
| JEL: | D61 L94 Q42 Q48 |
| Date: | 2023–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:4598&r=env |
| By: | Cathal O’Donoghue; Jules Linden; Denisa Sologon |
| Abstract: | This paper lays out an approach, and a research agenda, for assessing the impact of carbon pricing on household budgets. It relies on a rich set of available data and policy models and combines them in a way that is informative for mapping the gains and losses at the household level in the short term as countries transition to a low-carbon economy. After accounting for direct burdens from higher fuel prices, indirect effects from higher prices of goods other than fuel, and households’ behavioural responses, overall burdens are only mildly regressive. Recycling carbon-tax revenues back to households allows considerable scope for avoiding or cushioning losses for large parts of the population, and existing policy models can be used to design compensation measures that facilitate majority support for carbon tax packages. |
| Keywords: | Carbon tax, Carbon tax, climate change, inequality, revenue recycling |
| JEL: | C8 D12 D31 H23 Q52 |
| Date: | 2023–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:283-en&r=env |
| By: | Liverpool-Tasie, Lenis Saweda; Dillon, Andrew; Bloem, Jeffrey R.; Adjognon, Guigonan Serge |
| Abstract: | Sustainable intensification is predicated on climate-smart agricultural input adoption. We test strategies for promoting the adoption of climate-smart agricultural inputs in Nigeria with a private sector firm. We disentangle the effects of price discount promotions (25 percent discounts) relative to the firm’s standard “business as usual†marketing package. We find that the standard marketing package increases the adoption of climate-smart urea super granule (USG) fertilizer by 24 percentage points while reducing prilled urea utilization by 17 percentage points. Discounts increase adoption of USG by an additional eight percentage points, but are not profitable for the input supply firm as a scalable marketing strategy. Although treatment reduces nitrogen runoff damages valued between USD 43 and 113 per hectare, it did not lead to increased rice yields for farmers. |
| Keywords: | NIGERIA; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; private sector; economic sectors; climate change adaptation; fertilizers; rice; climate-smart agriculture; climate-smart technologies; technology adoption; micro-dosing |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2155&r=env |
| By: | Barooah, Prapti; Alvi, Muzna Fatima; Ringler, Claudia; Pathak, Vishal |
| Abstract: | India’s agricultural systems are increasingly affected by the adverse effects of climate change. While the Government of India has put together an impressive set of programs to address climate change impacts on agriculture, substantial shortcomings of these programs have been identified, especially in reaching women farmers. Women’s increased vulnerability to climate change and reduced access to climate smart agricultural practices can be attributed to limited land ownership, poor access to credit, reduced access to information and formal extension, and time pressures from multiple domestic and productive demands on their time. We undertake an extensive policy review of India’s agriculture and climate policies and program, and supplement that with a series of focus group discussions with women and men farmers in Gujarat to discuss constraints and potential entry points for better reaching women farmers with climate smart agriculture practices. Village cooperatives and self-help groups can be key intermediary organizations that can support women’s access at the local, state and country level. |
| Keywords: | INDIA; SOUTH ASIA; ASIA; access to information; agriculture; climate change; climate-smart agriculture; farmers; farming systems; gender; land ownership; men; policy innovation; vulnerability; women; women farmers; |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2162&r=env |
| By: | Soysa, R.N.K.; Pallegedara, Asankha; Ajantha, Sisira Kumara; Jayasena, D.M.; Samaranayake, M.K.S.M. |
| Abstract: | While many listed firms in Sri Lanka adapt sustainability reporting into their annual reports, a few firms use a combination of both Global Reporting Initiative (GRI) guidelines and SDGs when preparing sustainability reports. The current study attempts to develop an index to monitor firms' sustainability reporting practices based on both GRI guidelines and SDGs. A sample of 100 firms listed in the Colombo Stock Exchange (CSE) was chosen to evaluate the extent of firms' sustainability reporting. The principal component analysis was employed in the study to examine the reliability of the formulated scoring methodology by evaluating the 17 Sustainable Development Goals. Results indicate that the developed scoring index is efficient for evaluating the sustainability reported content in Sri Lankan firms. The study findings may be useful for organisations and statutory bodies to find a replicable method to measure the sustainable performance of business firms. |
| Keywords: | Sustainable development, Sri Lanka, Principal component analysis, SDGs, Sustainability reporting index |
| JEL: | M21 M4 |
| Date: | 2023–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116098&r=env |
| By: | Tiago Cavalcanti; Kamiar Mohaddes; Hongyu Nian; Haitao Yin |
| Abstract: | This paper investigates the long-run effects of prolonged air pollution on firm-level human capital, knowledge and innovation composition. Using a novel firm-level dataset covering almost all industrial firms engaged in science and technology activities in China, and employing a regression discontinuity design, we show that prolonged pollution significantly diminishes both the quantity and the quality of human capital at the firm level. More specifically, we show that air pollution affects firm-level human capital composition by reducing the share of employees with a PhD degree and master’s degree, but instead increasing the share of employees with bachelor’s degree. Moreover, the difference in the composition of human capital materially change the knowledge and innovation structure of the firms, with our estimates showing that pollution decreases innovations that demand a high level of creativity, such as publications and inventions, while increasing innovations with a relatively low level of creativity, such as design patents. Quantitatively, on the intensive margin, one μg/m3 increase in the annual average PM2.5 concentration leads to a 0.188 loss in the number of innovations per R&D employee. Overall, we show that air pollution has created a gap in human capital, knowledge, and innovation between firms in the north and south of China, highlighting the importance of environmental quality as a significant factor for productivity and welfare. |
| Keywords: | Pollution, human capital, knowledge, innovation and China |
| JEL: | O15 O30 O44 Q51 Q56 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-01&r=env |
| By: | Grebel, Thomas; Islam, Rohidul |
| Abstract: | Since its introduction, the European Emissions Trading Scheme (EU ETS) has been struggling with an oversupply of emission allowances and a highly volatile allowance price. One reason for the price decline is technological progress and ist demand-reducing effect, which is only partially taken into account in the system. We propose a simple benchmark approach to endogenously adjust the supply of allowances to technical progress. Using a non-parametric benchmark approach, we measure the required adjustment of the allowance supply to avoid a technologyinduced price decline and to maintain the incentive to invest in low-carbon technologies. |
| Keywords: | EU ETS, emission allowances, Data Envelopment Analysis, endogenous adjustment of supply, technological change, yardstick competition |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:169&r=env |
| By: | Mekonnen, Dawit Kelemework; Abate, Gashaw Tadesse; Yimam, Seid |
| Abstract: | Climate change forecasts for Ethiopia predict higher temperature and rainfall and increased variability in rainfall with periodic severe droughts and floods. The increased weather variability threatens the extent of Ethiopia’s agricultural transformation unless it is supported with improved agricultural water management such as irrigation to make smallholder farming resilient to adverse weather events. This study analyzes the role of irrigation on agricultural transformation in Ethiopia by systematically comparing households with irrigated and non-irrigated plots on key agricultural transformation and welfare indictors (i.e., intensification, commercialization, and consumption expenditures). The study used a representative data from the four main agriculturally important regions of the country and employed an endogenous switching regression approach that addresses potential biases from placement of irrigation schemes and the self-selection of farmers to adopt irrigation on their plots. This approach allows for counterfactual analysis on the effect of irrigation if it is adopted on plots or in households without current irrigation as well as the counterfactual realizations of outcome variables if irrigated plots were not irrigated or irrigating households were relying only on rainfed agriculture. The main results show a positive and significant effects of irrigation on intensification, commercialization, and household welfare. Specifically, the results show that farm households with irrigated plots (i) use more fertilizer and agrochemicals, (ii) sell sizable shares of their harvest, and (iii) spend more on food and non-food expenditures. The counterfactual analysis on what would have been the effect of irrigation on currently non-irrigated plots indicate a stronger result across our outcome indicators which further suggest the importance of expanding irrigation in accelerating agricultural transformation and welfare improvement in Ethiopia. |
| Keywords: | ETHIOPIA; EAST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; irrigation; agriculture; climate; climate change; weather hazards; extreme weather events; welfare; commercialization; input intensification |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2159&r=env |
| By: | Abdeljelil, Mouna Ben (University of Sousse); Rault, Christophe (University of Orléans); Belaïd, Fateh (Lille Catholic University) |
| Abstract: | This paper investigates the existence of an environmental Kuznets curve (EKC) and its robustness for 28 countries of the Union for the Mediterranean (UfM) over the recent period. Our methodology relies on four recent estimation methods for non-stationary panel data and includes four pollutants (two global and two local). Two main results emerge from our analysis. First, the EKC does not hold for most pollutants, and its validity crucially depends on the estimation techniques considered. Second, the Pooled-Mean Group method is the most favourable one and confirms the existence of an inverted U-shaped relationship for CO2 and SO2. Our results provide beneficial information for decision-makers. They suggest implementing proactive instruments based on both flexible regulations and tax incentives to stimulate ecological transition. |
| Keywords: | environmental Kuznets curve, pollution, regional integration, The Union for the Mediterranean |
| JEL: | O44 Q53 R58 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15853&r=env |
| By: | Pietro Bonetti; Christian Leuz; Giovanna Michelon |
| Abstract: | The rise of shale gas and tight oil development has triggered a major debate about hydraulic fracturing (HF). In an effort to mitigate risks from HF, especially with respect to water quality, many U.S. states have introduced disclosure mandates for HF wells and fracturing fluids. We use this setting to study whether targeting corporate activities that have dispersed environmental externalities with disclosure regulation to create public pressure reduces their environmental impact. We find significant improvements in water quality, examining salts that are considered signatures for HF impact, after the disclosure mandates are introduced. We document effects along the extensive and the intensive margin, though most of the improvement comes from the latter. Supporting this interpretation, we find that, after the disclosure mandates, operators pollute less per unit of production, use fewer toxic chemicals, and cause fewer spills and leaks of HF fluids and wastewater. We also show that disclosure enables public pressure and that this pressure facilitates internalization. |
| JEL: | D62 G38 K22 K32 L71 L72 M41 M48 Q53 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30842&r=env |
| By: | Brühl, Volker |
| Abstract: | The financial sector plays an important role in financing the green transformation. Various regulatory initiatives in the EU aim to improve transparency in relation to the sustainability of financial products and the sustainability of economic activities of non-financial and financial undertakings. For credit institutions, the Green Asset Ratio (GAR) has been established by the European regulatory authorities as a KPI for measuring the proportion of Taxonomy-aligned on-balance-sheet exposure in relation to the total assets. The breakdown of the total GAR by type of counterparty, environmental objective and type of asset provides in-depth information about the sustainability profile of a credit institution. This information, which has not been available to date, may also initiate discussions between management and shareholders or other stakeholders regarding the future sustainability strategy of credit institutions. This paper provides an overview of the regulatory background and the method of calculating the GAR along different dimensions. Finally, the potential benefits and limitations of the GAR are discussed. |
| JEL: | G10 G20 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:683&r=env |
| By: | Olivier R de Bandt (Banque de France - Banque de France - Banque de France); Luc Jacolin (Banque de France - Banque de France - Banque de France); Thibault Lemaire (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, Banque de France - Banque de France - Banque de France) |
| Abstract: | Using panel data covering 126 low- and middle-income countries over 1960-2017, we find that sustained positive temperature deviations from their historical norms have a non-linear negative effect on economic growth and growth per capita. A sustained 1°C temperature increase lowers real GDP per capita annual growth by 0.74–1.52 percentage points, irrespective of levels of development. We also find that temperature rise affects the households' intertemporal trade-off between consumption and investment, since the share of private consumption in total value-added increases while the share of investment declines. A sectoral decomposition shows that the share of industrial value-added also declines. While the share of agricultural value-added increases, agricultural output and productivity declines. Taken together, our results suggest that global warming will reinforce development traps, hindering further adaptation to climate change, particularly in the countries with the lowest levels of income given their lower resilience and higher socioeconomic vulnerability. |
| Keywords: | Climate Change, Economic Growth, Adaptation, Developing Countries |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-03948704&r=env |
| By: | Rene Tapsoba; Yoro Diallo |
| Abstract: | This paper analyzes the interlinkages between climate shocks, domestic conflicts, and policy resilience in Africa. It builds on a Correlated Random Effect model to asess these interrelationships on a broad sample of 51 African countries over the 1990-2018 period. We find suggestive evidence that climate shocks, as captured through weather shocks, increase the likelihood of domestic conflicts, by as high as up to 38 percent. However, the effect holds only for intercommunal conflicts, not for government-involved conflicts. The effect is maginified in countries with more unequal income distribution and a stronger share of young male demographics. The results are robust to a wide set of sensitivity checks, including using various indicators of weather shocks and domestic conflicts, and alternative estimation techniques. The findings shed light on key policy resilience factors, including steadily improving domestic revenue mobilization, strengthening social protection and access to basic health care services, scaling up public investment in the agriculture sector, and stepping up anti-desertification efforts. |
| Keywords: | Weather shocks; Domestic conflicts; Demographics; Resilience; weather shock indicator; database weather shock; weather shock; baseline result; policy resilience; Natural disasters; Climate change; Natural resources; Africa; Global |
| Date: | 2022–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/250&r=env |
| By: | Takayoshi Shinkuma; Akira Hibiki; Eiji Sawada |
| Abstract: | We We have considered an environmental pollution that catastrophically destroys the environment once it occurs. While this kind of pollution could be avoided to some extent through precautionary activity, efforts to prevent pollution could not be observed by a government without inspection. In addition, the polluter might not be able to afford to compensate for the damage. The first best has not been achieved in the literature when moral hazard and limited liability are considered at the same time. By generalizing other policies, including the strict liability rule and the negligence rule, we derive an optimal inspection policy under moral hazard and limited liability. The optimal policy is composed of advance payment and ex-post payment after inspection. In other words, we can consider the optimal policy as a deposit/refund system. We derive the second-best policy by taking account of inspection cost. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:toh:tupdaa:32&r=env |
| By: | Sangeeta Bansal (Centre for International Trade and Development, School of International Studies, Jawaharlal Nehru University, New Delhi, India); Massimo Filippini (Center of Economic Research (CER-ETH), ETH Zürich, Università della Svizzera italiana, Switzerland); Suchita Srinivasan (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland) |
| Abstract: | This paper evaluates the impact of a policy that was implemented to reduce the energy intensity of firms in some manufacturing sectors in India, on the total factor productivity (TFP) growth of firms and on its components, scale efficiency and technical change. Using plant-level panel data on the cement industry from 2007-2015 and a difference-in-difference methodology, we find that treated plants had higher rates of TFP growth, compared to control plants. This is largely driven by the fact that they expanded their production compared to control plants, even though they experienced lower rates of technical change compared to control plants. To explain this finding, we verify that treated plants attempted to meet the energy-intensity mandate not by reducing their energy consumption, but instead by increasing their output. Our results suggest that energy intensity regulations may not reduce energy consumption, because firms may find other ways to fulfil targets. The policy implications of this study are related to the design of energy-efficiency regulations, particularly in developing countries where firms in some industries may find it difficult to reduce their energy consumption through investment in new energy-efficient technologies or processes. |
| Keywords: | Total factor productivity; Climate change mitigation; Environmental Regulation; Cement Industry; Energy Intensity; India |
| JEL: | D1 D8 Q4 Q5 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:23-379&r=env |
| By: | Jinhui Li |
| Abstract: | Carbon neutralization is an urgent task in society because of the global warming threat. And carbon trading is an essential market mechanics to solve carbon reduction targets. Macro carbon price prediction is vital in the useful management and decision-making of the carbon market. We focus on the EU carbon market and we choose oil price, coal price, gas price, and DAX index to be the four market factors in predicting carbon price, and also we select carbon emission targets from Paris Accord as the political factor in the carbon market in terms of the macro view of the carbon price prediction. Thus we use these five factors as inputs to predict the future carbon yearly price in 2030 with the support vector regression models. We use grid search and cross validation to guarantee the prediction performance of our models. We believe this model will have great applications in the macro carbon price prediction. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2212.11787&r=env |
| By: | Sajid Amin Javed (Research Fellow, Sustainable Development Policy Institute (SDPI)); Sara Zafar Cheema (Research Consultant, Sustainable Development Policy Institute (SDPI)); Dawn Holla (Fellow, National Institute of Economic and Social Research (NIESR)) |
| Abstract: | This study assesses Pakistan’s fiscal stimulus response to the COVID-19 pandemic, evaluating the degree to which it has managed to support a recovery, which is inclusive, green and forward-looking. In oreder to align recovery from COVID19 to SDGs agenda of the country, it is crucial for Pakistan to expand social protection, mainstream gender in all approaches and measures, roll-out a mass COVID-19 vaccination campaign, shift to green transport, cut fossil fuel subsidies and achieve an inclusive digital transformation. The study identifies the estimated costs and outlines financing options of these recommendations. Finally, the study simulates macroeconomic, social and environmental impacts of investment in people, green energy and digsital infarstrture on key macroeconomic indicators of the country which include public debt, GDP growth, (un)employment, poverty and CO2 emissions. Findings from these simulations, using the ESCAP’s Macroeconomic Model, support a strong economic and environment case for invesmnets recommended in this study. |
| Keywords: | Building Back Better, Fiscal Stimulus, Inclusive, Green, Forward-Looking, Digital Transformation, COVID-19 Recovery, SDGs, Fiscal Space, Macroeconomic Model |
| JEL: | C82 E00 E60 O23 Q01 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:unt:wpmpdd:wp/22/01&r=env |
| By: | van der Ploeg, Frederick; Emmerling, Johannes; Groom, Ben |
| Abstract: | An analytical formula is presented for the Social Cost of Carbon (SCC) taking account of intragenerational income inequality, in addition to intergenerational income inequality, macro-economic uncertainty and rare disasters to economic growth. The social discount rate is adjusted for intra- and intergenerational inequality aversion and risk aversion. If growth reduces intragenerational inequality, the SCC is lower than with inequality-neutral growth, especially if intra- and intergenerational inequality aversion are high. Calibrated to the observed interest rate and risk premium, the SCC in 2020 is $125/tCO2 without considering intragenerational inequality, $81/tCO2 if intragenerational inequality decreases over time, as a continuation of historical trends suggests (based on Shared Socioeconomic Pathway (SSP) 2), and $213/tCO2 if inequality increases (SSP4). Intragenerational inequality has a similar order of effect on the SCC as accounting for rare macroeconomic disasters. |
| Keywords: | social discount rate; social cost of carbon; intra- and intergenerational inequality aversion; risk aversion; inequality; growth; uncertainty |
| JEL: | C61 D31 D62 D81 G12 H23 Q54 |
| Date: | 2023–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117901&r=env |
| By: | van der Ploeg, Frederick; Emmerling, Johannes; Groom, Ben |
| Abstract: | An analytical formula is presented for the Social Cost of Carbon (SCC) taking account of intragenerational income inequality, in addition to intergenerational income inequality, macro-economic uncertainty and rare disasters to economic growth. The social discount rate is adjusted for intra- and intergenerational inequality aversion and risk aversion. If growth reduces intragenerational inequality, the SCC is lower than with inequality-neutral growth, especially if intra- and intergenerational inequality aversion are high. Calibrated to the observed interest rate and risk premium, the SCC in 2020 is $125/tCO2 without considering intragenerational inequality, $81/tCO2 if intragenerational inequality decreases over time, as a continuation of historical trends suggests (based on Shared Socioeconomic Pathway (SSP) 2), and $213/tCO2 if inequality increases (SSP4). Intragenerational inequality has a similar order of effect on the SCC as accounting for rare macroeconomic disasters. |
| Keywords: | social discount rate; social cost of carbon; intra- and intergenerational inequality aversion; risk aversion; inequality; growth; uncertainty |
| JEL: | C61 D31 D62 D81 G12 H23 Q54 |
| Date: | 2023–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117898&r=env |
| By: | Zhuo, Shi; Ratajczak, Michael; Thornton, Katie; Jones, Phil; Jarchlo, Ayla Ibrahimi; Gold, Natalie |
| Abstract: | Food products have significant impacts on the environment over their life cycle. We investigated whether displaying products in ascending order of carbon footprint in an online supermarket environment can shift consumer choices towards more sustainable options. We examined whether the effect of the ordering intervention differs when the ordering is overt (information about the ordering is explicit), compared to when it is covert (participants not told about the ordering). We conducted a three-arm parallel-group randomised trial using 1842 online participants from England, Wales, and Northern Ireland. Participants shopped for a meal, choosing one product from each of six product categories in a simulated online supermarket. Six products were listed vertically on each product-category page. Products were randomly ordered for the control arm but ordered by carbon footprint in the covert and overt ordering arms. In the overt ordering arm, a statement was displayed at the top of each product page about the ordering of products. The primary outcome was whether one of the three most sustainable products was chosen in each product category. There was no effect of the covert ordering on the probability of choosing more sustainable products compared with the control arm (OR = 0.97, 95% CI 0.88-1.07, p = 0.533). Furthermore, we did not find evidence that the effects of the covert ordering and overt ordering differed (p = 0.594). Within the control condition, products in different positions were chosen with similar frequencies, suggesting that product positioning does not have an impact on choices. This may explain why re-ordering products had no effect. In the overt condition, only 19.5% of people correctly answered that the products were ordered according to sustainability in a follow-up question, suggesting that they didn't notice the statement. Results suggest that choices for grocery products might be too ingrained to be changed by subtle rearrangements of choice architecture like the ordering interventions, and highlight the difficulty of conveying information effectively to consumers in the online grocery shopping environment. |
| Keywords: | disclosure; food choice; nudge; online supermarket; order effect; sustainable diet |
| JEL: | L81 |
| Date: | 2023–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117705&r=env |
| By: | Filewod, Ben; McCarney, Geoff |
| Abstract: | Leaky offsets are old news. As the world embraces nature-based solutions as a core strategy for critical near-term climate change mitigation, transactions of nature-based offsets in both compliance and voluntary markets reflect an underlying assumption that current approaches to managing leakage at the project level are working. We argue that this is not the case: leading third-party certification standards appear to vastly understate leakage compared to the research literature, and the tools available for project-level crediting cannot deliver the accuracy needed in practice. We propose an alternative, conservative, approach for avoiding leakage by design, based on understanding the ‘duality’ between additionality and leakage in a system at equilibrium. We then identify three principles that offset developers, certifiers, and consumers should implement at the project level now to improve the credibility of nature-based offset markets, while also allowing for increasing ambition and investment in nature-based solutions. |
| JEL: | J1 R14 J01 |
| Date: | 2023–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117928&r=env |
| By: | Filewod, Ben; McCarney, Geoff |
| Abstract: | Leaky offsets are old news. As the world embraces nature-based solutions as a core strategy for critical near-term climate change mitigation, transactions of nature-based offsets in both compliance and voluntary markets reflect an underlying assumption that current approaches to managing leakage at the project level are working. We argue that this is not the case: leading third-party certification standards appear to vastly understate leakage compared to the research literature, and the tools available for project-level crediting cannot deliver the accuracy needed in practice. We propose an alternative, conservative, approach for avoiding leakage by design, based on understanding the ‘duality’ between additionality and leakage in a system at equilibrium. We then identify three principles that offset developers, certifiers, and consumers should implement at the project level now to improve the credibility of nature-based offset markets, while also allowing for increasing ambition and investment in nature-based solutions. |
| JEL: | J1 R14 J01 |
| Date: | 2023–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117927&r=env |
| By: | - |
| Abstract: | Dans un contexte régional et international marqué par une faible croissance, des taux élevés d’inflation et le creusement des inégalités, il est impératif que les pays d’Amérique latine et des Caraïbes axent leurs politiques non seulement sur la réactivation de leurs systèmes économiques et productifs, mais aussi sur leur reconstruction et leur transformation afin d’évoluer vers des économies à faible émission de carbone et à technologie de pointe qui permettront de faire face au changement climatique et de réduire les écarts, les hétérogénéités structurelles et les dualismes historiques qui les caractérisent. C’est dans ce contexte complexe que s’inscrit le présent document, qui aborde les grands défis à relever pour accélérer la croissance, lutter contre une inflation galopante et la crise du coût de la vie, maintenir les appuis aux ménages les plus vulnérables et atténuer les coûts sociaux de la crise, tout en dopant l’investissement. Dans cette optique, les différents chapitres analysent la dynamique de la mondialisation et les défis politiques à relever pour modifier la structure de production et évoluer vers un développement durable. On y aborde également les stratégies susceptibles de réduire les inégalités et d’évoluer vers des systèmes universels de protection sociale et des emplois décents dans un monde en constante évolution. Le rapport se penche sur neuf secteurs stratégiques qui devraient donner une impulsion majeure au développement durable dans une perspective de croissance verte. Enfin, le document propose plusieurs recommandations politiques. |
| Keywords: | DESARROLLO ECONOMICO, MODELOS DE DESARROLLO, GLOBALIZACION, MEDIO AMBIENTE, CAMBIO TECNOLOGICO, PRODUCTIVIDAD, DESARROLLO SOSTENIBLE, EMPLEO, POLITICA SOCIAL, DESARROLLO INDUSTRIAL, POLITICA INDUSTRIAL, POLITICA ECONOMICA, ECONOMIC DEVELOPMENT, DEVELOPMENT MODELS, GLOBALIZATION, ENVIRONMENT, TECHNOLOGICAL CHANGE, PRODUCTIVITY, SUSTAINABLE DEVELOPMENT, EMPLOYMENT, SOCIAL POLICY, INDUSTRIAL DEVELOPMENT, INDUSTRIAL POLICY, ECONOMIC POLICY |
| Date: | 2022–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:c39025:48326&r=env |
| By: | Christina Brand (Institute of Transport Economics, Muenster); Thomas Hagedorn (Institute of Transport Economics, Muenster); Till Kösters (Institute of Transport Economics, Muenster); Marlena Meier (Institute of Transport Economics, Muenster); Gernot Sieg (Institute of Transport Economics, Muenster); Jan Wessel (Institute of Transport Economics, Muenster) |
| Abstract: | The Leezenflow system is an open-source green wave assistant designed specifically for cyclists and is installed 110 meters in front of a traffic light in Münster, Germany. The system indicates the remaining time of the current traffic light phase through an expiring bar, colored either green or red. This is intended to help cyclists adjust their speed in order to cross the traffic lights when green, and consequently optimize cycling flow. We conduct a natural field experiment in real traffic to analyze the impact of the Leezenflow system on cycling flow and safety, and find that it impacts statistically significantly on cycling flow. Due to the Leezenflow system, the number of cyclists that have to stop at the red lights decreases by 6.6 %. Accordingly, the share of cyclists that pass the green lights increases. The data also indicate positive effects on traffic safety. The results of the natural field experiment confirm and put into perspective the feedback of an accompanying online survey. The majority of surveyed users reports that the Leezenflow system does improve the cycling flow. The influence on traffic safety is predominantly seen as positive or neutral by the survey participants. The Leezenflow system can thus help city planners to promote cycling, thereby enabling more sustainable mobility. |
| Keywords: | Bicycle traffic flow, traffic safety, open-source green wave assistant, countdown timer, natural field experiment, survey |
| JEL: | R49 C93 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:mut:wpaper:37&r=env |
| By: | - |
| Abstract: | Num contexto regional e internacional de baixo crescimento, alta inflação e crescente desigualdade, os países da América Latina e do Caribe precisam concentrar suas políticas não só na reativação dos sistemas econômicos e produtivos, mas também em sua reconstrução e transformação para avançar rumo a economias com baixas emissões de carbono e alto conteúdo tecnológico, que permitam enfrentar a mudança climática e reduzir as lacunas, heterogeneidades estruturais e dualismos históricos que os caracterizam. Este documento enquadra-se nesse contexto complexo com amplos desafios para acelerar o crescimento, enfrentar a aceleração inflacionária e a crise do custo de vida, manter as transferências para os domicílios mais vulneráveis, mitigar os custos sociais da crise e dinamizar o investimento. Com esta visão, os capítulos analisam a dinâmica da globalização e os desafios de política para mudar a estrutura produtiva e avançar rumo a um desenvolvimento sustentável. Também consideram as estratégias para reduzir a desigualdade e avançar rumo a sistemas de proteção universais e emprego decente num mundo em transformação. Sob uma perspectiva de crescimento verde, examinam-se nove setores estratégicos que deveriam gerar um grande impulso para a sustentabilidade. O documento conclui com recomendações de política. |
| Keywords: | DESARROLLO ECONOMICO, MODELOS DE DESARROLLO, GLOBALIZACION, MEDIO AMBIENTE, CAMBIO TECNOLOGICO, PRODUCTIVIDAD, DESARROLLO SOSTENIBLE, EMPLEO, POLITICA SOCIAL, DESARROLLO INDUSTRIAL, POLITICA INDUSTRIAL, POLITICA ECONOMICA, ECONOMIC DEVELOPMENT, DEVELOPMENT MODELS, GLOBALIZATION, ENVIRONMENT, TECHNOLOGICAL CHANGE, PRODUCTIVITY, SUSTAINABLE DEVELOPMENT, EMPLOYMENT, SOCIAL POLICY, INDUSTRIAL DEVELOPMENT, INDUSTRIAL POLICY, ECONOMIC POLICY |
| Date: | 2022–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:c39025:48325&r=env |
| By: | Badi H. Baltagi; Georges Bresson; Anoop Chaturvedi; Guy Lacroix |
| Abstract: | This paper extends the Baltagi et al. (2018, 2021) static and dynamic ε-contamination papers to dynamic space-time models. We investigate the robustness of Bayesian panel data models to possible misspecification of the prior distribution. The proposed robust Bayesian approach departs from the standard Bayesian framework in two ways. First, we consider the ε-contamination class of prior distributions for the model parameters as well as for the individual effects. Second, both the base elicited priors and the ε-contamination priors use Zellner (1986)’s g-priors for the variance-covariance matrices. We propose a general “toolbox” for a wide range of specifications which includes the dynamic space-time panel model with random effects, with cross-correlated effects à la Chamberlain, for the Hausman-Taylor world and for dynamic panel data models with homogeneous/heterogeneous slopes and cross-sectional dependence. Using an extensive Monte Carlo simulation study, we compare the finite sample properties of our proposed estimator to those of standard classical estimators. We illustrate our robust Bayesian estimator using the same data as in Keane and Neal (2020). We obtain short run as well as long run effects of climate change on corn producers in the United States. Cet article généralise les articles de Baltagi et al. (2018, 2021) portant sur les modèles statiques et dynamiques de type ε-contamination aux modèles spatio-temporels dynamiques. Nous étudions la robustesse des modèles bayésiens avec données de panel à une éventuelle erreur de spécification de la distribution a priori. L'approche bayésienne proposée se distingue du cadre bayésien standard de deux manières. Premièrement, nous considérons la classe ε-contamination des distributions a priori pour les paramètres du modèle ainsi que pour les effets individuels. Deuxièmement, les « elicited priors » pour les paramètres du modèle et les « priors » de la ε-contamination sont fondés sur les « g-priors » de Zellner (1986) pour les matrices de variance-covariance. Nous proposons un « coffre à outils » permettant d’estimer un large éventail de spécifications qui comprend le modèle de panel dynamique spatio-temporel à effets aléatoires, à effets croisés à la Chamberlain, au cadre analytique de Hausman-Taylor, ainsi que les modèles de données de panel dynamiques avec pentes homogènes/hétérogènes et dépendance transversale. À l'aide de nombreuses simulations de type Monte-Carlo, nous comparons les propriétés en échantillon fini de notre estimateur à celles des estimateurs classiques standards. Nous illustrons notre estimateur bayésien en exploitant les mêmes données que Keane et Neal (2020). Nous obtenons des effets à court et à long terme des changements climatiques sur la production de maïs aux États-Unis. |
| Keywords: | climate change, crop yields, dynamic model, ?-contamination, panel data, robust Bayesian estimator, space-time, changement climatique, rendement des cultures, modèle dynamique, ?-contamination, données de panel, estimateur bayésien robuste, modèle spatio-temporel |
| JEL: | C11 C23 C26 Q15 Q54 |
| Date: | 2023–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2023s-01&r=env |
| By: | Löschel, Andreas; Price, Michael Keith; Razzolini, Laura; Werthschulte, Madeline |
| Abstract: | We examine the impact of the COVID-19 pandemic on the formation of energy conservation routines. To do so, we use data from two nationwide surveys of German households, conducted before and during the pandemic. Across the two survey waves, we document a significant increase in the likelihood respondents report engaging in a variety of energy conservation routines, such as unplugging electronic appliances after use and switching off lights when leaving a room. To understand what drives this result, we provide evidence that observed energy saving actions reflect an increased attention devoted to energy consumption while staying at home, as opposed to income shocks experienced during the pandemic. We also rule out an increase in pro-environmental concern during the pandemic as driver of our results. Rather, we find evidence consistent with a 'finite pool of worry, ' that might have even limited the impact of increased attention on the adoption of energy saving routines. In sum, our findings highlight the importance of consumer attention for the adoption of conservation routines to fight global climate change in a post-pandemic world. |
| Keywords: | Energy conservation routines, COVID-19, income shocks, attention, nationwide surveys |
| JEL: | D91 Q49 C83 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22068&r=env |
| By: | Mrs. Nina Budina; Lixue Chen; Laura Nowzohour |
| Abstract: | When and how do natural disasters worsen within-country income inequality? We highlight the channels through which natural disasters may have distributional effects and empirically analyze when and which type of disasters affect inequality in advanced economies (AEs) and in emerging and developing economies (EMDEs). We find that in AEs inequality increases after severe disasters. We also find that inequality increases if severe disasters are associated with growth slowdowns or there are multiple disasters in a year in AEs and in EMDEs. Descriptive evidence for the US also suggests that adverse labor market effects of disasters are likely to fall on vulnerable groups. |
| Date: | 2023–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/002&r=env |
| By: | Vitaly Orlov (University of St. Gallen - School of Finance; Swiss Finance Institute); Stefano Ramelli (University of St. Gallen - School of Finance; Swiss Finance Institute); Alexander F. Wagner (University of Zurich - Department of Banking and Finance; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI); Swiss Finance Institute) |
| Abstract: | What do asset managers believe regarding the financial performance of Environmental, Social, and Governance (ESG) investment strategies? We address this question by exploring the relationship between fund managers’ co-ownership and portfolio ESG performance. Managers with more “skin in the game” exhibit significantly lower ESG performance in funds they manage than their peers. ESG performance is sensitive to changes in managerial ownership. Co-investing managers were less likely to increase their stake in high-ESG stocks after an exogenous shock in ESG-driven fund flows. Moreover, the negative effect of managerial ownership on ESG performance is stronger for managers paid to maximize assets under management, and weaker for managers paid exclusively to maximize financial returns. Overall, the results are contrary to what one would expect if managers really considered ESG strategies an enhanced form of portfolio management. |
| Keywords: | ESG, portfolio management, investor beliefs, mutual funds, skin-in-the-game, sustainability |
| JEL: | G11 G23 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2298&r=env |
| By: | Greyling, Jan; Pardey, Philip G.; Senay, Senait |
| Abstract: | During the first half of the 20th century, the policy stance towards South African agriculture swung from suppression to support. More recently, the agricultural support policies were eliminated. Using newly constructed, long-run (1918-2015) data concerning maize production, yield and average price, we show these switching agricultural policy regimes had significant production, productivity, and climate risk implications for the maize sector. At its peak, this policy-induced movement reduced maize productivity by between 7.9 and 15.3 percent. The removal of the distortions coincided with a contraction in the total area planted to maize, but some spatial productivity perturbations still persist. |
| Keywords: | Agricultural and Food Policy, Crop Production/Industries |
| Date: | 2023–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umaesp:330158&r=env |
| By: | Noy, Ilan (School of Economics and Finance, Victoria University of Wellington); Blanc, Elodie (Motu Economic and Public Policy Research, Wellington); Pundit, Madhavi (Asian Development Bank); Uher, Tomas (School of Economics and Finance, Victoria University of Wellington) |
| Abstract: | The standard approach to ‘nowcast’ disaster impacts, which relies on risk models, does not typically account for the compounding impact of various hazard phenomena (e.g., wind and rainfall associated with tropical storms). The alternative, traditionally, has been a team of experts sent to the affected areas to conduct a ground survey, but this is time-consuming, difficult, and costly. Satellite imagery may provide an easily available and accurate data source to gauge disasters’ specific impacts, which is both cheap, fast, and can account for compound and cascading effects. If accurate enough, it can potentially replace components of ground surveys altogether. An approach that has been calibrated with remote sensing imagery can also be used as a component in a nowcasting tool, to assess the impact of a cyclone, based only on its known trajectory, and even before post-event satellite imagery is available. We use one example to investigate the feasibility of this approach for nowcasting, and for post-disaster damage assessment. We focus on Fiji and on its agriculture sector, and on tropical cyclones (TCs). We link remote sensing data with available household surveys and the agricultural census data to obtain an improved assessment of TC impacts. We show that remote sensing data, when combined with pre-event socioeconomic and demographic data, can be used for both nowcasting and post-disaster damage assessments.1 |
| Keywords: | satellite; cyclone; damage; impact; disaster; nowcasting |
| JEL: | C80 Q10 Q54 |
| Date: | 2023–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0676&r=env |
| By: | Stéphane Gonzalez; Fatma Zahra Rostom (CESCO - Centre d'Ecologie et des Sciences de la COnservation - MNHN - Muséum national d'Histoire naturelle - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The article explores the implications of natural resource scarcity in terms of global cooperation and trade. We investigate whether there exist stable international long-term agreements that take into account the disparities between countries in terms of geological endowments and productive capacity, while caring about future generations. For that purpose, we build an original cooperative game framework, where countries can form coalitions in order to optimize their discounted consumption stream in the long-run, within the limits of their stock of natural resources. We use the concept of the strong sequential core that satisfies both coalitional stability and time consistency. We show that this set is nonempty, stating that an international long-term agreement along the optimal path will be self-enforcing. The presented model sets out a conceptual framework for exploring the fair sharing of the fruits of global economic growth. |
| Keywords: | Non-renewable natural resources, Cooperative games, Strong sequential core |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03900811&r=env |
| By: | Andreas Gerster; Stefan Lamp |
| Abstract: | Environmental policies are often accompanied by exemptions for energy-intensive and trade-exposed industrial firms to avoid leakage from regulated to unregulated jurisdictions. This paper investigates the impact of a large electricity tax exemption on production levels, employment, and input choices in the German manufacturing industry. For two different policy designs, we show that exempted plants significantly increase their electricity use. This effect is considerably larger under a notched exemption policy, where passing an eligibility threshold yields infra-marginal benefits, compared to a revised policy where these benefits have been largely removed. We detect no significant impact of the exemptions on production levels, export shares, and employment. Using counterfactual simulations, we document substantial distortive effects of notched exemption policies when financial stakes are high and compliance cost for firms are low. |
| Keywords: | Environmental Policy, Leakage, Energy Taxes, Manufacturing Industry |
| JEL: | D22 H23 L60 Q41 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_388&r=env |
| By: | Julien Jacob (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Eve-Angéline Lambert (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Mathieu Lefebvre (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Sarah van Driessche (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We experimentally investigate the impact of information disclosure on managing common harms that are caused jointly by a group of liable agents. Subjects interact in a public bad setting and must choose ex ante how much to contribute in order to reduce the probability of causing a common damage. If a damage occurs, subjects bear a part of the loss according to the liability-sharing rule in force. We consider two existing rules: a per capita rule and a proportional rule. Our aim is to analyze the relative impact of information disclosure under each rule. We show that information disclosure increases contributions only under a per capita rule. This result challenges the classical results regarding the positive effects of information disclosure, since we show that this impact may depend upon the legal context. We also show that while a proportional rule leads to higher contributions than a per capita one, the positive effect of disclosure on a per capita rule makes it as efficient as a proportional rule without information disclosure. |
| Keywords: | Information disclosure, Common harms, Environmental Regulation, Liability Sharing Rules, Public Bads, Multiple Tortfeasors |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03922400&r=env |
| By: | Nicolas Berman (Aix-Marseille Univ, CNRS, EHESS, AMSE, Marseille, France.); Mathieu Couttenier (University of Lyon, ENS Lyon, GATE Lyon/St-Etienne and CEPR); Victoire Girard (NOVAFRICA, Nova School of Business and Economics, Universidade NOVA de Lisboa, and LEO, Univ. Orleans.) |
| Abstract: | This paper shows how ethnic identities may become more salient due to natural resources extraction. We combine individual data on the strength of ethnic-relative to national-identities with geo-localized information on the contours of ethnic homelands and on the timing and location of mineral resources exploitation in 25 African countries, from 2005 to 2015. Our strategy takes advantage of several dimensions of exposure to resources exploitation: time, spatial proximity, and ethnic proximity. We find that the strength of an ethnic group identity increases when mineral resource exploitation in that group's historical homeland intensifies. We argue that this result is at least partly rooted in feelings of relative deprivation associated with the exploitation of the resources. We show that such exploitation has limited positive economic spillovers, especially for members of the indigenous ethnic group; and that the link between mineral resources and the salience of ethnic identities is reinforced among members of powerless ethnic groups, and groups with strong baseline identity feelings or living in poorer areas, or areas with a history of conflict. Put together, these finding suggest a new dimension of the natural resource curse: the fragmentation of identities, between ethnic groups and nations. |
| Keywords: | identity, ethnicity, natural resources |
| JEL: | J15 N57 O12 O55 Q32 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:2232&r=env |
| By: | Gasmi, Farid; Recuero Virto, Laura; Couvet, Denis |
| Abstract: | Using a novel database on countries exposed to coastal risks (CR), this paper estimates an augmented neoclassical growth model that nests eight other new growth models. To account for uncertainty related to model multiplicity and choice of growth determinant proxies, we use a Bayesian model averaging (BMA) approach. A preliminary examination of the data shows that a country exposed to coastal risks is likely to be a former British colony characterized by a common law legal framework, a parliamentary political system, a high degree of international trade openness, a small language and ethnic fractionalization, weak public sector corruption, and a high fertility rate. The BMA-based model selection procedure shows that growth determinant proxies typically used in the neoclassical, macroeconomic policy, natural capital, and institutions theories are significantly correlated to growth in CR countries. These results suggest a dual implication as far as these countries’ coastal ecosystems are concerned. On the one hand, because they are heavily dependent on natural capital and have high fertility rates, these countries may potentially seek short-term economic gains at the expense of deteriorating their ecosystems. On the other hand, these countries’ good institutions and low levels of ethnic splitting may be conducive to sustainable management of these ecosystems. |
| Keywords: | Economic growth; coastal risks; ecosystems; Bayesian model averaging |
| JEL: | O13 O44 O47 Q01 Q20 Q22 Q32 |
| Date: | 2023–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:127750&r=env |
| By: | Teodora Boneva; Armin Falk; Mark Fallak; Lasse Stötzer |
| Abstract: | According to a representative briq survey, two-thirds of the German population would be willing to pay hig- her prices for gas and heating if this were to increase pressure on the Russian government. Four out of five Germans would lower their room temperature to save energy. And more than half of higher-income house- holds would be willing to spend some of their income to help poorer households cope with higher energy prices. |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkpbs:030_en&r=env |
| By: | English, Leah; Pelkki, Matthew; Montgomery, Rebecca; Tian, Nana; Popp, Jennie |
| Abstract: | Agriculture and forest industries are major contributors to the Arkansas economy. As such, the impacts of COVID-19 on the agriculture sector, forest sector, and overall economy of Arkansas differed by county and region of the state. Using IMPLAN data for 2019, 2020-Q2, 2020-Q3, and 2020, we compared the direct effects of the pandemic on agriculture and forestry sectors for all 75 counties in Arkansas and the entire state. Differences in pandemic effects were found to vary based on the type and intensity of agriculture and/or forest activity across counties. For this study, we focus on counties that appear to exhibit disproportionate economic shifts within sectors related to the production and/or processing of agricultural and forest products throughout the first year of the pandemic. For these select counties, we evaluate and discuss key factors driving observed economic shifts. |
| Keywords: | Production Economics |
| Date: | 2022–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uarksp:330155&r=env |
| By: | Victor Vasse (ricep - Reseau d'information et de communication en economie des pêches); François-Charles Wolff (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université - IUML - FR 3473 Institut universitaire Mer et Littoral - UM - Le Mans Université - UA - Université d'Angers - UBS - Université de Bretagne Sud - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - ECN - Nantes Université - École Centrale de Nantes - Nantes Univ - Nantes Université) |
| Abstract: | This paper relies on a natural experiment to study the short-term consequences of a reduction of the trawler fleet on the economic situation of fisheries. In the context of the Covid pandemic, a scenario of cooperation leading to a weekly rotation of trawlers was set up for four weeks in May 2020 in the port of Le Grau-du-Roi located on the Mediterranean Sea. However, this scenario was not utilized in the nearby port of Sète. Using detailed transaction data, we rely on a difference-indifferences strategy to assess the impact of the large decrease (around 45%) in the number of trawlers selling fish on a daily basis during the cooperation period. We show that the daily sales revenue per active trawler increased more in Le Grau-du-Roi than in Sète (around 20%) due to higher fish catches, presumably due to a decrease in congestion. However, we find that the evolution of the total revenue per trawler was much lower (around 40%) in Le Grau-du-Roi than in Sète because of the cooperation, meaning that the decrease in fishing time had not been offset at all by the increase in daily sales revenue. |
| Keywords: | fisheries, fish markets, sales revenue, difference-in-differences estimation |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03913069&r=env |
| By: | Ajay Sharma; Siddhartha Rastogi |
| Abstract: | This paper extends the findings of Liu et al. (2015, Strategic environmental corporate social responsibility in a differentiated duopoly market, Economics Letters), along two dimensions. First, we consider the case of endogenous market structure a la Vives and Singh (1984, Price and quantity competition in a differentiated duopoly, The Rand Journal of Economics). Second, we refine the ECSR certification standards in differentiated duopoly with rankings. We find that optimal ECSR certification standards by NGO are the highest in Bertrand competition, followed by mixed markets and the lowest in Cournot competition. Next, NGO certifier will set the ECSR standards below the optimal level. Also, we show that given the ECSR certification standards, there is a possibility of both price and quantity contracts choices by the firms in endogenous market structure. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2301.03291&r=env |
| By: | Teichgraeber, Andreas; Van Reenen, John |
| Abstract: | What research and innovation (R&I) policies should Europe adopt? The world faces a challenge to rebuild after the pandemic, but also faces the same structural slowdown of productivity growth that occurred in the decades before the COVID crisis. We need to have a plan around innovation policy to address the challenge. We show that Europe is less innovative on many dimensions compared to other advanced regions, such as the US and parts of Asia. We review the econometric evidence on R&I policies and argue that there is good evidence for the efficacy of many of them. A mix of R&D subsidies, reinvigorated competition and a big push on expanding the quantity and quality of human capital is needed. These could be bound together around the need for green innovation in order to achieve the mission to radically reduce carbon emissions. |
| Keywords: | innovation; R&D; human capital; Europe |
| JEL: | O31 O32 J24 |
| Date: | 2022–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117801&r=env |
| By: | Gwen-Jiro Clochard (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique); Aby Mbengue (UGB - Université Gaston Berger de Saint-Louis Sénégal); Clément Mettling (IGH - Institut de génétique humaine - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Birane Diouf (UGB - Université Gaston Berger de Saint-Louis Sénégal); Charlotte Faurie (UMR ISEM - Institut des Sciences de l'Evolution de Montpellier - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EPHE - École pratique des hautes études - PSL - Université Paris sciences et lettres - Institut de recherche pour le développement [IRD] : UR226 - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Omar Sene (UADB - Université Alioune Diop de Bambey); Emilie Chancerel (BioGeCo - Biodiversité, Gènes & Communautés - UB - Université de Bordeaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Erwan Guichoux (BioGeCo - Biodiversité, Gènes & Communautés - UB - Université de Bordeaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Guillaume Hollard (X - École polytechnique); Michel Raymond (UMR ISEM - Institut des Sciences de l'Evolution de Montpellier - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EPHE - École pratique des hautes études - PSL - Université Paris sciences et lettres - Institut de recherche pour le développement [IRD] : UR226 - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Marc Willinger (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier) |
| Abstract: | It has been shown that living in risky environments, as well as having a risky occupation, can moderate risk-tolerance. Despitethe involvement of dopamine in the expectation of reward described by neurobiologists, a GWAS study was not able todemonstrate a genetic contribution of genes involved in the dopaminergic pathway in risk attitudes and gene candidate studiesgave contrasting results. We test the possibility that a genetic effect of the DRD4-7R allele in risk-taking behavior could bemodulated by environmental factors. We show that the increase in risk-tolerance due to the 7R allele is independent of theenvironmental risk in two populations in Northern Senegal, one of which is exposed to a very high risk due to dangerous fishing. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03930527&r=env |
| By: | Rosa van den Ende; Dylan Laplace Mermoud |
| Abstract: | There is an increasing need to hold players responsible for negative or positive impact that take place elsewhere in a value chain or a network. For example, countries or companies are held more and more responsible for their indirect carbon emissions. We introduce a responsibility value that allocates the total impact of the value chain among the players, taking into account their direct impact and their indirect impact through the underlying graph. Moreover, we show that the responsibility value satisfies a set of natural yet important properties. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2301.02728&r=env |
| By: | Sonno, Tommaso; Zufacchi, Davide |
| Abstract: | Do multinationals engage in rent-seeking behaviour in developing countries during crises? With a difference in discontinuity approach, we use the Ebola epidemic in Liberia as a natural experiment on the sharp increase in deforestation, which produced a dramatic growth in newly planted palm oil trees and a 1428% increase in palm oil exports. We show that the probability of forest fire - the fastest way to clear forests and start new production - increased by 125% in the same period. Both effects are amplified in areas populated by ethnic minorities. |
| Keywords: | epidemics; multinational enterprises; land grabbing; palm oil |
| JEL: | C23 F23 O13 |
| Date: | 2022–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117802&r=env |
| By: | Stefano Clò (Department of Economics and Management, University of Florence, Italy); Tommaso Reggiani (Cardiff University-Cardiff Business School, Masaryk University, IZA, United Kingdom); Sabrina Ruberto (Department of Human and Social Sciences, University of Naples L’Orientale, Italy;) |
| Abstract: | This paper questions whether informative feedback on consumption can nudge water saving behavioral change. For this purpose, we launched a five-month online information campaign which involved equipping around 1, 000 households located in the province of Milan (Italy) with a smart meter. Treated households received monthly reports via email on their per capita daily average water consumption, which included a social comparison component (consumption class size). The difference-in-differences analysis showed that, compared to the control group, treated units reduced their daily per capita water consumption by more than 10% (22 liters or 5.8 gallons). This additional water saving increased with the number of monthly reports, though it did not persist two months after the campaign expired. The impact of the campaign was heterogeneous across consumption classes, while a Regression Discontinuity Design analysis showed that different feedback on consumption class size differentially affected water saving at the margin. Finally, being able to observe the email opening rate, we complemented the ITT analysis by developing a Per Protocol (PP) analysis, where non-adherent units were excluded from the treated group. Both ITT and PP provide consistent conclusions, thus augmenting the level of confidence in the study results. |
| Keywords: | water saving, nudging, field experiment, online information campaign, information feedback |
| JEL: | C93 H41 L95 Q25 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:mub:wpaper:2023-02&r=env |
| By: | Bernard Gazier (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Frédéric Bruggeman |
| Date: | 2022–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-03900330&r=env |
| By: | Cevik, Derya; Gerards Iglesias, Simon |
| Abstract: | Der Vormarsch der Autokratien weltweit nimmt zu. Ob Bevölkerungsentwicklung, Wirtschaftsleistung oder CO2-Emissionen: die Anteile von autokratisch regierten Ländern stiegen in den vergangenen zwanzig Jahren kontinuierlich an. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:992022&r=env |
| By: | Nabeel, Rao |
| Abstract: | Business and investment in any area requires the provision of an appropriate and secure institutional environment. One of the factors that helps to expand businesses and increase corporate profits is the right business environment. Avoiding complicated administrative bureaucracy, lending and credit, proper international trade, and the ease of obtaining the necessary permits will be helpful in this regard. On the other hand, businesses can perform better in a happy and stress-free environment. Happiness is an emotional state characterized by feelings of joy, satisfaction, contentment, and fulfillment. While happiness has many different definitions, it is often described as involving positive emotions and life satisfaction. The purpose of the present study is to investigate the relationship between the business environment and happiness indicators with corporate profitability. For this purpose, 175 top companies in the world from 2013 to 2018 that were profitable among the top 500 companies each year were selected as the statistical population. World Happiness annual report, Doing Business annual reports, and Fortune site were used to collect the data. Also the data analysis was done according to the panel data method using Stata software. The results shows that in general, there is a positive relationship between business environment and happiness indicators corporate profitability. |
| Date: | 2023–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:zf9ar&r=env |
| By: | Andreas Niedermayr; Jan Landert; Fabrizio Albanito; Johannes Carolus; Yann Desjeux (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Julia Heinrichs; Andrea Hrabalova; Philippe Jeanneaux; Jochen Kantelhardt; Laure Latruffe (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Jürn Sanders; Lena Schaller; Gerald Schwarz |
| Date: | 2022–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03891655&r=env |
| By: | Martine Audibert (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique, FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Marilys Victoire Razakamanana (UCM - Université catholique de Madagascar); Voahirana Tantely Andrianantoandro (UCM - Université catholique de Madagascar) |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03904397&r=env |
| 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: | While economists in the past tended to assume that individual preferences, including risk preferences, are stable over time, a recent literature has developed and indicates that risk preferences respond to shocks. This paper utilizes a natural experiment with covariate (drought) and idiosyncratic shocks in combination with an independent field risk experiment. The risk experiment uses a Certainty Equivalent - Multiple Choice List (CE-MCL) approach and is played 1-2 years after the subjects were (to a varying degree) exposed to a covariate drought shock or idiosyncratic shocks. The experimental approach facilitated a comprehensive assessment of shock effects on experimental risk premiums with varying probabilities of good and bad outcomes. The experiment also facilitates the estimation of the utility curvature in an Expected Utility (EU) model, and alternatively, separate estimation of probability weighting and utility curvature in three different Rank Dependent Utility (RDU) models with a two-parameter Prelec probability weighting function. Our study is the first to comprehensively test the theoretical predictions of Gollin and Pratt (1996) versus Quiggin (2003). Gollin and Pratt (1996) build on EU theory and state that an increase in background risk will make subjects more risk averse while Quiggin (2003) states that an increase in background risk can enhance risk-taking in certain types of non-EU models. We find strong evidence that such non-EU preferences dominate in our sample and can explain the surprising result. In our sample of resource-poor young adults living in a risky semiarid rural environment in Sub-Saharan Africa, we find that the covariate drought shock had negative effects on risk premiums and the utility curvature and caused an upward shift in the probability weighting function. To our knowledge, this is the first paper to carry out such a rigorous test of a shock effect on utility curvature and probability weighting. |
| Keywords: | Covariate shocks; Idiosyncratic shocks; Stability of risk preference parameters; Field experiment; Ethiopia |
| JEL: | C93 D81 |
| Date: | 2023–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsclt:2023_003&r=env |