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on Resource Economics |
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Issue of 2021‒05‒17
three papers chosen by |
| By: | Julia Bahlmann (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | There is a long debate about potential pollution haven effects existing in the global North and South in the context of rising environmental stringency. This contribution takes a fresh look at intra-OECD foreign direct investment and employs a modern FDI gravity modelling approach to shed more light on these issues. There is clear evidence in favor of the pollution haven hypothesis - countries with weaker environmental policy and regulation are able to attract relatively high FDI inflows so that new challenges for environmental policy and international cooperation in environmental policy have to be considered. As regards environmental policy, more political cooperation between the OECD countries seems to be required in order to prevent or mitigate "quasi-carbon leakage" effects from undermining the effectiveness of environmental and climate policy. The evidence obtained from this analysis of OECD countries suggests the benefit of extending this research in future to other country groups, to include countries in Asia or Latin America and Africa. |
| Keywords: | FDI, Pollution Haven Countries, OECD, Gravity Modelling, Environmental Policy |
| JEL: | F21 Q43 Q50 Q58 C23 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei294&r= |
| By: | Conte, Bruno; Desmet, Klaus; Nagy, Dávid Krisztián; Rossi-Hansberg, Esteban |
| Abstract: | This paper quantitatively assesses the world's changing economic geography and sectoral specialization due to global warming. It proposes a two-sector dynamic spatial growth model that incorporates the relation between economic activity, carbon emissions, and temperature. The model is taken to the data at the 1º by 1º resolution for the entire world. Over a 200-year horizon, rising temperatures consistent with emissions under Representative Concentration Pathway 8.5 push people and economic activity northwards to Siberia, Canada, and Scandinavia. Compared to a world without climate change, clusters of agricultural specialization shift from Central Africa, Brazil, and India's Ganges Valley, to Central Asia, parts of China and northern Canada. Equatorial latitudes that lose agriculture specialize more in non-agriculture but, due to their persistently low productivity, lose population. By the year 2200, predicted losses in real GDP and utility are 6% and 15%, respectively. Higher trade costs make adaptation through changes in sectoral specialization more costly, leading to less geographic concentration in agriculture and larger climate-induced migration. |
| Keywords: | Geography; Global Warming; growth; migration; sectoral specialization; Space; Trade |
| JEL: | F18 O13 O41 Q56 R11 R12 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15491&r= |
| By: | Nicholas Gunby; Tom Coupé (University of Canterbury) |
| Abstract: | Climate change is causing weather-related natural disasters to become both more frequent and more severe. We contribute to the literature that estimates the economic impact of these disasters by using Australian data for the period 2009 to 2018 to estimate the impact of experiencing weather-related house damage on three measures of subjective wellbeing. While there is some evidence that poor people experience a sizeable and statistically significant decrease in subjective wellbeing following weather-related house damage, we find little evidence of a significant or sizable effect on average. In contrast, we find that, on average, both separation and job loss have a large and statistically significant impact on subjective wellbeing. |
| Keywords: | climate change; subjective wellbeing; weather; disasters |
| JEL: | Q54 I31 |
| Date: | 2021–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cbt:econwp:21/06&r= |