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on Resource Economics |
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Issue of 2022‒02‒14
six papers chosen by |
| By: | William Wills (UFRJ - Universidade Federal do Rio de Janeiro); Emilio Lebre La Rovere (UFRJ - Universidade Federal do Rio de Janeiro); Carolina Grottera (UFRJ - Universidade Federal do Rio de Janeiro); Giovanna Ferrazzo Naspolini (UFRJ - Universidade Federal do Rio de Janeiro); Gaëlle Le Treut (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); F. Ghersi (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); Julien Lefèvre (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); Carolina Burle Schmidt Dubeux (UFRJ - Universidade Federal do Rio de Janeiro) |
| Abstract: | Curbing GHG emissions while preserving economic growth is one of the main challenges that developing countries are facing to meet the Paris Agreement commitments. Brazil's NDC target aims to reduce economy-wide absolute levels of GHG emissions by 37% in 2025 and 43% in 2030, compared to 2005 emissions. In this paper, we compare command-and-control and carbon pricing policies to induce the Brazilian economy to meet its NDC targets. We focus on analysing synergies and trade-offs in macroeconomic and social development, captured by economic growth and income distribution while reducing GHG emissions. By integrating a series of sectoral models and a computable general equilibrium (CGE) model, we develop and run different policy scenarios that simulate a set of carbon pricing schemes in Brazil. Our analysis shows that NDC implementation in Brazil under carbon pricing policies allows the country to meet its targets and improve economic and social indicators compared to a command-and-control policy. With about the same GHG emissions up to 2030, important macroeconomic and social co-benefits can be achieved under a carbon pricing policy in Brazil, allowing for reduced welfare losses against business-as-usual trends. Key policy insights Carbon pricing policies are more cost-effective to meet NDC targets in Brazil up to 2030, resulting in higher GDP and household income, in comparison to other individual policy instruments, including command-and-control and subsidies to investments. A carbon price of about 10 USD/tCO2e, combined importantly with deforestation rates under control, would allow Brazil to meet its NDC targets. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03500923&r= |
| By: | Thilo K.G. Haverkamp (University of Kassel); Heinz Welsch (University of Oldenburg); Andreas Ziegler (University of Kassel) |
| Abstract: | Based on representative data for 1614 citizens in Germany, this paper empirically examines the relationship between different types of environmental protection activities and subjective well-being (SWB) in terms of life satisfaction by specifically considering the role of economic preferences for this relationship. With respect to pro-environmental behavior, we differentiate between stated non-climate environmental and climate protection activities as well as revealed climate protection activities, which are measured in an incentivized donation experiment and thus are more meaningful than stated climate protection activities. Our empirical analysis reveals that climate protection activities are more robustly and more strongly positively correlated with life satisfaction than non-climate environmental protection activities. Furthermore, not only stated climate protection activities, but also revealed climate protection activities are significantly positively correlated with life satisfaction. These results suggest that climate protection activities lead to stronger warm glow feelings and reputation gains than non-climate environmental protection activities. Our empirical analysis additionally shows that economic preferences play an important role since especially patience and trust, but also risk-taking preferences and (less robust) altruism are significantly positively correlated with life satisfaction. In particular, economic preferences are also relevant for the relationship between pro-environmental behavior and life satisfaction. When economic preferences are included in the econometric analysis, the estimated correlations between climate protection activities and life satisfaction become weaker and the estimated correlation between non-climate environmental protection activities and life satisfaction even becomes insignificant. These results strongly suggest omitted variable biases in cross-sectional econometric analyses of the relationship between pro-environmental behavior and SWB when economic preferences are not included as control variables. |
| Keywords: | Subjective well-being; life satisfaction; pro-environmental behavior; incentivized donation experiment; economic preferences |
| JEL: | I31 Q54 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202204&r= |
| By: | Eftichios S. Sartzetakis (Department of Economics, University of Macedonia); Anastasios Xepapadeas (Department of International and European Economic Studies, Athens University of Economics and Busines); Athanasios Yannacopoulos (Department of Statistics, Athens University of Economics and Business) |
| Abstract: | Continuously increasing consumption of material goods drives current resource and environmental crises, including climate change and loss of biodiversity. Technology o¤ers solutions, the development and the adoption of which though is not at the speed required to address the crises. Therefore, demand side responses have to be triggered using policies with economists suggesting the use of price signals. Increases in fuel prices during the last decade in both Europe and North America though, have not yielded the expected reductions in the fuel economy. Furthermore, ambitious increases in fuel prices have resulted in considerable opposition, especially by low-income people. The present paper o¤ers an explanation for the reduced e¤ectiveness of environmental taxation by focusing on relatively high-income individuals whose consumption of highly polluting material goods is driven by motivations to improve their social status. Furthermore, the paper shows that complementing the tax with information provision aiming at moderating status seeking overconsumption improves social welfare. Decoupling consumption of highly polluting material goods from social status in individuals?well-being, through information campaigns and/or adver-tisement, could have a substantial environmental e¤ect directly and also indirectly by improving the e¤ectiveness of taxation. |
| Keywords: | status-seaking, replicator dynamics, information provision, environmental taxation |
| JEL: | Q53 Q58 D62 D82 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2022_01&r= |
| By: | Eftichios Sartzetakis; Anastasios Xepapadeas; Athanasios Yannacopoulos |
| Abstract: | Continuously increasing consumption of material goods drives current resource and environmental crises, including climate change and loss of biodiversity. Technology offers solutions the development and the adoption of which though is not at the speed required to address the crises. Therefore, demand side responses have to be triggered and the most common economic suggestion is to use price signals. Increases in fuel prices during the last decade in both Europe and North America though, have not yielded the expected reductions in the fuel economy. Furthermore, ambitious increases in fuel prices have resulted in considerable opposition, especially by low-income people. The present paper offers an explanation for the reduced effectiveness of environmental taxation by focusing on relatively high-income individuals whose consumption of highly polluting material goods is driven by motivations to improve their social status. Furthermore, the paper shows that complementing the tax with information provision aiming at moderating status seeking overconsumption improves social welfare. Convincing people, through information campaigns and/or advertisement that consuming highly polluting material goods does not improve their social status could have a substantial effect which perfectly complements taxation, improving actually its effectiveness. |
| Keywords: | status-seaking, replicator dynamics, information provision, environmental taxation |
| JEL: | Q53 Q58 D62 D82 |
| Date: | 2022–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2207&r= |
| By: | Max Franks (Potsdam Institute for Climate Impact Research, Technische Universität Berlin); Matthias Kalkuhl (Mercator Research Institute on Global Commons and Climate Change, University of Potsdam); Kai Lessmann (Potsdam Institute for Climate Impact Research) |
| Abstract: | Carbon dioxide removal (CDR) moves atmospheric carbon to geological or land-based sinks. In a first-best setting, the optimal use of CDR is achieved by a removal subsidy that equals the optimal carbon tax and marginal damages. We derive second-best subsidies for CDR when no global carbon price exists but a national government implements a unilateral climate policy. We find that the optimal carbon tax differs from an optimal CDR subsidy because of carbon leakage, terms-of-trade and fossil resource rent dynamics. First, the optimal removal subsidy tends to be larger than the carbon tax because of lower supply-side leakage on fossil resource markets. Second, terms-of-trade effects exacerbate this wedge for net resource exporters, implying even larger removal subsidies. Third, the optimal removal subsidy may fall below the carbon tax for resource-poor countries when marginal environmental damages are small. |
| Keywords: | carbon pricing, trade, unilateral climate policy, terms-of-trade effects, removal subsidies |
| JEL: | F18 H23 Q37 Q5 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:43&r= |
| By: | van Vuuren, Aico (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | We investigate whether the Covid-19 pandemic decreased the willingness to pay for urban amenities such as restaurants, cinemas and theaters. We do this by using a hedonic pricing model in combination with a time-gradient difference-in-difference approach. We use a data set that contains virtually all apartments for sale in the larger Stockholm area. We use a very detailed and exible definition of density of urban amenities based on the exact location of these amenities and the walking distance from the apartments to these amenities. We find a decrease of 1.9 percent of apartments that we label as amenity rich. |
| Keywords: | Covid-19; urban economics; amenities |
| JEL: | R00 R23 R30 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0818&r= |