|
on Agricultural Economics |
|
Issue of 2024‒01‒01
29 papers chosen by |
| By: | Hugo Valin; Ben Henderson; Jussi Lankoski |
| Abstract: | Reforming agricultural support is increasingly considered a viable means to enhance agriculture’s contribution to climate change mitigation, while fulfilling broader food systems policy objectives related to food security and livelihoods. This study uses a new computable general equilibrium model to investigate a set of global policy reform scenarios that reorientate governments’ budgetary transfers to agriculture to reduce greenhouse gas emissions. The results suggest that removing budgetary support globally would reduce agricultural emissions by 2.1% with potential negative effects on food supply. Reorienting existing support, instead, could have significantly stronger effects: decoupling payments from production and tying these to suitable agri-environmental practices could raise emission reduction to over 4% without harming food supply. Targeted investments in productivity and abatement technologies could bring additional emission savings in the long term with co-benefits for food security. Overall, combining green decoupling and investment policies in OECD countries would reduce global agricultural emissions by 5% – or by 11% if extended to other regions – while balancing outcomes across the three dimensions of the food systems’ triple challenge. |
| Keywords: | Agricultural policy, Computable general equilibrium, Domestic support, Greenhouse gas emissions |
| JEL: | C68 Q11 Q18 Q54 |
| Date: | 2023–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:206-en&r=agr |
| By: | Qian Chen; Jaume Freire González; Donglan Zha |
| Abstract: | Agriculture is a water-intensive industry; therefore, for policymakers trying to achieve a reduction in water use, the development of agricultural water-saving irrigation technologies to improve water utilization efficiency is of considerable interest. However, the real effect of technological progress on water savings falls short of expectations because of the existence of the rebound effect. This paper estimates the agricultural water rebound effect (AWRE) in China using a sequential Malmquist index and data of 31 provinces from 2002 to 2020. Furthermore, a Logit model is used to analyze the factors influencing the water rebound effect. The results suggest that the average AWRE ranges from -0.43 to 2.41 in Chinese provinces. Twenty-two provinces exhibit a partial rebound effect, while seven and two provinces exhibit a backfire and super conservation effect, respectively. Moreover, AWRE fluctuated around 0.5 from 2003 to 2013 and increased over time from 2015 to 2020. Additionally, water resource endowment has a negative effect on AWRE, while grain-crop ratio, the income of rural residents, and the irrigation infrastructure level have a positive effect on AWRE. Based on these results, policy implications are derived to mitigate AWRE in China. |
| Keywords: | agricultural water use, Rebound effect, technological progress, sequential Malmquist index, logit model |
| JEL: | E23 Q16 Q25 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1415&r=agr |
| By: | Lamonaca, Emilia; Seccia, Antonio; Santeramo, Fabio Gaetano |
| Abstract: | The global wine trade is interested by significant changes since a few decades, due to new productive scenarios induced by climate change and to (rapidly) evolving trade and policy regimes. We investigate how these changes are altering trade dynamics. Following a gravity-type approach, we find that higher temperatures are beneficial for the terms of trade, and are boosting trade values. As for policy interventions, the impact of technical measures on trade values is heterogeneous across objectives: While technical measures tend to friction trade, the environment-related policies show pro-trade effects. |
| Keywords: | Climate change; Environmental measure; Technical barrier to trade |
| JEL: | F13 F18 Q17 Q18 Q56 |
| Date: | 2023–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119296&r=agr |
| By: | Mathias Reynaert; Eduardo Souza-Rodrigues; Arthur A. van Benthem |
| Abstract: | The world has pledged to protect 30 percent of its land and waters by 2030 to halt the rapid deterioration of critical ecosystems. We summarize the state of knowledge about the impacts of protected area policies, with a focus on deforestation and vegetation cover. We discuss critical issues around data and measurement, identify the most commonly-used empirical methods, and summarize empirical evidence across multiple regions of the world. In most cases, protection has had at most a modest impact on forest cover, with stronger effects in areas that face pressure of economic development. We then identify several open areas for research to advance our understanding of the effectiveness of protected area policies: the use of promising recent econometric advancements, shifting focus to direct measures of biodiversity, filling the knowledge gap on the effect of protected area policy in advanced economies, investigating the long-run impacts of protection, and understanding its equilibrium effects. |
| Keywords: | protected areas, land protection, deforestation, biodiversity |
| JEL: | Q23 Q24 Q57 R14 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10773&r=agr |
| By: | Gil-Clavel, Sofia (Max Planck Institute for Demographic Research); Wagenblast, Thorid; Filatova, Tatiana |
| Abstract: | Climate change is expected to affect agriculture worldwide adversely. This is especially true if farmers fail to adapt, at least incrementally, early in the twenty-first century and fail to pursue transformational adaptation necessary to withstand changes later this century. Many publications discuss the underlying mechanisms of autonomous private adaptation to climate change in quantitative, qualitative, and mixed methods terms. However, the review of empirical evidence on adaptation is normally performed on articles’ quantitative data using metanalysis, ignoring much of the vast literature evidence coming from qualitative work. We address this gap by performing a comparative analysis of factors associated with farmers’ climate change adaptation in both quantitative and qualitative literature using Natural Language Processing. By retrieving relevant peer review publications from Scopus, we derive a database with metadata from both quantitative and qualitative articles’ findings. We then use this as an input for generalized linear models to analyze whether farmers’ climate change adaptation factors differ by type of adaptation (incremental vs transformational) or across different regions of the world. Results show that access to information, access to technology, age, economic factors, farming experience, and income are more likely to be associated with transformational adaptation than with incremental adaptation. Regarding world regions, results highlight uneven access to infrastructure, with farmers in the Global North having an advantage, while farmers in the Global South requiring it the most for effective adaptation to changing climate. |
| Date: | 2023–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:3dp5e&r=agr |
| By: | Melaku, Astewale Bimr; Qaim, Matin; Debela, Bethelhem Legesse |
| Abstract: | In many countries of the Global South, agri-food supply chains are transforming rapidly. One important feature of this transformation is growth in certain high-value agricultural subsectors, such as horticulture and cut-flowers for export. Growth in high-value agriculture often creates new employment opportunities, especially for women. More employment can lead to higher rural incomes, but the broader implications for social welfare are not yet sufficiently understood. Here, we use survey data from Ethiopia to investigate the effects of women’s employment in floriculture on child nutrition, focusing on children aged 0-5 years. We develop and estimate endogenous switching regressions to account for possible endogeneity. Our results suggest that maternal employment in floriculture negatively affects child height-for-age and weight-for-age z-scores (HAZ and WAZ). Exploration of the underlying mechanisms reveals that floriculture employment may influence time allocation, dietary quality, income, and female financial autonomy. Maternal employment is negatively associated with time spent on childcare and consumption of animal-sourced foods. |
| Keywords: | Food Security and Poverty |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:338968&r=agr |
| By: | Ferguson, Nathaniel; Seymour, Greg; Azzarri, Carlo |
| Abstract: | Worldwide, cell phones are used by 5.4 billion people. They are becoming increasingly prevalent in the rural areas of low- and middle-income countries (LMICs), providing smallholder farmers with access to agricultural markets. If they reduce information asymmetries between women and men farmers, they can also contribute to closing the gender gap in agricultural productivity. So far, however, digital innovations have had limited success in transforming agricultural systems. This may be due, in part, to the gender gap in cell-phone use. Rural women in LMICs—particularly those with low incomes, low literacy levels, or disabilities—are less likely than rural men to have access to cell phones, the Internet, digital currency, or other digital services. This policy note summarizes research intended to shed light on the impact of cell-phone ownership and use on the gender gap in agricultural productivity in LMICs. |
| Keywords: | KENYA; EAST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; communication technology; rural areas; smallholders; agriculture; markets; agricultural productivity; gender |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gcanpn:17&r=agr |
| By: | Pennerstorfer, Dieter |
| JEL: | L13 L25 Q12 R14 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277630&r=agr |
| By: | Rodríguez-Pose, Andrés; Bartalucci, Federico |
| Abstract: | The impacts of climate change are unevenly distributed across territories. Less is known about the potential effects of climate policies aimed at mitigating the negative consequences of climate change while transitioning economies towards low-carbon standards. This paper presents an analytical framework for identifying and assessing the regional impacts of the green transition. We develop a Regional Green Transition Vulnerability Index, a composite measure of the regional vulnerability of European regions to the socio-economic reconfigurations prompted by the green transition. The index brings to light strong regional variations in vulnerability, with less developed, peri-urban and rural regions in Southern and Eastern Europe more exposed to the foreseeable changes brought about by the green transition. We also draw attention to the potential rise of pockets of growing ‘green’ discontent, especially if the green transition contributes, as is likely to be the case, to leaving already left-behind regions further behind. |
| Keywords: | green transition; environment; left-behind regions; development trap; European Union |
| JEL: | O56 R11 |
| Date: | 2023–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120536&r=agr |
| By: | Amare, Mulubrhan; Andam, Kwaw S.; Mavrotas, George; Ogunniyi, Adebayo |
| Abstract: | Policymakers in Nigeria and other countries in Africa south of the Sahara (SSA) are relying on agriculture to generate employment for the growing youth population. However, there is concern that youth engagement in agricultural production is declining in favor of other economic activities. “Rural-urban-rural†migra tion occurs mainly during intercrop intervals, as the cyclical nature of crop-related activities prompts African youth to seek more economic stability from nonagricultural employment during the off season (Yeboah and Jayne 2018). While comprehensive data on youth’s departure from Nigeria’s agriculture sector remain elusive, various studies indicate a heightened exit rate, particularly post-discovery of oil resources, and a notable 63 percent reduction in the time Nigerian youth spend in farming activities compared to adults (UNECA 2017). In general, discourse on youth unemployment, with specific pertinence to Africa, underscores the pivotal role of different economic structural transformations that are hindering the formation of “quality†employment opportunities (McMillan, Rodrik, and Verduzco-Gallo 2014). |
| Keywords: | NIGERIA; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; agriculture; youth employment; migration; economic aspects; land ownership; urbanization; education |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:polbrf:december2023&r=agr |
| By: | Potter, Nicholas A.; Hrozencik, R. Aaron; Wallander, Steven |
| Abstract: | The USDA’s 2019 Survey of Irrigation Organizations provides information on the quantities of water supplied to and delivered by irrigation water delivery organizations. This report examines these delivery organizations inflows and outflows and the extent of water transfers both within and across delivery organizations. Inflows to irrigation water delivery organizations make up nearly half of the average surface freshwater withdrawals in the United States and are especially important in more arid western regions. Much of the water flowing into delivery organizations’ systems comes from Federal water projects or is directly withdrawn from natural surface water bodies. Most water delivered by organizations goes to farms and ranches, with the remainder going to municipalities and domestic or other users. Among those organizations engaging in water transfers in 2019, transfers between water users within an organization were more common than external transfers (leases) between delivery organizations and other organizations or entities. However, since external transfers tend to be large quantities of water, the total amount of water transferred by users within organizations was smaller than the total water leased by organizations. |
| Keywords: | Agribusiness, Crop Production/Industries, Marketing, Resource /Energy Economics and Policy |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uerseb:338976&r=agr |
| By: | Amsalu Woldie Yalew (Ca’ Foscari University of Venice, Euro-Mediterranean Center on Climate Change (CMCC)); Victor Nechifor (European Commission - JRC); Emanuele Ferrari (European Commission - JRC) |
| Abstract: | The ongoing Russia’s war of aggression against Ukraine is disrupting the global supply chains of essential commodities resulting in a cascading effects on the global economy. This study examines the implications of Russia’s military aggression for Ethiopian. It assesses the consequences of world market price increases for wheat, fertilizer, and petroleum on Ethiopia’s macro economy, production, and households’ consumption. The study employs a computable general equilibrium (CGE) model calibrated to the 2015/2016 social accounting matrix (SAM) of Ethiopia, updated to 2022 using the recursive dynamic features of the model. The impacts of the world price increases are presented as percentage changes to a counterfactual Ethiopian economy in 2022, without accounting for actual and anticipated repercussions from the war. The study finds that GDP, labour wage rates, and households’ consumption decline. The impacts of fertilizer and petroleum price changes are notable and unevenly distributed. Crop growing activities substitute animal manure for inorganic fertilizers. The effect on urban households’ consumption more severe than on rural households. Rising petroleum prices increase the demand for ethanol providing motives to expand sugar manufacturing. Increasing inorganic fertilizer prices tighten the competition for the use of animal manure between cropping activities and households. Promotion of biogas digesters among rural households could encourage the optimal use of animal manure. |
| Keywords: | Recursive Dynamic CGE Model, Ethiopia, international trade, Ukraine invasion |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:eapoaf:202306&r=agr |
| By: | Alanda Venter (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Roula Inglesi-Lotz (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa) |
| Abstract: | Climate change is one of the most significant market failures transpiring and hampering human development progress. Government intervention is required to correct this market failure to avoid catastrophic repercussions. The UNDP indicated climate change has become a ``defining human development issue of our generation" (United Nations Development Program, 2022). Given the threat that climate change poses to human development, it is imperative to find effective ways to mitigate its targeted effects on human development. The study investigates how institutions might assist in reducing the harmful impacts of emissions on human development. Utilizing panel data analysis as the methodological foundation this study uses 36 countries for the time period 2003 to 2018. The results indicate that institutions can be a robust instrument in modulating climate change effects. |
| Keywords: | Climate Change, Institutions, Emissions, Institutional Quality, Inclusive Human Development, Inequality |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202334&r=agr |
| By: | Jose Ignacio Jimenez Blanco (Universidad Complutense, Madrid, Spain.) |
| Abstract: | This work analyzes long-term changes in land use (from the mid-18th century to the first third of the 20th century) in the farmlands of Jerez de la Frontera. Of the various elements to consider, the analysis focuses on the types of rotation used and, especially, on the evolution of fallow and temporary wasteland. The main conclusion is that there was an intensification of land cultivation in two different stages. First during the first half of the 19th century, within the framework of organic agriculture, without yields suffering, simultaneously with the consolidation of large agricultural and livestock operations, oriented to the production of wheat. This trend was resumed and advanced in the first third of the 20th century (2nd stage), in full transition towards inorganic agriculture, with the novelty that the intensification was accompanied by a significant increase in land productivity. There are indications that what happened in Jerez could also occur in other parts of the Andalusian countryside, although with a certain time lag. |
| Keywords: | Agriculture, Land use, Cereal cropping, Corn yields, Fallow, Jerez de la Frontera. |
| JEL: | N53 N54 O47 Q15 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ahe:dtaehe:2308&r=agr |
| By: | Daniele Valenti (Department of Management, Economics and Industrial Engineering, Politecnico di Milano School of Management and Fondazione Eni Enrico Mattei); Danilo Bertoni (Department of Environmental Science and Policy, University of Milan); Daniele Cavicchioli (Department of Environmental Science and Policy, University of Milan); Alessandro Olper (Department of Environmental Science and Policy, University of Milan) |
| Abstract: | We present a Bayesian structural Vector Autoregressive model of the global wheat market to examine the relative importance of supply and demand shocks, which are interpreted as the fundamental driving forces of wheat price. To our knowledge, this is the first SVAR analysis that jointly considers (i) a Bayesian non-recursive specification, (ii) production and inventories as endogenous variables (iii) and an inventory-based detection strategy. Our main results indicate that: (i) the posterior median estimates for the price elasticity of supply and demand are mostly similar in their order of magnitude but opposite in signs (0.19 for supply and -0.20 for demand); (ii) the price and the inventories respond to global wheat market shocks differently, depending on the type of structural shock. We also show that the results obtained from Cholesy-type identified annual SVAR models for wheat market are potentially misleading and difficult to reconcile with the economic theory of competitive storage. Finally, we illustrate how unpredictable shifts in supply and demand contributed to the dynamic of wheat price between 2000 and 2022. |
| Keywords: | Bayesian structural VAR model, Price analysis, Global wheat market |
| JEL: | C11 C32 Q11 Q13 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2023.21&r=agr |
| By: | Ceglar, Andrej; Boldrini, Simone; Lelli, Chiara; Parisi, Laura; Heemskerk, Irene |
| Abstract: | Biodiversity – the variety of life on Earth – is essential for sustaining the healthy ecosystems that our economy and banks depend on. Despite the clear benefits of a healthy natural world for people and the economy, humanity is putting immense pressure on nature and biodiversity. Economic activities that rely on healthy nature are often responsible for generating environmental pressures. It is important to assess the impact that firms and financial institutions have on nature degradation, in order to reveal their exposure to transition risk and highlight the need to move towards an economic system that values nature, rather than putting it at risk. This study analyses the contribution of euro area economic activities – and the bank loans provided to enable them – to biodiversity loss by estimating biodiversity footprints. The datasets we use account for approximately €4.3 trillion in corporate loans to around 4.2 million companies located in the euro area, issued by more than 2, 500 unique consolidated euro area banks. Considering two primary drivers of biodiversity loss (land-use change and climate change), the results show that the economy has had a significant impact on biodiversity, equivalent to the loss of 582 million hectares of “pristine” natural areas worldwide. Even though the impact on biodiversity is highest in Europe, the supply chains of companies are important determinants of their indirect biodiversity footprint worldwide. Asia and Africa have the largest areas impacted by activities that take place in company supply chains. Additionally, financing of economic activities with a high global impact on nature is concentrated: the ten banks with the highest financing share are responsible for financing around 40% of the total global impact of euro area firms. [...] JEL Classification: C55, G21, G38, Q5 |
| Keywords: | biodiversity loss, climate-nature nexus, economy, impact, input-output table, materiality score, nature degradation |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2023335&r=agr |
| By: | Etsuyo Michida (Institute of Development Economies, Japan External Trade Organization (IDE-JETRO)) |
| Abstract: | National sustainability certification schemes for the palm oil sector such as Indonesian Sustainable Palm Oil (ISPO), and Malaysia Sustainable Palm Oil (MSPO) have emerged to address negative environmental externalities and increase productivity of the sector. However, their reach does not extend to international markets, with differing aspirations and compliance mechanisms compared to the globally recognised private certification scheme. Benchmarking and harmonisation across the schemes could have multiple benefits. First, it decreases fragmentation of standards and allows procurement of certified palm oil at lower costs. Second, a harmonised regional scheme rather than multiple national schemes makes communication on the improvement of sustainability standards with global users easier, while involvement of users in their revision is expected to lead to their global recognition. Third, having a harmonised ASEAN standard can help other member countries in the region or countries from other regions to benchmark and adopt it as a proxy global standard, which prevents further fragmentation and proliferation of local standards. Making sustainable palm oil certifications acceptable for international markets is expected to pave the way for similar programmes for other agricultural products. Lastly, as the proliferation of standards leads to confusion amongst consumers, a harmonised standard improves understanding and clarifies the expected impact on the palm oil sector |
| Keywords: | Certification, Palm oil, Standards, Sustainability |
| JEL: | Q24 Q21 P13 P28 |
| Date: | 2023–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-04&r=agr |
| By: | Ranjula Bali Swain; Aimable Nsabimana |
| Abstract: | We investigate if financial inclusion leads to improved nutrition in rural Rwanda, using Rwandan Integrated Household Living Conditions surveys (2013/14 and 2016/17). Our empirical evidence shows a robust positive impact of financial inclusion efforts undertaken by formal financial institutions, though informal institutions such as tontines are ineffective in improving food expenditure or nutrition. Furthermore, the study reveals heterogeneous marginal effects of financial inclusion in reducing the gender gap between the food demand and nutrition of female- and male-headed households. |
| Keywords: | Financial inclusion, Food security, Nutrition, SDGs, Rwanda |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2023-141&r=agr |
| By: | Holden, Stein T. (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Makate, Clifton (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Tione, Sarah (Centre for Land Tenure Studies, Norwegian University of Life Sciences) |
| Abstract: | We assess the reliability of measured farm sizes (ownership holdings) in the Living Standard Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA) in Ethiopia and Malawi based on three survey rounds (2012, 2014, 2016) in Ethiopia and four rounds (2010, 2013, 2016, 2019) in Malawi. By using the balanced panel of households that participated in all the rounds, we utilized the within-household variation in reported and measured ownership holdings that, to a large extent, were measured with GPSs and/or with rope and compass. While this gives reliable measures of reported holdings, we detect substantial under-reporting of parcels over time within households. We find that the estimated farm sizes within survey rounds are substantially downward biased due to systematic and stochastic under-reporting of parcels. Such biases are substantial in the data from both countries, in all survey rounds, and in all regions of each country. Based on the analyses, we propose that the maximum within-household reported farm sizes over several survey rounds provide a more reliable proxy for the actual farm size distributions, as these maximum sizes are less likely to be biased due to parcel attrition. The ignorance of this non-classical measurement error is associated with a downward bias in the range of 20-30% in average and median farm sizes and an upward bias in the Gini-coefficients for farm size distributions. We propose ideas for follow-up research and improvements in collecting these data types and draw some policy implications. |
| Keywords: | Farm size measurement; missing data; measurement error; LSMS-ISA; Ethiopia; Malawi |
| JEL: | C81 C83 Q12 Q15 |
| Date: | 2023–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsclt:2023_007&r=agr |
| By: | Amendola, Nicola |
| Abstract: | The paper compares two alternative methods of estimating the food poverty line, the “food basket method” (FB) and the “minimum cost method” (MC), and it shows that under plausible restrictions on households’ preferences and consumption behavior the FB method tends to overestimate the food poverty line with respect to the MC method. The overestimation is also transmitted to the poverty line to an extent that depends on the food expenditure share, the elasticity of the non-food expenditure share with respect to food expenditure and the elasticity of total expenditure with respect to food expenditure. |
| Keywords: | Poverty Measurement, Welfare |
| JEL: | I32 |
| Date: | 2023–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119240&r=agr |
| By: | Kingsley I. Okere (Gregory University, Uturu, Nigeria); Stephen K. Dimnwobi (Nnamdi Azikiwe University, Awka, Nigeria); Chukwunonso Ekesiobi (Igbariam, Nigeria); Favour C. Onuoha (Evangel University Akaeze, Nigeria) |
| Abstract: | In a rapidly changing world marked by environmental degradation and governance disparities, understanding their impact on African women’s participation in the labor force remains a critical puzzle. This research seeks to unveil the intricate connections between pollution, governance quality, and women’s economic engagement in Africa, shedding light on vital pathways to empower women, mitigate pollution’s impact, and drive sustainable development in the region. Specifically, this study evaluates the impacts of governance quality and environmental pollution on gender economic outcomes in Sub-Saharan Africa (SSA) using data from 28 nations spanning 1996 to 2020. The study employs the dynamic panel threshold model. The key results reveal a negative and significant influence of ecological footprint on female economic participation. Furthermore, the dynamic threshold analysis reveals that environmental degradation undermines female labour engagement irrespective of the threshold level. The study also showed that below the threshold level, the interaction between governance quality variables and the ecological footprint exacerbates the negative impact of the ecological footprint on women’s economic participation. Above the threshold level, the interaction between governance quality variables and the ecological footprint mitigates the negative impact. Overall, key recommendations like improved pollution control measures, inclusive governance, and effecting targeted policies and programs to empower women economically, among others, are proffered to contribute to the improvement in governance, environmental sustainability, and gender economic outcomes in SSA. |
| Keywords: | Governance quality, Environmental pollution, Gender economic outcomes, Sub-Saharan Africa |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:aak:wpaper:23/016&r=agr |
| By: | Vuong, Quan-Hoang; La, Viet-Phuong; Nguyen, Minh-Hoang |
| Abstract: | The importance of addressing the existential threat to humanity, climate change, has grown remarkedly in recent years while conflicting views and interests in societies exist. Therefore, climate change agendas have been weaponized to varying degrees, ranging from the international level between countries to the domestic level among political parties. In such contexts, climate change agendas are predominantly driven by political or economic ambitions, sometimes unconnected to concerns for environmental sustainability. Consequently, it can result in an environment that fosters antagonism and disputes over power and position and increases the risk of prolonged confrontations, hindering the collective global efforts to mitigate and adapt to climate change. Through the current discourse, we aim to provide a preliminary definition of the weaponization of climate change and environmental degradation and examine its risks and consequences on international relations, political dynamics, public perception, and the comprehensive integrity of climate action. We also recommend embracing a globally coordinated, scientifically substantiated approach to circumvent climate change by building an eco-surplus cultural value system. |
| Date: | 2023–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:v9qrm&r=agr |
| By: | Natee Amornsiripanitch; David Wylie |
| Abstract: | This paper combines data on current and future property-level physical risk from major climate-related perils (storms, floods, hurricanes, and wildfires) that owner-occupied single-family residences face with data on local economic characteristics to study the geographic and demographic distribution of such risks in the contiguous United States. Current expected damage from climate-related perils is approximately $19 billion per year. Severe convective storms and inland floods account for almost half of the expected damage. The central and southern parts of the U.S. are most exposed to climate-related physical risk, with hurricane-exposed areas on the Gulf and South Atlantic coasts being the riskiest areas. Relative to currently low-risk areas, currently high-risk areas have lower household incomes, lower labor market participation rates, and lower education attainment, suggesting that the distribution of climate-related physical risk is correlated with economic inequality. By 2050, under business-as-usual emissions, average expected damage is projected to increase monotonically with current average expected damage, which implies that long-term policies that aim to mitigate climate-related physical risk are likely to be progressive. |
| Keywords: | Climate Risk; Physical Risk; Inequality; Housing |
| JEL: | D63 G5 Q54 |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:97399&r=agr |
| By: | Paul HADJI-LAZARO; Julien CALAS; Antoine GODIN; Pamela SEKESE; Andrew SKOWNO |
| Abstract: | This study introduces new methods for evaluating nature-related socioeconomic risks in the South African context, anchored on two main contributions. Firstly, it embarks on a multidimensional analysis of the exposure of several macro-financial and social variables to nature-related risks. Based on Environmentally Extended Input-Output tables and socioeconomic satellite accounts, the analysis identifies how physical and transition risks could exert significant impacts on directly and indirectly sectors essential for domestic and international supply chains but also for employment and fiscal revenues. Secondly, the research extends to a more granular spatially-explicit assessment, at the municipality level, of socioeconomic vulnerabilities related to water scarcity and the protection of terrestrial ecosystems. Results localize socioeconomic exposures through key sectors, especially in Mpumalanga. These two intertwined facets underline the importance of a holistic approach to nature-related risks, combining economists and ecologists' knowledge, and able to emphasize the intertwined goals of economic prosperity, social stability, and environmental sustainability. |
| Keywords: | Afrique du Sud |
| JEL: | Q |
| Date: | 2023–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:avg:wpaper:en16256&r=agr |
| By: | Ha Thi Thanh Doan (Economic Research Institute for ASEAN and East Asia); Kunhyui Kim (Nagoya University); Mahdi Ghodsi (The Vienna Institute for International Economic Studies) |
| Abstract: | : Non-tariff measures (NTMs) constitute a grey area where trade policy meets public policy goals. NTMs comprise a diverse set of regulatory policy measures, including testing and certification, rather than traditional international trade policy measures such as tariffs or tariff-rate quotas. Regulatory NTMs protect plants, animals, humans, and consumers from imported harmful products containing diseases; regulate the use of hazardous substances in production; ensure conformity with common standards; and protect the environment. Trade literature has focused on the impact of NTMs on trade flows, whereas few studies address the potential welfare-improving effects of these measures. This paper fills this gap by examining the relationship between NTM applications and the quality of traded products. Two questions are addressed. First, do more or additional burdens of NTMs in the foreign market incur a higher quality of exported products? Second, is the quality impact of NTMs in different sectors different between food and other manufacturing goods? We adopt a recently developed indicator to capture the additional requirements for exporters stemming from importers' imposition of NTMs, and a quality estimator that controls for price. Our empirical results indicate that, overall, divergence in sanitary and phytosanitary (SPS) measures between the two trading partners reduces the quality of traded goods. Furthermore, while the divergence in SPS measures reduces the quality of traded goods in the manufacturing sector, the divergence in technical barriers to trade shows no statistically significant impact on the quality of traded goods between the two trading partners. The results imply that additional costs from technical barriers to trade are negligible compared with those from SPS measures in the manufacturing sector. |
| Keywords: | additional compliance requirements indicator, international trade, non-tariff measures, quality of traded goods |
| JEL: | F13 F14 |
| Date: | 2023–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-02&r=agr |
| By: | Mr. Damien Capelle; Mr. Divya Kirti; Mr. Nicola Pierri; Mr. German Villegas Bauer |
| Abstract: | Using self-reported data on emissions for a global sample of 4, 000 large, listed firms, we document large heterogeneity in environmental performance within the same industry and country. Laggards—firms with high emissions relative to the scale of their operations—are larger, operate older physical capital stocks, are less knowledge intensive and productive, and adopt worse management practices. To rationalize these findings, we build a novel general equilibrium heterogeneous-firm model in which firms choose capital vintages and R&D expenditure and hence emissions. The model matches the full empirical distribution of firm-level heterogeneity among other moments. Our counter-factual analysis shows that this heterogeneity matters for assessing the macroeconomic costs of mitigation policies, the channels through which policies act, and their distributional effects. We also quantify the gains from technology transfers to EMDEs. |
| Keywords: | Climate Change; Productivity; Technology Adoption; Capital Vintages; Emissions |
| Date: | 2023–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/242&r=agr |
| By: | CAPPELLANO Francesco; MARQUES SANTOS Anabela (European Commission - JRC); DOTTI Nicola Francesco |
| Abstract: | This paper provides quantitative evidence on the geography of regional readiness to tackle climate change using data from France, Germany, Italy, Poland, and Spain. Following Cappellano et al. (2022), we estimate a composite indicator that reports the situation of regions in these countries between 2009 and 2020 regarding the directionality of their Science and Technological Innovation and policy priorities to fight climate change. Using regression analysis, we assess the relationship between such directionality and the degree of risk of disasters (coastal floods, river floods, and landslides) they face in the short, medium, and long-term as a result of climate change effects. Results shows a positive relationship between estimated risk projection and climate change preparedness. However, a more in-depth analysis demonstrates the complexity of such geographical “problem-solution convergence”. Indeed, more developed regions are the ones that appear more ready to tackle climate change effects compared with transition and less developed regions. |
| Keywords: | Climate Change; Innovation; Public Policy; Regional Economics; Europe |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:termod:202310&r=agr |
| By: | Odersky, Moritz; Löffler, Max |
| JEL: | Q52 Q54 D30 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277684&r=agr |
| By: | Fangzhi Wang (School of Management and Economics; Beijing Institute of Technology); Hua Liao (School of Management and Economics; Beijing Institute of Technology); Richard S.J. Tol (Department of Economics, University of Sussex, BN1 9SL Falmer, United Kingdom) |
| Abstract: | We investigate optimal carbon abatement in a dynamic general equilibrium climate-economy model with endogenous structural change. By differentiating the production of investment from consumption, we show that social cost of carbon can be conceived as a reduction in physical capital. In addition, we distinguish two final sectors in terms of productivity growth and climate vulnerability. We theoretically show that heterogeneous climate vulnerability results in a climate-induced version of Baumol’s cost disease. Further, if climate-vulnerable sectors have high (low) productivity growth, climate impact can either ameliorate (aggravate) the Baumol’s cost disease, call for less (more) stringent climate policy. We conclude that carbon abatement should not only factor in unpriced climate capital, but also be tailored to Baumol’s cost and climate diseases. |
| Keywords: | Structural change, Climate capital, Integrated assessment model, Social cost of carbon, Baumol’s cost disease |
| JEL: | O41 O44 Q54 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:0823&r=agr |