nep-env New Economics Papers
on Environmental Economics
Issue of 2013‒10‒11
48 papers chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Hedonic vs Environmental Quality: Which Policy Can Help in Lowering Pollution Emissions? By A. Mantovani; C. Vergari
  2. Population, poverty, and climate change By Das Gupta, Monica
  3. Regional Agreements to Address Climate Change: Scope, Promise, Funding, and Impacts By Iris Butzlaff; Nicole Grunewald; Stephan Klasen
  4. Reducing deforestation and forest degradation: leakage or synergy? By Arild Angelsen; Philippe Delacote
  5. The European Union Emissions Trading System : should we throw the flagship out with the bathwater ? By Frédéric Branger; Oskar Lecuyer; Philippe Quirion
  6. The environment and directed technical change : comment By Jean-Charles Hourcade; Antonin Pottier; Etienne Espagne
  7. Addressing household air pollution : a case study in rural Madagascar By Dasgupta, Susmita; Martin, Paul; Samad, Hussain A.
  8. Combining climate and energy policies : synergies or antagonism ? Modeling interactions with energy efficiency instruments By Oskar Lecuyer; Ruben Bibas
  9. Addressing Global Environmental Externalities: Transaction Costs Considerations By Gary D. Libecap
  10. Ups and downs: How economic growth affects policy interactions By Flues, Florens; Löschel, Andreas; Lutz, Benjamin Johannes; Schenker, Oliver
  11. Can Uncertainty Justify Overlapping Policy Instruments to Mitigate Emissions ? By Oskar Lecuyer; Philippe Quirion
  12. Climate policies as a hedge against the uncertainty on future oil supply By Julie Rozenberg; Stéphane Hallegatte; Adrien Vogt-Schilb; Olivier Sassi; Céline Guivarch; Henri Waisman; Jean-Charles Hourcade
  13. Greenhouse gas mitigation in Chinese agriculture: distinguishing technical and economic potentials By Wen Wang; Frank Koslowski; Dominic Moran; Dali Rani Nayak; Eli Saetnan; Erda Lin; Liping Guo; Guodong Han; Xiaotang Jug
  14. The timing of biological carbon sequestration and carbon abatement in the energy sector under optimal strategies against climate risks By Vincent Gitz; Jean-Charles Hourcade; Philippe Ciais
  15. Environmental innovations and profitability: How does it pay to be green? An empirical analysis on the German innovation survey By Ghisetti, Claudia; Rennings, Klaus
  16. The Prospective Evolution of the Vietnamese Power Sector: The Vulnerability and Externality Analysis By Trinh Hoang Anh Nguyen
  17. Socio-economic Scenario Development for Climate Change Analysis By Elmar Kriegler; Brian-C O'Neill; Stéphane Hallegatte; Tom Kram; Richard-H Moss; Robert Lempert; Thomas J Wilbanks
  18. Nonlinearity, heterogeneity and unobserved effects in the CO2-income relation for advanced countries By Mazzanti, M.; Musolesi, A.
  19. Carbon and energy prices under uncertainty: A theoretical analysis of fuel switching with non-equally efficient power plants By Vincent Bertrand
  20. What if energy decoupling of emerging economies were not so spontaneous ? An illustrative example on India By Sandrine Mathy; Céline Guivarch
  21. Improving the Clean Development Mechanism Post-2012 : A Developing Country Perspective By Nhan-T Nguyen; Minh Ha-Duong; Sandra Greiner; Michael Mehling
  22. Assessing and ordering investments in polluting fossil-fueled and zero-carbon capital By Oskar Lecuyer; Adrien Vogt-Schilb
  23. Readiness and Avoided deforestation policies: on the use of the REDD fund By Philippe Delacote; Gabriela Simonet
  24. Endogenous Structural Change and Climate Targets : Modeling experiments with Imaclim-R By Renaud Crassous; Jean-Charles Hourcade; Olivier Sassi
  25. Using Maps of City Analogues to Display and Interpret Climate Change scenarios and their uncertainty By Sebastian Kopf; Minh Ha-Duong; Stéphane Hallegatte
  26. Venturing into Uncharted Financial Waters : an Essay on Climate-Friendly Finance By Jean-Charles Hourcade; Baptiste Perrissin-Fabert; Julie Rozenberg
  27. Les véhicules électrifiés réduisent-ils les émissions de carbone ? Un raisonnement prospectif By Adrien Vogt-Schilb; Céline Guivarch; Jean-Charles Hourcade
  28. BASIC effect on global climate governance. Power changes and regime shifts By Pierre Berthaud; Tancrède Voituriez
  29. Literature review on fundamental concepts and definitions, objectives and policy goals as well as instruments relevant for socio-ecological transition By Anna Dimitrova; Katarina Hollan; Daphne Laster; Andreas Reinstaller; Margit Schratzenstaller; Ewald Walterskirchen; Teresa Weiss
  30. Integrated Modelling of Economic-Energy-Environment Scenarios - The Impact of China and India's Economic Growth on Energy Use and CO2 Emissions By Fabien Roques; Olivier Sassi; Céline Guivarch; Henri Waisman; Renaud Crassous; Jean-Charles Hourcade
  31. Exploring the potential for energy conservation in French households through hybrid modelling By Louis-Gaëtan Giraudet; Céline Guivarch; Philippe Quirion
  32. Industrial policy in the African context By Stiglitz, Joseph; Lin, Justin; Monga, Celestin; Patel, Ebrahim
  33. The Role of Environmental and Land Transaction Regulations on Agricultural Land Price: The example of Brittany By Latruffe , Laure; Minvie, Jean Joseph; Salanié, Julien
  34. Potential and limitations of bioenergy options for low carbon transitions By Ruben Bibas; Aurélie Méjean
  35. Addressing leakage in the EU ETS : Border adjustment or output-based allocation ? By Stéphanie Monjon; Philippe Quirion
  36. Need a Carbon Tax be Socially Regressive ? True Challenges and Wrong Debates By Emmanuel Combet; Frédéric GHERSI; Jean-Charles Hourcade; Daniel Théry
  37. Mind the rate ! Why rate of global climate change matters, and how much By Philippe Ambrosi
  38. The costs and benefits of white certificates schemes By Louis-Gaëtan Giraudet; Luc Bodineau; Dominique Finon
  39. The costs of climate policies in a second best world with labour market By Céline Guivarch; Renaud Crassous; Olivier Sassi; Stéphane Hallegatte
  40. Institutions and Electricity Systems Transition towards Decarbonisation : The hidden change of the market regime By Dominique Finon
  41. Influence of Agricultural Support on Sale Prices of French Farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations By Latruffe , Laure; Piet, Laurent; Dupraz, Pierre; Le Mouël, Chantal
  42. The ECJ Judgment on the Extensions of the ETS to Aviation: An Economist’s Discontent By Horn, Henrik
  43. Taxe carbone, une mesure socialement régressive ? Vrais problèmes et faux débats By Emmanuel Combet; Frédéric GHERSI; Jean-Charles Hourcade
  44. The rejuvenation of industrial policy By Stiglitz, Joseph E.; Yifu, Justin; Monga, Celestin
  45. Coordination internationale des politiques climatiques : quelle efficacité ? By Khalil Helioui
  46. Changement climatique et enjeux de sécurité By Philippe Ambrosi; Stéphane Hallegatte
  47. A survey on the public perception of CCS in France By Minh Ha-Duong; Ana-Sofia Campos; Alain Nadai
  48. Les préférences des consommateurs pour un écolabel. Le cas des produits de la mer en France By Frédéric Salladarré; Patrice Guillotreau; Claire-Marine Lesage; Pierrick Ollivier

  1. By: A. Mantovani; C. Vergari
    Abstract: In this paper we compare two policy instruments that can be adopted to curb carbon emissions. The first is a conventional pollution tax. The second is an environmental campaign aiming to influence consumers to switch to a green good. We consider two different scenarios. When consumers are characterized by hedonic quality preferences, in this case the pollution tax is more efficient than the campaign. On the contrary, when consumers develop environmental quality preferences, there are cases in which the campaign is preferred. To sum up, while both policy instruments are effective in reducing pollution emissions, their efficiency viewed from a welfare perspective crucially depends on consumers' environmental awareness.
    JEL: D62 L13
    Date: 2013–10
    URL: http://d.repec.org/n?u=RePEc:bol:bodewp:wp906&r=env
  2. By: Das Gupta, Monica
    Abstract: The literature is reviewed on the relationships between population, poverty, and climate change. While developed countries are largely responsible for global warming, the brunt of the fallout will be borne by the developing world, in lower agricultural output, poorer health, and more frequent natural disasters. Carbon emissions in the developed world have leveled off, but are projected to rise rapidly in the developing world due to their economic growth and population growth -- the latter most notably in the poorest countries. Lowering fertility has many benefits for the poorest countries. Studies indicate that, in high fertility settings, fertility decline facilitates economic growth and poverty reduction. It also reduces the pressure on livelihoods, and frees up resources to cope with climate change. And it helps avert some of the projected global warming, which will benefit these countries far more than those that lie at higher latitudes and/or have more resources to cope with climate change. Natural experiments indicate that family planning programs are effective in helping reduce fertility, and that they are highly pro-poor in their impact. While the rest of the world wrestles withthe complexities of reducing emissions, the poorest countries will gain much from simple programs to lower fertility.
    Keywords: Population Policies,Environmental Economics&Policies,Climate Change Mitigation and Green House Gases,Climate Change Economics,Health Monitoring&Evaluation
    Date: 2013–10–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6631&r=env
  3. By: Iris Butzlaff (Georg-August-University Göttingen); Nicole Grunewald (Georg-August-University Göttingen); Stephan Klasen (Georg-August-University Göttingen)
    Abstract: There is a large number of regional agreements concerning Greenhouse Gas (GHG) emissions, often linked to other regional integration agreements. The most successful one in making effort in reducing carbon emissions is the Emission Trading System by the European Union (EU ETS). Apart from this exceptional agreement there are many others, which either focus directly on reducing GHG emissions or were embedded in another agreement. There is little known about the origin, the design or funding of those agreements. Therefore, we point to the potential contribution of those agreements in order to reduce GHG emissions and give an overview on the nature of those agreements to evaluate their success. We classify 15 agreements by their subject (technology / R&D, trade and finance) and examine their record to date. We find that the impact on mitigating climate change has been negligible to date, but the potential to contribute to mitigation climate change at the regional level is substantial.
    Keywords: Regional cooperation; climate change; mitigation
    JEL: Q54 Q58 Q55
    Date: 2013–10–07
    URL: http://d.repec.org/n?u=RePEc:got:gotcrc:152&r=env
  4. By: Arild Angelsen; Philippe Delacote
    Abstract: Agricultural expansion is the main deforestation driver, while forest degradation is due to non-sustainable poaching and harvesting of forest products. Policies to reduce emissions from deforestation and forest degradation (REDD) thus focus on agricultural expansion and illegal harvesting. The feedbacks between these two policy instruments are rarely discussed. Does reduced deforestation indirectly decrease or enhance forest degradation? How does better control on illegal harvesting influence deforestation? Using a simple household model, we assess the impact of a Payment for Environmental Services (PES) on both deforestation and illegal harvesting, and the impact of increasing the control on illegal harvesting on deforestation. We show that when land and labor are substitutes, both policies have positive feedbacks and win-win potential. Conversely, when production factors are complements, they have negative feedbacks and need to be taken into account by the public policies. Further, we demonstrate that the production factors can become substitutes if distance costs are high, making a win-win situation more likely.
    Keywords: deforestation, REDD, payment for environmental services, agricultural expansion, illegal harvesting, poaching, leakage, synergies
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:cec:wpaper:1311&r=env
  5. By: Frédéric Branger (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Oskar Lecuyer (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: The European Union Emissions Trading System (EU-ETS), presented as the ''flagship'' of European climate policy, is subject to many criticisms from different stakeholders. Criticisms include the insufficient carbon emissions reduction, the competitiveness losses and the induced carbon leakages, the unfair distributional effects, the frauds and the existence of several other overlapping climate policy instruments. We review these criticisms and find the EU-ETS brought small but real abatements. The competitiveness losses and carbon leakages do not seem to have occurred. The distributional effects have indeed been unfair and fraud has been important. Finally, the scheme does not justify abandoning other climate policies. Some of these problems could have been avoided and can still be corrected by rethinking flexibility mechanisms and by adding some control over the carbon price.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866408&r=env
  6. By: Jean-Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Antonin Pottier (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech, LPT - Laboratoire de Physique Théorique d'Orsay - CNRS : UMR8627 - Université Paris XI - Paris Sud); Etienne Espagne (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: This paper discusses the growth model with environmental constraints recently presented in (Acemoglu et al., 2011) which focuses on the redirection of technical change by climate policies with research subsidies and a carbon tax. First, Acemoglu et al.'s model and chosen parameters yield numerical results that do not support the conclusion that ambitious climate policies can be conducted " without sacrificing (much or any) long-run growth ". Second, they select unrealistic key parameters for carbon sinks and elasticity of substitution. We find that more realistic parameters lead to very different results. Third, the model leads to an unrealistic conclusion when used to analyse endogenous growth, suggesting specification problems.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866435&r=env
  7. By: Dasgupta, Susmita; Martin, Paul; Samad, Hussain A.
    Abstract: Household air pollution is the second leading cause of disease in Madagascar, where more than 99 percent of households rely on solid biomass, such as charcoal, wood, and crop waste, as the main cooking fuel. Only a limited number of studies have looked at the emissions and health consequences of cook stoves in Africa. This paper summarizes an initiative to monitor household air pollution in two towns in Madagascar, with a stratified sample of 154 and 184 households. Concentrations of fine particulate matter and carbon monoxide in each kitchen were monitored three times using UCB Particle Monitors and GasBadge Pro Single Gas Monitors. The average concentrations of both pollutants significantly exceeded World Health Organization guidelines for indoor exposure. A fixed-effect panel regression analysis was conducted to investigate the effects of various factors, including fuel (charcoal, wood, and ethanol), stove (traditional and improved ethanol), kitchen size, ventilation, building materials, and ambient environment. Judging by its effect on fine particulate matter and carbon monoxide, ethanol is significantly cleaner than biomass fuels and, for both pollutants, a larger kitchen significantly improves the quality of household air. Compared with traditional charcoal stoves, improved charcoal stoves were found to have no significant impact on air quality, but the improved wood stove with a chimney was effective in reducing concentrations of carbon monoxide in the kitchen, as was ventilation.
    Keywords: Renewable Energy,Climate Change Mitigation and Green House Gases,Energy Production and Transportation,Energy and Poverty Alleviation,Health Monitoring&Evaluation
    Date: 2013–09–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6627&r=env
  8. By: Oskar Lecuyer (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Ruben Bibas (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: In addition to the already present Climate and Energy package, the European Union (EU) plans to include a binding target to reduce energy consumption. We analyze the rationales the EU invokes to justify such an overlapping and develop a minimal common framework to study interactions arising from the combination of instruments reducing emissions, promoting renewable energy (RE) production and reducing energy demand through energy efficiency (EE) investments. We find that although all instruments tend to reduce GHG emissions and although a price on carbon tends also to give the right incentives for RE and EE, the combination of more than one instrument leads to significant antagonisms regarding major objectives of the policy package. The model allows to show in a single framework and to quantify the antagonistic effects of the joint promotion of RE and EE. We also show and quantify the effects of this joint promotion on ETS permit price, on wholesale market price and on energy production levels.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866439&r=env
  9. By: Gary D. Libecap
    Abstract: Is there a way to understand why some global environmental externalities are addressed effectively whereas others are not? The transaction costs of defining the property rights to mitigation benefits and costs is a useful framework for such analysis. This approach views international cooperation as a contractual process among country leaders to assign those property rights. Leaders cooperate when it serves domestic interests to do so. The demand for property rights comes from those who value and stand to gain from multilateral action. Property rights are supplied by international agreements that specify resource access and use, assign costs and benefits including outlining the size and duration of compensating transfer payments and determining who will pay and who will receive them. Four factors raise the transaction costs of assigning property rights: (i) scientific uncertainty regarding mitigation benefits and costs; (ii) varying preferences and perceptions across heterogeneous populations; (iii) asymmetric information; and (iv) the extent of compliance and new entry. These factors are used to examine the role of transaction costs in the establishment and allocation of property rights to provide globally-valued national parks, implement the Convention on the International Trade in Endangered Species (CITES), execute the Montreal Protocol to control emissions that damage the stratospheric ozone layer, set limits on harvest of highly-migratory ocean fish stocks, and control greenhouse gas emissions (GHG).
    JEL: D23 D62 H87 N5 Q2 Q3 Q38 Q5
    Date: 2013–10
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19501&r=env
  10. By: Flues, Florens; Löschel, Andreas; Lutz, Benjamin Johannes; Schenker, Oliver
    Abstract: Current climate and energy policy has to operate under an ex-ante unforeseen economic crisis. An obvious consequence is the collapse of prices for carbon emission allowances as, for example, seen in the European Union. However, this price collapse may be amplified by the interaction of a carbon emission cap and supplementary policy targets such as the minimum shares for renewables in the power sector. The static interaction between climate and renewable policies has been discussed extensively. This paper extends this debate by analysing how uncertain differences in medium to long-run growth rates affect the effciency and effectiveness of a policy portfolio containing an emission trading scheme and a target for a minimum renewable share. Making use of a simple partial equilibrium model we identify an asymmetric interaction of emissions trading and renewable quotas with respect to different growth rates of an economy. The results imply that unintended consequences of the policy interaction may be particularly severe and costly when economic growth is low and that carbon prices are more sensitive to changes in economic growth if they are applied in combination with renewable energy targets. Our main example for the policy interaction is the EU, yet our research also relates particularly well to the uncertainty of economic growth in fast growing emerging economies like China. --
    Keywords: EU Climate Policy,Growth Uncertainty,Overlapping Regulation
    JEL: Q43 Q48 Q58
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:13066&r=env
  11. By: Oskar Lecuyer (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: This article constitutes a new contribution to the analysis of overlapping instruments to cover the same emission sources. Using both an analytical and a numerical model, we show that when the risk that the CO2 price drops to zero and the political unavailability of a CO2 tax (at least in the European Union) are taken into account, it can be socially optimal to implement an additional instrument encouraging the reduction of emissions, for instance a renewable energy subsidy. Our analysis has both a practical and a theoretical purpose. It aims at giving economic insight to policymakers in a context of increased uncertainty concerning the future stringency of the European Emission Trading Scheme. It also gives another rationale for the use of several instruments to cover the same emission sources, and shows the importance of accounting for corner solutions in the definition of the optimal policy mix. Highlights : - We develop an analytical and a numerical model of the EU energy and carbon markets. - We add uncertainty on energy demand and focus on instruments for emission reduction. - We analyze the economic implications of a risk that the CO2 price drops to zero. - We show that it can be socially optimal to add an instrument to the EU-ETS.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866440&r=env
  12. By: Julie Rozenberg (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Stéphane Hallegatte (METEO-FRANCE - Météo-France - Météo France); Adrien Vogt-Schilb (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Olivier Sassi (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Céline Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Henri Waisman (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Jean-Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: Despite the inextricable link between oil scarcity and climate change, the interplay between these two issues is paradoxically an underworked area. This article uses a global energy-economy model to address the link between future oil supply and climate change and assesses in a common framework both the costs of climate policies and oil scarcity. It shows that, in the context of a limited and uncertain amount of ultimately recoverable oil resources, climate policies reduce the world vulnerability to peak oil. Climate policies, therefore, appear as a hedging strategy against the uncertainty on oil resources, in addition to their main aim of avoiding dangerous climate change. This co-benefit is estimated at the net present value of US$11,500 billion. Eventually, reducing the risk of future economic losses due to oil scarcity may appear as a significant side-benefit of climate policies to many decision-makers.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866449&r=env
  13. By: Wen Wang; Frank Koslowski; Dominic Moran; Dali Rani Nayak; Eli Saetnan; Erda Lin; Liping Guo; Guodong Han; Xiaotang Jug
    Abstract: China is the largest source of greenhouse gas emissions with 7467 million tons (Mt) carbon dioxide equivalent (CO2e) in 2005, with agriculture accounting for 11% of this total. As elsewhere, agricultural emissions mitigation policy in China faces a range of challenges due to the biophysical complexity and heterogeneity of farming systems. Existing research has contributed to improving our understanding of the technical potential of mitigation measures in this sector (i.e. what works). But for policy purposes it is important to convert this into a feasible economic potential, which provides a perspective on whether agricultural emissions reduction (measures) are low cost relative to mitigation measures and overall potential offered in other sectors of the economy. We develop a bottom-up marginal abatement cost curve (MACC) representing the cost of mitigation measures applicable in addition to baseline agricultural practices. The MACC demonstrates that while the sector offers a maximum technical potential of 412 MtCO2e in 2020, a reduction of 154 MtCO2e is potentially available at zero or negative cost (i.e. a cost saving), and 195 MtCO2e (approximately 47% of the total) can be abated at a threshold carbon price = ¥ 100 (approximately £10) per tCO2e. Our findings highlight the important cost-effectiveness of fertilizer best management practices, probiotics additives to animal diets, and animal breeding practices. We outline the assumptions underlying MACC construction and indicate the scientific and socioeconomic barriers to realizing the indicated levels of mitigation.
    Keywords: agriculture, climate change, greenhouse gas mitigation, China, marginal abatement cost curve (MACC)
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:cec:wpaper:1310&r=env
  14. By: Vincent Gitz (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Jean-Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Philippe Ciais (LSCE - Laboratoire des Sciences du Climat et de l'Environnement [Gif-sur-Yvette] - CNRS : UMR8212 - CEA : DSM/LSCE - Université de Versailles Saint-Quentin-en-Yvelines (UVSQ))
    Abstract: This paper addresses the timing of the use of biological carbon sequestration and its capacity to alleviate the carbon constraint on the energy sector. We constructed a stochastic optimal control model balancing the costs of fossil emission abatement, the opportunity costs of lands allocated to afforestation, and the costs of uncertain climate damages. We show that a minor part of the sequestration potential should start immediately as a 'brake', slowing down both the rate of growth of concentrations and the rate of abatement in the energy sector, thus increasing the option value of the emission trajectories. But, most of the potential is put in reserve to be used as a ''safety valve'' after the resolution of uncertainty, if a higher and faster decarbonization is required : sequestration cuts off the peaks of costs of fossil abatement and postpones the pivoting of the energy system by up to two decades.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866426&r=env
  15. By: Ghisetti, Claudia; Rennings, Klaus
    Abstract: Much of the empirical literature analysing the relation between environmental innovation and competitiveness has focused on the question whether 'it pays to be green'. We differentiate between different types of environmental innovations, which will be disentangled in those aiming at reducing the negative externalities and those allowing for efficiency increases and cost savings. What we analyze is at first the extent to which these two typologies have impacts on firms' profitability with opposite signs, and, secondly, whether the motivations driving the adoption of those innovations make the difference in terms of economic gains. We find empirical evidence that both the typology of Environmental Innovation and the driver of their adoption affect the sign of the relationship between competitiveness and environmental performance. The empirical strategy is based on a sample of German firms and makes use of a merge of two waves of the Mannheim Innovation Panel in 2011 and 2009 that allow overcoming some endogeneity issues which may arise in a cross-section setting. --
    Keywords: Profitability,Externality Reducing Innovations,Energy and Material Efficiency Innovations,Mannheim Innovation Panel
    JEL: Q55 Q20 M10 K32
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:13073&r=env
  16. By: Trinh Hoang Anh Nguyen (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: With its rapidly increasing power demand of 16% p.a since 1990s along with its limited supply power capacity, how sustainable is Vietnam's electricity development? What are the major factors explaining its performance relative to other Asian countries? To answer these questions, this paper examines the Vietnamese power system from the 1990s to 2040 by using LEAP simulation. Twelve vulnerability and externality indexes regarding social-economic-environmental dimensions are calculated to assess vulnerability levels of the sector in seven scenarios. External costs of CO2, NOx, SO2 and PM10 are calculated to examine how far the costs could affect on the electricity cost in Vietnam. In sensitivity analysis, the paper assesses the impacts of international coal price's fluctuations on the electricity price and the trade balance of Vietnam. The study confirms that Vietnam's power sector will become more vulnerable to fossil fuels' prices, environmental pollutants and climate change if the sector goes for the current policy pathways. With the efficiency scenarios examined in the study, the sector would be more independent and less vulnerable. To reduce the vulnerabilities, the study suggests that Vietnam should promote energy efficiency and electricity generation from non-fossil fuels and internalize external costs into the power sector. Vietnam needs also get involved in international financial mechanisms for clean development and technology transfer programs to efficiently exploit its renewable energy potentials.
    Keywords: energy planning, sustainable development, vulnerability, externality, Vietnam, electric power
    Date: 2013–01–31
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-00869314&r=env
  17. By: Elmar Kriegler (Postdam Institute for Climate Impact Research - Postdam Institute); Brian-C O'Neill (NCAR - National Center for Atmospheric Research - National Center for Atmospheric Research); Stéphane Hallegatte (METEO-FRANCE - Météo-France - Météo France); Tom Kram (PBL Netherlands Environmental Assessment Agency - PBL Netherlands Environmental Assessment Agency); Richard-H Moss (Joint Global Change Research Institute - Joint Global Change Research Institute); Robert Lempert (RAND Corp - RAND Corp); Thomas J Wilbanks (ORNL - Oak Ridge National Laboratory - US Department of Energy - UI-Battelle)
    Abstract: Socio-economic scenarios constitute an important tool for exploring the long-term consequences of anthropogenic climate change and available response options. They have been applied for different purposes and to a different degree in various areas of climate change analysis, typically in combination with projections of future climate change. Integrated assessment modeling (IAM) has used them to develop greenhouse gas (GHG) emissions scenarios for the 21st century and to investigate strategies for mitigating GHG emissions on a global scale. Analyses of climate change impacts, adaptation and vulnerabilities (IAV) depend heavily on assumptions about underlying socio-economic developments, but have employed socio-economic scenarios to a lesser degree, due mainly to the multitude of contexts and scales of such analyses. A more consistent use of socio-economic scenarios that would allow an integrated perspective on mitigation, adaptation and residual climate impacts remains a major challenge. We assert that the identification of a set of global narratives and socio-economic pathways offering scalability to different regional contexts, a reasonable coverage of key socio-economic dimensions and relevant futures, and a sophisticated approach to separating climate policy from counter-factual "no policy" scenarios would be an important step towards meeting this challenge. Such "Shared Socio-economic Pathways" (SSPs) should be specified in an iterative manner and with close collaboration between IAM and IAV researchers to assure coverage of key dimensions, sufficient scalability and widespread adoption. They can be used not only as inputs to analyses, but also to collect the results of different climate change analyses in a matrix defined by two dimensions : climate exposure as characterized by a radiative forcing or temperature level and socio-economic development as classified by the SSPs. For some applications, SSPs may have to be augmented by "Shared Climate Policy Assumptions" (SPAs) capturing global components of climate policies that some studies may require as inputs. Finally, sufficient coverage of the relevant socio-economic dimensions for the analysis of mitigation, adaptation and residual climate impacts may be assessed by locating the SSPs along the dimensions of challenges to mitigation and to adaptation. We conclude that the development of SSPs, and integrated socio-economic scenarios more broadly, is a useful focal point for collaborative efforts between IAM and IAV researchers. This is likely to be a long-term and iterative enterprise comprising a collection of different activities : periodically taking stock of the evolving scenario work in both research communities, linking up individual efforts, and pursuing collaborative scenario work through appropriate platforms that still need to be established. In the short run, an important goal is to produce tangible outcomes that would allow the 5th Assessment Report of the IPCC to take a more integrated perspective on mitigation, adaptation and residual climate impacts.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866437&r=env
  18. By: Mazzanti, M.; Musolesi, A.
    Abstract: We study long run carbon emissions-income relationships for advanced countries grouped in policy relevant groups: North America and Oceania, South Europe, North Europe. By relying on recent advances on Generalized Additive Mixed Models (GAMMs) and adopting interaction models, we handle simultaneously three main econometric issues, named here as functional form bias, heterogeneity bias and omitted time related factors bias, which have been proved to be relevant but have been addressed separately in previous papers. The model incorporates nonlinear effects, eventually heterogeneous across countries, for both income and time. We also handle serial correlation by using autoregressive moving average (ARMA) processes. We find that country-specific time related factors weight more than income in driving the northern EU Environmental Kuznets. Overall, the countries differ more on their carbon-time relation than on the carbon-income relation which is in almost all cases monotonic positive. Once serial correlation and (heterogeneous) time effects have been accounted for, only three Scandinavian countries -- Denmark, Finland and Sweden -- present some threshold effect on the CO2-development relation.
    Keywords: ENVIRONMENTAL KUZNETS CURVE;SEMIPARAMETRIC MODELS;GENERALIZED ADDITIVE MIXED MODELS;INTERACTION MODELS
    JEL: C14 C23 Q53
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:gbl:wpaper:2013-08&r=env
  19. By: Vincent Bertrand
    Abstract: European power producers have a major influence on the EU ETS, given that both their CO2 emissions and their EUA (European Union Allowance) allocations account for more than half of the total volumes of the scheme. Fuel switching is often considered as the main short-term abatement measure under the EU ETS. It consists in substituting combined cycle gas turbines (CCGTs) for hard-coal plants in power generation. Thereby coal plants run for shorter periods, and CO2 emissions are reduced. This paper provides a theoretical analysis of fuel switching, in a context where power plants involved are not equally efficient. We begin with some analyses which enable us to observe how differences in the efficiency of power plants impact the cost of fuel switching, and how this is related to the level of switching effort. Based on these preliminary analyses, we build the first partial equilibrium model taking into account the effect of differences in the efficiency of power plants involved in fuel switching. We also investigate the effect of the timing of fuel switching abatements, within the temporally defined environment of our dynamic partial equilibrium model. Results show that the gas price, uncontrolled CO2 emissions and the timing of abatement (through the time of occurrence of random shocks on uncontrolled emissions) act together on the carbon price, and on its relationship with fuel prices..
    Keywords: Tradable Emission Allowances, Fuel Switching, EU ETS, Efficiency of power plants, Partial Equilibrium Modeling
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:cec:wpaper:1309&r=env
  20. By: Sandrine Mathy (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Céline Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: Reference GHG emissions scenarios are critical for estimates of the costs of stabilization and for climate policy recommendations. But recently, existing reference scenarios, notably the SRES, have been the target of criticisms that question their relevance in the light of current emissions trends, dispute the suitability, for developing countries, of the modeling methodologies used and suggest they convey too optimistic views on spontaneous energy decoupling of emerging countries economies. This article focuses on an illustrative example on India. It proposes an alternative reference scenario built with a modeling framework representing as realistically as possible the processes driving energy intensity and carbon intensity changes, in particular accounting for the interactions between energy systems and economic constraints and capturing the sub-optimalities of the energy sector. The mechanisms leading to moderate energy decoupling in this alternative scenario are analysed. From a methodological point of view, our results call for the improvement of the realism of modeling tools for scenarios elaboration. From a mitigation point of view, it appears that the challenge for climate policies to lift the barriers to the diffusion of energy efficiency improvement in India is considerable, but we identify a potential for synergies between development policies and climate policies.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866443&r=env
  21. By: Nhan-T Nguyen (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Sandra Greiner (Climate Focus - Climate Focus B.V.); Michael Mehling (Ecologic Institute - Ecologic Institute)
    Abstract: In this article, we assess the future prospects of the Clean Development Mechanism (CDM) from the perspective of a developing country, drawing on Vietnam as a case study. First, we review the performance of the CDM and describe the evolution of carbon markets on the path towards a post-2012 climate regime. Next, we place Vietnam in a post-2012 context, and assess potential project resources, challenges, and opportunities that could arise for the country from a future climate policy framework. Our analysis suggests that the CDM should remain in place and be improved to facilitate more meaningful participation by developing countries in climate mitigation efforts beyond 2012. Finally, the article sets out eight proposals that could help improve the CDM as the world progresses towards a new international climate policy framework.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866446&r=env
  22. By: Oskar Lecuyer (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Adrien Vogt-Schilb (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: Climate change mitigation requires to replace preexisting carbon-intensive capital with different types of cleaner capital. Coal power and inefficient thermal engines may be phased out by gas power and efficient thermal engines or by renewable power and electric vehicles. We derive the optimal timing and costs of investment in a low- and a zero-carbon technology, under an exogenous ceiling constraint on atmospheric pollution. Producing output from the low-carbon technology requires to extract an exhaustible resource. A general finding is that investment in the expensive zero-carbon technology should always be higher than, and can optimally start before, investment in the cheaper low-carbon technology. We then provide illustrative simulations calibrated with data from the European electricity sector. The optimal investment schedule involves building some gas capacity that will be left unused before it naturally depreciates, a process known as mothballing or early scrapping. Finally, the levelized cost of electricity (LCOE) is a misleading metric to assess investment in new capacities. Optimal LCOEs vary dramatically across technologies. Ranking technologies according to their LCOE would bring too little investment in renewable power, and too much in the intermediate gas power.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866442&r=env
  23. By: Philippe Delacote; Gabriela Simonet
    Abstract: The first phase of the REDD+ mechanism consists of helping countries to improve their capacity to carry out national forest inventories, notably to assess land-use changes and forest carbon stocks and fluxes. However, there might be some links between the funding of this first phase and the quantity of avoided deforestation that will happen during the following phases of REDD+. This paper precisely investigates those links, using a simple two-step, twoplayers, subsidiary-based REDD+ mechanism.
    Keywords: REDD+, Readiness, deforestation, forest inventories
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:cec:wpaper:1312&r=env
  24. By: Renaud Crassous (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Jean-Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Olivier Sassi (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: This paper envisages endogenous technical change as resulting from the interplay between the economic growth engine, consumption, technology and localization patterns. We perform numerical simulations with the recursive dynamic general equilibrium model IMACLIM-R to study how modeling induced technical change affects costs of CO2 stabilization. IMACLIM-R incorporates innovative specifications about final consumption of transportation and energy to represent critical stylized facts such as rebound effects and demand induction by infrastructure and equipments. Doing so brings to light how induced technical change may not only lower stabilization costs thanks to pure technological progress, but also triggers induction of final demand - effects critical to both the level of the carbon tax and the costs of policy given a specific stabilization target. Finally, we study the sensitivity of total stabilization costs to various parameters including both technical assumptions as accelerated turnover of equipments and non-energy choices as alternative infrastructure policies.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866411&r=env
  25. By: Sebastian Kopf (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Stéphane Hallegatte (METEO-FRANCE - Météo-France - Météo France)
    Abstract: We describe a method to represent the results of climate simulation models with analogues. An analogue to a city A is a city B whose climate today represents A's simulated future climate. Climates were characterized and compared non-parametrically, using the 30-years distribution of three indicators : Aridity Index, Heating Degree Days and Cooling Degree Days. Analogy was evaluated statistically with the two-samples Kolmogorov-Smirnov test, generalized to 3 dimensions. We looked at the climate of 12 European cities at the end of the century under an A2 climate change scenario. We used two datasets produced with high-resolution regional climate simulation models from the Hadley Center and Meteo France. Climate analogues were generally found southward of present locations, a clear warming trend even if much model and scenario uncertainty remains. Climate analogues provide an intuitive way to show the possible effects of climate change on urban areas, offering a holistic approach to think about how cities adapt to different climates. Evidence of its communication value comes from the reuse of our maps in teaching and in several European mass-media.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866436&r=env
  26. By: Jean-Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Baptiste Perrissin-Fabert (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Julie Rozenberg (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: This paper explores links between global financial imbalances and tensions around reserve currency along with climate change. Currently, risky levels of private and public debts co-exist with vast amounts of savings which "do not know where to go." Long-term climate-oriented financial products could enhance investors' confidence in low carbon projects (LCP) and channel to them large amounts of private savings. The paper outlines a financial architecture, the cornerstone of which is an agreement on the Social Cost of Carbon (SCC) integrated into a project's appraisal and acting as a surrogate for a carbon price. This SCC would be the value of carbon certificates issued by the government, and delivered to Banks to issue credit facilities reducing the risk-adjusted costs of LCPs. These carbon certificates could be gradually transformed into legal reserve assets of the Banks after verification of the reality of the projects. Finally, the paper considers whether such certificates would be recognized as genuine international reserve assets, backed by the rising value of carbon over time. It shows how emerging countries could then diversify their foreign exchange reserves through an asset based on the international recognition of climate as a global public good.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866434&r=env
  27. By: Adrien Vogt-Schilb (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Céline Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Jean-Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: La pertinence des véhicules électrifiés (VE) pour diminuer les émissions de gaz à effet de serre (GES) est sujette à débat. De nombreuses études fondent le calcul des émissions kilométriques des VE sur le contenu carbone de l'électricité contemporaine. Nous proposons une évaluation qui mobilise une vision cohérente de l'évolution du système énergétique dans lequel les VE doivent s'insérer. Nous utilisons un modèle de simulation prospective pour produire des scénarios contrastés de l'évolution du contenu carbone de l'électricité européenne. Cet exercice suggère que si l'Europe choisit de mettre en place des politiques climatiques destinées à réduire drastiquement ses émissions de GES, le contenu carbone de l'électricité va diminuer rapidement, prolongeant sur le long terme l'avantage actuel des VE sur les véhicules classiques en termes d'émissions par kilomètre.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866450&r=env
  28. By: Pierre Berthaud (CREG - Centre de recherche en économie de Grenoble - Université Pierre-Mendès-France - Grenoble II : EA4625); Tancrède Voituriez (MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR99 - Institut de recherche pour le développement [IRD] - IAMM - Institut national de la recherche agronomique (INRA) : UR1110)
    Abstract: In this paper we address the issue of the indeterminacy of climate change negotiations and examine the role played by the BASIC countries (Brazil, South Africa, India and China) in this indeterminacy. Mobilising the analytical tools of international political economy (IPE), we show that changes in the distribution of power over the last 20 years explain the indeterminacy of negotiation outcomes far more than changes in political preferences, which have remained fairly stable.
    Keywords: climate change ; sustainable development ; international political economy ; international negotiation ; South Africa ; Brazil ; China ; India
    Date: 2013–07–09
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00868468&r=env
  29. By: Anna Dimitrova; Katarina Hollan; Daphne Laster; Andreas Reinstaller; Margit Schratzenstaller; Ewald Walterskirchen; Teresa Weiss
    Abstract: The research project WWWforEurope undertakes to lie the theoretical and empirical foundations for the embarkment on a new socio-ecological growth path in Europe. The new path underlines the need to guarantee Welfare as a broad universal principle for its population, assuring economic and social prosperity. The new path stresses the value of achieving – what we call – Wealth, a value in which material and immaterial resources are combined with the goal to enrich people‘s lives and to preserve natural resources, nature and bio-diversity. Both cannot be achieved without Work: Europe needs to enable its population to achieve their life satisfaction at the highest level possible and Work is one of the most – if not, the most – fundamental precondition for this. In short, the overarching question the WWWforEurope project attempts to answer is what kind of new European growth and development strategy is necessary and feasible, enabling a socio-ecological transition to high levels of employment, well-being of its citizens, social inclusion, resilience of ecological systems and a significant contribution to the global common goods like climate stability. Thus the project’s central goals are to identify the forces and challenges necessitating deliberations on a new growth path, to define socio-ecological transition, key actors and main obstacles, and to find out how the process of a socio-ecological transition can be initiated, monitored, and accelerated on an institutional level (EU, national and regional level). A central prerequisite to successfully accomplish these central goals is to establish a common understanding of the central questions raised by this undertaking and to create awareness for the project’s systemic and interdisciplinary approach. To this behalf, this paper presents fundamental concepts, terms and definitions relevant for socio-ecological transition. Hereby the paper focuses on the concepts of sustainability, growth, innovation, welfare and well-being, wealth and work. We also look at the various dimensions and definitions of transition/transformation which can be found in the literature, trying to concretise the concept of a socio-ecological transition forming the context and starting point of the WWWforEurope project. The necessity to accomplish a socio-ecological transition represents the starting point and the background against which the concepts and terms addressed in this paper gain their relevance. Economic, environmental and social sustainability and sustainable growth and development, respectively, are the central and final aim of the envisaged socio-ecological transition. Sustainability is an indispensable precondition for societal and individual welfare/well-being. Socio-ecological transition to achieve sustainability requires putting into question the prevailing view on economic growth. While economic growth may help to reduce poverty or unemployment and may thus be positively related with social sustainability, this often implies negative external effects for the environment. Alternative growth concepts are to be explored therefore, which do not consider the economic dimension of sustainability only, but explicitly try to incorporate social and environmental aspects in addition. Several more sustainability-oriented growth concepts have been brought into the discussion more recently. All of them are departing from the empirical fact that with increasing levels of GDP per capita the relation between economic growth and societal as well as individual well-being is weakening and that economic growth on the contrary may even endanger environmental and social sustainability (e.g. due to too little time for family and friends) and thus negatively affect quality of life and well-being. A more sustainable perspective on growth requires a more sustainable view on innovation, as a central driver for growth. Within the context of a socio-ecological transition based on sustainable growth, ecological and social innovation gain in importance vis-à-vis purely profit-oriented innovation. Long-term growth is based on wealth as the productive base of an economy. Sustainable growth and development needs to rest on a comprehensive/inclusive wealth concept taking into account, besides the conventional material assets, also natural capital. Finally, socio-ecological transition will also affect the organisation of work/labour. This paper tries to define and concretise these fundamental concepts and terms. Thus it should provide some kind of lexicon, which serves as starting point and background for the work on the central questions guiding the WWWforEurope project. Wherever possible, the paper should facilitate the agreement on common definitions. It is not the aim of the paper to elaborate tradeoffs in depth and to offer solutions and answers already. It rather strives to motivate all research groups involved in the WWWforEurope project to use and discuss the existing concepts, may they be consistent or just offer a variety of thought. It also attempts at drawing attention to the existence of trade-offs and open questions relevant for the various research areas. Moreover, the paper wants to inspire the search for best (or the identification of not working) practices, and it wants to increase the awareness for existing barriers to change. While the paper is not able to elaborate in depth distributional and gender aspects as crucial cross-cutting issues, it aims at directing attention at them and at inspiring research undertaken in the WWWforEurope project to consider these cross-cutting issues. Finally, the paper does not focus too much on policy issues. It is the aim of the overall project to identify (potential) interlinkages, trade-offs and synergies and to discuss policy options and instruments in details to support a more dynamic, inclusive and ecological growth and development path for Europe.
    Keywords: Behavioural economics, beyond GDP, biophysical constraints, ecological innovation, economic growth path, gender, innovation, social innovation, socio-ecological transition, sustainable growth, synergies, wealth
    JEL: D6 E02 E61 H11 H51 H52 H53 H54 H55 I31 J11 J16 L16 O31 O43 O44 R11 Q20 Q40 Q50 Q51 Q58
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:feu:wfewop:y:2013:m:9:d:0:i:40&r=env
  30. By: Fabien Roques (EPRG - University of Cambridge); Olivier Sassi (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Céline Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Henri Waisman (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Renaud Crassous (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Jean-Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: A hybrid framework coupling the bottom-up energy sector WEM model with the top-down general equilibrium model IMACLIM-R is implemented to capture the macroeconomic feedbacks of Chinese and Indian economic growth on energy and emissions scenarios. The iterative coupling procedure captures the detailed representation of energy use and supply while ensuring the microeconomic and macroeconomic consistency of the different scenarios studied. The dual representation of the hybrid model facilitates the incorporation of energy sector expertise in internally consistent scenarios. The paper describes how the hybrid model was used to assess the effect of uncertainty on economic growth in China and India in the energy and emissions scenarios of the International Energy Agency.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866448&r=env
  31. By: Louis-Gaëtan Giraudet (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Céline Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: Although the building sector is recognized as having major potential for energy conservation and carbon dioxide emissions mitigation, conventional bottom-up and top-down models are limited in their ability to capture the complex economic and technological dynamics of the sector. This paper introduces a hybrid framework developed to assess future household energy demand in France. Res-IRF, a bottom-up module of energy consumption for space heating, has several distinctive features : (i) a clear separation between energy efficiency, i.e. investment in energy efficient technologies, and sufficiency, i.e. changes in the utilization of energy consuming durables which allows the rebound effect to be assessed ; (ii) the inclusion of barriers to energy efficiency in the form of intangible costs, consumer heterogeneity parameters and the learning-by-doing process ; (iii) an endogenous determination of retrofitting which represents trade-offs between retrofit quantity and quality. Subsequently, Res-IRF is linked to the IMACLIM-R computable general equilibrium model. This exercise shows that, compared to a 37% reduction in final energy demand achievable in business as usual in existing dwellings, an additional reduction of 14% could be achieved if relevant barriers to efficiency and sufficiency were overcome.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866425&r=env
  32. By: Stiglitz, Joseph; Lin, Justin; Monga, Celestin; Patel, Ebrahim
    Abstract: After long suffering from benign neglect if not outright contempt, industrial policy is almost fashionable again. The global financial and economic crisis known as the Great Recession has forced researchers and policy makers to confront the reality that market forces alone generally do not lead to (constrained) Pareto-efficient outcomes. Many important national and global policy objectives (equality of opportunity for all citizens, financial stability and inclusion, environmental protection and pollution control, etc.) are simply often not reflected in market prices and not achieved by markets on their own. In addition to traditional justification for industrial policies -- dealing with externalities and coordination issues—economists and policy makers now acknowledge the need to foster learning at the level of each economic agent and throughout society and the ultimate responsibility that the state must bear in that crucial process. But converting the now widely accepted theoretical principles of industrial policy into practical frameworks for concrete government action is indeed a daunting task everywhere and perhaps more so in the African context where the institutional underpinnings of effective government are often not as strong as one might have hoped. This essay highlights the intellectual foundations and broad principles of good industrial policy, outlines the contours of the policy agenda, and fleshes out the lessons learned. It argues that there has been substantial progress on the understanding and acceptance of industrial policy and that Africa could benefit enormously from it and from the unprecedented new opportunities brought to light by a multipolar world.
    Keywords: Environmental Economics&Policies,Population Policies,Climate Change Economics,Economic Theory&Research,Public Sector Corruption&Anticorruption Measures
    Date: 2013–10–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6633&r=env
  33. By: Latruffe , Laure; Minvie, Jean Joseph; Salanié, Julien
    Abstract: Using data from individual transactions for the period 1994-2010 in the French NUTS2 region Brittany, the authors investigated how environmental regulations and transaction land regulations influence the price of sold plots. Regressions on three sub-samples of buyers were performed in order to assess whether different buyers have different attitudes or plans regarding the farmland purchased: a sub-sample including only farmer-buyers, a sub-sample including non-farmer individual buyers, and a sub-sample including non-farmer non-individual buyers. Estimations were performed ignoring and accounting for spatial interactions (model SARAR). Results indicate that the price of land decreases when buyers are farmers, that the nitrate surplus area zoning increases the price of land, even more so for farmer-buyers. Regarding land transaction regulations, there is a negative effect, on land price, of the purchaser being the current tenant or being the land regulating public body SAFER. Estimating the model on different sub-samples depending on the buyers’ type shed light on the factors that are more important for each buyer.
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:eps:fmwppr:164&r=env
  34. By: Ruben Bibas (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Aurélie Méjean (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: La poursuite des trajectoires de faible émission de CO2 à l'horizon 2100 peut dépendre de la production d'électricité à partir de la biomasse. Nous analysons l'effet de la disponibilité des ressources et des technologies de la biomasse avec et sans capture et stockage de carbone dans un cadre d'équilibre général. Les technologies de la biomasse sont introduites dans le module électricité du modèle d'équilibre général Imaclim-R. Nous évaluons la robustesse de cette technologie avec et sans capture et stockage de carbone, comme moyen d'atteindre l'objectif de stabilisation RCP 3.7. L'impact d'une taxe carbone uniforme sur les prix de l'énergie, les investissements et la structure du mix électricité est examiné. La croissance du PIB mondial est affectée par l'absence des options du CSC ou de la biomasse, et la biomasse apparait comme une réponse technologique à l'absence du CSC. Dans la mesure où l'utilisation de la biomasse à grande échelle peut s'avérer comme non soutenable, nous illustrons l'action précoce comme une stratégie de réduction des besoins de biomasse et d'amélioration de la croissance économique à long terme.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866407&r=env
  35. By: Stéphanie Monjon (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: The EU ETS has been criticised for threatening the competitiveness of European industry and generating carbon leakage, i.e. increasing foreign greenhouse gas emissions. Two main options have been put forward to tackle these concerns : border adjustments and output-based allocation, i.e. allocation of free allowances in proportion to current production. We compare various configurations of these two options, as well as a scenario with full auctioning and no border adjustment. Against this background, we develop a model of the main sectors covered by the EU ETS : electricity, steel, cement and aluminium. We conclude that the most efficient way to tackle leakage is auctioning with border adjustment, which generally induces a negative leakage (a spillover). Another relatively efficient policy is to combine auctioning in the electricity sector and output-based allocation in exposed industries, especially if free allowances are given both for direct and indirect emissions, i.e. those generated by the generation of the electricity consumed. Although output-based allocation is generally less effective than border adjustment to tackle leakage, it is more effective to mitigate production losses in the sectors affected by the ETS.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866444&r=env
  36. By: Emmanuel Combet (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Frédéric GHERSI (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Jean-Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Daniel Théry (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: This research aims at clearing up misunderstandings about the distributive impacts of carbon taxes, which proved to be a decisive obstacle to their further consideration in public debates. It highlights the gap between partial equilibrium analyses, which are close to the agents' perception of the costs of taxation, and general equilibrium analyses, which better capture its ultimate consequences. It shows that the real impact on households' income inequality is not mechanically determined by the initial energy budgets and their flexibilities but also depends upon the way tax revenues are recycled and its general equilibrium consequences. The comparison of five tax-recycling schemes highlights the existence of trade-offs between maximizing total consumption, maximizing the consumption of the low-income classes and reducing income inequality.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866410&r=env
  37. By: Philippe Ambrosi (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: Pour évaluer les politiques climatiques dans un cadre coût-efficacité sous contraintes d'évolution du climat (amplitude du réchauffement et son rythme), nous avons développé RESPONSE_ ?, un modèle intégré de contrôle optimal. Nos résultats montrent que l'incertitude sur la sensibilité du climat implique de suivre une trajectoire d'émissions très contraignante à court terme, d'autant plus que l'information sur ce paramètre arrive tard. En raison de cette incertitude, un objectif comme +2°C pourrait donc impliquer une contrainte très lourde sur les émissions. Nous montrons en outre qu'il est encore plus important pour la décision de court terme de résoudre l'incertitude sur la contrainte de rythme que l'incertitude sur la sensibilité du climat ou l'amplitude du réchauffement. Il est donc urgent de poursuivre l'effort de recherche sur les risques du changement climatique afin de caractériser un garde-fou acceptable pour limiter le rythme du réchauffement.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866404&r=env
  38. By: Louis-Gaëtan Giraudet (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Luc Bodineau (ADEME - Climate Department - ADEME); Dominique Finon (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: White certificate schemes mandate energy companies to promote energy efficiency with flexibility mechanisms, including the trading of energy savings. A unified framework is used to estimate the costs and benefits of the schemes implemented in Great Britain in 2002, in Italy in 2005 and in France in 2006. "Negawatt-hour cost" estimates reach €0.009 per kWh saved in Great Britain and €0.037 per kWh saved in France, which compares favourably to energy prices in those countries. Moreover, the benefits of reduced energy bills and CO2 emissions saved exceed the costs, thus white certificate schemes pay for themselves. Overall, the policy instrument is cost-effective and economically efficient. A closer look at the differences among countries provides general insights about the conceptualization of the instrument : (i) compared to utility demand-side management, to which they are related, white certificate schemes provide more transparency about energy savings, but less transparency around costs ; (ii) the substantial efficiency discrepancy between the British scheme and its French counterpart can be explained by differences in technological potentials, coexisting policies and supply-side systems in these countries ; (iii) the nature and amount of costs influence compliance strategies. Notably, if energy suppliers are allowed to set their retail price freely, they tend to grant subsidies to end-use consumers for energy efficient investments.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866420&r=env
  39. By: Céline Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Renaud Crassous (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Olivier Sassi (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Stéphane Hallegatte (METEO-FRANCE - Météo-France - Météo France)
    Abstract: This article explores the critical role of labour market imperfections in climate stabilisation costs formation. To do so, we use a dynamic recursive energy-economy model that represents a second best world with market imperfections and short-run adjustments constraints along a long-term growth path. We show that the degree of rigidity of the labour markets is a central parameter and we conduct a systematic sensitivity analysis of the model results to this parameter. When labour markets are represented as highly flexible, the model results are in the usual range of existing literature, i.e. less than 2% GDP losses in 2030 for a stabilisation target at 450ppm CO2 equivalent. But when labour markets rigidities are accounted for, mitigation costs increase dramatically. In a second time, the article identifies accompanying measures, namely labour subsidies, which guarantees against the risk of large stabilisation costs in the case of high rigidities of the labour markets. That vision complements the usual view that mitigation is a long-term matter that depends on technology, innovation, investment and behavioural change. Here we add the warning that mitigation is also a shorter-term issue and a matter of transition on the labour market.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866429&r=env
  40. By: Dominique Finon (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: Apart from the UK where it has been widely discussed in the 2011 Electricity Market Reform, energy experts communities are still unaware of the impacts that carbon policies directly focused on the development of low carbon technologies produce on the electricity market regime. Public co-ordination with long term arrangements needs to be introduced as a substitute to long term co-ordination by the market. Indeed, the current market co-ordination makes carbon prices ineffective at orienting investors towards low carbon technologies : fossil fuel generation technologies are preferred because their investment risks are much lower in the market regime. So, in order to avoid delayed investment aiming at the decarbonisation of electricity systems, a number of new market arrangements which lower the investment risk of these technologies are being selected by governments. But, as these low carbon equipments develop, long term co-ordination by the market for the other technologies (peaking units, CCGT) will fade away. That means that in the future, public co-ordination and planning will completely replace market players' decisions, not only for low carbon technologies, but for every capacity development.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866417&r=env
  41. By: Latruffe , Laure; Piet, Laurent; Dupraz, Pierre; Le Mouël, Chantal
    Abstract: This paper investigates the determinants of agricultural land price in several regions in France over the period 1994-2011, using individual plot transaction data, with a particular emphasis on agricultural subsidies and nitrate zoning regulations. It found a positive but relatively small capitalisation effect of the total subsidies per hectare. The data revealed that agricultural subsidies capitalised, at least to some extent, but the magnitude of such a capitalisation depends on the region considered, on the type of subsidy considered, and on the location of the plot in a nitrate surplus zone or not. Only land set-aside premiums significantly capitalise into land price, while single farm payments have a significant positive capitalisation impact only for plots located in a nitrate-surplus zone.
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:eps:fmwppr:163&r=env
  42. By: Horn, Henrik (Research Institute of Industrial Economics (IFN))
    Abstract: Few EU decisions have caused more international outcry than the extension of the EU Emissions Trading System (ETS) to apply to aviation. The directive was legally challenged by US airlines before a UK court, which referred the case to the European Court of Justice (ECJ) for a preliminary ruling concerning the compatibility of the directive with international law. This paper discusses the argumentation by the ECJ and the Advocate General from an economic perspective. Such an analysis is warranted in light of the fact that the contested measure is an economic regulation, the international laws that are invoked have clear economic objectives, and the ECJ judgment and the opinion by the Advocate General at least partly rely on economic concepts and mechanisms. An economic analysis also seems warranted from a legal point of view since the quality of the judgment and of the opinion presumably depend on the soundness of their economic reasoning. It is found that the argumentation by the legal authorities is highly questionable in important parts, when viewed from an economic perspective.
    Keywords: EJC decision on aviation; ETS; Border carbon adjustment
    JEL: K31 K32 L93
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hhs:iuiwop:0980&r=env
  43. By: Emmanuel Combet (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Frédéric GHERSI (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Jean-Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: Cet article vise à dissiper les malentendus sur les impacts distributifs de taxes carbone, malentendus qui constituent un obstacle jusqu'ici dirimant à leur plus ample examen dans les débats publics. Il met en évidence l'écart entre les analyses en équilibre partiel, proches de la perception du coût de la fiscalité par les agents, et les analyses en équilibre général qui cernent la réalité de son coût ultime. Il montre que l'impact réel sur les écarts de revenu entre ménages n'est pas mécaniquement déterminé par les budgets énergie de départ et leur degré de flexibilité et qu'il dépend des modalités de recyclage du produit des taxes et de leurs effets macro-économiques. La comparaison de cinq dispositifs de recyclage met en évidence des zones d'arbitrage entre maximisation de la consommation globale, maximisation de la consommation des populations à bas revenus et réduction des inégalités.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866409&r=env
  44. By: Stiglitz, Joseph E.; Yifu, Justin; Monga, Celestin
    Abstract: This essay is about an important area in which there has been major rethinking -- industrial policy, by which the authors mean government policies directed at affecting the economic structure of the economy. The standard argument was that markets were efficient, so there was no need for government to intervene either in the allocation of resources across sectors or in the choices of technique. And even if markets were not efficient, governments were not likely to improve matters. But the 2008-2009 global financial crisis showed that markets were not necessarily efficient and, indeed, there was a broad consensus that without strong government intervention -- which included providing lifelines to certain firms and certain industries -- the market economies of the United States and Europe may have collapsed. Today, the relevance and pertinence of industrial policies are acknowledged by mainstream economists and political leaders from all sides of the ideological spectrum. But what exactly is industrial policy? Why has it raised so much controversy and confusion? What is the compelling new rationale that seems to bring mainstream economists to acknowledge the crucial importance of industrial policy and revisit some of the fundamental assumptions of economic theory and economic development? How can industrial policy be designed to avoid the pitfalls of some of the seeming past failures and to emulate some of the past successes? What are the contours of the emerging consensus and remaining issues and open questions? The paper addresses these questions.
    Keywords: Climate Change Economics,Public Sector Corruption&Anticorruption Measures,ICT Policy and Strategies,Achieving Shared Growth,Economic Theory&Research
    Date: 2013–09–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6628&r=env
  45. By: Khalil Helioui (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: Cet article propose une analyse économique de la coordination internationale contre le réchauffement planétaire intégrant les perspectives de long terme et les contraintes politiques. Il s'interroge ainsi sur les risques économiques et politiques auxquels les permis d'émission négociables pourraient être exposés du fait de pouvoirs de marché ou de distorsions dynamiques. Les seconds s'avèrent les plus difficiles à contrôler. Si la déconcentration des positions nationales est envisageable, aucun organisme international ne peut prétendre fixer, une fois pour toutes, les objectifs à long terme. Dès lors, anticipant que le montant des quotas futurs sera toujours ajusté au vu des tendances réelles, beaucoup de pays ne s'engageront pas dans des programmes structurels suffisamment ambitieux. Cela risque de compromettre l'efficacité de l'action climatique et de fragiliser plus encore le consensus qui lui est nécessaire. La solution alternative, la taxation internationale du carbone, ne présente pas de tels défauts d'incitation, mais elle pose des difficultés politiques. Une combinaison des deux instruments pourrait toutefois, à terme, s'avérer fructueuse.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866433&r=env
  46. By: Philippe Ambrosi (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Stéphane Hallegatte (METEO-FRANCE - Météo-France - Météo France)
    Abstract: Quels sont les liens entre changement climatique et enjeux de sécurité ? C'est ce que se propose d'explorer cet article en considérant d'abord les menaces qu'il fait peser sur la sécurité humaine, seul ou conjugué à d'autres facteurs. En sont présentés les exemples les plus significatifs, comme les questions de sécurité alimentaire, de disponibilité de l'eau, de vulnérabilité aux événements extrêmes ou de vulnérabilité des territoires insulaires et des régions côtières. Dans un second temps, on examine comment de tels risques pour la sécurité humaine, avec une remise en cause des besoins fondamentaux de certaines populations ou une accentuation de leur précarité, peuvent se muer en enjeux de sécurité collective, notamment selon quatre modalités : exode rural accompagné d'une paupérisation des populations, sources de conflits localisés pour l'usage des ressources, tensions diplomatiques et conflits internationaux, et propagation à des régions initialement épargnées via des flux migratoires.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866405&r=env
  47. By: Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Ana-Sofia Campos (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Alain Nadai (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: An awareness and opinion survey on Carbon Capture and Storage was conducted on a representative sample of French aged 15 years and above. About 6\% of respondents were able to provide a satisfying definition of the technology. The key question about 'approval of or opposition to' the use of CCS in France was asked twice, first after presenting the technology, then after exposing the potential adverse consequences. Approval rates, 59\% and 38\%, show that there is no a priori rejection of the technology, but public trust needs to be build. The sample was split in two to test for a semantic effect : questioning one half about 'Stockage' (English : storage), the other about 'Sequestration'. Manipulating the vocabulary had no statistically significant effect on approval rates. Stockage is more meaningful, but does not convey the idea of permanent monitoring.
    Date: 2013–09–30
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866557&r=env
  48. By: Frédéric Salladarré (CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes 1 - Université de Caen Basse-Normandie); Patrice Guillotreau (INED - Institut National d'Etudes Démographiques Paris - INED, LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Claire-Marine Lesage (Chercheur Indépendant - Aucune); Pierrick Ollivier (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272)
    Abstract: Une certification nationale reconnaissant la qualité écologique des produits de la mer (PDM) tarde à voir le jour en France. Annoncée dans la loi Grenelle I en 2009, le décret relatif à l'écolabel public des produits de la pêche maritime n'a été publié que le 27 janvier 2012 alors que les obtentions d'écolabels privés se multiplient. Dans cet article, les facteurs influençant la perception des consommateurs pour les PDM écolabellisés sont étudiés à partir d'une enquête menée auprès de plus de 900 consommateurs français en 2010. Les résultats montrent que la préférence pour des PDM écolabellisés est plus marquée parmi les jeunes. Les caractéristiques liées au processus de production et de commercialisation comme l'attention portée à l'origine géographique des PDM, à leur caractère sauvage ou aquacole, à la technique de pêche et au degré d'exploitation des ressources, favorisent la demande d'information environnementale des consommateurs.
    Keywords: Écolabels, produits de la mer, préférence environnementale
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00869365&r=env

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