nep-env New Economics Papers
on Environmental Economics
Issue of 2016‒04‒16
forty-four papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. La discutible curva de Kuznets By Fander Falconi; Rafael Burbano; Pedro Cango
  2. Avoided economic impacts of climate change on agriculture: Integrating a land surface model (CLM) with a global economic model (iPETS) By Xiaolin Ren; Matthias Weitzel; Brian O'Neill; Peter Lawrence; Prasanth Meiyappan; Sam Levis; Edward J. Balistreri; Mike Dalton
  3. Dynamic Relationships among CO2 Emissions, Energy Consumption, Economic Growth, and Economic Complexity in France By Can, Muhlis; Gozgor, Giray
  4. The Carbon Footprint of European Households and Income Distribution By Mark Sommer; Kurt Kratena
  5. Not in my backyard: CCS storage sites and public perception of CCS By Braun, Carola
  6. Environment, Energy and Environmental Productivity of Energy: A Decomposition Analysis in China and the US By Mohamad Taghvaee, Vahid; Hajiani, Parviz
  7. Long-Term Productivity Growth and the Environment By Alex Bowen; Tomasz Kozluk
  8. Approaching urban vulnerability to climate change induced risks in socio-environmentally fragmented areas: The case of Santiago de Chile By Krellenberg, Kerstin; Link, Felipe; Welz, Juliane; Barth, Katrin; Harris, Jordan; Irarrázaval, Felipe; Valenzuela, Felipe
  9. TRADE IN CARBON AND THE EFFECTIVENESS OF CARBON TARIFFS By Christoph Böhringer; Jan Schneider; Emmanuel Asane-Otoo
  10. Betting and Belief: Prediction Markets and Attribution of Climate Change By John J. Nay; Martin Van der Linden; Jonathan M. Gilligan
  11. Renewable energy targets in the context of the EU ETS: Whom do they benefit exactly? By Landis, Florian; Heindl, Peter
  12. A Bayesian Approach to Analyzing the Economic Costs of Environmental Regulation in U.S. Dairy Farming By Njuki, Eric; Bravo-Ureta, Boris
  13. A Review of the Circular Economy and its Implementation By Heshmati, Almas
  14. 2016 Global Food Policy Report: Synopsis By International Food Policy Research Institute (IFPRI)
  15. The political drivers of renewable energies policies By Isabelle Cadoret; Fabio Padovano
  16. An Imperfect Storm: Fat-Tailed Hurricane Damages, Insurance and Climate Policy By ; David L. Kelly
  17. Agricultural productivity growth in Latin America and the Caribbean and other world regions: An analysis of climatic effects, convergence and catch-up By Lachaud, Michee Arnold; Bravo-Ureta, Boris E.; Ludena, Carlos E.
  18. Un modèle de décroissance optimale By Marc Germain
  19. Environmental Incentives: Nudge or Tax? By Benjamin Ouvrard; Sandrine Spaeter
  20. Beyond carbon pricing: the role of banking and monetary policy in financing the transition to a low-carbon economy By Emanuele Campiglio
  21. The Market for Wastewater Sludge (Biosolids) By Villy Søgaard
  22. Ökobilanz-Daten für die Erstellung von Fertighäusern in Holzbauweise By Achenbach, Hermann; Rüter, Sebastian
  24. Detecting Volcanic Eruptions in Temperature Reconstructions by Designed Break-Indicator Saturation By David Hendry; Felix Pretis; Lea Schneider; Jason E. Smerdon
  25. Limits to substitution between ecosystem services and manufactured goods and implications for social discounting By Drupp, Moritz A.
  26. Biophysical limits of current debates on degrowth and the knowledge economy By Jesus Ramos-Martin
  27. Defining research gaps concerning the implementation of socio-ecological transition By Teresa Weiss
  28. How Sustainable are the Sustainable Development Goals? An Analysis of the Staple Goals of “No Poverty†and “Zero Hunger††By WALI MONDAL
  29. Spatio-Temporal Precipitation Climatology over Complex Terrain Using a Censored Additive Regression Model By Reto Stauffer; Jakob W. Messner; Georg J. Mayr; Nikolaus Umlauf; Achim Zeileis
  30. Risk contagion under regular variation and asymptotic tail independence By Bikramjit Das; Vicky Fasen
  31. De la durabilité à la responsabilité envers les générations futures By Belkacem OUCHENE; Aurore MORONCINI
  32. Good development support in fragile, at-risk and crisis affected contexts By OECD
  33. Incentives for early adoption of carbon capture technology: Further considerations from a European perspective By Albert Banal-Estañol; Jeremy Eckhause; Olivier Massol
  34. ‘Smart development’. An essay on a new political economy of the environment By Tausch, Arno
  35. Capitalism, Economic Political and slow and fast variables. By Loreno Cecconi
  36. Economic Impacts of Agriculture in Eight Northeastern States By Rigoberto A. Lopez; Nataliya Plesha; Ben Campbell
  37. Human, Lean, Green concept and increasing number of consumers – wind farm example By Nicoletta Baskiewicz; Aneta Pachura
  38. Non-trading behaviour in choice experiments By Ahlheim, Michael; Neidhardt, Jan
  39. On the optimal use of correlated information in contractual design under limited liability By Daniel Danau; Analisa Vinella
  40. Subsidy Policies with Learning from Stochastic Experiences By Cai, Jing; de Janvry, Alain; Sadoulet, Elisabeth
  41. How to achieve significant reduction in pesticide use? An empirical evaluation of the impacts of pesticide taxation associated to a change in cropping practice By Fabienne Féménia; Elodie Letort
  42. Natural Assets: Surfing a Wave of Economic Growth By McGregor, Thomas; Wills, Samuel
  43. Regulatory and economic instruments (REI) to benefit the development of MSEs in Haiti By Philippe Simon
  44. “The Most Dangerous Man on the Planet\ By Mark van de Logt

  1. By: Fander Falconi (Facultad Latinoamericana de Ciencias Sociales, Ecuador); Rafael Burbano (Departamento de Matemática, Escuela Politécnica Nacional, Ecuador); Pedro Cango (Facultad Latinoamericana de Ciencias Sociales, Ecuador)
    Abstract: La curva ambiental de Kuznets (CAK) examina la relación entre crecimiento económico y calidad ambiental. Esta hipótesis asume que en el corto plazo el desarrollo económico empeora el medio ambiente; pero en el largo plazo, a partir de un cierto nivel de ingresos, el crecimiento económico provoca menores niveles de contaminación. La curva ambiental de Kuznets asume la forma de una U invertida. Bajo este supuesto, de manera coherente con la evidencia empírica, el presente estudio demuestra que solo en ciertos países desarrollados se verifica la hipótesis de una curva ambiental de Kuznets entre el ingreso per cápita y las emisiones de dióxido de carbono (CO2) per cápita. Sin embargo, dado que el CO2 es el principal gas de efecto invernadero que provoca el cambio climático global, esta investigación examina la relación entre las emisiones globales de CO2 y el ingreso per cápita. Con este objetivo, utilizamos una regresión por tramos. Los resultados muestran que a partir de un ingreso per cápita de $22.258 (US$ 2005) las emisiones de CO2 se estabilizan (no aumentan ni disminuyen). Es decir, no se cumple la curva ambiental de Kuznets, se cumpliría una forma débil de la CAK. El artículo analiza además las implicaciones de este hecho para el ambiente.
    Keywords: eficiencia energética, divergencia, brechas de conocimiento, curva ambiental de Kuznets
    JEL: Q57
    Date: 2016–03
  2. By: Xiaolin Ren (National Center for Atmospheric Research); Matthias Weitzel (National Center for Atmospheric Research); Brian O'Neill (National Center for Atmospheric Research); Peter Lawrence (National Center for Atmospheric Research); Prasanth Meiyappan (University of Illinois); Sam Levis (The Climate Corporation); Edward J. Balistreri (Division of Economics and Business, Colorado School of Mines); Mike Dalton (National Oceanic and Atmospheric Administration)
    Abstract: Agricultural systems provide food and are also an important part of the economy for many countries, but crop yields are vulnerable to the effects of climate change. We assess the global impacts of climate change on agricultural systems under two climate projections (RCP8.5 and RCP4.5) in order to quantify the difference in impacts as climate change is reduced. We also employ two different socioeconomic pathways (SSP3 and SSP5) to assess the sensitivity of results to the underlying socioeconomic conditions. The integrated Population-Economy-Technology-Science (iPETS) model, a global integrated assessment model for projecting future energy use, land use and emissions, is used in conjunction with the Community Earth System Model (CESM), and particularly its land surface component, the Community Land Model (CLM), to evaluate climate change impacts on agriculture. iPETS results are produced at the level of nine world regions for the period 2005-2100. We employ climate impacts on crop yield derived from CLM, driven by CESM simulations of the two RCPs. These yield effects are applied within iPETS, imposed on baseline and mitigation scenarios for SSP3 and SSP5 that are consistent with the RCPs. We find that the reduced level of warming in RCP4.5 (relative to RCP8.5) can have either positive or negative effects on the economy since crop yield either increases or decreases with climate change depending on assumptions about CO2 fertilization. For example, yields are 10% lower, and crop prices +17% higher, in RCP4.5 relative to RCP8.5 if CO2 fertilization is included, whereas yields are 20% higher, and crop prices 19% lower, if it is not. We also find that in the mitigation scenarios, crop prices are substantially affected by mitigation actions as well as by climate impacts. For the scenarios we evaluated, the development pathway (SSP3 vs SSP5) has a larger impact on outcomes than climate (RCP4.5 vs RCP8.5), by a factor of 3 for crop prices, 11 for total cropland use, and 21 for GDP on global average.
    Keywords: Avoided impacts, climate change, crop yields, CO2 fertilization, integrated assessment
    Date: 2015–12
  3. By: Can, Muhlis; Gozgor, Giray
    Abstract: Environmental degradation is most often brought to the agenda by arousing the attention of scholars, and there has been an increase in the studies on this issue. This paper re-estimates the environmental Kuznets curve in France over the period of 1964–2011. To this end, the unit root test with one structural break and a cointegration analysis with multiple endogenous structural breaks are considered. The impacts of the energy consumption and the economic complexity on CO2 emissions are also included in dynamic empirical models. First, it is found that the environmental Kuznets curve hypothesis is valid in France in both the short and the long run. Second, the positive impact of energy consumption on CO2 emissions is also observed in the long run. Third, it is observed that a higher economic complexity suppresses CO2 emissions in the long run. The evidence suggests important environmental policy implications to suppress CO2 emissions in France.
    Keywords: environmental Kuznets curve; energy consumption; economic complexity; time series modeling; structural breaks; French economy
    JEL: C32 O13 Q55 Q56
    Date: 2016–03–30
  4. By: Mark Sommer; Kurt Kratena
    Abstract: This paper calculates the CO2e (CO2 equivalents) footprint of private consumption in the EU27 by five groups of household income, using a fully fledged macroeconomic input-output model covering 59 industries and five groups of household income for the EU27. Due to macroeconomic feedback mechanisms, this methodology not only takes into account intermediate demand induced by the demand of a household group, but also: (i) private consumption induced in the other household groups, (ii) impacts on other endogenous final demand components, and (iii) negative feedback effects due to output price effects of household demand. Direct household emissions from household energy consumption are taken into account in a non-linear specification. Emissions embodied in imports are calculated using the results of a static MRIO (Multi-Regional Input-Output) model. The footprint is calculated separately for the consumption vector of each of the five income groups. The simulation results yield an income elasticity of direct and indirect emissions at each income level that takes all macroeconomic feedbacks of consumption into account and differs from the ceteris paribus emission elasticity in the literature. The results further reveal that a small structural ‘Kuznet effect’ exists.
    Keywords: Carbon footprint, CGE modeling, income distribution
    JEL: C67 Q52 Q54
    Date: 2016–03
  5. By: Braun, Carola
    Abstract: Carbon capture and storage (CCS) is a technology that counteracts climate change by capturing atmospheric emissions of CO2 from human activities, storing them in geological formations underground. However, CCS also involves major risks and side effects, and faces strong public opposition. Recently, the whereabouts of 408 potential CCS storage sites in Germany have been released. Using detailed survey data on the public perception of CCS, I quantify how living close to a potential storage site affects the acceptance of CCS. I also analyse the influence of other regional characteristics on the acceptance of CCS. I find that respondents who live close to a potential CCS storage place have significantly lower acceptance rates than those who do not. Living in a tourism or mining region also markedly decreases acceptance.
    Keywords: carbon capture and storage,NIMBY,climate change mitigation
    JEL: Q54 D19 C93
    Date: 2016
  6. By: Mohamad Taghvaee, Vahid; Hajiani, Parviz
    Abstract: The global warming, if not global burning, is a dire warning about environmental pollution dangers to everyone, living on the only one Earth. This study aims to measure relative contributors to the environmental quality changes during 2002-2011 using Logarithmic Mean Divisia Index in China and the US. Since these countries are the biggest polluters in the world, the decomposition technique is used to cut their wide environmental issues into the tiny bits of problems, being easy to cope with. Moreover, we employed Environmental Performance Index (EPI) to evolve the concept of Environmental Productivity of Energy (EPE). The results suggest that economic growth and income equality are environmentally-friendly while energy consumption is environmentally-unfriendly; and the Environmental Productivity of Energy (EPE) and technology progress are environmentally-moody (with various effects on environment). Consequently, the policy makers are advised to develop those economic sectors which are independent of pollutant energies; to replace the black energies by the green ones; and to invest on the research about the products whose demand is price inelastic.
    Keywords: Environment, Energy, Productivity, Decomposition
    JEL: Q5
    Date: 2016
  7. By: Alex Bowen; Tomasz Kozluk
    Abstract: The natural environment provides crucial inputs and services for economic development, but its role for productivity growth is insufficiently explored. Environmental scarcities can pose a drag on productivity growth and a risk for its sustainability. At the same time productivity growth is often seen as the solution to environmental challenges. Methodological problems abound, overall the literature suggests that environmental issues are a potentially important risk factor. Theoretical models tend to focus the role of resource-augmenting technical progress in the long run, in light of environmental constraints. Macroeconomic studies suggest the contribution of the natural environment to productivity growth has been modest overall. Microeconomic studies focus on partial equilibrium impacts, which in many cases have been found larger than expected. Finally, case-studies of historical civilisation collapses suggest the risks may be significant. Le milieu naturel fournit des ressources et des services cruciaux pour le développement économique, mais son rôle dans la croissance de la productivité n’est pas suffisamment étudié. Les pénuries de ressources environnementales peuvent engendrer un frein à la croissance de la productivité et un risque pour sa pérennité. Dans le même temps, la croissance de la productivité est souvent considérée comme la solution aux défis environnementaux. Les problèmes méthodologiques abondent, mais dans l'ensemble, les rapports suggèrent que les questions environnementales sont un facteur de risque potentiellement important. Les modèles théoriques ont tendance à se concentrer sur l’impact du progrès technique et l’augmentation des ressources dans le long terme, à la lumière des contraintes environnementales. Les études macroéconomiques suggèrent que la contribution de l'environnement naturel dans la croissance de la productivité a été globalement modeste. Les études microéconomiques quant à elles se concentrent sur les impacts d'équilibre partiel, qui dans de nombreux cas se sont révélés plus importants que prévus. Enfin, des études de cas sur l'effondrement des civilisations historiques suggèrent que les risques peuvent être importants.
    Keywords: environmental services, sustainability, productivity growth, environment, natural resource scarcity, rareté des ressources naturelles, environnement, durabilité, services environnementaux, croissance de la productivité
    JEL: O13 O44 Q56
    Date: 2016–04–12
  8. By: Krellenberg, Kerstin; Link, Felipe; Welz, Juliane; Barth, Katrin; Harris, Jordan; Irarrázaval, Felipe; Valenzuela, Felipe
    Abstract: [Foreword ...] The present report contains the results of the initial working steps of the CLAVE project which is a) the theoretical combination of fragmentation and vulnerability, and b) the development of a methodology for assessing socio-environmental fragmentation and residential vulnerability in order to enhance the overall knowledge of urban vulnerability. This is seen as the primary prerequisite for the subsequent elaboration and implementation of local adaptation measures. The different methodological steps and in-depth analyses to be undertaken are described by using selected municipalities within the MAS. Chapter 2 focuses on describing the underlying problem of linking the theoretical approaches of fragmentation and vulnerability from a general point of view. Existing approaches presented by other authors are discussed, in order to link as well as distinguish the work presented here with/from others. Chapter 3 shows how the concepts of fragmentation and vulnerability are interlinked from the project’s point of view. Chapter 4 describes the theoretical background of climate change adaptation and adaptive capacity in order to allow a better understanding of both the CLAVE project approach and its application. The case study, the MAS, is described and illustrated in Chapter 5 by providing a general overview of the city together with existing findings with regard to fragmentation and vulnerability. This chapter thereby explains the context in which the approach is to be applied. Chapter 6 presents the project’s methodological framework with its three-stage approach as an integrated assessment of urban vulnerability to climate change. Options for validating the approach are likewise discussed. Chapter 7 summarizes the main conclusions and provides an outlook by describing success stories and lessons learned for validating the theoretical approach. The development of strategies to deal with future climate change in these and other regions worldwide is discussed.
    Date: 2015
  9. By: Christoph Böhringer (University of Oldenburg, Department of Economics); Jan Schneider (University of Oldenburg, Department of Economics); Emmanuel Asane-Otoo (University of Oldenburg, Department of Economics)
    Abstract: Carbon-based import tariffs are discussed as policy measures to reduce carbon leakage and increase the global cost-effectiveness of unilateral CO2 emission pricing. We assess how the potential of carbon tariffs to increase cost-effectiveness of unilateral climate policy depends on the magnitude and composition of carbon embodied in trade. For our assessment, we combine multi-region input-output (MRIO) analysis with computable general equilibrium (CGE) analysis based on data from the World Input-Output Database (WIOD) for the period 1995 to 2007. The MRIO analysis confirms that carbon embodied in trade has sharply increased during this period. Yet, the CGE analysis suggests that the effectiveness of carbon tariffs in reducing leakage and improving global-cost effectiveness of unilateral climate policy does not increase over time, whereas the potential to shift the economic burden of CO2 emissions reduction from abating developed regions to non-abating developing regions increases substantially.
    Keywords: carbon tariffs; unilateral climate policy; computable general equilibrium
    JEL: Q58 D57 D58
    Date: 2016–04
  10. By: John J. Nay; Martin Van der Linden; Jonathan M. Gilligan
    Abstract: Despite much scientific evidence, a large fraction of the American public doubts that greenhouse gases are causing global warming. We present a simulation model as a computational test-bed for climate prediction markets. Traders adapt their beliefs about future temperatures based on the profits of other traders in their social network. We simulate two alternative climate futures, in which global temperatures are primarily driven either by carbon dioxide or by solar irradiance. These represent, respectively, the scientific consensus and a hypothesis advanced by prominent skeptics. We conduct sensitivity analyses to determine how a variety of factors describing both the market and the physical climate may affect traders' beliefs about the cause of global climate change. Market participation causes most traders to converge quickly toward believing the "true" climate model, suggesting that a climate market could be useful for building public consensus.
    Date: 2016–03
  11. By: Landis, Florian; Heindl, Peter
    Abstract: We study how European climate and energy policy targets affect different member states and households of different income quintiles within the member states. We find that renewable energy targets in power generation, by reducing EU ETS permit prices, may make net permit exporters worse off and net permit importers better off. This effect appears to dominate the effciency cost of increasing the share of energy provided by renewable energy sources in the countries that adopt such targets. While an increase in prices for energy commodities, which is entailed by the policies in question, affects households in low income quintiles the most, recycling revenues from climate policy allows governments to compensate them for the losses. If renewable targets reduce the revenues from ets permit auctions, member states with large allocations of auctionable permits will lose some of the ability to do so.
    Keywords: distributional effects,EU climate policy,renewable energy target
    JEL: H23 Q52 Q54
    Date: 2016
  12. By: Njuki, Eric (University of Connecticut); Bravo-Ureta, Boris (University of Connecticut)
    Abstract: This paper develops a comprehensive pollution index based on EPA (2009) methodologies, which contrasts with previous studies that rely on partial measures based only on surplus nitrogen stemming from the over-application of fertilizer. Second, it uses a directional output distance function on a Bayesian framework, to generate empirical estimates of the economic impact associated with hypothetical environmental regulations in the dairy sector. Results indicate that on average, values of foregone output following regulatory intervention lead to revenue losses ranging from 1.8% to 13.1% across different regions between 1978 and 2007.
    Keywords: Environmental regulation, undesirable outputs, directional output distance function, Morishima elasticity of substitution, Bayesian framework, shadow prices, dairy farming
    JEL: D22 Q15 Q52
    Date: 2014–05
  13. By: Heshmati, Almas (Jönköping International Business School (JIBS), Centre of Excellence for Science and Innovation Studies (CESIS),& Department of Economics, Sogang University.)
    Abstract: Circular economy (CE) is a sustainable development strategy that is being proposed to tackle urgent problems of environmental degradation and resource scarcity. CE’s 3R principles are to reduce, reuse and recycle materials. The principles account for a circular system where all materials are recycled, all energy is derived from renewables; activities support and rebuild the ecosystem and support human health and a healthy society and resources are used to generate value. This study is a review of the rapidly growing literature on CE covering its concept and current practices and assessing its implementation. The review also serves as an assessment of the design, implementation and effectiveness of CE related policies. It first presents the concept of CE and compares it with the current linear economy of taking materials, producing goods and disposing waste. It explains why it is imperative to move away from a linear economy towards regenerative sustainable industrial development with a closed loop. The paper then introduces current practices that have been introduced and discusses standards for the assessment of CE’s development and performance. The main focus here is on providing a summary of the data analysis of key CE indicators to give a picture of CE practices. Third, based on an analysis of literature, the paper identifies the underlying problems and challenges to CE in an entrepreneurial perspective. Finally, the review provides a conclusion on CE’s current development and gives policy suggestions for its future development as part of an entrepreneurial and innovative national level development strategy.
    Keywords: Circular economy; environmental policy; national development strategy; sustainable development strategy; entrepreneurial strategy
    JEL: E01 F18 H23 O44 Q50 Q53 Q55 Q58 R11
    Date: 2016–04–05
  14. By: International Food Policy Research Institute (IFPRI)
    Abstract: The Global Food Policy Report is IFPRI’s flagship publication. This year’s annual report examines major food policy issues, global and regional developments, and commitments made in 2015, and presents data on key food policy indicators. The report also proposes key policy options for 2016 and beyond to achieve the Sustainable Development Goals. In 2015, the global community made major commitments on sustainable development and climate change. The global food system lies at the heart of these commitments—and we will only be able to meet the new goals if we work to transform our food system to be more inclusive, climate-smart, sustainable, efficient, nutrition- and health-driven, and business-friendly.
    Keywords: agricultural research; agricultural development; economic development; agricultural policies; governance; poverty; conflicts; food security; food policies; climate change; sustainability; water; water management; nutrition; food consumption; malnutrition; health; land degradation; land management; soil fertility; soil carbon; energy; smallholders; markets; value chains; gender; women; resilience; social protection; social safety nets; post harvest losses; food loss and waste; spillage; spoilage; sustainable development goals (SDGs); Africa South of Sahara; South Asia; Latin America; Africa; Asia; South America; Americas
    Date: 2016
  15. By: Isabelle Cadoret (UR1 - Université de Rennes 1, CREM - Centre de Recherche en Economie et Management - UR1 - Université de Rennes 1 - Université de Caen Basse-Normandie - CNRS - Centre National de la Recherche Scientifique); Fabio Padovano (Roma Tre University, CREM - Centre de Recherche en Economie et Management - UR1 - Université de Rennes 1 - Université de Caen Basse-Normandie - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper empirically analyzes how political factors affect the deployment of renewable energy (RE) sources and compares their explanatory power to that of other economic, energy and environmental drivers that have received greater attention in the literature so far. The sample encompasses the EU countries bound to attain the target of 20% share of gross final energy consumption by 2020. The panel data analysis shows that lobbying by the manufacturing industry negatively affects RE deployment, whereas standard measures of government quality show a positive effect; furthermore left wing parties promote the deployment of RE more than right wing ones.
    Keywords: renewable energy sources, energy policy, quality of government, lobbying, political ideology
    Date: 2016–03
  16. By: (Department of Economics, Fordham University); David L. Kelly (Department of Economics, University of Miami)
    Abstract: We perform two tests that estimate the thickness of the tails of the distribution of aggregate US hurricane damages. Both tests reject the hypothesis that the distribution of damages is thin tailed at the 95% confidence level, even after correcting for inflation, population, and per capita income growth. Our point estimates of the shape parameter of the damage distribution indicate that the distribution has finite mean, but infinite variance. In the second part of the paper, we develop a microfoundations model of insurance and storm size that generates fat tails in aggregate hurricane damages. In the model, the distribution of the number properties within a random geographical area that lies in the path of a hurricane drives fat tails in hurricane damages, and we confirm that the distribution of coastal city population is fat tailed in the US. We show empirically and theoretically that other random variation, such as the distribution of hurricane strength and the distribution of damages across individual properties do not generate fat tails. We consider policy options such as climate change mitigation, policies which encourage adaptation, reducing subsidies for coastal development, and disaster relief policies, which distort insurance markets. Such policies can reduce the thickness of the tail, but do not affect the shape parameter or the existence of the fat tail.
    Keywords: Natural disasters, fat tails, hurricanes, adaptation, disaster aid, property insurance Publication Status: Under Review
    JEL: Q54 H84 Q58 R11
    Date: 2016–02–02
  17. By: Lachaud, Michee Arnold (University of Connecticut); Bravo-Ureta, Boris E. (University of Connecticut); Ludena, Carlos E. (Inter-American Development Bank)
    Abstract: This study estimates Climate Adjusted Total Factor Productivity (CATFP) for agriculture in Latin America and Caribbean (LAC) countries, while also providing comparisons with several regions of the world. Climatic variability is introduced in Stochastic Production Frontier (SPF) models by including average annual maximum temperature, precipitation and its monthly intra-year standard deviations, and the number of rainy days. Climatic conditions have a negative impact on production becoming stronger at the end of the 2000s compared to earlier periods. An Error Correction Model is applied to investigate catch-up and convergence across LAC countries. Argentina defines the frontier in LAC and TFP convergence is found across all South American countries, Costa Rica, Mexico, Barbados and The Bahamas. Using IPCC 2014 scenarios, the study shows that climatic variability induces significant reductions in productivity (2.3% to 10.7%), over the 2013-2040 period.
    Keywords: Agriculture, Total Factor Productivity, Stochastic Production Frontiers, Climate Effects, Convergence, Forecasting, Latin America and the Caribbean
    JEL: D24 Q54 O47 E27
    Date: 2015–09
  18. By: Marc Germain (LEM-CNRS (UMR 9221), Université de Lille 3 and UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: Dans le cadre d'un modèle de croissance à la Ramsey avec ressource naturelle et pollution et reposant sur certains postulats de l'économie écologique, ce papier étudie les effets de politiques de décroissance volontaire sur la production et le bien-être. L'instrument de ces politiques est une taxe prélevée sur la ressource naturelle. Ces politiques sont appliquées par les pouvoirs publics suite au retournement de la fonction d'utilité des ménages induit par l'augmentation de la pollution. Par rapport à la situation de laisser-faire, leur résultat est à la fois de réduire la production et la pollution d'une part, et d'accroître le bien-être d'autre part. Une réaction plus tardive des autorités publiques suite au retournement de la fonction d'utilité des ménages implique que la taxation de la ressource naturelle doit être plus élevée pendant les premières périodes. Si la préférence pour le futur des autorités est plus grande, alors les gains d'utilité dus à la politique de décroissance sont moindres pour les premières générations de la dynastie et supérieurs pour les suivantes. L'impact du progrès technique économisant la ressource ou améliorant le traitement de la pollution est également analysé. With the help of a growth model à la Ramsey with a natural resource and pollution and relying on postulates of ecological economics, this paper studies the impact of voluntary degrowth policies on production and welfare. The instrument of these policies is a tax levied on the natural resource. These policies are assumed to be applied by the public authorities after the downturn of the households'utility function due to the increase of pollution. With respect to the laisser-faire situation, their impact is to simultaneously decrease production and pollution on the one hand and increase welfare on the other. A delayed reaction of the public authorities after the turnover of the households'utility function implies a higher tax rate on the resource during the first periods. If the authorities'preference for the future is higher, then welfare gains from the degrowth policy are lower for the first generations of the dynasty and higher for the later. The impact of technical progress saving the resource or improving the pollution treatment is also analysed.
    Keywords: degrowth, steady state economics, pollution tax
    JEL: O44 O49 Q57
    Date: 2016–03–16
  19. By: Benjamin Ouvrard; Sandrine Spaeter
    Abstract: We consider a model where individuals can voluntarily contribute to improve the quality of the environment. They di er with regard to their confidence in the announcement made by the regulator about the risk of pollution, modelized in a RDEU model, and to their environmental sensitivity. We compare the efficiency of a tax in increasing individual contributions with the advantages of a nudge based on the announcement of the social optimum to each individual. Under some conditions, a nudge performs better than a tax, in particular, because the individual reaction depends directly on sensitivity, while only indirectly with a tax. Moreover, a nudge does not require information about private contributions, contrary to a tax based on the contributions that are not provided compared to the social optimum. Lastly, its implementation is much cheaper. Yet, some drawbacks are discussed and simulations illustrate our results.
    Keywords: incentives; nudge; environmental sensitivity; probability distorsion; tax.
    JEL: Q50 D8
    Date: 2016
  20. By: Emanuele Campiglio
    Abstract: It is widely acknowledged that introducing a price on carbon represents a crucial precondition for filling the current gap in low-carbon investment. However, as this paper argues, carbon pricing in itself may not be sufficient. This is due to the existence of market failures in the process of creation and allocation of credit that may lead commercial banks – the most important source of external finance for firms – not to respond as expected to price signals. Under certain economic conditions, banks would shy away from lending to low-carbon activities even in presence of a carbon price. This possibility calls for the implementation of additional policies not based on prices. In particular, the paper discusses the potential role of monetary policies and macroprudential financial regulation: modifying the incentives and constraints that banks face when deciding their lending strategy - through, for instance, a differentiation of reserve requirements according to the destination of lending - may fruitfully expand credit creation directed towards low-carbon sectors. This seems to be especially feasible in emerging economies, where the central banking framework usually allows for a stronger public control on credit allocation and a wider range of monetary policy instruments than the sole interest rate.
    Keywords: green investment; low-carbon finance; banking; credit creation; green macroprudential regulation; monetary policy
    JEL: E50 G20 Q56
    Date: 2015–03–27
  21. By: Villy Søgaard (Department of Environmental and Business Economics, University of Southern Denmark)
    Abstract: Despite public approval from the Danish Environmental Protection Agency (Miljøstyrelsen), farmers have proven reluctant to accept wastewater sludge as a source of fertilizer. They are in fact still being paid for accepting it. Based on interviews with key stakeholders, a review of the literature, and theoretical reflections this paper analyses the barriers to the recycling of wastewater sludge.
    Keywords: Sludge, recycling, wastewater treatment
    JEL: Q13 Q15 Q21 Q24 Q25 Q53 Q55
    Date: 2016–04
  22. By: Achenbach, Hermann; Rüter, Sebastian
    Abstract: Durch Energieeinsparungen in der Nutzungsphase eines Gebäudes gewinnen Produktions-, Konstruktions- und Entsorgungsphase eines Gebäudes immer mehr an Bedeutung. Für eine ganzheitliche Nachhaltigkeitsbewertung hat das Europäische Komitee für Normung (CEN) daher einen horizontalen Normensatz entwickelt, der u.a. die Umweltbewertung von Bauprodukten und Gebäuden über ihren gesamten Lebensweg ermöglicht (DIN EN 15804/15978). Um die Umweltwirkungen der Produktions- und Konstruktionsphase von in Deutschland hergestellten Bauelementen (1 m2 Innen-/Außenwand, 1 m2 Dachelement, 1 m2 Deckenelement) sowie durchschnittlichen Fertighäusern in Holztafel- und Holzskelettbauweise zu erfassen, wurde eine Ökobilanzierung gemäß den aktuellen Europäischen Normen durchgeführt. Die erarbeiteten Ökobilanzdaten repräsentieren den Durchschnitt von 12 Mitgliedsunternehmen des Bund Deutscher Fertigbau e.V. (BDF). Neben der Bereitstellung durchschnittlicher Ökobilanzdaten liegt ein methodischer Fokus der Arbeit auf der Anwendung der modularen Lebenszyklusbetrachtung nach DIN EN 15804/15978 auf ein Konstruktionssystem mit hohem Vorfertigungsgrad. Um den Anforderungen von DIN EN 15804 gerecht zu werden, mussten die Sachbilanzdaten der deklarierten/funktionellen Einheiten auf Basis von Jahresdaten der einzelnen Werkstandorte berechnet werden. Die größte Herausforderung bestand somit darin, ein Modell zu entwickeln, das die jährlichen auf Werksebene auftretenden Input- und Outputflüsse auf die deklarierten/ funktionellen Einheiten umrechnet. [...]
    Abstract: Energy savings in the use phase of a buildings' life cycle increased the relative importance of the environmental impacts of the product-, construction- and end-of-life stages of a building. Thus, the European Committee for Standardization (CEN) has developed a set of horizontal standards that enables the sustainability assessment of construction works including the evaluation of associated environmental impacts of building products and buildings over its entire life cycle (EN 15804/15978). Consistent with the European state-of-the-art standards a life cycle assessment (LCA) was carried out to determine the environmental impact of the production and construction stage of building elements (1 m2 inner/outer wall, 1 m2 roof element, 1 m ceiling element) and an average prefabricated timber house produced in Germany. Besides the supply of average LCA-data methodical aspects are discussed. A particular focus was set on the application of the modular life cycleprinciple according to EN 15804/15978 to construction systems with a high level of prefabrication. In order to be in line with EN 15804 the life cycle inventories (LCI) of the declared/functional units had to be calculated by annual data of each factory site (house manufactories). Thus, the main challenge was to develop a model that calculates the annual input- and output-flows to the defined declared/functional units on factory level. [...]
    Keywords: Ökobilanzierung,Holzgebäude,Fertigbau,Datenerhebung,Nachhaltiges Bauen,life cycle assessment,timber houses,prefabricated construction,data collection,sustainable building
    Date: 2016
  23. By: Oksana Seroka-Stolka (Czestochowa University of Technology); Justyna Lukomska-Szarek (Czestochowa University of Technology)
    Abstract: Nowadays, many companies are under pressure to take care about the natural environment. However, companies differ from one to another because of their response to natural environment. For this reason companies implement different environmental strategies. The literature indicates a continuum range from passive to proactive strategies. The proactive strategies are typical for companies that voluntarily take measures to reduce their impact on the natural environment. The reasons for a lack of environmental proactive strategies are very complex. Some of the factors both from outside and inside the firms discourage them to implement proactive environmental strategies. The aim of the article is to present the influence of external and internal barriers perceived by managers which inhibit implementing the proactive environmental strategies in Polish companies because of the gap of knowledge.
    Keywords: Keywords: proactive environmental strategies, proactivity, barriers, companies.
    JEL: Q01
  24. By: David Hendry; Felix Pretis; Lea Schneider; Jason E. Smerdon
    Abstract: Abstract: We present a methodology for detecting structural breaks at any point in time-series regression models using an indicator saturation approach. Building on recent developments in econometric model selection for more variables than observations, we saturate a regression model with a full set of designed break functions. By selecting over these break functions using an extended general-to-specific algorithm, we obtain unbiased estimates of the break date and magnitude. Monte Carlo simulations confirm the approximate properties of the approach. We assess the methodology by detecting volcanic eruptions in a time series of Northern Hemisphere mean temperature spanning roughly 1200 years, derived from a fully-coupled global climate model simulation. Our technique demonstrates that historic volcanic eruptions can be statistically detected without prior knowledge of their occurrence or magnitude- and hence may prove useful for estimating the past impact of volcanic events using proxy-reconstructions of hemispheric or global mean temperature, leading to an improved understanding of the effect of stratospheric aerosols on temperatures. The break detection procedure can be applied to evaluate policy impacts as well as act as a robust forecasting device.
    Keywords: Indicator Saturation, Model Selection, Location Shifts, Climate,Temperature, Volcanic Eruptions
    JEL: C22 C52 Q54
    Date: 2016–02–12
  25. By: Drupp, Moritz A.
    Abstract: This paper examines implications of limits to substitution for estimating substitutability between ecosystem services and manufactured goods and for social discounting. Based on a model that accounts for a subsistence requirement in the consumption of ecosystem services, we provide empirical evidence on substitution elasticities. We find an initial mean elasticity of substitution of two, which declines over time towards complementarity. We subsequently extend the theory of dual discounting by introducing a subsistence requirement. The relative price of ecosystem services is non-constant and grows without bound as their consumption declines towards the subsistence level. An application suggests that the initial discount rate for ecosystem services is more than a percentage-point lower as compared to manufactured goods. This difference increases by a further half percentage-point over a 300-year time horizon. The results underscore the importance of considering limited substitutability in long-term public project appraisal.
    Keywords: Limited substitutability,Dual discounting,Ecosystem services,Subsistence,Project evaluation,Sustainability
    JEL: Q01 Q57 H43 D61 D90
    Date: 2016
  26. By: Jesus Ramos-Martin (Facultad Latinoamericana de Ciencias Sociales, Ecuador)
    Abstract: New or revived concepts such as degrowth and the knowledge economy represent a necessary criticism to the conventional view on economic growth, especially in regard to their environmental criticism. Both ideas are related as degrowth needs the application of knowledge in order to be operationalised and both share as a desirable outcome the reduction of working time. However, both concepts also bear common flaws in their criticism, due to the lack of attention in their analysis of the biophysical side of the economic process that has been analysed in approaches such as societal metabolism. The document discusses these weaknesses with the aim of stirring the much needed debate on the limits to growth.
    Keywords: Degrowth, knowledge, sustainability, complexity, societal metabolism
    JEL: O11 O44 Q43 Q57
    Date: 2016–03
  27. By: Teresa Weiss
    Abstract: This paper summarizes future research questions for each driver of change based on the outcomes of the WWWforEurope project and the derived policy recommendations. Firstly, a broad research question is suggested for each driver indicating the main focus of interest. In a second step, several analytical aspects as well as policy aspects are defined to specify the broad research questions (for an overview of all analytical and policy aspects see Aiginger 2016, p. 128). While focussing on the seven drivers of change when formulating the research questions, attention was also paid to so-called cross-cutting issues (e.g. gender aspects, strategies for implementing the Paris climate agreements). The research gaps are based on the fundamental insight of WWWforEurope that highlights the importance of applying a comprehensive and integrated approach for achieving the three strategic project goals instead of following a silo approach.
    Date: 2016–03
  28. By: WALI MONDAL (National University)
    Abstract: In June 2012, The United nations Conference on Sustainable Development was held in Rio de Janeiro, Brazil. The Conference, popularly known as Rio+20 produced a set of 17 Sustainable Development Goals (SDGs) which were officially launched at the conclusion of the target year of achieving the 8 Millennium Development Goals (MDGs) by 2015. The objective of this paper is to analyze Goal 1 and Goal 2 of the SDG in relation to the set of 17 SDGs and with reference to the achievement of Goal 1 of the MDG.The primary focus of the MDGs was eradication of extreme poverty and hunger. Of the 8 MDGs adopted by the Millennium Summit of the United Nations in 2000, the first goal was “To eradicate extreme poverty and hunger†. Extreme poverty was defined as earning $1.25 per day. The Millennium Development Goals Report 2015 published by the United Nations shows that extreme poverty in developing countries has declined from 47 percent of total population in 1990 to 14 per cent of total population in 2015. In terms of numbers, 836 million people in the developing countries still live in extreme poverty.While eradication of poverty and hunger still remain the fundamental focus of the SDGs, the Rio+20 produced a set of more elaborate goals more than twice the number of MDGs. The first two SDGs are:Goal 1: End poverty in all its form everywhereGoal 2: End hunger, achieve food security and improved nutrition and promote sustainable agricultureThe above two SDGs are further broken down into subsets of achievable goals with target dates ranging from 2025 to 2030.The paper analyzes poverty “in all its form†and discusses the United Nation’s target dates of eradicating various forms of poverty. A historical analysis is presented about selecting the $1.25 per day on the purchasing power parity basis as the yardstick for extreme poverty. In doing so, the paper analyzes the set of 17 SDGs as the basis for sustainability of economic development.
    Keywords: Sustainable development goals, Millennium development goals, Extreme poverty, Hunger, Purchasing power parity
    JEL: A10 C51 F01
  29. By: Reto Stauffer; Jakob W. Messner; Georg J. Mayr; Nikolaus Umlauf; Achim Zeileis
    Abstract: Flexible spatio-temporal models are widely used to create reliable and accurate estimates for precipitation climatologies. Most models are based on square root transformed monthly or annual means, where a normal distribution seems to be appropriate. This assumption becomes invalid on a daily time scale as the observations involve large fractions of zero-observations and are limited to non-negative values. We develop a novel spatio-temporal model to estimate the full climatological distribution of precipitation on a daily time scale over complex terrain using a left-censored normal distribution. The results demonstrate that the new method is able to account for the non-normal distribution and the large fraction of zero-observations. The new climatology provides the full climatological distribution on a very high spatial and temporal resolution, and is competitive with, or even outperforms existing methods, even for arbitrary locations.
    Keywords: climatology, precipitation, complex terrain, GAMLSS, censoring, daily resolution
    JEL: C53 C61 Q50
    Date: 2016–04
  30. By: Bikramjit Das; Vicky Fasen
    Abstract: Risk contagion concerns any entity dealing with large scale risks. Suppose (X,Y) denotes a risk vector pertaining to two components in some system. A relevant measurement of risk contagion would be to quantify the amount of influence of high values of Y on X. This can be measured in a variety of ways. In this paper, we study two such measures: the quantity E[max(X-t,0)|Y > t] called Marginal Mean Excess (MME) as well as the related quantity E[X|Y > t] called Marginal Expected Shortfall (MES). Both quantities are indicators of risk contagion and useful in various applications ranging from finance, insurance and systemic risk to environmental and climate risk. We work under the assumptions of multivariate regular variation, hidden regular variation and asymptotic tail independence for the risk vector (X,Y). Many broad and useful model classes satisfy these assumptions. We present several examples and derive the asymptotic behavior of both MME and MES as the threshold t tends to infinity. We observe that although we assume asymptotic tail independence in the models, MME and MES converge to 1 under very general conditions; this reflects that the underlying weak dependence in the model still remains significant. Besides the consistency of the empirical estimators, we introduce an extrapolation method based on extreme value theory to estimate both MME and MES for high thresholds t where little data are available. We show that these estimators are consistent and illustrate our methodology in both simulated and real data sets.
    Date: 2016–03
  31. By: Belkacem OUCHENE (Warocqué School of Business & Economics, University of Mons, Belgium); Aurore MORONCINI (Warocqué School of Business & Economics, University of Mons, Belgium)
    Abstract: The theme of responsibility towards future generations develops at the same level as that of sustainable development, in a multidisciplinary scientific setting where economic theories alongside other areas. This article is part of this multidisciplinary in beyond traditional economy. It explores the relationship between sustainable development and responsibility project by reviewing the theoretical foundations and the excesses which led a superficial approach to sustainable development. In this regard, we are trying to benefit from the contribution of various analyzes in understanding the relationship between sustainability and responsibility project.
    Keywords: Environment, sustainability, responsibility to future generations Ethics
    Date: 2016–02
  32. By: OECD
    Abstract: New thinking on the nature of fragility and risk shows a shift from a one-dimensional understanding of fragility towards a more holistic approach in which degrees of fragility exist on a spectrum. This approach recognises the need for collaborative, regional and global solutions to tackle the root causes - and that acknowledges the need to broaden the use of institutional influences, policy levers and expertise “beyond aid”. In parallel, many development co-operation agencies are working to meet commitments under the newly agreed Sustainable Development Goals, the Paris Agreement on climate change, and the Addis Ababa Action Agenda on financing sustainable development. In this context, the OECD Development Assistance Committee (DAC) commissioned a study on how to work more effectively in fragile, at-risk and crisis-affected contexts. This report identifies 12 lessons grouped into 3 thematic areas: building institutional fitness, aspiring to deliver change, and leaving no-one behind. These lessons are illustrated with a wealth of good practice examples from DAC members.
    Keywords: aid effectiveness, Donorship, fragile states, conflict
    Date: 2016–04–12
  33. By: Albert Banal-Estañol (Université de Londres - Université de Londres); Jeremy Eckhause (RAND Corp - RAND Corp); Olivier Massol (IFPEN - IFP Energies Nouvelles - IFP Energies Nouvelles, IFP School - IFP Energies Nouvelles)
    Abstract: This note details two comments on a recent policy proposal in Comello and Reichelstein (2014) aimed at favoring the early adoption of Carbon Capture (CC) technology in the next generation of thermal-based power plants to be installed in the United States. First, we examine the implications of a worst-case scenario in which no new CC is adopted internationally beyond what is in place in 2014. Second, we show the potential, under the original proposed subsidy, for the emergence of coordination failures capable of hampering the desired early CC deployment. We propose and evaluate modified schedules of tax-credits sufficient to overcome these concerns. These additions strengthen the argument in the original article: namely, though higher incentive levels are necessary, our findings confirm that the cost of the proposed policy is not out of reach.
    Keywords: Coordination failure,Levelized cost,Learning effects,Tax incentives,Carbon Capture and Storage
    Date: 2016
  34. By: Tausch, Arno
    Abstract: In this book, we present a first empirical reflection on ‘smart development’, its measurement and its possible ‘drivers’ and ‘bottlenecks’. We first provide cross-national data, how much ecological footprint is used in the nations of the world system to ‘deliver’ a given amount of democracy, economic growth, gender equality, human development, research and development, and social cohesion. To this end, we first developed UNDP-type performance indicators from current standard international comparative, cross-national social science data on these six main dimensions of development and on the combined performance on the six dimensions (a UNDP type ‘human development index plus’). We then show the non-linear standard OLS regression trade-offs between ecological footprints per capita and their square on these six components of development and the overall super-UNDP development performance index, derived from them. The residuals from these regressions are our new measures of smart development: a maximum of democracy, economic growth, gender equality, human development, research and development, social cohesion, and their combination with a minimum of ecological footprint. Our estimates underline the enormous importance of the positive effects of received worker remittances on smart development.
    Keywords: C43 - Index Numbers and Aggregation Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth F22 - International Migration F-24 – Remittances
    JEL: C43 F22 F24 Q56
    Date: 2016–03–22
  35. By: Loreno Cecconi
    Abstract: In this paper we analyze the problem of the intensity and the diffusion times in the macroeconomic system of the measures of political economic by the Government, focusing on those indirect. We try to show how these effects and diffusion speedy depend crucially on the behaviour of economic agents which often act independently of each other looking for maximum personal gain. The conflicting nature of the capitalistic economic system does not allow us to make specific predictions about the effectiveness of such measures, as the Government has little capacity to control over the actions of private agents. So, nothing can be said before if the objectives that the Government is pursuing will be achieved. A typical example, is the use of instruments controlling the levels of environmental pollution, against which we nourish a latent skepticism. To show our caution, we use the concept of complex system composed of sub-systems connected to each other through relationship of a non-linear mathematical form which is often unknown. We also use the concept of synergetic and the principle of slow and fast variables (slaving principle). In particular, we also show that, when the evolution of a sub-system is logistical, it can give rise to the chaotic dynamics that may extend to other sub-systems and to the overall system. Our arguments are based also by the use of some models expressed, in most case, in the form of differential equations.
    Keywords: Government measures. Reaction coefficient. Speed of diffusion. Complex system and sub-systems. Interconnection between sub-systems and the principle of Synergetic. Slow and fast variables. Capitalistic structure and social conflict. Chaotic dynamics. Differential equation. Stability and instability of equilibrium points. Environmental pollution, carbon tax and subsidies
    JEL: H3 P1 C62
    Date: 2016–01
  36. By: Rigoberto A. Lopez (University of Connecticut); Nataliya Plesha (University of Connecticut); Ben Campbell (University of Connecticut)
    Abstract: The northeastern region of the United States comprises 5 percent of the United States land mass but houses 20 percent of the population. Even within this relatively small, densely population area, agriculture, forestry and fisheries are important economic components at the household, state and regional levels. At the request of Farm Credit East, we conducted a study to document and ascertain the significance in the economies of eight northeastern states of the agriculture sector, defined broadly as including four Fs: farming, food, forestry and fisheries. As measured in the eight states under study using data from 2012, agriculture contributed $99.4 billion to regional total sales or $2,312 per resident and generated 474,482 jobs.
    Keywords: farming, economic impacts
    Date: 2015–03
  37. By: Nicoletta Baskiewicz (Technical University of Częstochowa, Faculty of Management); Aneta Pachura (Technical University of Częstochowa, Faculty of Management)
    Abstract: Modern enterprises constantly search for activities aimed at efficiency increase. Between centuries, new system solutions started to emerge, involving manufacturer's responsibility not only for the quality of processes and resulting products. The enterprises have been obliged to take responsibility for the product whole life cycle, for the environment and following rules of sustainable growth. This study aim is to present Human Lean, Green concepts, with their determining factors and presentation of this concept empiric implementation. Because of obvious limitations of this paper only Green concept example will be shown herein. Wind energy generation and use will be used, with its influence on enterprise competitiveness. This thesis will be then verified in terms of proving how renewable energy sources use in a jewellery shop influences growth of potential customers number and whether it is profitable in Polish conditions.
    Keywords: Human Lean, Green concepts, sustainable growth, wind energy.
    JEL: A10 A12 A19
  38. By: Ahlheim, Michael; Neidhardt, Jan
    Abstract: This paper addresses a methodological problem of choice experiments, namely the problem that respondents sometimes avoid the intellectual effort of thoroughly considering the trade-offs between different alternatives that are the essence of every choice experiment, and tick instead the next best alternative without the necessary deliberation. This kind of behaviour which is called "nontrading" in the respective literature calls into question the validity of choice experiments. In this paper, which is based on an online choice experiment concerned with consumer's tastes for table grapes with 1,000 participants, we suggest possibilities to identify potential non-traders not only by their answering behaviour but also by some general characteristics we found to be typical of this kind of respondent.
    Keywords: Non-Trading Behaviour,Discrete Choice Experiment,Table Grapes
    Date: 2016
  39. By: Daniel Danau (Normandie Université, UNICAEN, CREM CNRS, France); Analisa Vinella (Università degli Studi di Bari "Aldo Moro", Italy)
    Abstract: Riordan and Sappington (JET, 1988) show that in an agency relationship in which the type of the agent is correlated with a signal that is observed publicly ex post, the principal may attain first best (full surplus extraction and efficient output levels) if she offers the agent a lottery such that each type is rewarded for one signal realization and punished equally for all the others. Gary-Bobo and Spiegel (RAND, 2006) show that this kind of lottery is most likely to be locally incentive-compatible when the agent is protected by limited liability. In this paper we investigate how the principal should construct the lottery to attain not only local but also global incentive-compatibility. We first assess that the main issue with global incentive-compatibility rests with intermediate types being potentially attractive reports to both lower- and higher-order types. We then show that a lottery including three (rather than two) levels of profit is most likely to be globally incentive-compatible under limited liability, if local incentive constraints are strictly satisfied. We identify conditions under which first best is implemented and pin down the optimal distortions when those conditions are violated. In particular, when the first-best allocation is locally but not globally incentive-compatible, output distortions are induced but no information rent is conceded to the agent.
    Keywords: Incentive compatibility; Limited liability; Correlated signals; Conditional probability; Full-rank condition
    JEL: D82
    Date: 2016–03
  40. By: Cai, Jing; de Janvry, Alain; Sadoulet, Elisabeth
    Abstract: Many new products presumed to be privately beneficial to the poor have a high price elasticity of demand and ultimately zero take-up rate at market prices. This has led gov- ernments and donors to provide subsidies to increase the take-up, with the hope of reducing the subsidies once the value of the product is better known. In this study, we use data from a two-year field experiment in rural China to define the optimum subsidy scheme that can insure a given take-up for a new weather insurance product for rice producers. We estimate both reduced form causal channels and a structural model of learning from stochastic expe- rience which we use to conduct policy simulations. Results show that the optimum current subsidy necessary to achieve a desired level of take-up rate depends on both past subsidy levels and past payout rates, implying that subsidy levels should vary locally year-to-year.
    Keywords: Social and Behavioral Sciences, Subsidy, Insurance, Take-up, Stochastic Learning
    Date: 2016–04–11
  41. By: Fabienne Féménia; Elodie Letort
    Abstract: In this paper, we use an econometric approach to investigate the impacts of potential changes in cropping practices on the reduction in pesticide use implied by a taxation policy. We combine economic data, reflecting the relatively intensive cropping practices currently used in France, and experimental agronomic data on a low-input technology to estimate micro-econometric models of farmers’ production and acreage choices. In a second step, these estimated models are used to conduct policy simulations. Our results show that a small tax on pesticide use could provide agricultural producers sufficient economic incentive to adopt low-input cropping practices and thereby lead to significant reductions in pesticide use, close to public short-term objectives. However, given the limited impacts of taxation once these practices have been adopted, other public instruments or further improvement of low-input cropping systems should be considered to achieve more ambitious longer term public objectives.
    Keywords: econometric model, field trial data, pesticide taxation, low-input technology
    JEL: Q12 Q18 Q55 C54
    Date: 2016
  42. By: McGregor, Thomas; Wills, Samuel
    Abstract: Many natural assets can not be valued at market prices. Non-market valuations typically focus on the value of an individual asset to an individual user, ignoring macroeconomic spillovers. We estimate the contribution of a natural asset to aggregate economic activity by exploiting exogenous variation in the quality of surfing waves around the world, using a global dataset covering over 5,000 locations. Treating night-time light emissions as a proxy for economic activity we find that high quality surfing waves boost activity in the local area (<5km), relative to comparable locations with low quality waves, by 0.15-0.28 log points from 1992-2013. This amounts to between US$ 18-22 million (2011 PPP) per wave per year, or $50 billion globally. The effect is most pronounced in emerging economies. Surfing helps reduce extreme rural poverty, by encouraging people to nearby towns. When a wave is discovered by the international community, economic growth in the area rises by around 3%.
    Keywords: Non-market valuation, Natural capital, Surfing, Night-time lights
    Date: 2016–02
  43. By: Philippe Simon (CEREGMIA - Centre de Recherche en Economie, Gestion, Modélisation et Informatique Appliquée - UAG - Université des Antilles et de la Guyane)
    Abstract: This study assesses the place of MSEs in Haiti and gives a brief description of the relevant economic, regulatory and technological instruments of economic development and environmental protection. The discussions suggest that the application of such instruments will encourage and improve economic development in Haiti. The infrastructure necessary for MSEs drives growth and offers added value to economic development in Haiti. With an overview of Haitian MSEs we have been able to identify and palliate insufficiencies in the legislative framework regulating the operation of MSEs, as well as, understand their involvement in economic growth. MSEs are a powerful tool to reduce poverty, facilitate economic development and reinforce policies supporting environmental protection.
    Abstract: Ce travail dresse un bilan sur la situation des TPE en Haïti et propose une analyse succincte de l’impact des instruments économiques, règlementaires et technologique au développement économique et à la protection de l’environnement. Les discussions menées ont permis de découvrir que l’application de ces instruments est une perspective d’amélioration du développement économique des TPE. La structuration des TPE reste la principale action stratégique de croissance et représente une grande valeur ajoutée pour le développement économique du pays. Le panorama des TPE haïtiennes nous a permis de compléter les insuffisances du cadre légal réglementant le fonctionnement des TPE et de comprendre leur participation à la croissance économique du pays. Ce sont des outils indispensables pour réduire la pauvreté, faciliter le développement économique et renforcer les politiques de protection de l’environnement à travers le pays.
    Keywords: micro small and medium enterprises (MSEs),economic growth,governments,Haiti,Innovation,Economic Instruments,regulatory Instrument,environmental protection,Instrument réglementaires,protection environnementale,pouvoirs publics,Micro,Petites et Moyennes entreprises (TPE),croissance économique,Instruments économiques
    Date: 2016–03–24
  44. By: Mark van de Logt (Texas A&M University at Qatar)
    Abstract: In his 2015 encyclical Laudato Si’: On Care For Our Common Home, Pope Francis I confronted environmental issues and clarified the Roman Catholic Church’s position on global warming. In the United States, Laudato Si’, rattled conservative Americans who had falsely assumed that the Roman Catholic Church shared the conservative philosophy on the environment, property, and the economy. Perhaps more forcefully than his predecessors, John Paul II and Benedict XVI, Francis criticized the “sanctity of the free market,†the worship of property, the obsession with consumerism, the self-centered individualism that is too callous to care about the poor and underprivileged in the world, and the dismissive attitude that the environment is something that can be turned into profit without consequences and with the blessing of Christian “doctrine.†Ironically, Laudato Si’ also reaffirmed many conservative principles such as the legitimacy of property, the right of sovereign nations to conduct their own policies, the sanctity of life (including that of the unborn), the concern with scientific experiments on human embryos, and that he hails the work of scientists, engineers, and businesses when they work for the betterment of humanity. Despite outcries by certain conservatives that Francis’s encyclical is virtually a call on Catholics to vote for the Democratic Party in the next election, neither side can claim the Catholic Church as its natural ally. Indeed, the Church has always sailed an independent course.
    Keywords: American Politics, Pope Francis, Environment, Global Warming.
    JEL: Z12 Q58

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