nep-env New Economics Papers
on Environmental Economics
Issue of 2016‒05‒28
sixty-four papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Let’s talk about the weather: the impact of climate change on central banks By Batten,, Sandra; Sowerbutts, Rhiannon; Tanaka, Misa
  2. Solar Australia By Paunić, Alida
  3. Unconditional Aid and Green Growth By Moutaz Altaghlibi; Florian Wagener
  4. TTIP and Climate Change – How real are Race to the Bottom Concerns? By Daniel Rais
  5. Fourth ASEAN Chief Justices' Roundtable on Environment: Role of the Judiciary in Environmental Protection. The Proceedings By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  6. GEEM: a policy model for assessing climate-energy reforms in Italy By Barbara Annicchiarico; Susan Battles; Fabio Di Dio; Pierfrancesco Molina; Pietro Zoppoli
  7. Modeling the Impact of Climate Change on Extreme Weather Losses By Matthew Ranson; Lisa Tarquinio; Audrey Lew
  8. Pricing Forest Carbon: Implications of Asymmetry in Climate Policy By Eriksson, Mathilda; Brännlund, Runar; Lundgren, Tommy
  9. The Principle of Common Concern and Climate Change By Daniel Rais
  10. What are the social benefits of carbon sequestration? By Mogas Amorós, Joan
  11. Ecological Modernisation in Japan: The Role of Interest Rate Subsidies and Voluntary Pollution Control Agreements By Robert J.R. Elliott; Toshihiro Okubo
  12. The Greenness of Chinese Cities: Carbon Dioxide Emission and Its Determinants By Jianxin Wu; Yanrui Wu; Bing Wang
  13. Too Early to Pick Winners: Disagreement across Experts Implies the Need to Diversify R&D Investment By Anadon, Laura Diaz; Baker, Erin; Bosetti, Valentina; Reis, Lara Aleluia
  14. The determinants of CO2 emissions: evidence from European countries By Rafael Morales-Lage; Aurelia Bengochea-Morancho; Inmaculada Martínez-Zarzoso
  15. Too Early to Pick Winners: Disagreement across Experts Implies the Need to Diversify R&D Investment By Laura Diaz Anadon; Erin Baker; Valentina Bosetti; Lara Aleluia Reis
  16. Strategic Subsidies for Green Goods By Carolyn Fischer
  17. Economic Implications of EU Mitigation Policies: Domestic and International Effects By Francesco Bosello; Marinella Davide; Isabella Alloisio
  18. Inclusion of Consumption into Emissions Trading Systems: Legal Design and Practical Administration By Roland Ismer; Manuel Haussner; Karsten Neuhoff; William Acworth
  19. Southeast Asia and the Economics of Global Climate Stabilization By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  20. A Preliminary Model of Regulating Natural Capital Funds for Renewable Energy By Alsayyed, Nidal; Zhu, Weihang
  21. Efficient waste management practices: A review By Halkos, George; Petrou, Kleoniki Natalia
  22. Sustainability and Entrepreneurship By NERİMAN ÇELİK
  24. A cost function analysis of trade-offs within climate smart agriculture: does mulching save the cost of crop production among smallholder farmers in Uganda? By Shikuku, Kelvin M.; Laderach, Peter; Winowiecki, Leigh; Mwongera, Caroline
  25. Extension of the CAPRI model with an irrigation sub-module By Maria Blanco; Peter Witzke; Ignacio Perez Dominguez; Guna Salputra; Pilar Martinez
  26. A risk - based approach for the economic impact of climate change assessment By Francisco J. Fernández; Roberto Ponce; María Blanco; Diego Rivera; Felipe Vásquez
  27. Price Regulation and Environmental Externalities: Evidence from Methane Leaks By Catherine Hausman; Lucija Muehlenbachs
  28. Tourists’ needs towards Environmentally-friendly Management of Hotel Business in Surat Thani Province By Yoksamon Jeaheng; Chuleewan Praneetham
  29. How does firm heterogeneity information impact the estimation of embodied carbon emissions in Chinese exports? By Yu, Liu; Meng, Bo; Hubacek, Klaus; Xue, Jinjun; Feng, Kuishuang; Gao, Yuning
  30. Identifying a Sustainable Pathway to Household Multi-dimensional Poverty Reduction in Rural China By You, Jing; Kontoleon, Andreas; Wang, Sangui
  31. Adaptation of farm-households to increasing climate variability in Ethiopia: Bioeconomic modeling of onnovation diffusion and policy interventions By Berger, Thomas
  32. Which Social Cost of Carbon? A Theoretical Perspective By Matthew J. Kotchen
  33. Promotion of Renewables and the Challenges in the Water Sector By Daniel Rais
  34. Horizontes 2030: la igualdad en el centro del desarrollo sostenible. Síntesis By -
  35. Brazil, Preservation of Forest and Biodiversity By Paunić, Alida
  36. Corporate Social Responsibility of Oil Multinational Corporations: A focus on the challenges of Environmental By Mercy Erhi Makpor; Regina Leite
  37. Adaptation to natural disasters through the agricultural land rental market: evidence from Bangladesh By Shaikh Eskander; Edward Barbier
  38. Knowledge about aerosol injection does not reduce individual mitigation efforts By Merk, Christine; Pönitzsch, Gerd; Rehdanz, Katrin
  39. Delegation and Public Pressure in a Threshold Public Goods Game: Theory and Experimental Evidence By Doruk Iris; Jungmin Lee; Alessandro Tavoni
  40. Inequality Before Birth: The Developmental Consequences of Environmental Toxicants By Claudia Persico; David Figlio; Jeffrey Roth
  41. The Impact of Policy Conflicts on Emissions Trading in China By Bing Zhang; Yongliang Zhang
  42. Managing the resilience of a common pool rangeland system in South Africa By Rasch, Sebastian; Heckelei, Thomas; Oomen, Roelof
  43. Nonpoint source pollution: An experimental investigation of the Average Pigouvian Tax By Hamet SARR; Mohamed Ali BCHIR; François COCHARD; Anne ROZAN
  44. The role of inequality in climate-poverty debates By Tschakert,Petra
  45. The Fiscal Cost of Hurricanes: Disaster Aid Versus Social Insurance By Tatyana Deryugina
  46. Reaching India’s Renewable Energy Targets:Effective Project Allocation Mechanisms By Shrimali, Gireesh; Konda, Charith; Farooquee, Arsalan Ali; Nelson, David
  47. Seasonal Climate Forecasts and Agricultural Risk Management: Implications for Insurance Design By Miguel A. Carriquiry; Walter E. Baethgen
  48. Fuel Prices, Restructuring, and Natural Gas Plant Operations By Matthew Doyle; Harrison Fell
  49. The Great Recession in the Shadow of the Great Depression: A Review Essay on “Hall of Mirrors: The Great Depression, The Great Recession and the Uses and Misuses Of History” By Lee E. Ohanian
  50. Solomon Islands; 2016 Article IV Consultation and Fifth and Sixth Reviews Under the Extended Credit Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Solomon Islands By International Monetary Fund. Asia and Pacific Dept
  51. Driving Foreign Investment to Renewable Energy in India: A Payment Security Mechanism to Address Off-Taker Risk By Farooquee, Arsalan Ali; Shrimali, Gireesh
  52. Regulation under Financial Frictions: A Quantitative Analysis of Taxes versus Tradable Permits By Manish Pandey; Wenbiao Cai
  53. The Economics of Soil Erosion and the Choice of Land Use Systems by Upland Farmers in Central Vietnam By Bui Dung The
  54. Structural Breaks in Renewable Energy in South Africa: A Bai and Perron Break Test Application By Jaco P. Weideman; Roula Inglesi-Lotz
  55. Pattern of Development and Sustainable Economic Growth In Pakistan: A Descriptive Analysis By Younis, Fizza; Chaudhary, Aslam; Akbar, Muhammad
  56. Investing in Natural Capital for a Sustainable Future in the Greater Mekong Subregion By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  57. Effectiveness of promoting energy efficiency in Thailand -- the case of air conditioners By Kojima, Michikazu; Watanabe, Mariko
  58. Horizontes 2030: a igualdade no centro do desenvolvimento sustentável. Síntese By -
  59. The Moratorium on the entry of LMOs to Peru: analyzing how the government decided to defend our biodiversity By Daniel Rais
  60. Investors perspectives on barriers to renewables deployment in Chile By Claudio Agostini; Shahriyar Nasirov; Carlos Silva
  61. The Food Access Environment and Food Purchase Behavior of SNAP Households By James Mabli; Julie Worthington
  62. On the Possibility of Rice Green Revolution in Irrigated and Rainfed Areas in Tanzania: An Assessment of Management Training and Credit Programs By Nakano, Yuko; Kajisa, Kei; Otsuka, Keijiro
  63. The impact of water users' associations on the productivity of irrigated agriculture in Pakistani Punjab By Mekonnen, Dawit; Channa, Hira; Ringler, Claudia
  64. The Commodity Sector and Related Governance Challenges from a Sustainable Development Perspective: The Example of Switzerland Current Research Gaps By Daniel Rais

  1. By: Batten,, Sandra (Bank of England); Sowerbutts, Rhiannon (Bank of England); Tanaka, Misa (Bank of England)
    Abstract: This paper examines the channels via which climate change and policies to mitigate it could affect a central bank’s ability to meet its monetary and financial stability objectives. We argue that two types of risks are particularly relevant for central banks. First, a weather-related natural disaster could trigger financial and macroeconomic instability if it severely damages the balance sheets of households, corporates, banks, and insurers (physical risks). Second, a sudden, unexpected tightening of carbon emission policies could lead to a disorderly re-pricing of carbon-intensive assets and a negative supply shock (transition risks). Climate-related disclosure could facilitate an orderly transition to a low-carbon economy if it helps a wide range of investors better assess their financial risk exposures.
    Keywords: Climate change; natural disasters; financial stability; monetary policy;
    JEL: E58 G21 G22 Q43 Q54
    Date: 2016–05–20
  2. By: Paunić, Alida
    Abstract: Current large energy consumer potential of Asian and Pacific region as well as rise in GDP, population indicates further potential for energy needs. Part of solution at least in China is energy import. While electricity production so far is done in China and Australia with coal that causes high CO2 emissions proposed project Solar Australia suggests renewable production from Concentrated Solar. Negative impact of CO2 is hindered with competitive technology of solar from China, innovative technical solution in transmission process and incorporating environmental and social benefits and costs into calculation in order to provide a solution to high emissions in Asia Pacific Region.
    Keywords: energy, solar, renewable
    JEL: Q2 Q20 Q21
    Date: 2016–05–09
  3. By: Moutaz Altaghlibi (University of Amsterdam, the Netherlands, and Université Paris 1 Panthéon-Sorbonne, France); Florian Wagener (University of Amsterdam, the Netherlands)
    Abstract: Environmentally motivated aid can help developing countries to achieve economic growth while mitigating the impact on emission levels. We argue that the usual practice of giving aid conditionally is not effective, and we therefore study aid that is given unconditionally. Our framework is a differential open-loop Stackelberg game between a developed country (leader) and a developing country (follower). The leader chooses the amount of mitigation aid given to the follower, which the follower either consumes or invests in costly nonpolluting capital or cheap high-emission capital. The leader gives unconditional mitigation aid only when sufficiently rich or caring sufficiently about the environmental quality, while the follower cares about environmental quality to some extent. If aid is given in steady state, it decreases the steady state level of high-emission capital and capital investments in the recipient country and the global pollution stock, but it has no effect on the levels of non-polluting capital and non-polluting investments. It accelerates the economic growth of the follower; this effect is however lower than what static growth theory predicts since most of the aid is consumed. Moreover, we find that the increase in growth takes place in the nonpolluting sector.
    Keywords: Development aid; Green growth; Conditionality; Open loop Stackelberg equilibrium
    JEL: Q56 O13
    Date: 2016–05–17
  4. By: Daniel Rais
    Abstract: Abstract This paper examines concerns about the impact that TTIP could have on existing and future climate policies and laws from the inclusion of provisions on investment protection including investor-to-State dispute settlement (ISDS), the reduction of non-tariff barriers and the introduction of rules for trade in energy and raw materials. It argues that from an environmental perspective, ISDS should not necessarily be seen as a regime that goes against the defence of the environment or prevention of climate change. Although it might be used to challenge policies of an EU home State that increase levels of environmental protection, it can also be used to contest changes in an EU home State’s environmental policies that would reduce the protection of the environment, if foreign investment is affected. To a large extent, this also holds true for other areas of TTIP negotiations. While the achievement of a balance between rules that promote trade and those that maintain policy space for governments to respond to environmental concerns has to be closely monitored, benefits for climate could be seized from harmonisation of carbon laws at the level of the strictest regulations of two parties, provisions that promote trade in low carbon technologies and renewable energy and bilateral cooperation on climate change.
    Date: 2015–05–12
  5. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Office of the General Counsel, ADB); Asian Development Bank (ADB) (Office of the General Counsel, ADB); Asian Development Bank (ADB)
    Abstract: From 12 to 14 December 2014, the Association of Southeast Asian Nations (ASEAN) chief justices and their designees convened in Ha Noi, Viet Nam, for their fourth roundtable on environment, with the theme “Role of the Judiciary in Environmental Protection.” Eminent speakers and participants shared their insights on the judiciary’s role in protecting the environment, particularly in addressing the region’s environmental challenges. The ASEAN judiciaries reviewed their progress made in implementing A Common Vision on Environment for ASEAN Judiciaries (or the “Jakarta Common Vision”) and further deliberated on the Proposed Hanoi Action Plan to Implement the Jakarta Common Vision. Toward the end of the roundtable, the participants agreed in principle on the plan. The plan officially took effect on 10 February 2015. Brunei Darussalam and Singapore support efforts to protect the environment and recognize the relevance of the work of the ASEAN Chief Justices’ Roundtable on Environment, and noted that the plan does not require a binding commitment.
    Keywords: environmental jurisprudence; courts; southeast asia; asian development bank; rule of law; jakarta common vision; hanoi action plan to implement the jakarta common vision; asean judicial working group on environment; asian judges network on environment; environmental damage assessment; regional cooperation; adb; environmental sustainability; good governance
    Date: 2015–11
  6. By: Barbara Annicchiarico; Susan Battles; Fabio Di Dio; Pierfrancesco Molina; Pietro Zoppoli
    Abstract: We build up a large scale, New Keynesian dynamic general equilibrium model embodying a cap on pollutant emissions, an electricity sector and fuel consumption to analyse climate-energy policies for the Italian economy. We consider several applications to illustrate how emission mitigation policies are likely to affect the economy. Our results show that a major trade-off may emerge between environmental quality and economic activity. However, we show how this potential trade-off can be effectively overcome by recycling the revenues from the sales of emission permits. Also,we find that the presence of an emission cap may significantly limit the expansionary effects of fiscal interventions as well as of policies aimed at fostering competition and productivity. Finally, a negative shock on gas and oil prices has a positive effect on the level of economic activity but is also found to increase investment in renewable sources.
    Keywords: Environmental policy, GHG emissions, dynamic general equilibrium model, simulation analysis, Italy
    JEL: E27 E60 Q40 Q58
    Date: 2016–05
  7. By: Matthew Ranson; Lisa Tarquinio; Audrey Lew
    Abstract: This report summarizes current research on how climate change is likely to influence future losses from extreme weather events. We consider six types of weather-related extreme events: tropical cyclones, extratropical cyclones, inland floods, landslides and avalanches, wildfires, and small-scale storms. For each type of event, we synthesize existing research related to three topics. First, we examine research that estimates historical average losses from each type of extreme weather. We find that while there are relatively good data on costs of destroyed infrastructure, there is considerable disagreement in the literature about the longer-term macroeconomic effects of disasters. Second, we summarize evidence on the relationship between socioeconomic growth and storm losses. Our review suggests that increases in GDP and population lead to higher losses from disasters, but that disaster mortality is lower in more developed countries. Finally, we review studies of how climate change will affect future losses from extreme weather. Many studies predict increases in losses under climate change, but the science remains uncertain and some projections suggest that certain types of extreme weather losses may decrease. Overall, based on a reduced-form model that draws together parameter estimates from each of these three strands of literature, we estimate that moderate climate change will cause average extreme weather damages to increase by tens of billions of dollars per year. However, the confidence intervals surrounding our estimates are very wide, reflecting substantial underlying uncertainties.
    Keywords: climate change, impacts, extreme weather, tropical cyclones, extratropical cyclones, floods
    JEL: Q54
    Date: 2016–05
  8. By: Eriksson, Mathilda (CERE and the Department of Economics, Umeå University); Brännlund, Runar (CERE and the Department of Economics, Umeå University); Lundgren, Tommy (CERE and the Department of Economics, Umeå University)
    Abstract: In this paper, we use an integrated assessment model to examine the implications of not recognizing, and partially recognizing forest carbon in climate policy. Specifically, we investigate the impact of an asymmetric carbon policy that recognizes emissions from fossil fuels while ignoring emissions from forests. We additionally investigate the relative importance of not recognizing positive emissions from a reduction in the stock of forest biomass, or of not recognizing negative emissions from the growth of forest biomass. We show that asymmetric carbon policies lead to lower levels of welfare, as well as higher emissions and carbon prices. This occurs because the forest resource will be allocated inefficiently under these carbon policies. Broadly, we find that when the social planner does not account for neither positive or negative forest emissions, the planner will set bioenergy levels that are too high and afforestation and avoided deforestation levels that are too low. Our results further reveal that not recognizing forest emissions leads to larger welfare losses than not recognizing sequestration.
    Keywords: Climate change; Integrated assessment; Forest Carbon; Carbon Taxes and Subsidies
    JEL: C61 H23 Q23 Q54 Q56
    Date: 2016–04–06
  9. By: Daniel Rais
    Abstract: AbstractEffective policies combating global warming and incentivising reduction of greenhouse gases face fundamental collective action problems. States defending short term interests avoid international commitments and seek to benefit from measures combating global warming taken elsewhere. The paper explores the potential of Common Concern as an emerging principle of international law, in particular international environmental law, in addressing collective action problems and the global commons. It expounds the contours of the principle, its relationship to common heritage of mankind, to shared and differentiated responsibility and to public goods. It explores its potential to provide the foundations not only for international cooperation, but also to justify, and delimitate at the same time, unilateral action at home and deploying extraterritorial effects in addressing the challenges of global warming and climate change mitigation. As unilateral measures mainly translate into measures of trade policy, the principle of Common Concern is inherently linked and limited by existing legal disciplines in particular of the law of the World Trade Organization.
    Date: 2014–06–06
  10. By: Mogas Amorós, Joan
    Abstract: The costs of reducing carbon dioxide (CO2) emissions or their sequestration have received a great deal of attention. On the other hand, the benefits of the reduction or sequestration have been limited to avoided costs, which in general do not reflect the social benefits. Knowing the benefits to the whole society would help to make rational economic decisions on the amount of resources devoted to carbon sequestration or emission reductions. This article presents the methods based on increasing the amount of carbon stored in the system but it reflects the social value of the society instead of the cost of sequestering carbon. Keywords: Social cost of carbon, Non-market valuation, Forest attributes.
    Keywords: Anhídrid carbònic, Emissions atmosfèriques -- Aspectes econòmics, 33 - Economia, 504 - Ciències del medi ambient,
    Date: 2016
  11. By: Robert J.R. Elliott (University of Birmingham); Toshihiro Okubo (Faculty of Economics, Keio University)
    Abstract: The need for developed countries to take a lead in the global fight against climate change is generally acknowledged and was intrinsic to the recent Paris climate change agreement. An understanding of the way in which environmental policy in advanced nations has developed and which policies had a significant impact on the reduction in the emissions of various pollutants may yield important policy prescriptions relevant to the current climate change negotiations. In this paper we consider how Japan's little known environmental interest rate policy and voluntary pollution control agreements contributed to Japan's ecological modernisation and how these policies compared to the more traditional regulatory approach. Our results show that Japan's use of an environmental interest rate policy was an effective policy as a complement to the more traditional regulatory approach.
    Keywords: Environmental regulations
    JEL: O13 O31 H2 H23
    Date: 2016–03–29
  12. By: Jianxin Wu (Business School, University of Western Australia and School of Economics, Institute of Resources, Environment and Sustainable Development Research, Jinan University, China); Yanrui Wu (Business School, University of Western Australia); Bing Wang (School of Economics, Institute of Resources, Environment and Sustainable Development Research, Jinan University, China)
    Abstract: This paper investigates carbon dioxide (CO2) emission and its determinants in 286 Chinese cities. The findings strongly support an inverted U-shaped relationship between per capita CO2 emission (PCE) and urban development. However the realization of this relationship depends on stringent governmental policy interventions. The regression analysis in this paper shows that city size is positively correlated with CO2 emission efficiency, but negatively correlated with PCE. This result suggests that population restrictions in large cities tend to increase CO2 emission. It is also shown that regional development programs are likely to encourage economic activities in regions with low CO2 emission efficiency and may have significant environmental consequences in the future.
    Date: 2016
  13. By: Anadon, Laura Diaz; Baker, Erin; Bosetti, Valentina; Reis, Lara Aleluia
    Abstract: Mitigating climate change will require innovation in energy technologies. Policy makers are faced with the question of how to promote this innovation, and whether to focus on a few technologies or to spread their bets. We present results on the extent to which public R&D might shape the future cost of energy technologies by 2030. We bring together three major expert elicitation efforts carried out by researchers at UMass Amherst, Harvard, and FEEM, covering nuclear, solar, Carbon Capture and Storage (CCS), bioelectricity, and biofuels. The results show experts believe that there will be decreasing returns to R&D and report median cost reductions around 20% for most of the technologies at the R&D budgets considered. Although the returns to solar and CCS R&D show some promise, the lack of consensus across studies, and the larger magnitude of the R&D investment involved in these technologies, calls for caution when defining what technologies would benefit the most from additional public R&D. Indeed, the wide divergence of opinions suggests that it is still too early to pick winners and that a broad portfolio of investments may be the best option.
    Keywords: R&D Investments, Energy Technology, Expert Elicitation, Risk and Reward, Low-carbon Innovation, Research and Development/Tech Change/Emerging Technologies, Q40,
    Date: 2016–03–18
  14. By: Rafael Morales-Lage (Department of Economics, Universidad Jaume I, Castellón, Spain); Aurelia Bengochea-Morancho (Department of Economics, Universidad Jaume I, Castellón, Spain); Inmaculada Martínez-Zarzoso (Department of Economics and Center for Statistics, Georg-August Universitaet Goettingen, Göttingen, German and Department of Economics, Universidad Jaume I, Castellón, Spain)
    Abstract: This paper applies the stochastic formulation of the IPAT model for analysing the determinants of CO2 emissions in the 28 countries of the European Union (EU) from 1971 to 2012. We apply different methodologies in order to fit the best model: a model with cross-static and time effects and dynamic models to solve some problems related to the structure of the data. The best model is estimated using the Generalized Method of Moments (GMM). As far as the population is concerned, the whole set of countries have a unitary elasticity with respect to carbon dioxide emissions, similar to the elasticity related to GDP per capita and energy intensity. However, we find different effects in CO2 emissions, depending on the group of countries considered. For the subset of EU-15 the influence of population, industry and energy use is lower than the influence shown by these factors in the 13 countries belonging to Central and Eastern Europe.
    Keywords: IPAT equation, STIRPAT model, CO2 emissions, European Union
    JEL: Q43 Q48 Q53
    Date: 2016
  15. By: Laura Diaz Anadon (Harvard Kennedy School and Harvard University); Erin Baker (University of Massachusetts); Valentina Bosetti (Bocconi University, Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo sui Cambiamenti Climatici); Lara Aleluia Reis (Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo sui Cambiamenti Climatici)
    Abstract: Mitigating climate change will require innovation in energy technologies. Policy makers are faced with the question of how to promote this innovation, and whether to focus on a few technologies or to spread their bets. We present results on the extent to which public R&D might shape the future cost of energy technologies by 2030. We bring together three major expert elicitation efforts carried out by researchers at UMass Amherst, Harvard, and FEEM, covering nuclear, solar, Carbon Capture and Storage (CCS), bioelectricity, and biofuels. The results show experts believe that there will be decreasing returns to R&D and report median cost reductions around 20% for most of the technologies at the R&D budgets considered. Although the returns to solar and CCS R&D show some promise, the lack of consensus across studies, and the larger magnitude of the R&D investment involved in these technologies, calls for caution when defining what technologies would benefit the most from additional public R&D. Indeed, the wide divergence of opinions suggests that it is still too early to pick winners and that a broad portfolio of investments may be the best option.
    Keywords: R&D Investments, Energy Technology, Expert Elicitation, Risk and Reward, Low-carbon Innovation
    JEL: Q40
    Date: 2016–03
  16. By: Carolyn Fischer (Resources for the Future, Gothenburg University, FEEM, and CESifo Research Network)
    Abstract: Globally and locally, government support policies for green goods (like renewable energy) are much more popular internationally than raising the cost of bads (as through carbon taxes). These support policies may encourage downstream consumption (renewable energy deployment) or upstream development and manufacturing of those technologies. The use of subsidies—particularly upstream ones—is disciplined by World Trade Organization agreements, and its subsidies code lacks exceptions for transboundary externalities like human health or resource conservation, including those related to combating global climate change. The strategic trade literature has devoted little attention to the range of market failures related to green goods. This paper considers the market for a new environmental good that when consumed downstream may provide external benefits like reduced emissions. The technology is traded internationally but provided by a limited set of upstream suppliers that may operate in imperfect markets, such as with market power or external scale economies. We examine the national incentives and global rationales for offering production and consumption subsidies in producer countries, allowing that some of the downstream market may lie in nonregulating third-party countries. Although technology producer countries can benefit from restraints on upstream subsidies, global welfare is higher without them, and market failures imply that optimal subsidies are even higher. We supplement the analysis with numerical simulations of the case of renewable energy, exploring optimal subsidies for the major renewable energy producing and consuming regions and the cost of restrictions on upstream subsidies.
    Keywords: International Trade, Subsidies, Imperfect Competition, Externalities, Emissions Leakage
    JEL: F13 F18 H21 Q5
    Date: 2016–03
  17. By: Francesco Bosello (FEEM, CMCC and University of Milan); Marinella Davide (FEEM, CMCC and University of Venice); Isabella Alloisio (FEEM and CMCC)
    Abstract: The EU has a consolidated climate and energy regulation: it played a pioneering role by adopting a wide range of climate change policies and establishing the first regional Emission Trading Scheme (EU ETS). These policies, however, raise several concerns regarding both their environmental effectiveness and their potentially negative effect on the economy, especially in terms of growth and competitiveness. The paper reviews the European experience in order to understand if these concerns are supported by quantitative evidence. It thus focuses on key economic indicators, such as costs, competitiveness and carbon leakage as assessed by quantitative ex-ante and ex-post analyses. A dedicated section, extends the investigation to the potential extra-EU spillover of the EU mitigation policy with a particular attention to developing countries. The objective of the paper is to highlight both the limits and the opportunities of the EU regulatory framework in order to offer policy insights to emerging and developing countries that are on the way to implement climate change measures. Overall, the European experience shows that the worries about the costs and competitiveness losses induced by climate regulation are usually overestimated, especially in the long term. In addition, a tightening climate policy regime in the EU might in fact negatively impact developing countries via deteriorated trade relations. Nonetheless it tends to facilitate a resource relocation that if well governed could be beneficial to those countries where the poor are mainly involved in rural activities.
    Keywords: Climate Change, Climate Policy, Mitigation, Economic Impacts, GDP, Competitiveness
    JEL: F64 H23 O44 O52 Q54 R11
    Date: 2016–04
  18. By: Roland Ismer; Manuel Haussner; Karsten Neuhoff; William Acworth
    Abstract: A world of unequal carbon prices requires measures aimed at preventing carbon leakage. Climate policy imperatives demand that such measures must be compatible with the goal of sending a carbon price signal down the value chain. For carbon intensive materials, the combination of dynamic free allocation combined with Inclusion of Consumption (IoC) into emissions trading systems such as the European Union Emissions Trading Scheme (EU ETS) arguably fulfils both the aims of preventing carbon leakage and of sending the price signal. The paper presents concrete proposals regarding the legal design and practical administration of this mechanism. It argues that the IoC is, provided appropriate choices are made, ripe for implementation.
    Keywords: Carbon pricing, value chain, consumption charge
    JEL: H23 K23 L61
    Date: 2016
  19. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB)
    Abstract: Southeast Asia is vulnerable to climate change, yet is also on a carbon intensive development trajectory.
    Keywords: southeast asia, sea, climate change, carbon dioxide emissions, greenhouse gas emissions,emissions mitigation, climate stabilization, energy efficiency, witch model, world induced technical change hybrid
    Date: 2015–12
  20. By: Alsayyed, Nidal; Zhu, Weihang
    Abstract: Framing sustainable environmental laws in regulating Natural Capital funds for Renewable Energy (RE) is central to the discussion on sustainability strategies. Natural Capital is that limited form of capital assets or service (tangible or intangible) that satisfies basic and social conditions for human existence and protection. This paper proposes an analytical regulatory model utilizing Neural Network (NN) of substantive and procedural issues framing the regulatory parameters associated with Natural capital funding. The model proposed recognizes the fact that the purpose of any legal system is not only to assign duties and responsibilities in protecting rights of individuals and groups in their respective endeavors; but for effective modelling of natural structures as well. Through a preliminary discussion of European and USA markets’; regulatory systems with a focus on market and social values, it attempts to discern a practical model to formulate social and regulatory measures on financial structures and energy matters that are considered rights and obligations of individuals and organizations in conducting their businesses. As it has been a subject of academic, government, and public discussions with intense controversies, finding the differences of methodological, and analytical foundation will most probably lead to deeper insight into regulating funds for renewable energy.
    Keywords: Natural Capital, sustainable, ISO: International Organization for Standardization, climate change, Neural Network (NN)
    JEL: N7 O13 P28 Q0 Q42 Q47 Q5 Q56
    Date: 2016–04–05
  21. By: Halkos, George; Petrou, Kleoniki Natalia
    Abstract: Nowadays waste has become a vital part of our economy, as a by-product of economic activity. It originates from businesses, the government and households and following appropriate management techniques, it can be used as an input to economic activity for instance through material or energy recovery. Waste is produced by all activities and although it is a locally arising problem it has both local and global effects. Societies need to dispose their waste products creating a source of environmental pollution. Sustainable waste management requires the combination of skills and knowledge of physical sciences and engineering together with economics, ecology, human behaviour, entrepreneurship and good governance. This paper discusses extensively the policy framework and the legislative background around waste and its management in the EU and worldwide. In this way, it focuses on the treatment options for waste under the Circular Economy approach having in mind the idea of closing the loop and hence achieving a more efficient use of resources.
    Keywords: Municipal solid waste; waste management; resources; circular economy; waste infrastructure.
    JEL: O13 O5 O50 O52 Q50 Q53 Q56 R11
    Date: 2016–05–21
    Abstract: Humanity is at the parting of the ways because of the climate change taking place in the whole planet, draining of world's resources and destructions which are not easy to redeem. As a result of the activities of people during the past century, it has spread into the atmosphere in large amounts of carbon dioxide and other greenhouse gases. Global warming has negatively effect on environment, our water resources, agricultural conditions, energy production and transport system, our health and safety. The outcomes of the effects should be taken into consideration. Rapidly changing world order brings back changing of the business model in the business world. In this study, the necessity of the sustainability and the action that are taken to achieve this aim will be examined.
    Keywords: Sustainability, Entrepreneurship,Environmental
    JEL: L26
  23. By: Richard G. Lipsey (Simon Fraser University)
    Abstract: Advocates of green-growth policies and those who advocate policies to stop growth both accept that the world faces serious environmental problems. They disagree on and debate about appropriate remedies. Green-growth advocates argue that it is possible to create a green economy compatible with sustained growth. The no-growth advocates argue that the whole growth process must be stopped if the planet is to be saved from catastrophe. This short paper argues that choosing the optimal policy for dealing with these serious problems does not require deciding which group is right. Instead it is argued that the optimal policy is to act as if the green-growth advocates are right and only if they are proved wrong by the failure of their policies to do the job, should no-growth policies be attempted.
    Keywords: climate change, green growth, no-growth policies, environmental policies, carbon pricing.
    JEL: Q28 Q38 Q48
    Date: 2016–04
  24. By: Shikuku, Kelvin M.; Laderach, Peter; Winowiecki, Leigh; Mwongera, Caroline
    Abstract: Climate-smart agriculture (CSA) is increasingly being promoted among scientists, policy makers and donors as an approach towards sustainably increasing agricultural productivity, building and increasing resilience of farming systems to climate change, and reduction of greenhouse gases. Successful implementation of CSA, however, depends on the ability to identify and quantify the trade-offs involved in its adoption. This study investigates the trade-offs involved in the adoption of mulching among smallholder farmers in Rakai district of Uganda. It specifically examines the effect of mulching on the expenditure shares of herbicides, pesticides, fertilizer, and labour. A translog cost function is estimated jointly with expenditure shares on these inputs using seemingly unrelated regression analysis. Results indicate a negative relationship between mulching and expenditure share on herbicides on one hand, and a positive relationship between mulching and expenditure share on pesticides, fertilizer, and labour on the other hand. The paper discusses the policy implications.
    Keywords: Mulching, demand for farm inputs, translog cost function, climate-smart agriculture, trade-offs, Farm Management, International Development, C5, D1, O33,
    Date: 2015
  25. By: Maria Blanco (Technical University of Madrid (Madrid, Spain)); Peter Witzke (EuroCARE (Bonn, Germany)); Ignacio Perez Dominguez (European Commission – JRC - IPTS); Guna Salputra (European Commission – JRC - IPTS); Pilar Martinez (Technical University of Madrid (Madrid, Spain))
    Abstract: The study enables the CAPRI model to make simulations of the potential impact of climate change and water availability on agricultural production, as well as is looking at the sustainable use of water and the implementation of water-related policies including water pricing. To investigate the role of irrigation as adaptation strategy to climate change, we define a set of simulation scenarios that account for the likely effects on water price, crop yields, water availability and irrigation efficiency.
    Keywords: agriculture, irrigation, water economics, modelling, CAPRI
    Date: 2015–12
  26. By: Francisco J. Fernández; Roberto Ponce; María Blanco; Diego Rivera; Felipe Vásquez (School of Business and Economics, Universidad del Desarrollo)
    Abstract: This paper contributes to shed light on the economic impacts of changes in water availability due to climate change on small-scale agriculture. We provide an hydro-economic modelling framework that captures the socio-economic effects of water shocks on smallholder at river basin scale. This approach link a farm risk-based economic optimization model and a hydrologic simulation model specified for the basin. Large differences in the economic impacts across the studied farm types are found. In this context, the smallest farmers will be most negatively affected by the change in water availability. These results suggest large distributional consequences of climate change for the economy of the small-scale farmers in the basin, challenging the public policy to generate reliable tools to cope with climate change small-scale farmers’ vulnerability
    Keywords: hydro-economic model, small-scale farmers, basin, risk assessment
    Date: 2016–05
  27. By: Catherine Hausman; Lucija Muehlenbachs
    Abstract: Price regulations are widely used to reduce inefficiencies from natural monopolies, but they can introduce other inefficiencies, such as the failure to cost-minimize. We examine a previously unstudied distortion in the natural gas distribution sector that allows firms to pass the cost of lost gas on to their customers. We show that firms abate leaks below what is theoretically optimal for a private firm – expenditure on abatement is well below the cost of lost gas. Additionally, natural gas, primarily composed of methane, is both explosive and a potent greenhouse gas. Thus the climate impacts of leaked methane greatly exacerbate the inefficiencies created by imperfect price regulation.
    JEL: D22 D42 L95 Q41
    Date: 2016–05
  28. By: Yoksamon Jeaheng (Suratthani Rajabhat University); Chuleewan Praneetham (Suratthani Rajabhat University)
    Abstract: The purpose of this research was to explore tourist needs towards environmentally friendly management of hotel business in Surat Thani province, Thailand. The sample size was 384 tourists, who travelled to Muang district, Surat Thani province. A questionnaire was designed as a data collecting tool in order to collect information with accidental sampling. Statistical tools employed for data analysis were frequency, percentage, mean and standard deviation. The results of the sampling’s demographic data revealed that most respondents were female. Age’s range was between 26-35 years old, and most had education at Bachelor level. The respondents’ purpose of staying was for enjoyment and relaxation as the rest-seekers, duration of stay was 2-3 days and most of the respondents travelled for the first time. Moreover, they would be back to stay in the same hotel which costs about 500-1,000 Thai Baht. The finding found that most of tourists choose to stay in hotels which concern about environmentally-friendly management with 68.5%. Tourists’ needs towards environmentally-friendly management of hotel business focused on 4 different dimensions, namely management dimension, human resources management dimension, place and environmental management dimension, and communication and public relation dimension. The results found that a written-policy was the most importance of management dimension, knowledge of employees in responding guests’ questions related to environmental saving was the most importance of human resources management dimension. For place and environmental management dimension, the natural design would be initiated as the decoration of hotels. For communication and public relation dimension, the tourists could receive some hotel’s information via social network which was the most popular communication channel. However, hotel owners should improve their environmental quality.
    Keywords: tourist, environmentally-friendly management, hotel business
    JEL: Q56
  29. By: Yu, Liu; Meng, Bo; Hubacek, Klaus; Xue, Jinjun; Feng, Kuishuang; Gao, Yuning
    Abstract: Using an augmented Chinese input–output table in which information about firm ownership and type of traded goods are explicitly reported, we show that ignoring firm heterogeneity causes embodied CO2 emissions in Chinese exports to be overestimated by 20% at the national level, with huge differences at the sector level, for 2007. This is because different types of firm that are allocated to the same sector of the conventional Chinese input–output table vary greatly in terms of market share, production technology and carbon intensity. This overestimation of export-related carbon emissions would be even higher if it were not for the fact that 80% of CO2 emissions embodied in exports of foreign-owned firms are, in fact, emitted by Chinese-owned firms upstream of the supply chain. The main reason is that the largest CO2 emitter, the electricity sector located upstream in Chinese domestic supply chains, is strongly dominated by Chinese-owned firms with very high carbon intensity.
    Keywords: Environmental problems, Global warming, Input-output tables, Embodied CO2 emissions, Carbon intensity, Supply chains, Ownership, Processing trade
    JEL: C67 E01 F18 H23 F64
    Date: 2016–03
  30. By: You, Jing; Kontoleon, Andreas; Wang, Sangui
    Abstract: Poor rural households in developing countries usually endure many-faceted burdens including monetary poverty, nutrition deficiency, and energy shortage due to reliance on limited local natural resources with low utilisation efficiency. This paper investigates a pathway for rural Chinese households to escape the vicious circle between multi-dimensional low wellbeing including deficiency of income, nutrition and energy without relying simply on excessive firewood plantations. We propose a dynamic and recursive multi-equation mixed model to capture the complex, endogenous, and causal inter-play between the above three dimensions of poverty and households’ environment-related livelihood arrangement, namely firewood plantations. We identify inter-locked traps in multi-dimensional poverty by exploiting household panel data. Firewood plantations offer a short-term solution. Increasing labour productivity and providing agricultural loans can break the circle in the longterm. Institutional instruments in terms of subsidising households to converting the cultivated land to forest or pasture play a limited role in limiting firewood production.
    Keywords: poverty, energy, firewood, dynamic causal effect, China, Consumer/Household Economics, Food Security and Poverty, International Development, C33, I31, Q23, O53,
    Date: 2015
  31. By: Berger, Thomas
    Keywords: food security, climate impacts, mixed rain-fed agriculture, multi-agent systems, Environmental Economics and Policy, Food Security and Poverty, C61, Q54, C63, Q12, D12,
    Date: 2015
  32. By: Matthew J. Kotchen
    Abstract: This paper develops a theoretical foundation for the social cost of carbon (SCC). The model highlights the source of debate over whether countries should use the global or domestic SCC for regulatory impact analysis. I identify conditions under which a country's decision to internalize the global SCC, as currently practiced in the United States, is individually rational. Nevertheless, I show how obtaining international consensus on a particular value will be more challenging than often appreciated. I introduce the notion of "strategic SCC" to reflect each country's preference for a globally internalized shadow value on emissions conditional on a true value of the global SCC and a distribution of the domestic SCCs among countries. While all countries have a strategic SCC greater than their domestic SCC, a country's strategic SCC can be greater than or less than the global SCC. How these preferences translate into agreement depends on institutional arrangements for collective decision-making, for which I provide empirical evidence based on various decision rules. A central contribution of the paper is demonstration of the need for more research on the theoretical underpinnings of the SCC for policy analysis, because establishing and using the SCC among sovereign countries is not simply an application of estimating and internalizing an externality.
    JEL: Q00 Q4 Q5 Q58
    Date: 2016–05
  33. By: Daniel Rais
    Abstract: Abstract This paper outlines the interlinkages between the water policies integration objective and the decarbonisation objective. It concludes that low-carbon renewable electricity policy scenario may have negative externalities on the water body under the existing regulatory framework in the EU. The analysis is mainly dealt within the framework of the European Union’s Renewable Energy Directive of 2009 (RES Directive).
    Date: 2015–02–09
  34. By: -
    Abstract: El mundo vive un cambio de época. La comunidad internacional, respondiendo a los desequilibrios económicos, distributivos y ambientales del estilo de desarrollo dominante, ha aprobado recientemente la Agenda 2030 para el Desarrollo Sostenible y sus 17 Objetivos. En este documento, que la Comisión Económica para América Latina y el Caribe (CEPAL) presenta a los Estados miembros en su trigésimo sexto período de sesiones, se complementa analíticamente esa Agenda sobre la base de la perspectiva estructuralista del desarrollo y desde el punto de vista de los países de América Latina y el Caribe. Sus propuestas se centran en la necesidad de impulsar un cambio estructural progresivo que aumente la incorporación de conocimiento en la producción, garantice la inclusión social y combata los efectos negativos del cambio climático. El foco de las reflexiones y propuestas para avanzar hacia un nuevo estilo de desarrollo radica en el impulso a la igualdad y la sostenibilidad ambiental. La creación de bienes públicos globales y de sus correlatos a nivel regional y de políticas nacionales es el núcleo desde el que se expande la visión estructuralista hacia un keynesianismo global y una estrategia de desarrollo centrada en un gran impulso ambiental.
    Date: 2016–04
  35. By: Paunić, Alida
    Abstract: Increased number of extinct, endangered species in South America, especially plants in Brazil and Equator, impose question of importance of Amazon forest. Its declining trend requires constant attention not just from population in Brazil, but as well as in region and world which have their interest in direct/ indirect monetary and non-monetary values. GDP decline can further deteriorate forest areas so it is of importance to diversify and strengthen energy inputs and work on different renewable strategies. Many projects are possible but all should rely on social justice, protecting women, low income groups by strategies of small loans, agriculture land given to small groups, guaranteed market, and help through education. Paper proposes projects of algae, new approach in tourism, and solar transport opportunities.
    Keywords: forest, biodiversity,renewables
    JEL: Q0 Q2
    Date: 2016–05–19
  36. By: Mercy Erhi Makpor (School of Economics and Management, University of Minho); Regina Leite (School of Economics and Management, University of Minho)
    Abstract: The purpose of this paper is to draw attention to the ever alarming constraints and challenges faced due to oil extraction in the Niger Delta region of Nigeria. The Niger Delta is one of the poorest regions in Nigeria due to underdevelopment and the nonchalant attitude on the part of the government to make provision for economic and infrastructural development in the region. The paper argues that while the Corporate Social Responsibility (CSR) of oil Multinational Corporations (MNCs) has not reached its full capacity, government on the other hand, not only lack the intellectual “know-how†of tackling the operations and activities of the oil MNCs, but also refrains from rendering suitable solutions to restiveness in the region. Under-development in the region is tilted from the part of the oil MNCs’ push for exploitative susceptibilities which has invariably led to environmental degradation, poverty, displacement, and a high level of restiveness. Also the issue of excruciating poverty and the quality of life of the people have not been properly dealt with as government has not done much to diversify the natural resources of the nation into other key productive areas. Hence, the general belief that organizations and the society gain when social responsibility on the part of organizations is exhibited is therefore questioned.
    Keywords: Corporate Social Responsibility, Environmental Degradation, Niger Delta, Nigeria, Oil Multinational Corporations (MNCs), Poverty.
    JEL: M14
  37. By: Shaikh Eskander; Edward Barbier
    Abstract: We examine the effects of natural disaster exposure on agricultural households who simultaneously make rent-in and rent-out decisions in the land rental market. Our econometric approach accounts for the effects of disaster exposure both on the adjustments in the quantity of operated land (i.e. extensive margin) and agricultural yield conditional on the land quantity adjustments (i.e. intensive margin), based on selectivity-corrected samples of rental market participants. Employing a household survey dataset from Bangladesh, we find that farmers were able to ameliorate their losses from exposure to disasters by optimizing their operational farm size through participation in the land rental market. These results are robust to alternative specifications. This suggests that the land rental market may be an effective instrument reducing disaster risk, and post-disaster policies should take into account this role more systematically.
    Date: 2016–05
  38. By: Merk, Christine; Pönitzsch, Gerd; Rehdanz, Katrin
    Abstract: Stratospheric aerosol injection (SAI) is a climate engineering method that is reputed to be very effective in cooling the planet but is also thought to involve major risks and side effects. As a new option in the bid to counter climate change, it has attracted an increasing amount of research and the debate on its potential gained momentum after it was referred to in the 5th IPCC assessment report (IPCC 2013). One major objection to SAI and the research done on it is that it could undermine commitment to the mitigation of greenhouse gases. Policymakers, interest groups or individuals might wrongly perceive SAI as an easy fix for climate change and accordingly reduce their mitigation efforts. This is the first study to provide an empirical evaluation of this claim for individuals. In a large-scale framed field experiment with more than 650 participants, we provide evidence that people do not back-pedal on mitigation when they are told that the climate change problem could be partly addressed via SAI. Instead, we observe that people who have been informed about SAI mitigate more than people who have not. Our data suggest that the increase is driven by a perception of SAI as potential threat.
    Keywords: climate engineering,stratospheric aerosol injection,risk compensation,climate change mitigation,moral hazard
    Date: 2016
  39. By: Doruk Iris (Sogang University); Jungmin Lee (Sogang University and Institute for the Study of Labor (IZA)); Alessandro Tavoni (London School of Economics, Grantham Research Institute on Climate Change and Environment)
    Abstract: The provision of global public goods, such as climate change mitigation and managing fisheries to avoid overharvesting, requires the coordination of national contributions. The contributions are managed by elected governments who, in turn, are subject to public pressure on the matter. In an experimental setting, we randomly assign subjects into four teams, and ask them to elect a delegate by a secret vote. The elected delegates repeatedly play a one shot public goods game in which the aim is to avoid losses that can ensue if the sum of their contributions falls short of a threshold. Earnings are split evenly among the team members, including the delegate. We find that delegation causes a small reduction in the group contributions. Public pressure, in the form of teammates’ messages to their delegate, has a significant negative effect on contributions, even though the messages are designed to be payoff-inconsequential (i.e., cheap talk). The reason for the latter finding is that delegates tend to focus on the least ambitious suggestion. In other words, they focus on the lower of the two public good contributions preferred by their teammates. This finding is consistent with the prediction of our model, a modified version of regret theory.
    Keywords: Delegation, Cooperation, Threshold Public Goods Game, Climate Experiment, Regret Theory
    JEL: C72 C92 D81 H4 Q54
    Date: 2016–03
  40. By: Claudia Persico; David Figlio; Jeffrey Roth
    Abstract: Millions of tons of hazardous wastes have been produced in the United States in the last 60 years which have been dispersed into the air, into water, and on and under the ground. Using new population-level data that follows cohorts of children born in the state of Florida between 1994 and 2002, this paper examines the short and long-term effects of prenatal exposure to environmental toxicants on children living within two miles of a Superfund site, toxic waste sites identified by the Environmental Protection Agency as being particularly severe. We compare siblings living within two miles from a Superfund site at birth where at least one sibling was conceived before or during cleanup of the site, and the other(s) was conceived after the site cleanup was completed using a family fixed effects model. Children conceived to mothers living within 2 miles of a Superfund site before it was cleaned are 7.4 percentage points more likely to repeat a grade, have 0.06 of a standard deviation lower test scores, and are 6.6 percentage points more likely to be suspended from school than their siblings who were conceived after the site was cleaned. Children conceived to mothers living within one mile of a Superfund site before it was cleaned are 10 percentage points more likely to be diagnosed with a cognitive disability than their later born siblings as well. These results tend to be larger and are more statistically significant than the estimated effects of proximity to a Superfund site on birth outcomes. This study suggests that the cleanup of severe toxic waste sites has significant positive effects on a variety of long-term cognitive and developmental outcomes for children.
    JEL: I20 I24 Q53
    Date: 2016–05
  41. By: Bing Zhang (Department of Environmental Planning and Management, School of Environment, Nanjing University); Yongliang Zhang (Nanjing University)
    Keywords: emission trading, impact, China
    Date: 2016–04
  42. By: Rasch, Sebastian; Heckelei, Thomas; Oomen, Roelof
    Abstract: Livestock production on South Africa’s commons strongly contributes to livelihoods of communal households offering status, food and income. Management innovations are generally top-down and informed by commercial practices such as rotational grazing in combination with conservative stocking. Implementations often ignore how the specific socio-ecological context affects outcomes and the impact on equity. Science now acknowledges that rangeland management must be context specific and a universally agreed-upon recommendation for managing semi-arid rangelands does not exist. We present a socio-ecological simulation model derived from a case study in South Africa. It is used to assess the socio-ecological effects of rotational vs. continuous grazing under conservative and opportunistic stocking rates. We find that continuous grazing under conservative stocking rates is best suited for the system under investigation. However, past legacy under apartheid and participants’ expectations render its successful application unlikely.
    Keywords: Land Economics/Use, Livestock Production/Industries, Q15, Q58, Q13,
    Date: 2015
  43. By: Hamet SARR (ENGEES, UMR GESTE, université Strasbourg); Mohamed Ali BCHIR (ENGEES, UMR GESTE, université Strasbourg); François COCHARD (CRESE EA3190 Univ. Bourgogne Franche-Comté); Anne ROZAN (ENGEES, UMR GESTE, université Strasbourg)
    Abstract: The “Average Pigouvian Tax” (APT) was proposed by Suter et al. (2008) to reduce the financial burden of the standard ambient tax. This instrument consists in a standard ambient tax divided by the number of firms, which requires polluters to cooperate in order to achieve the social optimum. To enable polluters to cooperate, communication is allowed. We introduce different types of communication: cheap talk, exogenous costly communication (communication is imposed), and endogenous costly communication (conducted on a voluntary basis after a vote). Our experiment confirms that the instrument induces polluters to reduce their emissions under cheap talk. However, we find that group emissions are less reduced when communication is costly. This result still holds even when we endogenize communication by introducing a voting phase.
    Keywords: nonpoint source pollution, ambient tax, social dilemma, cooperation, cheap talk, costly communication, vote.
    JEL: C92 H23 Q53
    Date: 2016–05
  44. By: Tschakert,Petra
    Abstract: There is no doubt that the poorest people are already and will continue to be most severely impacted by climatic changes, including shifting trends as well as more frequent and severe extreme events. Yet, new insights on the dynamics and distribution of poverty point to the need to comprehend where the poor and poorest are, how they are poor, and why their poverty constrains their abilities to cope with and adapt to occurring and predicted changes. This paper draws on a diverse and growing literature on climate change and poverty to argue that uneven power relations more so than exposure and sensitivity to climatic hazards make the poor and disadvantaged distinctly more vulnerable than more affluent, privileged, and powerful groups and individuals. Further, climatic stressors and climate change as well as climate policies, often entangled with social exclusion and institutional neglect, compound the issue of poverty and exacerbate human precariousness, hence acting as a threat multiplier. The paper compares different approaches to assessing poverty, and explores structural processes and power dynamics that drive or perpetuate inequalities. The paper also investigates how the currently nonpoor may become transient or chronic poor, how climate change may exacerbate poverty traps, and how interventions to curb emissions and multidimensional poverty may be tackled to pursue climate-resilient development pathways.
    Keywords: Regional Economic Development,Science of Climate Change,Climate Change Mitigation and Green House Gases,Rural Poverty Reduction,Population Policies
    Date: 2016–05–17
  45. By: Tatyana Deryugina
    Abstract: Little is known about the fiscal costs of natural disasters, especially regarding social safety nets that do not specifically target extreme weather events. This paper shows that US hurricanes lead to substantial increases in non-disaster government transfers, such as unemployment insurance and public medical payments, in affected counties in the decade after a hurricane. The present value of this increase significantly exceeds that of direct disaster aid. This implies, among other things, that the fiscal costs of natural disasters have been significantly underestimated and that victims in developed countries are better insured against them than previously thought.
    JEL: H53 H84 Q54
    Date: 2016–05
  46. By: Shrimali, Gireesh; Konda, Charith; Farooquee, Arsalan Ali; Nelson, David
    Abstract: Auctions for renewable energy are gaining popularity around the world. In this context, we examined 20 renewable energy auctions in India and elsewhere to answer two questions: first, have auctions been effective; and second, how can they be designed to achieve India’s renewable energy targets? We found that auctions are almost always cost-effective, with savings up to 58% from baseline feed-in tariffs. However, auctions have not resulted in adequate deployment, with only 17% of the auctions with greater than 75% deployment. We then examined how to best design auctions by assessing seven major risks, and found the following: first, for every 1% increase in total risk, deployment effectiveness decreased by 2 percentage points; second, project specific risks have 60% greater impact than auction specific risks; and third, deployment effectiveness is most affected by auction design, completion, and financial risks. We also found that right policy design can lower these risks to improve both deployment and cost effectiveness.
    Keywords: Renewable energy auctions, competitive bidding, electricity auctions, effectiveness of auctions
    JEL: Q4 Q5
    Date: 2015–05
  47. By: Miguel A. Carriquiry (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Walter E. Baethgen (International Research Institute for Climate and Society, The Earth Institute at Columbia University (United States))
    Abstract: Seasonal climate forecasts and insurance are two instruments with potential to help manage risks in agricultural production. While both instruments play a distinct role in practice, they interact among themselves and with other production decisions. In particular, we contend that the progress in climate science in providing increasingly accurate seasonal forecasts has implications for the design of agricultural insurance. Early information regarding likely growing conditions will result in shifts in the expected distribution of crop yields, and the payouts associated with an insurance contract. The magnitude of these effects is illustrated using a combination of crop simulation models, and Monte Carlo techniques.
    Keywords: Agricultural risk; Index insurance, Insurance, Seasonal climate forecast
    JEL: Q1 G22 Q54
    Date: 2016–04
  48. By: Matthew Doyle (Division of Economics and Business, Colorado School of Mines); Harrison Fell (Division of Economics and Business, Colorado School of Mines)
    Abstract: Switching from coal-fired to natural gas-fired generation and increasing the thermal efficiency (energy generated per unit of energy burned) of fossil fuel fired electricity generation plants has been identified as ways of achieving meaningful emission reductions. In this study, we examine the fuel-price responsiveness across gas plant technologies and across the market structures in which the plants operate. We find that there are significant differences in the generation and efficiency responses of gas plants to fuel prices across generation technologies and market structures. Specifically, our results indicate that, regardless of market structure, generation from natural gas combined cycle (NGCC) plants is responsive to both coal and gas prices, but that generation from simple cycle (NGSC) plants only respond to gas prices. On the other hand, with respect to efficiency, we generally find that only NGCC plants operating in deregulated regions show statistically significant efficiency improvements in response to coal price increases and that, generally, neither NGCC or NGSC plants, regardless of market structure, respond in any significant way to gas prices. Finally, using these parameter estimates, we calculate emissions savings from efficiency improvements and fuel-switching possibilities.
    Date: 2016–04
  49. By: Lee E. Ohanian
    Abstract: This essay reviews Barry Eichengreen's recent book that compares the Great Depression and the Great Recession. Eichengreen focuses on deficient aggregate demand as the key reason for why both downturns were so deep and why they lasted so long. I assess the book's arguments regarding the causes and consequences of these episodes from a neoclassical perspective. I provide an alternative framework for analyzing these episodes, and argue that a key difference between the 1930s and today reflects the factors that continued to depress both economies after their respective troughs. The post-Depression economy featured rapid productivity growth, whereas today's economy is plagued by low productivity growth. I discuss how the post-Great Depression economy recovered to trend quickly once policies that depressed competition were removed. I also argue that returning today's economy to trend may be considerably more challenging.
    JEL: E13 E6 N0
    Date: 2016–05
  50. By: International Monetary Fund. Asia and Pacific Dept
    Abstract: Solomon Islands is a small island state, a low-income country that is severely affected by external shocks, including commodity price declines, natural disasters, and climate change.
    Keywords: Asia and Pacific;Solomon Islands;debt, natural disasters, monetary fund, reserves, cash balance
    Date: 2016–03–23
  51. By: Farooquee, Arsalan Ali; Shrimali, Gireesh
    Abstract: India’s ambitious renewable energy targets of 175 GW by 2022 will require significant foreign investment. A major issue facing foreign investment in India is offtaker risk or the risk of the public sector distribution companies (DISCOMs) being unable to make payments on time for the procurement of power. Ultimately, this will require long-term financial structural fixes for DISCOMs, some of which are currently under consideration. However, in the short-term, one solution is a government-supported payment security mechanism to build investor confidence. In this paper, we develop a framework, in order to enable assessment of an existing payment security mechanism. We built our framework using elements of credit and financial guarantees – probability of default, exposure at default, and recovery after default. We applied the framework to estimate the size of payment security mechanism involving a central aggregator during JNNSM Phase 2, Batch1. We estimated this size to be INR 4160 million or INR 5.55 million/MW, or less than 10% of capital costs, but more than 2.5 times the size of a previously proposed facility. In other words, the existing facility did not provide adequate coverage of off-taker risk.
    Keywords: Credit risk, Probability of default, Renewable energy, Power purchase agreement
    JEL: Q4 Q5
    Date: 2016–04
  52. By: Manish Pandey; Wenbiao Cai
    Abstract: We examine the differential effects of using taxes and tradable permits to regulate emissions in an economy with financial frictions. We construct a two-sector model, where the regulated sector output is produced by entrepreneurs who differ in their endowment of managerial skills and assets and face a borrowing constraint. Government uses either an output tax or sets up a market for permits to restrict emissions by reducing the regulated sector output. We analytically show that tradable permits generate misallocation of resources while taxes do not. We parameterize the model and quantitatively examine the effects of using taxes or tradable permits to restrict the regulated sector output to the same level. We find that compared to taxes, using tradable permits results in lower aggregate productivity, welfare, and government revenue. Our findings suggest that taxes would be a better instrument than tradable permits for regulating emissions in countries with less-developed financial markets.
    Date: 2016–05
  53. By: Bui Dung The (Hue University)
    Abstract: Soil erosion is a significant problem in the uplands of the Central Coast of Vietnam. It affects the livelihood of farmers and could hinder the long-term economic development efforts in the uplands. Yet, trapped in poverty, upland farmers, especially the ethnic minority, are still using erosive land use systems to meet their immediate needs. This study demonstrates how the level of soil erosion varies across the typical land use systems. The fruit tree based agroforestry system is least erosive and most financially profitable. Measured by the annualized income loss, the on-site costs of soil erosion under upland ricebased and eucalyptus-based systems are VND 1,022 and 1,019 thousand/ha per year, respectively. That under the sugarcane system is VND 635 thousand/ ha per year, as compared (in all cases) to the fruit tree-based agroforestry system. The choice of land use system is influenced by farmers’ attributes, land plot characteristics, and policy-related variables. Promoting the switch to agroforestry systems and the adoption of soil conservation measures is essential in reducing soil erosion and sustaining development in the uplands. It is, however, a very challenging task.
    Keywords: Economics of Soil Erosion,Choice of Land Use Systems,Vietnam
    Date: 2016–04
  54. By: Jaco P. Weideman (Department of Economics, University of Pretoria); Roula Inglesi-Lotz (Department of Economics, University of Pretoria)
    Abstract: South Africa has been struggling to cope with its energy demand. In order to remedy the problem, the government of South Africa has committed itself to pursuing renewable energy as a viable alternative to traditional sources such as fossil fuels. The aim of this study is to understand whether or not the policies pursued by the South African government in the period 1990-2010 have had any effect on the behaviour of consumers and producers of renewable energy. To this end, the Bai and Perron (1998, 2003) break test methodology is employed to understand how renewable energy production and consumption series have evolved over this period. Deviations from the base case are then explained in the South African economic and policy context.
    Keywords: Renewable energy, policy analysis, Bai and Perron, breakpoint
    Date: 2016–04
  55. By: Younis, Fizza; Chaudhary, Aslam; Akbar, Muhammad
    Abstract: Economic growth and development in Pakistan has always been erratic. This study attempts to examine possible causes and ramifications arising as a result. Major macroeconomic, social and environmental variables are examined using data from 1950 to 2013 and policy implications are chalked out. Literature shows that low savings and investment rates, budget deficit, institutional shortcomings, lack of human development and environmental degradation remains some of the major issues faced by the country. These factors together along with bad governance are considered as the major cause of unsustainable development. The descriptive analysis of the growth rates and averages of selected variables is conducted to study the pattern of economic growth and development. The study reveals that Pakistan has experienced unsustainable economic growth since its birth. Savings and investment has remained low and there is persistence of fiscal deficit. Furthermore trade deficit worsens the balance of payment situation. Investment in infrastructure, especially social infrastructure is inadequate and, hence human development is neglected. In addition, there is environmental degradation. Thus there is need for policies that encompass economic, social and environmental sectors. In other words policies should aim at achieving sustainable development.
    Keywords: Data analysis, Economy in retrospect, Pakistan economy, Pattern of development, Sustainable growth.
    JEL: O1
    Date: 2015
  56. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Southeast Asia Department, ADB); Asian Development Bank (ADB) (Southeast Asia Department, ADB); Asian Development Bank (ADB)
    Abstract: This report aims to demonstrate the compelling need to increase investments in natural capital in the Greater Mekong Subregion (GMS) and identifies actions now being taken regionally and nationally to manage natural capital. It also proposes a guiding framework for promoting investments and actions by GMS countries to secure natural capital and thus ensure sustainable and inclusive growth in the subregion.
    Keywords: lao pdr, vietnam, myanmar, cambodia, thailand, economics valuation, ecosystem services, climate change, vulnerability, investments, food, energy, water security, gms, natural capital, inclusive growth
    Date: 2015–11
  57. By: Kojima, Michikazu; Watanabe, Mariko
    Abstract: This paper aims to identify the magnitude of energy efficiency improvement, which has been promoted through energy efficiency labeling and the Minimum Energy Performance Standard, and to compare this against the increase in the number of products and the average increase in cooling capacity. Air conditioners (ACs) are one of the major contributors to energy consumption in a household. To assess the magnitude of this factor, we developed a formula to decompose total energy consumption from ACs into the number of ACs, their average cooling capacity, and energy efficiency. In the case of ACs in Thailand, energy efficiency improvement has offset the increase in the average AC cooling capacity. However, energy consumption from ACs increases with the number of ACs.
    Keywords: Energy, Household, Energy Efficiency, Standard and Labeling, Thailand
    JEL: D19 Q49 Z00
    Date: 2016–03
  58. By: -
    Abstract: O mundo vive uma mudança de época. A comunidade internacional, respondendo aos desequilíbrios econômicos, distributivos e ambientais do estilo de desenvolvimento dominante, aprovou recentemente a Agenda 2030 para o Desenvolvimento Sustentável e seus 17 Objetivos. Este documento, que a Comissão Econômica para a América Latina e o Caribe (CEPAL) apresenta aos Estados membros no trigésimo sexto período de sessões, complementa analiticamente essa Agenda com base na perspectiva estruturalista do desenvolvimento e sob o ponto de vista dos países da América Latina e do Caribe. Suas propostas se concentram na necessidade de impulsionar uma mudança estrutural progressiva que aumente a incorporação de conhecimento na produção, garanta a inclusão social e combata os efeitos negativos da mudança climática. As reflexões e propostas para avançar rumo a um novo estilo de desenvolvimento mantêm seu foco no impulso à igualdade e à sustentabilidade ambiental. A criação de bens públicos globais e de seus correlatos no âmbito regional e de políticas nacionais é o núcleo a partir do qual se expande a visão estruturalista para um keynesianismo global e uma estratégia de desenvolvimento concentrada num grande impulso ambiental.
    Date: 2016–04
  59. By: Daniel Rais
    Abstract: SECO Working Paper 11/2014 by Alfredo Maraví Contreras, PUCP
    Date: 2014–11–01
  60. By: Claudio Agostini (Escuela de Gobierno, Universidad Adolfo Ibáñez); Shahriyar Nasirov; Carlos Silva
    Date: 2015–02
  61. By: James Mabli; Julie Worthington
    Abstract: This study describes the food access environment and food purchase behavior of Supplemental Nutrition Assistance Program (SNAP) households using data from the SNAP Food Security Survey, the largest and most recent national survey of SNAP participants to date.
    Keywords: food access , SNAP , Food Stamp Program , Supplemental Nutrition Assistance Program , food shopping , GIS , spatial analysis , geographic access
    JEL: I0 I1
  62. By: Nakano, Yuko; Kajisa, Kei; Otsuka, Keijiro
    Abstract: In order to develop a strategy for a rice Green Revolution in sub-Saharan Africa, this study investigates the determinants of the adoption of new technologies and their impact on productivity of rice cultivation. We analyzed two kinds of data sets collected in Tanzania: a nationally representative cross-sectional data and a three-year panel data of irrigated farmers in one district. We found that not only irrigation but also agronomic practices taught by training play key roles in increasing the adoption of modern technologies and the productivity of rice farming
    Keywords: Rice production, Tanzania, Adoption of new technology, impact on productivity, agronomic practices, training, Crop Production/Industries, Environmental Economics and Policy,
    Date: 2015
  63. By: Mekonnen, Dawit; Channa, Hira; Ringler, Claudia
    Abstract: This study explores the impact of water users' associations (WUAs) on farmers' productivity in Punjab province of Pakistan. We find that the presence of WUAs provide a productivity gain of ten and eight percent for farmers at the tail end of watercourses and those that rely solely on groundwater. The productivity impact of WUAs on farmers that rely more on groundwater suggests that improving the management of surface water through functioning watercourse level institutions can be a viable option in reducing over-utilization of groundwater resources and the pressure it creates on the already strained energy situation in the country. However, we find no evidence of WUAs improving productivity for those at the head and middle of watercourses, indicating that the performance of WUAs is likely to face challenges from these groups.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy,
    Date: 2015
  64. By: Daniel Rais
    Abstract: Abstract The Swiss commodity sector has come under increasing scrutiny in the last few years as a result of the substantial growth experienced by global commodity trade since 2002 and the importance of Switzerland as a leading international commodity trading hub. These developments have put commodity trading squarely on the agenda of Swiss institutions and non-governmental organizations (NGOs). Swiss academia has also started engaging in the debate, but faced considerable challenges in contributing to an informed dialogue due to the overall paucity of data still surrounding cross-border and transit activities of Swiss-based commodity companies active in physical and derivatives trading, and the consequent substantial gaps in existing literature as to the impacts associated with commodity investment and trading in Switzerland and in host countries. This paper aims at identifying main knowledge gaps and providing a basis for further academic research on commodity investment and trading, while informing current policy debates and decision-making processes in Switzerland. 
    Date: 2015–07–14

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