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on Environmental Economics |
| By: | Bak, Céline; Bhattacharya, Amar; Edenhofer, Ottmar; Knopf, Brigitte |
| Abstract: | The authors propose a policy package of low-carbon growth stimulation through a steep increase in sustainable infrastructure, mobilizing sustainable finance, and adoption of carbon pricing to simultaneously achieve the objectives of the Paris Agreement and the Sustainable Development Goals. |
| Keywords: | Paris Agreement,climate change,infrastructure,carbon pricing,green finance |
| JEL: | D62 E62 H21 H22 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201741&r=env |
| By: | Pascalau, Razvan; Qirjo, Dhimitri |
| Abstract: | This paper uses data on emissions per capita of ten air pollutants and municipal waste to investigate the potential impact of the Transatlantic Trade and Investment Partnership (TTIP) on the empirical validity of the Environmental Kuznets Curve (EKC). Using a dataset of the twenty-eight EU members and of the U.S. over a twenty-five year period, the results in this paper provide robust and statistically significant evidence consistent with the EKC argument for CO2, CH4, and HFCs/PFCs/SF6, respectively. Further, the paper finds a monotonically increasing relationship between income per capita and emissions per capita in the cases of GHGs, SF6, and NO2, respectively. In addition, this paper finds that the EKC’s turning point values of each pollutant are sensitive to the econometric approach and/or to the employed control variables. Finally, the study reports statistically significant evidence suggesting a U-shaped relationship between emissions per capita of SO2 or SOx and income per capita. |
| Keywords: | Free Trade; Environmental Kuznets Curve; TTIP. |
| JEL: | F18 F53 Q56 |
| Date: | 2017–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80192&r=env |
| By: | John Gibson (University of Waikato) |
| Abstract: | To study welfare effects of environmental change, data from household surveys may be linked to remote sensing data. If linking uses spatial aggregation there is risk of ecological fallacy, since surveys are only representative for large areas that may not correspond to the spatial scale of the decision-making units. This paper uses survey-to-census imputation to estimate welfare indicators for small areas in order to study the effect of deforestation on subsequent inequality in the rural Solomon Islands. This country depends on logging for almost half of foreign exchange and one-sixth of government revenue, and most forested land remains under customary ownership. A sharp increase in log exports, to seven times the sustainable yield, and a major shift in export destinations as other countries withdrew from the tropical log trade represents an exogenous shock that helps to identify effects of deforestation on inequality rather than the reverse relationship. Using data for rural wards, that have about 400 households each, a standard deviation increase in the rate of forest loss over 2000 to 2012 raises the Gini index for household consumption in 2013 by one-third of a standard deviation. This precisely estimated effect would not be apparent using more spatially aggregated data. |
| Keywords: | deforestation; inequality; poverty; small-area estimation |
| JEL: | O15 Q23 |
| Date: | 2017–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:17/14&r=env |
| By: | Thomas Kuhn (Department of Economics, Chemnitz University of Technology); Radomir Pestow; Anja Zenker (Department of Economics, Chemnitz University of Technology) |
| Abstract: | In this paper, we discuss the endogenous formation of climate coalitions in the tradition of the issue-linkage literature. In particular, we propose a preferential free trade agreement on which a climate coalition should be built. The basic idea is that the benefits of free trade provide strong incentives for free riders to join the coalition. As a framework, a multi-stage strategic trade model is used in which a country may discourage greenhouse gas emissions by setting an emissions cap effective on a permit market. In addition, a discriminatory import tariff is imposed on dirty goods. However, at the heart of our approach are the trade privileges granted to coalition members shifting the terms of trade favourably without prodiving incentives towards eco-dumping. As a main result, we find that trade liberalisation is much more effective in building climate coalitions than a single-issue environmental agreement. The parametrical simulation of the model in particular shows that participation in joint emission reduction is higher, consumption patterns are more environmentally friendly, and coalitional welfare is improved. As a policy implication, negotiations on climate treaties and free trade arrangements should be integrated. |
| Keywords: | Climate Change, International Environmental Agreements, Free Trade, Issue Linkage, Tradable Permits, Strategic Trade Policy |
| JEL: | Q54 Q56 F18 F15 Q58 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:tch:wpaper:cep011&r=env |
| By: | J-F Mercure; H. Pollitt; N. R. Edwards; P. B. Holden; U. Chewpreecha; P. Salas; A. Lam; F. Knobloch; J. Vinuales |
| Abstract: | A high degree of consensus exists in the climate sciences over the role that human interference with the atmosphere is playing in changing the climate. Following the Paris Agreement, a similar consensus exists in the policy community over the urgency of policy solutions to the climate problem. The context for climate policy is thus moving from agenda setting, which has now been established, to impact assessment, in which we identify policy pathways to implement the Paris Agreement. Most integrated assessment models currently used to address the economic and technical feasibility of avoiding climate change are based purely on engineering with a normative systems optimisation philosophy, and are thus unsuitable to assess the socio-economic impacts of realistic baskets of climate policies. Here, we introduce a fully descriptive simulation-based integrated assessment model designed specifically to assess policies, formed by the combination of (1) a highly disaggregated macro-econometric simulation of the global economy based on time series regressions (E3ME), (2) a family of bottom-up evolutionary simulations of technology diffusion based on cross-sectional discrete choice models (FTT), and (3) a carbon cycle and atmosphere circulation model of intermediate complexity (GENIE-1). We use this combined model to create a detailed global and sectoral policy map and scenario that achieves the goals of the Paris Agreement with 80% probability of not exceeding 2{\deg}C of global warming. We propose a blueprint for a new role for integrated assessment models in this upcoming policy assessment context. |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1707.04870&r=env |
| By: | Ignazio Musu (Department of Economics, University Of Venice Cà Foscari) |
| Abstract: | Economic growth since the industrial era has reduced poverty and increased societies’ quality of life, but it also has implied negative environmental effects. There is an urgent need to correct this structural unbalance. The open issue is whether this correction implies sacrificing the perspective of economic growth or if it can be achieved by maintaining economic growth though changing its nature in a more environment oriented direction. In the following I argue that this second strategy is preferable and also more realistic, but it requires an appropriate combination of conditions and policies to be implemented. Environmental regulation, particularly through the use of appropriate price signals correcting negative environmental externalities, is necessary, but not sufficient to promote the required radical environment oriented innovations, particularly to build a low-carbon economy less and less dependent on fossil fuels. Environment oriented innovation policies are required, supported by a system of social norms and by a polycentric system of governance. |
| Keywords: | Economic growth, green economy, sustainable development |
| JEL: | O44 Q54 Q55 Q56 Q57 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2017:12&r=env |
| By: | Korina, Leeja C. (Universitas Padjadjaran); Habiyaremye, Alexis (Human Sciences Research Council, South Africa) |
| Abstract: | With the impending threat of global climate change, the last decades have witnessed an increasing recognition of the potential contribution of indigenous knowledge to tackling global challenges of environmental sustainability. The sources and wisdom of indigenous knowledge have however much more to contribute to global knowledge, well beyond environment conservation and traditional medicine. This paper uses the examples of swidden cultivation, pest control and rice preservation techniques of the Baduy in West Java (Indonesia) and comparable grain pits utilisation by Nguni tribes in Southern Africa to discuss how indigenous sources of knowledge can be an inspiration for greater social cohesion and sustainable livelihoods. It also draws lessons showing that combining indigenous knowledge systems with modern scientific methods can make it possible to achieve results that neither system can do alone. |
| Keywords: | indigenous knowledge systems, sustainable livelihoods, Baduy community, Nguni tribes grain pits |
| JEL: | O13 F64 Q15 Q57 |
| Date: | 2017–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2017025&r=env |
| By: | Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Hoang Anh Nguyen Trinh (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi) |
| Abstract: | Vietnam plans to develop dozens of new coal-fired power generation units over the next 20 years. In order to reduce emissions, it may appear necessary to dispose of these plants' CO2 by burying it in deep underground geological formations instead of releasing it into the atmosphere, using Carbon Capture and Storage (CCS) technology. We show that CCS has a technical potential in Vietnam. To discuss under which economics conditions this potential could actualize, we examine two scenarios for 2050. In the first scenario, CO2 is used in Enhanced Oil Recovery (EOR) only. The second scenario considers CCS deployment in coal-based power plants, on top of using it for EOR. In both scenarios, a few gas-fired CCS power plants are build, reaching 1GW in 2030, supported by Enhanced Oil Recovery and international carbon finance. The decision point where the two scenarios diverge is in 2030. A scenario to switch all currently existing or planned power plants to low-carbon by 2050 is to retrofit 3.2 GW of coal-fired capacity and install 1.2 GW of gas-fired capacity with CCS every year, starting in 2035 for 15 years. Capture readiness would lower the costs of using CCS in Vietnam, but is not mandatory today. |
| Keywords: | vietnam, energy, scenarios, carbon capture and storage |
| Date: | 2017–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-01550029&r=env |
| By: | Mekonnen, Tigist (UNU-MERIT, and Maastricht University) |
| Abstract: | Agricultural production is subject to high risk associated with environmental and agro-ecological conditions. Farmers continuously make decisions to mitigate the various adversities. This study evaluates farm households’ willingness to pay for agricultural risk insurance intervention introduced in Ethiopia in 2009. A bidding game approach is used to elicit willingness-to-pay. We use a unique data collected on farmers’ willingness to pay for production risk insurance covering 1500 farm households. The result from the first willingness to pay response model shows that on average, farmers are willing to pay a premium of 55 Ethiopian Birr. By increasing the efficiency of our estimation, a double-bounded dichotomous choice model is estimated in the follow-up willingness to pay response question. It indicates that farmers are willing to pay about 67 Ethiopian Birr to insurance coverage. The use of modern agricultural technologies such as high-yielding variety and inorganic fertilizer, low rainfall, large family size, and high rainfall type are potential indicators that determine farmers’ decision to adopt financial insurance. We also found farmer’s demand for insurance increases due to the changing extreme weather events. Therefore, the study provides information to agricultural policy makers and private companies to promote agricultural insurance and set the premium and enrollment unit. |
| Keywords: | Risk, uncertainty, technologies, insurance, contingent valuation methods, Ethiopia |
| JEL: | D22 D81 G22 |
| Date: | 2017–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2017028&r=env |
| By: | International Monetary Fund |
| Abstract: | Seychelles has put climate change at the center of its sustainable development strategy, more purposefully than most other small states. Its Nationally Determined Contribution (NDC) submission to the Paris Agreement outlined a balanced mitigation and adaptation strategy, accompanied by costed investment plans. |
| Keywords: | Sub-Saharan Africa;Seychelles; |
| Date: | 2017–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:17/162&r=env |
| By: | Rana Roy; Nils Axel Braathen |
| Abstract: | This paper presents updated results for the cost of ambient air pollution in 41 countries: the 6 major emerging economies known as the BRIICS – Brazil, Russia, India, Indonesia, China and South Africa – and the 35 member-countries of the OECD. It draws on the epidemiological evidence base assembled in the Global Burden of Disease Study 2015, in order to detail results for mortalities from ambient air pollution (AAP) – ambient particulate matter pollution (APMP) and ambient ozone pollution (AOP) – in each of these 41 countries, at successive five-year intervals from 2000 to 2015. |
| Keywords: | Air pollution, Cost-Benefit Analysis, Mortality, Value of Statistical Life |
| JEL: | D61 Q51 Q53 |
| Date: | 2017–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:124-en&r=env |
| By: | Basile Boulay |
| Abstract: | Economic research tends to focus on a reduced set of crops, leaving a vast array of crops under-researched. However, these ‘marginal crops’ have typically been farmed for centuries and are better suited for the local environment in which they are grown than crops prioritized within existing research. As such, they can contribute towards a less intensive and productivist mode of farming while at the same time help achieving important sustainable development goals. Our mixed-methods study conducted in Tanzania contributes to advancing knowledge of one such marginal crop, the Bambara nut. On the quantitative side, we surveyed 270 farmers across 16 villages in the Mtwara rural district to gather socio-economic and agricultural data. On the qualitative side, we ran focus groups in four villages to enquire about village norms and constraints surrounding the farming of Bambara. We show that Bambara is often seen as a vital crop for food consumption and food security, as it is easy to grow and has a strong nutritional content. However, despite selling at a high price, its market is not well developed due to lack of availability of improved seeds and unreliable marketing channels. We argue that developing the economic potential of indigenous crops constitutes a path towards greater agricultural sustainability as these crops are suited to local environments, need little chemical inputs, are drought resilient and extremely nutritious. Doing so would constitute a first step towards changing the existing and highly problematic agricultural paradigm and reducing farmers’ dependency on input and output markets. |
| Keywords: | agriculture, underutilised crops, mixed-methods, sustainability JEL Classification: O13, Q01, Q12, Q18, Q19 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:not:notcre:17/06&r=env |
| By: | Lee, Hyuntai (Korea Institute for International Economic Policy); Kim, Junyoung (Korea Institute for International Economic Policy); Oh, Yunmi (Korea Institute for International Economic Policy) |
| Abstract: | The 2nd AIIB Annual Meeting was held in the Republic of Korea as an international forum to evaluate the operations of the AIIB and discuss short and long-term strategies and challenges. At the Meeting, the AIIB emphasized the keyword "Lean (efficient)" in its business operations, presenting the core principles of its short- to long-term strategy as "Lean (efficient), Clean (ethical) and Green (environment-friendly)" operations. The AIIB is expected to respond to new global challenges by constructing infrastructures, while aligning its operations with the core principles of a lean, clean and green organization, thus aiming to develop into a new type of MDB appropriate for the 21st century. However, in order to develop into such a 21st century MDB model, the AIIB will have to overcome many difficulties. First, the AIIB needs to handle the internal capability problem. Second, the AIIB should overcome the profitability problem. Third, there are the institutional limitations. Fourth, it will be important to control the potential conflict breaking out between member states. Fifth, there is the issue of China's influence. The question of how China exercises its influence will be a measure of AIIB's progress toward a truly international cooperation body. The AIIB is also expected to hold discussions on how to upgrade the existing Bretton Woods system as China-led international financial institutions such as the AIIB, NDB and Silk Road Fund continue to grow. In line with the development of the AIIB, Korea should develop a new infrastructure model that incorporates new global issues such as the 4th industrial revolution, climate change, the digital economy, and sustainable development, proactively present this to the AIIB and encourage the participation of Korean companies in these business projects. In addition, based on its experience with successfully leading infrastructure investments in the past, Korea needs to actively develop infrastructure development projects that contribute to inclusive growth, such as projects that contribute to regional balanced growth, high-quality job creation, and social integration in Asian developing countries. It would also be possible for Korean local governments to utilize their networks of exchange and cooperation with cities and regions in Asian developing countries to jointly develop local infrastructures in these countries. |
| Keywords: | AIIB; The 2nd Annual Meeting; Sustainable Infrastructure |
| Date: | 2017–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2017_015&r=env |
| By: | Singh, Rajesh; Weninger, Quinn |
| Abstract: | We evaluate management implications of cross-species flexibility in a multiple-species individual fishing quota regulation. We derive fishermen’s privately optimal harvesting and discarding choices under a joint-in-inputs, costly-targeting technology and the complex mapping between quotas set by the regulator and harvest and discard outcomes. Flexibility can reduce fishery rent due to reduced control of harvest outcomes. Empirical evidence from the Gulf of Mexico commercial reef fish fishery is presented to test model predictions. We find no evidence that flexibility reduced discards caused by random quota overages. Discarding in the data is attributed to a particularly small quota and a much larger quota set for jointly harvested species. |
| Date: | 2017–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:201707080700001026&r=env |
| By: | Bruno Lanz; Simon Dietz; Tim Swanson |
| Abstract: | The world is banking on a major increase in food production, if the dietary needs and food preferences of an increasing, and increasingly rich, population are to be met. This requires the further expansion of modern agriculture, but modern agriculture rests on a small number of highly productive crops and its expansion has led to a significant loss of global biodiversity. Ecologists have shown that biodiversity loss results in lower plant productivity, while agricultural economists have linked biodiversity loss on farms with increasing variability of crop yields, and sometimes lower mean yields. In this paper we consider the macro-economic consequences of the continued expansion of particular forms of intensive, modern agriculture, with a focus on how the loss of biodiversity affects food production. We employ a quantitative, structurally estimated model of the global economy, which jointly determines economic growth, population and food demand, agricultural innovations and land conversion. We show that even small effects of agricultural expansion on productivity via biodiversity loss might be sufficient to warrant a moratorium on further land conversion. |
| Keywords: | Agricultural productivity; biodiversity; endogenous growth; food security; land conversion; population |
| JEL: | N10 N50 O31 O44 Q15 Q16 Q57 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:irn:wpaper:17-08&r=env |
| By: | - |
| Keywords: | DESARROLLO SOSTENIBLE, OBJETIVOS DE DESARROLLO SOSTENIBLE, SOCIEDAD DE LA INFORMACION, ESTRATEGIAS DEL DESARROLLO, INTERNET, GOBERNABILIDAD, SERVICIOS ESTADISTICOS, MEDIO AMBIENTE, CONDICIONES POLITICAS, CULTURA, COOPERACION INTERNACIONAL, COOPERACION REGIONAL, SUSTAINABLE DEVELOPMENT, SUSTAINABLE DEVELOPMENT GOALS, INFORMATION SOCIETY, DEVELOPMENT STRATEGIES, INTERNET, GOVERNANCE, STATISTICAL SERVICES, ENVIRONMENT, POLITICAL CONDITIONS, CULTURE, INTERNATIONAL COOPERATION, REGIONAL COOPERATION |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col095:41983&r=env |
| By: | - |
| Keywords: | COOPERACION INTERNACIONAL, COOPERACION REGIONAL, DERECHOS HUMANOS, RELACIONES EXTERIORES, HISTORIA, COMERCIO ELECTRONICO, ASPECTOS JURIDICOS, CONFERENCIAS, OBJETIVOS DE DESARROLLO SOSTENIBLE, RELACIONES PUBLICAS, ESCUELAS, SALUD, SEGURIDAD VIAL, CONDICIONES POLITICAS, CULTURA, TURISMO, INTERNATIONAL COOPERATION, REGIONAL COOPERATION, HUMAN RIGHTS, FOREIGN RELATIONS, HISTORY, ELECTRONIC COMMERCE, LEGAL ASPECTS, CONFERENCES, SUSTAINABLE DEVELOPMENT GOALS, PUBLIC RELATIONS, SCHOOLS, HEALTH, TRAFFIC SAFETY, POLITICAL CONDITIONS, CULTURE, TOURISM |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col095:41984&r=env |
| By: | - |
| Keywords: | ALIVIO DE LA DEUDA, FINANCIACION, DEUDA PUBLICA, CRECIMIENTO ECONOMICO, PREPARACION PARA CASOS DE DESASTRES, DESARROLLO DE CAPACIDAD, NIÑOS, EDUCACION, SOCIEDAD DE LA INFORMACION, ESTRATEGIAS DEL DESARROLLO, COOPERACION REGIONAL, DESARROLLO SOSTENIBLE, OBJETIVOS DE DESARROLLO SOSTENIBLE, CONFERENCIAS, DEBT RELIEF, FINANCING, PUBLIC DEBT, ECONOMIC GROWTH, DISASTER PREPAREDNESS, CAPACITY BUILDING, CHILDREN, EDUCATION, INFORMATION SOCIETY, DEVELOPMENT STRATEGIES, REGIONAL COOPERATION, SUSTAINABLE DEVELOPMENT, SUSTAINABLE DEVELOPMENT GOALS, CONFERENCES |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col095:41979&r=env |
| By: | - |
| Keywords: | CONDICIONES ECONOMICAS, COOPERACION REGIONAL, ENVEJECIMIENTO, ANCIANOS, DERECHOS HUMANOS, CONFERENCIAS, RENDIMIENTO ENERGETICO, TRANSPORTE SOSTENIBLE, ELABORACION DE POLITICAS, PROYECTOS DE DESARROLLO, ESTADOS PEQUEÑOS, ISLAS, DESARROLLO SOSTENIBLE, TECNOLOGIA DE LA INFORMACION, SOCIEDAD DE LA INFORMACION, INTERNET, TECNOLOGIA DE LAS COMUNICACIONES, INDUSTRIAS CULTURALES, ENTRETENIMIENTO, CONDICIONES POLITICAS, CULTURA, ECONOMIC CONDITIONS, REGIONAL COOPERATION, AGEING, AGEING PERSONS, HUMAN RIGHTS, CONFERENCES, ENERGY EFFICIENCY, SUSTAINABLE TRANSPORT, POLICY-MAKING, DEVELOPMENT PROJECTS, SMALL STATES, ISLANDS, SUSTAINABLE DEVELOPMENT, INFORMATION TECHNOLOGY, INFORMATION SOCIETY, INTERNET, COMMUNICATION TECHNOLOGY, CULTURAL INDUSTRIES, ENTERTAINMENT, POLITICAL CONDITIONS, CULTURE |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col095:41973&r=env |
| By: | - |
| Keywords: | MACRODATOS, SERVICIOS ESTADISTICOS, SOCIEDAD DE LA INFORMACION, ENTRETENIMIENTO, POBLACION, CRECIMIENTO ECONOMICO, SEGURIDAD REGIONAL, COOPERACION REGIONAL, MEDIOS DE COMUNICACION DE MASAS, INDUSTRIAS CULTURALES, DESARROLLO SOSTENIBLE, CONDICIONES POLITICAS, CULTURA, BIG DATA, STATISTICAL SERVICES, INFORMATION SOCIETY, AGEING, POPULATION, ECONOMIC GROWTH, REGIONAL SECURITY, REGIONAL COOPERATION, MASS MEDIA, CULTURAL INDUSTRIES, SUSTAINABLE DEVELOPMENT, POLITICAL CONDITIONS, CULTURE |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col095:41982&r=env |