nep-env New Economics Papers
on Environmental Economics
Issue of 2017‒08‒27
25 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. The environmental Kuznets curve in Indonesia: Exploring the potential of renewable energy By Sugiawan, Yogi; Managi, Shunsuke
  2. Optimal Privatization Policy in a Mixed Eco-Industry in the Presence of Commitments on Abatement Technologies By Lee, Sang-Ho; Nakamura, Tamotsu; Park, Chul-Hi
  3. Refunding Emissions Taxes By Bontems, Philippe
  4. Addressing transboundary cooperation in the Eastern Nile through the Water-Energy-Food Nexus: Insights from an E-survey and key informant interviews By Berga, Helen; Ringler, Claudia; Bryan, Elizabeth; El Didi, Hagar; Elnasikh, Sara
  5. Estimating recreational values of coastal zones By Halkos, George; Matsiori, Steriani
  6. Environment Research (About Us) By Mathematica Policy Research
  7. Transformative policy mixes in socio-technical scenarios: The case of the low-carbon transition of the German electricity system (2010-2050) By Rogge, Karoline S.; Pfluger, Benjamin; Geels, Frank
  8. Benefit Transfer for Ecosystem Services By Kevin J. Boyle; Christopher F. Parmeter
  9. Who Bears the Economic Costs of Environmental Regulations? By Don Fullerton; Erich Muehlegger
  10. Annex I and non-Annex I countries’productive performance revisited using a generalized directional distance function under a metafrontier framework: Is there any convergence-divergence pattern for technology gaps? By Kounetas, Kostas; Zervopoulos, Panagiotis
  11. The Influence of Scientific Information on the Willingness to Pay for Stormwater Runoff Abatement By Peter A. Groothuis; Tanga A. Mohr; John C. Whitehead; Kristan A. Cockerill; William P. Anderson, Jr.; Chuanhui Gu
  12. Empowerment, adaptation, and agricultural production evidence from Niger By Wouterse, Fleur Stephanie
  13. Climate change and variability: What are the risks for nutrition, diets, and food systems? By Fanzo, Jessica; McLaren, Rebecca; Davis, Claire; Choufani, Jowel
  14. Determinants of Successful Collective Management of Forest Resources: Evidence from Kenyan Community Forest Associations By Boscow Okumu; Edwin Muchapondwa
  15. Global Marine Fisheries with Economic Growth By Sugiawan, Yogi; Islam, Moinul; Managi, Shunsuke
  16. User-Side Intermediaries and the Local Embedding of Low Carbon Technologies By Jake Barnes
  17. Default Risk, Productivity, and the Environment: Theory and Evidence from U.S. Manufacturing By Andersen, Dana C.
  18. Do Incidences of Contamination Hurt Tunisian Economic Flourishing? By Bakari, Sayef; Othmani, Abdelhafidh; Mabrouki, Mohamed
  19. Evaluating the Economic Cost of Coastal Flooding By Esteban Rossi-Hansberg; David Nagy; Klaus Desmet
  20. A study on environmental infractions for Brazilian municipalities: a spatial dynamic panel approach By Júlia Gallego Ziero Uhr; André Luis Squarize Chagas, Daniel de Abreu Pereira Uhr, Renan Porn Peres
  21. Alternative Types of Ambiguity and their Effects on the Probabilistic Properties and Tail Risks of Environmental-Policy Variables By Phoebe Koundouri; Nikitas Pittis; Panagiotis Samartzis; Nikolaos Englezos; Andreas Papandreou
  22. Enquête sur les ménages, l’environnement et le tourisme dans les zones protégées - Népal, 2013 By Marie-Eve Yergeau
  23. Does Extreme Rainfall Lead to Heavy Economic Losses in the Food Industry? By Edimilson Costa Lucas; Wesley Mendes Da Silva; Gustavo Silva Araujo
  24. Análise da Construção da Política Nacional de Agroecologia e Produção Orgânica no Brasil By Regina Helena Rosa Sambuichi; Paulo Asafe Campos Spínola; Luciano Mansor de Mattos; Mário Lúcio de Ávila; Iracema Ferreira de Moura; Ana Paula Moreira da Silva
  25. Pathways from agriculture to nutrition in India: Implications for sustainable development goals By Das, Mousumi; Sharma, Ajay; Babu, Suresh Chandra

  1. By: Sugiawan, Yogi; Managi, Shunsuke
    Abstract: There is an increasing interest in investigating the environmental Kuznets curve (EKC) hypothesis because it suggests the existence of a turning point in the economy that will lead to a sustainable development path. Although many studies have focused on the EKC, only a few empirical studies have focused on analyzing the EKC with specific reference to Indonesia, and none of them have examined the potential of renewable energy sources within the EKC framework. This study attempts to estimate the EKC in the case of Indonesia for the period of 1971-2010 by considering the role of renewable energy in electricity production, using the autoregressive distributed lag (ARDL) approach to cointegration as the estimation method. We found an inverted U-shaped EKC relationship between economic growth and CO2 emissions in the long run. The estimated turning point was found to be 7,729 USD per capita, which lies outside of our sample period. The beneficial impacts of renewable energy on CO2 emission reduction are observable both in the short run and in the long run. Our work has important implications both for policymakers and for the future development of renewable energy in Indonesia.
    Keywords: Renewable energy; environmental Kuznets curve; Cointegration
    JEL: O13 Q43 Q48
    Date: 2016–02–20
  2. By: Lee, Sang-Ho; Nakamura, Tamotsu; Park, Chul-Hi
    Abstract: We formulate the vertical market structure with a downstream polluting industry and an upstream eco-industry, where both private and public eco-firms produce abatement goods. We then investigate the voluntary commitments on target emissions from polluting firms and their impacts on the optimal decisions of privatization policies. We provide the conditions for the non-optimality of partial privatization and show that, depending on the environmental damage, full nationalization, full privatization or partial privatization can be optimal. In particular, it is shown that there is a U-shaped relationship between environmental damage and the optimal degree of privatization. It supports that government should have large ownership of privatized eco-firms for environmental protection when environmental damage is serious.
    Keywords: Abatement Goods; Commitments; Eco-Industry; Mixed Oligopoly; Partial Privatization
    JEL: D43 L13 Q58
    Date: 2017–08–21
  3. By: Bontems, Philippe
    Abstract: This paper examines theoretically whether by combining both output based refunding and abatement expenditures based refunding it is possible to limit the negative consequences that a pollution tax imply for a polluting industry. We actually show that this is indeed the case by using such a three-part policy where emissions are subject to a fee and where output and abatement expenditures are subsidized. In particular, when the industry is homogenous, it is possible to replicate the standard emission tax outcome by inducing a polluting firm to choose the production and emission levels obtained under any emission tax, without departing from budget balance. By construction, any polluter earns strictly more than under the standard tax alone without rebate, making this proposal highly acceptable to the industry. When firms are heterogenous, the refunding policy needed to replicate the standard emission tax outcome is personalized in the sense that at least the output subsidy should be type dependent. Another result is that this three-part policy is strictly prefered only from the industry's point of view to a standard environmental tax. We also explore the implications of uniform three-part refunding policies for a heterogenous industry.
    Keywords: refunded emission taxes; regulation design; pollution.
    JEL: H23 Q52 Q58
    Date: 2017–07
  4. By: Berga, Helen; Ringler, Claudia; Bryan, Elizabeth; El Didi, Hagar; Elnasikh, Sara
    Abstract: The Nile is the lifeblood of northeastern Africa, and its roles for and interdependency with the national economies it traverses and binds together grow as it moves from source to sea. With rapid economic development—population growth, irrigation development, rural electrification, and overall economic growth—pressures on the Nile’s water resources are growing to unprecedented levels. These drivers of change have already contributed to stark changes in the hydropolitical regime, and new forms of cooperation and cross-sectoral collaboration are needed, particularly in the Eastern Nile Basin countries of Egypt, Ethiopia, Sudan, and South Sudan. As direct sharing of water resources is hampered by unilateral developments, the need has increased for broader, cross-sectoral collaboration around the water, energy, and food sectors. This study is conducted to assess and understand the challenges of and opportunities for cooperation across the water-energy-food nexus nationally in Egypt, Ethiopia, and Sudan, as well as regionally across the Eastern Nile. To gather data, the paper uses an e-survey supplemented with key informant interviews geared toward national-level water, energy, and agriculture stakeholders, chiefly government staff and researchers. Findings from the survey tools suggest that most respondents strongly agree that collaboration across the water, energy, and agriculture sectors is essential to improve resource management in the region. At the same time, there is ample scope for improvement in collaboration across the water, energy, and food sectors nationally. Ministries of water, energy, and food were identified as the key nexus actors at national levels; these would also need to be engaged in regional cross-sectoral collaboration. Respondents also identified a wide range of desirable cross-sectoral actions and investments—both national and regional—chiefly, joint planning and operation of multipurpose infrastructure; investment in enhanced irrigation efficiency; joint rehabilitation of upstream catchments to reduce sedimentation and degradation; and investment in alternative renewable energy projects, such as wind and solar energy.
    Keywords: stakeholders, energy, water, food, Nile river, resilience, surveys, cooperation,
    Date: 2017
  5. By: Halkos, George; Matsiori, Steriani
    Abstract: The present study tries to improve our understanding of why some people value coastal zone using attitudinal and preference factors in a Contingent Valuation Method (CVM) study. Specifically, it aims at public preferences for improving the quality (protection) of Pagasitikos coastal area in Greece and explores the influence of environmental attitude on preference to people’s willingness to pay (WTP) coastal zone conservation. It also presents the results of a discrete CVM survey which investigates households’ WTP for a set of wetland attributes. The proposed approach uses applied methodological methods like Principal Components and Cluster Analyses together with logistic regression. Various demographic variables (as education and income) together with people’s preferences for coastal zone show a strong impact on WTP and the specific amounts stated. At a second stage people who accept the CVM scenario results and grouped into two segments, with different attitude against coastal zone management and ecological view.
    Keywords: Environnemental attitudes; NEP scale; CVM; WTP; coastal zone people perception.
    JEL: C10 C52 Q20 Q50 Q51 Q57
    Date: 2017–08
  6. By: Mathematica Policy Research
    Abstract: Science has documented the effects of climate change, waste and land management, and environmental pollutants on our planet, but effecting change in human behavior has proved to be more elusive.
    Keywords: Environment Research, climate change, land management
  7. By: Rogge, Karoline S.; Pfluger, Benjamin; Geels, Frank
    Abstract: Global climate change represents one of the grand societal challenges which policy makers around the world have agreed to jointly tackle it under the Paris Agreement. Henceforth, much research and policy advice has focused on de-veloping model-based scenarios to identify pathways towards achieving corre-sponding decarbonisation targets. In this paper, we complement such model-based analysis (based on IMAGE and Enertile) with insights from socio-technical transition analysis (MLP) to develop socio-technical storylines that plausibly show how low-carbon transitions can be implemented. We take the example of the transition of the German electricity system towards renewable energies, and elaborate two transition pathways which are assumed to achieve an 80% reduction in GHG emissions by 2050, but differ in terms of lead actors, depth of change and scope of change: the first pathway captures the substitu-tion of technological components (pathway A) and assumes incumbents as lead actors and focuses on radical technological change while leaving other system elements intact; in contrast, pathway B (broader system transformation) postu-lates new entrants as lead actors, which rests on the assumption that trans-formative change occurs in the whole system, i.e. affecting the architecture of the system, technologies but also practises. For both pathways, we focus on how policy makers could govern such transition processes through transforma-tive policy mixes, and compare the requirements of such policy mixes depend-ing on the pathway pursued. We find that multi-dimensional socio-technical change going beyond technological substitution (pathway B) requires much greater emphasis on societal experimentation and a more proactive role for an-ticipatory deliberation processes from the outset. In contrast, shifting gear from a new entrant friendly past trajectory to an incumbent dominated pathway (pathway A) requires active agency from incumbents and is associated with what we have called regime stabilizing instruments which defend core principles of the old regime while simultaneously fulfilling decarbonisation as additional success criteria.
    Keywords: socio-technical scenarios,transformative policy mix,German Ener-giewende,MLP,energy system modelling,transition pathways
    Date: 2017
  8. By: Kevin J. Boyle (Virginia Polytechnic Institute and State University); Christopher F. Parmeter (University of Miami)
    Abstract: Benefits transfer is the projection of benefits from one place and time to another to estimate the benefits of a proposed project or policy; this includes the adaptation of an original study to a new policy application at the same location. The appeal of a benefits transfer is that it can be cost effective, both monetarily and in time. Using previous studies, analysts can select existing results to construct a transferred value for the desired amenity influenced by the policy change. Benefits transfer practices are generally applicable to valuing ecosystem services as well as specific types of ecosystem services. An ideal benefits transfer will scale value estimates to both the ecosystem services and to the preferences of those who hold values; benefits transfers for many applications only do the latter.
    Keywords: Benefit Transfer, Ecosystem Services, Function and Value Transfers, Study Site(s), Policy Site, Convergent Validity, Meta-Analysis. Publication Status: Forthcoming
    JEL: Q50 Q51 Q57 Q58
    Date: 2017–07–25
  9. By: Don Fullerton; Erich Muehlegger
    Abstract: Public economics has a well-developed literature on tax incidence – the ultimate burdens from tax policy. This literature is used here to describe not only the distributional effects of environmental taxes or subsidies but also the likely incidence of non-tax regulations, energy efficiency standards, or other environmental mandates. Recent papers find that mandates can be more regressive than carbon taxes. We also describe how the distributional effects of such policies can be altered by various market conditions such as limited factor mobility, trade exposure, evasion, corruption, or imperfect competition. Finally, we review data on carbon-intensity of production and exports around the world in order to describe implications for effects of possible carbon taxation on countries with different levels of income per capita.
    JEL: H22 H23 Q48 Q52
    Date: 2017–08
  10. By: Kounetas, Kostas; Zervopoulos, Panagiotis
    Abstract: Countries rapid economic growth, energy consumption and anthropogenic emissions (GHGs) in the atmosphere are creating serious environmental problem on both global and local scales -. This is while compiled evidence about the relationship between climate change/global warming and the amount of GHG released is present (IEA, 2010). In advance, it is generally accepted that countries production processes, should seriously, take into account environmental sustainability principles and targets. In recent years, there have been a series of studies using a directional distance function dealing with environmental efficiency with the aim of measuring the ability of decision making units (i.e regions, firms, industries, countries) to produce more with less impact on the environment. A scarcity of empirical studies appears concerning the estimation of directional distance function under a metafrontier framework. In this paper we employ a balanced panel of 103 countries from 1995-2011 to shed light on the idiosyncratic performance of countries participating in two distinct different groups (Annex I and non-Annex I) using a generalized directional distance function independent of the direction vector length -. The non-parametric metafrontier framework - used in this study, as a first stage of analysis, is exploited to account for the heterogeneity between countries participating in our sample. In the second stage, a convergence-divergence hypothesis has been examined for the technology gaps estimated for each period. Our findings reveal significant patterns between countries’ individual performance.
    Keywords: Metafrontier; Generalized Distance Function; Technology gaps; Annex-I countries
    JEL: D24 Q0 Q4
    Date: 2017–07–15
  11. By: Peter A. Groothuis; Tanga A. Mohr; John C. Whitehead; Kristan A. Cockerill; William P. Anderson, Jr.; Chuanhui Gu
    Abstract: We integrated physical science data with a social science survey to better understand people’s preferences for stormwater runoff abatement measures. Data from a long-term monitoring project on Boone Creek in North Carolina revealed that two key concerns from stormwater runoff are thermal pollution and high salinity. We used this data to develop text and images to include in a survey to assess public attitudes about and willingness to pay for stormwater runoff abatement measures in the Appalachian region. The survey provided information about various methods to reduce stormwater runoff including containment systems and permeable pavement. To assess the impact of scientific information on individual preference for stormwater runoff abatement, we randomly assigned different levels of scientific information to survey respondents. Our results show that having more detailed scientific information has two effects. The direct effect is to reduce willingness to pay for runoff abatement programs. Indirectly, the detailed information increases self-reported claims of understanding the information provided and those who claim to understand the information are more likely to be willing to pay for abatement measures. Key Words: stormwater management, stream water quality, scientific communication, stated preferences, willingness to pay
    Date: 2017
  12. By: Wouterse, Fleur Stephanie
    Abstract: Located at the heart of West Africa, Niger is a landlocked country with three-quarters of its territory covered by the Sahara Desert. Niger’s climate is mostly arid, and it is one of the least developed countries in the world. The vast majority of its population lives in rural areas, and the country is strongly dependent on agriculture. Agriculture is predominantly rainfed and yields rely on one rainy season. Although productivity in Niger has shown a positive trend, agriculture has been strongly affected in recent decades by several crises partly or entirely due to extreme weather events. Farmers pursue a number of strategies in the face of climatic (and nonclimatic) stressors including soil and water conservation methods such as barriers, terracing, and planting pits, and their adaptive capacity is deemed critical for estimating the economic impact of climate change. An understanding of climate change adaptation processes at the farm household level is therefore crucial to the development of well-designed and targeted mitigation policies. In this study, we use new data from Niger and regression analysis to study climate change adaptation through the digging of zaї pits and food production and the role of human capital measures therein. We find that adaptation is influenced by the perception that the frequency of droughts has increased and by the availability of financial resources and household labor. Adaptation is also influenced by educational attainment—both formal and Koranic school education. Adaptation of zaї pits is found to play an important role in food productivity. Our counterfactual analysis reveals that even though all households would benefit from adaptation, the effect is found to be significantly larger for households that actually did adapt relative to those that did not, indicating that the prospects of closing the productivity gap through encouraging adaptation in less well-endowed households are limited.
    Keywords: smallholders, empowerment, regression analysis, land management, soil water conservation methods,
    Date: 2017
  13. By: Fanzo, Jessica; McLaren, Rebecca; Davis, Claire; Choufani, Jowel
    Abstract: The paper uses a food systems approach to analyze the bidirectional relationships between climate change and food and nutrition along the entire food value chain. It then identifies adaptation and mitigation interventions for each step of the food value chain to move toward a more climate-smart, nutrition-sensitive food system. The study focuses on poor rural farmers, a population especially vulnerable to the adverse effects of climate change on nutrition, although we recognize that there are other vulnerable populations, including urban poor and rural populations working outside of agriculture. Although this report does not explicitly exclude overweight and obesity, it focuses primarily on undernutrition because this nutritional status is currently more prevalent than overnutrition among our target population.
    Keywords: nutrition, climate change, food security, diets, food systems, adaptation, mitigation, food value chain,
    Date: 2017
  14. By: Boscow Okumu; Edwin Muchapondwa
    Abstract: Participation of local communities in management and utilization of forest resources through collective action has become widely accepted as a possible solution to failure of centralized top down approaches to forest conservation. Developing countries have thus resorted to devolution of forest management through initiatives such as Participatory Forest Management (PFM) and Joint Forest Management (JFM). In Kenya, under such initiatives, communities have been able to self-organize into community forest associations (CFAs). However, despite these efforts and increased number of CFAs, the results in terms of ecological outcomes have been mixed with some CFAs failing and others thriving. Little is known about the factors influencing success of these initiatives. Using household level data from 518 households and community level data from 22 CFAs from the Mau forest conservancy, the study employed logistic regression, OLS and Heteroscedasticity based instrumental variable techniques to analyze factors influencing household participation levels in CFA activities and further identified the determinants of successful collective management of forest resources as well as the link between participation level and success of collective action. The results show that success of collective action is associated with level of household participation in CFA activities, distance to the forest resource, institutional quality, group size, salience of the resource and education level of the CFA chairperson among others. We also found that collective action is more successful when CFAs are formed through users’ self-motivation with frequent interaction with government institutions and when the forest cover is low. Factors influencing household level of participation are also identified. The study findings points to the need for: a robust diagnostic approach in devolution of forest management to local communities considering diverse socio-economic and ecological settings; government intervention in revival and re-institutionalizing existing and infant CFAs in an effort to promote PFM within the Mau forest and other parts of the country; and intense effort towards design of a mix of incentive schemes to encourage active and equal household participation in CFA activities.
    Keywords: PFM, Collective action, Participation, CFAs
    JEL: D02 Q23 Q28
    Date: 2017–08
  15. By: Sugiawan, Yogi; Islam, Moinul; Managi, Shunsuke
    Abstract: This study explores the state of global marine fisheries and empirically analyzes its relationship to economic factors. We apply the pooled mean group estimator method to examine 70 fishing countries for the period of 1961-2010. We use both catch and the estimated size of stock as proxies for marine ecosystems. Our results confirm that economic growth initially leads to the deterioration of marine ecosystems. However, for a per capita income level of approximately 3,827 USD for the catch model and of 6,066 USD for the biomass model, we found beneficial impacts of economic growth on the sustainability of marine fisheries. Over the next two decades, we expect to see a decline in catch and indications of stock recovery.
    Keywords: environmental Kuznets curve; global marine fisheries; pooled mean group
    JEL: O44 Q22 Q56
    Date: 2017–08
  16. By: Jake Barnes (SPRU – Science Policy Research Unit, University of Sussex, Falmer, Brighton, BN1 9SL, UK, Department of Geography, University of Exeter, Rennes Drive, Exeter, EX4 4RJ)
    Abstract: This article draws on three theoretical fields, innovation intermediaries, socio-technical transitions and domestication studies to develop a process perspective of how user-side intermediary organisations seek to locally embed low carbon technologies. The term local embedding is increasingly used by transition researchers in a variety of ways. The first contribution of this paper is to explore and substantiate the concept of local embedding as the process of integrating technologies into local contexts of use. Intermediary organisations are conceived as contributing to local embedding where they facilitate, configure and broker change towards configurations that work. Nonetheless, understanding how these key intermediary processes relate as well as the influence of system dynamics on the work intermediaries undertake is still largely uncharted territory. The paper’s second contribution is a process perspective on the agency of intermediary organisations in local embedding. The resulting perspective offers insights into the agency of user-side intermediaries and later phases of transition processes.
    Keywords: Intermediary organisations, local embedding, socio-technical transitions, domestication
    Date: 2017–08
  17. By: Andersen, Dana C. (University of Alberta, Department of Economics)
    Abstract: This paper develops a general equilibrium model with heterogeneous firms to analyze the effect of default risk on production-generated pollution emissions. The model analytically divides the effect of default risk into three distinct effects: the market-size, technology-upgrading, and selection effect. Conceptually, an increase in default risk raises equilibrium borrowing costs, thereby precluding investment in a technology upgrade among a subset of firms (technology-upgrading effect). As a consequence, the economy consists of more numerous (market-size effect) but less productive and more pollution-intensive firms (selection effect). Because the effects are confounding in nature, the effect of default risk on aggregate pollution emissions and emissions intensity is an empirical question. To answer this question, this paper estimates the model’s key parameters using a unique dataset with establishment-level credit scores and a composite measure of pollution emissions for a panel of manufacturing firms in the United States. Using a two-step procedure where default risk is estimated in the first stage, the results indicate that the estimated elasticity of emissions intensity and productivity with respect to default risk is 0.89 and -0.16, respectively. Next, I use the theoretical model to leverage the coefficient estimates to estimate the effect of economy wide default risk on aggregate pollution emissions, demonstrating that default risk increases aggregate emissions and emissions intensity, primarily as a consequence of the technology-upgrading effect. Finally, this paper demonstrates that historical changes in economy-wide default risk can generate economically significant changes in pollution emissions.
    Keywords: Default risk; pollution emissions; firm heterogeneity; general equilibrium
    JEL: D50 L60 Q50
    Date: 2017–08–21
  18. By: Bakari, Sayef; Othmani, Abdelhafidh; Mabrouki, Mohamed
    Abstract: The design of this dissertation consists of shortening the nuance of pollution on Tunisian economic growth, taking into account domestic investment, energy consumption and trade openness. From 1971 to 2015, this impact is tested using the error correction model (ECM). The final consequences of estimating the long-run equilibrium relation show that pollution has a negative effect on economic growth in Tunisia but this facet is insignificant. This means that during this period pollution did not result in a reduction in economic growth, however, this result indicates that after an interval of years indeterminate pollution will negatively affect economic growth, The Tunisian State to demonstrate economic policies and instruments to protect it against the worsening of the future effects of pollution.
    Keywords: Pollution, Economic Growth, ECM, Economic Policy, Tunisia.
    JEL: O4 O44 O47 Q5 Q53
    Date: 2017–08
  19. By: Esteban Rossi-Hansberg (Princeton University); David Nagy (CREI); Klaus Desmet (Southern Methodist University)
    Abstract: Sea-level rise and ensuing permanent coastal inundation will cause spatial shifts in population and economic activity over the next 200 years. Using a highly spatially disaggregated, dynamic model of the world economy that accounts for the dynamics of migration, trade, and innovation, this paper estimates the consequences of probabilistic projections of local sea‐level changes under different emissions scenarios. Under an intermediate greenhouse gas concentration trajectory (Representative Concentration Pathway [RCP] 4.5), permanent flooding is projected to reduce global real GDP by an average of 0.22% in present value terms, with welfare declining by as much as 0.76% as people move to places with less attractive amenities. By the year 2200 a projected 0.79% of world population will be displaced (with a 95% credible interval 0.20%‐1.51%). Losses in many coastal localities are more than an order of magnitude larger, e.g., 10% of 10 x 10 coastal cells lose more than 8% of real GDP in present discounted value terms.
    Date: 2017
  20. By: Júlia Gallego Ziero Uhr; André Luis Squarize Chagas, Daniel de Abreu Pereira Uhr, Renan Porn Peres
    Abstract: This paper presents novel evidence for environmental offenses in Brazil. IBAMA’s strategy to deter violations is based on large operations and on decapitalizing offenders to signal its will to monitor and enforce the law. We want to answer the following questions: Do the sanctions applied by IBAMA, especially sanction charges, deter actual and potential offenders? Are there any spatial or temporal patterns affecting violations? We use data on offenses against flora and applied fines for Brazilian municipalities between 1998-2015. We contribute to the existing research by providing evidence for Brazil and by incorporating spatial controls in a dynamic panel approach to explain infractions against the environment. We develop and apply a Spatial LIML estimator that accounts for the endogeneity of sanction charges to estimate our panel models. Results show that there is a pedagogic deterrent effect associated with applied fine values. Sanction charges are important to discourage new offenses.
    Keywords: Environment; Violations; Deterrence; Pedagogic effect; Brazil.
    JEL: K32 K42 C23
    Date: 2017–08–11
  21. By: Phoebe Koundouri; Nikitas Pittis (University of Piraeus, Greece); Panagiotis Samartzis; Nikolaos Englezos; Andreas Papandreou
    Abstract: The concept of ambiguity with respect to decision making about climate change has recently attracted a lot of research interest. The standard approach for introducing ambiguity into this framework is to assume that the decision maker (DM) exhibits ambiguity aversion, with the latter being represented by axioms on DMs preferences different than Savageâ��s (sure-thing principle). As a result, DM is deprived of the property of probabilistic sophistication, since she is faced with either multiple prior probability functions, or a single but incoherent one (capacity). This paper approaches the issue of ambiguity with respect to climate change from a different perspective. In particular, we assume that ambiguity does exists but it does not affect the formation of DMs prior probability function. Instead, it a�¤ects the formation of her posterior probability function. Specifically, we assume that there are n experts, who supply DM with probabilistic input. Hence, although DM has a well defined prior (formed before any expert information on objective probabilities has arrived), she cannot decide which piece of information should conditionalize upon (defer to). We refer to this type of ambiguity as "deferential ambiguity" and show that it affects both DM and the experts. We also introduce a second type of ambiguity, which is solely born by the experts. This type of ambiguity stems from the experts potential inability to discern DMs preferences. This ambiguity is referred to as "preferential ambiguity" in the paper. The main objective of the paper is to analyze the possible interactions between the two types of ambiguity mentioned above and to assess their impact on the probabilistic properties (in particular, tail risks) of environmental-policy variables.
    Keywords: decision making on climate change, ambiguity, deep uncertainty, Savage�s sure-thing principle, deferential ambiguity, preferential ambiguity, tail risks of environmental-policy variables.
    JEL: D8 D80 D81 D83 D
    Date: 2017–08
  22. By: Marie-Eve Yergeau (GREDI, Université de Sherbrooke et LAMETA, Université de Montpellier)
    Abstract: Dans ce rapport méthodologique et statistique, nous présentons l’Enquête sur les ménages, l’environnement et le tourisme dans les zones protégées (EMETZP), que nous avons réalisée en 2013 au Népal. Cette enquête vise à fournir l’information nécessaire pour mesurer l’impact de l’écotourisme et des restrictions environnementales sur le bien-être local dans les zones protégées du Népal. L’EMETZP est caractérisée par un échantillon aléatoire de 1 563 observations, sélectionnées selon un plan d’échantillonnage probabiliste à deux degrés. L’objectif de ce rapport est de présenter la démarche scientifique, la pertinence des choix méthodologiques effectués, ainsi que la qualité des données recueillies. Les détails méthodologiques sont discutés, suivis des résultats descriptifs obtenus.
    Keywords: Gini covariance, Gini Regression, Gini-PLS Regressions, PLS Regression.
    JEL: C3 C8
    Date: 2017–08
  23. By: Edimilson Costa Lucas; Wesley Mendes Da Silva; Gustavo Silva Araujo
    Abstract: Natural extreme events have been occurring more frequently with growing impacts in well-being, mainly in emerging economies. Therefore, the need for more accurate information for managing such impacts has grown. In response to this issue, financial literature has been focusing on the assessment of economic impacts that arise from extreme weather changes. However, these efforts have imparted little attention to the economic impact analysis at the corporate level. To reduce this gap, this article analyzes the impact of extreme rainfall events on the food industry in an emerging economy that is a prominent player in this sector, Brazil. For this purpose, we use the ARGARCH-GPD hybrid methodology to identify whether extreme rainfalls affect stock prices of food companies. The results indicate that these events have a strong impact on the stock returns: In more than half of the days immediately after extreme rain events that occurred between 2.28.2005 and 12.30.2014, returns were significantly low, causing average daily losses of 1.97%. These results point to the need for more accurate financial management to hedge against weather risk
    Date: 2017–08
  24. By: Regina Helena Rosa Sambuichi; Paulo Asafe Campos Spínola; Luciano Mansor de Mattos; Mário Lúcio de Ávila; Iracema Ferreira de Moura; Ana Paula Moreira da Silva
    Abstract: A Política Nacional de Agroecologia e Produção Orgânica (Pnapo) foi criada em 2012, com o objetivo de integrar, articular e adequar as políticas públicas que contribuem para a produção sustentável de alimentos saudáveis e livres de contaminantes químicos, aliando o desenvolvimento rural com a conservação dos recursos naturais e a valorização do conhecimento dos povos e comunidades tradicionais. Este texto apresenta parte dos resultados de um estudo que está sendo realizado sobre a Pnapo, abrangendo uma análise do seu processo de construção com base nas percepções dos representantes das diversas instituições do governo e da sociedade civil que participam da sua gestão. Para isso, foram realizadas entrevistas semiestruturadas com esses representantes visando levantar o histórico de construção da política. Foi feita também uma análise exploratória qualitativa da concepção da Pnapo, utilizando-se o método de análise de conteúdo, com base nas transcrições das entrevistas. Os resultados obtidos mostraram que as agendas da agroecologia e da produção orgânica foram lentamente construídas dentro do governo por força das pressões da sociedade civil organizada. Outro fator importante para a construção dessas agendas foi o fortalecimento dos espaços de discussão, participação e articulação proporcionados pelos conselhos e comissões de participação social. Com relação à concepção da Pnapo, observou-se que os espaços de diálogo proporcionados pela Comissão Nacional de Agroecologia e Produção Orgânica (Cnapo), formada por representantes do governo e de entidades da sociedade civil, e a Câmara Interministerial de Agroecologia e Produção Orgânica (Ciapo), composta por representantes dos ministérios que atuam na política, propiciaram a construção participativa entre governo e sociedade e estimularam uma abordagem interministerial dentro do âmbito governamental. Os principais desafios são o aprimoramento da gestão intersetorial e a ampliação da prioridade da Pnapo dentro do próprio governo. Conclui-se que a continuidade da política dependerá muito do reconhecimento da sociedade por sua importância, demandando do governo a sua manutenção e ampliação dos espaços conquistados. The National Policy for Agroecology and Organic Production (Pnapo) was created in 2012 to integrate, articulate and adjust the existing public policies concerning sustainable production of chemical-contaminant-free products. The referred policy combines rural development, conservation of natural resources and valorization of traditional communities’ knowledge. This article presents part of the results of an ongoing study about Pnapo. It analyses the constructive process of the program according to representatives of social and governmental institutions that manage this policy. In order to collect the historical background of Pnapo, main participants of the policy building were interviewed. The results of this research show that agroecology and organic production programs were slowly structured inside the government through pressure of organized groups in society. Another relevant factor to this development was the growth in social involvement in councils and commissions. Regarding Pnapo’s conception, it was observed that dialogue spaces provided by the National Commission for Agroecology and Organic Production (Cnapo) (composed by representatives from the government and from civil society) and the Interministerial Chamber of Agroecology and Organic Production (Ciapo) (composed by representatives from the ministries that participates in the policy), have provided participative construction between government and society and stimulated an interministerial approach inside government. The main challenges are to improve the intersectional management of the program and to enforce the importance of Pnapo inside the government. It is concluded that the continuance of this policy will depend heavily on the society’s acknowledgement of its importance, demanding from the government its maintenance and the enlargement of already acquired spaces.
    Date: 2017–05
  25. By: Das, Mousumi; Sharma, Ajay; Babu, Suresh Chandra
    Abstract: Food security and nutrition policy interventions generally rely on selective measures. Yet recent literature emphasizes the importance of identifying different pathways from agriculture to nutrition for better nutritional outcomes. Using a disaggregated dashboard approach with agriculture, food consumption, and demographic and health survey data, this study examines the progress of Indian states toward the Sustainable Development Goals. There is evidence of both disconnects and linkages among food security indicators along the agriculture-nutrition pathways. Through a broadened and comprehensive approach under one coordinating body with a good set of improved interventions and governance, Indian states can attain food and nutrition security by 2030. Such evidence based policy making is need of the hour to observe impact on the ground, rather than framing policies based on ideologies. At a time when the focus is more and more on impact, the shift to why we do research and what it contributes to solving the problem is increasingly important.
    Keywords: agricultural development, commercial farming, agroindustrial sector, poverty, indicators,
    Date: 2017

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