nep-env New Economics Papers
on Environmental Economics
Issue of 2017‒09‒03
35 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Assessing Impacts of Land Use and Climate Change on Soil and Water Resources in the Srepok Watershed, Central Highland of Vietnam By Nguyen Thi Huyen; Le Hoang Tu; Nguyen Duy Liem; Vo Ngoc Quyn Tram; Duong Ngoc Minh; Nguyen Kim Loi
  2. Internalizing the environmental costs of production – policy instruments and priorities By Laura Altinger and Daniel Jeongdae Lee from the Macroeconomic Policy and Financing for Development Division.
  3. Impact of Climate Change on Aquaculture in Phu Vang District, Thua Thien Hue Province, Vietnam By Mac Nhu Binh; Le Van An; Nguyen Thi Thanh Thuy; Ngo Thi huong Giang; Ho Thi Thu Hoai; Truong Van Dan
  4. Substituting Freshwater: Can Ocean Desalination and Water Recycling Capacities Substitute for Groundwater Depletion in California? By Pierre Badiuzzaman; Eoin McLaughlin; Darren McCauley
  5. Smooth transition and graduation of least developed countries: coping with natural disasters and climate change By Alberto Isgut, Ran Kim and Yusuke Tateno from the Macroeconomic Policy and Financing for Development Division.
  6. Decoupling economic growth from CO2 emissions in the world By Rim Berahab
  7. Detecting unsustainable pressures exerted on biodiversity by a company. Application to the food portfolio of a retailer By Anastasia Wolff; Natacha Gondran; Christian Brodhag
  8. Balancing Development and the Environment in a Changing World: Expressways, GDP, and Pollution in China By Guojun He; Yang Xie; Bing Zhang
  9. Compliance, Efficiency and Instrument Choice: Evidence from air pollution control in China By Thomas Stoerk
  10. Supporting National Commitment in Reducing GHG Emissions: A Painful Journey for Indonesian Local Government? By Sulistiadi Dono Iskandar; Andhika Putra Pratama
  11. Asset prices and climate policy By Karp, Larry; Rezai, Armon
  12. Trade Integration and the Polarisation of Eco-Labelling Strategies By Vera Danilina
  13. International Environmental Agreement and the Timing of Domestic Lobbying By Etienne Farvaque; Norimichi Matsueda
  14. Making Carbon Pricing Work By Klenert, David; Mattauch, Linus; Combet, Emmanuel; Edenhofer, Ottmar; Hepburn, Cameron; Rafaty, Ryan; Stern, Nicholas
  15. Environmental Tax Reform and Income Distribution with Imperfect Heterogeneous Labor Markets By Diane Aubert; Mireille Chiroleu-Assouline
  16. Sustainability development: Biofuels in agriculture By Cheteni, Priviledge
  17. Carbon taxes and climate commitment with non-constant time preference By Iverson , Terrence; Karp, Larry
  18. Disaster, Mitigation and Household Welfare in Indonesia By Teguh Dartanto
  19. Foreign aid, green cities and buildings. By Sandrine Kablan
  20. Découplage entre croissance économique et émissions de dioxyde de carbone dans le monde By Rim Berahab
  21. Estimating Publicly-Mobilised Private Finance for Climate Action: A South African Case Study By Lauren McNicoll; Raphaël Jachnik; Gaylor Montmasson-Clair; Shakespear Mudombi
  22. Environmental and Financial Performance. Is there a win-win or a win-loss situation? Evidence from the Greek manufacturing By Kounetas, Kostas; Alexopoulos, Elias; Tzelepis, Dimitris
  23. Profitable and desirable corporate environmentalism in a delegation contract under incentive subsidy on abatement technologies By Lee, Sang-Ho; Park, Chul-Hi
  24. Identificación de instrumentos económicos, financieros, regulatorios y fiscales implementados por el Gobierno del Perú para un enfoque integrado del cambio climático By Galarza Contreras, Elsa; Ruíz Pérez, José Luis
  25. Survey sponsor effects on the willingness to pay for mortality risk reductions By Marcelo Lima
  26. Fostering Renewables and Recycling a Carbon Tax: Joint Aggregate and Intergenerational Redistributive Effects By Frédéric Gonand
  27. The Sustainable Development Goals, Domestic Resource Mobilization and the Poor By Nora Lustig
  28. Financing energy connectivity By Kohji Iwakami and Sean Ratka from the Energy Division.
  29. Toward a Climate Adaptation and Mitigation Umbrella Program in Southeast Asia: A Proposed Framework for Collaboration By Juan M. Pulhin
  30. Fish Aggregating Devices and the Role of Socio-economic Factors in Driving Spatial Effort Allocation of Fishers By Edison Roi Macusi
  31. Product Quality and Sustainability: The Effect of International Environmental Agreements on Bilateral Trade By Stefan Borsky; Andrea Leiter; Michael Pfaffermayr
  32. Coping with natural disasters in the Pacific By Sanjesh Naidu from the ESCAP Subregional Office for the Pacific.
  33. Developing renewable energy in Pacific small island developing States By Heather Taylor from the Macroeconomic Policy and Financing for Development Division.
  34. Agricultural Insurance in Southeast Asia: Status and Directions By Jose M. Yorobe, Jr.; Pilipinas M. Luis; Bessie M. Burgos
  35. Introductory analysis of sustainable consumption and production: Factors of corporate social responsibility management in Japan By Michiyuki Yagi; Katsuhiko Kokubu

  1. By: Nguyen Thi Huyen; Le Hoang Tu; Nguyen Duy Liem; Vo Ngoc Quyn Tram; Duong Ngoc Minh; Nguyen Kim Loi
    Abstract: The Srepok River basin, which flows along four provinces in Vietnam and parts of Cambodia, is presently facing critical issues such as floods and droughts, pollution of waterways, deforestation of catchments, erosion and resultant sedimentation of reservoirs, overexploitation of groundwater, water-use conflicts, and transborder issues. This study aims to investigate changes in streamflow and sediment yield that result from land use changes, and climatic variation in the Srepok watershed. Plausible scenarios of land use change are simulated through Geographic Information System (GIS) using current conditions and information from the area as bases, and climate change scenarios built on outputs of General Circulation Models (GCMs) from the Southeast Asia System for Analysis, Research and Training (SEA-START 2009). These changes, individually or in combination, are input into the soil and water assessment tool (SWAT) to project future hydrological variables. Simulations have shown increase in annual average temperature at 0.75–2.5 degrees celsius and decrease in precipitation at 200–500 milimeters. These are both in medium- and high-emission scenarios for the period 2011–2039 and 2040–2069. Annual streamflow in medium- and high-emission scenarios appeared to be 3.7–5.6 times lower than the base scenario in 1990–2010. All scenarios are different in terms of amount and distribution of streamflow in the dry and rainy seasons. Shifts in rainy season, rainfall, and land cover have led to fluctuations in the amount of sediments. Total sediment yield in 1990–2010 is 9.1 times higher than in the medium-emission scenario, and 8.1 times higher in the high-emission scenario. For water components, the Srepok watershed showed over 60 percent streamflow and 36 percent evapotranspiration. Groundwater contributes over 60 percent to the total flow in the watershed than surface water. Therefore, groundwater also contributes to water availability in the Srepok watershed in the future. Results of this research can serve as baseline for plans for the Srepok watershed.
    Keywords: climate change, land use, Vietnam
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:sag:seadps:2017:342&r=env
  2. By: Laura Altinger and Daniel Jeongdae Lee from the Macroeconomic Policy and Financing for Development Division. (United Nations Economic and Social Commission for Asia and the Pacific)
    Abstract: Although not captured in the GDP measure, environmental degradation, carbon emissions and air pollution reduce social welfare and undermine the sustainability of economies.
    URL: http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb53&r=env
  3. By: Mac Nhu Binh; Le Van An; Nguyen Thi Thanh Thuy; Ngo Thi huong Giang; Ho Thi Thu Hoai; Truong Van Dan
    Abstract: Climate change is a major global concern that greatly affects people, including their source of living. In 2010, the Asian Development Bank reported that Vietnam is one of the five countries most severely affected by climate change. About 70 percent of the country's total population lives along coastal areas and in islands. This study aimed to (1) evaluate the impacts of climate change on aquaculture in Phu Vang district (Thua Thien Hue province, Vietnam), and (2) develop a climate change adaptation model for aquaculture. Data on impact of climate change to aquaculture production were gathered through participatory rural appraisal tools, while spatial changes in water quality were determined through Geographic Information System (GIS). Experimental polyculture models were set up in the five study-site communes to determine the aquaculture practices that could be disseminated to small farmers. It was found out that Phu Vang had suffered heavy losses from climate change brought about by a combination of droughts and prolonged heat waves, and cold weather that lasted longer. Floods and typhoons have likewise occurred with stronger intensities, and tide amplitude has changed drastically. All these affected agricultural activities, especially aquaculture, which is considered as one of the most vulnerable sectors to climate change impacts. As a result, many households shifted from intensive to extensive culture, and some even left their ponds for other jobs. The limited understanding and capacity of people on climate change aggravated the situation, affecting their ability to respond and mitigate negative impacts. Water quality, specifically for aquaculture, was also affected as a result of rising temperature, prolonged droughts, rainfall, flooding, and salinization, which in turn reduced productivity and yield. Meanwhile, polyculture models of aquaculture implemented for this study brought high economic returns, and could be promising to replicate in various communes of Phu Vang district. The following are the primary recommendations to mitigate climate change impact in aquaculture and to facilitate sustainable livelihood for coastal people: capacitate communities and government in climate change adaptation and mitigation; expand promising aquaculture practices, area, infrastructure, and marketing of produce; and implement policies to mitigate damages of climate change to aquaculture and the community as a whole.
    Keywords: climate change, aquaculture, Vietnam
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:sag:seadps:2017:366&r=env
  4. By: Pierre Badiuzzaman (School of Geography and Sustainable Development, University of St. Andrews); Eoin McLaughlin (School of Geography and Sustainable Development, University of St. Andrews); Darren McCauley (School of Geography and Sustainable Development, University of St. Andrews)
    Abstract: While the sustainability of resource depletion is a longstanding environmental concern, wider attention has recently been given to growing water scarcity and groundwater depletion. This study seeks to test the substitutability assumption embedded in weak sustainability indicators using a case study of Californian water supply. The volume of groundwater depletion is used as a proxy for unsustainable water consumption, and defined by synthesising existing research estimates into low, medium and high depletion baselines. These are compared against projected supply increases from ocean desalination and water recycling by 2035, to determine whether new, drought-proof water sources can substitute for currently unsustainable groundwater consumption. Results show that maximum projected supply of new water, 2.47 million acre feet per year (MAF/yr), is sufficient to meet low depletion estimates of 2.02 MAF/yr, but fails to come near the high baseline of 3.58 MAF/yr. This does not necessarily indicate physical limitations of substitutability, but more so socio-economic limitations influenced by high comparative costs. By including capacities in demand-substitutability via urban water conservation, maximum pre-dicted capacities reach 5.57 MAF/yr, indicating wide room for substitution. Based on these results, investment in social and institutional capital is an important factor to enhance demand-side substitutability of water and other natural resources, which has been somewhat neglected by the literature on the substitutability of natural resources.
    Keywords: Substitutability; Weak Sustainability; Water; Desalination; Water Recycling; California.
    JEL: Q01 Q25 Q56
    Date: 2017–07
    URL: http://d.repec.org/n?u=RePEc:sss:wpaper:2017-09&r=env
  5. By: Alberto Isgut, Ran Kim and Yusuke Tateno from the Macroeconomic Policy and Financing for Development Division. (United Nations Economic and Social Commission for Asia and the Pacific)
    Abstract: The Asia-Pacific least developed countries (LDCs) have been making remarkable progress towards meeting the criteria for graduation. However, the high level of economic vulnerability to exogenous shocks, particularly those associated with natural disasters and climate change, has repeatedly disrupted the graduation process, leaving doubts on the ability of those countries to sustain their development gains in the long run. This suggests the need for a framework that goes beyond current graduation transition arrangements to build resilience and better reflects environmental and climate-related challenges of LDCs. Enhanced resilience does not only contribute to mitigating the adverse impact of natural disasters and climate change, but it also induces multiplier effects and helps LDCs make their structural transformation and graduation smooth and sustainable.
    URL: http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb43&r=env
  6. By: Rim Berahab
    Abstract: The progressive warming of Earth suggests an important danger for future populations. As stabilizing the level of greenhouse gases (GHGs) in the atmosphere becomes inadequate, there is now talk of reducing this level while preserving sustainable economic growth rates. This Policy Brief deals with the issue of the economy’s carbon intensity through a decoupling indicator, defined as the ratio between the change in carbon dioxide (CO2) emissions and Gross Domestic Product (GDP). It also highlights some remarkable trends emerging from the experience of different countries. Globally, CO2 emissions were stable for the third consecutive year despite strong economic growth, which suggests a decline in the carbon intensity of the economy. However, the study of the decoupling indicator has shown that disparities exist between regions. Africa, and Morocco in particular, shows mixed results insofar as there is a low degree of decoupling -or dissociation- between CO2 emissions and GDP.
    Keywords: Emissions de CO2, gaz à effet de serre , croissance économique, développement, Produit Intérieur Brut, découplage, changement climatique, climat, Courbe Environnementale de Kuznets, charbon, gaz naturel, énergies renouvelables
    Date: 2017–07
    URL: http://d.repec.org/n?u=RePEc:ocp:ppaper:pb-1727&r=env
  7. By: Anastasia Wolff (EVS - Environnement Ville Société - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - Université Jean Moulin - Lyon III - UJM - Université Jean Monnet [Saint-Etienne] - ENTPE - École Nationale des Travaux Publics de l'État - Ecole Nationale Supérieure des Mines de Saint-Etienne - ENSAL - École nationale supérieure d'architecture de Lyon - CNRS - Centre National de la Recherche Scientifique, AgroParisTech, FAYOL-ENSMSE - Département Management responsable et innovation - Ecole Nationale Supérieure des Mines de St Etienne - Institut Henri Fayol); Natacha Gondran (FAYOL-ENSMSE - Département Génie de l’environnement et des organisations - Ecole Nationale Supérieure des Mines de St Etienne - Institut Henri Fayol, EVS - Environnement Ville Société - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - Université Jean Moulin - Lyon III - UJM - Université Jean Monnet [Saint-Etienne] - ENTPE - École Nationale des Travaux Publics de l'État - Ecole Nationale Supérieure des Mines de Saint-Etienne - ENSAL - École nationale supérieure d'architecture de Lyon - CNRS - Centre National de la Recherche Scientifique); Christian Brodhag (FAYOL-ENSMSE - Département Management responsable et innovation - Ecole Nationale Supérieure des Mines de St Etienne - Institut Henri Fayol, EVS - Environnement Ville Société - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - Université Jean Moulin - Lyon III - UJM - Université Jean Monnet [Saint-Etienne] - ENTPE - École Nationale des Travaux Publics de l'État - Ecole Nationale Supérieure des Mines de Saint-Etienne - ENSAL - École nationale supérieure d'architecture de Lyon - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Companies are called by institutional organizations to assess their impacts on biodiversity and to take actions to achieve collectively conservation objectives. This paper presents a method to assess whether the pressures exerted by a business and its value chain on biodiversity are compatible with biodiversity conservation. The absolute environmental sustainability assessment framework is used to compare relevant life cycle assessment midpoint and endpoint indicators to the ecological budgets assigned to the company. This approach is illustrated based on the case study of a mass-market retailer with a focus on the pressures exerted by its food portfolio at the agricultural production step. The results indicate that several pressures driving biodiversity loss are not sustainable. The study also highlights the prominent weight of a few product categories in the ecological burden. These findings have implications for mass-market retailers as well as their food value chains and open research perspectives to make such an approach fully operational.
    Keywords: Life cycle assessment, Biodiversity, Business, Carrying capacity,Sustainability, Corporate social responsibility
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:hal:journl:emse-01575571&r=env
  8. By: Guojun He (Division of Social Sciencee, Division of Environment, and Department of Economics, The Hong Kong University of Science and Technology); Yang Xie (Department of Economic, University of California, Riverside); Bing Zhang (Center for Environmental Management and Policy Analysis, School of Environment, Nanjing University)
    Abstract: When productivity changes, how would an economy rebalance economic production and environmental preservation? We develop a conceptual framework to analyze the question, and predict that a productivity shock can have heterogeneous impacts on environmental quality and income. Exploiting a quasi-experiment provided by the dramatic expansion of China’s national expressway system, we find empirical evidence that is consistent with the model’s predictions: expressway access increases both pollution and GDP in initially poor counties, decreases pollution and GDP in initially rich counties, and decreases pollution while increasing GDP in counties with moderate levels of initial income. These findings cannot be fully explained by alternative theories such as the pollution haven hypothesis and home market effect.
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:hku:wpaper:201743&r=env
  9. By: Thomas Stoerk
    Abstract: This research evaluates China's main air pollution control policy. In 2005, China decided on a 10% SO2 emissions reduction goal as part of the 11th Five-Year Plan (2006-2010). I study the effect of this policy on pollution outcomes, using both the offcial, misreporting-prone indicator and independent NASA SO2 satellite data in a differences-in-differences strategy that exploits variation in target stringency at the province level. I find that results from the offcial and the satellite data differ initially when the Chinese government lacked the ability to effectively monitor SO2 pollution. Ultimately, however, the policy worked and reduced air pollution by 11%. The regulated provincial governments react through rhetorical compliance, measured by a unique dataset of quantified political statements, and by shutting down small, ineffcient thermal units. Rhetorical compliance increases, especially before the government gained the ability to monitor SO2 in 2008. Real compliance sets in through the shutdown of small, ineffcient thermal units. Next, I compute detailed marginal abatement cost curves for SO2 for each province in China, thus illustrating the large heterogeneity in abatement cost across provinces. I use those curves to construct the counterfactual cost-effcient allocation of SO2 reduction targets across provinces. Using this benchmark, I find that the cost-effcient allocation would increase effciency by 49% at the margin, by lowering marginal abatement cost from 658e/tSO2 to 338e/tSO2. This finding is robust to inclusion of a back-of-the-envelope measure for the marginal benefits of abatement. I conclude that a market-based allocation of SO2 reduction targets would have doubled the effciency of China's main air pollution control policy. Contrary to the US experience, I find that a mandate on scrubbers would reap most of those effciency gains.
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp273&r=env
  10. By: Sulistiadi Dono Iskandar (Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta); Andhika Putra Pratama (Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta)
    Abstract: In 2009, Indonesian ex-President, Susilo Bambang Yudhoyono declared Indonesia’s commitment to reduce its Green House Gas (GHG) emission. The commitment later being legalized in Government Regulation No. 61 2011 (PP 61 Tahun 2011) along with the legal establishment of RAN-GRK (National Action Plan for GHG Emission Reduction) and RAD-GRK (Local Action Plan for GHG Emission Reduction) Program. However, following ï¬ ve years after the implementation of both program, the effectiveness itself is still in question especially in the case of local government level. This paper aims to evaluate the effectiveness of GHG emission mitigation activities in provincial level from the budget perspective. On top of that, this paper also attempts to investigate the determinant factors of local government’s effort to reduce GHG emission proxied by the total mitigation expenditure in the particular province. Using Panel data analysis for each province with timespan of 2010–2015, our results suggest that mitigation activities conducted by the local government are signiï¬ cant in reducing the GHG emission. Our result also shows that local government’s ï¬ scal capacity does determine the level of budget dedicated for reducing GHG emission although with a very low coefï¬ cient, suggesting that emission mitigation has not became a priority for the local government in Indonesia
    Keywords: GHG Emission - RAN-GRK - Panel Data - Local Government - Mitigation Expenditure
    JEL: Q54 Q58
    Date: 2017–07
    URL: http://d.repec.org/n?u=RePEc:lpe:wpaper:201710&r=env
  11. By: Karp, Larry; Rezai, Armon
    Abstract: Currently living people might reduce carbon emissions to protect themselves, their wealth, or future generations from climate damage. An overlapping generations climate model with endogenous asset priceand investment levels disentangles these incentives. Asset markets capitalize the future e¤ects of policy, regardless of people’s concern for future generations. These markets can lead self-interested agents to undertake signi…cant abatement. A small climate policy that raises the price of capital increases welfare of old agents and also increases welfare of young agents with a high intertemporal elasticity of sub-stitution. Climate policy can also have subtle distributional e¤ects across the currently living generations.
    Keywords: Social and Behavioral Sciences, Climate externality, overlapping generations, climate pol- icy, generational con‡ict, dynamic bargaining, Markov perfection, ad- justment costs.
    Date: 2017–08–31
    URL: http://d.repec.org/n?u=RePEc:cdl:agrebk:qt6fx579fp&r=env
  12. By: Vera Danilina (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - ECM - Ecole Centrale de Marseille)
    Abstract: Growing ecological concerns give rise to salient discussions of green policy impact within different social sciences domains. This research studies the outcomes of voluntary environmental labelling in autarky and upon trade integration in the presence of two types of heterogeneity, across countries and across producers. It investigates the impact of the two main types of eco-labels - multiple-criteria-based programmes (ISO Type I) and self-declared environmental claims (ISO Type II), both of which are simultaneously introduced due to the environmental concerns of consumers. The model illustrates the polarisation of eco-labels when the least productive firms tend to avoid green strategies, lower-middle productive and the most efficient firms are incentivized to greenwash, and the upper-middle productive firms choose trustful programmes. It also shows that voluntary green restrictions lead to substantial productivity effects in the market upon opening to international trade, conditionally, depending on the type of the labelling and the relative degree of environmental awareness across trading countries. The model predicts average market productivity losses and within segments productivity gains for the relatively more eco-concerned country, while the effects for the relatively less eco-concerned country are the opposite.
    Keywords: eco-labelling,firm heterogeneity,trade integration,voluntary environmental regulation,firms productivity
    Date: 2017–07
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01556484&r=env
  13. By: Etienne Farvaque (Faculty of Economic and Social Sciences, University of Lille 1); Norimichi Matsueda (School of Economics, Kwansei Gakuin University)
    Abstract: We incorporate domestic lobbying activities into a policymaker's decision mak-ing on whether or not to sign a cooperative bilateral environmental agreement and, if not, how much pollution a country emits. There are environmental and industrial lobbyists who attempt to sway the policymaker's decision toward their respectively favored policies. As is usually the case with a common agency model, they present contribution schedules that are tied to resulting policy choices. We focus on the impacts of the timing of lobbying activities. The first type of lobbying occurs on the signing of a cooperative agreement, and the second when each nation chooses its own emission level after the agreement is not signed or one of the signatories reneges on its promise. We compare the outcomes of the four different cases: (i) no lobbying activity; (ii) lobbying conducted at the agreement signing stage; (iii) lob-bying conducted when non-cooperative choice is made; and (iv) lobbying at every occasion. Our results suggest that the timing of lobbying has a critical impact on the signing of a cooperative agreement, and that the lobbying activities can pose a hindrance to the signing of an agreement even when environmental interests are represented by lobby groups in a similarly high proportion as industrial ones.
    Keywords: common agency, compensating equilibrium, environmental agreement, global pollution, lobbying.
    JEL: K23 Q58
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:kgu:wpaper:165&r=env
  14. By: Klenert, David; Mattauch, Linus; Combet, Emmanuel; Edenhofer, Ottmar; Hepburn, Cameron; Rafaty, Ryan; Stern, Nicholas
    Abstract: Carbon-pricing initiatives are spreading at an unprecedented rate, but a considerable gap remains between actual prices and those required to achieve ambitious climate change mitigation. This perspective shows that much of this gap could be closed by enhancing the public’s acceptance of carbon pricing through the effective use of the substantial revenues raised. We synthesize findings regarding the use of carbon revenues both from recent behavioral and political studies as well as from economic analyses of equity and efficiency. We then compare real-world carbon pricing regimes with insights derived from theory. We find that uniform lump-sum recycling of carbon revenues to citizens is favored among behavioral and political studies that emphasize the importance of distributional fairness, revenue salience, political trust, and policy stability amid partisan changes in government. It is also successfully employed in several real-world recycling schemes, although alternative uses of revenues such as green spending may be appropriate in different national contexts.
    Keywords: carbon pricing; carbon tax; revenue recycling; uniform lump-sum transfers; green spending; behavioral economics; political science; inequality; equity
    JEL: D3 D6 D72 H2 H3
    Date: 2017–08–23
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:80943&r=env
  15. By: Diane Aubert (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Mireille Chiroleu-Assouline (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech, PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper investigates the distributional and efficiency consequences of an environmental tax reform, when the revenue from the green tax is recycled by varying labor tax rates. We build a general equilibrium model with imperfect heterogeneous labor markets, pollution consumption externalities, and non-homothetic preferences (Stone-Geary utility). We show that in the case where the reform appears to be regressive, the gains from the double dividend can be made Pareto improving by using a redistributive non-linear income tax if redistribution is initially not too large. Moreover, the increase of progressivity acts on unemployment and can moderate the trade-off between equity and efficiency. We finally provide numerical illustrations for three European countries featuring different labor market behaviors. We show that a double dividend may be obtained without worsening the initial inequalities if the green tax revenues are redistributed with a progressivity index lower for France than for Germany and UK.
    Keywords: Welfare analysis,Tax progressivity,Environmental tax reform,Heterogeneity,Unemployment
    Date: 2017–06
    URL: http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-01550000&r=env
  16. By: Cheteni, Priviledge
    Abstract: Biofuels are socially and politically accepted as a form of sustainable energy in numerous countries. However, cases of environmental degradation and land grabs have highlighted the negative effects to their adoption. Smallholder farmers are vital in the development of a biofuel industry. The study sort to assess the implications in the adoption of biofuel crops by smallholder farmers. A semi-structured questionnaire was administered to 129 smallholder farmers who were sampled from the Eastern Cape Province in South Africa. A binary probit model was used to investigate the determinants of smallholder farmers adopting biofuel crops. The empirical results showed that the variables membership in association, occupation and incentives were statistically significant in influencing farmers’ decision to adopt biofuel crops. Furthermore, it was discovered that the studied areas have a potential to grow biofuel crops.
    Keywords: Agriculture, Biofuels, Binary Model, Sustainable Development, South Africa
    JEL: Q5 Q58
    Date: 2017–01–05
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:80969&r=env
  17. By: Iverson , Terrence; Karp, Larry
    Keywords: Social and Behavioral Sciences
    Date: 2017–08–30
    URL: http://d.repec.org/n?u=RePEc:cdl:agrebk:qt3hw6s14v&r=env
  18. By: Teguh Dartanto (Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta)
    Abstract: Households in the world as well as in Indonesia have become more exposed to a wide variety of vulnerabilities and risks due to the recent increase in the intensity and scope of global natural disasters. This study aims to comprehensively examine the impact of natural disasters on Indonesian’s household welfare (consumption and poverty) using the Indonesian Family Life Survey (IFLS). This study finds that households in rural areas are the most vulnerable to natural disasters; the average asset losses and medical/funeral costs from natural disasters are roughly USD 2,190/household. Our econometric models confirm that earthquakes are the most destructive disaster to affect household welfare, whereas droughts, forest fires, floods, and other disasters appear to have only moderate effects. Disaster-mitigation preparedness plays a significant role in reducing the devastating impacts of disasters and in lessening households’ vulnerability to becoming impoverished.
    Keywords: Natural Disaster — Welfare — Vulnerability
    JEL: Q54 I31 I32
    Date: 2017–06
    URL: http://d.repec.org/n?u=RePEc:lpe:wpaper:201706&r=env
  19. By: Sandrine Kablan (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)
    Abstract: This paper attempts first to assess foreign aid effectiveness in fostering green cities procedures in developing countries. To this purpose, we rely on the following aid effectiveness criteria: national ownership, harmonization, alignment and mutual accountability and results management. Our analysis shows that some programs are effective and scalable. The second attempt of our paper is to try to link in a GMM model, CO2 emissions from residential buildings and commercial and public services to total foreign aid and sector specific aid like energy. Our results show that foreign aid is not significant, when it enters the regression as a level variable. However, it is significant as a quadratic term. Again, when it’s crossed with electricity production from renewable sources, aid reduces CO2 emissions. Our policy recommendation is therefore to foster foreign aid for ecological projects which are known to have strong effect on the reduction of CO2 emissions in developing countries’ cities. This will contribute to the greening of their cities.
    Date: 2017–06–19
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01527662&r=env
  20. By: Rim Berahab
    Abstract: Le réchauffement progressif de la terre laisse présager un danger important pour les populations futures. Stabiliser le niveau de gaz à effet de serre (GES) dans l’atmosphère devient alors insuffisant, il est désormais question de réduire ce niveau, tout en préservant des taux de croissance économique soutenables. Ce Policy Brief traite de la question de l’intensité carbone de l’économie , à travers un indicateur de découplage, défini comme le rapport entre la variation des émissions de dioxyde de carbone (CO2) et du Produit Intérieur Brut (PIB). Il met également en exergue quelques tendances remarquables issues de l’expérience de certains pays. Au niveau mondial, les émissions de CO2 ont été stables pour la troisième année consécutive malgré une croissance économique marquée, ce qui laisse présager une baisse de l’intensité carbone de l’économie. L’étude de l’indicateur de découplage a cependant démontré que des disparités existent entre les régions. L’Afrique, et le Maroc en particulier, présentent des résultats mitigés dans la mesure où on observe un faible degré de découplage –ou dissociation- entre les émissions de CO2 et le PIB.
    Keywords: Emissions de CO2, gaz à effet de serre , croissance économique, développement, Produit Intérieur Brut, découplage, changement climatique, climat, Courbe Environnementale de Kuznets, charbon, gaz naturel, énergies renouvelables
    Date: 2017–07
    URL: http://d.repec.org/n?u=RePEc:ocp:ppaper:pb1727&r=env
  21. By: Lauren McNicoll (OECD); Raphaël Jachnik (OECD); Gaylor Montmasson-Clair (Trade & Industrial Policy Strategies (TIPS)); Shakespear Mudombi (Trade & Industrial Policy Strategies (TIPS))
    Abstract: This study estimates and analyses publicly-mobilised private finance for climate action in South Africa, between 2010 and 2015. The mobilisation effect of public climate finance on private finance is first estimated through an analysis and attribution of project-level co-finance data. A pilot-methodology (the investor perspective) then expands the analysis to also incorporate the mobilisation effect of financial support provided by South African policies in two sectors: renewable energy and energy efficiency. Results suggest that, in the South African context, domestic public actors play the major mobilisation role by providing support through targeted policies, and to a lesser extent by committing project-level co-finance.
    Keywords: climate change, climate finance, databases, estimation, investment, measurement, private finance, public intervention, reporting
    JEL: C81 F30 G3 H23 O16 O19 Q42 Q54
    Date: 2017–09–01
    URL: http://d.repec.org/n?u=RePEc:oec:envaaa:125-en&r=env
  22. By: Kounetas, Kostas; Alexopoulos, Elias; Tzelepis, Dimitris
    Abstract: This study examines the causal linkage between environmental and financial performance in Greek manufacturing firms. Environmental performance is measured according to accounting data following the Eco Management and Auditing Scheme guidelines and ISO certification. Return on assets and return on sales are used as indicators of financial performance. Empirical findings suggest that there seems to be a link between these dimensions irrespectively of the particular sector of activity. Contrary to similar studies a “virtuous circle” does not exist as the avoidance of environmental improving investments is related to a better financial performance. On the other hand firms with superior financial performance seem to achieve a better environmental performance. At the same time firm specific and market characteristics significantly affect this relationship. These findings provide evidence that governmental and corporate actions are necessary in order to lead to a more sustainable corporate performance in the long run
    Keywords: environmental performance; financial performance; causality; GMM; Greece.
    JEL: Q0 Q00 Q56
    Date: 2016–03–01
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:80906&r=env
  23. By: Lee, Sang-Ho; Park, Chul-Hi
    Abstract: This study investigates corporate environmentalism in a managerial delegation contract and shows that a well-designed subsidy scheme can enhance business profitability and thus, an environmental policy could lead to both social and private benefits. This analysis allows us to better understand the Porter’s concept of environmental policy and firm’s profitability.
    Keywords: corporate environmentalism; environmental corporate social responsibility; managerial delegation contract; incentive subsidy scheme; Porter’s hypothesis
    JEL: L13 L21 M14
    Date: 2017–09–01
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:81091&r=env
  24. By: Galarza Contreras, Elsa; Ruíz Pérez, José Luis
    Abstract: Este documento identifica los instrumentos económicos, financieros y fiscales con los que cuenta el gobierno de Perú para incorporar un enfoque de adaptación al cambio climático o que podrían ser utilizados para promover la implementación de iniciativas que contribuyan a la adaptación del cambio climático en el país. Sin embargo, se limita a tres sectores relevantes: gestión del recurso hídrico, agricultura y gestión del riesgo por desastres.
    Keywords: CAMBIO CLIMATICO, ASPECTOS ECONOMICOS, POLITICA AMBIENTAL, POLITICA ECONOMICA, RECURSOS HIDRICOS, AGRICULTURA, DESASTRES NATURALES, GESTION DE LOS RIESGOS, FINANCIACION, CLIMATE CHANGE, ECONOMIC ASPECTS, ENVIRONMENTAL POLICY, ECONOMIC POLICY, WATER RESOURCES, AGRICULTURE, NATURAL DISASTERS, RISK MANAGEMENT, FINANCING
    Date: 2017–06
    URL: http://d.repec.org/n?u=RePEc:ecr:col022:42057&r=env
  25. By: Marcelo Lima
    Abstract: This paper considers whether the answers to stated preference surveys (of the type used to monitise non-market goods) are affected by the survey's sponsoring institution. The sponsor is indicated to respondents by the logo used in the survey instrument, an online questionnaire. Survey repondents are randomly assigned to one of eight types of sponsor and whether stated willingness-to-pay for a product that reduces mortality risk is affected by the sponsor is observed. It is also considered whether sponsorship has an effect on measures of respondent engagement with the survey (survey completion rates, item response rates, time spend on the willingness to pay question and on the survey as a whole). The analysis finds that respondents that believe the survey to be sponsored by an environmental ministry or a health ministry are willing to pay significantly less for the product than those that believe that the survey is sponsored by other types of institution. There are also apparent trade-offs between the different repondent engagement measures considered.
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp272&r=env
  26. By: Frédéric Gonand (Chaire économie du climat - Chaire économie du climat, LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine)
    Abstract: A rising share of renewables in the energy mix push es up the average price of energy - and so does a carbon tax. However the former bolsters the accumulation of capital whereas the latter, if fully recycled, does not. Thus, in general equilibrium, the effects on growth and intertemporal welfare of these two environmental po licies differ. The present article assesses and compares these effects. It relies on a computable general equilibrium model with overlapping generations, an energy module and a pub lic finance module. The main result is that an increasing share of renewables in the energy mix and a fully recycled carbon tax have opposite (though limited) impacts on activity and i ndividuals’ intertemporal welfare in the long run. The recycling of a carbon tax fosters consumption and labour supply, and thus growth and welfare, whereas an increasing share of renewables does not. Results also suggest that a higher share of renewables and a recycled carbon tax trigger intergenerational redistributive effects, with the former being relat ively detrimental for young generations and the latter being pro-youth. The policy implication is that a social planner seeking to modify the structure of the energy mix while achieving some ne utrality as concerns the GDP and triggering some proyouth intergenerational equity, could usefully contemplate the joint implementation of higher quantitative targets for the future development of renewables and a carbon tax fully recycled through lower proportional taxes.
    Keywords: Energy transition,intergenerational redistribution,overlapping generations,carbon tax,general equilibrium
    Date: 2017–05–12
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01521857&r=env
  27. By: Nora Lustig (Department of Economics, Tulane University)
    Abstract: Achieving the Sustainable Development Goals will require fiscal resources to deliver the floors in social protection, social services and infrastructure embedded in them. A significant portion of these resources is expected to come from tax collection in developing countries. Raising additional revenues domestically, however, may leave a significant portion of the poor with less cash to buy food and other essential goods. The demand for additional resources must be balanced against the competing need to protect poor households from becoming poorer as a result of taxes.
    Keywords: Fiscal incidence, social spending, inequality, poverty, Sustainable Development Goals
    JEL: D31 H22 H50 I38 Q01
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:tul:wpaper:1713&r=env
  28. By: Kohji Iwakami and Sean Ratka from the Energy Division. (United Nations Economic and Social Commission for Asia and the Pacific)
    Abstract: This policy brief aims to explore regional energy connectivity and its role in meeting broader energy goals within the framework of the Sustainable Development Agenda. Challenges, particularly relating to financing gaps will be highlighted through existing sub-regional initiatives.
    URL: http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb50&r=env
  29. By: Juan M. Pulhin
    Keywords: climate change, SEARCA Program on Climate Change Adaptation and Mitigation in Southeast Asia (CChAMSEA), Southeast Asia
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:sag:seadps:2016:327&r=env
  30. By: Edison Roi Macusi
    Abstract: Although fish aggregating devices (FADs) efficiently gather fish, save time and fuel, and alleviate food insecurity, their widespread use has become contentious because of the destructive impact on juvenile oceanic tuna. The call to regulate the number of deployed FADs has been continuous to reduce the unintended catching of non-target juvenile species of tuna. Improving the practice of using FADs could also benefit from studying fishers' spatial behavior, FAD distribution, and decision making. This research thus examined how fishers use their FADs and how their characteristics and socio-economic factors influence their decision making and catch productivity. Semi-structured interview was administered to a total of 229 respondents in four study sites—Mati City, Lupon, Governor Generoso, and General Santos City, all in Southern Philippines. On the other hand, focus group discussions (FGDs) clarified information on catch data and on factors essential to understand where fishers fish and where they deploy their FADs. Potential catch data estimates from logbooks of fishers provided information on probability of catch on FADs and influence of monsoon. Results showed that fishers decided where to fish based on weather and sea conditions, socio-economic factors such as price of fuel and fish, information from other fishers and their other activities, and the imposition of sea regulations. On the other hand, decision on where to deploy FADs were influenced by the availability of the area, information on the pathway of fish and sea current, information from other fishers on good locations, and previous catches from a particular area. The study also revealed that while FAD deployment might be a long-term strategy to keep fishing grounds, the high probability that a potential catch exists on FADs (>70%) has increased the deployment of FADs in nearshore areas. Excessive deployment of FADs has resulted to overfishing. To conserve fish resources, a moratorium on the number of boats and FADs should be implemented. Issuance of licences for boats, gears, and FADs should also be controlled and limited.
    Keywords: fishery, fish aggregating device, spatial effort allocation, Philippines
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:sag:seadps:2017:367&r=env
  31. By: Stefan Borsky (University of Graz); Andrea Leiter (University of Innsbruck); Michael Pfaffermayr (University of Innsbruck)
    Abstract: This paper addresses the impact of sustainability in production on international trade. In particular, it examines the effect of the International Tropical Timber Agreement (ITTA) on tropical timber trade. The empirical analysis is based on a gravity equation in a difference-in-difference setting, which is estimated by a panel Heckman's selection model. This accounts for the potentially systematic selection of trading partners into timber trade activity. We then conduct a comprehensive comparative static analysis solving the structural gravity model with and without the ITTA. This allows us to determine the trade impact of an ITTA induced increase in sustainability for participating as well as for third-countries. We find that countries participating in the ITTA exhibit a significant and substantial increase in trade intensity ranging from 4% to 6%. Furthermore, we observe that this effect is more pronounced for smaller member countries. Non-ITTA countries are confronted with reduced tropical timber flows.
    Keywords: Sustainable production standards; Product quality; Gravity equation; Panel sample selection
    JEL: Q27 F18 L15 O19 Q23
    Date: 2017–07
    URL: http://d.repec.org/n?u=RePEc:grz:wpaper:2017-06&r=env
  32. By: Sanjesh Naidu from the ESCAP Subregional Office for the Pacific. (United Nations Economic and Social Commission for Asia and the Pacific)
    Abstract: Pacific island developing countries are generally characterized by small population size and limited land area, remote geographic location and exposure to natural hazards and weather-related extremes, such as cyclones, tsunamis, droughts and floods. Based on historical frequency, the probability of a natural disaster occurring in Pacific island developing countries is estimated to be more than 20 per cent per year, which is higher than that of small States in other regions of the world. Lack of economic diversification and constrained macroeconomic policy space in Pacific island developing countries also limit their ability to absorb the impact of adverse shocks. According to an index that measures a country’s exposure and ability to cope with natural hazards in 171 countries, Papua New Guinea, Solomon Islands, Tonga and Vanuatu rank among the top 15 countries. In this context, climate change is often seen as the most significant threat to the livelihood and well-being of people in the subregion.
    URL: http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb35&r=env
  33. By: Heather Taylor from the Macroeconomic Policy and Financing for Development Division. (United Nations Economic and Social Commission for Asia and the Pacific)
    Abstract: The small island developing States (SIDS) of the Pacific face unique development challenges because of their small size, remoteness from major markets, limited export base and exposure to global environmental challenges. Energy security and diversification of the energy mix have been major drivers for renewable policies and targets in the Pacific islands. This policy brief focuses on the targets for electricity generation from renewables set by Pacific SIDS and discusses the key policy considerations and challenges related to those targets. In particular, it highlights the importance of creating a conducive environment for the development of renewables and emphasizes the need to shift policy discourses from focusing on output to prioritizing access.
    URL: http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb42&r=env
  34. By: Jose M. Yorobe, Jr.; Pilipinas M. Luis; Bessie M. Burgos
    Abstract: With climatic shifts becoming more prominent and extreme climatic events becoming more frequent, Southeast Asia (SEA) is considered one of world’s most vulnerable to climate change because of its heavy reliance on agriculture (ADB 2009). In 2013, around 40 million people in SEA were affected by natural calamities, many of whom are dependent on agriculture. Loss due to floods amounted to USD 10.7 billion in 2010 (ADB 2014). Super Typhoon Haiyan, the powerful tropical cyclone that hit Southeast Asia on 8 November 2013, is the worst ever recorded, with an economic cost amounting to USD 13 billion (International Business Times 2015). Agricultural interests are fundamental in managing food security. Local governments are major stakeholders in agriculture as well as the best contenders to partake in a robust finance-based solution, such as insurance. Of the 11 countries in SEA, only six (Indonesia, Malaysia, Philippines, Singapore, Thailand [pilot stage], and Vietnam [pilot stage]) have agricultural insurance programs (World Bank 2010). Several countries have already adopted index insurance program in the region. Basis risk is one of the serious obstacles to the effectiveness of index insurance. However this can be reduced in two ways (Miranda and Farrin 2012): (1) to offer a wider array of index insurance products tailored to different risk exposures; and (2) by constructing indemnity schedules that correlates maximally with policy holder losses. To achieve both requires sound and accurate information, and data from which the index was based. Weather index-based crop insurance that will incorporate historical weather and crop production data is more costeffective and efficient than traditional agricultural insurance. It will reduce farmlevel monitoring and transaction costs (ADB 2013). The promotion of market-based agricultural insurance is proven to be critical for the emergence of sustainable agricultural insurance program (Mahul and Stutley 2010). The public-private partnership (PPP) can be viewed as an initial step in providing the direction towards the emergence of private led agricultural insurance programs. The role of the government is confined in correcting market and regulatory imperfections for a competitive insurance market to emerge. The SEA countries collaboration in the areas of research and training, institution and capacity building, information sharing and knowledge management, and awareness raising can provide a less costly support service mechanism in the development of a more competitive insurance market. Pooling research funds by governments for insurance purposes will be effective in addressing the information and data needs for a more viable risk and cost assessments. The pan-ASEAN agriculture pool is a collective scheme that can ease the risks associated with agricultural production and food security in the region. The ASEAN Member States (AMS) contribute underwriting capacity based on the relative importance of agriculture trade to their economies (Corona 2013). The AMS which are net consumers of agricultural products will subsidize the insurance premiums of those countries which are net producers, as a result fostering food security and political stability across the region. The main goal of the insurance scheme is to encourage farmers to continue food production despite risks.
    Keywords: agri-insurance, Southeast Asia
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:sag:seadps:2016:328&r=env
  35. By: Michiyuki Yagi (Graduate School of Business Administration, Kobe University); Katsuhiko Kokubu (Graduate School of Humanities and Social Sciences, Okayama University)
    Abstract: As an introductory analysis of sustainable consumption and production, this paper examines what factors influence corporate social responsibility management in Japan. Following some underlying theories (management control system; the neo-institutional theory; performance measurement systems; the stakeholder theory; the resource dependence theory), this paper conducts empirical studies using firm-level data. The first three studies examine what factors encourage corporate social responsibility management, using questionnaire survey dataset for Japanese companies. These studies examine the corporate social responsibility factors from the viewpoints of Simons’ four levers of control, isomorphism in neo-institutional theory, and the role of organizational culture in management control system. The last two studies use archival data, examining how corporate social responsibility performance and related disclosure score are affected by ownership structure and corporate social responsibility directors.
    Keywords: Corporate social responsibility; Japan; levers of control in management control systems; the neo-institutional theory; performance measurement systems; the stakeholder theory; the resource dependence theory
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:kbb:dpaper:2017-19&r=env

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