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on Environmental Economics |
| By: | Simon Dietz, Frank Venmans |
| Abstract: | We exploit recent advances in climate science to derive a surprisingly simple model of efficient climate policy. The model yields closed-form solutions for optimal peak warming, optimal emissions along the transition to peak warming and optimal carbon prices, with and without a temperature constraint that is consistent with the UN Paris Agreement. We draw five conclusions. First, optimal peak warming has an elasticity of one or more with respect to several parameters that are highly uncertain. This implies optimal peak warming is itself highly uncertain. Second, even if optimal peak warming is high, optimal transient warming over the coming centuries is not. The transition is slow, because of the stock-flow nature of CO2-induced warming. Third, the optimal carbon price grows faster than output this century and the possibly unexpected reason for this is the saturation of carbon sinks, a well-known physical property of the climate system hitherto absent from economic models. Fourth, the optimal carbon price under a binding temperature constraint comprises the social cost of carbon, plus a Hotelling premium. If we take account of damages, then we should abate emissions more quickly than if we simply meet the temperature constraint at the lowest abatement cost. Fifth, when the objective is to minimise abatement costs alone, the optimal carbon price follows the simple Hotelling rule, not various kinds of augmented Hotelling rule, as in previous work. Again this comes from taking into account the effects of saturating carbon sinks, as well as not over-estimating thermal inertia in the climate system. |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp283&r=env |
| By: | Shahbaz, Muhammad; Shahzad, Syed Jawad Hussain; Kumar, Mantu |
| Abstract: | Using annual data 1970-2014, this paper examines the effects of globalization on CO2 emissions in Japan while accounting for economic growth and energy consumption as potential determinants of carbon emissions. The structural breaks and asymmetries arising due to policy shifts require attention and hence an asymmetric threshold version of the ARDL model is utilized. The results show the presence of threshold asymmetric cointegration between the variables. The threshold-based positive and negative shocks arising in globalization increase carbon emissions, while the impact of the latter is more profound. Energy consumption (economic growth) also has a significant positive effect on carbon emissions. Globalization, economic growth and energy consumption significantly increase carbon emissions in the short run. We suggest that policy makers in Japan should consider globalization and energy consumption as policy tools while formulating their policies towards protecting sustainable environmental quality in the long run. Otherwise, the Japanese economy may continue to face environmental consequences such as undesirable climate change and massive warming at the micro and macro levels as a result of potential shocks arising from globalization and energy consumption. |
| Keywords: | Carbon emissions, energy consumption, globalization, threshold NARDL |
| JEL: | A1 |
| Date: | 2017–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82413&r=env |
| By: | Giulio Cainelli (University of Padova & SEEDS); Alessio D’Amato (University of Tor Vergata Rome & SEEDS); Massimiliano Mazzanti (University of Ferrara, IEFE Bocconi Milan & SEEDS) |
| Abstract: | Innovation adoption and diffusion by firms are key pillars for the EU strategy on resource-efficiency and the development of a circular economy. This paper presents new EU evidence regarding the role of environmental policy and green demand drivers to sustain the adoption of resource efficiency-oriented eco-innovations. This paper originally implements new estimators to address the endogeneity of binary framed policy and demand covariates, which typically characterise firm level survey data. Our results suggest that when endogeneity is accounted for, environmental policy is the only factor always significant in driving the adoption of innovations that reduce the use of waste and material, while demand-side and market-factors do not always play a central role. The result is an important piece of new quantitative-based knowledge, which complements the currently large case study-based evidence on the setting of sound management and policy strategies for the circular economy. |
| Keywords: | Eco innovation; circular economy; innovation drivers; EU; environmental regulation; market demand |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2017-24&r=env |
| By: | Neophyta Empora; Theofanis P. Mamuneas; Thanasis Stengos |
| Abstract: | This study models the relationship between emissions, output and pollution abatement, by defining an emission function in a manner that is consistent with the residual generation mechanism and firms’ optimizing behavior. The relationship is estimated by applying semiparametric estimation and threshold regression on U.S. state-level data from 1973-1994. The results provide a positive nonlinear relationship between emissions and output, rejecting an inverted-U type of relationship between the two (EKC). In the absence of abatement the relationship turns around, verifying the arguments in the literature, that abatement is one of the driving forces for an EKC to emerge. |
| Keywords: | Environmental Kuznets Curve; emissions; pollution abatement; residual generation mechanism; semiparametric estimation; threshold regression |
| JEL: | Q50 Q52 Q53 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:ucy:cypeua:05-2017&r=env |
| By: | Antoine Dechezlepretre, Ralf Martin, Myra Mohnen |
| Abstract: | Government policy in support of innovation often varies across technology areas. An important example are climate change policies that typically try to support so called clean technologies that avoid greenhouse gas pollution and hamper dirty technologies that are associated with polluting emissions. This paper explores the economic consequences of such policy moves in the short run. At the margin private returns of R&D investments in different areas should be equalised. Hence, shifting the composition of R&D activities by a policy intervention will only have a meaningful impact on economic outcomes if the external returns differ. Hence, we compare innovation spillovers between clean, dirty and other emerging technologies using patent citation data. We develop new methodology including the usage of Page rank measures developed by Google to rank web content. Exploring a wide range of robustness checks we consistently find up to 40% higher levels of spillovers from clean technologies. We also use firm-level financial data to investigate the impact of knowledge spillovers on firms’ market value and find that marginal economic value of spillovers from clean technologies is also greater. |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp135&r=env |
| By: | Omri, Anis |
| Abstract: | The relationship between entrepreneurship, output and environmental quality receives considerable attention from academics and policymakers, as society searches for solutions leading to environmental sustainability. Given this context, the current study contributes to this discussion by explaining how entrepreneurship and different sectoral outputs can help resolve the environmental problems of global socio-economic systems. So, we used data for 69 countries split across four homogeneous income-based panels: high-income, upper-middle-income, lower-middle-income, and low-income economies. Long-run elasticities suggest that (i) the rate of environmental damage due to the growth of sectoral outputs is much higher in the high-income sample; (ii) compared to output from other sectors, services makes the highest contribution to environmental degradation in high-income countries but its contribution in the other country samples is negative; indicating that a move to services economy would be beneficial for these countries; (iii) with the exception of the high-income sample, there is an inverted U-shaped relationship between output growth and environmental degradation across country samples and sectors; (iv) the contribution of entrepreneurial activity to environmental degradation is lower in high-income countries compared to other country samples; and (v) entrepreneurship activity in high-income countries initially degrades the environment but then improves environmental quality after a certain level, that is, an inverted U-shaped relationship between entrepreneurship and environmental pollution. The findings are sensitive to different income groups and sectoral analyzes. In particular, these empirical findings aid sound economic policymaking for improving environmental quality and sustainable economic development. |
| Keywords: | Entrepreneurship; Sectoral outputs; Environment; Economic stages of development. |
| JEL: | D2 O4 Q5 |
| Date: | 2017–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82440&r=env |
| By: | Alban Kitous (European Commission – JRC); Kimon Keramidas (European Commission – JRC); Toon Vandyck (European Commission – JRC); Bert Saveyn (European Commission – JRC); Rita Van Dingenen (European Commission – JRC); Joe Spadaro (Basque Centre for Climate Change (BC3), Bilbao, Spain); Mike Holland (Ecometrics Research and Consulting (EMRC), Reading, U.K.) |
| Abstract: | This study shows that achieving the climate change mitigation target of staying below 2°C temperature rise is possible technically – thanks to an acceleration of decarbonisation trends, an increased electrification of final demand and large changes in the primary energy mix that include a phase out of coal and a reduction of oil and gas – and is consistent with economic growth. It yields co-benefits via improved air quality – including avoided deaths, reduction of respiratory diseases and agricultural productivity improvement – that largely offset the cost of climate change mitigation. These co-benefits arise without extra investment costs and are additional to the benefits of avoiding global warming and its impact on the economy. |
| Keywords: | climate, mitigation, GHG emissions, energy, energy demand, energy supply, power generation, energy investment, modelling, POLES, GEM-E3, TM5-FASST, air pollution, air quality, mitigation cost, macroeconomic impacts, health impacts |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc107944&r=env |
| By: | Mariana Conte Grand |
| Abstract: | This study shows that neither decoupling CO2 emissions from production, consumption and GDP, nor reducing emission intensity is good per se. Instead of analyzing decoupling cases, it proposes two orderings: one that balances economy and carbon emissions and, if there is conflict, prioritizes GDP increase, and another that gives priority to the environment. Each country has its own “rank”. The result is that even if the two orderings differ, there are no substantial differences between the decoupling ranking of countries based on production and consumption emissions, and between the ordering that gives priority to the economy over the environment. |
| Keywords: | decoupling; CO2 emissions; decoupling indicators; consumption emissions; territorial emissions. |
| JEL: | Q54 Q56 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:cem:doctra:622&r=env |
| By: | Lola Vallejo |
| Abstract: | Adaptation monitoring and evaluation (M&E) is an important step of the process of adapting to climate change, by enabling Parties to learn from climate risks and the effectiveness of adaptation measures, and increase accountability. While relatively few countries have designed and implemented a national M&E system for adaptation, a number of countries have indicated in their Nationally Determined Contributions (NDC) that they are developing one or plan to do so. National systems for M&E of adaptation are tailored to domestic circumstances, priorities and capacities. Several bilateral and multilateral support channels aim to address information gaps and capacity and resource constraints, which can be limiting factors to building national M&E systems for adaptation. The processes and results of such systems may help provide relevant information to assess progress towards the global goal on adaptation under the UNFCCC. |
| Keywords: | adaptation, climate, national monitoring and evaluation, UNFCCC |
| JEL: | F53 H43 O22 Q54 Q56 Q58 |
| Date: | 2017–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaab:2017/03-en&r=env |
| By: | Cafora, Alfonso; Romano, Antonio Angelo; Ronghi, Monica; Giuseppe, Scandurra |
| Abstract: | The Green Climate Fund (GCF) is a fund within the framework of the UNFCCC founded as a mechanism to assist developing countries in adaptation and mitigation practices to counter climate change. In this paper, we analyze the flow of funds among countries and investigate, through a counterfactual analysis, their effectiveness. The results show that as result of the receipt of the funds, countries reduced their GHG emission and have been incentivized in the replacement of fossil sources with renewable sources. Finally, also a leverage effect of the funds for economic development of the recipient countries comes into the light. |
| Keywords: | Renewable and non-renewable energy sources; counterfactual analysis; economic growth; climate finance |
| JEL: | C21 C54 O44 O47 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82373&r=env |
| By: | Horbach, Jens; Rammer, Christian |
| Abstract: | The success of an energy turnaround towards renewables highly depends on the willingness and ability of firms to adopt energy technologies using renewable sources. Existing studies focused on the role of regulation and energy markets (e.g. the price for fossil energy) to explain the diffusion of green energy technologies. The present paper tries to give a more comprehensive view on the determinants of renewable energy innovations focusing on the crucial role of firms' regional environment (role of regional spillover effects, the greenness of a region and the regional endowment with green energy plants). We use a unique database combining the Community Innovation Survey 2014 for Germany and NUTS 3 data on renewable energy plants, the greenness of a region and other economic control variables. We find that geographical proximity to electricity production based on renewable energy sources and the orientation of a region towards 'green issues' (measured by the share of green party voters) are both major drivers for such innovations. Furthermore, our results show that in addition to regulation, government subsidies for eco-innovation, high energy costs and regional knowledge spillovers contribute to a rapid adoption of renewable energy. The reinforcing nature of this process leads to a diverging regional development of renewable energy innovations. |
| Keywords: | Eco-Innovation,Renewable Energy,Community Innovation Survey |
| JEL: | C25 O31 Q20 R11 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:17044&r=env |
| By: | OMRI, ANIS |
| Abstract: | The relationship between entrepreneurship, output and environmental quality receives considerable attention from academics and policymakers, as society searches for solutions leading to environmental sustainability. Given this context, the current study contributes to this discussion by explaining how entrepreneurship and different sectoral outputs can help resolve the environmental problems of global socio-economic systems. So, we used data for 69 countries split across four homogeneous income-based panels: high-income, upper-middle-income, lower-middle-income, and low-income economies. Long-run elasticities suggest that (i) the rate of environmental damage due to the growth of sectoral outputs is much higher in the high-income sample; (ii) compared to output from other sectors, services makes the highest contribution to environmental degradation in high-income countries but its contribution in the other country samples is negative; indicating that a move to services economy would be beneficial for these countries; (iii) with the exception of the high-income sample, there is an inverted U-shaped relationship between output growth and environmental degradation across country samples and sectors; (iv) the contribution of entrepreneurial activity to environmental degradation is lower in high-income countries compared to other country samples; and (v) entrepreneurship activity in high-income countries initially degrades the environment but then improves environmental quality after a certain level, that is, an inverted U-shaped relationship between entrepreneurship and environmental pollution. The findings are sensitive to different income groups and sectoral analyzes. In particular, these empirical findings aid sound economic policymaking for improving environmental quality and sustainable economic development. |
| Keywords: | Entrepreneurship; Sectoral outputs; Environment; Economic stages of development. |
| JEL: | C5 D2 O4 Q5 |
| Date: | 2017–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82450&r=env |
| By: | Sara Moarif (International Energy Agency) |
| Abstract: | Parties to the United Nations Framework Convention on Climate Change are currently developing the operational elements of the Paris Agreement, including guidance for information to facilitate clarity, transparency and understanding (CTU) when Parties communicate their nationally determined contributions (NDCs). Drawing on Party submissions from 2016 and April 2017, and discussions held during the CCXG Global Forum on the Environment and Climate Change in March 2017, this paper synthesises and discusses views on guidance for CTU in four areas: the purpose of the guidance; where further guidance is needed; the elements of the guidance; and the relationship between guidance for CTU and other operational elements of the Paris Agreement. The paper then suggests ways for Parties to consider selected issues, namely: the structure and content of the guidance; its status; the scope of NDCs; and links between sets of guidance, including timing issues. |
| Keywords: | accounting, climate change, mitigation, nationally determined contributions (NDCs), transparency, UNFCCC |
| JEL: | F53 Q54 Q56 Q58 |
| Date: | 2017–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaab:2017/01-en&r=env |
| By: | Alban Kitous (European Commission – JRC); Kimon Keramidas (European Commission – JRC) |
| Abstract: | This document complements the Global Energy and Climate Outlook 2017 Report. It provides the detailed GHG and energy balances for the Reference, INDC and B2C scenarios described in the main report. The results displayed in this report have been produced with the global energy & GHG model POLES-JRC. |
| Keywords: | climate, mitigation, GHG emissions, energy, energy statistics, energy demand, energy supply, power generation, modelling, POLES |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc107366&r=env |
| By: | Neophyta Empora |
| Abstract: | This study investigates the effect of pollution and pollution spillovers on the Total Factor Productivity (TFP) growth among the 48 contiguous U.S. states, for the period 1965-2002. Specifically, this study accounts for the spatial relationship between the states that arises from the transboundary nature of Sulphur dioxide (SO2) emissions and investigates how the dispersion of pollution affects economic growth. The relationship between TFP growth, pollution and pollution spillovers is estimated using a semiparametric smooth coefficient model that allows estimating the output elasticity of pollution and pollution spillovers for each state and each period and accounts for possible nonlinearities in the data. According to the results, the effect of spillover pollution on growth is negative and larger in magnitude than the positive effect of a state’s own emissions: decreases in emissions might not be so harmful for productivity growth. |
| Keywords: | TFP Growth; Pollution; Transboundary Pollution Spillovers; Semiparametric Estimation |
| JEL: | C14 O13 O40 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:ucy:cypeua:06-2017&r=env |
| By: | Guojun He (Assistant Professor, Division of Social Science, Division of Environment, and Economics Department, Hong Kong University of Science and Technology; Institute for Emerging Market Studies, Hong Kong University of Science and Technology) |
| Abstract: | Guojun He, Faculty Associate of HKUST IEMS, explains why a single, unified economic or environmental policy may backfire, using the case of China’s national expressways. He found that while the cross-nation system was originally conceived as a unified economic policy, counties along the roads were affected very differently in terms of economic growth and pollution. |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:hku:briefs:201718&r=env |
| 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. |
| Keywords: | distributional effects, carbon tax, environmental policy, incidence |
| JEL: | H22 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6596&r=env |
| By: | Florence Crick, Shaikh Eskander, Sam Fankhauser, Mamadou Diop |
| Abstract: | This paper investigates to what extent and how small and medium-sized enterprises (SMEs) in poor countries are adapting to climate risks. We collect data from 325 SMEs in the semi-arid regions of Kenya and Senegal and use this information to estimate the quality of current adaptation measures, distinguishing between sustainable adaptation and reactive coping. We then study the link between these current adaptation practices and adaptation planning for future climate change. We find that financial barriers are a key reason why firms resort to reactive coping mechanisms, while general business support, access to information technology and adaptation assistance encourages sustainable adaptation responses. Engaging in adaptation today also increases the likelihood that a firm is preparing for future climate change. The finding lends support to the strategy of many development agencies who use adaptation to current climate variability as a way of building resilience to future climate change. There is a clear role for public policy in facilitating good adaptation. The ability of firms to respond to climate risks depends in no small measure on factors that can be shaped through policy intervention. |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp284&r=env |
| By: | Ramos-Toro, Diego |
| Abstract: | This paper demonstrates that population diversity and its adverse effect on social cohesion have a robust, causal, positive effect on the carbon emissions of sufficiently rich economies. An examination of geocoded data on emissions from fossil fuels reveals that such results holds at a subnational level as well. The documented effect of diversity operates through its impact on mistrust and on heterogeneity in preferences, which suggests a social dimension that must be contemplated when setting a strategy to curb human’s carbon footprint. |
| Keywords: | Carbon Emissions, Cohesion, Population Diversity, Trust |
| JEL: | O10 Q50 Q52 Z13 |
| Date: | 2017–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82396&r=env |
| By: | Isabelle Cadoret (CREM CNRS UMR6211, University Rennes 1 & Condorcet Center for Political Economy, France); Emma Galli (DiSSE,Sapienza University of Rome, Rome, Italy); Fabio Padovano (CREM CNRS UMR6211, University Rennes 1 & Condorcet Center for Political Economy, France) |
| Abstract: | This paper empirically examines for what purposes governments actually use environmental taxes and how efficient they are in achieving such goals. The theoretical literature proposes four alternative interpretations: strictly or loosely Pigouvian, the double dividend and the Leviathan hypotheses. We consider the EU-27 countries that committed themselves to correcting a negative environmental externality, the greenhouse gas (GHG) emissions, by 2020. A dynamic system of simultaneous equations shows that data fail to support both Pigouvian interpretations, since ET neither bring countries closer to the GHG reduction targets, nor governments use them for broader purposes of environmental protection. As no evidence is found that governments substitute ET to more distortive forms of taxation, the analysis suggests that the Leviathan interpretation, which views ET as any other type of tax that governments use to maximize revenues, is the most consistent with reality. Creation-Date: 2017-08 |
| Keywords: | Environmental taxes, environmental policy goals, Pigouvian taxation, double dividend hypothesis, Leviathan government, dynamic simultaneous equations model |
| JEL: | Q28 H54 H87 D72 D73 D78 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cccrwp:2017-04-ccr&r=env |
| By: | Ann E. Ferris |
| Abstract: | Environmental regulation can impact local labor markets, potentially reducing incomes and employment and inducing reallocation across sectors. The labor market consequences of environmental regulation are difficult to isolate because regulations frequently apply to large areas, such as the entire United States, and researchers cannot directly observe the counterfactual, in the absence of regulation. I claim that protection of the northern spotted owl in the Pacific Northwest in the 1990s led to an exogenous decline in labor demand in that region. I use this policy change to identify the local and regional impacts of endangered species regulation on employment and incomes in the timber industry. I estimate the local labor market impact of owl protection by comparing counties in the region with and without owl-protected areas. Depending on the choice of control areas and the inclusion of additional control factors, northern spotted owl protection plausibly led to a small loss of incomes and employment in the region. |
| Keywords: | employment effects, labor market impacts, environmental policy |
| JEL: | Q52 R11 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201705&r=env |
| By: | De Pin, Antonio |
| Abstract: | Consumption of agricultural land through various forms of degradation, erosion, compaction, waterproofing, has an impact on the entire primary sector, with increasing costs. Thus, if the Italian surface is 30 million hectares, 17 is the total agricultural (SAT), but only 12 is actually productive. The SAU, which has been properly used for crops, has decreased by 20% over the past 30 years and its incidence contracted from 52.4% to 42.6%, but only part of the loss is due to urban expansion processes and consumption of soil. Thus, there is an inadequate loss indicator, not including weighing roads, irrigation systems, woods, uncultivated, major renaturalisation phenomena that affect the lost surface [Soriani, 2014]. SAU is best suited to a timely planning of quality, considering the specific agricultural space and productivity. Its contraction must be accompanied by several factors, in addition to the loss of the SAT, linked to the reforms of the common agricultural policy, the various forms of support to agricultural income, the dynamics of international competition, with the effect of abandoning crops. This is often the result of wild re-naturalization, within settlements dynamics that attest to the evolution of land use patterns, only contributing to the loss of lost biodiversity, fueling instead various forms of degradation and disaster in regaining the natural forces of space. |
| Keywords: | Consumption of agricultural land, eco-system services, rural area, multifunctionality of agriculture, agricultural census, agricultural structures, SAT/SAU- total/utilized agricultural area |
| JEL: | Q01 Q15 Q24 Q26 |
| Date: | 2016–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82580&r=env |
| By: | Hassan Benchekroun (McGill University, CIREQ); Gerard (G.C.) van der Meijden (Vrije Universiteit Amsterdam; Tinbergen Institute, The Netherlands); Cees Withagen (IPAG Business School (Paris), Vrije Universiteit Amsterdam, Tinbergen Institute) |
| Abstract: | We show that OPEC's market power contributes to global warming by enabling producers of relatively expensive and dirty oil to start producing before OPEC reserves are depleted. We fully characterize the equilibrium of a cartel-fringe model and use a calibration to examine the importance of this extraction sequence effect. While welfare under the cartel-fringe equilibrium can be significantly lower than under a first-best outcome, almost all of this welfare loss is due to the sequence effect. Moreover, the recent boom in shale oil reserves may reduce social welfare and renewables subsidies can increase the carbon content of current extraction. |
| Keywords: | cartel-fringe; climate policy; non-renewable resource; Herfindahl rule; limit pricing |
| JEL: | Q31 Q42 Q54 Q58 |
| Date: | 2017–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20170104&r=env |
| By: | Rainald Borck |
| Abstract: | The paper studies the effect of public transport policies on urban pollution. It uses a quantitative equilibrium model with residential choice and mode choice. Pollution comes from commuting and residential energy use. The model parameters are calibrated to replicate key variables for American metropolitan areas. In the counterfactual, I study how free public transport coupled with increasing transit speed affects the equilibrium. In the baseline simulation, total pollution falls by 0.2%, as decreasing emissions from transport are partly offset by rising residential emissions. A second counterfactual compares a city with and without public transit. This large investment decreases pollution by 1.6%. When jobs are decentralized, emissions fall by 0.3% in the first and by 3% in the second counterfactual. |
| Keywords: | public transport, pollution, discrete choice |
| JEL: | Q53 Q54 R48 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6606&r=env |
| By: | aus dem Moore, Nils; Großkurth, Philipp; Themann, Michael |
| Abstract: | This study investigates the causal effect of the EU Emissions Trading System (EU ETS) on firms' holdings of fixed assets as an early indicator of industrial relocation, exploiting installation level inclusion criteria of the regulation. To single out companies with particularly low relocation costs, global multinational enterprises (MNEs), we identify ownership structures for the full sample of EU ETS-firms. Matched difference-indifferences estimates provide robust evidence that contradicts the idea of an erosion of European asset bases. Baseline results indicate that the EU ETS led on average to an increase of treated firms' asset bases of 11,1%. However, for a particular subgroup of MNEs, this increase is a mere 1.3%. For these companies, the EU ETS may have induced a shift in investment priorities. While the positive overall effect is very robust, the differential effect for the subgroup cannot be extended to all samples. |
| Keywords: | EU ETS,cap-and-trade,carbon leakage,multinational corporation |
| JEL: | F23 H23 Q54 Q58 C21 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:719&r=env |
| By: | Steven M. Smith (Division of Economics and Business, Colorado School of Mines) |
| Abstract: | Price-based interventions can be corrective where users extract from a common resource, but may also impact existing social norms, often crowding them out. In contrast, I find a pumping tax implemented by a group of irrigators in Southern Colorado effectively crowded-in pro-conservation norms, enhancing the financial incentive's impact. Using a unique, spatially oriented panel-data set of groundwater wells, I separate the direct role of increased pumping costs from the indirect effect transmitted through altered conservation norms. To quantify conservation, I estimate how pumping at one well responds to pumping at nearby wells, instrumenting with pumping permits, and interact that behavior with a difference-in-difference framework. The fee directly accounts for approximately 61% of the reduced pumping and the remaining 39% comes from crowding-in conservation norms. I hypothesize the internal process provided a signal of group commitment and the knowledge that others are paying a fee lead to more unconditional conservers. |
| Keywords: | Irrigation, Groundwater, Climate Change, Conservation, Social Norms |
| JEL: | Q15 Q25 H23 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:mns:wpaper:wp201708&r=env |
| By: | Arik Levinson (Department of Economics, Georgetown University); James O'Brien (Department of Economics, Gettysburg College) |
| Abstract: | Environmental Engel curves (EECs) plot the relationship between householdsÕ incomes and the pollution embodied in the goods and services they consume. The curves provide a basis for estimating the degree to which aggregate environmental improvements, which come in part from changing consumption patterns, can be attributed to income growth. We calculate a set of annual EECs for the United States from 1984 to 2012, revealing three clear results. First, EECs are upward sloping: richer households are indirectly responsible for more pollution. Second, EECs have income elasticities of less than one: pollution increases less than one-for-one with income. Third, EECs have been shifting down and becoming more concave over time: at every level of income households are responsible for decreasing amounts of pollution. We show that even without changes to production techniques, the pollution necessary to produce the goods and services American households consume would have declined up to 12 percent, despite a 19 percent increase in real household after-tax incomes. Most of this improvement is attributable to households consuming a less pollution-intensive mix of goods, driven about equally by two factors: household income growth represented by movement along inelastic EECs; and economy-wide changes represented by downward shifts in EECs. |
| Date: | 2017–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:geo:guwopa:gueconwpa~17-17-05&r=env |
| By: | Arik Levinson (Department of Economics, Georgetown University) |
| Abstract: | In 2011 the US changed its automobile fuel economy standards from a uniform, fleet-wide average, miles-per-gallon target, to one that varies with car sizes. Smaller cars now must meet stricter standards. While the motive for any policy change can be disputed, the consequence of this change looks like environmental protectionism, because the favored larger cars are disproportionately assembled in the US. The change imposes costs on imported cars equivalent to a tariff of $50 to $200 per vehicle. |
| Keywords: | Pollution; Regulations; Fuel economy; Automobiles |
| JEL: | F1 Q4 |
| Date: | 2017–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:geo:guwopa:gueconwpa~17-17-02&r=env |
| By: | ITF |
| Abstract: | This report examines how lowering vehicle mass can reduce CO2 emissions from road transport. The average mass of new passenger cars in the European Union has increased by around 40% over the past four decades. Lowering vehicle mass to levels observed in the mid-1970s could reduce vehicle emissions substantially and help meet European Union targets such as the 60% reduction in transport CO2 emissions by 2050. Based on different scenarios, this study shows that mass reduction across all vehicle technologies has potential to reduce the gap between such ambitions and the current trend and would financially benefit the vehicle user. This report was developed in the context of the International Transport Forum’s Decarbonising Transport project. It is part of the International Transport Forum’s Case-Specific Policy Analysis series. These are topical studies on specific issues carried out by the ITF in agreement with local institutions. |
| Date: | 2017–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:40-en&r=env |
| By: | Audi, Marc; Ali, Amjad |
| Abstract: | This study has investigated the impact of energy consumption, financial development, economic development, population density and secondary school education on environmental degradation in Lebanon over the period of 1974 to 2014. ADF unit root test and ARDL bound test method of co-integration have been used for empirical analysis. The results show that energy consumption, financial development and population density have positive and significant relationship with environmental degradation in Lebanon. The results show that economic development has positive but insignificant relationship with environmental degradation. The results show that secondary school education has negative and significant relationship with environmental degradation in Lebanon. The estimated results show that for reducing environmental degradation, the Lebanese government should increase energy efficient methods of production as well as increase the educational level. |
| Keywords: | economic development, population density, environmental degradation |
| JEL: | O1 Q53 Q56 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82494&r=env |
| By: | Halkos, George; Matsiori, Steriani; Dritsas, Sophoclis |
| Abstract: | This study primarily attempts to understand people’s beliefs towards marine protected areas considering as a case study the National Marine Park of Alonissos, Northern Sporades (NMPANS) in Greece. Specifically, it aims to identify people’s opinion about the utility of the park investigating also their beliefs in relation to socio-economic characteristics. For this reason, a face-to-face survey of 200 respondents randomly selected residents of Volos was carried out. The research was structured according to the principles of the Contingent Valuation Method (CVM). According to the survey results, the majority of responders recognized the contribution of the Park to preserve the monk seal and the natural environment. Moreover, they want to maintain the park and specialise in the area of protection measures. |
| Keywords: | Marine Park; CVM; WTP; Mediterranean monk seal; Socio-economic values; Environmental attitudes. |
| JEL: | C10 C52 Q20 Q51 Q56 Q57 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82490&r=env |
| By: | Anna Makles; Kerstin Schneider |
| Abstract: | Noise pollution is detrimental to health and to cognitive development of children. This is not only true for extreme levels of noise in the neighborhood of an airport but also to traffic noise in urban areas. Using a census of preschool children, we show that children who are exposed to intensive traffic noise significantly fall behind in terms of school readiness. Being exposed to additional 10 dB(A) compares to about 3 months in kindergarten. We contribute to the literature and the policy debate by working with administrative data and focusing on everyday exposure to noise. The proposed method is easily applied to other regions. We assess the public costs of different abatement instruments and compare the costs to the benefits. It turns out that the commonly used abatement measures like quiet pavement or noise protection walls in densely populated areas of about 3,000 to 5,000 inhabitants per km2 can be cost efficient, even with a conservative assessment of the benefits. |
| Keywords: | noise, child development, early education, abatement, abatement costs |
| JEL: | I18 Q53 H23 H54 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6281&r=env |
| By: | Kimon Keramidas (European Commission – JRC); Alban Kitous (European Commission – JRC); Jacques Despres (European Commission – JRC); Andreas Schmitz (European Commission – JRC); Ana Diaz Vazquez (European Commission – JRC); Silvana Mima; Peter Russ (European Commission – JRC); Tobias Wiesenthal (European Commission – JRC) |
| Abstract: | This report is a public manual for the POLES-JRC model, the in-house tool of the European Commission for global and long-term analysis of greenhouse gas (GHG) mitigation policies and evolution of energy markets. The model includes a comprehensive description of the energy system and related GHG emissions for a large set of significant economies and residual regions, covering the world and including international bunkers. Through linkage with specialised tools it also provides a full coverage of GHG emissions, including from land use and agriculture, as well as of air pollutant emissions. The POLES-JRC model builds on years of development of the POLES model while adding specific features developed internally within the JRC. The model version presented in this report is used in particular to produce the JRC Global Energy and Climate Outlook (GECO) series. Complementary information can be found on the JRC Science Hub website: http://ec.europa.eu/jrc/poles ttp://ec.europa.eu/jrc/geco |
| Keywords: | POLES, energy, modelling, climate, mitigation, GHG emissions, energy demand, energy supply, energy transformation, power generation, energy prices, energy trade, energy investment, energy technologies, energy scenarios |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc107387&r=env |
| By: | Batabyal, Amitrajeet; Beladi, Hamid |
| Abstract: | Despite the salience of Mr. Narendra Modi's campaign from both environmental and touristic standpoints, the extant literature contains no theoretical studies of the clean-up of the Ganges and its connection to tourism. Hence, we use a simple model and provide the first stochastic analysis of the Ganges clean-up process and the attraction of tourists to Varanasi. |
| Keywords: | Cleanup, Ganges, Tourism, Uncertainty |
| JEL: | L83 Q25 |
| Date: | 2017–08–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82376&r=env |
| By: | Christian Hilber, Charles Palmer, Edward Pinchbeck |
| Abstract: | We explore the impact of historic preservation policies on domestic energy consumption. Using panel data for England from 2006 to 2013 and employing a fixed effects strategy, we document that (i) rising national energy prices induce an increase in home energy efficiency installations and a corresponding reduction in energy consumption and (ii) this energy saving effect is significantly less pronounced in Conservation Areas and in areas with high concentrations of Listed Buildings, where the adoption of energy efficiency installations is typically more costly and sometimes legally prevented altogether. The energy costs of preservation are substantial |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp281&r=env |
| By: | De Pin, Antonio |
| Abstract: | Land Consumption and Farming Concentration in Mature Economies: the Veneto Region. In this paper, we will discuss how soil consumption in mature economies is increasingly affecting farmland with measurable effects on the loss of eco-systemic services of agriculture. Different sets of indicators interconnect multiple phenomena: this fact restates the centrality of rural areas through the concept of multi-functionality. Using the information gathered from the VI General Agricultural Census, the study offers a realistic snapshot of the evolution of structural elements in the agricultural sector in the Veneto region. Modifications are intense, which imply the damage of multiple relationships between artificial space and agricultural systems. The search is performed through the analysis of census microdata. The observed trends suggest a concentration model of farm structures. This allows the testing of the effectiveness of agricultural policies. The tendency of relevant indicators shows the intensification of the restructuring process. |
| Keywords: | Keywords: farms, land consumption, multi-functionality |
| JEL: | Q12 Q15 Q24 |
| Date: | 2016–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82573&r=env |
| By: | Hirose, Kosuke; Matsumura, Toshihiro |
| Abstract: | We compare emission cap commitment that restricts total emissions and emission intensity commitment that restricts emissions per unit of output as measures of self-regulation. The monopolist chooses either emission cap commitment or emission intensity commitment and sets the target level under the constraint that the resulting emissions do not exceed the upper limit. We find that profit-maximizing firms choose emission cap commitment, although emission intensity commitment always yields greater consumer surplus. It is ambiguous whether emission intensity commitment or emission cap commitment yields greater welfare. We present two cases in which emission intensity commitment yields greater welfare. One is the most stringent target case (the target emission level is close to zero), and the other is the weakest target case (the target emission level is close to business-as-usual). Our result suggests that the incentive for adopting emission cap commitment is too large for profit-maximizing firms, and thus, governments should encourage the adoption of emission intensity commitment, especially to achieve a zero-emission society efficiently. |
| Keywords: | self-regulation, emission intensity, emission cap, monopoly, zero-emission |
| JEL: | L12 L51 Q52 |
| Date: | 2017–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82564&r=env |
| By: | Veselova, Anna S.; Dikova, Desislava; Kazantcev, Anatoly K. |
| Abstract: | We use CassonÙ³ (1999) concept of (increasing) transaction and information costs adding to organizational complexity and expenditures, to arrive at an S-shaped relationship between degree of internationalization (DOI) and performance. To capture contextual complexity, we consider critical boundary conditions for the relationship DOIperformance of Russian firms, namely 1) the impact of environmental uncertainty, 2) firmlevel characteristics such as firm size and innovativeness and 3) the generic strategy followed by the Russian MNEs. We use a sample of 213 predominantly private and mature Russian MNEs. Our results show support for hypothesized S-shaped relationship; this relationship is conditional on the Russian firmsÙ degree of innovativeness and differentiation strategy. Environmental dynamics and firm size affect performance of internationalizing Russian firms to a lesser extent. |
| Keywords: | degree of internationalization, organizational complexity, expenditures, Russian MNCs, S-shape relationships, performance, environmental dynamics, firm size, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:sps:cpaper:8711&r=env |
| By: | Thijs Benschop; Brenda López Cabrera; |
| Abstract: | The EU Emission Trading System (EU ETS) was created to reduce the CO2 and other greenhouse gas emissions at the lowest economic cost. In reality market participants are faced with considerable uncertainty due to price changes and require price and volatility estimates and forecasts for appropriate risk management, asset allocation and volatility trading. Although the simplest approach to estimate volatility is to use the historical standard deviation, realized volatility is a more accurate measure for volatility, since it is based on intraday data. Besides the stylized facts commonly observed in financial time series, we observe long-memory properties in the realized volatility series, which motivates the use of Heterogeneous Autoregressive (HAR) class models. Therefore, we propose to model and forecast the realized volatility of the EU ETS futures with HAR class models. The HAR models outperform benchmark models such as the standard long-memory ARFIMA model in terms of model fit, in-sample and out-of-sample forecasting. The analysis is based on intraday data (May 2007-April 2012) for futures on CO2 certificates for the second EU-ETS trading period (expiry December 2008-2012). The estimation results of the models allow to explain the volatility drivers in the market and volatility structure, according to the Heterogeneous Market Hypothesis as well as the observed asymmetries. We see that both speculators with short investment horizons as well as traders taking long-term hedging positions are active in the market. In a simulation study we test the suitability of the HAR model for option pricing and conclude that the HAR model is capable of mimicking the long-term volatility structure in the futures market and can be used for short-term and long-term option pricing. |
| Keywords: | EU ETS, Realized Volatility, HAR, Volatility Forecasting, Intraday Data, CO2 Emission Allowances, Emissions Markets, Asymmetry, SHAR, HARQ, MC Simulation JEL Classification: C00 |
| JEL: | C00 |
| Date: | 2017–08 |
| URL: | http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2017-025&r=env |
| By: | Melina Kourantidou (Department of Sociology, Environmental and Business Economics, University of Southern Denmark); Brooks A. Kaiser (Department of Sociology, Environmental and Business Economics, University of Southern Denmark) |
| Abstract: | Applied economics often relies on research findings from other fields. With absent, inconclusive or contradictory findings, economics must interpret the uncertainty and ground any policy recom-mendations in this context. Understanding biases in the primary research agendas can assist in improving policy. Research and management are considered part of the production chain needed to manage the sustainable output of the ecosystem. We identify how economic incentives may systematically vary across research interests that feed into policy decisions over natural resource management of a simultaneously profitable and invasive species. We empirically test how this variation in incentives might affect research agendas and their findings for the case of the ongoing Red King Crab invasion in the Barents Sea. We find that research agendas may shift over time in response to shifts in the relative trade-offs between the financial resource benefit and the ecological consequences of the invasion as it progresses from introduction to establishment. Scientific con-sensus may be more difficult to achieve even for primary research when economic incentives differ across participating researchers. |
| Keywords: | Invasive Species, Red King Crab, Fisheries Research, Scientific Consensus, Horizon-tal/Vertical Integration in Natural Resource Research and Management |
| JEL: | Q22 Q28 Q2 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:sdk:wpaper:1&r=env |
| By: | Wilson, Norbert L. W. (Asian Development Bank Institute) |
| Abstract: | Several of the Sustainable Development Goals (SDGs) suggest that improving well-being is achievable through trade. The free flow of goods and services internationally, which encourages efficient production and expansion of consumption, may support SDGs concerning inclusive and sustainable economic growth and sustainable consumption and production patterns. However, trade restrictions such as nontariff barriers (NTBs) may stymie potential gains from trade, which supports the SDGs. This chapter explores the trade effects of different NTBs, especially labeling and food safety regulations in food and agriculture. The upshot of this chapter is that trade can enhance economic growth and development. Standards such as labels and food safety regulations may contribute to or hamper this growth, which affects the capacity to attain the relevant SDGs. Thus, future analysis must provide careful assessments of industries, proposed standards, multiple outcomes, and power relationships to identify the effects of standards on trade and development. |
| Keywords: | labels; food safety; SPS; TBT; non-tariff barriers (NTB); Sustainable Development Goals |
| JEL: | F13 O24 Q17 Q18 |
| Date: | 2017–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0657&r=env |
| By: | Qinxin Guo (Graduate School of Economics, Kobe University, Japan); Enci Wang (School of Economics, Shanghai University, China); Yongyou Nie (School of Economics, Shanghai University, China); Junyi Shen (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan, and School of Economics, Shanghai University, China) |
| Abstract: | In the past decade, sales of electrical and electronic equipment have undergone explosive growth worldwide, while at the same time, the life cycles of electrical and electronic equipment have been getting shorter. This has resulted in large numbers of waste electrical and electronic equipment (WEEE) being generated, which causes serious environmental problems that each country has to face. In this paper, we use the system dynamic method to analyze how China’s “WEEE processing fund” policy, wherein levies or subsidies are set on appropriate targets, influences the economic and environmental conditions of participants in the WEEE management system. The simulations results suggest that the “WEEE processing fund” policy could improve the economic status of those receiving subsidies without losing the economic revenue from levies and improve the entire system’s ability to recover and process waste equipment. |
| Keywords: | Waste electrical and electronic equipment management, Waste electrical and electronic equipment processing fund, System dynamic model, Economic and environmental effects, China |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2017-30&r=env |
| By: | Jane Ellis (OECD); Manasvini Vaidyula (OECD) |
| Abstract: | Decision 1/CP.21 adopting the Paris Agreement established a mandate for a facilitative dialogue to be convened among Parties in 2018. This mandate established two main objectives of the 2018 facilitative dialogue (FD2018): to take stock of collective progress made towards long-term climate goals and to inform preparation of nationally determined contributions. Proposal(s) from the COP22 and COP23 presidencies on how the dialogue should be conducted are expected to be made by COP23. This paper “unpacks” the two main objectives of the FD2018 into distinct components, and examines the implications of addressing different components on the information needs of the FD2018. The paper also examines different types of information that could be required for FD2018 and their availability. Finally, the paper looks at other collective review or stocktake processes that have been carried out under the U.N. to identify relevant lessons for the FD2018, particularly regarding inputs and associated outputs. |
| Keywords: | 2018 facilitative dialogue, climate, information needs, UNFCCC |
| JEL: | F53 Q54 Q56 Q58 |
| Date: | 2017–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaab:2017/02-en&r=env |
| By: | Steven M. Smith (Division of Economics and Business, Colorado School of Mines) |
| Abstract: | Surface water irrigators in arid regions confront public good issues for building and maintaining shared infrastructure as well as common-pool resource issues to appropriate the surface water. Drawing on the unique history of New Mexico, I explore how the transition in the early 20 th century from the original small decentralized communal Spanish irrigation systems (acequias) to centralized quasi-public irrigation districts altered agricultural development and production. My results confirm that that irrigation districts can significantly improve outcomes when investing in costly infrastructure to expand irrigated acreage, increasing farmland values up to 33 percent. However, I find no broader evidence that the centralized control of water distribution provides any gains to acreage previously under irrigation by the decentralized acequias. |
| Keywords: | common-pool resources, transaction costs, externalities, governance structure |
| JEL: | N52 O13 Q15 Q25 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:mns:wpaper:wp201709&r=env |
| By: | Michaela HORUCKOVA; Thierry BAUDASSE |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:leo:wpaper:2529&r=env |
| By: | Karoline S. Rogge (SPRU– Science Policy Research Unit, University of Sussex, Brighton BN1 9RH, UK; Fraunhofer Institute Systems and Innovation Research ISI, Karlsruhe, Germany); Elisabeth Dütschke (Fraunhofer Institute Systems and Innovation Research ISI, Karlsruhe, Germany) |
| Abstract: | The credibility of climate policy has been identified as paramount factor for low-carbon investment and innovation and is thus key for the cost-effective achievement of the decarbonization objectives set out in the Paris Agreement. Yet, despite its importance we have only limited insights into how such policy credibility is formed. To address this gap we explore whether and to what extent corporate perceptions of policy credibility depend on the current policy mix with its national targets, concrete policy instruments and their consistency as well as policy making and implementation. For this, we use the case of the German Energiewende and rely on data collected in 2014 through a survey of German manufacturers of renewable power generation technologies. We analyze the answers of 390 companies through a linear regression to identify policy mix related determinants of perceived policy credibility - measured by a novel indicator based on four survey items. We find that corporate perceptions of policy credibility are mainly shaped by two characteristics of the policy mix, namely the coherence of policy making and implementation, followed by the consistency of the policy mix. Elements of the policy mix matter as well, in particular changes in the design of the core demand pull instrument (the Renewable Energy Sources Act, EEG) and the nuclear phase-out policy, but also the German targets for the expansion of renewable energies play a role. These insights enable us to derive more general implications for policy makers around the world interested in promoting the innovation-led decarbonization of the economy by safeguarding and increasing policy credibility. |
| Keywords: | policy mix, credibility, consistency, coherence, comprehensiveness, energy transition |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2017-23&r=env |
| By: | Qizhong YANG (The Graduate School of Economics, Osaka University); Tsunehiro OTSUKI (Osaka School of International Public Policy, Osaka University) |
| Abstract: | This study examined the impact of two PRERs released by the EU—RoHS and REACH—on Malaysian and Vietnamese firms’ compliance. The analysis considers productivity as a realization of innovations and examines the R&D enhancement effect of PRERs. The effect of PRERs on productivity is also broken down into direct and indirect effects through R&D enhancement. The result shows that the response to REACH can create incentives to advance R&D, and productivity can increase through both direct and indirect channels. No relationship between the response to RoHS and R&D expenditure is found. Further analysis shows that firms comply with RoHS and REACH in different ways, but just the ability to continue exporting to the EU motivates compliance. |
| Keywords: | RoHS, REACH, Innovation, Productivity, Porter Hypothesis |
| JEL: | F18 O31 Q55 Q56 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:osp:wpaper:17e007&r=env |