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on Environmental Economics |
| By: | Steven Poelhekke |
| Abstract: | Most people are convinced that climate change is a threat and that it should somehow be dealt with. It is also clear that CO2 emissions are still too cheap and must be priced higher to sufficiently curtail emissions. Yet how high should a carbon tax be? Answering this question requires scientific insights on the costs and benefits of a carbon tax but also ethical - and thus political - judgements on how we value the damages from climate change that will happen in the near and in the far future. This paper reviews the evidence on the social cost of carbon and discusses global and unilateral policy options. It finds that a price of $77 per metric ton of carbon is defensible if we give 95% weight to damages occurring two generations (or 50 years) from now but higher if we want to further reduce the risk of catastrophic change. It is best implemented as part of trade agreements and in combination with R&D investment. |
| Keywords: | climate change; carbon tax; discounting; policy |
| JEL: | Q54 Q38 H20 O44 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:579&r=env |
| By: | Jaelani, Aan |
| Abstract: | This study confirms that renewable energy sources become the solution for energy development in Indonesia due to the increasingly depleted use of fossil-based energy, due to an increase in the population that increases energy consumption and waste in fuel consumption. The Qur'an has provided simple concepts and illustrations about renewable energy sources that can be utilized by humans, energy conservation, and energy enrichment. With the codification and content analysis approach to energy policy in Indonesia and energy themes in the Qur'an, this paper asserts that the Government of Indonesia's renewable energy policy focuses on providing and developing renewable energy as part of sustainable development. This renewable energy policy can be proven scientifically with the implementation of scientific Qur'anic terms about renewable energy sources such as water, geothermal, ocean, vegetation, and wind. The policy on energy conservation through energy saving becomes a religious obligation for every person, institution, and government because to meet the needs of consumers, maintain the survival of the community, and preserve the environment. |
| Keywords: | renewable energy, energy conservation, energy saving, energy economy |
| JEL: | Q28 Q43 Q48 Q57 Q58 Z12 |
| Date: | 2017–09–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:83314&r=env |
| By: | Claudio Agostini (Escuela de Gobierno, Universidad Adolfo Ibáñez); Shahriyar Nasirov; Carlos Silva; Gustavo Caceres |
| Date: | 2017–08 |
| URL: | http://d.repec.org/n?u=RePEc:uai:wpaper:wp_053&r=env |
| By: | Gerling, Charlotte; Sturm, Astrid; Wätzold, Frank |
| Abstract: | The conservation of biodiversity is one of the aims of the EU’s organic farming subsidy programme. We applied an ecological-economic modelling procedure to analyse the impact of organically and conventionally managed meadows on endangered bird and butterfly species in Saxony, Germany. We also analysed the impact of agri-environment schemes (AES) in landscapes with conventional and organic farming. Applying a modelling procedure to assess the impact of organic farming is novel as previous research predominantly relies on field studies. We found that for the species considered the difference in the impact of conventional and organic farming is minor, and both types of farming are unable to conserve a large share of these species. This is because the species require different timings of land use for their reproduction and neither conventional nor organic farming provide this heterogeneity. We also found that in comparison with conventional farmers organic farmers face different opportunity costs when implementing AES measures and are offered different payments for such measures. This influences organic farmers’ decisions to take part in AES, which in turn has an important impact on biodiversity conservation. In order to better conserve species it may be necessary to adapt the payment structure of AES with respect to organic farming. |
| Keywords: | organic farming; grassland; agri-environment schemes; biodiversity; model; DSS-Ecopay |
| JEL: | Q1 Q5 |
| Date: | 2017–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:83290&r=env |
| By: | Claudio Agostini (Escuela de Gobierno, Universidad Adolfo Ibáñez); Shahriyar Nasirov; Carlos Silva |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:uai:wpaper:wp_052&r=env |
| By: | Goytom Abraha Kahsay (Department of Food and Resource Economics, University of Copenhagen); Workineh Asmare Kassie (School of Economics, University of Gondar); Abebe Damte Beyene (Environment and Climate Research Center (ECRC), Ethiopian Development Research Institute (EDRI)); Lars Gårn Hansen (Department of Food and Resource Economics, University of Copenhagen) |
| Abstract: | The Ethiopian food for work program typically induces forest conservation work. While economic outcomes have been studied before, little is known about the program’s environmental impact. We run a choice experiment among Ethiopian farmers eliciting preferences in a hypothetical afforestation program that mimics the Ethiopian food-for-work program. We find that introducing food incentives decreases willingness to participate in the program and participation rate increases with an increase in the proportion of individuals selected for food incentive. We also find that the crowding-out effect is stronger when food incentive recipients are selected based on income compared to lottery-based selection. Our data points to pro-social signaling as the most likely channel for the crowding-out effect. These results suggest that (1) food-for-work programs could have unintended negative environmental effects and (2) directions for design reform that could mitigate this. |
| Keywords: | Crowding-out; Food-for-work program, Pro-environmental behavior; Selection; Pro-social signaling |
| JEL: | D03 D64 D82 Q57 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2017_13&r=env |
| By: | Moyo, Clement; Dingela, Siyasanga; Kolisi, Nwabisa; Khobai, Hlalefang; Anyikwa, Izunna |
| Abstract: | The importance of renewable energy consumption has grown to a large extent over the recent years. The benefits of renewable energy consumption ranging from improved environmental quality to higher economic growth are well documented. However, the impact of renewable energy consumption on unemployment has received relatively less attention. This study examines the relationship between renewable energy consumption and unemployment in South Africa over the period 1990-2014. The Autoregressive Distributed Lag (ARDL) model was employed to test the long-run and short-run impacts of renewable energy consumption on unemployment. The results reveal that renewable energy consumption has a negative and significant effect on unemployment in the long-run. However, in the short-run the variables have an insignificant relationship. The study therefore advocates for an increase in the production and consumption of renewable energy in order to boost employment levels. |
| Keywords: | Renewable energy consumption, unemployment, ARDL, South Africa |
| JEL: | C50 Q20 |
| Date: | 2017–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:83279&r=env |
| By: | Melindi-Ghidi, P.; Dedeurwaerdere, T.; Fabbri, G. |
| Abstract: | The activities of intermediary organisations in the context of payments for agri-environmental services have broadly increased in all European countries over the last two decades. However, the impact of this new governance mechanism on environmental protection and changes in individuals' behavior has not yet been studied in the economic literature. To explore this issue, we develop a new theoretical economic framework that allows us to compare the main environmental effects of an incentive mechanism with intermediaries, such as environmental knowledge brokers and information providers, as compared to those of a standard central governance mechanism. This paper bridges the knowledge-brokering theory developed in the literature in environmental science with the process of individual preferences formation and transmission developed in the economic literature. The analysis shows that the emergence of knowledge intermediaries is particularly valuable in the context of payments for agri-environmental services in a situation where individuals, such as farmers, initially have a low level of environmental awareness. The same conclusion holds when the public institution organizing the scheme is not sufficiently apprised of individuals' characteristics. This allows us to give a theoretical justification for previous empirical results on payment schemes for agri-environmental measures. |
| Keywords: | KNOWLEDGE BROKERS;CULTURAL TRANSMISSION;PRO-ENVIRONMENTAL CULTURE;MORAL HAZARD;PRINCIPAL-AGENT |
| JEL: | Q51 Q38 Z13 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2017-10&r=env |
| By: | Philip Daniel; Alan Krupnick; Thornton Matheson; Peter Mullins; Ian Parry; Artur Swistak |
| Abstract: | This paper suggests that the environmental and commercial features of shale gas extraction do not warrant a significantly different fiscal regime than recommended for conventional gas. Fiscal policies may have a role in addressing some environmental risks (e.g., greenhouse gases, scarce water, local air pollution) though in some cases their net benefits may be modest. Simulation analyses suggest, moreover, that special fiscal regimes are generally less important than other factors in determining shale gas investments (hence there appears little need for them), yet they forego significant revenues. |
| Date: | 2017–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:17/254&r=env |
| By: | Daire McCoy, John Curtis |
| Abstract: | In order to better understand the potential for both policy and technological improvements to aid carbon abatement, long-term historical information on the time-path of transition from more traditional to cleaner fuels is useful. This is a relatively understudied element of the fuel switching literature in both developed and emerging economies. This research adds to this literature by examing the adoption time-path of network gas as a heating fuel. We merge a unique dataset on gas network roll-out over time, with other geo-coded data and employ an instrumental variables technique in order to simultaneously model supply and demand. Results indicate a non-linear relationship between the proportion of households using gas as their primary means of central heating and the length of time the network has been in place in each area. Proximity to the gas network, peat bogs, and areas which have banned the consumption of bituminous coal also affect gas connections. Variations in socioeconomic and dwelling characteristics at area level can also help explain connections to the gas network. Simulations are then performed to examine how network expansion might affect connections and carbon emissions. |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp320&r=env |
| By: | Laure Latruffe; K Hervé Dakpo; Yann Desjeux; Giffona Justinia Hanitravelo |
| Abstract: | With a sample of farms in the European Union (EU) and Farm Accountancy Data Network (FADN) data completed by additional data, we illustrate how the effect of farm subsidies on technical efficiency changes when environmental (good or bad) outputs are incorporated in the calculation of technical efficiency. Results indicate that the effect of the Common Agricultural Policy (CAP) operational subsidies on farm technical efficiency changes when environmental outputs (in this study: greenhouse gas emissions, nitrogen balance and ecological focus areas) are taken into account in the efficiency calculation: some effects change significance, and more importantly, some effects change sign. |
| Keywords: | technical efficiency, subsidies, Common Agricultural Policy, environmental outputs, farms, European Union |
| JEL: | Q12 Q18 C6 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:rae:wpaper:201711&r=env |
| By: | Luís Aguiar-Conraria (NIPE and Economics Department, University of Minho); Maria Joana Soares (NIPE and Department of Mathematics and Applications, University of Minho.); Rita Sousa (NIPE and Economics Department, University of Minho) |
| Abstract: | Carbon price is a key variable in management and risk decisions in activities related to the burning of fossil fuels. Different major players in this market, such as polluters, regulators, and fi nancial actors have different time horizons. Using innovative multi-variate wavelet analysis tools, including partial wavelet coherency and partial wavelet gain, we study the link between carbon prices and final energy prices in the time and frequency dimensions in California´s carbon market, officially known as the California cap-and-trade program. We fi nd that gasoline prices lead an anti-phase relation with carbon prices. This result is very stable at lower frequencies (close to one-year period cycles), and it is also present before mid-2015 in the 20 ~ 34 weeks frequency-band. Regarding electricity, we find that at about 1 year frequencies, a rise in carbon prices is reflected in higher electricity prices. We conclude that the fi rst five years of compliance of the California cap-and-trade program supports the idea that emissions´trading is a signi cant measure for climate change mitigation, with visible rising carbon prices. The quantitative financial analytics we present here supports the continuation of the program after 2020. |
| Keywords: | Multivariate wavelet analysis; partial wavelet gain; partial wavelet coherency; carbon market; energy prices; California ETS. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:13/2017&r=env |
| By: | Marco Letta (Department of Economics and Social Sciences, Sapienza University of Rome (IT).); Pierluigi Montalbano (Department of Economics and Social Sciences, Sapienza University of Rome (IT).); Richard S.J. Tol (Department of Economics, University of Sussex (UK)) |
| Abstract: | Using the LSMS-ISA Tanzania National Panel Survey by the World Bank, we study the relationship between rural household consumption growth and temperature shocks over the period 2008 – 2013. Temperature shocks have a negative and significant impact on household growth only if their initial consumption lies below a critical threshold. As such, temperature shocks slow income convergence among households. Agricultural yields and labour productivity are the main transmission channels. These findings support the Schelling Conjecture: economic development would allow poor farming households to cope with climate change, and closing the yield gap and modernizing agriculture is crucial for adaptation to the negative impacts of global warming. |
| Keywords: | weather shocks; climate change; household consumption growth; rural development. |
| JEL: | I32 O12 Q12 Q54 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:saq:wpaper:13/17&r=env |
| By: | Coindoz, L.; Criqui, P.; Mathy, S.; Mima, S. |
| Abstract: | Ce document de travail analyse le degré d'effort nécessaire à l'atteinte des objectifs INDC des 13 pays du Deep Decarbonization Pathway Project. L'objectif est d'évaluer et de comparer les degrés d'effort requis pour atteindre les objectifs INDC, entre les pays, d'une part et, d'autre part, au regard de trajectoires de plus long terme (2050) s'inscrivant dans l'objectif global de limiter la hausse des températures en deçà de 2°C. Une méthodologie est mise en place pour transcrire les INDC en niveaux d'émissions de CO2 nettes du LULUCF. Le modèle POLES est ensuite utilisé pour révéler la valeur carbone implicite des INDC et permettre une comparabilité des objectifs nationaux entre eux. Enfin, la création d'un scénario INDCext permet d'appréhender les INDC au regard d'objectifs nationaux de plus long terme (2050) compatibles avec l'objectif global de limiter la hausse des températures en deçà de 2°C. |
| Keywords: | RECHAUFFEMENT CLIMATIQUE;EFFET DE SERRE;DEEP DECARBONIZATION PATHWAY PROJECT |
| JEL: | Q47 Q57 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2017-02&r=env |
| By: | - |
| Abstract: | La hidroelectricidad es una de las formas más sustentable de generación de energía y con mayor potencial en los países en vías de desarrollo. Tomando en cuenta que su insumo principal es el agua, los aportes hídricos de la cuenca aguas arriba al sitio de las presas y obras de captación co-determinan la producción de energía en una relación cuasi-lineal. Por ende, los cambios en los niveles de precipitación y de temperatura afectan indirectamente los niveles de generación. En los últimos años, la subregión ha experimentado sequías recurrentes, con afectación directa en la producción de electricidad, emergiendo la preocupación por los impactos que el cambio climático puede tener en las centrales hidroeléctricas. En este estudio se presenta un análisis de cómo este fenómeno podría afectar la producción de dos centrales hidroeléctricas en las próximas décadas: Fortuna en Panamá y Sabana Yegua en la República Dominicana. |
| Keywords: | ENERGIA HIDROELECTRICA, CAMBIO CLIMATICO, CENTRALES HIDROELECTRICAS, RECURSOS ENERGETICOS, POLITICA ENERGETICA, ASPECTOS AMBIENTALES, ESTADISTICAS DE ENERGIA, ESTADISTICAS AMBIENTALES, HYDROELECTRIC POWER, CLIMATE CHANGE, HYDROELECTRIC POWER PLANTS, ENERGY RESOURCES, ENERGY POLICY, ENVIRONMENTAL ASPECTS, ENERGY STATISTICS, ENVIRONMENTAL STATISTICS |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col094:42426&r=env |
| By: | Pierre-Olivier Pineau; Simon Langlois-Bertrand |
| Abstract: | Le Québec a été la première province au Canada à mettre en œuvre, dès 2013, un marché du carbone avec plafonds d’émissions décroissants dans le temps, le système de plafonnement et d’échange de droits d’émission (SPEDE). Cela s’est fait dans un contexte d’objectifs de réduction d’émissions de gaz à effet de serre (GES) plus ambitieux qu’au Canada, alors que les émissions québécoises par habitant sont les plus faibles de toutes les provinces. Par ailleurs, parce que les émissions non énergétiques représentent une plus grande proportion des émissions au Québec qu’au Canada, il y a moins d’opportunités de miser sur la substitution par des énergies à faible teneur en carbone et sur l’efficacité énergétique. Le gouvernement fédéral a annoncé en 2016 un plan canadien de lutte contre les changements climatiques. Celui-ci propose une tarification du carbone de deux types : une taxe (redevance) sur le carbone dès 2018, pour les produits pétroliers et le gaz naturel utilisés en transport et dans les bâtiments, combinée à un «régime de tarification fondé sur le rendement» (RTFR) pour les grands émetteurs de plus de 50 000 tonnes de CO2 équivalent (tCO2e) par an, pas avant 2019. La question de l’équivalence des approches québécoises et fédérale se pose donc, pour évaluer notamment leur efficacité à réduire les émissions de GES. |
| Date: | 2017–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirpro:2017rp-08&r=env |
| By: | Xu (Susan) Tang |
| Abstract: | This paper explores how countries strategically interact in setting environment policies. This paper directly estimates the causal effect of other countriesâ changes in environmental policies on home countryâs policy choice. Considering that the strategic interaction can be caused by distinct mechanisms, this paper also disentangles different underlying mechanisms and explores the role of interjurisdictional competition for capital, transboundary pollution spillovers, and coordination in determining the observed interactions. I build a simple theoretical model which incorporates distinct mechanisms of interaction and derives ways to differentiate them empirically. In the estimation, I use a panel dataset consisting of 26 OECD countries for the period of 1990 to 2012 and use spatial econometrics with the Generalized Methods of Moments (GMM) continuously updated estimator (CUE) with Instrumental Variable (IV). To deal with endogeneity issue, I use other countries' political characteristics as instruments for other countries' environmental policies. A new composite index is used to measure environmental policy, which is the Environmental Policy Stringency (EPS) index developed by the OECD. This index captures multiple dimensions of environmental policies and is comparable across countries. Use of this index is a significant improvement in how environmental policy is measured in previous research. This paper finds that there is positive and statistically significant effect of other countries' environmental policies. And the interjurisdictional competition and transboundary pollution spillovers play limited roles in causing the effect. The coordination across EU countries mainly drive the effect, which is further reinforced after adopting euro as a common currency. This paper contributes to the literature on two fronts. First, most of the papers in the literature estimate environmental interaction at the subnational government level, such as across states. The evidence on countries is extremely limited. This paper directly estimates interaction pattern across OECD countries. Second, there are very few empirical papers in the environmental policy literature that disentangle the mechanism behind the strategic interaction. This paper provides empirical evidence on the potential causes and finds that interjurisdictional competition does not play a significant role in setting a countryâs environmental policy. This result implies that since interjurisdictional competition is limited, the possibility of a ârace to the bottomâ would not be a serious concern. Moreover, instrument variables in this paper also show improvement compared with the literature. |
| JEL: | Q H |
| Date: | 2017–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:jmp:jm2017:pta721&r=env |
| By: | O. Ashton Morgan; William L.Huth; Paul Hindsley |
| Abstract: | Recent research examining voting behavior in contingent valuation referenda informs on how consequential survey respondents behave and its impact on willingness to pay values."This research attempts to examine whether this behavior holds across population subgroups. We consider resident and non-resident users of artificial reefs and find improved construct validity for our resident models over non-resident models. Specifically, resident behavior is in line with a priori expectations with consequential residents more likely to vote in favor of a policy for additional reef funding – a result that is consistent with the “protest no” literature. Consequently, consequential resident voters exhibit a greater willingness to pay than inconsequential voters. Non-resident behavior differs, however. For this subgroup, consequentiality does not influence voting behavior and willingness-to-pay values do not differ by consequentiality. Overall, more work is required to appropriately identify willingness to pay values for non-resident populations, particularly from a benefit-cost perspective, where appropriately identifying subgroup WTP values are a critical component of measuring the net present value of a given policy. Key Words: |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:17-10&r=env |
| By: | Derya Keles (LEF - Laboratoire d'Economie Forestière - INRA - Institut National de la Recherche Agronomique - AgroParisTech); Johanna Choumert; Pascale Combes (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Eric Kere (Banque Africaine de Développement) |
| Date: | 2017–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01652446&r=env |
| By: | Ajit Zacharias |
| Abstract: | The predominant framework for measuring poverty rests on an implicit assumption that everyone has enough time available to devote to household production or enough resources to compensate for deficits in household production by purchasing market substitutes. Senior Scholar Ajit Zacharias argues that this implicit bias in our official poverty statistics threatens to undermine the Sustainable Development Goals (SDGs). The SDGs include the following targets: (1) reduce the incidence of poverty by 50 percent by 2030, and (2) recognize and provide support to the unpaid provision of domestic services and care of persons undertaken predominantly by women in their households. This policy note suggests that a closer link exists between poverty reduction and support for household production activities than is commonly acknowledged. Failure to recognize the link in policy design can contribute to failure on both fronts. To obtain a more accurate assessment of poverty, time deficits in household production must be taken into account. |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:lev:levypn:17-4&r=env |
| By: | Katharina Rogge (Universität Hamburg, Germany); Markus Groth (Leuphana University Lueneburg, GermanyAuthor-Name:); Roland Schuhr (Universität Leipzig, Germany) |
| Abstract: | Im Rahmen des Beitrags untersuchen wir mithilfe des Regressionsansatzes, welchen Einfluss für die größten börsennotierten Unternehmen Deutschlands eine Auswahl unternehmensspezifischer Faktoren (Unternehmensgröße, Profitabilität, Sektorenzugehörigkeit, Beteiligungsstruktur, Status der Beantwortung, Vorjahresteilnahme) bei der Beantwortung folgender Fragestellungen besitzt: i) Wovon hängt die Teilnahme an der freiwilligen Klimaberichterstattung an CDP ab? ii) Wovon hängt die Qualität der freiwilligen Klimaberichterstattung an CDP ab? Der theoretische Teil der Untersuchung fokussiert die Befriedigung von Informationsbedürfnissen aller Anspruchsgruppen eines Unternehmens als Hauptmotiv für die freiwillige Bereitstellung klimarelevanter Daten und Strategien. Im Zuge dessen wird erläutert, wie auf dieser Grundlage eine Vertragsbeziehung zwischen einem Unternehmen und seinen Anspruchsgruppen effizient gestaltet werden kann. Dabei wird die freiwillige Offenlegung klimarelevanter Daten und Strategien beispielhaft als die unternehmerische Teilnahme an der CDP-Klimaberichterstattung analysiert. Die empirischen Auswertungen im Anschluss an die Vorstellung der Datenbasis sowie die statistische Hypothesenprüfung zeigen insbesondere, dass die Größe eines Unternehmens und seine Beteiligungsstruktur einen signifikanten Einfluss auf die hier zentralen Fragestellungen haben. |
| Keywords: | Betriebliches Umweltmanagement, CDP, Klimaberichterstattung, Klimareporting, Klimawandel, Umweltorientierte Unternehmensführung |
| JEL: | C12 M1 M14 Q54 Q56 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:376&r=env |
| By: | Raphaël Homayoun Boroumand (ESG Research Lab - ESG Management School); Stéphane Goutte (LED - Université Paris 8); Thomas Péran (Paris School of Business); Thomas Porcher (Paris School of Business) |
| Date: | 2017–11–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01644639&r=env |
| By: | Yayan Hernuryadin (School of Economics and Management, Kochi University of Technology); Koji Kotani (School of Economics and Management, Kochi University of Technology); Tatsuyoshi Saijo (Research Institute for Humanity and Nature) |
| Abstract: | Resource scarcity and food security are two important issues due to overexploitation of natural resources with increasing population, market demand and mass production, whereas fishermen and farmers have been two main occupations that produce food, utilizing natural resources. The production mode between fishermen and farmers is distinct in that fishermen (farmers) harvest (cultivate, grow and harvest), leading to different daily life style and culture. It is hypothesized that such differences in daily practices and production mode between fishermen and farmers characterize their time preferences or discounting behaviors. We have conducted a discounting elicitation experiment for fishermen and farmers in Indonesia. The statistical analysis shows that the average (median) discount factors of farmers are 0.48 (0.50), respectively, whereas those of fishermen are 0.30 (0.10). The betafit and median regressions demonstrate that the discount factors of farmers are 9.8% and 26.8% higher than those of fishermen, respectively, implying that fishermen are much more shortsighted than farmers. This result appears to reflect that farmers wait or "cultivate and grow" six months for their harvest because of which they save some portion of their income, while fishermen catch or "harvest" fish every day and typically use up their daily income. Although same policies have been uniformly implemented on these two occupations, the government may need some devices and education on fishermen to nurture a culture of "cultivate and grow" fish stock for promoting long-term conservation behaviors as well as sustaining fishery and their lives. |
| Keywords: | time preferences, field experiments, food security, resource sustainability, fishermen |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2017-26&r=env |
| By: | Bos, Jaap (Finance); Li, Runliang (Finance) |
| Abstract: | This paper examines the impact of natural disaster experiences on banks’ business practices. Using earthquake and banking data for California, we find that banks that have had stronger earthquake experiences change their practices, both as a result of the natural disasters’ effects on local deposit supply and through changes in banks’ risk perceptions. These banks have a smaller exposure to real estate, maintain higher equity levels, and are more likely to lend to high-income borrowers. This paper confirms, therefore, that institutional memory exists in the banking sector and that banks and communities adapt to natural disasters interactively. |
| Keywords: | environmental economics, Financial Economics and Financial Manageemnt |
| JEL: | D53 D83 G11 G21 Q54 |
| Date: | 2017–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umagsb:2017033&r=env |
| By: | Galina Besstremyannaya (CEFIR at New Economic School); Richard Dasher (Stanford University); Sergei Golovan (New Economic School) |
| Abstract: | A considerable amount of research has shown that that carbon tax combined with research subsidy may be regarded as an optimal policy in view of diffusing low carbon technologies for the benefit of the society. The paper exploits the macro economic approach of the endogenous growth models with technological change for a comparative assessment of these policy measures on the economic growth in the US and Japan in the medium and the long run. The results of our micro estimates reveal several important differences across the Japanese and US energy firms: lower elasticity of innovation production function in R&D expenditure, lower probability of a radical innovation, and larger advances of dirty technologies in Japan. This may explain our quantitative findings of stronger reliance on carbon tax than on research subsidies in Japan relative to the US. |
| Keywords: | endogenous growth, technological change, innovation, carbon tax, energy |
| JEL: | O11 O13 O47 Q43 Q49 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:cfr:cefirw:w0245&r=env |
| By: | Oded Galor; Viacheslav Savitskiy |
| Abstract: | This research explores the origins of loss aversion and the variation in its prevalence across regions, nations and ethnic group. It advances the hypothesis and establishes empirically that the evolution of loss aversion in the course of human history can be traced to the adaptation of individuals to the asymmetric eects of climatic shocks on reproductive success during the Malthusian epoch. Exploiting variations in the degree of loss aversion among second generation migrants in Europe and the US, as well as across precolonial ethnic groups, the research establishes that consistent with the predictions of the theory, individuals and ethnic groups that are originated in regions in which climatic conditions tended to be spatially correlated, and thus shocks were aggregate in nature, are characterized by greater intensity of loss aversion, while descendants of regions marked by climatic volatility have greater propensity towards loss-neutrality. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:bro:econwp:2018-1&r=env |
| By: | Selin, H.; Simula, L. |
| Abstract: | Ce document de travail analyse le degré d'effort nécessaire à l'atteinte des objectifs INDC des 13 pays du Deep Decarbonization Pathway Project. L'objectif est d'évaluer et de comparer les degrés d'effort requis pour atteindre les objectifs INDC, entre les pays, d'une part et, d'autre part, au regard de trajectoires de plus long terme (2050) s'inscrivant dans l'objectif global de limiter la hausse des températures en deçà de 2°C. Une méthodologie est mise en place pour transcrire les INDC en niveaux d'émissions de CO2 nettes du LULUCF. Le modèle POLES est ensuite utilisé pour révéler la valeur carbone implicite des INDC et permettre une comparabilité des objectifs nationaux entre eux. Enfin, la création d'un scénario INDCext permet d'appréhender les INDC au regard d'objectifs nationaux de plus long terme (2050) compatibles avec l'objectif global de limiter la hausse des températures en deçà de 2°C. |
| Keywords: | RECHAUFFEMENT CLIMATIQUE;EFFET DE SERRE;DEEP DECARBONIZATION PATHWAY PROJECT |
| JEL: | H21 H24 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2017-03&r=env |