|
on Environmental Economics |
|
Issue of 2018‒05‒21
fifty-two papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Halkos, George |
| Abstract: | The environment is changing in a dynamic way. Sustainable development consists of both natural environmental changes as well as changes caused by humans. Nowadays environmental changes occur more often and much quicker and these changes challenge ecosystems and human societies. The aim of this special issue is to address the achievement of sustainable development by addressing the current issues of concern. Specifically, the green economy concept is an important term in international agendas. Together with the current economic crisis and the view that policies to attain sustainability cannot be put into operation efficiently, policy makers anticipate a solution from the greening of the economy. Green growth, more energy efficiency, cleaner energy technologies and sustainable development are regularly considered as harmonizing goals by international policy makers. |
| Keywords: | Energy consumption; trade; energy security risk; decoupling; green industrialization; greening workplace; digitalization; green communication. |
| JEL: | O11 Q40 Q43 Q56 Q58 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86534&r=env |
| By: | Denise Trebes |
| Abstract: | Zusammenfassung (deutsch): Die Klimaerwärmung schreitet unaufhörlich voran, so dass eine Regulierung der Treibhausgasemissionen großer Industriezweige unerlässlich ist. Einer der größten Verursacher von CO2-Emissionen ist der Transportsektor. Für den Flugsektor hat die ICAO daher eine globale marktbasierte Maßnahme, namens CORSIA beschlossen. Dabei handelt es sich um einen Offsetting-Mechanismus, mit dem die Emissionen des Flugsektors mit Hilfe von Zertifikaten aus umweltfreundlichen Projekten ausgeglichen werden sollen. Ziel CORSIAs ist es, ein kohlenstoffneutrales Wachstum ab 2020 zu gewährleisten und damit zu einer Emissionsreduktion beizutragen. Ziel der vorliegenden Arbeit war es, den Beschluss und die Effektivität von ICAOs marktbasierter Maßnahme zu analysieren. Die Untersuchungen haben ergeben, dass die derzeitige Ausgestaltung CORSIAs vermutlich nicht ausreichend ist, um eine Vereinbarkeit mit dem 1,5 Grad Ziel des Pariser Abkommens zu gewährleisten. Ursache hierfür sind im Wesentlichen die zu schwachen Regelungen des Offsetting-Systems. Dazu zählen die einseitige Betrachtung von ausschließlich CO2-Emissionen, die zahlreichen Ausnahmen von Nationen sowie der Zeithorizont CORSIAs, da die Maßnahme erst 2021 mit einer freiwilligen Phase beginnt. Abstract (english): The climate change is progressing incessantly. Hence, the regulation of greenhouse gas emissions from large industrial sectors is indispensable. One of the main sources of carbon dioxide emissions is the transport sector. For aviation ICAO therefore adopted a global market-based measure called CORSIA. This offsetting mechanism will be used to offset emissions from the aviation sector with the help of certificates from environmental projects. The aim of CORSIA is to ensure carbon-neutral growth from 2020 onwards and thus contribute to a reduction in emissions. The aim of this work was to analyze the decision and effectiveness of ICAO’s market-based measure. The investigations have shown that the current design of CORSIA is probably not sufficient to ensure compatibility with the 1.5 degree objective of the Paris Convention. This is mainly because of the weak regulation of the offsetting system. These include the one-sided view of solely carbon dioxide emissions, the numerous exemptions of nations and the time horizon of CORSIA, since the measure begins with a voluntary phase in 2021. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:euv:dpaper:27&r=env |
| By: | Moreno-Cruz, Juan B. (Georgia Institute of Technology); Wagner, Gernot (Harvard University); Keith, David w. (Harvard University) |
| Abstract: | This paper introduces geoengineering into an optimal control model of climate change economics. Together with mitigation and adaptation, carbon and solar geoengineering span the universe of possible climate policies. We show in the context of our model that: (i) a carbon tax is the optimal response to the unpriced carbon externality only if it equals the marginal cost of carbon geoengineering; (ii) the introduction of solar geoengineering leads to higher emissions yet lower tempera- tures, and, thus, increased welfare; and (iii) solar geoengineering,in effect, is a public goods version of adaptation that also lowers temperatures. |
| JEL: | D90 O44 Q48 Q54 Q58 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp17-028&r=env |
| By: | Baranzini, Andrea; Borzykowski, Nicolas; Carattini, Stefano |
| Abstract: | Following the entry into force of the Paris Agreement in November 2016, governments around the world are now expected to turn their nationally determined contributions into concrete climate policies. Given the global public good nature of climate change mitigation and the important cross-country differences in marginal abatement costs, distributing mitigation efforts across countries could substantially lower the overall cost of implementing climate policy. However, abating emissions abroad instead of domestically may face important political and popular resistance. We ran a lab experiment with more than 300 participants and asked them to choose between a domestic and an international reforestation project. We tested the effect of three informational treatments on the allocation of participants’ endowment between the domestic and the international project. The treatments consisted in: (1) making more salient the cost-effectiveness gains associated with offsetting carbon abroad; (2) providing guarantees on the reliability of reforestation programmes; (3) stressing local ancillary benefits associated with domestic offset projects. We found that stressing the cost-effectiveness of the reforestation programme abroad did increase its support, the economic argument in favour of offsetting abroad being otherwise overlooked by participants. We relate this finding to the recent literature on the drivers of public support for climate policies, generally pointing to a gap between people's preferences and economists’ prescriptions. |
| Keywords: | forest policy; climate policy; carbon offsets; reforestation; acceptability |
| JEL: | Q23 Q54 Q58 |
| Date: | 2018–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:87732&r=env |
| By: | Stefan Nabernegg (University of Graz, Austria); Birgit Bednar-Friedl (University of Graz, Austria); Pablo Munoz (United Nations University, Bonn, Germany); Michaela Tietz (Environment Agency Austria, Vienna, Austria); Johanna Vogel (Environment Agency Austria, Vienna, Austria) |
| Abstract: | In a world with diverging emission reduction targets, national climate policies might be ineffective in reducing consumption-based CO2 emissions (carbon footprints), i.e. emissions of final demand that are embodied in domestic and international supply chains. We analyse a set of different policies in three areas with particularly high consumption-based emissions in Austria: building construction, public health, and transport. To capture both, substitution possibilities triggered by these policies and the induced emission reductions along the full global supply chain, our analysis combines a Computable General Equilibrium with a Multi-Regional Input-Output model. For building construction we find that a carbon added tax is highly effective in reducing consumption-based emissions whereas an information obligation on vacant dwellings combined with a penalty payment when vacant buildings are not made available is ineffective because of reallocated investment capital. Mandatory energy efficiency improvements in public health and mobility are found equally effective in reducing consumption- and production-based emissions while a decarbonization of domestic logistics stronger reduces production-based emissions. Overall, the effectiveness of policies, to mitigate consumption-based emissions, is therefore determined by the backward and forward linkages of the sector addressed by the policy as well as the substitution effects within final demand. |
| Keywords: | Carbon footprint; National climate policy; Emissions embodied in trade; Policy analysis; Computable general equilibrium analysis; Multi-regional input-output model |
| JEL: | C67 C68 F18 Q56 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:grz:wpaper:2018-10&r=env |
| By: | Halkos, George |
| Abstract: | The severity of environmental problems and their socio-economic effects are important research issues as pollution and damages are local or global externalities implying market failures when in most of the cases the sources of pollution do not consider the full cost (including the related social costs) caused to others by their actions. Managing the various environmental problems and their associated implications is of interest to decision makers. Estimates of damage costs and a variety of other issues connected to changes in environmental quality and having to do with the importance of uncertainty and risk aversion are essential issues open to discussion. Furthermore, setting up competent policies requires cautious consideration of each source of pollution. For this reason, various features in the use of sufficient policies to cope with the various environmental problems, like people’s awareness of environmental use and non-use values, institutional frameworks and similar concerns have to be considered. Policies to handle pollution and the related degradation have to take into account both the specific economic conditions as well as the structure of the associated sectors of each region. |
| Keywords: | Environment; sustainability; development. |
| JEL: | O11 Q40 Q50 Q56 Q58 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86490&r=env |
| By: | Mai Miyamoto (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University) |
| Abstract: | This paper examines the Kyoto Protocol's impact on the international diffusion of renewable energy technologies. Using patent application data from 133 countries from 1990 to 2013, we find that the Kyoto Protocol increased international patent applications from the countries with emission targets. When we focus on countries with more stringent targets, the effect of the Kyoto Protocol is even stronger. We find a similar effect in international patent applications to four developing countries that are large emitters of greenhouse gases (GHGs): China, India, Brazil, and Mexico. These results suggest that the Kyoto Protocol stimulated international patenting activities from countries that are committed to stringent targets for climate mitigation. |
| Keywords: | Renewable energy; Kyoto Protocol; International patent applications |
| JEL: | F14 O33 Q55 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1820&r=env |
| By: | Adeline Fayolle; Grace Jopaul G.J. Loubota Panzou; Thomas Drouet; Mike Swaine; Sébastien S. Bauwens; Jason Vleminckx; Achille Bernard Biwolé; Philippe Lejeune; Jean-Louis Doucet |
| Abstract: | Accurate height-diameter allometry is crucial for the estimation of forest biomass and carbon stocks. Tree height measurements over a large range of diameters and species are urgently needed in the tropics, specifically in central Africa, for the development of locally derived height-diameter allometric equations and the conversion of forest inventory data into biomass estimates, and for the validation of remotely sensed canopy height that mostly rely on a few specific field sites. In this study, we aimed to identify the variation in height-diameter allometry of tropical trees between forest types and among species in central Africa, and we examined the consequences for biomass estimation. Height and diameter were measured for a total of 521 trees over a large range of diameters in two forest types in southern Cameroon, 10–240 cm in the evergreen forest and 11–182 cm in the semi-deciduous forest. A total of ten allometric models including asymptotic and non-asymptotic models were fitted to the height-diameter data. Measured tree diameters, grouped into 10 cm wide diameter classes up to 150, from commercial forest inventory data (0.5 ha plots, n = 2101 and n = 5152, respectively in the evergreen and in the semi-deciduous forests) were converted into biomass estimates using general allometric models with and without including our site-specific height-diameter allometry. Though debated in the literature, our results supported a saturation of tree height with tree diameter both at site and species level, with asymptotic models better depicting the height-diameter allometry. Height-diameter allometry significantly differed between forest types and these local height-diameter equations also differed from published equations. For a given diameter, trees tended to be taller in the semi-deciduous forest than in the evergreen forest, as already reported between moist and wet forests in pantropical studies. Similar trends were reported within species for the three species shared by both forest types, suggesting an environmental control of tree allometry. Because of the low performance of the bioclimatic stress variable to predict tree height and of the slight soil differences between the two forest types, the environmental determinants of height-diameter allometry remain to be explored. In addition to tree allometry variation, structural differences (basal area and density) were also identified between the two forest types using commercial forest inventory data at genus level, and both allometry and forest structure (taller trees and denser stands) contributed to the greater biomass per hectare of the semi-deciduous forest. |
| Keywords: | Allometry; Biomass estimation; Forest deciduousness; Maximum tree height; Tropical forest |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/270523&r=env |
| By: | Birg, Laura; Voßwinkel, Jan S. |
| Abstract: | This paper studies the effect of an emission tax on the relocation decision in a duopoly with exogenous vertical product differentiation. We establish the relationship between quality difference, relocation cost, and marginal damage of emissions in a two-country-setting for three cases: An environmental tax set only by one country, non-cooperative environmental taxation in both countries, and coordinated environmental taxation. We consider two different timings, a time-consistent government, and a committed government. The higher the quality difference is, the more likely it is that at least one firm relocates to the foreign country. A lower marginal damage decreases the equilibrium tax rate and lowers the incentive for relocation. If also the foreign country applies an emission tax, there is no equilibrium in which both firms relocate to the foreign country. If both governments set taxes non-cooperatively, the low-quality firm never relocates in equilibrium. If both countries set taxes cooperatively, it is more likely that both fi rms remain in the home country. Also, relocation only of the low-quality firm is a possible outcome of cooperative taxation. |
| Keywords: | relocation,environmental policy,vertical quality differences,emission tax |
| JEL: | H23 F18 L13 Q58 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:347&r=env |
| By: | Xavier Timbeau (Observatoire français des conjonctures économiques); Pawel Wiejski |
| Abstract: | The EU ETS is one of the main European climate policies, covering 45 percent of EU’s greenhouse gas emissions. Its main goal is to limit emissions cost-effectively, and to trigger innovations using a strong price signal, making low-carbon technologies more competitive. While emissions reduction targets for 2020 have already been achieved, the exact role of the ETS in this success remains controversial. The assessment is crucial, as more and more countries and regions plan to adopt similar policies to achieve their targets expressed in the Intended Nationally Determined Contributions, communicated at the Paris Conference of the Parties. The EU ETS, as the longest running and largest carbon market in the world, will undoubtedly serve as a point of reference. This paper attempts to provide a comprehensive analysis of the policy. First part outlines the historical development of emission trading systems, as well as the development of the EU ETS since its inception in 2005. Second part uses FASTER principles developed by the World Bank and the OECD to perform a multi-criteria, qualitative analysis of the EU ETS in its current form. Third part concentrates on the upcoming revision for the fourth phase, evaluating whether the proposals correctly address the policy’s shortcomings. It also provides some alternative reform proposals. |
| Keywords: | Cap and trade; EU ETS; Market stability reserve; Carbon price |
| JEL: | H23 H87 Q56 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/3rqefhgkm689ibvcj2hnil8dho&r=env |
| By: | Jina J. Kim; Daniel A. Axelrad; Chris Dockins |
| Abstract: | Preterm birth (PTB) is a predictor of infant mortality and later-life morbidity. Despite recent declines, PTB rates remain high in the United States. Growing research suggests a relationship between a mother’s exposure to air pollution and PTB of her baby. Many policy actions to reduce exposure to common air pollutants require benefit-cost analysis (BCA), and it’s possible that PTB will need to be included in BCA in the future. However, an estimate of the willingness to pay (WTP) to avoid PTB risk is not available, and a comprehensive alternative valuation of the health benefits of reducing pollutant-related PTB currently does not exist. This paper demonstrates a potential approach to assess economic benefits of reducing PTB resulting from environmental exposures when an estimate of WTP to avoid PTB risk is unavailable. We utilized a recent meta-analysis and county-level air quality and PTB data to estimate the potential health and economic benefits of a reduction in air pollution-related PTB, with fine particulate matter (PM2.5) as our case study pollutant. Using this method, a simulated 10% decrease from 2008 PM2.5 levels resulted in a reduction of 5,016 PTBs and savings of at least $339 million, potentially reaching over one billion dollars when considering later-life effects of PTB. |
| Keywords: | air pollution, preterm birth, benefits, PM2.5 |
| JEL: | D61 I18 J13 Q51 Q53 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201803&r=env |
| By: | Theodoros Chatzivasileiadis (Institute for Environmental Studies, Vrije Universiteit, Amsterdam); Richard S.J. Tol (Department of Economics, University of Sussex, Brighton, UK; Department of Spatial Economics, Vrije Universiteit, Amsterdam; Institute for Environmental Studies, Vrije Universiteit, Amsterdam; Tinbergen Institute, Amsterdam; CESifo, Munich); Francisco Estrada (Institute for Environmental Studies, Vrije Universiteit, Amsterdam; Centro de Ciencias de la Atmósfera, Universidad Nacional Autónoma de México, Ciudad Universitaria, Mexico); Marjan W. Hofkes (Institute for Environmental Studies, Vrije Universiteit, Amsterdam; Department of Economics, Vrije Universiteit, Amsterdam) |
| Abstract: | Climate change already has widespread impacts on society, including the performance of stock markets. Previous studies have focused on how financial markets react to natural disasters such as extreme weather events and provided empirical evidence and mechanistic processes on how this information is assimilated by the investors. Market efficiency theory indicates that investors and financial institutions rely on all available information when managing their portfolios, and change their position as new information arises. Based on empirical analysis, here we show for the first time that investors closely follow the discussion generated by the Intergovernmental Panel on Climate Change (IPCC) and its Working Groups and we quantify the U.S. stock market’s reactions to the publication of their reports. Our results show that the market recognises the importance of the IPCC findings, although there seems to be a reduction in the stock market’s reaction with every passing IPCC report. This highlights the effectiveness of scientific bodies in communicating knowledge to different sectors of society, and the importance of maintaining these institutions as honest brokers of scientific information. |
| Keywords: | IPCC; stock market; event study |
| JEL: | G14 Q54 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:1118&r=env |
| By: | Shahbaz, Muhammad; Sinha, Avik |
| Abstract: | This paper provides a survey of the empirical literature on Environmental Kuznets Curve (EKC) estimation of carbon dioxide (CO2) emissions over the period of 1991-2017. This survey categorizes the studies on the basis of single country and cross-country contexts. It has been hypothesized that the EKC is an inverted U-shaped association between economic growth and CO2 emissions. For both single country and cross-country contexts, the results of EKC estimation for CO2 emissions are inconclusive in nature. The reasons behind this discrepancy can be attributed to the choice of contexts, time period, explanatory variables, and methodological adaptation. The future studies in this context should not only consider new set of variables (e.g., corruption index, social indicators, political scenario, energy research and development expenditures, foreign capital inflows, happiness, population education structure, public investment towards alternate energy exploration, etc.), but also the dataset should be refined, so that the EKC estimation issues raised by Stern (2004) can be addressed. |
| Keywords: | Environmental Kuznets Curve; Carbon Emissions; Economic Growth |
| JEL: | A1 |
| Date: | 2018–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86281&r=env |
| By: | Daniel Puig (United Nations Environmental Programme); Oswaldo Morales Napoles; Fatemeh Bakhtiari; Gissela Landa (Observatoire français des conjonctures économiques) |
| Abstract: | Governmental climate change mitigation targets are typically developed with the aid of forecasts of greenhouse-gas emissions. The robustness and credibility of such forecasts depends, among other issues, on the extent to which forecasting approaches can reflect prevailing uncertainties. We apply a transparent and replicable method to quantify the uncertainty associated with projections of gross domestic product growth rates for Mexico, a key driver of greenhouse-gas emissions in the country. We use those projections to produce probabilistic forecasts of greenhouse-gas emissions for Mexico. We contrast our probabilistic forecasts with Mexico’s governmental deterministic forecasts. We show that, because they fail to reflect such key uncertainty, deterministic forecasts are ill-suited for use in target-setting processes. We argue that (i) guidelines should be agreed upon, to ensure that governmental forecasts meet certain minimum transparency and quality standards, and (ii) governments should be held accountable for the appropriateness of the forecasting approach applied to prepare governmental forecasts, especially when those forecasts are used to derive climate change mitigation targets. |
| Keywords: | Uncertainty; Projections; Structured expert judgment; Accountability; Emission-reduction targets; Gross domestic product growth rates |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/5cu79nktr182k9k26ecvt6f8p2&r=env |
| By: | Emmanuelle Augeraud-Véron (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Fabbri Giorgio (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Katheline Schubert (PSE - Paris School of Economics) |
| Abstract: | This paper presents a benchmark stochastic endogenous growth model of an agricultural economy. Producing food requires land, and increasing the share of total land devoted to farming mechanically reduces the share of land devoted to biodiversity conservation. However, safeguarding a greater number of species guarantees, through spatial exchanges, better ecosystem services which, in turn, ensure lower volatility of agricultural productivity. The optimal conversion/conservation rule is explicitly characterized, as well as the total value of biodiversity in terms of the welfare gain from biodiversity conservation, and the marginal value of biodiversity in terms of risk premium reduction, namely its insurance value. The Epstein-Zin-Weil specification of preferences allows us to disentangle the effects of risk aversion and aversion to fluctuations. |
| Keywords: | Biodiversity, stochastic endogenous growth, insurance value, recursive preferences |
| Date: | 2018–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01779333&r=env |
| By: | Giovanni Marin; Francesco Vona (Observatoire français des conjonctures économiques) |
| Abstract: | This paper evaluates the historical influence of energy prices on a series of measures of environmental and economic performance for a panel of French manufacturing establishments over the period 1997-2010. The focus on energy prices is motivated by the fact that changes in environmental and energy policies have been dominated by substantial reductions in discounts for large consumers, making the evaluation of each policy in isolation exceedingly difficult. To identify price effects, we construct a shift-share instrument that captures only the exogenous variation in establishmentspecific energy prices. Our results highlight a trade-off between environmental and economic goals: although a 10 percent increase in energy prices brings about a 6 percent reduction in energy consumption and to a 11 percent reduction in CO2 emissions, such an increase also has a modestly negative impact on employment (-2.6 percent) and very small impact on wages and productivity. The negative employment effects are mostly concentrated in energyintensive and trade-exposed sectors. Simulating the effect of a carbon tax, we show that job losses for the most exposed sectors can be quite large. However, these effects are upper bounds and we show that they are significantly mitigated in multi-plant firms by labor reallocation across establishments. |
| Keywords: | Energy prices; Establishment performance; Environmental policy; Energy Policy |
| JEL: | Q52 Q48 H22 D22 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/1jrfjrj6fp8t6q12fv5lra520c&r=env |
| By: | Mikołaj Czajkowski (Faculty of Economic Sciences, University of Warsaw); Marianne Zandersen (Department of Environmental Science, Aarhus University); Uzma Aslam (Department of Environmental Science, Aarhus University; Iqra University Islamabad Campus); Ioannis Angelidis (Department of Environmental Science, Aarhus University); Thomas Becker (Department of Environmental Science, Aarhus University); Wiktor Budziński (Faculty of Economic Sciences, University of Warsaw); Katarzyna Zagórska (Faculty of Economic Sciences, University of Warsaw) |
| Abstract: | The Baltic Sea plays a significant role for recreational use in the nine littoral countries with more than 70% of the population visiting the coast, representing some 80 million recreation visits annually. Understanding the values associated with coastal recreation and the potential welfare changes of improving the state of the Baltic Sea is important for managing the marine environment. We estimate a spatially explicit travel cost model of coastal site recreation to the Baltic Sea to assess the welfare of accessing individual sites, identify recreational hotspots and simulate the welfare changes resulting from improving environmental and infrastructure conditions. The total benefits associated with the Baltic Sea based recreation amount to 11.4 billion EUR per year with significant variation across sites. Improving water quality and infrastructure boost the recreational value by nearly 9 billion EUR, almost doubling the recreational benefits compared to current conditions. |
| Keywords: | Recreational benefits, Site choice, Random Utility Model, Baltic Sea, Blue Flag |
| JEL: | L83 Q26 Q51 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2018-11&r=env |
| By: | Wenjuan Cheng (University of Rome ”Tor Vergata”, Italy); Alessio D'Amato (University of Rome ”Tor Vergata”, Italy); Giacomo Pallante (Italian Ministrty of the Environment) |
| Abstract: | The agricultural genetic diversity is reducing at an accelerating pace. Benefit sharing mechanisms are well-known instruments to incentivize local genetic resource providers to maintain in-situ diversity and to avoid free-riding behaviour by multinational bioprospecting firms. We explore the role of these mechanisms in a setting where the output of bioprospecting activities (i.e. a modern seeds variety), competes with traditional agriculture, and the latter is necessary to conserve the genetic pool from which the multinational could extract the resources for developing new modern varieties in the future. We adopt a multistage game where the multinational anticipates the impact of its bioprospecting investments and price settings on the local owner incentives to conserve genetic diversity. We focus our attention on two benefit sharing mechanisms, namely profits sharing and technology transfers, and compare them with a benchmark featuring free genetic resources access. Our main conclusions suggest that incentives to conservation are the strongest under profit sharing, while a technology transfer produces a genetic erosion that is even higher than under free access. These results shed new light on policy design, especially in developing countries where agricultural genetic diversity is a strategic natural asset. |
| Keywords: | bioprospecting, genetic diversity, modern varieties adoption, monetary benefit sharing, technology transfer. |
| JEL: | O38 Q16 Q57 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1018&r=env |
| By: | Avis Devine; Eva Steiner; Erkan Yonder |
| Abstract: | We provide the first systematic, international decomposition of possible financial benefits of sustainable real estate investment on corporate performance metrics across the two leading country-markets in terms of sustainable property certifications. In the UK, where a baseline level of environmental reporting is mandatory, listed property companies benefit somewhat from investments in sustainability-certified properties through higher cash flow and valuation outcomes. In the US, which features no requisite reporting, the benefits of sustainable investment are stronger and comprise distinct cash flow, risk, information and corporate valuation effects. Our results suggest benefits of improved transparency and benchmarking from environmental performance reporting. |
| Keywords: | Energy Efficiency; Real Estate Investment Trusts; Sustainability; valuation effects |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_346&r=env |
| By: | Avis Devine; Eva Steiner; Erkan Yonder |
| Abstract: | We provide the first systematic, international decomposition of possible financial benefits of sustainable real estate investment on corporate performance metrics across the two leading country-markets in terms of sustainable property certifications. In the UK, where a baseline level of environmental reporting is mandatory, listed property companies benefit somewhat from investments in sustainability-certified properties through higher cash flow and valuation outcomes. In the US, which features no requisite reporting, the benefits of sustainable investment are stronger and comprise distinct cash flow, risk, information and corporate valuation effects. Our results suggest benefits of improved transparency and benchmarking from environmental performance reporting. |
| Keywords: | Energy Efficiency; Real Estate Investment Trusts; Sustainability; valuation effects |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_517&r=env |
| By: | Petros C. Mavroidis; Damien J. Neveny |
| Abstract: | This paper considers the APEC and proposed EGA agreements which grant tariff concession in favor of "green" goods. We find that the practical significance of the APEC agreement should not be overestimated as it involves modest tariff concessions over a subset of goods which are not heavily traded. Still, these agreements involve a paradigm shift to the extent that they use tariffs concessions negotiated on a plurilateral basis as a policy instrument to meet public policy concern, instead of making market access conditional on meeting national regulations. We model the mechanism through which these tariff preferences provide incentives to change production in favor of green goods in exporting countries and highlight the challenges that the implementation of these agreements involve. |
| Keywords: | WTO, APEC, EGA, Tari¤s, Terms of Trade, ex outs |
| JEL: | K40 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2018/20&r=env |
| By: | Evens Salies (Observatoire français des conjonctures économiques); Dominique Bianco (Université de Bourgogne) |
| Abstract: | Few endogenous growth models have focused attention on the strong Porter hypothesis that stricter environmental policies induce innovations, the benefits of which exceed the costs. A key assumption underlying this hypothesis is that policy strictness pushes firms to overcome some obstacles to profit maximization. This paper incorporates pollution and taxation in the model of Aghion and Griffith (2005) of growth which includes satisficing managers and non-drastic innovation. Our theoretical results predict the strong Porter hypothesis. However, assuming drastic innovation in the model, we predict the weak Porter hypothesis. We also consider several extensions, such as a simultaneous competition policy or a command and control policy. |
| Keywords: | Endogeneous growth model |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/vetkngao585gaehs52f2n4fkt&r=env |
| By: | Kelly B. Maguire; Chris Moore; Dennis Guignet; Chris Dockins; Nathalie B. Simon |
| Abstract: | Defining baseline conditions is a key component of regulatory benefit-cost analysis. Most stated preference studies assume that the current state of the world in the absence of additional policy action remains constant. In the time that passes while a regulation is evaluated, implemented, and produces the intended environmental impacts, however, this is unlikely to be the case. To address this largely unexplored area of nonmarket valuation, we administer a stated preference survey using a three-way split sample design. Respondents are either told future baseline conditions would remain constant, decline, or improve without additional policy interventions. While we find some evidence to support predictions of the standard theoretical model, we also find that behavioral and emotional reactions to the non-constant baseline scenarios muddy the waters, introducing some countervailing factors. These results have implications for the design and use of stated preference results in benefit-cost analysis. |
| Keywords: | baseline, benefit-cost analysis, Chesapeake Bay, nonmarket valuation, stated preference survey |
| JEL: | Q51 Q53 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201802&r=env |
| By: | Holden , Stein T. (Centre for Land Tenure Studies, Norwegian University of Life Sciences) |
| Abstract: | The paper investigates the important role of fertilizer to enhance sustainable intensification and food security in Sub-Saharan Africa based on a multi-disciplinary literature review. The review starts with a macro-perspective taking population growth, economic development and climate change into account. This is complemented with a micro-perspective summarizing findings from comprehensive micro-data in selected African countries. Agronomic, environmental and economic profitability implications of fertilizer use are reviewed. An assessment is made whether small farmers in Africa should be considered rational or partly irrational agricultural decision-makers and whether this can affect fertilizer use. I then discuss some controversial and promising policy approaches that may have the potential to enhance sustainable intensification and nutrient use efficiency in African agriculture before I conclude. |
| Keywords: | Sub-Saharan Africa; fertilizer; sustainable intensification; food security; policy. |
| JEL: | Q12 Q18 Q56 |
| Date: | 2018–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsclt:2018_001&r=env |
| By: | Andrea Fracasso (Department of Economics [Università di Trento]); Massimo Riccabonii (School for advanced studies Lucca); Martina Sartori; Stefano Schiavo (Observatoire français des conjonctures économiques) |
| Abstract: | The paper investigates how the topological features of the virtual water (VW) network and the size of the associated VW flows are likely to change over time, under different socio-economic and climate scenarios. We combine two alternative models of network formation –a stochastic and a fitness model, used to describe the structure of VW flows- with a gravity model of trade to predict the intensity of each bilateral flow. This combined approach is superior to existing methodologies in its ability to replicate the observed features of VW trade. The insights from the models are used to forecast future VW flows in 2020 and 2050, under different climatic scenarios, and compare them with future water availability. Results suggest that the current trend of VW exports is not sustainable for all countries. Moreover, our approach highlights that some VW importers might be exposed to “imported water stress” as they rely heavily on imports from countries whose water use is unsustainable. |
| Keywords: | Virtual water trade; Complex networks; Fitness model; Agricultural production; Preferential attachment; Gravity model; Water stress |
| JEL: | F14 F18 Q25 Q56 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/4krkv5tkmp871q08f5rv2n43tn&r=env |
| By: | Alexandra Michailidou (Aristotle University of Thessaloniki); Christos Vlachokostas (Aristotle University of Thessaloniki); Charisios Achillas (Technological Educational Institute of Central Macedonia); Nicolas Moussiopoulos (Aristotle University of Thessaloniki); Eleni Feleki (Aristotle University of Thessaloniki) |
| Abstract: | The paper presents an approach to put forward Metropolitan and Peri-Urban Agriculture (MPA) in the framework of the MADRE Interreg MED project. The MADRE project, which stands for ?Metropolitan Agriculture for Developing and innovative sustainable and Responsible Economy?, is designing a methodological framework in order to identify and characterize best practices of MPA in Mediterranean urban conurbations. Aiming at promoting a change process in the metropolitan food supply model, the project will focus on identifying key factors that foster and hamper MPA development according to stakeholders actively involved in MPA, i.e. key players from the quadruple helix involving private actors (farmers, producers and SMEs), civil society (consumers? groups, NGOs), academia and research and public authorities. It should be noted that the MPA innitiatives started to be more and more considered as an important factor for supplying food to the city dwellers, not only in developing countries but also to the metropolitans of the Northern sphere. It can play a crucial role towards encountering climate change by backing up urban ecosystems and urban biodiversity. To address the challenges of MPA, the approach proposed by MADRE partners is to allow a technical and political empowerment of local food production networks of five countries (France, Greece, Italy, Albania and Spain) through the development of a transnational cluster of MPA stakeholders. Such a transnational organization and networking, will allow those actors to foster their eco-innovation capacity (i.e. producers? innovation, consumers? innovation, social innovation, territorial innovation, transnational innovation and academic research) and thus to increase their impact on national, regional and metropolitan policies. Although there are still gaps of knowledge and uncertainties in studying sustainability issues for the three pillars (environment, economy and society) the proposed approach provides a roadmap for decision-makers to put forward urban agriculture in an organized manner. (This paper has received funding from the ERDF through the MED Interreg Programme under Grant Agreement No. 1MED15_1.1_M3_138). |
| Keywords: | Metropolitan and Peri-urban Agriculture; Decision Making; Methodological Framework; Mediterranean cities; Mediterranean cooperation; food supply chain. |
| JEL: | Q10 O20 Q01 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7508814&r=env |
| By: | Giovanis, Eleftherios; Ozdamar, Oznur |
| Abstract: | Environmental quality is an important determinant of individuals’ well-being and one of the main concerns of the governments is the improvement on air quality and the protection of public health. This is especially the case of sensitive demographic groups, such as the old aged people. However, the question this study attempts to answer is how do individuals value the effects on the environment. The study explores the effects of old and early public pension schemes, as well as the impact of air pollution on health status of retired citizens. The empirical analysis relies on detailed micro-level data derived from the Survey of Health, Ageing and Retirement in Europe (SHARE). As proxies for health, we use the general health status and the Eurod mental health indicator.We examine two air pollutants: the sulphur dioxide (SO2) and ground-level ozone (O3). Next, we calculate the marginal willingness-to-pay (MWTP) which shows how much the people are willing to pay for improvement in air quality. We apply various quantitative techniques and approaches, including the fixed effects ordinary least squares (OLS) and the fixed effects instrumental variables (IV) approach. The last approach is applied to reduce the endogeneity problem coming from possible reverse causality between the air pollution, pensions and the health outcomes. For robustness check, we apply also a structural equation modelling (SEM) which is proper when the outcomes are latent variables. Based on our favoured IV estimates and the health status, we find that the MWTP values for one unit decrease in SO2 and O3 are respectively €221 and €88 per year. The respectiveMWTP values using the Eurod measure are €155 and €68. Overall, improvement of health status implies reduction in health expenditures, and in previous literature, ageing has been traditionally considered the most important determinant. However, this study shows that health lifestyle and socio-economic status, such as education and marital status, are more important, and furthermore, air pollution cannot be ignored in the agenda of policy makers. |
| Keywords: | Air pollution; Early retirements; Health status; Old age pensions; Structural equation modelling |
| JEL: | H0 H00 I10 Q51 Q53 |
| Date: | 2018–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86483&r=env |
| By: | Jean Pierre Ponssard (Department of Economics, École Polytechnique, Palaiseau Cedex, 91128, France - affiliation inconnue); Guy Meunier (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2018–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:halshs-01777499&r=env |
| By: | - |
| Abstract: | Consistently with the emphasis that the Economic Commission for Latin America and the Caribbean (ECLAC) has placed on equality since 2010, and in keeping with the purpose of leaving no one behind enshrined in the 2030 Agenda for Sustainable Development, this document examines the mechanisms by which inequality erodes dynamic efficiency in the Latin American and Caribbean economies. It analyses and measures the productivity and income effects of unequal access to health and education, as well as the consequences of inequality of opportunities arising from gender-,race- or ethnicity-based discrimination. It also examines how these inequalities play out at the level of territory, infrastructure and urban dynamics, where their costs not only weigh on productivity, but also worsen energy inefficiencies and environmental degradation, thereby compromising the development possibilities of present and future generations. Inequality imposes constraints on innovation and creativity that are all the heavier because they are embedded within the culture of agents, which creates a culture of privilege in which many public goods and rights are not universal, but denied to much of the population. This weakens trust in social interactions and in democratic institutions. Here, ECLAC proposes strategic guidelines for increasing the dynamic efficiency of the Latin American and Caribbean economies on the basis of equality. Capacity-building and the construction of welfare States are at the heart of a new development paradigm that puts the technological revolution at the service of low-carbon, technology-intensive growth. In this regard, and in view of the rapid transformations and mounting uncertainties in the global economy, the region urgently needs stronger public and private investment revolving around an environmental big push in order to diversify its production structure and even out its structural disparities. |
| Keywords: | DESARROLLO ECONOMICO, DESARROLLO SOCIAL, IGUALDAD, GLOBALIZACION, CRECIMIENTO ECONOMICO, POBREZA, DISTRIBUCION DEL INGRESO, PRODUCTIVIDAD, CIUDADES, MEDIO AMBIENTE, DESARROLLO REGIONAL, ECONOMIA DEL BIENESTAR, GOBERNABILIDAD, DEMOCRACIA, ECONOMIC DEVELOPMENT, SOCIAL DEVELOPMENT, EQUALITY, GLOBALIZATION, ECONOMIC GROWTH, POVERTY, INCOME DISTRIBUTION, PRODUCTIVITY, CITIES, ENVIRONMENT, REGIONAL DEVELOPMENT, WELFARE ECONOMICS, GOVERNANCE, DEMOCRACY |
| Date: | 2018–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:c39025:43567&r=env |
| By: | Imelda (Department of Economics, University of Hawaii at Manoa); Matthias Fripp (Department of Electrical Engineering, University of Hawaii at Manoa; UHERO; Renewable Energy and Island Sustainability); Michael J. Roberts (Department of Economics, University of Hawaii at Manoa; UHERO; Sea Grant at University of Hawaii at Manoa) |
| Abstract: | On a levelized-cost basis, solar and wind power generation are now competitive with fossil fuels, and still falling. But supply of these renewable resources is variable and intermittent, unlike traditional power plants. As a result, the cost of using flat retail pricing instead of dynamic, marginal-cost pricing--long advocated by economists--will grow. We evaluate the potential gains from dynamic pricing in high-renewable systems using a novel model of power supply and demand in Hawai'i. The model breaks new ground in integrating investment in generation and storage capacity with chronological operation of the system, including an account of reserves, a demand system with different interhour elasticities for different uses, and substitution between power and other goods and services. The model is open source and fully adaptable to other settings. Consistent with earlier studies, we find that dynamic pricing provides little social benefit in fossil-fuel-dominated power systems, only 2.6 to 4.6 percent of baseline annual expenditure. But dynamic pricing leads to a much greater social benefit of 8.5 to 23.4 percent in a 100 percent renewable power system with otherwise similar assumptions. High renewable systems, including 100 percent renewable, are remarkably affordable. The welfare maximizing (unconstrained) generation portfolio under the utility's projected 2045 technology and pessimistic interhour demand flexibility uses 79 percent renewable energy, without even accounting for pollution externalities. If overall demand for electricity is more elastic than our baseline (0.1), renewable energy is even cheaper and variable pricing can improve welfare by as much as 47 percent of baseline expenditure. |
| Keywords: | Renewable energy, variable pricing, storage, demand response, optimization |
| JEL: | Q41 Q42 Q53 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2018-2&r=env |
| By: | Mehling, Michael A. (Massachusetts Institute of Technology); Metcalf, Gilbert E. (Tufts University); Stavins, Robert N. (Harvard University) |
| Abstract: | The Paris Agreement has achieved one of two key necessary conditions for ultimate success – a broad base of participation among the countries of the world. But another key necessary condition has yet to be achieved – adequate collective ambition of the individual nationally determined contributions. How can the climate negotiators provide a structure that will include incentives to increase ambition over time? An important part of the answer can be international linkage of regional, national, and sub-national policies, that is, formal recognition of emission reductions undertaken in another jurisdiction for the purpose of meeting a Party’s own mitigation objectives. A central challenge is how to facilitate such linkage in the context of the very great heterogeneity that characterizes climate policies along five dimensions – type of policy instrument; level of government jurisdiction; status of that jurisdiction under the Paris Agreement; nature of the policy instrument’s target; and the nature along several dimensions of each Party’s Nationally Determined Contribution. We consider such heterogeneity among policies, and identify which linkages of various combinations of characteristics are feasible; of these, which are most promising; and what accounting mechanisms would make the operation of respective linkages consistent with the Paris Agreement. |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp17-042&r=env |
| By: | Megan Kung; Dennis Guignet; Patrick Walsh |
| Abstract: | Hedonic property value methods typically examine the effect of water quality on home prices by focusing on waters nearest a home. While this captures any aesthetic values households may hold for water quality improvements, it may not fully reflect recreational values, particularly for nearby residents that do not live on the waterfront. This study is the first to compare the conventional approach of examining how property prices vary with the quality of waters closest to a home, versus water quality levels at the closest point of access for recreation (i.e., the beach). Using spatial econometric models, we conduct a hedonic analysis of residences within five kilometers of the Long Island Sound. Due to an aging infrastructure, high levels of precipitation often lead to sewage overflows, resulting in high counts of enterococcus – a bacterial indicator of fecal pollution. We also estimate the effect of subsequent beach closures, which we posit as an alternative and more salient signal of local water quality to residents. In line with previous literature, we find that enterococcus levels at waters nearest a home negatively affect home prices within 1 kilometer. However, this effect becomes insignificant when controlling for levels at the nearest beach. In contrast, enterococcus at the closest beach yields a negative 0.03% to 0.02% elasticity that extends 2.5 km. Controlling for beach closures suggests negative effects as far as 3.5 km from beaches. Our findings demonstrate that the impact of water quality on home prices may extend further than previously suggested by the literature, at least at large iconic waterbodies like the Sound. |
| Keywords: | beach, enterococcus, hedonic, Long Island Sound, property value, water quality |
| JEL: | Q24 Q51 Q53 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201708&r=env |
| By: | Janser, Markus (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | "The transition towards a greener, less carbon-intensive economy leads to a growing demand for green products, services and business processes. In theory, this trend should lead to a greening of jobs, i.e. to an increasing share of environmentally friendly requirements within occupations (greening of occupations) and to a rising labor demand for employees in these occupations (greening of employment). Due to a lack of measures, there is no empirical evidence on the relationship between the greening of jobs and the real labor market development so far. To fill this gap, the paper measures, describes and analyzes the greening of jobs and its associations with employment and wage growth. The cornerstone of this paper is the new task-based 'greenness-of-jobs index' (goji). The goji is derived by performing text mining algorithms on yearly data from 2006 and 2011 to 2016 of BERUFENET, an occupational data base provided by the German Federal Employment Agency. The descriptive results of the paper show that there is a notable greening of jobs which varies strongly between sectors and regions. The econometric analysis is based on employment register data from 2011 to 2016. The estimation results reveal that the overall level of greenness of occupations is positively correlated with employment growth. Furthermore, the increase of greenness is related to a slight increase in wage growth." (Author's abstract, IAB-Doku) ((en)) Additional Information Text mining and descriptives |
| JEL: | J23 J24 O33 Q55 R23 |
| Date: | 2018–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201814&r=env |
| By: | Volker Meyer (Helmholtz-Zentrum für Umweltforschung − UFZ); Reimund Schwarze (Europa University Viadrina and Helmholtz Centre for Environmental Research (UFZ)) |
| Abstract: | Assessing the economic impacts of flooding is a crucial part of identifying appropriate flood risk management options as required by the EU flood management directive. This chapter describes methods for assessing economic flood damage. To begin, some fundamental issues are discussed: Which types of economic flood damage should be taken into account? What kind of information is necessary in general for assessing flood damage in monetary terms and what is the general procedure for calculating economic flood damage? Having clarified these questions, the methodological challenges posed by economic flood risk management are described. This includes the indirect impacts, i.e. induced loss to customers and suppliers of good and services damaged by floods, and intangible impacts, i.e. the impacts of flooding on mortality and morbidity and the environment. Ways to deal with the persistent uncertainty in damage and risk assessments are discussed in the following chapter. The findings in this chapter will be evaluated in relation to flood risk management practices in Germany, based on examples from Saxony. |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:euv:dpaper:30&r=env |
| By: | Dominic Richardson; UNICEF Office of Research - Innocenti |
| Abstract: | This synthesis report, ‘Families, Family Policy and the Sustainable Development Goals (SDGs): Key Findings’ explores how the role of families, and family policies from around the world, can contribute to meeting the SDG targets. Given the key role families and family policies play in determining social progress, and in view of the national and international focus on meeting the SDGs by 2030, the timing of this publication is opportune. The report summarizes evidence across the six SDGs that cover poverty, health, education, gender equality, youth unemployment, and ending violence. It highlights important issues that policy makers may wish to consider when making future policies work for families, and family policies work for the future. Given the broad scope of the SDG ambitions, a key contribution of this work is to map how the successes of family-focused policies and programmes in one SDG have been successful in contributing to positive outcomes in other SDG goal areas. |
| Keywords: | employment; family; family education; family health; family policy; gender equality; poverty elimination; sustainable development; violence; |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ucf:inorer:inorer948&r=env |
| By: | Lin, Yu-Hsuan |
| Abstract: | This study examines the relationship between individual altruistic attitudes and the incentives of participating in a climate coalition by using a laboratory experiment. A dominant strategy solution design assigns players into two roles in the game: critical and non-critical players. The critical players have a weakly dominant strategy of joining and are essential to an effective coalition. On the other hand, the non-critical players have a dominant strategy of not-joining. The theory suggests that strong altruism would lead non-critical players to join a coalition. The experimental evidence supports that coalitions are therefore enlarged from the self-interest prediction. However, the result indicates that the individual incentives for participation seem to be negatively correlated with altruistic attitudes. It implies the stronger the altruistic tendencies the less likely individuals are to join a coalition. In other words, coalition formation may be expanded by egoistic players. |
| Keywords: | International environmental agreement, social preference, altruism, experimental design |
| JEL: | C91 D64 H41 Q54 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86484&r=env |
| By: | Tatyana Bulavskaya (The Netherlands Organisation for Applied Scientific Research (TNO)); Frédéric Reynés (Observatoire français des conjonctures économiques) |
| Abstract: | This study evaluates the economic impact of a shift towards renewable electricity mix in the Netherlands using the neo-Keynesian CGEM ThreeME (Multi-sector Macroeconomic Model for the Evaluation of Environmental and Energy policy). This scenario has been inspired by the Urgenda's report ‘Energy 100% Sustainable in the Netherlands by 2030’, which have been quantified using the Energy Transition Model (ETM) developed by Quintel. Using the output of the ETM regarding the change in the electricity generation shares as input in ThreeME, we derive the impact in terms of key economic variables (GDP, employment, investment, value-added, prices, trade, tax revenue, etc.). We find that transition to renewable energy may have a positive impact on the Dutch economy, creating almost 50 000 new jobs by 2030 and adding almost 1% of gross domestic product |
| Keywords: | Energy transition; Climate policy; Energy-economy modeling; Netherlands |
| JEL: | E12 E17 E27 E47 D57 D58 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/11505qn4ak95irt0cafaeim81j&r=env |
| By: | Mestre-Ferrandiz, J.; Berdud, M.; Towse, A. |
| Abstract: | The CRA Report has an underlying assumption that the EU is as globally competitive in generics and biosimilars as it is in innovative products. There is no evidence to support this. The correct industrial strategy for the EU may well be to focus on the development, manufacture and export of innovative products, rather than on lower value generics where EU global competitiveness appears to be weaker. The CRA report makes estimates of effect using a number of assumptions, data and calculations that we do not find to be correct or which are not explained. Until these anomalies are addressed, our view is that the CRA analysis is not a fit basis for an impact assessment to guide policy. |
| Keywords: | Economics of Industry |
| JEL: | I1 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ohe:conrep:001944&r=env |
| By: | Khobai, Hlalefang |
| Abstract: | Knowledge of the direction of causality between electricity generation from renewables and economic growth is essential if energy policies which will support economic growth of the country are to be devised. This study explores the causal relationship between electricity generated from the renewables and economic growth in South Africa using carbon dioxide emissions, employment and capital as the additional variables. The study uses the Johansen co-integration model to detect the long run relationship between the variables and the Vector Error Correction Model (VECM) to determine the direction of causality. The findings from Johansen co-integration evidenced a long run relationship between electricity generated from renewables, economic growth, carbon dioxide emissions, employment and capital. The VECM revealed unidirectional causality running from electricity generated from renewables to economic growth. The findings indicate that electricity generation from renewables enhance economic growth. Therefore, the government should make appropriate efforts to select energy policies that do not negatively affect economic growth. |
| Keywords: | Electricity generation, carbon dioxide emissions, economic growth |
| JEL: | C32 D04 Q01 Q42 Q47 |
| Date: | 2018–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86485&r=env |
| By: | - |
| Abstract: | Dans la continuité des efforts que la Commission économique pour l’Amérique latine et les Caraïbes (CEPALC) a déployés en faveur de l’égalité depuis 2010, et conformément à l’objectif de ne laisser personne en arrière exprimé dans le Programme de développement durable à l’horizon 2030, ce document analyse les mécanismes par lesquels l’inégalité réduit l’efficacité dynamique des économies de l’Amérique latine et des Caraïbes. Cette étude examine et mesure les effets de l’inégalité en matière d’accès à la santé et à l’éducation sur la productivité et les revenus, ainsi que les conséquences de l’inégalité des chances résultant d’une discrimination fondée sur le sexe ou le statut ethno-racial. On y aborde également la façon dont ces inégalités se reflètent dans le territoire, les infrastructures et la dynamique urbaine, générant des coûts non seulement en termes de productivité, mais aussi sur le plan de l’inefficacité énergétique et de la dégradation de l’environnement, facteurs qui compromettent le potentiel de développement des générations actuelles et futures. Les restrictions imposées par l’inégalité sur l’innovation et la créativité sont d’autant plus intenses qu’elles sont intériorisées dans la culture des agents, donnant naissance à une culture du privilège dans laquelle les nombreux biens et droits publics ne sont pas impersonnels et ne sont pas accessibles à une partie importante de la population. Cette situation affaiblit la confiance dans les interactions sociales et les institutions démocratiques. Dans ce document, la CEPALC propose des orientations stratégiques visant à accroître l’efficacité dynamique des économies d’Amérique latine et des Caraïbes sur la base de l’égalité. Le développement des capacités et la construction d’États providence sont les pièces maîtresses d’un nouveau paradigme de développement dans lequel la révolution technologique est mise au service d’une croissance à faible intensité de carbone et à forte intensité technologique. Dans ce contexte, il est urgent d’accroître les investissements publics et privés autour d’une forte impulsion environnementale, permettant de diversifier la structure productive et de réduire l’hétérogénéité structurelle, compte tenu de la rapidité du changement qui transforme l’économie mondiale et de l’incertitude accrue qui l’accompagne. |
| Keywords: | DESARROLLO ECONOMICO, DESARROLLO SOCIAL, IGUALDAD, GLOBALIZACION, CRECIMIENTO ECONOMICO, POBREZA, DISTRIBUCION DEL INGRESO, PRODUCTIVIDAD, CIUDADES, MEDIO AMBIENTE, DESARROLLO REGIONAL, ECONOMIA DEL BIENESTAR, GOBERNABILIDAD, DEMOCRACIA, ECONOMIC DEVELOPMENT, SOCIAL DEVELOPMENT, EQUALITY, GLOBALIZATION, ECONOMIC GROWTH, POVERTY, INCOME DISTRIBUTION, PRODUCTIVITY, CITIES, ENVIRONMENT, REGIONAL DEVELOPMENT, WELFARE ECONOMICS, GOVERNANCE, DEMOCRACY |
| Date: | 2018–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:c39025:43578&r=env |
| By: | - |
| Abstract: | Dando continuidade à ênfase que a Comissão Econômica para a América Latina e o Caribe (CEPAL) atribui à igualdade desde 2010, e em concordância com o propósito de não deixar ninguém para trás, expressado na Agenda 2030 para o Desenvolvimento Sustentável, este documento analisa os mecanismos mediante os quais a desigualdade reduz a eficiência dinâmica das economias da América Latina e do Caribe. Analisa e mede os efeitos da desigualdade de acesso à saúde e à educação sobre a produtividade e a renda, bem como as consequências da desigualdade de oportunidades causada pela discriminação em razão do gênero ou da condição étnico- racial. Também examina como estas desigualdades se refletem no território, na infraestrutura e na dinâmica urbana, gerando custos não só em termos de produtividade, mas também de ineficiência energética e deterioração do meio ambiente, o que compromete as possibilidades de desenvolvimento das gerações atuais e futuras. As restrições impostas pela desigualdade à inovação e à criatividade são mais intensas porque se internalizam na cultura dos agentes, dando lugar a uma cultura do privilégio em que os muitos bens públicos e direitos não são impessoais e parte importante da população não tem acesso a eles. Isso enfraquece a confiança nas interações sociais e nas instituições democráticas. Neste documento a CEPAL propõe orientações estratégicas para aumentar a eficiência dinâmica das economias latino-americanas e caribenhas com base na igualdade. O desenvolvimento de capacidades e a construção de Estados de bem-estar são componentes centrais de um novo paradigma de desenvolvimento em que a revolução tecnológica seja colocada a serviço de uma trajetória de crescimento de baixo carbono e intensivo em tecnologia. Nesse contexto, aumentar o investimento público e privado em torno de um grande impulso ambiental, mediante o qual se diversifique a estrutura produtiva e se reduza a heterogeneidade estrutural, é uma tarefa urgente ante a velocidade das mudanças que transformam a economia global e o aumento da incerteza que as acompanha. |
| Keywords: | DESARROLLO ECONOMICO, DESARROLLO SOCIAL, IGUALDAD, GLOBALIZACION, CRECIMIENTO ECONOMICO, POBREZA, DISTRIBUCION DEL INGRESO, PRODUCTIVIDAD, CIUDADES, MEDIO AMBIENTE, DESARROLLO REGIONAL, ECONOMIA DEL BIENESTAR, GOBERNABILIDAD, DEMOCRACIA, ECONOMIC DEVELOPMENT, SOCIAL DEVELOPMENT, EQUALITY, GLOBALIZATION, ECONOMIC GROWTH, POVERTY, INCOME DISTRIBUTION, PRODUCTIVITY, CITIES, ENVIRONMENT, REGIONAL DEVELOPMENT, WELFARE ECONOMICS, GOVERNANCE, DEMOCRACY |
| Date: | 2018–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:c39025:43569&r=env |
| By: | Mai Miyamoto (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University) |
| Abstract: | This study investigates the trade flows of renewable energy products, focusing on the role of technological development. We estimate a gravity model that explains the trade flows among 35 OECD countries from 1996 to 2010 using patent counts as a proxy for technology level. We compare the pattern of the trade flows between two representative renewable energy products: those related to wind and solar electricity generation. The results suggest that technological level is correlated with trade flows and this correlation is weaker in the model for solar products than that for wind products. When we include China in the sample in estimation, the technological level of solar energy is no longer correlated with the exports of solar power products. |
| Keywords: | Renewable energy products; Trade; Technological development; Patent; Gravity model |
| JEL: | F14 O33 Q55 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1819&r=env |
| By: | Chris Dockins; Kelly B. Maguire; Steve Newbold; Nathalie B. Simon; Alan Krupnick; Laura O. Taylor |
| Abstract: | Benefit-cost analyses of environmental, health, and safety regulations often rely on an estimate of the “value of statistical life,” or VSL, to calculate the aggregate benefits of human mortality risk reductions in monetary terms. The VSL represents the marginal rate of substitution between mortality risk and money, and while well-understood by economists, to many non-economists, decision-makers, media professionals, and others, the term resembles obfuscated jargon bordering on the immoral. This paper describes a series of seven focus groups in which we applied a systematic approach for identifying and testing alternatives to the VSL terminology. Our objective was to identify a term that better communicates the VSL concept. Specifically, a list of 17 alternatives to the VSL term was developed and tested in focus groups that culminated in a formal ranking exercise. Using a round-robin tournament approach to analyze the data, and our qualitative judgments, we identify “value of reduced mortality risk” as the dominant replacement term among the alternatives tested. |
| Keywords: | value of statistical life, mortality risk valuation, terminology, focus group |
| JEL: | J17 Q51 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201801&r=env |
| By: | Neligan, Adriana |
| Abstract: | Two years after adopting the Circular Economy Package, EU institutions finally agreed on new EU waste rules. Despite lower recycling targets as originally envisaged, most countries still have to push recycling to meet the goals. A single method of determining recycling rates was also decided, but an exemption will continue to allow for disparate recycling rates. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:282018&r=env |
| By: | Cienna Thomas; Sam Dehaeck; Anne De Wit |
| Abstract: | Dissolution of CO2 into saline aquifers can lead to the development of buoyancy-driven convection in the brine which enhances the efficiency of CO2 transfer. We analyze here experimentally the onset, development and dynamic properties of such convective fingering of CO2 into water, Antarctic water and in NaCl salt solutions of various concentrations to study the influence of varying the salt concentration on the buoyancy-driven convective dynamics. The convective dissolution pattern is visualized with the help of a schlieren imaging system sensitive to density gradients in the solution. We quantify the growth of convective fingers by performing, among others, a Fourier analysis of the pattern formation at early times and qualitatively study the nonlinear spatio-temporal dynamics at later times. In agreement with theoretical predictions, we find that increasing the salt concentration hinders the development of the instability as it delays the onset of convection, increases the wavelength of the convective pattern, decreases the growth rate and velocity of fingers as well as their interactions. Our experimental results provide quantitative data that should help the benchmarking of theoretical studies. |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/270512&r=env |
| By: | Spenser Robinson; Robert Simons; Eunkyu Lee |
| Abstract: | This paper reports on the development and potential implementation of a new green office building rating index. It is intended to provide a market-driven green scoring for US office buildings that includes buildings below the level of LEED. The index data are drawn from demand-side data from tenant surveys for individual green office buildings features and from supply-side data from hedonic analysis of rent rolls. The index also includes qualitative input from institutional industry leaders on how it could be useful to them in practice in market their somewhat green office space to potential tenants. This paper details the development and first steps towards implementation of the scoring system. A variety of proposed models, including some that separate out LEED and non-LEED buildings, are analyzed, discussed, and optimized, and tested on a captive sample of 198 US office buildings. A reasonable model shows that about one-third of the non-LEED buildings score higher on this scoring system than lower-scoring LEED buildings. This indicates a market may be present for this type of index. |
| Keywords: | Green; LEed; Office; Sustainability; Sustainable Real Estate |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_15&r=env |
| By: | Jonathan Colmer |
| Abstract: | Temperature-driven reductions in the demand for agricultural labor are associated with increases in the share of workers engaged in manufacturing, suggesting that the ability of non-agricultural sectors to absorb workers may play a key role in attenuating the economic consequences of weather-driven changes in agricultural productivity. Exploiting firm-level variation in the propensity to absorb these workers, I find that this reallocation is associated with relative expansions in manufacturing activity in exible labor market environments. Counter-factual estimates suggest that in the absence of labor reallocation the aggregate consequences of temperature increases would be up to 40% higher. |
| Keywords: | labor reallocation, agricultural productivity, labor regulation, industrial production |
| JEL: | O13 Q54 J62 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1544&r=env |
| By: | Michal Gluszak; Iwona Forys; Jan Konowalczuk |
| Abstract: | The externalities resulting from airport operation has been a subject of empirical investigation in economic literature, at least since 1960s. Most of the research focused on negative relation between airport noise and property values. The results were summarized in meta-analysis of 23 previous studies based on North American data by Nelson (2004) – suggesting significant noise discount, but also country level differences.The study extends the scope of analysis, covering airports outside United States and Canada (mainly in Europe). Additionally, in the paper we discuss the joint effect of airport noise and land use restrictions enforced in selected areas around the airport on property values. We argue that the nature of land use controls related to airport operation can significantly affect the relation between noise and property values, and should be controlled for in order to get unbiased results in hedonic models. |
| Keywords: | airport noise; land use controls; meta-analysis; Property Values |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_244&r=env |
| By: | Alain Coen; Patrick Lecomte; Dorra Abdelmoula |
| Abstract: | The aim of this paper is to compare the financial performance of «green» and «non-green» US REITs from January 2010 to February 2016 using risk-adjusted performance measures based on multi-factor models. First, we use performance measures (including the Generalized Treynor Ratio) able to capture the variety of systematic risk sources related to real estate. Second, we implement unbiased estimators to correct for the econometric bias induced by errors-in-variables (EIV) in asset pricing models. Third, to check the robustness of our results we apply the methodology of Getmansky, Lo and Makarov to deal with the problem of illiquidity. With these different adjustments, we analyze the relative performance of «green» US REITs. Our results shed a new light on risk-adjusted performance measures of REITs and report that «non-green» US REITs tend to perform better during this period. |
| Keywords: | Asset pricing models; Illiquidity; Portfolio greenness; REITs; REITs performance |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_339&r=env |
| By: | Christian Elleby (Department of Food and Resource Economics, University of Copenhagen); Frank Jensen (Department of Food and Resource Economics, University of Copenhagen) |
| Abstract: | Part of the existing economic literature on fisheries regulation focuses on addressing several objectives with one instrument. In an extension of this literature we investigate the following three objectives of fisheries regulation: A) Correcting a stock externality; B) Raising public funds, and; C) Solving problems with uncertainty. We analyze the implications of combining a non-linear tax on harvest and individual transferable quotas to address these three objectives and argue that a tax alone can fulfill all three objectives simultaneously. This result can be related to the theory on a first-best and a second-best optimum which state that the number of objectives must be identical to the number of instruments if a first-best optimum shall be reached. We show that one instrument (a tax based on the size of the harvest in this case) is enough to achieve a first-best optimum. |
| Keywords: | Stock externalities, double-dividend, uncertainty, taxes, quotas |
| JEL: | Q22 D80 H20 H23 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2018_05&r=env |
| By: | Tcheta-Bampa, Albert; Kodila-Tedika, Oasis |
| Abstract: | We show that if Africa is subject to the curse of natural resources it is because this continent has generally been organized since the European colonization on the basis of extractive institutions that determines the strong conflicts between the economic preferences of the political decision-makers and those of the rest of society. In particular, we show that the quality of institutions in African countries is fundamentally determined by historical factors. The main originality is that it uses as an instrumental variable, the institutional path dependence that ensures that there is a curse of natural resources only in countries where the extractive institutions of colonialism have been reproduced. We provide evidence that the overall impact of institutions and natural resource dependence on economic performance is critically dependent on past events as these determine the incentive structure and future institutional choices. The phenomenon of the curse is decreasing in Africa as we move away from the end of the Cold War. |
| Keywords: | Colonialisme européen, institutions, ressources naturelles, malédiction des ressources, droits de propriété, Indépendance, croissance économique. |
| JEL: | B2 B22 C12 O1 O17 O55 P14 |
| Date: | 2018–05–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86511&r=env |
| By: | Tcheta-Bampa, Tcheta-Bampa; Kodila-Tedika, Oasis |
| Abstract: | This article articulates Acemoglu-Robinson's theory of inclusive and exclusive institutions to the theory of the effects of natural resources on the incentives of political elites to implement good institutions for development. If Africa is subject to the curse of natural resources it means that this continent has generally been organized on the basis of extractive institutions that have determined the conflicts between political elites, between border countries and between the great world powers. On this basis, this article proposes an original test over the period 1985-2010 for 30 African countries linking institutional quality to an indicator of dependence on natural resources and different control variables. The phenomenon of the curse is decreasing in Africa as we move away from the end of the Cold War. |
| Keywords: | institutions, ressources naturelles, malédiction des ressources, droits de propriété, croissance économique, Guerre froide |
| JEL: | B22 C12 O17 O55 P14 |
| Date: | 2018–05–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86510&r=env |