|
on Environmental Economics |
|
Issue of 2018‒08‒13
thirty-one papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Pasche, Markus |
| Abstract: | Taking the Ecological Footprint (EF) as a broad measure of environmental impact of economic activity, there is substantial progress in decoupling economic output from environmental impact. However, this progress has been too slow to compensate the negative environmental impact of economic growth. But since mid of 2000s the EF declines in the OECD countries, and the global EF increase is driven by emerging countries, i.e. China. However, the decline could be mainly explained by a GDP growth slowdown. To achieve a significant reduction (comparable to the goals of the Paris Agreement) a further slowdown could be necessary. Moreover, the paper investigates the role of globalization because the greening of production in OECD countries could be due to a shift of dirty industries to non-OECD countries. Thus OECD countries are net importers of the EF embodied in traded goods. However, the amount of net EF imports is too small and not correlated with the eco-productivity of production. As ecological productivity is strongly correlated with enforced environmental policy, globalization could be used as a vehicle to promote eco-productivity also in non-OECD countries. |
| Keywords: | Environmental Footprint, Carbon Footprint, green growth, degrowth, eco-productivity, globalization, environmental policy |
| JEL: | F18 Q53 Q56 Q58 |
| Date: | 2018–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87726&r=env |
| By: | Anthony J. Webster |
| Abstract: | A successful response to climate change needs vast investments in low-carbon research, energy, and sustainable development. Governments can drive research, provide environmental regulation, and accelerate global development, but the necessary low-carbon investments of 2-3% GDP have yet to materialise. A new strategy to tackle climate change through consumer and government action is outlined. It relies on the tactics of ethical investments for sustainable development and low-carbon energy, and voluntary donations for a low-carbon fund to allow adaption to climate change. Together these enable a global response through individual actions and investments. With OECD household savings worth over 5% GDP, ethical savings alone have considerable potential. |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1807.03364&r=env |
| By: | Marsiglio, Simone; Privileggi, Fabio (University of Turin) |
| Abstract: | We develop a multicriteria approach, based on a scalarization technique, in order to analyze the trade off between economic growth and environmental outcomes in a framework in which the economy and environment relation is bidirectional. On the one hand, economic growth by stimulating production activities gives rise to emissions of pollutants which deteriorate the environment. On the other hand, the environment affects economic activities since pollution generates a production externality determining how much output the economy can produce and reducing welfare. In this setting we show that optimality dictates an initial overshooting followed by economic degrowth and rising pollution. This implies that independently of the relative importance of economic and environmental factors, it is paradoxically optimal for the economy to asymptotically reach the maximum pollution level that the environment is able to bear. |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201813&r=env |
| By: | Gabriel Felbermayr; Jasmin Katrin Gröschl; Mark Sanders; Vincent Schippers; Thomas Steinwachs |
| Abstract: | Climate research suggests that global warming will lead to more frequent and more extreme natural disasters. Most disasters are local events with effects on local economic activity. Hence, assessing their economic impacts with the help of econometric country-level analysis may lead to biased results. Moreover, correct identification is further complicated by the possibility that local shocks shift production and consumption to neighboring locations. In this paper, annual night-time light emission data covering about 24,000 grid cells for the years 1992-2013 are matched to geocoded information on meteorological and geological events. Spatial econometric panel methods are applied to account for interdependencies between locations. Interpreting variation in light emissions as reflecting changes in economic activity, findings convey evidence for pronounced local average treatment effects and strong spatial spillovers, particularly for weather shocks. Moreover, substantial heterogeneity across income groups and regions is identified. |
| Keywords: | natural disaster and weather shocks, night-time light emission, spatial spillovers, grid cell analysis |
| JEL: | F15 O18 O44 Q54 R12 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7146&r=env |
| By: | Grant Allan (Department of Economics, University of Strathclyde); David Comerford (Department of Economics, University of Strathclyde); Peter McGregor (Department of Economics, University of Strathclyde) |
| Abstract: | Natural capital encompasses those assets which are provided by nature and which are valued by economic actors. As such, there is a clear analogy between natural and other assets, such as physical capital, which are routinely included in models of national economies. However, the valuation of natural assets, to the extent that they are included in such economic models, is typically wrapped up in physical capital along with land values or not valued at all. This could be simply a measurement problem - natural capital might be difficult to appropriately disaggregate from other capital - or because they provide non-market goods which are not included within traditional measures of economic output. The purpose of this paper is to set out - both conceptually and practically - how natural capital can be added to a computable general equilibrium (CGE) model. We focus on: the conceptual differences that should be reflected in such an extension; the challenges of implementing the extension in practice; and identifying the value added generated by an appropriately augmented model. We explore the empirical implementation of our approach through the addition of carbon emissions and an agricultural biomass ecosystem service flow to our CGE model of the Scottish economy. This working paper specifies this CGE model development, but does not go as far as fully implementing it in the CGE model. When fully implemented in the context of a CGE with a disaggregated agriculture sector, this will allow us simultaneously to track the impact of disturbances, including policy changes, on the economy and the environment and therefore on sustainable development. In the longer-term comprehensive coverage of natural capital stocks and ecosystem services will allow us to track the impact of disturbances, including policy interventions, on Green GDP and Genuine Savings, as well as on aggregate and sectoral economic activity, energy use and emissions. |
| Keywords: | Natural capital, computable general equilibrium models |
| JEL: | Q57 Q1 C68 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:str:wpaper:1808&r=env |
| By: | Fujii, Hidemichi; Iwata, Kazuyuki; Chapman, Andrew; Kagawa, Shigemi; Managi, Shunsuke |
| Abstract: | This study analyzed the relationship between urban CO2 emissions and economic growth applying the environmental Kuznets curve hypothesis. The objective of this study is to investigate how urban CO2 emissions and their composition have changed with urban economic growth, depending on city characteristics, using a dataset of metropolitan areas. We obtained data for 276 cities in 26 countries for the years 2000, 2005, and 2008. The dataset includes urban CO2 emissions, GDP, and population. Additionally, data regarding compact city variables are applied to determinants analysis using an econometric approach. The results demonstrate an inverted U-shape relationship between urban CO2 emissions and urban economic growth. Additionally, an inverted U-shape relationship is observed for the transport and residential & industry sectors. However, the turning points of each inverted U-shape curve varies. This result implies that we can better understand urban policies for reducing urban CO2 emissions by considering the characteristics of each sector. |
| Keywords: | urban CO2 emissions, environmental Kuznets curve, compact city, metropolitan area |
| JEL: | O18 Q54 Q56 R00 |
| Date: | 2018–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87859&r=env |
| By: | Manthos D. Delis (Montpellier Business School); Kathrin de Greiff (University Zurich); Steven Ongena (University of Zurich, Swiss Finance Institute, KU Leuven, and Centre for Economic Policy Research (CEPR)) |
| Abstract: | Does neglecting the possibility that fossil fuel reserves become “stranded” result in a “carbon bubble”, i.e., an overvaluation of fossil fuel firms? To address this question, we study whether banks price the climate policy risk. We hand collect global data on corporate fossil fuel reserves, match it with syndicated loans, and subsequently compare the loan rate charged to fossil fuel firms — along their climate policy exposure — to non-fossil fuel firms. We find that before 2015 banks did not price climate policy risk. After 2015, however, the risk is priced, especially for firms holding more fossil fuel reserves. We also provide some evidence that “green banks” charge marginally higher loan rates to fossil fuel firms. |
| Keywords: | Environmental Policy, Climate Policy Risk, Loan Pricing, Carbon Bubble, Fossil Fuel Firms, Stranded Assets |
| JEL: | G2 Q3 Q5 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp1810&r=env |
| By: | Sebastian Acevedo Mejia; Mico Mrkaic; Natalija Novta; Evgenia Pugacheva; Petia Topalova |
| Abstract: | Global temperatures have increased at an unprecedented pace in the past 40 years. This paper finds that increases in temperature have uneven macroeconomic effects, with adverse consequences concentrated in countries with hot climates, such as most low-income countries. In these countries, a rise in temperature lowers per capita output, in both the short and medium term, through a wide array of channels: reduced agricultural output, suppressed productivity of workers exposed to heat, slower investment, and poorer health. In an unmitigated climate change scenario, and under very conservative assumptions, model simulations suggest the projected rise in temperature would imply a loss of around 9 percent of output for a representative low-income country by 2100. |
| Date: | 2018–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:18/144&r=env |
| By: | Grant Allan (University of Strathclyde); David Comerford (University of Strathclyde); Peter McGregor (University of Strathclyde) |
| Abstract: | Encouraging consumers to shift their diets towards to a lower meat/lower calorie alternative has been the focus of food and health policies across the world. The economic impact on regions has been less widely examined, but is likely to be significant, where agricultural and food activities are important for the host region. In this study we use a multi-sectoral modelling framework to examine the environmental and economic impacts of a dietary change, and illustrate this using a detailed model for Scotland. We find that if household food and drink consumption follows healthy eating guidelines, it would reduce both Scotland’s “footprint†and “territorial†emissions, and yet may be associated with positive economic impacts, generating a “double dividend†for both the environment and the economy. Furthermore, the likely benefits to health suggest the potential for a “triple dividend†. The economic impact however depends critically upon how households use the income previously spent on higher calorie diets. |
| Keywords: | Diet, emissions, economic impact, Scotland |
| JEL: | Q11 Q18 R11 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:str:wpaper:1807&r=env |
| By: | Joseph S. Shapiro (Cowles Foundation, Yale University); David A. Keiser (Iowa State University & NBER) |
| Abstract: | Since the 1972 U.S. Clean Water Act, government and industry have invested over $1 trillion to abate water pollution, or $100 per person- year. Over half of U.S. stream and river miles, however, still violate pollution standards. We use the most comprehensive set of ?les ever compiled on water pollution and its determinants, including 50 million pollution readings from 240,000 monitoring sites and a network model of all U.S. rivers, to study water pollution’s trends, causes, and welfare consequences. We have three main ?ndings. First, water pollution concentrations have fallen substantially. Between 1972 and 2001, for example, the share of waters safe for ?shing grew by 12 percentage points. Second, the Clean Water Act’s grants to municipal wastewater treatment plants, which account for $650 billion in expenditure, caused some of these declines. Through these grants, it cost around $1.5 million (2014 dollars) to make one river-mile ?shable for a year. We ?nd little displacement of municipal expenditure due to a federal grant. Third, the grants’ estimated e?ects on housing values are smaller than the grants’ costs; we carefully discuss welfare implications. |
| Keywords: | Clean Water Act, Pollution regulation, Water quality, Cost benefit analysis, Cost effectiveness analysis, Hedonic models, Fiscal federalism, Infrastructure |
| JEL: | H23 H54 H70 Q50 R31 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2070r&r=env |
| By: | Jane L. Harrison; Alexandra Naumenko; John C. Whitehead |
| Abstract: | We conducted an internet survey with an opt-in panel of over 2000 respondents from Atlantic Coast states. Respondents were placed in hypothetical situations in which they voted on increased menhaden fishery quotas with varying changes in ecosystem impacts. The motivation for the vote was to better inform the Atlantic States Marine Fisheries Commission about the opinions of the general public in the region. We found that increases in ex-vessel price increased the probability that a respondent would vote in favor of a quota increase. After accounting for both stated and inferred attribute non-attendance we found that increases in menhaden quotas and commercial fishing jobs increased the probability that a respondent would vote in favor of a quota increase. Increased quotas that make water quality worse and negatively affect game fish and shore bird populations led to a decrease in the probability of a vote for increased quotas. Key Words: |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:18-10&r=env |
| By: | Klößner, Stefan; Pfeifer, Gregor |
| Abstract: | We examine the impact of the EUR 5 billion German Cash-for-Clunkers program on vehicle registrations and respective CO2 emissions. To construct proper counterfactuals, we develop the multivariate synthetic control method using time series of economic predictors (MSCMT) and show (asymptotic) unbiasedness of the corresponding effect estimator under quite general conditions. Using cross-validation for determining an optimal specification of predictors, we do not find significant effects for CO2 emissions, while the stimulus’ impact on vehicle sales is strongly positive. Modeling different buyer subgroups, we disentangle this effect: 530,000 purchases were simply windfall gains; 550,000 were pulled forward; and 850,000 vehicles would not have been purchased in absence of the subsidy, worth EUR 17 billion. |
| Keywords: | Generalized Synthetic Controls; Cross-Validation; Cash-for-Clunkers; CO2 Emissions |
| JEL: | C31 C32 C52 D04 D12 H23 H24 L62 Q51 |
| Date: | 2018–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88175&r=env |
| By: | Baker, Peter; Hone, Thomas; Reeves, Aaron; Avendano, Mauricio; Millett, Christopher |
| Abstract: | Inequalities in infant mortality rates (IMRs) are rising in some low- and middle-income countries (LMICs) and decreasing in others, but the explanation for these divergent trends is unclear. We investigate whether government expenditures and redistribution are associated with reductions in inequalities in IMRs. We estimated country-level fixed-effects panel regressions for 48 LMICs (142 country observations). Slope and Relative Indices of Inequality in IMRs (SII and RII) were calculated from Demographic and Health Surveys between 1993 and 2013. RII and SII were regressed on government expenditure (total, health and non-health) and redistribution, controlling for gross domestic product (GDP), private health expenditures, a democracy indicator, country fixed effects and time. Mean SII and RII was 39.12 and 0.69, respectively. In multivariate models, a 1 percentage point increase in total government expenditure (% of GDP) was associated with a decrease in SII of −2.468 [95% confidence intervals (CIs): −4.190, −0.746] and RII of −0.026 (95% CIs: −0.048, −0.004). Lower inequalities were associated with higher non-health government expenditure, but not higher government health expenditure. Associations with inequalities were non-significant for GDP, government redistribution, and private health expenditure. Understanding how non-health government expenditure reduces inequalities in IMR, and why health expenditures may not, will accelerate progress towards the Sustainable Development Goals. |
| JEL: | J1 |
| Date: | 2018–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:89389&r=env |
| By: | Yusuke Tateno (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | Natural resource abundance (and scarcity) has led to violence and instability, with an estimated 40-60% of civil wars after the Second World War having been triggered, funded or sustained by natural resources. Management of natural resources is therefore a critical factor in mitigating conflict risk and increasing resilience. The Asia-Pacific Countries with Special Needs Development Report 2018, which examines the multidimensional links between peace and development, highlights that better governance and effective fiscal management, particularly in the context of transparency and accountability in resource management, can result in an upward spiral of durable peace and sustainable development. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb79&r=env |
| By: | Geoffrey Jones (Harvard Business School, General Management Unit) |
| Abstract: | This working paper examines the impact of modern business enterprise on the natural environment of Latin America during the globalization waves between the nineteenth century and the present day. It argues that although global capitalism created much wealth for the region, this was at the cost of massive ecological destruction in Latin America. During the first global economy considerable wealth was created from the exploitation of natural resources for the land-owning elite in Latin America, at the cost of large-scale ecological destruction. During the Great Reversal in the mid-twentieth century, public policies aimed at "catching up" resulted in the co-proliferation of hydro-electric schemes and resulting co-creation of ecological damage by firms and governments. In the new global economy since 1980, renewed economic growth and consumerism resulted in mountains of waste in increasingly polluted mega-cities. Biodiversity and the natural environment have been challenged across the subcontinent. However there were interesting positives as these ecological horrors also created opportunities for a surprising cohort of green businesses across sectors ranging from beauty and health to eco-tourism. In the twenty first century both business and governments in the region needed to address sustainability issues far more seriously, before a point of no return was reached. |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:19-009&r=env |
| By: | Mihai, Florin-Constantin; Iatu, Corneliu; Grozavu, Adrian |
| Abstract: | The paper examines the waste management issues in the villages annexed to administrative-territorial units of the Romanian cities which have been frequently neglected by urban waste operators. The lack of waste collection services in such peri-urban communities favored the illegal waste disposal practices particularly prior to EU accession. The extension of waste collection services from main cities to such areas is compulsory in order to mitigate the environmental risks and the public health threats. The paper estimates the amounts of household waste susceptible to be uncontrolled disposed of by peri-urban villages in different geographical areas of North-East region with a particular focus on Neamt county. The paper points out that these rural settlements should receive the same attention concerning the municipal waste management services as the main urban areas. Traditional recovery of waste fractions at the household level (e.g., home composting) should be further promoted in such areas in order to avoid illegal dumping issue and to prevent the landfill of biodegradable waste as requested by EU regulations. |
| Keywords: | waste management, illegal waste dumping, peri-urban areas, pollution |
| JEL: | H76 Q53 Q56 R11 R52 R58 |
| Date: | 2018–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87955&r=env |
| By: | Diane Aubert (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Mireille Chiroleu-Assouline (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech, PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper investigates the distributional and efficiency consequences of an environmental tax reform, when the revenue from the green tax is recycled by varying labor tax rates. We build a general equilibrium model with imperfect heterogeneous labor markets, pollution consumption externalities, and non-homothetic preferences (Stone-Geary utility). We show that in the case where the reform appears to be regressive, the gains from the double dividend can be made Pareto improving by using a redistributive non-linear income tax if redistribution is initially not too large. Moreover, the increase of progressivity acts on unemployment and can moderate the trade-off between equity and efficiency. We finally provide numerical illustrations for three European countries featuring different labor market behaviors. We show that a double dividend may be obtained without worsening the initial inequalities if the green tax revenues are redistributed with a progressivity index lower for France than for Germany and UK. |
| Keywords: | Welfare analysis,Tax progressivity,Environmental tax reform,Heterogeneity,Unemployment |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01550000&r=env |
| By: | Brown, Jason P.; Coupal, Roger; Hitaj, Claudia; Kelsey, Timothy W.; Krannich, Richard S.; Xiarchos, Irene M. |
| Abstract: | In the early 2000s, the United States energy landscape began a transformation driven by a dual boom in the expansion of renewable power installations and the extraction of natural gas and oil from shale plays through hydraulic fracturing and horizontal drilling. In this paper, we discuss the multi‐level regulatory context in which these two forms of energy development occur and review how they affect local communities, environment, and infrastructure, as well as government income and spending. In comparing the two, we remark that long‐term employment effects are relatively low for both forms of development, but unconventional fossil energy development has a heightened boom/bust potential with a large influx of workers spending a short amount of time on each well before moving on. Renewable power plants on the other hand can offer a steadier stream of income and tax revenue. Renewable power plants also have longer lasting visual impacts but lower environmental risks than unconventional fossil energy development. Finally, we consider how communities will have to adapt to navigate legacy and infrastructure constraints that accompany the shift from fossil to renewable power generation and from conventional to shale oil and gas resources. |
| Keywords: | Agricultural and Food Policy, Community/Rural/Urban Development, Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2017–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usdami:260676&r=env |
| By: | Halkos, George; Zisiadou, Argyro |
| Abstract: | This paper presents the occurrences and fatalities of natural environmental hazards drawing an initial picture of concentration, if there is any. For that reason, the authors use aggregate regional tables as well as map visualizations created in R- studio. As it is shown, there appears to be a space concentration on the natural environmental hazards that need to be deeply examined with the use of advanced econometric techniques. |
| Keywords: | Biological, climatological, extra-terrestrial, geophysical, hydrological, meteorological, risk, hazard, disaster, economic damage, |
| JEL: | C63 D62 H12 I31 Q50 |
| Date: | 2018–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87936&r=env |
| By: | Andor, Mark Andreas; Frondel, Manuel; Sommer, Stephan |
| Abstract: | The production of electricity on the basis of renewable energy technologies is a classic example of an impure public good. It is often discriminatively financed by industrial and household consumers, such as in Germany, where the energy-intensive sector benefits from a far-reaching exemption rule, while all other electricity consumers are forced to bear a higher burden. Based on randomized information treatments in a stated-choice experiment among about 11,000 German households, we explore whether this coercive payment rule affects households' willingness-to-pay (WTP) for green electricity. Our central result is that reducing inequity by abolishing the exemption for the energyintensive industry raises households' WTP substantially. |
| Keywords: | stated-choice experiment,behavioral economics,fairness |
| JEL: | D03 D12 H41 Q20 Q50 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:759&r=env |
| By: | Julien Daubanes (University of Copenhagen); Pierre Lasserre |
| Abstract: | There exists no formal treatment of non-renewable resource (NRR) supply, systematically deriving quantity as function of price. We establish instantaneous restricted (fixed reserves) and unrestricted NRR supply functions. The supply of a NRR at any date and location depends not only on the local contemporary price of the resource but also on prices at all other dates and locations. Besides the usual law of supply, which characterizes the own-price effect, cross-price effects have their own law. They can be decomposed into a substitution effect and a stock compensation effect. We show that the substitution effect always dominates: A price increase at some point in space and time causes NRR supply to decrease at all other points. Our new—although orthodox—setting takes into account not only NRR supply limitations, but also the heterogeneity of NRR deposits, and the endogeneity of their development and opening. Our analysis extends to NRRs the partial-equilibrium analysis of demand and supply policies. Thereby, it provides a generalization of results about policy-induced changes on NRR markets. |
| Keywords: | Allocating reserves, Supply theory, Substitution effect, Green paradox, Spatial leakage |
| JEL: | Q38 D21 H22 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2018.09&r=env |
| By: | Giovanni Marin (Scuola Superiore Sant'Anna); Francesco Vona (Observatoire français des conjonctures économiques) |
| Abstract: | The political acceptability of climate policies is undermined by job-killing arguments, especially for the least-skilled workers. However, evidence for distributional impacts for different workers remains scant. We examine the associations between climate policies, proxied by energy prices and a stringency index, and workforce skills for 14 European countries and 15 industrial sectors over the period of 1995-2011. We find that, while the long-term decline in employment in most carbon-intensive sectors is unrelated to policy stringency, climate policies have been skill biased against manual workers and have favoured technicians and professionals. This skill bias is confirmed using a shift-share instrumental variable estimator |
| Keywords: | Climate policies; Workforce skills; Cluster analysis; Multiple exposure to structural shocks |
| JEL: | J24 Q52 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/5ahh4t5kfl8nprei89ignlk5nl&r=env |
| By: | Thomas Vallée (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes) |
| Abstract: | In this paper, we study the two well-known supposed consequences of time inconsistency: the subopti-mality of the time consistent solution, and the assuming increase of the follower's cost. To achieve such a goal, we study different dynamic Stackelberg solutions within a pollution control problem framework. This study is made under the assumption of different information structures, mainly we assume open-loop, feedback and closed-loop structures of information. Some of the numerical results may appear counterintuitive. Hence, there may exist some situations where a time consistent solution is optimal in comparison of the time inconsistent one. Moreover, the perfect discretionary solution may be beneficial to everyone. |
| Abstract: | Dans cet article, nous étudions les deux conséquences connues de l'incohérence temporelle: la sous-optimalité de la solution cohérente dans le temps et l'augmentation supposée du coût du suiveur. Pour cela, nous étudions différentes solutions dynamiques de Stackelberg dans le cadre d'un problème de contrôle de la pollution. Cette étude est faite sous l'hypothèse de différentes structures d'information, principalement nous supposons des structures d'information en boucle ouverte, en retour et en boucle fermée. Certains des résultats numériques peuvent sembler contre-intuitifs. Il peut ainsi exister certaines situations où une solution cohérente dans le temps est optimale en comparaison de celle qui est incohérente dans le temps. De plus, la solution discrétionnaire parfaite peut être bénéfique à tous. |
| Keywords: | Time inconsistency,Dynamic Stackelberg game,Pollution control,Incohérence temporelle,Jeux de Stackelberg Dynamique,Contrôle de la pollution |
| Date: | 2018–07–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01843717&r=env |
| By: | Steven D. Baker; Burton Hollifield; Emilio Osambela |
| Abstract: | In a market-based democracy, we model different constituencies that disagree regarding the likelihood of economic disasters. Costly public policy initiatives to reduce or eliminate disasters are assessed relative to private alternatives presented by financial markets. Demand for such public policies falls as much as 40% with disagreement, and crowding out by private insurance drives most of the reduction. As support for disaster-reducing policy jumps in periods of disasters, costly policies may be adopted only after disasters occur. In some scenarios constituencies may even demand policies oriented to increase disaster risk if these policies introduce speculative opportunities. |
| Keywords: | Crowding out ; Disagreement ; Disaster risk ; Government policy ; Willingness to pay |
| JEL: | G01 G18 H21 H23 |
| Date: | 2018–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2018-52&r=env |
| By: | Gramig, Benjamin M.; Widmar, Nicole J.O. |
| Abstract: | The material contained herein is supplementary to the article named in the title and published in the journal Applied Economic Perspectives and Policy (AEPP). |
| Keywords: | Environmental Economics and Policy |
| Date: | 2017–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aepapa:263577&r=env |
| By: | Estetiono, Andi; Badaruddin, Badaruddin; Asmirza, Moh. Sofian; Rujiman, Rujiman |
| Abstract: | The paper aims is to investigate the mediation effect of regional development on the relationship between community participation to sustainable transportation in the city of Medan, North Sumatra Indonesia. This research was conducted by an explanatory approach using primary data with purposive sampling technique method based on criteria of 300 respondents. Data analysis techniques used was SEM (Structural Equation Modeling). The results of this study indicate that community participation has positive influence on regional development in the city of Medan, regional development has positive direct effect on sustainable transportation in the city of Medan, community participation has positive direct effect on sustainable transportation in the city of Medan, and community participation has positive indirect effect on sustainable transportation in the city of Medan. Regional development has positive mediation effect between community participation to sustainable transportation in the city of Medan, North Sumatra Indonesia. |
| Keywords: | SEM; Regional Development; Community Participation; Sustainable Transportation |
| JEL: | H63 L91 R48 R58 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87763&r=env |
| By: | Makena Coffman (UHERO; Department of Urban and Regional Planning, University of Hawaii); Paul Bernstein (UHERO); Derek Stenclik (GE Energy Consulting); Sherilyn Wee (UHERO); Aida Arik (UHERO) |
| Abstract: | With increasing adoption of intermittent sources of renewable energy, effective integration is paramount to fully realizing societal benefits. This study asks the question, how valuable is residential real-time pricing (RTP) in comparison to time-of-use (TOU) rates to absorb increasing sources of intermittent renewable energy? We couple a detailed power sector model with a residential electricity demand response model to estimate the system and consumer benefits of these two time-varying pricing mechanisms, including greenhouse gas emissions. |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2018-6&r=env |
| By: | Tatsuyoshi Saijo (School of Economics and Management, Kochi University of Technology) |
| Abstract: | “Future Design†poses the following question: what types of social systems are necessary if we are to leave future generations sustainable natural environments and sustainable societies. One such method is using an “imaginary future generation,†and I overview the theoretical background of this method, the results of relevant laboratory and field experiments, and the nature of relevant practical applications in cooperation with several local governments. |
| Keywords: | Future design, imaginary future generation, futurability, intergenerational sustainability dilemma, time inconsistency problem |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2018-4&r=env |
| By: | Ali, Amjad; Zulfiqar, Kalsoom |
| Abstract: | Mostly economists believe that due to nonexistence of agglomeration economies, there are less chances of employment spatial distribution in an economy. Following the strands of previous literature about agglomeration special impacts, this study has uplifted the curtain from some interesting realities. This study has examined the association unemployment between natural resources agglomeration in Pakistan from 1980 to 2016. For measuring natural resources agglomeration, an index has been constructed based on coal production, oil production, forest area and agricultural land as percentage of total land area. The study has utilized autoregressive distributed lag (ARDL) method of co-integration. The results show that natural resources agglomeration, secondary school enrollment, foreign direct investment and inflation has negative and significant impact on unemployment in Pakistan. The results reveal that population is putting positive impact on unemployment in Pakistan. The study finds that natural resources agglomeration is an important factor for reducing unemployment in Pakistan. There are some other factors for agglomeration economies, i.e. local economic policies, natural resources availability and amount of manpower for employment spatial distribution in Pakistan. So efforts are needed on mega scale for exploration, proper usage and functioning of natural resources in Pakistan. |
| Keywords: | unemployment, natural resources, inflation, foreign direct investment |
| JEL: | E24 N50 P24 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87968&r=env |
| By: | Johanna Choumert (EDI - Economic Development Initiatives Limited); Pascale Phelinas (CESSMA UMRD 245 - Centre d'études en sciences sociales sur les mondes africains, américains et asiatiques - IRD - Institut de Recherche pour le Développement - Inalco - Institut National des Langues et Civilisations Orientales - UPD7 - Université Paris Diderot - Paris 7, CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We study the behavior of farmers living under the threat of the Tungurahua Volcano in Ecuador. Recent eruptions have caused significant damage, including crop loss, death of livestock, and destruction of dwellings. We collected a unique data set after a major eruption in 2016. We interviewed 222 farmers in the area affected by the eruption and 260 in a nearby control zone to understand why they choose to remain in the risky zone despite the existence of public programs aimed at relocating them to safe zones. We examine land and labor, which are farmers' primary productive assets. Firstly, we investigate the capitalization of volcanic hazards in farmland values and find a negative price premium of 21% compared to the control zone. Secondly, we explore non-farm labor in response to volcanic risk. Finally, we argue that repeated ash fall events increase the illiquidity of farm household assets, such as farmland, and that agricultural human capital is difficult to convert into non-agricultural capital. Our results convey important information for public policies aimed at supporting adaptation and resilience of people living under the threat of volcanoes and other natural disasters. |
| Keywords: | Ecuador, Volcano, Agriculture, Labor, Natural disasters |
| Date: | 2018–07–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01845041&r=env |
| By: | Rafael Isidro PARRA-PEÑA S; Barry REILLY |
| Abstract: | The objective of this study is to estimate the causal impact of the most recent extreme weather event (EWE) in Colombia (‘La Niña’ between 2010-2011), labelled as the ‘winter wave’ by the local media, on persons, houses, business and car theft rates in municipalities subject to the treatment of this EWE. Using a novel annual municipal panel dataset (2007-2012, inclusive), and measuring the affected areas according to the number of houses damaged and destroyed, this study relies on a Difference-in-Difference (D-i-D) model to show that the concurrent year of the winter wave brought a decrease in theft rates, especially, theft from persons. This may be perhaps attributable to the emergence of pro-social behaviour in the municipalities most affected. We also find an increase in theft from houses possibly linked to a ‘survival mechanism’, rather than one that one that seeks reward like the type the BECKER (1968) model of crime and punishment. In addition, the D-i-D estimates also reveal that the presence of conflict, in general, discourages theft perhaps due to the establishment of coercive institutions by illegal armed groups. |
| Keywords: | Natural Disasters, Environmental Economics, Violence, Crime, Weather, Climate Variability, and Climate Change |
| JEL: | I3 O1 P48 Q51 Q54 |
| Date: | 2018–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:col:000118:016430&r=env |