nep-env New Economics Papers
on Environmental Economics
Issue of 2018‒11‒05
forty papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Financing of Sustainability Investments at Green Key Awarded Hotels in Mu?la. By Bilge TÜRKÜN KAYA; Erkan POYRAZ
  2. Exporting Pollution By Itzhak Ben-David; Stefanie Kleimeier; Michael Viehs
  3. Promoting the Energy Transition Through Innovation By Lionel Nesta; Elena Verdolini; Francesco Vona
  4. Decentralized Environmental Regulations and Plant-Level Productivity By Vivek Ghosal; Andreas Stephan; Jan F. Weiss
  5. Climate Policy and Optimal Public Debt By Runkel, Marco; Kellner, Maximilian
  6. Disaster Management in South Africa: The Irony of Fire Fighting Approach towards Natural Hazards By Thanyani Selby Madzivhandila
  7. Integrating electricity markets: Impacts of increasing trade on prices and emissions in the western United States By Steve Dahlke
  8. Longitudinal Environmental Inequality and Environmental Gentrification: Who Gains From Cleaner Air? By John Voorheis
  9. Permit Markets, Carbon Prices and the Creation of Innovation Clusters By Gersbach, Hans; Riekhof, Marie-Catherine
  10. Sustainable consumption and wellbeing: does on-line shopping matter? By Mònica Guillen-Royo
  11. Renewable energy-economic growth nexus in South Africa: Linear, nonlinear or non-existent? By Bothwell Nyoni; Andrew Phiri
  12. Impact of Climate Change on Groundwater Extraction for Corn Production in Kansas By Obembe, Oladipo S.
  13. Transport CO2 and the Paris Climate Agreement: Reviewing the Impact of Nationally Determined Contributions By ITF
  14. Air Quality, Human Capital Formation and the Long-term Effects of Environmental Inequality at Birth By John Voorheis
  15. Efectos del Cambio Climático sobre la Disponibilidad de Agua y los Recursos Hídricos en Bolivia: Pronóstico para el 2030 By Copana Paucara, Carlos Felipe
  16. Market Response to Flood Risk: An Empirical Study of Housing Values Using Boundary Discontinuities By Wang, Haoying
  17. Shadow prices of direct and overall carbon emissions in China¡¯s construction industry: a parametric directional distance function-based sensitive estimation By Ke Wang; Kexin Yang; Yi-Ming Wei; Chi Zhang
  18. The Valuation of Fisheries Rights: A Real Options Approach By Jose Pizarro; Eduardo S. Schwartz
  19. Green Concept Evaluation through Fuzzy AHP-PROMETHEE II By Zeki Aya?
  20. The Bioeconomy and Food Waste: Insects’ Contribution By Eili Skrivervik
  21. Competitive Advantage in the Renewable Energy Industry: Evidence from a Gravity Model By Onno Kuik; FrŽdŽric Branger; Philippe Quirion
  22. Business experience of floods and drought-related water and electricity supply disruption in three cities in sub-Saharan Africa during the 2015/2016 El Niño By Gannon, Kate Elizabeth; Conway, Declan; Pardoe, Joanna; Ndiyoi, Mukelabai; Batisani, Nnyaladzi; Odada, Eric; Olago, Daniel; Opere, Alfred; Kgosietsile, Sinah; Nyambe, Mubita; Omukuti, Jessica; Siderius, Christian
  23. Café y cambio climático en la República Dominicana Impactos potenciales y opciones de respuesta By -
  24. The implications of climate change on Germany’s foreign trade: A global analysis of heat-related labour productivity losses By Nina Knittel; Martin W. Jury; Birgit Bednar-Friedl; Gabriel Bachner; Andrea Steiner
  25. La neutralité en termes de dégradation des terres en Afrique est-elle envisageable ? By Mohammed Rachid Doukkali; Tharcisse Guèdègbé; Tudal Sinsin
  26. How shifting investment towards low-carbon sectors impacts employment: three determinants under scrutiny By Quentin Perrier; Philippe Quirion
  27. Intertemporal Trading Ratios for Nutrient Pollution Control By Cook, Aaron; Shortle, James
  28. The 18th Sustainable Development Goal: Social Entrepreneurship in a global society By G.J.A. Hummels
  29. Agricultural landscape change and land footprint from 1970 to 2010: the case study of Sardinia, Italy By Ginevra Virginia Lombardi,; Rossella Atzori
  30. Reference-based ranking procedure for environmental decision making: insights from an ex-post analysis By Ferretti, Valentina; Liu, Jun; Mousseau, V; Ouerdane, W
  31. Specialization, diversification and environmental technology life-cycle By Nicoló Barbieri; François Perruchas; Davide Consoli
  32. Subjective well-being and social comparison: A comparative study on rural Thailand and Vietnam. By Thi Kim Cuong Pham; Phu Nguyen-Van; Huu Thanh-Tam Nguyen; Thi Anh-Dao Tran; Kone Noukignonb
  33. Subsidising Renewables but Taxing Storage? Second-Best Policies with Imperfect Pricing By Carsten Helm; Mathias Mier
  34. BioSAMs for the EU Member States: Constructing Social Accounting Matrices with a detailed disaggregation of the bio-economy By Alfredo J. Mainar Causape; George Philippidis; Arnaldo Caivano
  35. Revisiting the Local Adaptive Capacity framework: learning from the implementation of a research and programming framework in Africa By Jones, Lindsey; Ludi, Eva; Jeans, Helen; Barihaihi, Margaret
  36. Weather-induced Short-term Fluctuations of Economic Output By Schreiber, Sven
  37. Lineamientos de políticas públicas: un mejor manejo de las interrelaciones del Nexo entre el agua, la energía y la alimentación By Embid, Antonio; Martín, Liber
  38. Acompañamiento técnico y fortalecimiento de capacidades de los productores agropecuarios en el contexto del cambio climático en Costa Rica: líneas de acción para la revitalización del servicio de extensión agropecuaria del Ministerio de Agricultura y Ganadería (MAG) By -
  39. Better understanding of Demand for Weather Index Insurance among Smallholder Farmers under Prospect Theory By Shin, Soye
  40. Impacts of a Carbon Tax across US Household Income Groups: What Are the Equity-Efficiency Trade-Offs? By Lawrence H. Goulder; Marc A. C. Hafstead; GyuRim Kim; Xianling Long

  1. By: Bilge TÜRKÜN KAYA (Mu?la S?tk? Koçman University); Erkan POYRAZ (Mu?la S?tk? Koçman University)
    Abstract: As in all other areas, sustainability concept has become crucial in tourism sector. The Green Key award represents standard of excellence in the field of environmental and sustainable responsibility within the tourism industry. This eco-label is given to the tourism establishments according to the strict criteria determined by the Foundation for Environmental Education (FEE). These criteria include energy, water, waste and environmental management. The Green Key Award system is applied in 56 countries, more than 2600 tourism establishments all over the World. In 2017, Turkey, as one of the favourite tourism destination, is ranked as the 8th among the 56 countries with 86 tourism establishments having the Green Key award. Mu?la province, as the 3rd most popular tourist destination in Turkey, attracts millions of domestic and foreign visitors every year with its natural and historical spots in Fethiye, Marmaris and Bodrum. There are 17 hotels taking the Green Key award in this city. This study is about financing of sustainability investments at tourism sector in Mu?la. For this purpose, a research with Qualitative Interviewing Technique will be conducted in Hotels having Green Key award in Mu?la. The aim of this study is to examine the sustainability activities in tourism sector and explore the sources of finance for these activities. In addition, consciousness about special resource and incentives will be analysed.
    Keywords: Sustainable Investments, Sustainability Financing, Sustainable Tourism, Green Key Award, Mu?la Tourism
    JEL: Q50 Q56 Q01
    Date: 2018–07
  2. By: Itzhak Ben-David; Stefanie Kleimeier; Michael Viehs
    Abstract: Despite awareness of the detrimental impact of CO2 pollution on the world climate, countries vary widely in how they design and enforce environmental laws. Using novel micro data about firms’ CO2 emissions levels in their home and foreign countries, we document that firms headquartered in countries with strict environmental policies perform their polluting activities abroad in countries with relatively weaker policies. These effects are stronger for firms in high-polluting industries and with poor corporate governance characteristics. Although firms export pollution, they nevertheless emit less overall CO2 globally in response to strict environmental policies at home.
    JEL: N50 O13 Q56 R11
    Date: 2018–10
  3. By: Lionel Nesta (Observatoire français des conjonctures économiques); Elena Verdolini (Fondazione Eni Enrico Mattei (FEEM), Milan); Francesco Vona (Observatoire français des conjonctures économiques)
    Abstract: With the striking exception of the USA, countries around the world are committed to the implementation of stringent targets on anthropogenic carbon emissions, as agreed in the Paris Climate Agreement. Indeed, for better or for worse, the transition towards decarbonisation is a collective endeavour, with the main challenge being a technological one. The path from a fossil-based to a sustainable and low-carbon economy needs to be paved through the development and deployment of low-carbon energy technologies which will allow to sustain economic growth while cutting carbon emissions. [First paragraph]
    Keywords: Environment; Environmental policies; Sustainable development
    Date: 2018–10
  4. By: Vivek Ghosal; Andreas Stephan; Jan F. Weiss
    Abstract: Using a unique plant-level dataset we examine total factor productivity (TFP) growth and its components, related to efficiency change and technical change. The data we use is from Sweden and for their pulp and paper industry, which is heavily regulated due to its historically large contribution to air and water pollution. Our paper contributes to the broader empirical literature on the Porter Hypothesis, which posits a positive relationship between environmental regulation and “green” TFP growth of firms. Our exercise is innovative as Sweden has a unique regulatory structure where the manufacturing plants have to comply with plant-specific regulatory standards stipulated at the national level, as well as decentralized local supervision and enforcement. Our key findings are: (1) prudential regulation limits expansion of plants with high initial pollution; (2) regulation, however, is not conducive to plants’ “green” technical change, which provides evidence against the recast version of the Porter Hypothesis; (3) decentralized command-and-control regulation is prone to regulatory bias, entailing politically motivated discriminatory treatment of plants with otherwise equal characteristics.
    Keywords: pollution, environmental regulations, plant-specific regulation, decentralized regulation, enforcement, political-economy, Porter Hypothesis, TFP, productivity, efficiency, technical change, pulp and paper industry
    JEL: D24 L51 L60 Q52 Q53 Q58
    Date: 2018
  5. By: Runkel, Marco; Kellner, Maximilian
    Abstract: This paper analyzes the optimal level of public debt when taxes are used not only for funding public expenditures but also for correcting externalities from climate change. Taking into account externalities may imply the optimal policy to deviate from tax smoothing. Provided accumulated marginal damages from today's consumption are larger than those from tomorrow's consumption, the inclusion of environmental externalities decreases (increases) optimal public debt if tax rates are on the increasing (decreasing) side of the Laffer curve. The reversed holds if the accumulated marginal damage increases over time. Allowing for endogenous adaptation investments reduces the deviation from tax smoothing.
    Keywords: environmental externality,public debt,tax smoothing
    JEL: H23 H63 Q54 Q58
    Date: 2018
  6. By: Thanyani Selby Madzivhandila (University of Mpumalanga)
    Abstract: The continuous distraction of rural livelihoods activities, loss of lives and displacements of large numbers of rural populations has brought about questioning the applicability of risk and disaster mitigation and management approach implementation in most of developing countries in Southern Africa. The fact that floods are still rendering a huge impact every year in Mozambique, Malawi and even South Africa for example, explains the inadequacy in terms of the ability of these countries to deal with natural hazards. The common explanation of disaster is that its impact causes human, material, economic and environmental losses in such a way that such exceed the ability of the affected communities to cope using their own resources. In other words if the communities which are affected by a natural event has the ability to cope in the aftermath of a hazard, such event would not be regarded as a disaster. That is the occurrence of a hazard does not necessarily lead to a disaster, thus risk and disaster mitigation and management should focus on how communities can be prepared to cope independently during and after a natural hazard has occurred. This paper argue that until appropriate measures are formulated to empower communities to deal with the risk and natural hazards independently, government will always been required to apply a fire fighting approach towards disaster. This paper explores the systems of disaster management in South Africa, looking at its appropriateness, suitability, application and effectiveness. The paper conclude that there is a dare need to formulate proper strategies which are proactive in nature towards dealing with natural events such as drought, heat waves and floods in developing countries such as those Southern Africa.
    Keywords: Disaster Management; Natural Hazards, Fire-fighting Approach; South Africa
    JEL: R11 I30 O13
    Date: 2018–07
  7. By: Steve Dahlke
    Abstract: This paper analyzes the market impacts of expanding California's centralized electricity market across the western United States and provides the first statistical assessment of this issue. Using market data from 2015-2018, I estimate the short-term effects of increasing regional electricity trade between California and neighboring states on prices, emissions, and generation. Consistent with economic theory, I find negative price impacts from regional trade, with each 1 gigawatt-hour (GWh) increase in California electricity imports associated with an average 0.15 dollar decrease in CAISO price. The price effect yields significant consumer savings well in excess of implementation costs required to set up a regional market. I find a short-term decrease in California carbon dioxide emissions associated with trading that is partially offset by increased emissions in neighboring regions. Specifically, each 1 GWh increase in regional trade is associated with a net 70-ton average decrease in CO2 emissions across the western U.S. A small amount of increased SO2 and NOx emissions are also observed in neighboring states associated with increased exports to California. This implies a small portion (less than 10 percent) of electricity exports to California are supplied by coal generation. This study identifies substantial short-term monetary benefits from market regionalization for California consumers. It also shows that California's cap and trade program is relatively effective in limiting the carbon content of imported electricity, even absent a regional cap on CO2. The conclusions suggest efforts to reduce trade barriers should move forward in parallel with strong greenhouse gas policies that cap emissions levels across the market region.
    Date: 2018–10
  8. By: John Voorheis
    Abstract: A vast empirical literature has convincingly shown that there is pervasive cross-sectional inequality in exposure to environmental hazards. However, less is known about how these inequalities have been evolving over time. I fill this gap by creating a new dataset, which combines satellite data on ground-level concentrations of fine particulate matter with linked administrative and survey data. This linked dataset allows me to measure individual pollution exposure for over 100 million individuals in each year between 2000 and 2014, a period of time has seen substantial improvements in average air quality. This rich dataset can then be used to analyze longitudinal dimensions of environmental inequality by examining the distribution of changes in individual pollution exposure that underlie these aggregate improvements. I confirm previous findings that cross-sectional environmental inequality has been on the decline, but I argue that this may miss longitudinal patterns in exposure that are consistent with environmental gentrification. I find that advantaged individuals at the beginning of the sample experience larger pollution exposure reductions than do initially disadvantaged individuals.
    Date: 2017–05
  9. By: Gersbach, Hans; Riekhof, Marie-Catherine
    Abstract: Innovation clusters that combine public basic research and applied research performed by private firms may be needed for greater technological advances to slow down climate change. We use a multi-country model with emissions permit trade to examine how international climate policy can induce countries to create such clusters. We allow for a varying degree of cooperation between the countries, represented by different carbon price targets. We find that a minimal carbon price is needed to attract applied research firms, but countries may nevertheless fail to invest in basic research. We construct a mechanism that can overcome this barrier and that can induce the first-best creation of innovation clusters. The mechanism involves a combination of few permits given to the country with the lowest costs for basic research, fair burden-sharing and maximal grandfathering.
    Keywords: International permit markets,Carbon prices,Innovation clusters,Basic research,Applied R&D,Climate change mitigation,Externalities
    JEL: H23 Q54 O32
    Date: 2018
  10. By: Mònica Guillen-Royo (TIK Centre, University of Oslo)
    Abstract: Although sustainable consumption is frequently associated with lower quality of life, empirical evidence indicates that practices linked to reducing the environmental impact of travelling, heating, cooling and food consumption are compatible with high levels of wellbeing. More and more people are shopping on-line, which increases the efficiency of consumption, expands choice and information – while also intensifying exposure to consumerism and materialistic messages. This article explores the relationship between sustainable consumption and wellbeing and the role of on-line shopping, analysing survey data from a representative sample in Norway. Wellbeing is addressed in its affective (happiness), cognitive (satisfaction) and eudaimonic dimensions (subjective vitality). Sustainable consumption practices are investigated through a variable that captures the extent to which respondents choose sustainable alternatives as regards travel, household energy use and food. Results based on regression analysis indicate that sustainable consumption practices and wellbeing are positively associated in Norway, but that the relationship weakens when psychological and lifestyle factors are taken into account. The study also shows that internet shopping does not reduce the strength of the relationship, and might even increase life satisfaction by lowering the costs of engaging in sustainable consumption practices.
    Date: 2018–10
  11. By: Bothwell Nyoni (Innoventon and the Downstream Chemicals Technology Station, Nelson Mandela University); Andrew Phiri (Department of Economics, Nelson Mandela University)
    Abstract: With escalating fears of climate change reaching irreversible levels, much emphasis has been recently placed on shifting to renewable sources of energy in supporting future economic livelihood. Focusing on South Africa, as Africa’s largest energy consumer and producer, our study investigates the short-run and long-run effects of renewable energy on economic growth using linear and nonlinear autoregressive distributive lag (ARDL) models. Working with data availability, our empirical analysis is carried out over the period of 1991 to 2016, and our results unanimously fail to confirm any linear or nonlinear cointegration effects of the consumption and production of renewable energy on South African economic growth. We view the absence of cointergation relations as an indication of inefficient usage of renewable energy in supporting sustainable growth in South Africa and hence advise policymakers to accelerate the establishment of necessary renewable infrastructure in supporting future energy requirements.
    Keywords: Renewable energy, economic growth, ARDL, nonlinear ARDL, South Africa, Sub-Sahara Africa (SSA).
    JEL: C13 C32 C52 Q43
    Date: 2018–10
  12. By: Obembe, Oladipo S.
    Keywords: Natural Resource Economics, Production Economics, Risk and Uncertainty
    Date: 2018–06–20
  13. By: ITF
    Abstract: This report assesses the impact of transport commitments made in the Nationally Determined Contributions (NDCs) of the Paris Climate Agreement on national-level transport CO2 emissions. It contains an introduction to NDCs and provides an overview of economy-wide CO2reduction targets that were defined in these pledges. The methodology, developed specifically for this report, allows a sectoral assessment despite the often limited information regarding specific ambitions for transport and planned CO2mitigation measures.
    Date: 2018–10–16
  14. By: John Voorheis
    Abstract: A growing body of literature suggests that pollution exposure early in life can have substantial long term effects on an individual’s economic well-being as an adult, however the mechanisms for these effects remain unclear. I contribute to this literature by examining the effect of pollution exposure on several intermediate determinants of adult wages using a unique linked dataset for a large sample of individuals from two cohorts: an older cohort born around the 1970, and a younger cohort born around 1990. This dataset links responses to the American Community Survey to SSA administrative data, the universe of IRS Form 1040 tax returns, pollution concentration data from EPA air quality monitors and satellite remote sensing observations. In both OLS and IV specifications, I find that pollution exposure at birth has a large and economically significant effect on college attendance among 19-22 year olds. Using conventional estimates of the college wage premium, these effects imply that a 10 µg/m3 decrease in particulate matter exposure at birth is associated with a $190 per year increase in annual wages. This effect is smaller than the wage effects in the previous literature, which suggests that human capital acquisition associated with cognitive skills cannot fully explain the long term wage effects of pollution exposure. Indeed, I find evidence for an additional channel working through non-cognitive skill -pollution exposure at birth increases high school non-completion and incarceration among 16-24 year olds, and that these effects are concentrated within disadvantaged communities, with larger effects for non-whites and children of poor parents. I also find that pollution exposure during adolescence has statistically significant effects on high school non-completion and incarceration, but no effect on college attendance. These results suggest that the long term effects of pollution exposure on economic well-being may run through multiple channels, of which both non-cognitive skills and cognitive skills may play a role.
    Date: 2017–05
  15. By: Copana Paucara, Carlos Felipe (IISEC, Universidad Católica Boliviana)
    Abstract: El presente trabajo evalúa la variación de la oferta hídrica bajo dos escenarios de cambio climático y consecuentemente la disponibilidad de agua para el año 2030 en 127 subcuencas hidrográficas de Bolivia. La disponibilidad de agua es evaluada mediante la construcción del índice de escasez, en base a 4 escenarios planteados. Todo el análisis fue realizado a través de un enfoque de cuencas hidrográficas aplicado por el método de humedad del suelo. Esta aproximación muestra que la oferta hídrica para el año 2030 tiene un comportamiento heterogéneo por subcuenca y que existe el riesgo de escasez de agua para unidades hidrológicas de la cuenca del Pilcomayo y del Altiplano.
    Keywords: Water Security; Cambio Climático; Índice de Escasez; Cuenca Hidrográfica
    JEL: O54 Q25 Q54
    Date: 2018–10–26
  16. By: Wang, Haoying
    Abstract: This paper presents one of the first studies on flood risk evaluation in the US Northeast - a region where we are likely going to see increasing precipitation variability and associated risk of flood in the coming decades. In the paper, a spatial difference-in-differences framework based on floodplain boundary discontinuities is proposed to control for unobserved heterogeneities. Using parcel-level data from Juniata County and Perry County in Pennsylvania, the paper finds that on average there is a 5-6 percent housing value reduction due to exposure to 1 percent annual chance of flooding within the FEMA (Federal Emergency Management Agency) 100-year flood zone. For Juniata County, it shows that on average there is a $3.28/sqft (in 2015 USD) discount for a full-time SFR (single family residential) property located within the flood zone. For an average housing unit of 1430 sqft living space in the sample, the estimate translates to a $4690 housing value reduction. For Perry County, the corresponding estimates are $4.00/sqft (in 2015 USD) and $6320 for an average housing unit of 1580 sqft. The paper also shows that with similar specifications, a standard hedonic price model underestimates the flood risk impact on housing value by a substantial amount as a result of failing to control for unobserved heterogeneities.
    Keywords: Flood Risk, Natural Hazards, Housing Value, Housing Market, Boundary Discontinuity, Susquehanna River Basin
    JEL: C1 H84 Q5 R3
    Date: 2017–04–15
  17. By: Ke Wang; Kexin Yang; Yi-Ming Wei; Chi Zhang
    Abstract: Construction industry, together with building materials industries supplying it, is one of China¡¯s largest emitters of CO2. Structural change in construction industry has been promoted to mitigate CO2. This paper estimates CO2 shadow price of construction industry and its supporting materials industries in China so as to help them to mitigate CO2 cost-effectively. A parametric directional distance function model, taking into account all possible directional vectors, is applied to address issues regarding arbitrary selection of direction that will affect estimation of shadow price. Results show that there is larger potential for CO2 reduction in supporting material industries than in construction industry itself and shadow price of overall CO2 is much lower than that of direct CO2. The existence of enlarging heterogeneity in shadow prices among different regions provides strong support for introducing a national carbon trading market, thereby helping construction industry and building materials industries to reduce their abatement costs.
    Keywords: Abatement cost; Building material industry; Construction industry; Shadow price
    JEL: Q54 Q40
    Date: 2018–09–08
  18. By: Jose Pizarro; Eduardo S. Schwartz
    Abstract: This article develops and implements a Real Option approach to value renewable natural resources in the case of Marine Fisheries. The model includes two sources of uncertainty: the resource biomass and the price of fish, and it can be used by fisheries to optimally adapt their harvesting strategy to changing conditions in these stochastic variables. The model also features realistic operational cash flows and fisheries can shutdown and reopen operations. Using publicly available data on the British Columbia halibut fishery, the required parameters are estimated and the model solved. The results indicate that the conservation of the biomass is both optimal from a financial and a social perspective. The approach could be extended to other fish species and natural resources if the appropriate data were available.
    JEL: G10 G13 G31 Q20 Q22
    Date: 2018–10
  19. By: Zeki Aya? (Kadir Has University)
    Abstract: The demand for green products have dramatically increased because the importance and public awareness of the preservation of natural environment was taken into consideration much more last two decades. As a result of this, especially manufacturing companies have been forced to design more green products, resulting in a problem of how they incorporate environmental issues into their design and evaluate concept options. The need for the practical decision making tools to address this problem is rapidly evolving due to the fact that the problem turns into a multiple-criteria decision making (MCDM) problem in the presence of a set of green concept alternatives and criteria. Therefore; in this paper, the four popular MCDM methods in fuzzy environment are utilized to reflect the vagueness and uncertainty on the judgments of DMs, because the crisp pairwise comparison in these conventional MCDM methods seems to be insufficient and imprecise to capture the right judgments of DMs. Of these methods; as Fuzzy AHP is used to calculate criteria weights, the other method; Fuzzy PROMETHEE II is used to rank alternatives. Furthermore, the incorporation of fuzzy set theory into these methods is discussed on a real-life case study.
    Keywords: New product development, green concept selection, multiple-criteria decision making, fuzzy logic, AHP, PROMETHEE II
    JEL: C44 C00 D81
    Date: 2018–07
  20. By: Eili Skrivervik (TIK Centre, University of Oslo)
    Abstract: The growing global population and awareness of the unsustainability of livestock production has led consumers, companies, organizations and governments to consider entomophagy (eating insects) as a more sustainable option. Minilivestock offers advantages over traditional livestock production: with greater diversity, higher nutritional levels, higher energy efficiency, higher reproductive rates, lower environmental footprint, and lower costs. This article aims to demonstrate how the successful implementation of entomophagy in the West can positively contribute to the bioeconomy. The article does this through exploring entomophagy, presenting novel research on entrepreneurs in insect farming, and introducing food waste as a free, plentiful and sustainable feed resource for insect farms. Although none of the insect farms included in this research showed any links between insect farms and food waste reduction this is expected to change as the industry matures.
    Date: 2018–10
  21. By: Onno Kuik (IVM, VU Amsterdam); FrŽdŽric Branger (CIRED); Philippe Quirion (CIRED, CNRS)
    Abstract: Pioneering domestic environmental regulation may foster the creation of new eco-industries. These industries could benefit from a competitive advantage in the global market place. This article examines empirical evidence of the impact of domestic renewable energy policies on the export performance of renewable energy products (wind and solar PV). We use a gravity model of international trade with a balanced dataset of 49 (for wind) and 40 (for PV) countries covering the period 1995-2013. The stringency of renewable energy policies are proxied by installed capacities. Our econometric model shows evidence of competitive advantage positively correlated with domestic renewable energy policies, sustained in the wind industry but brief in the solar PV industry. We suggest that the reason for the dynamic difference lies in the underlying technologies involved in the two industries.
    Keywords: Competitive Advantage, Gravity Model, Wind Industry, Solar PV Industry, Green Growth
    JEL: F14 K32 Q42
    Date: 2018–10
  22. By: Gannon, Kate Elizabeth; Conway, Declan; Pardoe, Joanna; Ndiyoi, Mukelabai; Batisani, Nnyaladzi; Odada, Eric; Olago, Daniel; Opere, Alfred; Kgosietsile, Sinah; Nyambe, Mubita; Omukuti, Jessica; Siderius, Christian
    Abstract: Non-technical summary The El Niño event in 2015/2016 was one of the strongest since at least 1950. Through surveys and interviews with key informants, we find businesses in the capital cities of Zambia, Botswana and Kenya experienced major disruption to their activities from El Niño related hydroelectric load shedding, water supply disruption and flooding, respectively. Yet, during the 2015/2016 El Niño, fluctuations in precipitation were not extreme considering the strength of the El Niño event. Results therefore highlight that even fairly moderate precipitation anomalies can contribute to major disruption to economic activity. Addressing the risk of disruption – and supporting the private sector to adapt – is a development priority. Technical summary Drought during the 2015/2016 El Niño amplified disruption to public water supply in Botswana’s capital Gaborone and contributed to unprecedented hydroelectric load shedding across Zambia. In Kenya, moderate precipitation during the El Niño brought localized floods to Nairobi and other areas. Contributing to a sparse literature on firm-level adaptation among micro, small and medium enterprise (MSMEs) in sub-Saharan Africa, through a near-real time assessment we consider MSME experience of this disruption in sectors making substantial contributions to livelihoods and national GDP. Alongside complex and indirect impact pathways that influence total loss and damage, results show varying vulnerability to disruption. Nevertheless, directly after the El Niño event, MSMEs reported water supply disruption, power outages and flooding to be the leading challenge within the business environment in Botswana, Zambia and Kenya respectively. Deeper understanding of vulnerabilities in existing water, energy and urban infrastructure – in the context of increasing urbanisation and a potentially broader range of climate variability – is urgently needed across SSA. This needs to be coupled with public provision of wider enabling conditions – including access to finance – that support private sector adaptation to extreme climate events and associated resource disruption. This paper also identifies clear opportunities to improve climate information services for MSMEs. Social media summary Flooding and water and electricity supply disruption during the 2015/2016 El Niño disrupted business activity in sub-Saharan Africa.
    JEL: N0
    Date: 2018–10–12
  23. By: -
    Abstract: Conscientes de la importancia de adoptar medidas de respuesta ante el cambio climático en el sector café, el CODOCAFE (ahora, el INDOCAFE), el CNCCMDL y el Ministerio de Agricultura de la República Dominicana acordaron con la CEPAL realizar un análisis y una discusión técnica sobre los impactos potenciales del cambio climático en este sector. El objetivo del presente documento es estimar el efecto que podrían tener las variables climáticas en los rendimientos de café en un contexto de cambio climático, utilizando dos escenarios de emisiones del Panel Intergubernamental de Cambio Climático (RCP 4.5 y RCP 8.5).
    Date: 2018–10–18
  24. By: Nina Knittel (University of Graz, Austria); Martin W. Jury (University of Graz, Austria); Birgit Bednar-Friedl (University of Graz, Austria); Gabriel Bachner (University of Graz, Austria); Andrea Steiner (University of Graz, Austria)
    Abstract: We investigate climate change impacts transferred via foreign trade to Germany, a country which is heavily engaged in international trade. Specifically, we look at temperature changes and the associated labour productivity losses at a global scale until 2050. We assess the effects on Germany’s imports and exports by means of a global Computable General Equilibrium (CGE) model. To address uncertainty, we account for two Shared Socioeconomic Pathways (SSP2 and SSP3) and two Representative Concentration Pathways (RCP4.5 and RCP8.5) using projections from five global climate models. We find that average annual labour productivity for high intensity work declines by up to 31% (38% with the higher emission scenario) in South-East Asia and the Middle East by 2050 (relative to a 2050 baseline without climate change). As a consequence, Germany’s imports from regions outside Europe are lower by up to 2.4%, while imports from within Europe partly compensate this reduction. Also Germany’s exports to regions outside Europe are lower but total exports increase slightly due to higher exports to EU regions. Germany’s GDP and welfare, however, are negatively affected with a loss of up to -0.41% and -0.46%, respectively. The results highlight that overall positive trade effects for Germany constitute a comparative improvement rather than an absolute gain with climate change.
    Keywords: Heat stress; Climate change; Labour productivity shocks; International trade; Computable general equilibrium; Germany
    JEL: C68 I15 F18
    Date: 2018–10
  25. By: Mohammed Rachid Doukkali; Tharcisse Guèdègbé; Tudal Sinsin
    Abstract: Les enjeux en termes de sécurité alimentaire, de préservation de l’environnement et de l’amélioration des conditions de vie des populations sont au cœur des objectifs de ce siècle. Face à une croissance démographique galopante et à une forte industrialisation qui induisent des pressions sur les ressources naturelles et accélèrent le changement climatique et la désertification, de nombreuses actions sont mises en place pour parvenir à une neutralité en termes de dégradation des terres. Il s’agit de conserver et de restaurer les différents services écosystémiques, tout en utilisant rationnellement les ressources naturelles pour subvenir aux besoins de la population. Afin d’atteindre cet objectif de neutralité d’ici 2050, se succèdent et se complètent différents projets et initiatives à l’échelle nationale et internationale.
    Date: 2018–09
  26. By: Quentin Perrier (CIRED); Philippe Quirion (CIRED, CNRS)
    Abstract: The threat of climate change requires investment to be rapidly shifted from fossil fuels towards low-carbon sectors, and this shift generates heated debates about its impact on employment. Although many employment studies exist, the economic mechanisms at play remain unclear. Using stylized CGE and IO models, we identify and discuss three channels of job creation resulting from an investment shift: positive employment impacts arising from targeting sectors with a high labour share in value added, low wages and low import rates. Results are robust across both models, except for the last, which only occurs in IO. We then undertake a numerical analysis of two policies: solar panel installation and weatherproofing. These investments both yield a positive effect on employment, a result which is robust across models, due to a high labour share and low wages in these sectors. The results are roughly similar in IO and CGE for solar; for weatherproofing, the results are higher in IO because of low import rates, by a factor ranging from 1.19 to 1.87. Our conclusions challenge the idea that renewable energies boost employment by reducing imports, but they also suggest that an employment double dividend might exist when encouraging low-carbon labour-intensive sectors.
    Keywords: Renewable energies, Investment, Employment, CGE, Input-Output
    JEL: C67 C68 E24 Q42 Q43
    Date: 2018–10
  27. By: Cook, Aaron; Shortle, James
    Abstract: There is significant interest in the use of market mechanisms for controlling nutrient pollution, one of the most challenging threats to water quality in the United States and elsewhere. This type of pollution often is characterized by considerable lag times between discharge from the pollution source and delivery to the impaired waters. We investigate the implications of these lags for efficient pollution reduction markets and compare two alternative market designs: 1) forward markets where participants trade pollution deliveries directly and 2) a trading ratio system where they trade contemporaneous discharges. While a system of first-best trade ratios is complex in early periods, this system can produce the optimal steady state loads using a simple trading rule. We also find that while first-best trade ratios are greater than one when there are lag disparities between trading partners, second-best trade ratios under the same lag disparities may be less than one when the overall cap on discharges is set sufficiently small.
    Keywords: Demand and Price Analysis, Environmental Economics and Policy
    Date: 2018–06
  28. By: G.J.A. Hummels
    Abstract: This discussion paper aims to better understand what social entrepreneurship means and how it contributes to overcoming some of the greatest social and environmental challenges of our times. Based on the work of Sen and Nussbaum, the idea basic human needs – and more in particular, the idea of increasing capabilities to fulfil these needs – creates a reference point to determine the meaning of ‘social’. Apart from reinforcing these capabilities, an important dimension of ‘socialness’ is the extent to which the beneficiaries confirm that they are in a better position to fulfil these basic needs. The 18th Sustainable Development Goal (SDG) deals with the improved set of capabilities. In order to contribute to the grand challenges of our times – as expressed in the 17 existing SDGs – certain conditions in terms of innovation, scalability, and (financial) sustainability have to be met. It will require that corporations, cooperatives, large business networks and institutional investors step in and promote socially entrepreneurial initiatives to contribute to the radical change needed to fulfil the basic needs of individuals and communities. Only then will human development and a life with human dignity be able to materialize.
    Keywords: Local labour markets, Urban wage premium, Employment, Commuting, Regional aggregation
    Date: 2018
  29. By: Ginevra Virginia Lombardi,; Rossella Atzori
    Abstract: Urban population growth has triggered a process of change in rural areas and landscape patterns. This transformation has a twofold consequence. On one hand, land conversion causes loss of biodiversity and habitat destruction (Deng et al., 2017). On the other hand, higher levels of food demand, together with the reduction of available land, endanger the capability of supplying food at local level. The local food systems and food security is increasingly dependent by trade and transport costs. Local food system conservation is increasingly recognized as a key factor in the pursuit of sustainable and bio based economy perspective. Land food footprint is a significant tool in assessing food self-sufficiency, land displacement and thus food system sustainability. In this paper we adopt a landscape approach to analyse the evolution of land food footprint and landscape diversity in Sardinia over the period 1970-2010 to assess the impact of land use change and food systems evolution. Time series show a decrease in landscape diversity and greater degrees of few landscape elements dominance, agricultural specialization and land food footprint unbalance. In summary, these results show that diversified and traditional landscape have been replaced by specialised, less diverse landscape where labour-intensive crops and intensive agriculture results in environment impact and in integration of local food systems by food imports, resulting in land unbalance (land displacement), in landscape features simplification and in rural settlements abandon.
    Keywords: Land food footprint; Landscape diversity; Food planning; Landscape quantitative analysis; Land use.
    JEL: Q56
    Date: 2018
  30. By: Ferretti, Valentina; Liu, Jun; Mousseau, V; Ouerdane, W
    Abstract: Preference elicitation is a challenging activity in any decision-making process, yet preferences are fundamental since the recommendations are meaningful and acceptable only if the Decision Maker's values are taken into account. This study proposes an ex-post application of a recent ranking method named Simple Ranking with Multiple Points (S-RMP) to support a participatory decision making process. The method has been tested on a real-world case study simulating the selection of the most suitable site for locating a new landfill. The purpose of the research is twofold: (i) to explore the applicability and relevance of the S-RMP method to support environmental decisionmaking processes and (ii) to provide guidelines for the elicitation of preference parameters of the S-RMP ranking method. The results highlight that the proposed method opens a promising line of research in the environmental decision-making domain, thanks to its ability to use heterogeneous information consistently with the increasing amount of qualitative data embedded in real decisionmaking processes.
    Keywords: landfill location; multiple criteria decision analysis; preference learning; orginal data
    JEL: J50
    Date: 2017–10–16
  31. By: Nicoló Barbieri; François Perruchas; Davide Consoli
    Abstract: The paper analyses whether and to what extent regional related and unrelated variety matter for the development of green technology, and whether their influence differs over the technology life-cycle. Using patent and socio-economic data on a thirty- year (1980-2009) panel of US States, our study finds that unrelated variety is a positive predictor of green innovative activities. When unpacked over the life cycle, we find that unrelated variety is the main driver of green technology development in early stages while related variety becomes more prominent as the technology enters into maturity.
    Keywords: Green technology; Technology life-cycle; Regional Diversification
    JEL: O33 Q55 R11
    Date: 2018–10
  32. By: Thi Kim Cuong Pham; Phu Nguyen-Van; Huu Thanh-Tam Nguyen; Thi Anh-Dao Tran; Kone Noukignonb
    Abstract: This paper analyzes the determinants of the households’ welfare perception using a survey database on rural areas in Thailand and Vietnam which have similar economic and social conditions. Welfare perception corresponds to the households’ subjective assessment of their general situations. We focus on the social comparison and take into account geographical isolation, relative poverty, harsh living conditions, economic and environmental risks as well as the households’ degree of risk acceptance. Our study shows that households, in both countries, are sensitive to income and relative poverty, but only Thai households are concerned with wealth comparison. In particular, this comparison is asymmetric. Environmental risks as well as households’ attitude to risks differently affect the households’ well-being in both countries. However, we observe a similarity in the effect of the risks’ monetary consequences.
    Keywords: environmental risks, economic risks; rural area, social comparison; subjective well-being.
    JEL: I31 O12 Q56
    Date: 2018
  33. By: Carsten Helm (University of Oldenburg, Department of Economics); Mathias Mier (ifo Institute, Munich)
    Abstract: We consider an economy in which competitive firms use three technologies for electricity production: pollutive fossils, intermittent renewables like wind or solar, and storage. We determine optimal subsidies for renewables and storage capacities when carbon pricing is imperfect. This policy is efficient for low market shares of intermittent renewables in the energy system, but it turns inefficient once there are sucient renewables to partly displace fossil electricity production at times of high availability. Moreover, the subsidy scheme is substantially more complex than a first-best Pigouvian tax. The optimal renewable subsidy is always positive but tends to decrease as electricity production becomes less reliant on fossils. The optimal storage subsidy even changes its sign. It is usually negative as long as fossils contribute to lling the storage, but turns positive if fossils are used only during times of low availability of renewables. This is because more storage capacity reduces the price during times of destorage, but raises it when electricity is taken from the market to fill the storage. This has countervailing effects on firms' incentives to invest in fossil capacities, and these effects are more pronounced the higher the round-trip effciency losses during a storage cycle.
    Date: 2018–10
  34. By: Alfredo J. Mainar Causape (European Commission - JRC); George Philippidis (European Commission - JRC); Arnaldo Caivano (European Commission - JRC)
    Abstract: The bio-based economy will be crucial in achieving sustainable development, covering all ranges of natural resources. In this sense, it is very relevant to analyse the economic links between the bioeconomic sectors and the rest of the economy, determining their total and decomposed impact on economic growth. One of the major problems in carrying out this analysis is the lack of information and complete databases that allow analysis of the bioeconomy and its effects on other economic activities. To overcome this issue, highly disaggregated (in biobased and agriculture sectors) Social Accounting Matrices of the 28 European Union member states (and one EU28 aggregate) have been estimated. This report presents this set of Social Accounting Matrices, called BioSAMs, describing its specific structure and the basis for its estimation.
    Keywords: Bioeconomy, Social Accounting Matrices, European Union
    Date: 2018–06
  35. By: Jones, Lindsey; Ludi, Eva; Jeans, Helen; Barihaihi, Margaret
    Abstract: While adaptation to climate change has emerged as a key area of development research, little is known about the enablers and constraints to implementing adaptation-oriented frameworks for research and development programming. This paper documents lessons learned from the Africa Climate Change Resilience Alliance (ACCRA) programme – a multi-stakeholder consortium comprised of four large international non-governmental organizations (NGOs) and a research organization. It revisits the development and implementation of the conceptual framework that guided ACCRA’s work: the Local Adaptive Capacity (LAC) framework. Between 2009 and 2013, ACCRA’s research used the LAC to understand the impact of development interventions on levels of adaptive capacity at community and household levels. This in turn informed targeting of NGO and government programming. Challenges such as definitional overlaps between resilience and adaptation, difficulties in articulating the intangible elements of LAC’s five characteristics of adaptive capacity and differing interpretations of commonly used terms between academic and practitioner partners each had to be grappled with. Experiences from ACCRA’s research highlight the LAC’s utility as a unifying framework. However, they also point to the need to ensure that certain elements of the LAC are not under-represented (such as gender, power and politics). In addition, the need for improved guidance in describing how the conceptual elements of the LAC can be operationalized, and ensuring greater levels of collaboration between all stakeholders were identified. It is hoped that the lessons from ACCRA not only help to shape future applications of the LAC but the large number of other adaptation and resilience-oriented frameworks that guide development research and practice.
    Keywords: adaptation; resilience; climate change; disaster risk management; adaptive capacity
    JEL: G32
    Date: 2017–10–12
  36. By: Schreiber, Sven
    Abstract: We contribute to the recent literature on the economic effects of those weather conditions that deviate from their regular seasonal pattern. To this end we use local temperature and snow measurements across Germany to analyze their impact on German monthly total industrial and construction-sector production. We find noticeable effects of the various (linear and nonlinear, contemporaneous and dynamic) weather regressors, which in the –seasonally adjusted– construction sector growth data imply an extra explanatory power of more than 50% of the variation, compared to benchmark predictive regressions. As expected, the impact is quite a bit less in total industrial production. From our estimates we obtain (seasonally as well as) weather adjusted production series, and our regression-based approach also yields confidence intervals for these adjustments. The estimated adjustments are quantitatively relevant also for broad output (quarterly GDP). In a mixed-frequency framework we find some value of the estimated monthly weather impact for quarterly GDP nowcasts in (quasi) real time.
    Keywords: weather,business cycle,nowcasting,MIDAS
    JEL: E32 E27
    Date: 2018
  37. By: Embid, Antonio; Martín, Liber
    Abstract: El presente trabajo tiene como principal objeto la formulación de lineamientos de política pública para mejorar el manejo de las interrelaciones del Nexo entre el agua, la energía y la alimentación en América Latina y el Caribe. Tras una introducción general, se analizan las características globales de la aplicación de las políticas públicas al Nexo, con especial atención a sus componentes supraestatal, nacional y local. Más adelante, se desarrollan los lineamientos básicos de política pública para mejorar el manejo de las interrelaciones del Nexo entre los que se destacan: la normativa adecuada, como condición imprescindible para la adopción y ejecución de las políticas públicas; la estructura institucional y los procesos asociados, con técnicas y órganos de coordinación, incluyendo los organismos de cuenca; y, finalmente, una información de calidad para la toma de decisiones. Posteriormente se explicitan los lineamientos para políticas públicas concretas: la planificación administrativa, respecto de la que se establecen los presupuestos, condiciones, mecanismos y recomendaciones que se debieran seguir en los distintos componentes del Nexo para incorporar tal enfoque, con atención especial a la planificación hidrológica; los instrumentos económicos y fiscales, con particular énfasis en las figuras tarifarias vinculadas al agua; los instrumentos de promoción de energías renovables y las herramientas de apoyo a la agricultura desde el enfoque del Nexo. El estudio concluye con la formulación de un plan de acción dividido en etapas que contiene una serie de actuaciones que se recomienda realizar por los países de la región para avanzar hacia un mejor manejo de las interrelaciones del Nexo y, con ello, alcanzar los objetivos de seguridad hídrica, alimentaria y energética.
    Date: 2018–10–22
  38. By: -
    Abstract: Entre 2016 y 2017, la Dirección Nacional de Extensión Agropecuaria (DNEA) de Costa Rica coordinó un proceso de diálogo y consulta dentro de la institución y con otras entidades relacionadas con la extensión y la innovación agropecuaria, con el acompañamiento de la FAO, la CEPAL y consultores asociados a la Red Latinoamericana de Servicios de Extensión Rural (RELASER), para desarrollar un nuevo enfoque de los procesos de acompañamiento técnico y fortalecimiento de capacidades de los productores agropecuarios, con el fin de crear sistemas intensivos en información y conocimiento. Las recomendaciones emanadas de este proceso fueron discutidas por las autoridades del Ministerio de Agricultura y Ganadería y sistematizadas en siete líneas de acción que se presentan en esta publicación para que se compartan con la comunidad de extensión, las instituciones involucradas en el sector y el público en general.
    Date: 2018–10–17
  39. By: Shin, Soye
    Keywords: Risk and Uncertainty, Experimental Economics, International Development
    Date: 2018–06–20
  40. By: Lawrence H. Goulder; Marc A. C. Hafstead; GyuRim Kim; Xianling Long
    Abstract: This paper assesses the impacts across US household income groups of carbon taxes of various designs. We consider both the source-side impacts (reflecting how policies affect nominal wage, capital, and transfer incomes) and the use-side impacts (reflecting how policies alter prices of goods and services purchased by households). We apply an integrated general equilibrium framework with extended measures of the source- and use-side impacts that add up to the overall welfare impact. The distributional impacts depend importantly on the revenue recycling method and treatment of transfer income. In the absence of compensation targeted to particular income groups, use-side impacts tend to be regressive and source-side impacts progressive, with the progressive source-side impacts fully offsetting the regressive use-side impacts. Both types of impact are considerably larger under our more comprehensive welfare measures than under more conventional measures. The efficiency costs of targeted compensation to achieve distributional objectives depend critically on the recycling method and compensation target. These costs are an order of magnitude higher when the revenues that remain after compensation are used for corporate income tax cuts than when the remaining revenues are used in other ways. Efficiency costs rise dramatically when targeted compensation extends beyond the lowest income quintiles.
    JEL: D58 H23 Q52 Q54
    Date: 2018–10

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