|
on Environmental Economics |
|
Issue of 2018‒11‒26
fifty-one papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Sandra Rigot (USPC) |
| Abstract: | The climate change and energy transition issues are a crucial stake for our societies. Indeed, while a large body of scientific work has shown the link between climate change acceleration and greenhouse gas emissions from productive processes, other studies have highlighted that profound changes in the climate would lead to increased risks for economic and financial activity and could have human impacts. The pursuit of high growth based on fossil fuels would lead economies to a disaster scenario. In the worst-case scenario, the IPCC estimates that the planet could heat up by 4.8 ° C compared to the average temperature of the period 1986-2005 and the water rise by nearly a meter (threatening very populous coastal territories) not to mention the upsurge of extreme weather events. These gloomy forecasts highlight the urgency of action to try to contain global warming.This transition to a low-carbon path requires taking on new challenges, including a substantial and sustainable GHG reduction through improved energy efficiency and decarbonation of production systems. This involves many risks related to producers? resilience, technological capabilities, the nature of policy instruments and their calibration to guide the transition. In the end, climate change involves two types of risks that can coexist: on the one hand, physical risks that result from damage directly caused by meteorological phenomena; on the other hand, transition risks resulting from adjustments made for a transition to a low-carbon economy. For companies in particular, they involve new risks but also opportunities that are not well taken into account in their reporting.This article aims to draw up an inventory of the environmental reporting of CAC 40 companies over the period 2015-2017. The choice to study the French case is explained by its leadership in terms of transition. The idea is i) to understand the climate reporting practices of these companies, depending on the sectors and focusing on four areas that reflect how they can exploit, govern, develop their strategies and manage their risks ( in line with the Task Force on Climate-related Financial Disclosure (TCFD) analysis grid, an international initiative launched by Financial Stability Board in late 2015, (ii) to question the appropriateness of an intervention by the accounting standard-setter on the subject. |
| Keywords: | accounting, environmental reporting, climate risks |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:8110046&r=env |
| By: | SUDARSHAN GIRAMKAR (Hon. Shri Babanrao Pachpute Vichardhara Trust?s, Parikrama Institute of Management.) |
| Abstract: | The global warming is becoming the national as well as international problem; it hampers on destroying the natural resources. For the controlling of global warming problem there should be focus on green and ecofriendly initiatives by all. Banking sector is generally considered as environmental friendly sector in terms of the pollutions and emissions. The Indian banking business is one of the largest banking business in the world which caters to the needs of different strata of society. The development of economy in all sector have the very bad impact on environment. Until the end of twentieth century, green was just the color of money for banks in India. With the introduction of Automated Teller Machines (ATMs) in 2001in the banking sector of India, banking sector took initiative towards an environment-friendly banking system. Green banking means combining operational improvements, technology and changing client habits in banking business. There is need to banks should go for green and play a pro-active role to care environmental and ecological aspects as part of their lending principle, which would force industries to go for mandated investment for environmental management. Thereafter, many initiatives were undertaken viz. use of eco-friendly papers, solar-powered ATMs, green projects, energy efficiency practices, workplace health and safety, organizing awareness campaigns, online banking systems, etc. This paper deals with the green initiatives and developments took place in the banking sector in India and sites international developments. It sites opportunities for banks in areas like carbon credit business, green financial products, core banking solutions, integrated IT environment, etc. that can lead to development in green area and overall environment. The Role of the Reserve Bank of India in formulation of policies on green banking has been focused upon for green growth. |
| Keywords: | Green initiatives, core banking solution, sustainable development, ecological balance, tech-world, thumb economy, green growth, etc. |
| JEL: | A10 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:6909452&r=env |
| By: | Paola D'Orazio; Lilit Popoyan |
| Abstract: | While there is a growing debate among researchers and practitioners on the possible role of central banks and financial regulators in supporting a smooth transition to a low-carbon economy, the information on which macroprudential instruments could be used for reaching the "green structural change" is still quite limited. Moreover, the achievement of climate goals is still affected by the so-called "green finance gap". The paper addresses these issues by proposing a critical review of existing and novel prudential approaches to incentivizing the decarbonization of banks' balance sheets and align finance with sustainable growth and development objectives. The analysis carried out in the paper allows understanding under which conditions macroprudential policy could tackle climate change and promote green lending, while containing climate-related financial risks. |
| Keywords: | Climate Change, Climate Finance Gap, Banking Regulation, Macroprudential Policy, Central Banking, Climate-nance risk. |
| Date: | 2018–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2018/35&r=env |
| By: | Antoine Dechezleprêtre; Daniel Nachtigall; Frank Venmans |
| Abstract: | This paper investigates the joint impact of the European Union Emissions Trading System (EU ETS), Europe’s main climate change policy, on carbon emissions and economic performance of regulated companies. The impact on emissions is analysed using installation-level carbon emissions from national Polluting Emissions Registries from France, Netherlands, Norway and the United Kingdom complemented with data from the European Pollutant Release and Transfer Register (E-PRTR). The impact on firm performance is analysed using firm-level data for all countries covered by the EU ETS. A matching methodology exploiting installation-level inclusion criteria combined with difference-in-differences is used to estimate the policy’s causal impact on installations’ emissions and on firms’ revenue, assets, profits and employment. We find that the EU ETS has induced carbon emission reductions in the order of -10% between 2005 and 2012, but had no negative impact on the economic performance of regulated firms. These results demonstrate that concerns that the EU ETS would come at a cost in terms of competitiveness have been vastly overplayed. In fact, we even find that the EU ETS led to an increase in regulated firms’ revenues and fixed assets. We explore various explanations for these findings. |
| Keywords: | carbon emissions reductions, competitiveness, EU Emissions Trading System, firm performance |
| JEL: | Q52 Q54 Q58 |
| Date: | 2018–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1515-en&r=env |
| By: | Tello, D.S.; De Prada, J.D.; Cristeche, E.R. |
| Abstract: | The objective of this work is to develop a discrete multicriteria model to evaluate different conservation policies of the native cald n forest of the province of C rdoba, Argentina. The application of the PROMETHEE multicriteria method integrates a private cost benefit analysis that describes the policy effects on farms, and a contingent valuation study that describes the valuation of forest ecosystem services by the urban population of that region. The impact of six policy alternatives considering seven sustainability criteria was simulated. Criteria weighting was applied considering theoretical decision makers profiles, and the preferences expressed by workshop participants as well. The results show that the most preferred alternatives are extension programs with and without prohibition of deforestation. The multicriteria decision analysis shows an almost generalized coincidence, both in the simulation of theoretical weightings and those from the workshop, that the reforestation program with prohibition of deforestation is the best performance alternative and deregulation is the one of worst performance. Only when considering a free-market profile, deregulation turns to have the best performance. It is concluded that multicriteria methods facilitate decision making process, assessing policy alternatives by a wide range of criteria and enabling different actors to express their preferences for these criteria. Acknowledgement : |
| Keywords: | Marketing |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277256&r=env |
| By: | Ben J. Heijdra; Pim Heijnen |
| Abstract: | We study environmental policy in an economy-ecology model featuring multiple deterministic stable steady-state ecological equilibria. The economy-ecology does not settle in either of the deterministic steady states as the environmental system is hit by random shocks. Individual live for two periods and derive utility from the (stochastic) quality of the environment. They feature warm-glow preferences and therefore will engage in private abatement in order to slightly influence the stochastic process governing environmental quality. The government may also conduct abatement activities or introduce environmental taxes. We solve for the market equilibrium abstracting from public abatement and taxes and show that the ecological process may get stuck for extended periods of time fluctuating around the heavily polluted (low quality) deterministic steady state. These events are called environmental catastrophes. They are not irreversible, however, as the system typically switches back to the basin of attraction associated with the good (high quality) deterministic steady state. The paper also compares the stationary distributions for environmental quality and individuals’ welfare arising under the unmanaged economy and in the first-best social optimum. |
| Keywords: | ecological thresholds, nonlinear dynamics, environmental policy, abatement, capital taxes |
| JEL: | D60 E62 H23 H63 Q20 Q28 Q50 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7299&r=env |
| By: | Birkenberg, A. |
| Abstract: | The agri-food sector generates between 20-30% of global greenhouse gas emissions. A recent attempt to address an increasing demand for climate change mitigation in global value chains is the use of strict and high quality climate labels. However, very little is known on consumer s preferences and attitudes towards climate labels in the agri-food sector and even less on synergistic effects of climate labels in coexistence with other labels. This study examines the world s first coffee, certified as carbon neutral and consumer preferences. It investigates the willingness to pay (WTP) of German consumers for carbon neutral labels on coffee and potential synergistic effects when carbon neutral certification is combined with uncertified direct trade claims or a Fair Trade certificate. A discrete choice experiment based on a Mixed Logit Model was used to determine consumer s WTP and focus group discussions were conducted to understand the rationales. A marginal WTP of 1.70 for a carbon neutral label was identified on a 250g package of specialty coffee. A positive synergistic effect was found for the combination of a carbon neutral label with direct trade claims. Further, without according information, consumers often perceived coffee as a natural product that is not generating any emissions. Acknowledgement : We kindly acknowledge the contributions of Manuel Narjes, Bettina Reiser and Regina Birner who substantially developed and improved the research. We are also thankful for the scholarship provided by the FAZIT foundation in Germany. |
| Keywords: | Consumer/Household Economics |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277277&r=env |
| By: | Caillavet, F.; Fadhuile, A.; Nichèle, V. |
| Abstract: | A carbon tax on food could contribute to emissions mitigation and act as a strong signal to economic actors. However, tax regressivity is a major disadvantage. This article addresses equity issues by several means. First, this article includes reallocation proposals in a revenue-neutral approach of several emission-based carbon taxation scenarios at the consumption level on food. Second, this article develops these proposals’ distributional incidence, and it evaluates the role of carbon pricing in policy impacts. With a carbon-based approach, the differing emission potentials of food groups highlight the relevance of using proteins as a tax base to redirect animal to plant sources in the diet. Thus, a scenario taxing foods rich in animal proteins and subsidizing plant proteins ones is built. Scanner data on French households in 2010 are analyzed. Several GHG emissions indicators and related nutritional impacts, such as diet quality scores and the shift from animal to plant proteins, are evaluated. Using individual changes in food expenditure, distributional effects based on continuous distribution and inequality indexes are measured, allowing the discussion of the policy options of a targeted vs nontargeted tax and a revenue-neutral approach in the food sector. |
| Keywords: | CARBON FISCAL POLICY;REVENUE-NEUTRAL;FOOD CONSUMPTION;REGRESSIVITY;INEQUALITIES |
| JEL: | H23 Q18 Q54 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2018-12&r=env |
| By: | Yujiao Xian; Ke Wang; Yi-Ming Wei; Zhimin Huang |
| Abstract: | The nationwide carbon emission permit trading scheme has been launched in China¡¯s power industry sector by the end of 2017. The estimation of abatement costs savings from carbon emission permit trading can provide valuable guidelines and support to environmental regulatory policies on controlling CO2 emissions. By applying a parametric and nonparametric integrating approach and conducting an ex post analysis in two scenarios (i.e., with and without carbon emission permit trading simulation), this study provides a simulative calculation of the opportunity abatement cost savings and the marginal abatement cost savings from carbon emission permit trading in China¡¯s power industry of 30 provinces. The simulation results show that: i) A 13% annually average potential on the opportunity abatement cost savings (i.e., 1024 billion yuan) would be realized if introducing a nationwide emission permit trading system in China¡¯s power industry during 2011-2015. ii) Meanwhile, the marginal abatement cost savings that range from 39 to 47 yuan/ton would be realized through emission permit trading. iii) Provinces of Xinjiang and Henan show the largest absolute opportunity abatement cost savings from trading, while Qinghai province shows the highest percentage increase in opportunity abatement cost savings. iv) Although there is significant difference in the marginal abatement cost among provinces, the marginal abatement cost savings from trading would occur for most China¡¯s provinces. |
| Keywords: | By-production approach; Data Envelopment Analysis; Directional Distance Function; Emission Trading System; Opportunity abatement cost; Marginal abatement cost |
| JEL: | Q54 Q40 |
| Date: | 2018–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:121&r=env |
| By: | Holtkamp, A.M.; Brummer, B. |
| Abstract: | The economic benefits of Indonesia's rubber production are increasingly questioned because of their associated problematic effects on the environment, such as disturbances of the native ecosystem through alien and invasive organisms and overall negative effects on biodiversity. In order to reconcile economic benefits and threats to ecological functions, the exact nature of the interaction between rubber production and the surrounding ecosystems needs to be analyzed so that adequate policy interventions could be devised. In this paper, we focus on the trade-off relationship between rubber output and the ecosystem disturbance, proxied by the prevalence of invasive plants. Our approach is based on a directional output distance function, which allows the simultaneous estimation of efficiency and of the determinants of environmental efficiency. We apply this model to a household level socioeconomic data set and a plot-level environmental data set, from Jambi in 2012. Our results point towards a concave trade-off curve, indicating that an increase in rubber output is accompanied by an increase in ecosystem disturbance. Farm specific efficiency estimates indicate subdued level of efficiency, illustrating the possibility to reduce ecosystem disturbance while simultaneously increasing rubber output. The inefficiency levels are found affected by several management related variables, e.g., the glyphosate application. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277518&r=env |
| By: | Jha, G.K.; Palanisamy, V.; Sen, B.; Choudhary, K.; Kumar, A. |
| Abstract: | Estimating and explaining yield gap is essential to guide for sustainable intensification of agricultural systems in order to keep pace with increasing food demand in India driven by population and income growth. Eastern Indian states contribute 40 percent of total area under paddy in India but yield level is not at par with other high productive regions of the country. Hence this region is considered as potential region for second green revolution in India. In this study empirical method was used to decompose yield gap into efficiency and resource yield gaps for paddy and wheat. Further, stochastic frontier analysis was employed to estimate inefficiency in production pattern by encompassing critical agronomic and socio-economic factors. Results showed that estimated yield gap is 10 to 30 percent for paddy and 2 to 15 percent in case of wheat. It was identified that, not only sub-optimal resource usages (e.g. fertilization, mechanization) but supra-optimal resource disposal also found detrimental for yield level very often (e.g. seed rate). Besides, frequent drought, flood and state specificity explains yield gap. Hence, it was suggested that proper resource utilization framework and institutional mechanism can be possible remedy to reduce yield gap instead of providing for material input support. Acknowledgement : |
| Keywords: | Productivity Analysis |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277542&r=env |
| By: | Ramelli, Stefano; Wagner, Alexander F; Zeckhauser, Richard; Ziegler, Alexandre |
| Abstract: | Donald Trump's 2016 election and the subsequent nomination of Scott Pruitt, a climate skeptic and self-proclaimed opponent of the Environmental Protection Agency's "activist agenda", to lead the EPA drastically shifted expectations on US climate change policy. Firms' stock-price reactions to these events reveal whether their climate strategies affected their valuations. As widely reported, firms in industries with high carbon intensity benefited, at least briefly. It might be expected that companies with "responsible" strategies on climate change would have lost value. In fact, investors actually rewarded such firms. The analysis shows that this observed climate responsibility premium is due, at least in part, to the strategic behavior of long-horizon investors who look into the future to assess the valuation of corporations. |
| Keywords: | climate change; CSR; election surprise; ESG; event study; Stock returns |
| JEL: | G14 G38 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13206&r=env |
| By: | Alexei P Kireyev |
| Abstract: | This paper reviews the significant macro-fiscal challenges posed by climate change in Djibouti and the costs of mitigation and adaptation policies. The paper concludes that Djibouti is susceptible to climate change and related costs are potentially large. Investing now in adaptation and mitigation has large benefits in terms of reducing the related costs in the future. Reforms to generate the fiscal space are therefore needed and investment for mitigation and adaptation to climate change should be built into the long-term fiscal projections. Finally, concerted international efforts and stepping up regional cooperation could help moderate climate-related macro-fiscal risks. |
| Date: | 2018–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:18/233&r=env |
| By: | Antoine Dechezleprêtre; Tobias Kruse |
| Abstract: | This article reviews the empirical literature combining economic and environmental performance data at the micro-level, i.e. firm- or facility-level. The literature has generally found a positive and statistically significant correlation between economic performance, as measured by stock market returns, and environmental performance, as measured by emissions of pollutants or adoption of international environmental standards. The main reason for this finding seems to be that firms that reduce their material and energy costs experience both better economic performance and lower emissions. There is also evidence that greener firms are able to attract more productive employees and face smaller costs of capital, and that the introduction of green products enhances firms’ profitability. Only a small and recent literature analyses the joint causal impact of environmental regulations on environmental and economic performance. Interestingly, this literature shows that environmental regulations tend to improve environmental performance while not weakening economic performance. However, the evidence so far is limited to a handful of environmental regulations that are not extremely stringent, so the result cannot be easily generalized. More research is needed to assess the joint effects of environmental regulations on environmental and economic performance, to explore the heterogeneity of these effects across sectors, countries and types of policies, and to understand which policy designs allow improving environmental quality while not altering the economic performance of regulated businesses. |
| Keywords: | environmental performance, firm performance, microdata sources |
| JEL: | Q50 Q58 |
| Date: | 2018–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1514-en&r=env |
| By: | Wanda DUGIEL (Warsaw School of Economics) |
| Abstract: | The aim of this article is to examine the following issues: what will be the effects of the World Trade Organization (WTO) implementation of the goals of sustainable development objectives for developed and developing countries, and whether the goals of sustainable development formulated by the UN will enable further liberalization of international trade in the WTO.The implementation of the UN Resolution 2015: "Transforming our world: the 2030 Agenda for Sustainable Development" by the developed and developing countries is very difficult and runs very slowly. The postulate included in the Agenda 2030 about the necessity of countries' withdrawal from the use of some tools of trade policy, in particular export subsidies still in agricultural trade, was important. The use of export subsidies by developed countries has been a source of conflicts in international trade for many years. Developing countries emphasized losses due to competitive prices of agricultural products offered by developed countries on the international market.The objectives of sustainable development take into account the need to include the WTO in activities that will reduce the level of poverty in the world. These objectives remain in line with the WTO objectives as set out in the preamble to the WTO Agreement. WTO activities for economic development have not produced the expected results. The Doha Development Round was supposed to lead to accelerated economic development of developing countries. The goals of the Doha Round of 2001 have not been achieved. The decision to eliminate export subsidies in agricultural trade adopted by the WTO in 2015 at the Ministerial Conference in Nairobi will not have a clear impact on the benefits for all developing countries or emerging economies with the potential to increase their share in international trade. An increase in prices for agricultural commodities on the international market may limit price competitiveness on agricultural commodities of exporting countries, including Brazil, China and India. Some of the least developed countries belong to net importers in agricultural trade.The implementation of the other WTO sustainable development objectives will depend on the functioning of the special and differential treatment principle. The question of the interests of developing countries in complying with environmental protection standards, which will affect international trade, is controversial. Many developing countries will oppose the adoption of regulations supporting the trade in goods produced in accordance with environmental standards, in particular after the US withdrawal from the Paris climate agreement. |
| Keywords: | international trade, World Trade Organization, developed countries, developing countries |
| JEL: | F13 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:8110372&r=env |
| By: | Nishihara, Y.; Takahashi, D.; Fukui, S.; Yoshida, R.; Tamaki, E. |
| Abstract: | Climate change threatens global food security and farm management by affecting the quantity and quality of food. Our purpose is to accurately predict the effect of climate change on rice production in Japan. To estimate the rice quantity and quality under the future climate conditions, we simulated rice growth and quality models by three different scenarios of greenhouse gas (GHG) emission. For assessing the economic impact of climate change, we exchanged the results of rice yield and quality to the price. We focus on Kosihikari, the most popular cultivar among consumers and widely produced in Japanese rice farming, although being vulnerable to heat stress. The estimated results provide two insights. First, an increase in the quantity of rice yield due to climate change has a stronger economic impact than the decrease in quality even under the future climate conditions scenario with the lowest GHG-emission. Second, the impact between eastern and western Japan is different. In eastern Japan, the rice yield would increase while in western Japan, quality would deteriorate. This means the Japanese will be faced with an oversupply of rice, and suggests that rice farmers in western Japan will be obliged to adopt new strategies to improve revenue. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277506&r=env |
| By: | Dirk Röttgers (OECD); Brilé Anderson (OECD) |
| Abstract: | This report investigates the effects of select climate policies, non-climate policies, as well as political economy factors on the decarbonisation of electricity in OECD countries from 2000 to 2015. Effects are analysed on the three phases of decarbonisation: (1) increasing the share of renewables installed, (2) increasing the use of renewables in generation, and (3) reducing the emissions from electricity. |
| Keywords: | climate change, Decarbonisation, electricity, political economy, regression analysis |
| JEL: | H23 L94 P16 P48 Q42 Q48 Q54 Q55 Q58 |
| Date: | 2018–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:139-en&r=env |
| By: | Chengappa, P.G.; Devika, C.M.; Manjunatha, A.V. |
| Abstract: | Indian coffee sector is at an important point of transition, wedged between quality and value segments of the market. The trend towards Robusta has reduced the share of Arabica coffee resulting in moving away from the quality segment of the market. The value chain analysis of conventional, certified, and organic coffee indicated that chains for coffee are largely diffuse in nature, with limited coordination in terms of quality and specifications in the conventional chain. Coordination is stronger in certified and organic chains, but incentives and motivation for upgrading largely stem from individual efforts to add value rather than those taking place at the chain-level. Clearly, organic and certified coffee proved to beneficial as compared to conventional coffee in terms of gains to the actors and sustainability point of view. There is a potential niche for India to develop eco-friendly coffees by leveraging the natural environment and biodiversity present in its coffee growing region Western Ghats, a hotspot of biodiversity. These suggest that integrating sustainability principles in a broad-based branding strategy could be difficult at the level of the chain without institutional support or the entry of chain champions. Acknowledgement : The authors thank the Research Funding Agency - Norwegian Research Council s NORGLOBAL and the Norwegian Institute of International Affairs (NUPI) for their contribution. |
| Keywords: | Marketing |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277025&r=env |
| By: | Menrad, K.; Emberger-Klein, A.; Schops, J. |
| Abstract: | By altering personal diets individuals can avoid serious amounts of greenhouse gas (GHG) emissions. Additionally, several studies documented that individuals have a positive intention to make climate-friendly food choices. Thus, the aim of this study was to analyze the factors which influence consumers behavioral intentions towards climate-friendly food consumption. The analysis is based on data from a face-to-face in-shop survey in southern Germany and is especially interested in the consumption of fruit and vegetables, since substituting animal products with fruit and vegetables can save high amounts of GHG emissions. Using an extended model of the Theory of Reasoned Action and structural equation modelling to analyze the data the survey was able to prove a large positive effect of Climate Attitudes and a medium positive effect of Subjective Norms on consumers behavioral intention towards climate-friendly food consumption. However, the assumed direct effect of Perceived Behavioral Competency on this issue could not be shown. On the basis of the results strategies to enhance climate-friendly food consumption are suggested. Acknowledgement : This work was supported by the German Federal Ministry of Education and Research (contract code: 17004X11). The authors acknowledge this financial support but are solely responsible for the content of this manuscript. |
| Keywords: | Consumer/Household Economics |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277108&r=env |
| By: | Ogada, M.; Radeny, M.; Recha, J.; Kimeli, P.; Rao, J.; Solomon, D. |
| Abstract: | To accelerate adoption of climate smart agriculture technologies and innovations in East Africa, the CGIAR Research Program on Climate Change and Food Security Programme introduced the concept of Climate-Smart Villages (CSVs) in the region, specifically in Lushoto in Tanzania, Borana in Ethiopia, Hoima and Rakai in Uganda, and Wote and Nyando in Kenya. The approach brings together research institutions, agriculture sector stakeholders and the farming communities to test a portfolio of CSA technologies, identify locally appropriate ones and promote their uptake. This study sought to measure the impact of the technologies on welfare of the households. Using quasi-experimental approaches, the study found that CSVs enhanced the adaptive capacity of the smallholder farmers, and that CSA technologies and innovations improved the welfare of the farmers by increasing their access to food varieties, improving their asset holding and income. The policy implication is that the concept CSV should be promoted while obstacles to adoption of CSA technologies and innovations should be addressed. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277499&r=env |
| By: | Eirik S. Amundsen (Department of Economics, the University of Bergen; Department of Food and Resource Economics, University of Copenhagen); Lars Gårn Hansen (Department of Food and Resource Economics, University of Copenhagen); Hans Jørgen Whitta-Jacobsen (Department of Economics, University of Copenhagen) |
| Abstract: | In this paper, we study regulation of externalities involving many small-scale polluters, where the damages from emissions depend on the polluters’ locations. Examples include nutrient and pesticide emissions from farms, particulate emissions from vehicles and home heating units, emissions of hazardous chemical compounds from small business etc. With such emission problems, regulatory authorities often apply a combination of firm-level, possibly differentiated standards for ‘cleaner’ technologies, and market-level, undifferentiated dirty input regulations. We establish general principles for how such regulations should be designed and combined. We find that the optimal regulation design crucially depends on the type of cleaner technologies available to polluters. If these are ‘emission capturing’, optimal technology standards encourage the use of cleaner technologies in both high and low damage areas, while if they are ‘input displacing’, optimal technology regulation encourages cleaner technologies in high damage areas, but discourages their use in low damage areas. Regulation should always discourage the use of dirty input and the optimal regulation intensity may be substantial, particularly if the available cleaner technologies are input displacing. |
| Keywords: | Location-specific externalities, clean technologies, regulation, policy |
| JEL: | H23 Q58 D62 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2018_11&r=env |
| By: | Eirik S. Amundsen (Department of Economics, University of Copenhagen, Denmark); Lars Gårn Hansen (Department of Economics, University of Copenhagen, Denmark); Hans Jørgen Whitta-Jacobsen (Department of Economics, University of Copenhagen, Denmark) |
| Abstract: | In this paper, we study regulation of externalities involving many small-scale polluters, where the damages from emissions depend on the polluters’ locations. Examples include nutrient and pesticide emissions from farms, particulate emissions from vehicles and home heating units, emissions of hazardous chemical compounds from small business etc. With such emission problems, regulatory authorities often apply a combination of firm-level, possibly differentiated standards for ‘cleaner’ technologies, and market-level, undifferentiated dirty input regulations. We establish general principles for how such regulations should be designed and combined. We find that the optimal regulation design crucially depends on the type of cleaner technologies available to polluters. If these are ‘emission capturing’, optimal technology standards encourage the use of cleaner technologies in both high and low damage areas, while if they are ‘input displacing’, optimal technology regulation encourages cleaner technologies in high damage areas, but discourages their use in low damage areas. Regulation should always discourage the use of dirty input and the optimal regulation intensity may be substantial, particularly if the available cleaner technologies are input displacing. |
| Keywords: | Location-specific externalities, clean technologies, regulation, policy |
| JEL: | H23 Q58 D62 |
| Date: | 2018–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuiedp:1811&r=env |
| By: | Hernandez-Solano, A.; Yunez-Naude, A. |
| Abstract: | Market failures are frequent in the rural sector of less developed countries, so, rural economic agents that face high transaction costs take their decisions based on implicit or shadow prices. Failing to consider this feature may generate, amongst others, misleading results for policy evaluation and recommendations. In this paper we develop a theoretical agricultural household model that considers market failures in a subsistence crop market and in agricultural land and labor markets. We apply the model to estimate econometrically the shadow price of agricultural land of rural households in Mexico using economic and socio-demographic data from a representative national survey of these economic agents. We find that the estimated average shadow price of their land rent is relatively high and also that it has sharp variation in rural Mexico. Based on these results we suggest that policies aimed to promote changes in the use of rural land (e.g. from agriculture to forestry) have to consider the value attached to agricultural land by rural households and its variability according to the diversity of agro-ecological conditions in countries like Mexico. Acknowledgement : We thank the financial support of Mexico Nacional Council for de Evaluation of Social Policy (CONEVAL, Spanish acronym), granted to the authors through El Colegio de Mexico. |
| Keywords: | Land Economics/Use |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277260&r=env |
| By: | Hübler, Michael; Pothen, Frank |
| Abstract: | This article tries to increase public awareness of a crucial but rarely discussed global challenge by introducing a novel economic analysis: drawing on insights from various disciplines, it studies policies regulating sand extraction and trade. While sand is essential for construction and land reclamation worldwide, its extraction causes severe ecological damage in oceans, in rivers and on beaches and thus has high social costs. To derive solutions to this paramount global challenge, this article focuses on sand exports from developing countries in Southeast Asian to Singapore as a prominent example. It evaluates output, export and import taxes as the means to reduce sand extraction and trade. To this end, it utilizes an Eaton and Kortum type trade model within a general equilibrium framework. Overall, an output tax can reduce sand extraction to a large extent, while the economic costs are small for Singapore and slightly positive for the Southeast Asian sand exporters. As a novel policy, the sand tax can be implemented as a Sand Extraction Allowances Trading Scheme (SEATS). This policy can help sustainably balance Singapore’s economic growth with Southeast Asia’s economic development. |
| Keywords: | Sand extraction, trade policy, Singapore, Eaton-Kortum trade model |
| JEL: | F13 Q02 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:han:dpaper:dp-644&r=env |
| By: | Rachel Morris; Olivier Cattaneo; Konstantin Poensgen |
| Abstract: | A transition finance country pilot was initiated by the OECD Development Assistance Committee (DAC) in partnership with the government of Cabo Verde. The study aims to capture the challenges facing Cabo Verde following graduation from Least Developed Country (LDC) to Lower Middle Income Category (LMIC), including the shifting financing for sustainable development landscape, the mounting risk of debt distress and the economic and environmental vulnerabilities as a Small Island Developing States (SIDS). In line with the Addis Ababa Action Agenda (AAAA), the pilot study proposes a new “ABC” approach targeted to assess all available sources of financing (ODA, OOF, private investment, domestic resources, and remittances), identify emerging SDG financing gaps and promote better alignment of resources with national financing for sustainable development strategies. |
| Keywords: | 2030 Agenda, Addis Ababa Action Agenda, Cabo Verde, Debt sustainability, Financing for Sustainable Development, Integrated National Financing Frameworks, LDC graduation, LDCs, OECD DAC, SDGs, SIDS, Transition finance |
| JEL: | E6 E61 F13 F24 F3 F34 F35 F4 G2 H1 H2 H5 H6 I1 O1 O11 O2 O23 P45 Q2 |
| Date: | 2018–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dcdaaa:46-en&r=env |
| By: | Jean Chateau (OECD); Ruben Bibas (OECD); Elisa Lanzi (OECD) |
| Abstract: | This paper explores the consequences on the labour markets of structural changes induced by decarbonisation policies. These policies are likely going to have consequences on labour-income distribution given i) existing rigidities in the labour markets, and ii) their different impacts on sectors and on job categories. These policies are analysed in a general equilibrium modelling framework, which includes interlinkages between different sectors and regions as well as five different categories of workers. |
| Keywords: | Climate change mitigation policies, Computable general equilibrium model, Employment & Redistributive Effects, Energy efficiency, Labour markets by occupation |
| JEL: | D58 J4 Q43 Q52 Q54 |
| Date: | 2018–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:137-en&r=env |
| By: | Yang, W.; Renwich, A. |
| Abstract: | Livestock production is increasingly being regarded as resource-intensive and is attracting concerns about animal welfare and environmental sustainability. As a result, consumer awareness of these issues has led to an increasing demand for products with high quality attributes that cannot be directly experienced or identified, namely credence attributes (CAs). To our knowledge, so far no study has systematically identified the value of price premium associated with credence attributes of livestock products. In an effort to understand this issue this study conducted a meta-analysis to examine consumers WTP for different credence attributes of livestock products based on a systematic review of relevant studies. Meta-regression models are used to control for the heterogeneity of WTP estimates and investigate factors that affect the estimation of WTP. There were 555 estimates derived from 94 papers reporting WTP. Meta-regression results established the presence of systematic WTP variation associated with types of products, CAs, and locations, yet also indicated that WTP is subject to systematic variation associated with study methodology. While results are promising with regard to the ability of research to provide insight regarding WTP for CAs, they also suggest that researchers should consider the potential for methodological effects when conducting empirical WTP analysis Acknowledgement : |
| Keywords: | Consumer/Household Economics |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277320&r=env |
| By: | Bureau for Food and Agricultural Policy |
| Keywords: | Food Consumption/Nutrition/Food Safety, Food Security and Poverty |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:zabfap:279780&r=env |
| By: | Ojo, T.; Baiyegunhi, L. |
| Abstract: | The study analyzed the determinants of rice farmers climate change adaptation strategies in Southwestern Nigeria. A multistage sampling technique was used to collect cross sectional data from 360 rice farmers selected from three States in the region. Out of 11 adaptation strategies identified by the farmers, the five main identified adaptation strategy options were subsequently used as the dependent variables in the multivariate probit model. The result of the Multivariate Probit Model indicated that some household characteristics, access to services and location significant and statistically influenced the choice of adaptation strategies employed by the farmers in the study area. It is obvious the farmers are aware of long-term changes in climatic factors (temperature and rainfall, for example), they are unable to identify these changes as climate change. However, the positive pair wise correlation matrix from the MVP model indicate complementarities among all the adaptation strategies used by the farmers. The government could build the capacity of agricultural extension systems and make available climate change education scheme with ICT innovations. Government policies and investment strategies must be geared towards the support of education, credit and information about adaptation to climate change, including technological and institutional methods, particularly for smallholder farmers in the country. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277011&r=env |
| By: | Ferreira, J.B. De Souza Filho; De Faria, V. Guidotti; Guedes Pinto, L.F.; Sparovek, G. |
| Abstract: | In this paper, we analyze the economic and social impacts of different deforestation reduction scenarios in Brazil, using a detailed inter-regional, bottom-up, dynamic general equilibrium model. We build three deforestation scenarios using detailed information on land use in Brazil, from satellite imagery that comprises deforestation patterns and land use by state and biome. This information includes agricultural suitability of soil, by biome and state, as well as the classification of land between private and public lands. Results show, for the period under consideration, low aggregate economic losses of reducing deforestation in all scenarios, but those losses are much higher in the agricultural frontier states. Reducing deforestation has also a negative impact on welfare (as measured by household consumption), affecting disproportionately more the poorest households, both at national level and particularly in the frontier regions, both by the income and expenditure composition effects. We conclude that although important from an environmental point of view, those social losses must be taken into account for the policy to get general support in Brazil. Acknowledgement : The authors are grateful to Instituto Escolhas for funding this research. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277084&r=env |
| By: | Maral Kichian |
| Abstract: | In 2008, the government of the province of British Columbia broke new ground in North America by introducing a revenue-neutral carbon tax on fossil fuels. The initial rate was set at $10/ton of CO2 which was then increased annually by $5 increments to reach $30/ton in 2012. We focus on monthly diesel use which is mostly related to commercial activities. Our objective is to measure user reaction to the new tax. Exploiting the sample time series properties, we study the long run reaction via a cointegration equation, linking diesel use, its total price, and income, and the short run reaction using an error correction model (ECM). Carbon tax saliency is interpreted as a short run phenomenon that shows up in the dynamic adjustment of the ECM. We find that the long run total price elasticity estimate of diesel demand is -0.52 and that the short run tax saliency effect is statistically significant. However, the total reaction is small relative to CanadaÕs commitment to decrease GHG emissions by 30% in 2030 relative to 2005 levels. |
| Keywords: | diesel demand, carbon tax, tax saliency |
| JEL: | Q41 Q58 H23 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:creacr:2018-01&r=env |
| By: | Ravi, S.C. |
| Abstract: | It is projected that, India s population would reach1.69 billion by 2050 and the demand for cereals is estimated to be around 390 to 465 mt. Presently 14.5 per cent of India s population is undernourished, thus posing a serious question on food security? On the other hand, food is lost due to various harvest and post harvest losses. The food lost serves as opportunity cost for the economy as well environment. Hence, this study focuses on food loss, its impact on food security and environment. The food loss footprint was calculated using the methodology developed by FAO. Results revealed that, carbon foot print was more in case of cereals (13.37 mt of CO2 equivalent). Of the total blue water that was utilized in producing the lost food, 59 per cent of the lost blue water was used for cereal production. The land and water saved by reducing the food loss could be used more efficiently in producing extra food. Lost food can be used to achieve food security. Timely harvesting and use of mechanization in harvesting is needed. There is a need to develop efficient supply chain network. Aerobic rice cultivation needs to be promoted to reduce GHG emission. Acknowledgement : The authors wishes to thanl, Food and Agriculture Organization, Rome; AICRP on Post Harvest Technology, CIPHET, PAU, Ludhiana; Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi and Inspire Fellowship, Department of Science and Technology, Government of India, New Delhi. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277386&r=env |
| By: | Kuhn, L.; Hou, L.; Chen, X.; Huang, J. |
| Abstract: | The burning of agricultural residue is one large contributor to poor air quality in China. Due to technical requirements and adverse incentives, farmers are however still reluctant to give up this traditional form of residue management. Current policies are aiming at improving the spread of innovation by both coercive measures penalizing residue burning and programs supporting more sustainable alternatives. The current paper employs a fixed-effect model along farm-level and village level panel data collected in 2013 to assess trends in residue management and analyze the impact of three different policies on residue management choices of farmers in North-East China. Our data reveals that the 2008 residue burning ban could not achieve any significant reduction of residue burning. Instead we found that policies that focus on enabling farmers to comply with regulations, for instance machinery subsidies and demonstration sites, had a significant positive effect on sustainable residue management. While burning bans are still a necessary component of environmental policy, we therefore recommend placing highest priority on policies providing economic incentives to achieve long-term changes in farmers management strategies. Acknowledgement : |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277374&r=env |
| By: | Nicolli, F.; Acosta, A.; Karfakis, P. |
| Abstract: | This paper provides new empirical evidence on climate change adaptation using a dataset that covers 19 countries from four continents. More specifically, we focus on the role of livestock as ex-ante risk management strategy and self-insurance coping-strategy against climatic shocks. There are at least two channels through which livestock can play this role. From the one hand, it can be viewed as a form of ex-ante precautionary savings, which can be liquidated ex-post to smooth consumption, if needed. From the other hand, livestock and livestock diversification can increase resilience, i.e. the household capacity of recovering from external shocks. Given these premise, our study merge together several longitudinal surveys (n=223,372) with Standardised Precipitation-Evapotranspiration index data, our proxy of climatic shocks, in order to study the interlinkage among livestock, household welfare and resilience. To the best of our knowledge, this is the first cross-country analysis in this field of literature. Our results show, among other things, that: firstly, livestock has a significant contribution to household welfare and resilience in most of the samples considered in the analysis; secondly, climatic crises tend to be regressive, and poorer households are generally more affected; thirdly, country specificity matters. Acknowledgement : |
| Keywords: | Livestock Production/Industries |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277482&r=env |
| By: | Muhammad Irfan (University of Waikato); Michael P. Cameron (University of Waikato); Gazi Hassan (University of Waikato) |
| Abstract: | Globally, around three billion people depend upon solid fuels such as firewood, dry animal dung, crop residues, or coal, and use traditional stoves for cooking and heating purposes. This solid fuel combustion causes indoor air pollution (IAP) and severely impairs health and the environment, especially in developing countries like Pakistan. A number of alternative household energy strategies can be adopted to mitigate IAP, such as using liquid petroleum gas (LPG), natural gas, biogas, electric stoves, or improved cook stoves (ICS). In this study, we estimate the benefit-cost ratio, net present value, and internal rate of return of these interventions over a ten-year period in Pakistan. Annual costs included both fixed and operating costs, whereas benefits covered health, productivity gains, time savings, and fuel savings. We found that LPG has the highest benefit-cost ratio of 3.68, and ICS had the lowest benefit-cost ratio (0.58). Natural gas, electric stoves, and biogas had benefit-cost ratios of 2.87, 2.22, and 1.39 respectively. To maximize the return on investment in cleaner burning technology, the government of Pakistan should consider encouraging the adoption of LPG, piped natural gas, and electric stoves as a means to reduce IAP. |
| Keywords: | indoor air pollution; interventions; cost-benefit analysis |
| JEL: | O15 Q42 Q47 |
| Date: | 2018–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:18/14&r=env |
| By: | West, J. |
| Abstract: | Climate variability requires adaptive production systems in agriculture often resulting in significant irreversible investments. Cultivar replacement programs in horticulture orchards that substitute older varieties for more heat- and drought-resilient varieties have enterprise values that are highly sensitive to the timing of such investments. Farm-level replacement programs are subject to multiple constraints around debt serviceability, operating costs, the replacement cycle and the rate of degradation of the existing orchard. The maximization of enterprise value subject to multiple constraints can be reduced to a multi-objective optimization problem. Over long horizons this optimization process generates a very-large solution space. Using a multi-objective evolutionary algorithm we examine uncertainties around climatic effects and the timing of investments for horticultural operations and derive the optimal times to adapt using cultivar replacement techniques. We find that naive switching decisions using traditional valuation methods are found to be suboptimal and can initiate poor decisions, potentially undermining adaptation efforts. We further show that opposing economic and climatic conditions can adversely impact enterprise value based on mistiming the investment decision. Application of the GA solver is demonstrated using a vector-based GIS to a farm where individual portions of an orchard are subject to varying rates of production, degradation and age. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276940&r=env |
| By: | Alejandro Fuentes Espinoza; Anne Hubert; Yann Raineau; Céline Franc; Eric Giraud-Héraud |
| Abstract: | We analyze consumers’ evaluations of white wines from resistant varieties, produced in the Languedoc winegrowing region of France (2016 vintage). We use the results from a laboratory experiment performed in Paris in June 2017, where a panel of more than one hundred and sixty consumers, regular buyers of this type of wine, were asked to evaluate a wine of the Bouquet 3159 grape variety (monogenic variety resistant to mildew and powdery mildew and optimized for quality) and compare it with two conventional wines of different quality levels, and with a certified organic wine of similar type and price. The environmental and health performances and the production methods of the different wines were quantified according to several indicators: treatment frequency indicator (TFI) and pesticide residue analysis.\r\nThe consumers first evaluated the wines after tasting, having been given only a minimum amount of information about the region of origin and the vintage, then again after receiving information on production methods and the levels of our indicators. The method used to lend credibility to individual valuations used experimental economics, via a mechanism based on direct disclosure of their willingness to pay (maximum purchase price for a bottle of wine according to available information). The results showed that, on a purely sensory level, consumers had difficulty in accepting wine from a resistant variety. We were then able to see that communication focusing on environmental and health performances very much improved the position of the resistant variety of wine, putting it ultimately at the top of the average qualitative evaluations. In economic terms, we show that this promotion results in high market share, gained from conventional wines. Market share losses were lower, however, for the premium conventional wine, suggesting that the higher quality wines would be less directly challenged by wines produced from resistant varieties. |
| Keywords: | Wine, Resistant varieties, Treatment frequency indicator, Pesticide residue analysis, Willingness to pay, Experimental economics. |
| JEL: | D12 Q11 Q13 Q16 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2018-22&r=env |
| By: | Daniel Albalate (Universitat de Barcelona, Departament d’Estadística, Econometria i Economia Aplicada, Avda. Diagonal 690, 08034 (Barcelona), Telf: +34.93.4031131); Gabriel R. Padró-Rosario (Departament de Econometria, Estadística y Economia Aplicada, Universitat de Barcelona, John Maynard Keynes 1-11, 08034, Barcelona.) |
| Abstract: | The aim of this study is to evaluate the long–term effect of a hurricane in the output of a country. The study estimates the effects of Hurricane Georges on Puerto Rico in 1998 using aggregated level data. To do so, this research uses a suitable method for comparative studies, the synthetic control method. Hurricane Georges caused an estimate of US$4.3 billion in direct damages. The results give validity to recent studies on natural disasters providing negative effects on growth. It was found that the Purchasing Power Parity over GDP could have been 9 percent higher by 2010 if the hurricane would have never affected Puerto Rico. Moreover, it shows that Puerto Rico’s economy has yet to recover after 12 years of the event. The case of Georges brings an insight into the long–term impacts of a natural disaster as a singular event. A difference in time and country is conducted as an alternative method with also negative effects on the dependable variable. |
| Keywords: | Synthetic Control Method, Hurricane Georges, Puerto Rico, Growth JEL classification:C20, O04, Q54 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201827&r=env |
| By: | Jean-Claude BERTHELEMY; Arnaud MILLIEN |
| Abstract: | This paper is the first product of a project which aims to build a Collaborative Smart Mapping of Mini-grid Action (CoSMMA), whose principal objective is to identify best practice in decentralized electrification projects.By evaluation of 421 projects, from published research papers, we have built a pilot CoSMMA which proves its feasibility. Its relevance is demonstrated by a meta-analysis, which reveals the principal characteristics of decentralized electrification projects which have positive impacts on sustainable development.Four main characteristics were considered: technology (source or energy), system size (power), decision level (from local to country level), geographic location. When searching for best practice, technology and system size must be considered together, because the chosen technology may constrain the power, which is provided by the system. We find that the most popular projects, which are based on Solar Home Systems (SHS) are not the most effective. The problem with SHS is not the use of solar energy, but the small system size often chosen for SHS. Mini-grids, of larger size, especially those which use hybrid renewable sources of energy, have more positive impacts, because these systems combine the benefits of sustainability and flexibility. In terms of decision level, we find that both top-down and bottom-up approaches have advantages, with the observation of a U-shaped curve for the influence of the decision level on the probability of obtaining positive impacts. Geographical location matters, as it is very often the key to system feasibility. We find that DEPs are more effective in Latin America than in Asia, and more effective in Asia than in Africa.We also attempted to study the type of effects resulting from DEPs. Descriptive data suggest that for some types of effects, positive impacts are more likely than for others. Decentralized electrification projects have a more positive impact on Lifestyle & NICT or Household agenda than on Economic transformation or Community life. However, this pilot CoSMMA does not contain enough information to study precisely the types of effects, because some types of effects have not been studied frequently in the existing literature. This is the case, for instance, for environmental effects, which have been rarely measured scientifically.Finally, we attempted to broaden our information set by including expert data, which was entered into the CoSMMA meta-analysis. We define expert data as data that are not supported by statistical tests with measures of significance, whereas the evaluations based on scientific data were supported by statistical tests of significance. The expert data may be valid, but our attempt to include it in the analysis failed at this stage. The determinants of unproven effects appear to be quite different from the determinants of proven effects in our meta-analysis, and using expert data would imply merging proven and unproven effects, which would totally blur the conclusions. |
| Keywords: | decentralized electrification, sustainable development, impact assessment, meta-analysis |
| JEL: | L94 O13 O18 O22 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:4608&r=env |
| By: | Jean-Claude BERTHELEMY (Université Paris I Panthéon-Sorbonne); Arnaud MILLIEN |
| Abstract: | This paper is the first product of a project which aims to build a Collaborative Smart Mapping of Mini-grid Action (CoSMMA), whose principal objective is to identify best practice in decentralized electrification projects.By evaluation of 421 projects, from published research papers, we have built a pilot CoSMMA which proves its feasibility. Its relevance is demonstrated by a meta-analysis, which reveals the principal characteristics of decentralized electrification projects which have positive impacts on sustainable development.Four main characteristics were considered: technology (source or energy), system size (power), decision level (from local to country level), geographic location. When searching for best practice, technology and system size must be considered together, because the chosen technology may constrain the power, which is provided by the system. We find that the most popular projects, which are based on Solar Home Systems (SHS) are not the most effective. The problem with SHS is not the use of solar energy, but the small system size often chosen for SHS. Mini-grids, of larger size, especially those which use hybrid renewable sources of energy, have more positive impacts, because these systems combine the benefits of sustainability and flexibility. In terms of decision level, we find that both top-down and bottom-up approaches have advantages, with the observation of a U-shaped curve for the influence of the decision level on the probability of obtaining positive impacts. Geographical location matters, as it is very often the key to system feasibility. We find that DEPs are more effective in Latin America than in Asia, and more effective in Asia than in Africa.We also attempted to study the type of effects resulting from DEPs. Descriptive data suggest that for some types of effects, positive impacts are more likely than for others. Decentralized electrification projects have a more positive impact on Lifestyle & NICT or Household agenda than on Economic transformation or Community life. However, this pilot CoSMMA does not contain enough information to study precisely the types of effects, because some types of effects have not been studied frequently in the existing literature. This is the case, for instance, for environmental effects, which have been rarely measured scientifically.Finally, we attempted to broaden our information set by including expert data, which was entered into the CoSMMA meta-analysis. We define expert data as data that are not supported by statistical tests with measures of significance, whereas the evaluations based on scientific data were supported by statistical tests of significance. The expert data may be valid, but our attempt to include it in the analysis failed at this stage. The determinants of unproven effects appear to be quite different from the determinants of proven effects in our meta-analysis, and using expert data would imply merging proven and unproven effects, which would totally blur the conclusions. |
| Keywords: | decentralized electrification, sustainable development, impact assessment, meta-analysis |
| JEL: | L94 O13 O18 O22 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:4607&r=env |
| By: | Holger Dalkmann; Alyssa Fischer; Karl Peet |
| Keywords: | Transport - Transport Economics Policy & Planning Energy - Energy Conservation & Efficiency Energy - Energy Consumption Energy - Energy and Environment Environment - Climate Change Mitigation and Green House Gases Environment - Green Issues |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:30493&r=env |
| By: | Grovermann, C.; Wossen, T.; Muller, A.; Nichterlein, K. |
| Abstract: | Agricultural innovation is an essential component in the transition to more sustainable and resilient farming systems across the world. Innovations generally emerge from collective intelligence and action, but innovation systems are often poorly understood. This study explores the properties of innovation systems and their contribution to increased eco-efficiency in agriculture. Using aggregate data and econometric methods, the eco-efficiency of 79 countries was computed and a range of factors relating to research, extension, business and policy was examined. Despite data limitations, the analysis produced significant results. Extension plays an important role in improving the eco-efficiency of agriculture, while agricultural research, under current conditions, has a positive effect on eco-efficiency only in the case of less developed economies. These and other results suggest the importance of context-specific interventions rather than a one size fits all approach. Overall, the analysis illustrated the potential of a macro-level diagnostic approach for assessing the role of innovation systems for sustainability in agriculture. Acknowledgement : The authors would like to thank the UN Food and Agriculture Organisation for funding this research. |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277416&r=env |
| By: | Dirk Röttgers (OECD); Aayush Tandon (OECD); Christopher Kaminker (University of Oxford) |
| Abstract: | The large need for investments in sustainable infrastructure will require investments from the private sector, including institutional investors. This working paper contributes to scaling up investments by analysing public project-level interventions for projects involving institutional investors. It presents findings from an updated database on institutional investments in environmentally sustainable infrastructure with project-level intervention by the public sector. |
| Keywords: | climate change, finance, financial instruments, financial sector, infrastructure, Institutional investors, sustainable |
| JEL: | H23 P45 Q42 Q48 Q54 Q58 |
| Date: | 2018–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:138-en&r=env |
| By: | Nancy Vandycke; Jari Kauppila |
| Keywords: | Transport - Transport Economics Policy & Planning Transport - Road Safety Environment - Air Quality & Clean Air Environment - Climate Change Mitigation and Green House Gases Environment - Environmental Economics & Policies Environment - Green Issues Urban Development - Transport in Urban Areas |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:30490&r=env |
| By: | Dakpo, K.H.; Vincent, M.; Boussemart, J.-P. |
| Abstract: | We extend the single-stage framework of damage-control inputs like pesticides to a multi-ware framework where four technologies are considered. The economic technologies describe the production and the damages due to pests while the ecological technologies represent the dynamics of pests and predators populations. To account for the possibilities of spatial effects of land uses (crop and non-crop habitats), we consider an analysis at the landscape level and try to find the optimal allocation of the land uses that help minimizing pesticides. To this aim we rely on a prey-predator simulation model. We assess pesticides performance considering nonparametric production frontier techniques. Our results indicate that pesticides can be reduced by 7.7% without reducing the landscape production. In terms of land uses we found that grasslands areas should be increased by more than twice and croplands with medium levels of pesticides unchanged. Croplands with zero and high levels of pesticides should be reduced. In terms of trade-offs between pesticides and the landscape production we found that the spillover effect is very high and result in a negative trade-off because of the destruction of predators by pesticides. Pesticides inefficiency can be reduced when treated areas are spatially aggregated and when grasslands are subsidized. Acknowledgement : |
| Keywords: | Land Economics/Use |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277258&r=env |
| By: | Weltin, M.; Zasada, I. |
| Abstract: | Sustainable intensification (SI) of agriculture covers a broad range of practices that in an optimal combination should contribute to environmental protection as well as to the economic viability of farming. Farmers are likely to make a simultaneous adoption decision on a utility maximising set of SI practices. The aim of this study is to (i) detect which SI practices are adopted, (ii) analyse the influence of farmers characteristics as well as farm attributes on the adoption decision and (iii) evaluate whether the selection of different SI practices is interdependent. We draw on farm survey data from 2017. We use a SI conceptual framework that assigns practices to four fields of action (FoA) from farm to landscape level and land use to structural optimisation. Using multivariate probit modelling, we assess the determinants of adopting SI within each FoA, controlling for possible correlation of the adoption of practices across FoA. Results indicate that most farmers apply SI practices in a combined portfolio. Farmers are more likely to apply field-level interventions than SI practices that require regional cooperation. Decisions show dependence on each other with a tendency for complementarities and path dependencies in SI adoption. Acknowledgement : This research was financially supported by the European Commission under grant agreement 652615 and conducted in the context of the ERA-Net FACCE SURPLUS project VITAL, with the national funders NWO (Netherlands), BMBF (Germany), INIA (Spain), ANR (France). |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276982&r=env |
| By: | Raffaelli, R.; Menapace, L. |
| Abstract: | Indirect questioning (IQ), i.e., asking respondents to predict the behavior of others, has been employed in stated preference studies as WTP elicitation technique. This technique, also referred to as Inferred Valuation, represents a promising approach for reducing hypothetical bias when it is not possible to sell actual goods to participants and when the social desirability bias is a potential problem (e.g., preferences for sustainable food attributes). To date, several issues associated to the use of IQ have not been adequately investigated. We carried out a Discrete Choice Experiment on field to verify the effects on estimated WTPs of: i) different IQ framing, ii) monetary incentives associated to predictions; and iii) the order of presentation. First, by employing two different question formats (e.g. asking to predict others behavior in a real market situation or in a hypothetical situation) we uncover how respondents are able to anticipate the tendency of others to provide socially desirable answers. Second, monetary incentives create a rewarding environment that indirectly affects WTPs obtained from direct questions. Third, we uncover a potential debiasing effect on WTPs of asking respondents to make predictions about others before stating their own preferences, which could have interesting implications for practitioners. Acknowledgement : |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277039&r=env |
| By: | Pedzi Makumbe |
| Keywords: | Energy - Electric Power Energy - Energy Conservation & Efficiency Energy - Renewable Energy Energy - Solar Energy |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:29141&r=env |
| By: | Nunez, A.L.; Fiorentino, R. |
| Abstract: | The purpose of this report is to provide an evaluation of the impact of supplementary irrigation in grain production in the northern area of the Province Buenos Aires, Argentina within the framework of risk analysis and with emphasis on risk related to weather. An economic analysis of a productive model in the mentioned area, characterized by fertile soils and considering a farm of 400 hectares destined integrally to the production of grains is carefully developed. This analysis clearly shows that the main impact of supplementary irrigation is associated with the reduction of variability in yields and with the increase of expected farm income and net revenue. The rate of return on investment on irrigated agriculture more than doubles the one related to rainfed agriculture. Acknowledgement : My name is Anibal Leandro Nu ez, argentinean economist finishing the studies of magister in agrarian economy (Universidad de Buenos Aires). I am currently working in the Ministery of Agro-industry. The work was done in conjunction with Dr. Raul Fiorentino (Ph.D University of California in Davis), who also works in the Ministery of Agro-industry. The purpose of this report is to provide an evaluation of the impact of supplementary irrigation in grain production in the northern area of the Province Buenos Aires, Argentina within the framework of risk analysis and with emphasis on risk related to weather. |
| Keywords: | Crop Production/Industries |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277503&r=env |
| By: | Lukasz Wyrowski; Baher El-Hifnawi |
| Keywords: | Energy - Energy Conservation & Efficiency Energy - Energy and Environment Environment - Climate Change Mitigation and Green House Gases Urban Development - Transport in Urban Areas Transport - Transport Economics Policy & Planning |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:30492&r=env |
| By: | Christoph Weissbart |
| Abstract: | Market integration is seen as a complementary measure to decarbonize energy markets. In the context of power markets, this translates into regions that coordinate to maximize welfare in the power market with respect to a climate target. Yet, the maximization of overall welfare through cooperation leads to redistribution and can result in the reduction of a region's welfare compared to the case without cooperation. This paper assesses why cooperation in the European power market is not stable from the perspective of single regions and identifies cost allocations that increase fairness. In a first step, the EU-REGEN model is applied to find the future equilibrium outcome of the European power market under a cooperative, subadditive cost-sharing game. Secondly, resulting cost allocations are analyzed by means of cooperative game theory concepts. Results show that the value of cooperation is a € 69 billion reduction in discounted system cost and rational behavior of regions can maintain at most 16 % of this reduction. The evaluation of alternative cost allocations reveals the trade-off between accounting for robustness against cost changes and individual rationality. Moreover, the cost-efficient decarbonization path of the European power sector under the grand coalition is characterized by the interplay between wind power, gas power, and biomass with geologic storage of CO2. Last, with singleton coalitions only, the market outcome shifts to a higher contribution from nuclear power. |
| Keywords: | decision under risk, time constraints, opportunity costs, rational behavior, lab experiment, structural estimation, drift diffusion model |
| JEL: | C60 C70 L90 Q40 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ifowps:_270&r=env |