|
on Environmental Economics |
|
Issue of 2019‒04‒08
forty-two papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Jin, Wei; Zhang, ZhongXiang |
| Abstract: | The existing studies on Green Paradox and stranded assets focus on dirty exhaustible assets (fossil fuel reserves) and show that environmental regulations, by changing the costs of dirty inputs relative to clean ones, lead to replacements of the former by the latter and stranding of dirty assets due to perfect substitution. It, in turn, induces acceleration of dirty resource extractions and pollution emissions for fear of dirty assets becoming stranded - the Green Paradox effect. This paper uses an endogenous growth framework to revisit the problem of Green Paradox and stranded assets by taking a new perspective that focuses on capital accumulation with investment irreversibility. We show that if 1) direct irreversibility of investment does not rule out the indirect channel of converting dirty capital goods into clean ones through final goods allocations, and 2) interactions between dirty and clean capital as imperfect substitutes can generate reciprocal effects, then environmental regulation, through directing investment towards clean capital, does not necessarily leads to asset stranding of dirty capital. Accumulation of clean capital with a pollution-saving effect offsets the polluting impact of dirty one and leads to reversed Green Paradox. We further propose an endogenous growth mechanism through which the accumulation of both dirty and clean capital, as well as environmental improvement, can be sustained in the long run without converging to the steady state. |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2019–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemth:281286&r=all |
| By: | Humberto Llavador; John E. Roemer |
| Abstract: | Carbon budgets are a useful way to frame the climate mitigation challenge and much easier to agree upon than the allocation of emissions. We propose a mechanism with countries agreeing on the global carbon budget, while the decision to emit is decentralized at the country level. The revenue is collected in a global fund and allocated according to endogenously defined 10 weights proportional to the marginal cost of climate change. The proposal features a unanimous agreement of the national citizenries of the world and global Pareto efficiency. We run a simulation in the spirit of the Paris Agreement, with zero emissions after 2055. At the Global Unanimity Equilibrium, permits are priced at 90$/tC, yielding 1.3 trillion dollars annually. Africa, India and the less developed countries in Asia are the only net recipients, while the US 15 and China are the largest net contributors. |
| Keywords: | carbon budget, emissions, international agreement, permits, climate change |
| JEL: | Q54 Q56 Q58 F53 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1084&r=all |
| By: | Duc Hong Vo (Business and Economics Research Group Ho Chi Minh City Open University, Vietnam.); Ha Minh Nguyen (Ho Chi Minh City Open University, Vietnam.); Anh The Vo (Business and Economics Research Group Ho Chi Minh City Open University, Vietnam.); Michael McAleer (Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute Erasmus School of Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of Madrid, Spain And Institute of Advanced Sciences Yokohama National University, Japan.) |
| Abstract: | The paper investigates the role of consumption of both renewable and sustainable energy, as well as alternative and nuclear energy, in mitigating the effects of carbon dioxide (CO2) emissions, based on the Environmental Kuznets Curve (EKC). The papers introduces a novel variable to capture trade openness, which appears to be a crucial factor in inter-regional co-operation and development, in order to evaluate its effect on the environment, The empirical analysis is based on a sample of nine signatories to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for the period 1971-2014, which is based on data availability. The empirical analysis is based on several time series econometric methods, such as the cointegration test, two long run estimators, namely the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methods, as well as the Granger causality test. There are several noteworthy empirical findings: it is possible to confirm the U-shaped EKC hypothesis for six countries, namely Australia, Canada, Chile, New Zealand, Peru and Vietnam; there is no evidence of the EKC for Mexico; a reverse-shaped EKC is observed for Japan and Malaysia, there are long run relationships among the variables, the adoption of either renewable energy, or alternative energy and nuclear energy, mitigates CO2 emissions, trade openness leads to more beneficial than harmful impacts in the long run, the Granger causality tests show more bi-directional-relationships between the variables in the long run, and the Granger causality tests show more uni-directional-relationships between the variables in the short run. |
| Keywords: | Renewable and sustainable energy, Alternative energy, Nuclear energy, Carbon emissions, CPTPP, EKC hypothesis, DOLS, FMOLS, Granger causality, VECM. |
| JEL: | C12 C52 Q42 Q43 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:doicae:1908&r=all |
| By: | Simon Dikau and Ulrich Volz; Ulrich Volz (Department of Economics, SOAS University of London, UK) |
| Abstract: | This paper examines to what extent climate-related risks and mitigation policies fit into the current set of central bank mandates and objectives. To this end, we conduct a detailed analysis of central bank mandates and objectives, using the IMF's Central Bank Legislation Database, and compare these to current arrangements and sustainability responsibilities that central banks have adopted in practice. To scrutinise the alignment of mandates with climate-related policies, we differentiate between the impact of environmental factors on the conventional core objectives of central banking, and a potential promotional role of central banks with regard to green finance and sustainability. Of the 133 central banks in our sample, only 12% have explicit sustainability mandates while 29% are mandated to support the government's policy priorities, which in most cases includes sustainability goals. However, given that climate risks can directly impact on traditional core responsibilities of central banks, most notably monetary and financial stability, even central banks without explicit or implicit sustainability mandate ought to incorporate climate- and mitigation-risks into their core policy implementation frameworks in order to efficiently and successfully safeguard price and financial stability. |
| Keywords: | Central banks, central bank mandates, green finance |
| JEL: | Q5 E5 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:soa:wpaper:222&r=all |
| By: | Christiane Heisse and Risa Morimoto (Department of Economics, SOAS University of London, UK) |
| Abstract: | We study the impact of rainfall risk on fertiliser use by Tanzanian maize farmers using newly available spatially disaggregated agronomic survey data on Tanzanian maize producers. We show that fertiliser use is highly sensitive to rainfall risks. Our discussion embeds these findings into the wider debate around environmental sustainability and mineral fertilisers, thus relating directly to the country’s government efforts of climate mainstreaming into their (agricultural) policies. We conclude that chemical fertilisers are useful for agricultural productivity growth but that they should be used to supplement more economically and environmentally sustainable practices. |
| Keywords: | Climate change, fertilisers, sustainable development, Tanzania, Maize farmers, panel analysis |
| JEL: | Q10 Q15 Q56 R15 R28 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:soa:wpaper:217&r=all |
| By: | Rotaris, Lucia |
| Abstract: | Greenhouse gases emissions are inexorably rising worldwide and the frequency and disruptive power of extreme weather phenomena are dramatically increasing. Although command-and-control and regulation policies have been extensively used to mitigate climate change, more effective and potentially efficient policies are needed to curb the negative externalities produced by human activities. A carbon tax could make the case, but is seldom implemented due to its assumed political unpopularity. In order to estimate the acceptability and the willingness to pay (WTP) for a carbon tax, a contingent valuation experiment was administered in USA and in Italy to a sample of 150 university students. The research is innovative both for the topic chosen, since there are no studies testing the WTP for a carbon tax in the Italian context nor comparing it with the estimates obtained for other countries, and for the methodology used to estimate the WTP, making use of random parameters logit models to obtain individual specific estimates of the median WTP. The results show that the median WTP ranges between a minimum of $161 and a maximum of $242, and varies according to the purposes proposed for the tax revenue use, the respondents’ beliefs and knowledge about climate change, and some sociodemographic characteristics of the respondents (age, gender, and political affiliation). The students’ preferences seem to be quite similar when the nationality of the respondents is taken into account. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2017–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemth:266283&r=all |
| By: | Wu, Jian-Xin; He, Ling-Yun; Zhang, ZhongXiang |
| Abstract: | This paper examines the long-run relationship between income and urban air pollution using a joint distribution dynamics approach. This approach enables to estimate the transition process and long-run distribution and to examine the mechanisms behind the evolution process. The approach is applied to a unique panel data of CO2, SO2 and PM2.5 (particulate matter smaller than 2.5μm) for 286 Chinese cities over the period 2002-2014. Strong persistence in the transition dynamics suggests that this convergence process may require a long time. The distribution dynamics analyses indicate that multiple equilibria are the major characteristics in the long-run relationship between income and urban air pollution in China, which implies that inter-regional technology spillover may be an important way to accelerate convergence. Our results further support the existence of poverty-environmental trap in PM2.5 concentrations. Thus, new environmental models are expected to be developed to explain this new stylized fact. The findings provide strong support for taking more aggressive measures that consider income and urban environment simultaneously to reduce poverty and air pollutions together in the Chinese cities. |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2019–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemth:285027&r=all |
| By: | Maarten J. Punt (Circular Economy and Social Entrepreneurship, Windesheim Honours College, Windesheim, The Netherlands); Brooks A. Kaiser (Department of Sociology, Environmental and Business Economics, University of Southern Denmark) |
| Abstract: | Seismic surveys can increase hydrocarbon deposit information, lowering subsequent expected costs of hydrocarbon exploration. Survey noise, however, can interfere with marine mammals and fishes, reducing fitness. Ice-covered Arctic waters temporally constrain both surveying and marine mammal species; damage mitigation requires temporal and spatial planning. The survey noise externality is stronger than that for drilling (Erbe, 2012); there is additional cost to marine species’ habitat versus drilling alone. We develop a spatially explicit bio-economic and Value-of-Information (VOI) model examining these tradeoffs and illustrate it for oil exploration decisions off the Western Greenlandic coast. We use cost-effectiveness to identify implicit thresholds for sound habitat quality conservation as a function of regulatory choices that have different impacts under different assumptions about the relative spatial values of marine mammal habitat maintenance. |
| Keywords: | Value of Information (VOI); seismic surveys; marine mammals; marine habitat; marine noise pollution; hydrocarbon exploration;Arctic oil and gas exploration; evaluation of regulatory programs; spatial bio-economic modelling |
| JEL: | D83 Q53 Q57 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:sdk:wpaper:2&r=all |
| By: | Pascale Combes Motel (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Bocar Samba Ba (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Sonia Schwartz (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Rare earth elements extraction induces pollution and the balance problem. In this article, we investigate how far recycling and environmental taxation challenge both questions. In a two-period framework, we assume a monopoly extractor in the first period that is in competition with one recycler in the second period. Our results depend on whether the recycling activity is bounded or not by extracted quantities. When recycling is not constrained, it does not change extraction in period 1 but has pro-competitive effects in period 2. The balance problem favors recycling in period 2 and reduces environmental damages in both periods. If recycling is limited, the extractor adopts a foreclosure strategy in the first period. The balance problem reduces extraction in both periods but also recycling. A second-best environmental taxation enables to reach the first-best outcome except in the second period of the bounded case. Environmental taxes have to be amended in order to take into account the recycling effect. They are never equal to the marginal damage. |
| Keywords: | Rare earth elements,Pollution,Balance problem,Recycling,Taxation,Cournot competition |
| Date: | 2019–03–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02065976&r=all |
| By: | van der Ploeg, Frederick; Rezai, Armon |
| Abstract: | A simple integrated assessment framework that gives rules for the optimal carbon price, transition to the carbon-free era and stranded carbon assets is presented, which highlights the ethical, economic, geophysical and political drivers of optimal climate policy. For the ethics we discuss the role of intergenerational inequality aversion and the discount rate, where we show the importance of lower discount rates for appraisal of longer run benefit and of policy makers using lower discount rates than private agents. The economics depends on the costs and rates of technical progress in production of fossil fuel, its substitute renewable energies and sequestration. The geophysics depends on the permanent and transient components of atmospheric carbon and the relatively fast temperature response, and we allow for positive feedbacks. The politics stems from international free-rider problems in absence of a global climate deal. We show how results change if different assumptions are made about each of the drivers of climate policy. Our main objective is to offer an easy back-on-the-envelope analysis, which can be used for teaching and communication with policy makers. |
| Keywords: | simple rules, climate policy, ethics, economics, geophysics, politics, discounting with declining discount rates, positive feedback, free riding |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus045:6890&r=all |
| By: | Dengler, Sebastian; Gerlagh, Reyer; Trautmann, Stefan T.; van de Kuilen, Gijs |
| Abstract: | We develop a dynamic resource extraction game that mimics the global multi-generation planning problem for climate change and fossil fuel extraction. We implement the game under different conditions in the laboratory. Compared to a ‘libertarian’ baseline condition, we find that policy interventions that provide a costly commitment device or reduce climate threshold uncertainty reduce resource extraction. We also study two conditions to assess the underlying social preferences and the viability of ecological dictatorship. Our results suggest that climate-change policies that focus on investments that lock the economy into carbon-free energy sources provide an important commitment device in the intertemporal cooperation problem. |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2017–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemth:263488&r=all |
| By: | Dunz, Nepomuk; Naqvi, Asjad; Monasterolo, Irene |
| Abstract: | It is increasingly recognized that banks might not be pricing adequately climate risks in the value of their loans contracts. This represents a barrier to scale up the green investments needed to align the economy to sustainability and to preserve financial stability. To overcome this barrier, climate-aligned policies, such as a revision of the microprudential banking framework (for example a Green Supporting Factor (GSF )), and the introduction of stable green fiscal policies (for example a Carbon Tax (CT )), have been advocated. However, understanding the conditions under which a GSF or a CT could represent an opportunity for scaling up green investments, while preventing trade-offs on risk for financial stability, is still insufficient. We contribute to fill this knowledge gap threefold. First, we analyse the risk transmission channels from climate-aligned policies, a GSF and a CT, to the credit market and the real economy via loans contracts. Second, we assess the reinforcing feedbacks leading to cascading macro-financial shocks. Third, we consider how banks could react to the policies, i.e., their climate sentiments. In this regard, we embed for the first- time banks climate sentiments, modelled as a non-linear adaptive forecasting function into a Stock-Flow Consistent model that represents agents and sectors of the real economy and the credit market as a network of interconnected balance sheets. Our results suggest that the GSF is not sufficient to effectively scale up green investments via a change in lending conditions to green firms. In contrast, the CT could shift the bank's loans and the green/brown firms' investments towards the green sector. Nevertheless, it could imply short-term negative transition effects on GDP growth and financial stability, according to how the policy is implemented. Finally, our results show that bank's anticipation of a climate-aligned policy, through stronger climate sentiments, could smooth the risk for financial stability and foster green investments. Thus, our results contribute to understand the conditions for the onset and the mitigation of climate-related financial risks and opportunities. |
| Keywords: | climate sentiments, climate risk, green supporting factor, carbon tax, financial stability, Stock-Flow Consistent modelling |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus045:6894&r=all |
| By: | Keisaku Higashida (School of Economics, Kwansei Gakuin University) |
| Abstract: | Using a laboratory experimental approach, this study examines the effect of institutional changes in the responsibility for paying inspection costs for environmental regulations on the behavior of polluters and authorities. In particular, we compare two schemes: one is that authorities always bear the inspection cost and the other is that polluters bear the cost in a given situation. We find that polluters comply with regulations more frequently in the latter than the former scheme, while the inspection behavior of authorities does not change significantly. Moreover, the cost-bearing change in the scheme induces income redistribution between polluters and authorities (pollutees or society). In addition, we introduce uncertainty about the occurrence of environmental damage, and find that the frequency of inspection is greater in the latter than the former scheme. Because both inspection and compliance costs increase, total payoff may decrease by the partial shift of responsibility for inspection cost from authorities to polluters. |
| Keywords: | Compliance, environmental regulation, inspection cost, laboratory experiment |
| JEL: | K32 Q52 Q58 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:189&r=all |
| By: | van der Ploeg, Frederick; Rezai, Armon |
| Abstract: | A simple rule for the optimal global price of carbon is presented, which captures the geo-physical, economic, and ethical drivers of climate policy as well as the effect of uncertainty about future growth of consumption. There is also a discussion of the optimal carbon budget and the amount of unburnable carbon and stranded fossil fuel reserves and a back-on-the-envelope expression are given for calculating these. It is also shown how one can derive the end of the carbon era and peak warming. This simple arithmetic for determining climate policy is meant to complement the simulations of large-scale integrated assessment model, and to give analytical understanding of the key determinants of climate policy. The simple rules perform very well in a full integrated assessment model. It is also shown how to take account of a 2 °C upper limit on global warming. Steady increases in the efficiency of labour do not affect the optimal price of carbon or the safe carbon budget, but do postpone the carbon-free era. |
| Keywords: | social cost of carbon, climate ethics, prudence, carbon budget, peak warming, end of carbon era, stranded assets, simple rules, energy efficiency |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus045:6893&r=all |
| By: | Binder, Martin; Blankenberg, Ann-Kathrin; Welsch, Heinz |
| Abstract: | Pro-environmental behavior depends on the behavior of others. For a UK panel data set, we find that individuals' pro-environmental behavior increases in the behavior of peers in their region. This happens the more so, the greener the self-image of an individual. Diversity of regional green behavior plays a further role, with fractionalization negatively related to pro-environmental behavior and polarization positively so: peer pressure exerts a less strong influence when behaviors are diverse, and a stronger influence when behaviors are very polarized. |
| Keywords: | pro-environmental behavior,peer influence,prevalence,fractionalization,polarization,UKHLS |
| JEL: | Q53 Q56 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:367&r=all |
| By: | Erin T. Mansur; Glenn Sheriff |
| Abstract: | We compare the spatial distribution of emissions from Southern California’s pollution-trading program with that of a counterfactual command-and-control policy. We develop a normatively significant metric with which to rank the various distributions in a manner consistent with an explicit well-behaved preference structure. Results suggest trading benefited all demographic groups and generated a more equitable overall distribution of emissions even after controlling for its lower aggregate emissions. Upper-income and white demographics had more desirable distributions relative to low-income and some minority groups under the RECLAIM trading program, however, and population shifts over time may have undermined anticipated gains for African Americans. |
| JEL: | D63 Q52 Q53 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25666&r=all |
| By: | Juswanto, Wawan (Asian Development Bank Institute); Kelkar, Vedanti (Asian Development Bank Institute) |
| Abstract: | More than half of the world’s megacities are in Asia and the Pacific, and they constitute hubs of knowledge, culture, commerce, and industry. Parallel to the rapid growth of Asian economies, intense infrastructure investments are necessary to cater to the needs of the growing urban populations. Building quality and resilient infrastructure in developing Asia will require financial investments of approximately $1.7 trillion annually until 2030 to withstand the shocks of climate change (ADB 2017). Especially in the Pacific island countries (PICs) where regional interconnectivity and integration remains a challenge with rapid urbanization, providing sustainable infrastructure is key to ensuring the livelihood, economy, and climate adaptation of the region and necessary to achieve the Sustainable Development Goals. |
| Keywords: | urbanization; sustainable infrastructure; informal dwellers; housing |
| Date: | 2019–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbipb:2019&r=all |
| By: | Surender Kumar (Department of Economics, Delhi School of Economics); Rakesh Kumar Jain (Indian Railways, Government of India & Department of Business Economics, South Campus, University of Delhi) |
| Abstract: | This paper measures carbon-sensitive efficiency and productivity growth in technologically heterogeneous coal-fired thermal power plants in India for the period of 2000 to 2013. It uses a unique data set of 56 plants, obtained petitioning the Right to Information Act 2005. We apply ‘within-MLE’ fixed effects stochastic frontier model to get consistent estimates of meta-directional output distance function. The thermal power plants are grouped in two categories: central sector and state sector. We find that the state sector plants have higher potential to simultaneously increase electricity generation and reduce carbon emission than the central sector plants. If all the state and central sectors plants were made to operate on the meta-frontier, reduction of 98 million tonnes of CO2 could have been achieved. Carbon-sensitive productivity growth in the central sector plants is higher than the plants in state sector, though in both the sectors productivity growth is governed by carbon-sensitive innovation effect. Commercialisation or autonomy in electricity generation also induces carbon-sensitive productivity growth and reduces carbon-sensitive productivity growth gap. |
| Keywords: | Carbon-sensitive productivity, Luenberger productivity indicator, Stochastic meta-frontier, Indian thermal power plants |
| JEL: | C61 D24 Q54 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:cde:cdewps:297&r=all |
| By: | Seetha Ram, KE (Asian Development Bank Institute); Hashimoto, Kazushi (Asian Development Bank Institute); Bugalia, Nikhil (Asian Development Bank Institute) |
| Abstract: | Even though access to improved sanitation facilities has improved, progress in access to safely managed sanitation services is still slow. Globally, 4.5 billion people still lack access to safely managed sanitation (UNICEF and WHO 2017). Such inappropriate management of excreta is a main source of pollution of public water bodies, rivers, canals, and ponds, particularly in the urban areas of many Asian developing countries. According to a survey conducted by the Japan International Cooperation Agency (2012), in Jakarta, Indonesia, although the share of residents with access to improved sanitation facilities has reached 87% (85% to septic tanks and 2% to sewerage systems), the rivers in the city are seriously polluted. |
| Keywords: | sanitation; wastewater management; packaged aerated wastewater treatment plants; desludging |
| Date: | 2019–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbipb:0018&r=all |
| By: | van der Ploeg, Frederick; Rezai, Armon |
| Abstract: | With the election of President Trump, climate deniers feel emboldened and moved from the fringes to the centre of global policy making. We study how an agnostic approach to policy, based on Pascal's wager and allowing for subjective prior probability beliefs about whether climate deniers are right, prices carbon. Using the DICE integrated assessment model, we find that assigning a 10% chance of climate deniers being correct lowers the global price on carbon in 2020 only marginally: from $21 to $19 per ton of carbon dioxide if policymakers apply "Nordhaus discounting" and from $91 to $84 per ton of carbon dioxide if they apply "Stern discounting". Agnostics' reflection of remaining scientific uncertainty leaves climate policy essentially unchanged. The robustness of an ambitious climate policy also follows from using the max-min or the min-max regret principle. Letting the coefficient of relative ambiguity aversion vary from zero, corresponding to expected utility analysis, to infinity, corresponding to the max-min principle, we show how policy makers deal with fundamental climate model uncertainty if they are prepared to assign prior probabilities to different views of the world being correct. Allowing for an ethical discount rate and a higher market discount rate and for a wide range of sensitivity exercises including damage uncertainty, we show that pricing carbon is the robust response under rising climate scepticism. |
| Keywords: | climate model uncertainty, differential discount rates, climate scepticism, robust climate policies, max-min, min-max regret, ambiguity aversion, DICE integrated assessment model |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus045:6895&r=all |
| By: | David M. McEvoy; Tobias Haller; Esther Blanco |
| Abstract: | This study presents experimental results on the role that non-binding pledges have on the ability of resource users to manage the threat of probabilistic group damages in two separate environments. First, an environment where agents can work collectively to try to mitigate the root cause of the damage (mitigation), which is a form of public good. Second, an environment where in addition to collective mitigation, agents can work autonomously to protect themselves from the damages if they occur (adaptation). The tension is that mitigation and adaptation investments are strategic substitutes. We begin with a model that points to how non-binding pledges could be more effective in a world with both mitigation and adaptation strategies, compared to mitigation only. First-period results show that (i) consistent with previous literature, pledges in a mitigation-only envi- ronment do not increase average investments in collective mitigation, but (ii) when both mitigation and adaptation opportunities exist, pledges lead to higher investment in col- lective mitigation, lower investment in adaptation and increased efficiency. Although the average treatment effect disappears over time as the amount pledged decreases, pledges remain significant predictors of mitigation investments over the course of the experiment. |
| Keywords: | social dilemmas, economic experiments, behavioral economics, public goods, mitigation, adaptation, environmental damages |
| JEL: | D9 Q54 H4 C92 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2019-04&r=all |
| By: | Marco, Jorge; Goetz, Renan |
| Abstract: | This study revisits the problem of the tragedy of the commons. Extracting agents participate in an evolutionary game in a complex social network and are subject to social pressure if they do not comply with the social norms. Social pressure depends on the dynamics of the resource, the network and the population of compliers. We analyze the influence the network structure has on the agents’ behavior and determine the economic value of the intangible good - social pressure. For a socially optimal management of the resource, an initially high share of compliers is necessary but is not sufficient. The analysis shows the extent to which the remaining level of the resource, the share of compliers and the size, density and local cohesiveness of the network contribute to overcoming the tragedy of the commons. The study suggests that the origin of the problem – shortsighted behavior - is also the starting point for a solution in the form of a one-time payment. A numerical analysis of a social network comprising 7500 agents and a realistic topological structure is performed using empirical data from the western La Mancha aquifer in Spain. |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2017–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemth:259486&r=all |
| By: | Viviana Asara |
| Abstract: | The 'movements of the squares' involved first and foremost an awakening or re-discovering of the radical imagination both in the square encampments, and in later projects created with the movements' decentralizations. The new alternative projects born after the square have materialized the movements' radical imaginaries in urban environments, extending and deepening concerns of broad political change over everyday life. Based on ethnographic work on the Indignados' movement in the city of Barcelona, this paper delves more particularly into three Indignant urban projects. It untangles three common and interlinked radical imaginaries both embodied and actualized in participants' social practices, and further orienting their future visions: commons, autonomy and ecologism. Scrutinizing their meaning, it also sheds light on connected issues such new ways of interfacing with local state authorities and redefining the boundaries between the public and the common. It shows that the ecologism imaginary cannot be properly grasped if disconnected from the other two imaginaries, and argues that a transformative eco-politics can only be claimed as such if it is able to articulate such an integrated vision typical of 'socio-environmental movements'. |
| Keywords: | Indignados, imaginary, movement of the squares, commons, autonomy, environment |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2018_04&r=all |
| By: | Gary Gaukler; Michael Ketzenberg; Victoria Salin |
| Abstract: | Our research addresses the value of information (VOI) for the use of a product's time and temperature history (TTH). Using TTH information, the retailer can set expiration dates dynamically, based on known environmental conditions. This dynamically set expiration date corresponds to the maximum number of periods that inventory may remain available for sale before it must be removed from inventory and discarded (outdated). In current static practice, however, without the availability of TTH, environmental conditions are not known and all units of inventory receive the same expiration date, generally predicated on worst case conditions. Our research demonstrates that information on the TTH as a product flows through the supply chain can be very valuable. Using the example of a supply chain for fresh packaged tomatoes, we quantify the value of TTH information when used for dynamic expiration date setting. We find that the VOI is quite sensitive to environmental and parametric settings, ranging upwards to 90.5% with a mean of 41.2%. Our studies demonstrate that the cost savings that leads to the VOI from TTH and expiration dating stems from two major sources: eliminating the chance of selling perished product, and greatly decreasing the rate at which lost sales occur. In addition, we show that when dynamic expiration dating is used, average product freshness at the time of sale increases significantly. This indicates a win-win situation where costs to the retailer are reduced, and also additional value for the consumer is created. We also extend our analysis into the impact of imperfect information and find that the VOI is fairly robust, up to error levels corresponding to a mean absolute percentage error (MAPE) of approximately 12%. Median VOI at those error levels is 16.5%. The impact of errors, however, differs depending on the model parameterization and we find that under certain settings, the VOI can remain significant for much larger values of MAPE. |
| Keywords: | Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2017–07–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:tamagr:285205&r=all |
| By: | Yagi, Michiyuki; Kokubu, Katsuhiko |
| Abstract: | From the perspective of material flow cost accounting (MFCA), which treats both material and financial flows within a company, this study proposes a corporate waste decomposition model to investigate the effects of material and financial factors on corporate waste generation. The proposed model decomposes waste into the material loss (waste ratio of raw materials [WRMat]), raw material-to-cost ratio (RtCR; material use efficiency), cost-to-sales ratio (or COGSR), total asset turnover ratio (TATR), leverage, and total equity. As an application, the waste decomposition analysis is performed using the log-mean Divisia index (LMDI) method, and 125 listed firms in 5 Japanese manufacturing sectors from 2010 to 2015 are analyzed. The LMDI results show that the RtCR, the most crucial term in MFCA, had the largest effect on increases in waste generation as of 2015; however, this effect is not so robust among sectors over the years, implying that MFCA is valid mainly for specific companies/sectors or years. Also, corporate environmental burdens (waste and carbon emission) are likely to be correlated negatively with leverage and positively with total equity in the models, implying that the financial and stock markets have an essential role in deciding corporate environmental burdens. |
| Keywords: | material flow cost accounting; waste efficiency; Japanese manufacturing industries; log-mean Divisia index |
| JEL: | Q53 Q56 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:92999&r=all |
| By: | Xavier Pautrel |
| Abstract: | We re-examine the impact of environmental taxation on health and output, in the presence of labor market frictions. Our main findings are that matching process and wage bargaining introduce new channels of transmission of environmental taxation on the economy such that assuming perfect labor market leads to over-estimate the positive impact of environmental taxation on health. We also demonstrate that rising abatement expenditures as a way of tightening the environmental policy would be better for health than increasing environmental tax in the presence of market labor imperfections. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2017–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemth:263158&r=all |
| By: | Han, Y.; Li, V.; Lam, J., Pollitt, M.; Pollitt, M. |
| Abstract: | Over the last three decades, air pollution has become a major environmental challenge in many of the fast growing cities in China, including Beijing. Given that any long-term exposure to high-levels of air pollution has devastating health consequences, accurately monitoring and reporting air pollution information to the public is critical for ensuring public health and safety and facilitating rigorous air pollution and health-related scientific research. Recent statistical research examining China’s air quality data has posed questions regarding data accuracy, especially data reported during the Blue Sky Day (BSD) period (2000 – 2012), though the accuracy of publicly available air quality data in China has improved gradually over the recent years (2013 – 2017). To the best of our understanding, no attempt has been made to re-estimate the air quality data during the BSD period. In this paper, we put forward a machine-learning model to re-estimate the official air quality data during the BSD period of 2008 – 2012, based on the PM2.5 data of the Beijing US Embassy, and the proxy data covering Aerosol Optical Depth (AOD) and meteorology. Results have shown that the average re-estimated daily air quality values are respectively 64% and 61% higher than the official values, for air quality index (AQI) and AQI equivalent PM2.5, during the BSD period of 2008 to 2012. Moreover, the re-estimated BSD air quality data exhibit reduced statistical discontinuity and irregularity, based on our validation tests. The results suggest that the proposed data re-estimation methodology has the potential to provide more justifiable historical air quality data for evidence-based environmental decision-making in China. |
| Keywords: | Blue Sky Day (BSD), Air Quality, Beijing, Data Irregularity, Bayesian LSTM, Data Estimation |
| JEL: | C53 C63 Q53 |
| Date: | 2019–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1929&r=all |
| By: | null null (Centre International de Recherche sur l'Environnement et le Développement (CNRS, Ecole des ponts, CIRAD, EHESS, AgroParisTech) (CIRED)); Eloi Laurent (Observatoire français des conjonctures économiques) |
| Keywords: | Fiscalité; Taxe carbone; Justice sociale; Transition écologique; Précarité énergétique |
| JEL: | H23 Q52 Q58 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/5j4beego4m8vk98ao7kolj4865&r=all |
| By: | Rubio, Santiago J. |
| Abstract: | This paper studies the impact of adaptation on the stability of an international emission agreement. To address this issue we solve a three-stage coalition formation game where in the first stage countries decide whether or not to sign the agreement. Then, in the second stage, signatories (playing together) and non-signatories (playing individually) select their levels of emissions. Finally, in the third stage, each country decides on its level of adaptation non co-operatively. We solve this game for two models. For both, it is assumed that damages are linear with respect to emissions which guarantee that emissions are strategic complements in the second stage of the game. However, for the first model adaptation reduces the marginal damages of emissions in a multiplicative way whereas for the second model the reduction occurs in an additive way. Our analysis shows that the models yield different predictions in terms of participation. In the first case, we find that the larger the gains of full cooperation, the larger the cooperation. However, in the second case, the unique stable agreement we find consists of three countries regardless of the gains of full cooperation. These results suggest that complementarity can play in favor of cooperation but that it is not a sufficient condition to obtain more participation in an emission agreement. Finally, we would like to point out that our research indicates that the way adaptation reduces damages plays a critical role over the outcome of the coalition formation game. |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2018–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemth:276179&r=all |
| By: | ITF |
| Abstract: | This report identifies proven measures that decrease road freight’s CO2 emissions. Goods transport by road consumes around 50% of all diesel fuel and accounts for 80% of the global net increase in diesel use since 2000. Projections see road freight activity at least doubling to 2050, offsetting efficiency gains and increasing road freight CO2 emissions. The report highlights policy areas that need adjustment for effective decarbonisation of road freight and points to fields where more robust evidence through further research is needed. It collects insights held at a workshop organised by the International Transport Forum in June 2018 in Paris and features the results of a survey among experts. |
| Date: | 2018–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:64-en&r=all |
| By: | Spash, Clive L.; Smith, Tone |
| Abstract: | This discussion paper looks at the connections between economies and ecosystems, or more generally biophysical reality. The term "economies" is used, rather than "the economy", because of the prevalent false claim that there is only one type of economic system that is possible. We outline how the ecological crises is linked to the dominant drive for economic growth and the tendency to equate growth with progress and development; common even amongst those apparently critical of the need for continued growth in the materially rich countries. The unreality of mainstream economics is epitomised by the accolades given to those justifying mild reformist policy in response to human induced climate change in order to continue the pursuit of economic growth. We emphasise the structural aspects of economies as emergent from and dependent upon the structure and functioning of both society and ecology (energy and material flows). Finally, that the structure of the global economy must change to avoid social ecological collapse, poses the questions of how that can be achieved and what sort of economics is necessary? We explain the need for: (i) a structural change that addresses the currently dysfunctional relationships between economic, social and ecological systems, and (ii) an economics that is interdisciplinary and realist about its social and natural science relations. |
| Keywords: | growth, development, economics, ecosystems, thermodynamics, political economy, critical realism |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus009:6903&r=all |
| By: | Matthew Gibson (Williams College); Jamie T. Mullins (University of Massachusetts-Amherst); Alison Hill (Analysis Group) |
| Abstract: | Applying a difference-in-differences framework to a census of residential property transactions in New York City 2003-2017, we estimate the price effects of three flood risk signals: 1) the Biggert-Waters Flood Insurance Reform Act, which increased premiums; 2) Hurricane Sandy; and 3) new floodplain maps reflecting three decades of climate change. Estimates are negative for all three signals and some are large: properties included in the new floodplain after escaping flooding by Sandy experienced 18 percent price reductions. We investigate possible mechanisms, including selection of properties into the market and residential sorting. Finding no evidence for these, we develop a parsimonious theoretical model to study changes in flood beliefs. The model allows decomposition of our reduced-form estimates into the effects of insurance premium changes and belief updating. Results suggest that the new maps induced substantially larger belief changes than insurance reform. |
| JEL: | Q54 Q58 R30 G22 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:wil:wileco:2019-02&r=all |
| By: | Clive Spash; Tone Smith |
| Abstract: | This discussion paper looks at the connections between economies and ecosystems, or more generally biophysical reality. The term ‘economies’ is used, rather than ‘the economy’, because of the prevalent false claim that there is only one type of economic system that is possible. We outline how the ecological crises is linked to the dominant drive for economic growth and the tendency to equate growth with progress and development; common even amongst those apparently critical of the need for continued growth in the materially rich countries. The unreality of mainstream economics is epitomised by the accolades given to those justifying mild reformist policy in response to human induced climate change in order to continue the pursuit of economic growth. We emphasise the structural aspects of economies as emergent from and dependent upon the structure and functioning of both society and ecology (energy and material flows). Finally, that the structure of the global economy must change to avoid social ecological collapse, poses the questions of how that can be achieved and what sort of economics is necessary? We explain the need for: (i) a structural change that addresses the currently dysfunctional relationships between economic, social and ecological systems, and (ii) an economics that is interdisciplinary and realist about its social and natural science relations. |
| Keywords: | growth, development, economics, ecosystems, thermodynamics, political economy, critical realism |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2019_03&r=all |
| By: | P. Eynaud (IAE Paris - Sorbonne Business School) |
| Abstract: | Certains auteurs soulignent que l'économie rend compte d'une dépendance de l'Homme par rapport à la nature et à ses semblables. La question de la soutenabilité n'est pas simple à traiter car nous faisons face à un double péril : l'exploitation abusive des ressources naturelles met en danger l'équilibre du climat et de la biodiversité, et les inégalités croissantes condamnent notre capacité à faire société. Dans son livre « Insoutenables inégalités », le chercheur Lucas Chancel nous montre d'ailleurs clairement que les deux questions, sociale et environnementale, ne peuvent pas être dissociées. Face à de tels enjeux, les sciences de gestion peuvent grandement contribuer à l'affirmation d'une double solidarité : celle qui relie les hommes et la nature, et celle qui unit les hommes entre eux. Un tel effort ne se décrète pas. Il s'organise. Et c'est là que leur apport est déterminant. Il faut toutefois reconnaître que la solidarité n'est que peu prise en compte dans l'histoire de la pensée organisationnelle. On peut même affirmer qu'elle est négligée dans l'enseignement de la gestion, dont la pédagogie reste trop centrée sur le modèle de l'entreprise marchande et sur ses attendus. Pourquoi les manuels de gestion retiennent-ils de Smith le concept de « main invisible » et pas son attention à la question de la redistribution ? Et pourquoi ne jamais mentionner Tocqueville lorsqu'il répond à Smith en pointant l'apport des organisations démocratiques dans la richesse des nations ? |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02063878&r=all |
| By: | Alessandro Cantelmo; Leo Bonato; Giovanni Melina; Gonzalo Salinas |
| Abstract: | Resilience to climate change and natural disasters hinges on two fundamental elements: financial protection —insurance and self-insurance— and structural protection —investment in adaptation. Using a dynamic general equilibrium model calibrated to the St. Lucia’s economy, this paper shows that both strategies considerably reduce the output loss from natural disasters and studies the conditions under which each of the two strategies provides the best protection. While structural protection normally delivers a larger payoff because of its direct dampening effect on the cost of disasters, financial protection is superior when liquidity constraints limit the ability of the government to rebuild public capital promptly. The estimated trade-off is very sensitive to the efficiency of public investment. |
| Date: | 2019–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:19/54&r=all |
| By: | Katsushi S. Imai (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan, and Department of Economics, The University of Manchester, UK) |
| Abstract: | This paper examines the role of the transformation of the rural agricultural sector in achieving Sustainable Development Goals 1, 2 and 10 drawing upon the cross-country panel data over the past four decades for 105 developing countries. We define agricultural transformation by three different indices, namely, (i) the agricultural openness index – the share of agricultural export in agricultural value added of the country, (ii) the commercialization index - the share of processed agricultural products, fruits, green vegetables, and meats in all primary and processed agricultural products, and (iii) the product diversification index to capture the extent to which the country diversify the agricultural production. Drawing upon the dynamic panel model, we have found that transformation of the agricultural sector in terms of agricultural openness has increased the overall agricultural productivity and its growth and has consequently reduced national, rural and urban poverty significantly. Agricultural openness alleviates child malnutrition, namely underweight and stunting, and improves food security in terms of energy supply adequacy, protein supply, lack of food deficit and reduction of the prevalence of anaemia among pregnant women. The agricultural openness is negatively associated with the Gini coefficient at both national and subnational levels for both rural and urban areas. Except for Latin America, product diversification reduces agricultural productivity, implying the efficiency gains from economies of scale of fewer crops. On the other hand, the commercialisation does not generally increase the agricultural productivity and this may be related to a positive effect of the higher share of cereal production on productivity observed in Sub-Saharan Africa and Latin America. Policies improving the efficiency of agricultural production, for example through better rural infrastructure, or promoting agricultural exports, through regional economic integrations or reducing transaction costs such as tariff and non-tariff barriers, would help to achieve SDGs indirectly through the productivity improvement. |
| Keywords: | Agricultural Transformation, Rural Transformation, Poverty, Inequality, Nutrition, Hunger, Sustainable Development Goals (SDGs) |
| JEL: | C23 I30 I14 O18 Q19 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2019-04&r=all |
| By: | Ha Minh Nguyen (Ho Chi Minh City Open University, Vietnam.); Ngoc Hoang Bui (Graduate School, Ho Chi Minh City Open University, Vietnam, University of Labour and Social Affairs, Vietnam.); Duc Hong Vo (Business and Economics Research Group Ho Chi Minh City Open University, Vietnam.); Michael McAleer (Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute Erasmus School of Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of Madrid, Spain And Institute of Advanced Sciences Yokohama National University, Japan.) |
| Abstract: | The importance of non-renewable, renewable and sustainable energy sources and energy consumption in the economic development strategy of a country is undeniable. The purpose of the paper is to investigate the impacts of energy consumption on the economic growth of Vietnam during the 1980-2014 period. By applying the Autoregressive Distributed Lag (ARDL) model of Pesaran et al. (2001), and the Granger causality test of Toda and Yamamoto (1995), the empirical results provide evidence that electricity consumption has positive impacts on Vietnam’s economic growth in both the short run and long run. For public policy prescriptions, the empirical evidence suggests that an exploration of new sources of renewable and sustainable energy is essential for long run economic development. |
| Keywords: | Energy consumption, Renewable and sustainable energy, Economic growth, Economic development, ARDL, Granger causality. |
| JEL: | F42 O13 O47 Q42 Q43 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:doicae:1910&r=all |
| By: | World Bank Group |
| Keywords: | Public Sector Development - Public Sector Management and Reform Health, Nutrition and Population - Health and Sanitation Poverty Reduction - Poverty and Health Water Resources - Water and Human Health Water Supply and Sanitation - Rural Water Supply and Sanitation Water Supply and Sanitation - Small Private Water Supply Providers Water Supply and Sanitation - Town Water Supply and Sanitation Water Supply and Sanitation - Urban Water Supply and Sanitation Water Supply and Sanitation - Water Supply and Sanitation Economics |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:30166&r=all |
| By: | Esther Perez Ruiz; Mauricio Soto |
| Abstract: | Raising living standards continues to be the main challenge facing Guatemala, as a matter of economic success and social cohesion. This paper discusses the spending, financing, and delivery capacity aspects of a viable development strategy for Guatemala couched within the United Nations Sustainable Development Goals (SDGs) agenda. Overall, Guatemala faces additional spending of about 8½ percent of GDP in 2030 to attain health, education, and roads, water, and sanitation infrastructure SDGs. While substantial, these cost estimates are commensurate with a well-defined financing strategy encompassing continuing tax administration efforts, broad-based tax reform, scaled-up private sector participation, and greater spending efficiency. Improving delivery capacities is also essential to secure access of those public goods to all Guatemalans, irrespective of their place of residence, ethnic group, or ability to pay. |
| Date: | 2019–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:19/60&r=all |
| By: | José Cobián Álvarez; Budy P. Resosudarmo |
| Abstract: | Although many megacities in developing countries experience floods that affect a large number of people, relatively few empirical studies have evaluated the costs involved. This paper estimates such costs by conducting a hedonic price analysis of the impacts of floods on the housing market in Jakarta. A robust regression technique on a simple linear transformation model, and a maximum likelihood estimation technique on the spatial lag version of the simple linear transformation model are utilized to estimate the correlation between the level of the 2007 floods and monthly housing rental prices in Jakarta, Indonesia. This paper concludes that in developing countries’ megacities the total cost of floods is not as considerable as the total estimated cost of making the city of Jakarta floodfree |
| Keywords: | Environmental economics, hedonic price analysis, spatial analysis, flood. |
| JEL: | Q51 Q54 R32 O21 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2018-05&r=all |
| By: | Romain Espinosa (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Cet article propose une discussion sur l'alimentation végétale et la condition animale comme objets d'étude pour la science économique. Il répond à trois questions : Pourquoi les économistes devraient-ils s'intéresser à la question de la consommation de produits d'origine animale ? Quelle peut être la contribution de l'économie aux discussions académiques existantes ? Quelles raisons peuvent expliquer le peu d'intérêt porté jusque-là par les économistes à cette problématique ? Ce travail expose tout d'abord trois arguments pour lesquels la science économique devrait prendre en compte la consommation de produits d'origine animale : une raison environnementale, une raison sanitaire et une raison éthique. Il présente ensuite l'analyse comportementale de la consommation de viande développée en psychologie, puis discute comment l'économie pourrait contribuer à ce champ de recherche (économie comportementale, économie des politiques publiques, économie industrielle et économie politique). La dernière partie propose une discussion plus exploratoire sur le faible intérêt porté jusqu'à aujourd'hui par les économistes à ces questions. |
| Keywords: | animal studies,veganomics,Alimentation végétale,condition animale |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02065781&r=all |
| By: | Yajuan Li; Marco A. Palma; Charles R. Hall; Hayk Khachatryan; Oral Capps, Jr. |
| Abstract: | This article estimates the effects of advertising expenditures on annual gross sales of green industry firms using a quasi-experimental framework. In order to account for potential selection bias, a generalized propensity score and a dose-response function are used to estimate advertising treatment effects. The method used allows us to investigate the relationship between the dose (advertising expenditures) and the response (firm sales). We use data from the National Green Industry Surveys of 2009 and 2014 to conduct the analysis. To further investigate potential heterogeneous advertising effects of the size of the firms, we separate the sample into small firms and large firms, according to their annual gross sales. The results indicate that the magnitude and shape of the response function depend on the size of the firm. For small firms, increasing advertising spending yields to higher sales within a range of advertising spending. Beyond this range, advertising spending increases do not impact sales any more. Thus, small firms’ management should carefully monitor advertising input. For large firms, on the other hand, the current evidence does not support a positive relationship between advertising spending and sales since the marginal treatment effect is insignificant almost over the entire range of adverting spending. |
| Keywords: | Agribusiness, Crop Production/Industries |
| Date: | 2018–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:tamagr:285219&r=all |