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on Environmental Economics |
| By: | Gugler, Klaus; Haxhimusa, Adhurim; Liebensteiner, Mario |
| Abstract: | We compare the effectiveness of different climate policies in terms of emissions abatement and costs in the British and German electricity markets. The two countries follow different climate policies, allowing us to compare the effectiveness of a relatively low EU ETS carbon price in Germany with a significantly higher carbon price due to a unilateral top-up tax (the Carbon Price Support) in the UK. We first estimate the emissions offsetting effects of carbon pricing and of subsidized wind and solar feed-in, and then derive the abatement costs of one tonne of CO2 for the different policies. We find that a reasonably high price for emissions is the most cost-effective climate policy, while subsidizing wind is preferable to subsidizing solar power. A carbon price of around EURO 35 is enough in the UK to induce vast short-run fuel switching between coal- and gas-fired power plants, leading to significant emissions abatement at low costs. |
| Keywords: | Climate change policy, Carbon price, EU ETS, UK Carbon Price Floor, UK Carbon Price Support, Subsidization of renewables |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus005:7166&r=all |
| By: | Klaus Gugler (Research Institute for Regulatory Economics, Vienna University of Economics and Business); Adhurim Haxhimusa (Institute for Quantitative Economics, Research Institute for Regulatory Economics, Vienna University of Economics and Business); Mario Liebensteiner (Institute for Resource and Energy Economics, TU Kaiserslautern) |
| Abstract: | We compare the effectiveness of different climate policies in terms of emissions abatement and costs in the British and German electricity markets. The two countries follow different climate policies, allowing us to compare the effectiveness of a relatively low EU ETS carbon price in Germany with a significantly higher carbon price due to a unilateral top-up tax (the Carbon Price Support) in the UK. We first estimate the emissions offsetting effects of carbon pricing and of subsidized wind and solar feed-in, and then derive the abatement costs of one tonne of CO2 for the different policies. We find that a reasonably high price for emissions is the most cost-effective climate policy, while subsidizing wind is preferable to subsidizing solar power. A carbon price of around EURO 35 is enough in the UK to induce vast short-run fuel switching between coal- and gas-fired power plants, leading to significant emissions abatement at low costs. |
| Keywords: | Climate change policy, Carbon price, EU ETS, UK Carbon Price Floor, UK Carbon Price Support, Subsidization of renewables |
| JEL: | L94 L98 Q38 Q54 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp293&r=all |
| By: | Myers Jaffe, Amy |
| Abstract: | The recent emergence of natural gas as an abundant, inexpensive fuel in the United States could prompt a momentous shift in the level of natural gas utilized in the transportation sector. The cost advantage of natural gas vis-à-vis diesel fuel is particularly appealing for vehicles with a high intensity of travel and thus fuel use. Natural gas is already a popular fuel for municipal and fleet vehicles such as transit buses and taxis. In this paper, we investigate the possibility that natural gas could be utilized to provide fuel cost savings, geographic supply diversity and environmental benefits for the heavy-duty trucking sector and whether it can enable a transition to lower carbon transport fuels. We find that a small, cost-effective intervention in markets could support a transition to a commercially sustainable natural gas heavyduty fueling system in the state of California and that this could also advance some of the state’s air quality goals. Our research shows that an initial advanced natural gas fueling system in California could facilitate the expansion to other U.S. states. Such a network would enable a faster transition to renewable natural gas or biogas and waste-to-energy pathways. Stricter efficiency standards for natural gas Class 8 trucks and regulation of methane leakage along the natural gas supply chain would be necessary for natural gas to contribute substantially to California’s climate goals as a trucking fuel. To date, industry has favored less expensive technologies that do not offer the highest level of environmental performance. |
| Keywords: | Engineering |
| Date: | 2019–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt23g1443q&r=all |
| By: | Samuel Egbetokun (Covenant University, Ota, Ogun State, Nigeria); Evans S. Osabuohien (Covenant University, Ota, Ogun State, Nigeria); Temidayo Akinbobola (Obafemi Awolowo University, Ile-Ife, Nigeria); Olaronke Onanuga (Covenant University, Ota, Ogun State, Nigeria); Obindah Gershon (Covenant University, Ota, Ogun State, Nigeria); Victoria Okafor (Covenant University, Ota, Ogun State, Nigeria) |
| Abstract: | The interaction between environmental pollution and economic growth determines the achievement of the green growth objective of developing economies. An economy turns around the inverted U-shaped Environmental Kuznets Curve (EKC) when pollution is effectively dampened by social, political and economic factors as such economy grows. Thus, this study examines the EKC considering the impact of institutional quality on six variables of environmental pollution [carbon dioxide (CO2), Nitrous Oxide (N2O), Suspended Particulate Maters (SPM), Rainfall, Temperature and Total Green House Emission (TGH)] using the case of Nigeria. The EKC model includes population density, education expenditure, foreign direct investment, and gross domestic investment as control variables, and it was analysed using the Auto Regressive Distribution Lag (ARDL) econometric technique, which has not been applied in the literature on Nigeria. The results, inter alia, indicate that there is EKC for CO2 and SPM. This implies that the green growth objective can be pursued in Nigeria with concerted efforts. Other environmental pollution indicators did not exert significant influence on economic growth. Therefore, it is recommended that Nigeria’s institutional quality be strengthened to limit environmental pollution in light of economic growth. |
| Keywords: | EKC, Economic Growth, Environmental Pollution, Institutional Quality |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:19/059&r=all |
| By: | Samuel Egbetokun (CEPDeR, Covenant University, Ota, Nigeria); Evans S. Osabuohien (CEPDeR, Covenant University, Ota, Nigeria); Temidayo Akinbobola (Obafemi Awolowo University, Ile-Ife, Nigeria); Olaronke Onanuga (CEPDeR, Covenant University, Ota, Nigeria); Obindah Gershon (CEPDeR, Covenant University, Ota, Nigeria); Victoria Okafor (CEPDeR, Covenant University, Ota, Nigeria) |
| Abstract: | The interaction between environmental pollution and economic growth determines the achievement of the green growth objective of developing economies. An economy turns around the inverted U-shaped Environmental Kuznets Curve (EKC) when pollution is effectively dampened by social, political and economic factors as such economy grows. Thus, this study examines the EKC considering the impact of institutional quality on six variables of environmental pollution [carbon dioxide (CO2), Nitrous Oxide (N2O), Suspended Particulate Maters (SPM), Rainfall, Temperature and Total Green House Emission (TGH)] using the case of Nigeria. The EKC model includes population density, education expenditure, foreign direct investment, and gross domestic investment as control variables, and it was analysed using the Auto Regressive Distribution Lag (ARDL) econometric technique, which has not been applied in the literature on Nigeria. The results, inter alia, indicate that there is EKC for CO2 and SPM. This implies that the green growth objective can be pursued in Nigeria with concerted efforts. Other environmental pollution indicators did not exert significant influence on economic growth. Therefore, it is recommended that Nigeria’s institutional quality be strengthened to limit environmental pollution in light of economic growth. |
| Keywords: | EKC, Economic Growth, Environmental Pollution, Institutional Quality |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:19/059&r=all |
| By: | Daron Acemoglu (Massachusetts Institute of Technology); David Hemous (University of Zurich); Lint Barrage (Brown University); Philippe Aghion (LSE) |
| Abstract: | The shale gas revolution can potentially reduce CO2 emissions in the short-run in countries which depend heavily on coal. Yet, it may also discourage innovation in green technologies, leading to lower emissions in the long-run. We document that the shale gas revolution was accompanied by a collapse in innovation in green electricity. We build a model of directed technical change where energy is produced using coal, and/or natural gas, and/or a green source of energy. We derive conditions under which, as a result of the above trade-off, the shale gas revolution reduces emissions in the short-run but increases emissions in the long-run. We then use data on electricity production to calibrate the model. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1302&r=all |
| By: | Anthony Wiskich |
| Abstract: | This paper extends the climate model with endogenous technology of Acemoglu, Aghion, Bursztyn, and Hemous (2012). A non-energy sector is introduced which decreases the costs of abatement by more than an order of magnitude through the extensive margin of labour, as labour can move freely between sectors. An extensive margin of research, where researchers can switch between non-energy and energy research, leads to a period of intense research in the clean sector above the long-run share and increases the power of policy to avert environmental disaster. A decreasing elasticity of substitution between clean and dirty inputs as the share of clean energy rises is also considered, reflecting the increasing difficulty of integrating intermittent clean energy supply in electricity. A decreasing elasticity increases the initial optimal tax on dirty energy and therefore lowers the subsidies required to direct technical change towards clean energy. |
| Keywords: | Climate change, directed technical change, optimal policy, energy |
| JEL: | O33 O44 Q30 Q54 Q56 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2019-70&r=all |
| By: | Thomas Coisnon (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Damien Rousselière (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Samira Rousselière (ONIRIS - Ecole Nationale Vétérinaire Agroalimentaire et de l'Alimentation Nantes Atlantique) |
| Abstract: | The specific case of home gardening practices is particularly relevant when discussing lifestyle habits and ecological transition, due to the wide range of positive and negative environmental externalities private gardens may generate. However, existing studies usually focus on restricted areas, mostly at a city scale. We provide an original empirical contribution to the literature on individual and institutional drivers regarding ecological transition by exploring the variations of individual behavior between European countries with an appropriate econometric approach. Using a European database (Eurobarometer 83.4), we highlight several interesting results regarding Europeans' adoption of sustainable gardening practices, more particularly on the role of socio-demographic drivers, urban or rural residential location and access to trustworthy biodiversity-related information. In conclusion, we provide recommendations for the design of dedicated public policies, specific to a national or local level of decision. |
| Keywords: | private garden,meta-regression,Sustainable practices,eurobarometer,generalized heckman model |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02181078&r=all |
| By: | Sven Bienert; Maximilian Spanner; Jens Hirsch |
| Abstract: | Existing research on the impacts of climate change has put no sufficient focus on the aspect that climate change might endanger the business of real estate companies due to poor carbon performance. The downside effects of climate change focused predominantly on natural risks and extreme weather events but gained more and more attention in recent years. This paper aims at the opportunities to optimise industry’s investments in energy efficient retrofits by making risks more transparent and by unveiling opportunities for property owners and investors. A continuous monitoring of the carbon emissions could accelerate decarbonisation and climate change resilience of the EU commercial real estate sector by clearly communicating the downside financial risks associated with poor carbon performance and quantifying the financial implications of climate change on the building stock. The industry has to be provided with country and sector-specific science-based carbon reduction pathways at building, portfolio and company level in tandem with financial risk assessment tools to cost-effectively manage carbon mitigation strategies. |
| Keywords: | carbon emission; decarbonisation; mitigation strategies; science-based targets; stranding risk |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_207&r=all |
| By: | Elena Ionascu; Marilena Mironiuc; ; Maria Carmen Huian |
| Abstract: | The stability of the housing market is crucial for sustainable development, and the monitoring and assessing housing price dynamics has become a standard practice in macro-financial supervision. In accordance with the EU approach to sustainable development, the paper aims to explore the relationship between housing prices as an informative indicator of the market and sustainability dimensions in the EU countries. Through an econometrical approach, the social and environmental implications on the housing market are investigated in relation to economic development as the most important factor for supporting sustainable practices. Variables that describe housing conditions, living environments and housing affordability are used as social measures, and energy consumption, renewable energy consumption and gas emissions as indicators of the environment. The low perception of the households about the sustainable effects on the housing prices is outlined. Housing fundamentals, such as disposable income, credit conditions and housing supply (construction costs and building permits) remain the most important factors that determine the household decisions. Based on the research result, policy implications are formulated in relation to the current conditions for sustainable development. |
| Keywords: | Environment; Housing Prices; policy implications; Social; sustainability |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_345&r=all |
| By: | Gregory Casey (Williams College) |
| Abstract: | I build a quantitative model of economic growth that can be used to evaluate the impact of environmental policy interventions on final-use energy consumption, an important driver of carbon emissions. In the model, energy demand is driven by endogenous and directed technical change (DTC). Energy supply is subject to increasing extraction costs. Unlike existing DTC models, I consider the case where multiple technological characteristics are embodied in each capital good, a formulation conducive to studying final-use energy. The model is consistent with aggregate evidence on energy use, efficiency, and prices in the United States. I examine the impact of new energy taxes and compare the results to the standard Cobb-Douglas approach used in the environmental macroeconomics literature, which is not consistent with data. When examining a realistic and identical path of energy taxes in both models, the DTC model predicts 22% greater cumulative energy use over the next century. I also use the model to study the macroeconomic consequences of R & D subsidies for new energy efficient technologies. I find large rebound effects that undo short-term reductions in energy use. |
| Keywords: | Energy, Climate Change, Directed Technical Change, Growth |
| JEL: | H23 O33 O44 Q43 Q55 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:wil:wileco:2019-17&r=all |
| By: | Gerard van der Meijden (Vrije Universiteit Amsterdam); Cees Withagen (IPAG Business School) |
| Abstract: | The effects of climate policies are often studied under perfect competition and constant marginal extraction costs. In this paper, we allow for monopolistic fossil fuel supply and more general cost functions, which, in the presence of perfectly substitutable renewables, gives rise to limit-pricing behavior. Four phases of supply may exist in equilibrium: sole supply of fossil fuels below the limit price, sole supply of fossil fuels at the limit price, simultaneous supply of fossil fuels and renewables at the limit price, and sole supply of renewables at the limit price. The consequences of climate policies for initial extraction depend on the initial phase: in case of sole supply of fossil fuels at the limit price, a renewables subsidy increases initial extraction, whereas a carbon tax leaves initial extraction unaffected. With simultaneous supply at the limit price or with sole supply of fossil fuels below the limit price, a renewables subsidy and a carbon tax lower initial extraction. Both policy instruments decrease cumulative extraction. If fossil fuels and renewables are imperfect but good substitutes, the monopolist will exhibit ‘limit-pricing resembling’ behavior, by keeping the effective price of fossil close to that of renewables for considerable time. |
| Keywords: | limit pricing, non-renewable resource, monopoly, climate policies |
| JEL: | Q31 Q42 Q54 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2019.18&r=all |
| By: | Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | This research examines the relevance of inclusive development in modulating the role of governance on environmental degradation. The study focuses on forty-four countries in sub-Saharan Africa for the period 2000-2012. The Generalised Method of Moments is employed as the empirical strategy and CO2 emissions per capita is used to measure environmental pollution. Bundled and unbundled governance dynamics are employed, notably: political governance (consisting of political stability/no violence and “voice and accountability†), economic governance (encompassing government effectiveness and regulation quality), institutional governance (entailing corruption-control and the rule of law), and general governance (a composite measure of political governance, economic governance and institutional governance). The following main findings are established. First, the underlying net effect in the moderating role of inclusive development in the governance-CO2 emissions nexus is not significant in regressions pertaining to political governance and economic governance. Second, there are positive net effects from the relevance of inclusive development in modulating the effects of regulation quality, economic governance and general governance on CO2 emissions. The significant and insignificant effects are elucidated. Policy implications are discussed. |
| Keywords: | CO2 emissions; Governance; Sustainable development; Sub-Saharan Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:aby:wpaper:19/006&r=all |
| By: | Anthony Wiskich |
| Abstract: | A review of the literature indicates a decreasing long-run elasticity of substitution between clean and dirty inputs as the share of clean inputs rises. In the power sector, which is the largest contributor to greenhouse gas emissions, integrating intermittent clean energy supply becomes increasingly difficult as the clean share rises. This paper describes a simple structural model of electricity generation which: demonstrates how the elasticity falls as the clean share rises; can replicate the range of results from the electricity literature; considers the effects of storage, and; facilitates estimation of a suitable production function. A bimodal production function with two elasticity regimes - an elasticity above 8 up to a 50 to 70 per cent clean share and an elasticity below 3 beyond this share – can replicate results well from the structural model. |
| Keywords: | Elasticity of substitution, climate change, energy, electricity, production function |
| JEL: | O33 O44 Q30 Q54 Q56 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2019-72&r=all |
| By: | De Haas, Ralph; Popov, Alexander |
| Abstract: | We study the relation between the structure of financial systems and carbon emissions in a large panel of countries and industries over the period 1990-2013. We find that for given levels of economic and financial development and environmental regulation, CO2 emissions per capita are lower in economies that are relatively more equity-funded. Industry-level analysis reveals two distinct channels. First, stock markets reallocate investment towards less polluting sectors. Second, they also push carbon-intensive sectors to develop and implement greener technologies. In line with this second effect, we show that carbon-intensive sectors produce more green patents as stock markets deepen. We also document an increase in carbon emissions associated with the production of imported goods equal to around one-tenth of the reduction in domestic carbon emissions. JEL Classification: G10, O4, Q5 |
| Keywords: | carbon emissions, financial development, financial structure, innovation |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20192318&r=all |
| By: | Maria Belfiori (Universidad Catolica Argentina); Armon Rezai (WU Vienna University of Economics and Bu) |
| Abstract: | This paper studies the optimal climate policy in an economy that faces constraints on the availability of policy instruments. In a standard macro-climate growth model that includes a carbon emissions externality, the optimal policy is the introduction of a global carbon tax. After years of climate negotiations and no success in the introduction of a carbon price, this paper suggests an alternative approach which is to look for the best policies that the global economy can seek constrained by the fact that a global carbon tax is not an available tool. We show that standard fiscal instruments – not often included in the climate negotiations - are capable of achieving the optimal outcome. We theoretically characterize and quantitatively estimate the optimal tax rates, and we find that they are well within existing tax rates. These results suggest that there is value in broadening the discussion on climate policies by exploring the role that standard taxes, such as income and consumption taxes, can play in tackling the climate problem. Politicians might be keener on recalibrating the tax rate on existing taxes than on introducing new taxes. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1029&r=all |
| By: | Rickels, Wilfried; Peterson, Sonja; Felbermayr, Gabriel |
| Abstract: | Bei den deutschen Treibhausgasemissionen außerhalb des Europäischen Emissionshandelssystems (EU ETS) verlaufen Reduktionen schleppend, obwohl eine Vielzahl von Instrumenten und erhebliche finanzielle Mittel zur Anwendung kommen. Die Autoren empfehlen daher dem deutschen Klimakabinett, Maßnahmen zu beschließen, die den CO2-Preis über möglichst viele verschiedene Sektoren angleichen, und gleichzeitig die Voraussetzungen für ein umfassendes und damit effizientes EU-Emissionshandelssystem zu schaffen. Auf dem Weg dorthin sprechen sich die Autoren für ein duales Preissystem aus, indem ein nationales Emissionshandelssystem in den bisher noch nicht vom europäischen Emissionshandel erfassten Sektoren eingeführt wird, das nach festem Zeitplan mit dem bereits bestehenden Europäischen Emissionshandelssystem integriert wird. Dieser Schritt sollte mit einer Abkehr von dirigistischen Eingriffen, der Einführung von Mechanismen zur Gewährleistung von Preisuntergrenzen sowie der Umverteilung der Einnahmen begleitet werden. Um die Verlagerung von Emissionen zu verhindern, muss zusätzlich ein Grenzausgleich eingeführt werden, so dass gleichzeitig Anreize für internationale Anstrengungen gesetzt werden, CO2-Preissysteme einzuführen. |
| Keywords: | Pariser Klimaziele,Emissionshandel,Wettbewerbsfähigkeit,Technologieförderung,Paris Climate Agreement,emissions trading,international competitiveness,technology development and promotion |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkpb:127&r=all |
| By: | Mullins, Jamie (University of Massachusetts Amherst); White, Corey (California Polytechnic State University) |
| Abstract: | This paper characterizes the link between ambient temperatures and a broad set of mental health outcomes. We find that higher temperatures increase emergency department visits for mental illness, suicides, and self-reported days of poor mental health. Specifically, cold temperatures reduce negative mental health outcomes while hot temperatures increase them. Our estimates reveal no evidence of adaptation, instead the temperature relationship is stable across time, baseline climate, air conditioning penetration rates, accessibility of mental health services, and other factors. The character of the results suggests that temperature affects mental health very differently than physical health, and more similarly to other psychological and behavioral outcomes. We provide suggestive evidence for sleep disruption as an active mechanism behind our results and discuss the implications of our findings for the allocation of mental health services and in light of climate change. |
| Keywords: | mental health, weather, climate, suicide, health |
| JEL: | I10 I12 I18 Q50 Q51 Q54 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12603&r=all |
| By: | Steven Baker (University of Virginia); Burton Hollifield (Carnegie Mellon University); Emilio Osambela (Board of Governors of the Federal Reserve System) |
| Abstract: | Elementary portfolio theory implies that environmentalists optimally hold more shares of polluting firms than non-environmentalists, and that polluting firms are more highly valued and attract more investment than otherwise identical firms that do not pollute. These results reflect the demand to hedge against states with high pollution, occurring when dirty technology is more heavily and profitably utilized. Pigouvian taxation can reverse the valuation and investment results, but environmentalists will still overweight polluters in their portfolios. We introduce countervailing motives for environmentalists to underweight polluters, comparing the implications when environmentalists coordinate to internalize pollution, or have nonpecuniary disutility from holding polluter stock. With nonpecuniary disutility, introducing a green derivative product may dramatically alter who invests most in polluters, but has no impact on aggregate pollution. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1255&r=all |
| By: | Anthony Wiskich |
| Abstract: | The framework used to endogenise technology growth by Acemoglu, Aghion, Bursztyn, and Hemous (2012), hereafter AABH, allows the existence of unstable equilibria and does not provide a rationale for specifying which equilibrium should apply when more than one exists. This paper: (i) suggests a rationale for choosing one corner solution used in AABH that constitutes a lower bound for the subsidy or tax required to direct clean research; (ii) argues against use of the other corner solution; and (iii) provides an alternative equilibrium that constitutes an upper bound to the policy required. The alternative methods can produce substantially different results when the elasticity of substitution between clean and dirty inputs is high. |
| Keywords: | Climate change, directed technical change, innovation policy |
| JEL: | O33 O44 Q30 Q54 Q56 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2019-71&r=all |
| By: | Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | This study investigates how increasing economic development affects the green economy in terms of CO2 emissions, using data from 44 countries in the SSA for the period 2000-2012. The Generalised Method of Moments (GMM) is used for the empirical analysis. The following main findings are established. First, relative to CO2 emissions, enhancing economic growth and population growth engenders a U-shaped pattern whereas increasing inclusive human development shows a Kuznets curve. Second, increasing GDP growth beyond 25% of annual growth is unfavorable for a green economy. Third, a population growth rate of above 3.089% (i.e. annual %) has a positive effect of CO2 emissions. Fourth, an inequality-adjusted human development index (IHDI) of above 0.4969 is beneficial for a green economy because it is associated with a reduction in CO2 emissions. The established critical masses have policy relevance because they are situated within the policy ranges of adopted economic development dynamics. |
| Keywords: | CO2 emissions; Economic development; Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:aby:wpaper:19/010&r=all |
| By: | Neetzow, Paul |
| Abstract: | For decarbonization purposes, variable renewable energies (VRE) are widely and quickly deployed in historically fossil-dominated power systems. Yet, some fossil technologies are more suitable than others for integration with VRE due to their higher flexibility. I utilize an analytically tractable model to study the optimal transition to a VRE-dominated sys-tem when the endowment of flexible and inflexible conventional generators is rigid. I find that the existence of inflexible fossil generators hampers early deployment of VRE. How-ever, deployment speed increases after VRE begin to substitute generation from inflexible generators, which happens after VRE and inflexible capacities strictly exceed demand together. At this time, the decreasing use of inflexible fossil generation is usually ac-companied by an increasing utilization of flexible generators. Nevertheless, constructing additional flexible capacities is only profitable under restrictive conditions. By contributing to a better understanding of the impact of flexibility on efficient VRE deployment, this work may facilitate an efficient transition process. |
| Keywords: | Agricultural and Food Policy, Food Security and Poverty, Resource /Energy Economics and Policy |
| Date: | 2019–09–24 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huiawp:292978&r=all |
| By: | Ibrahim D. Raheem (EXCAS, Liège, Belgium); Aviral K. Tiwari (Rajagiri Business School, Kochi, India); Daniel Balsalobre-lorente (Ciudad Real, Spain) |
| Abstract: | This study explores the role of the information and communication Technology (ICT) and financial development (FD) on both carbon emissions and economic growth for the G7 countries for the period 1990-2014. Using PMG, we found that ICT has a long run positive effect on emissions, while FD is a weak determinant. The interactive term between the ICT and FD produces negative coefficients. Also, both variables are found to impact negatively on economic growth. However, their interactions show they have mixed effects on economic growth (i.e., positive in the short-run and negative in the long-run). Policy implications were designed based on these results. |
| Keywords: | ICT; Financial development; Carbon emissions; Economic growth and G7 countries |
| JEL: | E23 F21 F30 O16 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:19/058&r=all |
| By: | Baran Doda (LSE); Simon Quemin (LSE); Luca Taschini (LSE) |
| Abstract: | We formally study the determinants, magnitude and distribution of efficiency gains generated in multilateral linkages between permit markets. We provide two novel decomposition results for these gains, characterize individual preferences over linking groups and show that our results are largely unaltered with strategic domestic emissions cap selection or when banking and borrowing are allowed. Using the Paris Agreement pledges and power sector emissions data of five countries which all use or considered using both emissions trading and linking, we quantify the efficiency gains. We find that the computed gains can be sizable and are split roughly equally between effort and risk sharing. |
| Keywords: | Climate change policy, International emissions trading systems, Multilateral linking, Effort sharing, Risk sharing |
| JEL: | Q58 H23 F15 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2019.17&r=all |
| By: | Massimo Mariani; Alessandra Caragnano; Marianna Zito |
| Abstract: | The relationship between corporate governance and firm performance is still an open issue in the current academic debate. Some studies have investigated if and to what extent board diversity may influence corporate performance and according to the predominant opinion in the existing literature, diversity in boards is considered a valid way to improve firm performance through corporate governance mechanisms. In the last years board gender diversity has become a heavily debated corporate governance topic not only in the institutional environment, but also in the academic one. In this scenario, the presence of women on the board has been analyzed in order to underline potential advantages to be interpreted from an economic point of view as well as from an ethical and social one. The purpose of this paper is to investigate the aforementioned relationships, namely between board diversity, with particular reference to gender diversity, percentage of independent directors, age of board of directors, and financial performance focusing on European Green REITs specific industry. By taking a broader view, considering simultaneously corporate governance, environmental engagement and financial performance, we aim at contributing to the academic debate that have argued the financial performance improvement through the involvement in ESG practices. |
| Keywords: | board diversity; Corporate Governance; ESG factors; Financial Performance; Green REITs |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_229&r=all |
| By: | Michel Beine; Ilan Noy; Christopher Parsons |
| Abstract: | This paper sheds light on the apparent paradox, wherein populations adversely affected by climatic conditions fail to migrate as much as would otherwise be expected. Drawing on Hirschman’s treatise on Exit, Voice and Loyalty, we develop a simple model, which highlights the theoretical case for a substitution effect between voicing and emigration. We subsequently provide causal evidence of voicing representing a new mechanism through which countries adapt to climate change, implementing wage differentials and changes in visa policies at destination as instruments. More intense voicing, as captured by greater numbers of press reports, is associated with lower emigration rates. This substitution effect holds for both internal and international voicing. Our results suggest that restrictions on mobility could result in increasing voicing, both within and between countries. |
| Keywords: | emigration, climate change, voicing, trapped populations |
| JEL: | F22 O15 P16 O57 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7830&r=all |
| By: | Elena Ionascu |
| Abstract: | Transparency is a fundamental factor of the real estate market efficiency, which facilitates decision-making and coordinates the actions of the stakeholders. The paper aims to explore the new trends of real estate transparency through sustainability practices in correlation with global sustainable development goals (SDGs). The contributions to the achievement of the sustainability goals and the transparency in the environmental, social and governance (ESG) reporting of the real estate companies are analysed. Based on the content analysis, considering both quantitative and qualitative information, the sustainability reports, published by the real estate companies in the GRI database and Corporate Register are explored, beginning with the 2016 year, the first reporting year after the global SDGs adoption. Sustainability reporting offers new perspectives for real estate corporate sustainability in order to increase the transparency of the sector. The real estate companies are increasingly interested in aligning sustainability practices with global sustainability goals. The majority of the firms are oriented to the consolidation of sustainable cities and communities in response to the several trends that affect urban environments around the world. Transparency is perceived as one of the most important principles of good governance and with high impact on the stakeholders and on financial performance. Technological adoption for big data processing, co-working and cooperation into expanded business networks, innovation by increasing spending on research and development outline new trends in transparency. |
| Keywords: | ESG reporting; Performance; real estate companies; Sustainable Development Goals (SDGs); Transparency |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_319&r=all |
| By: | Burzyńskia, Michał (LISER); Deuster, Christoph (IRES, Université catholique de Louvain); Docquier, Frédéric (LISER); de Melo, Jaime (University of Geneva) |
| Abstract: | This paper investigates the long-term implications of climate change on local, interregional, and international migration of workers. For nearly all of the world's countries, our micro-founded model jointly endogenizes the effects of changing temperature and sea level on income distribution and individual decisions about fertility, education, and mobility. Climate change intensifies poverty and income inequality creating favorable conditions for urbanization and migration from low- to high-latitude countries. Encompassing slow- and fast-onset mechanisms, our projections suggest that climate change will induce the voluntary and forced displacement of 100 to 160 million workers (200 to 300 million climate migrants of all ages) over the course of the 21st century. However, under current migration laws and policies, forcibly displaced people predominantly relocate within their country and merely 20% of climate migrants opt for long-haul migration to OECD countries. If climate change induces generalized and persistent conflicts over resources in regions at risk, we project significantly larger cross-border flows in the future. |
| Keywords: | climate change, migration, inequality, urbanization, conflicts |
| JEL: | E24 F22 J24 J61 Q54 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12623&r=all |
| By: | Brett Frischmann (Villanova University); Alain Marciano (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier); Giovanni Ramello (Dipartimento di scienze giuridiche ed economiche, Universita degli studi del piemonte orientale - Universita degli studi del piemonte orienta) |
| Abstract: | Garrett Hardin's "The Tragedy of the Commons" (1968) has been incredibly influential generally and within economics, and it remains important despite some historical and conceptual flaws. Hardin focused on the stress population growth inevitably placed on environmental resources. Unconstrained consumption of a shared resource-a pasture, a highway, a server-by individuals acting in rational pursuit of their self-interest can lead to congestion and worse, rapid depreciation, depletion, and even destruction of the resources. Our societies face similar problems, not only with respect to environmental resources but also with infrastructures, knowledge, and many other shared resources. In this Retrospective, we examine how the tragedy of the commons has fared within the economics literature and its relevance for economic and public policies today. We revisit the original piece to explain Hardin's purpose and conceptual approach. We expose two conceptual mistakes he made, that of conflating resource with governance and conflating open access with commons. This critical discussion leads us to the work of Elinor Ostrom, the recent Nobel Prize in Economics Laureate, who spent her life working on commons. Finally, we discuss a few modern examples of commons governance of shared resources. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02288208&r=all |
| By: | Eduardo A. Haddad; Patricio Aroca, Pilar Jano, Ademir Rocha, Bruno Pimenta |
| Abstract: | Short-term climate conditions may affect crop yields and vintage quality and, as a consequence, wine prices and vineyards’ earnings. In this paper, we use a CGE model for Chile, which incorporates detailed information about the value chain of the wine sector in the country. Using information for the 2015-2016 harvest, we calibrate climate shocks associated with a bad year for the wine industry in Chile, when premature rains occurred in important wine regions, reducing the area harvested and leading to wines with less concentrated flavors, particularly for reds. We model the climate shocks as a technical change in the grape-producing sector (quantity effect). Moreover, we model quality effects as a shift in the foreign demand curve for Chilean wine. Given the specific economic environment in the model and the proposed simulation, it is possible to note the reduction of Chilean real GDP by about 0.067%. By decomposing this result, we verify that the quality effect has a slightly greater weight compared to the quantity effect. |
| Keywords: | Climate, viticulture, wine, computable general equilibrium, Chile |
| JEL: | C68 Q13 Q54 |
| Date: | 2019–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2019wpecon37&r=all |
| By: | Teevrat Garg (School of Global Policy and Strategy, University of California, San Diego); Matthew Gibson (Williams College); Fanglin Sun (Department of Economics, University of California, San Diego) |
| Abstract: | How do people in developing countries respond to extreme temperatures? Using individual-level panel data over two decades and relying on plausibly exogenous variation in weather, we estimate how extreme temperatures affect time use in China. Extreme temperatures reduce time spent working, and this effect is largest for female farmers. Hot days reduce time spent by women on outdoor chores, but we find no such effects for men. Finally, hot days dramatically reduce time spent on childcare, reflecting large effects on home production. Taken together, our results suggest time use is an important margin of response to extreme temperatures. |
| Keywords: | Time use, extreme weather, gender |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:wil:wileco:2019-16&r=all |
| By: | Fulton, Lewis; Miller, Marshall; Burke, Andrew; Wang, Qian; Yang, Chris |
| Keywords: | Engineering |
| Date: | 2019–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt8wn8920p&r=all |
| By: | Preuß, Malte; Reuter, Wolf Heinrich; Schmidt, Christoph M. |
| Abstract: | Ein CO2-Preis setzt Anreize für ein emissionsärmeres Verhalten und Investitionen in emissionsärmere Technologien. Damit dieses Koordinationssignal uneingeschränkt wirken kann, muss es möglichst einheitlich über alle Sektoren, Technologien, Regionen und Emittenten wirken. Für Haushalte führt die Bepreisung zunächst zu einer regressiven Verteilungswirkung; dies kann jedoch durch eine Rückverteilung der Einnahmen in einen progressiven Verlauf geändert werden, sodass Haushalte mit niedrigen Einkommen im Durchschnitt netto entlastet werden. Die Ausgestaltung der Rückverteilung kann auf unterschiedliche Eigenschaften des Rückverteilungsmechanismus abzielen, etwa eine möglichst hohe Transparenz oder das Erreichen einer "doppelten Dividende". Bei aufkommensneutraler Rückverteilung erfahren der mittlere und obere Einkommensbereich, Alleinstehende und Bewohner städtischer Regionen sowie Besitzer von Öl- und Gasheizungen tendenziell die stärkste Nettobelastung. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:svrwwp:082019&r=all |
| By: | Argys, Laura M. (University of Colorado Denver); Averett, Susan L. (Lafayette College); Yang, Muzhe (Lehigh University) |
| Abstract: | Exploiting recent concentration of flight patterns under a new Federal Aviation Administration policy (called NextGen), we examine the impact of exposure to excessive noise levels on birth outcomes. Using birth records that include mothers’ home addresses to measure airport proximity, we find the risk of low birth weight babies increases by 17 percent among mothers living near the airport in the direction of the runway. We utilize exogenous variation in noise exposure triggered by NextGen, which unintentionally increased noise in communities affected by the new flight patterns. Our finding informs policy-makers regarding the trade-off between flight optimization and human health. |
| Keywords: | noise, airport runway, low birth weight, NextGen |
| JEL: | I10 I18 Q53 Q58 R11 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12605&r=all |
| By: | Jörn Richstein; Karsten Neuhoff |
| Abstract: | Die Klimaziele können nur mit einem Wechsel hin zu neuen Technologien und Praktiken für die Produktion und Nutzung von Grundstoffen, wie Zement, Stahl und Chemikalien, erreicht werden. Die Produktion solcher Grundstoffe macht rund 16 Prozent der europäischen und 25 Prozent der weltweiten Treibhausgasemissionen aus. Der moderate CO2-Preis im europäischen Emissionshandel (EU-ETS) und die unsichere Preisentwicklung bieten jedoch nicht genügend Anreize für Investitionen in und den Einsatz von innovativen klimafreundlichen Optionen. Hierfür sind neue Politikinstrumente notwendig. Projekt-basierte CO2-Differenzverträge sind, in Kombination mit einem Klimapfand, besonders geeignet: Sie senken die Finanzierungskosten von klimafreundlichen Investitionen, setzen die richtigen Anreize für Emissionsminderungen und wären ein klares Signal des Engagements der Regierungen für langfristige politische Ziele. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwakt:23de&r=all |
| By: | Puls, Thomas; Schaefer, Thilo |
| Abstract: | In der aktuellen Klimadebatte wird Schweden oft als Vorbild für Deutschland genannt. Schweden hatte bereits im Jahr 1991 eine CO2-Steuer eingeführt und hat diese seither kontinuierlich erhöht. Heute hat Schweden nicht nur die weltweit höchsten Steuersätze auf den CO2-Ausstoß, sondern auch sichtbare Erfolge bei der Reduktion der Emissionen vorzuweisen. Deshalb wird der schwedische Ansatz häufig als potenzielles Vorbild in der aktuellen Debatte um die richtigen Instrumente zur Reduktion der Emissionen in Deutschland genannt. Insbesondere die Emissionen des Straßenverkehrs gehen hierzulande kaum zurück. Bei genauerem Blick auf das schwedische Modell zeigt sich, dass die Einführung der Steuer allein nicht den Rückgang der Emissionen erklären kann. Das liegt auch daran, dass bei Einführung der CO2-Steuer andere Steuern und Abgaben auf Energieträger deutlich gesenkt wurden. Zudem sind die Emissionen im Verkehrsbereich erst seit dem Jahr 2010 deutlich gesunken, was mit einem Hochlauf des Einsatzes von Biokraftstoffen zusammenfällt. Dazu kam es, als Schweden eine Steuerbefreiung auf eben diese Biokraftstoffe eingeführt hatte. Demnach hat erst das Zusammenspiel aus CO2-Bepreisung, einer emissionsarmen Alternative in Form von Biokraftstoffen und deren Befreiung von der Besteuerung zu einer merklichen Reduktion der Emissionen geführt. [...] |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkpps:82019&r=all |
| By: | Andrew B. Ayres; Kyle C. Meng; Andrew J. Plantinga |
| Abstract: | Property rights are widely prescribed for addressing the tragedy of the commons, yet causal evidence of their effectiveness remains elusive. This paper combines theory and empirics to produce a causal estimate of the net benefit of using property rights to manage groundwater. We develop a model of dynamic groundwater extraction to demonstrate how a spatial regression discontinuity design exploiting an incomplete property rights setting can recover a lower bound on the value of property rights. We apply this estimator to a major aquifer in water-stressed southern California, finding groundwater property rights led to substantial net benefits, as capitalized in land values. Heterogeneity analyses suggest that gains arise in part from the tradeability of property rights, enabling more efficient water use across sectors. |
| JEL: | D23 P14 P48 Q15 Q25 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26268&r=all |