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on Environmental Economics |
| By: | Parantap Basu (Durham University Business School); Tooraj Jamasb (Durham University Business School) |
| Abstract: | We develop an endogenous growth model to address a long standing question whether sustainable green growth is feasible by re-allocating resource use between green (natural) and man-made (carbon intensive) capital. In our model, Önal output is produced with two reproducible inputs, green and man-made capital. The growth of the man-made capital causes depreciation of green capital via carbon emissions which the private sector does not internalize. A benevolent government uses carbon taxes to encourage Örms to substitute carbon intensive man-made capital with green capital that the production technology allows. Doing so, the damage to natural capital by emissions can be reversed through a lower, but socially optimal long run growth. This trade-o§ between environmental policy and long-run growth can be overcome by a combination of an investment in pollution abatement and higher total factor productivity |
| Keywords: | Green growth, sustainability, carbon tax, clean growth, resource substitution |
| JEL: | E1 O3 O4 Q2 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:dur:durham:2019_06&r=all |
| By: | Goekce Akin-Olçum (Environmental Defense Fund, Boston, USA); Christoph Boehrinngerr (University of Oldenburg, Department of Economics); Thomas Rutherford (University of Wisconsin, Madison, USA); Andrew Schreiber (National Center for Environmental Economics, Washington, USA) |
| Abstract: | New York is considering additional emission regulation on top of its obligations under the Regional Greenhouse Gas Initiative (RGGI) to achieve its State Energy Plan targets. The proposed measure is a so-called “carbon adder” on CO2 emissions from the power sector which is set as the difference between the targeted social cost of carbon and the prevailing RGGI price for CO2 emission allowances. We investigate the potential economic and environmental impacts from the imposition of a carbon adder on New York’s power sector. While our analysis indicates the risk of excess cost through overlapping regulations, we find that the carbon adder gives the “right” price signal for New York’s power generation to turn into a greener one. Market requirements for permit price floors in the RGGI market induces carbon permit retirements across RGGI states leading to small reductions in region- and country-wide emissions levels. |
| Keywords: | Environmental regulation, overlapping regulation, emission taxes, emissions trading |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:424&r=all |
| By: | Kenju Kamei (Durham University Business School); Louis Putterman (Brown University); Jean-Robert Tyran (University of Vienna) |
| Abstract: | TWe develop an endogenous growth model to address a long standing question whether sustainable green growth is feasible by re-allocating resource use between green (natural) and man-made (carbon intensive) capital. In our model, Önal output is produced with two reproducible inputs, green and man-made capital. The growth of the man-made capital causes depreciation of green capital via carbon emissions which the private sector does not internalize. A benevolent government uses carbon taxes to encourage Örms to substitute carbon intensive man-made capital with green capital that the production technology allows. Doing so, the damage to natural capital by emissions can be reversed through a lower, but socially optimal long run growth. This trade-o§ between environmental policy and long-run growth can be overcome by a combination of an investment in pollution abatement and higher total factor productivity. |
| Keywords: | civic engagement; public goods provision; punishment; experiment; cooperation |
| JEL: | C92 D02 D72 H41 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:dur:durham:2019_05&r=all |
| By: | D. Baiardi |
| Abstract: | Yes, they matter. To reply to this question, we assess the impact of energy efficiency and renewable energy policies on six different air pollutants: carbon dioxide (CO2), methane (CH4), nitrous oxides (N2O), non-methane volatile organic compounds (NMVOCs), nitrogen oxides (NOx) and sulphur dioxide (SO2) in the case of the Italian provinces in the decade 2005-2015. The empirical analysis is performed in a panel data context by means of propensity score matching with multiple treatment, since our framework is characterized by the presence of two treatments, corresponding to the two different energy policies analyzed, i.e. energy efficiency policy and renewable policy. These two policies can be applied by each province as mutually exclusive strategies or as joint strategies. Our results show that renewable policies are the most efficient in terms of climate goals especially when planned on a local scale, while energy efficiency policies alone are ineffective. Moreover, the success of these policies depends on the type of pollutant to be reduced. Finally, we note that the effect of these two policies was reinforced by the counter-cyclical fiscal policies implemented to contrast the Global Financial Crisis in 2008. |
| Keywords: | Textile exports, Outperformance, Displacement, Competitiveness, Cross-country comparisons, Panel data analysis |
| JEL: | C23 F14 L67 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:par:dipeco:2019-ep03&r=all |
| By: | Marius Buchmann; Julia Kusznir; Gert Brunekreeft |
| Abstract: | Germany is struggling to meet its 2020 greenhouse gas (GHG) emission and climate goals. Against this background, we analyze the current draft National Energy and Climate Plan (NECP) that sets out how Germany aims to achieve its national and European climate goals by 2030. We introduce the current stage of the country’s climate policy and, by looking at the different emission reduction measures under discussion, examine why Germany will probably miss its CO2 emissions reduction goals. We conclude that, based on the climate package announced in September 2019, Germany will get closer to the achievement of its 2030 targets than was anticipated in the NECP draft; nevertheless, the new climate package leaves a significant gap between the new measures and the 2030 climate goals. |
| Keywords: | German climate policy, energy and climate goals, emission reduction measures |
| JEL: | L38 L98 Q28 Q48 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:bei:00bewp:0030&r=all |
| By: | Mitsutsugu Hamamoto (Faculty of Economics, Dokkyo University, 1-1 Gakuen-cho, Soka-shi, Saitama, 340-0042, Japan.) |
| Abstract: | This paper investigates the impacts of the Target-Setting Emissions Trading (TSET) Program launched by Saitama Prefecture in Japan in 2011 on the adoption of low-carbon technology. Using facility-level data on the manufacturing sector, the causal relationship between implementation of the program and investment in high-efficiency equipment is estimated. The results show that the TSET Program promoted the adoption of high-efficiency machines and devices for the first three years of the second compliance period, whereas the program did not spur investments in high-efficiency equipment during the first compliance period. These results suggest that the manufacturing facilities may have adopted relatively cheaper emissions reduction plans in the first compliance period such as improvements to equipment they already owned, whereas in the second compliance period, when the emissions targets became stricter, they allocated money and resources to introduce high-efficiency equipment. These findings indicate that the TSET Program succeeded in encouraging emissions reduction efforts by facilities in the manufacturing sector covered by the scheme, even though the program lacks penalties for noncompliance. |
| Keywords: | Emissions trading, Low-carbon technology, Technology diffusion |
| JEL: | Q54 Q55 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:was:dpaper:1909&r=all |
| By: | Olusanya, Olubusoye; Musa, Dasauki |
| Abstract: | ABSTRACT: In this study, we applied the recently proposed income elasticity approach to investigate the presence of an inverted U relationship also known as the environmental Kuznets curve (EKC) in 20 African countries. we grouped the countries into three panels not according to any know regions, but according to income such as Low-income African economies, lower- Middle African economies and upper-Middle income African economies. We tested for the presence of an inverted U relationship for both individual-specific countries and for the 3 panels using short-run and long-run income elasticity approach. We conclude the presence of an inverted-U relationship exists when long-run Income elasticity is smaller than short-run income elasticity, meaning that as income increase over time, carbon emissions have reduced. In other words, as these individual African countries experience economic growth over time, their carbon emissions level has declined. This empirical finding is true only for Benin, Malawi, cote div our, south Africa, Botswana, and Libya, representing approximately 30% of the sample. With regards to the panel groups, we found evidence supporting the presence of an inverted U relationship only in the panel of low-income African countries with long-run income elasticity smaller than the short-run income elasticity, thus, the low-income African countries have reduced their carbon emissions level as economic growth is attained. |
| Keywords: | Keywords: Environmental Kuznets curve, economic growth, Carbon Emissions |
| JEL: | O1 O13 O14 Q4 Q5 Q53 |
| Date: | 2018–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:96159&r=all |
| By: | André Albuquerque Sant’Anna; Lucas Costa |
| Abstract: | This paper discusses the emergence of moral hazard behavior in the context of a change in the Brazilian law that governs land use - the Forest Code. The Forest Code revision included benefits which relieved environmental liabilities for a specific group of landowners. We explore the fact that the Forest Code establishes two distinct legal regimes for landowners according to their adherence to the previous law. Basically, those that were not abiding by the former law gained special conditions to regularize the environmental liabilities, whereas those that were in accordance with the law did not receive any benefits. We argue that this latter group engaged in deforestation activities in the hope of also receiving bail outs in the future. We investigate our hypothesis using data on yearly deforestation from 2009 to 2017 by rural private properties in the Brazilian Amazon. Using a difference-indifferences approach, we first show that the new Forest Code has had a significant impact on deforestation. We then extend the analysis in order to demonstrate that hat landholders behave as if the law were non-binding. Moreover, we document increases only in livestock, but not in crop area. Finally, we conduct a counter-factual analysis which reveals that the Forest Code revision led to an additional loss of 533 thousand hectares between 2012 and 2017, which represents a loss of US$ 1.3 billion, taking no more than carbon emissions into consideration. |
| Keywords: | Land regulation, Deforestation, Amazon |
| JEL: | O13 Q23 R52 |
| Date: | 2019–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:col:000518:017435&r=all |
| By: | Liu, Yan; Chen, Xi; Yan, Zhijun |
| Abstract: | While adverse health effects of ambient air pollution have been well documented, there is scarce evidence on the impact of household air pollution (HAP) on mental health. We investigated the causal link between HAP exposure from the use of solid fuel on depressive symptoms using a nationally representative dataset of middle-aged and older population in China. Employing the propensity match score method (PSM), matching and adjusting for potential confounders, we found significantly higher Center for Epidemiological Studies Depression Scale (CES-D) score and risk of depressive symptoms among solid fuel users than clean fuel users. These associations were especially stronger for older females who were less educated, of lower income, of higher body mass index, or had chronic diseases. |
| Keywords: | Depression,Household solid fuel use,Household air pollution,Propensity Score Matching,CHARLS |
| JEL: | I31 Q51 Q53 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:407&r=all |
| By: | Lucia, Alessi; Elisa, Ossola; Roberto, Panzica |
| Abstract: | This study provides evidence on the existence of a negative Greenium, i.e. a green risk premium, based on European individual stock returns and portfolios. By defining a green factor which is priced by the market, we offer a tool to assess a portfolio exposure to climate risk and hedge against it. We estimate that even in a rather benign scenario, there would be losses at the global level, including for European large banks, should they fail to price the Greenium. By halving the exposure to carbon-intensive sectors, losses would be reduced by 30%. These results call for the introduction of carbon stress tests for systemically important institutions. |
| Keywords: | Climate risk, ESG disclosure, factor models, asset pricing, stress test. |
| JEL: | G01 G11 G12 Q01 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:418&r=all |
| By: | Franz Fuerst; Georgia Warren-Myers |
| Abstract: | This study examines the economic effects of voluntary commitments to a more sustainable individual lifestyle. In particular, it investigates the crucial nexus between environmental factors and health and well-being outcomes. It promises to generate important insights into this multi-faceted relationship by focussing on a hitherto understudied topic, i.e. whether the housing market and particularly the spatial variation in house prices may play a decisive mediating role for the quality of the surrounding built and natural environment. This project seeks to enhance our understanding of the relationship between individual environmental attitudes and economic outcomes but also to inform policies in the public health, urban planning and local economic development arenas. |
| Keywords: | House Prices; Panel Data Analysis; Public Health; sustainable lifestyles |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_328&r=all |
| By: | Mause, Karsten |
| Abstract: | This paper draws attention to three challenges for environmental policy that are rather neglected and only rudimentary addressed in the current discourse on the topic of climate protection and environmental protection. Section 2 discusses how "fake news" poses a problem for environmental policy. Section 3 addresses the question of how to deal with the existing "knowing-doing gaps" in some environmental policy contexts. Finally, Section 4 highlights the difficulties of a global and fair environmental policy. These challenges are considered from a politico-economic perspective, more specifically, through the lens of Public Choice Theory/New Political Economy. |
| Keywords: | Climate Protection, Environmental Protection, Environmental Policy, Public Choice Theory, Political Economy. |
| JEL: | D72 H23 O44 P16 Q5 Q54 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:96212&r=all |
| By: | Barry REILLY; Rafael Isidro PARRA-PEÑA S. |
| Abstract: | This study offers evidence on the relationship between armed conflict and its environmental impacts. For the case of Colombia, using a unique annual municipality panel dataset (from 2004 to 2012) and an instrumental variable approach to control for possible endogeneity between forest cover and forced displacement, there is evidence that the armed conflict is a force for forest protection and growth. In December 2016, the Colombian government concluded the negotiations with the Revolutionary Armed Forces of Colombia (FARC) to end South America’s longest-running internal conflict. Forest degradation often increases in post-war situations. These findings highlight a need for increased protection of Colombia's forests in the wake of the peace settlement. |
| Keywords: | forest cover, forest change, reforestation, deforestation, armed conflict, violence, forced displacement, land abandonment, coca crops. |
| Date: | 2019–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:col:000118:017507&r=all |
| By: | Froese, Jens; Jahn, Malte; Wedemeier, Jan; Wuczkowski, Matthäus |
| Abstract: | This action plan at hand will address the questions how ports can increase their efficiency, enhance their role in the industry, and become more sustainable. After presenting low carbon port activities within the DUAL ports project, the paper will derive implications for low carbon emission policies. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hwwipp:n119&r=all |
| By: | Jean Bonnet (Normandie Univ, UNICAEN, CNRS, CREM, F-14000 Caen, France); Eva Coll-Martinez (Normandie Univ, UNICAEN, CNRS, CREM, F-14000 Caen, France); François Raulin (Métis Lab, EM Normandie, France); Patricia Renou-Maissant (EconomiX, CNRS, University of Paris Nanterre, France) |
| Abstract: | The paper proposes an evaluation framework for comparing empirically the performance of Norman EPCIs in terms of sustainable development. The concept of sustainability is based on six dimensions: environment and natural resources, energy transition, sustainable mobility, economic dynamism, social cohesion and solidarity, and governance and citizenship. Considering a wide range of variables, we build aggregate composite indexes for each dimension of sustainable development. We use cartographical support to compare the performances of EPCIs in each of the six dimensions. Then a cluster analysis classifies Norman EPCIs and explores similarities and dissimilarities with respect to the six components of the sustainable development. The results highlight significant disparities between EPCIs regardless of the dimension considered. Six profiles of sustainable development are distinguished. Finally, the findings make it possible to identify the strengths and weaknesses of Norman EPCIs in implementation of sustainable development. |
| Keywords: | Sustainable development, French EPCIs, composite index, multidimensional data |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2019-05&r=all |
| By: | Künn, Steffen (Maastricht University); Palacios, Juan (Maastricht University); Pestel, Nico (IZA) |
| Abstract: | This paper studies the causal impact of indoor air quality on the cognitive performance of individuals using data from official chess tournaments. We use a chess engine to evaluate the quality of moves made by individual players and merge this information with measures of air quality inside the tournament venue. The results show that poor indoor air quality hampers cognitive performance significantly. We find that an increase in the indoor concentration of fine particulate matter (PM2.5) by 10 μg/m3 increases a player's probability of making an erroneous move by 26.3%. The impact increases in both magnitude and statistical significance with rising time pressure. The effect of the indoor concentration of carbon dioxide (CO2) is smaller and only matters during phases of the game when decisions are taken under high time stress. Exploiting temporal as well as spatial variation in outdoor pollution, we provide evidence suggesting a short-term and transitory effect of fine particulate matter on cognition. |
| Keywords: | indoor air quality, cognition, worker productivity, chess |
| JEL: | D91 I1 J24 Q50 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12632&r=all |
| By: | Jean Bonnet (Normandie Univ, UNICAEN, CNRS, CREM, F-14000 Caen, France); Eva Coll-Martinez (Normandie Univ, UNICAEN, CNRS, CREM, F-14000 Caen, France); Patricia Renou-Maissant (EconomiX, CNRS, University of Paris Nanterre, France) |
| Abstract: | The paper proposes an evaluation framework for empirically comparing the performance of French departments in terms of sustainable development. The concept of sustainability is apprehended from six dimensions: environment and natural resources, energy transition, sustainable mobility, economic dynamism, social cohesion and solidarity, and governance and citizenship. The focus on French departments allows for a more detailed analysis that promotes a better understanding of local characteristics and initiatives. Considering a wide range of variables, we build aggregate composite indexes for each dimension of sustainable development. We use cartographical support to compare the performances of the departments in each of the six dimensions as well as spatial autocorrelation techniques to account for spatial dependence. Finally, a cluster analysis is used to classify French departments and to explore similarities and dissimilarities with respect to the six components of the sustainable development. The results highlight significant disparities between departments regardless of the dimension considered. Five profiles of sustainable development are distinguished. Finally, the findings make it possible to identify the strengths and weaknesses of the departments in the implementation of sustainable development. |
| Keywords: | Sustainable development, French Departments, composite index, multidimensional data |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2019-06&r=all |
| By: | Matteo Deleidi (Department of Economics, University Roma Tre); Mariana Mazzucato (UCL Institute of Innovation and Public Purpose); Gregor Semieniuk (Department of Economics, SOAS University of London) |
| Abstract: | Rapid structural change towards a low-carbon energy supply requires significant additional investments into innovative but high-risk low-carbon technologies. Mobilising greater private investments requires applying the right policy instruments, but while fiscal measures and regulation have been well researched, systematic quantitative evidence about the effect of public direct investment is lacking. Absent empirical evidence, contradictory theoretical arguments claim that such public (co-)investments either ‘crowd out’ or ‘crowd in’ private investors. In this paper we show that the macroeconomic concept of crowding out/in is inapplicable to sectoral studies such as of renewable electricity. Instead, both neoclassical microeconomics and evolutionary economics suggest public direct investment to have a positive effect due to either externalities or market creation effects. We also provide the first quantitative estimate of the effect of public direct investment on private investment into renewable electricity technologies for 17 countries in the period 2004-2014. Using feasible generalised least squares (FGLS) and static and dynamic generalised method of moments (GMM) estimators, we find that public investments not only have a positive but also consistently the largest effect on private investment flows relative to feed-in tariffs, taxes and renewable portfolio standards in general, and for wind and solar technologies separately. Implications for policy aimed at accelerating the low-carbon transition are discussed. |
| Keywords: | public direct investment, crowding out, crowding in, renewable electricity technology, innovation financing, externality, entrepreneurial state, market creation, climate change mitigation policy |
| JEL: | G3 H23 H54 O3 Q42 Q48 Q55 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:soa:wpaper:226&r=all |
| By: | Rabah Amir; Adriana Gama; Isabelle Maret |
| Abstract: | This paper investigates various aspects of a monopolist’s pricing and environmental quality choice, as two simultaneous decisions and with each as a separate decision, the other variable being exogenously fixed. Green quality is modeled as in Spence (1975), and the present analysis builds on his pioneering work. We contrast the private and the first-best socially optimal solutions. While the latter follows the intuitive property of assigning a higher price to higher quality, the former solution does so under a natural condition of log-supermodular demand. This condition is studied in some detail, and related to properties of an underlying utility function. We complete this characterization of optimal pricing by providing a counter-intuitive example where the two-dimensional interaction is such that the monopolist ends up charging a lower optimal price than the social planner, as well as producing a lower quality. Finally, we investigate respective sufficient conditions under which (i) the private and first-best solutions coincide, and (ii) either one is larger than the other. |
| Keywords: | environmental quality, green goods, pricing quality, multi-distortion monopoly pricing, organic food. |
| JEL: | Q50 L12 D42 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2019-34&r=all |
| By: | Lana Friesen (School of Economics, The University of Queensland); Lata Gangadharan (Department of Economics, Monash University, Australia); Peyman Khezr (School of Economics, The University of Queensland); Ian A. MacKenzie (School of Economics, The University of Queensland) |
| Abstract: | This article investigates supply reserves in pollution permit auctions. A supply reserve is a fixed quantity of permits that is automatically released if the initial clearing price is sufficiently high. The main rationale for using such a reserve is for cost containment: to lower the final clearing price. We show the inclusion of a reserve does exactly the opposite and provide corroborating experimental evidence. Relative to a benchmark without a supply reserve, we find that the introduction of a supply reserve will actually increase the clearing price, increase the revenue from the auction, and increase auction efficiency. The clearing price also increases in the level of the trigger price and relative size of the reserve. This has important implications for supply reserves currently in use, such as the Cost Containment Reserve (CCR) within the US Regional Greenhouse Gas Initiative (RGGI) |
| Keywords: | multi-unit auction; uniform-price; supply reserve, pollution permits, experiment. |
| JEL: | C91 C92 Q58 |
| Date: | 2019–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:610&r=all |
| By: | Jussila Hammes, Johanna (Swedish National Road & Transport Research Institute (VTI)); Nerhagen, Lena (Dalarna University); Congdon Fors, Heather (University of Gothenburg) |
| Abstract: | Social scientists regularly criticize the use of cost-benefit analysis (CBA), which has led to much focus being placed on investigating the possible biases related to its results. Recent research shows that CBA is not routinely done prior to environmental, energy, and climate policymaking in Sweden, and in countries where a CBA is made, the results have little influence on political decisions. This paper investigates obstacles to using CBA information with a focus on bureaucrats. We use empirical data from Sweden, where the ministries are small by international standards and hence government agencies have a sizeable influence on policymaking. We construct a theoretical model and then test the theoretical predictions with empirical data collected from five Swedish government agencies. The empirical results lend support both for the assertion that risk aversion concerning the environmental outcome, the bureaucrats’ environmental attitudes, and the cost of taking CBA information into account have a considerable impact on the probability of using information from a CBA. Hence risk averse and bureaucrats with strong environmental preferences are less likely and bureaucrats with low cost of doing a CBA more likely than other bureaucrats to use CBA information. Finally, a binding governmental budget constraint may positively influence a bureaucrat’s choice of undertaking a CBA. A tentative conclusion is therefore that it may be possible to increase the use of CBA by making the budgetary consequences of policies much clearer and demanding due consideration of costs. |
| Keywords: | Bureaucrats; Cost-Benefit Analysis; Delegation; Environmental Policy; Environmental Preferences; Risk Aversion/Neutral/Loving |
| JEL: | D61 D73 H41 |
| Date: | 2019–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vtiwps:2019_006&r=all |
| By: | Mriduchhanda Chattopadhyay (Graduate School of Economics, Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo 169-8050, Japan.); Toshi H. Arimura (Faculty of Political Science and Economics & Research Institute for Environmental Economics and Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.); Hajime Katayama (Faculty of Commerce & Research Institute for Environmental Economics and Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.); Mari Sakudo (Faculty of Engineering, Information and Systems, University of Tsukuba, Tennodai 1-1-1, Tsukuba, Ibaraki 305-8573, Japan & Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.); Hide-Fumi Yokoo (Graduate School of Economics, Hitotsubashi University, Naka 2-1, Kunitachi, Tokyo 186-8601, Japan & Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.) |
| Abstract: | An increasing number of empirical studies have investigated the determinants of cooking fuel choice in developing countries, where health risk from indoor air pollution is one of the most important issues. We contribute to this stream of literature by examining individuals f subjective probabilistic expectations about health risks when using different types of fuel and their influence on cooking fuel usage patterns. We also explore how these patterns, in turn, affect health status. Using data collected from 557 rural Indian households, we find that subjective probabilistic expectations of becoming sick from dirty fuel usage have a negative influence on the fraction of days with dirty fuel usage in the household. The results also show that dirty fuel usage degrades the health of the individual. We then examine the effectiveness of information provision regarding the health risks of dirty/clean fuel usage. Our simulation demonstrates that although the provision of information results in statistically significant changes in the households f cooking fuel usage patterns and in the individuals f health status, the changes may be small in size. |
| Keywords: | subjective probabilistic expectations, indoor air pollution, cooking fuel usage pattern, health, developing country |
| JEL: | I10 Q40 C83 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:was:dpaper:1910&r=all |
| By: | Amine Ouazad; Matthew E. Kahn |
| Abstract: | Recent evidence suggests an increasing risk of natural disasters of the magnitude of hurricane Katrina and Sandy. Concurrently, the number and volume of flood insurance policies has been declining since 2008. Hence, households who have purchased a house in coastal areas may be at increasing risk of defaulting on their mortgage. Commercial banks have the ability to screen and price mortgages for flood risk. Banks also retain the option to securitize some of these loans. In particular, bank lenders may have an incentive to sell their worse flood risk to the two main agency securitizers, the Federal National Mortgage Association, commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation, known as Freddie Mac. In contrast with commercial banks, Fannie and Freddie follow observable rules set by the FHFA for the purchase and the pricing of securitized mortgages. This paper uses the impact of one such sharp rule, the conforming loan limit, on securitization volumes. We estimate whether lenders’ sales of mortgages with loan amounts right below the conforming loan limit increase significantly after a natural disaster that caused more than a billion dollar in damages. Results suggest a substantial increase in securitization activity in years following such a billion-dollar disaster. Such increase is larger in neighborhoods for which such a disaster is “new news”, i.e. does not have a long history of hurricanes. Conforming loans are riskier in dimensions not observed in publicly available data sets: the borrowers have lower credit scores and they are more likely to become delinquent or default. A structurally estimated model of mortgage pricing with asymmetric information suggests that bunching at the conforming loan limit is an increasing function of perceived price volatility and declining price trends. A simulation of the impact of increasing climate risk on mortgage origination volumes with and without the GSEs suggests that the GSEs may act as an implicit insurer, i.e a substitute for the declining National Flood Insurance Program. |
| JEL: | G21 Q54 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26322&r=all |
| By: | Trung Tran; Thi Thu Hien Le; Thi Thuy Trang Nguyen; Anh Giang Pham; Thi Hanh Vu; Minh Hoang Nguyen; Ha My Vuong; Thu Trang Vuong; Phuong Hanh Hoang; Manh Toan Ho; Quan-Hoang Vuong |
| Abstract: | Book reading is an important factor contributing to children's cognitive development and education for sustainable development. However, in a developing country like Vietnam, statistics have reported a low figure in book reading: only 1.2 books a year. This research study used a dataset of 1676 observations of junior high school students from Northern Vietnam to explore students' reading behavior and its association with demographic factors, and the family's reading culture. Data analysis suggests the older the student gets, the less inclined they are to read, and being female and having hobbies of low sensory stimulation are linked to higher preference for reading. Regarding scholarly culture at home, students who read more varied types of books and spend more time on books are correlated with higher reading interest. Reading habits are also positively reinforced by the capacity to access books and parental book reading. |
| Keywords: | Education for sustainable developments; Gender; Junior high school students; Reading abilities; Reading practices; Sustainable education; Vietnam |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/292782&r=all |
| By: | - |
| Abstract: | En América Latina y el Caribe la integración de la mirada multiescalar y multinivel al desarrollo territorial es relativamente reciente, de inicios de 2010. El ILPES y la CEPAL han contribuido a esta temática con algunos aportes desde la investigación, como también desde la capacitación y la asistencia técnica. En esa misma línea, se ha planteado la introducción de la multiescalaridad en la comprensión del desarrollo territorial como una búsqueda de una visión más amplia, que reconozca la complejidad del problema y la necesidad de considerar simultáneamente las múltiples relaciones y papeles de las escalas geográficas en la explicación del desarrollo territorial y de sus políticas. Como podrá apreciarse a lo largo de este volumen dividido en dos partes, “Transformaciones globales y dinámicas territoriales” y “Nuevas tensiones territoriales en múltiples escalas”, las contribuciones incluidas en esta línea de trabajo son de muy variado tipo. Aportan nuevas preguntas, nutren el conocimiento de experiencias, brindan un mejor conocimiento de los problemas y contribuyen a la calidad y pertinencia de las políticas y de la planificación del desarrollo territorial en los países de la región. |
| Keywords: | DESARROLLO ECONOMICO, DESARROLLO SOCIAL, DESARROLLO SOSTENIBLE, POLITICA DE DESARROLLO, ZONAS URBANAS, AGENDA 2030 PARA EL DESARROLLO SOSTENIBLE, DESARROLLO LOCAL, CIUDADES, ADQUISICION DE TIERRAS, DESARROLLO URBANO, POBREZA URBANA, DESARROLLO REGIONAL, ASENTAMIENTOS INFORMALES, GOBERNABILIDAD, GOBIERNO MUNICIPAL, CONFERENCIAS, PLANIFICACION DEL DESARROLLO, ECONOMIC DEVELOPMENT, SOCIAL DEVELOPMENT, SUSTAINABLE DEVELOPMENT, DEVELOPMENT POLICY, URBAN AREAS, 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT, LOCAL DEVELOPMENT, CITIES, LAND ACQUISITION, URBAN DEVELOPMENT, URBAN POVERTY, REGIONAL DEVELOPMENT, INFORMAL SETTLEMENTS, GOVERNANCE, MUNICIPAL GOVERNMENT, CONFERENCES, DEVELOPMENT PLANNING |
| Date: | 2019–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col043:44847&r=all |
| By: | Robert D. Cairns; Vincent Martinet |
| Abstract: | From any state of economic and environmental assets, the maximin value defines the highest level of utility that can be sustained forever. Along any development path, the maximin value evolves over time according to investment decisions. If the current level of utility is lower than this value, there is room for growth of both the utility level and the maximin value. For any resource allocation mechanism (ram) and economic dynamics, growth is limited by the long-run level of the maximin value, which is an endogenous dynamic sustainability constraint. If utility reaches this limit, sustainability imposes growth to stop, and the adoption of maximin decisions instead of the current ram. We illustrate this pattern in two canonical models, the simple fishery and a two-sector economy with a nonrenewable resource. We discuss what our results imply for the assessment of sustainability in the short- and the long-run in non-optimal economies. |
| Keywords: | sustainable development, sacrifice, growth, maximin value, sustainability improvement, resource allocation mechanism, non-optimal economies |
| JEL: | O44 Q56 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7845&r=all |
| By: | Andrés Alonso (Banco de España); José Manuel Marqués (Banco de España) |
| Abstract: | El cambio climático, su gestión y mitigación, constituye sin duda uno de los elementos de riesgo más importantes que afrontará nuestra sociedad en las próximas décadas. El sector financiero desempeña un papel fundamental en este reto, tanto por su exposición y las consiguientes implicaciones patrimoniales que pueden derivarse de la materialización de este riesgo como por su labor canalizando las inversiones necesarias para transformar nuestra economía en un modelo sostenible. En este artículo se revisan distintas iniciativas que están teniendo lugar en el sector financiero privado en el proceso de introducción de la variable «sostenibilidad» en la toma de decisiones, con el objetivo tanto de lograr un balance con una menor huella de carbono (transformación del stock) como de desarrollar una estrategia de negocio alineada con unos principios responsables acordes con los compromisos internacionales (transformación del flujo). Se analizan las innovaciones que están surgiendo en el camino hacia unas finanzas sostenibles en relación con 1) la aparición de nuevos proveedores y servicios en los mercados, 2) la creación de nuevos productos financieros con criterios de sostenibilidad, 3) la adaptación de la política de gestión de riesgos financieros, y 4) las interacciones entre los avances tecnológicos y el cambio climático. |
| Keywords: | fintech, principios de desarrollo sostenible, cambio climático, sostenibilidad, bonos verdes, innovación, inteligencia artificial |
| JEL: | Q54 Q55 Q56 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:bde:opaper:1916&r=all |
| By: | Shaheen, Susan PhD; Martin, Elliot |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2019–10–03 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt95j7g71k&r=all |