nep-env New Economics Papers
on Environmental Economics
Issue of 2019‒10‒14
37 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Trade-offs between carbon sequestration, landscape aesthetics and biodiversity in a cost-benefit analysis of land use options in Norway By Endre Kildal Iversen; Kristine Grimsrud; Henrik Lindhjem; Jette Bredahl Jacobsen
  2. Roadmap for a Green Financial Policy in Ukraine under the EU Association Agreement By Sokolova, Tetiana; Sushchenko, Oleksandr; Schwarze, Reimund
  3. Efficient and sustainable bioenergy production in Swedish forests – a network DEA approach By Zhou, Wenchao; Bostian, Moriah; Färe, Rolf; Grosskopf, Shawna; Lundgren, Tommy
  4. Exploring public support for climate action and renewables in resource-rich economies: The case of Scotland By Ostfeld, R.; Reiner, D.
  5. Seawalls and Stilts: A Quantitative Macro Study of Climate Adaptation By Stephie Fried
  6. Pollution in a globalized world: Are debt transfers among countries a solution? By Marion Davin; Mouez Fodha; Thomas Seegmuller
  7. A survey of the ocean’s plastic waste problem, and some policy developments of the Philippines By Abueg, Luisito
  8. Supporting research for sustainable development By Martin Borowiecki; Diogo Machado; Caroline Paunov; Sandra Planes-Satorra
  9. Technology Treaties and Climate Change By Gersbach, Hans; Riekhof, Marie-Catherine
  11. Asymmetric Effects of Renewable Energy Consumption, Trade Openness and Economic Growth on Environmental Quality in Nigeria and South Africa By Iorember, Paul Terhemba; Usman, Ojonugwa; Jelilov, Gylych
  12. Wege zur Reduzierung von Lebensmittelabfällen - Pathways to reduce food waste (REFOWAS) : Maßnahmen, Bewertungsrahmen und Analysewerkzeuge sowie zukunftsfähige Ansätze für einen nachhaltigen Umgang mit Lebensmitteln unter Einbindung sozio-ökologischer Innovationen; Volume 1 By Schmidt, Thomas; Baumgardt, Sandra; Blumenthal, Antonia; Burdick, Bernhard; Claupein, Erika; Dirksmeyer, Walter; Hafner, Gerold; Klockgether, Kathrin; Koch, Franziska; Leverenz, Dominik; Lörchner, Marianne; Ludwig-Ohm, Sabine; Niepagenkemper, Linda; Owusu-Sekyere, Karoline; Waskow, Frank
  13. Lebensmittelabfälle in Deutschland – Baseline 2015 – By Schmidt, Thomas; Schneider, Felicitas; Leverenz, Dominik; Hafner, Gerold
  14. Can local communities afford full control over wildlife conservation? The Case of CAMPFIRE in Zimbabwe By Herbert Ntuli; Edwin Muchapondwa; Boscow Okumu
  15. “The Political Economy of the Paris Agreement. Income Inequality and Climate Policy” By Germà Bel; Jordi J. Teixidó
  16. Sanctioned Quotas vs Information Provisioning for Community Wildlife Conservation in Zimbabwe: A Framed Field Experiment Approach By Herbert Ntuli; Anne-Sophie Crépin; Caroline Schill; Edwin Muchapondwa
  17. Transboundary Pollution Externalities: Think Globally, Act Locally? By Davide La Torre; Danilo Liuzzi; Simone Marsiglio
  18. The Economics of Energy Efficiency, a Historical Perspective By Louis-Gaëtan Giraudet; Antoine Missemer
  19. Statistical analysis and stochastic interest rate modelling for valuing the future with implications in climate change mitigation By Josep Perell\'o; Miquel Montero; Jaume Masoliver; J. Doyne Farmer; John Geanakoplos
  20. Extreme Temperature and Extreme Violence across Age and Gender: Evidence from Russia By Otrachshenko, Vladimir; Popova, Olga; Tavares, José
  21. Externalities, entry bias and optimal subsidy policy in oligopoly By Rupayan Pal; Ruichao Song
  22. Sources of Economic Growth in Models with Non-Renewable Resources By Sriket, Hongsilp; Suen, Richard M. H.
  23. Communal Property Rights and Deforestation By Romero, M; Saavedra, S
  24. ¿Las diferencias importan? Heterogeneidad y dilemas sociales en recursos naturales, aportes desde la Economía experimental y del comportamiento By Barrero Amórtegui, Yady Marcela
  25. Climate Change, Inequality, and Human Migration By Burzynski, Michal; de Melo, Jaime; Deuster, Christoph; Docquier, Frédéric
  26. Understanding the drivers of subsistence poaching in the Great Limpopo Transfrontier Conservation Area: What matters for community wildlife conservation? By Herbert Ntuli; Aksel Sundström; Martin Sjöstedt; Edwin Muchapondwa; Sverker C. Jagers; Amanda Linell
  27. Farm diversification and climate change: implications for food security in Northern Namibia By Chalmers Mulwa; Martine Visser
  28. ¿A dónde se fue la fortuna? Historia económica y social del Chocó, Colombia By Jilmar Robledo-Caicedo
  29. ¿A dónde se fue la fortuna? Historia económica y social del Chocó, Colombia By Jilmar Robledo-Caicedo
  30. Dana Desa on clean water and sanitation access in Indonesia: Does Cash-for-work (PKT) matter? By Isnawati Hidayah; Imam Mukhlis
  31. CO2-Bepreisung in den nicht in den Emissionshandel integrierten Sektoren: Optionen für eine sozial ausgewogene Ausgestaltung By Frondel, Manuel
  32. Duurzame schaarste : Een kritische analyse van twee economische duurzaamheidsparadigma’s geïnspireerd door de filosofie van Dooyeweerd By van Geesbergen, Ad
  33. Extreme Weather and Long-term Health: Evidence from Two Millennia of Chinese Elites By Wang-Sheng Lee; Ben G. Li
  34. Multiple Dimensions of Human Development Index and Public Social Spending for Sustainable Development By Iana Paliova; Robert McNown; Grant Nülle
  35. La economía circular como respuesta alternativa a los desafíos de la alimentación: análisis de caso para la situación de Chile By Miguel Salazar
  36. Transition Towards a Green Economy in Europe: Innovation and Knowledge Integration in the Renewable Energy Sector By Mancusi, Maria Luisa; Conti, Chiara; Sanna-Randaccio, Francesca; Sestini, Roberta
  37. The relationship between renewable energy and retail electricity prices: Panel evidence from OECD countries By A.M. Oosthuizen; R. Inglesi-Lotz; G.A. Thopil

  1. By: Endre Kildal Iversen; Kristine Grimsrud (Statistics Norway); Henrik Lindhjem; Jette Bredahl Jacobsen
    Abstract: Norway is considering a national afforestation program for greenhouse gas (GHG) sequestration on recently abandoned semi-natural pastureland. However, the program may have negative impacts on landscape aesthetics and biodiversity. We conducted a national choice experiment survey to estimate non-market benefits of the afforestation program, compared to an alternative program of recovering pastures and the status quo of natural reforestation. Combining the preference data with secondary data on costs, we derive the social net return on land use alternatives. We find that restoring half of the abandoned pastures for grazing yields the highest net present value. Rural households closer to abandoned pastures are the largest beneficiaries of this policy due to the value they place on pastures and their disutility of natural reforestation. Their willingness to pay (WTP) for recovering pastures is more than three times that of urban households, while non-use values derived from carbon sequestration and biodiversity seem more constant across space. The net present value of all land use alternatives are still positive when limiting the aggregation of WTP to rural households, and when allowing for the presence of substantial hypothetical bias in benefit estimates and for cost increases. Results indicate that landscape and biodiversity values are substantial and should be considered when designing agricultural and climate policies.
    Keywords: climate forest; biodiversity; pastures; discrete choice experiment; nonuse values; costbenefit analysis
    JEL: Q18 Q15 Q51 Q54 Q57
    Date: 2019–09
  2. By: Sokolova, Tetiana; Sushchenko, Oleksandr; Schwarze, Reimund
    Abstract: This paper examines the prospects and feasibility of using the Association Agreement between Ukraine and the EU as a roadmap for reorienting the Ukrainian brown economy toward a green economy, making use of green financial instruments in the process. The first chapter is dedicated to the concept of green financial policy as well as its main fiscal and market instruments. The second chapter explores in detail the state of climate-related affairs in Ukraine, the country's commitments to numerous international environmental agreements as well as the role of the EU Association Agreement and its place in the Ukrainian economic context. The third chapter considers the political, economic and social measures required to establish a green financial policy. Our central findings are as follows: (1) Although Ukraine has been making progress towards a green financial policy in recent years, there is no doubt that the country needs technical and financial assistance from its European partners. The Association Agreement between Ukraine and the countries of the European Union provides an essential basis for building a green economy in Ukraine. (2) Despite efforts to mobilise internal green financial resources, the Ukrainian Government is struggling with what has already been achieved and is at a crossroads in moving in a different direction. For this reason, local and even non-governmental organisations in Ukraine today have often a greater direct influence on the process of building a green economy than the government itself. Two promising examples of Ukrainian companies seeking a green reputation are the Ukrainian Green Bank (Ukrgasbank) and the large energy company DTEK.
    Keywords: green economy,sustainable development,low-carbon technology,green finance,environmental taxation,green investment,Ukraine,European Union,Association Agreement,National Action Plan
    Date: 2019
  3. By: Zhou, Wenchao (CERE - the Center for Environmental and Resource Economics); Bostian, Moriah (Lewis & Clark College, USA); Färe, Rolf (Department of Economics, Oregon State University); Grosskopf, Shawna (CERE - the Center for Environmental and Resource Economics); Lundgren, Tommy (CERE - the Center for Environmental and Resource Economics)
    Abstract: Forest fuel defined as branches and tops (GROT) of harvested trees represents a large share of forest biomass and is increasingly viewed as a potential energy source. This study assesses the economic potentials of forest bioenergy production in Swedish forests, using a network data envelopment analysis (DEA) model to estimate the technology for biofuel and other forest products. We consider that forests are managed to use multiple inputs to produce multiple outputs. Outputs include sawtimber, pulpwood, fuelwood, and bioenergy in terms of GROT. Our model also considers environmental concerns over biodiversity and CO2 emissions from burning biomass. We apply the network DEA model to measure the revenue efficiency of forest production of Swedish forests using a panel consisting of 20 counties and covering the years from 2008 to 2014. Our results show that there exist persistent economic inefficiencies of forest production in some counties, reducing the overall efficiency of Sweden’s forest and wood products industry. In addition, we also estimate the potential increase in bioenergy, deadwood and CO2 emissions reduction from combustion of bioenergy and by-products from sawtimber and pulpwood.
    Keywords: Climate; Bioenergy; Efficiency; Environment; Forests; Network
    JEL: D20 D21 D22 D24
    Date: 2019–10–03
  4. By: Ostfeld, R.; Reiner, D.
    Abstract: Scotland offers a case study of a country with significant fossil energy resources that has recently moved to rapidly decarbonize its economy and deploy renewable energy sources. We review the key policies that have facilitated a 47% reduction in greenhouse gas emissions from 1990 levels and almost 75% of Scottish electricity being produced from renewable energy. Public views on climate policy, renewable energy, and low-carbon technologies are explored using focus groups we conducted in Aberdeen, Peterhead, and Edinburgh and citizens’ juries held in Aberdeen and Edinburgh. The deliberative processes reveal strong public support for continued diversification of Scotland’s energy portfolio to include more renewable energy sources, particularly at the local level. We also found support for a greater role for state-led involvement in the energy sector. Pro-renewables sentiments and skepticism of industry pervade even in Aberdeen, the main UK hub for oil and gas exploration, alongside support for further exploration of low-carbon technologies such as carbon capture and storage (CCS). Although Peterhead stood to benefit from a major CCS project, there was little awareness of the proposed project among residents nor its cancellation. Finally, we argue deliberative processes can help both policy-makers and developers gauge where they can (and cannot) expect support.
    Keywords: Citizens' jury, focus groups, energy transition, climate policy, renewable energy, low-carbon technologies, Scotland, carbon capture and storage
    JEL: Q42 Q54 Q58
    Date: 2019–10–07
  5. By: Stephie Fried (Arizona State University)
    Abstract: Investment in adaptation capital reduces the damage from extreme weather, mitigating the welfare cost of climate change. Federal aid for disaster relief reduces the net costs to localities that experience extreme weather, decreasing their incentives to invest in adaptation capital. I develop a heterogenous-agent macro model to quantify the relationship between adaptation capital, federal disaster policy, and climate change. I find that federal aid for disaster relief substantially reduces adaptation investment. However, the federal subsidy for adaptation more than offsets this moral hazard effect. I introduce climate change into the model as a permanent, increase in the severity of extreme weather. I find that adaptation reduces the welfare cost of this climate change by 15-20 percent.
    Date: 2019
  6. By: Marion Davin (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Mouez Fodha (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics); Thomas Seegmuller (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This article analyzes the impacts of debt relief on production and pollution. We develop a two-country overlapping generations model with environmental externalities, public debts and perfect mobility of assets. Pollutant emissions arise from production, but agents may invest in pollution mitigation. Could debt relief be an efficient tool to encourage less developed countries to engage in the fight against climate change? We consider a decrease of the debt of the poor country balanced by an increase of the richer country's debt. We show that debt relief makes it possible to engage poor countries in the process of pollution abatement. Capital, environmental quality and welfare can increase in both countries. This result relies on the environmental sensitivity and the discount factor in the poor country relative to the rich one: the greater they are the more beneficial the debt relief is.
    Keywords: Pollution,Abatement,Overlapping generations,Public debt,Capital market integration
    Date: 2019–10
  7. By: Abueg, Luisito
    Abstract: A review of literature the state of ocean clean-up and how is the Philippines contributing to problem of plastic disposal globally. This paper focuses on the problems related to the generation, use, and disposal of single-use plastics. This also presents a review on recent policy formulation and implementation in addressing such problems, both on the level of local government units and the national key agencies. Anecdotal examples of business initiatives are also cited in literature review.
    Keywords: plastics, single-use refuse, ocean clean-up, ocean pollution, ocean garbage patches, plastic use bans, recycling, Philippine environmental laws, solid waste management
    JEL: Q52 Q53 Q56
    Date: 2019–10–01
  8. By: Martin Borowiecki; Diogo Machado; Caroline Paunov; Sandra Planes-Satorra
    Abstract: This document presents nine innovation policy initiatives from different OECD countries that support research and innovation for sustainable development by embracing systemic solutions to address the challenge. The three types of initiatives reviewed include: i) grant schemes that support the development of environmental technologies; ii) programmes that foster research collaborations to address environmental challenges; and iii) smart city initiatives that support sustainable development in urban areas often by leveraging the use of digital technologies. The nine policy initiatives, which were selected based on an overview of initiatives gathered by the EC-OECD STIP Compass database, are described with regards to their main features, including policy objective, policy instrument(s) implemented, target groups, selection criteria and procedures, implementation challenges faced as well as their impact.
    Keywords: environmental technologies, innovation policy, research, sustainable development
    JEL: Q01 Q55 Q56 Q58 O13 O30
    Date: 2019–10–11
  9. By: Gersbach, Hans; Riekhof, Marie-Catherine
    Abstract: We introduce an international technology treaty ("Tech Treaty") that couples the funding of research for a more advanced abatement technology with an international emissions permit market. While each country decides on domestic permit issuance, a fraction of these permits is auctioned by an international agency. Auction revenues scale up license revenues for the innovators of abatement technologies. We show that such a treaty increases innovations and decreases emissions under plausible conditions compared to an emissions trading system without additional technology agreement. Finally, we discuss how a Tech Treaty may inspire next steps in existing technology programs.
    Keywords: Climate Change Mitigation - Technology Promotion - R&D - International Emissions Permit Markets - International Treaty - Externalities
    JEL: H23 O31 Q54
    Date: 2019–10
  10. By: Sarka Konasova (Czech Technical University in Prague)
    Abstract: This paper presents a cost-benefit analysis of vegetated roofs in urban areas based on an extensive literature review in multiply fields. Green roofs have been used as an environmentally friendly roofing structure for many centuries and considered as a sustainable product. Research shows that private benefits are usually high enough to justify the additional investment for a private decision maker. Although, when the public benefits are added to the private benefits, than in the most cases benefits outweigh additional costs of green roofs. The analysis is conducted to demonstrate the private and public costs and benefits of integrated vegetation into building envelopes. Most of the benefits are not directly measurable in economic term, thus their monetary value is estimated due to other studies.
    Keywords: built-up area; cost-benefit analysis; green roof
    JEL: Q51
    Date: 2019–10
  11. By: Iorember, Paul Terhemba; Usman, Ojonugwa; Jelilov, Gylych
    Abstract: The study investigates the asymmetric effects of renewable energy consumption (REC), trade openness (TOP) and GDP per capita (GDP) on environmental quality in Nigeria and South Africa using the Non-linear Autoregressive Distributed Lag (NARDL) model from 1990Q1-2014Q4. To ensure this, the Zivot-Andrews unit root test and nonlinear ARDL cointegration tests are employed. The empirical results based on the NARDL found that REC, TOP and GDP have asymmetric effects on environmental quality in Nigeria and South Africa in the long-run and the short-run dynamics. Specifically, the long-run effect of a negative change in REC and GDP is stronger than that of a positive change of the same magnitude. Similarly, the effect of a positive change in TOP is stronger than the negative change. The results of the short run for Nigeria indicates that the effect of a negative change in REC and GDP is stronger than that of the positive change, while the effect of a positive change in TOP is stronger than its negative change. For South Africa, the positive change in REC and GDP is stronger than the negative change while for TOP the negative change is stronger than the positive change. The policy implications of the findings are carefully discussed in the text.
    Keywords: Renewable energy consumption; Trade openness; Economic Growth; Environmental quality; Asymmetric effects
    JEL: Q2 Q4 Q43 Q5 Q56
    Date: 2019
  12. By: Schmidt, Thomas; Baumgardt, Sandra; Blumenthal, Antonia; Burdick, Bernhard; Claupein, Erika; Dirksmeyer, Walter; Hafner, Gerold; Klockgether, Kathrin; Koch, Franziska; Leverenz, Dominik; Lörchner, Marianne; Ludwig-Ohm, Sabine; Niepagenkemper, Linda; Owusu-Sekyere, Karoline; Waskow, Frank
    Abstract: With the Sustainable Development Goals (SDG), the countries of the United Nations have set themselves the goal of reducing food waste along the entire value chain by 2030. The aim of the REFOWAS project was to analyze the German agri-food sector with regard to the production of food waste and, in particular, the share of avoidable waste, and to identify and test strategies and starting points for waste reduction measures. The project combines two levels of analysis. The first, a holistic analysis of the German food sector, was carried out with regard to the waste generated by avoidable and unavoidable food waste and the related environmental effects. At the same time case studies were used to examine various subsectors in more detail (fruit and vegetables, baked goods, school meals) and a social empirical study (private households) was carried out. The methods chosen include: technical discussions; round tables; status quo and control measurements; household survey analyses; guided expert interviews; workshops and field tests to validate results and previously established options for action. The sector-wide investigations are largely based on data from the Federal Statistical Office and derived literature values. In the case studies food waste was quantified and reduction measures tested. From the varied and differentiated findings, recommendations for action for actors in politics, business and society could be derived. The results of the project were communicated in particular through the practically tested and evaluated measures, the subsequent information materials such as articles, brochures and video clips, as well as the wide-ranging discussion of results with lectures and workshops (see REFOWAS website -
    Keywords: Agribusiness, Food Consumption/Nutrition/Food Safety
    Date: 2019–10–10
  13. By: Schmidt, Thomas; Schneider, Felicitas; Leverenz, Dominik; Hafner, Gerold
    Abstract: According to FAO data, about one-third of all food produced worldwide is discarded. Reducing this food waste by 50 % at the retail and consumer levels until the year 2030 is a societal challenge currently faced by the German government as well. The German National Strategy for Food Waste Reduction and German’s Strategy for Sustainable Development address this topic. The draft of a baseline presented here provides a basis for decision-making for the calculation and reporting of food waste 2015 in Germany. Data and methods as well as the results, including the quality report, are also compliant with the relevant EU Delegated Decision for future reporting. The baseline calculation is based on data from 2015, whereby surveys either originate from this year, or are transferred from the most recent surveys of other years. This applies in particular to the applied coefficients derived from waste analyses, surveys and accounting data, or other records. The total amount of food waste produced in 2015 in Germany amounts to almost 11.9 million tons of fresh mass, with primary production accounting for 12 % (1.36 million tons); processing 18 % (2.17 million tons); trade 4 % (0.49 million tons) and out-of-home catering for 14 % (1.69 million tons). The bulk of food waste is generated in private households at 52 % (6.14 million tons), which is equivalent to about 75 kg per capita in 2015. Across all sectors, about half of the waste could theoretically be avoidable. Both the quality of the data and the data analysis are assessed. Uncertainties in the data situation exist above all in the areas of primary production, processing and trading. In particular, the retail sector influences food waste in the upstream sector due to quality claims and returns as well as in the consumer sector due to purchase incentives. Coordinated cooperation with actors from primary production, processing and trading as well as consumption is necessary in order to improve the data situation and optimize interfaces in the future. The present baseline reports the food waste in tons of fresh mass without considering its value and the trends. This is not enough for a sustainability assessment. In the future, ecological, economic and social inferences from the baseline would have to follow. For example, they could support the Climate Action Plan 2050. Significant changes over time also shed light on positive or negative trends, and thus provide a gauge of overall trends in combination with measures to reduce food waste.
    Keywords: Consumer/Household Economics, Food Consumption/Nutrition/Food Safety
    Date: 2019–10–10
  14. By: Herbert Ntuli; Edwin Muchapondwa; Boscow Okumu
    Abstract: Wildlife is widely becoming an important vehicle for rural development in most third-world countries across the globe. Policymakers are usually not informed about the needs and wants of poor rural households and roll out programmes that are not tailor made to suit their desires, which often result in policy failure. We use a survey-based choice experiment in this paper to investigate household preferences for various attributes of a wildlife management scheme. The survey was administered in CAMPFIRE communities around the Gonarezhou National Park in Zimbabwe. Respondents showed great willingness to move from the status quo to a regime that gives them full control over wildlife. Thus, our results speak to increased devolution of wildlife management from the rural district councils into the hands of sub-district producer communities. The WTP for the new regime is more than twice the WTP for the old regime. Furthermore, our results support the idea that government programmes and development projects should not be imposed on local communities, but should be informed by programme beneficiaries through research in order to capture their needs and wants. Finally, our results demonstrate that poachers and those who are generally good in extracting resources from the environment will oppose change.
    Keywords: willingness-to-pay, CAMPFIRE, local communities, wildlife conservation
    JEL: Q28 Q56 Q57 Q58
    Date: 2018–10
  15. By: Germà Bel (GiM, Dept.Política Econòmica i Estruct. Econòmica Mundial Universidad de Barcelona. Av. Diagonal, 690, 08034 Barcelona, Spain); Jordi J. Teixidó (GiM, Departament d'Econometria, Estadística i Economia Aplicada, Universitat de Barcelona. Av. Diagonal 690 Torre 6, planta 3, Of. 6306)
    Abstract: We empirically assess how both between-country inequality and within-country inequality relate to climate policy ambition as defined by NDC pledges of the Paris Agreement (COP21). We exploit the difference between high and low ambition targets submitted by parties to construct a climate policy ambition index. We find that both inequalities shape countries’ pledges: First, low income countries tend to be more ambitious in setting their pledges when external support is received. Second, within-country inequality is associated with (i) lower mitigation ambition in low and middle-low-income countries, and with (ii) higher mitigation ambition, although non statistically significant, for upper-high and high-income countries. Despite we cannot claim any causal mechanism, our results are discussed in terms of climate policy being a superior good in rich countries and elites benefiting from emitting economic activities in poorer countries
    Keywords: Climate Policy, Inequality, Paris Agreement, COP21, INDC JEL classification:F53, O57, P16, Q58
    Date: 2019–09
  16. By: Herbert Ntuli; Anne-Sophie Crépin; Caroline Schill; Edwin Muchapondwa
    Abstract: We investigate the behavioural responses of resource users to policy interventions like sanctioned quotas and information provisioning. We do so in a context when multiple resources (pastures and wild animal stocks) are connected and could substantially and drastically deteriorate as a result of management. We perform an experimental study among communities that are managing common pool wildlife in Zimbabwe. We find that user groups manage these resource systems more efficiently when faced with either a policy intervention, or the possibility of a drastic drop in stocks or combination of both, compared to groups facing a standard resource growth without possibility of drastic drop. Although a sanctioned quota performs better than information under some circumstances, information can be a good substitute in situations when a quota is either suboptimal or expensive as is the case in most developing countries. However, the combination of both interventions is better than either quota or information in managing complex ecosystems. Our main innovation is applicability of the experimental design, including complexities associated with linked resource systems. Our study also provides pragmatic evidence of the role of carrot and stick institutions versus information provisioning in governing common-pool wildlife in Southern Africa. These results can inform policymakers and development practitioners. If they aim to avoid a drastic drop in linked resources, they can either use a policy intervention with sanctioned quota or information. The combination of both types of interventions might be most appropriate.
    Keywords: Collective action, common pool resources, laboratory experiments, regime shift, social ecological system, threshold
    JEL: C93 D01 D02 Q57 Q58
    Date: 2019–01
  17. By: Davide La Torre; Danilo Liuzzi; Simone Marsiglio
    Abstract: We analyze the implications of transboundary pollution externalities on environmental policymaking in a spatial and finite time horizon setting. We focus on a simple regional optimal pollution control problem in order to compare the global and local solutions in which, respectively, the transboundary externality is and is not taken into account in the determination of the optimal policy by individual local policymakers. We show that the local solution is suboptimal and as such a global approach to environmental problems is effectively needed. Our conclusions hold true in different frameworks, including situations in which the spatial domain is either bounded or unbounded, and situations in which macroeconomic-environmental feedback effects are taken into account. We also show that if every local economy implements an environmental policy stringent enough, then the global average level of pollution will fall. If this is the case, over the long run the entire global economy will be able to achieve a completely pollution-free status.
    Date: 2019–10
  18. By: Louis-Gaëtan Giraudet (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech, ENPC - École des Ponts ParisTech); Antoine Missemer (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech, CNRS - Centre National de la Recherche Scientifique)
    Abstract: Energy efficiency can be considered as a central pillar of global warming mitigation, with important co-benefits, including productivity gains, resource conservation or national security. It is also a subject of controversy between engineers and economists, who have divergent conceptions of the notion of optimality that delineates energy efficiency potentials. Modern surveys hardly go back beyond the 1970s and do not fully explore the reasons and conditions for the persistent differences between economists' and engineers' views. This paper provides such a historical account, investigating the positioning of economic analysis in contrast to the technical expertise on key energy efficiency topics – the rebound effect, the energy efficiency gap, and green nudges, from the 19th century to the present day. It highlights the permanence and evolution in the relationship that economists have had with technical expertise. An extension of the current conceptual framework is finally provided to connect our historical findings with avenues for future research.
    Keywords: engineering,nudge,history of economic thought,energy efficiency,market barriers and failures
    Date: 2019
  19. By: Josep Perell\'o; Miquel Montero; Jaume Masoliver; J. Doyne Farmer; John Geanakoplos
    Abstract: High future discounting rates favor inaction on present expending while lower rates advise for a more immediate political action. A possible approach to this key issue in global economy is to take historical time series for nominal interest rates and inflation, and to construct then real interest rates and finally obtaining the resulting discount rate according to a specific stochastic model. Extended periods of negative real interest rates, in which inflation dominates over nominal rates, are commonly observed, occurring in many epochs and in all countries. This feature leads us to choose a well-known model in statistical physics, the Ornstein-Uhlenbeck model, as a basic dynamical tool in which real interest rates randomly fluctuate and can become negative, even if they tend to revert to a positive mean value. By covering 14 countries over hundreds of years we suggest different scenarios. We find that only 4 of the countries have positive long run discount rates while the other ten countries have negative rates. Even if one rejects the countries where hyperinflation has occurred, our results support the need to consider low discounting rates. The results provided by these fourteen countries significantly increase the priority of confronting global actions such as climate change mitigation.
    Date: 2019–10
  20. By: Otrachshenko, Vladimir; Popova, Olga; Tavares, José
    Abstract: We examine the relationship between extreme temperatures and violent mortality across Russian regions, with implications for the social costs of climate change. We assess the unequal impact of temperature shocks across gender and age groups by exploring a dataset on temperature and violence in Russia, between the years 1989 and 2015. Hot days lead to an increase in both female and male victims, one hot day resulting in the loss of 1,579 person-years of life for men, and 642 for women. However, the likelihood of victimization during weekends rises noticeably for women, with women between 25 and 59 more victimized on weekends. Our results suggest that female victimization on hot days would be mitigated by increases in regional income and job opportunities, and on cold days, by decreasing the consumption of spirits.
    Keywords: Extreme Temperatures; Gender Homicide; Russia; Violence
    JEL: I14 K42 P52 Q54
    Date: 2019–09
  21. By: Rupayan Pal (Indira Gandhi Institute of Development Research); Ruichao Song (Southwestern University of Finance and Economics)
    Abstract: This article analyses alternative subsidy schemes and long-run entry bias in a new industry that creates positive environmental externalities. It demonstrates that per unit subsidy scheme, despite attracting fewer firms, results in higher industry output and economic surplus in the equilibrium compared to the expenditure equivalent lump-sum subsidy scheme. However, the later leads to higher total surplus, unless spill-over externalities is sufficiently small. Further, free entry equilibrium number of firms may be excessive or insufficient. The first best equilibrium outcome can be implemented through a unique combination of per unit subsidy and lump sum subsidy/tax, which involves positive government expenditure.
    Keywords: Positive externalities, Environmental benefit, Free entry, Cournot Oligopoly, Expenditure equivalent subsidy schemes, Social Optimum
    JEL: D43 L52 H23 Q48 Q58
    Date: 2019–08
  22. By: Sriket, Hongsilp; Suen, Richard M. H.
    Abstract: This paper re-examines the possibility of endogenous long-term economic growth in neoclassical models with non-renewable resources. Instead of using a Cobb-Douglas production function as in most existing studies, we consider a general class of production functions in which physical capital is functionally separable from labour and natural resources. It is shown that if the elasticity of substitution between labour and resources is identical to one, then long-term economic growth is endogenous. But if this elasticity is bounded above or below by one, as suggested by empirical evidence, then long-term economic growth is determined a priori by an exogenous technological factor.
    Keywords: Non-Renewable Resources; Endogenous Growth; Elasticity of Substitution.
    JEL: O13 O41 Q32
    Date: 2019–09–27
  23. By: Romero, M; Saavedra, S
    Abstract: Almost a third of world’s forest area is under communal management. In principle, this arrangement could lead to a “tragedy of the commons” and therefore more deforestation. But monitoring outsider’s deforestation may be easier if the owner is a community rather than an individual. We study the effect of communal titling on deforestation in Colombia using a difference-in-discontinuities strategy that compares areas just outside and inside a title, before and after titling. We find that deforestation decreased in communal areas after titling. Interestingly, we find evidence of positive spillovers of reduced deforestation in nearby areas.
    Keywords: Deforestation; Communal Land; Tragedy of the Commons
    JEL: P32 Q23
    Date: 2019–10–01
  24. By: Barrero Amórtegui, Yady Marcela
    Abstract: Resumen: En el presente artículo se hace una revisión desde las ciencias comportamentales sobre la cooperación y los dilemas sociales en el contexto de la heterogeneidad. En primera parte se conceptualiza este fenómeno y se plantean algunos elementos que dan cuenta de su influencia en el logro de la cooperación desde una perspectiva experimental. Aunque la evidencia sobre la existencia de un efecto positivo de las diferencias de los individuos o de las comunidades en la superación de los dilemas sociales es mixta, se reconocen los distintos equilibrios alcanzados por un grupo homogéneo y uno no homogéneo. Una vez enmarcado este contexto general de los dilemas sociales, la discusión se centra en la heterogeneidad presente en los usuarios y comunidades gestoras de los recursos naturales. Así, se analiza la literatura que da cuenta de la influencia de los elementos contextuales cuando usuarios y comunidades buscan superar dilemas colectivos, tales como el sobre uso y el agotamiento de los recursos. / Abstract : This paper is a revision of the contributions at the behavioral sciences about cooperation and social dilemmas in a heterogeneous framework. At the first part, heterogeneity is conceptualized, and I show some elements related to their influence over cooperation in an experimental perspective. Even though there is mixed evidence about the positive effect of individual or collective differences in the overcoming of social dilemmas, the literature identifies that diverse equilibriums are reached in the homogeneous and not homogeneous groups.After the presentation of the general context about social dilemmas, the document focuses the discussion on users and community’s heterogeneity in the use of natural resources. So, I analyze the literature related to the influence of contextual elements when people want to solve collective problems, as resources overuse and depletion. To recognize heterogeneity as a cooperation factor is relevant at public policy context because aid to focus the government intervention effectively to achieve the conservation of common-pool resources.
    Keywords: cooperación, economía experimental, recursos naturales.
    JEL: D01 D91 Q20
    Date: 2019–09–02
  25. By: Burzynski, Michal; de Melo, Jaime; Deuster, Christoph; Docquier, Frédéric
    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; Conflicts; inequality; migration; Urbanization
    JEL: E24 F22 J24 J61 Q15 Q54
    Date: 2019–09
  26. By: Herbert Ntuli; Aksel Sundström; Martin Sjöstedt; Edwin Muchapondwa; Sverker C. Jagers; Amanda Linell
    Abstract: While subsistence poaching is a large threat to wildlife conservation in Southern Africa, this behaviour is seldom researched. Individual and community level factors that really drive such behaviour are less understood because of both lack of data and literature’s predominant focus on commercial poaching. To study the drivers of subsistence poaching, this article uses primary survey data from a large number of respondents and communities in the Great Limpopo, a transfrontier reserve spanning across Mozambique, South Africa and Zimbabwe. We focus on two features, reported poaching incidences in the community and the previous hunting behaviour of individuals, in multivariate regression analysis. There is no evidence of the role of education, employment and livestock ownership on poaching. However, speaking to previous theoretical accounts, our results suggest that factors such as age, gender, trust, group size, local institutions, resource quality and perceptions about park management influence subsistence poaching. The findings indicate that capacity building in local institutions, training related to wildlife management and public awareness campaigns could be used by policymakers to affect peoples’ perceptions and behaviours in this context.
    Keywords: common pool wildlife, fugitive resource, subsistence poaching, CAMPFIRE
    JEL: Q28 Q57 Q58
    Date: 2019–09
  27. By: Chalmers Mulwa; Martine Visser
    Abstract: Limited non-farm opportunities in the rural areas of the developing world, coupled with population growth, means agriculture will continue to play a dominant role as a source of livelihood in these areas. Thus, while rural transformation has dominated recent literature as a way of improving welfare through diversifying into non-farm sectors, improving productivity and resilience to shocks in smallholder agricultural production cannot be downplayed. This is especially so given the changing climatic conditions affecting agricultural production, and thus threatening many livelihoods in rural areas. Farm diversification is an important strategy for creating resilience against climatic shocks in farm production. Using cross-sectional data from northern Namibia, the study assesses the barriers and success factors related to effective crop and livestock enterprises diversification and the effect of these on food security outcomes. A Seemingly Unrelated Regression model is used to assess the joint factors explaining total farm diversification, while a step-wise error correction model is used to evaluate the conditional effect of diversification in each of the two farm enterprises on two measures of food security: food expenditure and dietary diversity. We find that past exposure to climate shocks informs current diversification levels and that access to climate information is a key success factor for both livestock and crop diversification. In terms of food security, greater diversification in either crop or livestock production leads to higher food security outcomes, with neither crop nor livestock diversification showing dominance in affecting food security outcomes. However, an overall higher level of diversification in both livestock and crop enterprises is dominant in explaining food security outcomes.
    Keywords: climate change, Agriculture, Namibia
    Date: 2019–10
  28. By: Jilmar Robledo-Caicedo (Banco de la República de Colombia)
    Abstract: El Chocó es uno de los departamentos con los indicadores socioeconómicos más bajos del país. Este documento describe la historia económica y social de sus habitantes a partir de la época colonial y el contexto institucional que afectó el progreso territorial en los períodos posteriores. Además, evidencia las consecuencias históricas de su modelo económico en el bienestar. De igual manera, describe el avance reciente en indicadores del nivel de vida. Finalmente, plantea una relación entre la pobreza y la maldición de los recursos naturales y explora los mecanismos por los cuales se ejerce una presión contraria al desarrollo. Estos están asociados a la dependencia histórica de la dotación del territorio, la poca diversificación y la falta de competitividad en la economía moderna. **** ABSTRACT: Chocó is among the states with the lowest economic and social indicators in Colombia. This paper describes the economic and social history of its inhabitants. Starting at the colonial period, the analysis allows the comprehension of the productive stages and the institutional scheme that affected the local development trend afterwards. Also, it emphasizes on the historic consequences of its economic model on the individuals’ wellbeing. Likewise, it exposes the recent progress in the standard of living. Last but not least, the study posits a relationship between poverty and the idea of natural resource curse. This is explored through various mechanisms of failure in development. The curse is linked to dependence on natural endowments, little economic diversification and competitiveness in the modern economy.
    Keywords: Historia del Chocó, crecimiento económico, maldición de los recursos naturales, bienestar, History of Chocó, economic growth, natural resource curse, wellbeing
    JEL: I0 N56 Q00 C10
    Date: 2019–10
  29. By: Jilmar Robledo-Caicedo
    Abstract: El Chocó es uno de los departamentos con los indicadores socioeconómicos más bajos del país. Este documento describe la historia económica y social de sus habitantes a partir de la época colonial y el contexto institucional que afectó el progreso territorial en los períodos posteriores. Además, evidencia las consecuencias históricas de su modelo económico en el bienestar. De igual manera, describe el avance reciente en indicadores del nivel de vida. Finalmente, plantea una relación entre la pobreza y la maldición de los recursos naturales y explora los mecanismos por los cuales se ejerce una presión contraria al desarrollo. Estos están asociados a la dependencia histórica de la dotación del territorio, la poca diversificación y la falta de competitividad en la economía moderna. **** ABSTRACT: Chocó is among the states with the lowest economic and social indicators in Colombia. This paper describes the economic and social history of its inhabitants. Starting at the colonial period, the analysis allows the comprehension of the productive stages and the institutional scheme that affected the local development trend afterwards. Also, it emphasizes on the historic consequences of its economic model on the individuals’ wellbeing. Likewise, it exposes the recent progress in the standard of living. Last but not least, the study posits a relationship between poverty and the idea of natural resource curse. This is explored through various mechanisms of failure in development. The curse is linked to dependence on natural endowments, little economic diversification and competitiveness in the modern economy.
    Keywords: Historia del Chocó, crecimiento económico, maldición de los recursos naturales, bienestar, History of Chocó, economic growth, natural resource curse, wellbeing
    JEL: I0 N56 Q00 C10
    Date: 2019–10–07
  30. By: Isnawati Hidayah (Wageningen University and Research); Imam Mukhlis (State University of Malang)
    Abstract: This paper estimates the impact of Dana Desa as a form of the community-driven development program (CDD) on clean water and sanitation improvement in Indonesia. The data used is Indonesian National Socioeconomic Survey (SUSENAS) from Statistics Indonesia (BPS) and the amount of Dana Desa?s money transfer in districts level from Ministry of Village, Development of Disadvantaged Regions And Transmigration (KEMENDESA) in 2015. The baseline data used is SUSENAS in 2014, and SUSENAS in 2016 as the data of post-intervention. The study used is quantitative analysis named difference-in-difference estimation (DID) which compare the outcome before (2014) and after (2016) the program using fixed-effect regressions. The analysis involves 405 districts and 810 observations of rural area. The study aims to assess the impact of Dana Desa on clean water and sanitation. The findings show that Dana Desa gives a positive and significant impact on sanitation access and clean water access in the districts where more people are working in informal sectors. Because they have more time to participate on supporting the program by joining cash-for-work (Padat Karya Tunai). This research is important to evaluate Dana Desa program as the biggest CDD program under President Joko Widodo?s era.
    Keywords: Dana Desa, Community-driven development, difference-in-difference, cash-for-work, community participation, rural area
    JEL: C10 C19 O22
    Date: 2019–10
  31. By: Frondel, Manuel
    Abstract: Jede CO2-Bepreisung bringt höhere Kostenbelastungen für die Verbraucher mit sich, da dieses Instrument ansonsten keine Wirkung entfalten könnte. Ein vielversprechender Ansatz, um dennoch eine breite Akzeptanz für ein solches Klimaschutzinstrument zu gewinnen, könnte darin liegen, die aus einer CO2-Bepreisung resultierenden Einnahmen wieder vollständig an die Verbraucher zurückzugeben und so zu signalisieren, dass es nicht um das Erschließen einer zusätzlichen staatlichen Einnahmequelle, sondern ausschließlich um Klimaschutz geht. Dabei sind notwendigerweise die Anreizwirkungen und die soziale Treffsicherheit der konkreten Kompensationsmaßnahmen gegeneinander abzuwägen. Vor diesem Hintergrund diskutiert dieser Artikel drei Alternativen zur Rückverteilung der zusätzlichen staatlichen Einnahmen: a) eine pauschale Pro-Kopf-Rückerstattung für private Haushalte, b) die Senkung der Stromkosten durch (i) die Steuerfinanzierung der Industrieausnahmen bei der EEG-Umlage und (ii) die Senkung der Stromsteuer und c) gezielte Zuschüsse für besonders betroffene Verbraucher, etwa in Form einer Erhöhung des Wohngelds. Am treffsichersten im Hinblick auf die Kompensation bedürftiger Haushalte wäre die dritte Alternative. Mit den restlichen Mitteln könnte die Stromsteuer reduziert werden, um so insbesondere diejenigen Verbraucher zu entlasten, die kein Wohngeld beantragen, obwohl ihre finanzielle Situation sie dazu berechtigen würde. Wenngleich es gute Gründe sowohl für eine Pro-Kopf-Rückerstattung als auch für eine Stromsteuersenkung gibt, hat eine Stromsteuersenkung mehrere Vorteile gegenüber einer Pro-Kopfpauschale, insbesondere im Hinblick auf die Sektorkopplung und die Transaktionskosten des Rückverteilungsaufwands, welche bei einer Stromsteuersenkung vernachlässigbar wären.
    Keywords: CO2-Steuer,Pro-Kopf-Pauschale,Stromsteuer
    JEL: H23 Q41 Q54
    Date: 2019
  32. By: van Geesbergen, Ad (Tilburg University, School of Economics and Management)
    Abstract: Duurzaamheid staat hoog op de Nederlandse, Europese en mondiale politieke agenda. Bij het analyseren van de effecten van het duurzaamheidsbeleid worden economische theorieën gebruikt. Deze thesis analyseert de rol van levensovertuiging in dergelijke theorieën. Daartoe worden twee economische duurzaamheidsparadigma’s geanalyseerd met behulp van de filosofie van Herman Dooyeweerd: het environmental economics paradigma van Pearce en Turner en het ecological economics paradigma van Daly en Farley. De analyse toont aan dat wetenschap en levensovertuiging in deze paradigma’s verweven zijn en dat het onderkennen van de levensbeschouwelijke component interne spanningen in de paradigma’s vermindert. De studie wil een bijdrage leveren aan het ontsluiten van het wetenschappelijk debat over duurzaamheid naar een zinduidingscontext door een plaats te creëren voor levens- en wereldbeschouwelijke opvattingen in dat debat.
    Date: 2019
  33. By: Wang-Sheng Lee; Ben G. Li
    Abstract: Modern technology empowers human beings to cope with various extreme weather events. Using Chinese historical data, we examine the impact of extreme weather on long-term human health in an environment where individuals have no access to modern technology. By combining life course data on 5,000 Chinese elites with historical weather data over the period 1-1840 AD, we find a significant and robust negative impact of droughts in childhood on the longevity of elites. Quantitatively, encountering three years of droughts in childhood reduces an elite's life span by about two years. A remarkably important channel of the childhood drought effect is the deterioration of economic conditions caused by droughts.
    Keywords: Longevity, Weather, Early-life conditions, Elites, History of China
    JEL: I15 N35
    Date: 2019–09
  34. By: Iana Paliova; Robert McNown; Grant Nülle
    Abstract: Multidimensional assessment of human development is increasingly recognized as playing an important role in assessing well-being. The focus of analysis is on the indicators measuring the three dimensions of Human Development Index (HDI) — standard of living, education and health, and their relationship with public social spending for achieving the 2030 Agenda for Sustainable Development. The study estimates the effects of public social spending on gross national income (GNI) per capita (in PPP in $), expected years of schooling and life expectancy for a sample of 68 countries. The relationship is robust to controlling for a variety of factors and the estimated magnitudes suggest a positive long-run effect of public educational spending on GNI per capita, public educational spending on expected years of schooling, and public health expenditures on life expectancy.
    Date: 2019–09–26
  35. By: Miguel Salazar
    Abstract: El presente artículo tiene por objetivo identificar una problemática en los actuales sistemas de producción, transformación, comercialización y distribución de alimentos, los cuales, actualmente; no responden necesariamente a los principios de seguridad, soberanía alimentaria y al derecho a la alimentación en su conjunto. Por consiguiente, se presenta un enfoque alternativo a los sistemas lineales de producción: la economía circular. Ésta última se describe como una propuesta en sintonía con los acuerdos internacionales y la agenda para los Objetivos de Desarrollo Sostenible 2030, suscritos por Chile. Finalmente, se presenta la situación de las Ferias Libres en Chile, como estudio de caso para la implementación de un sistema de producción sostenible.
    Keywords: alimentación; soberanía Alimentaria; economía circular; sostenibilidad; ferias libres
    Date: 2018–07
  36. By: Mancusi, Maria Luisa; Conti, Chiara; Sanna-Randaccio, Francesca; Sestini, Roberta
    Abstract: This paper investigates the fragmentation of the EU innovation system in the field of renewable energy sources (RES) by estimating the intensity and direction of knowledge spillovers over the years 1985-2010. We modify the original double exponential knowledge diffusion model proposed by Caballero and Jaffe (1993) to provide information on the degree of integration of EU countries’ RES knowledge bases and to assess how citation patterns changed over time. We show that EU RES inventors have increasingly built “on the shoulders of the other EU giants”, intensifying their citations to other member countries and decreasing those to domestic inventors. Furthermore, the EU strengthened its position as source of RES knowledge for the US. Finally, we show that this pattern is peculiar to RES, with other traditional (i.e. fossil-based) energy technologies and other radically new technologies behaving differently. We provide suggestive, but convincing evidence that such decrease in fragmentation around the turn of the century emerged as a result of the EU increased support for RES taking mainly the form of demand-pull policies.
    Keywords: EU integration; renewable energy technologies; knowledge flows
    JEL: O31 Q42 Q55 Q58
    Date: 2018–12
  37. By: A.M. Oosthuizen; R. Inglesi-Lotz; G.A. Thopil
    Abstract: The centrality of electricity to everyday life is indisputable, and the price thereof can have significant implications. Literature is inconclusive over the effect of the renewable energy share in the energy mix on retail electricity price as country-specific regulatory policy has a significant impact on retail electricity prices. The purpose of this paper is to determine the effect of the increasing renewable electricity share on retail electricity prices for 34-OECD countries, considering the change in market structure for 23 EU countries. The results show that the influence of the renewable energy share in the energy mix to retail electricity prices is positive and statistically significant. Increasing renewable sources is inescapable in reaching SDG7, while increased awareness of true price signals should prompt private investment while phasing out support schemes in the long run. A sound regulatory framework is required to account for renewable intermittency as well as effective supply and demand matching. The positive impact on electricity prices should not deter policymakers from promoting renewable energy as the effect is marginal and is expected to decline in coming years, improving energy security. The benefits of employing renewables far outweigh the environmental cost.
    Keywords: renewable energy; electricity prices; OECD; energy dependence
    Date: 2019–09

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