|
on Environmental Economics |
| By: | Peter Kjær Kruse-Andersen; Peter Birch Sørensen |
| Abstract: | We analyze how a country pursuing a unilateral climate policy may contribute to a reduction in global CO2 emissions in a cost-effective way. To do so its system of energy taxes and subsidies must account for leakage of emissions from the domestic to the foreign economy. We focus on leakage occurring via international trade in electricity and via shifts between domestic and foreign production of other goods. The optimal tax-subsidy scheme is based on an intuitive principle: Impose a uniform carbon tax on all additions to global emissions caused by changes in domestic production and consumption of energy, including additions to emissions occurring via shifts in international trade. Emissions from the sector exposed to foreign competition should be taxed at reduced rates to avoid excessive carbon leakage, and a part of the carbon tax on electricity should be levied at the consumer rather than the producer level to ensure taxation of the carbon content of imported electricity. Producers of renewables-based electricity should receive a subsidy to internalize their contribution to the reduction of global emissions. In other sectors emissions should be taxed at a uniform rate corresponding to the marginal social cost of meeting the target for emissions reduction. Simulations calibrated to data for the Danish economy suggest that redesigning energy taxes and subsidies to account for carbon leakage can generate a welfare gain. |
| Keywords: | optimal unilateral climate policy, carbon leakage, optimal energy taxes and subsidies |
| JEL: | H21 H23 Q48 Q54 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7920&r=all |
| By: | Mary O. Agboola (Riyadh, Saudi Arabia); Festus V. Bekun (Northern Cyprus, Turkey) |
| Abstract: | This study empirically investigates the agriculture-induced environmental Kuznets curve (EKC) hypothesis in an agrarian framework. Annual time series data from 1981–2014 was employed using Augmented Dickey–Fuller and the Phillips–Perron (PP) unit root test complemented by the Zivot and Andrews unit root test that accounts for a single structural break to ascertain stationarity properties of variables under consideration. For the cointegration analysis, an autoregressive distributive lag methodology and the recent novel Bayer and Hanck combined cointegration technique is employed. For the direction of causality, the Granger causality test is used as estimation technique. Empirical findings lend support for the long-run equilibrium relationship among the variables under consideration. This study also validates the inverted U-shaped pattern of EKC for the case of Nigeria, affirming that Nigeria remains at the scale-effect stage of its growth trajectory. Further empirical results show that foreign direct investment attraction helps mitigate carbon emissions in Nigeria. Based on these results, several policy prescriptions on the Nigerian energy mix and agricultural operations in response to quality of the environment were suggested for policymakers, stakeholders, and environmental economists that formulate and design environmental regulations and strategies to realise the Goal 7 of sustainable development goals (SDGs). |
| Keywords: | Agriculture ecosystem, Energy consumption, Granger Causality, EKC, Nigeria |
| JEL: | C32 Q1 Q4 Q5 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:aby:wpaper:19/040&r=all |
| By: | Niskanen, Anssi; Saastamoinen, Olli |
| Abstract: | The area of forest plantations in the tropics has increased for many reasons, but not the least as a result of natural forest depletion. Although forest plantations cannot qualitatively substitute the timber grown in natural forests, their importance in global forestry is steadily increasing. At the same time a heated public debate has been growing with them, focusing largely on the perceived negative environmental and social impacts of large-scale industrial plantations. This research report first discusses tropical plantations in global forestry. It emphasizes that tree plantations presently include much a wider range of categories, purposes, species variety and management forms than is commonly perceived. The study states that although industrial forest plantations are mainly established solely for economic reasons, private farm-forestry and governmental plantations more often have a variety of reasons for establishment. These reasons include expectations for positive social and environmental impacts of forest plantations, e.g. increased household security and soil conservation. Nevertheless the environmental and social impacts of plantations deserve much concern and the second part of the study widely reviews environmental and social but also economic impacts of plantations, all of which can be either negative or positive. One of the major problems in developing plantation forestry has been that the profitability analysis of plantations has based only on the economic criteria. Although financial profitability can be regarded as the most important single evaluation criteria for forest plantations in the tropics, the negative and positive social and environmental impacts should also be attempted to be included into the analysis. The focus of the empirical part of the work, therefore, has been to study to what extent it presently is possible to monetize the varying impacts of tree plantations and incorporate them into the "multilevel" profitability analysis. In two case study countries, Thailand and the Philippines, the profitability of industrial, community based and private reforestation was assessed for two most commonly used tree species in reforestation. The profitability assessments were aimed to be carried out at four different levels: based on comparisons between costs and benefits in market prices (financial profitability), economic efficiency prices (economic profitability), economic efficiency prices with the distributional weigh assessments (socio-economic profitability), and finally with including monetary valuation of environmental impacts into the economic analysis (environmental-economic profitability). For the environmental-economic profitability, the study evaluated the economic costs of transpiration and nutrient loss in harvesting, and benefits in erosion control and carbon sequestration. The results of the two case studies indicated that the economic profitability of reforestation is considerably higher than the financial profitability both in Thailand and the Philippines. It also became evident that the environmental-economic profitability was highly dependent on the environmental impact and valuation assessments; in this study, the environmental-economic valuation improved the economic profitability of reforestation. A conclusion derived from the socio-economic analysis was that the return to labour per hectare is very low in mechanized reforestation. The empirical basis of including environmental and social impacts into traditional profitability analysis of tree plantations requires much improvement and the work done still carries a character of methodological experiments. Nevertheless a conclusion is evident: if the social and environmental costs and benefits, evaluated in monetary terms, could properly be included into the solid framework of economic analysis, that would further encourage for environmentally and socially sensitive management practices in plantation forest development. |
| Keywords: | International Development |
| URL: | http://d.repec.org/n?u=RePEc:ags:widerw:295324&r=all |
| By: | Fontes de Meira, Luciana; Phillips, Willard |
| Abstract: | Flooding as an extreme event has become progressively evident in the Caribbean sub-region, as a result of an increased number of intense rainfall events, and storm surges from hurricanes. Such events in turn, have been linked to the impacts of global climate change, which has been shown to be the cause for several specific events including sea-level rise; global temperature rise, ocean warming and acidification, and the melting of glaciers. In the specific instance of the Caribbean subregion, flooding events often result in significant disruptions of economic and social life. This study uses a case-study approach of selected areas in Trinidad and Tobago and Jamaica to investigate the potential economic impacts of recurrent flood events and compare with a potential cost saving benefit of specific flood control interventions. |
| Keywords: | INUNDACIONES, DESASTRES NATURALES, ASPECTOS ECONOMICOS, ANALISIS ECONOMICO, ASPECTOS SOCIALES, ESTUDIOS DE CASOS, FLOODS, NATURAL DISASTERS, ECONOMIC ASPECTS, ECONOMIC ANALYSIS, SOCIAL ASPECTS, CASE STUDIES |
| Date: | 2019–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col033:44877&r=all |
| By: | Carolyn Fischer; Leonie Reins; Dallas Burtraw; David Langlet; Åsa Löfgren; Michael Mehling; Stefan Weishaar; Lars Zetterberg; Harro van Asselt; Kati Kulovesi |
| Abstract: | When it was launched in 2005, the European Union emissions trading system (EU ETS) was projected to have prices of around €30/ton CO2 and to be a cornerstone of the EU’s climate policy. The reality was a cascade of falling prices, a ballooning privately held emissions bank, and a decade of low prices providing inadequate incentive to drive investment in the technologies and innovation necessary to achieve long-term climate goals. The European Commission responded with administrative measures, including postponing the introduction of allowances (backloading) and using a quantity-based criterion for regulating future allowance sales (the market stability reserve); although prices are beginning to recover, it is far from clear whether these measures will adequately support the price into the future. In the meantime, governments have been turning away from carbon pricing and adopting overlapping regulatory measures that reinforce low prices and further undermine the confidence in market-based approaches to addressing climate change. The solution in other carbon markets has been the introduction of a reserve price that would set a minimum price in allowance auctions. Opponents of an auction reserve price in the EU ETS have expressed concern that a minimum auction price would interfere with economic operations in the market or would be tantamount to a tax, which would trigger a decision rule requiring unanimity among EU Member States. This Article reviews the economic and legal arguments for and against an auction reserve price. Our economic analysis concludes that an auction reserve price is necessary to accommodate overlapping policies and for the allowance market to operate efficiently. Our legal analysis concludes that an auction reserve price is not a “provision primarily of a fiscal nature,” nor would it “significantly affect a Member State’s choice between different energy sources.” We describe pathways through which a reserve price could be introduced. |
| Keywords: | emissions trading, auction reserve price, carbon tax, price floor, EU law |
| JEL: | Q54 Q58 K32 K34 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7903&r=all |
| By: | Akintoye V. Adejumo (Obafemi Awolowo University, Ile-Ife, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | Globally, investments in physical and human capital have been identified to foster real economic growth and development in any economy. Investments, which could be domestic or foreign, have been established in the literature as either complements or substitutes in varying scenarios. While domestic investments bring about endogenous growth processes, foreign investment, though may be exogenous to growth, has been identified to bring about productivity and ecological spillovers. In view of these competing–conflicting perspectives, this chapter examines the differential impacts of domestic and foreign investments on green growth in Nigeria during the period 1970-2017. The empirical evidence is based on Auto-regressive Distributed Lag (ARDL) and Granger causality estimates. Also, the study articulates the prospects for growth sustainability via domestic or foreign investments in Nigeria. The results show that domestic investment increases CO2 emissions in the short run while foreign investment decreases CO2 emissions in the long run. When the dataset is decomposed into three sub-samples in the light of cycles of investments within the trend analysis, findings of the third sub-sample (i.e. 2001-2017) reveal that both types of investments decrease CO2 emissions in the long run while only domestic investment has a negative effect on CO2 emissions in the short run. This study therefore concludes that as short-run distortions even out in the long-run, FDI and domestic investments has prospects for sustainable development in Nigeria through green growth. |
| Keywords: | Investments; Productivity; Sustainability; Growth |
| JEL: | E23 F21 F30 O16 O55 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:19/078&r=all |
| By: | Opeyemi Akinyemi (CEPDeR, Covenant University, Ota, Nigeria); Uchenna R. Efobi (CEPDeR, Covenant University, Ota, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon); Evans S. Osabuohien (CEPDeR, Covenant University, Ota, Nigeria) |
| Abstract: | The paper investigates the dynamic relationship between renewable energy usage and trade performance in sub-Saharan Africa (SSA), while considering the conditioning role of corruption control, regulatory quality, and the private sector access to finance. Focusing on 42 SSA countries for the period 2004-2016, and engaging the System generalized method of moments (GMM) technique for its estimation, this study found a negative relationship between renewable energy usage and the indicators of trade performance. However, with corruption control, improved regulatory framework, and better finance for the private sector, there are potentials for a positive net impact of renewable energy usage on manufacturing export. For renewable energy and total trade nexus, we find that improved regulatory framework and better finance for the private sector are important conditioning structures. These findings are significant because they highlight the different important structures of SSA countries that improve the effect of renewable energy use on trade outcomes. For instance, the consideration of the financial, institutional and regulatory frameworks in SSA countries in conditioning the renewable energy-trade nexus stipulates a clear policy pathway for countries in this region as the debate for transition to the use of renewable energy progresses. |
| Keywords: | Environment; Green growth; Trade performance; Pollution; Renewable energy; sub-Saharan Africa |
| JEL: | C5 F1 Q4 Q5 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:aby:wpaper:19/032&r=all |
| By: | Opeyemi Akinyemi (CEPDeR, Covenant University, Ota, Nigeria); Uchenna Efobi (CEPDeR, Covenant University, Ota, Nigeria); Evans Osabuohien (CEPDeR, Covenant University, Ota, Nigeria); Philip Alege (CEPDeR, Covenant University, Ota, Nigeria) |
| Abstract: | This study explores the extent to which regional integration can be a viable tool in driving energy sustainability in the Economic Community of West African States (ECOWAS) sub-region of Africa, and vice versa. It examines the existing opportunities and the attendant challenges for improved firms’ productivity in the sub-region through the appraisal of the ECOWAS West African Power Pool (WAPP). Using three measures of energy sustainability, namely: energy security, energy equity, and environmental sustainability; the study presents the performance of the ECOWAS sub-region in ensuring regional integration for energy sustainability. The findings from the study reveal, inter alia, that there are prospects and benefits for energy integration for sustainable development in the region. Though some progress had been made, there are many challenges. Also, where progress had been made, it is not uniform across the sub-region, though factors such as rising population and political instability could be responsible. It is recommended that the political economy surrounding regional energy integration should be given a priority among the Member States to ensure that there is positive political will for speedy achievement of set goals. Also, investment in human capital to manage the different projects and maintain the facilities cannot be overemphasised. |
| Keywords: | ECOWAS, Energy, Green growth, Sustainable development, Regional Integration |
| JEL: | F15 P28 Q43 R11 R58 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:19/081&r=all |
| By: | Neuhoff, K.; Ritz, R. |
| Abstract: | To achieve the ambitions of the 2015 Paris Climate Agreement, the decarbonization of energy-intensive industrial sectors is becoming increasingly important. This paper focuses on the economics of carbon cost pass-through: the change in product prices induced by carbon pricing. We provide a theoretical framework to understand pass-through at the sectoral level and a constructive review of the empirical evidence from the EU ETS and other jurisdictions. Our analysis is structured around three key drivers: international trade, market structure, and free allowance allocation. We provide a synthesis of our key findings for policymakers and identify gaps in the literature for future research. |
| Keywords: | Carbon pricing, cost pass-through, free allocation, full carbon price internalization, international trade, market structure |
| JEL: | L11 L70 Q54 Q58 |
| Date: | 2019–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1988&r=all |
| By: | Susan Harrison; Shilpa Rumjeet; Xihluke Mabasa; Bernelle Verster (Centre For Bioprocess Engineering Research, University of Cape Town; Professor) |
| Abstract: | In this first working paper, we investigate the ability of fibre crops to grow on mine land which is typically degraded to assist in the rehabilitation of this degraded land, whilst providing a range of raw materials, including fibre crops, for valorisation. This includes transformation of these fibre-based feedstocks into fibre-derived products as economic outputs. Soil and climate data from mining areas in South Africa were compiled and used to identify fibre crops for cultivation. The following crops were selected, based primarily on their temperature tolerance and rainfall requirement: Bambusa balcooa, flax, hemp, kenaf and sisal. While these crops can demonstrate the dual ability of remediating land and producing fibre, the efficacy of this dual system is challenged depending on the level of contamination of the degraded land. Fibre crops can usually tolerate low to moderately polluted soil, but a high level of pollution is detrimental to their growth, with the added risk of metal accumulation in the fibrous biomass, thus increasing the complexity of the processing of these raw materials into products of choice owing to the need to ensure product safety depending on the target markets. To maximise the crops’ growth and fibre production on heavily contaminated land, it is recommended that the land is first restored by physico-chemical or biological means to provide a conducive environment for the fibre crops. It is further recommended that this feasibility study be extended to conduct field experiments on selected sites to further assess the potential and practicality of the proposed approach, while developing a refined inventory of its outputs and challenges. |
| Keywords: | Mine wasteland rehabilitation, bioremediation, fibre-rich plants, fibrous biomass, economic complexity, CeBER, FutureWater |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:ctw:wpaper:copwp201902&r=all |
| By: | Artur Santoalha (TIK Centre, University of Oslo, Norway); Davide Consoli (INGENIO (CSIC-Universitat Politècnica de València), Spain); Fulvio Castellacci (TIK Centre, University of Oslo, Norway) |
| Abstract: | Within the debate on smart specialisation, there is growing attention towards the features that favour or thwart regions’ ability to pursue sustainable development through eco-innovation. Against this backdrop, the present paper proposes an empirical analysis of the role of local capabilities, of related diversification and of their interaction in a panel of 225 European regions (NUTS 2) between 2002 and 2013. The main novelty is the explicit consideration of digital skills, workforce capabilities associated with the use and development of digital technologies. We find that the e-skills endowment is positively correlated with the probability that regions specialise in new green technological domains. Moreover, digital competences positively moderate the effect of technological relatedness on green diversification. Our results highlight the potential of complementarities between two emerging general-purpose technologies, ICTs and eco-innovations, in the transition towards a greener economy. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20191029&r=all |
| By: | Schilirò, Daniele |
| Abstract: | Sustainability has become the emerging goal for countries, companies, and people. Sustainability usually refers to the need to develop models necessary for both human beings and our planet to survive. However, sustainability is not a short-term problem; it is above all a long-term issue, posing intergenerational equity problems. Moreover, sustainability needs efficiency. The efficient use of energy, natural, material, and informational resources is vital for sustainability and sustainable development, which should be the major goal of every country, as established in Rio in 1992, and reaffirmed at Rio+ 20 in 2012. But any strategy aiming at sustainability and efficient use of resources must focus on innovation and technological progress. Consequently, innovation is fundamental to making sustainability possible and improving efficiency. Yet, innovation for sustainability must be environmentally friendly (e.g., green technologies). The principle behind such a strategy is better instead of more. This paper aims at highlighting the key relationship among sustainability, innovation, and efficiency. First, it examines the concept of sustainability, looking at the neoclassical literature on sustainability and its relationship with innovation. Then, it analyzes different theoretical approaches and discusses the policy issues for sustainability where innovation, natural capital, human capital, population, and institutions are fundamental factors. |
| Keywords: | Sustainability; Innovation; Efficiency; Sustainable Development Goals; Sustainable Development Policies |
| JEL: | Q32 Q38 Q50 Q55 Q56 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:96852&r=all |
| By: | Changli He (Coordinated Innovation Center for Computable Modeling in Management Science, Tianjin University of Finance and Economics); Jian Kang (Coordinated Innovation Center for Computable Modeling in Management Science, Tianjin University of Finance and Economics, School of Accounting and Finance, The Hong Kong Polytechnic University); Timo Teräsvirta (Aarhus University and CREATES); Shuhua Zhang (Coordinated Innovation Center for Computable Modeling in Management Science, Tianjin University of Finance and Economics) |
| Abstract: | The purpose of this paper is to study differences in long monthly Asian and European temperature series. The longest available Asian series are those of Beijing and Shanghai, and they are compared with the ones for St Petersburg, Dublin and Uccle that have a rather different climate. The comparison is carried out in the Vector Shifting Mean and Covariance Autoregressive model that the authors have previously used to analysed 20 long European temperature series. This model gives information about mean shifts in these five temperature series as well as (error) correlations between them. The results suggest, among other things, that warming has begun later in China than in Europe, but that the change in the summer months in both Beijing and Shanghai has been quite rapid. |
| Keywords: | Climate change, changing seasonality, long monthly Chinese temperature series, nonlinear model, nonlinear time series, time-varying correlation, time-varying variance, time-varying vector smooth transition autoregression |
| JEL: | C32 C52 Q54 |
| Date: | 2019–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:aah:create:2019-19&r=all |
| By: | Alexander J. M. Kell; Matthew Forshaw; A. Stephen McGough |
| Abstract: | Due to the threat of climate change, a transition from a fossil-fuel based system to one based on zero-carbon is required. However, this is not as simple as instantaneously closing down all fossil fuel energy generation and replacing them with renewable sources -- careful decisions need to be taken to ensure rapid but stable progress. To aid decision makers, we present a new tool, ElecSim, which is an open-sourced agent-based modelling framework used to examine the effect of policy on long-term investment decisions in electricity generation. ElecSim allows non-experts to rapidly prototype new ideas. Different techniques to model long-term electricity decisions are reviewed and used to motivate why agent-based models will become an important strategic tool for policy. We motivate why an open-source toolkit is required for long-term electricity planning. Actual electricity prices are compared with our model and we demonstrate that the use of a Monte-Carlo simulation in the system improves performance by $52.5\%$. Further, using ElecSim we demonstrate the effect of a carbon tax to encourage a low-carbon electricity supply. We show how a {\pounds}40 ($\$50$) per tonne of CO2 emitted would lead to 70% renewable electricity by 2050. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1911.01203&r=all |
| By: | Christoph Böhringer; Knut Einar Rosendahl; Halvor Briseid Storrøsten |
| Abstract: | Policy makers in the EU and elsewhere are concerned that unilateral carbon pricing induces carbon leakage through relocation of emission-intensive and trade-exposed industries to other regions. A common measure to mitigate such leakage is to combine an emission trading system (ETS) with output-based allocation (OBA) of allowances to exposed industries. We first show analytically that in a situation with an ETS combined with OBA, it is optimal to impose a consumption tax on the goods that are entitled to OBA, where the tax is equivalent in value to the OBA-rate. Then, using a multi-region, multi-sector computable general equilibrium (CGE) model calibrated to empirical data, we quantify the welfare gains for the EU to impose such a consumption tax on top of its existing ETS with OBA. We run Monte Carlo simulations to account for uncertain leakage exposure of goods entitled to OBA. The consumption tax increases welfare whether the goods are highly exposed to leakage or not, and can hence be regarded as smart hedging against carbon leakage. |
| Keywords: | carbon leakage, output-based allocation, consumption tax |
| JEL: | D61 F18 H23 Q54 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7915&r=all |
| By: | Clive L. Spash |
| Abstract: | This paper explores core failures of environmental economics as a scientific attempt to understand the ecological crises. The case of environmental pollution is used to show how neoclassical externality theory evolved to establish commitment to, and dogmatic support for, an elitist ethics and liberal market ideology. The public policy response to pollution then recommended is to internalise externalities by correcting market prices based on monetary valuation of the social costs (i.e., damages). Pollution as a market failure is deemed a correctible error of the price system. This is contrast with an alternative theory of pollution based on a classic institutional economic theory of cost-shifting that instead requires a public policy response involving regulation and planning. Reflection on the history of thought related to these two theories of pollution reveals how environmental economics became a marginalised field supporting the neoclassical economic orthodoxy with full commitment to its core paradigms. Why the critical and realist institutional approach had to be suppressed is explained as denying the potential for a revolutionary paradigm shift in economic price theory. |
| Keywords: | Environmental economics; externalities; cost-shifting; price theory; pollution; Arthur C Pigou; K William Kapp; paradigm shift; neoclassical economics; orthodoxy; institutional economics |
| JEL: | Q5 D62 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2019_06&r=all |
| By: | Spash, Clive L. |
| Abstract: | This paper explores core failures of environmental economics as a scientific attempt to understand the ecological crises. The case of environmental pollution is used to show how neoclassical externality theory evolved to establish commitment to, and dogmatic support for, an elitist ethics and liberal market ideology. The public policy response to pollution then recommended is to internalise externalities by correcting market prices based on monetary valuation of the social costs (i.e., damages). Pollution as a market failure is deemed a correctible error of the price system. This is contrast with an alternative theory of pollution based on a classic institutional economic theory of cost-shifting that instead requires a public policy response involving regulation and planning. Reflection on the history of thought related to these two theories of pollution reveals how environmental economics became a marginalised field supporting the neoclassical economic orthodoxy with full commitment to its core paradigms. Why the critical and realist institutional approach had to be suppressed is explained as denying the potential for a revolutionary paradigm shift in economic price theory. |
| Keywords: | environmental economics; externalities; cost-shifting; price theory; pollution; Arthur C Pigou; K William Kapp; paradigm shift; neoclassical economics; orthodoxy; institutional economics |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus009:7276&r=all |
| By: | Pearl, M. Alexander |
| Abstract: | The possibilities offered by moving to a 5G infrastructure are fairly well known-decreased latency, enhanced connectivity options, and greatly improved speeds. These technological advancements will make multi-player gaming easier, decrease download time for HD media, and allow for exciting possibilities regarding development of driverless cars technologies. The possible applications for 5G technology to enhance business and leisure stretch as far as the imagination. However, this paper is not about the technical aspect of 5G technology and infrastructure, nor is this paper about how 5G opens up new economic possibilities in various markets. Instead, this paper focuses on how 5G dramatically enhances our ability to obtain data (especially in real time) which opens up significant opportunities regarding how we use data to inform and improve decision-making at all levels. I argue that the move to 5G infrastructure and technology facilitates our ability to develop and deploy new Internet of Things-based services (IoT) in critical areas-like the management of scarce environmental resources. This paper explores the possible ways in which 5G infrastructure can facilitate the creation of new IoT services that improve our responses to the two greatest interrelated environmental threats of our lifetime: climate change and water scarcity. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse19:205205&r=all |
| By: | Changli He (Tianjin University of Finance and Economics); Jian Kang (Tianjin University of Finance and Economics); Timo Teräsvirta (Aarhus University and CREATES); Shuhua Zhang (Tianjin University of Finance and Economics) |
| Abstract: | We consider a vector version of the Shifting Seasonal Mean Autoregressive model. The model is used for describing dynamic behaviour of and contemporaneous dependence between a number of long monthly temperature series for 20 cities in Europe, extending from the second half of the 18th century until mid-2010s. The results indicate strong warming in the winter months, February excluded, and cooling followed by warming during the summer months. Error variances are mostly constant over time, but for many series there is systematic decrease between 1820 and 1850 in April. Error correlations are considered by selecting two small sets of series and modelling correlations within these sets. Some correlations do change over time, but a large majority remains constant. Not surprisingly, the correlations generally decrease with the distance between cities, but geography also plays a role. |
| Keywords: | Changing seasonality, nonlinear model, vector smooth transition, autoregression |
| JEL: | C32 C52 Q54 |
| Date: | 2019–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:aah:create:2019-18&r=all |
| By: | Böhner, Hanna; Schmidt, Thomas |
| Abstract: | From 2014 to 2018, within the scope of the "Rotmilan – Land zum Leben" joint project, more than 880 farms were given advice on the implementation of red-kite-friendly agriculture in eight regions of Germany. The main objective was to improve food availability for red kites on agricul-tural land. During the entire project period, it was possible to increase the area where measures were applied, from approx. 1,000 ha to more than 13,000 ha/year. Following an initial evaluation by Schmidt und Breitsameter (2015) on the advice given to farmers, the consultants and farm representatives – including those that did not receive any advice – were interviewed on their experiences and perspectives. The focus was on the motivation to participate in the counselling and its effects, as well as the expectations for nature conservation counselling. In summary, the following six core statements can be derived from the results: (1) Suitable funding programmes are a prerequisite for target-oriented implementation of nature conservation measures on agricultural land. (2) Advisory services promote the implementation of measures by attracting new farms to partic-ipate and increasing the amount of land involved. (3) Long-term and constant advisory services offered enable the continuous acquisition of new farms and the development of trust and cooperation. (4) Practical support in the implementation of measures, follow-up advice and the communica-tion of successful measures by the advisory institution are important components of the advisory activity. (5) Region-specific features of the advisory services are derived from the available funding measures, the characteristics of the advisory institution and advisors as well as the agricultural structure. (6) Advisory support promotes the quality of the implemented measures, thus the success of the measures cannot be measured solely on the basis of the area covered by the measures. The study reveals that advising farmers is an important instrument for the implementation of nature conservation measures. Advice transfers nature conservation expertise into land man-agement and sensitises the actors. Moreover, it offers support during the implementation of measures. The basics requirements for an effective advisory service, however, are sufficiently financed means for measures, adapted to both region-specific biodiversity targets and agricultur-al requirements. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2019–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:jhimwp:295201&r=all |
| By: | Zhu, Tong; Curtis, John; Clancy, Matthew |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb201918&r=all |
| By: | Cicatiello, Lorenzo; Ercolano, Salvatore; Gaeta, Giuseppe Lucio; Parenti, Benedetta |
| Abstract: | Natural disasters represent a challenge for policy-makers both for the immediate aftermath and for the mid- and long-term consequences. Knowing the reaction of the struck communities is an invaluable help for planning and implementing informed policies. Embracing such a perspective, this paper aims to provide empirical evidence about the effect that natural disasters exert on the marriage rates reported by the struck communities. The analysis is focused on L’Aquila earthquake that occurred in 2009 and stroke a number of municipalities in the Abruzzo Region in Southern Italy. We exploit a natural experiment setting via a difference-in-differences design, using highly disaggregate data (municipality level) in order to assess whether the shock caused by the L’Aquila earthquake in 2009 resulted in a substantial variation of the marriage rate in the municipalities hit more severely by the natural disaster. We find that the municipalities that payed a higher toll show an increasing higher marriage rate with respect to those that did not experienced major damages. |
| Keywords: | natural disasters, marriage rates, difference-in-differences |
| JEL: | J12 J13 Q54 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:96712&r=all |
| By: | Hanri Mostert; Alexander Paterson; Louie van Schalkwyk (Mineral Law in Africa, University of Cape Town; Professor) |
| Abstract: | The assessment of the applicable legislation and policies concluded that the current legal framework for environmental rehabilitation of mine wasteland, the regulation of land use, the contractual basis of relationships, and the protection of communities is largely reactive. It is a framework of sticks, rather than carrots. In legislation dealing with mine land rehabilitation, this is probably to be expected. However, our legal system has not previously catered for innovative methods of mine land rehabilitation such as the one being explored by the FFI. |
| Keywords: | Legal frameworks, mine wasteland rehabilitation, bioremediation, mineral law in africa, fibrous plants |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:ctw:wpaper:copwp201901&r=all |
| By: | Abhinash Borah (Department of Economics, Ashoka University); Christopher Kops (Heidelberg University) |
| Abstract: | We address the oft-repeated criticism that the demands which the rational choice approach makes on the knowledge and cognition of a decision maker (DM) are way beyond the capabilities of typical human intelligence. Our key ï¬ nding is that it may be possible to arrive at this ideal of rationality by means of cognitively less demanding, heuristic-based ecological reasoning that draws on information about others’ choices in the DM’s environment. Formally, we propose a choice procedure under which, in any choice problem, the DM, ï¬ rst, uses this information to shortlist a set of alternatives. The DM does this shortlisting by a mental process of categorization whereby she draws similarities with certain societal members—the ingroup—and distinctions from others—the outgroup—and considers those alternatives that are similar (dissimilar) to ingroup (outgroup) members’ choices. Then, she chooses from this shortlisted set by applying her preferences, which may be incomplete owing to limitations of knowledge. We show that if a certain homophily condition connecting the DM’s preferences with her ingroup-outgroup categorization holds, then the procedure never leads the DM to making bad choices. If, in addition, a certain shortlisting consistency condition holds vis-a-vis non-comparable alternatives under the DM’s preferences, then the procedure results in rational choices. |
| Keywords: | Rational choice, ecological rationality, ingroup-outgroup categorization, fast and frugal heuristics, homophily |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:ash:wpaper:07&r=all |
| By: | Amanda Driver; Fulufhelo Mukhadi; Emily A. Botts (South African National Biodiversity Institute (SANBI); Senior Biodiversity Policy Advisor) |
| Abstract: | In the context of high and persistent unemployment in South Africa, this paper explores the extent to which the country’s biodiversity assets, which are exceptional in global terms, contribute to providing jobs. A conceptual framework for defining biodiversity-related employment is presented. Using a methodology that draws on a combination of three different data sources (administrative data, national survey data, and existing estimates for particular biodiversity-related sectors or sub-sectors), an initial estimate was developed of 388 000 direct jobs related to biodiversity in 2014, representing 2.5% of national employment. The estimate was subsequently updated to 418 000 biodiversity-related jobs in 2017, representing 2.6% of national employment. Of these 418 000 jobs, 17% (72 000) were jobs involved in conserving biodiversity, and 83% (346 000) were jobs that depend on using biodiversity, including both non-consumptive and extractive use. The number of jobs that depend on using biodiversity is likely to be an underestimate, as data was available only for some biodiversity-related sectors or sub-sectors. An important finding is that for every job dedicated to conserving or managing South Africa’s biodiversity assets and ecological infrastructure, approximately five jobs depend on utilising biodiversity. The implication is that current efforts to conserve and manage biodiversity should be seen not simply as an end in themselves or a cost to the economy but as an investment in a resource that supports wider economic activity and employment. The results suggest strong potential for biodiversity assets to support long-term inclusive growth and employment outside major urban centres, with further work needed to quantify this potential and to determine how best it can be enabled. This paper was developed as part of the REDI 3x3 Research Project on Employment, Income Distribution and Inclusive Growth, within Focus Area 3 on Inclusive Growth. The research was undertaken by the South African National Biodiversity Institute (SANBI) with guidance from the Development Policy Research Unit (DPRU). |
| Keywords: | Biodiversity, Employment, unemployment, jobs, South Africa |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:ctw:wpaper:201902&r=all |
| By: | Lin, Chen (The University of Hong Kong - Faculty of Business and Economics); Schmid, Thomas (The University of Hong Kong - Faculty of Business and Economics); Weisbach, Michael S. (Ohio State University (OSU) - Department of Finance; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)) |
| Abstract: | Extreme temperatures lead to large fluctuations in electricity demand and wholesale prices of electricity, which in turn affects the optimal production process for firms to use. Using a large international sample of planned power plant projects, we measure the way that electric utilities’ investment decisions depend on the frequency of extreme temperatures. We find that they invest more in regions with more extreme temperatures. These investments are mostly in flexible gas and oil-fired power plants that can easily adjust their output to improve their operating flexibility. Our results suggest that climate change is becoming a meaningful factor affecting firms’ behavior. |
| JEL: | G30 G31 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:ohidic:2019-26&r=all |
| By: | Tokunaga, Masahiro |
| Abstract: | In Central and Eastern Europe (CEE) after the fall of communism, it has been an important agenda to construct an effective policy framework with the aim of solving environmental issues (environmental reform), along with the transition to market economies (economic reform) and the democratization of politics (political reform). Taking that fact into consideration, this paper attempts to draw a big picture of the tower of research through a systematic review of the relevant literature that has discussed the issue of environmental reform in CEE countries. It reveals that research specifications such as targeted regions/countries, research topics, authors’ affiliations and disciplines, and academic fields of the literature have an impact on the overall evaluation of environmental reform by each researcher. Also, it suggests that authors’ understanding of market principles and their subjective appraisal of performance of the European Union as a leading supporter of CEE countries have a significant influence on their perceptions of effectiveness of CEE’s environmental policies. |
| Keywords: | Central and Eastern Europe (CEE), environmental reform, regime change, EU accession, systematic review |
| JEL: | O13 O57 P28 P52 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2019-10&r=all |