|
on Environmental Economics |
|
Issue of 2020‒08‒17
sixty-two papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Lafforgue, Gilles; Lorang, Etienne |
| Abstract: | We study the recycling opportunity of an industrial sector constrained by climate, resource and waste capacities. A final good is produced from virgin and recycled materials, and its consumption releases both waste and GHG emissions. We identify the optimal trajectories of resources use, mainly depending on the emission rates of each resource and on the relative scarcity of their stocks. Recycling is sometimes an opportunity to reduce the impact of consumption on primary resources and waste but can still affect the environment. We characterize the optimal recycling strategy and we show that, in some cases, the time pace of the recycling rate is inverted U-shaped. Last, we discuss the policy implications of our model by identifying and analyzing the set of optimal tax-subsidy schemes. |
| Keywords: | Recycling; Resource extraction; Waste; GHG emissions. |
| JEL: | Q32 Q53 Q54 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:124456&r=all |
| By: | Sandrine Brèteau-Amores; Rasoul Yousefpour; Marc Hanewinkel; Mathieu Fortin |
| Abstract: | Forests provide ecosystem services such as timber production and carbon sequestration. However, forests are sensitive to climate change, and financial and amenity losses are expected for forest owners and society, respectively. The forests in the Grand-Est region, France, are dominated by European beech, for which a decline is anticipated due to repeated drought events induced by climate change. These forest ecosystems are also threatened by windstorm events. Beech forests need to adapt and diversification can decrease drought and windstorm risks. In this context, the objective of the paper was to compare different forest adaptation strategies from an economic perspective with the objective of reducing drought- and windstorm-induced risks of dieback. For this purpose, we studied two types of diversification that we analysed separately and jointly: Mixing beech with oak and diversifying stand structure (i.e. from an even-aged to an uneven-aged forest). We also considered two types of loss (financial, and in terms of carbon sequestration) under different recurrences of drought and windstorm risks. We combined a forest growth simulator with a forest economic approach through the computation of land expectation value (LEV). Maximizing the LEV criterion made it possible to identify the best adaptation strategies in economic terms. The results show that diversification increases timber production and LEV, but reduces carbon storage. The two risks as well as the adaptation strategies show some synergies. Finally, trade-offs between the financial balance and the carbon balance (i.e. adaptation vs. mitigation) are possible. |
| Keywords: | Drought; Windstorm; Adaptation; Climate change; Mixture; Economics; Multi-risks; Carbon. |
| JEL: | Q23 Q54 Q57 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2020-31&r=all |
| By: | Rick van der Ploeg |
| Abstract: | The social rate of discount is a crucial driver of the social cost of carbon (SCC), i.e. the expected present discounted value of marginal damages resulting from emitting one ton of carbon today. Policy makers should set carbon prices to the SCC using a carbon tax or a competitive permits market. The social discount rate is lower and the SCC higher if policy makers are more patient and if future generations are less affluent and policy makers care about intergenerational inequality. Uncertainty about the future rate of growth of the economy and emissions and the risk of macroeconomic disasters (tail risks) also depress the social discount rate and boost the SCC provided intergenerational inequality aversion is high. Various reasons (e.g. autocorrelation in the economic growth rate or the idea that a decreasing certainty-equivalent discount rate results from a discount rate with a distribution that is constant over time) are discussed for why the social discount rate is likely to decline over time. A declining social discount rate also emerges if account is taken from the relative price effects resulting from different growth rates for ecosystem services and of labour in efficiency units. The market-based asset pricing approach to carbon pricing is contrasted with a more ethical approach to policy making. Some suggestions for further research are offered. |
| Keywords: | cost-benefit analysis, climate policy, carbon pricing, social discount rate, term structure, Keynes-Ramsey rule, risk and uncertainty, disasters, expert opinions |
| JEL: | D81 D90 G12 H43 Q51 Q54 Q58 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8441&r=all |
| By: | Sterenn Lucas; Louis-Georges Soler; Xavier Irz; Didier Gascuel; Joël Aubin |
| Abstract: | In the context of climate change, the diet is a key driver of environmental impacts. Previous research emphasized the environmental benefit to increase fisheries and aquaculture products (FAPs) consumption in European diets. However, increasing the share of FAPs could lead to a transfer of environmental damage from earth to sea. It is thus important to evaluate the environmental impacts of FAPs considering marine eco-systems and global scale. We constructed an original database to map the origin of FAPs, and we matched it with environmental indicators. The exploration of the database investigates the environmental impact of FAPs in regards of French consumption. We found some heterogeneity across species, meaning that the pattern of consumption across the FAPs does influence the environmental footprint. Furthermore, the choice of methods of production largely affects the global impact. Thus, relevant public policy could decrease the environmental impact of FAPs despite a standstill level of consumption. |
| Keywords: | environmental impact, climate change, LCA, seafood consumption |
| JEL: | Q22 Q54 D10 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:rae:wpaper:202007&r=all |
| By: | Anais Lamour (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 - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Subervie Julie (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We use primary data from a choice experiment carried out with 207 coffee farmers in Costa Rica, in order to study their willingness to adopt various agroforestry systems under various types of support. We test four adaptation strategies that are based on resistant coffee varieties introduction, timber tree species production and/or shade tree density increase. Revealed preferences suggest that most of the respondents do value the introduction of resistant varieties. They are willing to plant twice the number of trees in their plantations when these are combined with resistant varieties. Conversely, all agroforestry systems requiring timber trees to be planted are chosen significantly less often and on average, their adoption would require a compensation scheme. We moreover find that a large majority of respondents is very responsive to non-monetary rewards, namely a subsidized credit, a free trial of resistant coffee seedlings or technical assistance. We conclude that each of these incentivescould be used as an incentive to induce land use changes |
| Keywords: | Payment for Environmental Services,Non-monetary Incentives,Climate change,Choice Experiment,Coffee,Costa Rica |
| Date: | 2020–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-02892085&r=all |
| By: | Shahbaz, Muhammad; Abosedra, Salah; Kumar, Mantu; Abbas, Qaisar |
| Abstract: | This paper explores the relationship between transportation infrastructure and CO2 emissions by incorporating business cycle, transportation energy consumption and oil prices in carbon emissions function for the U.S. economy using monthly data for the period of 2000M1-2017M12. We have applied ADF unit root test accommodating structural breaks in the series developed by Kim and Perron (2009). We have applied bounds testing approach to cointegration developed by Pesaran et al. (2001) to examine cointegration between the variables. The empirical results confirm the existence of cointegration relationship between the variables. Moreover, transportation infrastructure decreases carbon emissions. Business cycle impedes environmental quality by increasing carbon emissions. Transportation energy consumption is positively linked with transportation carbon emissions but oil prices decrease it. Inverted U-shaped Transportation Kuznets curve (TKC) is found between transportation infrastructure and carbon emissions. The relationship between business cycle and CO2 emissions is an inverted-U shaped validating the environmental Kuznets curve (EKC). The causality analysis reveals the presence of feedback effect between transportation infrastructure and CO2 emissions. Similarly, economic activity causes carbon emissions and in resulting, carbon emissions cause business cycle i.e. bidirectional causality. These empirical findings show new policy directions for using transportation infrastructure as economic tool to achieve growth along with sustainable environment. |
| Keywords: | Transport Infrastructure, Business Cycle, Transport Energy, CO2 Emissions |
| JEL: | Q5 |
| Date: | 2020–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:102167&r=all |
| By: | Ramadorai, Tarun; Zeni, Federica |
| Abstract: | We use data from the Carbon Disclosure project (CDP) to measure firms' beliefs about climate regulation, their plans for future abatement, and their current actions on mitigating carbon emissions. These measures vary both across firms and time in a manner that is especially pronounced around the Paris climate change agreement announcement. A simple dynamic model of carbon abatement with a firm exposed to a certain future carbon levy, facing a trade-off between emissions reduction and capital growth, and convex emissions abatement adjustment costs cannot explain the data. A more complex two-firm dynamic model with both information asymmetry across firms and reputational concerns fits the data far better. Our findings imply that firms' abatement actions depend greatly on their beliefs about climate regulation, and that both informational frictions and reputational concerns can amplify responses to climate regulation, increasing its effectiveness. |
| Keywords: | abatement; Carbon Emissions; climate change; climate regulation; Dynamic Models; information asymmetry; reputation |
| JEL: | G31 G38 Q52 Q54 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14155&r=all |
| By: | Rosalina Palanca-Tan (Economics Department, Ateneo de Manila University) |
| Abstract: | Koronadal households benefit from Lake Sebu’s natural and cultural resources in terms of recreation, tourism income generation, supply of high quality tilapia, agricultural products supply, potential hydroelectric power source, cultural heritage, biodiversity, and climate change mitigation. These benefits encompass both use and non-use values which are integrated in a single estimate using the contingent valuation method. In the study, Koronadal households are asked for their willingness to pay (WTP) or contribute to natural and cultural resources rehabilitation and preservation efforts in the form of a lump-sum monthly amount collected together with their electricity bill payment. Household’s mean WTP is estimated to be between PhP52.42 (US$1.04) and PhP64.39 (US$1.27) per month. Multiplying the annualized WTP by the number of households in Koronadal, total potential annual contributions from Koronadal City would range from PhP29,244,533 (US$577,841) to PhP35,863,170 (US$708,618). Even just a fraction of this potential collection can support essential conservation efforts in Lake Sebu which up to the present have been inadequate due to financial constraints. Moreover, results of the regression analysis reveals that households are more likely to support the preservation program if the amount of required contribution is smaller and household income is higher. Older and more educated respondents are likewise more likely to support the program. |
| Keywords: | benefit valuation, contingent valuation method, cultural heritage, natural environment, willingness to pay |
| JEL: | Q26 Q51 Q56 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:agy:dpaper:202010&r=all |
| By: | Petra Zsuzsa Lévay; Josefine Vanhille; Tim Goedemé; Gerlinde Verbist |
| Abstract: | Understanding demand-side drivers and distribution of greenhouse gas emissions is key to design fair and efficient environmental policies. In this study, we quantify the relationship between the carbon footprint of consumption and socio-economic characteristics of Belgian households. We use a dataset that combines household-level consumption data with an environmentally extended input-output model which quantifies the greenhouse gas emissions embedded in the supply chain of goods and services that households consume. Similar to studies in other countries, we find that emission intensity (emissions per euro of expenditures) of households at the lower part of the income distribution is higher than that of richer households because poorer households spend higher share of their expenditures on emissions intensive products, especially on energy and housing. We also find that living standards and household size are the most important determinants of household consumption-related emissions. The expenditure-elasticity of household emissions is less than unity, i.e. emissions increase with expenditures, but in a less than proportionate way. However, the elasticity changes when emissions from different consumption domains are analyzed. It is lowest for energy and housing and highest for services. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:hdl:wpaper:2005&r=all |
| By: | Gabriela Demarchi (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Subervie Julie (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thibault Catry (UMR 228 Espace-Dev, Espace pour le développement - IRD - Institut de Recherche pour le Développement - UPVD - Université de Perpignan Via Domitia - AU - Avignon Université - UR - Université de La Réunion - UM - Université de Montpellier - UG - Université de Guyane - UA - Université des Antilles); Isabelle Tritsch (UMR 228 Espace-Dev, Espace pour le développement - IRD - Institut de Recherche pour le Développement - UPVD - Université de Perpignan Via Domitia - AU - Avignon Université - UR - Université de La Réunion - UM - Université de Montpellier - UG - Université de Guyane - UA - Université des Antilles) |
| Abstract: | The perpetuity and improvement of REDD+ projects for curbing deforestation require rigorous impact evaluations of the effectiveness of existing on-the-ground interventions. Today, a number of global and regional remote sensing (RS) products are publicly available for detecting changes in forest cover worldwide. In this study, we assess the suitability of using these readily available products to evaluate the impact of REDD+ local projects targeting smallholders (owning plots of less than 100 ha) in the Brazilian Amazon. Firstly, we reconstruct forest loss for the period between 2008 and 2017 of 17,066 farms located in the Transamazonian region, using data derived from two landcover change datasets: Global Forest Change (GFC) and Amazon Deforestation Monitoring Project (PRODES). Secondly, we evaluate the consistency between the two sources of data. Lastly, we estimate the long-term impact of a REDDÅ project using both RS products. Results suggest that the deforestation estimates from the two data-sets are statistically different and that GFC detects systematically higher rates of deforestation than PRODES. However, we estimate that an average of about 2 ha of forest were saved on each participating farm during the first years of the program regardless the source of data. These results suggest that these products may not be suitable for accurately monitoring and measuring deforestation at the farm-level, but they can be a useful source of data on impact assessment of forest conservation projects. |
| Keywords: | remote sensing products,deforestation,impact evaluation,Brazilian Amazon.,REDD+ |
| Date: | 2020–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02898225&r=all |
| By: | Gabriela Demarchi (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Subervie Julie (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thibault Catry (UMR 228 Espace-Dev, Espace pour le développement - IRD - Institut de Recherche pour le Développement - UPVD - Université de Perpignan Via Domitia - AU - Avignon Université - UR - Université de La Réunion - UM - Université de Montpellier - UG - Université de Guyane - UA - Université des Antilles); Isabelle Tritsch (UMR 228 Espace-Dev, Espace pour le développement - IRD - Institut de Recherche pour le Développement - UPVD - Université de Perpignan Via Domitia - AU - Avignon Université - UR - Université de La Réunion - UM - Université de Montpellier - UG - Université de Guyane - UA - Université des Antilles) |
| Abstract: | The perpetuity and improvement of REDD+ projects for curbing deforestation require rigorous impact evaluations of the effectiveness of existing on-the-ground interventions. Today, a number of global and regional remote sensing (RS) products are publicly available for detecting changes in forest cover worldwide. In this study, we assess the suitability of using these readily available products to evaluate the impact of REDD+ local projects targeting smallholders (owning plots of less than 100 ha) in the Brazilian Amazon. Firstly, we reconstruct forest loss for the period between 2008 and 2017 of 17,066 farms located in the Transamazonian region, using data derived from two landcover change datasets: Global Forest Change (GFC) and Amazon Deforestation Monitoring Project (PRODES). Secondly, we evaluate the consistency between the two sources of data. Lastly, we estimate the long-term impact of a REDDÅ project using both RS products. Results suggest that the deforestation estimates from the two data-sets are statistically different and that GFC detects systematically higher rates of deforestation than PRODES. However, we estimate that an average of about 2 ha of forest were saved on each participating farm during the first years of the program regardless the source of data. These results suggest that these products may not be suitable for accurately monitoring and measuring deforestation at the farm-level, but they can be a useful source of data on impact assessment of forest conservation projects. |
| Keywords: | remote sensing products,deforestation,impact evaluation,Brazilian Amazon.,REDD+ |
| Date: | 2020–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-02898225&r=all |
| By: | Rodríguez-Cruz, Luis Alexis; Niles, Meredith |
| Abstract: | Strengthening farmers’ adaptive capacity is important for decreasing their vulnerability to natural hazards in this changing climate, and for safeguarding local food systems. One key step in strengthening adaptive capacity is understanding the relationship between farmers’ experience with natural hazards and their perceptions of climate change, and its role in farmers’ decision making around climate change adaptation. Here we explore Puerto Rican farmers’ psychological distance of climate change after experiencing category 4 Hurricane Maria, in order to intersect the roles of experience, perceptions, and motivation for farmers’ decision-making around climate change adaptation. Farmers throughout Puerto Rico were surveyed by Extension Services’ agents (n = 405, 87% response rate) in 2018, eight months after Hurricane Maria. A structural equation model was used to evaluate how reported experience with past events and direct damages by Hurricane Maria related to farmers’ psychological distance of climate change, and the association of these variables to farmers’ motivation to adapt to climate change. We found that farmers psychological distance of climate change is both near and far, since they show a broad awareness to climate change’s impacts both locally and globally in different dimensions (temporal, geographical, and social). Reported experience and direct damages by the hurricane were not linked to their psychological distance of climate change, and these did not relate to their motivation to adapt. These results suggest that using extreme events as a driver for climate belief and action may no longer be relevant, especially in a context where there is a high level of climate change belief and continued threat of extreme events. Thus, broadening analysis beyond individual perceptions as drivers of climate adaptation to how structural dynamics are linked to adaptive capacity could provide better understanding. This study is among the first to study the role of climate change experience and perceptions on farmers’ climate change adaption after an extreme weather event in an island-archipelago setting. |
| Date: | 2020–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:e27k4&r=all |
| By: | Böhm, Hannes |
| Abstract: | I show that rising temperatures can detrimentally affect the sovereign creditworthiness of emerging economies. To this end, I collect long-term monthly temperature data of 54 emerging countries. I calculate a country's temperature deviation from its historical average, which approximates present day climate change trends. Running regressions from 1994m1-2018m12, I find that higher temperature anomalies lower sovereign bond performances (i.e. increase sovereign risk) significantly for countries that are warmer on average and have lower seasonality. The estimated magnitudes suggest that affected countries likely face significant increases in their sovereign borrowing costs if temperatures continue to rise due to climate change. However, results indicate that stronger institutions can make a country more resilient towards temperature shocks, which holds independent of a country's climate. |
| Keywords: | climate risks,sovereign creditworthiness,international finance,emerging market economies,institutions |
| JEL: | G15 H63 O13 Q54 Q56 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:82020&r=all |
| By: | Wheatcroft, Edward; Wynn, Henry P.; Lygnerud, Kristina; Bonvicini, Giorgio; Bonvicini, Giorgio; Lenote, Daniela |
| Abstract: | Urban waste heat recovery, in which low temperature heat from urban sources is recovered for use in a district heat network, has a great deal of potential in helping to achieve 2050 climate goals. For example, heat from data centres, metro systems, public sector buildings and waste water treatment plants could be used to supply 10% of Europe’s heat demand. Despite this, at present, urban waste heat recovery is not widespread and is an immature technology. Based on interviews with urban waste heat stakeholders, investors interested in green investments, and experience from demonstrator projects, a number of recommendations are made. It is suggested that policy raising awareness of waste heat recovery, encouraging investment and creating a legal framework should be implemented. It is also recommended that pilot projects should be promoted to help demonstrate technical and economic feasibility. A pilot credit facility is suggested aimed at bridging the gap between potential investors and heat recovery projects. |
| Keywords: | district heating and cooling; urban waste heat recovery; data centres; metro systems; low temperature; excess heat |
| JEL: | R14 J01 |
| Date: | 2020–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:104136&r=all |
| By: | Marshall Burke; Anne Driscoll; Jenny Xue; Sam Heft-Neal; Jennifer Burney; Michael Wara |
| Abstract: | Recent dramatic and deadly increases in global wildfire activity have increased attention on the causes of wildfires, their consequences, and how risk from fire might be mitigated. Here we bring together data on the changing risk and societal burden of wildfire in the US. We estimate that nearly 50 million homes are currently in the wildland-urban interface in the US, a number increasing by 1 million houses every 3 years. Using a statistical model that links satellite-based fire and smoke data to pollution monitoring stations, we estimate that wildfires have accounted for up to 25% of PM 2.5 in recent years across the US, and up to half in some Western regions. We then show that ambient exposure to smoke-based PM 2.5 does not follow traditional socioeconomic exposure gradients. Finally, using stylized scenarios, we show that fuels management interventions have large but uncertain impacts on health outcomes, and that future health impacts from climate-change-induced wildfire smoke could approach projected overall increases in temperature-related mortality from climate change. We draw lessons for research and policy. |
| JEL: | I14 Q53 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27423&r=all |
| By: | Asongu, Simplice; Agboola, Mary; Alola, Andrew; Bekun, Festus |
| Abstract: | While most African economies are primarily sandwiched with the seemingly unsurmountable task of attaining consistent economic growth and unhindered energy supply, the enormous threat posed by environmental degradation has further complicated the economic and environmental sustainability drive. In this context, the present study examines the effect of economic growth, urbanization, electricity consumption, fossil fuel energy consumption, and total natural resources rent on pollutant emissions in Africa over the period 1980-2014. By employing selected African countries, the current study relies on the Kao and Pedroni cointegration tests to cointegration analysis, the Pesaran’s Panel Pooled Mean Group-Autoregressive distributive lag methodology (ARDL-PMG) for long run regression while Dumitrescu and Hurlin (2012) is employed for the detection of causality direction among the outlined variables. The study traces long run equilibrium relationships b-etween examined indicators. The ARDL-PMG results suggest a statistical positive relationship between pollutant emissions and urbanization, electricity consumption and non-renewable energy consumption. Dumitrescu and Hurlin (2012) Granger causality test lends support to the long-run regression results. Bi-directional causality is observed between pollutant emissions, electricity consumption, economic growth and pollutant emissions while a unidirectional causality is apparent between total natural resources rent and pollutant emissions. Based on these results, several policy implications for the African continent were suggested. (a) The need for a paradigm shift from fossil fuel sources to renewables is encouraged in the region (b) The need to embrace carbon storage and capturing techniques to decouple pollutant emissions from economic growth on the continent’s growth trajectory. Further policy insights are elucidated. |
| Keywords: | non- renewable energy consumption; electricity consumption; economic growth; panel econometrics; Africa |
| JEL: | C32 Q40 Q50 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:102056&r=all |
| By: | Domon, Shohei; Hirota, Mayu; Kono, Tatsuhito; Managi, Shunsuke; Matsuki, Yusuke |
| Abstract: | Greenhouse gas emissions caused by urban residents' energy consumption arise from the 1) transportation and 2) housing sectors. This energy consumption depends on the population distribution of the city. This study quantitatively examines the effectiveness of congestion tolls, carbon tax, and land use regulations on the social welfare and the reduction of urban CO2 emissions. Results show that, among the three policies, the congestion toll can increase the social welfare by about 99% of the increase in the first-best scenario, which shows the best among the three policies, and can reduce the amount of total CO2 emissions by about 22%, which is almost the highest level among the three policies. These results suggest that congestion tolling, which is primarily the Pigovian tax for congestion, does not only internalize congestion externalities but also reduce CO2 emissions rather effectively through downsizing transportation distances and housing sizes with the spatial change in population density in the city. |
| Keywords: | Carbon tax; Congestion tolls; CO2 emissions; Land use regulations |
| JEL: | Q5 Q54 R0 R00 |
| Date: | 2020–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:102220&r=all |
| By: | Cloete, Schalk; Ruhnau, Oliver; Hirth, Lion |
| Abstract: | The hydrogen economy is currently experiencing a surge in attention, partly due to the possibility of absorbing wind and solar energy production peaks through electrolysis. A fundamental challenge with this approach is low utilization rates of various parts of the integrated electricity-hydrogen system. To assess the importance of capacity utilization, this paper introduces a novel stylized numerical energy system model incorporating the major elements of electricity and hydrogen generation, transmission and storage, including both "green" hydrogen from electrolysis and "blue" hydrogen from natural gas reforming with CO2 capture and storage (CCS). Balancing renewables with electrolysis results in low utilization of electrolyzers, hydrogen pipelines and storage infrastructure, or electricity transmission networks, depending on whether electrolyzers are co-located with wind farms or demand centers. Blue hydrogen scenarios face similar constraints. High renewable shares impose low utilization rates of CO2 capture, transport and storage infrastructure for conventional CCS, and of hydrogen transmission and storage infrastructure for a novel process (gas switching reforming) that enables flexible power and hydrogen production. In conclusion, both green and blue hydrogen can facilitate the integration of wind and solar energy, but the cost related to low capacity utilization erodes much of the expected economic benefit. |
| Keywords: | Hydrogen economy,Energy system model,Decarbonization,CO2 capture and storage,Variable renewable energy |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:222474&r=all |
| By: | Marwil J. Dávila-Fernández; Alessia Cafferata; Serena Sordi |
| Abstract: | Climate change is real. However, contrary to the near global consensus among the scientific community, international public opinion has moved in recent decades from increasing awareness to polarisation within and between nations. To the best of our knowledge, a comprehensive assessment of these trajectories formally addressing the interaction between agents and the (macro)economy is still missing. It is our purpose to ll such a gap in the literature by developing an agent-based model that allows for feedback effects between sentiments, environmental regulation and macroeconomic outcomes in an open economy set-up. Furthermore, we estimate the so-called green-Thirlwall law for a sample of 12 OECD countries between 1970 and 2014. Our findings confirm that Nordic countries have taken the lead in implementing green solutions. In terms of policy implications, we show that scientific literacy is a necessary but not sufficient condition for achieving a green-growth equilibrium. Policy makers should increase the public's response to Green House Gas emissions taking into account the fact that a successful communication strategy is conditional upon audience motivation |
| Keywords: | Climate change, green-growth, Thirlwall's law, Porter's hypothesis, motivated reasoning. |
| JEL: | O11 O44 Q01 Q56 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:831&r=all |
| By: | Nicoletta Batini |
| Abstract: | France is the top agricultural producer in the European Union (EU), and agriculture plays a prominent role in the country’s foreign trade and intermediate exchanges. Reflecting production volumes and methods, the sector, however, also generates significant negative environmental and public health externalities. Recent model simulations show that a well-designed shift in production and consumption to make the former sustainable and align the latter with recommended values can curb these considerably and generate large macroeconomic gains. I propose a policy toolkit in line with the government’s existing sectoral policies that can support this transition. |
| Keywords: | Supply and demand;Economic growth;Agricultural production;Agricultural sector;Demand elasticity;agriculture,growth,food policy,climate change,externalities,fiscal policy,diets,agri-food,GHG,externality,GHG emission,farm labor force |
| Date: | 2019–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/041&r=all |
| By: | Jean-Marc Blazy (ASTRO - Agrosystèmes tropicaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Subervie Julie (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jacky Paul (ASTRO - Agrosystèmes tropicaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); François Causeret (ASTRO - Agrosystèmes tropicaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Loic Guinde (ASTRO - Agrosystèmes tropicaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sarah Moulla (ASTRO - Agrosystèmes tropicaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Alban Thomas (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jorge Sierra (ASTRO - Agrosystèmes tropicaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | In this article, we provide an ex-ante assessment of the cost-effectiveness of a series of innovative Agri-EnvironmentalMeasures (AEM) that subsidize the use of compost. To do so, we ran a choice experiment in the western islands of French Polynesia where the soil organic carbon content is extremely low. The 305 farmers who participated were asked to choose one of several AEM that offer financial support in exchange for using compost in their farming activities, aswell as free technical assistance, a collective financial bonus, and the possibility of combining chemical fertilizers with composts. We found that offering free technical assistance increases the participation rate by 30 percentage points and offering a collective bonus increases it by 14 percentage points. In contrast, including a requirement on the reduction of chemical fertilization would decrease the probability of participation by only two percentage points. We then estimated the amount of carbon that would be sequestered in the soil using compost as prescribed under each of the AEM proposed. We found that the most effective AES would sequester up to 25,000 teqCO2 per ha and per year and that the most cost-effective scheme would reach this target at a cost of about 500 euros per teqCO2. Finally, we find that the so-called 4 per 1000 target could be easily reached through most cost-effective measures even if only half of the farms were enrolled in the program. |
| Keywords: | climate change,compost,soil carbon,choice experiment,Guadeloupe. |
| Date: | 2020–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02748634&r=all |
| By: | Ariel Lanza (Kellogg School of Management, Northwestern University (PhD student)); Enrico Bernardini (Banca d'Italia); Ivan Faiella (Banca d'Italia) |
| Abstract: | This work proposes a novel approach for overcoming the current inconsistencies in ESG scores by using Machine Learning (ML) techniques to identify those indicators that better contribute to the construction of efficient portfolios. ML can achieve this result without needing a model-based methodology, typical of the modern portfolio theory approaches. The ESG indicators identified by our approach show a discriminatory power that also holds after accounting for the contribution of the style factors identified by the Fama-French five-factor model and the macroeconomic factors of the BIRR model. The novelty of the paper is threefold: a) the large array of ESG metrics analysed, b) the model-free methodology ensured by ML and c) the disentangling of the contribution of ESG-specific metrics to the portfolio performance from both the traditional style and macroeconomic factors. According to our results, more information content may be extracted from the available raw ESG data for portfolio construction purposes and half of the ESG indicators identified using our approach are environmental. Among the environmental indicators, some refer to companies' exposure and ability to manage climate change risk, namely the transition risk. |
| Keywords: | portfolio construction, factor models, sustainable investment, ESG, machine learning |
| JEL: | C63 G11 Q56 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_561_20&r=all |
| By: | Yannay Spitzer; Gaspare Tortorici; Ariell Zimran |
| Abstract: | The Messina-Reggio Calabria Earthquake (1908) was the deadliest earthquake and arguably the most devastating natural disaster in modern European history. It occurred when overseas mass emigration from southern Italy was at its peak and international borders were open, making emigration a widespread phenomenon and a readily available option for disaster relief. We use this singular event and its unique and important context to study the effects of natural disasters on international migration. Using commune-level data on damage and annual emigration, we find that, despite massive destruction, there is no evidence that the earthquake had, on average, a large impact on emigration or its composition. There were, however, heterogeneous and offsetting responses to the shock, with a more positive effect on emigration in districts where agricultural day laborers comprised a larger share of the labor force, suggesting that attachment to the land was an impediment to reacting to the disaster through migration. Nonetheless, relative to the effects of ordinary shocks, such as a recession in the destination, this momentous event had a small impact on emigration rates. These findings contribute to literatures on climate- and disaster-driven migration and on the Age of Mass Migration. |
| JEL: | F22 J61 N33 N53 O13 O15 Q54 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27506&r=all |
| By: | Dolnicar, Sara (The University of Queensland); Cvelbar, Ljubica Knezevic; Grün, Bettina |
| Abstract: | This article reports on a quasi-experimental study in which the use of emissions-intensive, water hungry thick cotton serviettes at hotel breakfast buffets was reduced by 95% by changing the default to recycled paper serviettes. The outcome is better for the environment, reduced costs for the hotel and does not influence guest satisfaction. |
| Date: | 2019–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:83rqu&r=all |
| By: | Ambec, Stefan; De Donder, Philippe |
| Abstract: | Is green consumerism beneficial to the environment and the economy? To shed light on this question, we study the political economy of environmental regulations in a model with neutral and green consumers where the latter derive some warm glow from buying a good of higher environmental quality produced by a profit-maximizing monopoly, while the good bought by neutral consumers is provided by a competitive fringe. Consumers unanimously vote for a standard set at a lower than first-best level, or for a tax delivering the first-best environmental protection level. Despite its under-provision of environmental protection, the standard dominates the tax from a welfare perspective due to its higher productive efficiency, i.e., a smaller gap between the environmental qualities of the two goods supplied. In stark contrast, voters unanimously prefer a tax to a standard when the willingness to pay for greener goods is small enough. |
| Keywords: | environmental regulation, corporate social responsibility, green consumerism, product differentiation, tax, standard, green label, political economy. |
| JEL: | D24 D62 Q41 Q42 Q48 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:124431&r=all |
| By: | Robert Fotso (Université de Yaoundé II) |
| Abstract: | Nowadays, the forest management is the major area for the development and the performance of corporate entities. The purpose of this research is to provide the content to the concept of forest governance as a regulation method and conciliate the different parties intervening in the forest exploration. The survey conducted among twelve managers of corporate forestry, two villages'chiefs and two municipality officers allowed to identify the regulation and conciliation mechanisms that governance should enroll in multidimensional logic that allows incorporation of both the informal institutions and the cultural tradition. These two elements represent the wealth of local community. |
| Abstract: | La gouvernance forestière constitue un enjeu majeur pour le développement économique et la gestion efficace des entreprises. L'objet de cet article est de donner un contenu à la notion de gouvernance forestière comme mode de régulation et de conciliation des différentes parties prenantes à l'exploitation forestière. Une enquête exploratoire menée auprès de douze dirigeants d'entreprises forestières, 11 responsables des ministères en charge des forêts et de l'environnement, 6 responsables d'ONG exerçant dans le secteur forestier, deux chefs de village, 2 représentants des communautés villageoises et deux responsables des collectivités territoriales décentralisées, a permis d'identifier des mécanismes régulateurs et conciliateurs des transactions forestières, et de montrer que la gouvernance forestière doit s'inscrire dans une logique multidimensionnelle permettant d'intégrer les valeurs traditionnelles caractéristiques des communautés locales. |
| Keywords: | Commons,Regulator and conciliator mechanisms,Forest transaction,Forest governance,Mécanismes régulateurs et conciliateurs,Transactions forestières,Gouvernance forestière |
| Date: | 2020–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02872825&r=all |
| By: | Li, Lei; Löschel, Andreas; Pei, Jiansuo; Sturm, Bodo; Yu, Anqi |
| Abstract: | Is trade liberalization contributing to cleaner production amongst manufacturing firms? Theoretical predictions and empirical evidences are mixed. This study utilizes China's dual trade regime and China's WTO entry in 2001 to construct a unique micro dataset on manufacturing firms for China for the period 2000-2007, and performs a difference-in-difference estimation strategy to directly examine this issue. Specifically, normal exporters that saw tariff changes during the same period form the treatment group; while processing exporters that enjoy tariff-exemptions both pre- and post-WTO entry serve as the control group. Results show that China's WTO entry contributed to a lower SO2 emission intensity for normal exporting firms. We further examine the mechanism and show that the productivity channel accounted for the observed pattern. Specifically, more efficient normal exporters saw greater decline of SO2 emission intensity than average normal exporters. This study contributes to a better understanding of the impact of trade on the environment, especially in developing countries. It also complements the literature in terms of providing China's micro evidence on the impact of trade liberalization on firm's environmental performance. |
| Keywords: | WTO,trade liberalization,dual trade regime,SO2 emission intensity,China |
| JEL: | F18 Q53 Q56 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:20031&r=all |
| By: | Beirne, John (Asian Development Bank Institute); Renzhi, Nuobu (Asian Development Bank Institute); Volz, Ulrich (Asian Development Bank Institute) |
| Abstract: | We empirically examine the link between the cost of sovereign borrowing and climate risk for 40 advanced and emerging economies. Controlling for a large set of domestic and global factors, we show that both vulnerability and resilience to climate risk are important factors driving the cost of sovereign borrowing at the global level. Overall, we find that vulnerability to the direct effects of climate change matter substantially more than climate risk resilience in terms of the implications for sovereign borrowing costs. Moreover, the magnitude of the effect on bond yields is progressively higher for countries deemed highly vulnerable to climate change. Impulse response analysis from a set of panel structural VAR models indicates that the reaction of bond yields to shocks imposed on climate vulnerability and resilience become permanent after around 12 quarters, with high risk economies experiencing larger permanent effects on yields than other country groups. |
| Keywords: | climate risk; cost of sovereign borrowing |
| JEL: | F32 F41 F62 |
| Date: | 2020–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1160&r=all |
| By: | Douadia Bougherara (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Margaux Lapierre (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Raphaële Préget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Alexandre Sauquet (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Nearly all Agri-Environmental Schemes (AES) offer stable annual payments over theduration of the contract. Yet AES are often intended to be a transition tool, designed totrigger changes in farming practices rather than to support them indefinitely. A decreasingsequence of payments thus appears particularly attractive as a reward structure for AES.The standard discounted utility model supports this notion by predicting that individualsshould prefer a decreasing sequence of payments if the total sum of outcomes is con-stant. Nevertheless, the literature shows that numerous mechanisms, such as increasingproductivity, anticipatory pleasure, and loss aversion, can, by contrast, incline individualsto favor an increasing sequence of payments. To understand the preferences of farmersfor different payment sequences, we propose a review of the mechanisms highlighted bythe literature in psychology and economics. We then test farmers' preferences for stable,increasing or decreasing payments through a choice experiment (CE) survey. In this sur-vey, farmers are offered hypothetical contracts rewarding the planting of cover crops. Toreduce hypothetical bias, the choice cards were designed following repeated interactionswith local stakeholders. One hundred twenty-three French farmers, about 15% of thosecontacted, responded to the survey. Overall, farmers do not present a clear willingnessto depart from the usual stable payments. Nevertheless, 17% declare a preference for in-creasing sequences of payment. Moreover, we find a significant rejection of decreasingpayments by farmers with a lower discount rate or farmers more willing to take risks thanthe median farmer, contradicting the discounted utility model |
| Keywords: | Choice experiment,Cover crops,Farming practices,Sequences of outcomes,Agri-Environmental Schemes,Discounted utility |
| Date: | 2020–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-02892858&r=all |
| By: | Sedano,Fernando; Molini,Vasco; Azad,M Abul Kalam |
| Abstract: | This study developed a land cover and land use mapping framework specifically designed for agricultural systems in the Sudan-Sahel region. The mapping approach extracts information from inter- and intra-annual vegetation dynamics from dense stacks of Landsat 8 images. The framework was applied to create a 30-meter spatial resolution land use map focusing on the 2015 agricultural landscapes in northern Nigeria. The map provides up-to-date information with a high level of spatial and thematic detail, resulting in a more precise characterization of agriculture in the region. The map reveals that agriculture is the main land use in the region. Arable land represents on average 52.5 percent of the area, which is higher than the reported national average for Nigeria (38.4 percent). Irrigated agriculture covers nearly 2.2 percent of the total area, reaching nearly 20 percent of the cultivated land when traditional floodplain agriculture systems are included, which is above the reported national average (0.63 percent). There is significant variability in land use in the region. This study demonstrates the feasibility of multitemporal medium-resolution remote sensing data to provide detailed, up-to-date information on agricultural systems in the arid and sub-arid landscapes of the Sahel region. |
| Keywords: | Food Security,Inequality,Hydrology,Climate Change and Agriculture,Water and Food Supply,Irrigation and Drainage,Agricultural Irrigation and Drainage |
| Date: | 2020–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9335&r=all |
| By: | Löschel, Andreas; Price, Michael; Razzolini, Laura; Werthschulte, Madeline |
| Abstract: | This study explores whether negative income shocks from the COVID-19 pandemic affect the demand for environmental policy. By running a survey in Germany in May 2020, we show that there is a large and negative correlation between the COVID-19 income shocks and the willingness to support green policies. Importantly, this relation is separate from the effect of long-run income. Building on this first evidence, our study provides directions for future valuation studies. Specifically, our results provide a proof of concept that welfare analyses based on willingness-to-pay estimates to assess the benefit of an environmental good or the cost of an environmental damage may be downward biased if temporary changes in income are not considered. |
| Keywords: | COVID-19,Environmental policy,Income shock,Welfare analysis,Willingness topay |
| JEL: | Q51 Q58 D61 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:117&r=all |
| By: | Nathan DeMaagd (University of Hawaii at Manoa, Department of Economics); Michael J. Roberts (University of Hawaii at Manoa, Department of Economics) |
| Abstract: | The effect that climate change will have on water resource sustainability is gaining international interest, particularly in regions where stocks are strained due to changing climate and increasing populations. Past studies focus mainly on how water availability will be affected by climate change, with little attention paid to how consumer behavior is likely to react. How a changing climate affects water demand could be equally or more important to management solutions as its influence on water supply. In this paper, we analyze the relationship between residential water use and climate on the Hawaiian island of Oahu, and apply downscaled climate projections to estimate end-of-century water use. The island is serviced by only one water utility yet has a wide range of consumers and microclimates, which make it an ideal location for studying these relationships. We find that climate is strongly associated with residential water use in a manner that is likely causal. If the association is causal, it implies that demand will increase by 20-37 island-wide by the end of the century, holding all else the same, depending on the climate model projection. Strategies for offsetting the projected increase in demand are also considered, along with the study's place in literature examining watershed management and consumer welfare. |
| Keywords: | water demand; climate change |
| JEL: | Q25 Q54 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:202020&r=all |
| By: | John Gibson; Garth Heutel |
| Abstract: | We study the relationship between unemployment, environmental policy, and business cycles. We develop a dynamic stochastic general equilibrium real business cycle model that includes both a pollution externality and congestion externalities from labor market search frictions, which generate unemployment. We consider two policies to address the market failures: an emissions tax and a tax or subsidy on job creation. With both policies present, the efficient outcome can be achieved. When one policy is constrained or absent, we solve for the second best. The absence of a vacancy policy to address the congestion externalities substantially affects the value of the emissions tax, both in steady state and over the business cycle. |
| JEL: | E24 E32 Q58 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27445&r=all |
| By: | Rodrigo Garcia-Verdu; Alexis Meyer-Cirkel; Akira Sasahara; Hans Weisfeld |
| Abstract: | This paper estimates agricultural total factor productivity (TFP) in 162 countries between 1991 and 2015 and aims to understand sources of cross-country variations in agricultural TFP levels and its growth rates. Two factors affecting agricultural TFP are analyzed in detail – imported intermediate inputs and climate. We first show that these two factors are independently important in explaining agricultural TFP – imported inputs raise agricultural TFP; and higher temperatures and rainfall shortages impede TFP growth, particularly in low-income countries (LICs). We also provide a new evidence that, within LICs, those with a higher import component of intermediate inputs seem to be more shielded from the negative impacts of weather shocks. |
| Keywords: | Price indexes;Economic growth;Real effective exchange rates;Total factor productivity;Capital stocks;Agricultural Productivity,TFP,Imported Inputs,Weather Shocks,Climate Change Mitigation,LICs.,high-income country,low share,value-added,middle-income country |
| Date: | 2019–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/026&r=all |
| By: | Pierre Magontier (Universitat de Barcelona & IEB) |
| Abstract: | While natural hazards have never been so frequent in modern history, the political economy of disaster preparation remains largely understudied. To prepare for natural disasters, local governments can adopt mitigation measures (e.g., infrastructure elevation, retrofitting, shelter construction, etc.). However, in doing so, there is a trade-off between risk reduction and risk disclosure as these initiatives may signal latent dangers of a place to unsuspecting homebuyers. Increased media coverage may ease this trade-off by revealing these dormant risks. I develop a measure of newspaper coverage of storms using data on newspapers’ circulation and occurrence of storms at the ZIP code level in the United States. Using the variation in this measure, I identify the effects of heightened media attention on local governments’ mitigation efforts under the Hazard Mitigation Grant program managed by FEMA. I find that when newspaper coverage is high, jurisdictions that have experienced severe storms tend to implement significantly more mitigation projects. Conversely, when coverage of storms is low, jurisdictions do not undertake mitigation projects after being hit by a storm. My results are primarily driven by ZIP codes with high pre-treatment levels of vacant housing units, housing units occupied by renters, and housing units owned with a mortgage. I argue that local governments may be strategically underinvesting in disaster preparation to avoid revealing their jurisdictions’ inherent risk to otherwise uninformed property investors. |
| Keywords: | Local governments, natural disasters, mitigation, media, newspapers |
| JEL: | H72 H84 Q54 R52 R53 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:doc2020-05&r=all |
| By: | Regina Maria Marques da Fonseca Pereira (University of Coimbra, Faculty of Economics); Tiago Miguel Guterres Neves Sequeira (University of Coimbra, Centre for Business and Economics,CeBER, Faculty of Economics); Pedro André Ribeiro Madeira Cunha Cerqueira (University of Coimbra, Centre for Business and Economics,CeBER, Faculty of Economics) |
| Abstract: | We contribute to the renewable energy consumption-income (and growth) nexus literature by performing an empirical study on a worldwide panel data, also accounting for cross-country dependency using a parsimonious specification that accounts for traditional sources of income differences as well as institutional features of the countries. Our results present either negative or nonsignificant influence of the share of renewable energies consumption to economic growth and income. |
| Keywords: | Renewable energy consumption, economic growth regressions, economic growth. |
| JEL: | O40 Q21 Q43 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:papers:2020-10&r=all |
| By: | Monica Maduekwe (Praia, Cabo Verde); Uduak Akpan (SPIDER Solutions, Uyo, Nigeria); Salisu Isihak (Rural Electrification Agency, Abuja, Nigeria) |
| Abstract: | The “Avoid”, “Shift” and “Improve” (A-S-I) approach is an effective method for transforming an unsustainable transport system to a sustainable one. This study intends to examine the possible impact of the A-S-I policy measures in transforming the transportation system in Lagos - the most populous city and the commercial capital of Nigeria. The study employs the Long Range Energy Alternative Planning (LEAP) model to project future energy demand and greenhouse gas emissions to determine the most effective A-S-I option for the city. We construct a business-as-usual scenario for Lagos as well as sustainable road transport alternative policy scenarios. The results show that Lagos’ biggest obstacle to achieving its emission reduction target is the presence of very old vehicles on its roads. Our analysis shows that emission reduction in the road transport sector in Lagos is sensitive to vehicle survivability rate (i.e. the fraction of vehicles of a certain age still driven). We conclude that unless the age limit of vehicles in Lagos reduces from 40 years to 22 years, vehicle growth rate from 5% to 2% and mileage by 2% per year from 2020- 2032, Lagos may not achieve the target 50% emission reduction by 2032. |
| Keywords: | Road transport, energy consumption, greenhouse gas emissions, LEAP, Lagos, Nigeria |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:20/055&r=all |
| By: | Steinfatt, Karsten |
| Abstract: | From its initial focus on minimizing waste generation, the circular economy has evolved into a broad-based approach to make resource use more sustainable. A big part of the appeal of a circular economy is the opportunities it creates not only for resource savings and better human health and environmental outcomes, but also for trade and economic diversification. As interest in circular economy approaches grows, it becomes increasingly important to ensure that trade policies are designed and implemented with the goals of a circular economy in mind. Doing so would bolster the role of trade in scaling up circular economy solutions worldwide. This paper reviews work at the WTO related to the circular economy. It shows how WTO members have addressed issues related to the circular economy through policy dialogue, peer review, negotiations and more recently, Aid for Trade. Experience in these four areas provides valuable insights into how WTO members can expand the positive contribution of trade to a circular economy, not least by: (i) improving their collective understanding of how trade interacts with the circular economy; (ii) building trust and confidence to engage in mutually beneficial activities related to circular economy; (iii) opening and facilitating trade in key areas of the circular economy; and (iv) supporting efforts in developing countries to seize the potential environmental, economic and social benefits of a circular economy through enhanced trade. |
| Keywords: | international trade,circular economy,resource efficiency,sustainable development,waste,WTO,transparency,policy coordination,Aid for Trade |
| JEL: | F13 F18 F42 F64 Q56 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wtowps:ersd202010&r=all |
| By: | Julie Ing (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper studies the contractual relationship between a government and a firm in charge of the extraction of an exhaustible resource. Governments design taxation scheme to capture resource rent and they usually propose contracts with limited duration and possess less information on resources than the extractive firms do. This article investigates how information asymmetry on costs and an inability to commit to long-term contracts affect tax revenue and the extraction path. This study gives several unconventional results. First, when information asymmetry exists, the inability to commit does not necessarily lower tax revenues. Second, under asymmetric information without commitment, an efficient firm may produce during the first period more or less than under symmetric information. Hence, the inability to commit has an ambiguous effect on the exhaustion date. Third, the modified Hotelling's rule is such that an increase in the discount factor does not necessarily reduce the first-period extraction. |
| Keywords: | resource taxation,asymmetric information,commitment |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02885885&r=all |
| By: | Ding, Yuanzhao |
| Abstract: | China is a developing country that has experienced rapid industrial growth over the last 30 years. However, due to limited environmental legislation and enforcement, many industrial companies have directly released wastewater into waterways without proper treatment, leading to the problem of heavy metal pollution. As a result, chronic exposure to heavy metals is considered the main threat to human health in China. To solve the issue of heavy metal pollution, China’s government used top-down centralised state-centric governance. However, state-centric governance is limited in that it requires a long response time. In this paper, the theory of network governance is instead applied to analyse the heavy metal pollution problem, and a new model, the voluntary governance model, is introduced. With the voluntary governance, the China government will be better able to improve the efficiency of the governance process and provide a healthier environment to the citizens. |
| Date: | 2020–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:apbm3&r=all |
| By: | Hide-Fumi Yokoo (Graduate School of Economics, Hitotsubashi University, Naka 2-1, Kunitachi, Tokyo 186-8601, Japan & Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.); Toshi H. Arimura (Faculty of Political Science and Economics & Research Institute for Environmental Economics and Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.); Mriduchhanda Chattopadhyay (Graduate School of Economics, Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo 169-8050, Japan.); Hajime Katayama (Faculty of Commerce & Research Institute for Environmental Economics and Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.) |
| Abstract: | We investigate the accuracy of the perceptions of health risks in India. To examine systematic risk misperception, which is relevant to policy debates, we present the concept of the subjective risk belief function (SRBF). The context of our study is the risk of developing physical symptoms related to household air pollution caused by cooking. Using field data collected from 588 respondents in 17 villages in West Bengal, we regress the probability of symptoms conditional on fuel choices to estimate the respondent-specific health risk changes. Then, we elicit the subjective probabilistic beliefs using an interactive method with visual aids. Considering the estimated risks as objective risks, we estimate the linear SRBF. Our estimated coefficient of the average SRBF is in the range of 0.58 to 0.79, which implies a slight underestimation of the change in risk when switching from cooking with firewood to cooking with liquefied petroleum gas, although the respondents have a qualitatively accurate belief. We further find that risk misperception is correlated with religion but not with age or education. |
| Keywords: | Belief; Cooking fuel choice; Health risk; India; Risk misperception; Subjective probabilistic expectation |
| JEL: | D83 D84 I12 O13 Q53 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:was:dpaper:2003&r=all |
| By: | Deparnay-Grunenberg, Anna; Llerandi, Bianca |
| Abstract: | This paper calls for transformative science to catalyze the needed change in the agricultural sector. It sheds light on the current dysfunctional system of resource allocation of the CAP and its poor economic, ecological and social outcomes. While the disparity between the desired outcomes and the reality is undisputed within research, former reforms have resulted in little change of the CAP. However, there is now a window of opportunity for real change with the transitional phase of the CAP, the shock event of the Coronavirus pandemic as a magnifying glass for underlying systemic problems and the proclamation of the European Green Deal, in particular the Farm-to-Fork-Strategy. The current system is impoverishing our biodiversity, soils, health and rural socio-economic tissue. To break this downward spiral, the authors suggest allocating resources according to the common good that a farm produces. To design change, this article assigns a major role to transformative science and lays out starting points and missions for further research. |
| Date: | 2020–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:3xjgr&r=all |
| By: | Debapriya Bhattacharya; Towfiqul Islam Khan; Mostafa Amir Sabbih |
| Abstract: | Among the non-state actors in Bangladesh, media has a critical role to play in ensuring the successful implementation of the Sustainable Development Goals (SDGs). The present paper identifies five key roles of media in contributing to the SDGs delivery. These include: channeling information flow, ensuring proper monitoring and accountability, acting as an enabler of a ‘culture of peace’, upholding marginalised voices and facilitating the localisation of SDGs. Based on a mapping exercise on selected national and sub-national Bangla, English and online newspapers, this paper finds that among the five identified roles, the media in Bangladesh at present is primarily playing the role of channeling information flow. Media is also playing a watchdog role in a limited scale, while their participation in the SDGs accountability process is almost non-existent. This paper concludes with highlighting some challenges faced by media in Bangladesh and providing recommendations to address those. |
| Keywords: | SDGs, Media, Print media, Electronic media, Media in Bangladesh |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:opaper:131&r=all |
| By: | Nathan DeMaagd (University of Hawaii at Manoa, Department of Economics); Michael J. Roberts (University of Hawaii at Manoa, Department of Economics) |
| Abstract: | Many homes in Hawaii use cesspools and other on-site disposal systems (OSDS) instead of the municipal sewer system. Because bills combine water and waste-water services, and homes with OSDS do not pay for sewer service, OSDS residences have lower monthly bills compared to those with sewer-connected systems. We use this price difference in conjunction with selection on observables and matching methods to estimate the price elasticity of residential water demand. Matching methods indicate that OSDS residences have systematically different characteristics than those with sewer-connected systems, suggesting an imperfect natural experiment. We show traditional methods lead to biased elasticity estimates, even though they are robust when selecting on observables using OLS with or without census tract fixed effects, census block fixed effects, and non- parametric controls trained using cross-validation and a lasso. We then estimate demand using a limited sample of OSDS homes that have sewer-connected neighbors, which gives estimates from -0.06 to -0.08. The neighbors have no systematic differences in other characteristics and estimates are robust to further selection on observables, but the sample differs slightly from population means in their physical characteristics. These more defensible demand elasticity estimates, however, are much more inelastic than estimates not based on comparison of neighbors and are generally more inelastic than previous studies. Taken collectively, the results highlight the susceptibility of demand estimates to omitted variable bias. Highly inelastic water demand suggests that considerably higher prices may be needed for sustainable water management, creating some practical challenges under current regulatory guidance. We also use our results to estimate willingness to accept a tax credit for upgrading an OSDS system, a targeted policy that aims to improve water quality. Regardless of whether consumers respond to average or marginal prices, our estimates imply that the tax credit is far too small to induce voluntary participation in the program. Additional consumer welfare topics are also considered. |
| Keywords: | water demand; elasticity; consumer welfare |
| JEL: | Q21 Q25 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:202019&r=all |
| By: | Masako Ikefuji (University of Tsukuba); Jan R. Magnus (Vrije Universiteit Amsterdam) |
| Abstract: | A Bayesian typically uses data and a prior to produce a posterior. In practice, the data and the posterior are often observed but not the prior. We shall follow the opposite route, using data and the posterior information to reveal the prior. We then apply this theory to (equilibrium) climate sensitivity as reported by the Intergovernmental Panel on Climate Change in an attempt to get some insight into their prior beliefs. It appears that the IPCC scientists have agreed a priori on a value for the climate equilibrium between 3.0-4.0 degrees Celsius, while judging the occurrence of a real disaster much more likely than the previous report predicts. |
| Keywords: | Revealed prior, climate sensitivity, IPCC |
| JEL: | C11 Q54 |
| Date: | 2020–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20200046&r=all |
| By: | Dey, Oindrila; Chakravarty, Debalina |
| Abstract: | Electric Street Car (ESC) has established itself as an ideal public transport system for urban agglomeration by offering better safety, minimum pollution and conservation of fossil fuel. Yet, India envisions going all-electric by 2030 by procuring electric buses (e-buses) rather than ESCs. The crucial question is, why not upgrade the existing ESC considering that the e-buses need a profound infrastructural development in India. This paper studies the potential uptake rate of ESC over e-buses using stratified sampling data from 1226 daily public transport commuters of Kolkata, the only Indian city having an operational ESCs. We identify the demographic, psychometric and socio-economic factors influencing the probabilistic uptake of ESC over e-buses using a random utility choice model. It estimates that 38% of the commuters demand ESC over e-buses given the alternatives’ comparative details. ESC can be a model electric public transport if there is an improvement in factors, like frequent availability of ESCs and technological upgradation. By promoting the ESC services over e-buses, the government can potentially save on public investment and reach a low carbon pathway cost-effectively. The findings have crucial implications in exploration of the operational feasibility of ESC in the small and medium-sized cities of developing economies like India. |
| Keywords: | Public Transport, Electric Bus, Electric Street Car, Sustainability, Urban Area |
| JEL: | Q40 Q56 R49 R58 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101000&r=all |
| By: | Siedschlag, Iulia; Meneto, Stefano; Tong Koecklin, Manuel |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp643&r=all |
| By: | Knighton, James; Buchanan, Brian; Guzman, Christian; Elliott, Rebecca; White, Eric; Rahm, Brian |
| Abstract: | Current research on flooding risk often focuses on understanding hazards, de-emphasizing the complex pathways of exposure and vulnerability. We investigated the use of both hydrologic and social demographic data for flood exposure mapping with Random Forest (RF) regression and classification algorithms trained to predict both parcel- and tract-level flood insurance claims within New York State, US. Topographic characteristics best described flood claim frequency, but RF prediction skill was improved at both spatial scales when socioeconomic data was incorporated. Substantial improvements occurred at the tract-level when the percentage of minority residents, housing stock value and age, and the political dissimilarity index of voting precincts were used to predict insurance claims. Census tracts with higher numbers of claims and greater densities of low-lying tax parcels tended to have low proportions of minority residents, newer houses, and less political similarity to state level government. We compared this data-driven approach and a physically-based pluvial flood routing model for prediction of the spatial extents of flooding claims in two nearby catchments of differing land use. The floodplain we defined with physically based modeling agreed well with existing federal flood insurance rate maps, but underestimated the spatial extents of historical claim generating areas. In contrast, RF classification incorporating hydrologic and socioeconomic demographic data likely overestimated the flood-exposed areas. Our research indicates that quantitative incorporation of social data can improve flooding exposure estimates. |
| Keywords: | FEMA; flooding; flooding insurance claims; LIS-FLOOD; random forest; socio-hydrology; vulnerability |
| JEL: | R14 J01 |
| Date: | 2020–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:105761&r=all |
| By: | León Torres, Diana Carolina |
| Abstract: | La heterogeneidad entre las acciones ambientales de los países es uno de los más grandes desafíos sociales y económicos globales. Este trabajo construye un modelo de comercio internacional de dos países y dos sectores simétricos (Sucio y Limpio) con cambio tecnológico dirigido que analiza si una política ambiental unilateral puede asegurar un crecimiento sostenible. La política es tomada por el Norte y, es una función del nivel del consumo y la calidad ambiental del país que la imponga. La política debe tener: (i) un impuesto a los insumos sucios domésticos para reducir el impacto ambiental del Norte; (ii) un arancel a los insumos sucios del extranjero para evitar paraísos de contaminación en los otros países y, (iii) un subsidio al sector limpio para promover la investigación en las tecnologías limpias. Cuando hay difusión tecnológica entre los países, esta política unilateral puede evitar una catástrofe ambiental global. |
| Keywords: | innovaciones sesgadas; comercio internacional; políticas unilaterales; difusión tecnológica; medio ambiente; crisis ambiental |
| JEL: | F18 F64 O38 O44 Q54 Q58 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:rie:riecdt:60&r=all |
| By: | Becchetti, Leonardo; Conzo, Gianluigi; Conzo, Pierluigi; Salustri, Francesco (University of Turin) |
| Abstract: | he uneven geographical distribution of the novel coronavirus epidemic (COVID-19) in Italy is a puzzle given the intense flow of movements among the different geographical areas before lockdown decisions. To shed light on it, we test the effect of the quality of air (as measured by particulate matter and nitrogen dioxide) and lockdown restrictions on daily adverse COVID-19 outcomes at province level. We find that air pollution is positively correlated with adverse outcomes of the epidemic, withlockdown being strongly significant and more effective in reducing deceases in more polluted areas. Results are robust to different methods including cross-section, pooled and fixed-effect panel regressions (controlling for spatial correlation), instrumental variable regressions, and difference-in-differences estimates of lockdown decisions through predicted counterfactual trends. They are consistent with the consolidated body of literature in previous medical studies suggesting that poor quality of air creates chronic exposure to adverse outcomes from respiratory diseases. The estimated correlation does not change when accounting for other factors such as temperature, commuting flows, quality of regional health systems, share of public transport users, population density, the presence of Chinese community, and proxies for industry breakdown such as the share of small (artisan) firms. Our findings provide suggestions for investigating uneven geographical distribution patterns in other countries, and have implications for environmental and lockdown policies. |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:202014&r=all |
| By: | Alex Bryson (University College London); Peter Dolton (University Of Sussex); J James Reade (University of Reading); Dominik Schreyer (Otto Beisheim School of Management, Düsseldorf, Germany); Carl Singleton (University of Reading) |
| Abstract: | The Covid-19 pandemic has induced worldwide natural experiments on the effects of crowds. We exploit one of these experiments currently taking place over several countries in almost identical settings: professional football matches played behind closed doors. We find large and statistically significant effects on the number of yellow cards issued by referees. Without a crowd, fewer cards were awarded to the away teams, reducing home advantage. These results have implications for the influence of social pressure and crowds on the neutrality of refereeing decisions. |
| Keywords: | Attendance, Coronavirus, Covid-19, Home Advantage, Natural Experiments, Referee Bias, Social Pressure |
| JEL: | B41 C01 C12 C25 C52 K42 |
| Date: | 2020–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:qss:dqsswp:2004&r=all |
| By: | Taherzadeh, Oliver |
| Abstract: | Measures which address the degradation and over-exploitation of natural resources are urgently needed, in individual countries and globally. However, the extraction and use of natural resources is highly interconnected, spatially and sectorally, within a complex web of interactions and feedbacks. Conventional resource footprinting does not reveal how pressures on natural resources are distributed across country and sector supply networks. Within this study pressures across the global water, energy and land (WEL) system are located within the supply networks of 189 countries and 24 global sectors. Pathways of water, energy and land use are found to be mainly indirect, arising from country and sector resource dependencies on immediate (Scope 2) and upstream (Scope 3) producers in their supply network. However, the distribution of these pressures is found to exhibit a high level of variation within and between national and sectoral supply networks and resource systems. Such differences in the resource pressure profile of countries and sectors is scarcely recognised by existing modelling approaches or supplier reporting guidelines, but is of major consequence for the study and management of pressures across the WEL system. If measures are not taken to extend accountability for the indirect pressures imposed across the WEL system, the resource burden of consumption will be greatly mismanaged. |
| Date: | 2020–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:ue45p&r=all |
| By: | Mohammad Al Dubyan; Anwar Gasim (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The government of Saudi Arabia, like many around the world, has long set domestic energy prices far below international market levels. This helps keep prices stable and energy affordable, providing important support to lower-income households. |
| Keywords: | Energy Demand, Energy Policy Reform, Energy Price, Environment, Saudi Arabia |
| Date: | 2020–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2020-dp12&r=all |
| By: | Alex Bryson (Department of Quantitative Social Science, Institute of Education); Peter Dolton (Department of Economics, University of Sussex); J. James Reade (Department of Economics, University of Reading); Dominik Schreyer (Wissenschaftliche Hochschule für Unternehmensführung (WHU)); Carl Singleton (Department of Economics, University of Reading) |
| Abstract: | The Covid-19 pandemic has induced worldwide natural experiments on the effects of crowds. We exploit one of these experiments currently taking place over several countries in almost identical settings: professional football matches played behind closed doors. We find large and statistically significant effects on the number of yellow cards issued by referees. Without a crowd, fewer cards were awarded to the away teams, reducing home advantage. These results have implications for the influence of social pressure and crowds on the neutrality of refereeing decisions. |
| Keywords: | Attendance, Coronavirus, Covid-19, Home advantage, Natural Experiments, Referee Bias, Social Pressure |
| JEL: | C90 D91 L83 Z20 |
| Date: | 2020–08–06 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2020-18&r=all |
| By: | Emiko Inoue; Hiroya Taniguchi; Ken Yamada |
| Abstract: | Technological change is essential for balancing economic growth and environmental sustainability. This study measures and documents energy-saving technological change to understand its trends in advanced countries over recent decades. We estimate aggregate production functions with factor-augmenting technology using cross-country panel data and shift-share instruments, thereby measuring and documenting energy-saving technological change. Our results show how energy-saving technological change varies across countries over time and the extent to which it contributes to economic growth in 12 OECD countries from the years 1978 to 2005. |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2008.04639&r=all |
| By: | Braese,Johannes Michael; De Vries Robbe,Sophie Anne; Maruyama Rentschler,Jun Erik |
| Abstract: | This paper presents a multisectoral risk assessment, analyzing natural risks faced by key drivers of socioeconomic development in coastal Vietnam. The analysis quantifies the exposure of assets and economic activity to the following natural hazards: riverine flooding, coastal flooding, typhoon winds, coastal erosion, and saline intrusion. These hazards are analyzed according to their impact on agricultural production, aquaculture, human settlements, industrial zones, tourism, health care facilities, schools, and the electricity transmission network. Overall, the results show the complex nature of natural risk in Vietnam, with significant exposure of key economic sectors, public services and assets. The estimates suggest that exposure varies greatly between hazards, sectors, and provinces. This paper provides detailed technical descriptions of the methodologies, data sources, and analytical assumptions employed to obtain the estimates, and acts as a technical background paper to Resilient Shores: Vietnam's Coastal Development between Opportunity and Disaster Risk (Rentschler et al., 2020). |
| Date: | 2020–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9352&r=all |
| By: | Draper, John; Kamnuansilpa, Peerasit; Streckfuss, David |
| Abstract: | Thailand is known to exhibit extreme horizontal structural inequalities by ethnicity. While these differences are not publicly recognised because Thailand’s 62 ethnic groups are not legally recognised, they nonetheless affect state-minority relations, particularly the relationship between the dominant Central Thai ethnic community and the Thai Lao, Thailand’s largest ethnic community, which generally votes as a bloc against Central Thai-dominated political parties. To promote greater social, economic, and political inclusion, UN Sustainable Development Goal 10 advocates policies to address inequalities by ethnicity. As the Thai government does not recognise the Thai Lao, this is problematic. This study analyses opinions obtained from ‘establishment’ and ‘local elite’ samples on how to promote greater inclusion for the Thai Lao. It illustrates some of the barriers towards promoting greater socio-economic and political inclusion, including the lack of recognition, as well as opportunities, such as campaigning against racial discrimination and disaggregating data by ethnicity. |
| Date: | 2020–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:94rvf&r=all |
| By: | L. Vanessa Smith; Nori Tarui; Takashi Yamagata |
| Abstract: | The shock to the global economy from COVID-19 is predicted to be faster and more severe than the 2008 global financial crisis and even the Great Depression. We assess its impact on global fossil fuel consumption and CO2 emissions over a two-year horizon. For this purpose we employ a global vector autoregressive (GVAR) model, which captures complex spatial-temporal interdependencies across countries due to the spread of the virus and associated international propagation of economic impact. The model makes use of a unique quarterly data set of coal, natural gas, and oil consumption, output and exchange rates, including global fossil fuel prices for 32 major CO2 emitting countries. We produce forecasts of coal, natural gas and oil consumption, conditional on GDP growth scenarios based on alternative IMF World Economic Outlook forecasts that were made before and after the outbreak. We also simulate the effect of a relative price change in fossil fuels, due to carbon pricing in all countries in the sample, on consumption and output. Our results show that fossil fuel consumption and CO2 emissions are expected to return to their pre-crisis levels, and even exceed them, within the two-year horizon despite the large reductions in the first quarter following the outbreak. Our forecasts anticipate more robust growth for emerging than for advanced economies. Recovery to the pre-crisis levels is expected even if another wave of pandemic occurs within a year. The results from our counterfactual carbon pricing scenario show that an increase in coal prices is expected to have a smaller impact on GDP than on fossil fuel consumption. Thus, the COVID-19 pandemic would not provide countries with a strong reason to delay climate change mitigation efforts. |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1093&r=all |
| By: | Fitiwi, Desta; Lynch, Muireann Á.; Bertsch, Valentin |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp647&r=all |
| By: | Pandey, Rita (National Institute of Public Finance and Policy); Gupta, Manish (National Institute of Public Finance and Policy); Sachdeva, Paavani (University of Illinois at Urbana Champaign); Singh, Abhishek (Fifteen Finance Commission) |
| Abstract: | India being a signatory to CBD is mandated to achieve biodiversity targets according to a time line, which requires a credible action plan, funds, and a smart implementation strategy. While India has a National Biodiversity Action Plan, it lacks a Biodiversity Finance Policy/Plan - key to identifying, current funds flow, periodic and continuous additional finance needs as well as resource mobilization strategies. Biodiversity finance in India, is highly fragmented, lacks a clear policy and a road map. Multiple institutions are involved in directing finance often with overlapping functions and no systematic tracking. While a couple of studies have attempted to map the sources and quantum of funds towards biodiversity conservation, there is no comprehensive estimate of total budgetary funding in India for this purpose. This paper not only fills this gap but also estimates the flow of funds from externally aided projects and from corporate sector through CSR and other compliance mandates. The paper uses a modified `Rio-marker' methodology and `Budgetary data on Actual Expenditure' on biodiversity in the analysis thus contributes to both theoretical and empirical literature on the subject. The analysis shows that the majority of BD management is through government Budget support, supplemented by externally aided projects, corporate sector, and Civil Society. The paper shows that a template for tracking and tagging biodiversity expenditure is necessary in institutionalizing this process and thus moving towards a credible biodiversity finance plan. |
| Keywords: | Biodiversity financing ; government expenditure ; sub-national governments ; Maharashtra ; India |
| JEL: | Q5 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:20/311&r=all |
| By: | Tatyana Deryugina; Jonathan Gruber; Adrienne Sabety |
| Abstract: | COVID-19 has created a dual set of stresses on health care systems worldwide: a rise in expensive intensive care services and a dramatic decline in elective services. The U.S. government has responded with both grant and loan programs to help health care providers weather the storm. But the optimal size and nature of such programs are hard to evaluate without an understanding of the ability of providers to make up their lost elective service revenues over time. In this paper, we study the closest relevant parallel to the reduction in elective services seen under COVID-19: hurricanes. We match information on hurricanes to data on Medicare hospital elective visits and charges from 1997-2013, comparing counties impacted by hurricanes to nearby unaffected counties. We find that the average hurricane reduces elective services by about 7% in the month it makes landfall. For the most severe hurricanes, we estimate a reduction of more than 20%. Services return to baseline fairly rapidly, but for severe hurricanes it takes a year or more to make up lost revenues. Projections based on variation in hurricane severity suggest that it will take over 3 years for providers to make up the lost revenue from COVID-19. |
| JEL: | H12 I11 Q54 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27505&r=all |
| By: | Fix, Blair (York University) |
| Abstract: | Neoclassical economists fundamentally misunderstand the role of natural resources in the economy. I discuss here the source of this misunderstanding, and the ways we can better understand the role of energy to human societies. |
| Date: | 2020–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:hp5w4&r=all |