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on Environmental Economics |
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Issue of 2020‒08‒24
sixty-five papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Mireille Chiroleu-Assouline (PSE - Paris School of Economics, UP1 - Université Panthéon-Sorbonne); Mouez Fodha (PSE - Paris School of Economics, UP1 - Université Panthéon-Sorbonne); Yassine Kirat (PSE - Paris School of Economics, UP1 - Université Panthéon-Sorbonne) |
| Abstract: | Among the ten countries with the highest carbon intensity, six are natural resource-rich countries. This suggests the existence of a carbon curse: resource-rich countries would tend to follow more carbon-intensive development paths than resource-poor countries. We investigate this assumption empirically using a panel data method covering 29 countries (OECD and BRIC) and seven sectors over the 1995-2009 period. First, at the macroeconomic level, we find that the relationship between national CO 2 emissions per unit of GDP and abundance in natural resources is U-shaped. The carbon curse appears only after the turning point. Second, we measure the impact of resource abundance on sectoral emissions for two groups of countries based on their resource endowments. We show that a country rich in natural resources pollutes relatively more in resource-related sectors as well as all other sectors. Our results suggest that the debate on climate change mitigation should rather focus on a comparison of resource-rich countries versus resource-poor countries than the developed-country versus developing-country debate. |
| Keywords: | carbon curse,carbon intensity,resource-rich economies |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-02902393&r=all |
| By: | Bista, Raghu |
| Abstract: | This study investigates empirically how forest resources production and time allocation behavior links with climate change issue by using household survey in mid hill village of Nepal. We use Cobb Douglas production function theory to develop household production function econometric model. We use two character households: unemployed and forest dependent population for observation of time allocation behavior for household production. In addition, we use poverty and illiteracy of household characters for understanding its effect on household decision behavior and production behavior. In outcomes of the study, household production behavior of rural people results higher dependency on forest biomass and its consequence-climate change cause issue. |
| Keywords: | household production, forest, time allocation, climate change |
| JEL: | D13 D14 D6 D61 D62 Q2 Q23 Q24 Q5 Q54 Q56 Q57 |
| Date: | 2019–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:100622&r=all |
| By: | Kai Lessmann; Matthias Kalkuhl |
| Abstract: | Interest rates are central determinants of saving and investment decisions. Costly financial intermediation distort these price signals by creating a spread between the interest rates on deposits and loans with substantial effects on the supply of funds and the demand for credit. This study investigates how interest rate spreads affect climate policy in its ambition to shift capital from polluting to low-carbon sectors of the economy. To this end, we introduce financial intermediation costs in a dynamic general equilibrium climate policy model. We find that costly financial intermediation affects carbon emissions in various ways through a number of different channels. For low to moderate interest rate spreads, carbon emissions increase by up to 7 percent, in particular, because of lower investments into the capital intensive clean energy sector. For very high interest rate spreads, emissions fall because lower economic growth reduces carbon emissions. If a certain temperature target should be met, carbon prices have to be adjusted upwards by up to one third under the presence of capital market frictions. |
| Keywords: | financial friction, banking, greenhouse gas mitigation |
| JEL: | E43 G21 Q54 Q58 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8380&r=all |
| By: | Christoph Böhringer; Knut Einar Rosendahl |
| Abstract: | Several European countries have decided to phase out coal power generation. Emissions from electricity generation are already regulated by the EU Emissions Trading System (ETS), and in some countries like Germany the phaseout of coal will be accompanied with cancellation of emissions allowances. In this paper we examine the consequences of phasing out coal, both for the broader economy, the electricity sector, and for CO2 emissions. We show analytically how the welfare impacts for a phaseout region depend on i) whether and how allowances are canceled, ii) whether other countries join phaseout policies, and iii) terms-of-trade effects in the ETS market. Based on numerical simulations with a computable general equilibrium model for the European economy, we quantify the economic and environmental impacts of alternative phaseout scenarios, considering both unilateral and multilateral phaseout. We find that terms-of-trade effects in the ETS market play an important role for the welfare effects across EU member states. For Germany, coal phaseout combined with unilateral cancellation of allowances is found to be welfare-improving if the German citizens value emissions reductions at 65 Euro per ton or more. |
| Keywords: | coal phaseout, emissions trading, electricity market |
| JEL: | D61 F18 H23 Q54 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8412&r=all |
| By: | Pannell, David J.; Pardey, Philip G.; Thamo, Tas; Hurley, Terrence M. |
| Abstract: | This paper is a summary and synthesis of a series of three papers dealing with private incentives for sustainable agricultural outcomes. There is a large and still growing literature on ameliorating the undesirable environmental consequences of agriculture. Much of that literature deals with public policy and regulatory approaches to eco-friendly farming. While we have learned much from that past research and analysis, the premise of this suite of papers is that private decisions are crucial for putting global agriculture on a more sustainable footing. To meet the increasing demand for food as a result of population growth and economic development, agriculture must continue to grow more food. The challenge is to do this while protecting natural resources and the environment and also enabling farmers to make a decent living. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Land Economics/Use, Production Economics |
| Date: | 2020–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:304704&r=all |
| By: | Fernández-Amador, Octavio; Francois, Joseph; Oberdabernig, Doris; Tomberger, Patrick |
| Abstract: | We analyze the impacts of economic growth on methane emissions per capita at the sectoral level for the period 1997-2014. We cover three stages of the supply chain, distinguishing between emissions embodied in production, final production, and consumption. We investigate the effects of economic growth on two components of methane emissions per capita, namely methane emissions per unit of value added and value added per capita. We uncover substantial heterogeneity across sectors. Economic growth led to expansions of economic activity in all sectors but reduced the methane intensity of sectoral value added in some sectors. In sectors that experienced pronounced reductions in methane intensity, economic growth did not strongly affect emissions per capita. However, in the absence of large methane-intensity gains, economic growth raised emission per capita substantially. |
| Keywords: | economic growth; methane emissions; sectoral analysis; threshold estimation |
| JEL: | F18 F64 O44 Q54 Q56 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14081&r=all |
| By: | Wojtek Szewczyk (European Commission - JRC); Luc Feyen (European Commission - JRC); Anca Matei (European Commission - JRC); Juan Carlos Ciscar (European Commission - JRC); Eamonn Mulholland (European Commission - JRC); Antonio Soria (European Commission - JRC) |
| Abstract: | Climate change damages the capital stock, affects economic production and the welfare of households in regions suffering the impact or that are economically linked with them. These economic effects have been quantified for seven climate impact categories: river floods, coastal floods, agriculture, energy supply, droughts, windstorms and human mortality. Due to the limited coverage of climate impacts, the assessment does not evaluate the full economic impacts of climate change in Europe. Human mortality from extreme heat dominates the economic climate impacts, yet its contribution is strongly dependent on the monetary valuation of human lives. The magnitude of welfare losses in the Southern regions (Central Europe South and Southern Europe) is estimated to be several times larger compared to that in the North of Europe. Limiting warming to 2oC would halve economic impacts compared to a 3oC scenario, while achieving the stringent Paris target of 1.5oC would lower welfare loss by 75%. |
| Keywords: | climate change, global warming, sectoral impacts, economics, welfare |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc120452&r=all |
| By: | - |
| Abstract: | Today, Brazil and many countries around the world are seeking to stimulate economic recovery and improve people’s quality of life. In this context, the Economic Commission for Latin America and the Caribbean (ECLAC) of the United Nations has been developing the Big Push for Sustainability, a renewed approach to support the efforts of the countries of the region to design more sustainable development models, by coordinating policies to promote investments that will transform existing models. The ECLAC office in Brasilia and the Center for Strategic Studies and Management (CGEE), in conjunction with various partners, developed the Energy Big Push Brazil project, which provides evidence to promote innovation investments for a sustainable energy transition in Brazil. This publication aims to enhance readers’ understanding of the policy framework for energy innovation in Brazil, outlines the experiences of countries at the forefront of clean energy innovation and proposes a set of action lines that could accelerate investments in this area, contributing to an energy big push in Brazil. |
| Keywords: | RECURSOS ENERGETICOS, MEDIO AMBIENTE, INNOVACIONES TECNOLOGICAS, POLITICA ENERGETICA, PROTECCION AMBIENTAL, DESARROLLO SOSTENIBLE, INCENTIVOS FISCALES, ENERGY RESOURCES, ENVIRONMENT, TECHNOLOGICAL INNOVATIONS, ENERGY POLICY, ENVIRONMENTAL PROTECTION, SUSTAINABLE DEVELOPMENT, TAX INCENTIVES |
| Date: | 2020–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col127:45907&r=all |
| By: | Daniel Jeong-Dae Lee (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | Climate change is a fundamental threat to development; significant reductions in greenhouse gas emissions are needed to avert a climate crisis. While no single instrument will achieve this goal, there is broad agreement that carbon pricing is an integral part of climate action. This policy brief shows that carbon tax and emissions trading system are gaining momentum across the world, including in Asia and the Pacific, but current rates are too low to shift behaviour, capital and technology towards low-carbon development. While recognizing the need to raise ambition, governments are naturally concerned about the potential impacts of carbon pricing on industries, jobs and low-income households. This policy brief discusses ways to alleviate the concerns, including through effective use of carbon pricing revenues and regional cooperation. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb107&r=all |
| By: | Gustav Engström; Johan Gars; Niko Jaakkola; Therese Lindahl; Daniel Spiro; Arthur A. van Benthem |
| Abstract: | The coronavirus pandemic has led many countries to initiate unprecedented economic recovery packages. Policymakers tackling the coronavirus crisis have also been encouraged to prioritize policies which help mitigate a second, looming crisis: climate change. We identify and analyze policies that combat both the coronavirus crisis and the climate crisis. We analyze both the long-run climate impacts from coronavirus-related economic recovery policies, and the impacts of long-run climate policies on economic recovery and public health post-recession. We base our analysis on data on emissions, employment and corona-related layoffs across sectors, and on previous research. We show that, among climate policies, labor-intensive green infrastructure projects, planting trees, and in particular pricing carbon coupled with reduced labor taxation boost economic recovery. Among coronavirus policies, aiding services sectors (leisure services such as restaurants and culture, or professional services such as technology), education and the healthcare sector appear most promising, being labor intensive yet low-emission—if such sectoral aid is conditioned on being directed towards employment and on low-carbon supply chains. Large-scale green infrastructure projects and green R&D investment, while good for the climate, are unlikely to generate enough employment to effectively alleviate the coronavirus crisis. |
| Keywords: | coronavirus, climate policy |
| JEL: | Q54 E62 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8367&r=all |
| By: | Stephan Schulmeister |
| Abstract: | Neither a gradually rising carbon tax nor emission trading schemes can ensure that the costs of emitting greenhouse gases, in particular CO2, will steadily rise faster than the general price level. If, e.g., global fossil energy prices decline faster than a carbon tax or the emission permit price rises, then the final good and its use become cheaper. Since the prices of fossil energy as well as CO2 emission permit prices belong to the most unstable prices in the global economy, carbon taxes and trading schemes cannot anchor the long-term expectation that the effective emission costs for firms and households will rise continuously. Such an expectation, however, is a prerequisite for steadily growing investment in energy efficiency and/or renewable energy because the profits from such investments consist of the saved fossil energy costs (“opportunity profits†). This paper presents an alternative approach: The EU sets a path of steadily rising prices of crude oil, coal and natural gas by skimming off the difference between the EU target price and the respective world market price through a monthly adjusted quantity tax. Instead of the prices of fossil raw materials, the (implicit) quantity tax should fluctuate. In this way, the uncertainty about future price developments of crude oil, coal and natural gas and, hence, of the effective emission costs would be eliminated. Firms and households could calculate the profitability of investments in avoiding carbon emissions. At the same time, such a tax would ensure a uniform European carbon price in all sectors, provided the initial level of the price paths of crude oil, coal and natural gas account for the different CO2 intensities of these types of fossil energy. Given the size of the EU import bill for fossil energy, the amount of potential receipts of such an implicit and flexible CO2 tax would be (very) huge. |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:ico:wpaper:112&r=all |
| By: | Thamo, Tas; Pannell, David J.; Pardey, Philip G.; Hurley, Terrence M. |
| Abstract: | This paper is part 3 of a series concerned with harnessing private incentives to enhance the sustainability of agricultural production. Paper 1 outlines key principles and insights from existing research on the general requirements to achieve changes in agriculture to enhance sustainability, while Paper 2 applies those insights to water pollution caused by agriculture. This paper builds on those insights by examining the opportunities to increase sequestration of carbon in agricultural soils. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Land Economics/Use, Production Economics |
| Date: | 2020–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:304703&r=all |
| By: | May, Daniel |
| Abstract: | Some researchers argue that climate change can only be combated by reducing economic growth in developed countries. While this is a reasonable argument, it is very unlikely that all these countries will lower their economic activity in the short-medium run in order to favour the environment. This article explores an alternative solution that consists of affecting farmer’s incentives to adopt environmental practices when they operate in a highly business-oriented paradigm. Using a structural equations approach, it was found that farmers can potentially be induced to adopt these practices by means of local policy programs. |
| Keywords: | Environmental Economics and Policy, Farm Management |
| Date: | 2019–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:haaewp:296764&r=all |
| By: | Daniel E. Ufua (CEPDeR, Covenant University, Ota, Nigeria); Odunayo P. Salau (Covenant University, Ota, Ogun State, Nigeria); Joseph A. Dada (Covenant University, Ota, Ogun State, Nigeria); Mosunmola O. Adeyeye (Covenant University, Ota, Ogun State, Nigeria) |
| Abstract: | This research explores waste management activities and the strive to achieve a cleaner environment for man’s habitation. The work applies a case study approach and the use of observation method was applied in the data collection along with a description of the case of waste dumping issue on Idiroko Road, Ota, Ogun State, Nigeria. This study suggests the application of systems approach to enhance a participatory waste management practice, that embraces the involvement and active consultation of the concerned stakeholders for effective and sustainable waste management practice. The research also highlights the need for further research to consider the application of other data collection tools such as interview and workshop to have a broader data needed to further explore the research area. |
| Keywords: | Clean environment; Environmental pollution; Systems approach; Waste management |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/007&r=all |
| By: | Dorothée Brécard; Mireille Chiroleu-Assouline |
| Abstract: | Non-governmental organizations (NGOs) are exerting growing pressure on firms to eliminate product components (such as palm oil) that are harmful to the environment (such as rainforests) or replace such components with NGO-certified sustainable components. Under which conditions does NGO pressure lead firms to eliminate basic components from their products or, alternatively, substitute damaging components with certified sustainable components? What are the ensuing effects on market structure, environmental quality, and social welfare? The paper addresses these issues using a model of two-dimensional vertical product differentiation. It shows that, for an NGO that collects certification fees to accrue its budget and finance its awareness campaign, it may — paradoxically — be optimal to reduce the certified product’s market share and eventually evict it. |
| Keywords: | NGO, eco-label, environmental quality, product differentiation, palm oil, biofuels |
| JEL: | D11 D62 D83 L15 Q58 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8389&r=all |
| By: | Marie Scholer (EIOPA); Lazaro Cuesta Barbera (EIOPA) |
| Abstract: | This article investigates how much investment held by insurers may be eligible to the EU sustainable finance taxonomy. To this aim, Solvency II item-by-item investment data is employed. As part of the Green Deal, the Commission presented the European Green Deal Investment Plan, which will mobilize at least €1 trillion of sustainable investments over the next decade. Our results suggest that currently only a small portion of the insurer’s investments are made in economic activities which might be eligible to the EU sustainable finance taxonomy as the insurer’s exposures are mainly concentrating toward financial activities. On one hand, this can be interpreted as an indicator of limited exposure to transition risk for the insurance sector but on the other hand also indicates that insurers have the possibility to contribute more significantly to transitioning to a lower carbon society in the future. As major long-term investors, insurers could play a key role in the transition towards more sustainable society. In this respect, the taxonomy can help insurers by providing clarity in identifying sustainable economic activities and avoiding reputational risks. |
| Keywords: | insurance, sutainable finance, green taxonomy |
| JEL: | G11 G12 G22 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:eio:thafsr:17&r=all |
| By: | Kendall, Alissa; Harvey, John T.; Butt, Ali A.; Lozano, Mark T.; Saboori, Arash; Kim, Changmo |
| Abstract: | Local governments increasingly prepare Climate Action Plans to lay out specific strategies for achieving local and state greenhouse gas reduction goals. Strategies to reduce transportation emissions are often a key component of these plans, as the transportation sector is responsible for 41% of greenhouse gas emissions in California and 28% in the US. However, many Climate Action Plans do not quantify the emissions reductions or costs of proposed strategies, and even fewer consider the life cycle impacts of the strategies. Life cycle-based assessments consider emissions and costs that occur at the outset of a strategy’s implementation (e.g., purchase, installation, and construction), during operation and maintenance, and at end-of-life. Quantifying the life cycle cost effectiveness and emissions reductions of different strategies can, along with other community priorities, inform the design and implementation of Climate Action Plans that achieve climate goals at a reasonable cost. A marginal abatement cost curve is a useful way to present this information, offering a visualization of the rank order cost-effectiveness and total possible emissions reductions of alternative strategies in a Climate Action Plan. Researchers at the University of California, Davis developed a decision support framework for local governments to assess life cycle greenhouse gas reductions and costs of Climate Action Plan strategies. The researchers demonstrated their approach by developing marginal abatement cost curves for two California counties, Yolo and Unincorporated Los Angeles, based on strategies from their respective Climate Action Plans. This policy brief summarizes findings from that research. View the NCST Project Webpage |
| Keywords: | Engineering, Climate change, Decision making, Greenhouse gases, Life cycle analysis, Local government agencies, Performance measurement, Transportation planning |
| Date: | 2020–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt7xc670k6&r=all |
| By: | Grimm, Michael (University of Passau); Luck, Nathalie (University of Passau) |
| Abstract: | In many parts of the world, several decades of intensively applying Green Revolution technologies came at environmental costs, i.e. degraded water and soil quality as well as a loss of biodiversity. This has led to an increased interest in alternative farming systems such as organic farming, which is commonly perceived as more sustainable. Despite many initiatives to promote organic farming, it remains a marginal activity in many countries. Widespread uptake of organic farming requires a better understanding of the drivers for and barriers to its adoption. Previous studies highlighted information as an important driver of agricultural technology adoption. Yet, despite the variety of programs studied, little is known about the role of removing information constraints in the context of organic farming. In this paper, we focus on the role of information provision and training as one driver for the adoption of organic farming practices in Indonesia. We use a randomized controlled trial (RCT) to identify the impact of a three-day hands-on training in organic farming on smallholder farmers' adoption and knowledge of such practices as well as on their perception towards organic farming. We find that the training intervention had a positive and statistically significant effect on the use of organic inputs. We further find positive and statistically significant treatment effects with respect to knowledge about and perception of organic farming. Overall, our findings suggest that intense training is a promising instrument to increase the uptake of organic farming. |
| Keywords: | organic farming, technology adoption, RCT, Indonesia |
| JEL: | C93 O12 O33 Q12 Q16 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13400&r=all |
| By: | Daniel Jeong-Dae Lee (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | As argued in Economic and Social Survey 2020, carbon pricing is an integral part of climate action. However, while there is growing momentum, it remains a relatively new concept especially in developing countries. This policy brief compares carbon taxes and emission trading system, the two most common forms of explicit carbon pricing. It also highlights the key elements to consider in establishing them. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb108&r=all |
| By: | Michael Pflüger |
| Abstract: | This paper develops a model with an endogenous number of cities to explore whether local governments establish the optimal city size when key activities in the city are associated with emissions that harm consumers. In contrast to extant research, our model is fully micro-founded with respect to the urban sector and the agglomeration mechanism as well as the modelling of pollution and pollution abatement. We derive two key insights. First, if the national government implements a permit system (equivalently, pollution taxes) that allow for emissions as in the first-best, cities chosen by local governments are too small. Second, if no emission scheme is implemented, or if emission policies are too lax, cities steered by local governments may become too large. The tractability of the model also allows us to uncover the determinants of optimal city sizes, emissions, emission intensities and determinants of locally chosen city sizes, as well as to address the second-best emission policy and extensions to city asymmetries, a fiscal externality, local pollution, generalized commuting costs and further pollution sources. |
| Keywords: | city systems, environmental pollution, emission policies |
| JEL: | H73 R12 Q50 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8448&r=all |
| By: | Isabelle Cadoret (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); Emma Galli (Dipartimento di Scienze Sociali - Università degli Studi di Roma "La Sapienza" [Rome]); Fabio Padovano (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 empirically examines how governments actually use environmental taxes, by looking to what extent their resort to this type of taxation is consistent with three alternative interpretations of environmental taxes proposed by the welfare economics theoretical literature: the strict and the loose Pigouvian and the double dividend hypotheses. We also extend our analysis to an alternative vision of politics, the Leviathan model, to verify how governments that are imperfectly accountable use environmental taxes. Each theory leads to alternative testable hypotheses, which we verify on a sample that minimizes the analysts' discretionary evaluations, the EU-28 countries that committed themselves to reducing the greenhouse gas emissions by 2020. The estimates lend support to the strict Pigouvian hypothesis and, to a lesser extent, to a version of the double dividend hypothesis, where personal income taxes are "recycled" by environmental ones. The other interpretations do not appear consistent with the data. |
| Keywords: | Environmental taxes,environmental policy goals,Pigouvian taxation,double dividend hypothesis,Leviathan government,dynamic simultaneous equations model |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02875118&r=all |
| By: | Jyoti Bisbey (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | In the face of a mounting climate-emergency, the Asia-Pacific region needs to raise ambitions and accelerate actions towards transitioning to a low-carbon economy. While there is limited information about greenhouse emissions (GHG) from production activities, the region’s status as the engine of the world’s economy suggests that production contributes significantly to GHG emissions. This implies that businesses are key stakeholders in the decarbonization process. Indeed, to facilitate the transformation to a low-carbon economy, businesses need to take action and step up their commitments towards decarbonization. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb104&r=all |
| By: | Lucas Bretschger (Center of Economic Research (CER-ETH), ETH Zurich, Switzerland) |
| Abstract: | The belief that stringent climate policies are very costly is widespread among political decision-makers and the public. The Trump administration stressed the cost argument as the motivation for the US withdrawal from the Paris Climate Agreement. However, such judgements ignore the economic bene?ts of policy changes and implicitly build on a misguided decomposition of environmental impacts using the IPAT and Kaya identities. The paper shows that this method predicts policy-induced income losses that are systematically and signi?cantly biased. I extend the decomposition analysis by introducing input substitution, which leads to the IPAST identity. By additionally incorporating a production approach, causal relationships between drivers of resource use, and a Romer-Kremer framework for technology development in a Schumpeterian tradition, I develop the IAT rule, a structural equation to easily estimate climate policy e¤ects. For a given decarbonization path, I use the di¤erent rules to calculate the projected income development at the global and country level. The use of the IAT approach instead of agnostic decomposition suggests that the costs of a stringent climate policy are much lower than normally expected, which supports deep decarbonization.. |
| Keywords: | Environmental protection; costs of climate policy; decarbonization; IPAT identity; IAT formula |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:20-341&r=all |
| By: | Jyoti Bisbey (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | In the face of a mounting climate-emergency, the Asia-Pacific region needs to raise ambitions and accelerate actions towards transitioning to a low-carbon economy. While there is limited information about greenhouse emissions (GHG) from production activities, the region’s status as the engine of the world’s economy suggests that production contributes significantly to GHG emissions. This implies that businesses are key stakeholders in the decarbonization process. Indeed, to facilitate the transformation to a low-carbon economy, businesses need to take action and step up their commitments towards decarbonization. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb105&r=all |
| By: | Cathrine Hagem; Michael Olaf Hoel; Thomas Sterner |
| Abstract: | We analyse two mechanism designs for refunding emission payments to polluting firms: output-based refunding (OBR) and expenditure-based refunding (EBR). In both instruments, emission fees are returned to the polluting industry, typically making the policy more politically acceptable than a standard tax. The crucial difference between OBR and EBR is that the fees are refunded in proportion to output in the former but in proportion to the firms’ expenditure on abatement technology equipment in the latter. To achieve the same abatement target as a standard tax, the fee level in the OBR design is higher, whereas the fee level in the EBR design is lower. The use of OBR and EBR may lead to large differences in the distribution of output and costs across firms. Both designs imply a cost-ineffective provision of abatement, as firms put relatively too much effort into reducing emissions through abatement technology compared with reducing output. However, a standard tax may be politically infeasible and maintaining output may be seen as a political advantage by policymakers if they seek to avoid activity reduction in the regulated sector. |
| Keywords: | emission payments, carbon tax, refunding, CO2, NOX, policy design |
| JEL: | Q28 Q25 H23 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8364&r=all |
| By: | Bose, Neha (University of Warwick); Hills, Thomas (University of Warwick); Sgroi, Daniel (University of Warwick) |
| Abstract: | Though many in the general public are concerned about climate change, most are unaware that agriculture and food production accounts for about one quarter of aggregate green house emissions and therefore, diet change is one of the most effective ways that individuals can reduce their climate impact. To investigate how best to communicate this, we present the results of a pre-registered randomised control trial, involving 1220 subjects, exploring six different information interventions. Our findings indicate that the most influential interventions are based on scientific knowledge and efficacy salience. These effects are mediated by prior beliefs and individual characteristics. Providing information on the health impact of a plant-based diet was most effective for individuals with pre-existing health concerns. The greatest resistance to this information was associated with motivated reasoning around meat consumption: the more meat a participant consumed the less they reported knowing about the relationship between diet and climate before the study, the more resistant they were to new information demonstrating that relationship, the lower their efficacy beliefs around climate change, and the more likely they were to take moral offence at being informed. Our results suggest that while many people are open to dietary change and are responsive to scientific evidence, the largest potential for impact between diet and climate may be in overcoming pre-existing biases associated with sacred values around meat consumption. |
| Keywords: | self efficacy, decit model of science communication, nudge, interventions, environment, agriculture, vegan, vegetarian, diet, climate change, motivated reasoning, cognitive dissonance, strategic ignorance, social norms |
| JEL: | Q54 D91 I12 C90 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13426&r=all |
| By: | Mahdi Ghaemi Asl (Kharazmi University); Giorgio Canarella (University of Nevada, Las Vegas); Stephen M. Miller (University of Nevada, Las Vegas) |
| Abstract: | This paper investigates returns and volatility transmission between SPGCE (index of clean energy stocks), SPGO (index of oil and gas stocks), two non-renewable energy commodities (natural gas and crude oil), and three products of crude oil distillation (heating oil, gasoline, and propane). We estimate a VAR(1) asymmetric BEKK-MGARCH(1,1) using daily U.S. data from March 1, 2010, to February 25, 2020. The empirical findings reveal a vast heterogeneity in spillover patterns of returns, volatilities, and shocks. We employ the empirical results to derive optimal portfolio weights, hedge ratios, and effectiveness measures for SPGCE and SPGO diversified portfolios. We find dynamic diversification advantages of energy commodities, especially heating oil, for energy-related stock markets. We also find that SPGCE and SPGO stocks possess the highest average optimal weight and hedging effectiveness for each other, implying that the positive performance of SPGCE stocks considerably compensates for the negative performance of SPGO stocks. For investors and regulators, the advancement and implementation of clean energy programs and policies, while reducing environmental debt and enhancing “green” growth and sustainable development, provide instruments and strategies to hedge the equity risks inherent in the oil and gas industry. |
| Keywords: | Clean energy stocks, Oil and gas stocks, Asymmetric BEKK, Dynamic Optimal Portfolios. |
| JEL: | Q43 G11 C33 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2020-07&r=all |
| By: | Lorenzo Napolitano; Angelica Sbardella; Davide Consoli; Nicolo Barbieri; Francois Perruchas |
| Abstract: | The objective of this paper is to analyse the relationship between income inequality and environmental innovation. We use a complexity-based algorithm to compute an index of green inventive capacity in a panel of 57 countries over the period 1970–2010. The empirical analysis reveals that, on average, inequality is detrimental to countries’ capacity to engage complex green technologies knowledge bases. Using non-parametric methods allows us to further articulate this general finding and to uncover interesting non-linearities in the relationship between innovation and inequality |
| Keywords: | Complexity; Environmental Innovation; Inequality |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2020-11&r=all |
| By: | Anders Dugstad; Kristine Grimsrud (Statistics Norway); Gorm Kipperberg; Henrik Lindhjem; Ståle Navrud |
| Abstract: | Despite a large stated-preference literature on wind power externalities, few SP studies employ a case-control approach to examine whether people´s acceptance of new wind power developments increases or decreases with exposure to and familiarity with wind turbines. Furthermore, the existing studies are inconclusive on this issue. In a case-control discrete choice experiment we measure the level of acceptance in terms of people´s willingness-to-accept compensation for having future landbased wind power developments in Norway; comparing exposed and non-exposed people’s WTA. We find that exposure lowers acceptance. Furthermore, exposed people are also unwilling to pay as much as non-exposed people to increase general domestic renewable energy production (from all sources), and thus have lower acceptance for such renewable energy policy initiatives. After testing for type of exposure, we argue that the inconclusiveness in the literature of how exposure affects acceptance of wind power developments could be due to the fact that impacts considered differs somewhat across studies. |
| Keywords: | Discrete Choice Experiment; exposure; wind power; willingness-to-accept; societal acceptance; familiarity |
| JEL: | Q48 Q51 Q57 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:933&r=all |
| By: | Silva, Matías; Suazo, Gonzalo |
| Abstract: | Este documento fue elaborado para apoyar las políticas de sustentabilidad del Plan Nacional de Relaves liderado por el Ministerio de Minería del Gobierno de Chile (2019, que busca, entre otras cosas, disminuir y minimizar el impacto de tranques y depósitos de relaves en situación de abandono, así como contribuir a una minería más sostenible en América Latina y el Caribe. El informe técnico se focaliza en estudiar y presentar el estado del arte en el uso de Factores de Emisión (FE) para la estimación de material particulado generado desde fuentes fijas. Se abordan aspectos técnicos, así como la física del problema, discutiendo la aplicabilidad de los FE a tranques de relave en situación de abandono. Si bien los FE permiten estimar la cantidad de material particulado (MP) suspendido que puede generar un depósito en abandono, estos no consideran la química propia del material, por ejemplo, la presencia de metales pesados o metaloides. De igual forma, no evalúa la concentración del MP en puntos particulares de exposición, por lo que el potencial de afectación para la salud humana requiere de información adicional. |
| Keywords: | INDUSTRIA MINERA, MINERIA, DESECHOS INDUSTRIALES, CONTAMINACION ATMOSFERICA, MEDICION, PROTECCION AMBIENTAL, DESARROLLO SOSTENIBLE, MINING INDUSTRY, MINING, INDUSTRIAL WASTES, AIR POLLUTION, MEASUREMENT, ENVIRONMENTAL PROTECTION, SUSTAINABLE DEVELOPMENT |
| Date: | 2020–08–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col039:45891&r=all |
| By: | Pannell, David J.; Pardey, Philip G.; Hurley, Terrence M. |
| Abstract: | In this series of reports, we discuss the opportunities for private incentives to drive greater adoption of new or changed farming practices that generate public benefits. This includes private incentives to farmers, and private incentives to other participants in the agricultural supply chain. We blend theory and practice with an eye to both the economic and environmental risks and rewards involved. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Land Economics/Use, Production Economics |
| Date: | 2020–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:304700&r=all |
| By: | Vogt, Angelika; Hagen, Achim; Eisenack, Klaus |
| Abstract: | Climate policies can target either the demand or the supply of fossil fuels. While demand-side policies have been analyzed in the literature and applied in policy-making, supply-side policies, e.g. deposit policies, are a promising option and a recent research focus. In this paper we study deposit markets for two fuels that differ in emission intensity. We find that, with strategic action on the deposit markets, deposit policies are inefficient due to price manipulations within and between both deposit markets. Regarding the political economy of deposit policies, they generate more welfare for all countries if applied to both fuels as opposed to one or none. Further, for perfectly segmented fuel markets, importing countries do not purchase deposits of a sufficiently clean fuel. If fuels are substitutes and strongly differ in emission intensity, countries do not buy deposits of a relatively clean fuel. Finally, deposit markets can induce countries selling deposits to choose a cleaner fuel mix. |
| Keywords: | Agricultural and Food Policy, Demand and Price Analysis, Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huiawp:304708&r=all |
| By: | Daniel Jeong-Dae Lee (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | As highlighted in Economic and Social Survey 2020, investors and consumers (especially millennials) are demanding businesses to move beyond short-term profit and adopt environmental, social and governance (ESG) standards. Moreover, with growing recognition of climate-related risks as well as low-carbon opportunities, major companies across the world, including in Asia and Pacific, are pricing carbon in their day-to-day operations and to inform investment decisions and long-term strategies. This policy brief takes stock of this recent trend, and explains the main steps to consider in corporate carbon pricing, also known as internal carbon pricing. Such proactive, voluntary measures by businesses are important as governments seek to raise the level of ambition on carbon pricing. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb109&r=all |
| By: | Pannell, David J.; Pardey, Philip G.; Hurley, Terrence M.; Coulter, Jeffrey |
| Abstract: | This is the second in a series of papers concerned with harnessing private incentives to enhance the sustainability of agricultural production. Paper 1 outlines key principles and insights from existing research on the general requirements to achieve changes in agriculture to enhance sustainability. This paper builds on those insights by examining the opportunities to reduce water pollution arising from agriculture, including opportunities for private agribusiness firms to contribute by virtue of their ability to influence the actions of farmers. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Land Economics/Use, Production Economics |
| Date: | 2020–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:304702&r=all |
| By: | Taran Fæhn (Statistics Norway); Gabriel Bachner; Robert Beach; Jean Chateau; Shinichiro Fujimori; Madanmohan Ghosh; Meriem Hamdi-Cherif; Elisa Lanzi; Sergey Paltsev; Toon Vandyck; Bruno Cunha; Rafael Garaffa; Karl Steininger |
| Abstract: | Limiting global warming in line with the goals in the Paris Agreement will require substantial technological and behavioural transformations. This challenge drives many of the current modelling trends. This article undertakes a review of 17 state-of-the-art recursive-dynamic computable general equilibrium (CGE) models and assesses the key methodologies and applied modules they use for representing sectoral energy and emission characteristics and dynamics. The purpose is to provide technical insight into recent advances in the modelling of current and future energy and abatement technologies and how they can be used to make baseline projections and scenarios 20-80 years ahead. Numerical illustrations are provided. In order to represent likely energy system transitions in the decades to come, modern CGE tools have learned from bottom-up studies. Three different approaches to baseline quantification can be distinguished: (a) exploiting bottom-up model characteristics to endogenize responses of technological investment and utilization, (b) relying on external information sources to feed the exogenous parameters and variables of the model, and (c) linking the model with more technology-rich, partial models to obtain bottom-up- and pathwayconsistent parameters. |
| Keywords: | Computable general equilibrium models; Long-term economic projections; Energy; Technological change; Emissions; Greenhouse gases |
| JEL: | C68 O13 O14 O18 Q43 Q54 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:936&r=all |
| By: | Cutter, W. (Pomona College); Pusch, Alexander (Pomona College) |
| Abstract: | Cities throughout the world are experimenting with Low Impact Development (LID) strategies to replace ecosystem services degraded by urbanization. Stormwater management may need both centralized/publicly-managed infrastructure and decentralized provision by landowners. For landowners to participate in these programs they will need some latitude in the choice of techniques and siting. However, these landowner choices will affect the bundle of ecosystem services provided (such as infiltration, aesthetics, pollution filtering, and others) as well as their spatial distribution. We studied the Santa Monica (CA) stormwater regulations that require stormwater management on a large portion of development and redevelopment but allow a significant degree of landowner choice over the method of rainwater management. We use a novel dataset to investigate both the cost of rainwater best management practices (BMPs) and landowner choice of rainwater BMP. We find strong evidence of economies of scale in capital costs for the smaller size ranges of the BMPs in our data, and that property factors such as land use and overall redevelopment project cost affect rainwater BMP costs. In addition, our results are consistent with the hypothesis that property factors such as building density and land value are important factors in the landowner’s choice of rainwater management option. |
| Keywords: | Stormwater, Economies of Scale, BMP choice |
| Date: | 2020–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:clm:pomwps:1015&r=all |
| By: | Loïc Berger; Massimo Marinacci (Bocconi University [Milan, Italy]) |
| Abstract: | We review recent models of choices under uncertainty that have been proposed in the economic literature. In particular, we show how different concepts and methods of economic decision theory can be directly useful for problems in environmental economics. The framework we propose is general and can be applied in many different fields of environmental economics. To illustrate, we provide a simple application in the context of an optimal mitigation policy under climate change. |
| Keywords: | Ambiguity,non-expected utility,model uncertainty,climate change |
| Date: | 2020–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02914088&r=all |
| By: | Bostian, Moriha (Department of Economics, Lewis & Clark College, USA); Lundgren, Tommy (CERE - the Center for Environmental and Resource Economics) |
| Abstract: | This paper provides a brief overview of methods to incorporate ecosystem service values into measures of agricultural total factor productivity, both in theory and in practice. This includes a review of the academic literature, summary of related economic index theory, and comparison of agency guidelines. We consider areas of consensus between the agencies and research literature, as well as open debates surrounding implementation of a standardized ecosystem accounting framework to integrate with existing TFP measures. |
| Keywords: | Ecosystem services; valuation; agricultural TFP |
| JEL: | D24 Q57 |
| Date: | 2020–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2020_014&r=all |
| By: | Daniel L. Mendoza (Division of Respiratory, Critical Care and Occupational Pulmonary Medicine, School of Medicine, University of Utah; Department of Atmospheric Sciences, University of Utah); Cheryl S. Pirozzi (Division of Respiratory, Critical Care and Occupational Pulmonary Medicine, School of Medicine, University of Utah); Erik T. Crosman (Department of Life, Earth, and Environmental Sciences, West Texas A&M University); Theodore G. Liou (Division of Respiratory, Critical Care and Occupational Pulmonary Medicine, School of Medicine, University of Utah; Center for Quantitative Biology, University of Utah); Yue Zhang (Division of Epidemiology, Department of Internal Medicine, University of Utah School of Medicine); Jessica J. Cleeves (Center for Science and Mathematics Education, University of Utah); Stephen C. Bannister (Department of Economics, University of Utah); William R. L. Anderegg (School of Biological Sciences, University of Utah); Robert Paine III (Division of Respiratory, Critical Care and Occupational Pulmonary Medicine, School of Medicine, University of Utah) |
| Abstract: | High air pollution levels are associated with school absences. However, low level pollution impact on individual school absences are under-studied. We modelled PM2.5 and ozone concentrations at 36 schools from July 2015 to June 2018 using data from a dense, research grade regulatory sensor network. We determined exposures and daily absences at each school. We used generalized estimating equations model to retrospectively estimate rate ratios for association between outdoor pollutant concentrations and school absences. We estimated lost school revenue, productivity, and family economic burden. PM2.5 and ozone concentrations and absence rates vary across the School District. Pollution exposure were associated with as high a rate ratio of 1.02 absences per ug/m$^3$ and 1.01 per ppb increase for PM2.5 and ozone, respectively. Significantly, even PM2.5 and ozone exposure below regulatory standards ( |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2007.09230&r=all |
| By: | Rui Almeida (Consultants at the Macroeconomic Policy and Financing for Development Division, UNESCAP); Amaury Cassang (Consultants at the Macroeconomic Policy and Financing for Development Division, UNESCAP); Daniel Lin (Consultants at the Macroeconomic Policy and Financing for Development Division, UNESCAP); Masato Abe (Macroeconomic Policy and Financing for Development Division, UNESCAP) |
| Abstract: | Engaging the private sector in infrastructure financing through public-private partnership (PPP) can contribute significantly to the achievement of the 2030 Agenda for Sustainable Development. However, PPP has yet to realize its potential fully in several Asia-Pacific economies. To promote this blended financing modality, a more conducive environment for PPP need to be ensured by establishing an efficient eco-system in a country. This may include, among others, policy and legal frameworks, institutional arrangements and financial support mechanisms for PPP implementation. This paper examines the findings of a survey conducted among 20 member States of the Infrastructure Financing and Public-Private Partnership Network of Asia and the Pacific and discusses the common strategies and practices adopted by developing countries in Asia and the Pacific regarding PPP systems. The paper also highlights the role of an effective PPP system in the pursuit of Sustainable Development Goals. |
| Keywords: | Asia and the Pacific; Infrastructure financing, Public-private partnerships; Sustainable Development Goals |
| JEL: | G18 G38 F55 H54 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:unt:wpmpdd:wp/20/07&r=all |
| By: | Surender Kumar (Centre for Development Economics, Delhi School of Economics); Shunsuke Managi (Urban Institute & Departments of Civil Engineering,Kyushu University) |
| Abstract: | The precipitous spread of COVID-19 has created a conflict between human health and economic well-being. To contain the spread of its contagious effect, India imposed the stringent lockdown, and then the stringency was relaxed to some extent in its succeeding phases. We measure social benefits of the lockdown in terms of improved air quality in Indian cities by quantifying the effects with city-specific slope coefficients. We find that the containment measures have resulted in improvement in air quality, but it is not uniform across cities and across pollutants. The level of PM2.5 decreases from about 6 to 25 percent in many cities. Moreover, we observe that partial relaxations do not help in resuming economic and social activities. It should also be noted that counter-virus measures could not bring levels of the emissions to WHO standards; it highlights the importance of role of green production and consumption activities. |
| JEL: | Q53 Q52 I18 I15 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:cde:cdewps:312&r=all |
| By: | Koo, Jawoo; Pardey, Philip G. |
| Abstract: | HarvestChoice began in 2006, when detailed and readily accessible data on agriculture, human welfare, and the environment were scarce for Africa South of the Sahara (SSA). Statistics to support agricultural policy and investment decisions in the region were often too coarse—available only at national scale. Since then, technology advances (e.g., remote sensing, geographic information systems, and modeling tools) have enabled rapid data generation. |
| Keywords: | AFRICA SOUTH OF SAHARA, AFRICA, agriculture, technology, data, spatial data, climate change, poverty, resilience, trade, seeds, fertilizers, investment, agricultural technology |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:prnote:1178700048&r=all |
| By: | Monica Maduekwe (Praia, Cabo Verde); Uduak Akpan (SPIDER) Solutions Nigeria, 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:exs:wpaper:20/055&r=all |
| By: | Michael Greenstone; Guojun He; Ruixue Jia; Tong Liu |
| Abstract: | We examine the introduction of automatic air pollution monitoring, which is a central feature of China’s “war on pollution.” Exploiting 654 regression discontinuity designs based on city-level variation in the day that monitoring was automated, we find that reported PM 10 concentrations increased by 35% immediately post–automation and were sustained. City-level variation in underreporting is negatively correlated with income per capita and positively correlated with true pre-automation PM 10 concentrations. Further, automation’s introduction increased online searches for face masks and air filters, suggesting that the biased and imperfect pre-automation information imposed welfare costs by leading to suboptimal purchases of protective goods. |
| JEL: | Q53 Q55 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27502&r=all |
| By: | Jiqiang Wang; Jianfeng Guo; Peng-Fei Dai; Yinpeng Liu; Ying Fan |
| Abstract: | The European Union Emission Trading Scheme is a carbon emission allowance trading system designed by Europe to achieve emission reduction targets. The amount of carbon emission caused by production activities is closely related to the socio-economic environment. Therefore, from the perspective of economic policy uncertainty, this article constructs the GARCH-MIDAS-EUEPU and GARCH-MIDAS-GEPU models for the impact of European and global economic policy uncertainty on carbon price fluctuations. The results show that both European and global economic policy uncertainty will exacerbate the volatility of carbon price returns, with the latter having a stronger impact. Moreover, the volatility of carbon price returns can be forecasted better with the predictor of global economic policy uncertainty. This research can provide some implications for market managers in grasping market trends and helping participants control the risk of fluctuations in carbon allowances. |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2007.10564&r=all |
| By: | Alin Halimatussadiah (Head of Environmental Economics Research Group, Institute for Economic and Social Research, Faculty of Economics and Business – Universitas Indonesia) |
| Abstract: | Indonesia has made substantial progress in adopting the SDGs into national agendas of planning, budgeting and financing. The Government’s commitment was confirmed through the Presidential Decree and the SDGs Roadmap with a concrete mandate to mainstream the Goals into national development frameworks, at both central and subnational levels. Continuous effort in establishing budget tagging system for SDG-related programmes and activities ensures that planning is translated into proper fiscal allocation for prioritized Goals, which also leads to effective public spending. Issues on financing gaps have been addressed through the introduction of innovative financing instruments, such as the issuance of sovereign green sukuk and the establishment of SDG Indonesia One, aimed at leveraging private financing. Despite considerable number of achievements recorded, there is room for improvement, particularly by: reconciling interrelated features of the Goals and targets through policy integration across sector and coordination enhancement among actors; improving the supporting system for better implementation of performance-based budgeting; and upscaling innovative sustainable financing instruments organized by the Government and non-State actors. |
| Keywords: | SDGs, national development planning, budgeting processes, Indonesia |
| JEL: | Q01 O21 O23 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:unt:wpmpdd:wp/20/06&r=all |
| By: | Ziqiao Chen; Giovanni Marin; David Popp; Francesco Vona |
| Abstract: | As nations struggle to restart their economy after COVID-19 lockdowns, calls to include green investments in a pandemic-related stimulus are growing. Yet little research provides evidence of the effectiveness of a green stimulus. We begin by summarizing recent research on the effectiveness of the green portion of the 2009 American Recovery and Reinvestment Act on employment growth. Green investments are most effective in communities whose workers have the appropriate “green” skills. We then provide new evidence on the skills requirements of both green and brown occupations, as well as from occupations at risk of job losses due to COVID-19, to illustrate which workers are most likely to benefit from a pandemic-related green stimulus. We find similarities between some energy sector workers and green jobs, but a poor match between green jobs and occupations at risk due to COVID-19. Finally, we provide suggestive evidence on the potential for job training programs to help ease the transition to a green economy. |
| Keywords: | green subsidies, green stimulus, American Recovery Act, heterogeneous effect, distributional impacts |
| JEL: | E24 E62 H54 H72 Q58 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8419&r=all |
| By: | Daniel J. Wilson |
| Abstract: | Using high-frequency panel data for U.S. counties, I estimate the full dynamic response of COVID-19 cases and deaths to exogenous movements in mobility and weather. I find several important results. First, weather and mobility are highly correlated and thus omitting either factor when studying the COVID-19 effects of the other is likely to result in substantial omitted variable bias. Second, temperature is found to have a negative and significant effect on future COVID-19 cases and deaths, though the estimated effect is sensitive to which measure of mobility is included in the regression. Third, controlling for weather, overall mobility is found to have a large positive effect on subsequent growth in COVID-19 cases and deaths. The effects become significant around 2 weeks ahead and persist through around 8 weeks ahead for cases and around 9 weeks ahead for deaths. The peak impact occurs 4 to 6 weeks ahead for cases and around 8 to 9 weeks ahead for deaths. The effects are largest for mobility measured by time spent away from home and time spent at work, though significant effects also are found for time spent at retail and recreation establishments, at transit stations, at grocery stores and pharmacies, and at parks. Fourth, I find that public health non-pharmaceutical interventions affect future COVID-19 cases and deaths, but that their effects work entirely through, and not independent of, individuals' mobility behavior. Lastly, the dynamic effects of mobility on COVID 19 outcomes are found to be generally similar across counties, though there is evidence of larger effects in counties with high cases per capita and that reduced mobility relatively late. |
| Keywords: | weather; mobility; social distancing; covid-19 |
| Date: | 2020–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:88334&r=all |
| By: | Wadho, Waqar; Hussain, Sadia |
| Abstract: | The empirical evidence suggests that the resource rich countries tend to have poor economic perfor- mance and higher rent seeking. In this paper, we develop a general equilibrium model explaining why natural resources turn out to be a curse in an economy divided into two classes: elite and workers. Our model explains the resource curse in a setup in which governing elite expropriate rents from natural resources which reduces the productive use of these resources. The expected costs and benefits of such rent seeking activities depend on the degree of ethnic polarization which a¤ects the concentration of political power, and on the quality of institutions which constraints rent seeking. The model predicts that in the presence of natural resources and rent seeking, ethnic diversity increases concentration of political power, reduces income per capita and increases income inequality. Moreover, the impact will be higher in economies that depend more on natural resources. |
| Keywords: | Rent seeking,Political power,Natural resource curse,Ethnic diversity |
| JEL: | Q32 D72 O11 O13 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:611&r=all |
| By: | Daniel Chachu; Edward Nketiah-Amponsah |
| Abstract: | The term fiscal resource curse refers to countries' inability to raise taxes from a broad base in the presence of natural resources. We employ a novel instrumental variable strategy to estimate the causal effect of resource revenues on non-resource tax effort by exploiting the so-called 'China shock'. Since its 2001 accession to the World Trade Organization, China's non-renewable resource trade has driven up commodity prices, raising resource revenues among exporting countries. |
| Keywords: | China, infrastructure, Natural resources, Tax, tax effort, Trade |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2020-85&r=all |
| By: | Rosario G. Manasan |
| Abstract: | The Philippine planning and budgeting systems are well placed in terms of their capacity to support the achievement of the Sustainable Development Goals (SDGs) and could serve as a useful reference for other countries. First, all the SDGs can be mapped into the priorities of the Philippines Development Plan (PDP). Greater congruence between the SDG indicators, on the one hand, and the PDP Results Matrices indicators, on the other, improves the integration of SDG implementation and PDP implementation. Second, the considerably improved and fairly strong emphasis on results and performance of the existing government budgeting system provides a solid foundation for linking the annual budget with the PDP and the SDGs so that limited resources are allocated and spent on programmes that achieve the desired societal goals and outcomes. Given the breadth and scope of the SDGs, however, this study supports incipient efforts to put in place an SDG expenditure tagging exercise to assist policy makers in evaluating the effectiveness of the SDG-related programmes of various government agencies and in prioritizing its limited resources. At the same time, it recommends that current efforts towards SDG localization be intensified given that recent Supreme Court ruling on the Mandanas-Garcia IRA petitions which will effectively increase the share of local governments in national taxes. |
| Keywords: | budget reform, medium-term expenditure framework, public expenditure management. SDGs, tax reform |
| JEL: | E62 H50 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:unt:wpmpdd:wp/20/05&r=all |
| By: | Dang, Hai-Anh H.; Trinh, Trong-Anh |
| Abstract: | Despite a growing literature on the impacts of the COVID-19 pandemic, scant evidence currently exists on its impacts on air quality. We offer the first study that provides cross-national evidence on the causal impacts of COVID-19 on air pollution. We assemble a rich database consisting of daily, sub-national level data of air quality for 178 countries before and after the COVID-19 lockdowns, and investigate their impacts on air quality using a Regression Discontinuity Design approach. We find the lockdowns to result in significant decreases in global air pollution. These results are consistent across measures of air quality and data sources and robust to various model specifications. Some limited evidence emerges that countries with a higher share of trade and manufacturing in the economy or with an initially lower level of air pollution witness more reduced air pollution after the lockdowns; but the opposite result holds for countries near the equator. We also find that mobility restrictions following the lockdowns are a possible explanation for improved air quality. |
| Keywords: | COVID-19,air pollution,mobility restriction,RDD |
| JEL: | D00 H00 O13 Q50 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:606&r=all |
| By: | Payen, J.; Lieuw-Kie-Song, M. |
| Abstract: | Employment is a key driver for development as it constitutes a bridge between economic growth and poverty reduction. People and households get out of poverty most often by moving into more productive and decent jobs or improving existing jobs. Placing the aim of achieving full and productive employment at the heart of development policy is therefore critical for reducing and eventually eliminating poverty, reducing inequality and addressing informality. This is also globally recognized with the adoption of Sustainable Development Goal (SDG) 8: “Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.” The European Commission (EC) and the International Labour Organization (ILO) both recognize that, in order to achieve SDG 8, it is critical that full and productive employment be at the heart of development policy. In this regard, the EC and ILO have jointly initiated a project entitled “Strengthening the Impact on Employment of Sectoral and Trade Policies”. This innovative project includes developing methods and capacities to determine the effects of infrastructure investments on employment. This series of project publications aims to capture the tools, methods, and processes developed under this project, as well as the findings from implementing these in the ten partner countries. By doing so, the experience and learning of the project can be disseminated to other countries and partners for their benefit, thus supporting the integration of global and national employment objectives into sectoral and trade policies and consequently supporting the elevation of the global employment agenda and achievement of SDG 8. |
| Keywords: | employment creation, employment policy, rural development |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:995083093402676&r=all |
| By: | Cian O’Donovan (Science Policy Research Unit (SPRU), University of Sussex); Aleksandra Michalec (Science Policy Research Unit (SPRU), University of Sussex); Joshua R. Moon (Science Policy Research Unit (SPRU), University of Sussex) |
| Abstract: | Research framed to address global, grand and societal challenges has brought fresh impetus to calls by funding agencies for transdisciplinary research. Yet the urgency of such calls is not matched by sufficient knowledge of how to foster and maintain the capabilities to do transdisciplinary work. Significant gaps exist in how to cultivate and maintain transdisciplinary methods, practices and the underlying capabilities required to support them. This paper employs a capability approach to construct a realist evaluative framework with which to assess such capabilities. The framework is operationalised through a novel three-stage mixed method procedure which seeks to evaluate transdisciplinary capabilities as they are valued and experienced by researchers themselves. The procedure is tested on a portfolio of five ‘pump-priming’ projects funded by the ESRC Nexus Network. The paper reports a set of transdisciplinary capabilities valued by nexus research participants and found to varying degrees within eeach of the research projects. We find that pump-priming investments are sites of research capability development in three ways; through convening cognitive capabilities; cultivating transgressive capabilities; and maintaining backstage capabilities over durations that extend beyond the beginning and end of individual projects. Furthermore, for researchers, it is the transgressive quality of these capabilities that is most salient. Directing greater attention to these different modes of capability development in pump-priming research programmes may be useful in growing and steering research system capacity towards contemporary and future societal needs. |
| Keywords: | Transdisciplinary research, research evaluation, grand challenges, sustainability, capability approach, bibliometrics |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2020-12&r=all |
| By: | Victor Stephane (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper investigates the impact of natural disasters on social capital. By heterogeneously affecting people in a community, natural disasters create a temporary information asymmetry on their post-disaster income. Using an original dataset collected in rural Ecuador, we provide suggestive evidence that households use this asymmetric information to pretend to be poorer than they actually are, in order to escape from solidarity mechanisms in the aftermath of the shock. The magnitude of this effect decreases with the level of wealth inequality in the community and vanishes in the most unequal communities where bilateral cooperation is rather fostered. |
| Keywords: | Social Capital,Moral Hazard,Asymmetric Information,Volcanic Eruptions,Ecuador |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02901506&r=all |
| By: | Soto, Mauricio; Moszoro, Marian W.; Pico, Julieth |
| Abstract: | Making progress in the SDGs requires substantial additional resources. Concomitant with the reform priorities identified by the United Nations, World Bank, European Union, and other international development institutions, the mission estimates additional spending of 18 percentage points of GDP by 2030—a level higher than the average low-income and developing countries. |
| Keywords: | Nigeria, Sustainable Development Goals (SDGs), Public Finance, Development Economics |
| JEL: | H54 O18 Q01 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101593&r=all |
| By: | ITF |
| Abstract: | This paper reviews opportunities for mitigating greenhouse gas emissions from Argentina’s transport sector. It also identifies the main challenges for that objective, specifically in freight transport. Actions taken at different levels of government are assessed and the impact of policies focused on other priorities - such as lowering logistic costs - is discussed. The paper also highlights what data on transport emissions are available for Argentina and which tools government agencies use for examining them. |
| Date: | 2020–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:75-en&r=all |
| By: | Behrendt, Karl; Paparas, Dimitrios |
| Keywords: | Agribusiness, Agricultural Finance, Crop Production/Industries, Environmental Economics and Policy, Farm Management |
| Date: | 2019–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:haaewp:296494&r=all |
| By: | van Ledden,Mathijs; Tung,Tran Thanh; Nguyen,Dzung Huy; Nguyen,Long Thanh |
| Abstract: | This paper provides a high-level assessment of Vietnam's sea dike system and its prescribed dike safety standards. The assessment estimates that 65 percent of the sea dike system does not meet the safety standards and that about $2 billion in capital investment is necessary to meet the standards, mainly in the Red River Delta. It also shows that current safety standards need finetuning, especially in areas with high risk and growth. This paper acts as a technical background paper to the report 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:9351&r=all |
| By: | Amparado, Mauro Allan Padua (University of Cebu); Saladaga, Mark Keneth A. |
| Abstract: | This study ascertained the impact of the Money from Wastes (Pera sa Basura) Program of a University in Central Visayas, Philippines, under the Department of Environment and Natural Resources’ National Ecosavers Program. This descriptive quantitative study was conducted at the Materials Recovery Facility of a University. On a monthly basis, faculty and students of the 13 academic departments are requested to identify recyclables in their department. These recyclables are temporarily stored in the Materials Recovery Facility (MRF) with 5 compartments: white paper, colored paper, plastic bottles, boxes and tin cans. These items are measured in terms of kilos. These are recorded by the Program CARES Coordinator and submitted to the UCLM CARES Director. The UCLM MRF is an income-generating section of the university. Sales on a weekly basis are recorded after the compartments of the MRF are inspected and weighed. Findings reveal that the total sales from recyclables is 161,211.50 Philippine Pesos. Sales were highest in the months of July, August, October, November, January and February. In the university, midterms examinations are scheduled on August, January and April. Final examinations are scheduled on October, March and May. Based on the sales of recyclables, the researchers have seen an increase of sales during these periods. Test questionnaires, plastic bottles of water and tin cans are the most consumed items. With total sales of 161,211.50 Philippine Pesos, the UCLM MRF supports the scholarship of the university and implies that the one school year sales may support 2 scholars to cover for one year tuition and miscellaneous fees (given that the tuition and miscellaneous fees is 35,000.00 Philippine pesos per semester). The university has sold 14,489.5 kilos of colored paper. This is followed by white paper at 10,997.5 kilos. Boxes ranks third at 5,383 kilos. When data was highlighted as to top six sales per item, it reveals that the months of June, August, November and January were peak seasons for recyclables. Colored paper was basically coming from test papers, test questionnaires and used forms from the departments. On the other hand, sources of white paper were sourced from inter-office communications, memos, school projects and undergraduate theses. Boxes were observed to come from the packaging of equipment and supplies used in offices such as desktop computers, printers, and ink cartridges. This also implies that bigger compartments should be allocated for white paper, colored paper and boxes. At present, the Materials Recovery Facility is considered one of the youngest centers of profit for the university. It continues to monitor the influx of recyclables from the different academic and non-academic departments of the school. Solid Waste Management has been a pressing issue not only for the university but to the entire province of Cebu. With the institution of the Materials Recovery Facility, the researchers have seen improvements in the behavior of faculty, students, staff and parents on waste segregation. The recyclables which they separate from their departments contribute much to the profits of the MRF and supports the Eco Scholarship of the university. Keywords: Solid Waste Management, Materials Recovery Facility, Eco Scholarship, Money from Wastes, Philippines Recommended citation: Amparado, M. A. P. & Saladaga, M. K. A. (2020). Money from Wastes (Pera sa Basura) Program of a University in Central Visayas, Philippines: An Impact Study. Cebu Journal of Business & Accountancy, 2(1), 74-87, 2020. |
| Date: | 2019–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:4tzq2&r=all |
| By: | Shuvojit Banerjee (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | Making consumption more sustainable is particularly important in Asia-Pacific given the dramatic trends being witnessed in the region. The region is expected to be at the forefront of worldwide consumption by 2030, with consumer spending projected to reach $32 trillion and constitute about 42 per cent of global consumption, carrying with it implications for the environment. Nudging can be part of the toolkit to support consumers in making sustainable purchasing decisions. It is particularly attractive because of its ability to predictably change behavior without forbidding any options or without the need to provide economic incentives. Nudges are positive reinforcements, small suggestions, or changes in choice architecture intended to influence the behavior of consumers. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb106&r=all |
| By: | Olivier Durand-Lasserve; Hossa Almutairi; Abdullah AlJraboua; Frederic Murhphy; Shreekar Pradhan; Axel Pierru (King Abdullah Petroleum Studies and Research Center) |
| Keywords: | Energy Market regulation and reform, Energy Policy, Energy Subsidies |
| Date: | 2020–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2020-dp16&r=all |
| By: | Tientip Subhanij (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Masato Abe (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Alberto Isgut (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Nick Freeman (Consultant of the Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | Sustainable infrastructure development through proper and adequate financing is one of the most significant elements impacting the achieving of the Sustainable Development Goals, or SDGs. in Asia and the Pacific. However, significant challenges and risks around the financing of infrastructure projects – many of which are large, complex and sometimes span sovereign borders – often mean that hesitations and bottlenecks occur. Taking stock of the infrastructure financing landscape in the region, this policy brief advocates a strategic shift in mindset to a more efficient and effective use of resources for infrastructure development, focusing on leveraging additional funds from both public and private sectors, through adopting a more holistic approach to infrastructure financing. |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb103&r=all |
| By: | Philippe Bance (UA - Université des Antilles); Angélique Chassy (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université) |
| Abstract: | The Contingent Valuation Method (CVM) is an economic analysis tool used to measure, the utility of producing of public goods, based upon individual's declared preferences. The public decision-maker is thus able to arbitrate between the expenditure to be made. The approach has been deployed in a centralist conceptual plan, leaving little room for citizens in the decision-making process and it has been undermined by the rise in power, notably in Europe, of multi-level governance. The decision-maker is no longer alone in this process and public decision-making must operate on the basis of common views adopted by various levels of government that should also establish much stronger links with the citizen-users of public goods. This article analyzes the operational impact of Citizen Advisory Committees (CAC) as participative tools of CVM to resulting in an effective cooperation between the various public actors and the civil society in public decision-making. |
| Keywords: | public management,citizen participation,multilevel governance,individual preferences,monetarisation,public decision |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02910727&r=all |
| By: | Isiaq O. Oseni (Olabisi Onabanjo University, Ago-Iwoye, Nigeria); Ibrahim A. Adekunle (Olabisi Onabanjo University, Ago-Iwoye, Nigeria) |
| Abstract: | Policy ambiguity in the form of non-directional and non-purposeful use of state resources has made sustainable growth outcomes a mirage in Nigeria. Recent economic crisis prompted the debate on how increased government spending induces sustainable economic growth in Nigeria. This paper examines the validity or otherwise of Wagner’s theory in Nigeria for the realisation of the Sustainable Development Goals (SDGs) from 1980 through 2017. Using time-series data on real gross domestic product, total government expenditure, money supply and domestic investment and adopting the two-step Engle and Granger estimation procedure, result shows that increased government spending significantly predicts variations in real gross domestic product and thus leaned empirical credence to Wagner’s hypothesis as an essential concept for the attainment of Sustainable Development Goals in Nigeria. This paper recommended that the government should exhaust all possible options to increase expenditure in order to realise sustainable growth in Nigeria. |
| Keywords: | Government Expenditure, Economic Growth, Wagner law, Granger Causality |
| JEL: | E62 O11 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/006&r=all |