nep-env New Economics Papers
on Environmental Economics
Issue of 2020‒09‒07
63 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Tightening EU ETS targets in line with the European Green Deal: Impacts on the decarbonization of the EU power sector By Pietzcker, Robert Carl; Osorio, Sebastian; Rodrigues, Renato
  2. Climate change: policies to manage its macroeconomic and financial effects By Joaquín Bernal-Ramírez; José Antonio Ocampo
  3. Climate Change and Inequality: How to Solve These Problems Jointly? By Grigoryev, Leonid; Makarov, Igor; Sokolova, Anna; Pavlyushina, Victoria; Stepanov, Ilya
  4. Access to Green Financing: A Case Study of Mexico By Sanchez, Melissa; Karimi, Matin; Elmalawany, Omar
  5. Achieving mitigation and adaptation to climate change through coffee agroforestry: a choice experiment study in Costa Rica By Anais Lamour; Subervie Julie
  6. Does the quality of political institutions matter for the effectiveness of environmental taxes? An empirical analysis on CO2 emissions By Donatella Baiardi; Simona Scabrosetti
  7. The impact of climate-related fiscal and financial policies on carbon emissions in G20 countries: A panel quantile regression approach By D'Orazio, Paola; Dirks, Maximilian W.
  8. Technical gap, trade partners and product mix evolution: how trading with China affects global CO2 emissions By Banie Naser Outchiri; Jie He
  9. Climate Change and Human Choice: Measuring the Nudging By Byambasuren Lkhagvadorj; Javzandolgor Purevsuren; Amgalan Bazargarid
  10. Foreign Direct Investment, Domestic Investment and Green Growth in Nigeria: Any Spillovers? By Adejumo, Akintoye; Asongu, Simplice
  11. Modeling the impacts of agricultural support policies on emissions from agriculture By Laborde Debucquet, David; Mamun, Abdullah; Martin, Will; Piñeiro, Valeria; Vos, Rob
  13. Seismic shifts from regulations: Spatial trade-offs in marine mammals and the value of information from hydrocarbon seismic surveying By Maarten J. Punt; Brooks A. Kaiser
  14. Cost, Congestion, and Emissions Benefits of Centralized Freight Routing and Efficiencies in Alternative Fuel Freight Modes By Ioannou, Petros; Giuliano, Genevieve; Dessouky, Maged; Chen, Pengfei; Dexter, Sue
  15. Air Pollution Quotas and the Dynamics of Internal Skilled Migration in Chinese Cities By Yu, Bo; Lee, Wang-Sheng; Rafiq, Shuddhasattwa
  16. Enhancing Governance for Environmental Sustainability in Sub-Saharan Africa By Asongu, Simplice; Odhiambo, Nicholas
  17. Vehicle Tax Design and Car Purchase Choices: A Case Study of Ireland By L. (Lisa B.) Ryan; Ivan Petrov
  18. Communicating resourcefully: a natural field experiment on environmental framing and cognitive dissonance in going paperless By Gosnell, Greer
  19. Environmental Justice By Julia M. Puaschunder
  20. Trade and Biodiversity By Cecilia Bellora; Jean-Christophe Bureau; Basak Bayramoglu; Estelle Gozlan; Sébastien Jean
  21. Fuels and Fuel Technologies for Powering 21st Century Passenger and Freight Rail: Simulation-Based Case Studies in a U.S. Context By Isaac, Raphael S
  22. The role of meso-spaces for the sustainable transformation of food systems. By Alessandro Passero; Filippo Randelli
  23. The Displacement Impacts of Wind Power Electricity Generation: Costly Lessons from Ontario By Pejman Bahramian; Glenn Jenkins; Frank Milne
  24. Ambiguity Aversion and Individual Adaptation to Climate Change: Evidence from a Farmer Survey in Northeastern Thailand By Yoshioka, Nagisa; Yokoo, Hide-Fumi; Saengavut, Voravee; Bumrungkit, Siraprapa
  25. The myth of global sustainability : Environmental limits and (de)growth in the time of SDGs By Arsel, M.
  26. Trade in Trash: A Political Economy Approach By James H. Cassing; Ngo Van Long
  27. Berkeley Blues; Ford Community Corps Partnership: Integrating Environmental Ethic, Bioethics and the Ethics of Emerging Technology into a Comprehensive Leadership Philosophy. A Regional Study, Detroit Michigan. (Covid, Edition) By Rashid, Muhammad Mustafa
  28. A New Concept of Circular Model of Management for Achieving Sustainable Success and Growth By Raj, Keerthan; Aithal, Sreeramana
  29. Trade liberalization and SO2 emissions: Firm-level evidence from China's WTO entry By Li, Lei; Löschel, Andreas; Pei, Jiansuo; Sturm, Bodo; Yu, Anqi
  30. Preferences for Renewable Home Heating: A Choice Experiment Study of Heat Pump System in Ireland By Tensay Meles; L. (Lisa B.) Ryan; Sanghamitra Mukherjee
  31. Do farmers prefer increasing, decreasing, or stable payments in Agri-Environmental Schemes? By Douadia Bougherara; Margaux Lapierre; Raphaële Préget; Alexandre Sauquet
  32. A conceptual framework for measuring value creating Corporate Social Responsibility By Meurer, Tobias; Volkmann, Michael
  33. The economics of low emission zones By Börjesson, Maria; Bastian, Anne; Eliasson, Jonas
  34. UNDERSTANDING INNOVATION ECOSYSTEMS: A BIOMIMETIC APPROACH By Bibiana Volkmer Martins; Kadígia Faccin; Eliandro Espindula; Alsones Balestrin
  35. Formalizing land rights can reduce forest loss: Experimental evidence from Benin By Liam Wren-Lewis; Luis Becerra-Valbuena; Kenneth Houngbedji
  36. Disaster impacts and financing: Local insights from the Philippines By Arlan Brucal; Viktor Roezer; Denyse S. Dookie; Rebecca Byrnes; Majah-Leah V. Ravago; Faye Cruz; Gemma Narisma
  37. A History of Pricing Pollution (Or, Why Pigouvian Taxes are not Necessarily Pigouvian) By H. Spencer Banzhaf
  38. Distributional Effects of Emission Pricing in a Carbon-Intensive Economy: The Case of Poland By Antosiewicz, Marek; Fuentes, J. Rodrigo; Lewandowski, Piotr; Witajewski-Baltvilks, Jan
  39. Determinanten und Messung des landwirtschaftlichen Einkommens aus der Biogasanlage und Stellung der Farmer in der Biomasseenergie-Wertschöpfungskette By Pascal Grouiez; Alexandre Berthe; Mathilde Fautras; Sabina Issehnane
  40. Lessons Learned from Collaborative Transportation Planning for Sea Level Rise in California By Lubell, Mark; Pia Vantaggiato, Francesca
  41. The fragility of the copper demand for the Chilean economy. Is the increasing demand of China and India of Peruvian copper a threat for Chile? By Loreto Bieritz; Anke Mönnig
  42. Power System Implications of Subsidy Removal, Regional Electricity Trade, and Carbon Constraints in MENA Economies By Timilsina,Govinda R.; Deluque Curiel,Ilka Fabiana
  43. Environmentally Adjusted Multifactor Productivity Growth for the Canadian Manufacturing Sector By Gu, Wulong; Willox, Michael; Hussain , Jakir
  44. Generalized linear competition: From pass-through to policy By Genakos, C.; Grey, F.; Ritz, R.
  45. On the Impact of Trade in a Common Property Renewable Resource Oligopoly By Hassan Benchekroun; Amrita Ray Chaudhuri; Dina Tasneem
  46. COVID-19 Prevention and Air Pollution in the Absence of a Lockdown By Hung-Hao Chang; Chad Meyerhoefer; Feng-An Yang
  47. Impact of Pollution from Coal on the Anemic Status of Children and Women: Evidence from India By Datt, Gaurav; Maitra, Pushkar; Menon, Nidhiya; Ray, Ranjan; Dey, Sagnik; Chowdhury, Sourangsu
  48. Big Data links from Climate to Commodity Production Forecasts and Risk Management By Paulina Concha Larrauri; Upmanu Lall
  49. How the “Triple Helix” Can Influence the General Climate for Entrepreneurs in Brazil By Olivier Coussi; Kadígia Faccin
  50. Do Household Characteristics Really Matter? A Meta-Analysis on the Determinants of Households’ Energy-Efficiency Investments By Henningsen, Geraldine; Wiese, Catharina
  51. Co-bénéfices environnementaux et sanitaires de l’action publique : it’s (also) the economy, stupid ! By Patrice Geoffron; Benoît Leguet
  52. De la Responsabilité sociale des organisations à l’achat public responsable : entre contraintes et performances. Compte rendu de journée d’étude By Olivier Gayot
  53. Electrification and Cooking Fuel Choice in Rural India By Ridhima Gupta; Martino Pelli
  54. Dust Bowl Migrants: Identifying an Archetype By Richard Hornbeck
  55. Agents of change: Women in top management and corporate environmental performance By Kirsten Burkhardt; Pascal Nguyen; Evelyne Poincelot
  56. How Hurricanes Sweep Up Housing Markets: Evidence from Florida By Joshua S. Graff Zivin; Yanjun Liao; Yann Panassie
  57. Implementing Precaution in Benefit-Cost Analysis : The Case of Deep Seabed Mining By Krutilla,Kerry Mace; Good,David Henning; Toman,Michael A.; Arin,Tijen
  58. Economic and environmental consequences of the ECJ genome editing judgement in agriculture By Gocht, Alexander; Consmüller, Nicola; Thom, Ferike; Grethe, Harald
  59. Using Machine Learning to Assess Yield Impacts of Crop Rotation : Combining Satellite and Statistical Data for Ukraine By Deininger,Klaus W.; Ali,Daniel Ayalew; Kussul,Nataliia; Lavreniuk,Mykola; Nivievskyi,Oleg
  60. Co-Benefits and Regulatory Impact Analysis: Theory and Evidence from Federal Air Quality Regulations By Joseph E. Aldy; Matthew Kotchen; Mary F. Evans; Meredith Fowlie; Arik Levinson; Karen Palmer
  61. Combining uncertainty with electricity and gas sector coupling -- is it worth the effort? By Iegor Riepin; Thomas M\"obius; Felix M\"usgens
  62. Sustainable Development Goals (SDGs) and employment policies in the Philippines By Yap, Josef T.; Tabuga, Aubrey D.; Mina, Christian D.
  63. Un análisis de la competencia en la gestión urbana del agua By Joaquín López Vallés; Lara Tobías Peña; Cristina Vallejo Gil

  1. By: Pietzcker, Robert Carl; Osorio, Sebastian; Rodrigues, Renato
    Abstract: The EU Green Deal calls for climate neutrality by 2050 and 2030 emission reductions of 50-55% vs. 1990. Achieving these reductions requires a substantial tightening of the EU emissions trading system (EU-ETS). This paper explores how the power sector would have to change in reaction to a tighter EU ETS target, and analyses the technological and economic implications. To cover the major ETS sectors, we combine a detailed power sector model with a marginal-abatement cost curve representation of industry emission abatement. We find that tightening the target would speed up the transformation by 3-15 years for different parts of the electricity system, with renewables contributing two-thirds of the electricity in 2030, EU-wide coal use almost completely phased-out by 2035 instead of 2050, and zero electricity generation emissions reached by 2050. Carbon prices within the EU ETS would more than double to 60€/tCO2 in 2030, reducing cumulated power sector emissions from 2020-2055 by 45% compared to a scenario with the current target. This transformation would come at limited costs: total discounted power system costs would only increase by 5%. We test our findings against a number of sensitivities: increased electricity demand, which might arise from sector coupling, increases deployment of wind and solar and prolongs gas usage. Not allowing transmission expansion beyond 2020 levels shifts investments from wind to PV, hydrogen and batteries, and increases total system costs by 3%. Finally, unavailability of fossil carbon capture and storage (CCS) or further nuclear investments does not impact results, while unavailability of bioenergy-based CCS (BECCS) has a small impact (3%) on emissions.
    Keywords: Power sector decarbonization,EU Emission Trading System (ETS),European Green Deal,Renewable Energy,Carbon capture and storage (CCS),Electricity Sector
    JEL: Q4 C61
    Date: 2020
  2. By: Joaquín Bernal-Ramírez (Banco de la República de Colombia); José Antonio Ocampo (Banco de la República de Colombia)
    Abstract: It is increasingly recognized that climate change generates major macroeconomic and financial risks. There are physical risks associated to the disasters generated by hydrometeorological events and to gradual but persistent changes in temperatures that have structural impacts on economic activity, productivity and incomes. Additionally, the process of adjustment towards a lower-carbon economy, prompted by changes in climate-related policies, technological disruptions and changes in consumer preferences, generates transition risks. After a brief analysis of the macroeconomic, fiscal and tax policies to manage these risks, this paper concentrates on: (i) how financial policies can help improve transparency and climate-related risk disclosure in financial institutions’ balance sheets and assets prices, particularly with appropriate prudential regulation and supervision; and (ii) how those risks could be taken into account in monetary policy and central banks’ balance sheets and operations. The paper ends with some reflections on the Covid-19 pandemic and the will for a “green” recovery. **** ABSTRACT: Cada vez se reconoce con mayor claridad que el cambio climático genera importantes riesgos macroeconómicos y financieros. Existen riesgos físicos asociados a los desastres generados por eventos hidrometeorológicos y a cambios graduales pero persistentes en las temperaturas que tienen un impacto estructural en la actividad económica, la productividad y los ingresos. Además, el proceso de ajuste hacia una economía con bajas emisiones de carbono, inducido por cambios en las políticas relacionadas con el clima, cambios tecnológicos y cambios en las preferencias de los consumidores, genera riesgos de transición. Después de un breve análisis de las políticas macroeconómicas, fiscales y fiscales para gestionar estos riesgos, este documento se concentra en: (i) la forma como las políticas financieras pueden ayudar a mejorar la transparencia y la información de los riesgos relacionados con el clima en los balances de las instituciones financieras y los precios de los activos, particularmente con una política de regulación y supervisión prudencial apropiada; y (ii) cómo se podrían tener en cuenta esos riesgos en la política monetaria y en los balances y operaciones de los bancos centrales. El artículo termina con algunas reflexiones sobre la pandemia de Covid-19 y la voluntad de una recuperación “verde”.
    Keywords: Climate change, carbon tax, financial policy, monetary policy, central Banks, cambio climático, impuesto al carbono, política financiera, política monetaria, bancos centrales.
    JEL: E50 G18 H23 Q54
    Date: 2020–08
  3. By: Grigoryev, Leonid; Makarov, Igor; Sokolova, Anna; Pavlyushina, Victoria; Stepanov, Ilya
    Abstract: In recent decades, economic growth in developing economies and the growth of the middle class lead to a surge in energy consumption and greenhouse gas emissions. Within the framework of the United Nations (UN) sustainable development goals established in 2015, the solution to poverty and inequality thus comes into conflict with climate change mitigation. The existing international system of climate regulation does not address this contradiction. Today, global climate governance relies on estimates of aggregate emissions by countries without considering their level of development and the distribution of emissions among income groups within each country. Emissions from production are being monitored, while consumption-related emissions, albeit known to experts, rarely underlie decision-making. Meanwhile, income distribution has a higher impact on consumption-based emissions in comparison to production-based ones. Decisions on emissions regulation are made at the national level by countries with different development agendas in which climate change mitigation often gets less priority in comparison to other socio-economic objectives. This paper proposes a set of principles and specific mechanisms that can link climate change and inequality within a single policy framework. First, we highlight the need to modify the global emission monitoring system for the sake of accounting for emissions from consumption (rather than production) by income groups. Second, we suggest the introduction of a new redistribution system to address climate change which would include the imposition of a “fine” on households with the highest levels of emissions. Such a system follows the principles of progressive taxation but supports climate mitigation objectives and should be understood not as taxation of high incomes but rather as payment for a negative externality. Third, we outline the need to adjust climate finance criteria; priority should be given to projects designed to reduce carbon-intensive consumption by social groups entering the middle class, or to help the poorest population groups adapt to climate change. A special role in the implementation of these principles may belong to BRICS (Brazil, Russia, India, China and South Africa), which may view this as an opportunity for a proactive transition to inclusive, low-carbon development.
    Keywords: climate change; inequality; energy consumption; greenhouse gas emissions; sustainable development
    JEL: Q56
    Date: 2020
  4. By: Sanchez, Melissa; Karimi, Matin; Elmalawany, Omar
    Abstract: With a growing population of one hundred twenty-six million (World Bank, 2018), Mexico is accountable for one hundred thirty-one thousand metric tons of CO2 emissions annually, which makes the country 13th largest producer of fossil-fuel CO2 emissions (Boden et al., 2017). Moreover, Mexico's plastic waste is also predicted to be twenty million tons annually (Lira, 2019). This shows that an increasing level of CO2 emission and plastic waste will impede the achievement of three vital Sustainable Development Goals (SDGs) such as Climate Action (SDG13), Life on Land (SDG15), and Life under the Sea (SDG14). To achieve these three essential SGDs, Mexico's government should encourage and support green startups that are introducing environmentally friendly alternatives for the existing means of production and consumption.
    Keywords: Green Finance, Green Startup, Green Startup in Mexico, Mexico Green Initiatives, Seed capital, Crowdfunding, Green Startup Incubators, Green Startup Accelerators
    JEL: G15 G21 G28 G32 O44 Q01 Q21 Q28
    Date: 2020–01–12
  5. 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
  6. By: Donatella Baiardi (Università di Parma); Simona Scabrosetti (Università di Pavia and Dondena Università Bocconi)
    Abstract: We empirically investigate the existence of the Environmental Kuznets Curve (EKC) focusing on a sample of 39 countries in the period 1996-2014. Using an interaction model, we also analyze whether the effectiveness of environmental taxes in reducing CO2 emissions depends on the quality of political institutions. Our results show that the inverted U-shaped relationship between environmental stress and economic development holds independently of the quality of political institu- tions and environment related taxes. Moreover, an increase in the environmental tax revenue has the expected reducing effect on environmental degradation only in countries with more consolidated democratic institutions, higher civil society par- ticipation and less corrupt governments. Our findings also show that the effects on environmental stress of revenue neutral shifts to different tax sources depend not only on the quality of political institutions, but also on the kind of externality the policymaker aims at correcting.
    Keywords: environmental tax revenue, environmental tax mix, environmental Kuznets Curve, CO2 emissions.
    JEL: H23 P16 Q50 Q53 Q38
    Date: 2020–08
  7. By: D'Orazio, Paola; Dirks, Maximilian W.
    Abstract: This paper investigates the impact of climate-related fiscal and financial policies on CO2 emissions implemented by G20 countries in the period 2000-2017. The analysis show that the impact of various policy instruments is heterogeneous across the carbon emissions distribution. In particular, the effect of a green investment bank is significant across all percentiles and contributes to improving environmental quality. Moreover, our findings suggest that what matters is not the financial sector size per se or the amount of credit devoted to the private sector, but rather the type of finance. This suggests that policymakers and researchers should devote more effort to calibrate their policy instruments and develop an efficient policy mix to achieve climate change mitigation, especially in countries with high carbon emissions.
    Keywords: mitigation strategies,financial regulation,green investment banks,carbon dioxide emissions,climate risks,green financey
    JEL: E58 E62
    Date: 2020
  8. By: Banie Naser Outchiri (Université de Sherbrooke); Jie He (Université de Sherbrooke)
    Abstract: Based on a highly disaggregated database (1033 products, 181 partners) that we have built in physical terms, we investigate the drivers of China’s environmental trade cost (measured by CO2 emissions) from 1995 to 2014. To do this, we first used the “material balance” method to estimate China’s environmental trade cost. Then, we applied a new procedure to identify the drivers of China’s environmental trade cost that contributes to a better understanding of the trade’s role in environmental issues. Finally, we employed additive index decomposition analysis to estimate the contribution of each driver and their statistical accuracy. The results show that China faces a significant environmental cost as a result of its trade integration. Over the period, China’s environmental trade cost first was constant and relatively low from 1995 to 2001, then increased sharply from 2001 to 2008 before falling in 2009 and restarting unstable growth between 2010 and 2014. The decomposition results show that the increase in China’s environmental trade cost is explained by the fact that China’s technical catch-up is no longer able to offset the foreign demand effect and the product mix effect of exports. This is mainly due to the sharp increase in foreign demand for Chinese products and the fact that China’s export structure is becoming dirty mainly due to China-North trade patterns. There are some evidences that dirty production has slowly shifted from rich countries (especially North) to China, and clean production has moved in the opposite way. This has become more important after China’s entry into the World Trade Organization (WTO) in 2001, more specifically since 2004. Therefore, our results are better explained by the pollution haven hypothesis.
    Keywords: Carbon intensity, Emissions embodied in trade, Product level physical database, Material balance method, Index decomposition analysis.
    JEL: F18 O13 Q56 Q54
    Date: 2020–08
  9. By: Byambasuren Lkhagvadorj (University of the Humanities, Mongolia); Javzandolgor Purevsuren (University of the Humanities, Mongolia); Amgalan Bazargarid (University of the Humanities, Mongolia)
    Abstract: The purpose of this study was to define how climate change is changing in response to positive and negative human behavior. Climate change, in general, refers to changes that take place over a period of tens of thousands of years, involving a particular region or part of the world without human intervention. Climate change takes many forms, depending on the region and the industry in which it operates. The effects of global warming, drinking water shortages, endangered species, and extinction have begun to affect the world's attention and daily lives. And the Nudge effect has become widespread as people's tendency to change their choices has spread. In the last decade, however, climate change has accelerated due to human activities. Since 2008, the effects of the Nudge have had a profound effect on the lives of powerful people. The word nudge means to push lightly or gently stab into the ribs, especially with an elbow. The biggest example is people making smart and healthy choices to reduce greenhouse gas emissions. Choosing the right food can reduce food waste. Greenhouse gas emissions vary from the food we eat and the way we process it. We estimated multiple regression model for CO2 emissions, GDP growth, energy consumption and factors of human behavior about climate changing data from 1959 to 2018. We found that compared to previous years, greenhouse gas emissions were 4.2 billion square meters less than in previous years. This is a very important result of our research, and shows that the global response to climate change since 1992 has been effective. The use of electric magnes, becoming a vegetarian, riding a bicycle, and becoming a minimalist are the result of Nudge effect. By choosing to be a vegetarian, the level of CO2 emissions from food is greatly reduced. The fact that greenhouse gas emissions from food waste are equivalent to greenhouse gas emissions from electric vehicles, so the Nudge effect suggests that the results are positive.
    Keywords: Nudge theory, CO2 emission, world warming, make decision
    Date: 2020–06
  10. By: Adejumo, Akintoye; Asongu, Simplice
    Abstract: Globally, investments in physical and human capital have been identified to foster real economic growth and development in any economy. Investments, which could be domestic or foreign, have been established in the literature as either complements or substitutes in varying scenarios. While domestic investments bring about endogenous growth processes, foreign investment, though may be exogenous to growth, has been identified to bring about productivity and ecological spillovers. In view of these competing–conflicting perspectives, this chapter examines the differential impacts of domestic and foreign investments on green growth in Nigeria during the period 1970-2017. The empirical evidence is based on Auto-regressive Distributed Lag (ARDL) and Granger causality estimates. Also, the study articulates the prospects for growth sustainability via domestic or foreign investments in Nigeria. The results show that domestic investment increases CO2 emissions in the short run while foreign investment decreases CO2 emissions in the long run. When the dataset is decomposed into three sub-samples in the light of cycles of investments within the trend analysis, findings of the third sub-sample (i.e. 2001-2017) reveal that both types of investments decrease CO2 emissions in the long run while only domestic investment has a negative effect on CO2 emissions in the short run. This study therefore concludes that as short-run distortions even out in the long-run, FDI and domestic investments has prospects for sustainable development in Nigeria through green growth.
    Keywords: Investments; Productivity; Sustainability; Growth
    JEL: E23 F21 F30 O16 O55
    Date: 2019–01
  11. By: Laborde Debucquet, David; Mamun, Abdullah; Martin, Will; Piñeiro, Valeria; Vos, Rob
    Abstract: To understand the impacts of support programs on global emissions, this paper considers the impacts of domestic subsidies, price distortions at the border, and investments in emission-reducing technologies on global greenhouse gas (GHG) emissions from agriculture. In a step towards a full evaluation of the impacts, it uses a counterfactual global model scenario showing how much emissions from agricultural production would change if agricultural support were abolished worldwide. The analysis indicates that, without subsidies paid directly to farmers, output of some emission-intensive activities and agricultural emissions would be smaller. Without agricultural trade protection, however, emissions would be higher. This is partly because protection reduces global demand more than it increases global agricultural supply, and partly because some countries that currently tax agriculture have high emission intensities. Policies that directly reduce emission intensities yield much larger reductions in emissions than those that reduce emission intensities by increasing overall productivity because overall productivity growth creates a rebound effect by reducing product prices and expanding output. A key challenge is designing policy reforms that effectively reduce emissions without jeopardizing other key goals such as improving nutrition and reducing poverty. While the scenario analysis in this paper does not propose any particular policy reform, it does provide an important building block towards a full understanding the impacts of repurposed agricultural support measures on mitigation of greenhouse gas emissions and adaptation to climate change. That full analysis is being undertaken in subsequent work, which will also take account of land-use change and alternative forms of agricultural policy support to align objectives of food security, farmers’ income security, production efficiency and resilience, and environmental protection.
    Keywords: WORLD; agricultural policies; policies; modelling; models; agriculture; greenhouse gas emissions; subsidies; OECD; climate change; land use; agricultural production; MIRAGRODEP; agricultural incentives
    Date: 2020
  12. By: ArpitaAmarnani
    Abstract: Green bonds are fixed income securities whose proceeds are used for environmental friendly projects. They were first issued by World Bank and since have gained popularity especially during last five years. However, in the absence of a standard metrics to assess the ‘greenness’ or the impact of the money invested there appears to be scepticism about their long term survival in the global financial markets. An improvement in the risk return profile of these bonds with the help of policy makers could help the sustainability of these bond. Key Words: Green Bonds, sustainable finance, Environmental friendly investments, Risk management Policy
    Date: 2020–06
  13. By: Maarten J. Punt (Circular Economy and Social Entrepreneurship, Windesheim Honours College, Windesheim, The Netherlands); Brooks A. Kaiser (Department of Sociology, Environmental and Business Economics, University of Southern Denmark)
    Abstract: Seismic surveys can increase hydrocarbon deposit information, lowering subsequent expected costs of hydrocarbon exploration. Survey noise, however, can interfere with marine mammals and fishes, reducing fitness. Ice-covered Arctic waters temporally constrain both surveying and marine mammal species; damage mitigation requires temporal and spatial planning. The survey noise externality is stronger than that for drilling (Erbe, 2012); there is additional cost to marine species’ habitat versus drilling alone. We develop a spatially explicit bio-economic and Value-of-Information (VOI) model examining these tradeoffs and illustrate it for oil exploration decisions off the Western Greenlandic coast. We use cost-effectiveness to identify implicit thresholds for sound habitat quality conservation as a function of regulatory choices that have different impacts under different assumptions about the relative spatial values of marine mammal habitat maintenance.
    Keywords: Value of Information (VOI); seismic surveys; marine mammals; marine habitat; marine noise pollution; hydrocarbon exploration;Arctic oil and gas exploration; evaluation of regulatory programs; spatial bio-economic modelling
    JEL: D83 Q35 Q53 Q57
    Date: 2019–03
  14. By: Ioannou, Petros; Giuliano, Genevieve; Dessouky, Maged; Chen, Pengfei; Dexter, Sue
    Abstract: International trade continues to increase, with container trade growing at a 9.5% annual rate worldwide and at a 6% annual rate in the United States. Container ships are also getting bigger to meet this growing demand. As a result, cargo is concentrated into the largest ports, which intensifies bottlenecks on the road networks surrounding these ports. Thus, logistics companies are faced with increasing complexity in their operations and increasing traffic congestion that adds costs, as well as greenhouse gas emissions and local air pollution. The transition to zero emission truck technology could add further complexity, requiring companies to plan for electric trucks’ shorter ranges and longer refueling times. Researchers at the University of Southern California developed a centrally coordinated freight routing system and ran several simulations to minimize the social costs of freight transportation, also accounting for adoption of electric trucks. The researchers also interviewed several individuals with responsibility for trucking operations in the Los Angeles region to better understand the implementation issues of a centrally coordinated freight routing system. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage
    Keywords: Engineering, Alternate fuels, Electric vehicle charging, Electric vehicles, Fleet management, Freight traffic, Routing, Trucks, Zero emission vehicles
    Date: 2020–08–01
  15. By: Yu, Bo (Deakin University); Lee, Wang-Sheng (Deakin University); Rafiq, Shuddhasattwa (Deakin University)
    Abstract: This paper examines the role of a sulphur dioxide (SO2) emissions quota introduced as part of China's 11th Five-Year Plan on internal movements of high-skilled labour across Chinese prefecture cities. Using data on migration flows calculated through changes in Hukou status, this study suggests that a 1,000 tons increase in the SO2 emissions reduction quota leads on average to approximately a 1.5 percentage points increase in high-skilled net outmigration. Compared to the largest prefectures, this regulation effect is twice as large in the smaller regulated prefectures. A possible mechanism could be that the implementation of SO2 quotas decreases relative labour demand in polluting industries in the regulated cities in the short term, thereby resulting in sectoral transitions from dirty-to-clean industries as well as skilled net outmigration flows. However, this net outmigration trend fades in the long term due to stabilisation in air quality. Our findings help contribute to a broader understanding of the effects of environmental policies on internal labour migration and labour force dynamics.
    Keywords: air pollution, China, emissions quota, environmental policy, internal migration, sulphur dioxide
    JEL: J61 O15 Q53 Q58
    Date: 2020–07
  16. By: Asongu, Simplice; Odhiambo, Nicholas
    Abstract: This study assesses whether improving governance standards affects environmental quality in 44 countries in sub-Saharan Africa for the period 2000-2012. The empirical evidence is based on Generalised Method of Moments. Bundled and unbundled governance dynamics are used notably: (i) political governance (consisting of political stability and “voice & accountability”); (ii) economic governance (entailing government effectiveness and regulation quality), (iii) institutional governance (represented by the rule of law and corruption-control) and (iv) general governance (encompassing political, economic and institutional governance dynamics). The following hypotheses are tested: (i) Hypothesis 1 (Improving political governance is negatively related to CO2 emissions); (ii) Hypothesis 2 (Increasing economic governance is negatively related to CO2 emissions) and (iii) Hypothesis 3 (Enhancing institutional governance is negatively related to CO2 emissions. Results of the tested hypotheses show that: the validity of Hypothesis 3 cannot be determined based on the results; Hypothesis 2 is not valid while Hypothesis 1 is partially not valid. The main policy implication is that governance standards need to be further improved in order for government quality to generate the expected unfavorable effects on CO2 emissions.
    Keywords: CO2 emissions; Governance; Economic development; Sustainable development; Africa
    JEL: C52 O38 O40 O55
    Date: 2019–01
  17. By: L. (Lisa B.) Ryan; Ivan Petrov
    Abstract: This paper utilises a difference-in-differences model to study the impact of a vehicle tax reform on purchasing choices over a period of 10 years. In line with many other European countries, on the 1st of July 2008 the motor taxation regime in the Republic of Ireland was reformed to try and stem rising CO2 emissions from the passenger car fleet. To achieve this, both vehicle purchase and circulation taxes switched from an engine capacity basis to a CO2 emissions rating per kilometre basis. The aim of this study is to quantify the effectiveness of this (and subsequent) vehicle policy changes at achieving this goal. Using a difference in differences quasi-experimental design, we attempt to recreate the missing counterfactual (in the absence of the policy change(s)) of vehicle purchasing patterns in Ireland using the trend in UK new passenger car emissions over the same period. The findings suggest that the initial taxation policy change reduced average rated CO2 emissions from new passenger cars by between 8 to 11 g CO2/km. Some subsequent policy changes, such as the introduction of a scrappage scheme in 2010 also had an impact at stimulating the purchase of lower-emitting vehicles. This effect however was achieved by a substantial switch towards diesel powered vehicles, with other consequences for the environment, and a significant drop in tax revenue for the exchequer.
    Keywords: Vehicle taxes; Externalities; Difference-in-differences models; Passenger cars; CO2 emissions
    Date: 2019–06
  18. By: Gosnell, Greer
    Abstract: In a large-scale natural field experiment comprising 38,654 customers of a renewable energy supplier in the United Kingdom, we randomize environmental information and dissonance-inducing messaging to promote an active switch from paper to online billing. We find that environmental information and imagery is ineffective in inducing behavior change. Interestingly, the dissonance-inducing messaging weakly improves uptake by 1.2 percentage points among our main sample but backfires among a subsample of individuals with doctoral educations, decreasing uptake by 6.2 percentage points relative to a control group. Contrary to the majority of the literature on gender and environmental behavior, females in our sample are less likely to switch to paperless billing.
    Keywords: Natural field experiment; message framing; cognitive dissonance; information provision; imagery; resource use; paperless billing; ES/K006576/1
    JEL: D12 D83 L21 Q29
    Date: 2018–12–01
  19. By: Julia M. Puaschunder (The New School, Department of Economics, Schwartz Center for Economic Policy Analysis, New York USA)
    Abstract: Mapping Climate Justice proposes a 3-dimensional environmental justice approach to share economic benefits and the burden of climate change right, just and fair around the globe. Scientific data is backed by ethical imperatives. Gross Domestic Product (GDP) gains and losses of a warming globe are captured to be distributed unequal around the world. The ethical climatorial imperative demands for an equalization of the gains of climate change around the globe in order to offset losses incurred due to climate change (Kant 1783/1993; Puaschunder 2017b, c; Rawls 1971). First, climate justice within a country should pay tribute to the fact that low- and high-income households carry the same burden proportional to their disposable income, for instance, enabled through a progressive carbon taxation, consumption tax to curb harmful behavior and/or corporate inheritance tax to reap benefits of past wealth accumulation that may have caused climate change (Puaschunder 2017c). Secondly, fair climate change change burden sharing between countries ensures those countries benefiting more from a warmer environment also bear a higher responsibility regarding climate change mitigation and adaptation efforts (Puaschunder 2019). Thirdly, climate justice over time is proposed in an innovative climate change burden sharing bonds strategy, which distributes the benefits and burdens of a warming earth Pareto-optimal among generations (Puaschunder 2016a). All these recommendations are aimed at sharing the burden but also the benefits of climate change within society in an economically efficient, legally equitable and practically feasible way now and also between generations.
    Keywords: Agriculture, Climate Change, Climate Change Gains, Climate Change Losses, Climate Justice, Industry, Macroeconomic Modelling, Service, Taxation, United States, World
    Date: 2020–04
  20. By: Cecilia Bellora (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Jean-Christophe Bureau (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Basak Bayramoglu (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Estelle Gozlan (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sébastien Jean (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: International trade has a direct impact on EU biodiversity, imported invasive species and pathogens, being an example. Trade also impacts global biodiversity, for instance through the ‘virtual' water, land, and deforestation contained in EU imports. Economic theory shows that trade with countries that fail to protect a renewable resource can be detrimental for all. Protecting global biodiversity calls for a variety of instruments, at the EU border as well as in the provisions of preferential agreements. The EU already includes biodiversity-re lated non-trade provisions in trade agreements, but these provisions are not legally binding and hardly effective. This is partly explained by the complexity of the issues posed by biodiversity: since there is no simple synthetic indicator, policy instruments are difficult to enforce. However, an effort to specify measurable and verifiable commitments is needed; more binding mechanisms, along with transparent and automatic sanctions in case of non-compliance should be considered.
    Keywords: International trade,Biodiversity
    Date: 2020–06
  21. By: Isaac, Raphael S
    Abstract: The last century brought a shift in rail propulsion from the (typically) coal-powered steam engine to a combination of the diesel-electric locomotive and the electrified locomotive running under electrified overhead lines. While, no doubt, an advance over the earlier technology, the two incumbent technologies are not without their shortcomings. In the current era, rapid technological developments and increased concerns about climate change have also spurred interest away from the internal combustion engine and the use of fossil fuels in various applications. These same technologies hold promise in a rail context, a mode of transportation that relies on a smaller number of more centralized operators. With the tremendous investment of time, cost, and other resources that can go into a pilot experiment of a fuel technology and, often, related regulatory processes, it makes sense to determine the key candidates for such pilots. A major goal of this work is to help industry and government narrow down the key technologies, in terms of cost, viability, and environmental impacts, and simultaneously identify the challenges that may be encountered by a given technology that otherwise appears to hold significant promise. This study focuses on a U.S. context, and on the period between 2022 and 2038. Passenger and freight rail routes and systems were examined, each with different characteristics, via simulations of a single rail trip, A general environmental analysis was also performed on freight switcher locomotive activity. The fuels examined included diesel, natural gas, Fischer-Tropsch diesel, hydrogen, and, in a passenger rail and switcher context, diesel and hydrogen powertrains paired with batteries to take in regenerative braking energy. The study finds cost reductions with both natural gas and (natural gas-derived) Fischer-Tropsch diesel, but with limited environmental benefits. Hydrogen via fuel cell has significant promise to reduce GHG and criteria pollutant emissions. That technology’s costs, both fuel and equipment, are highly uncertain; however, the study finds that, with lower bound projected costs, it could be competitive with diesel-electric costs; in the case of passenger rail, hybridization with batteries is also compelling. Hybridized hydrogen also was found to demonstrate a clear environmental benefit in switcher locomotive applications.
    Keywords: Engineering, Physical Sciences and Mathematics, fuel, passenger rail, freight rail, hydrogen
    Date: 2020–01–01
  22. By: Alessandro Passero; Filippo Randelli
    Abstract: Faced with increasing risks from climate change, food systems will need to transition away from dominant industrial paradigms and move towards a more sustainable way of producing, distributing, and consuming food. One solution or one side alone though might not have the desired systemic change or might not capture the full complexity of food systems. To go beyond two known criticisms of local food sustainable initiatives, i.e. to be rather small and to be developed outside policy frameworks and/or in stark opposition to current food systems, in this paper we argue to look at new meso-spaces of network relations at local level where community members, professionals, and governments get together to share knowledge, deliberate, and collectively devise place-based strategies to address complex food systems issues. To completely understand these spaces, this article provides a conceptual framework of analysis combining ideas from environmental governance, grassroots innovations, and diverse economies.
    Keywords: food systems, sustainability transitions, governance, grassroots innovations, diverse economies
    JEL: R11 O13 O44
    Date: 2020
  23. By: Pejman Bahramian (Department of Economics, Queen's University); Glenn Jenkins; Frank Milne (Queen's University)
    Abstract: The displacement impacts of wind power generation on other generation technologies are estimated for Ontario. In addition, their annual financial benefits, costs, and internationalstakeholder impacts are measured. For every 100 MWh generated, almost 53 MWh of gas output and 23 MWh of hydro output is displaced, and 19 MWh of power is exported. Ontario loses 826.42 million USD annually from having wind power generation in the system, while the US gains 7.50 million USD through electricity exported from Ontario. Wind power generation has produced an estimated 108.98 million USD in reducing CO2 emissions in the US and Ontario through displacing thermal generation. Comparing the environmental benefits with the net cost to consumers shows the promotion of wind power generation to be largely a waste of Ontario’s resources.
    Keywords: wind power, thermal displacement, CO2 emissions, stakeholder analysis
    JEL: D61 F18 F64 H23 H25 H43
    Date: 2020–07
  24. By: Yoshioka, Nagisa; Yokoo, Hide-Fumi; Saengavut, Voravee; Bumrungkit, Siraprapa
    Abstract: Understanding the triggers of individual adaptation behavior is critical for empowering those who are highly vulnerable to climate change. This study explores the effect of ambiguity aversion on adaptation behaviors in the context of climate change. We conduct a field survey on 230 rice farmers in northeastern Thailand to examine the association between the elicited ambiguity aversion and the implementation of climate change adaptation. We find that ambiguity aversion does not encourage farmers’ adaptation behaviors and can even discourage the uptake of adaptation strategies. The role of ambiguity aversion varies depending on the characteristics of the adaptation strategy: Ambiguity-averse farmers are less likely to adopt adaptation strategies that entail shifts from the status quo. A deliberate approach is needed to understand farmers’ adaptation behaviors outside the laboratory setting and to reduce ambiguity in the results concerning adaptation to increasing climate risk.
    Keywords: ambiguity aversion, climate change adaptation, Thailand, weather index insurance
    JEL: O13 Q12 Q54
    Date: 2020–08
  25. By: Arsel, M.
    Abstract: The elevation of sustainability from being one of the more peripheral goals in the MDGs to titular status in the SDGs could be interpreted as a sign that the international development sector has finally recognized the gravity of the ecological challenge facing humanity. Similarly, the geographic and conceptual shift from the MDGs’ focus on the developing world to SDGs’ global framing could be read as an acknowledgement that sustainability is not a problem that needs to be tackled ‘out there’ but systemic in nature. Nevertheless, the paper argues that the SDGs are unlikely to bring about the necessary transformations as long as the primacy of economic growth is not challenged. This cannot be achieved by simply recognizing the validity of environmental limits and adapting a degrowth position. It is also necessary to recognize that transformation to sustainability is inherently a conflictual process.
    Keywords: Sustainable Development Goals, limits, degrowth, environmental conflict, Earthrise
    Date: 2020–08–20
  26. By: James H. Cassing; Ngo Van Long
    Abstract: We study how the opportunity to trade in trash might influence the equilibrium outcome when the tax on the externality is determined by a political economy process. In our model, individuals have heterogeneous preferences for environmental quality, and there is a leakage when funds are transferred from the pressure groups to the politicians. When hard-core environmentalists and capitalists are organized interest groups while moderate environmentalists are not organized, we find that the politically chosen tax on the externality is below the optimal Pigouvian level. The opportunity to export waste in unlimited quantities, but at a price, is not the environmentalists' panacea and does not eliminate political social tension and suboptimal results. Nous étudions comment l'opportunité d'exporter des déchets pourrait influencer le résultat de l'équilibre lorsque la taxe sur l'externalité est déterminée par un processus d'économie politique. Dans notre modèle, les individus ont des préférences hétérogènes pour la qualité de l'environnement, et il y a une fuite lorsque les fonds sont transférés des groupes de pression aux politiciens. Lorsque les environnementalistes et les capitalistes purs et durs sont des groupes d'intérêts organisés alors que les environnementalistes modérés ne sont pas organisés, nous constatons que la taxe politiquement choisie sur l'externalité est inférieure au niveau pigouvien optimal. La possibilité d'exporter des déchets en quantités illimitées, mais à un prix, n'est pas la panacée des écologistes et n'élimine pas les tensions politiques sociales et les résultats sous-optimaux.
    Keywords: Trade in Trash,Interest Groups,Externalities,Environmental Lobby,Political Economy,Trade and Environment, Commerce des déchets,Groupes d'intérêt,Externalité,Lobby environnemental,Économie politique,Commerce et environnement
    JEL: F18 D72
    Date: 2020–08–17
  27. By: Rashid, Muhammad Mustafa
    Abstract: The following project was conducted in partnership with University of Detroit Mercy and Ford Community Corps. Multiple non-profits were approached to make this project possible such as; ERACCE, Detroit Audubon, Detroit International Wild-Life Refuge, Belle Isle. The non-profit ERACCE has provided the criteria of analyzing power in the organizations that are at risk of environmental violations or have had environmental violations. Furthermore, the non-profit has asked for a comparison of power between non-profits working within the sector, such as Detroit Audubon, Detroit International Wild Life Refuge and Detroiters Working for Environmental Justice and the business sector. Hence, this is where ERACCE believes the gap in power to be and hence, environmental injustice and satisfying the proposals need to impact the community. To this end they have provided a sampling of questions that the interview/research should answer. The project has also been written to enhance Michigan’s competitive advantage in; conservation, environmental stewardship, civil rights, industrial innovation, and entrepreneurship as put forth by the Environmental Justice Workgroup in 2018. Furthermore, the rationale that has been provided is the increase in both the private sector and public sector awareness towards sustainability and push towards higher levels of sustainability by CEO’s. Two Nobel Laureates have been awarded a joint Nobel Peace Prize in integrating technological and environmental advances into economic theory. His Holiness Pope Francis wrote an encyclical towards integrating environmental ethics into religious faith followed by an effort with Notre Dame and Oxford to establish a center to focus on matters of ecology. UN Sustainable goals have been established and work has been done to map out the frontier of sustainable technologies. Furthermore, during the course of the year long projection March 19th the state of Michigan entered into a lock-down due to the pandemic termed Covid-19 and the project and scope were modified to reflect this change. The research confirms the hypothesis that there is an imbalance of power between the business community and the community involved in the work of environmental injustice issues.
    Keywords: Ford Community Corps, Environmental Ethics, Bioethics, Ethics of Emerging Tech’, Leadership, UN Sustainable Goals, Long-run Macroeconomics, Nobel Prize 2018.
    JEL: E6 H7 I0 J0 K2 L0 M10 M14 M21 N80 N82 O3 Q51 Q57 Q58 R10
    Date: 2019–03–19
  28. By: Raj, Keerthan; Aithal, Sreeramana
    Abstract: According to the International Institute for Sustainable Development (IISD), sustainable development has been defined in many ways, and it states that: “Sustainable development is a development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” We have seen a lot of focus on sustainable development starting from the initiative of the United Nations which has made all nations focus on Sustainable Goals to be achieved by 2030, to large conglomerates and small business enterprises likewise focussing on sustainable business practices, which if well planned would yield success and growth. In light of the global challenges faced in relation to environmental, economic and social resources sustainable development leading to sustainable success and growth calls for a significant rethinking in the management of resources within the, and external to the organization. In this paper, we propound the furthering of a circular economy concept to management as ‘circular model of management’. Borrowed from the concept of circular economy, a circular economy (as against a linear economy) is an economic system aimed at minimizing waste and making the most of resources. Moving towards a circular economy delivers benefits such as reducing pressure on resources, increases competitiveness, stimulates innovation and boosts growth. This study is developed through extensive work in subsistence communities (base of the pyramid customers) in emerging markets. A circular economy promotes social, environmental, economic and overall restorative and regenerative capabilities, similarly, a circular model of management will as envisaged promote regenerative and restorative capability in the organization which will ensure sustainable growth and success by means of ensuring the reduction of leakage of resources to the minimum and applicability to the maximum.
    Keywords: Base of the pyramid, Circular economy, Circular model of management, Model, Sustainability
    JEL: M1 M10
    Date: 2020–01–11
  29. 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
  30. By: Tensay Meles; L. (Lisa B.) Ryan; Sanghamitra Mukherjee
    Abstract: Renewable sources of home heating like heat pump systems are expected to play a vital role in mitigating the adverse effects of carbon-intensive heating systems. Compared to conventional heating systems, heat pump systems are more energy efficient, have low maintenance and operational costs and provide reliable and environmentally friendly home heating. Despite those advantages, the uptake of heat pumps has been low among the Irish population and little is known about the factors that affect their adoption. This paper uses a discrete choice experiment approach to investigate preferences for heat pumps in the residential sector based on nationally representative household survey data from Ireland. We analyse the choice data using a mixed logit model and estimate the marginal willingness to pay for bill savings, environmentally sustainable, installation hassles and increase in home comfort using both models in preferences space and in willingness to pay (WTP) space. Our results show that upfront cost, bill savings, environmental sustainability and installation hassle significantly influence household uptake of heat pumps. The estimated results also reveal the presence of heterogeneous preferences. Furthermore, the results show that households are willing to pay for heat pumps; however, the values might not be large enough to cover the higher upfront costs of, for example, a ground source heat pump. Overall, the study highlights that policy makers should consider the various financial and non-financial factors that influence adoption and heterogeneity in preferences in designing policy intervention aimed at increasing the uptake of heat pumps.
    Keywords: Heat-pump system; Choice experiment; Mixed logit model; Willingness to pay
    Date: 2019–06
  31. 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
  32. By: Meurer, Tobias; Volkmann, Michael
    Abstract: The increasing public awareness of business related impacts on environmental and social well-being, be it positive or negative, are nowadays key drivers of corporate success. Internal and external business environments exert pressure and force transparency as well as responsible action in terms of resolving environmental and social impacts. In line with this, Porter and Kramer regard business behaviour that addresses societal needs and challenges, as the "new way to achieve economic success". However, whereas some companies "remain trapped in an out-dated approach to value creation" and restrict their CSR commitment to the compliance with governmental regulation, others proactively address stakeholder needs. By addressing these needs, companies can benefit from grasping the opportunity of enhanced cost efficiency and lowered risk or gaining competitive advantages through establishing unique value propositions, in a way that meets stakeholder demands. Apart from that, CSR performance can be seen as powerful tool to successfully influence stakeholder perceptions in terms of reputation, and thus an exceptional source of value creation. In addition to this, organisations can profit from win-win-win situations related to syncretic value creation by means of partnering with stakeholders. (...)
    Keywords: CSR,Measuring Corporate Social Responsibility,Value creating,Corporate Social Responsibility,Wertschöpfung
    Date: 2020
  33. By: Börjesson, Maria (Swedish National Road & Transport Research Institute (VTI)); Bastian, Anne (City of Stockholm); Eliasson, Jonas (Linköping University)
    Abstract: This paper provides two micro-economic models that derive the social cost of a low emission zone (LEZ) for light vehicles. We apply the models to a proposed LEZ for light vehicles in Stockholm, which would prohibit diesel cars of Euro 5 or lower and gasoline cars of Euro 4 or lower in the inner city (25 km2 ). The first model is based on how an increase in user cost impacts traffic volumes in the inner city. This rather conventional user cost calculation of drivers’ loss requires however some strong assumptions. The second model shows that drivers’ losses can be calculated based on price changes observed on the used car market. Our empirical results indicate that the second model yields a twice as large welfare loss as the first. The forecasted benefits of the LEZ consist primarily of air quality improvements leading to health benefits. The empirical results must be interpreted with caution, but we find that the social benefit of air quality improvements is less than a tenth of the social cost.
    Keywords: Dieselgate; Low emission zones; Environmental zones; Cost-benefit analysis; Car market
    JEL: D61 H54 R41 R48
    Date: 2020–08–28
  34. By: Bibiana Volkmer Martins (UNISINOS - Universidade do Vale do Rio dos Sinos); Kadígia Faccin (UNISINOS - Universidade do Vale do Rio dos Sinos); Eliandro Espindula; Alsones Balestrin (UNISINOS - Universidade do Vale do Rio dos Sinos)
    Abstract: This essay seeks in the original concepts of ecosystems derived from Biology, to expand the knowledge of the innovation ecosystems field, from Biomimetics. Using this approach, it was possible to offer a set of original findings and answer some criticisms in the management literature. Among the current criticisms is that there is no difference between the approach of innovation systems, for that we approach the origin of the term "eco" and learn that an innovation ecosystem is formed by agents and economic relations (biotic elements), as well as non-economic parts, such as technology, knowledge, laws, culture, etc. (abiotic elements). In other words, an innovation system deals only with the "biotic" part, while the study of ecosystems becomes more complex. Another current criticism refers to the limits of the phenomenon for management studies. From biomimetics, we learn that the limit of an ecosystem is given geographically (physical space) and must understand the identification of the different set of actors it comprises (biotic) and how they interact with the non-economic (abiotic) elements in that space. The mainstream has also proposed some ecosystem life cycle assessments and we propose that dynamics of roles and forms of action evolve according to the life cycle of the ecosystem, which follows a process of co-evolution, and we also discovered what guarantees can build, maintain or shatter na innovation ecosystem. And finally, we emphasize that Innovation Ecosystems can be created, but they need forms of governance to guarantee their evolution, as a way to face criticisms about the impossibility of creating innovation ecosystems in different spaces.
    Abstract: Cet essai cherche dans les concepts originaux des écosystèmes issus de la Biologie, à approfondir La connaissance du domaine des écosystèmes d'innovation, à partir de la Biomimétique. En utilisant cette approche, il a été possible de proposer un ensemble de résultats originaux et de répondre à certaines critiques dans La littérature de gestion. Parmi les critiques actuelles, il n'y a pas de différence entre l'approche des systèmes d'innovation, car nous abordons l'origine du terme «éco» et apprenons qu'un écosystème d'innovation est formé d'agents et de relations économiques (éléments biotiques), ainsi que parties non économiques, telles que la technologie, les connaissances, les lois, la culture, etc. (éléments abiotiques). En d'autres termes, un système d'innovation ne traite que de la partie «biotique», tandis que l'étude des écosystèmes devient plus complexe. Une autre critique actuelle fait référence aux limites du phénomène pour les études de gestion. De la biomimétique, nous apprenons que la limite d'un écosystème est donnée géographiquement (espace physique) et nous devons comprendre l'identification des différents ensembles d'acteurs qu'il comprend (biotique) et comment ils interagissent avec les éléments non économiques (abiotiques) de cet espace. . Le courant dominant a également proposé des évaluations du cycle de vie de l'écosystème et nous proposons que la dynamique des rôles et dês formes d'action évolue en fonction du cycle de vie de l'écosystème, qui suit un processus de co-évolution, et nous avons également découvert quelles garanties peuvent construire, maintenir ou briser un écosystème d'innovation. Enfin, nous soulignons que des écosystèmes d'innovation peuvent être créés, mais ils ont besoin de formes de gouvernance pour garantir leur évolution, afin de faire face aux critiques concernant l'impossibilité de créer des écosystèmes d'innovation dans différents espaces.
    Date: 2019
  35. By: Liam Wren-Lewis (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Luis Becerra-Valbuena (INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Kenneth Houngbedji (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - CNRS - Centre National de la Recherche Scientifique, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Many countries are formalizing customary land rights systems with the aim of improving agricultural productivity and facilitating community forest management. This paper evaluates the impact on tree cover loss of the first randomized control trial of such a program. Around 70,000 landholdings were demarcated and registered in randomly chosen villages in Benin, a country with a high rate of deforestation driven by demand for agricultural land. We estimate that the program reduced the area of forest loss in treated villages, with no evidence of anticipatory deforestation or negative spillovers to other areas. Surveys indicate that possible mechanisms include an increase in tenure security and an improvement in the effectiveness of community forest management. Overall, our results suggest that formalizing customary land rights in rural areas can be an effective way to reduce forest loss while improving agricultural investments.
    Keywords: deforestation,Community Forest Management,agricultural investments
    Date: 2020–06
  36. By: Arlan Brucal (The Grantham Research Institute on Climate Change and the Environment (GRICCE)); Viktor Roezer (The Grantham Research Institute on Climate Change and the Environment (GRICCE)); Denyse S. Dookie (The Grantham Research Institute on Climate Change and the Environment (GRICCE)); Rebecca Byrnes (The Grantham Research Institute on Climate Change and the Environment (GRICCE)); Majah-Leah V. Ravago (Economics Department, Ateneo de Manila University); Faye Cruz (Manila Observatory); Gemma Narisma (Manila Observatory and Physics Department, Ateneo de Manila University)
    Abstract: The Philippines is a country with high exposure to natural hazards and with limited resources for dealing with them. It is therefore vital that available funding for disaster preparedness and relief is allocated based on accurate forecasts and evidence. Disaster Risk Managers play an integral role in the delivery of disaster preparedness and relief. A 2016–17 survey of Disaster Risk Managers identified important differences in how Managers perceive risk and their levels of preparedness across the country in light of differing storm impacts since 2009. Pre-disaster preparedness receives less funding than post-disaster relief. Greater financing for preparedness, based on an improved understanding of Disaster Risk Managers’ perceptions and needs and better communication of future climate risk, is needed in order to help vulnerable communities more effectively before a disaster occurs.
    Keywords: Disaster risk management, local governance, Philippines, hydrometeorological hazards
    JEL: Q54 Q58 H84
    Date: 2020–08
  37. By: H. Spencer Banzhaf
    Abstract: The standard history of modern environmental economics often views it as an application of A.C. Pigou's theory of externalities, refined over the decades and applied to environmental problems in the 1960s, when the first detailed pro-posals for pricing pollution were outlined by Allen Kneese, Thomas Crocker, John Dales, and others. However, the historical literature has noted problems with this narrative, including a 30-year gap in discussions of such applications and few actual citations to Pigou. This paper offers a simple explanation for this puzzle: Namely, pollution pricing is not (necessarily) Pigouvian. It argues that the early applied literature on the topic was rooted more in questions about common property resources and increasing returns from developing natural re-sources. Both topics were treated by broad literatures by the 1960s, including distinctly American traditions not particularly associated with Pigou.
    JEL: B2 H23 Q2 Q5
    Date: 2020–08
  38. By: Antosiewicz, Marek (Institute for Structural Research (IBS)); Fuentes, J. Rodrigo (University of Chile); Lewandowski, Piotr (Institute for Structural Research (IBS)); Witajewski-Baltvilks, Jan (Institute for Structural Research (IBS))
    Abstract: In this paper, we assess the distributional impact of introducing a carbon tax in Poland. We apply a two-step simulation procedure. First, we evaluate the economy-wide effects with a dynamic general equilibrium model. Second, we use a microsimulation model based on household budget survey data to assess the effects on various income groups and on inequality. We introduce a new adjustment channel related to employment changes, which is qualitatively different from price and behavioural effects, and is quantitatively important. We nd that the overall distributional effect of a carbon tax is largely driven by how the revenue is spent: distributing the revenues from a carbon tax as lump-sum transfers to households reduces income inequality, while spending the revenues on a reduction of labour taxation increases inequality. These results could be relevant for other coal-producing countries, such as South Africa, Germany, or Australia.
    Keywords: climate policy, carbon tax, distributional effect, microsimulation, general equilibrium, employment
    JEL: H23 P18 O15
    Date: 2020–07
  39. By: Pascal Grouiez (LADYSS - Laboratoire Dynamiques Sociales et Recomposition des Espaces - UP1 - Université Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique, UP - Université de Paris); Alexandre Berthe (LIRIS - Laboratoire interdisciplinaire de recherche en innovations sociétales - UR2 - Université de Rennes 2 - UNIV-RENNES - Université de Rennes); Mathilde Fautras (LADYSS - Laboratoire Dynamiques Sociales et Recomposition des Espaces - UP1 - Université Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique - UP - Université de Paris, UP - Université de Paris); Sabina Issehnane (LIED (UMR_8236) - Laboratoire Interdisciplinaire des Energies de Demain - CNRS - Centre National de la Recherche Scientifique - UP - Université de Paris, UP - Université de Paris)
    Abstract: With more than 700 biogas plants, the "biomass-energy" industry has been structured in France over the last ten years with the support of public policies, based on a variety of economic models for biogas plants. 53 semi-structured interviews with farmers in the Grand Est, Ile-de-France and New Aquitaine regions and 40 interviews with institutional stakeholders have been led, that allowed to identifiy four income strategies implemented by farmers that are all economic models of biogas production. This result makes it possible to investigate the future of the on-farm biogas plants in the context of the ongoing reconfiguration of the industry and in particular the emergence of industrial biogas plants. On the strength of a prospective analysis, the report highlights the risk of an homogenisation of on-farm biogas plants, which increasing in power-size could eventually lead to a switch of the industry to an industrial (non-agricultural) model in which farmers would be simple suppliers of substrates to be methanised.
    Abstract: Comptant aujourd'hui plus de 700 unités de méthanisation agricoles, la filière "biomasse-énergie" se structure en France depuis une dizaine d'années à la faveur du soutien des politiques publiques, en s'appuyant sur une diversité de modèles économiques des méthaniseurs. Ce rapport identifie quatre stratégies de revenu mises en place par les agriculteurs qui sont autant de modèles économiques d'unités de méthanisation en s'appuyant sur 53 entretiens semi-directifs menés auprès d'agriculteurs du Grand-Est, de l'Ile-de-France et de la Nouvelle Aquitaine et 40 entretiens conduits auprès d'acteurs institutionnels. Ce résultat permet de questionner le devenir des différents modèles d'unité de méthanisation agricole dans le contexte de reconfiguration en cours de la filière et notamment de l'émergence d'unités de méthanisation industrielles. Sur la base d'une analyse prospective, le rapport met en évidence le risque d'une homogénéisation des unités de méthanisation agricoles. Ces dernières augmentant en taille, elles pourraient à termes conduire au basculement des unités de méthanisation vers un modèle industriel (non-agricole) dans lequel les agriculteurs seraient de simples apporteurs de substrats à méthaniser.
    Keywords: Biogas production,On-farm biogas Plant,Farm-scale biogas plant,Bioeconomy,Green Energy,Industrial Policy,Ecological Transition,Global value chain,Unité agricole de méthanisation,Bioéconomy,Transition écologique,Mix energétique,Filière
    Date: 2020–07–01
  40. By: Lubell, Mark; Pia Vantaggiato, Francesca
    Abstract: Many of California’s critical transportation infrastructure assets along the coast are vulnerable to sea level rise (Figure 1). Climate adaptation generally and sea level rise adaption specifically entail land-use and transportation decisions that affect multiple jurisdictional levels. These decisions involve many stakeholders, including local, regional, county, state and federal agencies, non-governmental organizations, and individual citizens. Adapting transportation infrastructure to sea level rise requires collaboration among these actors. This is a challenging task given that different agencies and stakeholders have different mandates and priorities, which imply different ways of looking at the common issue of adaptation to sea level rise. Researchers at the University of California, Davis examined four case studies of governance processes formed around transportation assets threatened by sea level rise: a state highway along the San Francisco Bay, a coastal highway and railroad in San Diego County, and the Port of Long Beach. The researchers interviewed stakeholders, consulted policy documents, and organized a workshop with agency stakeholders to identify lessons learned and develop practical suggestions for facilitating collaboration to address sea level rise.
    Keywords: Engineering
    Date: 2020–08–01
  41. By: Loreto Bieritz (GWS - Institute of Economic Structures Research); Anke Mönnig (GWS - Institute of Economic Structures Research)
    Abstract: As one of the world leading copper producers, Chile`s economy is strongly focused on copper: 14% of its GDP is based on the mining sector, 30% of the country’s total investments (including FDI) and around 45% of Chilean exports originate from copper. Hence, the dependency of Chile on this metal is high. The fact that governmental spending is directly linked to the projected copper price from the copper reference price committee emphasizes the importance of the price for Chile`s economic development. For this purpose the ministry of finance convenes ten national copper experts to a panel and asks them for a copper price projection in constant prices for the next decade. By taking the average of the given projections corrected by the highest and lowest projection, the committee obtains the projected copper price. Due to the current international trade conflicts in between China and the USA the copper demand slowed down especially be-cause China is one of the world`s biggest copper importers. In the two years before the trade conflicts began, an optimistic mood in the world copper market prevailed as world-wide demand and prices rose constantly. In a mid-term perspective, copper demand can be expected to remain at a high and stable level since climate change with its growing environmental demands nourishes copper demand through an increasing market for electromobility and renewable energy. In comparison to combustion engines or conventional energy, these new technologies require a far higher amount of copper (Uken (2011), Warren Centre (2016)). For Chile, these tendencies are promising. But China has started to enlarge its copper purchase from Peru (Fajardo (2017), Ortiz (2017)). The imported Peruvian copper misses the purity of the Chilean one but Chinas refinery ca-pacities gives the country the possibility to import the cheaper one and refine it by them-selves (Campodónico (2016), El Comercio (2017)). The reflexion of the present scenario analysis is based on the question if Chile`s northern neighbour could become a serious competitor. To answer this question, Chilean exports are reduced and the macroeconomic effects for Chile are analysed. For this projection the forecasting and simulation model COFORCE is applied.
    Keywords: Chilean mining sector, Sustainable Mining, Copper, Chilean economy
    JEL: C5 O2 Q3
    Date: 2020
  42. By: Timilsina,Govinda R.; Deluque Curiel,Ilka Fabiana
    Abstract: This study analyzes impacts on the power sector in the Middle East and North Africa region of three policies: removal of fuel subsidies, cross-border electricity trade, and reduction of carbon dioxide emissions in line with commitments under the Paris Agreement. The analysis uses a power system planning model that minimizes the total electricity supply cost over 2018?35 by satisfying specified technical, economic, environmental, and policy constraints. The study shows that the region would save between US$26.3 billion and US$27.5 billion, measured in 2018 prices, by removing subsidies of natural gas used for power generation. It would save US$83.6 billion to US$90.9 billion through cross-border electricity trade. The two policies together would yield a reduction of 10 percent in cumulative power sector carbon dioxide emissions in the region, with a net cost savings of US$111 billion. If a carbon constraining policy is considered to achieve the same level of reduction of emissions, the cost of the power system would increase by US$97 billion. The study also reveals that the benefits of subsidy removal would be higher in the presence of cross-border trade, and the benefits of cross-border trade would be higher in the absence of fuel subsidies.
    Keywords: International Trade and Trade Rules,Energy Policies&Economics,Energy and Environment,Energy Demand,Energy and Mining,Oil Refining&Gas Industry,Power&Energy Conversion
    Date: 2020–06–23
  43. By: Gu, Wulong; Willox, Michael; Hussain , Jakir
    Abstract: The need to measure both the desirable outputs (goods and services) and the undesirable outputs (emissions of greenhouse gases [GHGs] and criteria air contaminants [CACs]) from economic activity is becoming increasingly important as economic performance and environmental performance become ever more intertwined. Standard measures of multifactor productivity (MFP) growth provide insights into rising standards of living and the performance of economies, but they may be misleading if only desirable outputs are considered. This study presents estimates of environmentally adjusted multifactor productivity (EAMFP) growth using a new comprehensive database. This database contains information on GHG and CAC emissions, as well as on the production activities of Canadian manufacturers.
    Keywords: Consumer goods and services, Economic performance, Greenhouse gas emissions, Multifactor Productivity, Outputs, Productivity growth
    Date: 2019–05–09
  44. By: Genakos, C.; Grey, F.; Ritz, R.
    Abstract: Economic policy and shifts in input market prices often have significant effects on the marginal costs of firms and can prompt strategic responses that make their impact hard to predict. We introduce “generalized linear competition” (GLC), a new model that nests many existing theories of imperfect competition. We show how firm-level cost pass-through is a sufficient statistic to calculate the impact of a cost shift on an individual firm’s profits. GLC sidesteps estimation of a demand system and requires no assumptions about the mode of competition, rivals’ technologies and strategies, or “equilibrium”. In an empirical application to the US airline market, we demonstrate GLC’s usefulness for ex ante policy evaluation and identify the winners and losers of climate-change policy. We also show how GLC’s structure, under additional assumptions, can be used for welfare analysis and to endogenize the extent of regulation.
    Keywords: Pass-through, imperfect competition, regulation, carbon pricing, airlines, political economy
    JEL: D43 H23 L51 L93
    Date: 2020–08–18
  45. By: Hassan Benchekroun (McGill University, CIREQ); Amrita Ray Chaudhuri (The University of Winnipeg, CentER & TILEC); Dina Tasneem (The American University of Sharjah)
    Abstract: We consider a common-pool renewable resource differential game. We show that within this dynamic oligopolistic framework, free trade may lead to a lower discounted sum of consumer surplus and of social welfare than autarky. Trade restrictions may be supported based on both resource conservation and efficiency motives. A priori, this finding is not straightforward; a move from Autarky to Free Trade causes industry output to first increase and then decrease over time. While producers are shown to be always worse off under free trade than under autarky, consumers are better off in the short run and worse off in the long run. We determine the conditions under which the long-run effects outweigh the short-run effects of trade, leading to a decrease in the discounted sum of not only consumer surplus, but also social welfare.
    Date: 2019–05
  46. By: Hung-Hao Chang; Chad Meyerhoefer; Feng-An Yang
    Abstract: Recent studies demonstrate that air quality improved during the coronavirus pandemic due to the imposition of social lockdowns. We investigate the impact of COVID-19 on air pollution in the two largest cities in Taiwan, which were not subject to economic or mobility restrictions. Using a generalized difference-in-differences approach and real-time data on air quality and transportation, we estimate that levels of sulfur dioxide, nitrogen dioxide and particulate matter increased 5 - 12 percent relative to 2017 - 2019. We demonstrate that this counterintuitive finding is likely due to a shift in preferences for mode of transport away from public transportation and towards personal automobiles. Similar COVID-19 prevention behaviors in regions or countries emerging from lockdowns could likewise result in an increase in air pollution.
    JEL: I12 Q53
    Date: 2020–07
  47. By: Datt, Gaurav (Monash University); Maitra, Pushkar (Monash University); Menon, Nidhiya (Brandeis University); Ray, Ranjan (Monash University); Dey, Sagnik (Indian Institute of Technology Delhi); Chowdhury, Sourangsu (Indian Institute of Technology Delhi)
    Abstract: Economic growth in emerging market economies has come hand-in-hand with growing demand for energy, with many of them meeting this higher demand by increased use of coal to fuel electricity generation. This paper examines the impact of pollution generated by coal fueled power units on the anemic status of children and women in India. We show that among very young children (aged 0–5 years), the number of coal units in the district in the month and year of birth significantly increases the likelihood of being anemic net of a comprehensive set of child, mother, household and district level controls. Exposure in utero matters as well for child anemia, while the number of coal plants in the district also induce greater anemia among adult women. Impacts on anemic status are driven by the growth of PM2.5 pollution attributable to emissions from coal-powered units. We undertake a series of falsification and specification checks to underline the robustness of our results. Our research adds anemia to the list of significant health costs of relying on coal-fired power generation in meeting the increasing demand for energy that emerging market economies like India face.
    Keywords: anemia, coal units, PM2.5, air pollution, children, women, India
    JEL: I15 Q32 Q53 O12
    Date: 2020–07
  48. By: Paulina Concha Larrauri; Upmanu Lall
    Abstract: Frozen concentrated orange juice (FCOJ) is a commodity traded in the International Commodity Exchange. The FCOJ future price volatility is high because the world's orange production is concentrated in a few places, which results in extreme sensitivity to weather and disease. Most of the oranges produced in the United States are from Florida. The United States Department of Agriculture (USDA) issues orange production forecasts on the second week of each month from October to July. The October forecast in particular seems to affect FCOJ price volatility. We assess how a prediction of the directionality and magnitude of the error of the USDA October forecast could affect the decision making process of multiple FCOJ market participants, and if the "production uncertainty" of the forecast could be reduced by incorporating other climate variables. The models developed open up the opportunity to assess the application of the resulting probabilistic forecasts of the USDA production forecast error on the trading decisions of the different FCOJ stakeholders, and to perhaps consider the inclusion of climate predictors in the USDA forecast.
    Date: 2020–07
  49. By: Olivier Coussi (CEREGE - CEntre de REcherche en GEstion - EA 1722 - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers - Université de Poitiers - ULR - Université de La Rochelle); Kadígia Faccin (UNISINOS - Universidade do Vale do Rio dos Sinos)
    Abstract: We propose a contribution to the understanding of the new challenges concerning economic development in Brazil and more particularly on University-Government-Industry relations. This triptych, academically called "triple helix", can be considered as a lever and motor for anchoring and developing economic investments in the territory. After having described the situation of the innovation system in Brazil, we propose to illustrate the contributions of the "triple helix" concept for two success stories in southern Brazil and explain how "triple helix" could influence the general climate for entrepreneurs in Brazil. From these two case studies, one can see the ability to promote public policies but also new innovative ecosystems as a consequence of a good enrollment and involvement in the university-government-industry relationships.
    Date: 2020–08–11
  50. By: Henningsen, Geraldine; Wiese, Catharina
    Abstract: Most environmental policies that aim to encourage households to invest in more climate- friendly technologies and retrofits, e.g., solar panels, electric cars, or attic insulation, are broadly targeted and do not take households’ individual investment behaviour into account. Scholars have, therefore, emphasised the need to account for household heterogeneity in policy design in order to ensure effective and efficient policy outcomes. However, such a policy design requires the existence of easily accessible household characteristics, which can reliably and consistently explain households’ investment behaviour in a variety of investment scenarios. Using the vast empirical literature on the determinants of households’ investments in energy-efficient home improvements as a case study, we conduct a meta-analysis to (i) determine the magnitude of the effects of easily accessible household characteristics, and; (ii) test the stability of these effects under a variety of circumstances. We integrate the empirical results from 63 publications that investigate the impact of socio-economic characteristics on households’ energy-efficiency investments and examine potential model- and sample-specific factors to explain the variation in the estimated effects. Our findings for the household characteristics: income, age, education, household size, and homeownership, show that significant effects only exist for some of these characteristics, with income and homeownership showing the greatest impact. Furthermore, the results confirm a strong situational component in the effect of these household characteristics on households’ investment decisions, which challenges the practicality of tailored policy design.
    Keywords: Household heterogeneity, Environmental policy, Climate, Meta analysis
    JEL: D10 D11 D12 Q40
    Date: 2019
  51. By: Patrice Geoffron (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - CNRS - Centre National de la Recherche Scientifique); Benoît Leguet (Mission Climat de la Caisse des Dépôts - Groupe caisse des dépots, Climat Research - Groupe caisse des dépots, Recherche - CDC Climat Recherche)
    Abstract: Contrairement à la stratégie de relance adoptée en 2008, qui se concentrait exclusivement sur les bénéfices économiques directement observables, chaque euro public investi pour la sortie de crise devra valoriser les co-bénéfices environnementaux et sanitaires. Tel est le parti pris de cette note d'I4CE et de Terra Nova. Avec l'augmentation de la dette publique française et la réduction à terme des marges de manœuvre budgétaires, valoriser tous les co-bénéfices de l'action publique n'est plus une simple option mais un impératif; permettant, entre autres gains collectifs, de réduire les 50 milliards d'euros/an de coûts de la pollution de l'air en France.
    Keywords: pollution,action publique,crise sanitaire
    Date: 2020–07–09
  52. By: Olivier Gayot (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Responsible public procurement can be understood as a new conception of public procurement, which could reaffirm the role of public actors in the institutionalization of sustainable development, especially on a territorial scale. There is nearly no academic literature in economics about responsible public procurement, as the concept is rather recent. The point of this article is to present several practical and theoretical perspectives around responsible public procurement, not pretending to any form of exhaustiveness. These perspectives were discussed during a study day organized within the RSECO project « CSR and public procurement, between constraints and performances » which took place on November 23rd, 2017 at the MESHS (Lille, France).
    Abstract: L'achat public responsable peut être compris comme une nouvelle conception de l'achat public, qui pourrait permettre de réaffirmer le rôle des acteurs publics dans l'institutionnalisation du développement durable, notamment à l'échelle des territoires. L'achat public responsable étant une notion récente, il n'existe aujourd'hui quasiment aucune littérature académique en économie sur le sujet. L'objectif du présent article est d'exposer différents points de vue pratiques et théoriques autour de l'achat public responsable, sans prétendre à une forme d'exhaustivité. Ces différentes perspectives ont été abordées durant la journée d'étude « RSO et achats publics, entre contraintes et performances » ayant eu lieu le 23 novembre 2017 à la MESHS (Lille) organisée dans le cadre du projet « Une RSE repensée – de l'implication des acteurs à une réappropriation des politiques publiques » (RSECO).
    Keywords: public procurement,social responsibility of organizations,regional government,sustainable development,achat public responsable,responsabilité sociétale des organisations,collectivité territoriale,développement durable
    Date: 2019–04–04
  53. By: Ridhima Gupta (South Asian University, India); Martino Pelli (Université de Sherbrooke and CIREQ)
    Abstract: This study investigates the causal link between electrification and the adoption of modern (and cleaner) cooking fuels, more specifically Liquefied Petroleum Gas (LPG). In order to correct for the potential endogeneity, we exploit an instrumental variables approach that allows us to capture the part of the variation in electrification which is not related to factors that are also likely to affect a household’s choice of cooking fuel. Our instrument interacts state-level supply shifts in hydro-electric power availability with the initial level of electrification of each district. The results are consistent with an expansion of households’ choice set under a fixed budget constraint. We find that electrification leads to an increase in the probability of adoption of (free) biomass fuels and a decrease in the probability of adoption of (costly) modern cooking fuels. These results are statistically significant only for the poorest 50% of households in our sample, while they become statistically insignificant when we move to the richest 50%. The same is true for the share of expenditure in a specific fuel. These results seem to indicate that electrification by creating an additional strain on households’ finances pushes them back on the energy ladder.
    Keywords: rural electrification, cooking fuel, energy ladder, fuel stacking
    JEL: O12 O13 Q56
    Date: 2020–01
  54. By: Richard Hornbeck
    Abstract: The 1930's American Dust Bowl created archetypal "Dust Bowl migrants," refugees from environmental collapse and economic upheaval. I examine this archetype, comparing migration from more-eroded counties and less-eroded counties to distinguish Dust Bowl migrants from other migrants in this era. Migrants from more-eroded counties were more "negatively selected," in years of education, than other migrants who were "positively selected." These Dust Bowl migrants struggled economically, especially in California. Despite migrants' struggles, however, I estimate strikingly modest impacts of the Dust Bowl on average incomes that contrast with its enduring impacts on agricultural land.
    JEL: N32 N52
    Date: 2020–08
  55. By: Kirsten Burkhardt (CREGO - Centre de Recherche en Gestion des Organisations [Dijon] - UFC - Université de Franche-Comté - UB - Université de Bourgogne - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UBFC - Université Bourgogne Franche-Comté [COMUE]); Pascal Nguyen (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Evelyne Poincelot (LEG - Laboratoire d'Economie et de Gestion - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique)
    Date: 2020–07
  56. By: Joshua S. Graff Zivin; Yanjun Liao; Yann Panassie
    Abstract: This paper examines the impacts of hurricanes on the housing market and the associated implications for local population turnover. We first characterize the post-hurricane equilibrium dynamics in local housing markets using microdata from Florida during 2000-2016. Our results show that hurricanes cause an increase in equilibrium prices and a concurrent decrease in transactions in affected areas, both lasting up to three years. Together, these dynamics imply a negative transitory shock to the housing supply as a consequence of the hurricane. Furthermore, we match buyer characteristics from mortgage applications to provide the first buyer-level evidence on population turnover. We find that incoming homeowners in this period have higher incomes, leading to an overall shift in the local economic profile toward higher-income groups. Our findings suggest that market responses to destructive natural disasters can lead to uneven and lasting demographic changes in affected communities, even with a full recovery in physical capital.
    JEL: J10 Q54 R23 R31
    Date: 2020–07
  57. By: Krutilla,Kerry Mace; Good,David Henning; Toman,Michael A.; Arin,Tijen
    Abstract: The cumulative extraction of terrestrial mineral deposits has led the mining industry to begin exploring seabed resources. The prospect of commercialized seabed mining poses major regulatory challenges for the International Seabed Authority and countries with mineral resources in their coastal jurisdictions. The European Union and the World Bank have initiated projects to build capacity to manage seabed mining activities. A particular concern is the nature of the economic evaluation that should be required for the assessment of mining leases. This study reviews the academic literature on economic decision making under deep uncertainty and makes recommendations for incorporating precautionary measures within the benefit-cost analysis of seabed mining operations.
    Keywords: Mining&Extractive Industry (Non-Energy),Global Environment,Hydrology,International Trade and Trade Rules
    Date: 2020–06–29
  58. By: Gocht, Alexander; Consmüller, Nicola; Thom, Ferike; Grethe, Harald
    Abstract: Zahlreiche genom-editierte Kulturpflanzen stehen kurz vor ihrer Marktreife und werden daher bald ihren Weg in den internationalen Agrarhandel finden. Gegenwärtig gibt es jedoch große Unterschiede in der rechtlichen Einstufung dieser Produkte. Während beispielsweise in den USA und Brasilien genom-editierte Pflanzen keiner speziellen Regulierung unterliegen, werden sie in der EU nach dem EuGH-Urteil als gentechnisch veränderte Organismen angesehen und fallen daher unter die GVO-Regulierung. Da eine entsprechende analytische Unterscheidung von genom-editierten und konventionell gezüchteten Pflanzen unter Umständen nicht möglich ist, laufen Importeure Gefahr, nicht zugelassene Produkte in die EU einzuführen. Dies könnte dazu führen, dass die Einfuhr von bestimmten landwirtschaftlichen Produkten aus Ländern zum Erliegen kommt, in denen genom-editierte Pflanzen angebaut werden. Dies hätte einen Preisanstieg für diejenigen Produkte, für welche die EU Nettoimporteur ist, zur Folge. Auch würde der Anbau in der EU selbst intensiviert werden. Zudem käme es bei Produktion, Verbrauch und Handel zu Substitutionseffekten zwischen genom-editierten und konventionell gezüchteten Produkten. Mittels des komparativ-statischen Gleichgewichtsmodells CAPRI analysieren wir die Auswirkungen eines derartigen Aussetzens der EU-Agrarimporte auf den europäischen Agrarsektor am Beispiel von Soja und Getreide. Unsere Ergebnisse zeigen starke Auswirkungen auf die Preise für landwirtschaftliche Produkte und Lebensmittel sowie auf das Betriebseinkommen. Die Intensivierung der europäischen Agrarproduktion kann darüber hinaus zu negativen Umwelteffekten führen und einem globalen Anstieg der Treibhausgasemissionen. Dies legt den Schluss nahe, dass auch Handelseffekte bei der Ausgestaltung nationaler Regelungen im Umgang mit genom-editierten Pflanzen Berücksichtigung finden sollten.
    Keywords: genome editing,CRISPR/Cas,asynchrony regulatory,trade distortion,economic modelling,partial equilibrium model CAPRI,agricultural economic and environmental impact assessment,Genom-Editierung,Asynchrone Regulierung,Handelsverzerrung,ökonomische Modellierung,partielles Gleichgewichtsmodell CAPRI,agrarökonomische und ökologische Folgenabschätzung
    JEL: F13 C6 C63 F47
    Date: 2020
  59. By: Deininger,Klaus W.; Ali,Daniel Ayalew; Kussul,Nataliia; Lavreniuk,Mykola; Nivievskyi,Oleg
    Abstract: To overcome the constraints for policy and practice posed by limited availability of data on crop rotation, this paper applies machine learning to freely available satellite imagery to identify the rotational practices of more than 7,000 villages in Ukraine. Rotation effects estimated based on combining these data with survey-based yield information point toward statistically significant and economically meaningful effects that differ from what has been reported in the literature, highlighting the value of this approach. Independently derived indices of vegetative development and soil water content produce similar results, not only supporting the robustness of the results, but also suggesting that the opportunities for spatial and temporal disaggregation inherent in such data offer tremendous unexploited opportunities for policy-relevant analysis.
    Date: 2020–06–29
  60. By: Joseph E. Aldy; Matthew Kotchen; Mary F. Evans; Meredith Fowlie; Arik Levinson; Karen Palmer
    Abstract: This paper considers the treatment of co-benefits in benefit-cost analysis of federal air quality regulations. Using a comprehensive data set on all major Clean Air Act rules issued by the Environmental Protection Agency over the period 1997-2019, we show that (1) co-benefits make up a significant share of the monetized benefits; (2) among the categories of co-benefits, those associated with reductions in fine particulate matter are the most significant; and (3) co-benefits have been pivotal to the quantified net benefit calculation in exactly half of cases. Motivated by these trends, we develop a simple conceptual framework that illustrates a critical point: co-benefits are simply a semantic category of benefits that should be included in benefit-cost analyses. We also address common concerns about whether the inclusion of co-benefits is problematic because of alternative regulatory approaches that may be more cost-effective and the possibility for double counting.
    JEL: D61 Q53 Q58
    Date: 2020–07
  61. By: Iegor Riepin; Thomas M\"obius; Felix M\"usgens
    Abstract: The interdependence of electricity and natural gas markets is becoming a major topic in energy research. Integrated energy models are used to assist decision-making for businesses and policymakers addressing challenges of energy transition and climate change. The analysis of complex energy systems requires large-scale models, which are based on extensive databases, intertemporal dynamics and a multitude of decision variables. Integrating such energy system models results in increased system complexity. This complexity poses a challenge for energy modellers to address multiple uncertainties that affect both markets. Stochastic optimisation approaches enable an adequate consideration of uncertainties in investment and operation planning; however, stochastic modelling of integrated large-scale energy systems further scales the level of complexity. In this paper, we combine integrated and stochastic optimisation problems and parametrise our model for European electricity and gas markets. We analyse and compare the impact of uncertain input parameters, such as gas and electricity demand, renewable energy capacities and fuel and CO2 prices, on the quality of the solution obtained in the integrated optimisation problem. Our results quantify the value of encoding uncertainty as a part of a model. While the methodological contribution should be of interest for energy modellers, our findings are relevant for industry experts and stakeholders with an empirical interest in the European energy system.
    Date: 2020–08
  62. By: Yap, Josef T.; Tabuga, Aubrey D.; Mina, Christian D.
    Keywords: employment creation, economic development, structural change, labour market policy, sectoral planning, youth employment
    Date: 2020
  63. By: Joaquín López Vallés; Lara Tobías Peña; Cristina Vallejo Gil
    Abstract: En enero de 2020, la CNMC publicó el Estudio sobre los servicios de abastecimiento y saneamiento de agua urbana (E/CNMC/07/19). Identifica deficiencias en la regulación y gobernanza del ciclo urbano del agua que impiden aprovechar las ventajas de la competencia por el mercado y la máxima eficiencia en la prestación de los servicios. La introducción de herramientas apropiadas de competencia por el mercado, transparencia, y competencia comparativa redundaría positivamente en la sostenibilidad económica y medioambiental de los servicios y en el bienestar de los ciudadanos, coadyuvando a afrontar los retos asociados a la escasez hídrica y el cambio climático.
    Date: 2020–08

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