nep-env New Economics Papers
on Environmental Economics
Issue of 2021‒01‒04
fifty-five papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. EU Sustainable Finance Taxonomy – What Is Its Role on the Road towards Climate Neutrality? By Franziska Schütze; Jan Stede
  2. Do We Still Need Carbon-Intensive Capital When Transitioning to a Green Economy? By Wei Jin; Rick van der Ploeg; Lin Zhang
  3. Imperfect Competition, Border Carbon Adjustments, and Stability of a Global Climate Agreement By Soham Baksi; Amrita Ray Chaudhuri
  4. Investigating the effects of environmental and energy policies in Turkey using an energy-disaggregated CGE model By Dizem Ertac
  5. Ghana Country Environmental Analysis By World Bank
  6. The Economics of Environment and Ecology for Sustainable Development By Jakhanwal, Meeta; Mishra, Mukesh Kumar
  7. Whatever it takes to save the planet? Central banks and unconventional green policy By Ferrari, Alessandro; Landi, Valerio Nispi
  8. The outlook for oceans, seas and marine resources in Latin America and the Caribbean: Conservation, sustainable development and climate change mitigation By -
  9. Supporting carbon taxes: The role of fairness By Sommer, Stephan; Mattauch, Linus; Pahle, Michael
  10. Addressing the COVID-19 and climate crises: Potential economic recovery pathways and their implications for climate change mitigation, NDCs and broader socio-economic goals By Simon Buckle; Jane Ellis; Aimée Aguilar Jaber; Marcia Rocha; Brilé Anderson; Petter Bjersér
  11. ausplotsR: An R package for rapid extraction and analysis of vegetation and soil data collected by Australia’s Terrestrial Ecosystem Research Network By Munroe, Samantha; Guerin, Greg; Saleeba, Tom; Martín-Forés, Irene; Blanco-Martin, Bernardo; Sparrow, Ben; Tokmakoff, Andrew
  12. A statistical model of the global carbon budget By Mikkel Bennedsen; Eric Hillebrand; Siem Jan Koopman
  13. Mobility choices and climate change: Assessing the effects of social norms, emissions information and economic incentives By Charles Raux; Amandine Chevalier; Emmanuel Bougna; Denis Hilton
  14. Who perceive seasonality change? A case of the Meghna basin, Bangladesh By Moinul Islam; Koji Kotani
  15. Analysis of Heat Waves and Urban Heat Island Effects in Central European Cities and Implications for Urban Planning By World Bank
  16. Saving Africa's tropical forests through energy transition: A randomized controlled trial in Tanzania By Alem, Yonas; Ruhinduka, Remidius D.
  17. Environmental Efficiency and Productivity Analysis By Arnaud Abad
  18. Carbon Footprints of European Manufacturing Jobs: Stylized Facts and Implications for Climate Policy By U.J. Wagner; D. Kassem; A. Gerster; J. Jaraite-Kazukauske; M. Klemetsen; M. Laukkanen; J. Leisner; R. Martin; J.R. Munch; M. Muûls; A.T. Nielsen; L. de Preux; K.E. Rosendahl; S. Schusser
  19. Strengthening Hydromet and Early Warning Services in Belarus By World Bank
  20. Caribbean in Brief: an information document for Caribbean Small Island Developing States By -
  21. Strategic use of environmental innovation in vertical chains and regulatory attitudes By Mabrouk, R.; Kurtyka, O.
  22. California’s COVID-19 economic shutdown reveals the fingerprint of systemic environmental racism By Bluhm, Richard; Polonik, Pascal; Hemes, Kyle; Sanford, Luke; Benz, Susanne; Levy, Morgan C.; Ricke, Katharine; Burney, Jennifer
  23. The Effect of Climate Policy on Productivity and Cost Pass-Through in the German Manufacturing Sector By Beat Hintermann; Maja Žarković; Corrado Di Maria; Ulrich J. Wagner
  24. How Does Climate Change Interact with the Financial System? A Survey By Kakuho Furukawa; Hibiki Ichiue; Noriyuki Shiraki
  25. Is Environmentalism the Right Strategy to Decarbonize the World? By Marini, Marco A.; Tarola, Ornella; Thisse, Jacques-François
  26. Agricultural Beneficial Management Practices: A Synthesis of Co-benefits, Tradeoffs, and Co-costs between Crop Yield and Non-provisioning Ecosystem Services By Kadykalo, Andrew Nicholas; Johnson, Kris; McFatridge, Scott; Findlay, C. Scott
  27. Optimal Carbon Pricing in General Equilibrium Revisited: Damages, Depreciation, and Discounting By Rick van der Ploeg; Armon Rezai
  28. Proceedings of the 3rd INFER Symposium on Agri-Tech Economics for Sustainable Futures 21st - 22nd September 2020, Harper Adams University, Newport United Kingdom By Behrendt, Karl; Paparas, Dimitrios
  29. Three Dimensional Fractal Attractors in a Green Transition Economic Growth Model. By Simone Marsiglio; Privileggi, Fabio
  30. Climate Risk and Commodity Currencies By Felix Kapfhammer; Vegard H. Larsen; Leif Anders Thorsrud
  31. Climate-related Risks and Central Banks’ Collateral Policy: a Methodological Experiment By Oustry Antoine; Erkan Bunyamin; Svartzman Romain; Weber Pierre-François
  32. Greening regional trade agreements on non-tariff measures through technical barriers to trade and regulatory co-operation By Christophe Bellmann; Colette van der Ven
  33. Enhancing Financial Transparency to Mitigate Climate Change: Towards a Climate Risks and Opportunities Reporting Index By Jeanne Amar; Samira Demaria; Sandra Rigot
  34. Decision-making within the household: The role of autonomy and differences in preferences By Alem, Yonas; Hassen, Sied; Köhlin, Gunnar
  35. An Assessment of Forest Tenure in Myanmar By World Bank
  36. Impact of Weather Factors on Migration Intention using Machine Learning Algorithms By Juhee Bae; John Aoga; Stefanija Veljanoska; Siegfried Nijssen; Pierre Schaus
  37. Regional Note on Air Quality Management in the Western Balkans By World Bank
  38. Participatory planning for local sustainability guided by the Sustainable Development Goals By Szetey, Katrina; Moallemi, Enayat A.; Ashton, Emma; Butcher, Martin C; Sprunt, Beth; Bryan, Brett A.
  39. Taking Time Seriously: Implications for Optimal Climate Policy By Michael Grubb; Rutger-Jan Lange; Nicolas Cerkez; Pablo Salas; Jean-Francois Mercure; Ida Sognnaes
  40. Demand-induced transition risks: A systemic approach applied to South Africa By Antoine GODIN; Paul HADJI-LAZARO
  41. ISR & RSE : Quelle interaction en faveur du développement durable ? By Hasna Moussafir
  42. Targeting a sustainable recovery with Green TLTROs By van 't Klooster, Jens; van Tilburg, Rens
  43. Pactos sociales al servicio del bienestar en América Latina y el Caribe ¿Qué son y qué papel tienen en tiempos de crisis? By Martínez, Juliana; Sánchez-Ancochea, Diego
  44. Technical Note on Preparing the National Territorial and Spatial Plan of China By World Bank Group
  45. Some considerations on external audits of SDG implementation By David Le Blanc
  46. Quantifying the Demand, Supply, and Welfare Effects of Natural Disasters Using Monthly Trade Data By Gabriel J. Felbermayr; Jasmin Katrin Gröschl; Benedikt Heid
  47. Quantifying the externalities of renewable energy plants using wellbeing data: The case of biogas By Christian Krekel; Julia Rechlitz; Johannes Rode; Alexander Zerrahn
  48. Temperature Anomalies, Long Memory, and Aggregation By J. Eduardo Vera-Valdés
  49. El aporte de la biotecnología médica frente a la pandemia de COVID-19 y lecciones para su desarrollo mediante las estrategias nacionales de bioeconomía: estudios de caso de Colombia, Costa Rica y el Uruguay By Rodríguez, Adrián G.; Aramendis, Rafael H.; Deana, Atilio; García, Randall; Pittaluga, Lucía
  50. GDP Effects of Pandemics: A Historical Perspective By Maciej Stefański
  51. Guía metodológica de cierre de minas By Morales, Ana Luisa; Hantke Domas, Michael
  52. Ressources naturelles, innovation et développement économique : vers une nouvelle approche By Mounir Amdaoud
  53. Ressources naturelles, innovation et développement économique : vers une nouvelle approche By Mounir Amdaoud
  54. Managing Momentum in Climate Negotiations By Stefano Carattini; Andreas Löschel
  55. Humanitarian SDGs: Interlinking the 2030 Agenda for Sustainable Development with the Agenda for Humanity By Peride K. Blind

  1. By: Franziska Schütze; Jan Stede
    Abstract: The EU Taxonomy is the first standardised and comprehensive classification system for sustainable economic activities. It covers activities responsible for up to 80 percent of EU greenhouse gas emissions and may play an important role in channelling investments into low-carbon technologies by helping investors to make informed decisions. However, especially in transition sectors much depends on the stringency of the technical performance thresholds that the Taxonomy applies to economic activities that are not yet “green”. This paper shows that for several sectors, the thresholds are not yet on track to support the transition towards climate neutrality. To this end, we analyse a large-scale public consultation with detailed responses to the specific thresholds from a variety of stakeholders. Two distinct use cases of the Taxonomy complicate the use of a single threshold for emission-intensive sectors: For new investments, criteria need to be stricter than for current activities of companies. We also argue that for the sectors not covered by the Taxonomy, there is a need to differentiate between low-emissions activities and high-emission activities that are incompatible with a low-carbon future.
    Keywords: EU Taxonomy, sustainable finance, classification system, green investments
    JEL: G00 G14 G18 Q01 Q54 Q56
    Date: 2020
  2. By: Wei Jin; Rick van der Ploeg; Lin Zhang
    Abstract: This paper presents a two-sector green endogenous growth model to explore a mechanism that explains why carbon-intensive capital is not necessarily shut down during transition to a green economy. Without accumulating clean capital to offset carbon emissions, a tightening of climate regulation leads to the running down of carbon-intensive capital. However, if climate regulations induce stepping-up of carbon-free capital to offset warming damages, the economic value of carbon-intensive capital can be protected and the running down of carbon-intensive assets can be mitigated. The use of carbon-intensive capital gives the economic means to enhance clean capital accumulation and sustain endogenous growth. Both carbon-intensive and carbon-free capital may thus be needed for an efficient transition to green growth.
    Keywords: endogenous growth, green growth, two-sector growth model, climate policy
    JEL: Q54 Q43 Q32 O13 O44 C61
    Date: 2020
  3. By: Soham Baksi; Amrita Ray Chaudhuri
    Abstract: We analyze the stability of a global climate agreement to mitigate greenhouse gas emissions when countries choose pollution taxes simultaneously and strategically. Emissions arise from the production of a good, which is traded across countries with segmented markets that are imperfectly competitive. We find that, while a global climate agreement involving all countries is unstable under autarky, a move from autarky to free trade may stabilize the grand coalition between countries. As markets become more competitive, it becomes more likely that the global climate agreement is stable, and the environmental and welfare gains from global cooperation also become larger. Further, we introduce a border carbon adjustment (BCA) mechanism consisting of an import tariff set equal to the pollution tax differential across countries. We find that allowing countries to use a BCA tends to destabilize an otherwise stable grand coalition.
    JEL: Q54 F18 H23
    Date: 2020–12
  4. By: Dizem Ertac
    Abstract: This thesis investigates environmental and energy policies that Turkey needs to adopt on its way to a sustainable development path. A comparative-static, multi-sectoral CGE model, TurkMod, is developed in order to analyze the potential scenarios available for the Turkish economy to attain a low-carbon society with a reduced reliance on fossil fuel imports. Domestic energy demand has significantly increased in Turkey over the past decades and this has put a lot of pressure on policy-makers as the economy greatly depends on imports of natural gas and oil as far as current energy consumption is concerned. The CGE model in this study is based on a 2012 energy-disaggregated Social Accounting Matrix (SAM) constructed as a part of this thesis as well. The energy-disaggregated SAM incorporates 18 sectors for production activities, 11 products as commodities, 2 factors of production as labor and capital, 3 institutional accounts as firms, households, and the government, a separate account for taxes on commodities, taxes on production and taxes on different types of factor use, a capital account, and finally the rest of the world (ROW) account. Disaggregating the electricity sector to include 8 different types of power generating sectors (5 of which are renewable energy sources) enables electric power substitution in the model. The energy-disaggregated SAM is further linked with satellite accounts which include data on derived energy demand and greenhouse gas (GHG) emissions.The macroeconomic and environmental impacts of four distinct sets of scenarios are analyzed with respect to the baseline scenario. The first scenario simulates a 30% increase in energy efficiency in the production sectors and the residential sector and evidence is found for reaching the 21% GHG mitigation target set in Turkey’s pledge for Paris Agreement compliance. The second set of scenarios is the inclusion of a medium-level and high-level carbon tax rates for coal, oil and natural gas. The carbon tax scenarios produce significant effects on both emission reduction targets and substituting fossil fuel technologies with cleaner energy types. The third scenario investigates the sectoral and welfare impacts of providing subsidies for renewable energy sources. Turkey has already adopted a scheme where renewable energies are beings subsidized and promoted, however, this policy does not produce the necessary transformation for the Turkish society when utilized solely on its own. The fourth scenario estimates the effects of changes in world prices of energy on the Turkish economy. A 20% increase in world energy prices, i.e. oil, natural gas, and coal, induces substantial changes in the breakdown of TPES and the power-generating sector, but this scenario is a rather hypothetical one as it cannot be suggested as a viable policy option. All in all, these potential energy scenarios have significant and influential impacts on the Turkish economy and its environment. Notwithstanding, a carbon tax policy proves to be the most viable scenario which leads to reduced energy intensities in all sectors, a 21% GHG emissions abatement, and a transformation of the energy sector towards having a low-carbon content along with a reduced reliance on fossil fuel imports.
    Keywords: general equilibrium modeling; energy and environmental policies
    Date: 2020–12–14
  5. By: World Bank
    Keywords: Environment - Air Quality & Clean Air Environment - Brown Issues and Health Environment - Climate Change Mitigation and Green House Gases Environment - Coastal and Marine Environment Environment - Ecosystems and Natural Habitats Environment - Natural Resources Management Environment - Pollution Management & Control Environment - Sustainable Land Management Environment - Water Resources Management
    Date: 2020–04
  6. By: Jakhanwal, Meeta; Mishra, Mukesh Kumar
    Abstract: Economic growth and development are intricately linked to the sound management of environmental resources. Reducing inequalities in society and maintaining healthy ecosystems are fundamental to achieving sustainable development, yet the interactions between these goals have been largely underexplored. Ecology and economy are derived from the same root words and concerns. Economics provides important tools for understanding and managing resources. Ecological economics focuses on the value of natural services and tries to include those services into price calculations. This Paper brief focuses on how societies can create opportunities for a green and inclusive economic recovery and, aims to achieve this goal by a structured approach to valuation that helps decision-makers recognize the wide range of benefits provided by ecology and ecosystems, their values in economic terms and in decision-making. A green recovery will significantly enhance the resilience of economies and societies in the face of both the severe recession and accelerating environmental challenges. Through education, research, policy and social action, needs to transform towards an equitable and ecologically sustainable society with respect for the rights of people and nature, biological cultural diversity and to respect its ecological limits.
    Keywords: Ecological Economics,Environmental Economics,Sustainable Development
    JEL: Q56 Q57 Q58
    Date: 2020
  7. By: Ferrari, Alessandro; Landi, Valerio Nispi
    Abstract: We study the effects of a temporary Green QE, defined as a policy that temporarily tilts the central bank’s balance sheet toward green bonds, i.e. bonds issued by firms in non-polluting sectors. To this purpose, we merge a standard DSGE framework with an environmental model. In our model, detrimental emissions produced by the brown sector increase the stock of pollution. We find that the imperfect substitutability between green and brown bonds is a necessary condition for the effectiveness of Green QE. Under the assumption of imperfect substitutability, we point out the following results. A temporary Green QE is an effective tool in mitigating detrimental emissions. However, Green QE has limited effects in reducing the stock of pollution, if pollutants are slow-moving variables such as atmospheric carbon. The welfare gains of Green QE are positive but small. Welfare gains increase if the flow of emissions negatively affects also the utility of households. JEL Classification: E52, E58, Q54
    Keywords: central bank, climate change, monetary policy, quantitative easing
    Date: 2020–12
  8. By: -
    Abstract: Oceans are a vast source of solutions and opportunities which, unfortunately, are currently invisible, at risk or underutilized. For Latin America and the Caribbean, this reality is significant —more than 27% of the region’s population lives in coastal areas; the sea accounts for a larger share of territory than land for most countries, especially in the Caribbean; and the oceans are home to extraordinary biodiversity. Still, we are not yet on a path to achieving the targets of Sustainable Development Goal 14 relating to life below water. The Economic Commission for Latin America and the Caribbean (ECLAC) has produced the first regional outlook for oceans, seas and their resources in order to fill information gaps and propose ideas that strengthen blue sustainable development efforts. This study will serve as a tool for regional mechanisms and coordination efforts, by suggesting new alternative indicators for some targets of Sustainable Development Goal 14 and viewing the oceans as a source of solutions for climate change mitigation. It presents an opportunity to advance in the cross-cutting and blue implementation of the 2030 Agenda for Sustainable Development with oceans at the core.
    Date: 2020–12–16
  9. By: Sommer, Stephan; Mattauch, Linus; Pahle, Michael
    Abstract: We conduct a discrete choice experiment with a sample of 6,000 German household heads to examine how fairness preferences influence the support for carbon taxes and revenue-recycling options. While it is well-known that carbon taxes are effective in reducing emissions and can be made progressive, they remain fairly unpopular with German citizens. Consequently, best practice to build public support for them remains a relevant question for which there is no consensus. We obtain two major results: First, while green spending is more popular in general, it is significantly more popular among those who are pro-environment and trust the government. Second, when restricted to options for direct revenue redistribution, Germans prefer lump-sum payments over directing payments to the poorest or the most affected. Importantly, choices over these options depend both on genuinely different conceptions of fairness and respondents' economic circumstances. Our findings have implications for building support for effective climate change mitigation policies with those who are not yet convinced.
    Keywords: carbon pricing,climate change mitigation,fairness,redistribution,environmental tax reform
    JEL: A13 H23 Q54
    Date: 2020
  10. By: Simon Buckle (OECD); Jane Ellis (OECD); Aimée Aguilar Jaber (OECD); Marcia Rocha (OECD); Brilé Anderson (OECD); Petter Bjersér
    Abstract: This paper provides decision-makers with a framework for prioritising different economic, social and environmental goals and analysing the options available to achieve them. To this end, it develops three stylised COVID-19 recovery pathways (“Rebound”, “Decoupling” and “Wider well-being”) that differ in the extent to which they encompass greenhouse gas (GHG) emission reductions and the integration of mitigation and wider well-being outcomes or, broadly equivalently, SDGs. A number of real-world examples of COVID-19 recovery measures in the surface transport and residential sectors were identified, and the paper maps these measures onto these three stylised pathways. The paper finds a wide divergence in the environmental and social impacts of COVID-19 recovery measures developed to date, with several countries putting in place measures that correspond to all three pathways. The nature and pace of economic recovery in different countries and in aggregate will have important implications for existing, updated and new Nationally Determined Contributions (NDCs) under the Paris Agreement, and the paper also highlights the possible impact of the COVID-19 recovery measures being put in place on NDCs– including on the ambition of both current and future NDCs. The paper concludes that it will be important for governments to improve their understanding of the impact of their recovery measures across multiple policy dimensions (economic, social, environmental) as well as across different time periods (short and long-term) and spatial scales.
    Keywords: beyond growth, Climate change, inequality, NDCs, net-zero economy, residential, SDGs, sustainable recovery, transport, wider well-being
    JEL: A13 D62 D63 E61 H54 Q01 Q52 Q54
    Date: 2020–12–18
  11. By: Munroe, Samantha; Guerin, Greg; Saleeba, Tom; Martín-Forés, Irene; Blanco-Martin, Bernardo; Sparrow, Ben; Tokmakoff, Andrew
    Abstract: The Terrestrial Ecosystem Research Network (TERN), Australia’s national land ecosystem monitoring program, measures critical environmental attributes from local to continental scale and generates quality data for research and land management. Since 2011, TERN has performed standardised field surveys and sampling across a national plot network. At each plot, TERN records vegetation structure, composition and diversity, soil characteristics, and collects plant and soil samples for analysis. At the time of submission, TERN has established over 750 plots and performed over 1000 plot surveys across Australia. Here we present ausplotsR, an R package for the R statistical computing environment that provides a user-friendly interface to rapidly import, visualise, and analyse TERN plot survey data. Easy-to-use functions extract the data and compile data tables that can be incorporated into a variety of statistical analysis, most notably multivariate applications requiring plant community data with standardised relative abundances. ausplotsR includes functions to calculate useful vegetation metrics, such as species presence/absence, cover, and basal area. The package also provides information on TERN’s extensive soil and plant sample collection. We expect ausplotsR will help facilitate and advance ecological research and management throughout Australia and provide useful data for vegetation modellers globally.
    Date: 2020–12–15
  12. By: Mikkel Bennedsen (Aarhus University and CREATES); Eric Hillebrand (Aarhus University and CREATES); Siem Jan Koopman (Vrije Universiteit Amsterdam and CREATES)
    Abstract: We propose a dynamic statistical model of the Global Carbon Budget (GCB) as represented in the annual data set made available by the Global Carbon Project (Friedlingsstein et al., 2019, Earth System Science Data 11, 1783-1838), covering the sample period 1959-2018. The model connects four main objects of interest: atmospheric CO2 concentrations, anthropogenic CO2 emissions, the absorption of CO2 by the terrestrial biosphere (land sink) and by the ocean and marine biosphere (ocean sink). The model captures the global carbon budget equation, which states that emissions not absorbed by either land or ocean sinks must remain in the atmosphere and constitute a flow to the stock of atmospheric concentrations. Emissions depend on global economic activity as measured by World gross domestic product (GDP), and sink activity depends on the level of atmospheric concentrations and the Southern Oscillation Index (SOI). We use the model to determine the time series dynamics of atmospheric concentrations, to assess parameter uncertainty, to compute key variables such as the airborne fraction and sink rate, to forecast the GCB components from forecasts of World-GDP and SOI, and to conduct scenario analysis based on different possible future paths of World-GDP.
    Keywords: Global Carbon Budget, world GDP, CO2 emissions, CO2 concentrations, ENSO, airborne fraction, sink rate, climate system modeling
    JEL: C32 C49 C51 C52 C53
    Date: 2020–12–18
  13. By: Charles Raux (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Amandine Chevalier (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Emmanuel Bougna (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Denis Hilton (UT2J - Université Toulouse - Jean Jaurès)
    Abstract: The potential of psychological and fiscal framing interventions in motivating environmentally responsible behavior is explored in a context of long distance leisure travel. A series of discrete choice experiments is conducted with 789 participants. Framing conditions like information on CO2 emissions, an injunctive and a descriptive norm, fiscal incentives such as a carbon tax, a bonus-malus and a personal carbon trading scheme are tested while controlling the usual travel price-duration tradeoff. Pricing (including internalization of social cost of CO2 through fiscal incentives) has the expected effect of reducing the choice of travelling and hence CO2 emissions. Providing information on CO2 emissions of each transport alternative significantly reduces preferences for the most emitting modes (air) and favors a less emitting mode (train). Framing the fiscal incentive as personal carbon trading adds a moderate incentive to the price effect in reducing air choice.
    Keywords: Transport,CO2 emissions,Discrete choice experiments,Psychological interventions,Bonus-malus,Personal carbon trading,Working Papers du LAET
    Date: 2020–12
  14. By: Moinul Islam (Research Institute for Future Design, Kochi University of Technology); Koji Kotani (School of Economics and Management, Kochi University of Technology)
    Abstract: Global climate change is a scientifically demonstrated phenomenon, but there are great discrepancies in different societies about how people perceive it. It has been claimed that people’s correct perceptions to climate change are necessary for mitigation and adaptation; however, most research in this regard has focused on knowledge about temporal trends of climate: no reports have examined people’s perceptions of climatic regularity and patterns, i.e., seasonality change. In this study, we investigate people’s perception to seasonality change in the Meghna basin, Bangladesh where catastrophic flooding occurs and the number of seasons in an annual calendar year is reported to have decreased from six to four. We conduct interviews with 7 experts and surveys with 1011 respondents. With the data, we empirically characterize participants' perceptions to seasonality change in relation to sociodemographic factors and life experiences. The results show that dependence on natural resources in profession, experiences of natural disasters and life history in the residential area shape people’s accurate perception to climate seasonality.
    Keywords: Perception to seasonality change, natural resource dependence, experiences of natural disasters, life history, Bangladesh
    Date: 2020–12
  15. By: World Bank
    Keywords: Environment - Adaptation to Climate Change Environment - Climate Change Mitigation and Green House Gases Environment - Climate Change and Environment Urban Development - National Urban Development Policies & Strategies Urban Development - Urban Environment
    Date: 2020–04
  16. By: Alem, Yonas; Ruhinduka, Remidius D.
    Abstract: The production of charcoal to meet cooking needs of urban households is one of the main causes of deforestation and degradation of Africa's tropical forests, which offer significant carbon sequestration capacity to the global economy. In collaboration with a reputable local microfinance institution, we designed a randomised controlled trial in urban Tanzania and offered LPG stoves through subsidy and on credit to measure their impact on charcoal consumption and the corresponding reduction in deforestation. We also investigate the impact of the stoves on cooking time of women, who are the default cooks of the household. We find that, relative to households in the control group, adoption of LPG stoves reduced charcoal consumption by about 30% in the treatment group 15 months after the intervention. This corresponds to an average reduction in deforestation of 0.04 ha/household/year. However, providing subsidies for stove purchases resulted in a larger reduction in charcoal use (38%) than did providing access on credit (27%) with the corresponding likely reduction in deforestation by 0.05 and 0.03 ha/household/year respectively. A social cost-benefit analysis suggests that the cost of both programs is far below the benefits of the averted carbon dioxide CO2 due to possible reduction in deforestation. A carefully conducted controlled cooking test shows that cooking with LP gas is 50% cheaper than cooking with charcoal and it reduces cooking time by about 44% - welfare effects clearly indicating that LPG is cost-effective to the household as well. We highlight the importance of relaxing households' financial constraints and improving access to credit to encourage urban households to switch to cleaner energy sources and save the remaining forest resources of Africa.
    Keywords: charcoal,deforestation,carbon dioxide,LPG stoves,liquidity constraint,credit
    JEL: G21 H31 O10 O13 Q23 Q51
    Date: 2020
  17. By: Arnaud Abad (BETA - Bureau d'Économie Théorique et Appliquée - UL - Université de Lorraine - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: This paper introduces a general framework to analyse green efficiency and environmental productivity. Innovative environmental efficiency measures are introduced to define green productivity indices. Equivalence conditions for the additive and multiplicative green efficiency and productivity measures are displayed. In addition, the core components of environmental productivity change are defined. New implementation process of environmental efficiency and productivity assessment on convex and non convex pollution-generating technologies is proposed.
    Keywords: Data Envelopment Analysis,Environmental Efficiency Indices,Environmental Productivity Indicators,Non Convexity,Pollution-generating Technology
    Date: 2020–11–30
  18. By: U.J. Wagner; D. Kassem; A. Gerster; J. Jaraite-Kazukauske; M. Klemetsen; M. Laukkanen; J. Leisner; R. Martin; J.R. Munch; M. Muûls; A.T. Nielsen; L. de Preux; K.E. Rosendahl; S. Schusser
    Abstract: This paper presents first results from a new European-wide research network for evidence-based climate policy. Using administrative data on industrial firms in Denmark, Finland, France, Germany, Lithuania, Norway, and Sweden, we construct harmonized measures of carbon dioxide emissions per job. We characterize the distribution of this measure and explore how it varies across countries, two-digit industries, and over time. We relate those changes to participation in the EU Emissions Trading System - Europe's flagship climate policy instrument since 2005.
    Keywords: carbon dioxide emissions, manufacturing, climate policy, employment
    JEL: Q54 H23
    Date: 2020–12
  19. By: World Bank
    Keywords: Environment - Adaptation to Climate Change Environment - Climate Change Impacts Environment - Natural Disasters Science and Technology Development - Climate and Meteorology
    Date: 2020–04
  20. By: -
    Date: 2020–12–22
  21. By: Mabrouk, R.; Kurtyka, O.
    Abstract: We analyze firms' choice of abatement technology in vertical chains. A downstream polluting monopoly can buy a license from an upstream supplier with mature end-of-pipe equipment (outsider) or develop an in-house clean technology. Insiders innovation may be undertaken only to increase bargaining power of the polluter. We put the light on the strategic role of environmental regulation to influence this choice. We find that the role of regulator as a technology forcing authority is confirmed in regions of under-investment. However, under certain conditions, an over-investment occurs that forces the regulator to become laxer. Paradoxically, the regulator may oppose innovation even if the resulting technology is used by the innovator. All these results rely upon the creation of total profits from the integrated vertical structure.
    JEL: D43 H23 L13 Q42 Q58
    Date: 2020
  22. By: Bluhm, Richard; Polonik, Pascal; Hemes, Kyle; Sanford, Luke; Benz, Susanne; Levy, Morgan C.; Ricke, Katharine; Burney, Jennifer
    Abstract: Racial and ethnic minorities in the United States often experience higher-than-average exposures to air pollution. However, the relative contribution of embedded institutional biases to these disparities can be difficult to disentangle from physical environmental drivers, socioeconomic status, and cultural or other factors that are correlated with exposures under status quo conditions. Over the spring and summer of 2020, rapid and sweeping COVID-19 shelter-in-place orders around the world created large perturbations to local and regional economic activity that resulted in observable changes in air pollution concentrations, compositions, and distributions. Here, we use the pandemic-related emergency order and subsequent economic slowdown to causally estimate pollution exposure disparities in California. Using both public ground-based sensor data and a citizen-science network of monitors for respirable particulate matter (PM2.5), along with satellite records of nitrogen dioxide (NO2), we show that the initial sheltering-in-place period produced disproportionate air pollution reduction benefits for Asian, Hispanic/Latinx, and low- income communities. By linking these pollution data with weather, geographic, socioeconomic, and mobility data in difference-in-differences models, we demonstrate that these disparate pollution reductions cannot be explained by environmental conditions, geography, income, or local economic activity and are instead driven by non-local activity. This study thus provides causally-identified evidence of systemic racial and ethnic bias in pollution control under business-as-usual conditions.
    Date: 2020–12–16
  23. By: Beat Hintermann; Maja Žarković; Corrado Di Maria; Ulrich J. Wagner
    Abstract: We investigate productivity and cost pass-through of German manufacturing firms using administrative data from 2001 to 2014. Our framework allows for the estimation of quantity-based production functions for multi-product firms while controlling for unobserved productivity shocks and unobserved input quality. Using our parameter estimates, we can compute total factor productivity, markups and marginal costs. We find no effect of the EU ETS on firm productivity or profits for the whole sector, and a positive effect for some industries. Firms pass on shocks to materials costs completely, or even more than completely, whereas pass-through of energy costs is around 35-60%. Although pass-through of energy costs is incomplete, it nevertheless allowed firms to recover more than their total carbon costs due to generous free allocation of allowances. Our results add to the recent literature concerning the causal effects of climate policy on firms and are relevant for policy makers when defining the level of free allowance allocation to industry.
    Keywords: productivity, production function, cost pass-through, EU ETS, climate policy
    JEL: D24 H23 Q52 Q54
    Date: 2020–12
  24. By: Kakuho Furukawa (Bank of Japan); Hibiki Ichiue (Bank of Japan); Noriyuki Shiraki (Bank of Japan)
    Abstract: We survey the growing literature on the interaction between climate change, which is likely associated with a growing intensity and frequency of natural disasters, and the financial system. Assets, in particular properties, do not adequately price in climate risks although disclosure and communication help alleviate the mispricing of assets. Further, natural disasters restrict the credit supply from affected banks even in areas not directly hit by the disaster; however, this negative impact is less severe for banks with more capital. Meanwhile, insurance provides some protection for the economy, firms, and households against the impact of natural disasters, but there are several challenges such as low coverage and moral hazard. Finally, our survey considers policy implications for financial authorities.
    Keywords: Asset Pricing; Banking; Insurance; Climate Change; Natural Disaster; Financial Stability
    JEL: G12 G21 G22 G41 Q54 R31
    Date: 2020–12–24
  25. By: Marini, Marco A.; Tarola, Ornella; Thisse, Jacques-François
    Abstract: We study how the supply of environmentalism, which is de ned by psychic bene ts (costs) associated with the purchase of high-environmental (low-environmental) qualities, a¤ects the way rms choose their products and the ensuing consequences for the global level of pollution. Contrary to general belief, a high supply of environmentalism does not give rise to a better environmental outcome because it endows rms with more market power which they use to maximize pro ts. By contrast, standard policy instruments such as a minimum quality standard or the use of greener technologies leads to a better ecological footprint.
    Keywords: Environmental Economics and Policy
    Date: 2020–12–22
  26. By: Kadykalo, Andrew Nicholas; Johnson, Kris; McFatridge, Scott; Findlay, C. Scott
    Abstract: Although agricultural “best (or beneficial) management practices” (BMPs) first emerged to mitigate agro-environmental resource challenges, they may also enhance ‘non-provisioning’ ecosystem services. The enthusiasm for adopting BMPs partially depends on evidence that doing so will lead to agro-environmental benefits while not substantially reducing crop productivity or farmer income. We survey and synthesize evidence in the existing literature to document the joint effects on agricultural crop yield and 12 ecosystem service (ES) associated with implementation of 5 agricultural BMPs (crop rotations, cover crops, nutrient management, perennial vegetated buffers, reduced or no tillage). We also analyze the prevalence of co-benefits (‘win-win’), tradeoffs, and co-costs (‘lose-lose’) outcomes. On the basis of a set of contextual variables we then develop empirical models that predict the likelihood of co-benefits relative to tradeoffs, and co-costs. We found thirty-six studies investigating 141 combinations of crop yields and non-provisioning ES outcomes (YESs) in the relevant literatures covering the period 1983-2016. The scope of the review is global, but included studies are geographically concentrated in the U.S. Corn Belt (Midwestern United States). In the literature sample, reporting of co-benefits (26%) was much more prevalent than reporting of co-costs (4%) between yields and ES. Tradeoffs most often resulted in a reduction in crop yields and an increase in ES (28%); this was marginally greater than studies reporting a neutral influence on crop yields and an increase in ES (26%). Other Y/ES combinations were uncommon. Mixed-effects models indicated reduced tillage and crop rotations had generally positive associations with YESs. Temporal scale was an informative predictor suggesting studies with longer time scales resulted in greater positive outcomes on YESs, on average. Our results are a step towards identifying those contexts where co-benefits or partial improvement outcomes of BMPs are more likely to be realized, as well as the impact of particular practices on specific ES.
    Date: 2020–12–17
  27. By: Rick van der Ploeg; Armon Rezai
    Abstract: The tractable general equilibrium model developed by Golosov et al. (2014), GHKT for short, is modified to allow for additional negative impacts of global warming on utility and productivity growth, mean reversion in the ratio of climate damages to production, labour-augmenting technical progress, and population growth. We also replace the GHKT assumption of full depreciation of capital each decade by annual logarithmic depreciation. Furthermore, we allow the government to use a lower discount rate than the private sector. We derive a tractable rule for the optimal carbon price for each of these extensions which contain the GHKT model as a special case. Finally, the GHKT model is simplified by modelling temperature as cumulative emissions and calibrated to Burke et al. (2015) damages. We illustrate our analytical rules with a range of optimal policy simulations.
    Keywords: carbon price, tractable rule, general equilibrium, utility and growth damages, technical progress, population growth, logarithmic depreciation, differential discount rules
    JEL: H21 Q51 Q54
    Date: 2020
  28. By: Behrendt, Karl; Paparas, Dimitrios
    Keywords: Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Farm Management
    Date: 2020–09–25
  29. By: Simone Marsiglio; Privileggi, Fabio (University of Turin)
    Abstract: We analyze a two-sector stochastic economic growth model of green transition with pollution externalities and foreign capital. The final good is produced by combining dirty and clean inputs, with different implications on pollution accumulation. Pollution negatively affects production capabilities and can be reduced by switching to the clean input. The clean input is produced by using the dirty input and the foreign capital received (in the form of dirty input). Random shocks make the effective economy’s ability to transition to green activities highly uncertain, eventually undermining its economic development. Such a setting gives rise to a dynamic system represented by a three dimensional affine iterated function system. We show that the economy’s steady state is represented by an invariant measure supported on a compact set, characterizing its fractal nature and showing that its attractor may be a distorted Sierpi´nski tetrahedron.
    Date: 2020–10
  30. By: Felix Kapfhammer; Vegard H. Larsen; Leif Anders Thorsrud
    Abstract: The positive relationship between real exchange rates and natural resource income is well understood and studied. However, climate change and the transition to a lower-carbon economy now challenges this relationship. We document this by proposing a novel news media-based measure of climate change transition risk and show that when such risk is high, major commodity currencies experience a persistent depreciation and the relationship between commodity price fluctuations and currencies tends to become weaker.
    Keywords: exchange rates, climate, risk, commodities
    JEL: C11 C53 D83 D84 E13 E31 E37
    Date: 2020
  31. By: Oustry Antoine; Erkan Bunyamin; Svartzman Romain; Weber Pierre-François
    Abstract: Central banks increasingly acknowledge that climate change is a source of financial risks, which is likely to also impact their conduct of monetary policy. Against this backdrop, the aim of this paper is to explore one potential approach to factoring climate-related transition risks into a central bank’s collateral framework. Given the radical uncertainty associated with measuring such risks, this approach relies on so-called climate “alignment” methodologies, which enable to assess the consistency of eligible and pledged marketable assets with specific climate targets. Moreover, this paper proposes a “climate-hedging portfolio approach”: instead of seeking to “align” the collateral on an asset-by-asset basis, central banks could aim for “alignment”, in aggregate, of the collateral pools pledged by their counterparties with a given climate target. The rationale for this choice is that assessing climate-related risk at the pool level avoids the Eurosystem having to decide on which assets/issuers in the pools should be excluded or capped, and is therefore more compatible with a market neutrality approach. The numerical experiment using Eurosystem marketable criteria data suggests that, in aggregate, neither the Eurosystem eligible collateral universe nor the collateral pledged is “aligned” with the climate targets of the European Union. From this perspective, the Eurosystem marketable collateral can be considered to be exposed to climate-related transition risks. We discuss the potential practical implications of aiming to “align” collateral pools, and suggest avenues for further work.
    Keywords: Monetary policy, Collateral framework, Climate change, Risk and uncertainty, Eurosystem.
    JEL: D81 E52 E58 G32 Q51 Q54
    Date: 2020
  32. By: Christophe Bellmann; Colette van der Ven
    Abstract: This report explores how regional trade agreements (RTAs) can serve as a vehicle to reflect environmental objectives in chapters and articles dealing with technical barriers to trade and regulatory co-operation. In particular, the analysis builds upon examples from seven recent RTAs that aim at deep economic integration, and explores ways to further incorporate environmental objectives. The report identifies a range of options to reconcile economic and environmental objectives, related to areas of technical barriers to trade and regulatory co-operation, by incorporating environmental considerations as overarching principles, provisions on regulatory impact assessments and ex post evaluations, non-regression clauses, and dedicated chapters and sectoral annexes.
    JEL: F13 F18 R11 Q56
    Date: 2020–12–22
  33. By: Jeanne Amar (Université Côte d'Azur, France; GREDEG CNRS); Samira Demaria (Université Côte d'Azur, France; GREDEG CNRS); Sandra Rigot (University Paris 13; CEPN)
    Abstract: As climate change introduces more risks and uncertainties into the economy and the financial system, information failures limit the understanding of its financial impact on companies. In order to create the necessary conditions for transparency regarding these risks, the Financial Stability Board has set up an international working group, the Task Force on Climate-related Financial Disclosures (TCFD), with the aim of enhancing climate related corporate disclosures. On the basis of these recommendations and using a rigorous methodology, we develop an original composite index: the Climate Risks and Opportunities Reporting Index (CRORI). This reliable and reproducible index is the first indicator providing a standardized measure of the extent to which companies comply with the TCFD's recommendations. Then, in order to ensure the robustness of our index, we calculate the CRORI of CAC 40 companies over the period 2015-2018. Using various statistical techniques (Cronbach alpha, principal component analysis, etc.), we conclude that the CRORI methodology is satisfactory. Moreover, such an empirical analysis gives a first insight into the evolution of companies' compliance with the TCFD recommendations. Our results reveal a trend towards improved voluntary disclosure of climate-related information, particularly in the case of large companies and CO2-intensive companies.
    Keywords: climate disclosures, CSR reporting, climate-related risk, TCFD recommendations
    JEL: G38 M41 Q51 Q56 F39 G3
    Date: 2020–12
  34. By: Alem, Yonas; Hassen, Sied; Köhlin, Gunnar
    Abstract: We use a field experiment to identify how differences in preferences and autonomy in decision-making result in low willingness-to-pay (WTP) for technologies that can benefit all members of the household. We create income earning opportunities to empower households and elicit their WTP for fuel, time and indoor air pollution-reducing improved cookstoves through a real stove purchase experiment. The decision to buy the stove was randomly assigned to either wives, husbands or couples. Experimental results suggest that wives, who often are responsible for cooking and collecting fuelwood, are willing to pay 57% more than husbands, and 39% more than couples. Wives who earned their own income are willing to pay 67% more than husbands who earned their own income, and 45% more than couples. Results also show that women who have higher reported decision-making autonomy are willing to pay substantially more than those with lower decision-making autonomy. A follow up survey conducted 15 months after the stove purchase shows that neither the treatments nor decision-making autonomy have any effect on stove use. Our findings highlight the importance of considering division of labor, preference difference and decisionmaking autonomy within the household when promoting adoption of new household technologies, and that simple income earning opportunities enable poor women to make decisions that are in their best interest.
    Keywords: preference,decision-making autonomy,willingness-to-pay
    JEL: C78 C93 D13 O12 Q56
    Date: 2020
  35. By: World Bank
    Keywords: Environment - Forests and Forestry Environment - Sustainable Land Management Rural Development - Forestry Rural Development - Rural Land Policies for Poverty Reduction
    Date: 2020–04
  36. By: Juhee Bae (University of Skovde, Sweden); John Aoga (University of Abomey-Calavi, Bénin); Stefanija Veljanoska (Université de Rennes 1, France); Siegfried Nijssen (ICTEAM, Université catholique de Louvain); Pierre Schaus (ICTEAM, Université catholique de Louvain)
    Abstract: A growing attention in the empirical literature has been paid on the incidence of climate shocks and change on migration decisions. Previous literature leads to different results and uses a multitude of traditional empirical approach. This paper proposes a tree-based Machine Learning (ML) approach to analyze the role of the weather shocks towards an individual’s intention to migrate in the six agriculture-dependent economy countries such as Burkina Faso, Ivory Coast, Mali, Mauritania, Niger, and Senegal. We perform several tree-based algorithms (e.g., XGB, Random Forest) using the train-validation test workflow to build robust and noise-resistant approaches. Then we determine the important features showing in which direction they are influencing the migration intention. This ML based estimation accounts for features such as weather shocks captured by the Standardized Precipitation-Evapotranspiration Index (SPEI) for different timescales and various socioeconomic features/covariates. We find that (i) weather features improve the prediction performance although socioeconomic characteristics have more influence on migration intentions, (ii) country-specific model is necessary, and (iii) international move is influenced more by the longer timescales of SPEIs while general move (which includes internal move) by that of shorter timescales.
    Keywords: Migration, Weather shocks, Machine learning, Tree-based algorithms
    Date: 2020–11–02
  37. By: World Bank
    Keywords: Environment - Air Quality & Clean Air Environment - Brown Issues and Health Environment - Pollution Management & Control
    Date: 2020–03
  38. By: Szetey, Katrina; Moallemi, Enayat A.; Ashton, Emma; Butcher, Martin C; Sprunt, Beth; Bryan, Brett A.
    Abstract: Sustainability planning is required to achieve sustainable development across the world at all scales. Such planning should be aligned with and grounded in the United Nations Sustainable Development Goals (SDGs) to be comparable across scales, and use participatory techniques to understand local contexts. Planning for urban sustainability using the SDGs is well developed, but this concept has not yet been extended to rural sustainability. We describe an approach to co-create a local sustainability plan using the SDGs for a rural community in south-eastern Australia using participatory techniques for co-creation, data collection and review. We found that the community believes that infrastructure is fundamental to achieving sustainable growth and social equity while preserving their unique environment. By articulating their priorities in this community-led plan, the community are empowered to advocate for the sustainable development of their town with decision-makers and funding bodies. If rural communities create sustainability plans using the SDGs, then such planning will be consistent between and across scales, and aligned with the global goals. This will also aid in achievement of the SDGs at national and global scales, as suggested by the United Nations in the 2030 Agenda for Sustainable Development.
    Date: 2020–12–16
  39. By: Michael Grubb (University College London); Rutger-Jan Lange (Erasmus University of Rotterdam); Nicolas Cerkez (University College London); Pablo Salas (University of Cambridge); Jean-Francois Mercure (University of Exeter); Ida Sognnaes (University of Oslo)
    Abstract: Induced innovation and associated issues of path dependence and inertia are of critical importance in the transition to a carbon free economy. We develop a model that, instead of modeling these processes themselves, models the implications of these characteristics and in the process allows us to shed a more nuanced light on this transition phase, an often neglected task. The resulting policy recommendations emphasize the advantages of immediate action and show under what conditions optimal policy might differ from one sector to another. The model thus generates important and policy-relevant insights while seriously considering transition dynamics.
    Keywords: abatement, DICE, energy economics, inertia, innovation, path dependence, transition
    JEL: C61 O30 Q30 Q42 Q43 Q54 Q58
    Date: 2020–12–21
  40. By: Antoine GODIN; Paul HADJI-LAZARO
    Abstract: When trying to assess the economic consequences of a transition to a low carbon economy, it might seem reasonable to concentrate on the sectors using carbon-intensive technologies and thus emitting important amounts of Greenhouse gases. We however show in this study that non-emitting sectors might nonetheless be vulnerable to transition risks. To do so, we develop a simple methodology that combines Input-Output tables with sectoral financial data to assess the exposure and financial sensitivity of all sectors to simplified transition scenarios in the case of South Africa.
    JEL: Q
    Date: 2020–12–22
  41. By: Hasna Moussafir (LRSG - Laboratoire de Recherche en Sciences de Gestion -LRSG- Université Hassan 1er)
    Abstract: Socially Responsible Investment (SRI) is a style of financial investment that involves integrating environmental, social and governance criteria into investment decisions in addition to conventional financial criteria. As for Corporate Social Responsibility (CSR), it translates into the application of the principles of sustainable development at the company level. This paper provides conceptual insight into the two mutually interacting SRI and CSR practices, and highlights the different facets of this interaction and the role of this close link in supporting sustainable development.
    Abstract: (ISR) est un style d'investissement financier qui consiste à intégrer des critères environnementaux, sociaux et de gouvernance dans les décisions d'investissement en plus des critères financiers classiques. Quant à la Responsabilité Sociale de l'Entreprise (RSE), elle se traduit par l'application des principes du développement durable à l'échelle de l'entreprise. Ce papier fournit un éclairage conceptuel des deux pratiques d'ISR et de RSE qui ne cessent d'interagir mutuellement, et met en lumière les différentes facettes de cette interaction et le rôle de ce lien étroit dans le soutien du développement durable.
    Keywords: Socially Responsible Investment (SRI),Corporate Social Responsibility (CSR),Sustainable Development.,Investissement Socialement Responsable (ISR),Responsabilité Sociale de l’Entreprise (RSE),Développement durable
    Date: 2019–07–30
  42. By: van 't Klooster, Jens; van Tilburg, Rens
    Abstract: Since their introduction in 2014, the European Central Bank’s Targeted Longer-Term Refinancing Operations (TLTROs) have become ever larger and ever more attractive for banks. As they increasingly drive bank lending, TLTROs often enable unsustainable investments. This report proposes Green TLTROs, which are refinancing operations that provide banks with cheap funding if they lend in accordance with the EU’s taxonomy of green activities. We discuss the legality of such a market-based programme and show that it is compatible with a level playing field between banks and the singleness of monetary policy. We outline several possible technical designs of the Green TLTROs and suggest a pilot programme for energy efficient housing that can quickly be implemented.
    Date: 2020–12–18
  43. By: Martínez, Juliana; Sánchez-Ancochea, Diego
    Abstract: Este documento aborda el papel de los pactos sociales orientados a garantizar el bienestar de la población en América Latina y el Caribe mediante un análisis que combina ideas y conceptos del enfoque de recursos de poder y del institucionalismo histórico. Para ello, desde una perspectiva comparada internacional, se considera el poder de las élites, el papel de los movimientos sociales y la relevancia de las arquitecturas de política social, es decir, la forma en que las acciones y los programas se diseñan desde un inicio. El componente empírico del análisis se basa en algunos estudios de caso específicos, tanto de acuerdos puntuales de corto plazo como de pactos más amplios con implicancias de largo plazo sobre los sistemas de protección social. El documento ofrece una serie de conclusiones y recomendaciones orientadas a la reflexión respecto de la generación de pactos sociales para afrontar un futuro incierto que, mediado por la pandemia y sus consecuencias sociales, económicas y sanitarias, logre encaminarse hacia sociedades con mayor igualdad y cohesión social.
    Date: 2020–12–22
  44. By: World Bank Group
    Keywords: Urban Development - National Urban Development Policies & Strategies Urban Development - Urban Economic Development Water Resources - Coastal and Marine Resources Environment - Sustainable Land Management
    Date: 2020–04
  45. By: David Le Blanc
    Abstract: Supreme audit institutions (SAIs) have started to audit the implementation of the Sustainable Development Goals (SDGs). While there is no one single audit model or approach to audit SDG implementation, audits should incorporate a few core methodological features related to the principles of the 2030 Agenda. Four methodological and practical challenges associated with conducting performance audits of SDG implementation, as they differ from traditional audits, are discussed in this paper: 1) problem definition, including the level of investigation in the SDG hierarchy of goals and targets and the audit scope; 2) conceptual challenges inherent in going from the level of individual entities or programs to that of whole-of-government performance; 3) practical considerations that should inform an analysis of the coherence of government actions in a given policy area; and 4) the ways in which audit guidance at the international level can help individual SAIs going forward. Ultimately, this paper aims to inform the broader discussion on evaluation of the SDGs.
    Keywords: Sustainable development goals; sustainable development; government accountability; supreme audit institutions; monitoring and evaluation; policy evaluation; external audit
    JEL: H83 O19 O20
    Date: 2020–05
  46. By: Gabriel J. Felbermayr; Jasmin Katrin Gröschl; Benedikt Heid
    Abstract: We estimate the short-run trade effects of natural disasters using monthly trade data and data on the physical intensity of earthquakes and storms. We find large negative effects for heavily indebted poor, least developed or landlocked developing countries but only small effects for other economies. We use our estimates to identify key parameters of a dynamic quantitative trade model to disentangle the effects of disasters on supply, demand, and welfare and their spillovers on third countries via trade linkages. We apply our model to quantify the effects of the 1992 earthquake in Nicaragua, a small, heavily indebted poor country, and the 2011 Tohoku earthquake in Japan, a large developed economy. We find that spillovers are negligible if the country affected by a disaster is small but sizable for large economies. Similar disasters have heterogeneous effects on countries’ demand and supply, highlighting the importance of event-specific policies in the aftermath of disasters.
    Keywords: economic effects of natural disasters, monthly trade data, dynamic quantitative trade model, earthquakes, storms
    JEL: F14 F18 Q54 C68
    Date: 2020
  47. By: Christian Krekel; Julia Rechlitz; Johannes Rode; Alexander Zerrahn
    Abstract: Although there is strong support for renewable energy plants, they are often met with local resistance. We quantify the externalities of renewable energy plants using well-being data. We focus on the example of biogas, one of the most frequently deployed technologies besides wind and solar. To this end, we combine longitudinal household data with novel panel data on more than 13,000 installations in Germany. Identification rests on a spatial difference-in-differences design exploiting exact geographical coordinates of households, biogas installations and wind direction and intensity. We find limited evidence for negative externalities: impacts are moderate in size and spatially confined to a radius of 2, 000 metres around plants. We discuss implications for research and regional planning, in particular minimum setback distances and potential monetary compensations.
    Keywords: renewables, biogas, externalities, social acceptance, wellbeing, spatial analysis, economic geography
    JEL: C23 Q42 Q51 R20
    Date: 2020–12
  48. By: J. Eduardo Vera-Valdés (Aalborg University and CREATES)
    Abstract: Econometric studies for global heating have typically used regional or global temperature averages to show that they exhibit long memory properties. One typical explanation behind the long memory properties of temperature averages is cross-sectional aggregation. Nonetheless, the formal analysis regarding the effect that aggregation has on the long memory dynamics of temperature data has been missing. Thus, this paper studies the long memory properties of individual grid temperatures and compares them against the long memory dynamics of global and regional averages. Our results show that the long memory parameters in individual grid observations are smaller than the ones from regional averages. Global and regional long memory estimates are found to be greatly affected by temperature measurements at the Tropics, where the data is less reliable. Thus, this paper supports the notion that aggregation may be exacerbating the long memory estimated in regional and global temperature data. The results are robust to the bandwidth parameter, limit for station radius of influence, and sampling frequency.
    Keywords: Global Heating, Temperature Anomalies, Climate Econometrics, Long Memory, Aggregation
    JEL: Q54 C22 C43 C14
    Date: 2020–12–16
  49. By: Rodríguez, Adrián G.; Aramendis, Rafael H.; Deana, Atilio; García, Randall; Pittaluga, Lucía
    Abstract: Colombia, Costa Rica y el Uruguay han desarrollado soluciones científico-tecnológicas nacionales en materia de métodos de diagnóstico y tratamientos, equipamiento biomédico para la enfermedad por coronavirus (COVID-19) y genómica del coronavirus del síndrome respiratorio agudo severo de tipo 2 (SARS-CoV-2). Para ello ha sido fundamental la rápida movilización de capacidades existentes, potenciadas durante la pandemia mediante la colaboración entre los sectores público, privado y de ciencia y tecnología. Las soluciones desarrolladas han permitido sustituir soluciones importadas, lo que señalaría posibles márgenes de soberanía tecnológica inutilizados, que podrían aprovecharse mediante estrategias nacionales de bioeconomía. Estos estudios permiten identificar lecciones para la implementación de esas estrategias, incluidas la demostración de que es posible la colaboración efectiva entre entidades públicas, privadas y de ciencia y tecnología, para movilizar capacidades y recursos existentes, la posibilidad de articular mecanismos de financiamiento expeditos, la integración y uso de nuevas tecnologías, la relevancia de la complementación entre las formaciones profesional y técnica, y la importancia de los clústeres como estrategia para el desarrollo de la bioeconomía y del poder de convocatoria y compra del Estado.
    Date: 2020–12–23
  50. By: Maciej Stefański
    Abstract: The paper estimates dynamic effects of pandemics on GDP per capita with local projections, controlling for the effects of wars and weather conditions, using a novel dataset that covers 33 countries and stretches back to the 13th century. Pandemics are found to have prolonged and highly statistically significant effects on GDP per capita - a pandemic killing 1% of the population tends to increase GDP per capita by approx. 0.3% after about 20 years. The results are qualitatively robust to various model specifications, geographical division of the sample and an exclusion of extreme events such as the Black Death and the New World epidemics. The effects of pandemics differ from those of wars and weather, which are negative and die out quicker, in line with the neoclassical growth model.
    Keywords: pandemic, GDP, local projection, economic history, war, tree rings
    JEL: I15 N10 N30 N40 N50 O47
    Date: 2020–12
  51. By: Morales, Ana Luisa; Hantke Domas, Michael
    Abstract: En este documento se brinda orientación a los responsables de la toma de decisiones sobre los requisitos mínimos que los titulares mineros deben cumplir en el proceso de cierre y poscierre de minas. Con este objeto, se propone la realización de una serie de acciones, teniendo en cuenta la realidad de la minería en los países andinos de América Latina y sus diferentes escalas industriales. Se ofrece una caracterización de la pequeña, la mediana y la gran minería y, partiendo del reconocimiento de en que la legislación de estos países se regulan los aspectos ambientales del cierre y el poscierre de minas, se hace hincapié en la estabilidad mecánica del suelo y el control del drenaje de residuos ácidos. Asimismo, se proponen criterios para la exigencia de garantías financieras, a fin de asegurar los recursos necesarios para sufragar el costo de las acciones previstas en los planes. La presente propuesta se basa en un estudio preliminar sobre la regulación del cierre y del poscierre en cinco países andinos e incluye un análisis de las eventuales responsabilidades de los Estados y los operadores mineros por la no adopción de estándares ambientales y de derechos humanos en el cierre de minas.
    Date: 2020–12–23
  52. By: Mounir Amdaoud (CEPN - Centre d'Economie de l'Université Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord - USPC - Université Sorbonne Paris Cité - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UP - Université de Paris - Université Sorbonne Paris Nord)
    Abstract: Les ressources naturelles ont été souvent analysées dans la littérature économique comme étant non compatibles avec le développement économique (Auty, 2001 ; Gylfason, 2001 ; Sacks & Warner, 1995). L'objet de ce papier est de revenir sur l'analyse du lien qui caractérise les ressources naturelles et le développement économique. Pour ce faire, nous mobilisons une nouvelle approche basée sur les théories évolutionnistes et institutionnelle qui porte la focale sur l'importance de la dynamique d'apprentissage et de création de nouvelles connaissances notamment dans les économies riches en ressources naturelles. Les résultats obtenus dans notre étude sur près de 100 pays montrent que certaines des économies les plus avancés et les plus riches au monde sont des économies basées sur les ressources naturelles. Par conséquent, la malédiction serait davantage dans l'apprentissage et la construction de compétences que dans les ressources.
    Keywords: Ressources naturelles,rente,croissance économique,institutions,innovation,apprentissage,compétences O13,O31,O43
    Date: 2020–12–12
  53. By: Mounir Amdaoud (CEPN - Centre d'Economie de l'Université Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord - USPC - Université Sorbonne Paris Cité - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UP - Université de Paris - Université Sorbonne Paris Nord)
    Abstract: Les ressources naturelles ont été souvent analysées dans la littérature économique comme étant non compatibles avec le développement économique (Auty, 2001 ; Gylfason, 2001 ; Sacks & Warner, 1995). L'objet de ce papier est de revenir sur l'analyse du lien qui caractérise les ressources naturelles et le développement économique. Pour ce faire, nous mobilisons une nouvelle approche basée sur les théories évolutionnistes et institutionnelle qui porte la focale sur l'importance de la dynamique d'apprentissage et de création de nouvelles connaissances notamment dans les économies riches en ressources naturelles. Les résultats obtenus dans notre étude sur près de 100 pays montrent que certaines des économies les plus avancés et les plus riches au monde sont des économies basées sur les ressources naturelles. Par conséquent, la malédiction serait davantage dans l'apprentissage et la construction de compétences que dans les ressources.
    Keywords: Ressources naturelles,rente,croissance économique,institutions,innovation,apprentissage,compétences O13,O31,O43
    Date: 2020–12–12
  54. By: Stefano Carattini; Andreas Löschel
    Abstract: The Conference of the Parties (COP) has proven a valuable outlet to advance the climate agenda. The combination of high media coverage, extremely high expectations set by influential environmentalists, and unanimity rules has, however, started to limit its effectiveness. Technical issues can legitimately require years to be addressed. Delays on such issues should not lead society to ignore progress in other areas. If anything, defining expectations based on technical issues creates more incentives for unwilling countries to delay action and spread pessimism. The coronavirus is bad news for climate action, but also provides opportunities. The absence of a session of the COP in 2020 gives negotiators additional time to address technical issues behind the scenes, including through club approaches. Virtual forums can be used to increase interactions, also involving top diplomats. The extra time also allows global leaders and influential environmentalists to improve their communication strategies, increasing ambition while effectively managing momentum.
    Keywords: international environmental agreements, cooperation, beliefs, climate change
    JEL: D71 D84 F53 Q54
    Date: 2020
  55. By: Peride K. Blind
    Abstract: The humanitarian-development divide has long been a contentious debate in both academia and government. Despite the recent surge in the cost, frequency, duration and severity of humanitarian crises, humanitarian and development disciplines and communities of practice have continued to operate in silos. This article aims to bridge the humanitarian-development divide by interlinking the Agenda for Humanity and the 2030 Agenda for Sustainable Development. The newly proposed context-conflict-contingency model of humanitarian-development connections constitutes the conceptual foundation, which is then tested by the findings of the network analysis of the 169 SDG targets of the 2030 Agenda and the 5 responsibilities, 24 transformations and 32 core commitments of the Agenda for Humanity. The basic premise is that if policy makers can locate the linkages between the two agendas, they can more readily think about how certain SDG targets can work towards the achievement of both development and humanitarian goals. Steps that lead to operational guidelines for doing so are not covered in this article. They could be the topic of the next research agendas.
    Keywords: sustainable development, Sustainable Development Goals, SDGs, development, development planning, humanitarian-development divide, conflict, conflict resolution, crisis management, peace, policy formulation, public policy
    JEL: D74 D78 J18 O19 O20 O21 Q01
    Date: 2019–05

This nep-env issue is ©2021 by Francisco S. Ramos. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.