|
on Environmental Economics |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | The study examines nexuses between carbon dioxide (CO2) emissions, renewable energy consumption and inequality in 39 Sub-Saharan African countries for the period 2004-2014. The empirical evidence is based on Quantile regressions. First, in the 25th quantile of the inequality distributions, as long as CO2 emissions metric tons per capita are kept below 4.700 (4.100), the Gini coefficient (Atkinson index) will not increase. These are avoidable CO2 emissions thresholds. Second, renewable energy consumption should be complemented with other policies to: (i) reduce the Gini coefficient when renewable energy consumption is at 50.00% of total final energy consumption and (ii) mitigate the Atkinson index when renewable energy consumption is at 62.500 % of total final energy consumption in the bottom quantiles of the Atkinson index distribution and at 50.00% of total final energy consumption in the 75th quantile of the Atkinson index distribution. These are renewable energy consumption thresholds for complementary policies. The novelty of this study in the light of extant literature is fundamentally premised on providing policy makers with avoidable thresholds of CO2 emissions as well as corresponding thresholds of renewable energy consumption for complementary policies, in the nexus between the green economy and inequality. |
| Keywords: | Renewable energy; Inequality; Finance; Sub-Saharan Africa; Sustainable development |
| JEL: | H10 Q20 Q30 O11 O55 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/097&r=all |
| By: | Rania Hentati-Kaffel (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Alessandro Ravina (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper assesses the impact of low-carbon policy on stock returns by means of an environmental extension of Fama and French's (2015) five factor model. This paper makes four major contributions. Firstly, for the first time a factor, GMC (green minus carbon), meant to provide the premium which results from not paying a carbon price is constructed. The GMC factor is obtained by means of a sample of 182 firms from 19 European countries operating in 35 sectors: from January 2008 to December 2018 the value-weight returns of 91 firms regulated by the 2003/87/CE directive are subtracted from the value-weight returns of 91 firms exempted by the 2003/87/CE directive upon which the EU-ETS is based. Secondly, we provide evidence that the addition of the GMC factor improves the performance of the 5 factor model in Europe in the 2008-2018 time span. Thirdly, results show that there is a high green premium rather than a carbon premium as it was asserted by parts of the literature, and that this green premium is highly statistically significant. Fourthly, after performing a carbon stress test, we show the effects of EU-ETS average price shocks on both carbon and green firms for each market cap tranche. |
| Keywords: | Low-carbon transition risks,EU-ETS,CO2 emissions,asset pricing model,green premium |
| Date: | 2020–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03045804&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | The study investigates conclusions from the scholarly literature that for low and middle-income countries, higher income inequality is linked with lower carbon dioxide (CO2) emissions. Using a sample of 39 sub-Saharan countries consisting of lower- and middle-income countries, this study investigates how increasing inequality affects renewable energy consumption. Three income inequality indicators are used, namely: the Gini coefficient, the Palma ratio and Atkinson index. The empirical evidence is based on quadratic Tobit regressions. The investigated assumption is only partially valid because a net positive impact is apparent only in one of the three income inequality variables used in the study. Hence, it is difficult to establish whether the inequality or equality hypothesis underpinning the nexus between income inequality and renewable energy consumption hold for Sub-Saharan Africa. However, based on the significant results in terms of the threshold, the equality hypothesis is valid when the Atkinson index is below a threshold of 0.6180 while the inequality hypothesis becomes valid when the Atkinson index exceeds the threshold of 0.6180. Hence, as the main policy implication, for the equitable redistribution of income to be promoted and, therefore, for policies that favor income inequality for renewable energy consumption not to be encouraged, policy makers should keep the Atkinson index below a threshold of 0.6180. An implication for Europe and/or high income countries is provided, notably, that the equality hypothesis on the nexus between income inequality and CO2 emissions may not withstand empirical scrutiny but contingent on: (i) the measurements of income inequality and (ii) inequality thresholds when a specific income inequality measurement is retained. |
| Keywords: | Renewable energy; Inequality; Sub-Saharan Africa; Sustainable development |
| JEL: | H10 Q20 Q30 O11 O55 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/094&r=all |
| By: | Francesca Diluiso (Mercator Research Institute on Global Commons and Climate Change (MCC)); Barbara Annicchiarico (DEF and CEIS, Università di Roma "Tor Vergata"); Matthias Kalkuhl (Mercator Research Institute on Global Commons and Climate Change (MCC) & University of Potsdam); Jan C. Minx (Mercator Research Institute on Global Commons and Climate Change (MCC) & Priestley International Centre for Climate, university of Leeds) |
| Abstract: | Limiting global warming to well below 2°C may result in the stranding of carbon-sensitive assets. This could pose substantial threats to financial and macroeconomic stability. We use a dynamic stochastic general equilibrium model with financial frictions and climate policy to study the risks a low-carbon transition poses to financial stability and the different instruments central banks could use to manage these risks. We show that, even for very ambitious climate targets, transition risks are limited for a credible, exponentially growing carbon price, although temporary \green paradoxes" phenomena may materialize. Financial regulation encouraging the decarbonization of the banks' balance sheets via tax-subsidy schemes significantly reduces output losses and inflationary pressures but it may enhance financial fragility, making this approach a risky tool. A green credit policy as a response to a financial crisis originated in the fossil sector can potentially provide an effective stimulus without compromising the objective of price stability. Our results suggest that the involvement of central banks in climate actions must be carefully designed in compliance with their mandate to avoid unintended consequences. |
| Keywords: | Climate policy, financial instability, financial regulation, green credit policy monetary policy; transition risk |
| JEL: | E50 H23 Q43 Q50 Q58 |
| Date: | 2020–07–22 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:501&r=all |
| By: | Marie-Noëlle Woillez (IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer, AFD - Agence française de développement); Gaël Giraud (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, GU - Georgetown University [Washington], Chaire Energie & Prospérité - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - Institut Louis Bachelier); Antoine Godin (AFD - Agence française de développement, 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: | Anthropogenic climate change raises growing concerns about its potential catastrophic impacts on both ecosystems and human societies. Yet, several studies on damage induced on the economy by unmitigated global warming have proposed a much less worrying picture of the future, with only a few points of decrease in the world gross domestic product (GDP) per capita by the end of the century, even for a global warming above 4 ∘C. We consider two different empirically estimated functions linking GDP growth or GDP level to temperature at the country level and apply them to a global cooling of 4 ∘C in 2100, corresponding to a return to glacial conditions. We show that the alleged impact on global average GDP per capita runs from −1.8 %, if temperature impacts GDP level, to +36 %, if the impact is rather on GDP growth. These results are then compared to the hypothetical environmental conditions faced by humanity, taking the Last Glacial Maximum as a reference. The modeled impacts on the world GDP appear strongly underestimated given the magnitude of climate and ecological changes recorded for that period. After discussing the weaknesses of the aggregated statistical approach to estimate economic damage, we conclude that, if these functions cannot reasonably be trusted for such a large cooling, they should not be considered to provide relevant information on potential damage in the case of a warming of similar magnitude, as projected in the case of unabated greenhouse gas emissions. |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-03102681&r=all |
| By: | Marie-Noëlle Woillez (IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer, AFD - Agence française de développement); Gaël Giraud (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, GU - Georgetown University [Washington], Chaire Energie & Prospérité - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - Institut Louis Bachelier); Antoine Godin (AFD - Agence française de développement, 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: | Anthropogenic climate change raises growing concerns about its potential catastrophic impacts on both ecosystems and human societies. Yet, several studies on damage induced on the economy by unmitigated global warming have proposed a much less worrying picture of the future, with only a few points of decrease in the world gross domestic product (GDP) per capita by the end of the century, even for a global warming above 4 ∘C. We consider two different empirically estimated functions linking GDP growth or GDP level to temperature at the country level and apply them to a global cooling of 4 ∘C in 2100, corresponding to a return to glacial conditions. We show that the alleged impact on global average GDP per capita runs from −1.8 %, if temperature impacts GDP level, to +36 %, if the impact is rather on GDP growth. These results are then compared to the hypothetical environmental conditions faced by humanity, taking the Last Glacial Maximum as a reference. The modeled impacts on the world GDP appear strongly underestimated given the magnitude of climate and ecological changes recorded for that period. After discussing the weaknesses of the aggregated statistical approach to estimate economic damage, we conclude that, if these functions cannot reasonably be trusted for such a large cooling, they should not be considered to provide relevant information on potential damage in the case of a warming of similar magnitude, as projected in the case of unabated greenhouse gas emissions. |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03102681&r=all |
| By: | Stefan Mittnik; Willi Semmler; Alexander Haider |
| Abstract: | Recent research in financial economics has shown that rare large disasters have the potential to disrupt financial sectors via the destruction of capital stocks and jumps in risk premia. These disruptions often entail negative feedback e?ects on the macroecon-omy. Research on disaster risks has also actively been pursued in the macroeconomic models of climate change. Our paper uses insights from the former work to study disaster risks in the macroeconomics of climate change and to spell out policy needs. Empirically the link between carbon dioxide emission and the frequency of climate re-lated disaster is investigated using cross-sectional and panel data. The modeling part then uses a multi-phase dynamic macro model to explore this causal nexus and the e?ects of rare large disasters resulting in capital losses and rising risk premia. Our proposed multi-phase dynamic model, incorporating climate-related disaster shocks and their aftermath as one phase, is suitable for studying mitigation and adaptation policies. |
| Keywords: | Bonds;Greenhouse gas emissions;Climate change;Climate policy;Stocks;WP,monetary policy,capital stock,low income,risk pooling |
| Date: | 2019–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/145&r=all |
| By: | Vivekanand Jha |
| Abstract: | In the last few decades, growth-rate of population is phenomenal and the environment is not in a position to sustain the extra load being imposed on it. Thus the study was conducted to focus on the effect of population explosion on air pollution, water pollution, deforestation, depletion of ozone layer, extinction of different species and global warming. The study comprised of 100 college teachers selected by cluster multistage sampling. Survey was conducted to collect the data by the self-made tools. The data was grouped and analysed by F-test. The paper clarifies the effect of population explosion on air pollution, water pollution, deforestation, depletion of ozone layer, extinction of different species and global warming. The resources of the environment are limited and they are urgently required to be preserved which is not feasible residing in the areas without checking the present growth rate of population. Key Words: air pollution, water pollution, deforestation, depletion of ozone layer, extinction of different species, global warming, soil degradation, climate change, pollution, deforestation, birth control, education. Policy |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:vor:issues:2020-35-02&r=all |
| By: | De Bauw, Michiel; Matthys, Christophe (KU Leuven); Poppe, Veerle; Vranken, Liesbet |
| Abstract: | The application of Nutri-Score on food products is ubiquitous throughout Europe and studies demonstrating its potential to stimulate healthier food choices are accumulating. At the same time, there remains a strong need to evenly harmonize and activate the communication of environmental impacts on food products, in synergy with the Nutri-Score. This brings up the question of whether the potential of Nutri-Score could be expanded to a similar ‘Eco-Score’ and equivalently encourage more environmentally friendly food choices. The present study investigated the effect of a combined NutriScore and Eco-Score on the nutritional quality and environmental impact of consumers’ food choices. This effect was compared to, on the one hand, dietary recommendations (both general and specific) and on the other hand, more detailed impact tables. Since visual distraction often plays a role in informative persuasion, the treatments were evaluated subject to different levels of distraction. A randomized control trial was conducted with a representative sample of 805 Belgian consumers in a mock-up E-grocery environment. Respondents were randomly allocated to treatments in which they were asked to hypothetically buy ingredients to prepare one meal. An average nutritional quality index (NQI) and environmental impact index (EII) of the selected baskets were calculated to evaluate outcomes. We find that a joint Nutri-Score and Eco-Score label improves the NQI but not the EII. The general- and specific recommendation as well as the detailed information also improved the NQI. However, the specific recommendation was the only treatment that also improved the EII. We find mild indications that the effectiveness of Nutri-Score is affected by the nearby presence of food product images. This study provided some first evidence and support for the use of dual Nutri-Score – Eco-Score label to induce transitions towards healthier and more sustainable diets. We also find that recommendations outside the classic Front-Of-Package label framework are also a promising way to realize such transition. However, the effect in real E-groceries and on longer terms remains to be explored. |
| Date: | 2021–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:evzyf&r=all |
| By: | Claire Brunel; Arik Levinson |
| Abstract: | The US has been a global leader in regulating local air pollution and a global laggard in regulating greenhouse gases (GHGs). For decades, critics of US policy have expressed fears that stringent US regulations on local air pollution would lead to pollution havens overseas. Prior research, suggests that has not happened. But what about the converse fear? Are the less stringent US climate regulations causing the US to become a pollution haven for other countries’ GHG-intensive industries? We provide a decomposition of US manufacturing GHG emissions and find no evidence of offshoring either to or from the United States since 1990. |
| JEL: | F18 Q56 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28372&r=all |
| By: | Jacques Fontanel (CESICE - Centre d'études sur la sécurité internationale et les coopérations européennes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UPMF - Université Pierre Mendès France - Grenoble 2) |
| Abstract: | It is possible to identify four uses of water: daily access; water policy within sovereign states, in the realisation of negotiated choices between the consumption of heterogeneous social groups; hydro-politics between states concerning regions with shared water areas, and finally global water policy in the framework of collective reflection. It is also necessary to highlight the conflicts over the use of water, which is becoming scarcer in its drinking form and which has to cope with climate change in the face of significant population growth and costly pollution. Conflicts of interest between States sharing the same water sources are bound to develop in the years to come, as will national choices of allocation of blue gold between different consumers. |
| Abstract: | Il est possible de dégager quatre utilisations de l'eau : l'accès au quotidien ; la politique de l'eau à l'intérieur des Etats souverains, dans la réalisation de choix négociés entre les consommations de groupes sociaux hétérogènes ; l'hydro-politique entre les Etats concernant des régions parcourues par des zones aqueuses à partager, et enfin la politique globale de l'eau dans le cadre d'une réflexion collective. Il est aussi nécessaire de mettre en évidence les conflits d'usage d'une eau qui se raréfie sous sa forme potable et qui se doit de faire face au changement climatique face à une croissance démographique importante et une pollution coûteuse. Les conflits d'intérêt des Etats partageant les mêmes sources d'eau ne vont pas manquer de se développer dans les années à venir, tout comme les choix nationaux d'attribution de l'or bleu entre les différents consommateurs. |
| Keywords: | Water saving,conflicts,war,climate,agriculture,Economie de l’eau,conflits,guerre,climat |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03107729&r=all |
| By: | Emmanuel Hache (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Samuel Carcanague (IRIS - Institut de Relations Internationales et Stratégiques); Clément Bonnet (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Gondia Sokhna Seck (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Marine Simoën (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles) |
| Abstract: | Why should geopolitics focus on energy transition issues? In many parts of the world, the decarbonisation of the energy and electricity mix has become a priority in order to meet international climate objectives and address local pollution issues. Investments made in renewable energies (REs) represented around $332 billion in 20181 (Figure 1) and those needed to meet the targets set in Paris in 2015 at the 21st Conference of the Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC) could reshape the concept of energy security. The expression "Geopolitics of Renewable Energies" is not widely used at present, and the geopolitical implications of new energy policies and investments in REs are not very well explored. |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03101697&r=all |
| By: | Naonari Yajima (Waseda INstitute of Political EConomy, Waseda University); Toshi H. Arimura (Faculty of Political Science and Economics, Waseda University; Research Institute for Environmental Economics and Management, Waseda University) |
| Abstract: | “Management-based regulation” has no tangible incentives and such regulations may not be effective. Therefore, a mixed policy that uses both “management-based regulation” and with some clear incentives may be effective and necessary. In this paper, we investigate the effectiveness of combination of “management-based regulation”, some economic incentives and/or information provision on climate change actions. We focus on the “Emissions Reduction Program” (ERP) in Japan, which is one of “management-based regulation”, aiming to promote large facilities reducing greenhouse gas (GHG) emissions. Using the prefecture-industry level aggregated data, we find that information provision, reward for good practices and designation of responsible department for climate change has positive impacts on GHG emissions reduction under ERP. |
| Keywords: | Management-based regulation; Provincial-level policy; Greenhouse gas reduction |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:wap:wpaper:1916&r=all |
| By: | Joseph S. Shapiro; Reed Walker |
| Abstract: | Do US air pollution offset markets disproportionately relocate pollution to or from low-income or minority communities? Concerns about an equal distribution of environmental quality across communities—environmental justice—have growing policy influence. We relate prices and quantities of offset transactions to demographics of the communities surrounding polluting plants. We find little association of offset prices or offset-induced movements in pollution with the share of a community that is Black, Hispanic, or with mean household income. This analysis of twelve prominent offset markets suggests that they do not substantially increase or decrease the equity of environmental outcomes. |
| JEL: | H22 Q50 Q52 Q53 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28389&r=all |
| By: | Fabio Antoniou; Panos Hatzipanayotou; Nikos Tsakiris |
| Abstract: | We explore the possibility of achieving a cooperative outcome when governments act non-cooperatively in a strategic environmental policy model where emission permit markets are linked. We introduce a specific distribution scheme of the permit revenues between the exporting countries so as to sustain the cooperative outcome as a subgame perfect Nash equilibrium. Participation in the scheme is endogenized and we show that it constitutes a subgame perfect Nash equilibrium as long as the countries are not too asymmetric. Our results are robust once we allow for multiple pollutants, different modes of competition and market power in the permits market. |
| Keywords: | strategic environmental policy, internationally tradable permits, cross-border pollution, imperfect competition, welfare |
| JEL: | Q58 F12 F18 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8847&r=all |
| By: | Jacques Fontanel (CESICE - Centre d'études sur la sécurité internationale et les coopérations européennes - UPMF - Université Pierre Mendès France - Grenoble 2 - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble) |
| Abstract: | Rare-earth are essential for the development of modern technologies. They have exceptional natural qualities for making clean electricity and for producing new information and communication technologies. These productions require the use of rare metals, which have three drawbacks: firstly, they are available or listed in limited quantities in relation to potential demand; they are therefore today assumed to be rapidly exhaustible; secondly, their extraction is both expensive and highly polluting. Finally, most of these metals are poorly distributed throughout the world, to the great advantage of China, which is currently taking advantage of this form of monopoly to attract numerous high value-added activities dependent on rare metals to its territory. Economic, political and military conflicts can arise from this scarcity and the balance of power between states. |
| Abstract: | Les terres rares sont essentielles au développement des technologies modernes. Elles présentent des qualités naturelles exceptionnelles pour fabriquer une électricité propre et pour produire les nouvelles technologies de l'information et de la communication. Ces productions nécessitent l'utilisation de métaux rares qui présentent trois inconvénients : d'abord, ils sont disponibles ou répertoriés en quantité limitée au regard de la demande potentielle ; ils sont donc aujourd'hui supposés rapidement épuisables ; ensuite leur extraction est à la fois onéreuse et très polluante. Enfin, la plupart de ces métaux sont mal répartis dans le monde, au grand avantage actuel de la Chine qui profite largement de cette forme de monopole pour attirer sur son territoire de nombreuses activités à fortes valeurs ajoutées dépendantes des métaux rares. Les conflits économiques, politiques, militaires peuvent surgir de cette rareté et des rapports de force entre les Etats. |
| Keywords: | Rare-earth,conflicts,pollution,environment,scarcity,new technologies,Terres rares,Conflits,environnement,rareté,nouvelles technologies |
| Date: | 2021–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03092621&r=all |
| By: | Ryo Takahashi (Faculty of Political Science and Economics, Waseda University) |
| Abstract: | We investigate the effect of information provision about environmentally friendly coffee on consumers' purchasing behaviors. We use a dataset from a nationwide social experiment in Japan involving over 10,000 vending machines serving brewed coffee. We also provide empirical insights into the mechanisms for stimulating eco-friendly consumption. Our results demonstrate that informing consumers about the product's eco-friendliness significantly increases eco-friendly coffee sales (+7%) only in social spaces (e.g., office buildings) and not in non-social spaces (e.g., shopping malls). Consumers in social spaces might be motivated to purchase eco-friendly coffee to build a “green” reputation among community members after receiving such information. |
| Keywords: | information provision; social experiment; sustainability labels; coffee certification;, green reputation |
| JEL: | Q13 O13 G14 M31 C93 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:wap:wpaper:1917&r=all |
| By: | Etienne Romsom; Kathryn McPhail |
| Abstract: | This second paper on hydrocarbon gas flaring and venting builds on our first, which evaluated the economic and social cost (SCAR) of wasted natural gas. These emissions must be reduced urgently for natural gas to meet its potential as an energy-transition fuel under the Paris Agreement on Climate Change and to improve air quality and health. Wide-ranging initiatives and solutions exist already; the selection of the most suitable ones is situation-dependent. |
| Keywords: | energy transition, Gas, Health, Climate, Air, Energy |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2021-6&r=all |
| By: | Etienne Romsom; Kathryn McPhail |
| Abstract: | Atmospheric emissions urgently need to reduce for natural gas to fulfill its potential role in the energy transition to achieve the Paris Agreement on climate change. This paper establishes the magnitude and trends of flaring and venting in oil and gas operations, as well as their emissions and impact on air quality, health, and climate. While global flaring and venting comprise 7.5 per cent of natural gas produced, their combined impact on health and climate (in terms of Social Cost of Atmospheric Release) accounts for 54 per cent. |
| Keywords: | energy transition, Gas, Health, Climate, Air, Energy |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2021-5&r=all |
| By: | Antonin Pottier (Centre International de Recherche sur l'Environnement et le Développement - CIRED, EHESS); Marc Fleurbaey (Paris School of Economics; Centre International de Recherche sur l'Environnement et le Développement - CIRED); Stéphane Zuber (Paris School of Economics, Centre d'Economie de la Sorbonne) |
| Abstract: | We develop an integrated assessment model with endogenous population dynamics accouting for the impact of global climate change on mortality through five channels (heat, diarrhoeal disease, malaria, dengue, undernutrition). An age-dependent endogenous mortality rate, which depends linearly on global temperature increase, is introduced and calibrated. We consider three emission scenarios (business-as-usual, 3°C and 2°C scenarios) and find that the five risks induce deaths in the range from 160,000 per annum (in the near term) to almost 350,000 (at the end of the century) in the business-as-annual. We examine the number of life-years lost due to the five selected risks and find figures ranging from 5 to 10 millions annually. These numbers are too low to impact the aggregate dynamics and we do not find significant feedback effects of climate mortality to production, and thus emissions and temperature increase. But we do find interesting evolution patterns. The number of life-years lost is constant (business-as-usual) or decreases over time (3°C and 2°C). For the stabilisation scenarios, we find that the number of life-years lost is higher today than in 2100, due to improvements in generic mortality conditions, the bias of those improvements towards the young, and an ageing population. From that perspective, the present generation is found to bear the brunt of the considered climate change impacts |
| Keywords: | Climate change; Impacts; Integrated assessment model; Mortality risk; Endogenous population |
| JEL: | Q51 Q54 J11 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:20029&r=all |
| By: | Emmanuelle Lavaine (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); Philippe Majerus (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Nicolas Treich (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Although animal agriculture is critical to the subsistence of smallholders in some poor countries, the global detrimental impact of animal farming is now both well documented and overwhelming. Animal farming is a primary cause of deforestation (De Sy et al., 2015), biodiversity loss (Machovina et al., 2015), antibioresistance (O'Neill, 2015) and infectious diseases emergence and amplification (Rohr et al., 2019). Moreover, it contributes significantly to water pollution, water scarcity and climate change (Godfray et al., 2018; Poore & Nemecek, 2018; Springmann et al., 2017). Additionally, the exploitation of farmed animals, especially in its widespread intensive forms, raises various moral issues. In this paper, we discuss another impact of animal farming, that on air pollution and in turn on human health. While this impact is also potentially considerable, we stress that it has been largely overlooked by regulators as well as by researchers, and in particular by economists. |
| Date: | 2021–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03095288&r=all |
| By: | Hansel, Martin C.; Drupp, Moritz A.; Johansson, Daniel A. J.; Nesje, Frikk; Azar, Christian; Freeman, Mark. C.; Groom, Ben; Sterner, Thomas |
| Abstract: | Under the UN Paris Agreement, countries committed to limiting global warming to well below 2 °C and to actively pursue a 1.5 °C limit. Yet, according to the 2018 Economics Nobel laureate William Nordhaus, these targets are economically suboptimal or unattainable and the world community should aim for 3.5 °C in 2100 instead. Here, we show that the UN climate targets may be optimal even in the Dynamic Integrated Climate–Economy (DICE) integrated assessment model, when appropriately updated. Changes to DICE include more accurate calibration of the carbon cycle and energy balance model, and updated climate damage estimates. To determine economically ‘optimal’ climate policy paths, we use the range of expert views on the ethics of intergenerational welfare. When updates from climate science and economics are considered jointly, we find that around three-quarters (or one-third) of expert views on intergenerational welfare translate into economically optimal climate policy paths that are consistent with the 2 °C (or 1.5 °C) target. |
| Keywords: | climate science; economics; intergenerational welfare; policy |
| JEL: | N0 |
| Date: | 2020–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:105699&r=all |
| By: | Colmer, Jonathan; Voorheis, John |
| Abstract: | Evidence shows that environmental quality shapes human capital at birth with long-run effects on health and welfare. Do these effects, in turn, affect the economic opportunities of future generations? Using newly linked survey and administrative data, providing more than 150 million parent-child links, we show that regulationinduced improvements in air quality that an individual experienced in the womb increase the likelihood that their children, the second generation, attend college 40-50 years later. Intergenerational transmission appears to arise from greater parental resources and investments, rather than heritable, biological channels. Our findings suggest that within-generation estimates of marginal damages substantially underestimate the total welfare effects of improving environmental quality and point to the empirical relevance of environmental quality as a contributor to economic opportunity in the United States. |
| Keywords: | air pollution; environmental regulation; social mobility; human capital |
| JEL: | H23 Q53 J00 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:108495&r=all |
| By: | Rania Mabrouk (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes, UGA UFR FEG - Université Grenoble Alpes - Faculté d'Économie de Grenoble - UGA - Université Grenoble Alpes); Oliwia Kurtyka (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes, Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| 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. |
| Keywords: | Environmental innovation,Abatement technology,Clean technology,End-of-pipe equipment,Vertical chain,Regulation,Bargaining,Bargaining. |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03081146&r=all |
| By: | Douadia Bougherara (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Margaux Lapierre (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Raphaële Préget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Alexandre Sauquet (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Nearly all Agri-Environmental Schemes (AES) offer farmers stable annual payments over the duration of the contract. Yet AES are often intended to be a transition tool, thus decreasing payment sequences would appear particularly attractive for farmers. The standard discounted utility model supports this notion by predicting that individuals will prefer a decreasing sequence of payments if the total sum of outcomes is constant. Nevertheless, the literature shows that numerous mechanisms, such as increasing productivity, anticipatory pleasure and loss aversion can incline farmers to favor an increasing sequence of payments. To understand what drives farmers' preferences for different payment sequences, we propose a review of the mechanisms highlighted by the literature in psychology and economics. We then analyze farmers' preferences for stable, increasing or decreasing payments through a choice experiment (CE) survey of 123 French farmers, about 15% of those contacted. Overall, farmers do not present a clear willingness to depart from the usual stable payments. Moreover, we find a significant aversion to decreasing payments in farmers with a lower discount rate and in those more willing to take risks than the median farmer, contradicting the discounted utility model. |
| Keywords: | Sequences of outcomes,Agri-Environmental Schemes,Discounted utility,Farming practices,Cover crops,Choice experiment |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03103886&r=all |
| By: | Peinhardt, Katherine |
| Abstract: | Urban public spaces are an opportunity for comprehensive climate adaptation and improved resilience. As a key part of a city's physical infrastructure, it has long been clear that public spaces can be physically reinforced to absorb or weather the shocks of the climate crisis. As a result, many public spaces are designed to materially resist local impacts of the climate crisis, but fewer have seen efforts to harness their potential for improving social resilience. It is increasingly clear that the unique role of public spaces in civic life positions them to enhance not only physical resilience, but also to support the types of interpersonal connections essential to addressing shared challenges like the climate crisis. Through a "placemaking" approach, both of these goals can be layered into a single space: meaning that public spaces not only protect people from climate hazards, but also provide socially vibrant places and contribute to social cohesion. As climate-adaptation plans become more widespread in cities across the globe, innovators such as the City of Rotterdam are leading the way by incorporating public spaces into their strategy. The most prominent example of this change is Waterplein Benthemplein, an early example of a "water square", which absorbs excess stormwater while providing public space. This paper, based on a paradigmatic case study, examines the policy context for Rotterdam with regard to public spaces, climate adaptation, and long-standing practices around water management. It continues with an observational analysis of Waterplein Benthemplein, which provides best practices of, and potential pitfalls for, public space projects aimed at adaptation and/or resilience building. [...] |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:diedps:12021&r=all |
| By: | Giorgio Fabbri (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Silvia Faggian (University of Ca’ Foscari [Venice, Italy]); Giuseppe Freni (University Parthenope of Naples) |
| Abstract: | We develop a spatial resource model in continuous time in which two agents/players strategically exploit a mobile resource in a two-region setup. To counteract the overexploitation of the resource (the tragedy of commons) that occurs when players are free to choose where to fish/hunt/extract/harvest, the regulator can establish a series of spatially structured policies. We compare the equilibria in the case of a common resource with those that emerge when the regulator either creates a natural reserve, or assigns Territorial User Rights to the players. We show that, when the discount rate is close to its "critical value", i.e. when technological and preference parameters dictate a low harvesting intensity/effort, the policies are ineffective in promoting the conservation of the resource and, in addition, they lead to a lower payoff for at least one of the players. Conversely, in a context of harsher harvesting intensity, the intervention can help to safeguard the resource, preventing extinction while also improving the welfare of both players. |
| Keywords: | Differential games,Spatial harvesting problems,Markov perfect equilibrium,Environmental protection policies |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03038871&r=all |
| By: | Le, Tri Tam |
| Abstract: | Vietnam's economy is in a special position facing the COVID-19 pandemic and climate change impacts. |
| Date: | 2021–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:dngvb&r=all |
| By: | Th\'eo Roncalli; Th\'eo Le Guenedal; Fr\'ed\'eric Lepetit; Thierry Roncalli; Takaya Sekine |
| Abstract: | Like ESG investing, climate change is an important concern for asset managers and owners, and a new challenge for portfolio construction. Until now, investors have mainly measured carbon risk using fundamental approaches, such as with carbon intensity metrics. Nevertheless, it has not been proven that asset prices are directly impacted by these fundamental-based measures. In this paper, we focus on another approach, which consists in measuring the sensitivity of stock prices with respect to a carbon risk factor. In our opinion, carbon betas are market-based measures that are complementary to carbon intensities or fundamental-based measures when managing investment portfolios, because carbon betas may be viewed as an extension or forward-looking measure of the current carbon footprint. In particular, we show how this new metric can be used to build minimum variance strategies and how they impact their portfolio construction. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2101.10635&r=all |
| By: | Phillipe Aghion; Roland Bénabou; Ralf Martin; Alexandra Roulet |
| Abstract: | This paper investigates the joint effect of consumers' environmental concerns and product-market competition on firms' decisions whether to innovate "clean" or "dirty". We first develop a step-by-step innovation model to capture the basic intuition that socially responsible consumers induce firms to escape competition by pursuing greener innovations. To test and quantify the theory, we bring together patent data, survey data on environmental values, and competition measures. Using a panel of 8,562 firms from the automobile sector that patented in 42 countries between 1998 and 2012, we indeed find that greater exposure to environmental attitudes has a significant positive effect on the probability for a firm to innovate in the clean direction, and all the more so the higher the degree of product market competition. Results suggest that the combination of historically realistic increases in prosocial attitudes and product market competition can have the same effect on green innovation as major increase in fuel prices. |
| Keywords: | environment, product market competition, innovation |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1684&r=all |
| By: | Guidetti, Bruna (University of Michigan); Pereda, Paula (University of Sao Paulo); Severnini, Edson R. (Carnegie Mellon University) |
| Abstract: | When examining the impacts of exposure to air pollution on health outcomes, researchers usually carry out "placebo tests" to provide evidence in support of their identification assumption. In general, this exercise targets health conditions seemingly unrelated to air pollution. In this study, we argue that one should proceed with caution when running such falsification tests. If healthcare infrastructure is limited, when we observe health shocks such as those driven by air pollution, the infrastructure needs to be adjusted to meet the increased demand by canceling or rescheduling elective and non-urgent procedures, for example. As a result, even health conditions seemingly unrelated to air pollution may be indirectly affected by pollution. |
| Keywords: | placebo tests, air pollution, healthcare infrastructure, health outcomes, hospitalization for respiratory diseases and other causes |
| JEL: | I15 Q53 Q56 O13 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14080&r=all |
| By: | Minh Ha-Duong (VIET - Vietnam Initiative for Energy Transition, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); an Ha Truong (VIET - Vietnam Initiative for Energy Transition); Hoang Anh Tran (VIET - Vietnam Initiative for Energy Transition) |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03059625&r=all |
| By: | Genakos, Christos; Grey, Felix; Ritz, Robert A. |
| 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; ES/J500033/1 |
| JEL: | D43 H23 L51 L93 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:108481&r=all |
| By: | Aghion, Philippe; Bénabou, Roland; Martin, Ralf; Roulet, Alexandra |
| Abstract: | This paper investigates the joint effect of consumers' environmental concerns and product-market competition on firms’ decisions whether to innovate “clean” or “dirty”. We first develop a step-bystep innovation model to capture the basic intuition that socially responsible consumers induce firms to escape competition by pursuing greener innovations. To test and quantify the theory, we bring together patent data, survey data on environmental values, and competition measures. Using a panel of 8,562 firms from the automobile sector that patented in 42 countries between 1998 and 2012, we indeed find that greater exposure to environmental attitudes has a significant positive effect on the probability for a firm to innovate in the clean direction, and all the more so the higher the degree of product market competition. Results suggest that the combination of historically realistic increases in prosocial attitudes and product market competition can have the same effect on green innovation as major increase in fuel prices. |
| Keywords: | environment; product market competition; innovation |
| JEL: | R14 J01 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:108425&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | The study investigates linkages between financial development, income inequality and renewable energy consumption from 39 countries in Sub-Saharan Africa. The empirical evidence is based on data for the period 2004-2014, Generalized Method of Moments (GMM) and Quantile Regressions (QR). The GMM results show that financial development unconditionally promotes renewable energy consumption while income inequality counteracts the underlying positive effect. The QR results reveal that the GMM findings only withstand empirical validity in bottom quantiles of the renewable energy consumption distribution. In order to increase room for policy implications for the promotion of renewable energy consumption, critical masses of income inequality that should not be exceeded are computed for bottom quantiles of the renewable energy consumption distribution while income inequality thresholds that should be exceeded are computed for top quantiles of the renewable energy consumption distribution. The study reconciles two strands of the literature. Theoretical, practical and policy implications are discussed. |
| Keywords: | Renewable energy; Inequality; Finance; Sub-Saharan Africa; Sustainable development |
| JEL: | H10 Q20 Q30 O11 O55 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/084&r=all |
| By: | Marc Fleurbaey (Paris School of Economics; Centre International de Recherche sur l'Environnement et le Développement - CIRED); Antonin Pottier (Centre International de Recherche sur l'Environnement et le Développement - CIRED, EHESS); Stéphane Zuber (Paris School of Economics, Centre d'Economie de la Sorbonne) |
| Abstract: | Climate change-related mortality may strongly affect human well-being. By reducing life expectancy, it reduces the well-being of some infividuals. This may exacerbate existing inequalities: ex-ante inequality among people in different groups or regions of the world; ex-post inequality in experienced well-being by people in the same generation. But mortality may also reduce total population size by preventing some individuals from having children. This raises the population-ethical problem of how total population size should be valued. This paper proposes a methodology to measure te welfare effects of climate change through population and inequality change. We illustrate the methodology using a climate-economy integrated assessment model involving endogenous population change due to climate change-related mortality |
| Keywords: | Climate change-related mortality; fairness; inequality; population ethics |
| JEL: | D63 D81 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:20026&r=all |
| By: | Philippe Lefebvre (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2020–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03093659&r=all |
| By: | Brink, Corjan; Drissen, Eric; Vollebergh, Herman (Tilburg University, School of Economics and Management); Wilting, Harry |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:35e9fc26-3166-4def-b878-b5e2b12af3d5&r=all |
| By: | Christos Genakos; Felix Grey; Robert A. Ritz |
| 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: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1709&r=all |
| By: | Colmer, Jonathan; Lin, Dajun; Liu, Siying; Shimshack, Jay |
| Abstract: | Conventional wisdom suggests that pollution damages are high in less-developed countries because they are highly polluted. Using administrative data on the universe of births and deaths, we explore the morbidity and mortality effects of gestational particulate matter exposure in high-pollution yet highly-developed Hong Kong. The effects of particulates on birthweight are large. We estimate no effect of particulates on neonatal mortality. We interpret our stark mortality results in a comparative analysis of pollution-mortality relationships across well-known studies. We provide evidence that mortality damages may be high in less-developed countries because they are less developed, not because they are more polluted. |
| Keywords: | particulate matter; marginal damages; infant health |
| JEL: | Q53 Q56 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:108466&r=all |
| By: | Banban Wang; William A. Pizer; Clayton Munnings |
| Abstract: | Tradable performance standards are widely used sectoral regulatory policies. Examples include the US lead phasedown, fuel economy standards for automobiles, renewable portfolio standards, low carbon fuel standards, and—most recently—China’s new national carbon market. At the same time, theory and experience with traditional cap-and-trade programs suggests an important role for price limits in the form of floors, ceilings, and reserves. In this paper we develop a simple analytical model to derive the welfare comparison between tradable performance standards and a price-based alternative. This works out to be is a simple variant of the traditional Weitzman prices-versus-quantities result. We use this result to show that substantial gains could arise from shifting two programs, China’s new national carbon market (~60% gain) and the California Low Carbon Fuel Standard (~20% gain), to a price mechanism. This will generally be true when the coefficient of variation in the price under a TPS is larger than 50%. We end with a discussion of implementation issues, including full and partial consignment auctions based on actual and expected output. |
| JEL: | D82 Q54 Q58 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28368&r=all |
| By: | Jonathan Colmer; Dajun Lin; Siying Liu; Jay Shimshack |
| Abstract: | Conventional wisdom suggests that pollution damages are high in less-developed countries because they are highly polluted. Using administrative data on the universe of births and deaths, we explore the morbidity and mortality effects of gestational particulate matter exposure in high-pollution yet highly-developed Hong Kong. The effects of particulates on birthweight are large. We estimate no effect of particulates on neonatal mortality. We interpret our stark mortality results in a comparative analysis of pollution-mortality relationships across well-known studies. We provide evidence that mortality damages may be high in less-developed countries because they are less developed, not because they are more polluted. |
| Keywords: | Particulate Matter, Marginal Damages, Infant Health |
| JEL: | Q53 Q56 I15 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1702&r=all |
| By: | Olivier Chanel (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Sylvia Medina (Santé publique France); Mathilde Pascal (Santé publique France) |
| Abstract: | This article proposes a methodological discussion based on an economic evaluation of the mortality impacts of chronic exposure to fine particulate matter in mainland France. It starts from the health impact assessment carried out by Santé publique France in 2016 for 5 scenarios of decrease in concentrations using two methods to measure mortality (number of premature deaths prevented, and total number of life years gained). After a justification of the monetary values used - €3 million for the value for a prevented fatality and €80,000 for the value of a life year gained - we apply them to the health data and obtain results comparable to contemporary studies. In particular, in a scenario without anthropogenic pollution, the 2016 EQIS estimates that 48,283 premature deaths could be prevented, corresponding to an economic assessment of €144.85 billion. We then address methods and practices: the sources of divergence with the previous French study conducted in 1998-99, the choice of monetary values and the conditions for using these results in public decision-making. Finally, we provide an additional argument on the need to reduce people's exposure to ambient air pollution in France. |
| Abstract: | Cet article propose une discussion méthodologique à partir d'une évaluation économique des impacts sur la mortalité de l'exposition chronique aux particules fines en France continentale. Il prend comme point de départ l'évaluation quantitative d'impact sanitaire (EQIS), réalisée par Santé publique France en 2016, de 5 scénarios de réduction des concentrations par deux méthodes de mesure de la mortalité (nombre de décès prématurés évités et nombre total d'années de vie gagnées). Après une justification des valeurs monétaires utilisées – 3 millions € pour la valeur d'évitement d'un décès et 80 000 € pour celle d'une année de vie gagnée – nous les appliquons aux données sanitaires, et obtenons des résultats comparables aux études contemporaines. En particulier, dans un scénario sans pollution anthropique, l'EQIS de 2016 estime à 48 283 les décès prématurés évités, que nous évaluons à 144,85 milliards €2008. Nous questionnons ensuite les méthodes et pratiques : les sources de divergence avec la précédente étude française menée en 1998-99, le choix des valeurs monétaires et les conditions d'utilisation de ces résultats dans la décision publique. Au final, nous apportons un argument supplémentaire sur la nécessité de réduire l'exposition des populations à la pollution de l'air ambiant en France. |
| Keywords: | pollution atmosphérique,évaluation économique,mortalité,valeur d’évitement d’un décès |
| Date: | 2020–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03097189&r=all |
| By: | Balluchi, Federica; Lazzini, Arianna; Torelli, Riccardo |
| Abstract: | Through the lens of legitimacy theory and starting from Habermas’s communication theory the paper aims to extend and contribute to the research fields related to the quality of social and environmental disclosure and corporate legitimacy by focusing on firms’ environmental reporting credibility. The study proposes an operationalization of the corporate environmental reporting credibility concept identifying possible determinants, related measurements and indicators. Through a content analysis we have measured the credibility of non-financial reports of 152 business entities that, in accordance with the Italian law, published for the first time in 2018, at a mandatory level, social and environmental reports. The results show a good level of credibility in Italian reporting context and in particular a high level of understandability, but a low level of exhaustivity. Findings highlight also the important role of experience in voluntary non-financial reporting, the use of stand-alone document and the belonging to an ESI in influencing the credibility of the communication. The results offer implications and scientific contributions related to the proposal of a detailed model for the measurement of social and environmental reporting applicable to any type of document, in any geographical contest, and any time frame. |
| Date: | 2020–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:g73w5&r=all |
| By: | Alhassan A. Karakara (CEPDeR, Covenant University, Ota, Nigeria); Evans S. Osabuohien (CEPDeR, Covenant University, Ota, Nigeria) |
| Abstract: | There are few studies on the determinants of energy consumption of households in Africa, particularly in Ghana. Thus, this study identifies the drivers of households’ fuel consumption for domestic purposes and examines two fuel categories (‘clean’ fuels versus ‘dirty’ fuels). The study used Demographic and Health Survey data that has a sample of 11,835 households across Ghana. Binary categorical models (binary logistic and binary probit) were used to investigate whether a household uses ‘clean fuel’ or ‘dirty fuel’, which are estimated with socio-economic variables and spatial disparity (regional location). The results suggest that households’ energy consumption is affected by socio-economic variables and rural households are more deprived than urban households in adopting clean fuels. Also, male-headed households have a higher likelihood than female-headed households to adopt clean fuels. Many households choose clean fuels for lighting than they do for cooking as wealth status improves. However, solid fuels such as charcoal and firewood remain the dominant fuel used for cooking by the majority of households. The use of these dirty fuels could hamper the health status of households because of indoor pollution. The study recommends that policies should be geared towards the provision of clean and better energy sources to households. |
| Keywords: | ‘Clean’ fuels, ‘Dirty’ fuels, household fuel adoption, household fuel consumption, Energy usage, Ghana |
| JEL: | O13 P28 Q42 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/075&r=all |
| By: | Vuong, Quan-Hoang |
| Abstract: | This essay evolved from my keynote address for the plenary session of the ASEAN Conference for Young Scientists 2019 organized by the ASEAN Secretariat, Vietnam Ministry of Science and Technology—whose main theme is sustainability science—organized at Hanoi-based Phenikaa University. It has also benefited from my advisory work for the International Union for Conservation of Nature (IUCN). |
| Date: | 2020–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:nvg2q&r=all |
| By: | Demary, Markus; Hüther, Michael |
| Abstract: | The European Central Bank (ECB) is reviewing its strategy. Key pillars are its communication and how monetary policy should address climate change. We advise the ECB to strengthen its communication especially with social groups unfamiliar with monetary policy. When it comes to climate change, the ECB should be responsive, but not activist. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:1222020&r=all |