nep-env New Economics Papers
on Environmental Economics
Issue of 2021‒05‒10
sixty papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. The Green Economy and Inequality in Sub-Saharan Africa: Avoidable Thresholds and Thresholds for Complementary Policies By Asongu, Simplice; Odhiambo, Nicholas
  2. Climate Change Impacts and Strategies for Mitigation and Adaptation in Agriculture By McCarl, Bruce A.; Yu, Chin-Hsien; Attavanich, Witsanu
  3. Market Potential for CO$_2$ Removal and Sequestration from Renewable Natural Gas Production in California By Jun Wong; Jonathan Santoso; Marjorie Went; Daniel Sanchez
  4. Mitigating climate change through sustainable technology adoption: Insights from cookstove interventions By Alem, Yonas
  5. Smart Cap By Karp, Larry; Traeger, Christian
  6. Inequality and Renewable Energy Consumption in Sub-Saharan Africa: Implication for High Income Countries By Asongu, Simplice; Odhiambo, Nicholas
  7. Managerial and Financial Barriers to the Net-Zero Transition By de Haas, Ralph; Martin, Ralf; Muûls, Mirabelle; Schweiger, Helena
  8. Contracts in Electricity Markets under EU ETS: A Stochastic Programming Approach By Arega Getaneh Abate; Rossana Riccardi; Carlos Ruiz
  9. Rising temperatures, falling ratings: The effect of climate change on sovereign creditworthiness By Agarwala, Matthew; Burke, Matt; Klusak, Patrycja; Kraemer, Moritz; Mohaddes, Kamiar
  10. Exploring the impact of shared mobility services on CO2 By Ioannis Tikoudis; Luis Martinez; Katherine Farrow; Clara García Bouyssou; Olga Petrik; Walid Oueslati
  11. A new era of digitalisation for ocean sustainability?: Prospects, benefits, challenges By Barrie Stevens; Claire Jolly; James Jolliffe
  12. ACE - Analytic Climate Economy By Traeger, Christian
  13. How effective is carbon pricing? A machine learning approach to policy evaluation By Abrell, Jan; Kosch, Mirjam; Rausch, Sebastian
  14. The sensitivity of the income of French farms to a reorientation of aid under the future post-2023 CAP By Vincent Chatellier; Cécile Detang-Dessendre; Pierre Dupraz; Hervé Guyomard
  15. Derivatives in Sustainable Finance By Lannoo, Karel; Thomadakis, Apostolos
  16. The Expectations Channel of Climate Change: Implications for Monetary Policy By Dietrich, Alexander; Müller, Gernot; Schoenle, Raphael
  17. The Efficacy of International Environmental Agreements when Adaptation Matters: Nash-Cournot vs Stackelberg Leadership By Michael Finus; Francesco Furini; Anna Viktoria Rohrer
  18. The Economic Geography of Global Warming By Cruz, Jose-Luis; Rossi-Hansberg, Esteban
  19. Can Technological Innovation Bring an Economic and Environmental Benefit to Energy Firms: An Evidence from China? By Yue-Jun; Ting Liang; Zongwu Cai
  20. The Ocean and Early-Childhood Mortality and Development By Armand, Alex; Kim Taveras, Ivan
  21. The cost-efficiency carbon pricing puzzle By Gollier, Christian
  22. Análisis del financiamiento de la banca de desarrollo con bonos verdes: intercambio regional para un gran impulso ambiental By Zuleta Jaramillo, Luis Alberto
  23. Public opinion and special interests in American environmental politics By Elise Grieg
  24. Directed Technical Change in Labor and Environmental Economics By Hémous, David; olsen, morten
  25. Trade and FDI Thresholds of CO2 emissions for a Green Economy in Sub-Saharan Africa By Asongu, Simplice; Odhiambo, Nicholas
  26. Incorporating Stakeholder Knowledge into a Complex Stock Assessment Model: The Case of Eel Recruitment By Hilaire Drouineau; Marie Vanacker; Estibaliz Diaz; Maria Mateo; Maria Korta; Carlos Antunes; Carlos Fernández Delgado; Isabel Domingos; Lluis Zamora; Laurent Beaulaton; Patrick Lambert; Cédric Briand
  27. At boiling point: Temperature shocks in global business groups By Themann, Michael
  28. Mathematics of sustainable and profitable management of fisheries resources By Tenzer, Constantin
  29. On Wholesale Electricity Prices and Market Values in a Carbon-Neutral Energy System By Diana B\"ottger; Philipp H\"artel
  30. Domestic Energy Consumption in Ghana: Deprivation versus Likelihood of Access By Alhassan A. Karakara; Evans S. Osabuohien; Simplice A. Asongu
  31. Background paper: Overview of the existing STI for SDGs roadmapping methodologies By Monika Matusiak; Katerina Ciampi Stancova; Mafini Dosso; Chux Daniels; Michael Miedziński
  32. The effects of publicly supported environmental innovations on firm growth in the European Union By Florian Flachenecker; Martin Kornejew; Mario Lorenzo Janiri
  33. What’s Missing in Environmental (Self-)Monitoring: Evidence from Strategic Shutdowns of Pollution Monitors By Yingfei Mu; Edward A. Rubin; Eric Zou
  34. Inequality, Finance and Renewable Energy Consumption in Sub-Saharan Africa By Asongu, Simplice; Odhiambo, Nicholas
  35. Lessons on engaging with the private sector to strengthen climate resilience in Guatemala, the Philippines and Senegal By Juan Casado-Asensio; Takayoshi Kato; Heiwon Shin
  36. Strategic Spatial Planning in Emerging Land-Use Frontiers – Evidence from Mozambique By Oliveira, Eduardo; Meyfroidt, Patrick
  37. Catching up and falling behind: Cross-country evidence on the impact of the EU ETS on firm productivity By Themann, Michael; Koch, Nikolas
  38. Strengthening Women’s Participation in the Traditional Enterprises of sub-Saharan Africa: The Role of Corporate Social Responsibility Initiatives in Niger Delta, Nigeria By Okolo-Obasi, Elda; Uduji, Joseph; Asongu, Simplice
  39. Neo-humanism and COVID-19: Opportunities for a socially and environmentally sustainable world By Francesco Sarracino; Kelsey J. O'Connor
  40. Business responsibilities and investment treaties By David Gaukrodger
  41. Using Machine Learning to Analyze Climate Change Technology Transfer (CCTT) By Kulkarni, Shruti
  42. The global trade environment in the Biden era and response strategies for Korea By Song, Yeongkwan
  43. Planning for Sustainability: An Emerging Blue Economy in Russia's Coastal Arctic? By Gao Tianming; Nikolai Bobylev; Sébastien Gadal; Maria Lagutina; Alexander Sergunin; Vasilii Erokhin
  44. EU-Energiesteuerrichtlinie: Zwischenbilanz der steuerlich impliziten CO2-Bepreisung By Wendland, Finn
  45. Optimal Harvest with Multiple Fishing Zones, Endogenous Price and Global Uncertainty By Jose Pizarro; Eduardo S. Schwartz
  46. Electrification and Cooking Fuel Choice in Rural India By Ridhima Gupta; Martino Pelli
  47. Natural resource rents, autocracy and economic freedom By Morten Endrikat
  48. Frequency of Shocks, Resilience and Shock Persistence: Evidence from Natural Disasters By Bashar, Omar; Mallick, Debdulal
  49. Escalafón de la competitividad de los departamentos de Colombia, 2019 By Ramírez, Juan Carlos; de Aguas, Johan Manuel
  50. Originalité et effets sociaux de la « manufacture patrimoniale » By Yoann Sidoli; Andrey Nicoa Hernández Meza; Dounia Belghiti; Jean-Sébastien Decaux; Laure Lignon; Camille Richert; Chloé Coursaget; Jacques Farine; Leonora Le Quang Huy; Lise Parjouet; Marie Gastaut; Martin Bruno
  51. Las estadísticas de nacimientos y defunciones en América Latina con miras al seguimiento de la Agenda 2030 para el Desarrollo Sostenible y del Consenso de Montevideo sobre Población y Desarrollo By -
  52. La transición demográfica: oportunidades y desafíos en la senda hacia el logro de los Objetivos de Desarrollo Sostenible en América Latina y el Caribe By Turra, Cassio M.; Fernandes, Fernando
  53. The Acceptability of Food Policies By Romain Espinosa; Anis Nassar
  54. The political economy of coastal development By Magontier, Pierre; Sole-Olle, Albert; Viladecans-Marsal, Elisabet
  55. Large Fiscal Episodes and Sustainable Development: Some International Evidence By Joshua Aizenman; Yothin Jinjarak; Hien Thi Kim Nguyen; Donghyun Park
  56. Preferences for Sustainability and Supply Chain Essential Worker Conditions: Survey Evidence during COVID-19 By Villas-Boas, Sofia B; Copfer, Jackie; Campbell, Nica
  57. The Welfare Cost of a Current Account Imbalance: A 'Clean' Channel By Lee, Jungho; Wei, Shang-Jin; Xu, Jianhuan
  58. A review of problems associated with learning curves for solar and wind power technologies By Grafström, Jonas; Poudineh, Rahmat
  59. Testing Willingness to Pay Elicitation Mechanisms in the Field: Evidence from Uganda By Burchardi, Konrad B.; de Quidt, Jonathan; Gulesci, Selim; Lerva, Benedetta; Tripodi, Stefano
  60. An overview of implemented and planned policy instruments to decarbonize basic material industries in Germany By Fleiter, Tobias; Lotz, Meta Thurid; Arens, Marlene; Schlomann, Barbara

  1. By: Asongu, Simplice; Odhiambo, Nicholas
    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 O11 O55 Q20 Q30
    Date: 2020–01
  2. By: McCarl, Bruce A.; Yu, Chin-Hsien; Attavanich, Witsanu
    Abstract: Agriculture is highly vulnerable to climate change-induced shifts in means, variability and extremes. The climate is evolving and agriculturalists need to foresee future sensitivities and develop/promulgate adaptation strategies such as improving cultivar tolerance to high temperatures and changing crop timing. Meanwhile, the IPCC shows that agriculture and land use accounts for nearly 30% of total emissions, contributing over 50% of the global anthropogenic non-CO2 greenhouse gas (GHG) emissions. Thus, in the long run, agriculture also needs to be a partner in a global mitigation effort. In planning, mitigation–adaptation synergy is also relevant. Hence, advancing the understanding of the potential impacts of climate change, as well as the implications of possible adaptation and mitigation strategies, is important for science, policy and stakeholder communities. In this Special Issue on “Climate Change Impacts and Strategies for Mitigation and Adaptation in Agriculture”, six original research articles report recent findings describing: the impacts of climate change on crop yields; adaptation and mitigation strategies; and valuing the benefits of climate and weather information. The papers span a wide range of investigations.
    Keywords: Climate change, Impacts, Mitigation, Adaptation, Agriculture
    JEL: Q18 Q21 Q54 Q58
    Date: 2021–04–20
  3. By: Jun Wong; Jonathan Santoso; Marjorie Went; Daniel Sanchez
    Abstract: Bioenergy with Carbon Capture and Sequestration (BECCS) is critical for stringent climate change mitigation, but is commercially and technologically immature and resource-intensive. In California, state and federal fuel and climate policies can drive first-markets for BECCS. We develop a spatially explicit optimization model to assess niche markets for renewable natural gas (RNG) production with carbon capture and sequestration (CCS) from waste biomass in California. Existing biomass residues produce biogas and RNG and enable low-cost CCS through the upgrading process and CO$_2$ truck transport. Under current state and federal policy incentives, we could capture and sequester 2.9 million MT CO$_2$/year (0.7% of California's 2018 CO$_2$ emissions) and produce 93 PJ RNG/year (4% of California's 2018 natural gas demand) with a profit maximizing objective. Existing federal and state policies produce profits of \$11/GJ. Distributed RNG production with CCS potentially catalyzes markets and technologies for CO$_2$ capture, transport, and storage in California.
    Date: 2021–05
  4. By: Alem, Yonas
    Abstract: Deforestation and burning of forest products to meet cooking needs massively contribute to global warming. In order to reduce the biomass fuel consumption of households in developing countries, various improved cookstove (ICS) interventions were implemented by governments, NGOs, and other stakeholders in the past decades. This paper synthesizes the impact evaluation literature on the adoption and impact of ICS, and their role in improving household welfare, while reducing the pressure on forest resources and mitigating emission of CO2. The paper points out five important knowledge gaps that future research may address. First, more research is needed on the effectiveness of different mechanisms that address liquidity constraints, such as stove-for-work programs, which some research has already shown are effective in relaxing households' liquidity constraints to adopt ICS. Second, in order to improve reliability of estimates of the impact of ICS, studies should be guided by proper impact evaluation protocols, such as determining sample size using statistical power analysis. Third, more research is needed on the effects of ICS beyond fuel and time saving, such as time allocation and wellbeing of women. Fourth, urban households are under-represented in stove studies, but more studies on urban households are needed, because they consume substantial amounts of biomass fuel, most importantly charcoal. Finally, and most importantly, all existing stove studies exclusively focus on households. Micro, small and medium-scale enterprises in African consume nearly half of the biomass fuel consumed in the continent. Experimental work on firm energy use behavior and transition to cleaner sources is urgently needed. Otherwise, reduction in biomass fuel use by households may be compensated by increased biomass use by firms.
    Keywords: Biomass fuel,improved cookstoves,RCTs,Causal Impact
    JEL: C21 C93 D13 H23 O13 O33 Q23
    Date: 2021
  5. By: Karp, Larry; Traeger, Christian
    Abstract: We introduce a "smart" cap and trade system that eliminates the welfare costs of asymmetric information ("uncertainty"). This cap responds endogenously to technology or macroeconomic shocks, relying on the market price of certificates to aggregate information. It allows policy makers to modify existing institutions to achieve more efficient emission reductions. The paper also shows that the efficient carbon price is more sensitive to technological innovations than usually assumed. The lasting impact and slow diffusion of these innovations typically make the optimal carbon price a much steeper function of emissions than suggested by the social cost of carbon.
    Keywords: Asymmetric information; climate change; Integrated assessment; pollution; quantities; Regulation; taxes; technology diffusion; uncertainty
    JEL: D80 H20 Q00 Q50
    Date: 2021–03
  6. By: Asongu, Simplice; Odhiambo, Nicholas
    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 O11 O55 Q20 Q30
    Date: 2020–01
  7. By: de Haas, Ralph; Martin, Ralf; Muûls, Mirabelle; Schweiger, Helena
    Abstract: We use data on 11,233 firms across 22 emerging markets to analyse how credit constraints and low-quality firm management inhibit corporate investment in green technologies. For identification, we exploit quasi-exogenous variation in local credit conditions and in exposure to weather shocks. Our results suggest that both financial frictions and managerial constraints slow down firm investment in more energy efficient and less polluting technologies. Complementary analysis of data from the European Pollutant Release and Transfer Register (E-PRTR) corroborates some of this evidence by revealing that in areas where banks deleveraged more after the global financial crisis, industrial facilities reduced their carbon emissions by less. On aggregate this kept local emissions 15% above the level they would have been in the absence of financial frictions.
    Keywords: CO2 emissions; energy efficiency; Financial Frictions; Management Practices
    JEL: D22 G32 L20 L23 Q52 Q53
    Date: 2021–03
  8. By: Arega Getaneh Abate; Rossana Riccardi; Carlos Ruiz
    Abstract: The European Union Emission Trading Scheme (EU ETS) is a cornerstone of the EU's strategy to fight climate change and an important device for plummeting greenhouse gas (GHG) emissions in an economically efficient manner. The power industry has switched to an auction-based allocation system at the onset of Phase III of the EU ETS to bring economic efficiency by negating windfall profits that have been resulted from grandfathered allocation of allowances in the previous phases. In this work, we analyze and simulate the interaction of oligopolistic generators in an electricity market with a game-theoretical framework where the electricity and the emissions markets interact in a two-stage electricity market. For analytical simplicity, we assume a single futures market where the electricity is committed at the futures price, and the emissions allowance is contracted in advance, prior to a spot market where the energy and allowances delivery takes place. Moreover, a coherent risk measure is applied (Conditional Value at Risk) to model both risk averse and risk neutral generators and a two-stage stochastic optimization setting is introduced to deal with the uncertainty of renewable capacity, demand, generation, and emission costs. The performance of the proposed equilibrium model and its main properties are examined through realistic numerical simulations. Our results show that renewable generators are surging and substituting conventional generators without compromising social welfare. Hence, both renewable deployment and emission allowance auctioning are effectively reducing GHG emissions and promoting low-carbon economic path.
    Date: 2021–04
  9. By: Agarwala, Matthew; Burke, Matt; Klusak, Patrycja; Kraemer, Moritz; Mohaddes, Kamiar
    Abstract: Enthusiasm for 'greening the financial system' is welcome, but a fundamental challenge remains: financial decision makers lack the necessary information. It is not enough to know that climate change is bad. Markets need credible, digestible information on how climate change translates into material risks. To bridge the gap between climate science and real-world financial indicators, we simulate the effect of climate change on sovereign credit ratings for 108 countries, creating the world's first climate-adjusted sovereign credit rating. Under various warming scenarios, we find evidence of climate-induced sovereign downgrades as early as 2030, increasing in intensity and across more countries over the century. We find strong evidence that stringent climate policy consistent with limiting warming to below 2êC, honouring the Paris Climate Agreement, and following RCP 2.6 could nearly eliminate the effect of climate change on ratings. In contrast, under higher emissions scenarios (i.e., RCP 8.5), 63 sovereigns experience climate-induced downgrades by 2030, with an average reduction of 1.02 notches, rising to 80 sovereigns facing an average downgrade of 2.48 notches by 2100. We calculate the effect of climate-induced sovereign downgrades on the cost of corporate and sovereign debt. Across the sample, climate change could increase the annual interest payments on sovereign debt by US$ 22-33 billion under RCP 2.6, rising to US$ 137- 205 billion under RCP 8.5. The additional cost to corporates is US$ 7.2-12.6 billion under RCP 2.6, and US$ 35.8-62.6 billion under RCP 8.5.
    Keywords: sovereign credit rating,climate change,counterfactual analysis,climate-economy models,corporate debt,sovereign debt
    Date: 2021
  10. By: Ioannis Tikoudis (OECD); Luis Martinez (International Transport Forum); Katherine Farrow (OECD); Clara García Bouyssou (University of Copenhagen); Olga Petrik (International Transport Forum); Walid Oueslati (OECD)
    Abstract: Policy action to avoid the impending societal costs of climate change is particularly warranted in transport sector, which is responsible for 30% of greenhouse gas emissions in OECD countries. To design appropriate interventions in this sector, policy makers should account for the recent emergence of shared mobility services in urban areas and their potential advantages in terms of emissions mitigation. This study estimates the impact that the widespread uptake of shared mobility services could have on the carbon footprint of urban transport. To this end, it simulates the share of each transport mode and aggregate emissions from passenger transport in 247 cities across 29 OECD countries between 2015 and 2050. The analysis indicates that they have the potential to eliminate, on average, 6.3% of urban passenger transport emissions by the end of this period.
    Keywords: CO2 emissions, mode competition, ridesharing, shared mobility, urban transport
    JEL: R41 Q54
    Date: 2021–05–04
  11. By: Barrie Stevens (OECD); Claire Jolly (OECD); James Jolliffe (OECD)
    Abstract: As the United Nations Decade on Ocean Science for Sustainable Development begins, this paper explores recent and likely future digital technologies - especially in the field of ocean observation - that will contribute to ocean sustainability. It examines advances that could lead to substantial improvements in the data collection and analysis of the impact of climate change and human activity on marine ecosystems, while also contributing to the monitoring and reduction of the ecological footprint of ocean-related economic activity. The paper also provides preliminary reflections on how the COVID-19 pandemic might affect digitalisation in the ocean economy, and what strategies could help support ocean research and innovation during and after the crisis.
    Date: 2021–05–05
  12. By: Traeger, Christian
    Abstract: The paper discusses optimal carbon taxation in an analytic quantitative integrated assessment model (IAM). The model links IAM components and parametric assumptions directly to their policy impacts. The paper discusses the distinct tax impact of carbon versus temperature dynamics and uses the see-through model to illustrate various aspects of IAM calibrations including the differentiation between consumption and investments goods. Novel to analytic IAMs are the explicit temperature dynamics, a general economy, energy sectors including capital, various degrees of substitutability across energy sources, an approximation of capital persistence, and objective functions that include CES preferences and population weighting. ACE opens the door to tractable forward-looking stochastic modeling and dynamic strategic interactions in complex IAMs, explored in accompanying work.
    Keywords: capital persistence; carbon cycle; carbon tax; climate change; climate sensitivity; Integrated assessment; population weighting; Social cost of carbon; technological progress; Temperature
    JEL: D61 D80 E13 H23 H43 Q54
    Date: 2021–03
  13. By: Abrell, Jan; Kosch, Mirjam; Rausch, Sebastian
    Abstract: While carbon taxes are generally seen as a rational policy response to climate change, knowledge about their performance from an expost perspective is still limited. This paper analyzes the emissions and cost impacts of the UK CPS, a carbon tax levied on all fossil-fired power plants. To overcome the problem of a missing control group, we propose a policy evaluation approach which leverages economic theory and machine learning for counterfactual prediction. Our results indicate that in the period 2013-2016 the CPS lowered emissions by 6.2 percent at an average cost of €18 per ton. We find substantial temporal heterogeneity in tax-induced impacts which stems from variation in relative fuel prices. An important implication for climate policy is that in the short run a higher carbon tax does not necessarily lead to higher emissions reductions or higher costs.
    JEL: C54 Q48 Q52 Q58 L94
    Date: 2021
  14. By: Vincent Chatellier; Cécile Detang-Dessendre; Pierre Dupraz; Hervé Guyomard
    Abstract: This article provides an overview of French agricultural incomes over the decade 2010-2019, notably of their heterogeneity according to production types, size and location. It illustrates their dependency on CAP budgetary support. On this basis, it analyses the sensitivity of incomes to different scenarios that modify the repartition of CAP direct aids. The first type of measures aims specifically at modifying the distribution of direct aids and incomes. Four simulations are performed corresponding to a measure in favour of small farms, alternative payment modalities for coupled aids to beef and dairy cattle, the full internal convergence of the basic payment per hectare, and a reinforcement of the redistributive payment on the first hectares. The second measures pursue climatic and environmental objectives but have also redistributive impacts. The first scenario corresponds to a transfer of 15 % of the budgetary envelope of the first pillar to climate and environmental measures and support for organic farming in the second pillar. The second scenario implements an eco-scheme targeted on the maintenance of permanent grasslands and the reduction of pesticide use.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy
    Date: 2021–04–30
  15. By: Lannoo, Karel; Thomadakis, Apostolos
    Abstract: In recent years, sustainability has risen in scope and importance on the agenda of policymakers. In Europe, this has translated into the EU Sustainable Finance Action Plan, which aims to: i) reorient capital flows towards sustainable investments; ii) manage financial risks stemming from climate/environmental/social issues; and iii) promote transparency and long-termism in financial and economic activity. A market that could play a significant role towards Europe’s green transition is derivatives. The market has been tightly regulated since the 2007-08 financial crisis, making it safer and more transparent. Derivatives facilitate capital-raising via the hedging of risks related to sustainable investments. Moreover, they enhance the transparency and the price formation process of the underlying securities, and thus foster long-termism. This report highlights how derivatives markets can – through their forward dimension, their global and consolidated nature, and their proper regulation – contribute to: i. enabling the EU to raise and channel the necessary capital towards sustainable investments; ii. helping firms hedge risks related to ESG factors; iii. facilitating transparency, price discovery and market efficiency; and iv. contributing to long-termism.
    Date: 2020–07
  16. By: Dietrich, Alexander; Müller, Gernot; Schoenle, Raphael
    Abstract: Using a representative consumer survey in the U.S., we elicit beliefs about the economic impact of climate change. Respondents perceive a high probability of costly, rare disasters in the near future due to climate change, but not much of an impact on GDP growth. Salience of rare disasters through media coverage increases the disaster probability by up to 7 percentage points. We analyze these findings through the lens of a New Keynesian model with rare disasters. First, we illustrate how expectations of rare disasters impact economic activity. Second, we calibrate the model to capture the key aspects of the survey and quantify the expectation channel of climate change: disaster expectations lower the natural rate of interest by about 65 basis points and, assuming a conventional Taylor rule for monetary policy, inflation and the output gap by 0.3 and 0.2 percentage points, respectively. The effect is considerably stronger if monetary policy is constrained by the effective lower bound.
    Keywords: climate change; Disasters; Households Expectations; Media focus; monetary policy; Natural rate of interest; Paradox of Communication; survey
    JEL: E43 E52 E58
    Date: 2021–03
  17. By: Michael Finus (University of Graz, Austria); Francesco Furini (University of Hamburg, Germany and Università Ca’ Foscari Venezia, Italy); Anna Viktoria Rohrer (University of Graz, Austria)
    Abstract: We analyze the paradox of cooperation, as established by Barrett (1994), and later reiterated by many others, in a more general framework. That is, we show that stable coalitions are either small or if they are large, the potential gains from cooperation are small. First, we argue that the extension to a mitigation-adaptation game is a generalization of Barrett’s pure mitigation game. Second, we consider for this extension not only the Nash-Cournot scenario, as in Bayramoglu et al. (2018), but also the Stackelberg scenario. Third, we show generally that if mitigation levels in different countries are strategic substitutes, stable coalitions are larger in the Stackelberg than in the Nash-Cournot scenario. Fourth, this is reversed if mitigation levels are strategic complements, which is possible if the strategic interaction between mitigation and adaptation is sufficiently strong. Fifth, for all possible combination of assumptions, we demonstrate that the paradox of cooperation is robust, except if mitigation and adaptation were strategic complements, which we argue is an assumption not supported by empirical evidence.
    Keywords: Climate change; mitigation-adaptation game; international environmental agreements; paradox of cooperation; Nash-Cournot versus Stackelberg scenario.
    JEL: C72 F12 F18 H23 Q58
    Date: 2021–04
  18. By: Cruz, Jose-Luis; Rossi-Hansberg, Esteban
    Abstract: Global warming is a worldwide and protracted phenomenon with heterogeneous local economic effects. In order to evaluate the aggregate and local economic consequences of higher temperatures, we propose a dynamic economic assessment model of the world economy with high spatial resolution. Our model features a number of mechanisms through which individuals can adapt to global warming, including costly trade and migration, and local technological innovations and natality rates. We quantify the model at a 1-degree by 1-degree resolution and estimate damage functions that determine the impact of temperature changes on a region's fundamental productivity and amenities depending on local temperatures. Our baseline results show welfare losses as large as 15% in parts of Africa and Latin America but also high heterogeneity across locations, with northern regions in Siberia, Canada, and Alaska experiencing gains. Our results indicate large uncertainty about average welfare effects and point to migration and, to a lesser extent, innovation as important adaptation mechanisms. We use the model to assess the impact of carbon taxes, abatement technologies, and clean energy subsidies. Carbon taxes delay consumption of fossil fuels and help flatten the temperature curve but are much more effective when an abatement technology is forthcoming.
    JEL: F63 F69 Q51 Q54 Q56
    Date: 2021–02
  19. By: Yue-Jun (School of Business, Hunan University, Changsha, Hunan 410082, China); Ting Liang (School of Business, Hunan University, Changsha, Hunan 410082, ChinaAuthor-Name: Weijie Zhai); Zongwu Cai (Department of Economics, The University of Kansas, Lawrence, KS 66045, USA)
    Abstract: This paper investigates whether technological innovation can bring some economic and environmental benefits to energy firms. By analyzing data for energy firms in China from 2009 to 2017, this paper finds that technological innovation is not always beneficial to the multi-interests of energy firms. First, technological innovation does not necessarily fully promote the benefit-based performance of energy firms in China. Actually, technological innovation increases the excess returns but inhibits the operational efficiency of energy firms, and has no a significant impact on the firm value of energy firms. Moreover, technological innovation exacerbates the crash risks of energy firms, which is not conductive to the stability of energy financial market. Second, technological innovation may significantly reduce carbon emissions intensity and play an important role in improving the environmental performance of energy firms in China. Finally, a sharp rise in energy prices may inhibit technological innovation activities, and thus influencing the performance of energy firms.
    Keywords: Technological innovation; Energy firms; Firm performance; Truncated regression model; Treatment effect model
    JEL: Q55 M14 O13 L25
    Date: 2021–05
  20. By: Armand, Alex; Kim Taveras, Ivan
    Abstract: Evidence on the exact mechanism linking in utero shocks with early-childhood outcomes remains scarce because biological factors are often tangled with changes in parental inputs. This paper addresses this issue by exploiting exogenous variation in the ocean's productivity resulting from water acidification, a consequence of climate change that is negatively affecting marine life and has been largely ignored in the literature. Ocean acidification provides a unique setting to study prenatal nutritional deprivation as water chemistry affects fish stocks, but is not directly observed or felt by mothers. This isolates the channel of transmission to the availability of resources. We estimate the causal impact of the ocean's acidity while in utero on early-childhood mortality and development at a global scale, analyzing more than 1.5 million geocoded births taking place over the last 50 years in 36 developing countries. We compare children, including siblings, born in the same location but on different dates, controlling for a set of high-dimensional fixed effects. In coastal areas, a 0.01 unit increase in acidity causes 2 additional neonatal deaths per 1,000 live births. Using a novel measure of fishing pressure that combines local and industrial fishing, we show that the effect is strictly related to reduced access to nutrients during gestation. We find no evidence of parental adaptation on other inputs. Deprivation selectively affects the weakest children, creating small differences in child development. These results provide the first quantitative evidence linking the exploitation of renewable natural resources with malnutrition and neonatal selection.
    Keywords: Acidification; Child; climate change; Development; health; Mortality; nutrition; Ocean
    JEL: H51 I15 Q2 Q54
    Date: 2021–01
  21. By: Gollier, Christian
    Abstract: Any global temperature target must be translated into an intertemporal carbon budget and its associated cost-efficient carbon price schedule. Under the Hotelling's rule, the growth rate of this price should be equal to the interest rate. It is therefore a puzzle that cost-efficiency IAM models yield carbon prices that increase at an average real growth rate around 7% per year. This carbon pricing puzzle suggests that their abatement trajectories are not intertemporally optimized, probably because of the political unacceptability of a high initial carbon price. Using an intertemporal asset pricing approach, I examine the impact of the uncertainties surrounding economic growth and abatement technologies on the dynamics of efficient carbon prices, interest rates and risk premia. I show that marginal abatement costs and aggregate consumption are positively correlated along the optimal abatement path, implying a positive carbon risk premium and an efficient growth rate of expected carbon prices larger than the interest rate. From this numerical exercise, I recommend a growth rate of expected carbon price around 3.75% per year (plus inflation). I also show that the rigid carbon budget approach to cost-efficiency carbon pricing implies a large uncertainty surrounding the future carbon prices that support this constraint. In this model, green investors are compensated for this risk by a large risk premium embedded in the growth rate of expected carbon prices, not by a collar on carbon prices as often recommended.
    Keywords: Carbon budget; climate beta; green finance; risk-adjusted Hotelling's rule
    JEL: D81 G12 Q54
    Date: 2021–03
  22. By: Zuleta Jaramillo, Luis Alberto
    Abstract: En este documento se analiza el uso de bonos verdes por parte de la banca de desarrollo, el desempeño financiero de dichos bonos y sus costos asociados, así como el perfil de riesgo del instrumento y su marco regulatorio. El análisis se enfoca en América Latina y el Caribe. Se argumenta que algunos de los principales obstáculos para la emisión de bonos verdes son los costos de emisión, la ausencia de una cartera diversificada de proyectos de inversión y su baja rentabilidad. La coyuntura particular de la pandemia de enfermedad por coronavirus (COVID-19) supone una oportunidad de desarrollo para el mercado de bonos verdes, ya que la recuperación posterior a la emergencia requerirá grandes inversiones ligadas a exigencias ecológicas. Ello conllevará, asimismo, una necesidad de mayor coordinación entre los bancos nacionales de desarrollo.
    Date: 2021–04–16
  23. By: Elise Grieg (CER–ETH – Center of Economic Research at ETH Zurich, Switzerland)
    Abstract: To shed light on the political inertia around environmental legislation, I study the response of US senators to public opinion while controlling for special interest pressure. I combine data on public opinion (PO) on climate change---estimated by multilevel regression with poststratification---with campaign contributions from the extractive industries to indicate special interest (SI) influence, and use senator fixed effects, instrumental variables and the timing of senate elections for identification. PO has a strong impact on environmental legislation. The effects are different for the two parties: Republicans react to PO in election cycles, whereas Democrats are responsive through their whole term. The responsiveness of elected officials to environmental opinion is surprising: while Americans often favour envi- ronmental regulation in general, they tend to consider it as of low importance. I discuss possible explanations.
    Keywords: Public opinion, campaign finance, political economy, climate change
    JEL: D72 Q54 Q58
    Date: 2021–04
  24. By: Hémous, David; olsen, morten
    Abstract: It is increasingly evident that the direction of technological responds to economic incentives. We review the literature on directed technical change in the context of environmental economics and labor economics, and show that these fields have much in common both theoretically and empirically. We emphasize the importance of a balanced growth path. We show that the lack of such a path is closely related to the slow development of green technologies in environmental economics and growing inequality in labor economics. We discuss whether the direction of innovation is efficient.
    Keywords: automation; climate change; DTC; Endogenous Growth; Income inequality
    JEL: E25 J24 O31 O33 O41 O44 Q55
    Date: 2021–01
  25. By: Asongu, Simplice; Odhiambo, Nicholas
    Abstract: This research focuses on assessing how improving openness influences CO2 emissions in Sub-Saharan Africa. It is based on 49 countries in SSA for the period 2000-2018 divided into: (i) 44 countries in SSA for the period 2000-2012; and (ii) 49 countries for the period 2006-2018. Openness is measured in terms of trade and foreign direct investment (FDI) inflows. The empirical evidence is based on the Generalised Method of Moments. The following main findings are established. First, enhancing trade openness has a net positive impact on CO2 emissions, while increasing FDI has a net negative impact. Second, the relationship between CO2 emissions and trade is a Kuznets shape, while the nexus between CO2 emissions and FDI inflows is a U-shape. Third, a minimum trade openness (imports plus exports) threshold of 100 (% of GDP) and 200 (% of GDP) is beneficial in promoting a green economy for the first and second sample, respectively. Fourth, FDI is beneficial for the green economy below critical masses of 28.571 of Net FDI inflows (% of GDP) and 33.333 of net FDI inflows (% of GDP) for first and second samples, respectively. It follows from findings that while FDI can be effectively managed to reduce CO2 emissions, this may not be the case with trade openness because the corresponding thresholds for trade openness are closer to the maximum limit. This study complements the extant literature by providing critical masses of Trade and FDI that are relevant in promoting the green economy in Sub-Saharan Africa.
    Keywords: CO2 emissions; Economic development; Africa; Sustainable development
    JEL: C52 O38 O40 O55 P37
    Date: 2020–01
  26. By: Hilaire Drouineau (UR EABX - Ecosystèmes aquatiques et changements globaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, pôle OFB-INRAE- Agrocampus Ouest-UPPA pour la gestion des migrateurs amphihalins dans leur environnement - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UPPA - Université de Pau et des Pays de l'Adour - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - OFB - Office français de la biodiversité); Marie Vanacker (UR EABX - Ecosystèmes aquatiques et changements globaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Estibaliz Diaz (AZTI - Tecnalia); Maria Mateo (AZTI - Tecnalia); Maria Korta (AZTI - Tecnalia); Carlos Antunes (CIIMAR - Interdisciplinary Centre of Marine and Environmental Research [Matosinhos, Portugal] - Universidade do Porto); Carlos Fernández Delgado (Universidad de Córdoba [Cordoba]); Isabel Domingos (ULISBOA - Universidade de Lisboa); Lluis Zamora (Universitat de Girona [Girona] - UdG - Universitat de Girona); Laurent Beaulaton (OFB - Office français de la biodiversité, pôle OFB-INRAE- Agrocampus Ouest-UPPA pour la gestion des migrateurs amphihalins dans leur environnement - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UPPA - Université de Pau et des Pays de l'Adour - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - OFB - Office français de la biodiversité); Patrick Lambert (UR EABX - Ecosystèmes aquatiques et changements globaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, pôle OFB-INRAE- Agrocampus Ouest-UPPA pour la gestion des migrateurs amphihalins dans leur environnement - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UPPA - Université de Pau et des Pays de l'Adour - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - OFB - Office français de la biodiversité); Cédric Briand (IAV - Institution d'aménagement de la Vilaine)
    Abstract: Mistrust between scientists and non-scientist stakeholders is a key challenge in fishery management. The support of management with complex models is difficult, as these models cannot easily communicate their results to end users, resulting in a lack of confidence. As an example, the complex life cycle of the European eel raises problems of coordination and discussion among the multiple actors involved in the species' management. The GEREM model has been proposed as a tool for estimating recruitment, but its complexity, which is essential for addressing the characteristics of the species, makes it difficult to understand and accept by all stakeholders. In the context of the SUDOANG project, we proposed a co-parametrisation of this assessment model to tackle this mistrust. Through the use of various questionnaires, stakeholders were involved in two important choices for the model (zone definition and prior construction). Regular workshops and presentations were organised to explain the model rationales and to gather feedback and expectations. The results show that stakeholders have very similar perceptions of the potential definitions of sub-areas of recruitment in south-western Europe, and these perceptions are consistent with the underlying environmental conditions. On the other hand, the stakeholders have contrasting opinions about the exploitation rates of fisheries in different river basins, and the use of their knowledge currently has little effect on GEREM estimates. More importantly, the overall approach of this study is thought to have reconstructed the trust and confidence among participants.
    Keywords: Anguilla anguilla,complex model,participatory assessment,DISTATIS,Bayesian assessment model,GEREM
    Date: 2021
  27. By: Themann, Michael
    Abstract: This paper investigates the impact of temperature on operating revenue as a measure of economic output for more than a quarter of a million business group firms operating in 32 countries. For this purpose, we construct a novel global dataset that combines information on firm financials, ownership and location with global data on heat and precipitation from 2002 to 2012. The temperature-output-relationship takes a non-linear shape, with particularly strong negative effects at high temperatures. On average, an additional day with temperature above 32êC decreases annual operating revenue by 1.3%. This effect is driven by firms that operate in countries with relatively hot climates, i.e. average yearly temperature above 13êC. We then assess if shocks propagate within firm networks with exposure to these countries. We find that the weighted local shocks from subsidiaries translate into an on average drop in annual headquarter operating revenue by 4.2% per additional heat day. The estimates suggest that, under future warming, specific business group production networks might be severely impacted by heat-induced output losses.
    Keywords: Climate change,temperature extremes,multinational corporation
    JEL: D22 F23 Q54
    Date: 2021
  28. By: Tenzer, Constantin
    Abstract: The ecological and economic management of the fishery is a major issue. However, one reads contradic- tory discourses about it depending of the interest that animates it. Using mathematical models, I attempt to understand how to rationalize public policies in this multi-stakeholder area. It was a question of seeing, from mathematical models, how to optimize the fishery, that is to say, to allow fishermen and women to have maxi- mum gains while preserving the resource. We will see that these objectives are far from being incompatible and even go hand in hand. I study first with biological models, then with bio-economic models, a fishery where only one species is con- sidered exploited. I then propose models of exploitation of several species in trophic interaction by two differ- ent approaches: one with systems of coupled differential equations, the other by game theory with a stochastic epidemic model. We will be careful to formulate the assumptions and presuppositions of each model. We will also indicate possible improvements suggested by the literature.
    Date: 2021–04–25
  29. By: Diana B\"ottger; Philipp H\"artel
    Abstract: Climate and energy policy targets of the European Commission aim to make Europe the first climate-neutral continent by 2050. For low-carbon and net-neutral energy systems primarily based on variable renewable power generation, issues related to the market integration, cannibalisation of revenues, and cost recovery of wind and solar photovoltaics have become major concerns. The traditional discussion of the merit-order effect expects wholesale power prices in a system with 100 % renewable energy sources to alternate between very high and very low values. Unlike previous work, we present a structured and technology-specific analysis of the cross-sectoral demand bidding effect for the price formation in low-carbon power markets. Starting from a stylised market arrangement and by successively augmenting it with all relevant technologies, we construct and quantify the cross-sectoral demand bidding effects in future European power markets with the cross-sectoral market modelling framework SCOPE SD. As the main contribution, we explain and substantiate the market clearing effects of new market participants in detail. Hereby, we put a special focus on hybrid heat supply systems consisting of combined heat and power plant, fuel boiler, thermal storage and electrical back up and derive the opportunity costs of these systems. Furthermore, we show the effects of cross-border integration for a large-scale European net-neutral energy scenario. Finally, the detailed information on market clearing effects allows us to evaluate the resulting revenues of all major technology categories on future electricity markets.
    Date: 2021–05
  30. By: Alhassan A. Karakara (University of Cape Coast, Ghana); Evans S. Osabuohien (CEPDeR, Covenant University, Ota, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: Purpose – This paper analyses the extent to which households are deprived (or otherwise) of clean energy sources in Ghana. Design/methodology/approach – It engages the Ghana Demographic and Health Survey data (GDHS VI). Three different energy deprivation indicators were estimated: cooking fuel deprivation, lighting deprivation and indoor air pollution. The empirical evidence is based on logit regressions that explain whether households are deprived or not. Findings – The results show that energy deprivation or access is contingent on the area of residence. Energy access and deprivation in Ghana show some regional disparities, even though across every region, the majority of households use three fuel types: Liquefied Petroleum Gas (LPG), charcoal and wood cut. Increases in wealth and education lead to reduction in the likelihood of being energy deprived. Thus, efforts should be geared towards policies that will ensure households having access to clean fuels to reduce the attendant deprivations and corresponding effects of using dangerous or dirty fuels. Originality/value – This study complements the extant literature by analysing the extent to which households are deprived (or otherwise) of clean energy sources in Ghana.
    Keywords: Energy deprivation, Ghana, Households, Sustainable development
    JEL: O13 P28 Q42
    Date: 2021–01
  31. By: Monika Matusiak (European Commission - JRC); Katerina Ciampi Stancova (European Commission - JRC); Mafini Dosso (European Commission - JRC); Chux Daniels (SPRU-Science and Technology Policy Research, University of Sussex (Brighton, United Kingdom)); Michael Miedziński (University College London (London, United Kingdom))
    Abstract: This background paper serves as an Annex to the United Nation’s Guidebook for the Preparation of Science, Technology and Innovation (STI) for SDGs Roadmaps. Its purpose is to provide an overview of the existing methodologies and approaches that can be used to develop the Roadmaps. While the first framework for STI for SDGs Roadmaps has been proposed in the UN Guidebook, multiple United Nations (UN) Agencies and other organisations have developed approaches over the years that can successfully support different steps in the new methodology, depending on the capacity and specific needs of interested countries, subnational territories or international partnerships.
    Keywords: Sustainable Development Goals, Smart Specialisation, innovation, innovation for sustainability, Green Deal, STI roadmaps
    Date: 2021–04
  32. By: Florian Flachenecker (European Commission, Joint Research Centre, Brussels, Belgium); Martin Kornejew (University of Bonn, Bonn, Germany); Mario Lorenzo Janiri (European Commission, Joint Research Centre, Brussels, Belgium)
    Abstract: Enabling innovations with environmental benefits is considered crucial to align economic and environmental objectives. We estimate the economic effects of publicly supported environmental innovations for the business economy of 13 Member States of the European Union. Using an instrumental variable approach to address the inherent endogeneity problem, we find that the average publicly supported environmental innovation increases firm employment by 9%, turnover by 12% and market share by 12% over a two-year period. Notwithstanding country and sector heterogeneity, essentially all countries and sectors show positive effects. Moreover, the results are not driven by highly innovative firms but are based on small and medium-sized enterprises with limited innovation activity. Thus, this paper provides robust evidence that public financial support for environmental innovations can align economic and environmental objectives for a broad set of firms, sectors and countries. Public policy supporting environmental innovations might therefore facilitate the recovery and transition to a more sustainable economy.
    Keywords: eco-innovation; environmental innovation; competitiveness; firm growth; European Union
    JEL: C26 O31 O44 Q32 Q56
    Date: 2021–06
  33. By: Yingfei Mu; Edward A. Rubin; Eric Zou
    Abstract: Regulators often rely on self-reported data to determine compliance. Tolerance for missingness in self-monitoring data may create incentives for local agents to strategically decide when (not) to monitor regulated activities. This paper builds a framework to detect whether local governments skip air pollution monitoring when they expect air quality to deteriorate. We infer this expectation from air quality alerts – public advisories based on local governments’ own pollution forecasts – and test whether monitors’ sampling rates fall when these alerts occur. We first use this method to test an individual pollution monitor in Jersey City, NJ, suspected of a deliberate shutdown during the 2013 “Bridgegate” traffic jam. Consistent with strategic shutdowns, this monitor’s sampling rate drops by 33% on days that Jersey City issues pollution alerts. Building on large-scale inference tools, we then apply the method to test over 1,300 monitors across the U.S., finding at least 14 metro areas with clusters of monitors showing similar strategic behavior. We discuss imputation methods and policy responses that may help deter future strategic monitoring.
    JEL: C12 H77 Q53
    Date: 2021–04
  34. By: Asongu, Simplice; Odhiambo, Nicholas
    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 O11 O55 Q20 Q30
    Date: 2020–01
  35. By: Juan Casado-Asensio; Takayoshi Kato; Heiwon Shin
    Abstract: For many private sector actors, especially micro, small and medium-sized enterprises (MSMEs), it remains challenging to understand how the impacts of climate change may influence their business profitability and continuity over time, and how they can manage climate risks. This working paper explores how governments and development co-operation providers can further engage with the private sector to address these challenges and strengthen its resilience to the negative impacts of climate change. The paper focuses on different roles of the private sector in strengthening climate resilience. It then examines how governments and development co-operation can foster such roles through enhancing domestic institutions and networks, policy frameworks, climate and weather data and information, and financing mechanisms. The proposed actions draw from the experiences of three case studies: Guatemala, the Philippines and Senegal.
    JEL: Q54 Q56 Q58
    Date: 2021–05–07
  36. By: Oliveira, Eduardo (Christian-Albrechts-Universität zu Kiel); Meyfroidt, Patrick
    Abstract: Strategic spatial planning (SSP) represents a consolidated long-term governance practice across developed and developing countries. It articulates sectoral policies, and it involves vision making and an array of stakeholders regarding land use and development issues around urban and rural territories. Land-use frontiers are territories with abundant land for agriculture and forestry, availability of natural resources relative to labor or capital, and rapid land-use change, often driven by large-scale investments and capitalized actors producing commodities for distal markets. Among various reasons, one of the objectives of SSP processes is to articulate a more coherent and future-oriented spatial logic for sustainable land-use patterns, resource protection and investments. SSP may thus constitute a useful approach to address some of the challenges posed to the governance of land-use frontiers, thus far, its potential contribution in land-use frontiers lacks an explicitly exploration. Here, we examine how SSP can play a role in governing land-use frontiers, through a case-study analysis of Mozambique as an emerging investment frontier. We gathered empirical evidence by interviewing experts involved in resource management, planning and strategizing territorial development in the country, complemented by a content analysis of literature and policy documents. We show that emerging land-use frontiers face several challenges, such as transnational land deals and intensification of commercial plantations. Interview data show that Mozambique lacks a strategic territorial vision, and the short-termism of political cycles hinders long-term territorial development, primarily in rural areas with plentiful land. Our analysis shows that SSP processes could contribute to address both global and country-specific challenges such as poverty traps and land degradation spirals, if various local and distant actors join forces and marry interests. We conclude by presenting a systematic framework explaining how SSP could play a role in governing emerging land-use frontiers for sustainable pathways.
    Date: 2021–04–27
  37. By: Themann, Michael; Koch, Nikolas
    Abstract: This paper assesses the potential impact of the European Union Emissions Trading System (EU ETS) on firm productivity. We estimate a stylized version of the neo-Schumpeterian model, which incorporates innovation and productivity catch-up as two potential sources of firm's productivity growth, while at the same time accounting for persistent productivity dispersion within industries. This dynamic model allows us to differentiate the potential effects of the EU ETS on total factor productivity (TFP) depending on the level of firms' technological advancement. The identification approach is based on a difference-in-difference approach exploiting the incomplete participation requirements of the EU ETS and the rich panel structure of firm-level data for eight EU countries from 2002 to 2012. We find evidence that the policy effects on TFP are highly heterogeneous and depend on the distance to the technological frontier, measured as the highest TFP in each year-industry. Productivity effects are positive for firms that are close to the frontier, but they turn negative for firms operating far behind the frontier.
    Keywords: Environmental regulation,EU ETS,productivity,competitiveness
    JEL: D22 Q54 Q58
    Date: 2021
  38. By: Okolo-Obasi, Elda; Uduji, Joseph; Asongu, Simplice
    Abstract: The purpose of this paper is to critically examine the multinational oil companies (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the impact of the global memorandum of understanding (GMoU) on development of rural women’s traditional enterprises in the Niger Delta region. A total of 2400 women were sampled across the region. Results from the use of a combined propensity score matching and logit model indicate that the GMoU model of the CSR has recorded significant success in supporting farming and fishing transformation generally; but has also undermined those initiatives that focused on empowering rural women in traditional enterprises, due to the cultural and traditional context in the region. This causes both direct harm to women and their children, and wider costs to African economies. It implies that if the GMoU interventions are not targeted to raise women’s economic status and to deter aggression, invariably they may contribute towards reducing the participation of women in economic, political and social development and, by extension, dampen efforts in deterring poverty and achieving the sustainable development goals (SDGs) in sub-Saharan Africa.
    Keywords: Traditional enterprises, corporate social responsibility, rural women transformation, multinational oil companies, propensity score matching, sub-Saharan Africa
    JEL: I3 O1 O55
    Date: 2020–01
  39. By: Francesco Sarracino (STATEC Research, GLO); Kelsey J. O'Connor (STATEC Research, IZA, GLO)
    Abstract: A series of crises, culminating with COVID-19, shows that going Beyond GDP is urgently necessary. Social and environmental degradation are consequences of emphasizing GDP as a measure of progress. This degradation created the conditions for the COVID-19 pandemic and limited the efficacy of counter-measures. Additionally, rich countries did not fare the pandemic much better than poor ones. COVID-19 thrived on inequalities and a lack of cooperation. In this article we leverage on defensive growth models to explain the complex relationships between these factors, and we put forward the idea of neo-humanism, a cultural movement grounded on evidence from quality-of-life studies. The movement proposes a new culture leading towards a socially and environmentally sustainable future. Specifically, neo-humanism suggests that prioritizing well-being by, for instance, promoting social relations, would benefit the environment, enable collective action to address public issues, which in turn positively affects productivity and health, among other behavioral outcomes, and thereby instills a virtuous cycle. Arguably, such a society would have been better endowed to cope with COVID-19, and possibly even prevented the pandemic. Neo-humanism proposes a world in which the well-being of people comes before the well-being of markets, in which promoting cooperation and social relations represents the starting point for better lives, and a peaceful and respectful coexistence with other species on Earth.
    Date: 2021–05
  40. By: David Gaukrodger (OECD)
    Abstract: Investment treaty policy increasingly interacts with business responsibilities. This scoping paper first surveys the converging approaches to responsible business conduct (RBC) and business and human rights (BHR) as reflected in the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights and core ILO standards. Legislative developments and court cases are examined. The paper focuses primarily on government action as part of a flexible “smart mix” to address RBC and maximise the positive contribution of business to sustainable development, but also examines some business and civil society action.Three aspects of trade and investment treaty interaction with business responsibilities are considered: treaty impact on policy space for governments including for the non-discriminatory regulation of business; treaty provisions that buttress domestic environmental, labour or other law; and provisions that speak directly to business by, for example, encouraging RBC or establishing conditions for access to investment treaty benefits.
    Keywords: bilateral investment treaties, business and human rights, environmental law, human rights, investment treaties, investment treaty policy, investor-state dispute settlement, policy space, regulatory autonomy, responsible business conduct, right to regulate, sustainable development
    JEL: F13 F21 F23 F60 K23 K29 K32 K33 K38 M14
    Date: 2021–05–04
  41. By: Kulkarni, Shruti
    Abstract: The objective of the present paper is to review the current state of climate change technology transfer. This research proposes a method for analyzing climate change technology transfer using patent analysis and topic modeling. A collection of climate change patent data from patent databases would be used as input to group patents in several relevant topics for climate change mitigation using the topic exploration model in this research. The research questions we want to address are: how have patenting activities changed over time in climate change mitigation related technology (CCMT) patents? And who are the technological leaders? The investigation of these questions can offer the technological landscape in climate change-related technologies at the international level. We propose a hybrid Latent Dirichlet Allocation (LDA) approach for topic modelling and identification of relationships between terms and topics related to CCMT, enabling better visualizations of underlying intellectual property dynamics. Further, a predictive model for CCTT is proposed using techniques such as social network analysis (SNA) and, regression analysis. The competitor analysis is also proposed to identify countries with a similar patent landscape. The projected results are expected to facilitate the transfer process associated with existing and emerging climate change technologies and improve technology cooperation between governments.
    Date: 2020–04–25
  42. By: Song, Yeongkwan
    Abstract: Many expect that the trade war between the US and China will persist, and East Asia's global value chains will undergo a significant transformation in the mid- to long-term, as China's contracts while that of ASEAN expands. Accordingly, to effectively respond to the coming changes, Korea should adopt proactive strategies to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and attract quality FDI in an effort to realize sustainable growth.
    Date: 2021
  43. By: Gao Tianming (HRBEU - Harbin Engineering University); Nikolai Bobylev (SPBU - Saint Petersburg University); Sébastien Gadal (North-Eastern Federal University, ESPACE - Études des Structures, des Processus d’Adaptation et des Changements de l’Espace - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - AU - Avignon Université - UCA - Université Côte d'Azur); Maria Lagutina (SPBU - Saint Petersburg State University); Alexander Sergunin (SPBU - Saint Petersburg State University); Vasilii Erokhin (MGIMO - Moscow State Institute of International Relations, HRBEU - Harbin Engineering University, KWU - Key West University)
    Abstract: The main research objective of this study is to examine how coastal urban communities in the Arctic Zone of the Russian Federation (AZRF) organize the sustainable development (and emerging blue economy) strategy planning process. Along with this general objective, this study focuses on four more specific questions: First, to examine whether the sustainable development and blue economy concepts are integrated into the urban development strategies and whether they are a real priority for the northern coastal communities? Second, to figure out which local government and civil society institutions are involved in the policy planning process and whether this sphere of local politics is transparent and open to public discussions? Third, to find out which specific aspects of the sustainable development and coastal blue economy concepts are given priority in the municipal development strategies? Finally, to discuss whether the AZRF coastal sustainable development/blue economy strategies aim to solve short-term/most pressing problems or they suggest long-term policies built on sustainability principles and are oriented to solve fundamental socioeconomic and ecological problems of the AZRF coastal communities? The hypothesis of this study is that a properly designed strategy planning system would be helpful for both familiarizing northern municipalities with the blue economy concept and its effective implementation. This research is based on several empirical cases, including major Arctic coastal urban centers/ports-Anadyr, Arkhangelsk, Dudinka, Murmansk, Naryan-Mar, Pevek, Sabetta, and Severodvinsk.
    Keywords: Sustainable development strategies,Regional and urban planning,Coastal areas and municipalities,Blue economy,Arctic Zone of the Russian Federation,Urban Development,Sustainability,Economic,Ports,Arctic,Russia
    Date: 2021–04–28
  44. By: Wendland, Finn
    Abstract: Bei der Umsetzung der europäischen Klimaziele in den Sektoren Verkehr und Wärme kam der EU-Energiesteuerrichtlinie (ETD) bislang eine vergleichsweise geringe Bedeutung zu. Eine CO2-basierte Nachschärfung der Energiebesteuerungsregeln im Rahmen des Fit-for-55-Pakets könnte der seit 2003 unveränderten ETD zur intendierten Lenkungsfunktion verhelfen.
    Date: 2021
  45. By: Jose Pizarro; Eduardo S. Schwartz
    Abstract: The literature on the optimal harvest of fisheries has concentrated on a single fishing area with biomass uncertainty and to a lesser degree also with price uncertainty. We develop and implement a stochastic optimal control approach to determine the harvest that maximizes the value of a fishery participating in a global market, where all the considered harvesting zones sell their production. This market is characterized by an inverse demand function, which combines an exogenous demand shock and the aggregate harvesting of all zones. Accordingly, a fishery's harvest will be affected by the global demand shocks and the harvesting in all the competing zones through the global selling price. In addition, we decompose the biomass uncertainty into local and global biomass shocks. Through global biomass shocks, the model provides enough flexibility to acknowledge for correlation in the biomass shocks faced by the multiple perhaps adjacent areas. When we compare our global framework with an alternative where the individual zones are aggregated into a single optimizing fishery we find that competition will increase the global harvest and consequently reduced the resource price.
    JEL: G10 G13 G31 Q20 Q22
    Date: 2021–04
  46. By: Ridhima Gupta; Martino Pelli
    Abstract: This study investigates the causal link between electrification and the adoption of modern (and cleaner) cooking fuels, more specifically Liquefied Petroleum Gas (LPG). In order to correct for the potential endogeneity in the placement of electrical infrastructure, we exploit an instrumental variable approach. Our instrument interacts state-level supply shifts in hydroelectric power availability with the initial level of electrification of each district. The results are consistent with a choice set expansion under a fixed budget constraint. We find that electrification leads to an increase in the probability of adoption of (free) biomass fuels and a decrease in the probability of adoption of (costly) modern cooking fuels. These results are statistically significant only for the poorest households in our sample, while they become statistically insignificant when we move to richer households. The same is true for the share of expenditure in a specific fuel. These results seem to indicate that electrification, by creating an additional strain on households' finances, pushes them back on the energy ladder.
    Keywords: Rural Electrification,Cooking Fuel,Energy Ladder,Fuel Stacking,
    JEL: O12 O13 Q56
    Date: 2021–04–30
  47. By: Morten Endrikat (University of Aachen)
    Abstract: This paper theoretically and empirically investigates the effect of natural resource rents on the process of economic liberalization and a potential moderating effect of the level of democracy. A simple political-economic model is developed in which the government in an autocratic country faces a trade-off between liberalizing the economy to broaden the tax base on the one hand and consolidating its political power by preventing the rise of an economically independent middle class striving for political participation on the other hand. Whilst the theoretical model predicts that rents from natural resources lead to economic liberalization in both autocratic and democratic countries, the empirical analysis finds evidence that increasing resource abundance may lead to deliberalization in autocracies but may promote liberalization in democracies. The empirical evidence is robust to using both static panel data methods that control for unobserved country heterogeneity as well as a dynamic GMM estimator that further controls for potential endogeneity issues.
    Keywords: Natural Resources, Resource Curse, Institutions, Taxation, Economic Liberalization, Entrepreneurship
    JEL: D73 H20 O13 O39 Q32 Q38
    Date: 2021
  48. By: Bashar, Omar; Mallick, Debdulal
    Abstract: Volatility persistence has important welfare consequences. In this paper, we investigate the effect on volatility persistence of the frequency of shocks for which we consider exogenous natural disasters. We find that, on average, volatility persistence is about 5 percent lower in countries that have experienced one more natural disasters per year. However, there is a non-linearity in that volatility persistence initially decreases and then increases with the frequency of natural disasters. The results are explained in terms of disaster resilience—countries that experience natural disasters frequently develop resilience that shields the economy from the destruction of natural disasters and/or expedites economic recovery. Among the factors that potentially create resilience, we find significance of its structural component.
    Keywords: Shock; Natural disaster; Resilience; Volatility persistence
    JEL: E32 H54 I38 Q54
    Date: 2021–05
  49. By: Ramírez, Juan Carlos; de Aguas, Johan Manuel
    Abstract: El desarrollo teórico alrededor de la competitividad de las regiones y los territorios subnacionales es amplio y diverso. Distintas concepciones de la competitividad resaltan conjuntos particulares de elementos relevantes. El Escalafón de Competitividad de los Departamentos de Colombia, en forma sincrética amalgama elementos de la microeconómía de la firma, el crecimiento endógeno, la economía schumpeteriana, la teoría de juegos, la economía institucional, la economía evolutiva y la nueva geografía económica. En este marco, el Escalafón relaciona la competitividad de los departamentos con la presencia de cinco factores claves, que examinan: la fortaleza económica: las condiciones macroeconómicas y estructurales; la infraestructura y logística: el nivel de conectividad estratégica; el bienestar social y capital humano: las condiciones de vida y de derechos económicos y sociales; la ciencia, tecnología e innovación: la generación de conocimiento y productos de innovación; y la institucionalidad y gestión pública: las condiciones de gobernanza que catalizan la competitividad.
    Date: 2021–04–09
  50. By: Yoann Sidoli; Andrey Nicoa Hernández Meza; Dounia Belghiti (Phd Talent); Jean-Sébastien Decaux (Terre & Fils); Laure Lignon; Camille Richert (CHSP - Centre d'histoire de Sciences Po - Sciences Po - Sciences Po); Chloé Coursaget (Accroche-com'); Jacques Farine (Accroche-com'); Leonora Le Quang Huy (Accroche-com'); Lise Parjouet (Accroche-com'); Marie Gastaut (Accroche-com'); Martin Bruno
    Abstract: Ce rapport a pour finalité d'évaluer l'ancrage géographique et les effets sociaux d'activités de fabrication françaises, susceptibles de faire intervenir des ressources territorialisées, humaines et non humaines. La spécificité de cet objet d'étude nous a conduits à formuler le concept original de « manufacture patrimoniale ». La première partie s'attache à restituer la dynamique temporelle de la répartition territoriale des manufactures. Une série de cartes inédites, qui permettent de les localiser au fil du temps, sont éclairées par des disciplines aussi diverses que l'histoire de la pensée économique, la sociologie et la géologie. La deuxième partie se focalise sur les répercussions sociales des manufactures, saisies au crible d'une littérature scientifique et à partir d'une étude de cas jugés particulièrement heuristiques.
    Date: 2021–04–21
  51. By: -
    Abstract: Las estadísticas de nacimientos y defunciones cobran especial importancia para estimar el tamaño y crecimiento de una población. Además, constituyen una importante información para el diseño, aplicación y evaluación de programas de salud pública, salud materno-infantil y otros programas. Junto con ello, la continuidad y las desagregaciones de las estadísticas vitales permiten comprender las dimensiones económicas y sociales de una población, y constituyen una importante fuente de datos para el cálculo de indicadores de desarrollo, en especial para el seguimiento de la Agenda 2030 y el Consenso de Montevideo. Este documento tiene por objetivo resumir las principales características de los registros de nacimientos y defunciones en América Latina y, además, ilustrar las diferentes técnicas para evaluar su completitud.
    Date: 2021–04–30
  52. By: Turra, Cassio M.; Fernandes, Fernando
    Abstract: En los últimos 50 años, la región de América Latina y el Caribe ha experimentado rápidos cambios demográficos, sociales, económicos y políticos. Sin embargo, y no obstante la reducción de la pobreza, los progresos en la prestación de los servicios básicos a la población y las mejoras en materia de educación, salud e igualdad de género, persisten diversos desafíos. En particular, la desigualdad a nivel intergeneracional e intergeneracional sigue siendo alta. Además, en la mayoría de los casos, la transición demográfica ha sido más veloz que la capacidad de las sociedades de propiciar las condiciones para el desarrollo sostenible. Las mediciones de bienestar varían en función de la edad, el género y otras dimensiones demográficas. Por ende, el progreso hacia la consecución de los Objetivos de Desarrollo Sostenible (ODS) está indisolublemente ligado a las tendencias demográficas, y si desean aprovechar al máximo las oportunidades y responder a los nuevos desafíos que entraña la transición demográfica, las sociedades deben adoptar políticas que les permitan adelantarse a la dinámica de la población. La Agenda 2030 para el Desarrollo Sostenible también se ve afectada por la manera en que las familias, los gobiernos y el mercado distribuyen los recursos dentro de los grupos de edad y entre ellos. Los extensos cambios demográficos podrían exigir la introducción de ajustes a los programas de forma que se asignen recursos a lo largo del ciclo de vida, lo que en última instancia permitirá combatir la desigualdad y asegurar que el desarrollo sostenible se lleve adelante con éxito.
    Date: 2021–04–20
  53. By: Romain Espinosa (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Anis Nassar (University of Fribourg)
    Abstract: We propose and test a model of food policy acceptability. The model is structured in four levels: government, topic, policy, and individual. In this study, we focus on two levels that are actionable for policy-makers: the topic and policy levels. We assess nine factors using a first online survey with 600 UK nationals and replicate our results in a second survey with 588 participants. Our results suggest that three factors have a positive effect on acceptability at the topic level: awareness of the issue, the legitimacy of state intervention, and social norms. At the policy level, we report a positive effect of the policy's expected effectiveness, its appropriate targeting of consumers, and the perceived support of the majority. On the other hand, more coercive interventions and those generating inequalities are judged to be less acceptable. Additionally, we report an interaction between awareness and coerciveness on acceptability. Participants who are aware of the issue were more likely to support coercive policies. We also find evidence for a trade-off between coerciveness, effectiveness, and acceptability, as more coercive measures are considered more effective, but less acceptable by participants. Our findings offer policy-makers, nutrition experts, and advocates for healthier and more sustainable diets a new and integrated understanding of the underlying factors that determine food policy acceptability.
    Keywords: acceptability,food policy,survey
    Date: 2021
  54. By: Magontier, Pierre; Sole-Olle, Albert; Viladecans-Marsal, Elisabet
    Abstract: We study the role of intergovernmental cooperation in protecting coastal land from development in Spain. Curbing the development of coastal land may generate benefits (e.g., preservation of environmental amenities and reduced tourist congestion) and costs (e.g., job losses), not only for residents in the political jurisdiction, but also for non-residents. Local governments may therefore make decisions in isolation that do not take account of the welfare of non-residents and may not choose the right amount of development. In this paper we investigate how political alignment between the mayors of neighboring municipalities may enhance incentives to cooperate and affect development in coastal areas. Using a regression discontinuity design and high-quality administrative data from the cadaster on the amount of built-up land along the Spanish coast, we found that municipalities with mayors belonging to the ideological bloc governing a majority of municipalities in a coastal area develop less land than other municipalities. This effect is larger for land very close to the coast and in municipalities with a higher share of environmentally valuable land.
    Keywords: land-use policy; Local government; Regression Discontinuity
    JEL: D72 H70 R52
    Date: 2021–02
  55. By: Joshua Aizenman; Yothin Jinjarak; Hien Thi Kim Nguyen; Donghyun Park
    Abstract: This paper examines the association between episodes of large fiscal impulses (expansions and adjustments) and sustainable development indicators (prosperity, resilience, and inclusivity). We provide country studies of Chile, Poland, South Africa, and Thailand, examining the components of government expenses and tax revenues, and reporting four stylized patterns from the analysis. (i) Fiscal expansions led to higher growth rates and reduced negative trade-offs, e.g., pollution and poor-health mortalities associated with economic growth. (ii) Fiscal adjustments led to a more inclusive economy, lowered poverty headcounts, improved sanitation, and cleaner technology access. (iii) Fiscal expansions followed an increase in direct taxes (especially corporate taxes) and a decline in social contributions, and preceded a decline in other direct taxes and an increase in wage bills. (iv) Fiscal adjustments followed a decline in other direct taxes and social contributions, an increase in wage bills, and preceded a decline in government consumption expenditure and transfers. In light of these findings, the domestic resource mobilization should consider the time paths of the taxes and expenditure components to understand their empirical linkages with the sustainable development outcomes in the respective countries.
    JEL: E62 F15 F41 O11
    Date: 2021–04
  56. By: Villas-Boas, Sofia B; Copfer, Jackie; Campbell, Nica
    Keywords: Social and Behavioral Sciences
    Date: 2021–05–03
  57. By: Lee, Jungho; Wei, Shang-Jin; Xu, Jianhuan
    Abstract: A current account surplus is associated with a welfare loss, according to the existing open-economy macroeconomics literature, only when there are distortions in either savings or investment. We propose a new source of welfare loss even in the absence of such distortions. In particular, a trade surplus, the largest component of a current account surplus for most countries, can alter the shipping costs and the composition of a country's imports and exports in ways that tend to raise the pollution level of the country. Thus, when its pollution tax is low, a trade surplus can produce a welfare loss outside the standard channels.
    Keywords: and transportation cost; pollution; trade surplus
    JEL: F18 F32
    Date: 2021–02
  58. By: Grafström, Jonas (The Ratio Institute); Poudineh, Rahmat (Oxford Institute for Energy Studies)
    Abstract: The learning curve concept, which relates historically observed reductions in the cost of a technology to the number of units produced or the capacity cumulatively installed, has been widely adopted to analyse the technological progress of renewable resources, such as solar PV and wind power, and to predict their future penetration. Learning curves were originally an empirical tool to evaluate learning-by-doing in manufacturing, and the jump to analysis of country-level technological change in renewable energy is an extension that requires careful consideration. This paper provides a review of the problems associated with learning curves for solar and wind power technologies. Issues such as whether the past cost reductions affect the future, learning curve specification problems, changing price ratios and econometric issues are discussed. Learning curves have a place in research, but there are several pitfalls that researchers should be careful not to overlook.
    Keywords: learning curve; learning rate; energy technology; wind power; solar power
    JEL: E61 O32 Q20 Q58
    Date: 2021–05–03
  59. By: Burchardi, Konrad B.; de Quidt, Jonathan; Gulesci, Selim; Lerva, Benedetta; Tripodi, Stefano
    Abstract: Researchers frequently use variants of the Becker-DeGroot-Marschak (BDM) mechanism to elicit willingness to pay (WTP). These variants involve numerous incentive-irrelevant design choices, some of which carry advantages for implementation but may deteriorate participant comprehension or trust in the mechanism, which are well-known problems with the BDM. We highlight three such features and test them in the field in rural Uganda, a relevant population for many recent applications. Comprehension is very high, and 86 percent of participants bid optimally for an induced-value voucher, with little variation across treatments. This gives confidence for similar applications, and suggests the comprehension-expediency trade-off is mild.
    Keywords: Becker-DeGroot-Marschak; field experiment; Willingness to pay
    JEL: C90 C93 D44 O12
    Date: 2021–02
  60. By: Fleiter, Tobias; Lotz, Meta Thurid; Arens, Marlene; Schlomann, Barbara
    Abstract: The policy mix for industry decarbonization in Germany currently undergoes substantial changes. While in the past, it focused strongly on measures supporting and regulating energy efficiency, while in recent years instruments were added that aim at deep decarbonization of industrial production processes and at the long-term transformation of the industry sector. This report presents a summary of the policy instruments aimed at decarbonizing the basic material industry sector in Germany considering currently implemented and planned policies. We provide detailed fact sheets with the current policy design. There is a particular focus on policies supporting innovation and the market entry of new emerging technologies in the following fields, which are regarded central for industry decarbonisation:* hydrogen use, * electrification of industrial heat production, * carbon capture and storage, * bio-based materials, * recycling of materials. Furthermore, we present a summary of the policy mix and discuss its effectiveness to induce the needed technological change towards CO2-neutrality in heavy industry. Current gaps in the policy mix are identified and recommendations to reform the policy mix are provided.
    Keywords: industry transformation,decarbonisation,policy mix
    Date: 2021

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.