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on Environmental Economics |
| By: | Esther Turnhout (Wageningen University [The Netherlands]); Pamela Mcelwee (Department of Human Ecology, Rutgers University); Mireille Chiroleu-Assouline (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jennifer Clapp (School of Environment, Resources and Sustainability, University of Waterloo); Cindy Isenhour (Department of Anthropology & Climate Change Institute, University of Maine); Eszter Kelemen (ESSRG ENVIRONMENTAL SOCIAL SCIENCE RESEARCH GROUP HUN - Partenaires IRSTEA - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture, Centre for Social Sciences, Institute for Sociology, Budapest); Tim Jackson (Center for the Understanding of Sustainable Prosperity, University of Surrey); Daniel Miller (Department of Natural Resources and Environmental Sciences, University of Illinois at Urbana-Champaign); Graciela Rusch (NINA NORWEGIAN INSTITUTE FOR NATURE RESEARCH TRONDHEIM NOR - Partenaires IRSTEA - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture); Joachim Spangenberg (Sustainable Europe Research Institute SERI Germany, Cologne); Anthony Waldron (Cambridge Conservation Initiative, Cambridge University, The Working Ant, Cambridge) |
| Abstract: | The COVID-19 pandemic, its impact on the global economy, and current delays in the negotiation of the post-2020 global biodiversity agenda of the Convention on Biological Diversity heighten the urgency to build back better for biodiversity, sustainability, and well-being. In 2019 the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) concluded that addressing biodiversity loss requires a transformative change of the global economic system. Drawing on the IPBES findings, this policy perspective discusses actions in four priority areas to inform the post-2020 agenda: (1) Increasing funding for conservation; (2) redirecting incentives for sustainability; (3) creating an enabling regulatory environment; and (4) reforming metrics to assess biodiversity impacts and progress toward sustainable and just goals. As the COVID-19 pandemic has made clear, and the negotiations for the post-2020 agenda have emphasized, governments are indispensable in guiding economic systems and must take an active role in transformations, along with businesses and civil society. These key actors must work together to implement actions that combine short-term impacts with structural change to shift economic systems away from a fixation with growth toward human and ecological well-being. The four priority areas discussed here provide opportunities for the post-2020 agenda to do so. |
| Keywords: | Biodiversity conservation,Economic systems,Green finance,Incentives,Metrics,Policy,Regulation,Subsidies,Trade,Transformative change |
| Date: | 2021–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-03216191&r= |
| By: | Elvis Avenyo; Fiona Tregenna |
| Abstract: | Industrialisation is recognised as important for developing countries’ growth and ‘catching up’ with advanced economies, but is also associated with harmful carbon dioxide (CO2) emissions and hence with climate change. This poses a challenge to sustainable development, particularly for late industrialisers: how to industrialise while also mitigating CO2 emissions. This paper investigates the effect of technology intensity in manufacturing on CO2 emissions: is high-technology manufacturing less emitting than medium-technology and, in turn, low-technology manufacturing? We analyse this for a panel of 56 developing economies over the period 1991 to 2014, estimated using generalised method of moments (GMM). Methodologically, we adapt and synthesise the environmental Kuznets curve (EKC) and the stochastic effect by regression on population, affluence and technology (STIRPAT) approaches. We utilise two alternative measures of emissions: absolute and per capita volumes. Our results show that medium- and high-technology manufacturing are associated with higher emissions than low-technology manufacturing. In relation to the technology intensity of manufacturing exports, we find high-technology manufacturing to be associated with lower emissions than medium-technology manufacturing, and in turn low-technology manufacturing. These findings have important policy implications, suggesting that a shift towards more technology-intensive manufacturing may be a more environmentally sustainable industrialisation path for developing countries. |
| Keywords: | carbon dioxide (CO2) emissions, industrialisation, manufacturing, Technology, developing countries |
| JEL: | F18 O13 O14 O33 Q01 Q54 Q56 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:846&r= |
| By: | Juan B Gonzalez; Alfonso Sanchez |
| Abstract: | Climate change perceptions are fundamental for adaptation and environmental policy support. Although Africa is one of the most vulnerable regions to climate change, little research has focused on how climate change is perceived in the continent. Using random forest methodology, we analyse Afrobarometer data (N = 45,732), joint with climatic data, to explore what shapes climate change perceptions in Africa. We include 5 different dimensions of climate change perceptions: awareness, belief in its human cause, risk perception, need to stop it and self-efficacy. Results indicate that perceived agriculture conditions are crucial for perceiving climate change. Country-level factors and long-term changes in local weather conditions are among the most important predictors. Moreover, education level, access to information, poverty, authoritarian values, and trust in institutions shape individual climate change perceptions. Demographic effects -- including religion -- seem negligible. These findings suggest policymakers and environmental communicators how to frame climate change in Africa to raise awareness, gather public support and induce adaptation. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.07867&r= |
| By: | Stan W.J. Olijslagers; Rick van der Ploeg; Sweder van Wijnbergen |
| Abstract: | We analyse optimal abatement and carbon pricing strategies under a variety of economic, temperature and damage risks. Economic growth, convex damages and temperature-dependent risks of climatic tipping points lead to higher growth rates of carbon prices, but gradual resolution of uncertainty lowers them. For temperature-dependent economic damage tipping points, carbon prices are higher, but when the tipping point occurs, the price jumps downward. With only a temperature cap the carbon price rises at the risk-adjusted interest rate. Adding damages leads to a higher carbon price that grows more slowly. But as temperature and cumulative emissions get closer to their caps, the carbon price is ramped up ever more. Policy makers should commit to a rising path of carbon prices. |
| Keywords: | CO2 prices, growth uncertainty, tipping points, damages, gradual resolution of damage uncertainty, temperature caps |
| JEL: | H23 Q51 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9092&r= |
| By: | Carleton, Tamma; Delgado, Michael; Greenstone, Michael; Houser, Trevor; Hsiang, Solomon M.; Hultgren, Andrew; Jina, Amir; Kopp, Robert; McCusker, Kelly; Nath, Ishan; Rising, James; Rode, Ashwin; Seo, Hee Kwon (Samuel); Viaene, Arvid; Yuan, Jiacan; Zhang, Alice |
| Abstract: | This paper develops the first globally comprehensive and empirically grounded estimates of mortality risk due to future temperature increases caused by climate change. Using 40 countries' subnational data, we estimate age-specific mortality-temperature relationships that enable both extrapolation to countries without data and projection into future years while accounting for adaptation. We uncover a U-shaped relationship where extreme cold and hot temperatures increase mortality rates, especially for the elderly, that is flattened by both higher incomes and adaptation to local climate (e.g., robust heating systems in cold climates and cooling systems in hot climates). Further, we develop a revealed preference approach to recover unobserved adaptation costs. We combine these components with 33 high-resolution climate simulations that together capture scientific uncertainty about the degree of future temperature change. Under a high emissions scenario, we estimate the mean increase in mortality risk is valued at roughly 3.2% of global GDP in 2100, with today's cold locations benefiting and damages being especially large in today's poor and/or hot locations. Finally, we estimate that the release of an additional ton of CO2 today will cause mean [interquartile range] damages of $36.6 [-$7.8, $73.0] under a high emissions scenario and $17.1 [-$24.7, $53.6] under a moderate scenario, using a 2% discount rate that is justified by US Treasury rates over the last two decades. Globally, these empirically grounded estimates substantially exceed the previous literature's estimates that lacked similar empirical grounding, suggesting that revision of the estimated economic damage from climate change is warranted. |
| JEL: | Q5 Q51 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15139&r= |
| By: | Ángel Estrada (Banco de España); Daniel Santabárbara (Banco de España) |
| Abstract: | The design of the key elements of a public budget-neutral environmental fiscal reform could have very different implications in terms of its environmental and macroeconomic impact. Our proposals rely on a carbon tax on fossil fuels covering all economic sectors. It would be a powerful and efficient instrument for reducing emissions, as it gives economic agents an incentive to find ways to save energy and switch to greener energy sources while generating significant tax revenues whose judicious use may have positive macroeconomic effects. In addition, a carbon tax is easy to administer since it can be integrated into existing fuel excise duties. We build a novel model to assess the environmental and economic impact of a set of environmental fiscal reforms in Spain which are defined by different levels of the carbon tax, the possibility of a border carbon adjustment and alternative uses of the tax revenues generated. In this framework, we incorporate technological innovation, which will allow firms to produce with non-polluting inputs and, specifically, the electricity sector, to increase the role of renewables in its generation mix. The results indicate that carbon tax designs with border carbon adjustment tend to be more effective in lowering emissions in Spain. They also suggest that an appropriately designed environmental fiscal reform may even boost economic activity in the medium term if the revenues are used to reduce other, more distorting taxes. |
| Keywords: | carbon tax, environmental policy, modelling, green tax reform |
| JEL: | C6 H2 Q5 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2119&r= |
| By: | Rob Dellink (OECD); Christine Arriola (OECD); Ruben Bibas (OECD); Elisa Lanzi (OECD); Frank van Tongeren (OECD) |
| Abstract: | This paper analyses the long-term effects of the COVID-19 pandemic and associated government responses on the environment. It uses large-scale modelling to investigate the impact of sectoral and regional shocks to the economy until 2040. These detailed economic impacts are linked to a range of environmental pressures, including greenhouse gas emissions, emissions of air pollutants, the use of raw materials and land use change. The short-term reductions in environmental pressures are significant: in 2020, energy-related greenhouse gas and air pollutant emissions dropped by around 7%. Environmental pressures related to agriculture observed a smaller drop in 2020. The reduction in the use of non-metallic minerals, including construction materials, reached double digits. From 2021, emissions are projected to increase again, gradually getting closer to the pre-COVID baseline projection levels as growth rates recover fully. But there is a long-term – potentially permanent – downward impact on the levels of environmental pressures of 1‑3%. |
| Keywords: | air pollution, climate change, COVID-19, general equilibrium, land use change, materials use |
| JEL: | D58 O44 Q53 Q54 |
| Date: | 2021–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:176-en&r= |
| By: | Brian R. Copeland; Joseph S. Shapiro; M. Scott Taylor |
| Abstract: | How should international economic policy address climate change? Does trade cause deforestation and endangered species depletion? How does globalization affect air and water pollution? Do trade and investment create a race to the bottom in environmental policy? How important are environmental impacts of transporting goods? We review theory and empirical work linking international trade and the environment with a focus on recent work and methods. We discuss the literature linking trade to local and global pollutants, the impact of emissions from transportation, the effect of trade on the sustainability of renewable resources, and the interaction between trade and climate policy. To shape our review, we present nine new stylized facts that, together with our review of past work, highlight questions for future research. |
| JEL: | F18 H23 Q27 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28797&r= |
| By: | Bento, Antonio M. (University of Southern California); Miller, Noah (University of Southern California); Mookerjee, Mehreen (Zayed University); Severnini, Edson R. (Carnegie Mellon University) |
| Abstract: | In the absence of first-best climate policy, we demonstrate that existing government institutions and policy established for reasons unrelated to climate change may induce climate adaptation. We examine the impact of temperature on ambient ozone concentration in the United States from 1980-2013, and the role of institution-induced adaptation. Ozone is formed under warm temperatures, and regulated by the Clean Air Act institution. Adaptation in counties out of attainment with air quality standards is 107 percent larger than under attainment, implying substantial institution-induced adaptation. Furthermore, local beliefs about climate change appear to reinforce adaptive behavior, suggesting a nontrivial role in second-best climate policy. |
| Keywords: | climate change, government institutions and policy, Clean Air Act, institution-induced adaptation, ambient ozone concentration, climate change beliefs |
| JEL: | Q53 Q54 Q58 H23 K32 P48 D02 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14355&r= |
| By: | Alan Finkelstein Shapiro; Gilbert E. Metcalf |
| Abstract: | We analyze the quantitative labor market and aggregate effects of a carbon tax in a framework with pollution externalities and equilibrium unemployment. Our model incorporates endogenous labor force participation and two margins of adjustment influenced by carbon taxes: (1) firm creation and (2) green production-technology adoption. A carbon-tax policy that reduces carbon emissions by 35 percent – roughly the emissions reductions that will be required under the Biden Administration's new commitment under the Paris Agreement – and transfers the tax revenue to households generates mild positive long-run effects on consumption and output; a marginal increase in the unemployment and labor force participation rates; and an expansion in the number and fraction of firms that use green technologies. In the short term, the adjustment to higher carbon taxes is accompanied by gradual gains in output and consumption and a negligible expansion in unemployment. Critically, abstracting from endogenous firm entry and green-technology adoption implies that the same policy has substantial adverse short- and long-term effects on labor income, consumption, and output. Our findings highlight the importance of these margins for a comprehensive assessment of the labor market and aggregate effects of carbon taxes. |
| JEL: | E20 E24 E62 H23 O33 Q52 Q54 Q55 Q58 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28795&r= |
| By: | Bardt, Hubertus; Kolev, Galina V. |
| Abstract: | The adoption of the Paris Agreement in December 2015 calls for concerted efforts by the international community to restrain the increase in global average temperature to well below 2êC. Trade policy has the potential to contribute substantially to curbing climate change. However, the global trade system is suffering the deepest crisis in the history of the World Trade Organization (WTO). To revive multilateralism, it is crucial to pursue a positive approach based on the commitment to a common target like climate protection and reinforced by the urgency of that target. A Trade Club for Climate (TCC) or a Sector/Industry Climate Club (SICC) are alternative ways to address both the climate crisis and the crisis of the global trading system at the same time. They should be exclusive, appealing and based on the experience of the GATT and WTO negotiations. Starting the negotiations with a smaller number of countries to achieve a large progress is more feasible than involving all current WTO member states right from the beginning. The TCC could draw on the potential of trade policy to contribute to climate protection and should be an attempt to liberalise trade with environmental and climate goods and services. A SICC could focus on the main producing countries of specific industries, which would make negotiations about minimum levels of carbon prices more feasible. The discussion on the trade-climate nexus shows that there are several measures that can be taken to make trade policy work for climate. Eliminating tariffs and reducing non-tariff barriers on goods for climate protection, product labelling, green procurement and carbon border adjustment are only a few of them. The change of political power in the USA, the recent trade policy review in the EU and the increasing commitment of many other countries worldwide show that there cannot be a better time to initiate a TCC or SICCs for specific industries and launch negotiations. |
| JEL: | F13 F18 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkpps:82021&r= |
| By: | Reghezza, Alessio; Altunbas, Yener; Marqués-Ibáñez, David; Rodriguez d’Acri, Costanza; Spaggiari, Martina |
| Abstract: | Do climate-oriented regulatory policies affect the flow of credit towards polluting corporations? We match loan-level data to firm-level greenhouse gas emissions to assess the impact of the Paris Agreement. We find that, following this agreement, European banks reallocated credit away from polluting firms. In the aftermath of President Trump’s 2017 announcement that the United States was withdrawing from the Paris Agreement, lending by European banks to polluting firms in the United States decreased even further in relative terms. It follows that green regulatory initiatives in banking can have a significant impact combating climate change. JEL Classification: E51, G28, H23 |
| Keywords: | climate change, difference-in-differences, loan-level data, Paris Agreement, Trump |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20212550&r= |
| By: | Saule Baurzhan (Department of Economics, Eastern Mediterranean University, Famagusta, 99450, TRNC via Mersin 10, Turkey); Glenn P. Jenkins (Department of Economics, Queen's University, Kingston, Ontario K7L 3N6, Canada); Godwin O. Olasehinde-Williams (School of Economics and Management, Nanchang University, Nanchang, 330031, China) |
| Abstract: | This paper assesses the economic benefits of 57 World Bank Group-sponsored hydropower dam plant investments. Hydropower dams are among the main sources for producing electricity and the largest renewable source for power generation throughout the world. Hydropower dams are often a lower-cost option for power generation in Clean Energy Transition for addressing global climate change. Despite its conspicuous aspects, constructing hydropower dams has been controversial. Considering the World Bank’s long history as the largest hydropower development financier, this study investigates its performance in supporting hydropower dams. The outcomes of this study apply to the wider hydropower development community. Of the projects in this study, 70% experienced a cost overrun, and more than 80% of projects experienced time overruns, incurring potential additional costs as a result. Despite the high cost and time overruns, this hydropower portfolio of dams produced a present value of net economic benefits by 2016 of over half a trillion USD. Based on our findings, the evaluated hydropower portfolio helped avoid over a billion tones of CO2 for an estimated global environmental benefit valued at nearly USD 350 billion. The projects’ additional environmental benefits raise the real rate of return from 15.4% to 17.3%. The implication for hydropower developers is that the projects’ assessment should consider cost and time overrun and factor them into the project-planning contingency scenarios. There is a considerable benefit for developing countries to exploit their hydropower resources if they can be developed according to industry practices and international standards. The case for developing hydropower may be stronger when considering its climate benefits. The net economic benefits of hydropower can be even higher if there is a greater effort to manage cost and time overruns. |
| Keywords: | investment appraisal; carbon emissions; cost overrun; hydropower; dams; World Bank |
| JEL: | D2 O10 |
| Date: | 2021–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:4572&r= |
| By: | De Haas, Ralph; Martin, Ralf; Muûls, Mirabelle; Schweiger, Helena |
| Abstract: | We use data on 11,233 firms across 22 emerging markets to analyze 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. |
| JEL: | D22 L23 G32 L20 Q52 Q53 |
| Date: | 2021–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofitp:2021_006&r= |
| By: | Marini, Marco; Tarola, Ornella; Thisse, Jacques-François |
| Abstract: | We study how the supply of environmentalism, which is defined by psychic benefits (costs) associated with the purchase of high-environmental (low-environmental) qualities, affects the way firms choose their products and the ensuing consequences for the global level of pollution. Contrary to general belief, a high supply of environmentalism does not give rise to a better environmental outcome because it endows firms with more market power which they use to maximize profits. By contrast, standard policy instruments such as a minimum quality standard or the use of greener technologies leads to a better ecological footprint. |
| Keywords: | Environmental policy; Environmentalism; Psychic Costs and Benefits; Vertical Product Differentiation |
| JEL: | D11 L13 Q50 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15355&r= |
| By: | C. J. O’Donnell (School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia) |
| Abstract: | Explaining changes in agricultural productivity involves explaining changes in output and input quantities. Several economic models can be used for this purpose. This paper considers a model that accounts for weather and output price uncertainty. Changes in productivity are then explained in two steps. First, the relationship between observed outputs, observed inputs and observed weather variables is written in the form of a stochastic production frontier model. Following estimation, the model is used to decompose a proper productivity index into measures of technical progress and environmental change, measures of technical efficiency and scale-and-mix efficiency change, and a measure of change in statistical noise. Second, the relationship between observed input prices and quantities, expected output prices and expected weather variables is written in the form of a system of input demand equations. Following estimation, the system is used to further decompose the measure of scale-and-mix efficiency change into measures of technical progress, input price change, changes in expectations, and changes in allocative efficiency and statistical noise. The methodology is applied to U.S. agricultural data. The effects of weather and climate change on agricultural productivity are found to be small relative to the effects of changes in input prices. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqcepa:157&r= |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | The purpose of this study is to assess the nexus between governance and renewable energy consumption in sub-Saharan Africa. The focus is on 44 countries in Sub-Saharan Africa with data from 1996 to 2016. The empirical evidence is based on Tobit regressions. It is apparent from the findings that political and institutional governance are negatively related to the consumption of renewable energy in the sampled countries. The unexpected findings are clarified and policy implications are discussed in the light of sustainable development goals. This study extends the extant literature by assessing how political governance (consisting of political stability and “voice & accountability†) and institutional governance (entailing the rule of law and corruption-control) affect the consumption of renewable energy in sub-Saharan Africa. |
| Keywords: | Renewable energy; Governance; Sub-Saharan Africa; Sustainable development |
| JEL: | H10 Q20 Q30 O11 O55 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:21/030&r= |
| By: | Hervé Guyomard (Services déconcentrés d'appui à la recherche Bretagne-Normandie - INRA - Institut National de la Recherche Agronomique); Jean-Christophe Bureau (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Vincent Chatellier (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Cécile Detang-Dessendre (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement); Pierre Dupraz (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Florence Jacquet (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes); Xavier Reboud (Agroécologie [Dijon] - UB - Université de Bourgogne - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - UBFC - Université Bourgogne Franche-Comté [COMUE] - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Vincent Requillart (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Louis Georges Soler (ALISS - Alimentation et sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Margot Tysebaert (AgroParisTech) |
| Abstract: | The June 2018 CAP proposals are only marginally consistent with the ambitions of the Green Deal. This is also the case of the regulation revisions being adopted by either the Council or the European Parliament in October 2020. Making EU agriculture consistent with the Green Deal but would require a whole food chain policy that encompasses more stringent instruments on the supply side and extensive changes in eating patterns. |
| Abstract: | Les propositions de réforme de la PAC de juin 2018 ne sont que marginalement cohérentes avec les ambitions du Green Deal. C'est également le cas des révisions du règlement qui seront adoptées soit par le Conseil, soit par le Parlement européen en octobre 2020. Rendre l'agriculture de l'UE cohérente avec le Pacte vert nécessiterait une politique de l'ensemble de la chaîne alimentaire qui englobe des instruments plus stricts du côté de l'offre et des changements importants dans les habitudes alimentaires. |
| Keywords: | Public policies,CAP,Green Deal,European agriculture,Farms,Environment,Agricultural production,Food chain,Politiques publiques,PAC,Agriculture européenne,Exploitations agricoles,Environnement,Production agricole,Chaîne alimentaire |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03209246&r= |
| By: | Filippo Beltrami (Department of Economics (University of Verona)); Fulvio Fontini (University of Padua); Monica Giulietti (Loughborough University); Luigi Grossi (Department of Economics (University of Verona)) |
| Abstract: | This paper estimates the seasonal and zonal CO2 marginal emissions factors (MEFs) from electricity production in the Italian electricity system. The inclusion of the zonal configuration of the Italian wholesale power market leads to a complete measurement of marginal emission factors which takes into account the heterogeneous distribution of RES power plants, their penetration rate and their variability within the zonal power generation mix. This article relies on the fractional cointegration methodology to incorporate the typical features of long memory processes into the estimation of MEFs. We find high variability in annual MEFs estimated at the zonal level. Sardinia reports the highest MEF (0.7189 tCO2/MWh), followed by the Center South (0.7022 tCO2/MWh), the Center North (0.4236 tCO2/MWh), the North (0.2018 tCO2/MWh) and Sicily (0.146 tCO2/MWh). The seasonal analysis also shows a large variability of MEFs in each zone across time. The heterogeneity of results leads us to recommend that policymakers consider the zonal configuration of the power market and the large seasonal variability related to carbon emissions and electricity generation when designing incentives for Renewable Energy Sources (RES) expansion and for achieving emission reduction targets. |
| Keywords: | Decarbonization, Electricity Price, Fractional Cointegration, Marginal Emission Factor (MEF), Renewable Energy Sources (RES) |
| JEL: | P18 Q41 Q42 Q51 C22 C32 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:ver:wpaper:01/2021&r= |
| By: | OECD |
| Abstract: | This report provides in-depth analysis of the drivers, impacts and best practices to address ghost fishing gear. It places the issues of abandoned, lost, or otherwise discarded fishing gear within the larger context of marine plastic pollution. Ghost gear is particularly harmful because it negatively affects fisheries, non-target species (e.g. entanglement of wildlife), habitats, navigational safety, and coastal tourism. As a significant source of marine pollution, ghost fishing gear contributes to environmental and health risks of plastic pollution. The report identifies good practices and policies to prevent gear loss, reduce its impacts, and to recover lost gear. It reviews current policy efforts at the international level and in G7 countries and recommends a comprehensive policy response through international co-operation and circular economy approaches. |
| Date: | 2021–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaac:25-en&r= |
| By: | Pietro Tiberi (Bank of Italy) |
| Abstract: | Reducing the environmental impact of human activities has become a strategic objective of governments, institutions, companies and individuals. In this paper, we estimate the CO2 equivalent emissions of the TARGET Instant Payment Settlement (TIPS) system and compare it with that of Bitcoin and other infrastructures. The TIPS carbon footprint in 2019 was almost 40,000 times smaller than that of Bitcoin; the difference is only partially accounted for by the lower overall volume of TIPS transactions, as the marginal increase in emissions per additional transaction is very small: the difference would therefore persist even if TIPS worked at full steam. The huge discrepancy in the carbon footprints of TIPS and Bitcoin stems from the fact that the latter uses a large amount of energy to generate trust and consensus among Bitcoin network participants, whereas in the case of TIPS this trust is provided by the Eurosystem. The comparison is then extended, using publicly available data, to other infrastructures. The over-performance of TIPS, while less marked than in the case of Bitcoin, remains nevertheless considerable. |
| Keywords: | TIPS, Carbon footprint, Bitcoin |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wpmisp:mip_005_21&r= |
| By: | Gilles Dufrénot (Aix-Marseille Univ, CNRS, AMSE, Marseille, France.); William Ginn (Adidas, Economist, Germany); Marc Pourroy (University of Poitiers, France.) |
| Abstract: | We investigate the effect of changing ENSO patterns on global commodity prices, including energy, metals/minerals and agriculture real commodity price subsets, while controlling for global economic output and interest rate via a global factor local projections (GFALP) model. We study the responses to climate shocks using a nonlinear multivariate model to assess differential effects across ENSO climate regimes. We find that commodity inflation is reactive to El Niño and La Niña events, but that this sensitivity can occur either in the short-or long-term depending on the commodity under investigation. For commodities in agriculture, we uncover an asymmetric influence of El Niño and La Niña shocks. More central banks are questioning whether climate change is part of their mission to stabilize prices. Our results indicate the existence of a direct link between weather anomalies and commodity inflation, one that should be integrated into the central banks' inflation targeting framework. |
| Keywords: | ENSO, weather, commodity price, agriculture, energy |
| JEL: | C32 F44 O13 Q54 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:2130&r= |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Some claim that as knowledge about climate change accumulates, the social cost of carbon increases. A meta-analysis of published estimates shows that this is not the case. Correcting for inflation and emission year and controlling for the discount rate, kernel density decomposition reveals a stationary distribution. Actual carbon prices are almost everywhere below the estimated social cost of carbon. |
| JEL: | Q54 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:0821&r= |
| By: | Tavella, Sergio; Noussan, Michel |
| Abstract: | Buildings’ heating represents an important share of the total energy consumption in Italy, and to reach the challenging decarbonization targets set by the EU by 2050, a combination of measures and technologies will be required. This working paper presents an analysis of different scenarios comparing the penetration of buildings’ heating technologies for the residential sector in Italy. The objective of the research is to evaluate the potential contribution of different technologies, with a particular focus of the role that hydrogen may have to play, compared to other solutions, including heat pumps and renewable natural gas. The analysis compares the potential role of these technologies in reaching a decarbonized residential heating by 2050, by also discussing the main barriers and opportunities that lie ahead. The scenarios are defined starting from historical data of heating systems stock and sales, integrated with the know-how of experts of the sector to compare different pathways based on electrification or renewable gases. The results show that a combination of technologies will be in any case required in the heating sector, but also that other external factors will be of paramount importance, including the electricity decarbonization and energy efficiency measures on the building stock. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies |
| Date: | 2021–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:310986&r= |
| By: | Ojo/Roedl, Marianne |
| Abstract: | In enhancing the role of innovative techniques which involve the use of distributed ledger technology platforms, consequences or implications of such techniques could initially focus on more obvious risks – such as those risks associated with financial stability, inadequate governance and control mechanisms in place, or cybercrime. However, consideration of climate risk related factors have increasingly made the aim of focus towards a sustainable future, a more popular and increasingly justified topic. In a recent report by the European Environmental Agency, it was highlighted that “ in comparison with alternative payment methods, Bitcoin was claimed to be 20,000 times more energy intensive than Visa – with an energy consumption for each Bitcoin transaction increasing to 635 kWh – an equivalent of electricity that could power approximately 21 US households for 1 day, based on 2019 estimates according to some analysts.” However there are also potential benefits to be derived from blockchain technology - one of which includes environmental protection, as further highlighted in the report. Notwithstanding, efforts and endeavors will still be required to address climate related impacts of engaging the use of such technologies. This paper will focus on other risks – as well as benefits to be derived through the use of innovative techniques such as smart contracts and decentralized finance in a rapidly evolving financial landscape. It will also highlight why central bankers and financial regulation have to adapt and evolve rapidly in engaging the use of supervisory techniques which will not only enhance the efficiency of the use of such innovative techniques but also facilitate an adequate and well balanced approached to regulation – one which whilst not overly regulating technology, seeks to ensure that the abuse or misuse of such technologies are appropriately regulated. |
| Keywords: | distributed ledger technologies; block chains; smart contracts, decentralized finance; central banks; embedded regulation; legal; technical codes |
| JEL: | F3 F6 G1 G2 G3 K2 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107717&r= |
| By: | Nathan DeMaagd (University of Hawai‘i at Manoa Department of Economics); Michael J. Roberts (University of Hawai‘i at Manoa Department of Economics, University of Hawai‘i Economic Research Organization, University of Hawai‘i Sea Grant College Program) |
| Abstract: | The effect that climate change will have on water resource sustainability is gaining international interest, particularly in regions where stocks are strained due to changing climate and increasing populations. Past studies focus mainly on how water availability will be affected by climate change, with little attention paid to how consumer behavior is likely to react. How a changing climate affects water demand could be equally or more important to management solutions as its influence on water supply. In this paper, we analyze the relationship between residential water use and climate on the Hawaiian island of O‘ahu, and apply downscaled climate projections to estimate end-of-century water use. |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2020-2&r= |
| By: | Robert Amano; Marc-André Gosselin; Julien McDonald-Guimond |
| Abstract: | Recent discussions on climate change have led to an interest in its potential impact on economic phenomena and public policy. In this paper, we focus on one aspect of the climate change question by documenting the time-series properties of temperatures across Canada. In particular, we examine the evolving dynamics of daily average temperature and diurnal temperature range (the difference between the daily maximum and minimum temperatures at a given location) for select Canadian cities using data from the past 60 years. While rising mean temperature levels in Canada and elsewhere has been well documented, research exploring the other elements of temperature dynamics using modern econometric methods and rich model specifications are sparse. To fill in this gap, we extend the work of Diebold and Rudebusch (2019) and examine the evolution of daily temperature averages, volatility, seasonality and duration. This new evidence provides economists exploring issues related to climate change with a better understanding of the nature of Canadian temperature dynamics and their magnitudes. |
| Keywords: | Climate change; Econometric and statistical methods |
| JEL: | C22 Q54 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:21-22&r= |
| By: | Gilles Dufrénot (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); William Ginn (Adidas AG); Marc Pourroy (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers) |
| Abstract: | We investigate the effect of changing ENSO patterns on global commodity prices, including energy, metals/minerals and agriculture real commodity price subsets, while controlling for global economic output and interest rate via a global factor local projections (GFALP) model. We study the responses to climate shocks using a nonlinear multivariate model to assess differential effects across ENSO climate regimes. We find that commodity inflation is reactive to El Niño and La Niña events, but that this sensitivity can occur either in the short-or long-term depending on the commodity under investigation. For commodities in agriculture, we uncover an asymmetric influence of El Niño and La Niña shocks. More central banks are questioning whether climate change is part of their mission to stabilize prices. Our results indicate the existence of a direct link between weather anomalies and commodity inflation, one that should be integrated into the central banks' inflation targeting framework. |
| Keywords: | Agriculture,Commodity Price,Weather,ENSO,Energy |
| Date: | 2021–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03225070&r= |
| By: | Cavalcanti, Tiago; Hasna, Zeina; Santos, Cezar |
| Abstract: | We evaluate the aggregate and distributional effects of climate change mitigation policies using a multi-sector equilibrium model with intersectoral input-output linkages and worker heterogeneity calibrated to different countries. The introduction of carbon taxes leads to changes in relative prices and inputs reallocation, including labor. For the United States, reaching its Paris Agreement pledge would imply at most a 0.6% drop in output. This impact is distributed asymmetrically across sectors and individuals. Workers with a comparative advantage in dirty energy sectors who do not reallocate bear relatively more of the cost but constitute a small fraction of the labor force. |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15419&r= |
| By: | Chris Belmert Milindi; Roula Inglesi-Lotz |
| Abstract: | This study examines the complex relationship between carbon emissions and technological progress in a sample of 60 countries, divided into four categories based on their per capita income between the periods of 1989-2018. For robustness purposes and due to the broad definition of technology, we use six different proxies to represent technology; namely: Information and telecommunication technology (ICT); patents; public R&D expenditure; total factor of productivity (TFP); and a number of science and technology publications. After applying the fixed-effect method with Driscoll and Kraay standard errors, for the full sample, the results show that the ICT variables are a good instrument for carbon abatement, while R&D expenditure and patents do not have a clear impact on carbon emissions, TFP increases carbon emissions, and science and technology publications are negatively related to carbon emissions. The impact of the indicators on the various income levels groups of countries vary which has significant policy implications. |
| Keywords: | Technological progress, Income groups, Rebound Effect, fixed effect methodology with Driscoll, and Kraay standards errors |
| JEL: | O30 O32 C23 Q56 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:855&r= |
| By: | Ritz, R. |
| Abstract: | This paper studies a social planner who chooses countries' carbon prices so as to maximize global welfare. Product markets are characterized by firm heterogeneity, market power, and international trade. Because of the market-power distortion, the planner's optimal policy is second-best. The main insight is that optimal carbon prices may be highly asymmetric: zero in some countries and above the social cost of carbon in countries with relatively dirty production. This result obtains even though a uniform global carbon price is always successful at reducing countries' emissions. Competition policy that mitigates market power may enable stronger and more balanced climate action. |
| Keywords: | Carbon leakage, carbon pricing, imperfect competition, international trade, second best |
| JEL: | H23 L11 Q54 |
| Date: | 2021–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2145&r= |
| By: | Dawud Ansari; Regine Schönenberg; Melissa Abud; Laura Becerra; Anne Cristina de la Vega-Leinert; Nigel Dudley; Michael Dunlop; Carolina Figueroa; Oscar Guevara; Philipp Hauser; Hannes Hobbie; Mostafa A.R. Hossain; Jean Hugé; Luc Janssens de Bisthoven; Hilde Keunen; Claudia Munera-Roldan; Jan Petzold; Anne-Julie Rochette; Matthew Schmidt; Charlotte Schumann; Sayanti Sengupta; Susanne Stoll-Kleemann; Lorrae van Kerkhoff; Maarten P.M. Vanhove; Carina Wyborn |
| Abstract: | Climate change and biodiversity loss trigger policies worldwide, many of which target or impact local communities. Although research, international development, and policy implementation (and, thus, success in fighting both threats) require thoughtful consideration and communication of the underlying concepts, field work encounters a cascade of tangible barriers. Technoscientific representations of quantifiable causes and effects often remain alien to local perspectives, and failure to involve communities constantly and genuinely creates gaps that may ultimately prevent research and policy success. Therefore, in this article, we present the results of a collective self-assessment exercise for a panel of eight case studies (covering four continents) of communications between project teams and local communities within the context of climate change or biodiversity loss. Our analysis develops eight indicators of good stakeholder communication, which we construct from the literature, in addition to Verran (2002) 's concept of postcolonial moments as a communicative utopia. Our study contributes to the (analytical) understanding of such communications, while also providing tangible insights for field work and policy recommendations. We demonstrate that applying our indicators can foster a more successful communication, although we find an apparent divergence between timing, complexity, and (introspective) effort of the project teams. While three case studies qualify for postcolonial moments, our findings show that especially the scrutiny of power relations and genuine knowledge co-production are still rare. We verify the potency of various instruments for deconstructing science; however, we also show that their sophistication cannot substitute other crucial factors. Instead, simple deconstruction efforts may suffice, while trust-building, proper time management, and an advanced awareness of the scientists are crucial. Lastly, we consider that reforming rigid and inadequate funding policies will help overcome significant barriers and improve the work in and with local communities. |
| Keywords: | transdisciplinary communication, climate change, biodiversity loss, co-production, postcolonial moments, local communities |
| JEL: | Q54 Q56 Q57 F54 R11 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1945&r= |
| By: | La Nauze, Andrea (University of Queensland); Severnini, Edson R. (Carnegie Mellon University) |
| Abstract: | We exploit novel data from brain-training games to examine the impacts of air pollution on a comprehensive set of cognitive skills of adults. We find that exposure to particulate matter (PM2.5) impairs adult cognitive function, and that these effects are largest for those in prime working age. These results confirm a hypothesized mechanism for the impacts of air pollution on productivity. We also find that the cognitive effects are largest for new tasks and for those with low ability, suggesting that air pollution increases inequality in workforce productivity. |
| Keywords: | air pollution, particulate matter, cognition, cognitive skills |
| JEL: | Q53 J24 I14 I24 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14353&r= |
| By: | Chadi Jabbour (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UMR TETIS - Territoires, Environnement, Télédétection et Information Spatiale - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - AgroParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Helene Rey-Valette (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Pierre Maurel (UMR TETIS - Territoires, Environnement, Télédétection et Information Spatiale - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - AgroParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, AgroParisTech, Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement, CNRS - Centre National de la Recherche Scientifique, UM - Université de Montpellier); Jean Michel Salles (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Réalisé dans le cadre d'un contrat du programme TOSCA financé par le CNES, ce guide vise à familiariser les opérateurs et usagers divers liés au monde de l'information satellitaire aux dimensions socio-économiques requises pour caractériser et mesurer les effets résultant des IDS. Il s'agit d'offrir un niveau minium de compréhension de ces processus de façon, selon les types de lecteurs, à: Prendre conscience de la diversité des effets et des composantes de la valeur des IDS ; Orienter les choix méthodologiques pour des études futures en fonction des questions posées, en particulier s'agissant de la rédaction de futurs cahiers des charges d'études dans ce domaine ; Comprendre et éventuellement vérifier la pertinence méthodologique de travaux d'évaluation réalisés dans ce domaine ; Aider des équipes désireuses de réaliser des enquêtes pour évaluer divers dispositifs relevant des IDS. |
| Date: | 2020–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03225085&r= |
| By: | Eoin F. McGuirk; Nathan Nunn |
| Abstract: | We consider the effects of climate change on seasonally migrant populations that herd livestock – i.e., transhumant pastoralists – in Africa. Traditionally, transhumant pastoralists beneï¬ t from a cooperative relationship with sedentary agriculturalists whereby arable land is used for crop farming in the wet season and animal grazing in the dry season. Droughts can disrupt this arrangement by inducing pastoral groups to migrate to agricultural lands before the harvest, causing conflict to emerge. We examine this hypothesis by combining ethnographic information on the traditional locations of transhumant pastoralists and sedentary agriculturalists with high-resolution data on the location and timing of rainfall and violent conflict events in Africa from 1989–2018. We show that droughts in the territory of transhumant pastoralists lead to conflict in neighboring areas. Consistent with the hypothesis, these conflict events are concentrated in agricultural areas; they occur during the wet season and not the dry season; and they are due to rainfall’s impact on plant biomass growth. This mechanism explains a sizable proportion of conflict events in Africa, particularly civil conflicts and religious-extremist attacks. We ï¬ nd that the effects are muted in the presence of irrigation aid projects, but not in the presence of other forms of foreign aid. The effects approach zero as pastoral groups share more political power. |
| Keywords: | Transhumant pastoralism, sedentary agriculture, seasonal migration, conflict, weather |
| JEL: | N10 Q54 Z1 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:860&r= |
| By: | Berg-Andersson, Birgitta; Kaitila, Ville; Kulvik, Martti; Lintunen, Jussi |
| Abstract: | Abstract The importance of our forests is growing. Forest industry has retained its vital position within Finnish economy, and it seems reasonable to assume our forests’ value added will contribute to Finland’s wealth also far into the future. Of more recent interest is the value of forests being Finland’s major carbon sink. This report discusses the past, present and future of the Finnish forest sector acknowledging both economic and environmental aspects. In the first part, we describe the impacts of the forest industry sectors to Finnish economy in large. National accounts input-output statistics show that the forest industries use significant shares of domestic intermediate products, and hence they connect extensively to other industry sectors. The second section looks at recent development as well as prospects up to year 2025. We expect wood industry to recover rather quickly from the backlash triggered by the COVID-19 pandemic, but paper and pulp industry to experience a less favourable development – particularly due to the fast decrease in demands of paper. The third and final contribution assesses quantitatively how logging relates to the carbon sink of Finnish forests. Our novel model suggests total roundwood removals to have a rather strong impact on forest land carbon sink. We estimate Finland’s carbon sink to increase due to COVID-19 perturbed drop in logging, and the sink increase to remain relatively strong during the next few years. |
| Keywords: | Finnish forest sector, Near future, Economic forecast |
| JEL: | L69 L73 Q23 Q54 D57 |
| Date: | 2021–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:112&r= |
| By: | Katharina Lima de Miranda; Dennis J. Snower |
| Abstract: | This paper provides a new picture of how countries have responded to the COVID-19 pandemic by examining the effects of the pandemic in terms of normative foundations for societal wellbeing. Social prosperity depends primarily on the functioning of four domains: the economy, the state, civil society and the environment. We use the Recoupling Dashboard—composed of four main indexes: Solidarity (S), Agency (A), GDP (material Gain, G) and Environmental sustainability (E) —to uncover the divergent experiences of countries in 2020. This paper focuses on the G7 countries—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States—as the first step towards a wider appraisal. In all countries under review we see a sharp drop in GDP due to the pandemic and a corresponding drop in CO2 emissions. The uniformity of response in the economic and environmental domains stands in sharp contrast to the diversity of social responses to the challenge of cooperation that the coronavirus posed. The only clear pattern that emerges from cross-country comparisons is that Inward Solidarity, important for social cohesion in close social networks, and Outward Solidarity, important for the will to cooperate with other nations and cultures, have drifted apart in all G7 countries except Japan. Otherwise the movements in solidarity are highly idiosyncratic. In addition, the responses of Agency to the pandemic are diverse and are not noticeably correlated with the changes in Solidarity. The discrepancies in the social responses to the pandemic may be expected to have potentially important implications for how these countries fare during the pandemic and how well they come out of this crisis. |
| Keywords: | Covid-19, wellbeing, social sustainability, social solidarity, empowerment, beyond GDP |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9076&r= |
| By: | Silas Ongudi; Djiby Racine Thiam |
| Abstract: | Exposure to weather shocks around the time of birth has been shown to have deleterious effects on later life outcomes. In the short run, such shocks can lead to income loss, especially when households are not insured but rely heavily on rainfed agricultural activities. In the long run, however, they can cause a reduction in adult earnings, human capital development and health outcomes. Despite these findings, there are few studies examining the extent to which receiving a cash transfer can help buffer the effects of weather shocks experienced early in life, especially in Sub-Saharan Africa. We close this gap in research and use a randomized control trial dataset from Hunger Safety Net Programme (HSNP) in Northern Kenya and apply regression models to estimate the effect sizes. We find that weather shocks experienced early in life reduce a child’s height for age (HA) and weight for age (WA) Z- scores by 0.78 and 0.09 standard deviation respectively, controlling for other covariates. Moreover, we show that receiving a cash transfer buffers the negative effects of weather shocks. Specifically, receiving a cash transfer reduces exposure to weather shock by about 0.29 standard deviations under HA Z-scores when drought is measured in cumulative terms. However, we do not observe any buffering effect of receiving cash transfer on child health indicators when drought is measured during in-utero period. The paper also tested fragile male hypothesis where adverse weather shocks are expected to affect male children more than they would to females. Our results suggest that adverse weather events are worse for male children, exacerbating the male-female differences in presence of weather shocks. |
| Keywords: | Weather shocks, Hunger Safety Net Program, Regression Model, Z- scores, Fragile male hypothesis |
| JEL: | I15 Q54 Q56 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:831&r= |
| By: | Grégory Claeys; Zsolt Darvas; Maria Demertzis; Guntram B. Wolff |
| Abstract: | This Policy Contribution was prepared for and presented at the informal Economic and Financial Affairs Council (ECOFIN) meeting in Lisbon on 21-22 May 2021. You can read the version presented at ECOFIN here. The authors are grateful to Monika Grzegorczyk, Lionel Guetta-Jeanrenaud, Mia Hoffmann, Klaas Lenaerts, Ben McWilliams, Tom Schraepen and Pauline Weil for excellent research assistance and to Mario Mariniello, Simone Tagliapietra, André Sapir and Nicolas Véron for their... |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polcon:42740&r= |
| By: | Cindy Hu; Beverly Ge; Bridger J. Ruyle; Jennifer Sun; Elsie M. Sunderland |
| Abstract: | Monitoring PFAS contamination can be costly and time consuming. We developed and evaluated a machine learning model to identify private wells susceptible to PFAS contamination. |
| Keywords: | Environment, Drinking Water, PFAS, Machine Learning, Predictive Analytics |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:e2d683c9c1a441c09c471555298dff29&r= |
| By: | Crampes, Claude; Lefouili, Yassine |
| Abstract: | This paper investigates the trade-offs associated with the digitalization of the energy sector. Arguing that digitalization has both bright and dark sides, we study the extent to which it can help make energy systems efficient and sustainable. We first discuss how digitalization affects the responsiveness of demand, and explore its implications for spot pricing, load shedding, and priority service. In particular, we highlight the conditions under which digital technologies that allow demand to be more responsive to supply are likely to be used. We then turn to the way digitalization can contribute to the decarbonization of the energy sector, and discuss the promises and limitations of artificial intelligence in this area. Finally, we contend that policymakers should pay special attention to the privacy concerns raised by the digitalization of the energy sector and the cyberattacks that it enables. |
| Keywords: | Electricity; dynamic pricing; digitalisation; artificial Intelligence |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:125578&r= |
| By: | Kang, J.; Reiner, D. |
| Abstract: | We explore the links between weather variables and residential electricity consumption using high-resolution smart metering data. While weather factors have been used for grid-level electricity demand estimations, the impact of different weather conditions on individual households has not been fully addressed. The deployment of smart meters enables us to analyse weather effects in different periods of the day using hourly panel datasets, which would previously have been impossible. To conduct the analysis, fixed-effects models are employed on half-hourly electricity consumption data from 3827 Irish household meters. We demonstrate that temperature has robust and relatively flat effects on electricity demand across all periods, whereas rain and sunshine duration show greater potential to affect individual behaviour and daily routines. The models show that the most sensitive periods differ for each weather variable. We also test the responses to weather factors for weekends and workdays. Weather sensitivities vary with the day of the week, which might be caused by different household patterns over the course of the week. The methodology employed in this study could be instructive for improving understanding behavioural response in household energy consumption. By using only weather indicators, this approach can be quicker and simpler than traditional methods —such as surveys or questionnaires — in identifying the periods when households are more responsive. |
| Keywords: | Weather effects, residential electricity consumption, fixed-effects models, smart metering data |
| JEL: | C55 D12 R22 Q41 |
| Date: | 2021–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2141&r= |
| By: | Ilan Noy; Toshihiro Okubo; Eric Strobl; Thomas Tveit |
| Abstract: | We investigate the fiscal impacts of earthquakes in Japan. In contrast with earlier papers from elsewhere which examine national level aggregate spending, we are able to provide a detailed examination of separate budget categories within the local governments’ fiscal accounts. We do this using detailed line-budget expenditure data, and by comparing regions and towns affected and unaffected by the damage from earthquakes. Besides the obvious - that government spending increases in the short-term (one year) after a disaster event - the results we present suggest that the share of public spending on disaster relief, at the prefecture level, increases significantly, but with no corresponding change in the other budget lines. In contrast, at the lower administrative units we observe a decrease in the share of spending going to finance other priorities. For the bigger cities, we observe a decrease in the share of spending targeting education, while for the smaller towns, we find that spending on construction and servicing public debt goes down. This evidence suggests that while at the prefecture level fiscal policy-making is robust enough to prevent presumably unwanted declines in public services, the same cannot be said for the city/town level. |
| Keywords: | fiscal costs, earthquakes, Japan |
| JEL: | H84 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9070&r= |
| By: | Schaefer, Thilo |
| Abstract: | [Vorbemerkung] Mit ihrem Klimaschutzgesetz hat sich die nordrhein-westfälische Landesregierung 2013 bereits frühzeitig zu eigenen Klimaschutzmaßnahmen verpflichtet und den darin verankerten Zielen durch den Gesetzescharakter eine hohe Verbindlichkeit gegeben. Der Zielrahmen, der durch nationale und internationale Vereinbarungen und Gesetzgebung vorgegeben wird, hat sich seit 2013 deutlich verändert, so dass eine entsprechende Anpassung des NRW-Klimaschutzgesetzes notwendig wird. Angesichts der jüngsten Rechtsprechung des Bundesverfassungsgerichts tut der nordrhein-westfälische Gesetzgeber zudem gut daran, den Zeithorizont 2050 und das Ziel der Klimaneutralität in den Blick zu nehmen. Dennoch stellt sich aus Anlass der Neufassung des Gesetzes die Frage, inwieweit eine regionale Klimagesetzgebung im Hinblick auf die globale Herausforderung der Minderung von Treibhausgasemissionen überhaupt sinnvoll und wenn ja in welchen Bereichen zweckmäßig sein kann. Schließlich weist der Gesetzgeber in der Begründung selbst darauf hin, dass die "maßgeblichen Gesetzgebungskompetenzen zugunsten des Klimaschutzes […] auf europäischer und Bundesebene [liegen]." Zurecht sieht die Landesregierung ihre Aufgabe deshalb darin, mit ihrer Gesetzgebung in diesem Bereich übergeordnete Regelungen zu flankieren und vor Ort die Rahmenbedingungen so zu setzen, dass Unternehmen und Haushalte in NRW ihre Treibhausgasemissionen reduzieren können. Dass Klimaschutz im Gesetz als Innovationstreiber bezeichnet wird, steht nicht nur im Einklang mit der Ausrichtung des europäischen Green Deals, der als grüne Wachstumsstrategie angelegt ist, sondern impliziert auch notwendige Freiheitsgrade, die ein Klimaschutzgesetz für die Entwicklung innovativer Verfahren und den konstruktiven Wettbewerb um kosteneffiziente Technologien und Produkte, mit deren Hilfe Treibhausgasemissionen vermieden werden können, einräumen muss. Dazu kann die Landesverwaltung nicht nur durch ihre eigene Klimaschutzstrategie vorbildlich beitragen, sondern darüber hinaus im Rahmen einer an Klimaschutzkriterien ausgerichteten öffentlichen Beschaffung die Nachfrage nach klimafreundlichen Produkten stärken. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkrep:162021&r= |
| By: | Guillouet, Louise; Martimort, David |
| Abstract: | The Precautionary Principle is a controversial policy instrument, often criticized for stifling innovation and growth. In this paper, we introduce a model of risky technology reflecting real-life situations where policymakers have called for and sometimes implemented the Precautionary Principle. We define this Principle as an institutional cap on actions that cannot be adjusted for a fixed period of time and ask whether it is valuable, and under which circumstances, to impose such cap. If he starts using the technology, a decision-maker faces the possibility of an irreversible catastrophe, an event that follows a non-homogeneous Poisson process with a rate that depends on the stock of past actions. Passed a tipping point, the rate increases. We describe optimal trajectories under different degrees of knowledge on the tipping point. When the mere fact of having passed the tipping point is immediately known, the optimal action plan is time-consistent, and the Precautionary Principle is irrelevant. When having passed the tipping point remains unknown, a scenario of deep uncertainty, a time-inconsistency problem arises. We characterize both the commitment solution and a Stock-Markov Equilibrium such that the decision-maker uses at any point in time a feedback rule that depends only on the existing stock of past actions. Imposing a Precautionary Principle at the beginning of the period can improve commitment. We prove that such a restriction is optimal when passing the tipping point is unlikely to happen early on, a scenario that would lead decision-makers to increase action levels too quickly. |
| Keywords: | Environmental risk; Functional and Differential Equations; Precautionary Principle; Regulation; Time Inconsistency; Tipping point; uncertainty |
| JEL: | D83 Q55 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15266&r= |
| By: | Jules Chandellier (DGD.REVE - Direction générale déléguée à la Recherche, à l’Expertise, à la Valorisation et à l’Enseignement-Formation - MNHN - Muséum national d'Histoire naturelle); Marine Malacain (DGD.REVE - Direction générale déléguée à la Recherche, à l’Expertise, à la Valorisation et à l’Enseignement-Formation - MNHN - Muséum national d'Histoire naturelle) |
| Abstract: | This report was written by Jules Chandellier and Marine Malacain under the supervision of Nirmala Séon-Massin, Magali Gorce and Vincent Hulin (until August 2020). The report has been reviewed by a Scientific Advisory Board. This project was made possible thanks to the support of the SCOR Corporate Foundation for Science. |
| Keywords: | Biodiversity |
| Date: | 2021–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03213905&r= |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Many empirical studies have shown that government quality is a key determinant of vulnerability to natural disasters. Protection against natural disasters can be a public good—flood protection, for example—or a natural monopoly—early warning systems, for instance. Recovery from natural disasters is easier when the financial system is well-developed, particularly insurance services. This requires a strong legal and regulatory environment. This paper reviews the empirical literature to find that government quality and democracy reduce vulnerability to natural disasters while corruption of public officials increases vulnerability. The paper complements the literature by including tax revenue as an explanatory variable for vulnerability to natural disasters, and by modelling both the probability of natural disaster and the damage done. Countries with a larger public sector are better at preventing extreme events from doing harm. Countries that take more of their revenue in income taxes are better at reducing harm from natural disasters. |
| JEL: | Q54 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:0721&r= |
| By: | Marion Davin (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Mouez Fodha (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thomas Seegmuller (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We study whether fiscal policies, especially public debt, can help to curb the macroeconomic and health consequences of epidemics. Our approach is based on three main features: we introduce the dynamics of epidemics in an overlapping generations model to take into account that old people are more vulnerable; people are more easily infected when pollution is high; public spending and public debt can be used to tackle the effects of epidemics. We show that fiscal policies can promote the convergence to a stable steady state with no epidemics. When public policies are not able to permanently eradicate the epidemic, public debt and income transfers could reduce the number of infected people and increase capital and GDP per capita. As a prerequisite, pollution intensity should not be too high. Finally, we define a household subsidy policy which eliminates income and welfare inequalities between healthy and infected individuals. |
| Keywords: | public debt,epidemics,pollution,overlapping generations |
| Date: | 2021–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03222251&r= |
| By: | Marion Davin (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Mouez Fodha (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thomas Seegmuller (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We study whether fiscal policies, especially public debt, can help to curb the macroeconomic and health consequences of epidemics. Our approach is based on three main features: we introduce the dynamics of epidemics in an overlapping generations model to take into account that old people are more vulnerable; people are more easily infected when pollution is high; public spending and public debt can be used to tackle the effects of epidemics. We show that fiscal policies can promote the convergence to a stable steady state with no epidemics. When public policies are not able to permanently eradicate the epidemic, public debt and income transfers could reduce the number of infected people and increase capital and GDP per capita. As a prerequisite, pollution intensity should not be too high. Finally, we define a household subsidy policy which eliminates income and welfare inequalities between healthy and infected individuals. |
| Keywords: | public debt,epidemics,pollution,overlapping generations |
| Date: | 2021–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-03222251&r= |
| By: | Marion Davin (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Mouez Fodha (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thomas Seegmuller (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We study whether fiscal policies, especially public debt, can help to curb the macroeconomic and health consequences of epidemics. Our approach is based on three main features: we introduce the dynamics of epidemics in an overlapping generations model to take into account that old people are more vulnerable; people are more easily infected when pollution is high; public spending and public debt can be used to tackle the effects of epidemics. We show that fiscal policies can promote the convergence to a stable steady state with no epidemics. When public policies are not able to permanently eradicate the epidemic, public debt and income transfers could reduce the number of infected people and increase capital and GDP per capita. As a prerequisite, pollution intensity should not be too high. Finally, we define a household subsidy policy which eliminates income and welfare inequalities between healthy and infected individuals. |
| Keywords: | Epidemics,pollution,overlapping generations,public debt |
| Date: | 2021–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03221945&r= |
| By: | Pelzl, Paul; Poelhekke, Steven |
| Abstract: | We analyze the local effect of exogenous shocks to the value of mineral deposits on a panel of manufacturing plants in Indonesia. We introduce heterogeneity in natural resource extraction methods, which helps to explain the mixed evidence found in the `Dutch disease' literature. In districts where mineral extraction is relatively capital intensive, mining booms cause virtually no upward pressure on manufacturing wages, and both producers of more heavily traded and relatively less-traded manufacturing goods benefit from mining booms in terms of employment. In contrast, labor-intensive mining booms drive up local wages such that heavily traded goods producers respond by reducing employment. |
| Keywords: | Dutch disease; Indonesia; labor intensity; mining; Natural resources; traded sector |
| JEL: | F00 L16 L60 L72 O12 O13 Q30 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15271&r= |
| By: | Tran, Thi Xuyen (Helmut Schmidt University, Hamburg) |
| Abstract: | In this paper, we investigate whether and how households adjust their agricultural practices such as cultivation and livestock to adapt to a severe typhoon.We, therefore, make use of a natural experiment coming from the strong typhoon Ketsana in 2009. We apply the difference-in-differences approach using micro-data on household level and spatial data of this severe typhoon. Our empirical findings suggest that households alter their agricultural activities in response to a strong typhoon. While they decrease the crops-planted area, they tend to purchase more livestock in the short term and in the medium term. Our paper not only indicates the adjustment to the crop-livestock system as an adaptation strategy to a severe typhoon, but it also is a warning about the contraction of crops production in the aftermath of this type of event. |
| Keywords: | Typhoon; Agriculture; Crops; Livestock; Vietnam |
| JEL: | O12 O13 Q12 Q15 Q54 |
| Date: | 2021–05–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:vhsuwp:2021_188&r= |
| By: | R. McKenna; I. Mulalic; I. Soutar; J. M. Weinand; J. Price; S. Petrovic; K. Mainzer |
| Abstract: | The ambitious Net Zero aspirations of Great Britain (GB) require massive and rapid developments of Variable Renewable Energy (VRE) technologies. GB possesses substantial resources for these technologies, but questions remain about which VRE should be exploited where. This study explores the trade-offs between landscape impact, land use competition and resource quality for onshore wind as well as ground- and roof-mounted photovoltaic (PV) systems for GB. These trade-offs constrain the technical and economic potentials for these technologies at the Local Authority level. Our approach combines techno-economic and geospatial analyses with crowd-sourced scenicness data to quantify landscape aesthetics. Despite strong correlations between scenicness and planning application outcomes for onshore wind, no such relationship exists for ground-mounted PV. The innovative method for rooftop-PV assessment combines bottom-up analysis of four cities with a top-down approach at the national level. The results show large technical potentials that are strongly constrained by both landscape and land use aspects. This equates to about 1324 TWh of onshore wind, 153 TWh of rooftop PV and 1200-7093 TWh ground-mounted PV, depending on scenario. We conclude with five recommendations that focus around aligning energy and planning policies for VRE technologies across multiple scales and governance arenas. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.09736&r= |
| By: | Anmina Murielle Djiguemde (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Dimitri Dubois (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Alexandre Sauquet (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Tidball Mabel (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We study the impact of discrete versus continuous time on the behavior of agents in the context of a dynamic common pool resource game. To this purpose, we consider a linear quadratic model in which agents exploit a renewable resource with an infinite horizon and conduct a lab experiment. We use a differential game for continuous time and derive its discrete time approximation. When the agent is the sole owner of the resource, we fail to detect on a battery of indicators any difference between discrete and continuous time. Conversely, in the two-player setting, significantly more agents can be classified as myopic and end up with a low resource level in discrete time. Continuous time seems to allow for better cooperation and thus greater sustainability of the resource than does discrete time. Also, payoffs are more equally distributed in the continuous time setting. |
| Keywords: | Common Pool Resource,Differential Games,Experimental Economics,Continuous Time,Discrete Time |
| Date: | 2021–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03214973&r= |
| By: | F.A. Ignacio González (Universidad Nacional del Sur/CONICET); M. Emma Santos (UNS/CONICET/Universidad de Oxford); Silvia London (Universidad Nacional del Sur/CONICET) |
| Abstract: | Los desastres naturales representan una seria amenaza a nivel global. Este trabajo avanza en la estimación del impacto que los desastres naturales generan sobre el crecimiento económico. En particular, se analiza el caso de los distritos argentinos para el período 1992-2013. Debido a la falta de datos desagregados de PBI, se utilizan mapas de luminosidad nocturna -como proxy de la actividad económica y el crecimiento- según lo reportado por la Administración Nacional Oceánica y Atmosférica (NOAA). La información sobre desastres proviene de los registros del Sistema de Inventario de Desastres (DesInventar). Se implementa un análisis de regresión considerando un panel de 350 distritos durante más de dos décadas. Se encuentra que, un desastre natural adicional, ajustado por severidad, se asocia con una reducción del 0.53% en el crecimiento económico en el año de su ocurrencia. Los desastres geofísicos e hidrológicos son los responsables de este efecto negativo. No hay evidencia de efectos persistentes sobre el crecimiento. Los hallazgos son especialmente relevantes considerando que se espera un aumento en la frecuencia e intensidad de los desastres, a futuro, como resultado del cambio climático, y que los países en desarrollo son más vulnerables ante desastres. |
| Keywords: | Desastres naturales Crecimiento económico Luminosidad nocturna Argentina |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:32&r= |
| By: | Sasaki, Hiroaki; Mino, Kazuo |
| Abstract: | This study introduces declining population and exhaustible resources into a semi-endogenous growth model that explicitly incorporates firms' optimization behavior and investigates the relationship between the population growth rate and the growth rate of the per capita output. The main results are as follows. First, irrespective of whether the population growth rate is positive or negative, the long-run growth rate of per capita output can be positive, depending on the conditions. Second, when the population growth rate is positive, the long-run growth rate of per capita output depends positively on the saving rate, although the model belongs to the class of semi-endogenous growth without scale effects. |
| Keywords: | exhaustible resources; declining population; endogenous growth: Hotelling's rule |
| JEL: | O13 O44 Q32 Q43 |
| Date: | 2021–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107787&r= |
| By: | Tetsuji Okazaki; Toshihiro Okubo; Eric Strobl |
| Abstract: | Natural disasters can seriously damage firms as well as the banks that they use independent of their size. However, it is small- and medium-sized firms in particular that will be affected by this because they tend to be financially constrained and thus greatly depend on these potentially damaged local banks for financing. In this paper, we focus on the Great Kanto Earthquake of 1923, which resulted in serious damage to small- and medium-sized firms and banks in Yokohama City, to investigate how effective the provision of loans by local banks, as well as the Earthquake Bills policy implemented by the Bank of Japan, was in helping firms recover. Using linked firm- and bank-level datasets, we find that larger local banks allowed damaged firms to survive and grow. The Earthquake Bills policy mitigated the negative impact of bank damage on firms and prevented credit crunch, although this deteriorated the balance sheet of local banks and resulted in financial instability and a banking crisis as a side effect. |
| URL: | http://d.repec.org/n?u=RePEc:cnn:wpaper:21-001e&r= |
| By: | Justin Tyndall (University of Hawai‘i at Manoa Department of Economics, University of Hawai‘i Economic Research Organization) |
| Abstract: | Global sea level rise is a known consequence of climate change. As predictions of sea level rise have grown in magnitude and certainty, coastal real estate assets face an increasing climate risk. I use a complete data set of repeated home sales from Long Island in New York State to estimate the appreciation discount caused by the threat of sea level rise. The repeat sale methodology allows for unobserved property characteristics to be controlled for. Between 2000 and 2017, I find that residential properties that were exposed to future sea level rise experienced annual price appreciation that was 0.8 percentage points below unexposed properties. I provide numerous robustness checks to confirm this result. I also find evidence of demand spillovers by estimating an appreciation premium for properties that are near the coast but are relatively safe from sea level rise. |
| Keywords: | Transportation; Safety; Health; Traffic Fatalities; Externalities |
| JEL: | G10 R30 Q54 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2021-2&r= |
| By: | Karoline Bax; \"Ozge Sahin; Claudia Czado; Sandra Paterlini |
| Abstract: | While environmental, social, and governance (ESG) trading activity has been a distinctive feature of financial markets, the debate if ESG scores can also convey information regarding a company's riskiness remains open. Regulatory authorities, such as the European Banking Authority (EBA), have acknowledged that ESG factors can contribute to risk. Therefore, it is important to model such risks and quantify what part of a company's riskiness can be attributed to the ESG ratings. This paper aims to question whether ESG scores can be used to provide information on (tail) riskiness. By analyzing the (tail) dependence structure of companies with a range of ESG scores, using high-dimensional vine copula modelling, we are able to show that risk can also depend on and be directly associated with a specific ESG rating class. Empirical findings on real-world data show positive not negligible dependencies between clusters determined by ESG scores, especially during the 2008 crisis. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.07248&r= |
| By: | OECD |
| Abstract: | Nature underpins all economic activities and human well-being. It is the world’s most important asset. Yet humanity is destroying biodiversity at an unprecedented rate, posing significant but often overlooked risks to the economy, the financial sector and the well-being of current and future generations. This report provides the latest findings and policy guidance for G7 and other countries in four key areas: measuring and mainstreaming biodiversity; aligning budgetary and fiscal policy with biodiversity; embedding biodiversity in the financial sector; and improving biodiversity outcomes linked to international trade. The report shows how Finance, Economic and Environment Ministries can drive the transformative changes required to halt and reverse the loss of biodiversity.This Policy Paper was prepared as an input document for the United Kingdom Presidency of the G7 in 2021. |
| Date: | 2021–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaac:26-en&r= |