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on Environmental Economics |
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Issue of 2021‒08‒09
fifty-five papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Claudiu Albulescu (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers); Maria-Elena Boatca-Barabas; Andra Diaconescu |
| Abstract: | This paper uses a quantile fixed-effect panel data approach to investigate how environmental policy stringency affects CO2 emissions in a set of 32 OECD countries from 1990 to 2015. This approach allows us to identify the asymmetric impact of policy stringency on emissions, considering the emission level recorded in each analysed country. More precisely, we posit that the effectiveness of environmental regulations and policies is influenced by the air pollution level. Our results show that an increase in policy stringency has a negative impact on emissions. As a new contribution, we show that environmental stringency has a more powerful impact in the countries with lower level of carbon emissions. This result is also recorded for the subset of EU member countries of the OECD. Moreover, we show that policy stringency measures only become effective after the implementation of the Kyoto agreement. Finally, the policy stringency effect is stronger for EU countries at high risk of missing the 20-20-20 target in terms of greenhouse gas emissions. |
| Keywords: | CO2 emissions,environmental policies,environmental Kuznets curve,pollution haven hypothesis,panel quantiles regression |
| Date: | 2021–07–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03303096&r= |
| By: | Abrell, Jan; Rausch, Sebastian |
| Abstract: | Carbon pricing is a key instrument for achieving Europe's ambitious climate targets. It is therefore not surprising that reform of the EU carbon market is at the heart of the measures proposed by the European Commission (EC). One important policy innovation would be the introduction of a second emissions trading system in Europe that integrates other sectors like buildings and road transport. This addresses some of the inefficiencies of the existing, fragmented EU carbon markets, but at the same time requires a policy decision with potentially large implications in terms of economic costs to achieve European climate goals: How should the EU carbon budget be divided between two separate carbon markets? Achieving the EU climate target of 55 per cent causes a decrease in the aggregate consumption level of the EU-27 countries of 2.8 per cent or 248.9 billion euros in 2030 under current EU climate policy (without considering possible benefits from avoided climate change damages). A new emissions trading system reduces these costs by 21.5 per cent under the current allocation of the EU climate budget and by 33.0 per cent under the allocation proposed by the European Commission. Larger cost reductions of up to 61.6 per cent are possible if an even larger emissions budget is allocated to the buildings and transport sectors. Given the difficulties to politically determine the allocation of the EU climate budget, market-based flexibility mechanisms are desirable in order to achieve climate targets at the lowest economic cost. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewpbs:52021&r= |
| By: | Thomas MÉLONIO; Laëtitia TREMEL |
| Abstract: | The Sustainable Development Goals (SDGs) have given the United Nations a political and statistical framework that reconciles the human development agenda with the agenda to protect the planet. More than five years since they were adopted, the progress made on these goals is still uneven and, when it comes to the environment, even lagging behind. The overarching objective of the 2030 Agenda was to re-establish a coherence between social, economic and environmental policies, but this is encountering systemic weaknesses that may well be exacerbated by the Covid-19 pandemic. In this paper, we put forward several exploratory avenues to steer the SDGs back on track: restore greater legitimacy and readability to the environmental goals by defining indicators that integrate the commitments made at COP21 and, eventually, those that should be made to protect biodiversity; identify the synergies and tensions between the different goals so that better trade-offs can be made among priorities; build and model a sustainable development pathway for each country to track the effective progress and estimate the cost of financing these improved pathways; integrate environmental imperatives into decision-making and trade-offs and, finally, extend the time horizon for the SDGs to 2050 along with 5-year milestones, updating indicators as research and diplomatic negotiations make headway, as provided for in the Paris Agreement for example. |
| JEL: | Q |
| Date: | 2021–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:avg:wpaper:en12794&r= |
| By: | Stephen K. Dimnwobi (Nnamdi Azikiwe University, Anambra State, Nigeria); Chukwunonso Ekesiobi (Chukwuemeka Odumegwu Ojukwu University, Nigeria); Chekwube V. Madichie (Pan-Atlantic University, Lagos, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The nexus of population dynamics and environmental degradation has been discussed widely in the extant literature. Most related studies have utilized carbon emission as a proxy of environmental quality. However, carbon emission does not capture the multidimensional nature of environmental degradation. To fill this gap, this study utilized the ecological footprint to capture environmental degradation because it is a more dynamic environmental quality measure. The paper examines the population-environmental degradation hypothesis for five populous African countries (DR Congo, Ethiopia, Nigeria, South Africa and Tanzania) using panel information from 1990-2019. The Cross-sectionally Augmented autoregressive distributed lag (CS-ARDL) was employed to assess the relationship among the data – ecological footprint per capita (ECFP), population growth rate (POPG), population density (POPD), urban population growth rate (URBN), age structure of the population (AGES), per capita GDP growth rate (PGDP), energy consumption (ENEC), and trade openness (TRAD). The findings of the study revealed that POPG, POPD, AGES, PGDP, ENEC and TRAD increase environmental degradation. Urbanization (URBN) has no significant influence on environmental degradation in the selected African countries. The study concludes with policy prescriptions geared towards addressing population expansion and improving environmental quality. |
| Keywords: | Population dynamics, Environmental degradation, Africa |
| JEL: | C40 J11 O10 Q50 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:21/047&r= |
| By: | Shoibal Chakravarty (Indian Institute of Science); E. Somanathan (Indian Statistical Institute, Delhi) |
| Abstract: | India is the world's third-largest emitter of CO2 and coal-fired power plants contribute approximately half of India's CO2 emissions. Indian government policies assume a significant expansion of coal-fired power in India over the next two decades. This paper compares the costs of coal and renewable power, including quantifiable domestic external costs, in 2018 as well as projections for 2025. Our estimate for the environmental cost of coal is 2.4 US KWh (1.64 Rupee/KWh) in the financial year 2018-19. The average cost of electricity from nearly all coal plants in India is greater than the cost of new solar and wind generators in 2018-19 when environmental costs are taken into account. More than 50% of the coal capacity has a social operating cost that is higher than the average social cost of power from renewables. By 2025, the cost of electricity from renewables with storage will be comparable to the domestic social costs of the cheapest new coal plants. We emphasize that this analysis holds without any accounting of climate change impacts in the form of a cost of carbon. There is, therefore, no economic case for new coal plants in India. |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:alo:isipdp:21-04&r= |
| By: | Dominik Hartmann; Diogo Ferraz; Mayra Bezerra; Andreas Pyka; Flavio L. Pinheiro |
| Abstract: | Research in Data Envelopment Analysis has created rankings of the ecological efficiency of countries' economies. At the same time, research in economic complexity has provided new methods to depict productive structures and has analyzed how economic diversification and sophistication affect environmental pollution indicators. However, no research so far has compared the ecological efficiency of countries with similar productive structures and levels of economic complexity, combining the strengths of both approaches. In this article, we use data on 774 different types of exports, CO2 emissions, and the ecological footprint of 99 countries to create a relative ecological pollution ranking (REPR). Moreover, we use methods from network science to reveal a benchmark network of the best learning partners based on country pairs with a large extent of export similarity, yet significant differences in pollution values. This is important because it helps to reveal adequate benchmark countries for efficiency improvements and cleaner production, considering that countries may specialize in substantially different types of economic activities. Finally, the article (i) illustrates large efficiency improvements within current global output levels, (ii) helps to identify countries that can best learn from each other, and (iii) improves the information base in international negotiations for the sake of a clean global production system. |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2107.14365&r= |
| By: | Patricia P.A. Henríquez‐piskulich; Constanza Schapheer; Nicolas Vereecken; Cristian Villagra |
| Abstract: | Industrial agriculture (IA) has been recognized among the main drivers of biodiversity loss, climate change, and native pollinator decline. Here we summarize the known negative effects of IA on pollinator biodiversity and illustrate these problems by considering the case of Chile, a “world biodiversity hotspot” (WBH) where food exports account for a considerable share of the economy in this country. Most of Chile’s WBH area is currently being replaced by IA at a fast pace, threatening local biodiversity. We present an agroecological strategy for sustainable food production and pollinator conservation in food‐producing WBHs. In this we recognize native pollinators as internal inputs that cannot be replaced by IA technological packages and support the development of agroecological and biodiversity restorative practices to protect biodiversity. We suggest four fundamental pillars for food production change based on: (1) sharing the land, restoring and protecting; (2) ecological intensification; (3) localized knowledge, research, and technological devel-opment; and (4) territorial planning and implementation of socio‐agroecological policies. This approach does not need modification of native pollination services that sustain the world with food and basic subsistence goods, but a paradigm changes where the interdependency of nature and human wellbeing must be recognized for ensuring the world’s food security and sovereignty. |
| Keywords: | Agroecology; Apoidea; Pesticides; Sacrifice zones; Water deficit |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/328659&r= |
| By: | Philip Stessens; Frank Canters; Marijke Huysmans; Ahmed Z. Khan |
| Abstract: | For city dwellers urban green space is the primary source of contact with nature. Qualitative green space is increasingly perceived as an important factor for quality of life in urban areas and a key component of sustainable urban design and planning. In this study, the relation between different features of urban green spaces and perception of green space qualities was analyzed by combining the outcome of a survey on green space perception with GIS-based spatial metrics. A survey has been conducted among residents of the Brussels Capital Region and surroundings to assess the relative importance residents assign to different qualities of urban green spaces and how they value these qualities within visited spaces. Quietness, spaciousness, cleanliness and maintenance, facilities and feeling of safety are identified as important qualities of public green spaces, while naturalness, historical and cultural value are perceived as less important qualities. A GIS-based model was developed to infer naturalness, quietness and spaciousness as perceived by users of public green spaces from green space properties. Using variables describing biological value, land-cover composition, green space area and shape, good correlations were obtained between GIS-based assessment of naturalness and spaciousness and how green space users perceive these qualities. The model proposed may be useful for simulating green space development and improvement scenarios and assess their impact on perceived quality. Thus it may serve as a spatial decision support tool for improving the quality of urban green spaces. |
| Keywords: | Brussels; Ecosystem services; Environmental quality; GIS; Urban green space |
| Date: | 2020–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/298795&r= |
| By: | Hajdu, Tamás; Hajdu, Gábor |
| Abstract: | This chapter reviews the empirical literature on the impacts of temperature and climate change on human pregnancies. The focus is on the quasi-experimental studies that use panel data, apply a fixed effect approach, and exploit the random year-to-year fluctuation in temperature. The insights that emerge from the review highlight that exposure to heat in the pre-conception period has detrimental impacts on fertility. In addition, heat during pregnancy increases pregnancy losses, leads to a reduction in gestational length, and lowers birth weight. Despite the growing empirical evidence on the subject, understanding the relationship between temperature and pregnancy-related outcomes is far from perfect. Importantly, the potential impacts of climate change are rarely quantified. The chapter outlines directions for future research. |
| Keywords: | temperature,climate change,fertility,pregnancy,health at birth,birth weight,pregnancy loss |
| JEL: | J13 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:896&r= |
| By: | Tchoffo, Rodrigue |
| Abstract: | The Covid-19 pandemic led to a loss of employment in many sectors of the economy around the world. This negatively affected the industry capacity of production of many countries. Linking the CO2 emissions to the production capacity, the total pollution is likely to decrease. We investigate this issue by designing a simple environmental model based on the partial equilibrium (PE). We test this theoretically and empirically using recent data on the total contamination for four regions and countries. Then, we link our model to the CGE model of Hosoe et al. (2010) to capture the impact on other sectors of the economy. The final model PE-CGE is therefore designed through the household consumption demand channel. Broadly, our findings show that the environmental impact of the pandemic depends on the structure of the economy. While the USA, China and Sub-Saharan Africa reduce their CO2 emissions, that of the EU rather increases. |
| Keywords: | Partial Equilibrium, Computable General Equilibrium, Covid-19, CO2 emissions, Employment, Production |
| JEL: | C68 F14 Q51 |
| Date: | 2021–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108920&r= |
| By: | Kube, Roland; Wendland, Finn |
| Abstract: | Zur Umsetzung des Europäischen Green Deals plant die Europäische Kommission im Juli 2021 eine umfangreiche Erneuerung der europäischen Klimaschutzinstrumente. Im Rahmen des Fit-For-55-Pakets sind 12 regulatorische Einzelmaßnahmen - von einer Erneuerung der Energieeffizienzstandards bis zu einer Revision des EU-Emissionshandels - zur Überarbeitung vorgesehen. Zusammen sollen diese den Weg ebnen, das neue 2030-Treibhausgasreduktionsziel von 55 anstatt 40 Prozent (gegenüber 1990) sowie das Ziel der Klimaneutralität bis 2050 zu erreichen. Diese Studie beleuchtet die geplante Neuausrichtung der beiden klimapolitischen Leitinstrumente: dem EU-Emissionshandel (EU-ETS) und der EU-Lastenteilung. Von besonderer Relevanz ist die Rolle eines möglichen EU-weiten CO2-Bepreisungsmechanismus für den Straßenverkehr und Gebäudesektor. Nach der Einführung eines mengenbasierten Mechanismus für bestimmte Sektoren durch das EU-ETS, sollen die gemeinschaftlichen Anforderungen zur Umsetzung der Klimaziele in weiteren Wirtschaftsbereichen zukünftig stärker harmonisiert werden. Der Straßenverkehr und Gebäudesektor sind geprägt von verhältnismäßig hohen Vermeidungskosten, geringen Preissensitivitäten und langen Investitionszyklen. Für eine zukünftige CO2-Bepreisung in diesen Sektoren sind grundsätzlich vier Optionen denkbar: eine Verschärfung der Zielvorgaben unter der derzeitigen strukturellen Ausrichtung; eine Erweiterung des bestehenden EU-ETS auf weitere Bereiche; ein Aufbau eines separaten 2. Emissionshandels; eine Kombination sektorspezifischer Instrumente (Emissionshandel und Energiesteuer). [...] |
| JEL: | Q48 Q58 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkpps:132021&r= |
| By: | Aayush Tandon |
| Abstract: | With only a decade left to reduce emissions drastically, the scale, pace and extent of global transformation needed is truly demanding. Long-term emission goals and the nature of the low-emission transition in each country will be a function of its unique socio-economic priorities, capabilities, resource endowment, vision for post 2050 economic structure, and social and political acceptability of what constitutes a just transition. As we enter the “decade for delivery”, a whole of economy approach is needed to realise the low-emission transition. This includes focusing not only on upscaling zero and near-zero emitting technologies and businesses but also supporting, to the extent possible, the progressive lowering of emissions in high emitting and hard to abate sectors. In this context, “transition finance” is gaining traction among governments and market participants. To identify the core features of transition finance, this paper reviews 12 transition relevant taxonomies, guidance and principles by public (Japan, Singapore, Malaysia, Russia, European Union, EBRD) and private actors (Climate Bonds Initiative, International Capital Markets Association, Research Institute for Environmental Finance Japan, AXA Investment Managers and DBS), as well as 39 transition relevant financial instruments (vanilla transition bonds, key performance indicator-linked fixed income securities). This paper does not aim to define transition finance, but rather to review emerging approaches and instruments to highlight commonalities, divergences as well as issues to consider for coherent market development and progress towards global environmental objectives. Based on the review, this paper puts forth two preliminary views. First, that the essence of transition finance is triggering entity-wide change to reduce exposure to transition risk; second, that transition finance may be better understood as capital market instruments with a set of core functions/attributes rather than a specific format or label. |
| Keywords: | finance, low-carbon transition, sustainable debt, taxonomy, transition risk |
| JEL: | D5 E4 Q01 |
| Date: | 2021–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:179-en&r= |
| By: | Reyes, Celia M.; Domingo, Sonny N.; Agbon, Adrian D.; Olaguera, Ma. Divina C.; Umlas, Anna Jennifer L.; Zuluaga, Katrina Mae C. |
| Abstract: | Benguet province’s comparative advantage in the cultivation of high value crops such as cabbage, carrots, and potatoes are evident in the high volume of production experienced year on year. This may be attributed to the province’s favorable weather and climate. Climate change, however, may threaten the stability of the mountain farming systems in the coming years without proper measures for adaptation. This paper aims to understand the current barriers to the access and use of weather and climate information in agricultural decisionmaking as a means to cope with the changing climate. It was found that, while farmers see the value of using weather and climate information, there is a lack of localized weather and climate information applicable to the microclimate of Benguet. The provision of information must also be supported with other interventions, such as access to low cost credit, to provide the other lacking resources farmers need to enact the optimal decision alternative. |
| Keywords: | agriculture, high value crops, smallholder farming, weather and climate information, decision analysis |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2020-14&r= |
| By: | Domingo, Sonny N.; Umlas, Anna Jennifer L.; Zuluaga, Katrina Mae C. |
| Abstract: | Crop climate calendars augment traditional crop calendars by not only specifying planting and harvest schedules but also describing phenological states, cultivation practices and weather and climate requirements that any crop faces throughout a cropping season. The case to document this information in Benguet is compelling: The mountainous province experiences a unique microclimate and phenomena such as frost and hail and derives income from the cultivation of high value crops such as carrots, cabbage and potatoes amidst this. The researchers conducted focus group discussions with the municipal agriculturalists and farmer leaders in Atok, Benguet to understand their experiences and from there construct their crop climate calendar. The calendars produced in this exercise may serve as a solid foundation for the analysis of the community’s climate-sensitive agricultural decisions. |
| Keywords: | agriculture, crop climate calendar, high value crops, weather and climate information, decision analysis |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2020-09&r= |
| By: | Pistochini, Theresa; Mande, Caton; Modera, Mark; Outcault, Sarah; Sanguinetti, Angela; Chan, Wanyu Rengie; Dutton, Spencer; Singer, Brett; Li, Xiwang |
| Abstract: | This project developed and demonstrated approaches to synergistically improve ventilation and indoor environmental quality during replacements of packaged heating, ventilation, and air conditioning (HVAC) systems in California schools. The research team 1) characterized HVAC systems, carbon dioxide concentration, and indoor thermal conditions in 104 classrooms that had replaced packaged HVAC systems serving a single classroom (single-zone) between 2013 and 2016; 2) evaluated HVAC system retrofits with regard to energy efficiency and indoor environmental quality performance at two field sites; and 3) completed building energy and indoor environmental quality modeling of HVAC equipment and filter selection for four climate and outdoor air conditions representative of California’s regional variation and two different classroom vintages. Inspections of 104 classrooms with HVAC equipment installed between 2013-2016 showed that only 15 percent of classrooms’ estimated median daily ventilation rates met the 7.1 liters per second per person Title 24 code requirement, and 9 percent had carbon dioxide levels above 2,000 parts per million for significant portions of the school day, which implies a ventilation rate of less than half of that required. Where under-ventilation occurred, it tended to affect several observed classrooms within a given school and not occur as an isolated case. Periodic testing of ventilation systems and continuous real-time carbon dioxide monitoring could help to detect ventilation problems. Field testing and modeling of HVAC technologies determined that variable speed motors for indoor blowers, two-speed compressors, economizers, demand control ventilation technology, and air filters with a minimum efficiency reporting value of 13 constitute an HVAC package suitable for all of California’s climates. The combination of technologies can save between 28 and 57 percent of HVAC electricity use, depending on climate. Filters with a minimum efficiency reporting value of 13 can reduce indoor particulate matter exposures by 40 percent or more compared to filters with a value of 8. |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2020–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt1jp1q4xb&r= |
| By: | Angelos Alamanos; Phoebe Koundouri; Lydia Papadaki; Tatiana Pliakou |
| Abstract: | The Water-Food-Energy Nexus can support a general model of sustainable development, balancing resources with increasing economic/productive expectations, as e.g. in agriculture. We synthesize lessons from Greece's practical and research experience, identify knowledge and application gaps, and propose a novel conceptual framework to tackle these challenges. Thessaly (Central Greece), the country's driest region and largest agricultural supplier is used as an example. The area faces a number of water quantity and quality issues, ambitious production-economic objectives, continuous (historically) drought and flood events, conflicts, administrative and economic issues, under serious climate change impacts. A detailed assessment of the current situation is carried out, covering all these aspects, for the first time in an integrated way. Collaboration gaps among different stakeholders are identified as the biggest impediment to socially acceptable actions. For the first time, to our knowledge, the Nexus is set as a keystone to develop a novel framework to reverse the situation and achieve sustainable project planning under commonly acceptable long-run visions. The proposed framework is based on Systems' Theory, innovative principles, uses a multi-disciplinary platform to bring together all relevant key stakeholders, provides scientific support and commitment, and makes use of technological advances for the systems' improvement. |
| Keywords: | Water-Food-Energy Nexus, Thessaly, Greece, Systems Innovation Approach, scientific and stakeholder collaboration, framework development. |
| Date: | 2021–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2108&r= |
| By: | Peter Andre; Teodora Boneva; Felix Chopra; Armin Falk |
| Abstract: | We document individual willingness to fight climate change and its behavioral determinants in a large representative sample of US adults. Willingness to fight climate change – as measured through an incentivized donation decision – is highly heterogeneous across the population. Individual beliefs about social norms, economic preferences such as patience and altruism, as well as universal moral values positively predict climate preferences. Moreover, we document systematic misperceptions of prevalent social norms. Respondents vastly underestimate the prevalence of climatefriendly behaviors and norms among their fellow citizens. Providing respondents with correct information causally raises individual willingness to fight climate change as well as individual support for climate policies. The effects are strongest for individuals who are skeptical about the existence and threat of global warming. |
| Keywords: | Climate change, climate behavior, climate policies, social norms, economic preferences, moral values, beliefs, survey experiments |
| JEL: | D64 D83 D91 Q51 Z13 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2021_310&r= |
| By: | Chau, Nancy H.; Basu, Arnab K.; Byambasuren, Tsenguunjav; Khanna, Neha |
| Abstract: | How serious is indoor air pollution (IAP) a mortality threat to young children? This paper estimates the causal effect of cooking fuel choice – a predominant cause of IAP – on infant mortality in India (1992-2016), where the most health-endangering biomass fuels are also most commonplace. Leveraging the speed of change in forest cover and land ownership for identification, we find polluting fuel choice to impose highly heterogeneous local infant mortality effects by age group (from insignificant to 4:7 percent increase) – implying the loss of two lives every 1,000 live births. These conclusions are robust to alternative estimation strategies and additional controls. |
| Keywords: | International Development |
| Date: | 2021–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cudaeb:312521&r= |
| By: | Riccardo Colantuono (University of Siena, Regulation for Sustainability (R4S), Italy) |
| Abstract: | This study analyzes the current status of the civil aviation industry in the context of two market-based measures designed for the mitigation of CO2 emissions: the European Union Emissions Trading System (EU ETS) and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). These mechanisms are central in the challenge to decarbonize aviation and their principles, structure and coexistence perspectives will be the object of this article. In the first section of this study the status of the aviation industry in the EU ETS will be described. After a brief explanation regarding the basic functioning of the scheme, a historical perspective will allow to understand how and why aviation has come to a privileged position in the EU ETS, meaning that the system is failing to apply the appropriate price on the sector’s emissions which have continued to grow exponentially in the last decade as a consequence of this deficiency. Consequently, some policy suggestions that may correct this issue will be discussed. The second section analyzes another market-based mitigation mechanism: the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). CORSIA is a global scheme adopted in 2016 by the International Civil Aviation Organization (ICAO), which is a United Nations agency. CORSIA has commenced its operations in January 2021 and its historical developments, structure and functioning system will be analyzed thoroughly in this study. However, scholars and observers have highlighted several issues in its functioning mechanisms that could significantly reduce its effectiveness. These hindrances will be identified and explored in the third section of this study, and may be listed as it follows: voluntary nature and lack of enforcement, issues inherent to offsetting, issues with the rules concerning SAFs, issues with ICAO transparency and industry influence and the decision taken by ICAO to change the baseline year as a response to the COVID-19 pandemic. The final part of this study is subsequently devoted to comparing CORSIA, the EU ETS and perspectives about their coexistence, as at European level policy options regarding their relationship are currently in the process of being designed. In fact, a proposal for a regulation concerning these issues is currently being discussed in the European Commission and is expected to be adopted in the second quarter of the current year. Once this legislative decision is taken, the challenge of addressing aviation’s climate impact from a market-based standpoint may be a step closer. |
| Keywords: | Emission trading scheme |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0921&r= |
| By: | Sébastien Duchêne (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); Adrien Nguyen-Huu (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, Chaire Energie & Prospérité - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Institut Louis Bachelier); 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); Marc Willinger (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 assess the impact of environmental externalities on portfolio decisions in a lab-inthe-field experiment on finance professionals and students. Subjects show pro-environmental preferences, with a strong asymmetry because of the sign of the externality. They are prone to accept lower return for positive environmental impact, but not to bear increased risk. Finance professionals are more pro-environmental than students, particularly regarding negative externalities, and less influenced by a ranking signal about environmental performance. Additional control tasks show that pro-social and pro-environmental preferences have much less influence on portfolio composition than market practices for finance professionals, but they are significant predictors for students. |
| Abstract: | Nous évaluons l'impact d'externalités environnementales sur les décisions de portefeuille dans le cadre d'une expérience en laboratoire sur des professionnels de la finance et des étudiants. Les sujets exhibent des préférences pro-environnementales, avec une forte asymétrie due au signe de l'externalité. Ils sont enclins à accepter un rendement inférieur pour un impact environnemental positif, mais pas à supporter un risque accru. Les professionnels de la finance sont plus pro-environnementaux que les étudiants, notamment en ce qui concerne les externalités négatives, et moins influencés par un signal de rang concernant la performance environnementale. Des tâches de contrôle supplémentaires montrent que les préférences pro-sociales et pro-environnementales ont beaucoup moins d'influence sur la composition du portefeuille que les pratiques de marché pour les professionnels de la finance, mais qu'elles sont des prédicteurs significatifs pour les étudiants. |
| Date: | 2021–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-03285376&r= |
| By: | Moezzi, Mithra; Ingle, Aaron; Outcault, Sarah; Sanguinetti, Angela; Lutzenhiser, Loren; Wilhite, Hal; Lutz, James D.; Meier, Alan; Kutzleb, Jennifer |
| Abstract: | Solar thermal water heaters are an old technology used a century ago in California. They are now used extensively, in updated form, in many countries. According to government and industry estimates, well-functioning solar water heaters can theoretically displace 50 to 80 percent of the output of a natural gas-fueled household water heater, depending how hot water usage aligns with production and storage capacities. In so doing, they offer tremendous potential for reducing greenhouse gas emissions, fuel consumption, and energy bills. Such performance holds promise for California given its climate change and energy efficiency policy goals, since 40 percent of the natural gas used in California households is used to produce hot water. However, absent programs, only a specialty market for solar water heaters has developed. To encourage wider deployment, the California Solar Initiative—Thermal program offers financial incentives for systems qualifying under a carefully crafted set of specifications. The program has had some limited success since its inception in 2010. Within that context, this research assessed the performance and potential future use of natural gas-displacing solar water heaters in single-family homes in California, attending to a wide range of sociotechnical considerations. This project documented high diversity in user satisfaction and perceived system performance, and a qualified decrease in project costs to below $5,000 per installation. Solar water heating is a technology in progress, not universally suitable but instead appealing to varied niches shaped by household sensibilities, abilities, and hot water use levels. Thus, recent evolution provides a counterpoint to the pessimism, even as serious difficulties remain. The suitability of solar water heating for California households is not purely a matter of costeffectiveness within a typical energy efficiency framework, but also of evolving performance, perceptions, and values in light of ongoing and aspirational energy and social transitions ahead. |
| Keywords: | Engineering |
| Date: | 2019–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt490251gr&r= |
| By: | Guilherme de Oliveira; Gilberto Tadeu Lima |
| Abstract: | There is evidence that pollution concentration impacts negatively on labor productivity, which has implications for the Kaldor-Verdoorn law. While the growth rate of labor productivity varies positively with the growth rate of output, the growth rate of pollution concentration also varies positively with the latter. As a result, an increase in pollution concentration leading to environmental degradation might offset the productivity-enhancing effect of a rise in the scale of output production. This paper explores such a double-edged sword feature of output growth in a demand-led macrodynamic framework having pollution concentration as a further influence on the class conflict over the functional distribution of the social product. The stability of the environment-economy system in the long run hinges on how output growth varies with the functional distribution of income. When output growth is positively related to the wage share, the balanced growth path is unstable. When output growth varies positively with the profit share, stability is a possibility, but the system undergoes fluctuations in the wage share and the ratio of capital to pollution concentration when converging to the balanced growth path. Environmental preservation and functional distribution and growth of the social product interact to each other in a complex way. |
| Keywords: | Economic growth; pollution concentration; labor productivity; functional Distribution of the social product |
| JEL: | E11 O44 Q52 |
| Date: | 2021–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2021wpecon20&r= |
| By: | Hiroki Yamamoto (Bank of Japan); Tomomi Naka (Bank of Japan) |
| Abstract: | This paper quantitatively analyzes the impact of floods on firms' financial conditions from the perspective of contributing to the accumulation of basic research on climate-related financial risks, while taking into account the risk characteristics of Japan, where floods are one of the most common natural disasters. Since the damage from most floods tends to concentrate in a confined geographical area, a precise evaluation of their financial impact requires an assessment of sufficiently granular data, which is a challenge for the existing studies. In order to address that challenge, this paper combines Flood Statistics, which records almost all flood damage that has occurred in Japan at the municipality level, with firm-level financial data, and this makes it possible for us to analyze the impact of floods on firms' financial conditions with greater accuracy and granularity in comparison with previous studies. The three main conclusions of this paper are as follows. First, flood damage has a negative impact on the ratio of profit to sales, especially in the manufacturing industry. Second, the impact of floods on this ratio lessens in the short term. And third, the negative impact tends to be greater for firms located in municipalities that experienced floods with less frequency. Financial institutions need to pay close attention to the possibility that floods may cause more deterioration in firms' financial conditions than ever before as a consequence of climate change, and thus endeavor to enhance their risk management framework, bearing in mind that risk characteristics may vary depending on lenders' characteristics. |
| Keywords: | Climate change; Natural disaster; Corporate finance; Physical risk; Financial Stability |
| JEL: | C21 D22 Q54 R10 |
| Date: | 2021–07–20 |
| URL: | http://d.repec.org/n?u=RePEc:boj:bojwps:wp21e10&r= |
| By: | Friedrich, Peter; Wendland, Finn |
| Abstract: | Mit der Einführung der EU-Taxonomie möchte die Europäische Kommission den Grundstein zur Finanzierung nachhaltigen Wachstums und zur Umsetzung der europäischen Klimaziele legen. Die für die Umsetzung des EU Green Deals erforderlichen Investitionen für Umwelt- und Klimaschutz bis 2050 sind gewaltig und gehen weit über die Kapazitäten des öffentlichen Sektors hinaus. Um die Kapitalströme der Finanzmärkte zur Finanzierung des Übergangs so effektiv wie möglich einzubinden, ist ein einheitliches Verständnis erforderlich, welche Wirtschaftsaktivitäten als ökologisch nachhaltig im Sinne der Klimaziele gelten und welche nicht. Mit der EU-Taxonomie schafft die Kommission einen verbindlichen Klassifikationsstandard für 'grüne' Wirtschaftsaktivitäten bei Finanzmarktteilnehmern in der EU. Als Bindeglied zwischen Kapitalnehmer- und Kapitalgeberseite, zielt die EU-Taxonomie darauf ab, den Zugang zur Finanzierung, Ausweisung und Identifizierung ökologisch nachhaltiger Wirtschaftsaktivitäten zu erleichtern, um Finanzierungspotentiale zur Förderung emissionsarmer Technologien auszuschöpfen, und um die Investitionslücke bei der Umsetzung der Klimaziele auf dem Finanzmarkt langfristig zu schließen. |
| JEL: | G11 O16 Q01 Q54 Q56 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkpps:142021&r= |
| By: | Claire Jolly (OECD); James Jolliffe (OECD); Clare Postlethwaite (National Oceanography Centre); Emma Heslop (Intergovernmental Oceanographic Commission of UNESCO) |
| Abstract: | Marine data play a crucial role for many scientific disciplines, as well as for very diverse operational services such as fisheries management, environmental planning, marine conservation, weather forecasting, or port management. The information derived from marine data is also increasingly finding its way into a wide and varied range of public policy arenas and private industries. Collecting, distributing and archiving public marine data provide benefits to society at large, however as with all public investments, assessments are needed to provide evidence to decision makers. Based on an original survey of UK marine data users, this paper explores pathways through which marine data are used and transformed into actionable information, creating systematised value chains for the first time. The analysis unveils trends in current marine data uses in the UK and key benefits of data uses. The paper lays the foundations for further OECD work with the marine data community. |
| Date: | 2021–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2021/11-en&r= |
| By: | Mazzone, Daniel; Witcover, Julie; Murphy, Colin |
| Abstract: | California and British Columbia transportation fuel carbon intensity (CI) standards have been in effect since 2011, and Oregon’s since 2016. Total transport energy consumption under the programs was over 23 billion gasoline gallon equivalents (gge) in 2019. By 2019, the transport energy share from lower-carbon alternative fuels rose under each program to about 11%, 8%, and 7% in California, Oregon, and British Columbia, respectively. Each program met its CI targets and accumulated a bank of credits, which represent greenhouse gas (GHG) emission savings beyond the annual target. Credits cover program deficits assessed for emissions above target levels and can be applied towards future compliance. California and British Columbia drew down their credit banks each year since 2017; Oregon’s credit bank grew since the 2016 program start. Program credit prices in 2020 averaged $200/metric ton (MT), $132/MT, and $192/MT (all $USD) in California, Oregon, and British Columbia, respectively. In California, growth of cost-effective diesel substitutes led to over-compliance with the diesel pool standard (a 25% CI reduction for California in 2020), more than offsetting under-compliance in the gasoline pool (a 3% CI reduction there). The same is true in Oregon and British Columbia to a lesser extent. Renewable diesel (RD) generated a notable share of compliance credits in each jurisdiction, despite zero or near-zero volumes when the programs began. In 2019, RD accounted for more than 16% by volume of the liquid diesel pool in California and approximately 30% of alternative fuel energy and credits in British Columbia. RD was first credited in Oregon in 2019. Biomass-based diesel from used cooking oil grew rapidly; 2019 consumption increased by at least 70% over previous year in all three programs. Low-CI rated electricity (i.e., below the state grid average) accounted for approximately 4% of all credits in California beginning in 2019, after indirect accounting mechanisms that avoid the need for physical traceability became available. Oregon expanded its low-CI value electricity options in 2021 in a similar fashion to California. California’s is the only program to track and penalize increasing CI of petroleum fuels. Additional deficits accrued in 2020, totaling 192,000 – 2.6% of the total – through Q2. All three programs continue to adopt amendments, including extending targets and program durations (20% CI reduction by 2030 for all); opt-in credits for alternative jet fuel (California and Oregon); use of advanced crediting for electric vehicle (EV) charging (California and Oregon); an EV rebate program funded by residential charging credit revenue (California); infrastructure capacity crediting for zero emission vehicle (ZEV) fueling (California); third-party verification (California and Oregon), and carbon capture and sequestration protocol (California).o Washington state passed legislation adopting a Clean Fuel Standard to take effect in 2023. An online visualization tool and data repository, available athttps://asmith.ucdavis.edu/data/LCFS, includes much of the data used in this report. |
| Keywords: | Engineering, Social and Behavioral Sciences, fuel policy, transportation, carbon intensity standard, Low Carbon Fuel Standard, greenhouse gas emissions, California, Oregon, British Columbia |
| Date: | 2021–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt080390x8&r= |
| By: | Magambo, Isaiah Hubert; Dikgang, Johane; Gelo, Dambala; Tregenna, Fiona |
| Abstract: | This study used the by-production model specification to separate emission-generating technologies from ‘desirable outputs’ technology. It then employed the dynamic efficiency model, following the Dynamic Directional Input Distance Function specifications to compute the deterministic, dynamic environmental and technical efficiencies of large gold mines in developing countries. Using firm-level data from 2009 to 2018, the study found that on average, dynamic technical efficiency in these mines was 73%; the average dynamic technical efficiency was observed to have a decreasing trend, of 0.3% annually. The study also found that on average, dynamic environmental efficiency was 56%. However, the average dynamic environmental efficiency trend had a decrease of 0.6% annually. The poor performance and downward trends could be attributed partly to downward investment trends over time, and the increasing complexity of extracting gold deposits from low-grade ore, as well as to prices. They could also be the result either of poor institutional capacity, as far as environmental policies, regulations, and enforcement are concerned; or of supply-side structural rigidity – in particular, low-capacity, and unreliable energy supply, mostly from bad inputs such as coal and heavy fuels or both, which calls for the use of alternative energy sources. |
| Keywords: | environmental efficiency,gold mines,technical efficiency,undesirable output |
| JEL: | D24 D25 Q55 Q58 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:235859&r= |
| By: | Stephanie Rhea Erev |
| Keywords: | political theory; new materialism; friedrich nietzsche; jamaica kincaid; transfiguration; affirmation; climate catastrophe; timothy luke; anthropocene; critical theory; eco-critique |
| Date: | 2020–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/328270&r= |
| By: | Yoo, Sunbin; Kumagai, Junya; Kawabata, Yuta; Keeley, Alexander; Managi, Shunsuke |
| Abstract: | We seek to understand whether environmental concerns, fears of potential accidents, and merits regarding fully autonomous vehicles (FAVs) are motivators of willingness to buy (WTB) and willingness to pay (WTP) of FAVs. To do so, a large-scale survey on FAVs of more than 180,000 respondents was collected in Japan, and structural equation modeling (SEM) validated our findings. Interestingly, this study implicates a form of WTB-WTP disparity: those interested in natural environment conservation would purchase FAVs because they show high interest in overall social problems, and new technologies such as FAVs can resolve such problems, according to previous works. However, our result implies that they would not show high WTP because adopting FAVs does not `directly' contribute to natural environment conservation. Additionally, our results indicate that those who appreciate potential merits would have higher WTB and WTP, while those who fear FAV technology would not purchase FAVs and would have lower WTP. The results bear crucial policy implications for planners by showing the complexity between the factors of FAV WTB and WTP. |
| Keywords: | Fully autonomous vehicle; WTP; structural equation model; environmental concerns. |
| JEL: | R4 R40 R41 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108882&r= |
| By: | Magambo, Isaiah; Dikgang, Johane; Gelo, Dambala; Tregenna, Fiona |
| Abstract: | This article examines an important externality that polluting industries may impose on peoples’ health in their proximities. To ascertain the actual health outcomes and expenditure associated with mining pollution, this study (on a gold mine in Tanzania) used the Coarsened Exact Matching (CEM) approach, which matches the social, economic, and environmental risk-factor characteristics of households in treated and control groups. It also used a linear and logistics regression using CEM Weight to obtain robust treatment effects. The results show that health outcomes (proxied by stunting rate) were significant within 10km of the nearby mine. The probability of a child in the treated group being stunted was 0.226 greater than for a child with similar social, economic, and environmental risk factors in the control group. Moreover, the OLS regression suggested similarly that the children in the treated group had height-for-age Z-scores (HAZ06) of 0.827 less than for similar children in the control group. Further regression of HAZ06 on the distance from the mine provided robust evidence that health scores (HAZ06) among children increased statistically by 0.0212 for every kilometre they were further away from the mining site. These findings suggest that the less a person is exposed to mining pollutions (i.e., the further from the mine), the less the health impact. Furthermore, the results showed that households within 10 km of the mine are spending 55 202 Tanzanian shillings (TZS) more on health per person per year than those further than 10km away. The regression of per-capita health expenditure on distance provides more evidence that healthcare expenditure per capita decreases by TZS 712 for every 1km increase in the average distance from the residence to the mining site. Drawing intuition from the hedonic theory, we further interpreted the results in terms of ‘willingness to accept' (WTA); it was found that on average, the households staying within 10km of the mine (i.e., the victims of mining pollution) are willing to accept (WTA) minimum per-capita compensation for health expenditure of TZS 55 202 per annum (equivalent to USD 24.75). The minimum WTA increases closer to the mine site and decreases further away. These findings have an important implication for environmental and industrial policies. They suggest environmental regulations should be tightened, to ensure that the pollution emitted by mines is within acceptable limits for health as laid down by the WHO. Moreover, there is a need for a thorough review of industrial policies (especially in terms of local content) to ensure that compensation policies and local multiplier effects are adequate to offset the negative health and income effects. |
| Keywords: | Mining pollution, health effects, willingness to accept |
| JEL: | I15 Q32 Q51 Q53 |
| Date: | 2021–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108800&r= |
| By: | Messkoub, M. |
| Abstract: | Social policies predate the welfare state and have left their mark on the genesis and development of the welfare state in different countries, that testifies to the importance of historical and ideological path-dependencies of social policies in different countries. The political/political-economy ecology literature links theories of social welfare and welfare state to environmental issues like resource use through the relationship between economic growth and sustainability. Orthodox mainstream neo-classical and Keynesian economics rely on economic growth in order to raise living standards but using different channels and mechanisms. It is this reliance on economic growth and its depletive effect on environmental resources that has lied at the heart of the critiques of growth oriented liberal/neo-liberal or Keynesian economic policies, and for that matter, economic policies of centralised economies of socialist countries. This paper will start with a critique of conservative environmentalism that is inspired by Malthusian population pressure (with all its social policy implications), that to some extent also informs the degrowth approach. It would then ask how to meet the increasing health, education and other social needs whilst minimising the depletion of natural resources. I argue that the answer to the question of a sustainable social policy in part lies in an economic model, a la Kalecki and others, that can manage/negotiate the composition of output whilst investing in resources to reduce depletion of natural resources and greenhouse emissions. This is a growth strategy based on ‘the human theory of needs’ that meets the needs of current generation and provides some measure of inter-generational justice. The welfare and social policy counterpart of this should involve public and collective provisioning of socially necessary services of health and education as well as a range of other care services that will reduce per capita cost through economies of scale and scope whilst providing an equitable access to these services – universal provision and access and not targeting is at the heart of this approach. |
| Keywords: | Sustainable economy, growth/degrowth, sustainable social policy, distribution |
| Date: | 2021–07–20 |
| URL: | http://d.repec.org/n?u=RePEc:ems:euriss:135641&r= |
| By: | Gadat, Sébastien; Corre, Lola; Doury, Antoine; Ribes, Aurélien; Somot, Samuel |
| Abstract: | Providing reliable information on climate change at local scale remains a challenge of first importance for impact studies and policymakers. Here, we propose a novel hybrid downscaling method combining the strengths of both empirical statistical downscaling methods and Regional Climate Models (RCMs). The aim of this tool is to enlarge the size of high-resolution RCM simulation ensembles at low cost. We build a statistical RCM-emulator by estimating the downscaling function included in the RCM. This framework allows us to learn the relationship between large-scale predictors and a local surface variable of interest over the RCM domain in present and future climate. Furthermore, the emulator relies on a neural network architecture, which grants computational efficiency. The RCM-emulator developed in this study is trained to produce daily maps of the near-surface temperature at the RCM resolution (12km). The emulator demonstrates an excellent ability to reproduce the complex spatial structure and daily variability simulated by the RCM and in particular the way the RCM refines locally the low-resolution climate patterns. Training in future climate appears to be a key feature of our emulator. Moreover, there is a huge computational benefit in running the emulator rather than the RCM, since training the emulator takes about 2 hours on GPU, and the prediction is nearly instantaneous. However, further work is needed to improve the way the RCM-emulator reproduces some of the temperature extremes, the intensity of climate change, and to extend the proposed methodology to different regions, GCMs, RCMs, and variables of interest. |
| Keywords: | Emulator, Hybrid downscaling , Regional Climate Modeling , Statistical Downscaling , Deep Neural Network, Machine Learning. |
| Date: | 2021–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:125808&r= |
| By: | Rehkamp, Sarah; Canning, Patrick; Birney, Catherine |
| Abstract: | The U.S. food system uses freshwater from both surface water and groundwater sources (both blue water) throughout the domestic food supply chain, from on-farm irrigation to water used in the home kitchen. In this report, we study water use in the U.S. food system in 1997, 2002, 2007, and 2012 using the most recent benchmark economic datasets and an environmental input-output model. Our results show that blue water use has increased and decreased over the 4 time periods, but surface water is consistently the primary source of food-related water use. The U.S. food system used 34 trillion gallons of blue water in 2012, or 30 percent of the blue water used throughout the U.S. economy. We find that the majority of water use was in the crop and livestock production stages, although supply chain stages downstream from agriculture (processing and packaging, distribution and marketing, energy, and households) used 32 percent of the U.S. food system’s blue water in 2012. This research also considers specific food categories. In 2012, the fresh vegetable category required the most blue water at 5.14 trillion gallons. |
| Keywords: | Agribusiness, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Industrial Organization, Land Economics/Use, Livestock Production/Industries, Production Economics, Resource /Energy Economics and Policy |
| Date: | 2021–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usdami:312955&r= |
| By: | OKIMOTO Tatsuyoshi; TAKAOKA Sumiko |
| Abstract: | Does the market value corporate environmental, social, and governance (ESG) performance in corporate bond credit spreads? We directly measure the relationship between corporate ESG performance and credit spread by constructing the firm-level corporate bond credit spread based on the 'bottom-up' approach. We find that ESG performance has a significantly negative effect on credit spreads, but its impact varies across ESG pillars and the credit quality of the issuing firms. Our results also indicate that with greater recognition of the importance of ESG investing, increasing ESG performance has the stronger effect of decreasing credit spreads. Furthermore, our analysis suggests differential trends across the pillars and issuing firms' credit quality. More specifically, the environmental pillar has the largest impact on the credit spreads for low-rated firms, partly reflecting the global trend toward facilitating sustainable finance. Within the E, S, and G pillars, the resource use category, human rights category, and management category respectively show the most prominent lowering effects on credit spreads. |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:21052&r= |
| By: | Reyes, Celia M.; Domingo, Sonny N.; Agbon, Adrian D.; Olaguera, Ma. Divina C.; Umlas, Anna Jennifer L.; Zuluaga, Katrina Mae C. |
| Abstract: | The province of Benguet holds a competitive advantage in the production of cut flowers because of its unique weather and climate; however, the access to and use of information on weather and climate phenomena in agricultural decision making is not guaranteed despite its provision. This presents a critical issue to examine given that the changing climate situation in the region could adversely affect production and living standards without reliable sources of information for the same. In this paper, the researchers thus aimed to explore the barriers in the applications of weather and climate information to cut flower production in Atok, Benguet. It was found that while barriers also exist on the side of hydrometeorological information producers’ dissemination of information, there also exist significant financial, infrastructural and capacity barriers that include lack of working capital to implement optimal decision alternatives dictated by adverse weather conditions, the lack of reliable phone service and power to disseminate and access the information, and the absence of forecasts translated into the vernacular or laymanized. |
| Keywords: | agriculture, Philippines, weather and climate information, Cut flower production, smallholder farming |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2020-10&r= |
| By: | Octavio Fernández-Amador; Joseph F. Francois; Doris A. Oberdabernig; Patrick Tomberger |
| Abstract: | Understanding the global energy network and the developments of energy efficiency is key to advance energy regulation and fight climate change. We develop a global panel dataset on energy usage inventories based on territorial production, final production and consumption over 1997-2014. We apply structural decomposition analysis to isolate energy efficiency changes and study the effectiveness of the European Union Energy Services Directive (2006/32/EC) on energy efficiency. High-income regions are net-importers of embodied energy and use a larger share of non-renewable energy than developing countries. The effectiveness of the Directive is mixed. The different ambition of national energy policies of the European Union members and some complementarity in supply chains underlie the different dynamics found. High-income countries share efficiency gains and changes in the mix of energy sources. These trends are not specific to the European Union. Energy policies in high-income countries are less effective for energy footprints. Our findings are indicative of energy leakage. Energy regulation should account for global supply chains and target energy footprints. |
| Keywords: | Energy usage, energy efficiency, energy footprints, renewable energy, MRIO analysis, Structural Decomposition Analysis, EU Energy Services Directive. |
| JEL: | F18 F64 O13 O44 Q40 Q54 Q56 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2021-22&r= |
| By: | Moretti, Ayla; Cocker, David III; Barth, Matthew |
| Abstract: | This research focused on developing a module that can be added into current emission simulators, such as the EPA’s MOVES, that bridges the gap between portable emissions measurement systems (PEMS) / dynamometer measurements to account for gas-particle partitioning processes occurring on a timescale representative of near roadway monitors. View the NCST Project Webpage |
| Keywords: | Engineering |
| Date: | 2020–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt3z9851w9&r= |
| By: | Capucine Nobletz |
| Abstract: | This paper assesses the interconnectedness between global green energy and sectoral stock indexes. We show that green energy return spillovers need to be monitored. The green energy index has a significant degree of financial openness, and it is tightly interconnected with sectors producing similar goods as materials or industrials. Over time, the green energy return spillovers vary according to global events and economic/financial uncertainties. Spillovers rose during the pandemic crisis, illustrating the "fly to liquidity" mechanism. |
| Keywords: | Marchés financiers, Indices boursiers verts, Indices sectoriels, Analyse de réseaux |
| JEL: | C32 G15 Q42 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2021-24&r= |
| By: | Glenk, Gunther; Meier, Rebecca; Reichelstein, Stefan |
| Abstract: | The pace of the global decarbonization process is widely believed to hinge on the rate of cost improvements for clean energy technologies, in particular renewable power and energy storage. This paper adopts the classical learning-by-doing framework of Wright (1936), which predicts that cost will fall as a function of the cumulative volume of past deployments. We first examine the learning curves for solar photovoltaic modules, wind turbines and electrolyzers. These estimates then become the basis for estimating the dynamics of the life-cycle cost of generating the corresponding clean energy, i.e., electricity from solar and wind power as well as hydrogen. Our calculations point to significant and sustained learning curves, which, in some contexts, predict a much more rapid cost decline than suggested by the traditional 80% learning curve. Finally, we argue that the observed learning curves for individual clean energy technologies reinforce each other in advancing the transition to a decarbonized energy economy. |
| Keywords: | learning-by-doing,renewable energy,energy storage,electrolysis,levelized cost of energy |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:21054&r= |
| By: | Schneider, Susan M; Sanguinetti, Angela |
| Abstract: | A major cause of global climate change, human behavior has long been recognized as an essential part of the solution as well. Behavior change methods in turn rely in part on associative learning principles. Some learning principles, such as positive reinforcement and delay discounting, are already integrated into energy research and interventions. However, others remain underutilized. In this paper, we review selected learning principles, suggesting how they can enhance both our understanding of the behavioral challenges and our effectiveness in addressing them. We seek to interest and involve researchers and practitioners in a variety of energy and sustainability specializations. |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2021–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt02n7j1cn&r= |
| By: | Chau, Nancy H.; Garip, Filiz; Oritz-Bobea, Ariel |
| Abstract: | We study the self-selection of migrants at crossing locations along the Mexican-U.S. border distinguished by stark differences in physiography and border enforcement intensities. We model the triggers of hazardous crossings, and reveal self-selection patters that are alternative-specific: individuals with low economic prospects at origin communities are favorably selected at high-risk, high-reward crossing locations. Using comprehensive migrant journey level trajectories from the Mexican Migration Project (1980-2005), and identification based on enforcement reforms, community-level trade and weather shocks, as well as migrant-specificc characteristics, we estimate a McFadden choice model of border crossing. Results confirm the negative-selection of migrants in high-risk, high-likelihood of success border crossing locations, in addition to nuanced variations when economic shocks are idiosyncratic rather than permanent. The implications of these observations on the effectiveness of border walls and trade walls in mediating cross-border migration flows are also discussed. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2021–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cudaeb:312520&r= |
| By: | Rimmer, Matthew (Queensland University of Technology) |
| Abstract: | EXECUTIVE SUMMARY The Productivity Commission is to be congratulated for producing a comprehensive discussion paper on the complex and tangled topic of the right to repair. Taking an interdisciplinary, holistic approach to the issue, the Productivity Commission shows a strong understanding that the topic of the right to repair is a multifaceted policy issue. Its draft report covers the fields of consumer law, competition policy, intellectual property, product stewardship, and environmental law. The Productivity Commission displays a great comparative awareness of developments in other jurisdictions in respect of the right to repair. The policy body is also sensitive to the international dimensions of the right to repair – particularly in light of the United Nations Sustainable Development Goals. The Productivity Commission puts forward a compelling package of recommendations, which will be useful in achieving law reform in respect of the right to repair in Australia. |
| Date: | 2021–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:p48bq&r= |
| By: | Fernández-Amador, Octavio; Francois, Joseph; Oberdabernig, Doris; Tomberger, Patrick |
| Abstract: | Abstract: Understanding the global energy network and the developments of energy efficiency is key to advance energy regulation and fight climate change. We develop a global panel dataset on energy usage inventories based on territorial production, final production and consumption over 1997-2014. We apply structural decomposition analysis to isolate energy efficiency changes and study the effectiveness of the European Union Energy Services Directive (2006/32/EC) on energy efficiency. High-income regions are net-importers of embodied energy and use a larger share of non-renewable energy than developing countries. The effectiveness of the Directive is mixed. The different ambition of national energy policies of the European Union members and some complementarity in supply chains underlie the different dynamics found. High-income countries share efficiency gains and changes in the mix of energy sources. These trends are not specific to the European Union. Energy policies in high-income countries are less effective for energy footprints. Our findings are indicative of energy leakage. Energy regulation should account for global supply chains and target energy footprints. |
| Keywords: | Energy usage, energy efficiency, energy footprints, renewable energy, MRIO analysis, Structural Decomposition Analysis, EU Energy Services Directive. Click on the link below to read the full paper. |
| Date: | 2021–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:wti:papers:1324&r= |
| By: | Lupano, Jorge A. |
| Abstract: | A pesar de que, según las clasificaciones tradicionales basadas en el PIB per cápita, la mayoría de los países de América Latina y el Caribe se consideran de renta media, la región se caracteriza por presentar marcadas brechas económicas y sociales entre países, territorios y comunidades, así como entre las trayectorias laborales y salariales de los ciudadanos. La superación de dichas brechas estructurales es fundamental para el proceso de desarrollo y debe llevarse a cabo de manera urgente y focalizada. En este documento, se revisa la bibliografía relativa al análisis de brechas estructurales publicada a partir de 2010 y se presenta una recomendación metodológica para la selección y análisis de las principales brechas estructurales identificadas y consideradas relevantes en la experiencia académica y gubernamental reciente. Asimismo, se propone a los Gobiernos de la región una metodología para la elaboración de un diagnóstico del desarrollo basado en el análisis de brechas estructurales, junto con un conjunto de indicadores estadísticos accesibles y relevantes para la medición y el seguimiento de las brechas y su impacto sobre el desarrollo, de entre los cuales los países pueden seleccionar los más adecuados para sus circunstancias específicas. |
| Keywords: | DESARROLLO ECONOMICO, CRECIMIENTO ECONOMICO, DESARROLLO SOCIAL, MEDICION, CEPAL, INDICADORES DEL DESARROLLO, METODOLOGIA ESTADISTICA, OBJETIVOS DE DESARROLLO SOSTENIBLE, ORGANIZACIONES ESTADISTICAS, SERVICIOS ESTADISTICOS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, SOCIAL DEVELOPMENT, MEASUREMENT, ECLAC, DEVELOPMENT INDICATORS, STATISTICAL METHODOLOGY, SUSTAINABLE DEVELOPMENT GOALS, STATISTICAL ORGANIZATIONS, STATISTICAL SERVICES |
| Date: | 2021–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:47057&r= |
| By: | Poveda Bonilla, Rafael |
| Abstract: | Este estudio contribuye a la comprensión de las políticas, regulaciones e incentivos que Chile ha desplegado para fomentar la agregación de valor en los eslabones de la cadena de producción del litio, por un lado, y la innovación y el desarrollo de las capacidades tecnológicas apalancadas en la exploración y explotación de sus recursos minerales y energéticos, por otro. Para ello, se plantearon los siguientes objetivos: entender el contexto económico, político e institucional en el que se desenvuelve la innovación y la agregación de valor en la cadena productiva del litio; determinar las lecciones aprendidas del proceso de gobernanza de la innovación y agregación de valor; e identificar desafíos de gobernanza y políticas públicas. En particular, este documento examina la estrategia adoptada por el Gobierno de Chile, a través de la Corporación de Fomento de la Producción (CORFO), en el diseño y ejecución de varios llamamientos internacionales para la atracción de fabricantes especializados en alguno de los eslabones aguas abajo del litio y la creación de institutos o centros de innovación, investigación y desarrollo de tecnologías aplicadas a la energía solar, la minería sostenible y el litio. |
| Keywords: | RECURSOS NATURALES, RECURSOS MINERALES, METALES, DESARROLLO ECONOMICO, BATERIAS AL LITIO, VEHICULOS ELECTRICOS, VALOR, LEYES Y REGLAMENTOS, INVESTIGACION Y DESARROLLO, INNOVACIONES, PRODUCTIVIDAD, NATURAL RESOURCES, MINERAL RESOURCES, METALS, ECONOMIC DEVELOPMENT, LITHIUM CELLS, ELECTRIC VEHICLES, VALUE, LAWS AND REGULATIONS, RESEARCH AND DEVELOPMENT, INNOVATIONS, PRODUCTIVITY |
| Date: | 2021–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:47060&r= |
| By: | Alex Cobham (Tax Justice Network); Javier Garcia-Bernardo (Tax Justice Network & Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Petr Jansky (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Miroslav Palansky (Tax Justice Network & Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic) |
| Abstract: | Illicit financial flows (IFFs) threaten countries´ ability to achieve the Sustainable Development Goals (SDGs). Progressing on the IFFs target is thus crucial, as is the ability to measure achieved progress. In this paper we explore how to best statistically measure tax avoidance by multinational corporations (MNCs) as the SDGs IFFs target. Our main research question is how the best available methods for the statistical measurement of tax avoidance by MNCs reconcile with the Balance of Payments (BoP) statistics. We answer the research question using a combination of approaches, arriving at three main findings. First, we show that the three leading methods for estimating tax avoidance by MNCs are closely related to each other, theoretically as well as empirically. Second, the profit misalignment method applied to the country-by-country reporting (CBCR) data of large MNCs emerges as the most suitable method from a critical review of existing approaches and a range of available statistical data sources. Third, in their current state the BoP statistics are not suitable for estimating tax avoidance by MNCs for many countries due lacking country coverage and missing data. On the basis of our findings, we recommend piloting the use of confidential MNC-level CBCR data to estimate tax avoidance by MNCs as the SDGs IFFs target. |
| Keywords: | illicit financial flows; multinational corporations; tax avoidance; balance of payments; country-by-country reporting; Sustainable Development Goals |
| JEL: | H25 H26 O23 O24 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2021_24&r= |
| By: | Xunpeng Shi (Australia–China Relations Institute, University of Technology Sydney, Australia); Tsun Se Cheong (Department of Economics and Finance, The Hang Seng University of Hong Kong, Hong Kong); Michael Zhou (Australia–China Relations Institute, University of Technology Sydney, Australia) |
| Abstract: | This study examines the debates on supply chain resilience and the economic and emissions impact of supply chain rerouting using Australia and China trade as an example. The estimations demonstrate that, in both export and import cases, a trade embargo between Australia and China, despite being compensated by alternative supply chains, will cause gross domestic product loss and emissions increases for both countries. Moreover, even if all other countries gain from the markets left by China, many of them suffer from overall gross domestic product loss and emissions increase. The findings that ASEAN and China may also suffer from an Australia–China trade embargo, despite a gain in trade volume, suggests that no country should add fuel to the fire. The results suggest that countries need to defend rules-based trading regimes and continuously promote regional economic integration. |
| Keywords: | COVID-19; supply chain; global value chain; economic integration; Australia; China |
| JEL: | F18 Q56 |
| Date: | 2021–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2021-20&r= |
| By: | Marc Fleurbaey (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, CNRS - Centre National de la Recherche Scientifique); Stéphane Zuber (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, CNRS - Centre National de la Recherche Scientifique, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | How to evaluate and compare social prospects when there may be a risk on i) the actual allocation people will receive; ii) the existence of these future people; and iii) their preferences? This paper investigate this question that may arise when considering policies that endogenously affect future people, for instance climate policy. We show that there is no social ordering that meets minimal requirements of fairness, social rationality, and respect for people's ex ante preferences. We explore three ways to avoid this impossibility. First, if we drop the ex ante Pareto requirement, we can obtain fair ex post criteria that take an (arbitrary) expected utility of an equally-distributed equivalent level of well-being. Second, if the social ordering is not an expected utility, we can obtain fair ex ante criteria that assess uncertain individual prospects with a certainty-equivalent measure of well-being. Third, if we accept that interpersonal comparisons rely on VNM utility functions even in absence of risk, we can construct expected utility social orderings that satisfy of some version of Pareto ex ante. |
| Keywords: | Fairness,social risk,intergenerational equity |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-03289160&r= |
| By: | Majah-Leah V. Ravago (Department of Economics, Ateneo de Manila University); Raul V. Fabella (School of Economics, University of the Philippines); Karl Robert L. Jandoc (School of Economics, University of the Philippines); Renzi G. Frias (School of Statistics, University of the Philippines); J. Kathleen P. Magadia (Gas Policy Development Project, UPSCRFI) |
| Abstract: | One sizable group of energy users in the Philippines is the collection of firms in the Special Economic Zones (SEZs). The production process among many of the firms in the SEZs includes heating, which currently uses the more expensive and less environment-friendly diesel or liquefied petroleum gas as fuel. Thus, natural gas is a potential cost-competitive and cleaner substitute for the feedstock currently used in both heating process and electricity requirements of firms in SEZs. Our objective in this study is to assess the likelihood of firms to switch to natural gas and determine the profile of power and fuel use among firms in manufacturing and agro industrial SEZs. We find that the extent of knowledge about natural gas and their production technology process are the primary determinants of the likelihood to switch. Particularly, the knowledge that natural gas is a cost-competitive alternative along with the use of heating in the production process are critical to increasing a firm’s probability of switching. Hence, energy-intensive manufacturing firms that use more expensive fuel sources such as diesel for heating are more likely to switch to natural gas. These results also help shed light on facilitating the efficient transition away from less environment-friendly fuels to relatively cleaner natural gas and renewable sources. |
| Keywords: | Easterlin Paradox, Easterlin Hypothesis, Happiness-Income Model, Happiness Survey Question, Happy Poor |
| JEL: | A10 Y20 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:agy:dpaper:202105&r= |
| By: | Corinna Ghirelli (Banco de España); Andrea González (Banco de España); José Luis Herrera (Banco de España); Samuel Hurtado (Banco de España) |
| Abstract: | We estimate the effective reproduction number (Rt) of the current Covid-19 pandemic, with US daily infections data between February and September of 2020, at the county level. This is then used to estimate the effect of weather and mobility on the spread of the pandemic. We find a strong and significant effect of the weather: lower temperaturas are associated with a higher Rt, and this effect is bigger at temperatures below 0ºC. At low temperatures, precipitations are also associated with a higher Rt. We also find that mobility reductions related to certain types of locations (retail and recreation, transit stations, and workplaces) are effective at reducing Rt, but it is an increase of the time spent in parks that helps reduce the spread of the pandemic. The negative effect of increased general mobility is bigger in counties with higher population density, worse numeracy and literacy PIAAC scores, or a lower share of employment in the services sector. Quantitatively, our estimates imply that a 20ºC fall in temperatures from summer to winter would increase Rt by +0.35, which can be the difference between a wellcontrolled evolution and explosive behavior; and, if this can’t be neutralized through general improvements in the fight to stop the pandemic, the additional reduction in mobility that would be needed to compensate for this would be equivalent to returning, from the more relaxed levels observed in the summer, back to the strictest mobility reductions recorded in the US in April. |
| Keywords: | pandemic, Covid-19, coronavirus, temperature, weather, mobility, panel data |
| JEL: | I18 C23 I12 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2109&r= |
| By: | Tom Krebs (Universität Mannheim) |
| Abstract: | Die vorliegende Studie entwickelt eine moderne Wasserstoffstrategie für Deutschland. Der Kern der hier entwickelten Wasserstoffstrategie ist ein öffentliches Wasserstoffpaket, das weit über die aktuellen Pläne der Bundesregierung hinausgeht. Das vorgeschlagene Wasserstoffpaket besteht aus sechs Maßnahmen und hat ein Finanzvolumen von insgesamt 100 Mrd. Euro bis 2030 (jährlich 10 Mrd. Euro). Drei der sechs Maßnahmen betreffen den Ausbau der öffentlichen Infrastruktur und drei Maßnahmen können der Industriepolitik zugeordnet werden. Aus ökonomischer und finanzpolitischer Sicht ist eine Umsetzung großer Teile des Wasserstoffpakets mittels öffentlicher Unternehmen sinnvoll. Darüber hinaus zeigt die vorliegende Studie, dass nur eine moderne Klimapolitik erfolgreich Klimaschutz mit wirtschaftlichem Wohlstand verknüpfen kann. Eine solche Klimapolitik basiert – wie auch das vorgeschlagene Wasserstoffpaket – auf der Idee des modernen Staates. Der moderne Staat schafft die notwendige Infrastruktur, damit die klimafreundlichen Zukunftsprodukte (grüner Wasserstoff) von den Produktionsstätten zu den Abnehmern transportiert werden können. Zudem betreibt er strategische Industriepolitik, um Planungssicherheit zu schaffen und gezielt die Investitionen in klimafreundliche Zukunftstechnologien anzuschieben. |
| Keywords: | Wasserstoff, Klima, Infrastruktur, staatliche Investitionen |
| JEL: | H23 H54 L52 L95 L98 Q41 Q42 Q54 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:agz:wpaper:2101&r= |
| By: | Kwame Adjei-Mantey (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University); Peter Quartey (Institute of Statistical, Social & Economic Research (ISSER), University of Ghana) |
| Abstract: | This study investigates the impact of a clean cooking intervention on primary fuel choice and on households' willingness to pay for an improved LPG distribution model in Ghana. Using data obtained via a survey of 904 households in two beneficiary districts, we found that the intervention led to higher LPG usage. The program increases the probability of households choosing LPG as a primary cooking fuel by 24% and the rate of use of LPG among households by 33%. Furthermore, an analysis of willingness to pay shows that delivery preference is not statistically different between beneficiary and control groups. The distance to refill the cylinder significantly affects LPG usage and willingness to pay. A policy that brings LPG refill closer to households and reduces the time and money cost of accessing a refill station is key to increasing the adoption of LPG as the primary cooking fuel. |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:2120&r= |
| By: | Edoh Y. Amiran; Joni S. James Charles |
| Abstract: | The consumers' willingness to pay plays an important role in economic theory and in setting policy. For a market, this function can often be estimated from observed behavior -- preferences are revealed. However, economists would like to measure consumers' willingness to pay for some goods where this can only be measured through stated valuation. Confirmed convergence of valuations based on stated preferences as compared to valuations based on revealed preferences is rare, and it is important to establish circumstances under which one can expect such convergence. By building a simple probabilistic model for the consumers' likelihood of travel, we provide an approach that should make comparing stated and revealed preferences easier in cases where the preference is tied to travel or some other behavior whose cost can be measured. We implemented this approach in a pilot study and found an estimate of willingness to pay for visiting an environmentally enhanced recreational site based on actual travel in good agreement with an estimate based on a survey using stated preferences. To use the probabilistic model we used population statistics to adjust for the relevant duration and thus compare stated and revealed responses. |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2107.14343&r= |
| By: | Hirotaka Kumamaru (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University) |
| Abstract: | This study investigates the impact of Japan's recycling legislation on the usage of recycled materials in the production process of primary plastic products. By employing a difference-in-differences approach, we examine whether the recycled content of primary plastic products increased after the implementation of the Container and Packaging Recycling Law (CPR Law) in Japan. The results suggest that the usage of recycled plastics doubled and the usage of recycled plastics per plastic product increased by 1% after the implementation of the law. Meanwhile, the use of virgin plastic materials, such as polyethylene, polypropylene, and vinyl chloride, per plastic product decreased by 3% on average. These results suggest that the CPR Law helped shift inputs from virgin plastics to recycled plastic materials, although the size of the impact is small. To promote the use of recycled plastic materials further, policy interventions should directly incentivize producers to increase recycled content. |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:2119&r= |
| By: | Salanié, François; Zaporozhets, Vera |
| Abstract: | We analyze the problem of allocating irrigation water among het- erogenous farmers when water supply is stochastic. If farmers are risk-neutral, a spot market for water is e¢ cient; while the oft-used uniform rationing system is ine¢ cient, both ex-ante and ex-post. In- deed, we show that it leads farmers to overexpose to risk, thus making shortages more severe and more frequent in case of drought. We pro- pose instead a regulation by priority classes extending Wilson (1989), and we derive an e¢ ciency result. We characterize the set of farmers that would win or loose from such a reform. We also argue that a system of priority classes may be preferred to a spot market system, because scarcity is easier to manage ex-ante than ex-post, and because this system facilitates the supply of insurance to risk-averse agents. |
| JEL: | Q15 Q25 D47 |
| Date: | 2021–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:125835&r= |