nep-env New Economics Papers
on Environmental Economics
Issue of 2022‒01‒10
67 papers chosen by
Francisco S. Ramos
Universidade Federal de Pernambuco

  1. Climate and environmental risks: measuring the exposure of investments By Enrico Bernardini; Johnny Di Giampaolo; Ivan Faiella; Marco Fruzzetti; Simone Letta; Raffaele Loffredo; Davide Nasti
  2. Climate-Related Stress Testing: Transition Risk in Colombia By Can Sever; Manuel Perez-Archila
  3. The need for local governance of global commons: The example of blue carbon ecosystems By Merk, Christine; Grunau, Jonas; Riekhof, Marie-Catherine; Rickels, Wilfried
  4. Quantifying Environmental Impacts from Concrete Production, While Accounting for Data Variability and Uncertainty By Cunningham, Patrick R.; Miller, Sabbie A.
  5. Benchmarking GHG Emissions from California Concrete and Readily Implementable Mitigation Methods By Cunningham, Patrick R.; Miller, Sabbie A.
  6. The low-carbon transition, climate commitments and firm credit risk By Carbone, Sante; Giuzio, Margherita; Kapadia, Sujit; Krämer, Johannes Sebastian; Nyholm, Ken; Vozian, Katia
  7. The impacts of climate change mitigation on work for the Austrian economy By Maja Hoffmann; Clive L. Spash
  8. A Comprehensive Climate Mitigation Strategy for Mexico By Mr. Mehdi Raissi; Ian Parry; Koralai Kirabaeva; Mr. Simon Black; Karlygash Zhunussova
  9. Addressing sustainability challenges and Sustainable Development Goals via Smart Specialisation. Towards a theoretical and conceptual framework By Michal Miedzinski; Katerina Ciampi Stancova; Monika Matusiak; Lars Coenen
  10. Can today's and tomorrow's world uniformly gain from carbon taxation? By Laurence J. Kotlikoff; Felix Kubler; Andrey Polbin; Simon Scheidegger
  11. Natural Disasters and Financial Stress: Can Macroprudential Regulation Tame Green Swans? By Pauline AVRIL; Grégory LEVIEUGE; Camélia TURCU
  12. Transformation of Engineering Tools to Increase Material Efficiency of Concrete By Ichimaru Watanabe, Sonoko; Kamau-Devers, Kanotha; Cunningham, Patrick R.; Miller, Sabbie A.
  13. Digital nutrient management decision support and environmental footprints of maize intensification: A Randomized evaluation from Nigeria By Oyinbo, Oyakhilome
  14. Monitoring the Climate Impact of Fiscal Policy - Lessons from Tracking the COVID-19 Response By Ms. Katja Funke; Guohua Huang; Khaled Eltokhy; Yujin Kim; Genet Zinabou
  15. Challenging pollution and the balance problem from rare earth extraction: how recycling and environmental taxation matter By Bocar Samba Ba; Pascale Combes Motel; Sonia Schwartz
  16. Carbon Boards and Transition Risk: Explicit and Implicit exposure implications for Total Stock Returns and Dividend Payouts By Matteo Mazzarano; Giovanni Guastella; Stefano Pareglio; Anastasios Xepapadeas
  17. Proceedings of the 4th Symposium on Agri-Tech Economics for Sustainable Futures, 20th – 21st September 2021, Harper Adams University, Newport, United Kingdom By Behrendt, Karl; Paparas, Dimitrios
  18. The geography of environmental innovation: A critical review and agenda for future research By Losacker, Sebastian; Hansmeier, Hendrik; Horbach, Jens; Liefner, Ingo
  19. Material Efficiency as a Means to Lower Environmental Impacts from Concrete By Ichimaru Watanabe, Sonoka; Kamau-Devers, Kanotha; Cunningham, Patrick; Miller, Sabbie A.
  20. What if working from home will stick? Distributional and climate impacts for Germany By Marion Bachelet; Matthias Kalkuhl; Nicolas Koch
  21. Managing spatial linkages and geographic heterogeneity in dynamic models with transboundary pollution By Raouf Boucekkine; Giorgio Fabbri; Salvatore Federico; Fausto Gozzi
  22. How Carbon Dioxide Emissions Would Respond to a Tax or Allowance Price: An Update: Working Paper 2021-16 By Ron Gecan
  23. Sustainability Manifesto for Financial Products: Carbon Equivalence Principle By Chris Kenyon; Mourad Berrahoui; Andrea Macrina
  24. The UK Clean Air Act, Black Smoke, and Infant Mortality By Fukushima, Nanna
  25. Social incentive factors in interventions promoting sustainable behaviors: A meta-analysis. By Phu Nguyen-Van; Anne Stenger; Tuyen Tiet
  26. Green gifts from abroad? FDI and firms' green management By Kannen, Peter; Semrau, Finn Ole; Steglich, Frauke
  27. Cassandra's Curse: A Second Tragedy of the Commons By Colo, Philippe
  28. Energy Transition Metals By Mr. Andrea Pescatori; Lukas Boer; Martin Stuermer
  29. Who benefits really from phasing out palmoil-based biodiesel in the EU? By Delzeit, Ruth; Heimann, Tobias; Schünemann, Franziska; Söder, Mareike
  30. Policy-Induced Innovation in Clean Technologies: Evidence from the Car Market By Rik L. Rozendaal; Herman R. J. Vollebergh
  31. Do female parliamentarians improve environmental quality? Cross-country evidence By Simplice A. Asongu; Raufhon Salahodjaev
  32. Oeffentliche Finanzierung von Klima- und anderen Zukunftsinvestitionen By Tom Krebs; Janek Steitz; Patrick Greichen
  33. Women empowerment and environmental sustainability in Africa By Elvis Dze Achuo; Simplice A. Asongu; Vanessa S. Tchamyou
  34. Do Sectoral Growth Promote CO2 Emissions in Pakistan? Time Series Analysis in Presence of Structural Break By Ali, Amjad; Audi, Marc; ŞENTÜRK, İsmail; Roussel, Yannick
  35. Climate reputation risk and abnormal returns in the stock markets: a focus on large emitters By Giovanni Guastella; Matteo Mazzarano; Stefano Pareglio; Anastasios Xepapadeas
  36. Is information enough? The case of Republicans and climate change By Monika Pompeo; Nina Serdarevic
  37. Inequality and the Environment: The Economics of a Two-Headed Hydra By Moritz A. Drupp; Ulrike Kornek; Jasper N. Meya; Lutz Sager
  38. The Quadrilemma of a Small Open Circular Economy Through a Prism of the 9R Strategies By Patrick Grüning; Justina Banionienė; Lina Dagilienė; Michael Donadelli; Marcus Jüppner; Renatas Kizys; Kai Lessmann
  39. The share of renewable electricity in electric vehicle charging in Europe is higher than grid mix By Preuß, Sabine; Kunze, Robert; Zwirnmann, Jakob; Meier, Jonas; Plötz, Patrick; Wietschel, Martin
  40. World Corporate Top R&D investors: Paving the way to carbon neutrality By Sara Amoroso; Leonidas Aristodemou; Chiara Criscuolo; Antoine Dechezleprete; Helene Dernis; Nicola Grassano; Laurent Moussiegt; Lorenzo Napolitano; Daisuke Nawa; Mariagrazia Squicciarini; Alexander Tuebke
  41. Les défis et paradoxes de la tansition énergétique By Xavier GALIEGUE
  42. Natural Disasters and Fianacial Stress Can Macroprudential Regulation Tame Green Swans? By Pauline Avril; Gregory Levieuge; Camelia Turcu
  43. Herd behavior in the choice of motorcycles: Evidence from Nepal By Nilkanth Kumar; Nirmal Kumar Raut; Suchita Srinivasan
  44. A dispatching model based exploration of the post-nuclear phase-out Belgian energy mix By MILIS, Kevin; STÜBER, Magdalena; BRAET, Johan; SPRINGAEL, Johan
  45. Women's parliamentary representation and environmental quality in Africa: Effects and transmission channels By Edmond Noubissi; Loudi Njoya
  46. Near-term trends in China's coal consumption By Lin, J; Fridley, D; Lu, H; Price, L; Zhou, N
  47. Economic Implications of Field Size for Autonomous Arable Crop Equipment By Al-Amin, A.K.M. Abdullah; Lowenberg-DeBoer, James; Franklin, Kit; Behrendt, Karl
  48. An Input-Output Hydro-Economic Model to Assess the Economic Pressure on Water Resources in Tuscany By Benedetto Rocchi; Gino Sturla
  49. Is it really a win win situation: Henna (Lawsonia inermis L.) farming for rural sustainability and economic security in arid zone By Singh, Dheeraj; Chaudhary, M.K.; Kumar, Chandan; Kudi, B.R.; Dudi, Aishwarya
  50. Aggregation of Experts Opinions and the Assessment of Tipping Points. Catastrophic Forecasts for Higher Temperature Changes By Marcello Basili; Federico Crudu
  51. Seven Decades of Changing Seasonal Land Use for Rice Production in Bangladesh, 1947-2019: Trends, Patterns and Implications By Mohammad Alauddin; Clement A Tisdell; Md Abdur Rashid Sarker
  52. What's in it for me? Self-interest and preferences for distribution of costs and benefits of energy efficiency policies By Fanghella, Valeria; Faure, Corinne; Guetlein, Marie-Charlotte; Schleich, Joachim
  53. Financial Inclusion: Theory and Policy guide for fragile economies. By Tweneboah Senzu, Emmanuel
  54. Private exploitation of the North-Western Sahara Aquifer System By Amine Chekireb; Julio Goncalves; Hubert Stahn; Agnes Tomini
  55. A Scenario Analysis of the Potential Effects of Decarbonization on the Profitability of the Energy-Intensive and Natural-Resource-Based Industries By Andersson, Fredrik N. G.
  56. Ex-post analysis of the crop diversification policy ofthe CAP Greening in France By Alexandre Sauquet
  57. The Effects of COVID-19 Vaccines on Economic Activity By Davide Furceri; Mr. Pragyan Deb; Siddharth Kothari; Nour Tawk; Daniel Jimenez; Mr. Jonathan David Ostry
  58. Les stratégies de développement des énergies renouvelables dans la région MENA : Etude comparative et couloirs de développement By Myriam Ben Saad; Amandine Gnonlonfin; Naceur Khraief; Michel Dimou
  59. The role of the Australian financial sector in supporting a sustainable and inclusive recovery By Christine Lewis; Ben Westmore
  60. The strategic allocation and sustainability of central banks' investment By Davide Di Zio; Marco Fanari; Simone Letta; Tommaso Perez; Giovanni Secondin
  61. Improving Our Understanding of Transport Electrification Benefits for Disadvantaged Communities By Bush, Kristen M.; Lozano, Mark T.; Niemeier, Deb; Kendall, Alissa
  62. Gérer les déchets By François Facchini
  63. Transition écologique et compétences : Analyse des offres d'emploi en ligne By Antoine Bonleu
  64. The emergence of a global innovation system – a case study from the water sector By Jonas Heiberg; Bernhard Truffer
  65. COVID-19, Klimawandel und Konjunkturpakete By Angela Köppl; Stefan Schleicher; Margit Schratzenstaller; Karl W. Steininger
  66. COVID-19, Household Resilience, and Rural Food Systems: Evidence from Southern and Eastern Africa By Upton, Joanna; Tennant, Elizabeth; Fiorella, Kathryn J.; Barrett, Christopher B.
  67. Developing Hydrogen Infrastructure and Demand: An Evolutionary Game and the Case of China By Zhao, Tian; Liu, Zhixin; Jamasb, Tooraj

  1. By: Enrico Bernardini (Bank of Italy); Johnny Di Giampaolo (Bank of Italy); Ivan Faiella (Bank of Italy); Marco Fruzzetti (Bank of Italy); Simone Letta (Bank of Italy); Raffaele Loffredo (Bank of Italy); Davide Nasti (Bank of Italy)
    Abstract: This paper presents a number of methodologies for assessing the climate risk exposure of several financial asset classes. Regarding government bonds, the paper proposes using public information; in order to develop forward-looking measures of countries’ risk exposure, the paper uses historical trends combined with governments’ climate commitments and the scenarios developed by the Network for Greening the Financial System. With regard to private sector issuers, the paper finds quite a high coverage and correlation amongst the carbon emissions data from different providers, while the divergences in the data for other environmental indicators are still significant. Finally, the paper shows that the application of sustainability criteria in the Bank of Italy’s investment strategy delivered a non-negligible reduction in the exposure to the climate and environmental risks of the portfolios.
    Keywords: sustainable finance, investments, climate risks, environmental risks
    JEL: E58 G11 Q56
    Date: 2021–12
  2. By: Can Sever; Manuel Perez-Archila
    Abstract: This paper builds a framework to quantify the financial stability implications of climate-related transition risk in Colombia. We explore risks imposed on the banking system based on scenarios of an increase in the domestic carbon tax by using bank- and firm-level data. Focusing on the deterioration of firms’ balance sheets and the exposure of banks to different sectors, we assess the extent to which such policy shock would transmit from nonfinancial firms to the banking system. We observe that sectors are affected unevenly by a higher carbon tax. Agriculture, manufacturing, electricity, wholesale and retail trade, and transportation sectors appear to be the most important in the transmission of the risk to the banking system. Results also suggest that a large increase in the carbon tax can generate significant but likely manageable financial stability risks, and that a gradual increase in the carbon tax to meet a higher target over several years could be preferable in terms of financial risks. A gradual increase would also have the benefit of allowing for a smoother adjustment to higher carbon tax for stakeholders.
    Keywords: Climate crisis, climate change, transition risk, carbon emission, carbon tax, green economy, environmental taxes, banking stress, stress testing, financial stability, Colombia
    Date: 2021–11–05
  3. By: Merk, Christine; Grunau, Jonas; Riekhof, Marie-Catherine; Rickels, Wilfried
    Abstract: To limit global warming to 1.5êC, vast amounts of CO2 will have to be removed from the atmosphere via Carbon Dioxide Removal (CDR). Enhancing the CO2 sequestration of ecosystems will require not just one approach but a portfolio of CDR options, including so-called nature-based approaches alongside CDR options that are perceived as more technical. Creating a CDR 'supply curve' would however imply that all CDR approaches are considered to be perfect substitutes. The various co-benefits of nature-based CDR approaches militate against this as their common-pool resource characteristics could result in undesired outcomes for CO2-only incentive schemes. We discuss this aspect of nature-based solutions in connection with the enhancement of blue carbon ecosystems (BCE) such as mangrove or seagrass habitats. Enhancing BCEs can indeed contribute to CO2 sequestration, but the value of their carbon storage is low compared to the overall contribution of their ecosystem services to wealth. Furthermore, they are de facto open-access regimes with unclear property rights. Hence, payment schemes that only compensate BCE carbon sequestration could create tradeoffs at the expense of other important ecosystem services and might not result in socially optimal outcomes. Accordingly, one chance for preserving and restoring BCEs lies in the consideration of all services in potential compensation schemes for local communities. Also, local contexts, management structures, and benefit-sharing rules are crucial factors to be taken into account when setting up international payment schemes to support the use of BCEs and other nature- or ecosystem-based CDR. However, regarding these options as the only hope of achieving more CDR will very probably not bring about the desired outcome, either for climate mitigation or for ecosystem preservation. On the other hand, unhalted degradation will make matters worse due to the large amounts of stored carbon that would be released. Hence, countries committed to climate mitigation in line with the Paris targets should not hide behind vague pledges to enhance natural sinks for removing atmospheric CO2 but commit to scaling up engineered CDR.
    Keywords: Carbon Dioxide Removal,nature-based solutions,blue carbon ecosystems,common pool resources,governance,property rights
    JEL: K33 Q54 Q58
    Date: 2021
  4. By: Cunningham, Patrick R.; Miller, Sabbie A.
    Abstract: Concrete is the second most-used material on earth, surpassed only by water. Concrete is used in construction of roads, bridges, ports, and buildings. Concrete is also responsible for over 8% of annual anthropogenic greenhouse gas (GHG) emissions globally. As population and urbanization increase and existing infrastructure deteriorates, demand for production of concrete will increase, and with it, the environmental burdens from its production. The models used to determine environmental impacts of producing concrete have considerable uncertainty and variability. This makes it challenging to identify the most effective means of mitigating these burdens. These challenges are exacerbated by the fact that the key drivers for air pollutant emissions and GHG emissions vary. While many are linked to the energy resources used in the production of cement, there are also notable air pollutant emissions from quarrying practices. Improved understanding of the environmental impacts from producing concrete and the probability of mitigating such impacts will allow decision makers to examine drivers with the greatest likelihood of yielding meaningful emissions reductions. Researchers at the University of California, Davis used an environmental impact assessment methodology to evaluate impacts throughout each stage of concrete production, while accounting for data uncertainty and variability. This methodology permits assessment of the probability of reducing GHG emissions through commonly discussed mitigation methods, as well as the probability of potential co-beneficial reductions or unintended increases in air pollutant emissions. View the NCST Project Webpage
    Keywords: Engineering, Concrete, greenhouse gas emissions, environmental impact assessment, emissions mitigation methods
    Date: 2021–12–01
  5. By: Cunningham, Patrick R.; Miller, Sabbie A.
    Abstract: The demand for concrete, which is conventionally composed of granular rocks (aggregates), water, and Portland cement (as well as other additives depending on desired performance) continues to grow. The manufacturing of Portland cement leads to notable greenhouse gas (GHG)emissions, which has driven interest in alternative concrete mixture designs, cement production processes, and other emissions mitigation strategies. To demonstrate the efficacy of such mitigation strategies, environmental impact assessments are commonly performed. However, examination of the probability that a reduction in GHG emissions will occur given known limitations on data quality and variability in data remains poorly studied. Additionally, the common practice of focusing primarily on GHG emissions can lead to selection of emissions mitigation methods with unintended consequences, such as increases in other environmental impacts. This work models 12 potential concrete mixtures capable of achieving the same concrete strength and three potential GHG emissions mitigation strategies: changing kiln fuel mix, changing electricity mix, and using a carbon capture and storage (CCS) system. Focusing on GHG and air pollutant emissions, both deterministic comparisons of mean emissions as well as the probability that the alternative mixtures and mitigation strategies can reduce emissions is examined. This work shows that, even when mitigation strategies are employed, GHG emissions are correlated to the cement content of the mixture. Additionally, as modeled, CCS leads to mean reduction in GHG emissions of over 80% for all mixtures, but also led to increases in other emissions (i.e., NOX, SOX, VOC, CO, PM10, and PM2.5). The probability of a reduction in emissions were greatest for GHGs due to the tighter distribution in emissions modeled. Probabilities for reducing other impacts, such as PM10 and PM2.5 emissions, could be improved with better data quality. This work demonstrates how concurrent environmental impact assessment across several impact categories with consideration for uncertainty and variability can be a robust tool for evaluating various mixture designs and environmental impact mitigation strategies. View the NCST Project Webpage
    Keywords: Engineering, Concrete, Greenhouse Gas Emissions, Environmental Impact Assessment, Emissions Mitigation Methods
    Date: 2021–12–01
  6. By: Carbone, Sante; Giuzio, Margherita; Kapadia, Sujit; Krämer, Johannes Sebastian; Nyholm, Ken; Vozian, Katia
    Abstract: This paper explores how the need to transition to a low-carbon economy influences firm credit risk. It develops a novel dataset which augments data on firms’ green-house gas emissions over time with information on climate disclosure practices and forward-looking emission reduction targets, thereby providing a rich picture of firms’ climate-related transition risk alongside their strategies to manage such risks. It then assesses how such climate-related metrics influence two key measures of firms’ credit risk: credit ratings and the market-implied distance-to-default. High emissions tend to be associated with higher credit risk. But disclosing emissions and setting a forward-looking target to cut emissions are both associated with lower credit risk, with the effect of climate commitments tending to be stronger for more ambitious targets. After the Paris agreement, firms most exposed to climate transition risk also saw their ratings deteriorate whereas other comparable firms did not, with the effect larger for European than US firms, probably reflecting differential expectations around climate policy. These results have policy implications for corporate disclosures and strategies around climate change and the treatment of the climate-related transition risk faced by the financial sector. JEL Classification: E58, G11, G32, Q51, Q56, C58
    Keywords: climate change, credit risk, disclosure, green finance, net zero, transition risk
    Date: 2021–12
  7. By: Maja Hoffmann; Clive L. Spash
    Abstract: Climate change mitigation – reducing emissions to zero and substituting fossil fuels through renewable energy within a maximum of two decades – entails major consequences for modern industrial societies and economies. Industrial societies are structurally centred and dependent on work, however, the implications for work are insufficiently studied. We conduct an empirical analysis of the impacts of climate mitigation on work across all sectors of the Austrian national economy. Using a mixed methods approach, we investigate all NACE-classified branches of economic activity, the respective number of persons employed, CO2 emissions, fossil fuel use, renewable energy potential, and the societal importance of work. We find that the impacts of climate mitigation on work are far more substantial than the literature usually suggests. Required are significant reductions of work across all sectors, and its structural reorganisation based on an altered energy basis. Yet, potential for deployment of renewable energy technologies is currently not given for many fields of work that are dependent on fossil fuels. While the category of essential work further indicates the kinds of work that may be prioritised in transformation processes, particularly problematic are those deemed both essential for society and incompatible with climate mitigation. The study provides an initial empirical basis for substantiated differentiation of kinds of work regarding these key aspects of climate change mitigation and structural transformation. It also points to the need for institutions to address these challenges and the problematic ways in which work is organised and held sacrosanct in modern society.
    Keywords: climate change mitigation, work, employment,fossil fuels, renewable energy, green jobs, just transition, degrowth, sectoral analysis, structural transformation
    JEL: J01 L00 O44 P18 P48 Q40 Q54 Q57
    Date: 2021
  8. By: Mr. Mehdi Raissi; Ian Parry; Koralai Kirabaeva; Mr. Simon Black; Karlygash Zhunussova
    Abstract: This paper discusses a comprehensive strategy for implementing Mexico’s climate mitigation commitments. Progressively increasing carbon prices from current levels of US$3 per ton to US$75 per ton by 2030 would achieve Mexico’s mitigation pledges, while raising annual revenues of 1.8 percent of GDP and cumulatively averting 11,600 deaths from local air pollution. The carbon price would raise fossil fuel and electricity prices, imposing burdens of 2.7 percent of consumption on the average Mexican household. However, recycling carbon pricing revenues would offset most of this burden, and targeted transfers could make the reform pro-poor and pro-equity. Additionally, the economic efficiency costs of carbon pricing (0.3 percent of GDP in 2030) are more than offset by local air pollution and other domestic environmental benefits (before even counting climate benefits). Mexico would need a more ambitious 2030 target if it were to follow many other countries in adopting a midcentury ‘net-zero’ emissions target. To enhance the effectiveness of the mitigation strategy, carbon pricing can be reinforced with sectoral instruments, such as feebates in the transport, power, industry, building, forestry, extractive, and agricultural sectors. Complementary policies are also needed to support public investment in the clean energy transition.
    Keywords: Climate change, Mexico climate mitigation, carbon pricing, carbon tax, emissions trading system, feebate, natural gas, industry, buildings, transportation, agriculture, forestry.; emissions target; mitigation strategy; transition policy; distributional incidence; emission rate; emissions intensity; Greenhouse gas emissions; Carbon tax; Climate change; Natural disasters; Global; Western Hemisphere
    Date: 2021–10–18
  9. By: Michal Miedzinski; Katerina Ciampi Stancova (European Commission - JRC); Monika Matusiak (European Commission - JRC); Lars Coenen
    Abstract: The ongoing work on addressing sustainability challenges and Sustainable Development Goals via Smart Specialisation builds on Smart Specialisation concept of place-based research and innovation agenda for regional economic transformation, and extends it further to include the UN 2030 Agenda objectives (17 SDGs), the European Green Deal and aspects of social and environmental sustainability. The purpose of this study is to reflect upon the S3 framework within the context of transition studies, notably socio-technical transitions, social-ecological resilience and challenge-driven innovation policy. The study includes discussion on the strengths and limitations of the current S3 framework and makes suggestions on how to strengthen and revisit the S3 approach based on the insights from these approaches. The study proposes the guidelines, accompanied with a self-assessment tool for regions, in support of their effort in designing and implementing smart specialisation strategies for sustainable transformation.
    Keywords: Smart Specialisation, Sustainable Development Goals, European Green Deal, transitions, resilience, innovation policy
    Date: 2021–12
  10. By: Laurence J. Kotlikoff; Felix Kubler; Andrey Polbin; Simon Scheidegger
    Abstract: Climate change will impact current and future generations in different regions very differently. This paper develops a large-scale, annually calibrated, multi-region, overlapping generations model of climate change to study its heterogeneous effects across space and time. We model the relationship between carbon emissions and the global average temperature based on the latest climate science. Predicated average global temperature is used to determine, via pattern-scaling, region-specific temperatures and damages. Our main focus is determining the carbon policy that delivers present and future mankind the highest uniform percentage welfare gains – arguably the policy with the highest chance of global adoption. Damages from climate change are positive for all regions apart from Russia and Canada, with India and South Asia Pacific suffering the most. The optimal policy is implemented via a time-varying global carbon tax plus region-and generation-specific net transfers. Uniform welfare improving carbon policy can materially limit global emissions, dramatically shorten the use of fossil fuels, and raise the welfare of all current and future agents by over four percent. Unfortunately, the pursuit of carbon policy by individual regions, even large ones, makes only a limited difference. However, coalitions of regions, particularly ones including China, can materially limit carbon emissions.
    Keywords: none
    JEL: H23 O44
    Date: 2021–09
  11. By: Pauline AVRIL; Grégory LEVIEUGE; Camélia TURCU
    Date: 2021
  12. By: Ichimaru Watanabe, Sonoko; Kamau-Devers, Kanotha; Cunningham, Patrick R.; Miller, Sabbie A.
    Abstract: This report demonstrates how considerations across concrete material design and infrastructure design can be used together to change environmental impacts and costs by targeting appropriate constituents, materials, and system longevity. In this early-stage exploration, methods to compare concrete mixtures proportioning as they relate to environmental impacts, comparison indices based on common performance characteristics were used. This work was then built out to explore the role of steel reinforcement on reinforced concrete member environmental impacts to elucidate mechanisms to drive emissions reduction for these multi-material members. Finally, work was extended to understand how the longevity of concrete systems could influence environmental impacts associated with concrete production. Each stage of design considered was shown to have substantial effects on mitigating environmental impacts. In all cases, the primary environmental impact addressed was greenhouse gas emissions; however, this work can be extended to address other environmental impacts in future work. These methods from this work are demonstrated in this report through evaluation of mixtures in literature as well as a case study on an existing pavement overlay and potential alternative designs. View the NCST Project Webpage
    Keywords: Engineering, Concrete, material efficiency, environmental impact assessment, cost assessment, material selection, design decision making
    Date: 2021–12–01
  13. By: Oyinbo, Oyakhilome
    Abstract: Agricultural intensification associated with increased use of external inputs, such as inorganic fertilizer is widely considered relevant to improving farm income and welfare of smallholder farmers in Sub-Saharan Africa. The emphasis on increased use of inorganic fertilizer will likely be associated with increased greenhouse gas emissions, especially nitrous oxide, as with the Asian Green Revolution. Yet, traditional agricultural extension systems typically provide generalized ‘blanket’ fertilizer recommendations that are not tailored to the plot-specific growing conditions of individual farmers, which could lead to negative environmental externalities. Within this context, a digital nutrient management decision support tool ‘Nutrient Expert’ has been co-developed in Nigeria to enable the extension system to transition from provision of generalized to plot-specific fertilizer recommendations. Using a three-year randomized controlled trial in northern Nigeria, this paper analyses the impact of farmers’ access to site-specific nutrient management recommendations, provided through the Nutrient Expert tool on environmental sustainability of maize intensification. The primary outcome of interest is global warming potential (greenhouse gas emission per unit maize yield), measured using the Intergovernmental Panel on Climate Change Tier 1 method. The preliminary results show that the provision of tailored recommendations to the treatment group led to a reduction in global warming potential compared with the control group, who were exposed to blanket recommendations. However, the observed effect size is small, and the effect is not statistically significant at the conventional significance levels. A plausible reason could be due to the on average, low fertilizer application rates in the study area compared with the often cited over application of fertilizer in most parts of Asia. Overall,this paper finds weak evidence of the causal effects of farmer-tailored nutrient management extension advice on mitigating the environmental impacts of fertilizer intensification under farmers’ conditions and management in maize-based farming systems of northern Nigeria.
    Keywords: Crop Production/Industries, Farm Management, Research and Development/Tech Change/Emerging Technologies
    Date: 2021–09–21
  14. By: Ms. Katja Funke; Guohua Huang; Khaled Eltokhy; Yujin Kim; Genet Zinabou
    Abstract: In the wake of the COVID-19 crisis, governments around the world announced unprecedented fiscal packages to address the economic impact of the crisis. The unusually large scale of the packages was accompanied by widespread calls for “greening” them to meet the dual goals of economic recovery and environmental sustainability. In response, several researchers and international organizations attempted to assess the “greenness” of the fiscal policy response of the world’s largest economies. This paper takes stock of the contributions made by these various trackers, identifies strengths and weaknesses of their methodologies, and draws lessons for assessing the climate impact of fiscal policy going forward. It finds that: trackers provided useful assessments of the (generally low) level of greenness and raised awareness; trackers’ methodologies, while valid and innovative, varied significantly with some important, if currently largely unavoidable, weaknesses; and the way forward should involve tracking the greenness of entire government budgets, rather than just their response to the COVID-19 crisis.
    Keywords: Green fiscal policy tracker, green budgeting, COVID-19 response, climate impact assessment; IMF Green tracker policy archetype; climate impact; green fiscal policy tracker; climate relevance; fiscal policy response; Greenhouse gas emissions; Climate policy; Climate change; Environmental policy; Global
    Date: 2021–10–29
  15. By: Bocar Samba Ba; Pascale Combes Motel (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique); Sonia Schwartz (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Rare earth element extraction induces environmental damages and the balance problem. In this article, we show that recycling can challenge both problems in a two-period framework. We also find other results depending on the amount of scrap that can be recycled. If the recycling activity is not limited by available scrap, it does not change extraction in the first period. Environmental taxes on extracted quantities reduce extraction and favor recycling. But if the recycling is limited, the extractor reduces extraction in period one, adopting a foreclosure strategy, and environmental taxes can decrease recycling. In all cases, environmental taxes are never equal to the marginal damage from pollution, in order to take into account the recycling effect.
    Keywords: Rare Earth Elements,Pollution,Balance Problem,Recycling,Pigouvian Taxation,Cournot Competition
    Date: 2020–12
  16. By: Matteo Mazzarano (Fondazione Eni Enrico Mattei, Milano – Dipartimento di Matematica e fisica “Niccolò Tartaglia”, Università Cattolica del Sacro Cuore, Brescia); Giovanni Guastella (Fondazione Eni Enrico Mattei, Milano – Dipartimento di Matematica e fisica “Niccolò Tartaglia”, Università Cattolica del Sacro Cuore, Brescia); Stefano Pareglio (Fondazione Eni Enrico Mattei, Milano – Dipartimento di Matematica e fisica “Niccolò Tartaglia”, Università Cattolica del Sacro Cuore, Brescia); Anastasios Xepapadeas (Department of International and European Economic Studies, Athens University of Economics and Business, Greece – Department of Economics, University of Bologna)
    Abstract: The Security and Exchange Commission (SEC) has considered climate change as a risk issue since 2010. Several emission disclosure initiatives exist aimed at informing investors about the financial risks associated with a zero or low carbon transition. Stricter regulations, particularly in a few sectors, could affect operations costs, ultimately impacting companies financial performances, especially of listed companies. There are two ways these companies can disclose their transition risk exposure and are not alternatives. One is the explicit declaration of exposure to transition risk in the legally binding documents that listed companies must provide authorities. The other is the disclosure of GHG equivalent emissions, which is implicitly associated with transition risk exposure. This paper empirically analyses to what extent US companies stock returns incorporate information about transition risk by using explicit and implicit risk measures and comparing them. In addition, multiple total stock return measures distinguishing dividend payouts from simple stock returns. Results suggest that both explicit and implicit risks are positively related to dividend payouts and not to stock returns, while the overall effect on total stock returns is negative. Evidence supports the view that market operators price negatively the transition risk exposure and, probably as a consequence, boards in carbon intensive companies use dividend policies to attract investment in risky companies.
    Keywords: Climate risk, Transition Risk, SEC-10K, Mandatory Disclosure, Text analysis, Dividend Policy
    JEL: G35 G32 G38 Q54
    Date: 2021–11
  17. By: Behrendt, Karl; Paparas, Dimitrios
    Keywords: Agribusiness, Agricultural and Food Policy, Agricultural Finance, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Research and Development/Tech Change/Emerging Technologies
    Date: 2021–09–21
  18. By: Losacker, Sebastian (University Hannover); Hansmeier, Hendrik (Fraunhofer Institute for Systems and Innovation Research ISI); Horbach, Jens (University of Applied Sciences Augsburg); Liefner, Ingo (University Hannover)
    Abstract: Environmental innovations make an important contribution to solving ecological and climate crises. Although these crises are global phenomena, the regional dimension plays a crucial role, as regions both provide the conditions for the development of environmental innovations and promote widespread use and diffusion. Against this background, this article has two objectives. Firstly, we critically review the state of research on regional determinants of environmental innovation. Secondly, based on these results, we develop an agenda for further research in regional studies that will help to better understand the geography of environmental innovation and to come up with useful region-specific policy recommendations.
    Keywords: environmental innovation; geography of innovation; sustainability transitions; regional development; geography of transitions
    JEL: O31 O33 Q55 R11
    Date: 2021–12–17
  19. By: Ichimaru Watanabe, Sonoka; Kamau-Devers, Kanotha; Cunningham, Patrick; Miller, Sabbie A.
    Abstract: Concrete is a key component of the built environment. However, the manufacture of cement-based materials, such as concrete, produces over 8% of worldwide anthropogenic greenhouse gas (GHG) emissions. While reducing impacts from material production is an important strategy, structural design can also mitigate the environmental impacts of concrete. Designing infrastructure in a manner that uses concrete more efficiently, and thus lowers consumption while meeting the same system demands, holds promise for reducing GHG emissions while avoiding unintended consequences. Researchers at the University of California, Davis developed an initial methodology to evaluate implications of design decisions on the environmental impacts of concrete systems using a multi-criteria selection process to assist decision-makers. They demonstrated the methodology with a case study evaluating a built Caltrans pavement overlay for which comparisons of the GHG emissions and costs of various design alternatives were examined. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage
    Keywords: Engineering, Admixtures, Cement, Concrete, Decision support systems, Environmental impacts, Greenhouse gases, Materials, Performance based specifications, Pollutants, Reinforcement (Engineering), Service life, Tools
    Date: 2021–12–01
  20. By: Marion Bachelet (MCC Berlin); Matthias Kalkuhl (MCC Berlin, University of Potsdam); Nicolas Koch (MCC Berlin, Potsdam Institute for Climate Impact Research (PIK), IZA)
    Abstract: The COVID-19 pandemic created the largest experiment in working from home. We study how persistent telework may change energy and transport consumption and costs in Germany to assess the distributional and environmental implications when working from home will stick. Based on data from the German Microcensus and available classifications of working-from-home feasibility for different occupations, we calculate the change in energy consumption and travel to work when 15% of employees work full time from home. Our findings suggest that telework translates into an annual increase in heating energy expenditure of 110 euros per worker and a decrease in transport expenditure of 840 euros per worker. All income groups would gain from telework but high-income workers gain twice as much as low-income workers. The value of time saving is between 1.3 and 6 times greater than the savings from reduced travel costs and almost 9 times higher for high-income workers than low-income workers. The direct effects on CO2 emissions due to reduced car commuting amount to 4.5 millions tons of CO2, representing around 3 percent of carbon emissions in the transport sector.
    Keywords: commuting, home office, COVID-19, energy expenditure, carbon emissions
    JEL: I31 R21 R41 Q41 Q54
    Date: 2022–01
  21. By: Raouf Boucekkine (ESC Rennes School of Business); Giorgio Fabbri (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes); Salvatore Federico (Universita degli studi di Genova); Fausto Gozzi (LUISS - Libera Università Internazionale degli Studi Sociali Guido Carli [Roma])
    Abstract: We construct a spatiotemporal frame for the study of spatial economic and ecological patterns generated by transboundary pollution. Space is continuous and polluting emissions originate in the intensity of use of the production input. Pollution flows across locations following a diffusion process. The objective functional of the economy is to set the optimal production policy over time and space to maximize welfare from consumption, taking into account a negative local pollution externality and the diffusive nature of pollution. Our framework allows for space and time dependent preferences and productivity, and does not restrict diffusion speed to be space-independent. Accordingly, we develop a methodology to investigate the environmental and economic implications of spatiotemporal heterogeneity. We propose a method for an analytical characterization of the optimal paths. An application to technological spillovers is proposed for illustration. We focus on the determination of the optimal short-term spatiotemporal dynamics induced by the resulting non-autonomous problems.
    Keywords: Transboundary pollution,spatiotemporal modeling,geographic heterogeneity,infinite dimensional optimal control,optimal spatiotemporal short-term dynamics
    Date: 2021
  22. By: Ron Gecan
    Abstract: In this working paper, the Congressional Budget Office describes its recent update of parameters that characterize the relationship between emissions of carbon dioxide and changes in the price of those emissions. Based on a review of recent studies, CBO evaluated how a change in price induced by a tax or an allowance price on emissions would affect the amount of carbon dioxide released by the combustion of fossil fuels in the electric power sector, the transportation sector, and a composite sector that comprises the residential, commercial, and industrial sectors.
    JEL: H23 Q48 Q54 Q58
    Date: 2021–12–14
  23. By: Chris Kenyon; Mourad Berrahoui; Andrea Macrina
    Abstract: Sustainability is a key point for financial markets and the label "Green" is an attempt to address this. Acquisition of the label "Green" for financial products carries potential benefits, hence the controversy and attractiveness of the label. However, such a binary label inadequately represents the carbon impact - we use carbon as a useful simplification of sustainability. Carbon impact has a range either size of zero. Both carbon emissions, and sequestration of carbon, are possible results of financial products. A binary label does not allow differentiation between a carbon neutral investment and a coal power plant. Carbon impact has timing and duration, a planted forest takes time to grow, a coal power plant takes time to emit. Hence we propose the Carbon Equivalence Principle (CEP) for financial products: that the carbon effect of a financial product shall be included as a linked term sheet compatible with existing bank systems. This can either be a single flow, i.e., a summary carbon flow, or a linked termsheet describing the carbon impacts in volume and time. The CEP means that the carbon impact of investment follows the money. Making carbon impacts consistent with existing bank systems enables direct alignment of financial product use and sustainability, improving on non-compatible disclosure proposals.
    Date: 2021–12
  24. By: Fukushima, Nanna (Stockholm University)
    Abstract: This paper estimates the effects of the 1956 UK Clean Air Act on infant mortality. Using novel data, I exploit the seasonality in demand for coal to analyze the effects of a staggered expansion of a ban on local smoke emission. The findings show that the policy eliminated the seasonal difference in air quality as well as infant mortality. According to my instrumental variables estimates, the reduction in air pollution between 1957 and 1973 can account for 70 % of the observed decline in infant mortality during the same period. The results are relevant to explain the fast decline in post-war infant mortality in developed countries and understand the effect of pollution on infant mortality in many developing countries.
    Keywords: Health economics, Child mortality, Air pollution, Air pollution control JEL Classification: I12, J13, N540, Q51, Q53, Q58
    Date: 2021
  25. By: Phu Nguyen-Van; Anne Stenger; Tuyen Tiet
    Abstract: Based on a meta-analysis, this paper highlights the strength and relevance of several social incentive factors concerning pro-environmental behaviors, including social influence, network factors (like network size, network connection and leadership), trust in others, and trust in institutions. Firstly, our results suggest that social influence is necessary for the emergence of pro-environmental behaviors. More specifically, an internal social influence (i.e., motivating people to change their perceptions and attitudes) is essential to promote pro-environmental behaviors. Secondly, network connection encourages pro-environmental behaviors, meaning that the effectiveness of a conservation policy can be improved if connections among individuals are increased. Finally, trust in institutions can dictate individual behaviors to shape policy design and generate desired policy outcomes.
    Keywords: Meta-analysis; Network; Pro-environmental behavior; Social influence; Social incentive; Trust.
    JEL: D91 Q50
    Date: 2021
  26. By: Kannen, Peter; Semrau, Finn Ole; Steglich, Frauke
    Abstract: Improvements of firms' environmental performance crucially determine the speed of a country's green economic transformation. In this paper, we investigate whether firms with foreign ownership are more likely to adopt 'green' management practices, which determine the capability to monitor and improve a firm's impact on the environment. By using multi-country firm-level data, we show that foreign ownership increases the likelihood of implementing green management practices. Considering country heterogeneity, we reveal that only firms based in more developed economies and in countries with better environmental performance benefit from foreign direct investment, while this is not the case for firms based in less developed economies or countries with weak environmental performance. In addition, we find that the effect is more robust for manufacturing sector firms than for service sector firms. Overall, our results suggest that foreign ownership can contribute towards a country's green economic transformation.
    Keywords: Foreign direct investment,Green/environmental management,Green economic transformation,Emerging markets
    JEL: F21 F64 M10 Q56
    Date: 2021
  27. By: Colo, Philippe
    Abstract: This paper studies why scientific forecasts regarding exceptional or rare events generally fail to trigger adequate public response. A major example is climate change: despite years of scientific reporting, public acceptance of economic regulations is still limited. Building on the main causes identified by surveys for these reluctances, this paper offers an explanatory mechanism for this paradox. I consider a game of contribution to a public bad: greenhouse gases emissions. Prior to that, contributors receive expert advice regarding climate damages. Because of climate science's complexity, experts' forecasts are non-verifiable. In addition, I assume that the expert cares only about social welfare. Under mild assumptions, I show that no information transmission can happen at equilibrium when the number of contributors is high or the severity of climate damages is low. Then, contributors ignore scientific reports and act solely upon their prior belief.
    Keywords: Contribution to a public bad, Cheap talk, Climate change
    JEL: D62 D83
    Date: 2021–11–30
  28. By: Mr. Andrea Pescatori; Lukas Boer; Martin Stuermer
    Abstract: The energy transition requires substantial amounts of metals such as copper, nickel, cobalt and lithium. Are these metals a key bottleneck? We identify metal-specific demand shocks, estimate supply elasticities and pin down the price impact of the energy transition in a structural scenario analysis. Metal prices would reach historical peaks for an unprecedented, sustained period in a net-zero emissions scenario. The total value of metals production would rise more than four-fold for the period 2021 to 2040, rivaling the total value of crude oil production. Metals are a potentially important input into integrated assessments models of climate change.
    Keywords: Conditional forecasts, structural vector autoregressions, structual scenario analysis, energy transition, metals, fossil fuels, prices, climate change.; estimate supply elasticity; metals production; energy transition; aggregate commodity demand shock; price risk; Metals; Metal prices; Copper; Supply elasticity; Global
    Date: 2021–10–12
  29. By: Delzeit, Ruth; Heimann, Tobias; Schünemann, Franziska; Söder, Mareike
    Abstract: The latest Renewable Energy Directive (RED II) by the European Union (EU) provides an updated framework for the use of renewable energy in the EU transport sector until 2030. We employ the computable general equilibrium (CGE) model DART-BIO for a scenario-based policy analysis and evaluate different possible futures of biofuel use under four specifications of the RED II. Our results show that conventional biofuels will not become cost competitive to oil-based fuels. Moreover, we demonstrate the impact of the RED II specifications on the global production of food and feed crops. A further focus of this paper lies on the palm oil phase-out as feedstock for biofuels in the EU, to halt deforestation and land-use change in tropical countries. We find that this phase-out has a relatively small impact on global palm fruit production. Moreover, this study shows that the regulation has the potential to act as a technical barrier to trade, discriminating palm oil producing countries in favour of European rapeseed producers.
    Keywords: Computable General Equilibrium (CGE),EU Renewable Energy Directive (RED II),Biofuels,Land Use,Land Use Change,High iLUC-Risk,Palm Oil Biodiesel,Palm Oil Phase-Out
    JEL: C68 D58 F18 O13 Q16 Q17
    Date: 2021
  30. By: Rik L. Rozendaal; Herman R. J. Vollebergh
    Abstract: This article tests the effects of fuel economy and greenhouse gas emission standards on the direction of innovation, in particular on breakthrough technologies in the automotive industry. We develop an intuitive measure of standard stringency that captures the policy’s most important features for the decision as to whether or not to innovate. To test the role of these standards relative to prices and taxes, we construct a firm-level panel of patents in clean and dirty automotive technologies for the years 2000-2016. Our results indicate that standards are a very robust driver inducing clean innovation, whereas taxes also seem to play a role but prices (net of taxes) do not. This effect is driven by patenting for breakthrough technologies, in particular electric vehicle and hydrogen fuel cell technologies. We find no evidence that these policies negatively impact dirty innovation.
    Keywords: environmental policy instruments, regulatory stringency, innovation, directed technical change
    JEL: O30 Q55 Q58
    Date: 2021
  31. By: Simplice A. Asongu (Yaounde, Cameroon); Raufhon Salahodjaev (Tashkent, Uzbekistan)
    Abstract: This study explores the empowerment of women in politics on the environmental sustainability. Using data for the period 2015-2019 from 179 countries, we investigate the link between representation of women in parliament and the Environmental Performance Index (EPI). To explore the causal effect, we rely on gender quotas, language intensity and land suitability for agriculture as instruments for the share of women in parliament. Our results suggest that 10 percentage points increase in instrumented proportion of women in parliament leads to 7.1 points increase in the EPI. The results remain robust to a number of robustness checks.
    Keywords: environmental performance, women in parliament
    JEL: Q50 Q54 Q58
    Date: 2022–01
  32. By: Tom Krebs (Universitaet Mannheim); Janek Steitz (Agora Energiewende); Patrick Greichen (Agora Energiewende)
    Abstract: Germany needs to increase green public investment at the federal level by 30 billion Euros per year to reach its climate goals. This paper discusses how to finance the additional investments without violating the constitutional debt brake. Three financing instruments are available to the German government. The first instrument is a debt-financed capital injection for public sector companies. The second instrument consists of a direct subsidy for green private investments combined with tax breaks for green private investments. The third instrument is the use of the exemption rule of the debt brake in 2022 to provide financing of investment in the subsequent years. The paper argues that the German government can finance all its green investment needs without violating the constitutional debt brake if it makes full use of the three instruments.
    Keywords: Klima, Klimaneutralitaet, oeffentliche Investitionen, oeffentlicher Finanzbedarf
    JEL: H23 H54 L52 L95 L98 Q41 Q42 Q54
    Date: 2021–11
  33. By: Elvis Dze Achuo (University of Dschang, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon); Vanessa S. Tchamyou (Yaoundé, Cameroon)
    Abstract: This study examines the effect of women’s socioeconomic empowerment on environmental sustainability in Africa over the 1996-2019 period. Results of the system Generalised Method of Moments (GMM) estimator reveal that women’s socioeconomic empowerment is environment enhancing. Moreover, the findings reveal that the environmental impact of women’s socioeconomic empowerment is modulated through GDP per capita and Foreign Direct Investments (FDI), leading to respective net effects of 0.002055 and 0.003478. These positive net effects are offset beyond respective threshold values of 9.513889 and 9.611398. These thresholds of GDP and FDI are critical for complementary policies relating to the link between women empowerment and environmental sustainability. Consequently, for women empowerment to effectively contribute to environmental sustainability in Africa, various governments, either through individual or concerted efforts should endeavour to create enabling business environments capable of attracting substantial FDI necessary to propel sustainable growth. Moreover, the nexus is not linear and hence, governments should also be aware of critical levels of FDI and GDP per capita at which, complementary policies are needed for women’s socioeconomic empowerment to maintain a positive influence on environmental sustainability.
    Keywords: Women empowerment, Environmental sustainability, Ecofeminism, Africa
    JEL: B54 J16 O55 Q56
    Date: 2022–01
  34. By: Ali, Amjad; Audi, Marc; ŞENTÜRK, İsmail; Roussel, Yannick
    Abstract: This study has examined the impact of sectoral growth on CO2 emissions in the case of Pakistan from 1970 to 2019. ADF and PP unit root tests have been applied to check the stationarity of the data series, whereas the Zivot-Andrew structural break unit root test has been applied to check the existence of structural break. The results of the unit root test show there is mixed order of integration among the selected variables, Zivot-Andrew unit root test also highlights the point of a structural break in the data series. The autoregressive distributed lag model has been applied for checking the cointegration among the variables of the model. The results show that industrial growth, population density, and time trend are positively and significantly contributing to CO2 emissions in Pakistan. Whereas services sector growth is responsible for reducing CO2 emissions in Pakistan. The results show that agricultural growth and globalization are reducing CO2 emissions but this relationship is insignificant over the selected time. In the short-run industrial growth, agricultural growth, and service sector growth are reducing the level of CO2 emissions in Pakistan. Likewise long run, trend time is promoting CO2 emissions in the short run in Pakistan. The government of Pakistan can control CO2 emissions by improvement in industrial production methods, reducing population density, and promoting services sector growth. There must be some dynamic policies are required to control the time trend impact on CO2 emission in Pakistan.
    Keywords: CO2 emissions, agriculture growth, industrial growth
    JEL: L0 Q1 Q5
    Date: 2021
  35. By: Giovanni Guastella (Fondazione Eni Enrico Mattei, Milano – Dipartimento di Matematica e fisica “Niccolò Tartaglia”, Università Cattolica del Sacro Cuore, Brescia); Matteo Mazzarano (Fondazione Eni Enrico Mattei, Milano – Dipartimento di Matematica e fisica “Niccolò Tartaglia”, Università Cattolica del Sacro Cuore, Brescia); Stefano Pareglio (Fondazione Eni Enrico Mattei, Milano – Dipartimento di Matematica e fisica “Niccolò Tartaglia”, Università Cattolica del Sacro Cuore, Brescia); Anastasios Xepapadeas (Department of International and European Economic Studies, Athens University of Economics and Business, Greece – Department of Economics, University of Bologna)
    Abstract: Transition to a climate-neutral society is expected to generate disruptive changes and influence the investors and consumers’ perception. According to the Task Force on Climate-related Disclosures, firms that compose the polluting sectors might be vulnerable to reputation risk. In this work, we investigated the effect of climate-related announcements of listed companies on their equity performance. Focusing on the major historical greenhouse gas equivalents emitters, we studied the effect of companies’ climate-related social media activity on their daily abnormal returns in general and during climate-related events. Results suggest that climate-related announcements expose firms to abnormally negative returns. Sensitive external events and political rallies coincided with negative stock returns within investor’s expectations.
    Keywords: Transition Risk, Reputation risk, Events Analysis, Text Analysis, Efficient Markets
    JEL: G32 G41 Q54
    Date: 2021–11
  36. By: Monika Pompeo (University of Nottingham, University of Bologna); Nina Serdarevic (Norwegian School of Economics)
    Abstract: One of the most important determinants when it comes to climate change attitudes is political partisanship. While both Democrats and Republicans underestimate the share of their in-groups that believe climate change is happening, this perception gap is wider for Republicans. Using a sample of Republican respondents, we examine their beliefs about climate change and the perceived distribution of climate change attitudes of either other Americans or Republicans. Then, to generate exogenous variation in beliefs, we provide respondents in the treatment groups with the actual distribution of either American or Republican attitudes towards climate change. Our results highlight the importance of distinguishing between beliefs and behaviour when assessing the effect of information on issues that fall strongly along party lines. While information alters the respondents’ beliefs about the Republican Party’s stance on climate change, it is not enough to instigate a change in individual donation behaviour.
    Keywords: Republicans, partisanship, climate change, social norms, information, online experiment
    Date: 2021–08
  37. By: Moritz A. Drupp; Ulrike Kornek; Jasper N. Meya; Lutz Sager
    Abstract: Preserving environmental quality and addressing economic inequality both feature prominently in public discourse. Neither of these two issues can be fully understood in isolation, and policies aiming at one issue will increasingly have to consider interactions with the other. We synthesize theoretical mechanisms that underpin inequality-environment interlinkages, and take stock of the empirical evidence. Our review is structured into four main blocks, describing, first, how the distribution of environmental amenities and dis-amenities is associated with income and wealth, second, how economic inequality affects environmental outcomes, third, how the cost of environmental policy is often borne unequally, and, fourth, how both the distribution of environmental quality and economic inequality shape welfare considerations underlying public policy appraisal. We argue that it is crucial to consider inequality-environment interlinkages even if one’s primarily concern is one or other of these issues, and close by highlighting a number of areas for future research.
    Keywords: environment, inequality
    JEL: D31 D33 E25 Q52 Q56
    Date: 2021
  38. By: Patrick Grüning (Latvijas Banka & Vilnius University); Justina Banionienė (Kaunas University of Technology); Lina Dagilienė (Kaunas University of Technology); Michael Donadelli (University of Brescia); Marcus Jüppner (Deutsche Bundesbank, Goethe University); Renatas Kizys (University of Southampton); Kai Lessmann (Potsdam Institute for Climate Impact Research)
    Abstract: The Circular Economy (CE) challenges the traditional linear economy model to arrive at a sustainable economy that minimizes resource use, its negative environmental impact, and dependency on resource imports. We develop a multi-sector dynamic stochastic general equilibrium small open economy model with endogenous adoption of exogenous foreign technology innovations, endogenous environmental quality, and CE elements, comprising recyclable waste as well as recycling and refurbishing sectors. We analyze the model-implied impulse response functions with respect to several economic shocks and conduct a rich scenario-based analysis, for which the scenarios are derived from the 9R strategies. We find important trade-offs to be considered by the economy with respect to circularity, trade, environment, and growth – the four dimensions of the quadrilemma of a small open circular economy. We find that none of the six shocks considered and in none of the eight scenarios analyzed the quadrilemma can be resolved. However, a positive shock to the price of energy or a lower energy share in one of the two intermediate goods sectors provide benefits to three out of four dimensions of the quadrilemma.
    Keywords: Circular economy, Small open economy, Recycling, Refurbishing, Endogenous economic growth, Technology adoption, General equilibrium, Energy
    JEL: E2 F4 O3 O4 Q4 Q5
    Date: 2021–11–24
  39. By: Preuß, Sabine; Kunze, Robert; Zwirnmann, Jakob; Meier, Jonas; Plötz, Patrick; Wietschel, Martin
    Abstract: Plug-in electric vehicles (PEV) are widely considered a promising option to reduce greenhouse gas (GHG) emissions in transport. The electricity used for charging is decisive for the environmental assessment of PEV. Most studies assume the average grid mix for charging. This article provides a systematic overview of existing studies and additional data on the electricity contracts of users and charge point operators (CPO) as well as the share of renewables in the charged electricity for PEV in Europe. We combine survey data with existing studies and cover a noteworthy share of the European PEV market and CPO. Our results show that the actual share of renewables in electricity contracts for home and work charging as well as for public CPO is much higher than in the European grid mix. Despite discussions around the methodological use of contracted renewable electricity, our findings imply that many previous studies underestimated the well-to-wheel life-cycle benefits of PEV.
    Date: 2021
  40. By: Sara Amoroso (European Commission - JRC); Leonidas Aristodemou (OECD); Chiara Criscuolo; Antoine Dechezleprete (OECD); Helene Dernis (OECD); Nicola Grassano (European Commission - JRC); Laurent Moussiegt (OECD); Lorenzo Napolitano (European Commission - JRC); Daisuke Nawa (OECD); Mariagrazia Squicciarini; Alexander Tuebke (European Commission - JRC)
    Abstract: This biennial report continues the joint JRC-OECD analysis of the IP portfolios of the world's top 2 000 R&D investors. The report shows that global R&D and patenting activities are highly concentrated among the world’s top 2 000 R&D investors. These are equivalent to 87% of global business R&D expenditures by the private sector and 63% of patent filings across all technologies. There is much less concentration at the commercialisation stage, with only 6% of total trademarks owned by the top R&D investors. The world’s top R&D investors are key contributors to global climate-related innovation. They own 70% of global climate change mitigation or adaptation patents and over 10% of global climate-related trademarks, which is larger than their contribution to overall patents and trademarks across all fields. Looking at the potential contribution of the digital revolution to climate-related innovation at the invention stage, 20% of climate-related patents have a digital component (against 33% for patents across all technological fields). Finally, this edition of the report investigates for the first time the gender composition of both the board of directors of the top 2 000 R&D investors, and of their R&D workforce. In general, EU27 companies have on average more gender-balanced boards than the US and the Asian ones, with a women representation of at least 26%. A substantial gender gap is also observed for inventors listed in patent applications, with significant heterogeneity across countries and sectors.
    Keywords: R&D investment, Green Patent, Intellectual Property, Patents, Trademarks, Gender Balance
    Date: 2021–11
  41. By: Xavier GALIEGUE
    Keywords: , Economie des ressources minérales, Transition énergétique, Capture et stockage du CO2
    Date: 2021
  42. By: Pauline Avril (Université d'Orléans); Gregory Levieuge (Banque de France, Université d'Orléans); Camelia Turcu (Université d'Orléans)
    Abstract: We empirically investigate the impact of natural disasters on the external finance premium (EFP), conditional on the stringency of macroprudential regulation. The intensity of natural disasters is measured through an original set of geophysical indicators for a sample of 88 countries over the period 1996-2016. Using local projections, we show that, following storms, the EFP significantly drops (rises) when macroprudential regulation is stringent (lax). This suggests that regulated financial systems could foster favorable financing conditions to replace destroyed capital with more productive capital. Macroprudential stringency seems less crucial in the case of floods, the predictability of which may prompt self-discipline.
    Keywords: Financial stress, External finance premium, Macroprudential policy, Natural disasters, Local projections.
    JEL: E
    Date: 2021
  43. By: Nilkanth Kumar (Center of Economic Research (CER-ETH), ETH Zurich, Zurich, Switzerland); Nirmal Kumar Raut (Central Department of Economics (CEDECON), Tribhuvan University, Kathmandu, Nepal); Suchita Srinivasan (Center of Economic Research (CER-ETH), ETH Zurich, Zurich, Switzerland)
    Abstract: This article sheds light on a scarcely explored area of research related to herd behavior in urban settings of developing economies, where the use of motorized twowheelers has been increasing rapidly. Using primary survey-based data from Nepal, we examine whether potential motorcycle buyers in the Kathmandu valley exhibit herd behavior or price-conscious behavior when making a hypothetical choice decision and then evaluate the determinants of the observed behavior. Using factor analysis, the paper identifies distinct homogeneous groups of respondents based on their preferences towards motorcycle attributes and on their psychological traits and attitudes. Not only do we find a prevalence of herding in the choice of motorcycles, the results also find strong suggestive evidence that, in addition to gender and income, several latent factors related to preferences and psychological traits might play a crucial role in determining the herd behavior. We discuss policy implications in the context of consumer behavior and environmental policy in the backdrop of rapid vehicle demand and dangerous air pollution levels.
    Keywords: herd behavior; determinants; motorcycle choice; psychological factors; bounded rationality; Nepal
    JEL: D12 D83 D91 Q58
    Date: 2022–01
  44. By: MILIS, Kevin; STÜBER, Magdalena; BRAET, Johan; SPRINGAEL, Johan
    Abstract: While a possible nuclear phase-out for the Belgian energy system has long been the subject of both political and societal debate, prevailing government policy at the beginning of 2021 is to enact a full nuclear phase-out by 2025. While the Belgian government is committed to the phase-out, an evaluation moment is foreseen by the end of 2021, where the final decision on the prospective nuclear phase-out will be made. This is the backdrop against which this paper uses a dispatching model, based on the urbs modelling framework, to estimate possible post-phase-out Belgian energy mixes. The obtained results show an increased reliance on gas-fired plants, or, if CO2 emissions are constrained to pre-phase-out levels, a marked increase in the amount of imported electricity and a fivefold increase in needed installed storage capacity. Total system costs increase as well, due to the additional storage required to allow for the increased penetration of renewable energy sources. These results show that there are important trade-offs between CO2 emissions reductions, energy independence and energy system costs which will have to be navigated after the Belgian nuclear phase-out. Although not a priori part of the scope of the research, the results highlight several signicant vectors for increased blackout risk, such as constrained electricity imports, the failure to realise the needed storage capacity explosion or transmission grid failures.
    Date: 2021–12
  45. By: Edmond Noubissi (University of Dschang, Cameroon); Loudi Njoya (University of Dschang, Cameroon)
    Abstract: This paper contributes to the literature on the relationship between gender and the environment. There are indeed very few studies on this topic, and existing studies have not yet investigated the channels through which women's presence in parliaments affects the environment. We use a stochastic impact model extended to the population, wealth and technology regression model to estimate both the effect and transmission of women parliamentarians on the environment in 25 African countries from 2000 to 2016. The empirical results show that the presence of women in parliament contributes to the improvement of environmental quality in Africa. In addition, the mediation analysis reveals that women parliamentarians not only have a direct positive effect on the environment but also a positive indirect effect through their impact on per capita income, corruption and development assistance. To enhance the positive effects of women parliamentarians on the environment, governments should design policies to encourage women to participate in economic activities, integrate anti-corruption programmes and participate in the management of development assistance.
    Keywords: Women's parliamentary, environmental quality, African countries
    JEL: F63 F64 J16
    Date: 2021–01
  46. By: Lin, J; Fridley, D; Lu, H; Price, L; Zhou, N
    Abstract: Coal combustion to power China’s factories, generate electricity, and heat buildings has increased continually since energy use statistics were first published in 1981. From 2013 until 2015, however, this trend reversed and coal use continued to decline from 2,810 million metric tons of coal equivalent (Mtce) to 2,752 Mtce, leading to a levelling off of China’s overall CO2 emissions. Some analysts have declared that China’s coal consumption may have peaked, but preliminary data indicate that coal consumption increased in 2017. This recent growth, combined with our analysis of projected increases in electricity demand that cannot be met by other fossil-fuel or non-fossil-fuel electricity sources, along with projected increases in coal use in light manufacturing, other non-industrial sectors, as well as in coal use for transformation, indicates potential future growth of China’s coal use to levels of 2,908 Mtce to 3,060 Mtce in 2020, with associated increases in energy-related CO2 emissions.
    Date: 2022–01–05
  47. By: Al-Amin, A.K.M. Abdullah; Lowenberg-DeBoer, James; Franklin, Kit; Behrendt, Karl
    Abstract: Research shows that smaller field size favours biodiversity and it is hypothesized that autonomous arable crop equipment would make it possible to farm small fields profitably. To test this hypothesis algorithms were developed for machine time over a range of field sizes. The Hands Free Hectare (HFH) linear programming model was used to assess the economic implications of field sizes. The study considered rectangular fields in the West Midlands from 1 to 100 ha farmed with tractor sizes of 38 hp, 150 hp and 296 hp. Results showed that field times (hours/hectare) were longer for small fields with equipment of all sizes and types, but field size had the least impact for small equipment. The results showed that autonomous equipment reduces costs on farms with fields of all sizes. If temporary labour is available, conventional farms with small fields use the smaller equipment, but the extra hiring increases wheat production costs by £30-£40/ton over costs on farms with autonomous equipment. The larger 150 hp and 296 hp tractors were not profitable on the farms with small fields. The economic viability of autonomous equipment irrespective of field sizes shows that it could facilitate biodiversity gains and environment schemes, such as Environmental land management schemes (ELMS) in the United Kingdom and Agri-environment schemes (AES) in the European Union and elsewhere.
    Keywords: Crop Production/Industries, Farm Management
    Date: 2021–09–21
  48. By: Benedetto Rocchi; Gino Sturla
    Abstract: In this work, an input-output hydro-economic model based on the Guan and Hubacek (2008) methodology is applied for the Tuscany region in Italy. The model integrates the input-output table (for the year 2017) of the regional economy developed by IRPET with a satellite account, expressed in volume (cubic meters of water), accounting for the flows of water resources between the hydrological system and the economy. Two innovations are incorporated in the model: i) the reclassification of withdrawals and restitutions of water by demanding sector and ii) the creation of an indicator of pressure on water resources based on an analysis of the feasible water supply. The model is built on the basis of economic and hydrological data generated by the different national and regional institutions, also using specific methodologies that are described in this work. The developed model provides estimates of the net water demand generated by 56 economic sectors and by the ecosystem requirements, and allows to compare the net demands by extracting and demanding sectors. The indicator of economic pressure on the total water resource, groundwater and surface water supports a better understanding of the linkages existing between the economic activities and the regional hydrological system.
    Keywords: Input-output models, water resources, hydrology, Tuscany
    JEL: C67 Q25 Q50
    Date: 2021
  49. By: Singh, Dheeraj; Chaudhary, M.K.; Kumar, Chandan; Kudi, B.R.; Dudi, Aishwarya
    Abstract: Henna (Lawsonia inermis L.), is a perennial shrub dominating the agro-ecosystem of Pali district of Rajasthan, India, which is priced for its leaves which have natural dying properties. From ancient times, Henna has been employed as a cosmetic dye for hair, skin and nails and it has acquired a particular significance in Islamic culture. It is dryland shrub which can tolerate extreme dry and high temperature conditions and survives well on problematic soils with high pH and saline water where other crops cannot be grown. The development of Henna cultivation and processing in Pali, Rajasthan, is a blend of indigenous knowledge and people's innovations. Presently Henna cultivation in the region is under 40,000 hectares which is the largest area under this crop at single location and it is purely rainfed with no use of fertilizers or pesticides. In this crop generally, no fertilizers and plant protection measures are used and a single leaf cutting is taken every year under the rainfed conditions and two cuttings where water is available. Under rainfed conditions for a dense planting the dried leaf yield in the first year is about 250 kg ha-1 while over the second, third and fourth years the yield normally ranges from 500 to 2,500 kg ha-1. The crop starts generating returns from its second year onwards, which continues for 20 years while incurring only maintenance costs in the form of hoeing, weeding and harvesting. By following these measures, on average they produce 15-20 quintal dry Henna leaves ha-1 from their barren fields. The financial analysis indicated that Henna farming due to its high quality at Pali is a profitable and attractive option for farmers livelihoods. Sustainable income from Henna benefits the farmers of the district as it can tolerate high salinity, drought and incidences of pest and diseases.
    Keywords: Crop Production/Industries, Production Economics
    Date: 2021–09–21
  50. By: Marcello Basili; Federico Crudu
    Abstract: This paper assesses the probability of occurrence of tipping points conditional on a given temperature scenario by combining probability intervals from elicited experts opinions using the data of Kriegler et al. (2009). The computation of such conditional probabilities is based on the aggregation of imprecise probability judgments through the Steiner point. In addition, the probability of a tipping point can be updated via the standard Bayes rule to generate tipping point scenarios. Our results suggest that tipping events may happen with relatively large probabilities, in contrast with the view that tipping points are low-probability-high-impact events.
    Keywords: Bayesian updating; aggregation; global warming; judgmental forecasting; Steiner point; tipping points
    JEL: Q54 D81 C10
    Date: 2021–12
  51. By: Mohammad Alauddin; Clement A Tisdell; Md Abdur Rashid Sarker
    Abstract: Employing Bangladeshi national data on rice production, area and yield disaggregated by dry (irrigated) and wet (rainfed) seasons over a period of 73 years (1947-2019, this paper investigates annual and seasonal dimensions of Bangladeshi rice culture and explores trends, emerging patterns and their implications with a focus on the Green Revolution period since the late 1960s. We find that: (i) structural breaks differ between dry and wet seasons for the same variable or among different variables; (ii) annual and seasonal outputs, areas and yields of overall or HYV rice exhibit slowdown in their increase in the last decade or so; (iii) the diffusion of the HYV rice technology exhibit differential patterns between seasons; (iv) the increasing percentage area under the dry season rice crop has significantly underpinned the increased annual rice yield; and (v) growth in outputs and yields of HYV rice exhibit significant differential patterns by dry and wet seasons. This is the first long-term study of its kind and contributes to the existing literature in several important ways by (a) investigates rice production in Bangladesh disaggregated by broad crop seasons (dry and wet); (b) identifying structural breaks employing a priori reasoning, scatter plots and appropriate econometric tests instead of applying arbitrary cut-off points; and (c) exploring implications of the seasonal dimensions of rice cultivation in Bangladesh.
    Keywords: Agricultural and Food Policy, Community/Rural/Urban Development, Crop Production/Industries, Environmental Economics and Policy, Food Security and Poverty
    Date: 2021–12–20
  52. By: Fanghella, Valeria; Faure, Corinne; Guetlein, Marie-Charlotte; Schleich, Joachim
    Abstract: Public acceptability appears an essential condition for the success of lowcarbon transition policies. In this paper, we investigate the role of self-interest on citizens' preferences for the distribution of costs and of environmental benefits of energy efficiency policies. Using a discrete choice experiment on nationally representative household samples of Italy, Sweden, and the United Kingdom, we first investigate preferences for specific burden-sharing rules and for the distribution of policy environmental benefits accruing primarily in rural and/or urban areas. We examine the role of self-interest in a correlation manner by looking at the effects of income and of location of residency on preferences for these policy attributes. Moreover, we investigate the effect of self-interest on preferences for burden-sharing rules in a causal manner by exogenously priming subsets of participants to feel either rich or poor. Our results suggest that the polluter-pays rule is the most popular burden-sharing rule and an equalamount rule the least popular and that policies with environmental benefits accruing primarily in rural areas are less preferred, with some heterogeneity in preferences across the three countries. We also find evidence for self-interest, both through correlational and through causal approaches.
    Keywords: policy acceptability,self-interest,distributional fairness,discretechoice experiment,energy efficiency
    Date: 2021
  53. By: Tweneboah Senzu, Emmanuel
    Abstract: It empirically argued that economic development depends on increasing productivity, mitigating income inequality, reducing dependency on natural resources, improving health outcomes, enhancing environmental quality, and importantly increasing economic growth. Which is complemented by the fact that, all requires a quality financial system, which collects information to facilitate the ex-ante evaluation and ex-post monitoring of investment opportunities to ease information asymmetry as a problem, and facilitates the allocation of resources to innovative projects and further produce complex products. The above postulation derives its core factor of achievement from sustainable financial inclusion, with the paper advancing a conceptual proposition towards an effective, and efficient financial inclusion in fragile economies, and its underlying policy architecture to sustain its performance efficiency, in medium and long term purpose.
    Keywords: Financial Inclusions, Financial ecosystem, Policy, Central Bank, Fragile Economy
    JEL: E2 E6 G23 G28 H5
    Date: 2021–12–09
  54. By: Amine Chekireb (CEREGE - Centre européen de recherche et d'enseignement des géosciences de l'environnement - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - CdF (institution) - Collège de France - INSU - CNRS - Institut national des sciences de l'Univers - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université); Julio Goncalves (CEREGE - Centre européen de recherche et d'enseignement des géosciences de l'environnement - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - CdF (institution) - Collège de France - INSU - CNRS - Institut national des sciences de l'Univers - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Hubert Stahn (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université); Agnes Tomini (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université)
    Abstract: We formulate a hydro-economic model of the NorthWestern Sahara Aquifer System (NWSAS) to assess the effects of intensive pumping on the groundwater stock and examine the subsequent consequences of aquifer depletion. This large system comprises multi-layer reservoirs with vertical exchanges, all exploited under open access properties. We first develop a theoretical model to account for relevant features of the NWSAS by introducing, in the standard Gisser-Sanchez model, a non-stationary demand and quadratic stock-dependent cost functions. In the second step, we calibrate parameters values using data from the NWSAS over 1955-2000. We finally simulate the time evolution of the aquifer system with exploitation under an open-access regime. We specifically examine time trajectories of the piezometric levels in the two reservoirs, the natural outlets, and the modification of water balances. We find that natural outlets of the two reservoirs might be totally dried before 2050.
    Keywords: hydro-economic model,private pumping,multi aquifer system,groundwater-dependant ecosystems,semi-arid region,simulation
    Date: 2021–11–29
  55. By: Andersson, Fredrik N. G. (Department of Economics, Lund University)
    Abstract: The decarbonization of the energy-intensive and natural-resourced-based industries is associated with large economic costs. In this paper, I explore how decarbonization may affect the profitability and market value of these industries and their ability to attract capital to fund their decarbonization. I also discuss the possibility of compensating for the investment costs through higher prices and enhanced productivity. I answer these questions using scenario analysis with a focus on the industries in the European Union and the United States. I find that the effects on profitability are likely to be modest despite relatively high investment costs.
    Keywords: decarbonization; energy-intensive; industry; profitability; investment
    JEL: L60 L70 Q54
    Date: 2021–12–17
  56. By: 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)
    Abstract: In this article we aim at quantifying the impact of the crop diversification measure implemented in France as part of the 2013 CAP greening reform. While numerous studies assess the impact of the measure using simulation models, none uses causal treatment methods or ex-post data. We exploit a discontinuity in the constraints imposed on farms over and under 30ha, respectively, and apply an OLS-FE method with a regression discontinuity setup on land use data collected from a representative sample of French farmers before and after reform implementation. We find that the crop diversification measure increases both compliance with the measure and the number of crops grown by farms greater than 30ha. Furthermore, graphical analyses suggest that farms over and under 30ha responded differently to the reform.
    Keywords: Common Agricultural Policy,Greening,Crop diversification,France,Regression discontinuity design.,Q18,Q25,Q28,Q53
    Date: 2021–11–29
  57. By: Davide Furceri; Mr. Pragyan Deb; Siddharth Kothari; Nour Tawk; Daniel Jimenez; Mr. Jonathan David Ostry
    Abstract: This paper empirically examines the economic effects of COVID-19 vaccine rollouts using a cross-country daily database of vaccinations and high frequency indicators of economic activity—nitrogen dioxide (NO2) emissions, carbon monoxide (CO) emissions, and Google mobility indices—for a sample of 46 countries over the period December 16, 2020 to June 20, 2021. Using surprises in vaccines administered, we find that an unexpected increase in vaccination per capita is associated with a significant increase in economic activity. We also find evidence for non-linear effects of vaccines, with the marginal economic benefits being larger when vaccination rates are higher. Country-specific conditions play an important role, with lower economic gains if strict containment measures are in place or if the country is experiencing a severe outbreak. Finally, the results provide evidence of spillovers across borders, highlighting the importance of equitable access to vaccines across nations.
    Keywords: COVID-19, pandemics; vaccinations; containment measures.; vaccine rollout; vaccination rate; copyright Page; vaccine surprise; containment measure; COVID-19; Global
    Date: 2021–10–19
  58. By: Myriam Ben Saad (ESPI2R - Laboratoire ESPI Réflexions et Recherches (1997-2021) - ESPI - Ecole Supérieure des Professions Immobilières, PRISM - Pôle de recherche interdisciplinaire en sciences du management - UP1 - Université Paris 1 Panthéon-Sorbonne); Amandine Gnonlonfin; Naceur Khraief; Michel Dimou
    Abstract: Depuis la fin des années 90, plusieurs pays MENA se sont engagés en faveur du développement des énergies renouvelables. Dans le but de relever le double défi économique et environnemental, le Plan Solaire Méditerranéen (Paris, 2008) encourage cet engagement avec l'ouverture au marché européen et l'augmentation de la production de l'électricité renouvelable. Dès lors, plusieurs projets d'investissement ont été mise en œuvre pour augmenter la production des énergies renouvelables dans la région. Toutefois, les efforts d'investissement dans ces énergies varient à la l'échelle d'un pays à l'autre et il manque à ce jour des éléments de comparaison de la position des pays par rapport à leur engagement politique. La problématique est non seulement de savoir comment l'engagement politique des pays MENA affecte leur offre en énergies renouvelables, mais aussi de savoir les sources d'énergies renouvelables qui ont été privilégiées. La littérature sur la consommation d'énergie a mis l'accent sur la relation de causalité entre consommation d'énergie et croissance économique avec quatre hypothèses testables : l'hypothèse de la croissance, l'hypothèse de conservation, l'hypothèse de la rétroaction et l'hypothèse de neutralité. Nous contribuons à cette littérature en testant la validité empirique de la fonction de production néo-classique. Notre apport principal est la prise en compte de la cointégration et les asymétries non linéaire et entre les variables avec le modèle Nonlinear ARDL (NARDL) (Banerjee et al., 1998 ; Pesaran et al., 2001 ; Shin et al., 2014). Notre objectif est de produire des éléments de comparaison entre les pays MENA et d'étudier les stratégies de production de l'électricité renouvelable qui permettent de créer une dynamique de développement durable à long terme.
    Date: 2021–11–18
  59. By: Christine Lewis; Ben Westmore
    Abstract: Australia’s financial sector entered the COVID-19 crisis in a strong position, enabling it to play a key role in cushioning the pandemic’s impact. Once the national economy reopens, policymakers will turn their focus to securing a robust, sustainable and inclusive recovery. However, low interest rates are boosting house prices and demand for credit in a banking sector that is already highly exposed to housing and highly indebted households. At the same time, many young and innovative firms – which are the drivers of job creation and productivity growth - struggle to access finance. And financial frictions impede the alignment of financial flows with environmental sustainability. Addressing these obstacles, through regulatory change, developing alternatives to bank finance and facilitating technological transformation, would raise productivity and set the recovery on a more sustainable path. Financial inclusion and financial literacy are comparatively high and financial education is entrenched at schools. Further efforts are still needed to address persistent gaps in outcomes for disadvantaged groups, accompanied by stronger consumer protections to ensure that the recovery is inclusive.
    Keywords: access to finance, Australian financial system, environmental risk exposure, financial inclusion, household debt
    JEL: G20 G21 G24 G28 G33 Q58
    Date: 2021–12–23
  60. By: Davide Di Zio (Bank of Italy); Marco Fanari (Bank of Italy); Simone Letta (Bank of Italy); Tommaso Perez (Bank of Italy); Giovanni Secondin (Bank of Italy)
    Abstract: In recent years, the extensive recourse to unconventional monetary policy measures and the growing importance of the transition process towards a sustainable economy have given rise to new challenges for the Eurosystem’s central banks in managing financial risks. In this context, central banks’ investment strategies, whose goal is to reinforce capital strength, have been combined with the adoption of criteria aimed at fostering a sustainable growth model. This work describes the strategic allocation process for investment developed by the Bank of Italy and the methodology adopted for applying sustainability criteria to some of the portfolio’s asset classes.
    Keywords: central banks, investment allocation, sustainability, Bayesian VAR
    JEL: E58 G11 G17 Q56
    Date: 2021–12
  61. By: Bush, Kristen M.; Lozano, Mark T.; Niemeier, Deb; Kendall, Alissa
    Abstract: Senate Bill 350 (SB 350) requires the California Public Utilities Commission (CPUC) to direct utilities to undertake transportation electrification (TE) activities and to ensure that, among other factors, access to TE-related opportunities for low- and moderate-income communities, as well as disadvantaged communities (DACs) increase as TE becomes more widespread. This research explores the range of tangible benefits that the implementation of TE programs can achieve for DACs. The research questions examine how funds spent to date through SB 350 target investment intended to support DACs; how public and private investments in DACs ensure energy justice, transportation justice, and equity, and finally how perceptions and priorities of stakeholders inform the implementation of TE programs. The researchers collected metrics from various California sources and across the literature, and then asked stakeholders in the CPUC Service List associated with SB 350 proceedings to rank and provide their expert opinion on various metrics by their relative importance. From this information, a final weighted evaluation framework was created. The most important metrics for projects targeted under SB 350 were tangible benefits for local community members; improvements in local air pollution; transparent and collaborative community engagement; consideration of end-of-life impacts, and enhanced access to additional sustainable technologies. The least important metrics include forecasted business closures; potential for accident zones; effects on native flora and fauna; upstream impacts (i.e., through raw material acquisition or construction phases), and/or the support of distributed generation and the development of micro-grids in electrification plans. The framework developed as part of this research supports program evaluation by guiding program administrators through a set of questions designed to facilitate a detailed account of expected outcomes and potential externalities. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, Disadvantaged Communities, Senate Bill 350, transportation electrification, evaluation framework
    Date: 2022–01–01
  62. By: François Facchini (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This article critiques the goal of zero waste and the legislative and planning instruments implemented to achieve it. It places itself in the perspective opened by Julian Simon and the new economics of resources (NER), which challenges the idea that we should fear the depletion of natural resources (the position of the Club of Rome). It develops three proposals. First of all, he argues that the issue is not so much the volume of waste than its management (1). A small amount of untreated waste is more dangerous than a large amount of well managed. It then reminds us that high-income countries are those that manage their waste best (2). Finally, it supports the idea that waste policy should not be inspired by the reduction of the quantity of waste, but by the rule of responsibility; everyone should be responsible for their waste and bear the costs of its management (3). If these three results were taken into account in the debates, we would probably have public policies that is more respectful of the general interest (4).
    Abstract: Cet article questionne l'objectif du zéro déchet et des instruments législatifs et de planification mis en œuvre pour y parvenir. Il se place dans la perspective ouverte par Julian Simon et la nouvelle économique des ressources qui conteste l'idée qu'il faille craindre un épuisement des ressources naturelles (position du club de Rome). Il développe trois propositions. Il soutient, tout d'abord, que l'enjeu est moins le volume des déchets que leur gestion (1). Une petite quantité de déchet non traitée est plus dangereuse qu'une grande quantité de déchets bien gérée. Il rappelle, ensuite, que les pays à hauts revenus sont ceux qui gèrent le mieux leurs déchets (2). Il défend, enfin, l'idée que la politique des déchets ne doit pas être inspirée par la baisse de leur quantité, mais par la règle de la responsabilité ; chacun doit être responsable de ses déchets et en supporter les coûts de gestion (3). Si ces trois résultats étaient pris en compte dans les débats, nous aurions probablement des politiques publiques moins liberticides et plus respectueuses de l'intérêt général (4).
    Keywords: déchets, prix, responsabilité, marché
    Date: 2021–07
  63. By: Antoine Bonleu (CEREQ - Centre d'études et de recherches sur les qualifications - ministère de l'Emploi, cohésion sociale et logement - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche)
    Abstract: Ce document présente une taxonomie des compétences vertes réalisée via un travail préliminaire et exploratoire de l'analyse des offres d'emploi en ligne. La taxonomie est classifiée en fonction de la nature et des spécificités des compétences détectées. Enfin, ce travail illustre le potentiel de ce type d'exercice pour caractériser et analyser la dissémination des compétences vertes.
    Keywords: Ecologie,Offre d'emploi,Compétence,Nomenclature des métiers et des formations
    Date: 2021
  64. By: Jonas Heiberg (Eawag, Swiss Federal Institute of Aquatic Science and Technology, Switzerland); Bernhard Truffer (Eawag, Swiss Federal Institute of Aquatic Science and Technology, Switzerland)
    Abstract: Innovation studies is increasingly acknowledging the multi-scalar nature of the systemic contexts, in which innovations are being developed and deployed. This paper builds on and further develops a recently proposed framework for studying global innovation systems (GIS). It aims at explaining the emergence of a GIS by outlining the specific local resource-related conditions that lead to the creation of structural couplings, i.e. actors, networks and institutions that allow for multi-scalar resource flows. Deploying a qualitative case study, the paper investigates eight demonstration sites for an innovative wastewater treatment technology in North-Western Europe. It shows how resource-related deficits lead actors to draw on resources generated outside of their local context. The paper contributes to the literature on the Geography of Transitions by highlighting the importance of resource complementarities among different local contexts, as well as the crucial role of translocal systemic intermediaries in shaping emergent GIS.
    Keywords: Global innovation systems (GIS), multi-scalar resource flows, systemic intermediaries, geography of transitions, modular water technologies
    Date: 2021
  65. By: Angela Köppl; Stefan Schleicher (WIFO); Margit Schratzenstaller; Karl W. Steininger (University of Graz, Wegener Center for Climate and Global Change)
    Abstract: Durch die COVID-19-Pandemie werden die Verwundbarkeit und die Systemrisiken von komplex vernetzten, globalen Wirtschaftsstrukturen sichtbar. Systemrisiken und Verwundbarkeit der bestehenden Strukturen sind nicht nur für Pandemie-Ereignisse gegeben, sondern treffen auch auf andere mögliche Störungen wie etwa die absehbare Klimakrise zu. Entsprechend gilt es, die Erfahrungen aus der COVID-19-Pandemie über die Verwundbarkeit unseres Wirtschaftssystems in Hinblick auf eine Vermeidung von Klimarisiken zu nutzen. Meldungen, dass die Maßnahmen zur Eindämmung der Ausbreitungsgeschwindigkeit des SARS-CoV-2 und damit die COVID-19-Krise eine Verringerung der Emissionen zu Folge haben, sind kritisch zu bewerten: Nicht die Emissionen eines Jahres bestimmen die klimaverändernde Wirkung, sondern die Konzentration der Treibhausgase in der Atmosphäre. Um tatsächlich eine Trendwende zu erreichen, müssen die Treibhausgasemissionen in Österreich wie weltweit mit strukturell wirksamen Maßnahmen dauerhaft gesenkt werden. Entsprechend sind auch die staatlichen Maßnahmen zur Bewältigung der COVID-19-Krise so zu setzen, dass sie auch zur Abmilderung des Klimawandels beitragen und unser Wirtschaftssystem weniger verletzlich machen.
    Keywords: TP_COVID
    Date: 2020–04–11
  66. By: Upton, Joanna; Tennant, Elizabeth; Fiorella, Kathryn J.; Barrett, Christopher B.
    Abstract: Resilience offers a useful lens for studying how human well-being and the systems on which it depends can absorb and recover from a range of shocks and stressors, including events such as the COVID-19 pandemic. Looking beyond the direct effects of observable shocks and individual or household resilience capacities to the meso-level mechanisms that shape impacts on communities, households, and individuals can both guide our understanding of COVID-19 impacts and help leverage findings from the pandemic context to better understand resilience to other food systems shocks, past, present, and future. We develop a conceptual framework for the multiple paths through which observed, exogenous shocks interact with systemic, endogenous mechanisms to influence the resilience of household well-being and supporting food systems. We illustrate this framework with reference to the COVID-19 pandemic and policy responses as they unfolded in three rural study areas in Malawi, Madagascar, and Kenya. Consistent with this framework, we find multiple pathways through which the pandemic shock affected household food security and resilience. Our findings highlight that in some settings, at some points in the multi-stressor trajectory of a shock, the more serious, direct effects – in this case, severe illness and mortality from SARS-CoV-2 – may impact far fewer people than do the substantive, indirect impacts that arise as behaviors, markets, and policies adjust to the shock. These adjustments are necessarily correlated and elicit varied household coping responses. We illustrate the degree to which, from the point of view of rural food systems and households, COVID-19 is a new shock but its massive, broad-reaching impacts manifest through familiar stressors and uncertainties that frequently burden poor rural populations in much of the lowand middle-income world
    Keywords: Community/Rural/Urban Development
    Date: 2021–11–30
  67. By: Zhao, Tian (School of Economics and Management, Beihang University); Liu, Zhixin (School of Economics and Management, Beihang University); Jamasb, Tooraj (Department of Economics, Copenhagen Business School)
    Abstract: Diffusion of hydrogen refueling stations (HRS) is key to promotion of hydrogen vehicles. In this paper, we explore the nexus between critical stakeholders in the hydrogen industry from a game perspective. We investigate the proposed policy for promotion of hydrogen vehicles in China. We model the three main actors in hydrogen infrastructure development, i.e. public sectors, private investors, and consumers. The tripartite evolutionary game analyzes the interactive policy process of subsidy provision, infrastructure investment, and fuel consumption. We then examine the evolutionary stable strategy (ESS) of the system. We propose a policy mechanism for how to set values of key parameters to promote active cooperation of the three actors in HRS diffusion. A numerical simulation validates the solution of the game and sensitivity analyses of initial probabilities and key parameters. We find that boosting initial willingness of actors to choose cooperative hydrogen strategies is beneficial to lead the game system to the ideal consequence. We offer some recommendations including establishing regulation standards for the construction of HRS, increasing financial incentives to each actor and decreasing the cost of HRS and retail price of hydrogen.
    Keywords: Hydrogen infrastructure; Evolutionary game; Numerical simulation; China
    JEL: C73 Q42 Q48 R42
    Date: 2021–11–21

This nep-env issue is ©2022 by Francisco S. Ramos. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.