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on Environmental Economics |
| By: | Carlos Marinheiro; Amilcar Sousa; Ana Pinheiro |
| Abstract: | The Green Budgeting technique is being adopted by an increasing number of countries and has the potential to align fiscal policy objectives with climate and environmental goals. Given that the (financial) sustainability of public finances and environmental sustainability are intrinsically interconnected with each other, this paper argues that the traditional public debt sustainability analysis should be expanded to encompass climate and environmental sustainability considerations. Other key elements of a proper budgetary framework, such as fiscal transparency should also be broadened to include the disclosure of the environmental and climate impacts of fiscal policy. Green Budgeting is a growing technique that can be used to expand the scope of such usual fiscal concepts. One of the main tools for its adoption is Green Budget Tagging, which enables citizens to assess the environmental and climate impacts of fiscal policy, on both the tax and spending sides of the state budget. It enables to capture both the positive and negative impacts of fiscal policy. Additionally, it provides more visibility to the amount of resources countries allocate to climate and environment goals and to mitigation and adaptation policies, while allowing the assessment of whether such goals are attained. A proper working fiscal framework, including the adoption of accrual accounting and performance programme budgeting, seems to be instrumental in this domain along with strong political commitment. Portugal already took a few steps, such as recently enacted Climate Law, but still has a long way to go in terms of Green Budgeting. This paper proposes a roadmap for its adoption. To start with, both the completion of the public accounts reform and the full adoption of programme budgeting foreseen in the 2015 Budgetary Framework Law should be attained. The meeting of such two pre-conditions will then lay the foundations for the implementation of Green Budgeting and to disclose the climate and environmental impacts of policy measures, following the international best practices. The adoption of Green Budgeting might also pave the way to the emission of Green Bonds to finance specific environmental and climate related projects. Such bonds might be a cost-effective way to finance the substantial green investment needs in a highly indebted country while contributing to the decrease of global risk. |
| Keywords: | green budgeting; sustainability; green tagging; green financing; budgeting; Portugal |
| JEL: | H5 H61 H63 Q58 Q51 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:alf:wpaper:2022-01&r= |
| By: | Giorgos Galanis; Giorgio Ricchiuti; Ben Tippet |
| Abstract: | By building a simple discrete choice model, we study possible paths regarding country participation in international environmental agreements (IEAs) on climate change. Preferences for action are influenced by (i) the growth rate of emissions, (ii) participation of others in IEAs, and (iii) heterogeneous costs and preferences for action. We find a variety of outcomes depending on the relative strength of effects, where sustained high level of cooperation is just one possibility. More specifically, we find that a short run increase in climate action may be followed by a decline later, while non trivial dynamics that make the evolution less predictable are another possibility. Our results indicate that a reduction in global inequalities related to low carbon transition costs are a necessary condition for sustained high levels of cooperation. |
| Keywords: | Green Transition, Discrete Choice Model, Political Economy |
| JEL: | E7 F5 Q5 C62 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2022_22.rdf&r= |
| By: | Lassalas, Marie; Chatellier, Vincent; Detang-Dessendre, Cécile; Dupraz, Pierre; Guyomard, Hervé |
| Abstract: | The future CAP displays a greater climate and environmental ambition sought notably through the new first-pillar instrument of the eco-scheme. This article analyses the access conditions of farmers to the French eco-scheme through the so-called environmental certification way. Our results highlight the low level of climate and environmental ambition of this access way since almost all farms would have access to the first level and more than a third to the upper level without any change in their current practices. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy |
| Date: | 2022–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:inrasl:324701&r= |
| By: | CIAMBRA Andrea; STAMOS Iraklis (European Commission - JRC); BERTOZZI Cecilia (European Commission - JRC); SIRAGUSA Alice (European Commission - JRC) |
| Abstract: | Over the past few years, Voluntary Local Reviews (VLRs) have become a common tool for local and regional governments (LRGs) to monitor local achievements and implementation of the Sustainable Development Goals (SDGs). Many LRGs rely on policy analysis and quantitative data to assess initiatives and regulations in several SDG-related policy fields. While working on its own VLR, the City of Madrid published in March 2021 its Roadmap to Climate Neutrality by 2050. The Roadmap was a valuable policy document because it gave insight on a fully local long-term policy strategy on a sensitive policy issue such as decarbonisation and climate change. This report studies the process that led to the Roadmap, highlighting the links between the document and Madrid's longstanding tradition of regulation on greenhouse gas emissions, climate change mitigation, and other decarbonisation measures. It also studies how the Roadmap - a planning document on a specific sustainability issue - compares to existing VLRs from Europe and elsewhere in terms of selected indicators, collected data, and policy lines of action. This information can help define a 'localised' concept of climate neutrality and assess whether a genuinely local approach to decarbonisation currently exists, and how this fits with the targets identified by the SDGs and the 2030 Agenda at the global level. |
| Keywords: | decarbonisation, climate neutrality, madrid, roadmap, SDGs |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc130230&r= |
| By: | Ozili, Peterson Kitakogelu |
| Abstract: | This paper reviews the existing research on green finance. It identifies the important themes in the green finance literature, particularly, the strategies to increase green financing; efforts to make green investment profitable; promoting green financing using technology and policy, the role of regulators and financial institutions in the green finance agenda, and the challenges of green financing. Several cross-country observations about the challenges of green finance and solutions to green finance issues are documented. The findings show that green finance has the potential to make a significant difference in the environment, society and for climate change mitigation, but many challenges abound such as the lack of awareness about green finance, inconsistent definitions of green finance, lack of policy coordination for green financing, inconsistent policies, and lack of profitable incentives to investors and financial institutions who are willing to invest in climate change mitigation. |
| Keywords: | literature review, green finance, green investment, climate change, sustainable finance, green bonds, green banks, sustainable development goals, climate finance, environment, green loan, climate change mitigation. Paris Agreement, COP26. |
| JEL: | G21 G23 Q52 Q56 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114899&r= |
| By: | Taheripour,Farzad; Chepeliev,Maksym; Damania,Richard; Farole,Thomas; Lozano Gracia,Nancy; Russ,Jason Daniel |
| Abstract: | Can countries reorient their productive capacity to become more environmentally friendly and inclusive? To investigate this question, this paper uses a standard input-output modeling framework and data from 141 countries and regions to construct a new global data set of employment, value-added, greenhouse gas emissions (disaggregated into carbon dioxide and non-carbon dioxide elements), and air pollution (including nine categories of air pollutants such as fine particulate matter multipliers from supply-side investments. The analysis finds that many of the traditional sectors in agriculture and industry have large employment multipliers, but also generate male dominant, lower skill employment, and tend to have higher emissions multipliers. It is in economies dominated by these sectors that trade-offs to a “greener” transition will emerge most sharply. However, the analysis finds substantial heterogeneity in outcomes, so even in these economies, there exist other sectors with high employment multipliers and low emissions, including sectors that are more conducive to female employment. In addition, the analysis finds a high correlation between industries that generate greenhouse gas emissions, which cause long-term climate impacts, and those that generate air pollution, which have immediate harmful impacts on human health, suggesting that policies could be designed to confer longer climate benefits simultaneously with immediate health improvements. The results confirm some of the findings from recent research and shed new light on opportunities for greening economies. |
| Keywords: | Transport Services,International Trade and Trade Rules,Health Care Services Industry,Energy and Environment,Energy Demand,Energy and Mining,Livestock and Animal Husbandry |
| Date: | 2021–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9742&r= |
| By: | Burns,Andrew,Jooste,Charl,Schwerhoff,Gregor |
| Abstract: | As the effects of climate change become increasingly evident, the design and implementation of climate-aware policies have assumed a more central role in the macroeconomic policy debate. With this has come an increasing recognition of the importance of introducing climate into the economic policy making tools used by central economic policy making agencies (such as ministries of finance and ministries of planning). This paper integrates climate outcomes into a macro-structural model for Pakistan, the kind of model that is suitable for use on a regular basis by ministry staff. The model includes the standard set of variables and economic logic that are necessary for the kinds of forecasting, economic policy, and budgetary planning analysis typically conducted by central ministries. In addition to standard outputs (unemployment, inflation, gross domestic product growth, and fiscal and current accounts), the model generates climate outcomes (tons of carbon emitted and economic and health damages due to higher temperatures and pollution). These outcomes are generated when specific climate policies such as mitigation are analyzed, but also when other policies are analyzed that might have unanticipated climate impacts. The paper describes the changes made to the World Bank’s standard macro structural model, MFMod, in integrated climate outcomes, climate policies, and the economic impacts of climate on Pakistan’s economy. Notably, carbon-tax scenarios show that a $20 carbon tax can reduce emissions in Pakistan by 36 percent by 2050. Gross domestic product impacts could also be positive, if the revenues from the carbon tax were used to reduce reliance on heavily distorting taxes. The model also quantifies associated co-benefits from reduced local air pollution and better health and productivity outcomes. In the absence of action to restrain climate change, the model suggests that increased temperatures and rain variability could reduce output by as much as 10 percent compared with a scenario where global temperature rises were minimized. |
| Keywords: | Climate Change and Environment,Climate Change and Health,Science of Climate Change,Adaptation to Climate Change,Energy and Environment,Energy Demand,Energy and Mining,Natural Disasters,Climate Change Mitigation and Green House Gases |
| Date: | 2021–09–23 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9780&r= |
| By: | van Soest,Daan; Adjognon,Guigonan Serge; van der Heijden,Eline |
| Abstract: | Payments for environmental services are a nature conservation policy in which landowners receive financial compensation conditional on verified environmental service delivery. Contracts for payments for environmental services have been found to be effective in inducing conservation on private lands, but they may give rise to strong free-riding incentives when implemented on lands that are, de facto or de jure, commonly owned. This study implemented a randomized controlled trial in arid Burkina Faso to test the relative effectiveness of two collective payment for environmental services schemes in inducing forest conservation—a linear group payment scheme, in which group payments increase linearly with tree survival rates, and a threshold group payment scheme. The extant theory predicts that the latter incentive mechanism will (weakly) outperform the former. This paper develops a new theory that shows that the reverse may also hold—but only if the relationship between effort and tree survival rates is very uncertain. The findings show that threshold group payments increase intermediate measures of cooperation, but—consistent with Burkina Faso’s harsh conditions rendering tree survival quite stochastic—actual survival rates are higher with the linear group payments. The paper presents field experimental evidence as well as lab experimental results to explore the mechanisms giving rise to these results. |
| Keywords: | Natural Resources Management,Sustainable Land Management,Coastal and Marine Resources,Forestry Management,Energy and Natural Resources,Sustainable Land and Crop Management,Forestry,Forests and Forestry,Natural Resources Management and Rural Issues,Environmental Protection,Environmental Disasters&Degradation,Science of Climate Change,Climate Change and Health,Climate Change and Environment,Health Care Services Industry |
| Date: | 2021–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9693&r= |
| By: | Nico, Gianluigi; Azzarri, Carlo; Ringler, Claudia |
| Abstract: | Agriculture is strongly affected by environmental factors, including variability in temperature and precipitation, which in turn shape the livelihoods farmers derive. In this context, the intensity of engagement in agriculture is directly influenced by temperature and rainfall patterns (ILO 2018). Both extreme weather shocks (that is, heat waves, droughts, and floods) and weather variability (that is, changes in temperature and rainfall patterns) can significantly disrupt participation in agriculture and related sectors, particularly when farmers’ capacity to cope with and adapt to these shocks is low. This policy note summarizes the results of a study designed to quantify the impact of climate variability and extreme weather shocks on the intensity of individuals’ participation in the agricultural sector in Africa, where intra-annual weather variability is high, and dependence on rainfed agriculture is significant. The study specifically focused on changes in the number of weekly hours worked in response to weather variability and climate extremes, and explored both the impact on women’s participation and their potential to mitigate the negative effects of these shocks. |
| Keywords: | AFRICA SOUTH OF SAHARA, CENTRAL AFRICA, EAST AFRICA, NORTH AFRICA, SOUTHERN AFRICA, WEST AFRICA, agriculture, weather, climate change, environment, farmers, women, agricultural employment, extreme shocks |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gcanpn:14&r= |
| By: | Olatunji A. Shobande (University of Aberdeen, UK); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The study examines the role of natural resources and the carbon emission Kuznets curve (CKC) in managing the climate crisis in Africa, using annual series data from the World Bank from 1980 to 2019. The empirical strategy is based on the second-generation panel techniques that account for cross-sectional dependency in the series. Specifically, the empirical evidence is based on the Westerlund (2017) panel cointegration test, panel augmented mean group (AMG), common correlated effects mean group (CCEMG) and the vector autoregressive-vector error correction (VAR) approach. Evidence from the panel analysis confirmed the existence of CKC U-shaped nexus in Africa, but the country-level results are mixed. Furthermore, results using the vector autoregressive-vector correction model indicate possible convergence among the variables across the African countries. Also, natural resource unidirectionally Granger-causes carbon emissions. We suggest the consideration of environmental factors in the utilisation of natural resources. Similarly, energy efficiency is crucial to decouple carbon from energy usage. Our results highlight the importance of the effective and efficient management of natural resources, and energy efficiency in mitigating the aftermath of carbon emissions and preventing a climate crisis in Africa. |
| Keywords: | Carbon Kuznets Curve; carbon emission; Natural resource; climate crisis; Time series analysis; Africa |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/077&r= |
| By: | Olatunji A. Shobande (University of Aberdeen, UK); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The study examines the role of natural resources and the carbon emission Kuznets curve (CKC) in managing the climate crisis in Africa, using annual series data from the World Bank from 1980 to 2019. The empirical strategy is based on the second-generation panel techniques that account for cross-sectional dependency in the series. Specifically, the empirical evidence is based on the Westerlund (2017) panel cointegration test, panel augmented mean group (AMG), common correlated effects mean group (CCEMG) and the vector autoregressive-vector error correction (VAR) approach. Evidence from the panel analysis confirmed the existence of CKC U-shaped nexus in Africa, but the country-level results are mixed. Furthermore, results using the vector autoregressive-vector correction model indicate possible convergence among the variables across the African countries. Also, natural resource unidirectionally Granger-causes carbon emissions. We suggest the consideration of environmental factors in the utilisation of natural resources. Similarly, energy efficiency is crucial to decouple carbon from energy usage. Our results highlight the importance of the effective and efficient management of natural resources, and energy efficiency in mitigating the aftermath of carbon emissions and preventing a climate crisis in Africa. |
| Keywords: | Carbon Kuznets Curve; carbon emission; Natural resource; climate crisis; Time series analysis; Africa |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/077&r= |
| By: | Behrer,Arnold Patrick; Wang,Sherrie |
| Abstract: | Wildfires throughout western North America produce smoke plumes that can stretch across theagricultural regions of the American Midwest. Climate change is likely to increase the number and size of these fires andsubsequent smoke plumes. These smoke plumes change direct, diffuse, and total sunlight during the crop growing seasonand consequently influence yields of both corn and soybeans. The analysis in this paper uses a twelve-year panel ofcounty-level yields from all counties east of the 100th meridian combined with measures of exposure to smoke plumesof low and high density during the growing season. It shows that low-density plumes enhance yields, likely by increasingin the fraction of diffuse light, while high-density plumes decrease yields. Because there are more low-density plumestoday, the net effect is a slight increase in yields on average. As climate change makes wildfires larger and morefrequent, the overall impact of smoke on yields is expected to be substantially more negative. |
| Keywords: | Climate Change and Environment,Climate Change and Health,Science of Climate Change,Crops and Crop Management Systems,Climate Change and Agriculture,Brown Issues and Health,Pollution Management & Control,Air Quality & Clean Air,Social Aspects of Climate Change,Climate Change Impacts |
| Date: | 2022–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9953&r= |
| By: | Filippo Maria D'Arcangelo (OECD, Economics Department); Marzio Galeotti (Department of Environmental Science and Policy, University of Milan and Fondazione Eni Enrico Mattei) |
| Abstract: | This paper empirically investigates the effect of the European Emission Trading Scheme (EU ETS) on cross-country investments. To avoid carbon leakage, the scheme allocates a number of free allowances to firms at risk of relocating investments in areas outside the EU ETS. To study this problem, we employ a model of the firm’s investment decision in conjunction with novel firm-level data. In contrast with most previous literature, we stress the importance of firms’ heterogeneity in the analysis and leverage it. We derive conditions for the firm’s optimal emissions to construct a measure of investment sensitivity to carbon pricing from observed pollution data. This allows to identify the effect of the EU ETS on international investments by comparing the expected profits from investing in several different countries. We find that investments react to carbon pricing and that the effect is stronger for more polluting investments. However, the aggregate amount of diverted investments is small. We moreover show that the lost investments do not justify, alone, the generous compensations scheme aimed at retaining investments. |
| Keywords: | Emission trading, carbon leakage, investment location, EU ETS |
| JEL: | D22 F18 Q52 Q54 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2022.27&r= |
| By: | Abdulla, Eman (Department of Economics, University of Warwick); Lim, King Yoong (International Business School Suzhou, Xian Jiaotong-Liverpool University); Morris, Diego (Nottingham Business School, Nottingham Trent University); Saliba, Faten (International Monetary Fund) |
| Abstract: | This paper examines the nexus between gender equality, climate change, and innovation at the firm level. Based on three hypotheses derived from a novel theoretical framework linking climate change and gender equality to within-firm innovation activities, we use a cross-section dataset of 87, 996 firms across 36 industries in 103 countries, surveyed across different waves during the 2010-2020 periods to implement an instrumental variable strategy and show that environmental policies unambiguously induce firm-level process and product innovation, through its influence on the endogenous bargaining power of women in society and firms. We document that female productivity has both a direct effect on innovation (0.1-1.3% increase in the likelihood of innovation) and an indirect effect (serving as the intermediation for the environment-innovation nexus). Contrarily, greenhouse gas emissions by themselves have an ambiguous effect on innovation. The type of greenhouse gas emissions and the measure of innovation both contribute to this ambiguity. Overall, our results show that it is not the physics of climate change that induces innovation but rather the countervailing human responses to policies that mitigate climate change that stimulate innovation. |
| Keywords: | Climate change ; firm-level analysis ; gender equality ; innovation. JEL Codes: D24 ; J16 ; L25 ; O32 ; Q58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1429&r= |
| By: | Gerling, Charlotte; Schöttker, Oliver; Hearne, John |
| Abstract: | Climate change causes range shifts of species and habitats, thus making existing reserve networks less suitable in the future. In principle, reserve networks may be adapted to climate change in two ways: by providing additional funds and / or by allowing for the sale of sites to liquidate funds for new purchases. However, due to general negative ecological consequences, selling is often strongly regulated, thus rendering the optimal reserve site selection a problem of irreversible investment decisions. On the other hand, allowing for sale may be interpreted as an investment with costly reversibility, as involved transaction costs do not allow for full recovery of the initial investment. Whether allowing for the sale of sites to increase flexibility under climate change outweighs the costs of this increased flexibility remains an open question. We develop a conceptual climate-ecological-economic model to find the optimal solution for the reserve site selection problem under changing climatic conditions and different policy scenarios. These scenarios differ in terms of whether and when additional funds are provided, and whether selling of reserve sites is allowed. Our results show that the advantage of allowing for sales is large when no additional funds are available and decreases as the amount of additional capital provided for adaptation increases. Finally, providing a one-off payment initially instead of regular payments throughout the runtime of the model leads to higher habitat protection. |
| Keywords: | Biodiversity conservation; conservation planning; climate adaptation; climate-ecological-economic modelling; ecological-economic modelling; habitat conservation; irreversible investment; investment of costly reversibility; selling reserve sites |
| JEL: | C61 C63 D89 D99 Q24 Q54 Q57 Q58 |
| Date: | 2022–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114812&r= |
| By: | Dasgupta,Susmita; Lall,Somik V.; Wheeler,David R. |
| Abstract: | This paper estimates an urban carbon dioxide emissions model using satellite-measured carbondioxide concentrations from 2014 to 2020, for 1,236 cities in 138 countries. The model incorporates the global trend incarbon dioxide concentration, seasonal fluctuations by hemisphere, and a large set of georeferenced variables thatincorporate carbon dioxide–intensive industry structure, emissions from agricultural and forest fires in neighboringareas, demography, the component of income that is uncorrelated with industry structure, and relevantgeographic conditions. The income results provide the first test of an Environmental Kuznets Curve relationship forcarbon dioxide based on actual observations. They suggest an environmental Kuznets curve that reaches a peak near orabove $40,000 per capita, which is at the 90th percentile internationally. The research also finds that economicdevelopment has a significant effect on the direction of the relationship between population density and carbon dioxideemissions. The relationship is positive at very low incomesbut becomes negative at higher incomes. The paper also uses cities’ mean regression residuals to index their carbondioxide emissions performance within and across regions, decomposes model carbon dioxide predictions into broadsource categories for each city, and uses the regression residuals to explore the impact of subway systems. Thefindings show significantly lower carbon dioxide emissions for subway cities. |
| Keywords: | Railways Transport,Transport Services,Energy and Environment,Energy and Mining,Energy Demand,Transport in Urban Areas,Urban Transport |
| Date: | 2021–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9845&r= |
| By: | Riccardo Gianluigi Serio; Maria Michela Dickson; Diego Giuliani; Giuseppe Espa |
| Abstract: | The transition to more environmentally sustainable production processes and managerial practices is an increasingly important topic. Many industries need to undergo radical change to meet environmental sustainability requirements; the tourism industry is no exception. In this respect, a particular aspect that needs further attention is the relationship between airport performances and investments in environmental sustainability policies. This work represents a first attempt to provide empirical evidences about this relationship. Through the application of a non-parametrical method, we first assess the efficiency of the Italian airports industry. Secondly, we investigated the relationship between airports performance and management commitment toward the ecological transition using a Tobit regression model. The results show that airports' adherence to formal multi-year ecological transition programs has a positive and consistent impact on their performance. |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2210.02736&r= |
| By: | Macdonald,Kevin Alan David; Patrinos,Harry Anthony |
| Abstract: | Carbon pricing is increasingly used by governments to reduce emissions. The effect of carbonpricing on economic outcomes as well as mitigating factors has been studied extensively since the early 1990s. Onemitigating factor that has received less attention is education quality. If technological change that reduces thereliance of production on emissions is skill-biased, then carbon pricing may increase the skill premium of earningsand subsequent wage inequality; however, a more elastic skill supply through better education quality may mitigateadverse economic outcomes, including wage inequality, and enhance the effect of carbon pricing on technological changeand subsequently emissions. A general equilibrium, overlapping-generations model is proposed, with endogenousskill investment in which the average skill level of the workforce can affect the need for emissions in an aggregateproduction function. This study uses data on industrial emissions linked to the Organisation for EconomicCo-operation and Development’s Programme for International Assessment of Adult Competencies dataset for European Unioncountries. The findings show that, within countries, cognitive skills are positively associated with employmentin industries that rely less on emissionsfor production and in industries that, over time, have been able to reducetheir reliance on emissions for production. In the estimated general equilibrium model, higher cognitive skills reduce aneconomy’s reliance on emissions for production. Having higher quality education—defined as the level of cognitiveskills attained by workers per unit of cost—increases the elasticity of skill supply and, as a result, mitigates acarbon tax’s economic costs including output loss and wage inequity, and enhances its effect on emissions reduction.The implication is that investments in education quality are needed for better enabling green technological innovationand adaptation and reducing inequality that results from carbon pricing. |
| Keywords: | Educational Sciences,Climate Change Mitigation and Green House Gases,Education for Development (superceded),Educational Populations,Education For All |
| Date: | 2021–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9808&r= |
| By: | Bassi,Vittorio; Kahn,Matthew Edwin; Lozano Gracia,Nancy; Porzio,Tommaso; Sorin,Jeanne |
| Abstract: | Developing countries suffer from rising urban pollution levels, with associated negative effects on health and worker productivity. This paper studies how managers in developing country cities cope with the polluted environment. High-resolution pollution measurements were collected in Ugandan cities and matched with a novel firm survey. The analysis finds that firms locate in close proximity to major polluted roads, which bundle a bad (exposure to pollution) with a good (market demand). Higher ability managers do not avoid polluted areas; instead, they adapt to the pollution by protecting their workers through the provision of equipment and flexibility in work schedule. |
| Keywords: | Adaptation to Climate Change,Health Care Services Industry,Climate Change Mitigation and Green House Gases,Skills Development and Labor Force Training,Brown Issues and Health,Pollution Management&Control,Air Quality&Clean Air |
| Date: | 2021–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9743&r= |
| By: | Claudia Teran-Escobar (SENS - Sport et Environnement Social - UGA - Université Grenoble Alpes, PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Sarah Duché (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Hélène Bouscasse (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Sandrine Isoard-Gautheur (SENS - Sport et Environnement Social - UGA - Université Grenoble Alpes); Patrick Juen (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Lilas Lacoste (SENS - Sport et Environnement Social - UGA - Université Grenoble Alpes, PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Sarah Lyon-Caen (IAB - Institute for Advanced Biosciences / Institut pour l'Avancée des Biosciences (Grenoble) - CHU - Centre Hospitalier Universitaire [Grenoble] - INSERM - Institut National de la Santé et de la Recherche Médicale - EFS - Etablissement français du sang - Auvergne-Rhône-Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Sandrine Mathy (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Estelle Ployon (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Anna Risch (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Philippe Sarrazin (SENS - Sport et Environnement Social - UGA - Université Grenoble Alpes); Rémy Slama (IAB - Institute for Advanced Biosciences / Institut pour l'Avancée des Biosciences (Grenoble) - CHU - Centre Hospitalier Universitaire [Grenoble] - INSERM - Institut National de la Santé et de la Recherche Médicale - EFS - Etablissement français du sang - Auvergne-Rhône-Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Kamila Tabaka (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Carole Treibich (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Sonia Chardonnel (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Aïna Chalabaev (SENS - Sport et Environnement Social - UGA - Université Grenoble Alpes) |
| Abstract: | Background: Frequent car use contributes to health and environmental issues such as air pollution, climate change and obesity. Active and sustainable mobility (bike, walk, public transport, car sharing) may address these issues. Different strategies have been implemented in past research, involving hard levers, aimed at modifying the economical or geographical context (e.g., free public transport), and soft levers, aimed at modifying psychological processes (e.g., personalised transport advice). However, few studies have combined both hard and soft levers. In addition, few have used robust methodologies (e.g., randomised controlled trials), followed behavioural changes in the longterm, and been anchored in behaviour change theories. InterMob aims to address these limits by implementing a 24-month randomised controlled trial including hard and soft levers. The objectives of InterMob are to a) evaluate the effectiveness of an experimental arm versus an active controlled arm, and b) identify the processes of mobility change. Methods: Regular car users living in Grenoble (N = 300) will be recruited and randomised to one of the two arms. The experimental arm consists in a six-month intervention combining hard levers (free access to transport/bikes), and soft levers (e.g., personalised transport advice). The control arm consists in a six-month intervention aimed at raising awareness on air pollution and its health effects. Both arms will include eight evaluation weeks (spread out over 24 months) based on a GPS, an accelerometer, and a pollution sensor. Moreover, participants will complete mobility logbooks and surveys measuring psychological constructs, socio-economical, and socio-spatial characteristics. Discussion: InterMob will assess the effectiveness of two interventions aimed at reducing car use within regular car users in the short-, mid- and long-term. Moreover, InterMob will allow to better understand the psychological processes of behaviour change, and the socio-economical and geographical conditions under which the intervention is efficient in reducing car use. Finally, the benefits of mobility change in terms of physical activity, quality of life, and exposure to pollution will be quantified. Trial registration: Clini calTr ials. gov: NCT05096000 on 27/10/2021 (retrospectively registered). |
| Keywords: | Daily mobility,Spatial organisation,Psychology,Car use,Active mobility,Sustainable mobility,Behaviour change,Health,Air pollution,RCT |
| Date: | 2022–09–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03781415&r= |
| By: | Strand,Jon |
| Abstract: | Border carbon adjustments imply that high-income countries set taxes on energy-intensive imports that are proportional to the carbon content of these imports, to match their own carbon taxes. This paper considers the impacts of such a policy on exporter countries, many of which have no or very low carbon taxes today. The paper first studies a policy whereby the importer allows the exporter’s border tax to be reduced by its own comprehensive carbon tax (“tax rebating”). The analysis finds that the exporter is then incentivized to set its own comprehensive carbon tax at the same rate as the border tax, up to a maximal rate. When the border tax is higher, the exporter instead reduces its carbon tax. Border tax revenues of the high-income country can be returned to incentivize higher carbon taxes in the exporting countries (“carbon crediting”). When tax rebating is not allowed but tax revenues are fully returned, even higher exporter carbon taxes can then be incentivized, possibly exceeding $60 per ton of carbon dioxide in the numerical examples. Border taxation can give rise to export diversion away from border tax-setting countries, which reduces the scope for incentivizing the exporter’s carbon tax. The paper also studies how taxes on oil extraction by oil exporters can be incentivized by oil importing countries, by increasing their oil import prices above world market rates, or more efficiently through support to investments in exporters’ renewable energy capacity. |
| Keywords: | Climate Change Mitigation and Green House Gases,Public Sector Economics,Public Finance Decentralization and Poverty Reduction,Economic Adjustment and Lending,Taxation&Subsidies,Macro-Fiscal Policy,Energy and Environment,Energy and Mining,Energy Demand,Oil&Gas |
| Date: | 2021–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9698&r= |
| By: | Derek Lemoine |
| Abstract: | I study how policymakers can access and act on the information about climate change damages that is dispersed throughout the economy. I analyze a new dynamic deposit-refund instrument (called “carbon shares”) that I show can: i) efficiently price emissions conditional on information, ii) efficiently incentivize removal of past emissions conditional on information, and iii) efficiently aggregate dispersed information about the social cost of emissions. Conventional emission taxes generally succeed at only the first of these objectives. Rather than projecting damages in all future periods and all possible states of the world in order to calculate the optimal tax, the regulator here estimates damages as they are realized and empowers markets to perform price discovery about future damages. |
| JEL: | D82 G14 H23 Q54 Q58 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30535&r= |
| By: | Calice,Pietro; Miguel Liriano,Faruk |
| Abstract: | There is increasing recognition that climate-related and environmental risks are a source of financial risks. Using publicly available data, this paper attempts a preliminary estimation of the physical and transition risks for the banking sector in a sample of economies in Latin America and the Caribbean. The results show that exposure to floods, compounded by high loan concentration in and around countries’ capital cities, represents the most important source of credit risk for the banking sector. After large-scale natural disasters, banks’ nonperforming loans increase by up to 1.4 percentage points in affected provinces. The results also show that banks in the region are exposed to transition risks, especially in Argentina, Bolivia, Paraguay, and Uruguay, due to their high lending to the agriculture sector, which is the largest emitter of greenhouse gases in the countries. Firms operating in transition-sensitive sectors already present signs of financial stress, especially those in the fossil fuel and agriculture sectors. Overall, the results demonstrate the importance for financial authorities in the region to advance in the integration of climate-related and environmental risks in their work. |
| Keywords: | Financial Sector Policy,Natural Disasters |
| Date: | 2021–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9694&r= |
| By: | Lebrand,Mathilde Sylvie Maria; Theophile,Ewane |
| Abstract: | As income increases, people become more mobile and spend more on carbon-intensive transportgoods and services. This paper estimates income elasticities of transport consumption using household survey data for 18countries, which are then used to simulate transport carbon footprint and carbon inequality by 2035. It first shows thatin low- and middle-income countries (i) many households mostly walk and do not use transport services, (ii) incomeelasticity of private transport expenditure is high, and (iii) many households do not own a car. Both results suggesta future steep growth of emissions as incomes expand. Using estimates of income elasticities of vehicle ownership andvehicle use, the paper shows that carbon footprint will increase on average by 52 percent for these countries asincomes reach their 2035 levels. Finally, it decomposes carbon dioxide emissions along the within-country incomedistribution. Car ownership and carbon dioxide emissions are highly concentrated at the top. By 2035, carbon inequalitywill increase in some countries but decrease in others. Such results can be used for modeling future distributionalimplications of climate and energy policies. |
| Date: | 2022–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10010&r= |
| By: | Mark Buntaine; Michael Greenstone; Guojun He; Mengdi Liu; Shaoda Wang; Bing Zhang |
| Abstract: | We conducted a nationwide field experiment in China to evaluate the direct and indirect impacts of assigning firms to public or private citizen appeals treatments when they violate pollution standards. There are three main findings. First, public appeals to the regulator through social media substantially reduce violations and pollution emissions, while private appeals cause more modest environmental improvements. Second, experimentally adding “likes” and “shares” to social media appeals increases regulatory effort, suggesting visibility as an important mechanism. Third, treatment pollution reductions are not offset by control firm increases, based on randomly varying the proportion of treatment firms at the prefecture-level. |
| JEL: | K32 P28 Q52 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30539&r= |
| By: | Timilsina,Govinda R.; Malla,Sunil |
| Abstract: | In response to growing environmental concerns, particularly climate change, governments have encouraged innovation and adoption of clean technologies through various policy measures. At present more than half a trillion US dollars is being invested annually in clean technologies. Based on the existing literature, this study analyzes whether investments in clean technologies increase productivity. The findings are mixed. Employing firm-level data, the majority of ex-post studies show a positive relationship between clean investments and firms’ productivity, especially in the energy-intensive manufacturing sector. Most studies for the transport, building and power sector use an ex-ante, technology or sectoral level analysis instead of ex-post analysis to examine the economics of clean technologies. In the transport sector, transportation services with electricity or hydrogen are still more expensive than that with gasoline and diesel vehicles. Some studies, however, project that cleaner vehicles will be economically attractive within a decade. Many studies report that clean technologies reduce energy consumption and save energy bills in the building sector, although some studies do not agree. Most studies for the power sector indicate that renewable technologies have not yet reduced the average costs of grid electricity because of their intermittency and a smaller share in the total electricity supply. |
| Keywords: | Energy and Mining,Energy Demand,Energy and Environment,Private Sector Economics,Energy Policies&Economics,Renewable Energy,Rural and Renewable Energy |
| Date: | 2021–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9714&r= |
| By: | Dessy,Sylvain Eloi; Tiberti,Luca; Tiberti,Marco; Zoundi,David Aime |
| Abstract: | Climate change and weather shocks pose major challenges for household income security and well-being, especially for smallholder farmers’ communities. In such communities, imperfect risk insurance and labor markets may induce households to use traditional institutions such as polygyny to harness their size and composition to their resilience strategies against these shocks. This paper tests this hypothesis by analyzing how polygyny’s interaction with droughts affects crop yields. For identification, the paper relies on the spatial variation in polygyny’s prevalence across Mali’s rural communes and the randomness of drought episodes. The findings show that polygynous communities are more resilient to drought-induced crop failure. Exploration of the mechanisms shows that polygynous communities diversify their income sources more than monogamous ones, including via child marriage—a phenomenon known to undermine women’s outcomes. As the literature links polygyny to underdevelopment, interventions to eliminate it should make formal resilience and adaptation strategies available to drought-prone communities. Failure to do so may entrench political opposition to enforcing a ban on polygyny and child marriage. |
| Keywords: | Natural Disasters,Crops and Crop Management Systems,Climate Change and Agriculture,Livestock and Animal Husbandry,Food Security,Social Cohesion |
| Date: | 2021–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9663&r= |
| By: | Timilsina,Govinda R.; Dissou,Yazid; Toman, Mike; Heine,Dirk |
| Abstract: | In an economy with substantial informality, a carbon tax can produce fiscal co-benefits that improve economic performance in addition to reducing carbon dioxide emissions. If the carbon tax revenues are used to cut production or labor taxes on formal firms, particularly those not in the energy sector, the cost of imposing the carbon tax is reduced, and there may even be net economic benefits. These tax cuts can also provide an incentive for informal firms to move to formal parts of the economy. This study confirms these hypotheses using a computable general equilibrium model for Côte d’Ivoire. However, the scale and even the sign of overall economic impacts and formal-informal sectoral interactions are sensitive to the scheme and scale of revenue recycling. The largest fiscal co-benefits, in terms of gross domestic product and economic welfare gains, would occur when the entire carbon tax revenue, after keeping the government revenue neutral, is used to cut existing labor or production taxes for non-energy formal firms. Reducing the existing value-added tax also increases gross domestic product and economic welfare, but without reducing the informality. The study also shows that energy producers should be exempted from using the carbon tax revenues to cut their production or labor taxes; otherwise, carbon dioxide reduction decreases due to a rebound effect. Although a carbon tax with lump-sum transfers of revenues is progressive, it would be economically inefficient because of gross domestic product and welfare reduction and lack of incentives to encourage informal activities to move to the formal parts of the economy. |
| Keywords: | Climate Change Mitigation and Green House Gases,Energy and Environment,Energy and Mining,Energy Demand,Labor Markets,Rural Labor Markets |
| Date: | 2021–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9710&r= |
| By: | Buschmann, Christoph; Osterburg, Bernhard |
| Keywords: | Agricultural and Food Policy |
| Date: | 2022–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa181:327306&r= |
| By: | SCALABRINO Chiara |
| Abstract: | This report presents a preliminary literature review and frameworks analysis used for the preparation of the initial phases of the design process of the European Sustainability Competence Framework (GreenComp). Specifically, it includes a literature review conducted between October 2020 and February 2021, and an initial set of competences, to be used as a synthesis of the work done in the fields that contributed to the definition of the sustainability competences or for subsequent expert consultations. This preliminary set of competences especially aimed to be functional for all levels and areas of Lifelong Learning, from early childhood to old age, in formal, non-formal and informal contexts. The report also includes a section on Education for Sustainability as a unique tool to facilitate the learning of the competences. Furthermore, it provides examples of Education for Sustainability behavioural learning objectives and examples of the contribution that the acquisition of sustainability competences can potentially give to the implementation of the EU policy instruments conceived to accelerate the shift to a circular and low carbon economy (e.g., EU Ecolabel, Green Public Procurement or the EU taxonomy for sustainable activities). Finally, benefits and recommendations for scaling up Education for Sustainability are presented. |
| Keywords: | Sustainability. Education for Sustainability. Green education. Green competences |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc130849&r= |
| By: | Flores,Fernanda Martínez; Milusheva,Svetoslava Petkova; Reichert,Arndt Rudiger |
| Abstract: | Migration is one of the channels West African populations can use to adjust to the negative impacts of climate change. Using novel geo-referenced and high- frequency data, this study investigates the extent to which soil moisture anomalies drive international migration decisions within the region and toward Europe. The findings show that drier soil conditions decrease (rather than increase) the probability to migrate. A standard deviation decrease in soil moisture leads to a 2 percentage point drop in the probability to migrate, equivalent to a 25 percent decrease in the number of migrants. This effect is concentrated during the crop-growing season and likely driven by financial constraints. The effect is only seen for areas that are in the middle of the income distribution, with no impact on the poorest or richest areas of a country, suggesting that the former were constrained to start and the latter can address those financial constraints. |
| Keywords: | Crops and Crop Management Systems,Climate Change and Agriculture,Natural Disasters,Inequality,Climate Change and Environment,Climate Change and Health,Science of Climate Change,Food Security |
| Date: | 2021–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9664&r= |
| By: | Olivier Chanel (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Alberto Prati (The University of Mississippi [Oxford], LSE - London School of Economics and Political Science); Morgan Raux (University of Luxembourg [Luxembourg]) |
| Abstract: | We provide an estimate of the environmental impact of the recruitment system in the economics profession, known as the "international job market for economists". Each year, most graduating PhDs seeking jobs in academia, government, or companies participate in this job market. The market follows a standardized process, where candidates are pre-screened in a short interview which takes place at an annual meeting in Europe or in the United States. Most interviews are arranged via a non-profit online platform, econjobmarket.org, which kindly agreed to share its anonymized data with us. Using this dataset, we estimate the individual environmental impact of 1057 candidates and one hundred recruitment committees who attended the EEA and AEA meetings in December 2019 and January 2020. We calculate that this pre-screening system generated the equivalent of about 4800 tons of avoidable CO2-eq and a comprehensive economic cost over €4.4 million. We contrast this overall assessment against three counterfactual scenarios: an alternative in-person system, a hybrid system (where videoconference is used for some candidates) and a fully online system (as it happened in 2020–21 due to the COVID-19 pandemic). Overall, the study can offer useful information to shape future recruitment standards in a more sustainable way. |
| Keywords: | Job market for economists,International job market,Carbon footprint,Environmental impact,Comprehensive economic cost |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03778777&r= |
| By: | Dafermos, Yannis; van Lerven, Frank; Nikolaidi, Maria |
| Abstract: | Capital requirements play a central role in financial regulation and have significant implications for financial stability and credit allocation. However, in their existing form, they fail to capture environment-related financial risks and act as a barrier to the transition to an environmentally sustainable economy. This paper considers how capital requirements can become green and explores how green differentiated capital requirements (GDCRs) can be incorporated into financial regulation frameworks. |
| JEL: | F3 G3 |
| Date: | 2022–10–07 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:116946&r= |
| By: | Miranda,Juan Jose; Butron,Luigi; Pantoja,Chrissie; Gunasekera,Rashmin |
| Abstract: | In recent decades, hurricane frequency and intensity have increased in the CaribbeanBasin. From 2000 to 2012, more than 100 hurricanes impacted lives, infrastructure, and economic activity along theregion’s shorelines. Studies suggest that mangrove forests’ dense root systems might mitigate the impact of hurricanes,which would help stabilize the coastline and prevent erosion from waves and storms. Although many tropical mangroves arefound on Caribbean coasts, climatic and anthropogenic events have been clearing these wetland ecosystems at an annualrate of 1 percent since the 1990s. This study quantifies the effects of hurricane windstorms on economic activity usingnightlight as a proxy at the highest spatial resolution data available (1 square kilometer). Using different widths ofthe mangrove belt, it measures levels of mangrove natural protection against the impact of hurricanes and studies thebroader socioeconomic and environmental effects of this protection. The results suggest that while major hurricanesreduce nightlight by approximately 2 percent and up to 16 percent in storm surge prone areas, the presence ofmangroves on the coast mitigates the impact of hurricanes, reducing nightlight by 1–6 percent. |
| Keywords: | Natural Disasters,Economic Growth,Industrial Economics,Economic Theory & Research,Coastal and Marine Resources,Energy and Natural Resources |
| Date: | 2021–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9863&r= |
| By: | Spiegel, Alisa; Heidecke, Claudia; Osterburg, Bernhard |
| Keywords: | Agricultural and Food Policy |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa181:327299&r= |
| By: | Marie Merlo; Thia Hennessy; Cathal Buckley; Seamus O’Mahony |
| Keywords: | Agricultural and Food Policy |
| Date: | 2022–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa181:327307&r= |
| By: | Timilsina,Govinda R. |
| Abstract: | Distributed photovoltaics are a growing technology for grid electricity consumers in low- and middle-income countries due to declining costs and government support. In Bangladesh, distributed photovoltaics iare part of broader solar and consumer programs. This study analyzes the economics of stylized grid-connected residential, commercial, and industrial distributed photovoltaics in Bangladesh, considering a year of hourly patterns of solar irradiation and electricity exchanges between the distributed photovoltaics owners and the electricity utilities. The economics vary between different stakeholders—distributed photovoltaics owners, electricity utilities, and society. From the consumers’ perspective, the study finds that the economics of distributed photovoltaics depends on the difference in electricity production costs between the distributed photovoltaics and the electricity utility, transmission and distribution loss, and feed-in arrangements. The study also reveals that a distributed photovoltaics do not necessarily cause loss to the national electricity utility if they replaces expensive oil-fired generation. From a national or societal perspective, distributed photovoltaics are beneficial even if their positive environmental effects are not taken into account. The environmental benefits further improve the economics of distributed photovoltaics. |
| Keywords: | Energy Policies&Economics,Energy and Environment,Energy Demand,Energy and Mining,Solar Energy,Rural and Renewable Energy,Renewable Energy,Science of Climate Change,Climate Change and Environment,Climate Change and Health |
| Date: | 2021–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9699&r= |
| By: | Foster,Vivien; Dim,Jennifer Uju; Vollmer,Sebastian; Zhang,Fan |
| Abstract: | This paper examines the extent to which countries have succeeded in decoupling transportemissions from economic growth, and how changes in emissions intensity, economic growth, and population growth havecontributed to changes in transportation-related emissions. The paper employs a modified version of the Tapio decouplingmodel, and demonstrates that over the 1990–2018 study period only 12 of 145 countries achieved “absolute decoupling,”defined as reducing emissions while growing gross domestic product. The majority of the top emitters remain in a“relative decoupling” state, with emissions growing more slowly than gross domestic product. Many of the middle- andlow-income countries have not achieved decoupling; their emissions are growing as fast as or faster than grossdomestic product. To understand the driving factors of transport-related carbon emissions, the paper conductsindex-decomposition and an econometric analysis. The results reveal that while transportation emission intensity hasdeclined in most countries, economic growth and population growth have offset these declines. If these patternscontinue, achieving the goals of the Paris Agreement with improvements in efficiency alone seems unrealistic. Thepaper also shows evidence that higher energy prices are associated with strong emissions reduction. |
| Keywords: | Transport Services,Energy Demand,Energy and Mining,Energy and Environment,Industrial Economics,Economic Growth,Economic Theory & Research |
| Date: | 2021–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9809&r= |
| By: | Colantone, Italo; Di Lonardo, Livio; Margalit, Yotan; Percoco, Marco |
| Abstract: | For many governments, enacting green policies is a priority, but such policies often impose on citizens substantial and uneven costs. How does the introduction of green policies a˙ect voting? We study this question in the context of a major ban on polluting cars introduced in Milan, which was strongly opposed by the populist right party Lega. Using several inferential strategies, we show that owners of banned vehicles — who incurred a median loss of €3,750 — were significantly more likely to vote for Lega in the subsequent elections. Our analysis indicates that this electoral change did not stem from a broader shift against environmentalism, but rather from disaffection with the policy’s uneven pocketbook implications. In line with this pattern, recipients of compensation from the local government were not more likely to switch to Lega. The findings highlight the central importance of distributive consequences in shaping the political ramifications of green policies. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2022–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:327326&r= |
| By: | Maruyama Rentschler,Jun Erik; Leonova,Nadia |
| Abstract: | Air pollution is one of the leading causes of death worldwide, especially affecting poorerpeople who tend to be more exposed and vulnerable. This study contributes (i) updated global exposure estimates forthe World Health Organizations's 2021 revised fine particulate matter (PM2.5) thresholds, and (ii) estimates ofthe number of poor people exposed to unsafe PM2.5 concentrations. It shows that 7.28 billion people, or 94percent of the world population, are directly exposed to unsafe average annual PM2.5 concentrations. Low- andmiddle-income countries account for 80 percent of people exposed to unsafe PM2.5 levels. Moreover, 716 million poorpeople (living on less than $1.90 per day) live in areas with unsafe air pollution. Around half of them are locatedin just three countries: India, Nigeria, and the Democratic Republic of Congo. Air pollution levels are particularlyhigh in lower-middle-income countries, where economies tend to rely more heavily on polluting industries andtechnologies. The findings are based on high-resolution air pollution and population maps with global coverage, as wellas subnational poverty estimates based on harmonized household surveys. |
| Date: | 2022–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10005&r= |
| By: | Hallegatte,Stephane; Jooste,Charl; Mcisaac,Florent John |
| Abstract: | Turkey is vulnerable to natural disasters that can generate substantial damages to publicand private sector infrastructure capital. Earthquakes and floods are the most frequent hazards today, and flood risksare expected to increase with climate change. To ensure stability and growth and minimize the welfare impact ofthese disasters, these shocks need to be managed and accounted for in macro-fiscal and monetary policy. Tosupport this process, the World Bank Macrostructural Model is adapted to assess the macroeconomic effects of natural(geophysical or climate-related) disasters. The macroeconomic model is extended on several fronts: (1) adistinction is made between infrastructure and non-infrastructure capital, with complementary orsubstitutability between the two categories; (2) the production function is adjusted to account for short-termcomplementarity across capital assets; (3) the reconstruction process is modeled in a way that accounts forpost-disaster constraints, with distinct processes for the reconstruction of public and private assets. The resultsshow that destroyed infrastructure capital makes the remaining non-infrastructure capital less productive, whichmeans that disasters reduce the total stock of capital, but also its productivity. The welfare impact of adisaster—proxied by the discounted consumption loss—is found to increase non-linearly with direct asset losses.Macroeconomic responses reduce the welfare impact of minor disasters but magnify it when direct asset losses exceed theeconomy’s absorption capacity. The welfare impact also depends on the pre-existing economic situation, the abilityof the economy to reallocate resources toward reconstruction, and the response of the monetary policy.Appropriate macro-fiscal and monetary policies offer cost-effective opportunities to mitigate the welfare impactof major disasters. |
| Keywords: | Natural Disasters,Macroeconomic Management,Inflation |
| Date: | 2022–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9943&r= |
| By: | N. Devaraju (LSCE - Laboratoire des Sciences du Climat et de l'Environnement [Gif-sur-Yvette] - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - INSU - CNRS - Institut national des sciences de l'Univers - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Rémi Prudhomme (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Anna Lungarska (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, US ODR - Observatoire des Programmes Communautaires de Développement Rural - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Xuhui Wang (College of Urban and Environmental Sciences [Beijing] - Peking University [Beijing]); Zun Yin (LSCE - Laboratoire des Sciences du Climat et de l'Environnement [Gif-sur-Yvette] - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - INSU - CNRS - Institut national des sciences de l'Univers - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Nathalie de Noblet-Decoudré (LSCE - Laboratoire des Sciences du Climat et de l'Environnement [Gif-sur-Yvette] - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - INSU - CNRS - Institut national des sciences de l'Univers - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Raja R. Chakir (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Pierre-Alain Jayet (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thierry Brunelle (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Nicolas Viovy (LSCE - Laboratoire des Sciences du Climat et de l'Environnement [Gif-sur-Yvette] - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - INSU - CNRS - Institut national des sciences de l'Univers - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Adriana De Palma (Department of Life Sciences - NHM - The Natural History Museum [London]); Ricardo Gonzalez (Department of Life Sciences - NHM - The Natural History Museum [London], Department of Life Sciences - Imperial College London); Philippe Ciais (LSCE - Laboratoire des Sciences du Climat et de l'Environnement [Gif-sur-Yvette] - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - INSU - CNRS - Institut national des sciences de l'Univers - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In this study, we investigate the impacts of a public policy scenario that aims to halve nitrogen (N) fertilizer application across European Union (EU) agriculture on both carbon (C) sequestration and biodiversity changes. We quantify the impacts on ecosystem C and biodiversity by integrating economic models (supply-side model AROPAj and partial equilibrium model NLU) with an agricultural land surface model (ORCHIDEE-CROP) and a biodiversity model (PREDICTS). The two economic models simulate contrasting ways of implementing a 50% nitrogen reduction policy: a massive land abandonment with a large reduction in agricultural production (AROPAj); an extensification of crop production with a smaller reduction in agricultural production (NLU). Here, we show that the two economic scenarios lead to different outcomes in terms of C sequestration potential and biodiversity. Land abandonment associated with increased fertilizer price in the supply-side model facilitates higher C sequestration in soils (+1,014 MtC) and similar species richness levels (+1.9%) at the EU scale. On the other hand, more extensive crop production is associated with lower C sequestration potential in soils (-97 MtC) and similar species richness levels (-0.4%) because of a lower area of grazing land. Our results therefore highlight the complexity of the environmental consequences of a nitrogen reduction policy, which will depend fundamentally on how it is implemented. |
| Abstract: | Dans cette étude, nous examinons les impacts d'un scénario de politique publique visant à réduire de moitié l'application d'engrais azotés (N) dans l'agriculture de l'Union européenne (UE) sur la séquestration du carbone (C) et les changements de biodiversité. Nous quantifions les impacts sur le C et la biodiversité des écosystèmes en intégrant des modèles économiques (modèle de l'offre AROPAj et modèle d'équilibre partiel NLU) avec un modèle de surface des terres agricoles (ORCHIDEE-CROP) et un modèle de biodiversité (PREDICTS). Les deux modèles économiques simulent des manières contrastées de mettre en œuvre une politique de réduction de 50% de l'azote : un abandon massif des terres avec une forte réduction de la production agricole (AROPAj) ; une extensification de la production végétale avec une plus faible réduction de la production agricole (NLU). Nous montrons ici que les deux scénarios économiques conduisent à des résultats différents en termes de potentiel de séquestration du carbone et de biodiversité. L'abandon des terres associé à une augmentation du prix des engrais dans le modèle de l'offre facilite une plus grande séquestration de C dans les sols (+1,014 MtC) et des niveaux de richesse des espèces similaires (+1,9%) à l'échelle de l'UE. En revanche, une production végétale plus extensive est associée à un potentiel de séquestration de carbone plus faible dans les sols (-97 MtC) et à des niveaux de richesse des espèces similaires (-0,4 %) en raison d'une surface de pâturage plus faible. Nos résultats soulignent donc la complexité des conséquences environnementales d'une politique de réduction de l'azote, qui dépendra fondamentalement de la manière dont elle sera mise en œuvre. |
| Keywords: | Agricultural land surface model |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03763653&r= |
| By: | Leonardo Gambacorta; Alessio Reghezza; Martina Spaggiari; Livia Pancotto |
| Abstract: | Do female directors on banks' boards influence lending decisions toward less polluting firms? By using granular credit register data matched with information on firm-level greenhouse gas (GHG) emission intensities, we isolate credit supply shifts and find that banks with more gender-diverse boards provide less credit to browner companies. This evidence is robust when we differentiate among types of GHG emissions and control for endogeneity concerns. In addition, we also show that female director-specific characteristics matter for lending behavior to polluting firms as better-educated directors grant lower credit volumes to more polluting firms. Finally, we document that the "greening" effect of the female members in banks' boardrooms is stronger in countries with more female climate-oriented politicians. |
| Keywords: | GHG emissions, gender, board diversity, credit registry, bank lending. |
| JEL: | G01 G21 G30 Q50 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1044&r= |
| By: | Andrea Pufahl; Wolfgang Roggendorf |
| Keywords: | Agricultural and Food Policy |
| Date: | 2022–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa181:327309&r= |
| By: | Leonhard Lades; Federica Nova (Environmental Policy, University College Dublin, Ireland and UCD Geary Institute for Public Policy) |
| Abstract: | Behaviourally informed interventions such as nudges are increasingly used to encourage sustainable and often meat-free diets. These interventions are motivated by concerns about peoples health, animal welfare, and the environmental degradation linked to meat consumption. However, dietary choices are very personal and often of cultural importance, and behavioural interventions have been criticized, for example, for being paternalistic, manipulative, and not respecting people's autonomy. Applying the FORGOOD ethics framework, this paper organises diverse ethical arguments in favour and against using behavioural interventions to reduce meat consumption. We present a systematic high-level discussion on the ethics of influencing peoples diets and suggest that choice architects should reflect on ethical implications when designing, and before implementing, behavioural interventions to reduce meat consumption. |
| Keywords: | Meat Consumption; Sustainable Diets; Nudge; Libertarian Paternalism; Ethics; FORGOOD |
| JEL: | F18 H23 P48 Q00 Q56 |
| Date: | 2022–10–25 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:202209&r= |
| By: | Léa Crepin (Paris-Saclay University, AgroParisTech, INRAE, Paris-Saclay Applied Economics, 91120, Palaiseau, France & Climate Economics Chair, Palais Brongniart, 28 Place de la Bourse, Paris, 75002, France) |
| Abstract: | Minimizing the trade-offs between agricultural production, development and forest conservation is key to ensure that conservation policies can achieve long-term impacts. Taking the case of the Brazilian Amazon in the context of the Action Plan for the Prevention and Control of Deforestation in the Legal Amazon, we estimate the impact of the blacklisting of municipalities with high deforestation risk on soybean production (a major driver of deforestation), exports and land-use changes. Difference-in-difference regressions and generalised synthetic control method are first used to determine the impacts of the policy. The triple difference strategy is then applied to explore heterogeneity in the production and export changes across municipalities. We find that, although effective to reduce deforestation, the policy is unlikely to have undermined the soybean production and exports. On the contrary, our results suggest that the soybean sector benefited from the changes in land use following the implementation of the blacklist. However, we do not find evidence that land restriction triggered intensification of soybean production, which suggests that soybean benefited from an intra-crops reallocation. |
| Keywords: | deforestation, conservation policy, soybean, priority list, Amazon |
| JEL: | Q23 Q17 Q58 Q56 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2022.07&r= |
| By: | Adam Wąs; Paweł Kobus; Vitaliy Krupin; Jan Witajewski-Baltvilks; Maciej Pyrka; Robert Jeszke; Krystian Szczepański |
| Keywords: | Agricultural and Food Policy |
| Date: | 2022–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa181:327300&r= |
| By: | Gambacorta, Leonardo; Pancotto, Livia; Reghezza, Alessio; Spaggiari, Martina |
| Abstract: | Do female directors on banks’ boards influence lending decisions toward less polluting firms? By using granular credit register data matched with information on firm-level greenhouse gas (GHG) emission intensities, we isolate credit supply shifts and find that banks with more gender-diverse boards provide less credit to browner companies. This evidence is robust when we differentiate among types of GHG emissions and control for endogeneity concerns. In addition, we also show that female director-specific characteristics matter for lending behavior to polluting firms as better-educated directors grant lower credit volumes to more polluting firms. Finally, we document that the “greening” effect of the female members in banks’ boardrooms is stronger in countries with more female climate-oriented politicians. JEL Classification: G01, G21, G30, Q50 |
| Keywords: | bank lending, board diversity, credit registry, gender, GHG emissions |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20222741&r= |
| By: | Michler,Jeffrey David; Josephson,Anna Leigh; Kilic,Talip; Murray,Siobhan |
| Abstract: | This paper quantifies the significance and magnitude of the effect of measurementerror in remote sensing weather data in the analysis of smallholder agricultural productivity. The analysisleverages 17 rounds of nationally-representative, panel household survey data from six countries in Sub-SaharanAfrica. These data are spatially linked with a range of geospatial weather data sources and related metrics. Thepaper provides systematic evidence on measurement error introduced by (1) different methods used to obfuscate theexact GPS coordinates of households, (2) different metrics used to quantify precipitation and temperature, and (3)different remote sensing measurement technologies. First, the analysis finds no discernible effect of measurementerror introduced by different obfuscation methods. Second, it finds that simple weather metrics, such as total seasonalrainfall and mean daily temperature, outperform more complex metrics, such as deviations in rainfall from the long-runaverage or growing degree days, in a broad range of settings. Finally, the analysis finds substantial amounts ofmeasurement error based on remote sensing products. In extreme cases, the data drawn from different remote sensingproducts result in opposite signs for coefficients on weather metrics, meaning that precipitation or temperaturedrawn from one product purportedly increases crop output while the same metrics drawn from a different productpurportedly reduces crop output. The paper concludes with a set of six best practices for researchers looking to combineremote sensing weather data with socioeconomic survey data. |
| Keywords: | Disability,Climate Change and Agriculture,Crops and Crop Management Systems,Food Security,Labor & Employment Law,Labor Markets,Rural Labor Markets |
| Date: | 2021–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9867&r= |
| By: | Chepeliev,Maksym; Maliszewska,Maryla; Osorio-Rodarte,Israel; Seara E Pereira,Maria Filipa; Van Der Mensbrugghe,Dominique |
| Abstract: | The resilience of global value chains has been put to the test by the COVID-19 pandemic, extremeweather events, and trade tensions spurred by growing economic nationalism and protectionism. Shocks in productionand trade can be transmitted from one country to another by global value chains, although they can also help to lessenthe blow of a domestic shock, such as a lockdown, and drive economic recovery. What shocks to global value chains shouldbe anticipated in the coming years Is it possible to design policies that can enhance resilience to trade shocks indeveloping countries without endangering growth This paper explores simulations from the ENVISAGE global computablegeneral equilibrium model to enhance understanding of the potential longer-term impacts of COVID-19 and the policyresponses it engenders in developing countries. The paperassesses the likely impacts of measures designed to reshore production and reduce reliance on imports. It also evaluatesother key factors shaping the global economy, including stylized scenarios to capture the essential elements ofpolicies to achieve carbon emission reductions that will have an impact on trade. |
| Keywords: | International Trade and Trade Rules,Transport Services,Inequality,Climate Change Mitigation and Green House Gases |
| Date: | 2022–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9955&r= |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Messono O. Omang (University of Douala, Cameroon); Keyanfe T. J. Guttemberg (University of Yaoundé 2, Cameroon) |
| Abstract: | The objective of this article is to analyze the effect of the political empowerment of women on vulnerability to climate change in 169 countries for the period 1995-2017. The empirical evidence which is based on panel fixed effects regressions shows that: i) the political empowerment of women as well as its components (i.e. civil liberties of women, participation of women in civil society and participation of women in political debates) reduce vulnerability to climate change. ii) The underlying effect is most pronounced in upper middle income, Latin American, small and fragile countries. iii) Public spending on education, the effectiveness of governance and education are the real transmission channels through which vulnerability to climate change is affected by women’s political empowerment. The findings are robust to alternative estimation methods such as the Tobit, dynamic fixed effects, and generalized method of moments regressions. Policy implications are discussed, inter alia, the need for sampled countries to encourage women's political empowerment in order to reduce risks linked to climate change. |
| Keywords: | climate change; vulnerability; political empowerment |
| JEL: | Q50 Q54 Q58 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/080&r= |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Messono O. Omang (University of Douala, Cameroon); Keyanfe T. J. Guttemberg (University of Yaoundé 2, Cameroon) |
| Abstract: | The objective of this article is to analyze the effect of the political empowerment of women on vulnerability to climate change in 169 countries for the period 1995-2017. The empirical evidence which is based on panel fixed effects regressions shows that: i) the political empowerment of women as well as its components (i.e. civil liberties of women, participation of women in civil society and participation of women in political debates) reduce vulnerability to climate change. ii) The underlying effect is most pronounced in upper middle income, Latin American, small and fragile countries. iii) Public spending on education, the effectiveness of governance and education are the real transmission channels through which vulnerability to climate change is affected by women’s political empowerment. The findings are robust to alternative estimation methods such as the Tobit, dynamic fixed effects, and generalized method of moments regressions. Policy implications are discussed, inter alia, the need for sampled countries to encourage women's political empowerment in order to reduce risks linked to climate change. |
| Keywords: | climate change; vulnerability; political empowerment |
| JEL: | Q50 Q54 Q58 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/080&r= |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Messono O. Omang (University of Douala, Cameroon); Keyanfe T. J. Guttemberg (University of Yaoundé 2, Cameroon) |
| Abstract: | The objective of this article is to analyze the effect of the political empowerment of women on vulnerability to climate change in 169 countries for the period 1995-2017. The empirical evidence which is based on panel fixed effects regressions shows that: i) the political empowerment of women as well as its components (i.e. civil liberties of women, participation of women in civil society and participation of women in political debates) reduce vulnerability to climate change. ii) The underlying effect is most pronounced in upper middle income, Latin American, small and fragile countries. iii) Public spending on education, the effectiveness of governance and education are the real transmission channels through which vulnerability to climate change is affected by women’s political empowerment. The findings are robust to alternative estimation methods such as the Tobit, dynamic fixed effects, and generalized method of moments regressions. Policy implications are discussed, inter alia, the need for sampled countries to encourage women's political empowerment in order to reduce risks linked to climate change. |
| Keywords: | climate change; vulnerability; political empowerment |
| JEL: | Q50 Q54 Q58 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:aak:wpaper:22/017&r= |
| By: | Avner,Paolo; Viguié,Vincent; Jafino,Bramka Arga; Hallegatte,Stephane |
| Abstract: | This paper investigates the land value creation potential from flood mitigation investmentsin a theoretical and applied setting, using the urban area of Buenos Aires as a case study. It contributes to theliterature on the wider economic benefits of government interventions and the dividends of resilience investments.Using a simple urban economics framework that represents land and housing markets, it finds that not all floodmitigation interventions display the same potential for land value creation: where land ismore valuable (city centers for example), the benefits of resilience are higher. Thepaper also provides ranges for land value creation potential from the flood mitigation works in Buenos Aires undervarious model specifications. Although the estimates vary largely depending on model parameters and specifications, inmany cases the land value creation would be sufficient to justify the investments. This result is robust even in theclosed city configuration with conservative flood damage estimates, providing that the parameters remain reasonablyclose to the values obtained from the calibration. Finally, acknowledging that fully calibrating and running an urbansimulation model is data greedy and time intensive—even a simple model as proposed here—this research also proposesreduced form expressions that can provide approximations for land value creation from flood mitigation investments andcan be used in operational contexts. |
| Keywords: | Natural Disasters,Urban Housing and Land Settlements,Urban Governance and Management,Municipal Management and Reform,Urban Housing,Social Risk Management,Hazard Risk Management,Disaster Management,Climate Change Mitigation and Green House Gases,Transport Services |
| Date: | 2021–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9744&r= |
| By: | Kevin Pahud (EPFL - Ecole Polytechnique Fédérale de Lausanne); Greg de Temmerman (IHEIE - Institut des Hautes Etudes pour l’Innovation et l’Entrepreneuriat (IHEIE) - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres, Zenon Research) |
| Abstract: | The importance of energy consumption to allow societies to thrive is well established and prospects of energy needs is well derived through the scientific literature. Yet, lesser discussions persist on the future availability of energy for current industrial economies, a crucial indicator for development. It is defined as net-energy analysis, where one must appropriate more energy than required to get it. The most common indicators are the energy payback time and the EROI (Energy Return of Investment). These indicators are used throughout literature either for energy vectors, energy systems or for broader societal applications. Following growing concerns about climate change, and with the increasing difficulty of extraction of fossil fuels, EROIs became tools to study the global energy transition with a focus on a possible minimum EROI required to maintain a complex society. However, the indicator is used with a large variety of methods, definitions, and boundaries. This led to a lack of consensus on whether a transition to renewable-based energy systems could still provide sufficient net energy for societies to thrive. The concepts of EROI were studied by compiling its various definitions, boundaries, and limits, allowing a clear view of the indicator to understand where and how it could be used. This led to finding three main classes of indicators: the physical EROI, an indicator based on energy consumption, a price-based societal EROI, an indicator using monetary expenditures to look at energy-related expenditures, and finally a socioeconomic EROI which looks at energy expenditures within a nation's economy. A detailed review of those use cases led to understanding that the EROI is often badly calculated through wrong boundaries, goals, or with old data and that no norm exists for its calculation. These inconsistencies tend to negatively bias renewable technologies as a solution to the energy transition. Furthermore, most calculations of minimal EROIs are based on fossil fuel infrastructure, with current energy systems being highly inefficient. The previously calculated minimal EROIs through literature, penalizing renewable technologies, are challenged. The study discusses the possibility of transitioning away from fossil fuels' dependence based on updated data and literature to finally conclude that renewable can offer sufficient energy through the energy transition. This sufficiency however comes with short-term limits followed by a possible drop in net-energy due to the transitory nature of the global shift to mitigate climate change. |
| Keywords: | Net-energy,EROI,Energy transition |
| Date: | 2022–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03780085&r= |
| By: | Julia B. Block; Michael Danne; Oliver Mußhoff |
| Keywords: | Agricultural and Food Policy |
| Date: | 2022–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa181:327308&r= |
| By: | Albert Kwame Osei-Owusu; Michael Danquah; Edgar Towa |
| Abstract: | This paper applies an environmentally extended input-output analysis, leveraging the Eora database, to estimate the global raw material footprints of 51 African nations from 1995 to 2015. It employs least absolute shrinkage and selection operator and panel regression models to quantify the effects of diverse variables on Africa's raw material footprints. The findings show that the raw material footprints of Africa's production and consumption soared by 41 per cent and 38 per cent, respectively, from 1995 to 2015, mainly driven by biomass and construction materials. |
| Keywords: | Ecological footprint, Input–output, Raw materials, Africa, environmental impact, Regression analysis |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2022-115&r= |
| By: | Ngoma,Hambulo,Finn,Arden Jeremy,Kabisa,Mulako |
| Abstract: | To what extent do the behavioral choices of Zambian smallholder farmers influence the negative effects of climate shocks, and what impact do these choices have on vulnerability and resilience? This paper uses nationally representative, three-wave household-level panel data to investigate these questions. The empirical estimation employs an instrumental variable probit regression model, which also controls for the endogeneity of key choice variables. There are four main empirical findings. First, droughts are the most prevalent climate shock rural smallholder farmers in Zambia face, but the extent of exposure differs spatially, with the Southern and Western Provinces being the hardest hit. Nationally, about three-quarters of all smallholder farmers are vulnerable and only about one-quarter are resilient. Second, increased climate shocks correlate with both increased vulnerability and reduced resilience, with short- and long-term deviations in seasonal rainfall worsening vulnerability and resilience. Third, higher asset endowments and education level of the household head reduce vulnerability and increase resilience among smallholder farmers. Female-headed households are more vulnerable and less resilient, on average. Fourth, the use of climate-smart agricultural practices—namely, minimum tillage and use of inorganic fertilizers or hybrid maize seed—significantly improves household resilience in the short term. The paper draws two main policy implications from the findings. First, the results point to an urgent need to invest in research and development for climate shock–tolerant crop varieties and in broader climate-smart agricultural technologies to scale out and scale up context-specific practices through innovative digital platforms. Second, more investment is needed in risk mitigation strategies such as weather indexed insurance, targeted social cash transfers and how to make these work effectively for smallholder farmers. Other important complementary elements include investment in innovative digital platforms that can facilitate timely delivery of climate information services and facilitating asset accumulation and education that can enable farmers to improve climate shock resilience over time. |
| Keywords: | Inequality,Natural Disasters,Food Security,Poverty Assessment,Poverty Impact Evaluation,Poverty Lines,Poverty Monitoring&Analysis,Small Area Estimation Poverty Mapping,Poverty Diagnostics |
| Date: | 2021–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9758&r= |
| By: | Geir B. Asheim (Department of Economics [Oslo] - Faculty of Social Sciences [Oslo] - UiO - University of Oslo); Kohei Kamaga (Sophia University [Tokyo]); Stéphane Zuber (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Keywords: | climate change,efficiency,intergenerational equity,population ethics,infinite streams |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03760333&r= |
| By: | Gasmi, Farid; Kouakou, Dorgyles; Sanni, Maruf |
| Abstract: | At the turn of the millennium, developing countries face a twofold societal challenge. First, these countries need to understand the deep principles underpinning informality, which is by now recognized as a structuring phenomenon of their economies. Second, for reasons related to both intra- and inter-generational justice, these countries need to follow the sustainable development pathway. This paper highlights a micro-economic aspect of the relationship between these two goals by investigating how a firm being formal versus informal affects its sustainable and responsible innovation (S&RI) activity, a milestone for sustainable development. Using a propensity score matching methodological approach to analyze an original database extracted from the Nigerian Business Innovation Surveys for 2005-2007, we find that registered Nigerian firms have a higher propensity to introduce S&RIs than unregistered firms. This result is robust to alternative and widely used matching methods. Hence, in the prospect of sustainable development of Nigeria and developing countries in general, there should not be a hiatus between acknowledging and further understanding the importance of informality in the economy and promoting policies that give firms incentives to formalize. |
| Keywords: | Sustainable development; sustainable and responsible innovation; informality,; developing countries; Nigeria. |
| JEL: | O17 O35 O55 Q01 Q55 |
| Date: | 2022–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:127408&r= |
| By: | Amilcar Sousa; Ana Pinheiro; Francisco Ruano |
| Abstract: | Os efeitos nocivos resultantes das alterações climáticas levaram a uma maior consciencialização ambiental e ao estabelecimento de diversos compromissos internacionais. É neste contexto que o Orçamento Verde, uma prática relativamente recente adotada por um número crescente de governos, tem vindo a ganhar importância. Ao possibilitar uma maior perceção dos contributos ambientais de cada rubrica orçamental, o Orçamento Verde permite alinhar a política orçamental com os objetivos climáticos e ambientais, podendo ainda abrir o caminho para a emissão de obrigações verdes. Uma efetiva implementação do Orçamento Verde implica a adoção de instrumentos adequados (como a classificação da despesa e da receita em termos dos seus impactos climáticos e ambientais, conhecida por Green Budget Tagging), o estabelecimento de um enquadramento institucional apropriado e o tempestivo reporte de informação. Os países com experiências mais consolidadas nesta matéria são França e Itália. Portugal já deu alguns passos para a implementação de um Orçamento Verde, mas ainda tem um amplo caminho a percorrer, nomeadamente, quanto à adoção de um conjunto de instrumentos ainda em falta, quanto ao estabelecimento de um enquadramento institucional onde este tipo de prática esteja contemplado na Lei de Enquadramento Orçamental e quanto à criação de um sistema de reporte de informação que promova a transparência de todo o processo orçamental verde. |
| Keywords: | Orçamento Verde; Green Tagging; Orçamento do Estado; Obrigações Verdes |
| JEL: | H50 H61 Q51 Q58 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:alf:opaper:2022-04&r= |
| By: | Mccarthy,Nancy; Kilic,Talip; Brubaker,Joshua Milton; De La Fuente,Alejandro; Murray,Siobhan |
| Abstract: | Between 2014 and 2016 unprecedented and consecutive climatic shocks ravaged Malawi, one of the poorest countries in the world. The largest ever emergency relief operation in the country’s history ensued. The pathways and extent to which the humanitarian response protected livelihoods remain under researched. This paper uses a unique data set that combines longitudinal household survey data with GIS-based measures of weather shocks and climate conditions and longitudinal administrative data on the World Food Programme’s aid distribution. The paper aims to understand the drivers of humanitarian aid and evaluate the impact of aid and weather shocks on outcomes related to household production and consumption in Malawi. The analysis shows that droughts and floods had consistent negative impacts on a range of welfare outcomes, particularly for households that were subject to sequential shocks. Aid receipt is demonstrated to attenuate such impacts, again particularly for households that experienced the shocks consecutively. Households living in areas subject to a weather shock and with higher World Food Programme aid distribution were more likely to receive food aid, partially explaining the success of aid in mitigating the impacts of shocks. However, there is significant scope for improving the criteria for targeting humanitarian aid beneficiaries. |
| Keywords: | Natural Disasters,Inequality,Foreign Aid,Development Economics&Aid Effectiveness,Economics and Gender,Gender and Economic Policy,Gender and Poverty,Gender and Economics |
| Date: | 2021–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9666&r= |
| By: | Molina Romo, Óscar, |
| Abstract: | This Working Paper analyses the role of tripartite social dialogue in supporting green workplaces and, more generally, promoting just transitions at enterprise level. The Working Paper explores the different mechanisms whereby social dialogue has contributed to governing, promoting and implementing policies and initiatives to achieve the above goals, with a particular focus on the role of National Social Dialogue Institutions (NSDIs). In doing so, the Working Paper also discusses the main challenges facing social partners regarding their involvement in these policies and processes, including the opportunities or obstacles created by the institutional framework, the type of technical capacities required and the articulation between different levels of social dialogue. Lastly, the Working Paper provides some policy pointers to enhance the role of social dialogue as a tool to sustain just transitions and extend green workplaces. |
| Keywords: | social dialogue, just transition, sustainable development |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:995203292402676&r= |
| By: | Fishman,Ram; Gine,Xavier; Jacoby,Hanan G. |
| Abstract: | Widespread adoption of efficient irrigation technologies, including drip irrigation, has been proposed as a means of limiting groundwater overexploitation, especially in the intensively farmed and water-stressed South Asia region. This paper reports on a randomized controlled trial conducted in the Indian state of Andhra Pradesh to evaluate the potential productivity and water-saving benefits of smallholder drip irrigation. A group of well-owners was encouraged to adopt drip irrigation through a subsidy scheme, whereas a control group was left to its own devices. The results indicate that, after three years, the drip group shifted into more remunerative and irrigation reliant crops, enjoyed higher agricultural revenue, and transferred (primarily through cash sales) more of its groundwater to adjacent plots. In terms of groundwater pumping, which has zero marginal price in this setting, there is precisely zero difference between the drip and control groups. The evidence thus suggests that drip adoption in South India, while increasing irrigation efficiency, will not save groundwater. |
| Keywords: | Hydrology,Irrigation and Drainage,Agricultural Irrigation and Drainage,Water and Food Supply,Climate Change and Agriculture,Crops and Crop Management Systems,Energy Policies&Economics |
| Date: | 2021–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9713&r= |
| By: | Callejas, Jerónimo; Linn,Joshua Abraham; Steinbuks,Jevgenijs |
| Abstract: | Developing countries face a major challenge of decarbonizing their light-duty vehicle fleetand transitioning to the broad use of electric vehicles. However, there is little evidence on which policies can mosteffectively facilitate that transition in these countries, distinguished by relatively low-income consumers and highlyconcentrated markets that distort vehicle markups. This paper analyzes existing and proposed policies aiming toreduce emissions from new passenger vehicles in Colombia, which has used preferential sales taxes and import tariffsto stimulate hybrid and electric cars sales. Using highly detailed data on vehicle purchases and attributes, the paperestimates an equilibrium model of Colombia’s market that includes a random-coefficients logit demand structure andendogenizes firms’ markups. Using the model to simulate policies, the analysis finds that Colombia’s sales tax andimport tariffs have increased hybrid and electric vehicle market shares by 0.9 to 2.7 percentage points at welfarecosts of $40-$48 per ton of carbon dioxide reduction. Potentially taxing carbon dioxide emissions rates of newvehicles would have roughly similar welfare costs. The high welfare costs of these policies arise from preexistingdistortions caused by market power, which yields large private welfare costs of shifting from gasoline to hybridand electric vehicles. |
| Date: | 2022–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10001&r= |
| By: | Dampha,Nfamara K; Salemi,Colette; Polasky,Stephen |
| Abstract: | How do refugee camps impact the natural environment This paper examines the case study ofCox’s Bazar, Bangladesh, a district that hosts nearly 1 million Rohingya refugees in refugee camps. Using spatiallyexplicit data on land-use / land cover and proximity to a camp boundary, the paper quantifies land-use changes acrossthe district over time. To evaluate the extent to which the camps triggered additional forest loss, the analysiscalculates total forest loss in the district and uses a difference-in-difference model that compares areas 0–5kilometers from a camp boundary (treatment) to areas 10–15 kilometers away (control). The findings show that the rateof forest loss intensified near camps relative to the control area. The analysis reveals that areas experiencingcamp-stimulated reductions in forest cover are also experiencing faster settlement expansion relative to thecontrol area. Settlement expansion is largely concentrated in areas outside protected areas. This enhanced settlementexpansion still occurs when pixels 0–1 kilometer from the camps are omitted, which is evidence that the results arenot due to camp settlements expanding beyond the official camp borders. The results suggest that camps stimulatein-migration as Bangladeshis seek new economic opportunities and improved access to resources. |
| Keywords: | Post Conflict Reconstruction,Social Cohesion,Hydrology |
| Date: | 2022–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9948&r= |
| By: | Khan,Amjad Muhammad; Rodella,Aude-Sophie |
| Abstract: | Do Sahelian countries face specific risks of water-related conflict Sahelian countries facegrowing fragility and climate challenges—especially those belonging to the Group of Five Sahel States (known as the G5Sahel)—Burkina Faso, Chad, Mali, Mauritania, and Niger. This study examines how their relation to water availability andirrigation infrastructure factors in. It documents that the G5 Sahel countries, given their high baseline water scarcityand state fragility, face a higher risk of conflict over water resources compared to the rest of Africa. This isdemonstrated through empirical analyses using geospatial data and exploiting (i) climate-induced variation in wateravailability, and (ii) an event study analysis of conflict trends, which sharply increased post-2010 in the regionfollowing the Arab Spring and the rise of the Boko Haram. Irrigated areas are found to be important for bufferingagainst weather shocks but are also more prone to targeting during conflict events compared to non-irrigated regions.The evidence suggests that this reflects increased competition for scarce (fertile) resources between state andrebel groups on this climate frontier with a well-documented history of agropastoral conflict. Other regions of Africaare not found to experience similar conflict related to water resources. These findings are especially pertinent forinforming projects and policy interventions in fragile countries as post-COVID-19 recovery and climate action plansare rolled out. |
| Keywords: | Hydrology,Irrigation and Drainage,Agricultural Irrigation and Drainage,Labor Markets,Nutrition,Food Security |
| Date: | 2021–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9805&r= |
| By: | Claire Nauwelaers; Richard Harding; Inmaculada Perianez-Forte (European Commission - JRC); Karel Haegeman (European Commission - JRC); Eskarne Arregui |
| Abstract: | This report analyses five case study reports in-depth across five EU countries as part of a broader analytical and critical exercise. This analytical work seeks to contribute to the development of new models for regional and local authorities aiming to boost support for Green Transition of their economies through smarter innovation policies, using the smart specialisation (S3) approach. The work covered five regions from across the European Union representing a diversity of approaches to using S3 for Green Transition: the Basque Country in Spain, the Centro region in Portugal, the region of East and North Finland, the region of Western Macedonia in Greece and the region of West Netherlands. The case studies included in this report consists of three sections on (i) Profile of the region and key development challenges; (ii) Innovation strategies and policies for green transition: incorporating societal challenges; (iii) Understanding and monitoring innovation-led green transition. Drawing together the different elements presented, the conclusion provides a summary overview of the case and the authors’ opinion on it. |
| Keywords: | Green Transition, EU regions, Smart Specialisation, Transformative innovation |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc130517&r= |
| By: | Patrice Loisel; Marielle Brunette; Stéphane Couture |
| Abstract: | Storm is a major risk in forestry. However, due to the more or less pessimistic scenarios of future climate change, storm frequency is now ambiguous and only partially known (i.e., scenario ambiguity). Furthermore, within each scenario, the quantification of storm frequency is also ambiguous due to the differences in risk quantification by experts, creating a second level of ambiguity (i.e., frequency ambiguity). In such an ambiguous context, knowledge of the future climate through accurate information about this risk is fundamental and can be of significant value. In this paper, we question how ambiguity and ambiguity aversion affect forest management, in particular, optimal cutting age. Using a classical Faustmann framework of forest rotation decisions, we compare three different situations: risk, scenario ambiguity and frequency ambiguity. We show that risk and risk aversion significantly reduce the optimal cutting age. We also show that both scenario and frequency ambiguities reinforce the effect of risk. Inversely, ambiguity aversion has no effect. The value of information that resolves scenario ambiguity is high, whereas it is null for frequency ambiguity. |
| Keywords: | Rotation decision, Risk, Ambiguity, Ambiguity Aversion, Risk Aversion, Value of Information, Forests, Faustmann criterion. |
| JEL: | D81 D90 Q23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2022-26&r= |
| By: | Maruyama Rentschler,Jun Erik; Kim,Ella Jisun; Thies,Stephan Fabian; De Vries Robbe,Sophie Anne; Erman,Alvina Elisabeth; Hallegatte,Stephane |
| Abstract: | This study explores how businesses in Tanzania are impacted by floods, and which strategies theyuse to cope and adapt. These insights are based on firm survey data collected in 2018 using a tailoredquestionnaire, covering a sample of more than 800 firms. To assess the impact of disasters on businesses, the studyconsiders direct damages and indirect effects through infrastructure systems, supply chains, and workers. Whiledirect on-site damages from flooding can be substantial, they tend to affect a relatively small share of firms.Indirect impacts of floods are more prevalent and sizable. Flood-induced infrastructure disruptions—especiallyelectricity and transport—obstruct the operations of firms even when they are not directly located in flood zones. Theeffects of such disruptions are further propagated and multiplied along supply chains. The study estimates thatsupply chain multipliers are responsible for 30 to 50 percent of all flood-related delivery delays. To cope withthese impacts, firms apply a variety of strategies. Firms mitigate supply disruptions by adjusting the size andgeographical reach of their supply networks, and by adjusting inventory holdings. By investing in costly backupcapacity (such as water tanks and electricity generators), firms mitigate the impact of infrastructure disruptions. Thestudy estimates that only 13 percent of firms receive government support in the aftermath of floods. |
| Keywords: | Natural Disasters,Transport Services,Hydrology,Hazard Risk Management,Social Risk Management,Disaster Management,Energy Policies & Economics |
| Date: | 2021–09–13 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9774&r= |
| By: | Sophie Thoyer (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier) |
| Keywords: | évaluation de la PAC |
| Date: | 2022–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03726241&r= |
| By: | Urom, C.; Mzoughi, Hela; Ndubuisi, Gideon (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Guesmi, K. |
| Abstract: | This paper examines how clean investments across different sectors respond to economic policy uncertainty (EPU) using the NASDAQ OMX Green Economy sectoral Indexes. We rely on Wavelets and the Cross-quantilogram techniques to examine the dependence and directional predictability from EPU to each sector's clean energy stock prices. Our results highlight evidence in support of strong heterogeneous dependence and directional predictability of sectoral clean energy returns from EPU across different market conditions and investment horizons. Second, we employ the Time-Varying Parameter-VAR (TVP-VAR) model with stochastic volatility to characterize the level of integration between clean energy sectors and EPU under different investment horizons. We find that the level of connectedness is weak in the short-term but becomes stronger in the medium- and long-term. Nonetheless, we distill some important heterogeneities in the predictive power of EPU for the different sectors across different investment horizons. Taken together, our results demonstrate that the direction and magnitude of the response of clean energy stock prices to EPU vary across sectors and depend on market conditions and horizons. This offers diversification benefits to investors and portfolio managers that may be interested in clean energy stocks across sectors, market conditions, and horizons. |
| JEL: | G10 Q42 R11 |
| Date: | 2022–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2022027&r= |
| By: | Andreas Fazekas; Chris Bataille (School of Resource and Environmental Management - SFU.ca - Simon Fraser University); Adrien Vogt-Schilb |
| Abstract: | Il est nécessaire de réduire les émissions nettes à zéro pour limiter le réchauffement de la planète bien en dessous de 2C et vers 1,5C, qui sont les objectifs de température de l'Accord de Paris. Plus de 50 pays dans le monde ont fixé des objectifs pour parvenir à zéro émission nette, généralement d'ici 2050, et la plupart des autres pays travaillent sur des objectifs similaires. La réalisation de ces objectifs nécessite des transformations dans les secteurs de l'électricité, des transports, de l'agriculture, de l'utilisation des sols, des bâtiments, de l'industrie et de la gestion des déchets. Bien qu'il existe des solutions pour passer à une économie neutre en carbone, notamment des changements technologiques et comportementaux, et qu'ils s'accompagnent souvent d'avantages économiques, sociaux ou développementaux, de nombreux obstacles empêchent leur mise en œuvre. Nous réunissons des conclusions issues de la littérature académique et grise pour identifier 15 transformations sectorielles qui permettront de réduire à zéro les émissions nettes de gaz à effet de serre. Nous énumérons ensuite les obstacles qui empêchent leur adoption, tels que les obstacles liés aux infrastructures, aux réglementations, aux finances publiques et privées, à l'information et aux questions d'économie politique. Enfin, nous fournissons plus de 50 exemples d'interventions gouvernementales au niveau sectoriel qui peuvent lever ces obstacles, comme la construction d'infrastructures, la réforme des réglementations et des subventions, la fourniture d'informations et le renforcement des capacités, et la gestion des impacts distributifs. Les gouvernements peuvent utiliser ces informations pour guider la conception de stratégies climatiques globales qui traduisent l'objectif à long terme de zéro émission nette en une feuille de route des transformations requises dans chaque secteur. Ils peuvent ensuite travailler à l'identification et à la mise en œuvre d'interventions gouvernementales aux niveaux national, régional ou local pour les rendre possibles. |
| Keywords: | atténuation du changement climatique,décarbonation,neutralité carbone,mise en oeuvre,réforme politique,investissement,politique sectorielle |
| Date: | 2022–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03787651&r= |
| By: | Richhild Moessner |
| Abstract: | We study how precipitation has affected food consumer price inflation (CPI), using dynamic panel estimation of food CPI Phillips curves across countries for 34 OECD member and candidate economies from 1985 to 2010 augmented with climate variables. We allow for nonlinear effects of precipitation on food CPI inflation, and also control for possible nonlinear effects of temperature. We find that precipitation has significant nonlinear effects on food CPI inflation. The coefficient of food CPI inflation on the linear precipitation term is significantly negative, and the coefficient on the quadratic precipitation term is significantly positive. Consequently, food CPI inflation increases as precipitation becomes very low and very high. Moreover, we find that temperature has no additional explanatory power for food CPI inflation over and above that of precipitation. We control for the effects of inflation expectations, the output gap and exchange rate changes on food CPI inflation, which are significant with the expected signs. |
| Keywords: | climate change, precipitation, temperature, inflation, food prices |
| JEL: | E31 E52 E58 Q48 Q58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9961&r= |
| By: | Vittorio Bassi; Matthew E. Kahn; Nancy Lozano Gracia; Tommaso Porzio; Jeanne Sorin |
| Abstract: | In developing countries, most manufacturing firms are small and located in high-density urban areas, often near congested streets. To study the determinants and implications of this location choice, we collect a novel firm survey and detailed air pollution measurements within Ugandan cities. We find that firms locate on the busiest roads searching for customer visibility, but in doing so they expose their workers to substantial pollution. This sorting pattern increases profits, but with severe health costs: if firms were randomly located across space, annual profits would decrease by $195 for the average firm, but its workers' life expectancy would increase by two months. |
| JEL: | Q4 Q53 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30536&r= |
| By: | Delâtre, Chloë |
| Abstract: | Individual investors and financial institutions are increasingly seeking to divest from fossil fuel producers. This article investigates the financial implications of such a move by comparing two types of stock indices: (1) a traditional stock index that includes companies producing fossil fuels and (2) a stock index where companies producing fossil fuels are completely excluded, but not necessarily extended by clean energy companies. Using a series of measures, we find that fossil fuel-divested indices do not have significantly different risk-adjusted returns from their parent indices. We also find that combining fossil fuel divestment with negative and positive screening methodologies yields significantly higher risk-adjusted returns. |
| Keywords: | Désinvestir des combustibles fossiles, changement climatique, performance financière, indices boursiers |
| JEL: | G0 G1 G2 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114633&r= |
| By: | Jolliffe,Dean Mitchell; Mahler,Daniel Gerszon; Veerappan,Malarvizhi; Kilic,Talip; Wollburg,Philip Randolph |
| Abstract: | Data produced by the public sector can have transformational impacts on development outcomesthrough better targeting of resources, improved service delivery, cost savings in policy implementation, increasedaccountability, and more. Around the world, the amount of data produced by the public sector is increasing at a rapidpace, yet their transformational impacts have not been realized fully. Why has the full value of these data notbeen realized yet This paper outlines 12 conditions needed for the production and use of public sector data to generatevalue for development and presents case studies substantiating these conditions. The conditions are thatdata need to have adequate spatial and temporal coverage (are complete, frequent, and timely), are of high quality(are accurate, comparable, and granular), are easy to use (are accessible, understandable, and interoperable), and aresafe to use (are impartial, confidential, and appropriate). |
| Keywords: | Health Care Services Industry,Inequality,Hydrology,Gender and Development,Water Supply and Sanitation Economics,Sanitary Environmental Engineering,Small Private Water Supply Providers,Health and Sanitation,Water and Human Health,Town Water Supply and Sanitation,Sanitation and Sewerage,Engineering,Environmental Engineering |
| Date: | 2021–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9811&r= |
| By: | Zuzanna Zarach (Gdansk University of Technology, Gdansk, Poland); Aleksandra Parteka (Gdansk University of Technology, Gdansk, Poland) |
| Abstract: | This paper models export diversification in the context of an abundance of natural resources by decomposing the relative Theil index. On a sample of 160 countries from 1996 to 2018 we document that 74% of the high export concentration typical of the initial stage of development is driven by the limited variety of products other than natural resources. Later, the component representing export reallocation between resources and non-resource products gains importance, and eventually, together with intra-resource heterogeneity, explains the entire amount of export diversification at high income levels. Our estimates show that natural resource abundance (in particular of fossil fuels) impedes overall diversification, limiting the variety of non-resource exports and hampering restructuring towards technologically advanced exports. However, once size and productivity differences across countries are taken into account, the effect of resource abundance on export diversification is weak. |
| Keywords: | natural resources, export diversification, Theil, decomposition |
| JEL: | F14 O13 Q3 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:gdk:wpaper:70&r= |
| By: | LI Chao; MANAGI Shunsuke |
| Abstract: | The positive effects of greenness in living environments on human well-being are known. As a widely used proxy, the nighttime light (NTL) indicates the regional socio-economic status and development level. Higher development levels and economic status are related to more opportunity and higher income, ultimately leading to greater human well-being. However, whether simple increases in greenness and NTL always produce positive results remains inconclusive. Here, we demonstrate the complex relationships between human well-being and greenness and NTL by employing the random forest method. The accuracy of this model is 81.83%, exceeding most previous studies. According to the analysis results, the recommended ranges of greenness and NTL in living environments are 10.91% - 32.99% and 0 – 17.92 nW/cm 2 ･sr , respectively. Moreover, the current average monetary values of greenness and NTL are 3351.96 USD/% and 658.11 USD/(nW/cm 2 ･sr) , respectively. The residential areas are far away from the abundant natural resources, which makes the main population desire more greenness in their living environments. Furthermore, high urban development density, represented by NTL, has caused adverse effects on human well-being in metropolitan areas. Therefore, retaining a moderate development intensity is an effective way to achieve a sustainable society and improve human well-being. |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:22093&r= |
| By: | Lebrand,Mathilde Sylvie Maria; Yin,Qiuyan |
| Abstract: | Household surveys remain underutilized for understanding transport choices such asexpenditure level and composition, the economic impacts of road accidents, and the economic and distributional impactsof environmental policies such as vehicle restrictions or fuel taxes. This paper reviews more than 30 Living StandardsMeasurement Study surveys conducted after 2010, non-Living Standards Measurement Study surveys, and two World Bankharmonized household survey databases, to compile and categorize an extensive list of transport-related questions.The paper discusses current limitations in using Living Standards Measurement Study household surveys. Most of thetransport-related questions in the Living Standards Measurement Study survey collection are not harmonizedacross years and countries. Consistent and more detailed data on road accidents and the type and use of vehiclesshould be added to help design and evaluate road safety and climate policies. A standard set of guidelines and samplequestions to be integrated into future household surveys is therefore provided. |
| Keywords: | Labor Markets,Educational Sciences,Human Rights,Employment and Unemployment |
| Date: | 2022–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9944&r= |
| By: | Batana,Yele Maweki; Jarotschkin,Alexandra; Konou,Akakpo Domefa; Masaki,Takaaki; Nakamura,Shohei; Viboudoulou Vilpoux,Mervy Ever |
| Abstract: | This paper examines living conditions—mainly access to infrastructure and basicservices—in Kinshasa, by focusing on how they vary within the city and how they are related to householdcharacteristics. First, drawing on a household survey conducted in the capital province in 2018, the paper showsthat many Kinshasa residents live with substandard housing and inadequate levels of access to infrastructure and basicservices. Second, the level and quality of access to basic services are highly correlated with residents’ consumptionand education levels, as well as their neighborhood characteristics. Third, despite the presence of negativeexternalities from the high population density, poor households benefit from living in dense neighborhoods bygaining a minimum level of access. The paper argues that it is imperative to increase the supply of affordable housingto lessen the inequality of access to services in Kinshasa. |
| Keywords: | Hydrology,Urban Housing and Land Settlements,Urban Governance and Management,Municipal Management and Reform,Urban Housing,Health and Sanitation,Small Private Water Supply Providers,Sanitary Environmental Engineering,Environmental Engineering,Sanitation and Sewerage,Engineering,Water Supply and Sanitation Economics,Water and Human Health,Town Water Supply and Sanitation,Educational Sciences,Natural Disasters |
| Date: | 2021–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9857&r= |
| By: | Joseph,George; Ayling,Sophie Charlotte Emi; Miquel-Florensa,Pepita; Bejarano,Hernán D.; Cardona,Alejandra Quevedo |
| Abstract: | In the past two decades, insights from behavioral sciences, particularly behavioral economics, have been widely applied in the design of social programs such as pensions, social security, and taxation. This paper provides a survey of the existing literature in economics on the application of behavioral insights to infrastructure sectors, focusing on water and energy. Various applications of behavioral insights in the literature are examined from the perspectives of the three main actors in the infrastructure sectors: policy makers, service providers, and consumers. Evidence is presented from the literature on how behavioral regularities, such as imperfect optimization, limited self-control, and nonstandard preferences, affect the strategies, decisions, and actions of policy makers, service providers, and consumers, often leading to suboptimal outcomes for service investment, delivery, access, and use. The paper also highlights how behavioral interventions such as anchoring, framing, nonpecuniary incentives, and altering the choice architecture can lead to improvements in performance, adoption, consumption, and other outcomes of interest in the infrastructure sectors. |
| Keywords: | Hydrology,Sanitary Environmental Engineering,Water Supply and Sanitation Economics,Town Water Supply and Sanitation,Small Private Water Supply Providers,Engineering,Sanitation and Sewerage,Water and Human Health,Health and Sanitation,Environmental Engineering,Energy and Mining,Energy and Environment,Energy Demand,Private Sector Economics |
| Date: | 2021–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9704&r= |
| By: | Andres, Pia |
| Abstract: | Low cost solar energy is key to enabling the transition away from fossil fuels. Despite this, the European Union followed the United States’ example in imposing anti-dumping tariffs on solar panel imports from China in 2012, arguing that Chinese panels were unfairly subsidised and harmed its domestic industry. This paper examines the effects of Chinese import competition on firm-level innovation in solar photovoltaic technology by European firms using a sample of 4,632 firms in 14 EU countries over the period 1999- 2018. I show that firms which were exposed to higher import competition innovated more. Further, I find that during the years following the trade war, firms with a higher existing stock of innovation became less innovative. The results imply that competition from China constituted a positive push for more innovation among European solar innovators, calling into question the rationale behind the trade war. |
| Keywords: | China; EU; green inovation; international trade; renewable energy; solar PV |
| JEL: | L81 |
| Date: | 2022–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:116943&r= |
| By: | Thapa,Dikshya; Farid,Muhammad Noor; Prevost,Christophe |
| Abstract: | This paper contributes to a long-standing debate in development practice: Under whatconditions can externally established participatory groups engage in the collective management of services beyond thelife of a project Using 10 years of panel data on water point functionality from Indonesia’s rural water program,the Program for Community-Based Water Supply and Sanitation, the paper explores the determinants of subnational variationin infrastructure sustainability. It then investigates positive and negative deviance cases to answer why somecommunities have successfully engaged in system management despite being located in difficult conditions as perquantitative findings and vice versa. The findings show that differences in the implementation of communityparticipation, driven by local social relations between frontline service providers, that is, village authoritiesand water user groups, explain sustainable management. This initial condition of state-society relations influences howthe project is initiated, kicking off negative or positive reinforcing pathways, leading to community collective actionor exit. The paper concludes that the relationships between frontline government representatives and community actorsare an important and underexamined aspect of the ability of external projects to generate successful community-ledmanagement of public goods. |
| Keywords: | Hydrology,Small Private Water Supply Providers,Water Supply and Sanitation Economics,Town Water Supply and Sanitation,Water and Human Health,Water and Food Supply,Energy Policies & Economics,Regional Governance,Social Accountability,Local Government |
| Date: | 2021–10–07 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9798&r= |
| By: | Luiz de Mello; João Tovar Jalles |
| Abstract: | The subnational governments, at the regional and local levels, play an important role in the prevention, management and recovery from natural disasters and pandemics/epidemics. These jurisdictions are responsible for issuing and monitoring compliance with several aspects of regulation that are essential for risk prevention, including land use and construction codes; for providing frontline services that are crucial for effective crisis management, including health care, civil protection, and public order and safety; and for rebuilding lost or damaged physical infrastructure in the recovery phase. This paper provides empirical evidence based on impulse response functions that the occurrence of natural disasters and the outbreak of pandemics/epidemics are associated with an increase in the subnational shares of government spending and revenue in the years following these shocks. These decentralisation effects vary according to specific shocks and are conditional on the business cycle: they tend to be stronger when the shocks materialise during cyclical expansions. |
| Keywords: | decentralisation; natural disasters; pandemics; epidemics; public finances; regional autonomy; impulse response functions; panel data. |
| JEL: | H11 H23 H77 Q58 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp02482022&r= |
| By: | Naeher,Dominik; Narayanan,Raghavan; Ziulu,Virginia |
| Abstract: | Spatial difference-in-differences analysis is used to study the impacts of a large-scaledevelopment intervention aimed at improving energy efficiency in Malawi. The estimation strategy takesadvantage of the geographical variation in the implementation of different project components and is basedon a combination of remote-sensing (satellite) data and national household survey data. The results suggest that acombination of demand-side and supply-side interventions was associated with a statistically significant increase inelectricity access, a decrease in the frequency of blackouts, and a switch from traditional fuels toelectricity as the main source of energy for lighting (but not for cooking). At the same time, there is no evidencethat the intervention caused households to pay more for electricity. The results are consistent with an emergingview in the literature that there are synergies between energy efficiency and energy access, especially in placeswhere the bottleneck to wider electricity access is limited electricity generation capacity rather than the cost ofconnecting more clients to the grid. |
| Keywords: | Energy and Environment,Energy Demand,Energy and Mining,Energy Policies & Economics,Electric Power,Energy Conservation & Efficiency,Energy Consumption,Environment and Energy Efficiency |
| Date: | 2021–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9842&r= |
| By: | Freund,Caroline; Mattoo,Aaditya; Mulabdic,Alen; Ruta,Michele |
| Abstract: | To understand the longer term consequences of natural disasters for global value chains, this paper examines trade in the automobile and electronic sectors after the 2011 earthquake in Japan. Contrary to widespread expectations, the analysis shows that the shock did not lead to reshoring, nearshoring, or diversification; and trade in intermediate products was disrupted less than trade in final goods. Imports did shift to new suppliers, especially where dependence on Japan was greater. But production relocated to developing countries rather than to other top exporters. Despite important differences, the observed pattern of switching may be relevant to disasters like the COVID-19 pandemic. |
| Keywords: | Natural Disasters,International Trade and Trade Rules,Industrial and Consumer Services and Products,Transport and Trade Logistics |
| Date: | 2021–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9719&r= |
| By: | Sarah Serval (AMU - Aix Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, AMU IMPGT - Institut de management public et de gouvernance territoriale - AMU - Aix Marseille Université); Magdalena Potz (AMU - Aix Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, AMU IMPGT - Institut de management public et de gouvernance territoriale - AMU - Aix Marseille Université); Solange Hernandez (AMU - Aix Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, AMU IMPGT - Institut de management public et de gouvernance territoriale - AMU - Aix Marseille Université) |
| Keywords: | co-création,développement durable,manager public,territoire,travail institutionnel |
| Date: | 2022–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03792072&r= |
| By: | Maruyama Rentschler,Jun Erik; Hosoe,Nobuhiro |
| Abstract: | This study develops a computable general equilibrium model for Nigeria, which accounts forinformality, tax evasion, and fuel smuggling. By studying the impact of fuel subsidy reform on consumption, taxincidence, and fiscal efficiency, it shows that the presence of illicit activities substantially strengthens the argumentin favour of subsidy reform: First, fuel subsidy reform can shift the tax base to energy goods, which are less prone totax evasion losses than for instance labour. Second, by reducing price differentials with neighbouring countries,subsidy reform reduces incentives for fuel smuggling. Overall, the results show that considering illicitactivities reduces the welfare losses of fuel subsidy reform by at least 40 percent. In addition, fuel subsidy reductions(and by extension energy tax increases) have a strong progressive distributional impact. The findings hold underdifferent revenue redistribution mechanisms, in particular uniform cash transfers and the reduction of pre-existinglabour taxes. |
| Keywords: | Social Conflict and Violence,Tax Law,Economic Assistance,Access of Poor to Social Services,Disability,Services & Transfers to Poor,Energy and Environment,Energy and Mining,Energy Demand,Energy Policies & Economics |
| Date: | 2022–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9907&r= |