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on Environmental Economics |
| By: | Matteo Ciccarelli (European Central Bank); Fulvia Marotta (Queen Mary University of London) |
| Abstract: | Using a panel of 24 OECD countries for the sample 1990-2019 and a standard macroeconomic framework, the paper tests the combined macroeconomic effects of climate change, environmental policies and technology. Overall, we find evidence of significant macroeconomic effects over the business cycle: physical risks act as negative demand shocks while transition risks as downward supply movements. The disruptive effects on the economy are exacerbated for countries without carbon tax or with a high exposure to natural disasters. In general, results support the need for a uniform policy mix to counteract climate change with a balance between demand-pull and technology-push policies. |
| Keywords: | Environmental policy, Environment-related technologies, Physical risks, Business cycle, SVAR |
| JEL: | C11 C33 E32 E58 Q5 |
| Date: | 2021–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:933&r=env |
| By: | Calzadilla, Alvaro; Winning, Matthew; Domenech, Teresa |
| Abstract: | A pathway towards 1.5°C requires substantial economic, societal and technological transformations (IPCC 2018). All sectors require deep and immediate emissions reductions. Heavy industry (steel, cement and chemicals) and heavy-duty transport (trucking, shipping and aviation) are responsible for around one-third of global CO2 emissions (ETC 2018). However, reducing emissions in these hard-to-abate sectors requires policy makers to support the development and diffusion of carbon-neutral technologies and align decarbonisation strategies to global and regional sustainable development pathways. We use an updated version of the ENGAGE-Materials model to assess different strategies and technology options in the iron and steel sector to achieve decarbonisation and a sustainable use of resources. Our results show that an enhanced circularity and the availability of new low-carbon technologies in the steel sector help reduce the costs of decarbonisation. Furthermore, the introduction of a global carbon price that limits fossil fuel use and the associated greenhouse gas emissions motivates the steel industry to move towards a more circular use of steel. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333480&r=env |
| By: | Fournier Gabela, Julio G.; Freund, Florian |
| Abstract: | Achieving climate targets requires more stringent mitigation policies, including the participation of economic sectors beyond energy-intensive industries. However, what this implies for carbon leakage risks remains largely an open question. This paper aims to fill this gap by assessing potential carbon leakage risk for all sectors under varying climate policy scopes covering GHG emissions along global supply chains. To measure this risk, we use the emission-intensity and trade-exposure metric and emission data including CO2 and non-CO2 gasses. Under a uniform carbon price and assuming full carbon cost pass-through, we find that carbon leakage risk in downstream sectors can be as high as in sectors whose direct GHG emissions are subject to carbon pricing. We also find that agri-food and transport sectors have, on average, a higher potential risk than energy-intensive industries. Our results highlight the importance of developing sound anti-leakage mechanisms tailored to each sector’s characteristics. |
| Keywords: | Environmental Economics and Policy, International Relations/Trade |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333468&r=env |
| By: | Johnson, David; Geldner, Nathan; Liu, Jing; Baldos, Uris Lantz; Hertel, Thomas |
| Abstract: | Biobased energy, particularly corn starch-based ethanol and other liquid renewable fuels, are a major element of federal and state energy policies in the United States. These policies are motivated by energy security and climate change mitigation objectives, but corn ethanol does not substantially reduce greenhouse gas emissions when compared to petroleum-based fuels. Corn production also imposes substantial negative externalities (e.g., nitrogen leaching, higher food prices, water scarcity, and indirect land use change). In this paper, we utilize a partial equilibrium model of corn-soy production and trade to analyze the potential of reduced US demand for corn as a biobased energy feedstock to mitigate increases in nitrogen leaching, crop production and land use associated with growing global populations and income from 2020 to 2050. We estimate that a 23% demand reduction would sustain land use and nitrogen leaching below 2020 levels through the year 2025, and a 41% reduction would do so through 2030. Outcomes are similar across major watersheds where corn and soy are intensively farmed. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333475&r=env |
| By: | Bacchetta, Marc; Bekkers, Eddy; Solleder, J.M.; Tresa, Enxhi |
| Abstract: | Trade liberalization in environmental goods is expected to mitigate climate change by limiting greenhouse gas emissions. In this paper, quantitative modelling is used to generate projections on the trade, GDP, and emission effects of a potential trade liberalization agreement in energy related environmental goods. Two channels reducing greenhouse gas (GHG) emissions are considered: an increase in energy efficiency through the reduction in import prices of energy related environmental goods (EREGs) and a reduction in the costs of intermediate and capital goods used in electricity production from renewable energy sources. We evaluate four scenarios based on combinations of reductions in tariffs and NTMs of EREGs, and environmentally preferable products (EPPs). Simulations with the WTO Global Trade Model project: (i) an increase in exports of EREGs and EPPs both at the global level and in most regions; (ii) a modest increase in GDP in all regions because of falling tariffs, NTMs, and increased energy efficiency; (iii) a modest reduction in global emissions of about 0.3%. |
| Keywords: | International Relations/Trade, Environmental Economics and Policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333427&r=env |
| By: | Golub, Alla; Haqiqi, Iman; Karami, Omid; Sajedinia, Ehsanreza; Taheripour, Farzad |
| Abstract: | Transboundary water resources are crucial in ensuring people have an adequate water supply. These shared resources need to be managed in a sustainable, equitable, and collaborative manner. The focus of this study is on Tigris-Euphrates River Basin, where the situation is particularly difficult due to climate change, weak cooperation among riparian countries, intensive hydropower development, inefficient agricultural practices, and political instability. This study evaluates the economic outcomes of transboundary water allocation scenarios under alternative climate futures and considers cooperation plans that can be implemented to reduce controversies over water allocation in the Tigris-Euphrates River Basin. In addition to the contribution to resource policy literature, this study offers a unique coupling of a complex economic model with a hydrological model. |
| Keywords: | Environmental Economics and Policy, International Relations/Trade |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333500&r=env |
| By: | Martijn Boermans |
| Abstract: | In recent years, the green bond market has seen significant growth as a means of financing environmentally-friendly projects. However, while much research has focused on pricing, little attention has been given to the investors who hold these bonds. This paper uses a preferred habitat framework to analyze the preferences of European investors for green bonds. By analyzing a confidential dataset of portfolio holdings from 2016-Q4 to 2022-Q4, the study finds that European investors, particularly mutual funds and pension funds, show a high demand for green bonds. In contrast, insurance corporations and households tend to avoid green bonds. The research also suggests that the demand for green bonds among mutual funds and pension funds is price inelastic, while banks and insurance corporations display an elastic demand. The findings highlight the presence of a preferred habitat for green bonds among European mutual funds and pension funds. These findings are robust for potential endogeneity concerns when we apply matching techniques, are stronger for domestic green bonds, and also apply to sustainability-linked bonds. |
| Keywords: | green bonds; preferred habitat; institutional investors; securities holdings statistics; greenium; climate change; environmental impact; sustainability-linked bonds; portfolio holdings |
| JEL: | G11 G15 G23 Q54 Q56 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:773&r=env |
| By: | Ricardo Dahis; Ivan de las Heras; Santiago Saavedra |
| Abstract: | Policies often have costs today but benefits far into the future, especially climate change and environmental policies. A critical dimension in this trade-off is politicians’ age, which impacts their life expectancy, career concerns, and what education they receive. We study this trade-off in the case of Brazilian mayors and environmental outcomes, using close elections. We find that when a young politician is elected, there is a reduction in deforestation and greenhouse gas emissions without significant effects on municipal GDP. Our study of mechanisms suggests young mayors matter because they belong to a new cohort, not because of age per se. |
| Keywords: | Deforestation, Age |
| JEL: | P18 Q23 Q54 |
| Date: | 2023–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:020694&r=env |
| By: | Roger Martini |
| Abstract: | Regulations are an important part of the policy toolkit governments can use to address climate and environmental objectives in agriculture. This report reviews existing literature on the characteristics and assessment of environmental regulations in agriculture. It finds that direct evidence on the outcomes and cost-effectiveness of agri-environmental regulations is generally limited and situation-specific. However, a taxonomy that classifies and organises information on regulations can give a sense of their number, the environmental domains covered, and the scope and depth of their application. This is potentially useful with respect to measuring progress on international commitments for action on climate change mitigation and other analysis. |
| Keywords: | Agriculture, Climate change, Environment |
| JEL: | K23 Q18 Q28 Q58 |
| Date: | 2023–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:194-en&r=env |
| By: | Shakib, Mohammed; Yumei, Hou; Rauf, Abdul; Alam, Md. Mahmudul (Universiti Utara Malaysia); Murshed, Muntasir; Mahmood, Haider |
| Abstract: | The Belt and Road Initiative (BRI) is an ambitious development project initiated by the Chinese government to foster economic progress worldwide. This study aims to investigate the dynamics of energy, economy, and environment among 42 BRI developing countries using an annual frequency panel dataset from 1995 to 2019. The major findings from the econometric analysis revealed that higher degrees of energy consumption, economic growth, population growth rate, and FDI inflows exhibit adverse environmental consequences by boosting the CO2 emission figures of the selected developing BRI nations. However, it is interesting to observe that exploiting renewable energy sources, which are relatively cleaner compared to the traditionally-consumed fossil fuels, and fostering agricultural sector development can significantly improve environmental well-being by curbing the emission levels. On the other hand, financial development is found to be ineffective in explaining the variations in CO2 emission figures of the selected BRI member countries. Besides, the causality analysis shows that higher energy consumption, FDI inflows, and agricultural development cause environmental pollution by boosting carbon dioxide emissions. However, economic growth, technology development, financial progress, and renewable energy consumption are evidenced to exhibit bidirectional causal associations with carbon dioxide emissions. In line with these findings, several relevant policies can be recommended. |
| Date: | 2022–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:ktj5n&r=env |
| By: | Guillaume Gruère; Emanuela Migliaccio; Ethan Ellis; Wataru Kodama; Lapo Roffredi; Veronika Vanisova |
| Abstract: | Governments in many countries are pursuing higher environmental goals for agriculture. However, in an interconnected world, the unilateral adoption of environmental policies for agriculture can reduce the producers’ competitiveness and induce pollution leakage. This report analyses these challenges and discusses policy solutions, focusing on two examples: climate change mitigation policies and policies limiting the environmental impacts of pesticides. The extent of competitiveness and leakage effects is found to depend on market conditions, differences in pollution intensity, and the type of environmental policy adopted. Two policy routes are identified to improve agriculture’s environmental performance while maintaining the benefits of global markets. The first route relies on “direct” environmental policies, such as market-based instruments or regulations, which are rapidly effective in limiting environmental impacts but may require additional complementary policies to limit their potential competitiveness and leakage impacts. The second route involves alternative policies acting on agricultural supply, demand, or through private sector engagement, which limit competitiveness and leakage impacts but may require time to be environmentally effective. |
| Keywords: | Agriculture policy, Climate change, Competitiveness, Environmental policy, Pesticides, Pollution leakage, Trade policy |
| JEL: | Q17 Q18 Q58 |
| Date: | 2023–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:193-en&r=env |
| By: | Claire Alestra; Gilbert Cette; Valérie Chouard; Rémy Lecat |
| Abstract: | This paper highlights how technology can contribute to reaching the COP21 goals of net zero CO2 emissions and global warming below 2°C at the end of the century. It uses the ACCL model, particularly adapted to quantify the consequences of energy price shocks and technology improvements on CO2 emissions, temperature changes, climate damage and GDP. Our simulations show that without climate policies, i.e. a ‘business as usual’ scenario, the warming may be +4 to +5°C in 2100, with considerable climate damage. We also find that an acceleration in ‘usual technical progress’ - not targeted at reducing greenhouse gas intensity - makes global warming and climate damage worse than the ‘business as usual’ scenario. According to our estimates, the world does not achieve climate goals in 2100 without technological changes to avoid CO2 emissions. To hit such climatic targets, intervening only through the relative price of different energy types, e.g. via a carbon tax, requires challenging hypotheses of international coordination and price increase for polluting energies. We assess a multi-lever climate strategy, associating diverse price and technology measures. This mix combines energy efficiency gains, carbon sequestration, and a decrease of 3% per year in the relative price of non-carbon-emitting electricity with a 1 to 1.5% annual rise in the relative price of our four polluting energy sources (corresponding to a relatively low but achievable carbon tax scenario). None of these components alone is sufficient to reach climate objectives. Our last and most important finding is that our composite scenario achieves the climate goals. |
| Keywords: | : Climate, Global Warming, Technology, Environmental Policy, Growth, Long-Term Projections, Uncertainties, Renewable Energy |
| JEL: | H23 Q54 E23 E37 O11 O47 O57 Q43 Q48 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:909&r=env |
| By: | - |
| Keywords: | AGENDA 2030 PARA EL DESARROLLO SOSTENIBLE, ASPECTOS AMBIENTALES, MEDIO AMBIENTE, PROGRAMAS DE ACCION, PROYECTOS DE DESARROLLO, EVALUACION DE PROYECTOS, 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT, ENVIRONMENTAL ASPECTS, ENVIRONMENT, PROGRAMMES OF ACTION, DEVELOPMENT PROJECTS, PROJECT EVALUATION |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col093:48721&r=env |
| By: | Taheripour, Farzad; Hoyoung, Kwon; Mueller, Steffen; Emery, Isaac; Karami, Omid; Sajedinia, Ehsanreza |
| Abstract: | No major effort has been made to assess uncertainties in land use emissions values of biofuels due to changes in emissions factors. This paper aims to fill this knowledge gap with two different but related research activities. The first research activity studies the available sources of information on vegetation and soil carbon data sets that have been used in developing land use emissions factors to understand their similarities and differences across various land types and ecological conditions. The second research activity mixes the estimated land use changes obtained from an advanced version of the GTAP-BIO model for a wide range of biofuel pathways with various sets of emissions factors obtained from different vegetation and soil carbon data sources (examined in the first research activity) to examine the sensitivity of the ILUC emissions values for the examined pathways with respect to the changes in emissions factors. These research activities make significant contributions to the existing debates on uncertainties in ILUC emissions values. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333402&r=env |
| By: | Marcin Borsuk (Institute of Economics, Polish Academy of Sciences, Poland; University of Cape Town, South Africa); Nicolas Eugster (University of Queensland, Australia); Paul-Olivier Klein (University of Lyon, France: Université Jean Moulin Lyon 3, iaelyon School of Management, UR Magellan. 1 av. des Frères Lumière, 69008 Lyon, France. Orcid: orcid.org/0000-0003-2403-5980); Oskar Kowalewski (Institute of Economics, Polish Academy of Sciences, Poland IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Économie, F-59000 Lille, France) |
| Abstract: | This study examines the relationship between family ownership and carbon emissions using a large cross-country dataset comprising 6, 610 non-financial companies over the period 2010- 2019. We document that family firms display lower carbon emissions, both direct and indirect, when compared to non-family firms, suggesting a higher commitment to environmental protection by family owners. We show that this differential effect started following the 2015 Paris Agreement. Differences in governance structure, familial values, and higher spendings in R&D partly explain our results. Paradoxically, we find that family-owned firms and family CEOs commit less publicly to a reduction in their carbon emissions and have lower ESG scores, although polluting less. This suggests a lower participation in the public display of such an outcome and a lower tendency to greenwashing. |
| Keywords: | : carbon emission, ESG, governance, family firms, greenwashing, climate change |
| JEL: | G3 G38 M14 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ies:wpaper:f202301&r=env |
| By: | Perdana, Sigit; Vielle, Marc |
| Abstract: | Implementation of CBAM to support EU climate neutrality by 2050 has raised several concerns. As the mechanism aims to minimise leakage through equal fairness in global mitigation, imposing carbon tariffs on the EU's imports of energy- intensive goods could curtail the export of EU trading partners. This might be detrimental, especially to the LDCs, due to their high exposures and vulnerability risks. This paper assesses and quantifies the implication of EU-CBAM and analyses eight complementary measures to mitigate the impacts on LDCs. Scenario developments are constructed by projecting the EU's new climate targets relative to the reference scenario of the EU's current policies. A more stringent climate target results in carbon leakage, and implementing CBAM will reduce the rate by one-third by 2040. The analysis also confirms significant welfare loss for LDCs through declining exports. Exempting LDCs from EU CBAM is less justifiable, as this measure results in greater leakage than other options. A further assessment confirms that policy recommendation for CBAM complementary measures should focus on the climate transformation pathway for LDCs. EU CBAM implementation with revenue-redistribution targeted to promote clean and efficient use of energy in LDCs has improved the welfare of recipient countries, substantially reduced leakage, and proven cost-efficient for the EU. |
| Keywords: | Environmental Economics and Policy, International Relations/Trade |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333458&r=env |
| By: | OECD |
| Abstract: | Climate change presents a major social, economic and political challenge for the Slovak Republic. The majority of municipal administrations are unaware of the potential climate risks they face today and in the coming years. Identifying risks posed by climate change and its inevitable impacts is an essential part of developing adaptation policies. While national adaptation policies have historically been formulated in an ad hoc manner, an evidence-based approach that relies on data is increasingly informing policy decisions. This paper provides an overview of the country’s adaptation policy context and presents a methodology – and the results of its application – for measuring climate change risks with respect to heat, drought and extreme precipitation. The results aim to inform future budget allocation decisions for climate change adaptation. |
| Keywords: | climate change adaptation, climate hazards, data envelopment analysis |
| JEL: | C60 Q54 Q58 |
| Date: | 2023–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaac:35-en&r=env |
| By: | Chepeliev, Maksym; Maliszewska, Maryla; Rodarte, Israel Osorio; Pereira, Maria Filipa Seara; van der Mensbrugghe, Dominique |
| Abstract: | Climate change and the respective policies for carbon emission reductions will test the resilience of global value chains and shape them. Shocks in production and trade can be transmitted from one country to another by global value chains, although they can also help to lessen the blow of a domestic shock. This paper explores simulations from the ENVISAGE global computable general equilibrium model to enhance understanding of the potential longer-term impacts of environmental policies. It evaluates the key factors shaping the global economy with stylized scenarios that capture the essential elements of policies to achieve carbon emission reductions that will have an impact on trade. |
| Keywords: | International Relations/Trade, Environmental Economics and Policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333405&r=env |
| By: | Meligi, El; Ferreira, Valeria; Nechifor, Victor; Ferrari, Emanuele |
| Abstract: | Much debate has focused on the relationship between economic activities and the social and environmental impacts. This article introduces a new and environmentally extended Social Accounting Matrix for Cameroon. The SAM for 2016 has been built on the National Accounts data with the combination of employment data derived by various Households and Labour force surveys, and CO2 emissions accounts has been obtained from official reports and statistics. Based on SAM linear multiplier analysis, the aim of this article is to identify the key sectors for which final demand is most conducive to job creation but also to illustrate the corresponding employment intensity of emissions. In this sense, the ‘employment intensity of carbon’ is computed and used as an indicator that shows the amount of employment associated to CO2 emitted by the production of goods and services. At a later stage, presented how a target of environmental sustainability expressed as a potential CO2 emission reduction goal, as pledged in the latest Nationally Determined Contribution, can be achieved and its implications on the employment change. |
| Keywords: | International Relations/Trade, Environmental Economics and Policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333428&r=env |
| By: | Nath, Ishan |
| Abstract: | This paper combines local temperature treatment effects with a quantitative macroeconomic model to assess the potential for global reallocation between agricultural and non-agricultural production to reduce the costs of climate change. First, I use firm-level panel data from a wide range of countries to show that extreme heat reduces productivity less in manufacturing and services than in agriculture, implying that hot countries could achieve large potential gains through adapting to global warming by shifting labor toward manufacturing and increasing imports of food. To investigate the likelihood that such gains will be realized, I embed the estimated productivity effects in a model of sectoral specialization and trade covering 158 countries. Simulations suggest that climate change does little to alter the geography of agricultural production, however, as high trade barriers in developing countries temper the influence of shifting comparative advantage. Instead, climate change accentuates the existing pattern, known as “the food problem, ” in which poor countries specialize heavily in relatively low productivity agricultural sectors to meet subsistence consumer needs. The productivity effects of climate change reduce welfare by 6-10% for the poorest quartile of the world with trade barriers held at current levels, but by nearly 70% less in an alternative policy counterfactual that moves low-income countries to OECD levels of trade openness. |
| Keywords: | International Relations/Trade, Environmental Economics and Policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333404&r=env |
| By: | Rudik, Ivan; Lyn, Gary; Tan, Weiliang; Ortiz-Bobea, Ariel |
| Abstract: | We develop a dynamic-spatial equilibrium model to quantify the economic effects of climate change with a focus on the United States. We find that climate change reduces US welfare by 4% and global welfare by over 20%. Market-based adaptation through trade and labor reallocation increases US welfare, but with substantial spatial heterogeneity. Adaptation through labor reallocation and trade are complementary: together they boost welfare by 50% more than their individual effects. We additionally develop a new dynamic envelope theorem method for measuring welfare impacts in reduced form and to validate our quantitative model. We find that welfare distributions from our two approaches are consistent, indicating that our quantitative model captures the first-order factors for measuring the distributional impacts of climate change. The level and distribution of the economic impacts of climate change depends the sectoral and spatial structure of the economy, and the extent to which different markets can adapt. |
| Keywords: | Environmental Economics and Policy, International Relations/Trade |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333486&r=env |
| By: | Manh-Hung Nguyen (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | In this chapter, we look at the effects of climate variability on a range of tropical diseases and on general mortality. We find a strong impact of temperature on vector-borne and water-borne disease, where the incidence of infection is significantly decreased at temperatures below 15°C, but increased on the bin above 30°C for vector-borne disease. The impact is weaker on airborne diseases than the two other types. The effect of weather changes on the incidence of major diseases differs by climate region. Provinces located in the South and Southern Central Coast appear to have a higher level of sensitivity to infections at 15°C-18°C temperatures than other provinces. Regarding mortality, we find robust evidence on the positive effects of cold and heat waves on mortality. An additional day in a cold wave is estimated to increase the monthly mortality rate by 0.6%. The corresponding figure for a day in a heat wave is 0.7%. The effect of cold waves as well as heat waves tends to increase when the cold and heat waves last for a longer time. Compared with a cold wave, the effect of a heat wave on the mortality rate is more significant and of a larger magnitude. All climate change scenarios also imply an increase in the number of heat waves with a clear impact on mortality. |
| Keywords: | Climate change, Infectious disease, Mortality, Health policy, Viet Nam |
| Date: | 2023–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04044520&r=env |
| By: | Tomás Baioni |
| JEL: | Q56 Q51 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4432&r=env |
| By: | Matthew Ackman; Timothy Grieder; Callie Symmers; Geneviève Vallée |
| Abstract: | We analyze the financial statements and stock prices of publicly traded firms incorporated in Canada that report greenhouse gas emissions. We find that these firms primarily use equity financing. We also find that equity investors increasingly account for firms’ emissions when making investment decisions but the impact appears small. This suggests that assets exposed to climate change remain at risk of a sudden repricing. |
| Keywords: | Asset pricing; Climate change; Financial stability; Firm dynamics |
| JEL: | G G1 G3 Q Q5 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocsan:23-4&r=env |
| By: | Dudu, Hasan; Beck, Hans Anand; Hallegatte, Stephane |
| Abstract: | In this paper we are analyzing the impacts of reaching to net zero by 2053 on Turkey’s economy. We use a CGE model that is calibrated to 2018 Social Accounting Matrix of Turkey. Our scenarios incorporate the results of sectoral analysis from Turkey Country Climate and Development Reports published by the World Bank (2022). We take the results of land use change, energy, transport, and buildings sectors and translate them into shocks in the CGE model. Our results suggest that high levels of electrification of buildings and transport are likely to pose challenges for the net zero pathway of Turkey, although the energy efficiency gains thanks to the mitigation policies are likely to compensate the adverse effects of increasing electricity prices in the short to medium term. Hence Turkey needs to revise the energy sector policies to increase the production capacity of renewables further to ease the transition to a net zero economy. Mitigation policies are progressive in the sense that they do not harm poorer households as much as richer households but still the lower income groups would need to be compensated especially in the early years of the transition. Increase in government revenues thanks to a carbon tax and removing subsidies on fossil fuels would create enough fiscal space for social protection programs required for a just transition. Last, a well-managed transition to a net zero economy offers significant growth benefits for Turkey. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333456&r=env |
| By: | Steven Fries (Peterson Institute for International Economics) |
| Abstract: | Over the next three decades, emerging markets and developing economies (EMDEs), and especially middle-income countries, are projected to account for much of the growth in global economic activity and energy use. While a decisive move to low-carbon technologies and energy efficiency would advance both their development goals and a stable climate, the countries have yet to fully tap this opportunity. The multilateral development banks (MDBs) are in a unique position to help lower barriers to low-carbon investments in EMDEs and unlock these sustainable development opportunities. Their differentiating governance, financial and technical capabilities, and financing instruments would enable MDBs to support the necessary business environment and energy reforms and to cofinance low-carbon and energy efficiency investments alongside other investors to reduce and manage risks. |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:iie:pbrief:pb23-2&r=env |
| By: | Sahin, Sebnem |
| Abstract: | The aim of this paper is to estimate how the role of the private sector in the Western Balkans aligns with the European Green Deal. For this purpose, we developed an economy-wide Computable General Equilibrium (CGE) model based on the net economic and environmental benefits obtained from climate finance projects in North Macedonia. We focus on two types of investments: those that target green/digital startups and innovative SMEs (MSME Fund), and others that support large enterprises and infrastructure PPP SPVs (Special Purpose Vehicle) in European Green Deal (EGD) sectors (GSIF). Our analysis focuses on the time frame 2023-2050; the rate of return of those two investments at the end of 5 cycles of investment is around 1.15 to 1.16 for the MSME and GSIF. Both Funds contribute towards decoupling in the approach to 2050. GDP increases by around 1.22 and 2.67 percentage points above the baseline in 2050 while CO2 emissions decrease by about 5.28 and 6.6 (under MSME and GSIF respectively). Overall effects on GDP components (consumption, exports, imports) are positive and higher for GSIF which is a larger fund than MSME. The model estimates a cross-economic increase by 0.69% (or 9, 468 jobs) for the MSME Fund and a 1.36% increase (or 18, 648 jobs) for the GSIF when above the baseline in 2050. This estimate includes a 0.38% increase in employment in the “sectors within the MSME portfolio”, hence an additional 867 jobs above the baseline in 2050. Regarding the “sectors within the GSIF portfolio”, the model estimates a 1.35% increase in employment, equivalent of 17, 867 new jobs in 2050 compared to the baseline. |
| Keywords: | Environmental Economics and Policy, International Relations/Trade |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333471&r=env |
| By: | Chen, Y.-H. Henry; Paltsev, Sergey; Gurgel, Angelo; Reilly, John; Morris, Jennifer |
| Abstract: | The MIT Economic Projection and Policy Analysis (EPPA) model has been widely used in energy, land use, technology, and climate policy studies. Here we provide details of revisions that form the basis of EPPA7, the current version. Key updates include: 1) using the latest Global Trade Analysis Project (GTAP-power) database as the core economic data for the world economy; 2) updating regional economic growth projections; 3) separating extant and vintage capital of the previously aggregated fossil generation; 4) using an innovative approach to calculate the costs of backstop (i.e., advanced) power generation options based on engineering data from the Energy Information Administration; 5) identifying base year biofuel output from existing sectors; and 6) re-parameterizing electric vehicles based on recent studies. Our simulations demonstrate that with widespread mitigation policies worldwide, regions relying heavily on fossil fuel imports benefit from lower global fossil fuel prices when their domestic emissions targets are lenient, but the benefits dissipate when deeper emissions cuts are imposed domestically. We also provide an illustration how the model output can be used to calculate the net present values of unrealized fossil fuel production and stranded assets from idling coal power generation under various policy scenarios. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333493&r=env |
| By: | Gabriela Demarchi (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, CIFOR - Center for International Forestry Research - CGIAR - Consultative Group on International Agricultural Research [CGIAR]); Julie Subervie (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); Thibault Catry (UMR 228 Espace-Dev, Espace pour le développement - IRD - Institut de Recherche pour le Développement - UPVD - Université de Perpignan Via Domitia - AU - Avignon Université - UR - Université de La Réunion - UG - Université de Guyane - UA - Université des Antilles - UM - Université de Montpellier); Isabelle Tritsch (UPR Forêts et Sociétés - Forêts et Sociétés - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement, Cirad-ES - Département Environnements et Sociétés - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement) |
| Abstract: | Ensuring the perpetuity and improvement of REDD initiatives requires rigorous impact evaluation of their effectiveness in curbing deforestation. Today, a number of global and regional remote sensing (RS) products that detect changes in forest cover are publicly available. In this study, we assess the suitability of using these datasets to evaluate the impact of local REDD projects targeting smallholders in the Brazilian Amazonb] Firstly, we reconstruct the forest loss of 21, 492 farms located in the Transamazonian region for the period 2008 to 2018, using data from two RS products: Global Forest Change (GFC) and the Amazon Deforestation Monitoring Project (PRODES). Secondly, we evaluate the consistency between these two data sources and find that the deforestation estimates at the farm level vary considerably between datasets. Despite this difference, using microeconometric techniques that use pre-treatment outcomes to construct counter-factual patterns of REDD program participants, we estimate that about two hectares, or about four percent of the forest area, were saved on average on each of the 350 participating farms during the first years of the program, regardless of the data-source used. Moreover, we find that deforestation decreased on plots surrounding participating farms during the very first years of the program, suggesting that the program may have had a positive effect on neighboring farms as well. Finally, we show that participants returned to their business-as-usual pattern of clearing one to three hectares per year at the end of the program. The environmental gain generated by the program, however, was not offset by any catch-up behavior, as the two hectares saved on each farm before 2017 were not cleared in 2018. By calculating the monetary gain of the delayed carbon dioxide emissions, we find that the program's benefits were ultimately greater than its costs. |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04037153&r=env |
| By: | M. Khabbazan, Mohammad |
| Abstract: | The EU has established the world's first and biggest emission-trading systems (ETS) covering aviation, emission-intensive sectors, and electricity (EITE). This paper employs a multi-regional multi-sectoral CGE model with two simultaneous international emission permit markets. After examining the abatement costs for the EU regions, various policy scenarios are implemented to study the welfare effects of forming an ETS covering NEIT sectors and its linking with the EITE sectors under two different baselines and four emission reduction targets. The results provide several important insights: i) Marginal abatement costs in Germany and the Eastern European Union region (EEU) are significantly lower than in the rest of the EU regions. ii) The carbon price in the emission permit market covering NEIT is significantly higher than the carbon price in the emission permit market covering EITE. iii) Germany and EEU appear as notable suppliers of emission permits in both markets. iv) There is a significant aggregate welfare gain under the scenario in which the ETS covering NEIT co-exists parallel with the ETS covering EITE. v) The aggregate welfare in the EU under the full integration of EITE and NEIT may fall below its value under the scenario with two parallel emission permit markets. |
| Keywords: | Environmental Economics and Policy, International Relations/Trade |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333489&r=env |
| By: | Tyagi, Akanksha; Warrior, Dhruv; Ganesan, Karthik; Jain, Rishabh; Chandhok, Vibhuti; Dasgupta, Amrita; Dsouza, Swati; Kim, Tae-Yoon; Ramji, Aditya; Krishnan, Deepak; Gupta, Geetika; Tagotra, Niharika; Kumar, Parveen; Mandal, Tirthankar |
| Abstract: | The global move towards achieving net zero emissions will increase demand for low-carbon and clean technologies such as wind turbines, solar photovoltaics, electric vehicles and energy storage. However, the production of these technologies depends heavily on a few geographically concentrated minerals with limited availability. This report highlights the vulnerabilities in the supply chain of seven minerals: lithium, cobalt, nickel, copper, manganese, graphite and rare earths. It examines mineral criticality assessment frameworks and the global concentration of reserves and mineral processing facilities. The report also explores technologies that could reduce global dependence on these critical minerals. Further, it recommends specific actions to improve supply and reduce demand, tracking the critical mineral value chain and co-development of technologies to explore, mine and process minerals. It also talks about the need to develop mineral stockpiles. The report also emphasises circularity and scaling up alternative technologies to reduce mineral demand. The report has been commissioned by the Ministry of Mines, Government of India to inform the G20 Energy Transition Working Group (ETWG) negotiations. Key Findings -Most critical minerals are geographically concentrated in their resources, reserves and production -Just 15 countries possess between 55 to 90 per cent of global reserves of critical minerals for low-carbon technologies. The same 15 countries also produced 70 to 95 per cent of these minerals in 2022. -Mine production is already more than 2 per cent of global reserves for manganese, copper, nickel and cobalt. -Mine production of lithium and rare earths has more than doubled between 2016 and 2022. -The analysis shows that the focus on clean technologies (solar, wind, batteries for electric vehicles and grid storage, and grid infrastructure) will account for majority of the lithium demand (80–91 per cent) by 2050. Nickel demand from clean technologies is estimated to be between 34-55 per cent of the total demand by 2050, while copper demand is estimated to range between 29 and 43 per cent by 2050. Cobalt demand from the clean energy sector is expected to cross 55 per cent of the total demand in 2050. -Co-developing the mineral exploration, mining, and processing technologies will ensure the production of minerals scales globally. -The demand for new minerals can reduce significantly by scaling up the circular economy |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2023–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt8m46128h&r=env |
| By: | Giulia Livieri; Davide Radi; Elia Smaniotto |
| Abstract: | Transition risk can be defined as the business-risk related to the enactment of green policies, aimed at driving the society towards a sustainable and low-carbon economy. In particular, the value of certain firms' assets can be lower because they need to transition to a less carbon-intensive business model. In this paper we derive formulas for the pricing of defaultable coupon bonds and Credit Default Swaps to empirically demonstrate that a jump-diffusion credit risk model in which the downward jumps in the firm value are due to tighter green laws can capture, at least partially, the transition risk. The empirical investigation consists in the model calibration on the CDS term-structure, performing a quantile regression to assess the relationship between implied prices and a proxy of the transition risk. Additionally, we show that a model without jumps lacks this property, confirming the jump-like nature of the transition risk. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.12483&r=env |
| By: | Alam, Md. Mahmudul (Universiti Utara Malaysia); Tahir, Yasmin Mohamad; Saif-Alyousfi, Abdulazeez Y. H.; Waehama, Wanamina; Muda, Ruhaini; Nordin, Sabariah |
| Abstract: | Environmental, Social and Governance (ESG) ratings are widely recognised methods to assess the sustainability practices of corporations. However, the scores of these ratings are not satisfactory in emerging market economies. This study examines the financial factors that influence ESG ratings regarding public listed companies on the FTSE4 Good Bursa Malaysia Index (F4GBM Index). This paper uses static and dynamic Generalized Method of Moments (GMM) techniques to analyse the data of 31 public listed companies on the F4GBM Index and reported full ESG ratings data for the period 2007-2016. To utilise the maximum number of observations by avoiding the missing data and outlier due to COVID-19, this study applied the sample data up to 2016. Using the two-step system dynamic GMM estimator, such results indicate that highly profitable Malaysian companies enjoy a higher score for ESG overall ratings as well as all three individual ratings. Poorer credit management diminishes the environmental ratings, yet increases overall scores such as the social and governance scores. Companies with higher leverage have a weaker social, governance and overall score, but a higher environmental rating. Finally, companies eliciting a higher sustainable growth rate have weak governance and overall scores. This study provides empirical evidence that will be useful to capital market investors, management teams of these companies and policymakers in their efforts to promote responsible investment in Malaysian public listed companies in line with UN-PRI policy. |
| Date: | 2022–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:9yd6k&r=env |
| By: | Tanguy Bernard (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Sylvie Lambert (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); Karen Macours (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); Margaux Vinez |
| Abstract: | Since the 1960s, the increased availability of modern seed varieties in developing countries has had large positive effects on households' well-being. However, the effect of related land use changes on deforestation and biodiversity is ambiguous. This study examines this question through a randomized control trial in a remote area in the Congo Basin rainforest with weak input and output markets. Using plot-level data on land conversion combined with remote sensing data, we find that promotion of modern seed varieties did not lead to an increase in overall deforestation by small farmers. However, farmers cleared more primary forest and less secondary forest. We attribute this to the increased demand for nitrogen required by the use of some modern seed varieties, and to the lack of alternative sources of soil nutrients, which induced farmers to shift towards cultivation of land cleared in primary forest. Unless combined with interventions to maintain soil fertility, policies to promote modern seed varieties may come at the cost of important losses in biodiversity. |
| Keywords: | Agroecology, Agriculture, Environmental economics, Environmental impact |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:pseptp:hal-04049025&r=env |
| By: | Yossra Boudawara (Université de Sfax - University of Sfax); Kaouther Toumi (LGTO - Laboratoire de Gestion et des Transitions Organisationnelles - UT3 - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées); Amira Wannes (Université de Sfax - University of Sfax); Khaled Hussainey (University of Portsmouth) |
| Abstract: | Purpose: The paper examines the impact of Shari'ah governance quality on environmental, social, and governance (ESG) performance in Islamic banks. Design/methodology: The study's sample consists of 66 Islamic banks from 14 countries over 2015-2019. The research uses the Heckman model, which is a two-stage estimation method to obtain unbiased estimates, as ESG scores are only observable for 17 Islamic banks in the Eikon Refinitiv database at the time of the analysis. Findings: The analysis shows that Shari'ah governance has a beneficial role to achieve ESG performance. It also shows that enhanced profiles of Shari'ah supervisory boards' attributes are more efficient than the operational procedures to promote ESG performance. In addition, the analysis shows that enhanced Shari'ah supervisory boards' attributes strengthen the bank's corporate governance framework while sound-designed procedures increase the bank's social activities by emphasizing their roles to ensure Shari'ah compliance. Finally, the analysis sheds light on the failure of Shari'ah governance to promote environmental performance. Originality: The research complements the governance-banks' ESG performance literature by examining the role of Shari'ah governance. The research also extends the literature on Islamic banks' sustainability by pointing to the Shari'ah governance failure to enhance environmental performance and thus, achieve Maqasid al-Shariah regarding the environment. Practical implications: The research provides policy insights to Islamic banks' stakeholders to promote social and governance performance in the Islamic finance industry through improving Shari'ah governance practices. However, raising environmental awareness is imminent among all actors implicated in the Shari'ah governance processes to help overcome the anthropogenic risks. |
| Keywords: | ESG Impact, Islamic banking, Sustainability, Governance |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03925935&r=env |
| By: | Przemyslaw Kowalski; Clarisse Legendre |
| Abstract: | The challenge of achieving net zero CO2 emissions will require a significant scaling up of production and international trade of several raw materials which are critical for transforming the global economy from one dominated by fossil fuels to one led by renewable energy technologies. This report provides a first joint assessment of data on production, international trade, and export restrictions on such critical raw materials from the OECD’s Inventory of Export Restrictions on Industrial Raw Materials covering the period 2009-2020. It presents data on production and trade concentrations, sheds early light on the impact of export restrictions, and discusses possible directions of further work in this area. The evidence presented suggests that export restrictions may be playing a non-trivial role in international markets for critical raw materials, affecting availability and prices of these materials. OECD countries have been increasingly exposed to the use of export restrictions for critical raw materials. |
| Keywords: | Export taxes, Global value chains, GVCs, International supply chains, Licensing requirements, OECD’s Inventory of Export Restrictions on Industrial Raw Materials |
| JEL: | F13 F14 F18 |
| Date: | 2023–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:269-en&r=env |
| By: | Philippe Le Houérou (AFD - Agence française de développement, FERDI - Fondation pour les Etudes et Recherches sur le Développement International, IFC - Société financière internationale (IFC)) |
| Abstract: | Over the last 30 years, at least 94 green-climate funds1 have been created to finance climaterelated projects and programs in Emerging Markets and Developing Countries (EMDC). Each individual fund may have been justified at the time of its creation. As a system, however, they do not add up and their contribution to the total flows of green finance remains marginal. In this paper, we counted 81 active funds as of end 2022. Moreover, it is quite difficult, if not impossible, to assess even the most basic aspects of the financial management and impact of these funds as a "system" and a channel of climate finance. Given the urgency to scale up both mitigation and adaptation policies and projects in EMDC, and before creating new funds that would add to the current astonishing fragmentation, it is urgent to drastically reduce the huge number of existing climate funds and to reform the remaining ones with a view to increasing their transparency, efficiency, synergies, and impact. That would be a useful first step into rationalizing and redefining the current messy aid architecture, even more so since most of these funds are publicly financed. |
| Abstract: | Au cours des 30 dernières années, pas moins de 94 fonds verts pour le climat* ont été lancés afin de financer des projets et des programmes de lutte contre le changement climatique sur les marchés émergents et dans les économies en développement. Chacun de ces fonds peut avoir trouvé une justification au moment de sa création. Toutefois, considérés comme un tout, ils ne s'additionnent pas et leur contribution aux flux totaux de la finance verte reste marginale. Dans cet article, nous avons recensé 81 fonds actifs à fin 2022. Il est en outre difficile, voire impossible, d'évaluer ne serait-ce que les aspects les plus élémentaires de la gestion financière et de l'impact de ces fonds en tant que « système » et canal de financement de la lutte contre le changement climatique. Étant donné le caractère impérieux à renforcer les politiques et projets d'adaptation au changement climatique et d'atténuation de ses effets sur les marchés émergents et dans les économies en développement, et plutôt que de créer de nouveaux fonds qui viendraient s'ajouter à l'étonnante atomisation actuelle, il est urgent de réduire massivement le nombre considérable de fonds climatiques existants et de réformer les fonds qui subsisteront, de manière à renforcer leur transparence, leur efficacité, leurs effets de synergie et leur impact. Cela constituerait une première étape judicieuse dans la rationalisation et la redéfinition de l'architecture chaotique de l'aide au développement actuelle, d'autant plus que la plupart de ces fonds relèvent du financement public. |
| Date: | 2023–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04027247&r=env |
| By: | Freeman, Jacob; Mauldin, Raymond P.; Hard, Robert J.; Solis, Kristina; Whisenhunt, Mary; Anderies, John M. |
| Abstract: | Despite years of debate, the factors that control the long-term carrying capacity of human populations are not well understood. In this paper, we assess the effect of changes in resource extraction and climate driven changes in ecosystem productivity on the carrying capacity of hunter-gatherer populations in a terrestrial and coastal ecosystem. To make this assessment, we build time-series estimates of changes in resource extraction via human stable isotopes and ecosystem productivity via paleoclimate models and geomorphic records of flood events. These estimates of resource extraction and ecosystem productivity allow us to assess a complex model of population expansion that proposes linked changes between population density, resource extraction, and intensification. We find that changes in resource extraction had a larger effect on carrying capacity in both the terrestrial and coastal ecosystems than climate drivers of ecosystem productivity. Our results are consistent with the idea that both Malthusian limits on resources and Boserupian pressures to reorganize economic systems operate in hunter-gatherer populations over the long-term. Our data and analysis contribute to evaluating complex models of population growth and subsistence change across archaeological cases. |
| Date: | 2023–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:e7rh8&r=env |
| By: | Sass, Karina Simone (Departamento de Economia, Universidade de São Paulo); Haddad, Eduardo Amaral (Departamento de Economia, Universidade de São Paulo); Mendiondo, Eduardo Mario (Sao Carlos School of Engineering, University of Sao Paulo) |
| Abstract: | Droughts can lead to severe socioeconomic impacts on cities by affecting industrial production, food and energy price, and income. Given that the frequency and intensity of this climatic event are increasing because of climate change, assessing the vulnerability of economic activities to drought is essential to develop adaptation strategies. This study explores the economic effects of droughts on the São Paulo Metropolitan Area (SPMA), a region with a high concentration of people and economic activities and frequently hit by droughts. Our method comprises an integrated system of analysis that puts together climatic and economic databases. The integrated modeling system is divided into three steps: i) calculate a variable to represent drought conditions; ii) estimate the direct impact of droughts on sectoral activities through an econometric model; and iii) estimate the total impact on the economy through a Spatial Computable General Equilibrium (SCGE) model calibrated with municipal data. The econometric model results showed that energy and water-intensive industries are more sensitive to droughts in the SPMA. The results from the simulations in the SCGE model showed that the impact on these sectors could spread to the entire economy, indirectly affecting activities such as land transport, construction, and personal services and decreasing the total production and disposable income of metropolitan municipalities. |
| Keywords: | local droughts impact; industrial activity; regional analysis; integrated modeling |
| JEL: | C68 R10 |
| Date: | 2023–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:nereus:2023_004&r=env |
| By: | Wei, Taoyuan; Glomsrød, Solveig; Asbjørn, Aaheim; Ma, Lin |
| Abstract: | The Model for Global Responses to Anthropogenic Changes in the Environment (GRACE) was developed for economic analysis of climate change issues including mitigation, impacts, and adaptation. Since 2005, GRACE has been updated in line with the latest Global Trade Analysis Project (GTAP) database. So far, Norway has not been a specific region in GRACE. To include Norway in a new version of GRACE, we need a GTAP database that ensures consistency with the official national accounting data of Norway. This study describes how we adjust the GTAP v. 10 data to achieve this consistency. For this purpose, we apply the official input-output (IO) table of Norway for the year 2014 and the annually updated Table 11123 of the National accounts to adjust macroeconomic data of the original GTAP database for components of GDP like production, income, and expenditure. The balance between supply and demand of products is finally taken care of by introducing an additional parameter in the adjusted GTAP data as “changes in inventory” for all regions. The official energy accounts and CO2 emissions data of Norway are used to replace the corresponding data of Norway in the GTAP database. |
| Keywords: | International Relations/Trade, Agricultural and Food Policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333436&r=env |
| By: | Thube, Sneha; Peterson, Sonja |
| Abstract: | Computable general equilibrium (CGE) models are widely used to conduct ex-ante policy impact evaluations. However, in addition to policy design and policy stringency, structural features of the CGE models also affect the resulting estimates of policy costs. We use harmonized policy analysis results from 15 CGE models and meta-regression analysis to identify the structural variables that are significant determinants of the global and regional marginal abatement costs (MAC) for fulfilling the initial Nationally Determined Contributions (NDCs). Our results show that models with dynamic characteristics, higher regional disaggregation and with a representation of different electricity technologies estimate higher MACs. On the contrary, modelling endogenous technological change lowers the MAC estimates. Additionally, as to policy design, a statistically significant reduction in global MAC is observed with a fully linked global carbon market (45% reduction) and a climate-club of China, Japan and South Korea (4% reduction). This meta-analysis provides robust quantitative insights can help to provide a more useful and understood tool to inform policy relative to the results from a single model. |
| Keywords: | Environmental Economics and Policy, International Relations/Trade |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333459&r=env |
| By: | Simon Baumgartner (Humboldt University Berlin); Alex Stomper (Humboldt University Berlin); Thomas Schober (NZ Work Research Institute, Auckland University of Technology); Rudolf Winter-Ebmer (Johannes Kepler University Linz) |
| Abstract: | How does small-firm employment respond to exogenous labour productivity risk? We find that this depends on the capitalization of firms’ local banks. The evidence comes from firms employing workers whose productivity depends on the weather. Weather- induced labour productivity risk reduces this employment, and this effect is stronger in regions where the regional banks have less equity capital. Bank capitalization also proxies for the extent to which the regional banks’ borrowers can obtain liquidity when the regions are hit by weather shocks. We argue that, as liquidity providers, well- capitalized banks support economic adaptation to climate change. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:aut:wpaper:2023-02&r=env |
| By: | Clément Carn (IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers, CEREGE - CEntre de REcherche en GEstion - EA 1722 - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers - Université de Poitiers - ULR - La Rochelle Université) |
| Abstract: | This paper focuses on socio-environmental accounting (SEA) methods in order to help inform the choice of both practitioners and standard setters. Through a comparative analysis of the main SES approaches, this paper highlights their different representations of the world and their implications for sustainability. We then show that the choices of accounting techniques reflect underlying representations of the world and shape the nature of accountability. |
| Abstract: | Cet article s'intéresse aux méthodes de comptabilités socio-environnementales (CSE) afin de contribuer à éclairer le choix des praticiens comme du normalisateur. Au travers d'une analyse comparée des principales approches de CSE, ce papier met en exergue leurs différentes représentations du monde et ce que cela implique en matière de soutenabilité. Nous montrons alors que les choix de techniques comptables sont le reflet de représentations sous-jacentes du monde et configurent la nature de la responsabilité. |
| Keywords: | socio-environmental accounting, responsibility, sustainability, comptabilité socio-environnementale, responsabilité, soutenabilité |
| Date: | 2023–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03326310&r=env |
| By: | Wilts, Rienne; Britz, Wolfgang |
| Abstract: | A wide range of indicators beyond GDP growth is necessary to measure progress towards more sustainability as reflected by the indicator frameworks developed by the United Nations (2021). Still, such progress builds on its core on economic growth and related structural change. Given its multi-sector and global perspective, dynamic CGE analysis depicts these key processes and thus offers a starting point to quantify various SDG indicators. Multiple scholars have therefore developed SDG indicator frameworks which fit their CGE models, such as Philippidis et al. (2020) and Lui et al. (2021). Existing auxiliary data available from GTAP, such as CO2 (Peters, 2016), non-CO2 (Chepeliev, 2020a) and air emissions (Chepeliev, 2020b) already help to access important aspects of environmental sustainability and to relate emissions to human health. Further indicators require partly sector and product detail beyond the GTAP Data Base which motivates the development of more detail data base in this study. Distributional aspects of economic growth, also beyond income distribution, remain a challenge in CGE analysis, and are addressed in this study by micro-simulations. We propose to quantify 75 indicators relating to 13 of the 17 SDGs in order to assess SDG developments up to 2050 for different Socio-Economic Pathways to extend existing work in this field. |
| Keywords: | International Relations/Trade, Research Methods/ Statistical Methods |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333473&r=env |
| By: | Largier, John L; Munger, Sophie; Shilling, Fraser; Roettger, Robin |
| Abstract: | Like most coastal states in the U.S., California’s shoreline communities and ecosystems have been exposed to flooding related to sea level rise and storms, which jeopardize their persistence and well-being. Shoreline transportation is especially vulnerable in certain places to flooding and failure, and because it is part of a continuously used network with little redundancy, it transfers its vulnerability to regional transportation networks. Forward-projected inundation/flooding risk is typically modeled at coarse spatial and temporal scales, which are useful at regional and decadal scales, but less useful for coastal managers and flood responders. This project improved assessment of both overall probability and short-term forecasts of water level for specific locations in San Francisco Bay that are vulnerable to flooding associated with sea level rise. The authors have developed probability assessment and forecasts through developing data-based, site-specific, model-independent approaches, which can be compared with and help to improve regional models of coastal flooding (e.g., CoSMoS). Water level data were collected across fine-scale arrays at fluvial-bay junctures in Sonoma and Marin Counties. The primary analysis is based on deconstructing water level records into multiple quasi-independent signals, which can be better predicted and recombined to produce probability of extreme events and to produce short-term forecasts during a flooding event based on predicted weather, wind, rain, and tide. In addition, real-time water level data are now available to first responders at critical locations in Novato Creek and Petaluma River when there is potential for flooding, as well as during a flood event. This is a pilot project that could be replicated at many other vulnerable locations around San Francisco Bay and elsewhere. View the NCST Project Webpage |
| Keywords: | Engineering, Physical Sciences and Mathematics, flood forecast, sea-level rise, storm surge, king tides, extreme event |
| Date: | 2023–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt4ts3d98k&r=env |
| By: | Claire Duchene; Ilan Tojerow; Benoît Bayenet |
| Date: | 2023–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/357234&r=env |
| By: | Alessandro, Gatto; Kuiper, Marijke; van Meijl, Hans |
| Abstract: | Transitioning to a more sustainable food system requires identifying synergies between nutritional targets (SDG2) and FLW generation (SDG12.3), assessing FLW along global FSC when diets shift to more sustainable consumption. Bridging economic and technical modelling of FLW, we trace FLW in physical quantities along global FSC in a global economic model. We compile a new global FLW database and investigate how transitioning towards the EAT-Lancet diet influences FLW magnitude, composition and location along FSC in 2030. The EAT-Lancet diet reduces FLW generation along FSC, enlarging shares of non-processed plant-based products, highly suitable for reuse. Nonetheless, as the diet increases food trade, imports from high-income regions generate large amounts of losses in low- and mid-income regions, requiring complementary policies to achieve SDG12.3 on a global scale. We address current FLW data and methodological inconsistencies, providing a starting point for bridging economic and technical models to assist policies and multidisciplinary investigations on FLW. |
| Keywords: | International Relations/Trade, Food Security and Poverty |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333418&r=env |
| By: | Jakub Sokolowski; Jan Frankowski; Joanna Mazurkiewicz |
| Abstract: | The geopolitical situation and the EU's ambitious climate policy are driving energy prices up. And when these rise, they inflate the risk of poverty and inequality – especially among poorer households. These risks should be mitigated and energy-poor households compensated for the increase in energy prices. The Anti-inflation Shield proposed by the Polish government in November 2021 will not do this; it is merely a temporary cut in energy prices that will potentially benefit high-income households the most. Energy vouchers are an alternative that would effectively work to reduce poverty, inequality and contribute to achieving climate policy goals. These vouchers should: (1) go to energy-poor households, (2) cover their average energy expenditure, (3) encourage households to enroll in energy transition support programmes. And while this solution is expensive, its benefits far outweigh its costs. Poor households must be compensated for rising energy costs to foster greater public acceptance of a cleaner and greener energy transformation. |
| Keywords: | energy and climate, |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:ppaper:pp052021&r=env |
| By: | Zijin Xie (Faculity of Economics, Keio University) |
| Abstract: | This study investigated how bans/restrictions on trophy hunting affect wildlife conservation in private land conservation areas (PLCAs). We developed a bioeconomic model to examine wildlife and land utilization in a fixed-size PLCA with a land manager. We calibrated the model for the lion-hunting industry in PLCAs in South Africa. The model simulates the impact of trophy-hunting restrictions on the lion population under different management scenarios. We demonstrated that restrictions on trophy hunting would be effective if wildlife-based tourism is an alternative land use to trophy hunting. However, the restrictions on trophy hunting will negatively affect the wildlife (lion) population if alternative land use is not wildlife-based. Although wildlife-based tourism is considered a positive alternative to trophy hunting, it is more vulnerable to external shocks than trophy hunting. Our results suggest that international bans/restrictions on trophy hunting should be cautiously imposed, particularly in the context of the global pandemic, which has had a devastating effect on wildlife-based tourism. |
| Keywords: | Bioeconomic modeling, Lion hunting; PLCA, Tourism, Trophy hunting, Wildlife conservation |
| JEL: | Q57 Q2 Q26 |
| Date: | 2023–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2023-007&r=env |
| By: | Patrice Ballester (Euridis - Euridis Business School, M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche, Swinburne University of Technology [Melbourne], University of Arizona) |
| Abstract: | This communication focuses on the lessons that come to us regarding the preparation, development and support of the Dubai World Expo 2020 site and educational and social projects beyond the world. We approach an original analysis which takes into account the very statutes of the BIE as a non-governmental organization with a humanist and progressive scope which tends to make the world a better place through actions of sustainable development and societal innovation. To this, we make an analogy, a rapprochement through the principles of CSR, namely: the project of a world expo can be compared to that of a responsible company with renewed goals and missions. An exposition like a company with a "mission" of the 21st century, this is the postulate that gives us to think, to see, to understand and to anticipate for the next events. As such, we use as a methodology, the matrices of materiality, complementarity, but also the PESTEL matrix which allows us to foresee a major shift with Dubai 2020 compared to Milan 2015 and Shanghai 2010. We will report our interviews in particular from the COFREX France and members of the BIE who will complete our remarks. Finally, a literature review, a state of the art, on expositions and their adaptations to the principles of sustainable development for more than 20 years will complete our research. Finally, we will establish two summary tables by way of conclusion, one on the connections between the very nature of an exposition universelle – world expo and the 17 United Nations Sustainable Development challenges (and 169 targets), but also the very nature of the BIE and also the 17 United Nations Sustainable Development Challenges (and the 169 targets). We approach a reflection based on the new challenges of Agenda 21, but with a view of the management of an exposition and the practice of marketing, communication and urban planning (management) in the short, medium and long term. We have come to three main conclusions: (1) between sustainable and ephemeral, the expositions and the role of the BIE have in the long term always apprehended, sometimes without knowing it, the notion of more sustainable development through science, culture and urban planning, (2) the SDGs are increasingly superimposed on the discourse of the BIE becoming a kind of breviary for all the countries and pavilions of the era of the Anthropocene, (3) finally, we see a risk, a kind of standardization on the long-term pavilions and an imposition of certain practices such as so-called sustainable building labels which sometimes risks making the architectural gesture less spectacular and distributive (towards a standardization of buildings?). |
| Abstract: | Cette communication se concentre sur les leçons qui nous parviennent concernant la préparation, le développement et le soutien – accompagnement du site de l'exposition universelle de Dubaï 2020 et des projets éducatifs et sociaux au-delà du monde portés par les Émirats. Nous abordons une analyse originale qui tient compte des statuts mêmes du BIE en tant qu'organisation non gouvernementale à vocation humaniste et progressiste qui tend à rendre le monde meilleur par des actions de développement durable et d'innovation sociétale. À cela, nous faisons une analogie, un rapprochement à travers les principes de la RSE, à savoir : le projet d'une exposition universelle peut-il être assimilé à celui d'une entreprise responsable aux objectifs et missions renouvelés. Une exposition comme une entreprise à « mission » par rapport aux enjeux du 21ème siècle, c'est le postulat qui nous donne à penser, à voir, à comprendre et à anticiper les prochains événements mondiaux ou foires mondiales du BIE. À ce titre, nous utilisons comme méthodologie, les matrices de matérialité, de complémentarité, mais aussi la matrice PESTEL qui nous permet d'entrevoir un décalage majeur avec Dubaï 2020 par rapport à Milan 2015 et Shanghai 2010. Nous rapporterons nos entretiens notamment du COFREX France et des membres du BIE qui compléteront nos propos. Enfin, une revue de la littérature, un état de l'art, sur les expositions et leurs adaptations aux principes du développement durable depuis plus de 20 ans viendra compléter notre recherche. Enfin, nous établirons deux tableaux récapitulatifs en guise de conclusion, l'un sur les liens entre la nature même d'une exposition universelle et les 17 enjeux de Développement Durable des Nations Unies (et 169 cibles), l'autre sur la nature même du BIE par rapport à nouveau aux 17 défis du développement durable des Nations Unies (et les 169 cibles). Nous abordons une réflexion reposant sur les nouveaux enjeux de l'Agenda 21, mais avec une vision de la gestion d'une exposition et de la pratique du marketing, de la communication et de l'urbanisme (planification) à court, moyen et long terme. Nous arrivons à trois conclusions principales : (1) entre durable et éphémère, les expositions et le rôle du BIE ont toujours appréhendé sur le long terme, parfois sans le savoir, la notion d'un développement plus durable par la science, la culture et l'urbanisme, (2) les ODD se superposent de plus en plus au discours du BIE devenant une sorte de bréviaire pour tous les pays et pavillons de l'ère de l'Anthropocène, (3) enfin, on y voit un risque, une sorte d'uniformisation sur le long terme des pavillons à terme et une imposition de certaines pratiques comme les labels de construction durables qui risquent parfois de rendre le geste architectural moins spectaculaire et moins distributif (vers une uniformisation des bâtiments ?). |
| Keywords: | world expo, world's fair, BIE, sustainable development, SDG's, Corporate Social Responsibility, CSR, PESTEL, Mega-Events, marketing, communication, management, exposition universelle, foire mondiale, développement durable, ODD, Responsabilité Sociétale des Entreprises, RSE, méga-événements |
| Date: | 2023–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03983410&r=env |
| By: | Olga Pindyuk (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Although China has become a major trading partner of the EU, the EU-China relationship has deteriorated over the last decade. This has been demonstrated, for example, by disputes over trade issues, unequal treatment of EU investors by Beijing, frictions over the transfer of intellectual property, and human rights violations. The EU’s critical dependency on supplies from China, which became evident during the COVID-19 pandemic, further complicates the relationship. The issue of the green transition has a central importance in the context of intensified geo-economic competition and possible decoupling from China, as here the EU has critical dependencies on the country, which is responsible for about 60% of global extraction of rare earth elements, about 60-65% of global processing of lithium and cobalt, and nearly 90% of global processing of rare earth elements. So far, EU policy with respect to China has lacked co-ordination and solidarity, with the splits running across countries, institutions and economic sectors. This makes it challenging for the EU to develop a unified strategy toward Beijing. This paper examines the issues and sets out our suggestions for the policies the EU and Austria can undertake to decrease the bloc’s dependency on China in supplies of critical inputs for its green transition and to minimise the vulnerabilities of their economies. |
| Keywords: | China, European Union, Geopolitics, Geo-economic policy, Renewable energy, Energy security, Energy transition, Critical materials, Rare earth elements |
| JEL: | F02 F50 F52 F64 Q28 Q48 Q58 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:wii:pnotes:pn:67&r=env |
| By: | C.Y. Cyrus Chu (Institute of Economics, Academia Sinica, Taipei, Taiwan); Meng-Yu Liang (Institute of Economics, Academia Sinica, Taipei, Taiwan) |
| Abstract: | In capturing the famous collapsing case of Easter Island, we set up a model where the society’s ruler has to allocate resources between consumption goods and statue construction. Since the incumbent rulers may be addicted to the glory or pleasure of statue erection, their utility function may be alienated from that of the citizens. We analyze how sustainability may differ under democracy and autocracy regimes. We prove that when the discount factor is small (large), the democracy regime is more sustainable (both regimes are equally sustainable). When the discount factor is somewhere in between, citizens’attitude toward state accountability plays a critical role. When citizens are “weak”, the threat of replacing a reckless ruler under democracy is not credible. We identify a narrow parameter range in which an autocrat has a strong self-discipline to prevent an environmental collapse, whereas the democracy regime performs worse. |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:sin:wpaper:23-a001&r=env |
| By: | Bruno Jetin (Universiti Brunei Darussalam, CEPN - Centre d'Economie de l'Université Paris Nord - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité - Université Sorbonne Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord) |
| Abstract: | Energy transition is now considered a necessity for moving towards sustainable development and to improve living standards. This is especially the case in Southeast Asia where energy demand is expected to increase by 50% and electricity demand to double by 2025. The region has not enough fossil fuels to cope with this growing demand and will have to increase its imports which may endanger its energy security. |
| Keywords: | Energy transition, China, Southeast Asia, Renewables, Electric car, batteries |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-04036822&r=env |
| By: | Cuong Viet Nguyen (VNU - Vietnam National University [Hanoï]); Manh Hung Nguyen (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Toan Nguyen (ANU - Australian National University) |
| Abstract: | We estimate the impact of temperature extremes on mortality in Vietnam, using daily data on temperatures and monthly data on mortality during the 2000-2018 period. We find that both cold and heat waves cause higher mortality, particularly among older people and those living in the hot regions in Southern Vietnam. This effect on mortality tends to be smaller in provinces with higher rates of airconditioning and emigration, and provinces with higher public spending on health. Finally, we estimate economic cost of cold and heat waves using a framework of willingness to pay to avoid deaths, then project the cost to the year 2100 under different Representative Concentration Pathway scenarios. |
| Keywords: | Health, Mortality, Vietnam, Weather extremes |
| Date: | 2023–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04044384&r=env |
| By: | De Bruin, Kelly; Yakut, Aykut Mert |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp740&r=env |
| By: | Lucas Vivier (ENPC - École des Ponts ParisTech, 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); Louis-Gaëtan Giraudet (ENPC - École des Ponts ParisTech, 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) |
| Abstract: | Retrofitting obligations are gaining traction among policy makers to overcome the sluggishness of energy efficiency improvements in residential buildings and the low effectiveness of most incentive programmes in changing this. Such an obligation was for instance the flagship proposal submitted by the Citizens' Convention for Climate to the French government. What are the costs and benefits of this little-studied measure? We examine this question using Res-IRF, a building stock model of French dwellings with endogenous retrofitting dynamics. We find that a retrofitting obligation is essential in allowing a net-zero energy target to be met in the residential sector. Crucially, the obligation makes up for the failure of most other programmes (subsidies, white certificate obligation, zero-interest loan, energy taxes) to trigger retrofits in private rental housing. As a result, the obligation is the most effective measure to eliminate the least efficient dwellings (EPC labels G and F) and its impact on energy savings and fuel poverty alleviation is twice that of all other existing measures combined. Against these benefits, we find the obligation to increase annual investment needs by 4 to 6 billion euros. |
| Keywords: | energy efficiency, Res-IRF Model, retrofitting obligation |
| Date: | 2022–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04012427&r=env |
| By: | CARO Dario (European Commission - JRC); ALBIZZATI Paola Federica; CRISTOBAL GARCIA Jorge (European Commission - JRC); SAPUTRA LASE Irdanto; GARCIA-GUTIERREZ Pelayo (European Commission - JRC); JUCHTMANS Roeland; GARBARINO Elena; BLENGINI Giovanni; MANFREDI Simone (European Commission - JRC); DE MEESTER Steven; TONINI Davide (European Commission - JRC) |
| Abstract: | Recycling is any recovery operation by which waste materials are reprocessed into products, materials or substances whether for the original or other purposes, excluding energy recovery and reprocessing into materials that are to be used as fuels or for backfilling operations. The development of innovative technologies, such as multi-output recycling technologies (e.g., chemical recycling), calls for increasing clarity on several aspects of the definition. For instance, the current rules for calculating the amount of recycled municipal waste state that in case of multi-output processes the quantity recycled shall be determined by a mass balance approach. However, mass balance rules are not provided. Lack of sufficiently clear guidelines also apply to compostable plastic waste and quality of recycling. This lack of clarity is an obstacle to the conception of robust policy measures addressing recycling and circular economy. To close the gaps, this study contains technical proposals for i) calculation rules to perform mass balance for reporting of recycling rate in multi-output processes and ii) clarifications of the recycling calculation rules for biodegradable waste. In addition, the study presents an estimation of the impacts of the changes proposed and a preliminary framework to address quality of recycling. |
| Keywords: | Recycling, Mass balance, Chemical Recycling, Recycling yield, Recycling rate, Quality of recycling, Plastic waste, Impacts |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc131531&r=env |
| By: | Patrick Guillaumont (FERDI - Fondation pour les Etudes et Recherches sur le Développement International) |
| Abstract: | The Summit's focus on financing vulnerable countries or the fight against vulnerability highlights the fact that the allocation of concessional financing between countries must be considered alongside the mobilization of new resources. This note identifies four principles: (i) the countries ultimately receiving this funding must be identified based on criteria rather than categories of countries: the allocation between countries matters as well as the eligibility for this funding; (ii) the vulnerability of countries, if properly defined, is a major criterion for assessing their needs, without being the only criterion for allocation, or even eligibility; (iii) the vulnerability to be taken into account must be multidimensional and not only linked to climate change; (iv) the allocation criteria must be adapted to the goals of the financial instruments, which is illustrated in particular by the case of "climate" financing. |
| Abstract: | Le fléchage du Sommet sur le financement des pays vulnérables ou de la lutte contre la vulnérabilité met en lumière le fait que l'allocation entre pays de financements concessionnels doit être examinée en même temps que la mobilisation de nouvelles ressources. La présente note dégage quatre principes : (i) les pays finalement destinataires de ces financements ne peuvent être identifiés seulement par l'appartenance à des catégories de pays : l'allocation à l'intérieur des catégories est aussi importante que l'éligibilité aux financements ; (ii) la vulnérabilité des pays, si elle est convenablement définie, est un critère majeur pour l'évaluation de leurs besoins, sans pouvoir être le seul critère d'allocation, ni même d'éligibilité ; (iii) la vulnérabilité à prendre contre en compte doit être multidimensionnelle et pas seulement liée au changement climatique ; (iv) les critères d'allocation doivent être adaptés aux objectifs des instruments financiers, ce qu'illustre en particulier le cas des financements « climat ». |
| Keywords: | Pays les moins avancés, Vulnérabilité |
| Date: | 2023–03–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04023291&r=env |
| By: | Jacques Minlend (Université de Rennes, CNRS, CREM-UMR6211, F-35000 Rennes, France) |
| Abstract: | This paper proposes text-as-data methods relying on unsupervised machine learning algorithms applied to European Union (EU) law acts and newspapers. These are used to construct two monthly indices over a reference period 1997-2021: (i) First, a news-based index which underlies a conjunctural uncertainty about the international context in which the global energy and environment policy evolves (EnvPU). (ii) Second, a laws-based index which reflects structural changes of the European energy and environment regulations (EnvP). The main findings suggest both indices display, in some extent, a common evolutionary pattern around salient events in the history of the EU energy and environment policy. Moreover, EnvPU index appears to be more volatile and is driven in the short-run by EnvP index. Given the support of such a policy to carbon phase-out, we further examine, in what extent, each index relates to price uncertainty dynamics in fossil energy markets (oil, gas, and coal). As a result, we uncover that, increase in news-based EnvPU index has a positive impact on price uncertainty of all fossil energy markets, the effect being stronger and more significant for gas and coal markets. In contrast, while an exogenous shock in laws-based EnvP index has a negative effect on price uncertainty in oil and gas markets, it tends to increase the coal price uncertainty. Overall, EnvP index depicts a stabilizing effect on fossil energy prices. |
| Keywords: | Energy and Environment Policy; News and media; Text-mining; Unsupervised machine learning; Commodity markets; Structural VAR. |
| JEL: | Q58 C55 C80 D80 Q02 C32 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2023-04&r=env |
| By: | Benjamin Ouvrard (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Raphaële Préget (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); Arnaud Reynaud (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Laetitia Tuffery (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | We use a discrete choice experiment with treatments to test if voluntary adoption of smart water meters by French farmers can be fostered by i) a collective conditional subsidy offered to farmers who adopt a smart meter only if the rate of adoption in their geographic area is sufficiently high, and ii) informational nudges. Using a sample of 1, 272 farmers, we find contrasted results regarding our nudges, but we show that a conditional subsidy is an effective tool to foster adoption of smart meters. Interestingly, the willingness to pay for the conditional subsidy is equal to the subsidy amount and independent of the collective adoption threshold. |
| Keywords: | Choice experiment, Nudges, French farmers, Smart water meters, incentives |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04043374&r=env |
| By: | O'Reilly, Rohan; Humphreys, Lee; Prendiville, Siobhan |
| Abstract: | The production structure of GTAP-E includes an energy and capital composite alongside other factors of production. Both the elasticity of substitution between capital and energy and the elasticities of substitution between different fuel sources are therefore highly important to the output of the model. However, they are by default set to the same value across all sectors and countries. This paper uses OECD panel data from 2005-2016 to estimate elasticities for capital-energy substitution and substitution between the fuel commodities included in the GTAP-E 7 database. Estimates are produced over 32 countries, and for capital-energy substitution over 16 sectors. These estimated parameters are then used in an FTA model, and the results are compared with both the default GTAP-E parameters and less specific estimated values from existing literature. This allows us to determine the magnitude of impact on model output from using statistically estimated parameters, and from using parameters disaggregated by country and sector. |
| Keywords: | Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333429&r=env |
| By: | Martin, Will; Ivanic, Maros; Mamun, Abdullah |
| Abstract: | In recent years, policymakers have become more insistent in seeking advice on policies targeting multiple objectives in addition to the traditional economists’ concerns for economic efficiency and equity. Dealing with multiple goals in a serious manner is quite challenging given that it generally requires roughly as many instruments as goals, each instrument typically affects multiple goals, and the effects of instruments on goals are typically non-linear. Economists have adapted to the need to incorporate multiple goals using simple devices such as radar diagrams to highlight the local impacts of individual instruments on all goals. While useful in understanding these differential impacts, these approaches do not take us far in terms of designing policy packages needed to best achieve multiple goals. This paper proposes using programming approaches based on quantitative models to design policy packages for multiple goals. Two illustrative applications are provided—one to the setting of carbon tax rates for agricultural commodities and one to the allocation of R&D resources across agricultural activities in Ethiopia. |
| Keywords: | Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333461&r=env |
| By: | , Ridwan |
| Abstract: | The research objective is to analyze: (1) to partially analyze the effect of resilience, workplace spirituality, and organizational climate on engagement at the College of Economics in Makassar and (2) to partially analyze the effect of resilience, workplace spirituality, and organizational climate on performance of lecturers at the College of Economics in Makassar (3) to analyze the effect of engagement on lecturer performance at the College of Economics in Makassar (4) to analyze the effect of resilience, workplace spirituality, and organizational climate on lecturer performance through engagement at the College of Science Economics in Makassar. The research location is at the College of Economics in Makassar. The population is 536 lecturers and the sample is 229 lecturers. The sampling method used disproportionate stratified random sampling and purposive sampling. The data collection method used a questionnaire. The method of analysis uses Structural Equation Model (SEM). The results of the study prove that: (1) Resilience, workplace spirituality, and organizational climate have a positive and significant effect on engagement at the College of Economics in Makassar, and (2) Resilience and organizational climate have a positive and significant impact on lecturer performance at the College of Economics. in Makassar (3) Workplace spirituality has a positive and insignificant effect on the performance of lecturers at the College of Economics in Makassar (4) Engagement has a positive and significant effect on the performance of lecturers at the College of Economics in Makassar (5) Workplace resilience and spirituality have an effective positive and insignificant on lecturer performance through engagement at the College of Economics in Makassar. (6) Organizational climate has a positive and significant effect on lecturer performance through engagement at the College of Economics in Makassar |
| Date: | 2022–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:nr635&r=env |
| By: | Wang, Zhan; Martha, Geraldo; Liu, Jing; De Lima, Cicero Zanetti; Hertel, Thomas |
| Abstract: | Transportation cost has played an increasingly important role in Brazil agriculture, as the agricultural production frontier expands to inland area with less developed transportation network. High transportation cost would result in less agricultural profitability, which further reduces input use and causes lower yield. To deal with this problem, Brazil has set ambitious plan on improving transportation infrastructure, but its impact on agricultural production and deforestation remains unknown. To research the implications of transportation cost for Brazil agriculture and environment, we developed an innovation method of estimating transportation cost on spatial level for Brazil, and research the impact of projected transportation cost reduction with a grid-resolving partial equilibrium model on Brazilian agriculture, on national, state level and spatial level. Results indicates that the reduction of transportation cost causes moderate increase in both crop production and cropland expansion. However, that impact shows strong variance on State level, causing concentration of input allocations and output production to states of Mato Grosso and Bahia. Finally, spatial pattern within each state are also identified, which would contribute to local-targeted agricultural and transportation policy making. |
| Keywords: | Land Economics/Use, Public Economics |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333501&r=env |
| By: | Franz Hamann; Juan Camilo Mendez-Vizcaino; Enrique G. Mendoza; Paulina Restrepo-Echavarria |
| Abstract: | Emerging economies that are large oil producers have sizable external debt, their country risk rises when oil prices fall, and several of them have defaulted at least once since 1979. Moreover, while oil and non-oil output reduce country risk on impact and in the long-run, oil reserves reduce it marginally on impact but increase it in the long-run. We propose a model of sovereign default and oil extraction consistent with these observations. The sovereign manages oil reserves strategically to make default less painful by altering the value of autarky, and hence its sustainable debt falls. All else equal, default is less likely in states in which reserves or oil prices are higher, or non-oil GDP is lower, but the equilibrium dynamics of reserves and country risk in response to oil-price shocks switch from negatively correlated on impact to positively correlated for several years. |
| JEL: | F34 F41 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31058&r=env |
| By: | Philippe Delacote (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Antoine Leblois (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); Giulia Vaglietti (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Les événements climatiques extrêmes, en particulier les sécheresses, ont des effets très importants sur les populations des pays du Sud, notamment au sein des secteurs agricoles et de l'élevage : baisse des rendements, mortalité accrue du bétail, pertes de services écosystémiques… |
| Keywords: | Sécherese, agriculture, Afrique |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04040467&r=env |
| By: | Ray, Srabashi; Hertel, Thomas |
| Abstract: | Labor is a critical, but often overlooked, input in agriculture. In this paper we develop a theoretical model to demonstrate how agricultural labor market functioning plays a significant role in determining the impact and distributional consequences of conservation policies. We next propose a novel approach to use the theoretical model to explain the impacts of a groundwater conservation policy from a spatially explicit quantitative model comprising 75, 000+ grids within the US. Building on existing literature of gridded agricultural production (Baldos et al. 2020) and local labor markets using Commuting Zones (Fowler, Rhubart, and Jensen 2016b) we develop the SIMPLE-G-CZ model of agricultural production and labor markets. We find that labor market rigidities dampen the effectiveness of conservation policies. Limited labor mobility also results in the conservation policy’s incidence being borne in greater proportion by farm workers, with these impacts varying widely across local labor markets. |
| Keywords: | International Relations/Trade, International Relations/Trade |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333401&r=env |
| By: | Thomas J. Chemmanur (Carroll School of Management); Dimitrios Gounopoulos (University of Bath); Panagiotis Koutroumpis (Queen Mary University of London); Yu Zhang (School of Economics, University College Dublin) |
| Abstract: | We analyse the relationship between the extent of a firm’s corporate social responsibility (CSR) and its long-term survival probability. We conjecture that a better CSR rating is associated with a lower probability of corporate failure and a longer survival period. Consistent with this, we document that four CSR dimensions (environment, community, employee relations, and product) out of six are positively related to firms’ survival probability. The positive association between CSR ratings and firm survival is stronger for firms operating in more competitive industries and those with weaker governance. We find that a firm’s engagement in CSR activities is particularly crucial for firm survival during pandemics and under adverse climate conditions. We establish causality in the relation between a firm’s CSR activities and its survival probability using instrumental variable (IV) and Heckman twostep analyses. Finally, we find that better financial performance, less stringent financial constraints, greater managerial discipline, and enhanced labor productivity are some of the channels through which firms engaging in more CSR activity achieve longer survival times. |
| Keywords: | Corporate Social Responsibility, Climate Change, Pandemic Uncertainty, Firm Survival, Corporate Governance |
| JEL: | G30 G41 M14 |
| Date: | 2022–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:935&r=env |
| By: | Guglielmo Maria Caporale; Nicola Spagnolo |
| Abstract: | This paper examines mean and volatility spillovers between four green municipal bonds issued by the US states of California, Colorado, Columbia and Ohio, and the role played by the recent Covid-19 pandemic and the COP policy announcements respectively. Specifically, four-variate VAR-GARCH-BEKK models are estimated which include suitably defined dummies corresponding to those events. Significant dynamic linkages (interdependence) between the four municipal bonds under investigation are found in some cases. Moreover, there is evidence of shifts in the second moment parameters coinciding with the Covid-19 pandemic (contagion), whilst the COP policy announcements do not appear to affect the transmission mechanism between municipal green bond returns and volatilities. On the whole, the evidence suggests weaker linkages, and thus a lower degree of financial integration (and greater portfolio diversification opportunities), during the Covid-19 period, though this is likely to be only a temporary phenomenon. |
| Keywords: | municipal bonds, financial integration, spillovers, multivariate GARCH-BEKK, volatility |
| JEL: | C32 G12 G32 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10323&r=env |
| By: | Niass, Dieynaba |
| Abstract: | This research aims to analyze the effect of natural resources on the supply portfolio of African exports. Based on COMTRADE data on export products from 2000-to 2015, we apply a methodological approach based on two standard measurements of trade diversification indicators: active lines counting and the standardized Herfindahl-Hirschman index. These indicators are then linked to the status of resources-rich countries (and other controls) in the fixed-effects panel data model. The results of this article suggest that the presence of oil resources (non-renewable resources) has a negative effect on diversification, essentially through the channel of the degradation of institutions. Similarly, agricultural products (renewable resources) negatively affect African exports diversification (count and index). This effect is captured through the exchange rate and degradation of institutions' channels. This shows the need for the African continent to develop its own agricultural sector which could be a good strategy for diversification, but also to strengthen the quality of its institutions for good management of natural resources. |
| Keywords: | International Relations/Trade, International Relations/Trade |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333416&r=env |
| By: | Sinem Kilic Celik (IMF); M. Ayhan Kose (Prospects Group, World Bank; Brookings Institution; CEPR; CAMA); Franziska Ohnsorge (Prospects Group, World Bank; CEPR; CAMA) |
| Abstract: | Potential output growth around the world slowed over the past two decades. This slowdown is expected to continue in the remainder of the 2020s: global potential growth is projected to average 2.2 percent per year in 2022-30, 0.4 percentage point below its 2011-21 average. Emerging market and developing economies (EMDEs) will face an even steeper slowdown, of about 1.0 percentage point to 4.0 percent per year on average during 2022-30. The slowdown will be widespread, affecting most EMDEs and countries accounting for 70 percent of global GDP. Global potential growth over the remainder of this decade could be even slower than projected in the baseline scenario—by another 0.2-0.9 percentage point a year—if investment growth, improvements in health and education outcomes, or developments in labor markets disappoint, or if adverse events materialize. A menu of policy options is available to help reverse the trend of weakening economic growth, including policies to enhance physical and human capital accumulation; to encourage labor force participation by women and older adults; to improve the efficiency of public spending; and to mitigate and adapt to climate change, including infrastructure investment to facilitate the green transition. |
| Keywords: | Production function; growth expectations; emerging markets; developing economies. |
| JEL: | E30 E32 E37 O20 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:koc:wpaper:2303&r=env |
| By: | Juan Armando Torres Munguía; Florina Cristina Badarau (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Luis Rodrigo Díaz Pavez; Inmaculada Martinez-Zarzoso; Konstantin M. Wacker |
| Abstract: | This paper presents a new dataset of infectious disease outbreaks collected from the Disease Outbreak News and the Coronavirus Dashboard produced by the World Health Organization. The dataset contains information on 70 infectious diseases and 2227 public health events that occurred over the period from January 1996 to March 2022 in 233 countries and territories around the world. We illustrate the potential use of this dataset to the research community by analysing the spatial distribution of disease outbreaks. We find evidence of spatial clusters of high incidences ("hot spots") in Africa, America, and Asia. This spatial analysis enables policymakers to identify the regions with the greatest likelihood of suffering from disease outbreaks and, taking into account their degree of preparedness and vulnerability, to develop policies that may help contain the spreading of future outbreaks. Further applications could focus on combining our data with other information sources to study, for instance, the link between environmental, globalization, and/or socioeconomic factors with disease outbreaks. |
| Date: | 2022–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04029973&r=env |
| By: | Ross Mckitrick (Department of Economics and Finance, University of Guelph, Guelph ON Canada) |
| Abstract: | Like many jurisdictions, Canada has set a target of 2035 to eliminate sales of internal combustion engine vehicles (ICEVs) in favour of electric vehicles (EVs), for the purpose of reducing greenhouse gases. Past literature has focused on the engineering and economic aspects of integrating EVs into the passenger transportation system. Herein I examine the implications for the ICEV market of a phased-in EV mandate. I show using partial equilibrium analysis that, during the interval when both types of cars are available, auto companies will overproduce EVs and earn scarcity rents on ICEVs that partially offset the revenue loss from the mandate. I then present a numerical general equilibrium model of the Canadian economy to assess the macroeconomic consequences of banning ICEVs. The results depend critically on the pace at which EVs achieve cost parity with ICEVs on a quality-adjusted basis. An EV mandate will have temporary but manageable economic consequences if technology improves so rapidly that the mandate is effectively unnecessary. But if the mandate outpaces achievement of cost parity the economic consequences will be quite severe and make it unlikely the policy could be maintained. For example it would likely cause the auto manufacturing sector to shut down. The analysis also provides insight into why automakers have been so willing up to now to develop EV product lines even though they have long lost money on them and expect to continue doing so. |
| Keywords: | Electric vehicles, climate policy, computable general equilibrium model. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:gue:guelph:2023-01&r=env |
| By: | International Monetary Fund |
| Abstract: | The COVID-19 pandemic and extreme weather events have aggravated Madagascar’s fragility. The poverty rate is estimated to be above 80 percent. After a stronger-than-expected recovery in 2021, growth is estimated to have decelerated in 2022 mostly due to climate shocks and a worsening global environment. Fiscal performance has deteriorated with weak revenue performance and increasing crossliabilities with oil distributors. While fiscal and external deficits have widened, fiscal and external sustainability are preserved in the medium term. |
| Date: | 2023–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2023/117&r=env |
| By: | Hillberry, Russell; Nguyen, Nhu |
| Abstract: | The rapid growth of utility-scale wind energy generation is a potentially important boon to rural economies in the United States. Yet econometric estimates suggest that the local economic benefits of wind energy generation have been modest, perhaps because the sector is capital-intensive and financed almost exclusively by external capital. In this paper we argue that a) both the presence of a critical - but unpaid - factor of production (the wind) and generous federal subsidies are quantitatively important sources of economic rent, and b) a large portion of these rents accrue to providers of capital who reside outside the local economy. We build a partial equilibrium model that illustrates the mechanisms that generate economic rent, and integrate it into a small open economy general equilibrium model of a county’s economy. We calibrate the partial and general equilibrium models to data from two rural counties in Indiana, quantify the economic rents, and consider the consequences of a resource rent tax. Resource rent taxes generate significantly larger economic benefits for communities that host wind power, and offer an opportunity to spread the sector’s economic benefits more broadly within them. Broadly distributed revenues from resource rent taxes might facilitate greater acceptance of utility scale wind power in communities where the sector would otherwise be unwelcome. State public utility commissions provide an analytical infrastructure that could support local taxation of the kind that we consider. |
| Keywords: | Land Economics/Use, Agricultural and Food Policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ags:pugtwp:333477&r=env |
| By: | van Beek, Andries (Tilburg University, Center For Economic Research); Groote Schaarsberg, Mirjam; Borm, Peter (Tilburg University, Center For Economic Research); Hamers, Herbert (Tilburg University, Center For Economic Research); Veneman, Mattijs |
| Keywords: | industrial decarbonization; regional CO2 transport hubs; multi-actor infrastructure; cost allocation |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:4f99c444-6676-4887-b7b8-5f9413b4b9a2&r=env |
| By: | Lencz, Dominic (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Variable renewable electricity (VRE), generated for instance by wind or solar power plants, is characterised by negligible variable costs and an availability that varies over time and space. Locating VRE capacity at sites with the highest average availability maximises the potential output. However, potential output must be curtailed, if system constraints prevent a local use or export. Such system constraints arise from the features defining the system, which I denote as system topology. Therefore, site choices that are unfavourable from a potential output perspective may still be optimal from a total system cost perspective. Previous research has shown that first-best investments require nodal prices that take account of the system constraints. Market designs that do not reflect nodal prices, such as uniform pricing, typically fail to achieve optimal site choices. However, a profound theoretical understanding of the economic trade-offs involved in the optimal spatial allocation of VRE is lacking. My paper contributes to filling this research gap. To do so, I develop a highly stylised model in which producers, taking into account the system topology, allocate VRE capacity in a one-shot game. Using the model, I analytically show that the optimal spatial allocation can be grouped into three spatial allocation ranges. Which of these ranges applies, I find to be highly dependent on the system topology parameters. In the first range, valid for relatively low VRE penetration levels, it is optimal to allocate all capacity to the node with the higher average availability. In the second and third range, it is optimal to allocate marginal capacity either fully or partially to the node with the lower average availability, i.e., the less favourable site from a potential output perspective. For uniform pricing, I show that producers allocate capacity inefficiently when VRE penetration exceeds a certain threshold.The resulting welfare losses I find to be especially high when transmission capacity is low, the difference in average VRE availability is large, and demand is concentrated at the node with the lower availability. |
| Keywords: | Variable renewable electricity; spatial allocation; nodal pricing; uniform pricing; theoretical analysis |
| JEL: | D47 Q42 Q48 |
| Date: | 2023–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2023_002&r=env |
| By: | Anuradha Singh; Jyoti Yadav; Sarahana Shrestha; Aparna S. Varde |
| Abstract: | This is a study on the potential widespread usage of alternative fuel vehicles, linking them with the socio-economic status of the respective consumers as well as the impact on the resulting air quality index. Research in this area aims to leverage machine learning techniques in order to promote appropriate policies for the proliferation of alternative fuel vehicles such as electric vehicles with due justice to different population groups. Pearson correlation coefficient is deployed in the modeling the relationships between socio-economic data, air quality index and data on alternative fuel vehicles. Linear regression is used to conduct predictive modeling on air quality index as per the adoption of alternative fuel vehicles, based on socio-economic factors. This work exemplifies artificial intelligence for social good. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.08286&r=env |
| By: | van Beek, Andries (Tilburg University, School of Economics and Management); Groote Schaarsberg, Mirjam; Borm, Peter (Tilburg University, School of Economics and Management); Hamers, Herbert (Tilburg University, School of Economics and Management); Veneman, Mattijs |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:4f99c444-6676-4887-b7b8-5f9413b4b9a2&r=env |