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on Environmental Economics |
| By: | Achim Hagen; Gilbert Kollenbach |
| Abstract: | We study the interaction of climate policies and investments into fossil and renewable energy generation capacity if policies are set by democratically elected governments and can lead to stranded assets. We develop an overlapping generations model, where elections determine carbon taxation and green investment subsidies, and individuals make investments into fossil and renewable capacity. We find that some fossil investments become stranded assets, if the party offering the higher carbon tax is unexpectedly elected. In contrast, if the individuals have perfect foresight, there are no stranded assets, climate damages are fixed and carbon taxation only serves redistributive purposes. Then, there is either no or prohibitive carbon taxation and energy generation completely relies on renewables in the latter case. Green investment subsidies can be used by governments to bind the hands of their successor. If the party representing the young generation is in power, it can use a high subsidy to reduce or even avoid potentially stranded assets in the next period. With endogenous reelection probability, we show that this party can also use investment subsidies strategically to influence the elections. The party that represents the old generation abstains from both types of climate policies to avoid a redistribution of income towards the young generation. |
| Keywords: | Stranded Assests, Political Economy, Fossil Fuel, Renewable Energy, Carbon Tax, Investment Subsidy |
| JEL: | D72 H23 Q54 Q58 |
| Date: | 2024–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:dpaper:0033&r=env |
| By: | Giorgos Galanis (School of Business and Management, Queen Mary University of London (UK).); Mauro Napoletano (GREDEG, CNRS, Université Côte d’Azur, Sciences Po, OFCE, SKEMA Business School.); Lilit Popoyan (School of Business and Management, Queen Mary University of London (UK).); Alessandro Sapio (University of Naples "Parthenope" (Italy)); Olivier Vardakoulias (Climate Action Network (CAN) Europe (Belgium)) |
| Abstract: | Climate change has sparked a vivid discussion on its socio-economic risks, capturing the attention of academic circles and policymakers. While it is widely argued that a low-carbon transition should be socially just, the precise criteria that policies must adhere to, in order to be universally accepted as `just', remain insufficiently defined. We draw on relevant theories of distributive justice to provide a formal definition of a just transition. According to our definition, just transition policies should minimise costs for the most vulnerable groups and also take into account the uneven responsibility for causing damages. |
| Keywords: | climate change; distributive justice; green policies; just transition; inequality |
| JEL: | O13 Q52 Q54 Q58 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:114&r=env |
| By: | Zadeh, S. M.; Drechsel, Pay (International Water Management Institute); Salcedo, F. P. |
| Keywords: | Water quality; Sustainable Development Goals; Goal 6 Clean water and sanitation; Water pollution; Agricultural pollution; Monitoring; Wastewater; Human health; Sanitation |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:bosers:h052240&r=env |
| By: | Alexandru Petrea (Alexandru cel Bun Military Academy, Chisinau, Republic of Moldova) |
| Abstract: | The European Union has set ambitious targets for renewable energy, aiming to increase the percentage share of renewable energy in gross final energy consumption and promote its use in transportation and heating sectors. Romania, having a significant potential in renewable energy, especially wind and solar energy, can play an important role in achieving these goals. The exploitation of abundant natural resources and the development of production capacities in wind, solar and hydropower can contribute to the transition to a cleaner and more sustainable energy system, bringing economic and environmental benefits to the country and contributing to significant reductions in greenhouse gas emissions. |
| Keywords: | Renewable Energy Source, Energy Transition, Energy Policies, Energy Efficiency, Climate Goals, Sustainable Energy Technologies and Assessments |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0286&r=env |
| By: | Juyong Lee; David M. Reiner |
| Keywords: | Low carbon energy, variable selection models, energy mix, public trust, climate change perceptions, nuclear power, renewables |
| JEL: | B4 C5 P48 Q42 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2303&r=env |
| By: | Michael A. Mehling |
| Keywords: | Climate change, spillover effects, emissions leakage, supply-side approaches, technology, offset credits |
| JEL: | H23 K33 O30 Q54 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2313&r=env |
| By: | Victor Ajayi; Michael G. Pollitt |
| Keywords: | Green growth, net zero, circular economy, future energy scenarios, productivity |
| JEL: | D24 O44 Q53 Q54 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2215&r=env |
| By: | Mei Lu; Michael G. Pollitt; Ke Wang; Yi-Ming Wei |
| Keywords: | Carbon emissions trading scheme, target responsibility system, policy evaluation, triple difference-in-differences |
| JEL: | Q54 L94 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2316&r=env |
| By: | Jim Krane |
| Keywords: | Saudi Arabia, Net Zero 2060, decarbonisation, oil and natural gas, Saudi Aramco, greenhouse gas (GHG), carbon dioxide (CO2), emissions offsets, renewables, hydrogen, energy subsidy reform, carbon intensity, carbon capture and storage (CCS), emissions clusters, credible commitment, Paris Agreement NDC, climate pledge, peak oil demand, Scope 1, 2 and 3 emissions |
| JEL: | Q01 Q4 P16 P18 Q32 Q35 Q38 Q54 Q58 H23 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2217&r=env |
| By: | Faustino Prieto; Catalina B. Garc\'ia-Garc\'ia; Rom\'an Salmer\'on G\'omez |
| Abstract: | Carbon dioxide (CO2) emissions have emerged as a critical issue with profound impacts on the environment, human health, and the global economy. The steady increase in atmospheric CO2 levels, largely due to human activities such as burning fossil fuels and deforestation, has become a major contributor to climate change and its associated catastrophic effects. To tackle this pressing challenge, a coordinated global effort is needed, which necessitates a deep understanding of emissions patterns and trends. In this paper, we explore the use of statistical modelling, specifically the lognormal distribution, as a framework for comprehending and predicting CO2 emissions. We build on prior research that suggests a complex distribution of emissions and seek to test the hypothesis that a simpler distribution can still offer meaningful insights for policy-makers. We utilize data from three comprehensive databases and analyse six candidate distributions (exponential, Fisk, gamma, lognormal, Lomax, Weibull) to identify a suitable model for global fossil CO2 emissions. Our findings highlight the adequacy of the lognormal distribution in characterizing emissions across all countries and years studied. Furthermore, to provide additional support for this distribution, we provide statistical evidence supporting the applicability of Gibrat's law to those CO2 emissions. Finally, we employ the lognormal model to predict emission parameters for the coming years and propose two policies for reducing total fossil CO2 emissions. Our research aims to provide policy-makers with accurate and detailed information to support effective climate change mitigation strategies. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.00653&r=env |
| By: | Massimiliano Rizzati (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia); Emanuele Ciola (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia); Enrico Turco (Fondazione Eni Enrico Mattei and The Complexity Lab in Economics, Department of Economics and Finance, Catholic University of Milan); Davide Bazzana (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia) |
| Abstract: | Green preferences are often regarded as crucial factors in facilitating the energy transition. However, it is unclear if they can alone propel an economy towards achieving a net-zero emissions outcome. In this study, we expand the multi-agent integrated assessment model MATRIX by incorporating considerations on implicit emissions in the decision-making process of consumers and firms. To evaluate the efficacy of those green preferences, we construct a range of experiments encompassing varying degrees of pro-environmental attitudes. Those scenarios are then compared to more conventional incentive-based climate policies, such as a carbon tax and a Cap-and-Trade mechanism, with and without a subsidy for abatement technology, each implemented at different stringency. Our findings indicate that only exceptionally high and unrealistic values of green preferences for both firms and consumers can achieve a net-zero outcome in the absence of an active policy. Moreover, the most favorable scenario in terms of environmental, economic and distributional outcomes emerges from a carbon tax accompanied by a moderate subsidy. Without subsidy, policies entail mainly negative economic and distributional consequences as firms transfer the increased costs to consumers. |
| Keywords: | Energy Sector, Agent-Based Models, Macroeconomic Dynamics, Climate Policy, Emission Abatement, Green preferences |
| JEL: | C63 Q52 Q58 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2024.03&r=env |
| By: | Seung Min Kim; Kenneth Gillingham |
| Abstract: | There is strong evidence on the mortality and morbidity external costs of air pollution. This paper focuses on another source of air pollution externality: the loss in solar electricity generation from increased atmospheric opacity due to air pollution. We use data from residential rooftop solar panels and exploit quasi-random variation in air opacity from wildfire smoke and wind conditions to estimate that PM2.5 pollution reduced annual solar generation in California by over 450GWh, or 4% of total potential generation. This is equivalent to an annual externality of $177 per ton of PM2.5 emitted. Our findings suggest that there is a positive feedback from decarbonisation policies, where reduced dependence on fossil fuels improves air quality, leading to an even greater productivity of solar generation, further reducing emissions. |
| Keywords: | solar energy, air pollution, equity |
| JEL: | Q48 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10948&r=env |
| By: | Michael Hoel; Michael Olaf Hoel |
| Abstract: | To reach the goals of the Paris agreement, net carbon emissions must be reduced to zero by the second half of this century. To achieve this, some kind of carbon dioxide removal (CDR) is needed. The paper gives an analysis of the interaction between extraction of fossil energy resources and CDR. If there is sufficient capacity for storing captured carbon, it will be optimal to have a period of negative net emissions. In this case cumulative extraction will not depend on climate costs, but will be higher the lower is the cost of CDR at low levels of CDR. |
| Keywords: | net zero emissions, negative emissions, carbon removal, CDR, CCS, stranded assets |
| JEL: | Q35 Q40 Q54 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10939&r=env |
| By: | Eric Dacheux (UCA - Université Clermont Auvergne); Daniel Goujon (IERP (EA 3723) - Institut des Etudes Régionales et du patrimoine - UJM - Université Jean Monnet - Saint-Étienne) |
| Abstract: | Climate change is the symptom of an economy that has moved away from good household management (oikos, the common root of economy and ecology, means home). Today's productivist economy is more concerned with the short-term profitability of assets than with the long-term survival of the human race. Not only is it slow to take the necessary measures to limit greenhouse gas emissions, but its race for growth is destroying our environment. This lack of concern for the environment is compounded by unsustainable social inequality. This unsustainability is made all the more glaring by the fact that the poorest people are often the first victims of climate change. Against this backdrop of social and ecological deadlock, we urgently need to change our economic paradigm. To do this, we propose to draw on experiments in the Social and Solidarity Economy (SSE) that seek to reconcile the economy and the environment. This text, which is the result of longitudinal empirical research, has two objectives. The first is to show that the SSE is teeming with local initiatives that are often in line with the Sustainable Development Goals (SDGs). In this contribution, we will focus on four objectives. The first two are aimed at building an inclusive society: eradicating poverty and reducing inequality. The other two contribute to building a sustainable society: decent work and sustainable growth; responsible consumption and production. For each objective we will mention several SSE initiatives in order to give a general overview, but we will only detail one initiative that we feel is particularly representative of what we are talking about. the second objective of this paper is to show that these grassroots initiatives are social innovations which, through the principles they embody, call for a renewal of economic theory. Indeed, from a conceptual point of view, these SSE initiatives are based on principles of action (e.g. favouring use over ownership, deliberation over competition, etc.) which, once articulated, constitute an economic paradigm favourable to a more ecological and supportive humanity. |
| Abstract: | El cambio climático es el síntoma de una economía que se ha alejado de la buena gestión doméstica (oikos, raíz común de economía y ecología, significa hogar). La economía productivista actual está más preocupada por la rentabilidad a corto plazo de los activos que por la supervivencia a largo plazo de la especie humana. No sólo es lenta a la hora de tomar las medidas necesarias para limitar las emisiones de gases de efecto invernadero, sino que su carrera en pos del crecimiento está destruyendo nuestro medio ambiente. Esta falta de preocupación por el medio ambiente se ve agravada por una desigualdad social insostenible. La insostenibilidad es tanto más flagrante cuanto que los más pobres suelen ser las primeras víctimas del cambio climático. En este contexto de colapso social y ecológico, urge cambiar de paradigma económico. Para ello, proponemos inspirarnos en las experiencias de la Economía Social y Solidaria (ESS) que tratan de conciliar la economía y el medio ambiente. Este texto, fruto de una investigación empírica longitudinal, tiene dos objetivos. El primero es mostrar que la ESS está repleta de iniciativas locales que a menudo están en sintonía con los Objetivos de Desarrollo Sostenible (ODS). En esta contribución, nos centraremos en cuatro objetivos. Los dos primeros están dirigidos a construir una sociedad incluyente: erradicar la pobreza y reducir la desigualdad. Los otros dos contribuyen a construir una sociedad sostenible: trabajo digno y crecimiento sostenible; consumo y producción responsables. Para cada objetivo, mencionaremos varias iniciativas de ESS con el fin de dar una visión general, pero sólo entraremos en detalle en una de ellas que nos parece especialmente representativa de lo que estamos abordando. El segundo objetivo de este documento es mostrar que estas iniciativas de base son innovaciones sociales que, en virtud de los principios que se desprenden de ellas, requieren una renovación de la teoría económica. En efecto, desde un punto de vista conceptual, estas iniciativas de ESS se basan en principios de acción (por ejemplo, fomentando el uso en detrimento de la propiedad, la deliberación en oposición a la competencia, etc.) que, una vez articulados, constituyen un paradigma. |
| Abstract: | Le dérèglement climatique est le symptôme d'une économie qui s'est éloigné de la bonne gestion du foyer (oikos racine commune à économie et écologie signifie le foyer). L'économie productiviste actuelle se soucie plus de la rentabilisation de court terme des actifs que de la survie de l'espèce humaine à long terme. Non seulement elle tarde à prendre les mesures nécessaires pour limiter l'émission de gaz à effet de serre mais en plus sa course à la croissance la conduit à détruire notre environnement. Cette non prise en compte de l'environnement se double d'une inégalité sociale insoutenable. Insoutenabilité d'autant plus criante que les plus pauvres sont aussi, bien souvent, les première victimes du dérèglement climatique. Dans ce contexte d'impasse sociale et écologique, il est urgent de changer de paradigme économique. Pour ce faire nous nous proposons de nous appuyer sur des expérimentations relevant de l'Economie Sociale et Solidaire (ESS) qui cherchent concilier économie et environnement. Ainsi, ce texte, fruit d'une recherche empirique longitudinale, poursuit deux objectifs. Le premier est de montrer que l'ESS fourmille d'initiatives locales qui s'inscrivent souvent dans les objectifs du développement durable (ODD). Dans cette contribution nous nous centrerons sur quatre objectifs. Les deux premiers visent la construction d'une société inclusive : l'éradication de la pauvreté et la réduction des inégalités. Les deux autres participent à l'élaboration d'une société durable : travail décent et croissance durable ; consommation et production responsable. Pour chaque objectif nous évoquerons plusieurs initiatives d'ESS afin de donner un aperçu général mais nous détaillerons uniquement une initiative qui nous parait particulièrement représentative de nos propos. Le second objectif de ce papier est de montrer que ces initiatives de terrain sont des innovations sociales qui, par les principes qui s'en dégagent, invitent au renouveau de la théorie économique. En effet, d'un point de vue conceptuel, ces initiatives d'ESS reposent sur des principes d'actions (par exemple favoriser l'usage plutôt que la propriété, la délibération plutôt que la concurrence, etc.) qui, une fois articulés, constituent un paradigme économique favorable à une humanité plus écologique et plus solidaire. |
| Keywords: | social and solidarity economy, sustainable development, new paradigm, deliberalism, economía social y solidaria, desarrollo sostenible, nuevo paradigma, deliberalismo, économie sociale et solidaire, développement durable, nouveau paradigme, délibéralisme |
| Date: | 2022–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04451549&r=env |
| By: | Bekkers, Eddy; Yilmaz, Ayse Nihal; Bacchetta, Marc; Ferrero, Mateo; Jhunjhunwala, Kirti; Métivier, Jeanne; Okogu, Bright E.; Ramos, Daniel; Tresa, Enxhi; Xu, Ankai |
| Abstract: | We explore a global carbon pricing framework to inform the potential coordination of carbon pricing and equivalent policies. The framework has three main features aligning with the current multilateral system for climate action. First, the carbon price is determined by a global average carbon price to achieve emission reductions required to remain on a 1.5-2 degrees Celsius global warming trajectory. The framework further incorporates a set of economy-level criteria determining variation in carbon prices between economies: historical emissions, the current level of economic development, and the economic costs of climate change. Second, a moderate share of carbon pricing revenues is allocated to support lower-income economies, economies with higher costs of climate change and economies with higher economic costs of carbon pricing. Third, the framework allows economies to achieve equivalent carbon emission reductions through the implementation of alternative policy instruments. Simulations with the Global Trade Model show that, under the framework, the projected economic costs of carbon pricing are in proportion to the economy-level criteria, implying higher costs for economies with higher historical emissions, a higher level of development and lower projected costs of climate change. The projected reduction in output and exports in emission-intensive trade-exposed sectors (EITEs) displays only a weak negative correlation with the carbon price level. The framework is not meant as a policy proposal but as a contribution to the discussion on coordination of carbon pricing policies. Such coordination can help to inform the discussion about policy options to prevent fragmentation of carbon pricing and other climate change mitigation policies. Such fragmentation is costly and could lead to the introduction of complementary policies which could come with trade frictions. |
| Keywords: | Carbon pricing, Climate change mitigation, CGE Models |
| JEL: | C68 F18 Q54 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wtowps:285362&r=env |
| By: | Best, Frank |
| Abstract: | In its “Fit for 55” program, the European Union (EU) integrates several instruments with the goal of achieving climate neutrality by 2050. One of the cornerstones of the program is the EU Emissions Trading System (EU-ETS), which imposes a levy on CO2 and other greenhouse gas (GHG) emissions, thus internalizing external costs, restoring fair competition, incentivizing sustainable investment and efficiently distributing the remaining greenhouse gas budget through a cost-effective, market-oriented mechanism. This carbon pricing scheme, however, only affects companies which emit GHGs within the EU. Imported products thereby achieve a cost advantage over products produced within the scope of the EU-ETS, leading to competitive pressure on EU-ETS companies and the risk that they might move production facilities outside the scope of the EU-ETS (“carbon leakage”). In order to avoid carbon leakage and encourage cleaner industrial production in partner countries, the EU decided to introduce the Carbon Border Adjustment Mechanism (CBAM) to put a fair price on carbon emissions from the manufacturing of products imported into the EU. The CBAM transitional phase will go into effect on October 1, 2023. Initially, it will only apply to selected industrial products and precursors whose production is particularly carbon intensive and which are deemed to have the highest potential risk of carbon leakage. Once the CBAM is fully active, all importing companies will have to declare the embedded emissions for their products and surrender the corresponding amount of CBAM certificates. It is to be expected that importing companies will strongly rely on their international suppliers to provide information on the embedded emissions. India is both an important trade partner of the EU and, because of its strong reliance on coal power plants, a heavy greenhouse gas emitter both in absolute and relative terms. Importers of products from India into the EU will therefore have to purchase a significant number of carbon allowances under the CBAM regulations. This paper explains the functional mechanism of the CBAM and identifies the product flows from India to the EU for the affected products. It describes the product groups, their importance for Indian companies as well as the future requirements, and is intended to support Indian companies that export to the European Union to prepare for the CBAM requirements both during the transition phase and once the system is fully active. |
| Abstract: | Im Rahmen ihres Programms "Fit for 55" integriert die Europäische Union (EU) mehrere Instrumente mit dem Ziel, bis 2050 Klimaneutralität zu erreichen. Einer der Eckpfeiler des Programms ist das EU-Emissionshandelssystem (EU-ETS), das eine Abgabe auf CO2 und andere Treibhausgasemissionen erhebt und somit externe Kosten internalisiert, fairen Wettbewerb wiederherstellt, nachhaltige Investitionen anregt und das verbleibende Treibhausgasbudget durch einen kosteneffizienten, marktorientierten Mechanismus effizient verteilt. Dieses System zur Bepreisung von Kohlenstoffemissionen betrifft jedoch nur Unternehmen, die Treibhausgase innerhalb der EU emittieren. Importierte Produkte erlangen dadurch einen Kostenvorteil gegenüber europäischen Produkten, was zu Wettbewerbsdruck auf EU-Unternehmen führt. Dieser Druck birgt das Risiko der Verlagerung von Produktionsstätten außerhalb des EU-ETS-Bereichs verlagern ("Carbon Leakage"). Um Carbon Leakage zu vermeiden und eine emissionsarme Produktion in Partnerländern zu fördern, beschloss die EU, den Carbon Border Adjustment Mechanism (CBAM) einzuführen, um einen fairen Preis für CO2-Emissionen importierter Produkte festzulegen. Die Übergangsphase des CBAM ist am 1. Oktober 2023 in Kraft getreten. Anfangs gilt der CBAM nur für ausgewählte Industrieprodukte und Vorprodukte, deren Produktion besonders kohlenstoffintensiv ist und die als besonders gefährdet für Carbon Leakage gelten. Sobald der CBAM vollständig aktiv ist, müssen alle importierenden Unternehmen die eingebetteten Emissionen für ihre Produkte deklarieren und die entsprechende Menge an CBAM-Zertifikaten abgeben. Es ist zu erwarten, dass importierende Unternehmen stark auf ihre internationalen Lieferanten angewiesen sein werden, um Informationen zu den eingebetteten Emissionen bereitstellen zu können. Indien ist sowohl ein wichtiger Handelspartner der EU als auch aufgrund seiner starken Abhängigkeit von Kohlekraftwerken ein siginifikanter Treibhausgasemittent. Importeure von Produkten aus Indien in die EU werden daher unter den CBAM-Vorschriften eine signifikante Anzahl von Kohlenstoffzertifikaten erwerben müssen und abgeben müssen. Dieser Artikel erklärt den funktionalen Mechanismus des CBAM und identifiziert die Produktströme von Indien in die EU für die betroffenen Produkte. Er beschreibt die Produktgruppen, ihre Bedeutung für indische Unternehmen sowie die zukünftigen Anforderungen und soll indischen Unternehmen, die in die Europäische Union exportieren, dabei helfen, sich auf die CBAM-Anforderungen sowohl während der Übergangsphase als auch bei vollständiger Inbetriebnahme des Systems vorzubereiten |
| Keywords: | Aluminium, CBAM, Carbon Border Adjustment Mechanism, Carbon Intensity, Emission Trading Scheme, EU-ETS, India, Imports, Iron & STeel |
| JEL: | Q56 F13 Q58 F18 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esrepo:285311&r=env |
| By: | Miwa Nakai (Faculty of Economics, Fukui Prefectural University, 4-1-1, Matsuoka Kenjojima, Eiheiji-cho, Fukui, 910-1195, Japan); Naonari Yajima (Faculty of Economics, Seijo University, 6-1-20, Seijo, Setagata-ku, Tokyo, 157-0066, Japan); Majah-Leah Ravago (Department of Economics, Ateneo de Manila University, Room 409, Leong Hall, Loyola Heights, Quezon City, Philippines 1108) |
| Abstract: | Energy efficiency of home appliances plays a crucial role in climate mitigation policies, especially considering the increasing energy consumption in developing countries. Particularly in countries with high temperatures such as the Philippines, switching to energy efficient air conditioners (ACs) can make a substantial contribution to both climate mitigation and sustainable development. We conducted a field survey among households with a choice experiment in the Philippines. We investigated the attributes that influence the decision to purchase ACs and to understand the variations in preferences among consumers in the tropics. Utilizing primary data with a broad range of socio-economic characteristics, we find that households have higher willingness-to-pay for energy efficient models. Moreover, in terms of preference variability, certain consumer groups such as AC owners, younger age segments, higher income brackets, and those with higher environmental awareness displayed higher willingness-to-pay. Furthermore, our survey reveals the potential for a significant rebound effect in AC use if households purchase an energy efficient model. Therefore, we emphasise the importance of combining the transition to energy efficient ACs with additional policy measures to reduce wastage and consume energy efficiently across other domains, as a country transitions to more sustainable and cleaner energy. |
| Keywords: | Appliance labelling, Energy-saving behaviour, Choice experiment, Air conditioner, Tropical climate, Philippines |
| JEL: | D12 R11 Q56 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:was:dpaper:2304&r=env |
| By: | Rodrigo Pizarro; Santaro Sakata; Miguel Cárdenas Rodríguez; Abenezer Zeleke Aklilu; Ekaterina Ghosh |
| Abstract: | The Paris Agreement maps out a path for internationally coordinated efforts to curb global warming. At the centre of the Paris Agreement are Nationally Determined Contributions (NDCs) that establish countries’ plans to mitigate greenhouse gas (GHG) emissions as well as adapt to the impacts of climate change. However, mitigation contributions defined in NDCs are different across countries in terms of target types, coverage of sectors and gases. This makes it challenging to assess progress on mitigation commitments. To complement the UNFCCC efforts, and facilitate the evaluation and monitoring of targets, this paper develops a methodology that harmonises countries’ 2030 mitigation targets in physical units and provide clarity on sector and gas coverage. The results are used to develop the GHG Emission Trends and Targets (GETT) indicators for non-EU countries and the EU-27 covered under the International Programme for Action on Climate (IPAC). The GETT indicators support the analyses of emissions' trajectories by describing historical GHG emission trends and comparing them to NDC emission targets, considering various reference years and indicators, including emissions intensity per capita or per unit of GDP. |
| Keywords: | GHG Emission Trends and Targets, Harmonised indicators, Nationally Determined Contributions, Paris Agreement |
| JEL: | C89 Q54 Y10 |
| Date: | 2024–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:230-en&r=env |
| By: | International Monetary Fund |
| Abstract: | Climate change presents substantial risks for Cameroon. In addition to being the largest CEMAC economy with ample economic potential and abundant natural resources, Cameroon covers large areas of the Congo Basin rainforest, the second largest in the world. At the same time, the country is a fragile and conflict affected state (FCS), with a range of fragilities, including a high vulnerability to climate change. Climate risks are intensifying in Cameroon, with temperatures progressively rising, and a projected increase in days with heavy precipitation and higher frequency of extreme weather events, such as droughts, landslides, and floods. Climate change poses an imminent threat to livelihoods and could result in significant output losses, while worsening food insecurity and conflicts, and exacerbating poverty, inequality, and population displacements. This underscores the need to strengthen the country’s preparedness and resilience to ensure that climate change impact does not jeopardize human capital accumulation or inclusive growth. |
| Date: | 2024–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2024/053&r=env |
| By: | Reichelstein, Stefan (U of Mannheim and Stanford U) |
| Abstract: | Current corporate disclosures regarding carbon emissions lack commonly accepted accounting rules. The carbon accrual accounting system described here takes the rules of historical cost accounting for operating assets as a template for generating a Carbon Emissions (CE) balance sheet and flow statement. The asset side of the CE balance sheet reports the carbon emissions embodied in operating assets. The liability side conveys the firm's cumulative direct emissions into the atmosphere as well as the cumulative emissions embodied in goods acquired from suppliers less those sold to customers. Flow statements report the cradle-to-gate carbon footprint of goods sold during the current period. Taken together, balance sheets and flow statements generate key indicators of a company's past, current and future performance with regard to carbon emissions. |
| JEL: | M41 M48 Q53 Q54 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:4123&r=env |
| By: | Markus Leippold (University of Zurich; Swiss Finance Institute); Zacharias Sautner (University of Zurich - Department of Banking and Finance; Swiss Finance Institute; European Corporate Governance Institute (ECGI)); Tingyu Yu (University of Zurich - Department of Banking and Finance) |
| Abstract: | A common concern is that ambitious climate policy is—at least in parts—obstructed by corporate lobbying activities. We quantify corporate anti- and pro-climate lobbying expenses, identify the largest corporate lobbyists and their motives, establish how climate lobbying relates to corporate business models, and document whether and how climate lobbying is priced in financial markets. Firms spend on average $295, 921 per year on anti-climate lobbying ($164, 991 on pro-climate lobbying). Recently, firms have tried to camouflage their climate lobbying activities. Large anti-climate lobbyists have more carbon-intensive business models and face more climate-related incidents in the future. Firms that spend more on anti-climate lobbying earn higher returns, probably because of a risk premium. Their stock prices went up when the Waxman-Markey Cap-and-Trade Bill failed, and down when the Inflation Reduction Act was announced. |
| Keywords: | Corporate Lobbying, Climate Change, Stock Returns |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2414&r=env |
| By: | Yasmine van der Straten; Enrico Perotti; Frederick van der Ploeg; Rick van der Ploeg |
| Abstract: | We study the evolution of voter support for climate policies aimed at containing the effect of climate risk, as weather conditions worsens at a time of rising economic inequality. Households differ in age, beliefs and income, and the scale of intervention to preserve habitable land reflects the preference of the majority coalition. Economic polarization tightens conditions for more households, while rising climate risk increases support for public adaptation. If beliefs on attainable impact are not too dispersed, an initially coalition of young and old pessimists might tip towards a coalition of old optimists and young pessimists, leading to a jump in support for public action. A steady rise in inequality may ultimately induce a second political tipping point, towards a coalition of the low-income old and young pessimists, although the effects on public adaptation are weaker. Public intervention is undermined by pessimism about the efficacy of public adaptation and the “tragedy of the horizon” effect, as voters only partially internalize benefits for future generations. This prevents public adaptation from converging to the long-term social optimum even when political support is highest. |
| Keywords: | climate change adaptation, economic inequality, tragedy of the horizon, political tipping points |
| JEL: | D63 H23 Q54 Q58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10961&r=env |
| By: | Pierre-Henri Bono (CEVIPOF, Sciences Po); Alain Trannoy (Aix-Marseille Univ., CNRS, AMSE, Marseille, France) |
| Abstract: | The Airplane Carbon Barter (ACB) mechanism is a sort of Personal Carbon Trading (PCT) system for allocating emissions allowances to French air travelers, combined with a barter mechanism at the shadow carbon price of €100 in the first year, and following the price growth trajectory defined in the Quinet II report for the following years. Based on the latest available data, each French citizen would have an emission allowance of 0.4 tons of carbon in the first year. The modus operandi is similar to a Covid-type app, with a QR code required at check-in by airlines to obtain a boarding pass. The personal carbon account is reserved for French nationals or residents of France. We estimate that the TCA could lead to a 6% reduction in total emissions in the first year, for a market exchange value of around €1.5 billion. The TCA is also a transfer mechanism that redistributes purchasing power essentially from the last decile to the first decile, which could increase its purchasing power by 0.5%. We also propose a variant of the ACB mechanism to make it consistent with the EU-ETS. |
| Keywords: | Avion, Carbone, Emissions, droits, Redistribution |
| JEL: | Q52 Q54 Q58 R48 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:2409&r=env |
| By: | Frankovic, Ivan; Etzel, Tobias; Falter, Alexander; Gross, Christian; Ohls, Jana; Strobel, Lena; Wilke, Hannes |
| Abstract: | This paper presents the methodology applied in the Deutsche Bundesbank's climate transition stress test for the German financial system, see Deutsche Bundesbank (2023). It discusses the construction of the transition scenarios underlying the analysis, including a long-run orderly scenario and a more disruptive short-term carbon price shock. Furthermore, the document shows the methodology for translating scenario impacts onto the asset level, which includes the consideration of firm-level carbon emission data where available. Finally, the impacts on the balance sheets of German banks, funds and insurers are discussed. |
| Keywords: | climate risks, stress testing, climate scenarios, financial stability |
| JEL: | G2 H23 Q5 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubtps:283347&r=env |
| By: | Cipollina, Maria; De Benedictis, Luca; Scibè, Elisa |
| Abstract: | The article provides cross-sectional evidence of domestic and international human migration associated with environmental shocks, with a specific emphasis on genderspecific heterogeneity and geographical distance. Both sudden and gradual environmental changes may influence the decision to migrate. However, the response is conditional to the cost and opportunity to move, which can vary based on gender and the distance between the location affected by the environmental shock and the hosting destination, within the country or internationally. Using the 5-year estimates of internal and international domestic migration flow disaggregated by sex, representative of the period 2005-2010, we estimate a structural gravity model and we find that migration can be influenced by environmental risks, as people may seek safer or more stable environments when their home regions are prone to disasters, albeit differently for each gender, both within a country and across borders. |
| Keywords: | Migration; Climate change; Natural disasters; Gender; Structural Gravity model. |
| JEL: | C13 F22 J61 Q51 Q54 Q56 |
| Date: | 2024–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:mol:ecsdps:esdp24093&r=env |
| By: | von Graevenitz, Kathrine; Rottner, Elisa; Richter, Philipp M. |
| Abstract: | Relative prices determine competitiveness of different locations. In this paper, we focus on the role of regulatory differences between Germany and other EU countries which affect the shadow price of carbon emissions. We calibrate a Melitz-type model, extended by firms' emissions and abatement decisions using data on aggregate output, trade and emissions. The parameter estimates are estimated from the German Manufacturing Census. The quantitative model allows us to recover a measure of how regulatory stringency evolved in the EU and Germany in terms of an implicit carbon price paid on emissions. This price reflects energy and carbon prices in addition to command-and-control measures and decreased from 2005 to 2019 in most sectors - both in Germany and other EU countries. The trend is more pronounced in Germany than in the rest of the EU. In counterfactual analyses, we show that this intra-EU difference has substantially increased German industrial emissions. Had the EU experienced the same decrease in implicit carbon prices as Germany, German emissions would have been substantially lower. Germany has increasingly become a pollution haven |
| Keywords: | Carbon emissions, Climate Policy, Melitz model, Manufacturing |
| JEL: | F18 H23 L60 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283591&r=env |
| By: | Best, Frank |
| Abstract: | In order to avoid carbon leakage, the EU decided to introduce the Carbon Border Adjustment Mechanism to put a fair price on embedded carbon emissions of products imported into the EU. Once the CBAM is operational, importing companies will have to declare the embedded emissions for their products and surrender the corresponding amount of CBAM certificates. Taiwan is an important trade partner of the EU, especially for electronic components, and also for base metals like Iron & Steel or Aluminium. The industrial manufacturing for base metals yields high Scope 1 greenhouse gas emissions; additionally, power generation in Taiwan relies heavily on fossil fuels. This paper identifies the Iron & Steel product flows from Taiwan to the EU. It describes the CBAM requirements and the potential impact on Taiwanese Iron & Steel exports, pointing out challenges and opportunities. It intends to support Taiwanese companies to prepare for CBAM rules both during the transition phase and once the system is fully active. |
| Abstract: | Um Carbon Leakage zu vermeiden, beschloss die EU den Carbon Border Adjustment Mechanism (CBAM) als Grenzausgleichsmechanismus einzuführen, um CO2-Emissionen von Produkten, die in die EU importiert werden, fair zu bepreisen. Sobald der CBAM funktionsfähig ist, müssen importierende Unternehmen die entstandenen Emissionen für ihre Produkte deklarieren und die entsprechende Menge an CBAM-Zertifikaten abgeben. Taiwan ist ein wichtiger Handelspartner der EU, insbesondere für elektronische Komponenten, aber auch für Grundstoffe wie Eisen & Stahl oder Aluminium. Die industrielle Herstellung dieser Produkte führt zu hohen Scope-1-Treibhausgasemissionen; zusätzlich basiert die Stromerzeugung in Taiwan stark auf fossilen Brennstoffen. Dieses Papier identifiziert die Importströme von Eisen & Stahl von Taiwan in die EU. Es beschreibt die Anforderungen des CBAM und die potenziellen Auswirkungen auf die Exporte von taiwanesischem Eisen & Stahl und zeigt Herausforderungen und Chancen auf. Es zielt darauf ab, taiwanesische Unternehmen dabei zu unterstützen, sich sowohl während der Übergangsphase als auch nach der vollständigen Inbetriebnahme des Systems auf die CBAM-Regeln vorzubereiten. |
| Keywords: | CBAM, Carbon Border Adjustment Mechanism, Emission Intensity, Emission Trading Scheme, EU-ETS, Imports, Iron, Steel, Taiwan, TSCE |
| JEL: | F14 H23 M16 L61 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esconf:285308&r=env |
| By: | Hinterlang, Natascha; Martin, Anika; Röhe, Oke; Stähler, Nikolai; Strobel, Johannes |
| Abstract: | Climate change and climate policy will have far-reaching economic implications, thereby also posing new challenges for macroeconomic analysis. This is partly because climate risks have an important global dimension. Moreover, climate change and climate polices are likely to affect different economic sectors to varying degrees. Hence, in order to adequately gauge the macroeconomic implications of climate risks, models with sufficient regional and sectoral differentiation are needed. Against this background, we developed the environmental multi-sector dynamic stochastic general equilibrium model EMuSe. This paper presents the main features of the benchmark closed-economy flexible-price model, an open-economy extension of the model, a variant of the model with price-setting frictions and selected applications to illustrate key transmission channels. In order to give those who are interested the opportunity to gain more experience with EMuSe, the model codes are published together with this documentation. |
| Keywords: | climate risks, DSGE, production linkages, sectoral heterogeneity |
| JEL: | E3 E6 F4 H3 Q5 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubtps:280900&r=env |
| By: | Cécile Couharde; Rémi Generoso |
| Abstract: | We examine the impact of the National Ambient Air Quality Stan-dards, as defined by the Clean Air Act, on agricultural land valueswithin the corn and soybean regions of the United States. To achievethis objective, agricultural census data on farmland values are com-bined with pollution exposure metrics as defined by the Environmen-tal Protection Agency. Using a difference-in-differences approach andconducting various robustness checks, we find that compliance with airquality standards has a statistically significant negative effect on agri-cultural land values at the county level. Moreover, evidence from quan-tile regression analysis suggests that counties in the lower quantiles failto translate the economic and environmental benefits of pollution re-duction into increased farmland values, unlike their counterparts withthe highest-valued lands. |
| Keywords: | Air Quality Standards; Agricultural Land Values; Difference- in-Differences; Quantile Regression |
| JEL: | C21 Q15 Q53 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2024-9&r=env |
| By: | Pille-Riin Aja; 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); Sébastien Houde (UNIL - Université de Lausanne = University of Lausanne) |
| Abstract: | The adoption of air conditioning (AC) could grow exponentially across Africa under the joint effect of acute warming, sustained income growth and rapid urbanization. The implications for greenhouse gas emissions will crucially depend on the energy efficiency of the models adopted. Little is known, however, about how energy efficiency information is conveyed to consumers in these markets. To fill this gap, we gathered data on cooling appliances' characteristics from Africa's largest e-commerce platform, serving 13 countriess—Algeria, Cameroon, Côte d'Ivoire, Egypt, Ghana, Kenya, Morocco, Nigeria, Senegal, South Africa, Tanzania, Tunisia, and Uganda. We find that less than 10% of the AC models available on the marketplace (N=1, 229) have information disclosed about their energy performance. Information disclosure appears to be highly idiosyncratic with weak strategic motives. This overall lack of information about energy efficiency represents an important challenge for enforcing energy performance standards and steering demand toward energy-efficient cooling appliances. |
| Keywords: | energy efficiency; climate adaptation; air conditioning; Africa; e-commerce; webscraping |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04456844&r=env |
| By: | Tiago Cavalcanti; Kamiar Mohaddes; Hongyu Nian; Haitao Yin |
| Keywords: | Pollution, human capital, knowledge, innovation, China |
| JEL: | O15 O30 O44 Q51 Q56 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2301&r=env |
| By: | Thomas, Timothy S.; Robertson, Richard D. |
| Abstract: | In this paper we present analysis on the recent historical trend in agriculture in the Eastern and Southern Africa (ESA) region, along with analysis of recent historical trends in temperature and precipitation. We also present 5 climate models and describe the possible future climates associated with these. We use these climate models with crop models -- for seven crops -- and bioeconomic models to further assess the impact on agricultural productivity throughout the region and how the agricultural sector will transform through 2050. While we evaluate seven crops in detail, we note the key role that maize plays for the region, and we assess -- considering the regional and global impact of climate change -- how the role of maize will change over time and whether the change will be rapid enough to shift regional agriculture into a more vibrant sector. We find that while the relative importance of maize to farmers in the region will decline, out to 2050 maize will remain the dominant crop. Additional policies and investments will need to be implemented if the goal is to hasten the transition to higher value or more nutritious crops. |
| Keywords: | bioeconomic models; climate change; maize; crop modelling; agricultural production; modelling; climate models |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2239&r=env |
| By: | Clemens Fuest; Andrei Marcu; Michael Mehling |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:econpr:_48&r=env |
| By: | Costa, Francisco J M (FGV EPGE Brazilian School of Economics and Finance); Szerman, Dimitri; Assunção, Juliano |
| Abstract: | This paper estimates the impacts of ten recently built hydroelectric power plants in the Brazilian Amazon on deforestation. Using the inventory of all sites with hydropower potential yet undeveloped, we apply the synthetic control method to estimate the causal impact of each power plant on forest loss. Overall, the construction of the ten plants contributed to 21 percent of the observed forest loss within a 50-kilometer radius of the construction site. Notably, this impact is solely attributed to four plants. In at least three of these plants, construction licenses were granted despite technical recommendations against them. In contrast, the remaining plants, which received technical clearance from the environmental agency, have negligible effects. These findings highlight the effectiveness of robust environmental regulations and underscore their vulnerability to high-level political interference. |
| Date: | 2024–02–29 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:6y7vk&r=env |
| By: | Grundmann, Justus; Silberbach, Anna; Auria, Laura |
| Abstract: | Carbon taxation is currently one of the most salient risks with respect to the transition to a low carbon economy for European enterprises. Although there are ample scientific studies that analyse the economic effect on a macro scale (climate stress tests etc.), there is not much literature to be found at a granular level. The present exercise aims at analysing the potential financial risks resulting from a carbon intensive production conveyed through an increased tax burden. It is based on the idea of scenario analysis and uses the European Emissions Trading System (EU ETS) as a data source. The EU ETS also serves in a broader sense as a stance for the institutional framework that is assumed in the exercise. The developed model delivers a stressed probability of default estimated at the company level on the basis of the individual financial ratios. It can serve as a tool in different ways: It can up-date the rating relevant balance sheet information to a more current state and is thus helpful in the operative rating business, when political and economic developments are dynamic or include turning-points. It can be extended beyond the EU ETS data to explore hypothetical scenarios and long term prospects, too. Carbon intensive production will very likely be in the focus of transition enforcing policy measures in the coming years. The respective enterprises will most likely be required to change their business and/or production model. So the outcome of adverse hypothetical scenarios can be interpreted as measure of the structural pressure to adapt and its impact on the creditworthiness of the company. The paper will outline the developed methodology and present some results for German enterprises. |
| Keywords: | carbon taxation risk, climate change risk, transition risk, (in-house) credit assessment, scenario analysis, EU ETS |
| JEL: | E50 E58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubtps:283346&r=env |
| By: | Macdonald, Kate; Diprose, Rachel; Grabs, Janina; Schleifer, Philip; Alger, Justin; Cashore, Benjamin William; Cisneros, Paúl; Delgado Pugley, Deborah; Garrett, Rachael; Hopkinson, William |
| Abstract: | Jurisdictional approaches (JAs) have emerged over the past decade as a significant mode of sustainable commodity governance, particularly in tropical forest countries. JAs are characterized by multistakeholder initiatives with substantial government involvement, aiming to integrate environmental, social, and economic objectives in land use management within territorial jurisdictions. Often framed as a progression beyond certification-based approaches, JAs offer a complementary strategy to supply chaindriven initiatives. Despite their novelty in the voluntary sustainability standards (VSS) context, JAs draw on longstanding policy agendas by governments and previous conservation efforts. Built upon initiatives like the United Nations' REDD+, contemporary JAs represent a convergence of different governance practices. This paper aims to provide conceptual clarity and a critical analysis of JAs, drawing on a global cross-commodity review of academic literature and policy publications. Five key themes are identified: conceptual analysis of JAs, inclusion and participation, the influence of social and political contexts, interactions with external governing institutions, and an assessment of impact and effectiveness. The synthesis highlights the flexibility of JAs and the diverse interpretations within the literature. The paper concludes with policy implications and avenues for future research, emphasizing the need for a nuanced understanding of JAs' potential contribution to sustainability governance. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:sgscdp:284370&r=env |
| By: | Könneke, Jule; Adolphsen, Ole |
| Abstract: | The outcome of the 28th UN Climate Change Conference shows that international cooperation remains possible despite today's challenging geopolitical situation. Instead of the feared blockade, an agreement was reached for the first time - some three decades after the start of the COP process - to move away from fossil fuels in energy systems. Overall, the steps agreed in Dubai are a compromise that sends a political signal short of what is necessary from a scientific perspective. On the one hand, international climate cooperation continues to be characterized by traditional conflicts between developing countries and industrialized nations (issues of global justice, financial commitments), with new trade tensions and what at times amounted to an obstructionist attitude among a handful of countries compounding the difficulties. On the other hand, dynamic North-South coalitions have formed in the negotiation tracks on 'loss and damage' and the global energy transition. These must be further strengthened as the starting point for lasting alliances against fossil fuel interests. German climate foreign policy can make an important contribution by undertaking consistent diplomatic efforts to implement structural reforms of the international financial system and by offering attractive partnerships. |
| Keywords: | World Climate Conference, COP28, Global North, Global South, Russia's war of aggression against Ukraine, energy security, Global Stocktake (GST), nationally determined contributions (NDCs), carbon border adjustment mechanism (CBAM), Intergovernmental Panel on Climate Change (IPCC) |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpcom:284703&r=env |
| By: | Immanuel Feld (University of Warwick & Bonn and affiliated with CEPR, CAGE, NIESR, ECONtribute, Grantham Institute); Thiemo Fetzer (Warwick University) |
| Abstract: | Climate action requires significant public- and private sector investment to achieve meaningful reductions in carbon emissions. This paper documents that large-scale austerity, coupled with barriers to flows of data and a lack of (digital) skills in (local) government, may have been a significant barrier to delivering climate action in the form of retrofitting. Decomposing heterogeneity in esti-mated treatment effects of a large-scale energy efficiency savings program that was rolled out through a regression discontinuity design in the early 2010s, we find that both the extent of austerity-induced local budget cuts and poor digital connectivity – may be responsible for up to 30% fewer retrofit installations that counterfactually would have taken place had it not been for austerity. |
| Keywords: | state capacity, austerity, skills, climate action, public economics |
| JEL: | Q54 Q58 H76 C21 O33 R11 H54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:281&r=env |
| By: | Abebe, Meseret B.; Alem, Yonas |
| Abstract: | Climate change is making El Niños more frequent and intense. Therefore, understanding the effects of El-Niño-induced climatic events is essential to designing effective coping and adaptation strategies. We identify the impact of the 2015-16 El-Niño-induced large-scale drought on smallholder farmers' livestock holding and milk production using nationally representative data collected before and after the drought. We show that drought reduced milk production and livestock holding by 25.8% and 8.4%, respectively. Heterogenous impact analysis suggests that asset-rich households sold livestock and financed feed purchases, which insulated their milk production from the drought. In contrast, asset-poor households kept their livestock despite the severe drought and absorbed all the decline in milk production. Our findings have important implications for formulating safety net and adaptation programs targeting smallholder farmers and the livestock sector in a rapidly changing climate. |
| Abstract: | Durch den Klimawandel werden El Niños immer häufiger und intensiver. Es ist wichtig, die Auswirkungen der El-Niño-Ereignisse zu verstehen, um wirksame Bewältigungs- und Anpassungsstrategien zu entwickeln. Wir ermitteln die Auswirkungen der durch El Niño verursachten großen Dürre 2015-16 auf den Viehbestand und die Milchproduktion von Kleinbauern anhand national repräsentativer Daten, die vor und nach der Dürre erhoben wurden. Wir zeigen, dass die Dürre die Milchproduktion und den Viehbestand um 25, 8 % bzw. 8, 4 % verringerte. Die Analyse der heterogenen Auswirkungen zeigt, dass vermögensstarke Haushalte ihren Viehbestand verkauften und damit den Kauf von Futtermitteln finanzierten, was ihre Milchproduktion Milchproduktion vor der Dürre schützte. Im Gegensatz dazu behielten die vermögensarmen Haushalte ihren Viehbestand trotz der schweren Dürre bei und fingen den gesamten Rückgang der Milchproduktion auf. Unsere Ergebnisse haben wichtige Implikationen für die Formulierung von Sicherheitsnetz- und Anpassungsprogrammen für Kleinbauern und den Viehzuchtsektor in einem sich rasch verändernden Klima. |
| Keywords: | Drought, diff-in-diff, climate change, smallholder farmer, livestock holding |
| JEL: | D13 O13 O44 Q18 Q54 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:284396&r=env |
| By: | Felix Dammann; Giorgio Ferrari |
| Abstract: | This paper proposes and analyzes a stationary equilibrium model for a competitive industry which endogenously determines the carbon price necessary to achieve a given emission target. In the model, firms are identified by their level of technology and make production, entry, and abatement decisions. Polluting firms are subject to a carbon price and abatement is formulated as an irreversible investment, which entails a sunk cost and results in the firms switching to a carbon neutral technology. In equilibrium, we identify a carbon price and a stationary distribution of incumbent, polluting firms, that guarantee the compliance with a certain emission target. Our general theoretical framework is complemented with a case study with Brownian technology shocks, in which we discuss some implications of our model. We observe that a carbon pricing system alongside installation subsidies and tax benefits for green firms trigger earlier investment, while higher income taxes for polluting firms may be distorting. Moreover, we discuss the role of a welfare maximizing regulator, who, by optimally setting the emission target, may mitigate or revert some parameters' effects observed in the model with fixed limit. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.16401&r=env |
| By: | Chi Kong Chyong; David M. Reiner; Rebecca Ly; Mathilde Fajardy |
| Keywords: | Combined-cycle gas turbines, carbon capture and storage, unit-commitment models, optimisation, flexible carbon capture, solvent storage |
| JEL: | C61 Q47 Q48 Q52 Q55 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2308&r=env |
| By: | Altenburg, Tilman; Pegels, Anna; Böhl Gutierrez, Mauricio; Brandi, Clara; Fuhrmann-Riebel, Hanna; Jauregui Fung, Franco; Malerba, Daniele; Never, Babette; Stamm, Andreas; Strohmaier, Rita; Volz, Ulrich |
| Abstract: | While polluting industries are still flourishing, the green economy is on the rise. In low- and middle-income countries, the resulting opportunities are mostly underexplored. The Federal Ministry for Economic Cooperation and Development (BMZ)'s new strategy for 'Sustainable economic development, training and employment' shifts gears towards a green and inclusive structural transformation, recognising that only a just transition approach with credible co-benefits for societies can gain societal acceptance (BMZ, 2023). It is now essential to provide evidence of how a greener economy can offer direct economic benefits to national economies and the majority of their citizens. Ongoing cooperation portfolios need to be adjusted to this new and timely orientation in the BMZ's core strategy. We suggest focusing on the following six areas: Eco-social fiscal reform should be a priority area in at least 15 of the over 40 partner countries with whom Germany cooperates on 'sustainable economic development', systematically linking revenues from pricing pollutions to pro-poor spending. Development policy should promote inclusive green finance (IGF) through market-shaping policies, such as an enabling regulatory framework for the development of digital IGF services and customer protection in digital payment services. It should also build policymakers' capacity in developing IGF policies and regulation. Support in the area of sustainable, circular con-sumption should focus on eco-design, and repair and reuse systems. It should build systems design capa-cities and behavioural knowledge, to integrate con-sumers in low-carbon and circular industry-consumer systems. This will need new collaborations with actors shaping systems of consumption and production, for instance with supermarkets or the regulators of eco-design guidelines. Germany should strategically support national hydro-gen strategies, including a just transition approach and prioritising green over other 'colours' of hydrogen. This means strengthening industrial policy think tanks, technology and market assessment agencies, technology-related policy advice as well as skills development, and exploring distributive mechanisms to spread the gains and ensure societal acceptance. Sustainable urbanisation should be a more explicit priority, given its potential for job creation and enterprise development. This means supporting partners in integrating land-use, construction and mobility planning for compact, mixed-use neighbourhoods, and anti-cipating green jobs potential and skills required within cities. Lastly, Germany should support green industrial policy and enlarge policy space in trade rules by promoting the core institutions of industrial policy, for example, technology foresight agencies, coordinating platforms for industry upgrading, and policy think tanks, and working towards reforms of the trading system, such as rules to allow clearly defined green industrial subsidies, preferential market access for green goods and services from low-income countries, or technology transfer. It is evident for all areas that the challenges in low- and middle-income countries will differ from those in high-income countries. It is, therefore, imperative that successful programmes are co-developed with local partners. A just green transition that harvests benefits beyond a healthier environment and is supported by societies will then be achievable. |
| Keywords: | Green industrial policy, structural transformation, development policy, green growth, green finance, eco-social fiscal reform, sustainable cities, sustainable consumption, green trade, green hydrogen |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:idospb:284723&r=env |
| By: | Klaus Desmet; Esteban Rossi-Hansberg |
| Abstract: | With average temperature ranging from -20°C at the North Pole to 30°C at the Equator and with global warming expected to reach 1.4°C to 4.5°C by the year 2100, it is clear that climate change will have vastly different effects across the globe. Given the abundance of land in northern latitudes, if population and economic activity could freely move across space, the economic cost of global warming would be greatly reduced. But spatial frictions are real: migrants face barriers, trade and transportation are costly, physical infrastructure is not footloose, and knowledge embedded in clusters of economic activity diffuses only imperfectly. Thus, the economic cost of climate change is intimately connected to these spatial frictions. Building on earlier integrated assessment models that largely ignored space, in the past decade there has been significant progress in developing dynamic spatial integrated assessment models (S-IAMs) aimed at providing a more realistic evaluation of the economic cost of climate change, both locally and globally. This review article discusses this progress and provides a guide for future work in this area. |
| JEL: | F1 Q5 R0 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32197&r=env |
| By: | Warnes, Xavier Sebastian (Stanford U); de Zegher, Joann F. (MIT); Iancu, Dan A. (Stanford U); Plambeck, Erica (Stanford U) |
| Abstract: | Tropical deforestation for agriculture causes alarming CO2 emissions and loss of biodiversity and ecosystem services. To prevent this, various governments and multinational commodity-buyers offer a positive incentive for locals conditional on no deforestation in a specified area. As an alternative to the area no-deforestation condition, we propose a weaker "regeneration condition": if forest is cleared on land in the specified area, locals prevent its economic use, enabling the forest to regenerate. With innovation in cooperative game theory, we characterize the best condition (area no-deforestation vs. area regeneration) and feasible incentives to prevent deforestation and to compensate each local for his missed economic opportunity. The regeneration condition is best in an area with the potential for entrants to engage in deforestation. Without entrants, if locals can cooperate, the area no-deforestation condition is best, and works with any incentive that is more valuable for locals collectively than deforestation. By surveying smallholder palm farmers in 58 villages of East Kalimantan, Indonesia, we fit our model with a price premium for palm fruit as the incentive, in each village as the area. A price premium is an imperfect incentive, having least value for a farmer with the least land and, correspondingly, high temptation to engage in deforestation. The Roundtable on Sustainable Palm Oil (RSPO) price premium is too low. Still, with a moderate price premium, our area regeneration condition prevents deforestation in most villages and is remarkably robust to deter potential entrants. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:4143&r=env |
| By: | - |
| Abstract: | Climate change is a key issue on the parliamentary agenda in Latin America and the Caribbean, and its proper management can boost economic development and foster social inclusion in the region. Legislators belonging to the Parliamentary Observatory on Climate Change and Just Transition (OPCC) therefore requested their parliamentary teams, under the supervision of the Economic Commission for Latin America and the Caribbean (ECLAC) office in Brasilia, to prepare this document, which analyses the framework legislation on climate change in eight countries, selected according to criteria of diversity and representation in OPCC —Argentina, Brazil, Chile, Colombia, Costa Rica, Guatemala, the Plurinational State of Bolivia and Uruguay— and highlights some good practices that offer opportunities for improvement. One of the conclusions drawn from a comparative analysis is that this type of legislation is generally enacted with a broad consensus, evolves over time, and tends to regulate institutional frameworks for climate policy and the economic aspects of climate change management. However, other elements appear less frequently, such as mitigation targets or comprehensive approaches to just transition strategies. |
| Date: | 2024–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68878&r=env |
| By: | Harstad, Bard (Stanford U); Storesletten, Kjetil (U of Minnesota Twin Cities) |
| Abstract: | This project analyzes how a political incumbent can be motivated to conserve rather than exploit a depletable resource. This political economy problem is relevant for tropical deforestation as well as for other environmental problems. It is shown that the larger is turnover of policymakers (e.g., because of political instability), the more the principal benefits from conservation by lending compared to flow payments (in return for lower deforestation). Conservation by lending exploits the political incumbent's impatience (and time inconsistency) by offering a loan with repayments that are contingent on the forest cover. |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:4120&r=env |
| By: | David Webbe-Wood; William J. Nuttall; Nikolaos K. Kazantzis; Chi Kong Chyong |
| Keywords: | Uncertainty, investment decisions, blue hydrogen, carbon capture and storage under uncertainty, real options, Monte-Carlo simulation |
| JEL: | D81 G11 Q40 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2309&r=env |
| By: | Frost, Margaret; Kim, Sangeun; Scartascini, Carlos; Zamora, Paula; Zechmeister, Elizabeth J. |
| Abstract: | Political trust is foundational to democratic legitimacy, representative governance, and the provision of effective public policy. Various shocks can influence this trust, steering countries onto positive or negative trajectories. This study examines whether natural disasters can impact general political trust and if disaster relief efforts can mitigate these effects. We investigate the relationships between disaster, trust, and aid using novel survey data collected before and after a 7.1-magnitude earthquake struck Mexico City in September 2017. Our findings reveal that the disaster resulted in an 11% decrease in general political trust. Additionally, we demonstrate that geographical proximity to disaster relief efforts may counterbalance this decline in trust. This study contributes to the scholarship on the politics of disasters and offers policy implications, highlighting the role of disaster assistance in potentially restoring general political trust after a disaster. |
| Keywords: | Political trust;Natural Disaster;Natural experiment;Aid relief;Development |
| JEL: | H84 D72 Q54 Z13 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13363&r=env |
| By: | Shangen Li |
| Abstract: | Does a more transparent climate disclosure policy induce lower emissions? This paper analyzes the welfare consequences of transparency in corporate disclosure regulation in an environment in which regulatory disclosure constitutes the sole avenue for the verification of a firm's emissions. On the one hand, a potential trade-off between disclosure transparency and externality suggests a non-monotonic relationship between them. On the other hand, increased transparency never makes the firm worse off. Consequently, mandating full disclosure is no different from maximizing the firm's private benefit while disregarding the ensuing externality. When the regulator is symmetrically informed about the firm's energy efficiency level, transparency beyond binary disclosure does not lead to welfare improvements. In the presence of information asymmetry, the welfare-maximizing disclosure takes a threshold form: all emissions above the threshold are pooled together, whereas all emissions below are fully disclosed. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.11961&r=env |
| By: | Philippe Quirion (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: | All public policy tools designed to promote ecological transition have distributional effects, i.e. they do not affect social groups in the same way, particularly the rich and the poor. This article examines the causes of these distributive effects. The most relevant distinction is not between economic and regulatory tools, but between those that target newly marketed goods and services and those that target all existing goods and services; the latter have a much more marked distributive effect. Neutralizing these effects requires detailed studies that take into account not only household income, but also a whole range of socio-economic characteristics. |
| Abstract: | Les outils économiques pour favoriser la transition écologique et leurs effets distributifs Philippe Quirion-directeur de recherche au CNRS, CIRED Qu'elles soient de nature réglementaire ou économique (taxes, quotas d'émission échangeables), les politiques publiques pour la transition écologique ont un impact différencié selon les groupes sociaux en termes d'émissions polluantes, de prix des biens de consommation ou encore d'emploi. Pour corriger ces inégalités, ces politiques doivent être assorties de compensations et prendre en compte la vulnérabilité multi-factorielle des populations. |
| Date: | 2022–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04457612&r=env |
| By: | Adeline Gu\'eret; Wolf-Peter Schill; Carlos Gaete-Morales |
| Abstract: | Electrifying the car fleet is a major strategy for mitigating greenhouse gas emissions in the transport sector. However, electrification alone will not solve all the negative externalities associated with cars. In light of other problems such as street space as well as concerns about the use of mineral resources for battery electric cars, reducing the car fleet size would be beneficial, particularly in cities. Carsharing could offer a way to reconcile current car usage habits with a reduction in the car fleet size. However, it could also reduce the potential of electric cars to align their grid interactions with variable renewable electricity generation. We investigate how electric carsharing may impact the power sector in the future. We combine three open-source quantitative methods, including sequence clustering of car travel diaries, a probabilistic tool to generate synthetic electric vehicle time series, and an optimization model of the power sector. For 2030 scenarios of Germany with a renewable share of at least 80%, we show that switching to electric carsharing only moderately increases power sector costs. In our main setting, carsharing increases yearly power sector costs by less than 100 euros per substituted private electric car. This cost effect is largest under the assumption of bidirectional charging. It is mitigated when other sources of flexibility for the power sector are considered. Carsharing further causes a shift from wind power to solar PV in the optimal capacity mix, and may also trigger additional investments in stationary electricity storage. Overall, we find that shared electric cars still have the potential to be operated largely in line with variable renewable electricity generation. We conclude that electric carsharing is unlikely to cause much damage to the power sector, but could bring various other benefits, which may outweigh power sector cost increases. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.19380&r=env |
| By: | Maris, Robbie (Centre for Education Policy and Equalising Opportunities, University College London (UCL)); Zack, Dorner (Department of Environmental Management, Lincoln University); Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | Shifting individual behaviour is an important tool for addressing environmental issues and there is a wide literature evaluating interventions to encourage pro-environmental behaviour. One important but under-researched area is the effect of combining interventions to affect behaviour. In this paper, we evaluate the effects of two interventions – monetary incentives and nudges – on nature restoration volunteering. We use a two-by-two treatment design to evaluate the individual and combined effects of the interventions in a field experiment setting. We find that the monetary incentive significantly increases volunteering behaviour, despite concerns incentives may crowd out motivation, but that nudging alone is ineffective at shifting behaviour. However, there are considerable positive synergies between the monetary incentive and nudge. The monetary incentive becomes more than twice as effective when it is combined with a nudge. We find support for our theoretical prediction that this synergy arises because the nudge reduces motivational crowding out effects from the incentive. Our results have important policy implications, showing that concerns around motivation crowding out from monetary incentives could be mitigated by simple, low-cost nudges. |
| Keywords: | Field experiment; incentive; nature restoration; nudge; PEB; pro-environmental behaviour; synergy; volunteering |
| JEL: | C93 D91 Q57 |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0842&r=env |
| By: | Chung Yi See; Vasco Rato Santos; Lucas Woodley; Megan Yeo; Daniel Palmer; Shuheng Zhang; Ashley Nunes |
| Abstract: | Although electric vehicles are less polluting than gasoline powered vehicles, adoption is challenged by higher procurement prices. Existing discourse emphasizes EV battery costs as being principally responsible for this price differential and widespread adoption is routinely conditioned upon battery costs declining. We scrutinize such reasoning by sourcing data on EV attributes and market conditions between 2011 and 2023. Our findings are fourfold. First, EV prices are influenced principally by the number of amenities, additional features, and dealer-installed accessories sold as standard on an EV, and to a lesser extent, by EV horsepower. Second, EV range is negatively correlated with EV price implying that range anxiety concerns may be less consequential than existing discourse suggests. Third, battery capacity is positively correlated with EV price, due to more capacity being synonymous with the delivery of more horsepower. Collectively, this suggests that higher procurement prices for EVs reflects consumer preference for vehicles that are feature dense and more powerful. Fourth and finally, accommodating these preferences have produced vehicles with lower fuel economy, a shift that reduces envisioned lifecycle emissions benefits by at least 3.26 percent, subject to the battery pack chemistry leveraged and the carbon intensity of the electrical grid. These findings warrant attention as decarbonization efforts increasingly emphasize electrification as a pathway for complying with domestic and international climate agreements. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.00458&r=env |
| By: | M. Trabandt; W. Lasarov (Audencia Business School); G. Viglia |
| Abstract: | The tourism sector is actively exploring methods to reduce its adverse environmental impact. Our study introduces hedonic appeals as a novel approach to encourage guests to reduce their room cleaning requests. We contend that combining this approach with sustainable appeals is at least as effective as the previously identified most effective strategy, namely providing guests with financial incentives. The effectiveness of hedonic appeals is channeled through guest value creation. Our empirical evidence – involving a field experiment at a European hotel and a lab experiment – supports the proposed effects and explanation mechanisms. We also demonstrate that our new strategy is the most profitable by introducing a profitability index that considers room cleaning requests, monetary investments, and side effects. We therefore recommend hotels to adopt this cost-effective strategy to reduce room cleaning requests without affecting overall guest satisfaction. |
| Keywords: | Sustainable tourism, Field experiment, Room cleaning practices, Hedonic appeals, Financial incentives, Sustainable appeals, Guest value, Guest behavior |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04464032&r=env |
| By: | Billio, Monica; Fitzpatrick, Aoife Claire; Latino, Carmelo; Pelizzon, Loriana |
| Abstract: | In this study, we unpack the ESG ratings of four prominent agencies in Europe and find that (i) each single E, S, G pillar explains the overall ESG score differently, (ii) there is a low co-movement between the three E, S, G pillars and (iii) there are specific ESG Key Performance Indicators (KPIs) that are driving these ratings more than others. We argue that such discrepancies might mislead firms about their actual ESG status, potentially leading to cherry-picking areas for improvement, thus raising questions about the accuracy and effectiveness of ESG evaluations in both explaining sustainability and driving capital toward sustainable companies. |
| Keywords: | ESG Investing, ESG ratings, Asset Allocation, Portfolio Management, Sustainable Finance |
| JEL: | M14 G24 G11 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:284398&r=env |
| By: | Yener Altunbas (Bangor University); Xiaoxi Qu (Bangor University); John Thornton (University of East Anglia) |
| Abstract: | We present and estimate a Bernanke et al. (1999)-type dynamic general equilibrium model modified to allow the authorities to use monetary and fiscal policy to shape bank behavior in support of climate goals. In the model, central bank refinancing and reserve requirements are employed to support bank lending for environmentally friendly projects at lower rates of interest than for other projects. At the same time, fiscal policy supports green bank lending through loan guarantees, which also reduces the relative cost of borrowing by green firms. Under reasonable parameters of the model, rediscount lending is shown to be the most effective policy tool for directing bank lending to support climate goals |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:310&r=env |
| By: | Catherine Laroche-Dupraz (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST) |
| Abstract: | Conclusions and perspectives of the Carrefour de l'innovation agronomique sur la PAC, 2023, Rennes. The 2023 reform of the Common Agricultural Policy (CAP) has introduced greater subsidiarity for Member States, who are now responsible for drawing up their own National Strategic Plans (NSP), in line with their national priorities, but with a commitment to contributing to European objectives. At French level, there is a tension between two objectives that are difficult to reconcile in the implementation of the CAP: maintaining income support for farmers on the one hand, and supporting the agro-ecological transition of farms on the other. The compromise reached clearly prioritizes securing incomes for existing farmers, but casts doubt on the ability to achieve the objectives of the Green Pact. To be more effective in achieving the sustainability objectives of European agriculture, the post-2027 CAP will have to consider not only how to secure installations and transitions to production systems consistent with the objectives, but also give clear signals to encourage the transition of European diets. |
| Abstract: | Conclusions et perspectives du Carrefour de l'innovation agronomique sur la PAC, 2023, Rennes. La réforme de la Politique agricole commune (PAC) 2023 a apporté une plus grande subsidiarité des Etats Membres , en charge de construire eux-mêmes leur Plan Stratégique National (PSN), en lien avec leurs priorités nationales, mais en engageant leur Etat dans la contribution aux objectifs européens. Au niveau français, on a bien une tension entre deux objectifs difficiles à concilierdans la mise en œuvre de la PAC : le maintien du soutien au revenu des agriculteurs d'une part, et le soutien de la transition agro-écologique des exploitations d'autre part. Le compromis auquel on aboutit est clairement priorisé sur la sécurisation du revenu des agriculteurs en place, mais amène à douter de la capacité à atteindre les objectifs du pacte vert. Pour gagner en efficacité pour l'atteinte des objectifs de durabilité de l'agriculture européenne, la PAC post-2027 devra envisager non seulement la sécurisation des installations et des transitions vers des systèmes de production cohérents avec les objectifs, mais aussi donner des signaux clairs pour favoriser la transition des régimes alimentaires européens. |
| Keywords: | PAC, transition agroécologique, plan stratégique national, Grean Deal |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04467630&r=env |
| By: | Natsuko Toba; Tooraj Jamasb; Luiz Maurer; Anupama Sen |
| Keywords: | Renewable energy, solar power, battery storage, auction design |
| JEL: | D0 D4 D8 L0 L1 L9 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2312&r=env |
| By: | Jan K. Brueckner; Matthew E. Kahn; Jerry Nickelsburg |
| Abstract: | The durability of the transportation capital stock slows down the pace of decarbonization since newer vintages feature cutting-edge technology. If older vintages were to be retired sooner, the social cost of travel would decline. This paper analyzes and explores the viability of a potential cash-for-clunkers program for the airline industry, which would help to hasten decarbonization of US aviation. Our estimation and calculations show that airlines can be induced to scrap rather than sell older planes upon retirement with a payment that is less than the forgone carbon damage, yielding net social benefits. |
| JEL: | Q54 R49 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32205&r=env |
| By: | Baikie, Victoria (Monash University) |
| Abstract: | This paper analyses how income inequality changes through the clean energy transition. Gini Coefficients are used to present overall changes in inequality over the chosen time period. Influences of rooftop solar and electrification are considered in this report as the literature suggests there is unequal access to these technologies. Key findings suggest the energy transition contributes to an overall decline in inequality from 2023 to 2050 and energy prices become cheaper. Larger proportion of households with solar, reduces the burden of high energy prices. However, the fall in inequality is shown to not be equal across all income brackets with the lowest two brackets declining the least. In the data, the gap between the highest and lowest income brackets remains prevalent at the point of Net Zero. |
| Keywords: | Energy Transition ; Income Inequality ; Solar ; Energy Prices JEL classifications: P28 ; Q43 ; Q58 ; O15 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:wrkesp:71&r=env |
| By: | Elisabeth Christen |
| Abstract: | In Ergänzung zum reformierten EU-Emissionshandelssystem stellt der EU-Grenzausgleich einen zentralen Baustein dar, um internationale Unterschiede in den Klimaambitionen und in der Bepreisung von CO2-Emissionen auszugleichen und eine klimaneutrale EU bis 2050 zu erreichen. Mit dem Instrument setzt sich die EU zum Ziel, die Wettbewerbsfähigkeit europäischer Produzenten trotz verschärfter EU-Klimaziele und steigender CO2-Kosten zu sichern und das Risiko von Carbon Leakage, die Verlagerung von Emissionen in Länder mit weniger strengen Emissionsvorschriften, zu vermindern. Die Modellsimulationen der Studie "Trade and Welfare Effects of New Trade Policy Instruments" zeigen, dass ein klimapolitischer Alleingang der EU nur ein sehr begrenztes Potenzial zur Verringerung der globalen Emissionen aufweist und moderate Wohlstandseinbußen mit sich bringt. Im Gegensatz dazu erzielt eine klimapolitische Kooperation die größten globalen Emissionsminderungen und schafft durch Vermeidung von Klimafolgekosten Wohlfahrtsgewinne. Ein gemeinsamer Klimaklub der EU mit den USA, dem Vereinigten Königreich, Kanada und Japan senkt die globalen Emissionen um 14, 8%, dies entspricht einer jährlichen Reduzierung der CO2-Emissionen um 5, 46 Mrd. t. |
| Date: | 2024–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:rbrief:y:2024:i:2&r=env |
| By: | Bernard Gazier (Centre d'Economie de la Sorbonne); Frédéric Bruggeman (Ex-expert auprès des comités d'entreprise) |
| Abstract: | This paper aims at sketching what should be, in terms of actors, objects and structures, the evolution of the existing social dialogue in order to contribute to triggering and managing the radical changes needed in the field of environment. Our elaboration takes place in a context of little, if any, existing reflection on the connection between the functionning of the labour markets and the urgent changes needed in production and consumption, beyond the so-called "green" or "greening" jobs and the idea of a corporate social and environmental responsibility. We proceed in three steps. We start from the French situation and briefly asset recent changes (1), then introduce a normative theoretical perspective: the "Transitional Labour Markets" (TLM). Their aim is to build and structure collective capacities of transition and projects in the field of work and employment (2). Last, we discuss major changes in terms of coordination and bargaining targets and levers, in order to yield foundations to a renewed social dialogue, able to actively support public policy efforts and initiatives from the citizens (3) |
| Keywords: | Social dialogue; Ecological transition; scarcity; labour market; quality of work |
| JEL: | J22 J24 J50 J62 J80 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:24002&r=env |
| By: | Thomaßen, Georg; Bruckner, Thomas |
| Abstract: | This paper investigates market-based decarbonization, driven by carbon pricing, and under different regulatory settings. These consist of a conventional energy-only market (EOM), an EOM with operating reserve demand curve (ORDC) and a capacity market (CM). We find that contrary to previous research findings, all markets produce conclusive market outcomes in all stages of decarbonization, as flexible technologies create market signals that ensure the economic viability of renewables. This is relevant for systems that rely on carbon pricing, but also for those relying on out-of-the-market measures to deploy renewables, as it implies that markets can be deregulated again later if carbon prices are sufficiently high. All three regulatory scenarios further achieve close-to-optimal market outcomes, if they are calibrated well. The outcome in CMs, however, is especially prone to suboptimal configurations, relying on several design parameters, which are commonly deducted from weather data and system projections. Varying only one of these parameters induced large changes in the observed generation mix. ORDCs provided more stable results, even if the input parameters differed strongly from optimal values. We therefore recommend to rely on ORDCs to maintain resource adequacy, as they appear to produce lower costs and interfere less with the general market dynamics than CMs. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iirmco:285121&r=env |
| By: | John C. Whitehead; Alicia Louis Cornicelli; Lisa Bragg; Rob Southwick |
| Abstract: | We use the contingent valuation method in a survey of Great Lakes anglers to estimate the willingness to pay for a Great Lakes recreational fishing trip. Employing various assumptions and models, we find that the willingness to pay for a trip ranges from $54 to $101 ($2020). We then combine the willingness to pay per trip estimates with an estimate of the number of trips and find that the aggregate economic value of Great Lakes fishing trips in the U.S. is $611 million. We conduct a sensitivity analysis over the estimates of willingness to pay and the number of trips and estimate that the 90% confidence interval around the mean estimate of $632 million is ($182.5, $1, 553) million. Key Words: Economics, Recreational fishing, Willingness to pay |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:24-11&r=env |
| By: | - |
| Abstract: | El cambio climático es un tema clave de la agenda parlamentaria de América Latina y el Caribe, y su gestión adecuada puede contribuir a incrementar el desarrollo económico y la inclusión social en la región. Por ello, los legisladores y legisladoras pertenecientes al Observatorio Parlamentario de Cambio Climático y Transición Justa (OPCC) encomendaron a sus equipos parlamentarios, bajo la supervisión de la oficina de la Comisión Económica para América Latina y el Caribe (CEPAL) en Brasilia, la elaboración de este documento, en el que se analiza la legislación marco en materia de cambio climático de ocho países, seleccionados según criterios de diversidad y representación en el OPCC —Argentina, Brasil, Bolivia (Estado Plurinacional de), Chile, Colombia, Costa Rica, Guatemala y Uruguay— y se destacan algunas buenas prácticas que ofrecen oportunidades de mejora. Entre las conclusiones surgidas del análisis comparado, cabe subrayar que este tipo de legislación habitualmente se promulga con un amplio consenso y evoluciona con el tiempo, y que se tiende a regular la institucionalidad climática y los aspectos económicos de la gestión del cambio climático, pero no tanto otros elementos como la fijación de metas de mitigación o el abordaje integral de las estrategias de transición justa. |
| Date: | 2024–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68877&r=env |
| By: | Nicholas Gohdes; Paul Simshauser; Clevo Wilson |
| Keywords: | PPAs, renewable energy, counterparty credit, project finance, cost of capital |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2306&r=env |
| By: | Geppert, Frauke; Krachunova, Tsvetelina; Bellingrath-Kimura, Sonoko Dorothea |
| Abstract: | In this study, we identified currently available digital and smart technologies for German agriculture and classified their applicability. We differentiated our findings by three categories and ten sub-categories, including complex systems for data collection, software- and hardware-based technologies with a total of 201 commercial technologies. Additionally, we took an inventory of the country-specific agricultural environmental impacts and conducted an online survey on the barriers and potentials of digital technologies in relation to sustainability, followed by an experts' dialogue with stakeholders from agriculture, policy, industry, research, and civil societies, and a literature review assessment. On this basis, we elaborated key recommendations for further actions that prevail barriers and promote potentials for a sustainable digitalisation in German agriculture. We also provided best-practice examples from other European countries. Our findings showed that policy actions are urgently needed to establish a broader use of digital and smart technologies for sustainability purposes in daily farm work. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:efisdi:284380&r=env |
| By: | Ivo Welch |
| Abstract: | Shared socioeconomic pathways (SSPs) are perhaps the most influential economic policy analyses today. My paper evaluates their development, natural associations, logical consequences, and economic identification. All five SSP baseline scenarios are predicting scenarios that historical time-series analysis would consider empirically highly implausible. This alternative — econometric time-series analysis based on worldwide IPAT components — suggests alternative emission scenarios, mapping into expected radiative forcing of about RCP 6.5, with a reasonable plausibility range from RCP 4.5 to RCP 7.0. |
| JEL: | Q54 Q55 Q56 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32178&r=env |
| By: | Bernard Gazier (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Frédéric Bruggeman (Auteur indépendant) |
| Abstract: | This paper aims at sketching what should be, in terms of actors, objects and structures, the evolution of the existing social dialogue in order to contribute to triggering and managing the radical changes needed in the field of environment. Our elaboration takes place in a context of little, if any, existing reflection on the connection between the functionning of the labour markets and the urgent changes needed in production and consumption, beyond the so-called "green" or "greening" jobs and the idea of a corporate social and environmental responsibility. We proceed in three steps. We start from the French situation and briefly asset recent changes (1), then introduce a normative theoretical perspective: the "Transitional Labour Markets" (TLM). Their aim is to build and structure collective capacities of transition and projects in the field of work and employment (2). Last, we discuss major changes in terms of coordination and bargaining targets and levers, in order to yield foundations to a renewed social dialogue, able to actively support public policy efforts and initiatives from the citizens (3). |
| Abstract: | Ce texte propose, à partir du cas français, d'esquisser ce que pourraient être, en termes d'ateurs, d'objets et de structures, les évolutions du dialogue social au service d'une bifurcation écologique. Il vise à combler l'absence de réflexion actuellement patente sur les liens entre l'organisation du marché du travail et les urgences de l'écologie, ces liens étant le plus souvent résumés par l'idée d'emplois " verts " ou " verdissants " et celle de la responsabilité sociale et environnementale des entreprises. La réflexion procédera en trois étapes. Tout d'abord, en partant du dialogue social existant, nous examinerons et questionnerons brièvement les évolutions en cours (1). Ensuite nous introduirons une approche théorique normative : les " Marchés Transitionnels du Travail " (MTT), visant à construire des capacités collectives pro-actives de transition et d'action dans les champs du travail de l'emploi (2). Enfin nous présenterons, en conséquence de cette approche, les changements d'objectifs et de leviers qui pourraient servir de base à un dialogue social renouvelé, concourant activement aux efforts des politiques publiques et aux initiatives citoyennes (3). |
| Keywords: | Social dialogue, Ecological transition, scarcity, labour market, quality of work |
| Date: | 2024–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-04490862&r=env |
| By: | Harstad, Bard (Stanford U) |
| Abstract: | International trade and natural resource exploitation interact in multiple ways. This paper first presents a dynamic game in which the South (S) exploits (e.g., deforests) in order to export (e.g., lumber or agricultural products). Because of negative externalities, the North might lose from trade, unless the resource has already been depleted. Anticipating this, S exploits more. All negative results are reversed if renegotiation-proof tariffs can be contingent on the size of the remaining resource stock. Larger gains from trade, and more attractive terms of trade, can be used to slow exploitation. Combined with export subsidies, the outcome is first best. |
| JEL: | F13 F18 F55 Q37 Q56 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:4127&r=env |
| By: | Michael A. Mehling |
| Keywords: | Supply-side approaches, fossil fuels, offset credits, political economy |
| JEL: | H23 O30 P18 Q54 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2314&r=env |
| By: | Serge Darolles (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Gaëlle Le Fol (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Yuyi He (CUHK - The Chinese University of Hong Kong [Hong Kong]) |
| Abstract: | We examine how the information contained in corporate social performance isincorporated into stock prices. Pastor et al. (2021) propose an equilibrium modelfocusing exclusively on the demand part coming from investors (discount rate story).They show that brown assets should have higher expected returns than green assetsbecause investors have green tastes. In line with theoretical model of Pedersen etal. (2021), Derrien et al. (2022) analyze how the impact of negative ESG news onfirms' future value, focusing exclusively on the expectations of futures sales (cashflows story). To understand the net effect of ESG on stocks returns, we must reconcilethe two stories and analyze the perception of customers and investors' green realinvestment of firms and the effects of their actions and interactions. Neither theory, nor empirical studies give a clear conclusion on the sign of the effect because they onlylook at one channel at a time. We decompose here the effect of "S" scores on expectedreturns via changes in institutional ownership, and show that the negative effect candisappear when allowing for both the cash flows and the discount rate parts in theempirical model. Finally, we show that "E", "S", and "G" qualities are not perceivedthe same by customers and investors changing the overall effect on stocks returns. |
| Date: | 2023–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04462749&r=env |
| By: | John C. Whitehead; Alicia Louis Cornicelli; Gregory Howard |
| Abstract: | We use stated preference methods to estimate willingness to pay to avoid reductions in recreational catch in Great Lakes fisheries. We compare willingness to pay estimates where uncertain “in favor” votes are recoded to “against” votes to an attribute non-attendance model that focuses on the policy cost attribute. We find that the two hypothetical bias models yield similar results. We estimate another attribute non-attendance model that also considers the scope of the policy and find that the scope elasticity is significantly underestimated in other models. The willingness to pay in this last model is higher than in the other models. Key Words: Attribute non-attendance, Hypothetical bias, Scope test, Willingess to pay |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:24-10&r=env |
| By: | Siegel, Jessica; Terstriep, Judith |
| Abstract: | Die Weltgemeinschaft erreicht aktuell nur 15 Prozent der 17 Ziele für nachhaltige Entwicklung (SDGs) im gesetzten Zeitplan. Hochschulen mit ihrem institutionellen Commitment und ganzheitlichem Verständnis nachhaltiger Entwicklung gelten als Schlüsselakteure und wichtige Multiplikatoren der nachhaltigen Transformationen in Regionen und können hieran etwas ändern. Um dieses Potenzial zur Wirkung zu bringen, gilt es seitens der Hochschulen strategische Schritte mit sichtbarer Wirkung einzuleiten, welche die regionalen Gegebenheiten und den Bedarf berücksichtigen und Transitionsprozesse begleiten. Der SDS4HEI Framework hilft, Synergien im regionalen Ökosystem zu schaffen, die positive Anreize bieten, transdisziplinäre Lösungen zu generieren, gemeinsam umzusetzen und eine "Kultur der Nachhaltigkeit" zu festigen. |
| Keywords: | Nachhaltigkeit, nachhaltige Entwicklung, Vereinte Nationen, Transformation, regionale Strategie, regionales Ökosystem, SDGs, Sustainable Development Goals, Hochschulen |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iatfor:284726&r=env |
| By: | van Tulder, Rob |
| Abstract: | Navigating sustainable FDI flows in a crisis-struck world presents a test of smart public-private alignment around a common agenda that goes beyond protectionist and risk-mitigation policies. Adhering to the principles-based frame of the SDG is - now more than ever - needed, but also increasingly feasible. This Perspective explains why and how. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:colfdi:284733&r=env |
| By: | David Nortes Martínez (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - BRGM - Bureau de Recherches Géologiques et Minières (BRGM) - IRD - Institut de Recherche pour le Développement - AgroParisTech - 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); Frédéric Grelot (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - BRGM - Bureau de Recherches Géologiques et Minières (BRGM) - IRD - Institut de Recherche pour le Développement - AgroParisTech - 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); Pauline Brémond (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - BRGM - Bureau de Recherches Géologiques et Minières (BRGM) - IRD - Institut de Recherche pour le Développement - AgroParisTech - 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); Stefano Farolfi (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - BRGM - Bureau de Recherches Géologiques et Minières (BRGM) - IRD - Institut de Recherche pour le Développement - AgroParisTech - 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); Juliette Rouchier (LAMSADE - Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Floods can severely disrupt agricultural activities. When these activities are part of production chains, domino effects can occur. We use agent‐based modeling to simulate the production dynamics of a French cooperative winery as an example of a production chain, adopting a dual individual‐collective perspective. The cash‐flow analysis shows that there are nonexplicit mechanisms in the cooperative organization that allow the propagation of flood impacts throughout the chain and influence the winegrowers' ability to cope, thus threatening the continuity of the winegrowers' activity and the cooperative winery itself. |
| Keywords: | agricultural cooperative, cashflow analysis, flood damage, vulnerability |
| Date: | 2024–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04443707&r=env |
| By: | Sergio L. Franklin Jr.; Robert S. Pindyck |
| Abstract: | Forestation is viewed as an important means of removing CO₂ from the atmosphere and thereby reducing net CO₂ emissions. But how much CO₂ can be removed, and at what cost? Focusing on forested and forestable areas in South America, and using spatially disaggregated data, we estimate a supply curve for forest-based atmospheric CO₂ removal. The supply curve traces out the marginal cost of removing a metric ton of CO₂ as a function of total annual CO₂ removal. Each point on the curve corresponds to a specific location, and accounts for land opportunity costs as well as costs of tree planting and maintenance. We show that over a billion tons of CO₂ can be removed annually via forestation at a cost below $45 per ton, and about 2.5 billion tons can be removed at a cost below $90 per ton. The supply curve applies to only South America, but with sufficient data could be extended to the entire world. |
| JEL: | C6 Q50 Q56 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32207&r=env |
| By: | - |
| Abstract: | La Comisión Económica para América Latina y el Caribe (CEPAL) ha trabajado para formular y proponer una combinación adecuada de políticas sociales, ambientales, económicas, tecnológicas e industriales que contribuyan al desarrollo sostenible de la región. A este conjunto de políticas y su articulación se lo ha denominado “gran impulso para la sostenibilidad”. Con este enfoque, se han identificado distintos sectores económicos dinamizadores, con potencial de producción endógena y generación de beneficios asociados, como aportes al empleo y menor huella ambiental. En este documento se recoge la experiencia del proyecto sobre ciudades inteligentes, sostenibles e inclusivas que ejecuta la CEPAL a fin de guiar la aplicación de ese gran impulso para la sostenibilidad en el sector de la electromovilidad, que representa una oportunidad de cambio estructural en términos de transición energética para la región. Se analiza la situación de la movilidad urbana en las principales ciudades, considerando que el dimensionamiento de la demanda regional, el umbral de respuesta de las industrias nacionales y la articulación de productores y consumidores son claves para viabilizar las inversiones productivas en el sector. El enfoque se enriquece con aproximaciones transversales con las que se busca implementar, de forma integral, una movilidad sostenible. |
| Date: | 2024–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68897&r=env |
| By: | Barfuss, Wolfram (University of Bonn); Donges, Jonathan; Bethge, Matthias |
| Abstract: | Collective, cooperative action is critical to sustaining the commons safely away from dangerous tipping elements. Previous work has found a variety of mechanisms for the emergence of cooperation through social interactions. Yet, they cannot always work. Here, we present a theory of ecologically-mediated collective action in commons with tipping elements. We show that even without any direct social interactions, commons with tipping elements can result in a plurality of social incentive regimes, some beneficial for collective conservation, others detrimental. We underpin all incentive regimes with dynamic and boundedly rational collective reinforcement learning. We highlight how our theory can be applied to an ecologically-mediated governance of the commons. Our theory predicts the existence of social tipping points at which collective cooperation becomes self-enforcing and self-sustaining, enabled only by the actors' environmental embeddedness. |
| Date: | 2024–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:7pcnm&r=env |
| By: | Freira, Danny; Perrone, Claudia |
| Abstract: | El escenario empresarial de Uruguay y del mundo ha visto nacer en forma creciente emprendimientos de centennials vinculados a la economía social, circular, solidaria, cooperativa y otros de similar naturaleza (Cháves Ávila y Monzón Campos, 2018; Mapeo de la Sociedad Civil, 2022). Se trata de iniciativas que tienen en común el ejercicio embebido de la Responsabilidad Social (RS) y la sustentabilidad. A partir del análisis de un caso se estudian los aportes del emprendimiento a la RS. La metodología de abordaje es de carácter cualitativo, basado en observación participante durante períodos intermitentes de la vida del proyecto y una encuesta a sus fundadores. Los resultados obtenidos dan cuenta de que estos jóvenes están ocupados en la implementación de acciones de RS que contribuyan al cumplimiento de los objetivos de desarrollo sostenible evitando reproducir modelos aprendidos. La generación Z promueve nuevas prácticas de administración y gestión más acordes a los valores promovidos por los ODS, la ISO 26000 o los GRI. |
| Keywords: | Responsabilidad Social; Desarrollo Sostenible; Emprendedorismo; Estudios de Casos; |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:4040&r=env |
| By: | Stark, Oded |
| Abstract: | The social stress experienced by an individual from having a low relative income or from having a low income-based rank is a derivative of the individual’s location in social space, and is the outcome of unfavorable comparisons with other individuals in that space. (The term social space stands for the set of individuals with whose incomes or with whose income-based ranks the individual compares his income or his income-based rank.) The stress that arises from unfavorable social comparisons can cause physical and mental harm. Essentially, there are three ways to thwart unfavorable income-related comparisons experienced by an individual: to operate on the individual’s income or on a characteristic (an attribute) of the individual’s income; to operate on the incomes or on a characteristic of the incomes of the individual’s comparators; or to modify the individual’s social space. The first two approaches feature extensively in the existing literature. The third does not. In this communication, I analyze this third approach, keeping in mind its application as a policy tool for lowering social stress. |
| Keywords: | Environmental Economics and Policy, Health Economics and Policy |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:340795&r=env |
| By: | Estelle Cantillon; Elise Viadere |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/368801&r=env |
| By: | Gabriel Felbermayr (Supply Chain Intelligence Institute Austria, Austrian Institute of Economic Research); Klaus Friesenbichler (Supply Chain Intelligence Institute Austria, Austrian Institute of Economic Research); Peter Klimek (Supply Chain Intelligence Institute Austria, Medical University of Vienna, Complexity Science Hub Vienna) |
| Abstract: | ASCII proposes a revision of the EU directive on supply chain due diligence, the EU Corporate Sustainable Due Diligence Directive. The directive is based on European values and is to be welcomed. ASCII suggests that the Directive should focus, where possible, on direct monitoring of suppliers rather than on bilateral relationships between buyers and sellers. The directive should be amended to allow the use of negative and positive lists of countries and suppliers. Such lists contain foreign suppliers that are prohibited (negative lists) or authorised (positive lists) to participate in EU supply chains. When contracting with companies on positive lists, EU importers do not have to carry out due diligence on the companies. They are prohibited from doing business with companies on negative lists. The Directive will continue to apply to non-listed companies. This reduces the overall cost of the regulation for EU importers, reduces the likelihood of unwanted side-effects and makes the instrument more effective, as non-compliance by a foreign supplier leads to delisting throughout the EU, not just with a single buyer. It would also increaseeffectiveness by reducing legal uncertainty and extending the scope of the regulation beyond EU-based production networks. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdt:asciis:1&r=env |
| By: | Birgit Meyer (WIFO) |
| Abstract: | Mit der Initiative zur Richtlinie über die Sorgfaltspflicht von Unternehmen im Hinblick auf Nachhaltigkeit (Corporate Sustainable Due Diligence Directive – CSDDD) hat die EU einen wichtigen Schritt unternommen, um verantwortungsbewusstes Handeln von Unternehmen über die Grenzen der EU hinaus zu fördern. Die in der CSDDD vorgesehenen Sorgfaltspflichten werden Kosten und Nutzen für Unternehmen in der EU, für Unternehmen außerhalb der EU mit erheblichen Umsätzen im EU-Binnenmarkt sowie für deren Zulieferer mit sich bringen. Dieser Research Brief fokussiert auf die möglichen gesamtwirtschaftlichen Effekte der Richtlinie. Modellsimulationen der CSDDD im Rahmen der Studie "Trade and Welfare Effects of New Trade Policy Instruments" zeigen zum einen, dass Wohlfahrtsverluste durch den Rückzug von EU-Unternehmen aus Ländern mit hohem Risiko von Menschenrechtsverletzungen möglich sind. Zum anderen bietet die CSDDD die Chance, Umwelt- und Menschenrechtsstandards weltweit zu stärken und das reale Einkommen global zu steigern. Die Ergebnisse unterstreichen somit die Bedeutung einer kooperativen Herangehensweise zur Förderung nachhaltiger Unternehmensführung entlang globaler Wertschöpfungsketten. |
| Date: | 2024–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:rbrief:y:2024:i:4&r=env |
| By: | Estelle Cantillon; Leticia Pieraerts Garcia De La Cuadra |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/368800&r=env |
| By: | - |
| Abstract: | A mudança climática é um tema-chave da agenda parlamentar da América Latina e do Caribe e sua gestão adequada pode contribuir para aumentar o desenvolvimento econômico e a inclusão social na região. Por isso, os legisladores e legisladoras pertencentes ao Observatório Parlamentar de Mudança Climática e Transição Justa (OPCC) encomendaram a suas equipes parlamentares, sob a supervisão do escritório da Comissão Econômica para a América Latina e o Caribe (CEPAL) em Brasília, a elaboração deste documento, que analisa a legislação-marco em matéria de mudança climática de oito países selecionados segundo critérios de diversidade e representação no OPCC: Argentina, Brasil, Bolívia, Chile, Colômbia, Costa Rica, Guatemala e Uruguai. O documento destaca algumas boas práticas que oferecem oportunidades de melhoria. Entre as conclusões decorrentes da análise comparativa, cabe sublinhar que este tipo de legislação habitualmente é promulgado com amplo consenso e evolui ao longo do tempo e que se tende a regular a institucionalidade climática e os aspectos econômicos da gestão da mudança climática, mas não outros elementos, como a definição de metas de mitigação e a abordagem integral das estratégias de transição justa. |
| Date: | 2024–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68879&r=env |
| By: | Stanley, Leonardo Ernesto |
| Abstract: | El planeta ha sido planteado como un espacio no sujeto a límites, tal la idea de progreso que consideró a la naturaleza un espacio de conquista. La crisis climática viene a demostrar lo errado de dicha visión. Fruto de la concentración de carbono y otros gases de efecto invernadero en la atmósfera, la temperatura promedio global del planeta sigue en aumento. Avanzar con la transición energética deviene un imperativo, y el financiamiento es un aspecto clave en dicho proceso. Postergarlo conlleva riesgos sistémicos, cuyas consecuencias sobre la macroeconomía y el sistema financiero resultan mayúsculas. Ello debe instar a quienes gobiernan a actuar, introducir respuestas de política económica. También debería repensarse desde lo institucional, modificar el andamiaje legal-normativo que termina perpetuando el modelo energético del pasado. Resulta necesario discutir la problemática ambiental, así como lo irreversible del proceso de transición energética. El autor señala los diversos factores que muestran lo irreversible del proceso, los cambios tecnológicos, pero también aquellos de orden institucional o de hábitos de consumo que explican tal tendencia. Pero, la transición no ocurre en un vacío. Motivado por intereses espurios un grupo de actores ejerce presión sobre los gobiernos, para así mantener sus privilegios. Al desinterés de muchos se debe añadir la desinformación que generan unos pocos, todo ello vuelve imprescindible analizar la transición desde una perspectiva multidisciplinaria; una visión de política económica global que presente actores, describa políticas y muestre cómo el poder influye en la toma de decisiones. El libro analiza estos diversos factores y destaca la complejidad del problema y, por ende, la necesidad de abordarlo desde una perspectiva multidisciplinaria. |
| Keywords: | Transición Energética; Crisis Energética; Cambio Climático; |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:4047&r=env |
| By: | Vincent Chatellier (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | Based on statistical data produced by several competent organizations, this article discusses, first, the evolution of the sales of organic food products and the weight they represent on the overall food market. Representing 6.3% of the French food market in 2021 compared to 3.2% in 2015, organic products have enjoyed strong growth in recent years. Since 2021, however, the market has been facing many difficulties, mainly due to inflation, which is leading consumers to make new trade-offs in their purchasing actions. In a second step, this article focuses on French organic animal products, which will represent a little less than a quarter of organic food purchases in 2021. Organic livestock products are marketed for the most part through mass distribution channels and are not very concerned by foreign trade. Thus, contrary to other organic sectors (including fruits and vegetables), domestic consumption is almost exclusively assured by products from the national market. Even though the consumption of organic animal products has grown, at least until very recently (2021), there is, however, strong competition with other signs and quality labels (Label Rouge, AOP, IGP, CCP, etc.). In France, the share of organic production in total agricultural production (expressed in tonnage) is increasing, but it varies according to the sector. Eggs rank first on this criterion (15.4% of national production), ahead of dairy products (5.2% of cow's milk collection) and, further behind, meats, particularly pork and poultry (between 1% and 2% of slaughterings). |
| Abstract: | Basé sur une valorisation de données statistiques issues de différentes organisations compétentes, cet article discute, dans un premier temps, de l'évolution des ventes de produits alimentaires issus de l'agriculture biologique et du poids que celles-ci représentent dans le marché alimentaire global. En représentant 6, 3 % du marché alimentaire français en 2021 contre 3, 2 % en 2015, les produits bio ont bénéficié d'une forte croissance au cours des années récentes. Depuis 2021, cependant, le marché fait face à de nombreuses difficultés, en raison principalement de l'inflation qui amène les consommateurs à faire de nouveaux arbitrages dans leurs actes d'achat. Dans un second temps, cet article se focalise sur les produits animaux bio français, lesquels représentent un peu moins du quart des achats alimentaires bio en 2021. Les produits animaux bio sont commercialisés pour une grande part par le canal de la grande distribution et sont peu concernés par les échanges extérieurs. Ainsi contrairement à d'autres filières bio (dont les fruits et légumes), la consommation intérieure demeure quasi exclusivement assurée par des produits issus du marché national. Si la consommation de produits animaux bio s'est développée, du moins jusqu'à une période très récente (2021), une forte concurrence existe cependant avec les autres signes et mentions de qualité (Label Rouge, AOP, IGP…). En France, la part du bio dans la production agricole totale (exprimée en tonnage) augmente, mais elle varie selon les filières. Les oeufs occupent le premier rang sur ce critère (15, 4 % de la production nationale), devant les produits laitiers (5, 2 % de la collecte de lait de vache) et, plus loin derrière, les viandes, notamment celles de porc et de volailles (entre 1 et 2 % des abattages). |
| Keywords: | Organic farming, Animal production, France, Organic products, Inflation, Agriculture biologique, Productions animales, Produits bio |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04474832&r=env |
| By: | Mühle, Charlotte; Berrones-Flemmig, Claudia Nelly; Hattula, Cansu |
| Abstract: | This paper aims to provide a literature review in the area of Sustainability for start-ups. Even though corporate social responsibility has gained importance throughout recent years, it still needs to be implemented properly in the business world. In addition to that, the focus for sustainability practices still lies heavily on larger organizations. Considering that sustainability is relevant for organizations regardless their size or industry, it is important to investigate it in different contexts. Given that operating sustainable is often connected to higher costs, business models which focus on sustainability are usually designed for bigger companies, which makes it complex or even impossible for start-ups to implement them (Halberstadt & Johnson, 2014, p. 1-2). Throughout the past years, the concern about creating value for not only a business itself but also the people affected by it, society in general and the environment itself, has grown and it clearly shows that the traditional way of corporate reporting is not satisfactory anymore since the needs of several stakeholders are not included (Felber, Campos & Sanchis, 2019, p.1). The balance of the common good aims to visualize not only economic success in forms of the balance sheet total or financial results of a business but also the contributions of an organization to the public good (Butscher, Kasper, Koloo & Riedel, 2021, p. 5). Themain research question of this paper is: What value has the implementation of sustainability management for a start-up regarding their competitive advantage? The results of the literature review show that sustainability management and sustainability-promoting concepts are not only common but should be implemented by any company which plans to operate successfully long-term. The balance of the common good is a helpful tool to improve a firm's operations and convert to a more sustainable business model. Therefore, this literature review can be also helpful for start-ups, which are able to implement sustainability management practices in their businesses. |
| Keywords: | Sustainability, Balance of the common good, Common good economy, start-ups, Germany |
| JEL: | M Q |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iubhbm:284392&r=env |
| By: | Chi Kong Chyong; Michael Pollitt; David M. Reiner; Carmen Li |
| Keywords: | Energy system modelling, spatial flexibility, temporal flexibility, networks, intraday storage, long-duration storage, power-to-x, Net Zero, deep decarbonisation pathways |
| JEL: | C6 O13 Q4 Q47 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2302&r=env |
| By: | Schulte, Emily; Bruckner, Thomas; Scheller, Fabian |
| Abstract: | Despite their relevance for adoption levels in spatial analyses, previous studies on adoption intention excluded measures characterizing the living environment of participants such as population density and previous photovoltaic (PV) installations so far. To fill this gap, this study was designed to investigate relations between residential PV adoption intention and characteristics of the living environment of respondents. A quantitative survey was performed on a representative sample of 1, 800 homeowners in Germany and matched with registered spatial characteristics on the zip-code level. The Mann-Whitney U test was used to compare the adoption intention between groups with low and high expressions of the independent variables with the total sample, and with consumer segments using the Sinus-Milieu model. The results for the total sample demonstrated that actual PV diffusion, population density, city-type and share of (semi-) detached houses are not significantly related to the individual adoption intention, whereas perceived diffusion is. Two milieu groups showed higher intentions with lower actual PV diffusion in their spatial environment, and two groups revealed higher intentions along with relatively higher incomes. Perceived diffusion is only weakly related to actual diffusion levels, implying a gap between reality and perceptions. Overall, the results imply that spatial characteristics on the zip-code level are not related to individual adoption intention, whereas the perceived presence of PV systems in the social and spatial environment positively influences adoption intention. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iirmco:278114&r=env |
| By: | Testa, Joaquín; López, María José; Bertoni, Marcela; Loscalzo, Brenda; Veltri, Romina |
| Abstract: | El trabajo se propone presentar una aproximación metodológica para valorar los servicios ecosistémicos recreativos de los espacios turísticos y establecer el valor económico del espacio turístico de Miramar. El mismo se desarrolla en el marco del proyecto de investigación vigente "La valoración socioeconómica de los servicios ecosistémicos del espacio turístico de Miramar (Buenos Aires) y su contribución a la gestión ambiental". |
| Keywords: | Valoración Económica; Espacio Turístico; Recreación; Miramar; |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:4034&r=env |
| By: | Carina Cavalcanti (Department of Accounting, Finance and Economics, Griffith University, Southport and Nathan, QLD, Australia.); Andreas Leibbrandt (Department of Economics, Monash University, Clayton, VIC 3800, Australia.) |
| Abstract: | This field study investigates the characteristics and preferences of artisanal fishers who continue their profession in a lake afflicted by overfishing. We relate their economic preferences, fishing data, social networks, and socio-demographic information to their decision to either persist or discontinue fishing 4 and 15 years later. Our findings reveal that an increasing portion of fishers have chosen to cease fishing over time. We observe that the fisher’s risk preference is an important and robust factor for persistence: More risk-averse fishers are more likely to endure in their fishing endeavors. We also find evidence that better socially integrated, older and less educated individuals are more persistent. In contrast, we do not observe any notable relationships between persistence and the individual extent of overfishing or social preferences. These insights offer valuable novel knowledge regarding the evolving dynamics of resource user groups. By understanding these factors, policymakers and managers can optimize their approach to designing effective management practices and policies. |
| Keywords: | common pool resource, fishing, risk aversion |
| JEL: | C91 D81 H23 J24 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2024-04&r=env |
| By: | Shusaku Sasaki; Takahiro Kubo; Shodai Kitano |
| Abstract: | Ascertaining the number, type, and location of plant, insect, and animal species is essential for biodiversity conservation. However, comprehensively monitoring the situation only through public fixed-point surveys is challenging, and therefore information voluntarily provided by citizens assists in ascertaining the species distribution. To effectively encourage the citizens' data sharing behavior, this study proposed a prosocial incentive scheme in which, if they provide species information, donations are made to activities for saving endangered species. We conducted a field experiment with users (N=830) of a widely-used Japanese smartphone app to which they post species photos and measured the incentive's effect on their posting behavior. In addition, we measured the effect of a financial incentive scheme that provides monetary rewards for posting species photos and compared the two incentives' effects. The analyses revealed that while the prosocial incentive did not increase the number of posts on average, it did change the contents of posts, increasing the proportion of posts on rare species. On the contrary, the financial incentive statistically significantly increased the number of posts, in particular, on less rare and invasive species. Our findings suggest that the prosocial and financial incentives could stimulate different motivations and encourage different posting behaviors. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.18047&r=env |