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on Environmental Economics |
| By: | Santeramo, Fabio G.; Ferrari, Emanuele; Toreti, Andrea |
| Keywords: | Environmental Economics and Policy |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatrtp:340815&r=env |
| By: | Hackmann, Angelina; Lindner, Vincent; Pelizzon, Loriana; Riedel, Max |
| Abstract: | This paper addresses the need for transparent sustainability disclosure in the European Auto AssetBacked Securities (ABS) market, a crucial element in achieving the EU's climate goals. It proposes the use of existing vehicle identifiers, the Type Approval Number (TAN) and the Type-Variant-Version Code (TVV), to integrate loan-level data with sustainability-related vehicle information from ancillary sources. While acknowledging certain challenges, the combined use of TAN and TVV is the optimal solution to allow all stakeholders to comprehensively assess the environmental characteristics of securitised exposure pools in terms of data protection, matching accuracy, and cost-effectiveness. |
| Keywords: | Securitisation, Car Loans, Sustainable Finance, Regulation |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewh:285378&r=env |
| By: | Samuel Pienknagura |
| Abstract: | This paper assesses the role of climate policies as a catalyst of low carbon technologies deployment through foreign direct investment (FDI). Leveraging detailed cross-border project-level information, it identifies “green” FDI and finds that a higher number of active climate policies is associated with higher levels of green FDI inflows. Importantly, climate policies do not appear to be linked to lower levels of non-green projects, suggesting relatively small overall costs from the green transition. The paper also finds heterogeneity across sectors and policy instruments. The association between climate policies and green projects is particularly strong in energy and manufacturing, and when the composition of the recipient's climate portfolio is tilted towards binding policies (e.g., taxes and regulation) and expenditure measures. Finally, results point to policy spillovers, whereby larger climate policy portfolios in the source country are linked to higher green FDI outflows, but green subsidies can discourage them. This, in turn, implies that subsidies could hamper efforts to deploy low-carbon technologies across countries. |
| Keywords: | Climate policies; FDI; low carbon technologies; renewable energy |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/046&r=env |
| By: | Hrozencik, R. Aaron; Perez-Quesada, Gabriela; Bocinsky, Kyle |
| Abstract: | Drought imposes significant costs on the U.S. agricultural sector, particularly for livestock producers who rely on precipitation to grow forage. The U.S. Department of Agriculture (USDA) administers several programs to mitigate the economic costs of drought. One of these programs is the USDA, Farm Service Agency’s (FSA) Livestock Forage Disaster Program (LFP), which provides payments to livestock producers impacted by drought. Program evaluation results suggest that producers in drought affected counties that received LFP payments achieved similar herd retention and liquidation outcomes as producers in less drought impacted counties that were ineligible for LFP payments. Simulation modeling results in this report suggest that LFP poses a financial-climate risk to the Federal budget. Depending on the future increase in greenhouse gas (GHG) emissions, annual Federal Government expenditures on LFP are projected to increase above the current average expenditures by 45–135 percent (in 2022 dollars) by 2100. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Livestock Production/Industries, Public Economics, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, Risk and Uncertainty |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersrr:340568&r=env |
| By: | Lee, Jae Yoon (Korea Institute for Industrial Economics and Trade); Lee, Go Eun (Korea Institute for Industrial Economics and Trade) |
| Abstract: | The steel industry, which has been pivotal to the growth of the Korean manufacturing sector, remains a pillar of the Korean economy amid an ongoing transition into an advanced economy driven by cutting-edge technologies and services. As climate change looms as the predominant issue on almost all countries’ policy radar, however, the Korean steel industry faces significant challenges ahead, with rising pressure to achieve environmental sustainability. In this report, we analyze the structure and characteristics of the steel industry and its value chain, comparing its competitiveness to international counterparts with a view toward identifying implications for policy that might enhance the competitiveness of the Korean steel industry. Korea is the world’s fourth-largest steelmaker. But despite this, Korean steelmakers cannot rest on their laurels, and should strive to maintain their global position by accelerating electric-arc furnace production and shifting toward a low-carbon, high-value-added structure. In this paper we highlight the need for developing eco-friendly technologies such as hydrogen-based reduction methods, boosting product and value chain competitiveness, and securing robust legal, institutional, and infrastructure investment to ensure a sustainable future for the industry. |
| Keywords: | steel; steel industry; climate change; emissions; greenhouse gases; sustainability; electric arc furnaces; electric arc steel; green steel; hydrogen reduction |
| JEL: | L61 Q01 Q54 Q55 Q56 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietrp:2023_020&r=env |
| By: | Kohnert, Dirk |
| Abstract: | Human activity has transformed the planet at a pace and scale unprecedented in recorded history, causing irreversible damage to communities and ecosystems. Countries have focused their capacities on economic growth, with too little attention to externalities in terms of environmental quality. The world will not avoid catastrophic warming unless wealthy nations accelerate their reduction of own emissions and help poorer countries to do the same. North America and Europe have contributed 62 % of carbon dioxide emissions since the industrial revolution, while Africa has contributed only 3%. However, it is in sub-Saharan Africa (SSA) that the impacts are most severe and the people most vulnerable. Developed countries, in their own interests, should focus on ways to help developing countries phase out fossil fuels and transition to renewable energy. However, there are tensions between richer and poorer nations over who should pay the costs of global warming. Rich countries have a responsibility to act more quickly than their low-income counterparts. Yet governments continue to subsidise the use of fossil fuels, and banks and companies still invest more in polluting industries than in climate solutions. The consumption habits of the richest 10 % of people generate three times more pollution than those of the poorest 50 %. Emerging economies such as China and India, which plan to achieve net-zero emissions by 2060 and 2070 respectively, should join the developed world in accelerating emissions reductions. It is not just the way we produce and use energy that needs to change quickly. It's the way we consume food, the way we protect nature. It's everything, everywhere, all at once. The agricultural sector is particularly vulnerable, especially in SSA countries where agriculture is central to the economy. Among the top eight countries with the highest cumulative net emissions from agriculture, forestry and other land use are two SSA countries, Nigeria and DR Congo. Most of these emissions are embodied in trade and are caused by consumption in regions such as Europe, the United States and China. The establishment of the Loss and Damage Fund agreed at COP27 will not be enough to turn the tide, nor will it necessarily translate into climate finance commitments, given the lack of progress in delivering the promised US$100 billion in annual climate finance from rich countries. African countries themselves need to reflect on their own strengths and step up their efforts in a timely and substantial way. |
| Keywords: | Environmental sustainability; Carbon neutrality; climate change; Carbon dioxide; environmental pollution; greenhouse gas; fossil fuel; renewable energy; Governance; European Union; highly industrialized countries; emerging economies; BRICS; Sub-Saharan Africa; South Africa; Nigeria; DR Congo; |
| JEL: | E21 E22 E23 E26 F18 F54 F64 G38 H23 H84 H87 I15 I31 K32 N17 N37 N57 O13 O44 O55 Q54 Z13 |
| Date: | 2024–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120210&r=env |
| By: | Olivier Blanchard (Peterson Institute for International Economics); Christian Gollier (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jean Tirole (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Climate change poses an existential threat. Theoretical and empirical research suggest that carbon pricing and green R&D support are the right tools, but their implementation can be improved. Other policies, such as standards, bans, and targeted subsidies, also all have a role to play, but they have often been incoherent, and their implementation is delicate. |
| Keywords: | Climate change, Carbon price, Green R&D, Carbon border adjustment, Climate finance |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04472569&r=env |
| By: | Miquel-Flores, Ixart; Reghezza, Alessio; Buchetti, Bruno; Perdichizzi, Salvatore |
| Abstract: | This study investigates the underlying reasons for banks’ continued support of fossil fuel-based firms and examines the role of public guaranteed loans (PGLs) in redirecting resources towards greener economic activities, thereby facilitating the climate transition process. Using a unique pan-European credit register dataset, we combine supervisory bank data with firm-level greenhouse gas emission data and financial information. Our analysis yields three main findings. Firstly, European banks perceive lending to green companies as riskier compared to their brown counterparts, a phenomenon we term as the “green-transition risk.” Secondly, we provide evidence that during the COVID-19 pandemic, European banks have strategically leveraged PGLs to channel resources towards environmentally sustainable activities, thereby augmenting the proportion of green loans in their portfolios and partially shifting the inherent “green-transition risk” to European governments and citizens. Lastly, our investigation reveals a banking preference for awarding PGLs to financially robust green firms over less profitable, highly indebted green firms, which could pose significant challenges for green businesses requiring financial support during the COVID-19 crisis. JEL Classification: G20, G21, G28 |
| Keywords: | climate change, credit risk, green lending, public guaranteed loans |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20242916&r=env |
| By: | Bopha Chhun; Deepika Sehdev; Amy Cano Prentice; Miguel Cárdenas Rodríguez; Ivan Haščič |
| Abstract: | This paper presents tagging methodologies for 22 environmental domains in the OECD Policy INstruments for the Environment (PINE) database, including seven domains on environmental protection (air pollution, water pollution, soil pollution, solid waste, ozone layer, noise and radiation), six domains on natural resource management (fisheries, forests, freshwater, renewable energy, fossil fuels and minerals) and nine cross-cutting domains (climate change mitigation, climate change adaptation, land degradation, biodiversity, ocean, chemicals management, energy efficiency, circular economy and mercury). The environmental domains in the PINE database support tracking progress towards domestic and international environmental objectives. Tagging environmental domains allows harmonised comparisons across countries, years and policy instrument types. |
| Keywords: | deposit-refund schemes, environmental policy, environmental protection, fees, market-based instruments, natural resource management, subsidies, taxes, tradable permits, voluntary approaches |
| JEL: | H25 H27 H71 H72 P48 Q1 Q2 Q3 Q4 Q5 R48 |
| Date: | 2024–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:232-en&r=env |
| By: | Reichelstein, Stefan |
| Abstract: | Current corporate disclosures regarding carbon emissions lack generally 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 Carbon Emissions (CE) balance sheets and flow statements. 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 company's annual corporate carbon footprint calculated as the cradle-to-gate carbon footprint of goods sold during the current period. Taken together, balance sheets and flow statements generate key performance indicators of a company's past, current and future performance in the domain of carbon emissions. |
| JEL: | M41 M48 Q53 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283586&r=env |
| By: | Alessandro Cantelmo (Bank of Italy); Nikos Fatouros (University of Birmingham); Giovanni Melina (International Monetary Fund); Chris Papageorgiou (International Monetary Fund) |
| Abstract: | With climate change increasing the frequency and intensity of natural disasters, how should central banks respond to these catastrophic events? Looking at IMF reports for 34 disaster-years, which occurred in 16 disaster-prone countries from 1999 to 2017, what emerges is a non-negligible heterogeneity in central banks' responses to climate-related disasters. Using a standard small-open-economy New-Keynesian model with disaster shocks, we show that, consistently with textbook theory, inflation targeting remains the welfare-optimal regime. The best strategy for monetary authorities is to resist the impulse to accommodate in the face of catastrophic natural disasters, and rather to continue to focus on price stability. |
| Keywords: | natural disasters, climate change, DSGE, monetary policy, exchange rate regimes |
| JEL: | E5 E52 E58 F41 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1443_24&r=env |
| By: | Batabyal, Amitrajeet; Yoo, Seung Jick |
| Abstract: | We utilize the public good features of Ganges water pollution clean-up and conduct a game-theoretic analysis of an economy consisting of two Indian cities, Kanpur and Varanasi, through which the Ganges flows. We show how heterogeneity in the two cities in population and the value placed on pollution clean-up determines whether clean-up ought to be centralized or decentralized. Under decentralization, in several scenarios, it is optimal for only one city to clean-up pollution. Under centralization, this exclusive clean-up of pollution is suboptimal but the amount of pollution cleaned up can be larger or smaller than the amount cleaned up under decentralization. We note the broader environmental and public health implications of pollution control and contend that the two differences between Kanpur and Varanasi and the use of majority voting are key factors to consider when pondering how much pollution to clean up in this economy and in other settings. |
| Keywords: | Clean-up, Ganges River, Population Difference, Values Difference, Water Pollution |
| JEL: | D81 Q53 Q56 |
| Date: | 2023–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120289&r=env |
| By: | Kuhls, Sonia |
| Abstract: | This paper examines the potential of the foundational economy as an industrial policy strategy for addressing the challenges posed by the socio-ecological transformation. Grounded in Marxist and feminist theories, the analysis sets out to deconstruct the jobs-versus-environment dilemma, revealing that dignified employment and climate mitigation are jointly imperiled by the capitalist mode of production. Nonetheless, ambitious environmental policies will necessitate structural economic changes and hence labor reallocations. In this context, the paper seeks to establish links between the foundational economy concept - which is primarily concerned with economic development and industrial policy - and sustainability research. I contend that the foundational economy emerges as a promising avenue for addressing potential adverse effects of the socio-ecological transformation for two main reasons. First, it serves as a practical guide for necessary labor reallocations, proposing the absorption of workers into low-carbon, welfare-oriented sectors. Second, it functions as a discursive strategy that directly engages with workers'self-perception and concerns, prioritizing community health and offering socially sustainable and meaningful employment. Despite these merits, the paper underscores the need for the foundational economy to address feminist critiques of labor and unpaid social reproduction to fully unlock its transformative potential. Additionally, the role of trade unions in supporting and shaping the foundational economy warrants further investigation, urging future research to delineate the positionality and strategies of trade unionsin the consolidation of this economic approach. |
| Keywords: | employment, foundational economy, industrial policy, social reproduction, socio-ecological transformation, trade unions |
| JEL: | B51 B54 J21 J51 L52 Q56 Q57 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:285376&r=env |
| By: | Robert A. Ritz |
| Keywords: | Cap-and-trade, carbon border adjustment, carbon leakage, industrial competitiveness |
| JEL: | H23 L11 Q54 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2211&r=env |
| By: | Cavallo, Eduardo A.; Gómez, Santiago; Noy, Ilan; Strobl, Eric |
| Abstract: | Caribbean Islands are exposed to hurricanes, the damages of which are projected to intensify due to anthropogenic climate change. The region is also highly indebted. We focus on the interaction between climate change, hurricanes, and public debt. We investigate what the typical impact of Caribbean hurricanes on public debt in the region has been and how anthropogenic climate change has shaped this impact. Our findings show that for the 10 most severe storms, the average increase in debt, measured as the difference between post and pre-storm trends, is about 10 percent. Three years after such a storm, debt levels are 18 percent higher than what would have been expected otherwise. Based on findings from Extreme Weather Event Attribution (EEA) research, we calculate that the impact of a severe hurricane on public debt that is attributable to climate change amounts to an increase of 3.8 percent of the debt stock relative to the level of debt at the time of the event. |
| Keywords: | Caribbean;Public Debt;Hurricanes;Attribution;climate change |
| JEL: | Q54 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13351&r=env |
| By: | Valero, Anna |
| Abstract: | The urgent need for tackling climate change brings with it the need to understand the impacts of net zero policies on the labour market. Various approaches have been taken in attempts to measure and describe green jobs, and compare them to their non-green counterparts. This essay focuses on the UK and summarises findings from an occupational approach, which classifies jobs as being green when they involve new tasks or skills required by the transition to net zero, or when they are likely to see increased demand due to the transition. Drawing on this analysis, and other complementary approaches, this essay sets out evidence that green jobs have the potential to be good jobs, requiring higher skills and paying well. However, they have not been accessible to all workers to date. In the next phase of the transition, net zero is expected to be a net creator of jobs. Overall, this is largely a story of change in existing jobs and sectors–very few jobs will be phased out. The transition and its impacts on the labour market will be difficult in specific sectors and places, requiring targeted programmes and broader skills policies to ensure that net zero can not only be delivered, but delivered in an inclusive way. |
| Keywords: | green skills; net zero; green jobs; ES/T014431/1; ES/V009478/1; ES/W010356/1; This article draws on research funded on a number of grants; including from Candriam Institute for Sustainable Development for LSE research on green jobs and the Nuffield Foundation for Economy 2030 Inquiry work on green jobs. |
| JEL: | J20 Q50 |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122227&r=env |
| By: | Liepold, Constanze (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Fabianek, Paul (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | The Greenhouse Gas (GHG) Mitigation Quota is a unique instrument in Europe that redistributes money from high emission to low emission fuel markets, while forcing fuel distributors to reduce the average emissions of their fuels. This paper presents the design of the German 2022 GHG Quota, places it in the context of environmental policy instruments, and examines its impact on the affected fuel markets in relation to other environmental policy instruments. We aim to identify the strengths and weaknesses of the GHG Quota Trading as an alternative to allowance trading and carbon taxes, deliver results that can be applied in industry and policy making, and provide a basis for further research. Field research was conducted in the form of expert interviews. Furthermore, intermediaries and brokers were contacted via email and asked for transaction data. In addition, a qualitative literature review was conducted and publications of responsible authorities as well as relevant legal texts, were used to gather information. We find that the GHG Quota Trading overlaps with the instruments emission standards and emission trading scheme and therefore falls under the category of tradable performance standards. However, it also contains aspects of a subsidy and interacts directly or indirectly with several different markets |
| Keywords: | GHG Quota; environmental policy instrument; poolers |
| JEL: | A11 B55 |
| Date: | 2023–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2023_009&r=env |
| By: | Mr. Simon Black; Mr. Ruud de Mooij; Vitor Gaspar; Ian W.H. Parry; Karlygash Zhunussova |
| Abstract: | Internationally coordinated climate mitigation policies can effectively put the world on a path toward achieving the agreed Paris temperature goals. Such coordination could be initiated by large players, such as China, the US, India, the African Union, and the European Union. We find that the implications for fiscal revenues over time will be shaped by a combination of rising carbon prices, the gradual erosion of existing fuel tax bases, and possible revenue sharing arrangements. Public spending rises during the transition to build green public infrastructure, promote innovation, and support clean technology deployment. Countries will also need financing for compensating vulnerable households and industries, and to transfer funds to poor countries. With well-designed climate-fiscal policy relying on carbon pricing, global decarbonization will have anything from moderately positive to moderately negative impacts on fiscal balances in high-income countries. For middle and low-income countries, net fiscal impacts are generally positive and can be significant. Revenue sharing at the global level would make an historical contribution to breaching the financial divide between rich and poor countries. |
| Keywords: | Climate mitigation policy; Fiscal impact; Global coordination; Carbon pricing |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/045&r=env |
| By: | Richard S. J. Tol |
| Abstract: | A new version of the database for the meta-analysis of estimates of the social cost of carbon is presented. New records were added, and new fields on the impact of climate change and the shape of the welfare function. The database was extended to co-author and citation networks. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.09125&r=env |
| By: | Immanuel Feld; Thiemo Fetzer |
| 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 estimated 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 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10990&r=env |
| By: | Michael Jakob (MCC - Mercator Research Institute on Global Commons and Climate Change - PIK - Potsdam Institute for Climate Impact Research); Stavros Afionis (Cardiff University, University of Leeds); Max Åhman (Lund University); Angelo Antoci (UNISS - Università degli Studi di Sassari = University of Sassari [Sassari]); Marlene Arens (Lund University); Fernando Ascensão (cE3c - Centre for Ecology - Evolution and Environmental Changes - ULISBOA - Universidade de Lisboa = University of Lisbon); Harro van Asselt (University of Eastern Finland, Universiteit Utrecht / Utrecht University [Utrecht]); Nicolai Baumert (Lund University); Simone Borghesi (EUI - European University Institute, UNISI - Università degli Studi di Siena = University of Siena); Claire Brunel; Justin Caron (HEC Montréal - HEC Montréal); Aaron Cosbey (IISD - International Institute for Sustainable Development); Susanne Droege (Stiftung Wissenschaft und Politik); Alecia Evans (Purdue University [West Lafayette]); Gianluca Iannucci (UniFI - Università degli Studi di Firenze = University of Florence); Magnus Jiborn (Lund University); Astrid Kander (Lund University); Viktoras Kulionis (ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]); Arik Levinson (GU - Georgetown University [Washington]); Jaime de Melo (UNIGE - Université de Genève = University of Geneva); Tom Moerenhout (Columbia University [New York]); Alessandro Monti (UCPH - University of Copenhagen = Københavns Universitet); Maria Panezi (UNB - University of New Brunswick); 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); Lutz Sager (GU - Georgetown University [Washington]); Marco Sakai (University of York [York, UK]); Juan Sesmero (Purdue University [West Lafayette]); Mauro Sodini (University of Pisa - Università di Pisa, VSB - Technical University of Ostrava [Ostrava]); Jean-Marc Solleder (UNIGE - Université de Genève = University of Geneva); Cleo Verkuijl (FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Valentin Vogl (Lund University); Leonie Wenz (MCC - Mercator Research Institute on Global Commons and Climate Change - PIK - Potsdam Institute for Climate Impact Research); Sven Willner (PIK - Potsdam Institute for Climate Impact Research) |
| Abstract: | Economic analysis has produced ample insights on how international trade and climate policy interact (1). Trade presents both opportunities and obstacles, and invites the question of how domestic climate policies can be effective in a global economy integrated through international trade. Particularly problematic is the potential relocation of production to regions with low climate standards. Measures to level the playing field, such as border carbon adjustments (BCAs), may be justified for specific emissions-intensive and trade-exposed sectors but need to be well-targeted, carefully navigating tensions that can arise between the desire to respect global trade rules and the need to elaborate and implement effective national climate policies. The conformity of specific trade measures with international trade and climate change law is not entirely clear. Yet, clarity is needed to ensure that the industry actors affected will find the rules predictable and be able to adhere to them. |
| Date: | 2022–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04466107&r=env |
| By: | Gonzalez, Rodrigo Barbone; Haas Ornelas, José Renato; Silva, Thiago Christiano |
| Abstract: | Clean water has a largely unknown economic value, particularly to small communities whose agricultural activities take place on river shores. In November 2015, the rupture of a mining tailings dam in the municipality of Mariana led to a record disposal of toxic residuals in southeast Brazil. A mud avalanche ran out for 600 km (373 miles) until it reached the Atlantic Ocean, leaving behind extreme ecological and economic damage in the Doce River basin. This is the largest environmental disaster in Brazil to date. We quantify the negative externalities using rich, identified, and comprehensive data from firm-to-firm electronic payments and individual-level consumer credit usage. We find that agricultural producers in affected municipalities received cumulatively 41% to 60% fewer inflows (income) from customer firms outside the affected zone three years after the disaster. Effects are driven by municipalities where the river shore is larger relative to the farming area. In these municipalities, individuals also faced an 8% fall in their credit card and consumer finance expenditures. This result is stronger for non-formal and high-risk workers. Thus, water contamination led to (first) production and (later) consumption decline with real effects on municipality-level agriculture and services output, causing a 7% decline in local GDP. |
| Keywords: | water;Environmental disaster;Agriculture;Consumer credit;Payment system |
| JEL: | C63 G01 G20 G21 G28 O16 O40 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13273&r=env |
| By: | Lucia Errico (Department of Economics, Statistics and Finance 'Giovanni Anania', University of Calabria, Rende (Italy)); Andrea Mosca (Department of Economics, University of Bergamo, Italy); Sandro Rondinella (Department of Economics, Statistics and Finance 'Giovanni Anania', University of Calabria, Rende (Italy)); Carmela Ciccarelli (Department of Economics, Statistics and Finance 'Giovanni Anania', University of Calabria, Rende (Italy)) |
| Abstract: | This study investigates the relationship between environmental risks and income inequality within Italian municipalities, utilising data spanning from 2010 to 2020. Specifically, leveraging a unique dataset drawing upon various sources, we analyse the impact of environmental hazards such as hydrogeological risks, landslides, volcanic zones, and earthquakes on income distribution. Our findings suggest that municipalities facing heightened environmental risks tend to exhibit increased income inequality, with results being driven by hydrogeological risks, landslides, and volcanic zones. On the other hand, earthquake risk appears to alleviate income inequality, particularly in the South of the country. Our results underscore the significance of preventive and communication measures not only in mitigating the impact of such natural hazards but also in managing the associated economic uncertainty. |
| Keywords: | Income inequality, environmental risk, beta regression |
| JEL: | D31 I30 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:202402&r=env |
| By: | Massimiliano Caporin (Department of Statistical Sciences, University of Padova, Via Cesare Battisti 241, 35121 Padova, Italy); Petre Caraiani (Institute for Economic Forecasting, Romanian Academy, Romania; Bucharest University of Economic Studies, Romania); Oguzhan Cepni (Copenhagen Business School, Department of Economics, Porcelaenshaven 16A, Frederiksberg DK-2000, Denmark; Ostim Technical University, Ankara, Turkiye); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa) |
| Abstract: | This paper explores how climate risks impact the overall systemic stress levels in the United States (US). We initially apply the TrAffic Light System for Systemic Stress (TALIS) approach that classifies the stock markets across all 50 states based on their stress levels, to create an aggregate stress measure called ATALIS. Then, we utilize a nonparametric causality-in-quantiles approach to thoroughly assess the predictive power of climate risks across the entire conditional distribution of ATALIS, accounting for any data nonlinearity and structural changes. Our analysis covers daily data from July 1996 to March 2023, revealing that various climate risk indicators can predict the entire conditional distribution of ATALIS3, particularly around its median. The full-sample result also carries over time, when the nonparametric causality-in-quantiles test is conducted based on a rolling-window. Our findings, showing that climate risks are positively associated with ATALIS over its entire conditional distribution, provide crucial insights for investors and policymakers regarding the economic impact of environmental changes. |
| Keywords: | State stock markets, Systemic stress, Climate risks, Quantile predictions |
| JEL: | C21 C32 C53 G10 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202407&r=env |
| By: | Manuel Alejandro Cardenete; M. Carmen Lima; Ferran Sancho |
| Abstract: | TWe study the role that the productive structure plays in determining carbon dioxide (CO2) emissions by industry. Specifically, we distinguish and isolate the interdependencies originating from the structure of the demand for inputs from those resulting from the supply structure. This separation has the advantage of enabling a better identification of the causal origin of emissions and allows the establishment of a catalog of industries based on their characteristics as demanders or suppliers of inputs. This information, linked to the different nature of demand or supply, can be relevant for designing more effective emission containment measures. The empirical basis of the analysis utilizes input-output data for Spain in 2020, while the methodological platform is an adaptation of the hypothetical extraction method (HEM) |
| Keywords: | Demand-induced emissions, Supply-induced emissions, Selective extractions |
| JEL: | C67 D57 Q51 |
| Date: | 2024–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:aub:autbar:974.24&r=env |
| By: | Bruno Conte |
| Abstract: | How will future climate change affect rural economies like sub-Saharan Africa (SSA) in terms of migration and welfare losses? How can policy enhance SSA’s capacity to adapt to this process? I answer these questions with a quantitative framework that, coupled with rich spatial data and forecasts for the future, estimates millions of climate migrants and sizeable and unequal welfare losses in SSA. Investigating migration and trade policies as mitigating tools, I find a tradeoff associated with the former: reducing SSA migration barriers to the European Union (EU) standards eliminates aggregate welfare losses at the cost of more climate migration and high regional inequality. Reducing tariffs to the EU levels attenuates this cost. |
| Keywords: | climate change, migration, economic geography |
| JEL: | O15 Q54 R12 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1880&r=env |
| By: | Anne de Bortoli (LVMT - Laboratoire Ville, Mobilité, Transport - ENPC - École des Ponts ParisTech - Université Gustave Eiffel); Adélaïde Féraille (NAVIER UMR 8205 - Laboratoire Navier - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - Université Gustave Eiffel); Fabien Leurent (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: | Roads are major transportation infrastructure whose sustainability of maintenance practices has never been holistically assessed due to a lack of a proper method. This paper applies a newly developed assessment method (see article part I) on a 10-km-long section of French highway to fully compare the performance of various types of pavement resurfacing policies, for all the maintenance stakeholders, and considering pavement-vehicle interaction (PVI). After presenting the highway section and the parametrization of the model, four alternative resurfacing frequencies are compared to the French standard maintenance scenario over the pavement lifespan. Results show that increasing resurfacing frequency generates gains in terms of domestic production and employment, environmental damage (health, biodiversity, resources), user budgets, and local residents' health damage created by traffic noise. Conversely, it entails financial losses for the road operator and government (tax revenues and net present value), as well as time losses for users. On the contrary, the consequences of a decrease in this frequency are the opposite. Excess fuel consumption due to PVI governs the scale of the environmental and financial gains or losses of highway maintenance policies. Optima in terms of health returns on investment and user savings appear to be around a 50% increase in maintenance funding: for each additional euro spent by the operator, there is a user gain of 3.5 euros and a human health gain of 710 euros. Sensitivity analyses indicate that the marginal gains are highly sensitive to the thickness of the resurfacing technique for macroeconomic indicators, global Net Present Value, and operator savings, while the gains are proportional to the traffic and International Roughness Indicator deterioration speed for tax revenue, users' savings, time savings, noise, and environmental metrics. The other indicators are either slightly or not sensitive to these parameters. To conclude, the entire road maintenance system must be redesigned, from the tax system and funding schemes to the prioritization of road "green practices", to align all the stakeholders' interests towards a globally more sustainable road system. |
| Keywords: | road maintenance, sustainability, key performance indicators, pavement asset management, public investment policies, life cycle |
| Date: | 2022–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04468075&r=env |
| By: | Rottner, Elisa |
| Abstract: | Rising energy prices might lead to adjustments along the supply chain and make firms outsource energy-intensive processes. This could lead to carbon leakage. I provide empirical evidence whether energy price-induced offshoring occurs using firm-level data on energy use, imports, and material purchases. I document that import shares in German industry have increased between 2009 and 2013, and that energy prices correlate positively with imports. Despite this positive correlation, I show in a quasi-experimental setup that a sudden drastic drop in electricity prices has not led firms to significantly reduce their imports or their domestic material purchases relative to an unaffected control group. This holds for very electricityintensive firms; for firms using easily tradable goods; and both for regular importers with a trade network and occasional/non-importers. |
| Keywords: | Offshoring, Energy Prices, Climate Policy, Manufacturing |
| JEL: | F14 F18 L60 Q41 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283593&r=env |
| By: | Pérez S., Rodrigo; Castillo, Mayarí; Cazzuffi, Chiara |
| Abstract: | Climate change is a pressing issue, affecting the lives of all people across the world. However, poorer and excluded communities are usually more affected, especially in low-income countries. Among them, women but particularly indigenous groups in rural areas seem to bear the bulk of the impacts produced by climate change and its many manifestations. We study the relationship between droughts and incomes and labor market outcomes in Chile over the period 1990-2017, focusing in particular on indigenous women. Our results show that overall indigenous women are the group most severely affected by droughts, decreasing their income, their probability of working in agriculture, and increasing their likelihood of working as an unpaid family worker or being out of the labor force. Results are robust to the use of different variables to measure droughts and to different econometric specifications. Our study corroborates the existence of marked heterogenous effects of climate change on different population groups and the vulnerability of indigenous communities to these shocks. |
| Keywords: | climate change;women;Indigenous groups;Water scarcity;Chile;Droughts |
| JEL: | E24 I31 J16 Q54 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13231&r=env |
| By: | Zeynep Kantur (Baskent University) |
| Abstract: | A stranded asset refers to economic assets that lose their ability to contribute value within their own sector and in other sectors due to the decarbonization of production processes required to meet global climate targets. This process involves either idling or abandoning a portion of physical capital, which can harm the sector in which it is employed and propagate negative effects throughout the entire economy. This study examines the exposure of sectors in Latvia to the risk of physical capital stranding resulting from decarbonizing the economy. Using Input-Output Tables and capital stock data, we quantify the effects of stranded assets and find that the mining and quarrying sector has the highest external asset stranding multipliers. The sectors in Latvia most vulnerable to the impacts of global fossil stranding include land transportation and pipeline transport (H49), electricity, gas, steam, and air conditioning (D35), and agriculture (A01). |
| Keywords: | capital utilization, stranded assets, Input-Output Model, Ghosh multipliers |
| JEL: | C67 E22 L72 |
| Date: | 2024–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:ltv:dpaper:202401&r=env |
| By: | Boothroyd, Anne; Adams, Vanessa; Alexander, Karen; Hill, Nicole |
| Abstract: | Establishing Marine Protected Areas (MPAs) in international waters is critical for the conservation of marine biodiversity. The Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR) is a global leader in high seas conservation, having established two international MPAs in Antarctica’s Southern Ocean, as part of a commitment to establish a representative system of MPAs for the CAMLR Convention Area. However, proposals for new MPAs have faced ongoing challenges in the planning process, and since 2016 the Commission has been unable to agree and implement further MPAs, which has stalled the development of the circumpolar representative system. The key aim of this study was to identify how features of the planning process contribute to outcomes, problems and solutions. We conducted semi-structured interviews with 18 scientists, policymakers, and expert observers from fisheries and environmental non-government organisations involved in CCAMLR MPA planning, to explore their perceptions (experiences, opinions, impressions) of the planning process. Our results identify four key features that are influential across multiple areas of the CCAMLR MPA planning and decision-making process: i) a lack of common understanding; ii) the influence of historical relationships and legacy in subsequent planning processes; iii) inconsistencies between expectations of and requirements for MPA planning; and iv) the degree to which CCAMLR principles and practices, norms, and values are shared. We describe how these four features may help or hinder the effectiveness of the current planning process. We then make suggestions regarding how the planning process could be adapted to capitalise on these features. |
| Date: | 2024–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:cwun6&r=env |
| By: | H. Kava; K. Spanaki (Audencia Business School); T. Papadopoulos; S. Despoudi; O. Rodriguez Espindola; M. Fakhimi |
| Abstract: | We introduce the BDA dynamics and explore the associated applications in renewable energy sector with a focus on data-driven innovation. Our study draws on the exponential growth of renewable energy initiatives over the last decades and on the paucity of literature to illustrate the use of BDA in the energy industry. We conduct a qualitative field study in the UK with stakeholder interviews and analyse our results using thematic analysis. Our findings indicate that no matter if the importance of the energy sector for ‘people's well- being, industrial competitiveness, and societal advancement, old fashioned approaches to analytics for organisational processes are currently applied widely within the energy sector. These are triggered by resistance to change and insuicient organisational knowledge about BDA, hindering innovation opportunities. Furthermore, for energy organisations to integrate BDA approaches, they need to deal with challenges such as training employees on BDA and the associated costs. Overall, our study provides insights from practitioners about adopting BDA innovations in the renewable energy sector to inform decision-makers and provide recommendations for future research |
| Keywords: | Big data analytics, Energy sector, Renewable energy, Difusion of, innovations, Field study |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04478933&r=env |
| By: | Pica-Téllez, Andrés; Cid, Francisca; Ferrer, Jimy; Francos, Martin; Dishmey, Yanna |
| Abstract: | Este documento, que forma parte de un conjunto de estudios nacionales realizados por la División de Desarrollo Sostenible y Asentamientos Humanos de la Comisión Económica para América Latina y el Caribe (CEPAL) en apoyo a los sistemas nacionales de inversión pública de América Latina y el Caribe, presenta la estimación del precio social del carbono para la República Dominicana. En el documento se incluyen un breve análisis sobre la conveniencia de usar el precio social del carbono como parte de la evaluación de los proyectos de inversión y opciones metodológicas para definir ese precio. Se dan a conocer distintas experiencias internacionales sobre su uso y algunos valores sugeridos de precios sociales del carbono estimados por organismos internacionales. Tomando en cuenta las características de cada metodología, sus ventajas y desventajas, sus necesidades de información y la disponibilidad en el país, se seleccionó como mejor alternativa el costo social del carbono para la República Dominicana. Del estudio surgen recomendaciones para utilizar un precio social del carbono de 26 dólares de 2021 por tonelada de carbono. Además, se realiza una estimación preliminar de los valores proyectados para 2025 y 2030, sobre la base del modelo dinámico integrado de cambio climático y economía (Dynamic Integrated Climate-Economy -DICE) y el análisis de políticas del efecto invernadero (Policy Analysis of Greenhouse Effect -PAGE), usando la tasa de descuento social decreciente. |
| Date: | 2024–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68810&r=env |
| By: | Rabi Mohtar |
| Abstract: | The fundamental role that water resources play in human development has been highlighted in multiple ways; the United Nations SDGs underline 17 different goals and over a hundred targets to be achieved by 2030. Out of 169 SDG targets, 59 were found to have direct links and synergies with the water goal SDG6 (UN Water, 2016). Careful policy making and interventions need to be implemented to avoid conflict among sectors and tradeoffs must be well established. The Integrated Water Resources Management (IWRM – since 1992) was adopted by most countries and made significant strides in formulating a good foundation for policies and synergies between stakeholders. Nevertheless, IWRM concepts need to be adaptive and revisited to achieve the Agenda 2030 targets. This policy brief introduces water management as a system of interactions between water and other vital resources including food, energy, and health among others; it presents several concepts to bring about policy coherence and quantitative protocols for a more cohesive implementation of policies and tradeoffs in the water sector and beyond. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb08-23&r=env |
| By: | Braude, Hernán; Castro, Victoria; Fiorentin, Florencia |
| Abstract: | En el contexto del acelerado y preocupante cambio climático y en línea con la Agenda 2030 para el Desarrollo Sostenible y el Acuerdo de París, los países de América Latina han incorporado de forma explícita en sus estrategias de desarrollo la búsqueda de soluciones de tecnología ecológica y la innovación como elementos fundamentales para promover el crecimiento económico y el desarrollo sostenible. En esa línea, y con el objetivo de transitar hacia modelos de desarrollo productivo más sustentables, los países de América Latina han establecido estrategias y políticas de innovación sostenible propias, experiencias que se analizan a lo largo de este documento. El examen de la bibliografía y los marcos teóricos relevantes para analizar la política de innovación verde y el relevamiento de algunas experiencias internacionales y de siete países latinoamericanos (Argentina, Brasil, Chile, Colombia, Costa Rica, México y Uruguay), permite echar luz sobre la situación regional en cuanto a las estrategias y políticas implementadas, así como sobre los modos de intervención para potenciar la transición verde y, con ella, el desarrollo sostenible. |
| Date: | 2024–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68842&r=env |
| By: | Carballo, Jerónimo; Marra de Artiñano, Ignacio; Sztajerowska, Monika; Volpe Martincus, Christian |
| Abstract: | Sustainability has become an imperative. Understanding the effects of countries policies thereon has therefore acquired vital importance. This is particularly the case with ubiquitous policies such as investment promotion. In this paper, we address this timely policy question from an environmental perspective. We examine whether and how investment promotion policies affect Latin American economies emissions of pollutants. To do so, we create and use a unique dataset that combines data on multinational firms location, investment promotion agencies (IPAs) assistance, and pollutant-specific emission intensities across countries and sectors over time. Our analysis yields three main findings. First, multinational firms operating in Latin America have higher emission intensities than those located in Europe and that this is primarily driven by their sectoral distribution. Second, IPA client portfolios are biased toward more polluting multinational firms and this is mainly associated with the type of sectors targeted by the IPAs. Third, while on average the effects of IPA assistance are similar across multinational firms with different pollution levels, these are stronger on more polluting ones within priority sectors. These findings highlight the need and relevance of data-based evidence to uncover potential tensions and balance different economic and sustainability goals. |
| Keywords: | Investment Promotion;Multinational Production;Sustainability |
| JEL: | F23 F14 F13 L23 L25 L52 O25 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13306&r=env |
| By: | Hugo Rojas-Romagosa |
| Abstract: | Russia’s war in Ukraine has disrupted the supply of natural gas for many European countries, triggering an energy crisis and affecting energy security. We simulate the medium-term effects of these trade disruptions and find that most European countries have limited GDP losses but those more dependent on Russian natural gas face moderate losses. European fossil fuel consumption and emissions are reduced and after accounting for the war impacts, achieving Europe’s emission targets becomes slightly less costly. In terms of energy security, the war eliminates European energy dependency from Russian imports, but most of the natural gas and oil imports will be substituted by other suppliers. We also find that constructing a new Russian pipeline to China does not provide significant macroeconomic benefits to either country. |
| Keywords: | Energy supply; energy security; trade disruptions; greenhouse gas emissions; computable general equilibrium |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/039&r=env |
| By: | Van Vyve, Mathieu (Université catholique de Louvain, LIDAM/CORE, Belgium) |
| Abstract: | Identifying when a given threshold has been breached in the global temperature record has become of crucial importance since the Paris Agreement. However there is no formally agreed methodology for this. In this work we show why local smoothing methodologies like the moving average and other climate modeling based approaches are fundamentally ill-suited for this purpose, and propose a better one, that we call the minmax average. It has strong links with the isotonic regression, is conceptually simple and is arguably closer to the intuitive meaning of ”breaching the threshold” in the climate discourse, all favorable features for acceptability. When applied to the global mean surface temperature anomaly (GMSTA) record from Berkeley Earth, we obtain the following conclusions. First, the rate of increase has been ~+0.25◦C per decade since 1995. Second, based on this new estimate alone, we should plausibly expect the GMSTA to reach 1.49◦C in 2023 and not go below that on average in the medium-term future. When taking into account the record temperatures of the second half of 2023, not having breached the 1.5◦C threshold already in July 2023 is only possible with record long and/or deep La Nina in the following years. |
| Date: | 2024–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2024004&r=env |
| By: | Lee, Sul-Ki (Korea Institute for Industrial Economics and Trade) |
| Abstract: | South Korea's active hydrogen industry policy has fueled significant growth, with the number of firms increasing 56 percent by 2021 and industry-wide revenue rising 474 percent. Participation by large corporations led to this rapid expansion, but our analysis identifies further key steps: 1) developing and localizing core materials and technologies to transform the industry into a new growth engine, and 2) incentivizing small and medium enterprises to participate, sustaining the momentum. This study proposes two key policy actions to strengthen the position of the Korean hydrogen industry: 1) foster targeted demand, particularly in the mobility sector, and 2) bolster the supply chains of core materials for hydrolysis and fuel cells. |
| Keywords: | hydrogen; hydrogen energy; alternative energy; renewable energy; green hydrogen; hydrogen policy; hydrogen industry; hydrogen fuel cells; transportation industry; hydrogen supply chains; Korea; KIET |
| JEL: | Q41 Q42 Q48 Q55 Q58 |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietrp:2023_022&r=env |
| By: | Schwartz, Demitrius; Batabyal, Amitrajeet |
| Abstract: | The potential of rooftop solar power has been identified as a main driver of clean energy adoption in an urban environment. While residential solar projects have lower capacity than commercial systems, residential solar represents most of the installation base for rooftop solar projects. Rooftop solar adoption in the commercial market lags residential solar installation. To better understand why this is the case, we conduct a case study of a small, manufacturing firm. Based on the firm's energy demand and the physical attributes of its location, we study a 25-kilowatt solar array using the National Renewable Energy Laboratory’s (NREL) System Advisor Model (SAM). Our empirical study is used to evaluate the economic prospects of a rooftop solar installation project for the firm under study. This analysis sheds light on the financial ramifications of the adoption of solar panels by small, commercial firms in New York state. |
| Keywords: | Decision-Making, Incentive, Photovoltaic System, Solar Energy, Small Business |
| JEL: | D81 M21 Q42 |
| Date: | 2023–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120361&r=env |
| By: | Baraldi, Anna Laura; Cantabene, Claudia; De Iudicibus, Alessandro |
| Abstract: | It is well documented that organized crime heavily affects the waste management system. This paper focuses on examining the impact of Law 164/1991, one of Italy’s most stringent measures against organized crime. The law, designed to counteract suspected mafia infiltration by mandating the dissolution of city councils, is investigated for its role in reinstating a more efficient waste management system. This involves an increase in selective waste collection for recycling purposes. We exploit the staggered enforcement of Law 164/1991 to show that both the percentage and the per-capita tonnes in selective waste collection, measured for municipalities in Apulia, Calabria, Campania and Sicily, increase sharply starting from the first election after compulsory administration in dissolved municipalities compared to the control group of those never dissolved; the average treatment effect of the anti-mafia policy is measured in a 5 percentage points and 17.5 Kg increase in the percentage and in per-capita tonnes of selective waste collection, respectively. This outcome is influenced by the city council dismissal, as it severs the connections between organized crime and local politicians. The resulting refreshed pool of elected officials, characterized by lower levels of corruption, then implements policies that are unfavorable to organized crime. This leads to a more effective allocation of public funds in sectors specifically targeted by organized crime, such as waste management. |
| Keywords: | Selective waste collection, Anti-mafia policies, Staggered Diff-in-diff, Corruption |
| JEL: | C2 D73 D78 I38 K42 Q53 |
| Date: | 2023–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120296&r=env |
| By: | Saade Hazin, Miryam; Constantino, Roberto |
| Abstract: | Este documento presenta un panorama amplio del financiamiento y sus opciones para fondear las necesidades de infraestructura sostenible en los países de América Latina y el Caribe para la implementación de los objetivos de la Agenda 2030, así como sobre los principales desafíos que subsisten en este ámbito. |
| Date: | 2024–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col025:69040&r=env |
| By: | Océane Biabiany (INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Eduardo Chia (UMR Innovation - Innovation et Développement dans l'Agriculture et l'Alimentation - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - 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) |
| Abstract: | A partir de un proyecto de investigación-acción en Guadalupe (Francia) para el co-diseño de sistemas agroecológicos innovadores, exploramos una grilla (matriz) de lectura y proponemos un análisis de la participación de los investigadores y de los campesinos en la gobernanza. Analizamos la participación a través de los instrumentos y dispositivos de la situación de gestión iniciada por la decisión de realizar la investigación-acción, y en particular las relaciones entre ficciones, fricciones y modos de coordinación. Los resultados nos incitan a cuestionar el "interesamiento" (Callon, 1986) de actores y de investigadores en situaciones controvertidas. |
| Keywords: | governance, instruments, innovation, agroecology, participación, gobernanza, instrumentos, innovación, agroecología participation |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04475003&r=env |
| By: | Kuchler, Fred; Sweitzer, Megan; Chelius, Carolyn |
| Abstract: | U.S. food suppliers make claims about their production processes on food packaging that highlight attributes some consumers want while charging a higher price than for unlabeled products. Some labels use such claims as “USDA Organic” and “raised without antibiotics, ” which require different and more expensive production techniques than conventional agriculture. However, food suppliers can use the label that claims the food is “natural” at a relatively low cost because regulatory agencies treat the claim as meaning nothing artificial was added and the product was minimally processed. Numerous consumer food choice studies concluded that consumers equate the natural label on food with healthier food choices and more costly production practices that signify environmental stewardship. Informed by these previous studies’ findings, the authors of this report estimate the frequency with which food suppliers make the natural claim on food packaging labels. Estimates are based on scanner data and comprehensive label data. Across all foods in 2018, 16.3 percent of retail food expenditures and 16.9 percent of all items purchased (unit sales) were for foods labeled natural, whereas 11.0 percent of Universal Product Codes (UPC) in stores were labeled natural on the packaging. Expenditures for food labeled natural were larger than expenditures for foods labeled USDA Organic. Natural labels were found predominately on processed products. For example, 95.6 percent of expenditures for vitamins and meal supplements were for products labeled natural, compared with 0.5 percent of expenditures for potatoes. |
| Keywords: | Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Livestock Production/Industries, Marketing |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uerseb:340804&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) |
| Date: | 2023–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04469217&r=env |
| By: | Matchaya, Greenwell (International Water Management Institute); Makombe, T.; Mihaylova, N. G. |
| Keywords: | Food systems; Transformation; Databases; Policies; Sustainable Development Goals; Indicators; Stakeholders |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:bosers:h052413&r=env |
| By: | Martinez-Espiñeira, Roberto; Pérez Urdiales, María |
| Abstract: | Standard water affordability measures that only account for expenditure on piped water are unlikely to adequately capture the situation of all consumers in developing countries, who often experience water service quality issues and must rely on coping strategies. We construct and compare a series of water affordability ratios including coping costs, and we also adjust these ratios by normative judgements about the need for coping strategies. We use nationally representative household-level data from 18 countries in Latin America and the Caribbean, providing, for the first time, a regional perspective on water affordability. We show that the share of income devoted to water expenses substantially increases when we consider coping costs, particularly affecting the bottom 20% of the income distribution. These findings should be of interest to policy makers aiming at promoting access to safe and affordable water as we also identify the characteristics associated with water affordability issues. |
| Keywords: | water affordability;water quality issues;regulation;Latin America and the Caribbean;water tariff design;water and sanitation tariffs;drinking water quality |
| JEL: | Q21 Q23 Q25 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13395&r=env |
| By: | Odran Bonnet (Insee); Etienne Fize (Institut des Politiques Publiques, Paris School of Economics); Tristan Loisel (Insee, Crest); Lionel Wilner (Insee, Crest) |
| Abstract: | This paper exploits the introduction of the German carbon tax in 2021 as well as excise tax rebates on fuel in both France and Germany, consecutive to the 2022 oil crisis, to infer how fuel tourism responds to changes in relative prices. Based on French high-frequency transaction-level data issued from individual banking accounts, we find substantial displacement between foreign and domestic consumption. When relative prices increase by 1%, the relative cross-border demand decreases by 7.7%. In border areas, the elasticity of tax revenue with respect to foreign prices is as high as 0.5. Moreover, there is no substantial difference in demand response to either carbon or excise tax. Such empirical evidence illustrates the importance of coordinating tax policy within EU. |
| Keywords: | Commodity taxation; Tax coordination; Carbon pricing; Fuel tourism; Transaction-level data. |
| JEL: | H20 H23 H77 R48 |
| Date: | 2024–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2024-06&r=env |
| By: | Peacock, Jacob Robert (The Humane League Labs) |
| Abstract: | Plant-based meats, like the Beyond Sausage or Impossible Burger, and cultivated meats have become a source of optimism for public health, environmental and animal welfare advocates hoping to mitigate the myriad harms of animal-based foods by replacing them with perfect alternatives. Some have proposed that these substitutes might soon replace animal-based meats based on the supposition that price, taste and convenience are the primary drivers of food choice. Thus, it is hypothesized that if a plant-based meat matches (or exceeds) its animal-based counterpart on the basis of these three criteria, consumption will largely shift from animal-based to plant-based. However, this hypothesis has received little critical attention. To fill this gap, we will review evidence testing the PTC hypothesis, including cross-sectional surveys, hypothetical discrete choice experiments, a field experiment and commercial case studies. Ultimately, given current consumer preferences, we do not find support for the PTC hypothesis. However, PBMs may still have important potential as a tool for reducing meat consumption. |
| Date: | 2024–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:dy76n&r=env |
| By: | Ajzenman, Nicolás; Balza, Lenin; Bejarano, Hernan; De Los Rios, Camilo; Gómez Parra, Nicolás |
| Abstract: | Using an online multi-country video-vignette survey experiment, we measure bias against extractive industries and foreign firms in individuals perceptions and preferences related to industrial projects with potential economic benefits and environmental costs. Individuals face a hypothetical industrial investment project with a randomly assigned implementing firm, which varies in one or two dimensions: nationality (foreign or national), and industrial sector (extractive or generic). We elicit several incentivized and non-incentivized measures of acceptance of hypothetical investments. We find a precisely estimated null effect on willingness to pay to block the projects across experimental treatments: respondents express similar reactions to the same information independently of the firms origin or industrial sector. |
| Keywords: | experimental economics;extractive industries;Perceptions;willingness– to–pay;valuation |
| JEL: | C90 D70 D90 L71 Q30 Q51 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13325&r=env |