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on Environmental Economics |
| By: | Stephen P. Holland; Matthew Kotchen; Erin T. Mansur; Andrew J. Yates |
| Abstract: | The phasedown of coal for electricity generation is considered vital to meeting global climate targets. Many countries have pledged to stop using coal, with some as early as 2030. While the United States has no target currently in place, several states do. In this paper, we examine the feasibility of phasing down U.S. coal-generated electricity given the existing fleet of power plants. In particular, we take consumption as given and evaluate how prioritizing natural gas generation over that of coal would change emissions and operating costs. To do this, we develop a replacement algorithm based on transmission regions and marginal cost comparisons. Using our preferred scenarios, we find that between 66 and 94 percent of coal generation could be replaced immediately, reducing electricity sector carbon dioxide (CO₂) emissions between 18 and 29 percent – equivalent to between 5 and 8 percent of total U.S. energy related emissions. The cost range is between $49 and $92 per ton of CO₂, where benefit-cost ratios are favorable in some scenarios considering local pollutant co-benefits alone. Despite the command-and-control nature of prioritizing natural gas generation, we find it relatively cost effective even in comparison to a Pigouvian tax. We examine sensitivity of the results to transmission regions, replacement cost conditions, natural gas pipeline capacity, and alternative fuel prices. |
| JEL: | Q40 Q48 Q54 Q58 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32235&r=env |
| By: | Paolo Angelini (Bank of Italy) |
| Abstract: | Financial intermediaries are integrating climate in their portfolio management and lending strategies. A shared objective is to properly manage the related risks. Many are also driven by the desire to do their part to help the transition towards a low-carbon economy. In their efforts to pursue these two objectives, many intermediaries have been pledging to reduce the carbon emissions financed by the assets side of their balance sheets, and to achieve net zero financed emissions by 2050, possibly meeting intermediate quantitative targets. Divesting from carbon-intensive firms and investing in low-carbon ones should reduce transition risk (the first objective), and should make access to finance more difficult for high emitters, pushing them to curtail investment in polluting technologies (the second objective). This paper argues that this strategy, apparently simple and sensible, hides numerous complexities whose implications have not yet been fully fleshed out, and that some of its consequences might be undesired. In a nutshell, in spite of substantial progress in recent years, more research is necessary to shed light on how the financial sector can effectively pursue the above objectives. |
| Keywords: | financial intermediaries, green transition, climate change, decarbonization |
| JEL: | G20 G32 Q01 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_840_24&r=env |
| By: | Annalisa Frigo (Bank of Italy); Andrea Venturini (Bank of Italy) |
| Abstract: | In light of increased natural risks, this work studies the demand by firms for insurance against the physical risks posed by climate change. This analysis is based on the Invind sample, a survey conducted by the Bank of Italy on a sample of Italian companies in 2021. The questions relating to insurance coverage are cross-referenced with the characteristics of the company and the riskiness of their territory, geolocating the companies' production plants and exploiting the granularity of the climatological maps provided by the Euro-Mediterranean Center on Climate Change and the seismic risk maps of the National Institute of Geophysics and Volcanology. The empirical analysis suggests that exposure to seismic risk is positively associated with the demand for insurance policies against natural and climate damage, with heterogeneous effects on companies operating in industry and services. On the other hand, no evidence emerges that the potential impacts from climate change contribute to demand for insurance. |
| Keywords: | insurance, climate, natural disasters |
| JEL: | G22 Q54 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_830_24&r=env |
| By: | Arvidsson, Niklas (KTH Royal Institute of Technology); Harahap, Fumi; Urban, Frauke; Nurdiawati, Anissa |
| Abstract: | Money and payments are central to modern economies and societies, yet there is increasing concern over the environmental impacts of various payment services, particularly from a climate perspective. This report examines the climate impact of retail payments in Sweden in 2021, including cash, card, Giro payments, Swish payments, and payment apps. The aim is to develop a method for measuring the climate impact of existing retail payment services in the Swedish market and to evaluate their individual and aggregate climate impact. The study identifies areas that can be targeted to reduce the overall impact and provide valuable information for sustainable decision-making related to payment services. |
| Keywords: | Climate Impact; Retail Payment; LCA |
| JEL: | E42 O44 Q54 |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:rbnkwp:0431&r=env |
| By: | Bruno Fontaine (SMASH - Société de Mathématiques Appliquées et de Sciences Humaines, 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); Antoine Teixeira (ADEME - Agence de l'Environnement et de la Maîtrise de l'Energie, 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); Julien Lefevre (AgroParisTech, 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, Université Paris Saclay (COmUE)); Fanny Vicard (ADEME - Agence de l'Environnement et de la Maîtrise de l'Energie) |
| Abstract: | Net-zero emissions scenarios (NZE) generally do not focus on imported green-house gases emissions. On an other side, input-ouput environmental assessments of decarbonization scenarios often miss the macroeconomic consequences of the energy transition. In this study, we built and evaluated the material and environmental footprints of detailed and coherent NZE scenarios for France, describing a various range of mitigation actions and transition ideologies, through a bottom-up coupling with hybrid input-output analysis (HIO). We discuss the relative effectiveness of these actions, classified into sufficiency, efficiency and substitution categories. This highlights the efficiency of sufficiency actions to reduce both material and carbon footprints. |
| Keywords: | Sufficiency, efficiency, Green growth, net-zero emissions, Carbon footprint, Input-output |
| Date: | 2023–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04483018&r=env |
| By: | Fredj Jawadi (LUMEN - Lille University Management Lab - ULR 4999 - Université de Lille); Philippe Rozin; David Bourghelle |
| Abstract: | This paper analyzes the dynamics of CO2 emissions over the last decade for a large group of 25 European countries, an issue that is at the center of the ecological transition project involving various commitments (COP21, COP26, G20 meetings, etc.). To this end, our model measures the repercussions of energy price shocks (oil, gas, coal) for carbon emissions, as well as changes in industrial production and sustainable development in the context of the coronavirus pandemic. Using annual data for 23 EU countries, together with Russia and the UK, our findings show that CO2 emissions reacted significantly to oil and coal price shocks and vary with industrial production cycles. We quantified this reaction while computing the related elasticities. Further, while a significant reduction in CO2 emissions was observed during the COVID-19 pandemic, the stepping up of investment in sustainable development and renewable energy consumption also had a negative impact on CO2 emissions. This suggests that the key driver to reducing the risk of climate change and lowering high carbon dioxide (CO2) emissions involves significant commitment to sustainable development. |
| Keywords: | CO2 emissions COVID-19 Fossil energy Renewable energy Panel data |
| Date: | 2022–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04412667&r=env |
| By: | Augustin Danneaux (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, LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel); Thomas Le Gallic (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, SMASH - Société de Mathématiques Appliquées et de Sciences Humaines); Julien Lefèvre (AgroParisTech, 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: | The rapid phase-out of fossil fuels required to meet the ambitious targets of the Paris Agreement raises concerns about sectoral decline and socioeconomic impacts. This study addresses the need to refine the assessment of employment impacts associated in transition scenarios. We investigate two climate change mitigation scenarios and a baseline using an Integrated Assessment Model (IAM) and augment the overall analysis by incorporating a data science approach. We thus developped an enhanced coal nexus within the Imaclim-R framework and a sub-national economies dynamics module. The latter enables the results to be scaled down and provide qualitatively new information. The analysis quantifies job losses and their timing, highlighting regional disparities and vulnerability. The findings underscore the importance of integrating support policies for affected employees into carbon neutrality programs. Anticipation and rapid implementation of such policies are crucial. Understanding transition risks and developing appropriate support policies can enhance the feasibility and acceptance of transition pathways. |
| Date: | 2023–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04477711&r=env |
| By: | Suganthi Pazhanivel Koushika; Anbalagan Krishnaveni; Sellaperumal Pazhanivelan; Alagirisamy Bharani; Venugopal Arunkumar; Perumal Devaki; Narayanan Muthukrishnan |
| Abstract: | The loss of soil organic carbon (SOC) poses a severe danger to agricultural sustainability around the World. This review examines various farming practices and their impact on soil organic carbon storage. After a careful review of the literature, most of the research indicated that different farming practices, such as organic farming, cover crops, conservation tillage, and agroforestry, play vital roles in increasing the SOC content of the soil sustainably. Root exudation from cover crops increases microbial activity and helps break down complex organic compounds into organic carbon. Conservation tillage enhances the soil structure and maintains carbon storage without disturbing the soil. Agroforestry systems boost organic carbon input and fasten nutrient cycling because the trees and crops have symbiotic relationships. Intercropping and crop rotations have a role in changing the composition of plant residues and promoting carbon storage. There were many understanding on the complex interactions between soil organic carbon dynamics and agricultural practices. Based on the study, the paper reveals, the role of different agricultural practices like Carbon storage through cover crops, crop rotation, mulching Conservation tillage, conventional tillage, zero tillage and organic amendments in organic carbon storage in the soil for maximum crop yield to improve the economic condition of the cultivators. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.07530&r=env |
| By: | Lackner, Teresa; Fierro, Luca Eduardo; Mellacher, Patrick |
| Abstract: | The paper introduces an integrated approach, blending Opinion Dynamics with a Macroeconomic Agent-Based Model (OD-MABM). It aims to explore the co-evolution of climate change mitigation policy and public support. The OD-MABM links a novel opinion dynamics model that is calibrated for European countries using panel survey data to the Dystopian Schumpeter meeting Keynes model (DSK). Opinion dynamics regarding stringent climate policy arise from complex interactions among social, political, economic and climate systems where a household's opinion is affected by individual economic conditions, perception of climate change, industry-led (mis-)information and social influence. We examine 133 policy pathways in the EU, integrating various carbon tax schemes and revenue recycling mechanisms. Our findings reveal that while effective carbon tax policies initially lead to a decline in public support due to substantial macroeconomic transition costs, they concurrently drive a positive social tipping point in the future. This shift stems from the evolving economic and political influence associated with the fossil fuel-based industry, gradually diminishing as the transition unfolds. Second, hybrid revenue recycling strategies that combine green subsidies with climate dividends successfully address this intertemporal tradeoff, broadening public support right from the introduction of the carbon tax. |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:rdfze&r=env |
| By: | Rimjhim Aggarwal; Piergiorgio M Carapella; Ms. Tewodaj Mogues; Julieth C Pico-Mejia |
| Abstract: | This paper evaluates the additional spending needed to meet core targets of selected Sustainable Development Goals (SDGs) while accounting for the associated cost to address climate risks. The SDGs under study are those related to human and physical capital development. An additional 3.8 percent of global GDP, or US$3.4 trillion, of public and private spending will be required by 2030 to achieve a strong performance in the selected SDGs while addressing associated climate risks. This includes an increase of 0.4 percent of global GDP (US$358 billion) compared to estimates that do not account for mitigation and adaptation needs within these sectors. LIDCs and SSA experience the highest climate-related cost augmentation relative to GDP, while EMEs (driven by large Asian emerging economies) bear the largest cost in absolute terms. |
| Keywords: | Sustainable Development Goals; Climate change; Spending; Expenditure; Health; Education; Water and sanitation; Electricity; Roads.; expenditure Needs; sanitation infrastructure Improvement; wash infrastructure improvement; road infrastructure; water infrastructure Improvement; Sustainable Development Goals (SDG); Infrastructure; Natural disasters; Global |
| Date: | 2024–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/049&r=env |
| By: | Francis X. Diebold (University of Pennsylvania); Glenn D. Rudebusch (Brookings Institution) |
| Abstract: | Arctic sea ice has steadily diminished as atmospheric greenhouse gas concentrations have increased. Using observed data from 1979 to 2019, we estimate a close contemporaneous linear relationship between Arctic sea ice area and cumulative carbon dioxide emissions. For comparison, we provide analogous regression estimates using simulated data from global climate models (drawn from the CMIP5 and CMIP6 model comparison exercises). The carbon sensitivity of Arctic sea ice area is considerably stronger in the observed data than in the climate models. Thus, for a given future emissions path, an ice-free Arctic is likely to occur much earlier than the climate models project. Furthermore, little progress has been made in recent global climate modeling (from CMIP5 to CMIP6) to more accurately match the observed carbon-climate response of Arctic sea ice. |
| Keywords: | Arctic sea ice area; climate change; climate prediction |
| JEL: | Q54 C22 |
| Date: | 2023–10–07 |
| URL: | http://d.repec.org/n?u=RePEc:pen:papers:24-010&r=env |
| By: | Jeferson Arapoc (University of the Philippines Los Banos); Charina Lyn Amedo-Repollo (University of the Philippines Diliman); Asa Jose Sajise (University of the Philippines Los Banos); Allyssa Mari Mercado (ACERD); Senen Bacani (Former DA Secretary) |
| Abstract: | This research addresses the pressing need for comprehensive sustainability metrics in the Philippines, focusing on its blue and green economy sectors. Despite abundant coastlines and biodiversity crucial to the nation's economic health, a gap in systematic monitoring impedes Local Government Units (LGUs) from assessing environmental and sustainability performance. This study proposes "Blue and Green Economy Scorecards" as innovative tools for LGUs, fostering transparency and accountability. Drawing inspiration from established indices and emphasizing a "Ridge to Reef" approach, these scorecards consider the intrinsic value of ecosystem services. Initial categories and indicators are derived from international models like the Human Development Index, with a methodology involving literature reviews, expert consultations, and data collection. Weighting and aggregation steps produce composite scores, empowering LGUs to monitor and advance sustainability. This initiative aligns with socio-economic objectives and underscores the Philippines' commitment to international agreements. The scorecards represent a pivotal step toward a sustainable blue and green economy, bridging the gap in monitoring tools and facilitating informed governance decisions for the nation's ecological well-being. |
| Keywords: | blue and green economy, scorecards, livable cities |
| JEL: | Q01 Q21 Q56 R58 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:agy:dpaper:202411&r=env |
| By: | Marinkovic, Catalina; Vogt-Schilb, Adrien |
| Abstract: | At least ten Latin American and Caribbean countries have pledged to achieve carbon neutrality. Has electricity planning in the region evolved towards reaching these goals? We compare power generation capacity in 2023 to announced plans in 2019. We then estimate committed emissions from existing and planned power plants that is emissions that would result from the normal operations of these plants during their typical lifetime and compare them to emissions from power generation in published IPCC scenarios. We find that fossil fuel planned capacity has decreased by 47% since 2019, mainly due to the cancellation of 50% of coal and 40% of gas projects, compared to an increase of 24% of renewable energy projects. But existing plants in the region will emit 6.7 GtCO2 during their lifespan, and if all planned plants are built, they will add 4.9 GtCO2, totaling 11.6 GtCO2, exceeding median carbon budgets for 1.5 and 2C - consistent IPCC pathways (2.3 and 4.3 GtCO2). Natural gas power plants are the largest contributor to existing (62%) and planned (75%) emissions (versus 24% and 23% for coal). We evaluate emissions reduction strategies to achieve carbon budgets. Assuming no new coal plants come into operation, announced gas and oil projects are canceled at the same rate as in the past four years, all fossil fueled plant lifetimes are reduced by 10 years, and all new natural gas displaces existing coal, committed emissions fall by 67%, meeting the 2C budget, but still twice as large as the median 1.5C budget. Our results suggest that while progress is being made, energy planning in the region is not yet consistent with global climate goals as reflected by the IPCC scenario database. |
| Keywords: | stranded assets;carbon budget;electricity generation;climate policy;Paris Agreement; Solar power; Wind power |
| JEL: | Q1 Q4 Q54 Q5 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13143&r=env |
| By: | Caroline Fyfe (Motu Economic and Public Policy Research); Phoebe Taptiklis (Motu Economic and Public Policy Research); Dominic White (Motu Economic and Public Policy Research); Niven Winchester (Motu Economic and Public Policy Research) |
| Abstract: | The purpose of this report is to review greenhouse gas (GHG) emissions and climate change mitigation data and models. Building an evidence base to monitor and assess the impacts of initiatives is explicitly mentioned in Aotearoa New Zealand’s First Emissions Reduction Plan (05/2022). Economic-Environmental modelling plays an important role in decision making to achieve emission reduction targets. Data is hosted by a range of organisations and collected using different frameworks and methodologies. There is less awareness of data available through Stats NZ which may have led to it being underused. Main collated data sources are the GHG emissions account and the GHG emissions inventory. Sector specific data are available through relevant agencies. A detailed stock-take of New Zealand’s modelling capacity identified 84 climate change or climate change mitigation models: 13 multi-sector models, 23 land use and agricultural models, 25 energy models, and 23 transport models. The stock-take identified at least one model for each sector of the ERP, except for Building and Construction. Modelling capacity varies between sectors with those that are more developed, demonstrating greater interdependency between models. Almost all modelling takes a production-based approach. Capacity for a consumption-based approach was much more limited. Two examples of formal collaboration are identified through the review. No formal international collaboration (outside of international reporting requirements) was identified. A preference was expressed for modelling in-house to facilitate alignment with policy development. However, this may have contributed to lack of collaboration on progress towards common targets. Connections with groups outside of government are also limited. |
| Keywords: | Greenhouse gas emissions, Emissions abatement, Climate change modelling, Data management, Policy analysis |
| JEL: | C31 D58 Q4 Q54 Q58 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:23_06&r=env |
| By: | Pedro Romero Marques; Luiza Nassif Pires; Tainari Taioka; Jose Bergamin; Gilberto Tadeu Lima |
| Abstract: | Announced in June 2021, the never-implemented Green Recovery Plan for the Brazilian Legal Amazon Region (GRP) would be a green transition initiative to be carried out by the state governments of the region. The GRP represented the first large-scale proposal aiming at the transition to a low-carbon economy in Brazil and offered a preliminary framework to evaluate the opportunities and limitations of green development in Global South economies. The GRP's initial phase would provide an investment of 1.5 billion reais (around $315 million in September 2023) in four areas: control of illegal deforestation, sustainable development, green technology, and green infrastructure. This article presents a counterfactual analysis by assessing the impacts of green spending in Amazon on the labor market, quantitatively—in terms of the number of jobs created—and qualitatively—exploring the distribution of those jobs by region and according to gender and race categories. We build synthetic sectors representing each area of investment in a two-region input-output matrix (“Brazilian Amazon†and “Rest of Brazil†). Using employment multipliers, we simulate a demand shock on the Amazonian economy and its impact on job creation in the two regions. Results suggest that green spending in the Amazon offers good perspectives (but also highlights limitations) for a just transition to a low-carbon economy in Brazil: the effects on employment favored the female workforce (both black and white) relative to the male and black workforce in the Amazon, leading to inequality-reducing composition changes in the Brazilian workforce as whole. |
| Keywords: | Green and just transition; Brazilian Amazon; employment multipliers; green spending |
| JEL: | J15 Q57 Q58 R11 R53 R58 |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2024wpecon9&r=env |
| By: | Florian Bourgey (CMAP - Centre de Mathématiques Appliquées - Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique, Bloomberg L.P. Quantitative Finance Research - Bloomberg L.P.); Emmanuel Gobet (CMAP - Centre de Mathématiques Appliquées - Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique); Ying Jiao (ISFA - Institut de Science Financière et d'Assurances) |
| Abstract: | This paper investigates the impact of transition risk on a firm's low-carbon production. As the world is facing global climate changes, the Intergovernmental Panel on Climate Change (IPCC) has set the idealized carbon-neutral scenario around 2050. In the meantime, many carbon reduction scenarios, known as Shared Socioeconomic Pathways (SSPs) have been proposed in the literature for different production sectors in more comprehensive socioeconomic context. In this paper, we consider, on the one hand, a firm that aims to optimize its emission level under the double objectives of maximizing its production profit and respecting the emission mitigation scenarios. Solving the penalized optimization problem provides the optimal emission according to a given SSP benchmark. On the other hand, such transitions affect the firm's credit risk. We model the default time by using the structural default approach. We are particularly concerned with how the adopted strategies by following different SSPs scenarios may influence the firm's default probability. |
| Keywords: | Climate risk, transition risk, credit risk, Shared Socioeconomic Pathways, carbon emission reduction, optimal production profit |
| Date: | 2022–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03458299&r=env |
| By: | Maxime Ollier (Agricultural and Resource Economics - Institute of Natural Resource Sciences - ZHAW - Zurich University of Applied Sciences, UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEC - Chaire Economie du Climat - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres); Stéphane De Cara (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | The potential regressivity of an emission tax is a major obstacle to the implementation of this otherwise cost-effective instrument. Rebates may help overcome this difficulty. Their distributional consequences depend on their design and the distribution of agents' initial emissions and abatement costs. We develop a stylized analytical framework to derive general conditions under which a tax-and-rebate scheme increases income inequality and compare the performances of various rebate designs. This framework is applied to the regulation of greenhouse gas emissions from European agriculture. An emission tax with no rebate is found to substantially reduce agricultural emissions (by approximately −15% for a 100 €/tCOeq tax), but also strongly affect the total sector income (approximately −20% with the same tax rate) as well as increase income inequality. A flat rebate considerably reduces income inequality relative to pre-policy levels. For the same impacts on aggregate income and budget, a rebate proportional to initial emissions leaves pre-existing inequality virtually unchanged. A well-designed rebate can thus be critical for the acceptability of climate policy instruments. |
| Abstract: | La régressivité potentielle d'une taxe sur les émissions est un obstacle majeur à la mise en œuvre de cet instrument par ailleurs rentable. Les rabais peuvent aider à surmonter cette difficulté. Leurs conséquences distributives dépendent de leur conception et de la distribution des émissions initiales et des coûts de réduction des agents. Nous développons un cadre analytique stylisé pour dériver les conditions générales dans lesquelles un système de taxe et de rabais augmente l'inégalité des revenus et pour comparer les performances de différents modèles de rabais. Ce cadre est appliqué à la réglementation des émissions de gaz à effet de serre de l'agriculture européenne. On constate qu'une taxe sur les émissions sans rabais réduit considérablement les émissions agricoles (d'environ -15 % pour une taxe de 100 €/tCOeq), mais affecte aussi fortement le revenu total du secteur (environ -20 % avec le même taux d'imposition) et accroît l'inégalité des revenus. Un abattement forfaitaire réduit considérablement l'inégalité des revenus par rapport aux niveaux antérieurs à la politique. Pour les mêmes impacts sur le revenu global et le budget, un rabais proportionnel aux émissions initiales laisse les inégalités préexistantes pratiquement inchangées. Un rabais bien conçu peut donc être déterminant pour l'acceptabilité des instruments de la politique climatique. |
| Keywords: | Emission tax-and-rebate, Climate policy Emission tax-and-rebate Income inequality European agriculture |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04483758&r=env |
| By: | Francois Bareille (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Raja Chakir (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Derya Keles (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This paper investigates whether farmers adapt their pesticide use to cope with weather shocks. Using a unique, exhaustive dataset detailing all active substance purchases per zip code in France between 2014 and 2019, we econometrically explain pesticide purchase deviations by weather shocks. We identify heterogeneous weather impacts across pesticide types, seasons and locations. Because our analyses suggest limited year-to-year pesticide storage and farmers' adaptation along other margins, we interpret our estimates as true weather impacts on pesticide use. Our preferred estimates suggest that, ceteris paribus, farmers increase pesticide use by 7%-15% in 2050 under a RCP4.5 climate change scenario. |
| Abstract: | Cet article cherche à savoir si les agriculteurs adaptent leur utilisation de pesticides pour faire face aux chocs météorologiques. En utilisant un ensemble de données unique et exhaustif détaillant tous les achats de substances actives par code postal en France entre 2014 et 2019, nous expliquons économétriquement les écarts d'achat de pesticides par les chocs météorologiques. Nous identifions des impacts météorologiques hétérogènes selon les types de pesticides, les saisons et les lieux. Étant donné que nos analyses suggèrent un stockage limité des pesticides d'une année sur l'autre et l'adaptation des agriculteurs à d'autres marges, nous interprétons nos estimations comme de véritables impacts météorologiques sur l'utilisation des pesticides. Nos estimations privilégiées suggèrent que, toutes choses égales par ailleurs, les agriculteurs augmentent leur utilisation de pesticides de 7 % à 15 % en 2050 dans le cadre d'un scénario de changement climatique RCP4.5. |
| Keywords: | Adaptation, Climate change, Crop protection, Weather, Within-season adjustments |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04502178&r=env |
| By: | Guilherme MAGACHO; Antoine GODIN; Sakir Devrim Yilmaz; Danilo Spinola |
| Abstract: | Inclusion of developing and emerging countries in the low carbon transition agenda is imperative to meet climate goals, and policies should be tailored to their unique characteristics. Despite their significance, the structural specifics of these countries are frequently overlooked in low-carbon transition models. In an effort to establish an appropriate framework for such analyses, this article formulates a Structural Stock Flow Consistent (Structural SFC) model designed for open developing economies. This model categorizes production into three sectors: resource based exports, non-tradable goods and services, and other tradable sectors. While SFC models play a crucial role in emphasizing financial constraints, they frequently lack a multi-sectoral viewpoint and disregard structural specificities. Our model makes a dual contribution: (1) it offers a flexible framework capable of accommodating diverse country characteristics while balancing short-term demand with long term structural strategies, and (2) it underscores the inadequacy of relying solely on carbon pricing for economies deeply rooted in carbon-intensive sectors. By incorporating structurally distinct sectors within a genuinely monetary framework, the model enables us to comprehend the decisive role played by financial constraints arising from structural rigidities in shaping the dynamics of the low-carbon transition. Our findings show that the efficacy of carbon pricing is contingent on a country’s commercial, financial, and production structure. Furthermore, the results emphasize the significance of carbon tax recycling in preventing recessions and promoting sustainable decarbonization. This is accomplished by bolstering innovation and competitiveness in low-emission industries. |
| JEL: | Q |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:avg:wpaper:en16516&r=env |
| By: | McLean, Sheldon |
| Abstract: | Between 2000 and 2019 the Caribbean Community produced between 0.11 and 0.16% of global emissions. However, despite being only minor emitters these countries find themselves highly exposed to the impact of climate change, increasingly vulnerable to floods, droughts, rising temperatures, rising sea-levels, hurricanes and coral bleaching etc. Furthermore, CARICOM Member States have submitted their Nationally Determined Contributions (NDCs) to the United Nations Framework Convention for Climate Change (UNFCCC). The subregion has, however, lagged behind in the receipt of grant and concessionary support for its climate change adaptation and mitigation needs. Accordingly, one market-based modality, which may be useful a tool for generating the necessary resources for implementing Caribbean NDCs is the development of a regional emissions trading scheme (ETS). Presently, no such market-based mechanism exists in the subregion. This paper therefore represents exploratory research that considers the structure and function of ETS schemes which can be useful for leveraging implementation of Caribbean NDCs. However, for such an ETS to be a success, its framework must be structured carefully. Key factors which must be considered in its design are the size of the emissions cap for the countries, the sectors that will be involved, the Greenhouse gases (GHGs) to be covered, a monitoring, reporting and verification framework for the GHG emissions, the emissions allowances allocation system, and an emissions allocations reserve. The fact that NDCs may of necessity become increasingly ambitious will also have to be considered when designing a regional scheme. The revenue that is generated from the auctions can be retained by the ETS regulator to assist in offsetting its operational costs. Surplus revenue can be used to finance other climate change adaptation and mitigation projects. However, the distribution of the surplus revenue that accrues from such auctions will need to be carefully calibrated given the heterogeneity in size, industrial development and levels of emissions across Caribbean countries. |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col033:69048&r=env |
| By: | Mariana Carmelia Balanica-Dragomir; Gabriel Murariu; Lucian Puiu Georgescu |
| Abstract: | Carbon emissions have become a specific alarming indicators and intricate challenges that lead an extended argue about climate change. The growing trend in the utilization of fossil fuels for the economic progress and simultaneously reducing the carbon quantity has turn into a substantial and global challenge. The aim of this paper is to examine the driving factors of CO$_2$ emissions from energy sector in Romania during the period 2008-2022 emissions using the log mean Divisia index (LMDI) method and takes into account five items: CO$_2$ emissions, primary energy resources, energy consumption, gross domestic product and population, the driving forces of CO$_2$ emissions, based on which it was calculated the contribution of carbon intensity, energy mixes, generating efficiency, economy, and population. The results indicate that generating efficiency effect -90968.57 is the largest inhibiting index while economic effect is the largest positive index 69084.04 having the role of increasing CO$_2$ emissions. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.04354&r=env |
| By: | Dennis Guignet; O. Ashton Morgan; Craig Landry; John C. Whitehead; William Anderson |
| Abstract: | Sea-level rise poses a growing threat to coastal communities and economies across the globe. North Carolina (NC) is no exception, with coastal communities facing annual sea-level rise rates of 2.01 to 4.55 mm/year (NOAA, 2018). Sea-level rise can affect key ecosystem services to coastal communities, including the provision of clean drinking water and adequate wastewater treatment. We examine how increases in the cost of these services and possible negative effects on coastal house prices due to sea-level rise impact residential location decisions. Administering a stated preference survey to NC homeowners in counties adjacent to the coast, we assess how households might respond to the increasing costs of drinking water and wastewater treatment due to sea-level rise. We present a novel framework to estimate expected welfare impacts under illustrative scenarios. Our results can inform local communities and benefit-cost analyses of future adaptation strategies and infrastructure investments. Key Words: drinking water; ecosystem service; groundwater; housing; stated preference; sealevel rise; wastewater |
| JEL: | D6 Q51 Q54 Q57 R2 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:24-12&r=env |
| By: | Minh Ha-Duong (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: | The presentation details the progress and commitments of Vietnam's Just Energy Transition Partnership (JETP), which began negotiations at COP26 and culminated in a Political Declaration in Brussels on December 14, 2022. The JETP involves a mobilization of $15.5 billion, split equally between public and private funding, to align Vietnam's power sector with its net-zero pledge. Under the JETP, Vietnam aims to peak its power sector CO2 emissions at 170 Mt in 2030, restrict coal power capacity to 30.2 GW by 2030, and ensure that renewable sources account for at least 47% of electricity production by the same year. Notable achievements include exceeding the renewable energy target by 2022 and drafting the Power Development Plan 8 to restart the renewable energy sector. The slides conclude with an emphasis on strong cooperation momentum and the effectiveness of a known recipe for power sector investment that includes direct purchase agreements, auctions, grid code, tariffs, and support through training and technology transfer. |
| Date: | 2023–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04485660&r=env |
| By: | Acevedo, Ivonne; Castellani, Francesca; Lopez de la Cerda, Carlos; Lotti, Giulia; Székely, Miguel |
| Abstract: | This study examines the relationship between climate change-induced weather emergencies and labor market outcomes in Mexico from 2016 to 2020. Using panel data and a two-way fixed effects estimation, the analysis focuses on storms, floods, wildfires, and landslides. The results show that storms can have significant negative associations with labor market outcomes. When living in municipalities affected by storms individuals experience 3.5% lower wages. Also, storms are associated to a decrease in weekly working hours, while the rest of weather-related emergencies do not show significant effects. Furthermore, the probability of employment is negatively and significantly affected by storms, resulting in a 1 percentage point reduction in the likelihood of being employed. |
| Keywords: | climate change;Weather emergencies;Labor Market Outcomes;Mexico;Storms;floods |
| JEL: | J21 J30 Q54 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13131&r=env |
| By: | Maryam Sadighi; Jean-Pierre Ponssard; Maria Eugenia Sanin; Elodie Le Cadre Loret |
| Abstract: | Adopting disruptive technologies for decarbonizing hard-to-abate industrial sectors requires experimentation through demonstration (pilot) projects. However, from an economic perspective, the potential long-term benefits and the difficulties in designing relevant public policies are not addressed in the standard valuations of those projects. This paper shows that cost-benefit analysis (CBA) at the sector level provides clues to solve these issues, integrating knowledge spillovers from the pilot throughout the industry and the technical change from value-added cost components in adjacent activities. Such analysis gives the optimal trajectory for decarbonizing the sector. Our suggested CBA also delivers the relevant abatement cost for the pilot, a key indicator of public policy. Applied to France’s large-scale, high-quality container glass sector, CBA obtains an abatement cost of around 200€/tCO2 for the pilot deploying a decarbonized hybrid technology, which is 50% lower than previous standard approaches. Additionally, we show that subsidizing the pilot associated with a commitment to transfer knowledge to follower plants is sufficient to decentralize the social optimum if governments implement an emissions tax internalizing the environmental cost. This approach could be applied in other hard-to-abate sectors to trigger the early deployment of disruptive innovations and facilitate the designing of relevant public policies. |
| Keywords: | disruptive technologies, pilot projects, cost-benefit analysis, carbon neutrality, knowledge spillover |
| JEL: | Q55 Q52 Q42 O33 O38 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10973&r=env |
| By: | Cristina Cattaneo; Emanuele Massetti; Shouro Dasgupta; Fabio Farinosi |
| Abstract: | We estimate a bilateral gravity equation for emigration rates controlling for decadal weather averages of temperature, precipitation, droughts, and extreme precipitation in origin countries. Using the parameter estimates of the gravity equation, we estimate global, regional, and country-by-country emigration flows using different population and climate scenarios. Global emigration flows are projected to increase between 73 and 91 million in 2030-2039; between 83 and 102 million in 2040-2049; between 88 and 121 in 2050-59, and between 87 and 133 million in 2060-2069. Changes in emigration flows are mainly due to population growth in the origin countries. |
| Keywords: | Climate change; International Migration. |
| Date: | 2024–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/058&r=env |
| By: | Kensuke Molnar-Tanaka; Swenja Surminski |
| Abstract: | Countries in Asia and the Pacific face a heightened risk of flooding as disasters increase worldwide due to climate change. Yet these countries often lack the infrastructure necessary to prepare for and respond to floods effectively. When flood protection measures exist, they generally rely only on grey, hard-engineered infrastructure, which has been increasingly challenged in recent years. Nature-based solutions (NbS) offer a new approach for flood management, with several co-benefits beyond the reduction of risks. This approach has gained recognition from policy makers in the region, but they are confronted with a number of challenges, including the lack of a clear, common definition and guidelines, as well as financing issues. The growing imperatives of climate adaptation call for complementary, innovative and forward-looking solutions, such as a combined approach incorporating both NbS and grey infrastructure. Alors que les catastrophes augmentent dans le monde entier en raison du changement climatique, les pays d’Asie et du Pacifique font face à un risque accru d’inondations. Or ces pays manquent souvent des infrastructures nécessaires pour s’y préparer et y répondre efficacement. Là où des mesures de protection contre les inondations existent, elles reposent le plus souvent uniquement sur des infrastructures grises ou lourdes qui sont de plus en plus contestées. Les solutions fondées sur la nature (SFN) proposent une nouvelle approche de la gestion des inondations, dont les co-bénéfices vont au-delà de la réduction des risques. Les décideurs de la région l’ont bien compris, mais ils font face à plusieurs défis, notamment l’absence d’une définition claire et commune et de lignes directrices, ainsi que des problèmes de financement. L’impératif croissant de l’adaptation climatique exige une combinaison de solutions complémentaires, innovantes et tournées vers l’avenir, telles qu’une approche intégrant à la fois les SFN et les infrastructures grises. |
| JEL: | O20 O53 Q54 Q57 |
| Date: | 2024–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:devaaa:351-en&r=env |
| By: | Md. Galib Ishraq Emran; Rhidi Barma; Akram Hussain Khan; Mrinmoy Roy |
| Abstract: | Globally, the water crisis has become a significant problem that affects developing and industrialized nations. Water shortage can harm public health by increasing the chance of contracting water-borne diseases, dehydration, and malnutrition. This study aims to examine the causes of the water problem and its likely effects on human health. The study scrutinizes the reasons behind the water crisis, including population increase, climate change, and inefficient water management techniques. The results of a lack of water on human health, such as the spread of infectious diseases, a higher risk of starvation and dehydration, and psychological stress, are also concealed in the study. The research further suggests several ways to deal with the water situation and lessen its potential outcomes on human health. These remedies include enhanced sanitation and hygiene procedures, water management, and conservation techniques like rainwater gathering and wastewater recycling. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.07019&r=env |
| By: | Brantly Callaway; Tong Li; Joel Rodrigue; Yuya Sasaki; Yong Tan |
| Abstract: | Leveraging the sharp changes in environmental regulation embedded in China’s 11th Five-Year Plan (FYP), which covered the period from 2006 to 2010, we characterize the degree to which the plan softens trade-offs between emissions and output. We document that the 11th FYP is associated with modest changes in average or total sulphur dioxide (SO2) emissions among manufacturers, but a sharp decline in the variance in the distribution of emissions intensity. Extending well-known distributional estimators to characterize dynamic firm-level responses to policy change, we find large causal declines in emissions intensity in the upper quantiles of the distribution, modest evidence of increases in the lower quantiles and no change in the middle quantiles. Differential changes in firm-level emissions intensity are consistent with the differential investment in emissions-mitigating technology, energy switching and productivity improvements. Interpreted through the lens of a resource misallocation framework, China’s 11th FYP increased aggregate productivity and output by 1.8% and 10.2%, respectively, through improved resource allocation. Our model suggests efficient regulation could have further increased aggregate productivity by 3.5% and output by 4.7% without any increase in aggregate emissions. |
| Keywords: | Climate change; Productivity |
| JEL: | C21 D24 Q53 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:24-7&r=env |
| By: | ISHIKAWA Jota; KIYONO Kazuharu; YOMOGIDA Morihiro |
| Abstract: | We explore the effects of international technology transfers on global warming and welfare in a two-country (home and foreign), two-good, general equilibrium model with Ricardian and Heckscher–Ohlin features. We consider a situation in which both countries enforce emissions trading, and the home country, which has superior technologies in both sectors, has a comparative advantage in less emissions-intensive goods under free trade. The home country benefits from technology transfers in the more emissions-intensive industry due to an improvement in its terms of trade. The foreign country can also gain because global greenhouse gas emissions (GHGs) decrease. Technology transfer in the less emissions-intensive sector can lead to a more significant reduction in GHG emissions but may harm the home country. When free trade in emission permits and goods is allowed between countries, technology transfers in either sector will likely increase the emissions permit price without affecting global GHG emissions. An increase in the permit price negatively affects the welfare of the home country that imports permits from the foreign country. International emissions trading may reduce the incentive for technology transfers because there is no environmental benefit, and the permit price is higher. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:24040&r=env |
| By: | Maximilian Stargardt (Forschungszentrum J\"ulich GmbH, Institute of Energy and Climate Research - Techno-economic Systems Analysis; RWTH Aachen University, Chair of Fuel Cells, Faculty of Mechanical Engineering, Aachen, Germany); David Kress (Forschungszentrum J\"ulich GmbH, Institute of Energy and Climate Research - Techno-economic Systems Analysis); Heidi Heinrichs (Forschungszentrum J\"ulich GmbH, Institute of Energy and Climate Research - Techno-economic Systems Analysis); J\"orn-Christian Meyer (RWTH Aachen University, Chair of Operations Management, Schoolf of Business and Economics, Aachen, Germany); Jochen Lin{\ss}en (Forschungszentrum J\"ulich GmbH, Institute of Energy and Climate Research - Techno-economic Systems Analysis); Grit Walther (RWTH Aachen University, Chair of Operations Management, Schoolf of Business and Economics, Aachen, Germany); Detlef Stolten (Forschungszentrum J\"ulich GmbH, Institute of Energy and Climate Research - Techno-economic Systems Analysis; RWTH Aachen University, Chair of Fuel Cells, Faculty of Mechanical Engineering, Aachen, Germany) |
| Abstract: | Decarbonizing the global energy system requires significant expansions of renewable energy technologies. Given that cost-effective renewable sources are not necessarily situated in proximity to the largest energy demand centers globally, the maritime transportation of low-carbon energy carriers, such as renewable-based hydrogen or ammonia, will be needed. However, whether existent shipyards possess the required capacity to provide the necessary global fleet has not yet been answered. Therefore, this study estimates global tanker demand based on projections for global hydrogen demand, while comparing these projections with historic shipyard production. Our findings reveal a potential bottleneck until 2033-2039 if relying on liquefied hydrogen exclusively. This bottleneck could be circumvented by increasing local hydrogen production, utilizing pipelines, or liquefied ammonia as an energy carrier for hydrogen. Furthermore, the regional concentration of shipyard locations raises concerns about diversification. Increasing demand for container vessels could substantially hinder the scale-up of maritime hydrogen transport. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.09272&r=env |
| By: | Frondel, Manuel |
| Abstract: | Jahre nach Einführung der sogenannten CO2-Bepreisung fossiler Brenn- und Kraftstoffe zum Zwecke des Klimaschutzes hat die Politik das Versprechen zur Rückverteilung der CO2-Preiseinnahmen noch immer nicht umgesetzt. Vor diesem Hintergrund untersucht dieser Beitrag die sozialen Auswirkungen der CO2-Bepreisung, vor allem die Verteilungswirkungen für einkommensschwache private Haushalte, und unterbreitet einen pragmatischen Vorschlag zur Rückverteilung der Einnahmen. Dieser besteht aus einer Kombination von Maßnahmen zur jederzeit möglichen sukzessiven Senkung des Strompreises: zum einen der Senkung von Strompreiskomponenten wie der Stromsteuer und vor allem der Netzentgelte, mit denen der für die Energiewende unabdingbare Netzausbau finanziert wird, sowie zum anderen in der kompletten Abschaffung der zahlreichen Umlagen auf den Strompreis. Mit der bei Umsetzung dieser Vorschläge möglichen massiven Senkung des Strompreises um mehr als 10 Cents je Kilowattstunde könnten die Wärmeund Verkehrswende in doppelter Weise vorangetrieben werden: Einerseits durch die CO2-Bepreisung fossiler Brenn- und Kraftstoffe als treibendem Faktor und andererseits durch die massive Vergünstigung von Strom als Anreiz. In Zeiten massiver finanzieller Engpässe beim Klima- und Transformationsfonds wäre es klug, die äußerst knappen Mittel möglichst so zu verwenden, dass damit zugleich die Energiewende vorangebracht und die Bürgerinnen und Bürger sowie die Unternehmen entlastet werden. Das würde durch die Verwendung der Fonds-Mittel zur Senkung der Netzentgelte und der zahlreichen Umlagen auf den Strompreis der Fall sein, nicht aber bei Auszahlung eines Klimageldes. Daher sollte die Politik auf die Einführung eines Klimageldes zugunsten von Strompreissenkungen verzichten. |
| Abstract: | Years after the introduction of the so-called CO2 pricing of fossil fuels for the purpose of climate protection, politicians have still not implemented the promise to redistribute the CO2 price revenues. Against this background, this article examines the social impact of carbon pricing, in particular the distributional effects for low-income private households, and presents a pragmatic proposal for the redistribution of revenues. This consists of a combination of measures to successively reduce the electricity price at any time: on the one hand, the reduction of electricity price components such as the electricity tax and, above all, the grid fees, which are used to finance the grid expansion that is essential for the energy transition, and on the other hand, the complete abolition of the numerous levies on the electricity price. The massive reduction in the price of electricity by more than 10 cents per kilowatt hour that would be possible if these proposals were implemented could drive forward the heat and transport transition in two ways: On the one hand through CO2 pricing of fossil fuels as a driving factor and on the other hand through the massive reduction in the price of electricity as an incentive. In times of massive financial bottlenecks in the Climate and Transformation Fund, it would be prudent to use the extremely scarce resources in such a way as to simultaneously advance the energy transition and relieve the burden on citizens and companies. This would be the case if the funds were used to reduce grid charges and the numerous levies on the electricity price, but not if a climate money were paid out. Politicians should therefore refrain from introducing a climate money in favor of lowering electricity prices. |
| Keywords: | Wärmewende, Verkehrswende, Netzentgelte |
| JEL: | D12 Q31 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwimat:287745&r=env |
| By: | Robalino, Juan; Mullan, Katrina; Piaggio, Matías; Guzmán, Marisol |
| Abstract: | We evaluate whether floods and landslides are more likely when rain falls inside versus outside protected areas (PAs). We use monthly municipality data for the period 2000-2015 in Guatemala and monthly district data for the period 1992-2019 in Costa Rica. We define relevant catchment areas using water flows to population centers of administrative units. Then, we calculate the precipitation inside and outside PAs within the relevant catchment areas, and test how the frequency of floods and landslides is affected by whether rain falls inside or outside PAs. We use a two-way fixed effect panel data model. For Guatemala, we find no robust statistically significant effects on these types of disasters. However, in Costa Rica, we find that shifts in precipitation towards PAs reduce floods significantly. These results were highly robust. We also find effects on landslides in densely populated districts, as well as reductions in flood-related deaths. |
| Keywords: | Disasters;floods;Landslides;Protected areas;Precipitation |
| JEL: | Q54 Q28 Q24 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13166&r=env |
| By: | Akin A. Cilekoglu (AQR-IREA Research Group, University of Barcelona) |
| Abstract: | In this paper, I examine how allowances allocation affected emissions of power sector installations in the EU ETS following the Paris Agreements. The dataset I use covers the 2010-2022 period, includes the emissions and allowances of 4, 498 installations operating in power sector across the 27 Member States of the European Union. I discover that installations receiving lower allowances in the first quartile (Q1) reduced their emissions by 3.5% from 2016 to 2022 compared to the 2010-2015 period. I find no evidence on the installations in second, third and fourth quartiles due to the country specific developments. I also show that country characteristics have a crucial role in policy effectiveness because the emissions of installations located in lower-income Member States entered into the EU at later stages did not fall. |
| Keywords: | Emissions, Paris Agreement, Power sector, Climate change. JEL classification: Q40, Q48, O13, H32, L25. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:202404&r=env |
| By: | Kris Boudt; Yanick Inghels; André Spithoven (-) |
| Abstract: | We introduce a large-scale research project analysis framework to trace and track the prevalence of Sustainable Development Goals (SDGs) within research funded by the European Union since 1984 with a specific focus on Sustainable Development Goal 8. This goal envisages to promote sustained economic growth, full and productive employment, and decent work for all. Using the CORDIS database, we identify to which extent SDG 8 has been represented in the titles and abstracts of projects funded by the EU's Framework Programmes. Our findings reveal that SDG 8 related research projects are dominated by four targets: economic growth, productivity, entrepreneurship and decent work, and full and decent employment. We further find that the adoption of the SDGs by the United Nations in 2015 coincides with an increase of over 45% in SDG 8 related research projects. We also show that EU economic performance in the two years preceding the framework programme is a leading indicator of the prevalence of SDG 8 in the research projects funded by that programme. In terms of project characteristics, we conclude that, on average, an SDG 8 project tends to secure a more substantial budget, engage larger research consortia, and exhibit higher interdisciplinarity than other projects. Finally, we show that SDG 8 ranks among the most (diversely) interconnected SDGs, linking especially with SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure). |
| Keywords: | Sustainable Development Goals, SDG 8, natural language processing, European Framework Programmes, research funding |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:24/1084&r=env |
| By: | Naveen Kumar (Department of Economics, Delhi School of Economics); Dibyendu Maiti (Department of Economics, Delhi School of Economics) |
| Abstract: | This paper investigates the long-term impact of climate change on Indian economic growth, both at aggregate and dis-aggregated levels across regions and sectors. A simple Ramsey model is built to show that the resource abundance, climatic exposure, and state capacity affecting the rate of resource mobilisation for productivity and efficiency improvement determine regional growth. A crosssectional augmented auto-regressive distributed lag model (CS-ARDL), addressing endogeneity, heterogeneity, and cross-sectional dependence with stochastic trends, employed in 29 major states from 1980 to 2019, confirms a significant and negative impact of temperature rise on total factor productivity and the resultant economic growth. On average, one Celcius degree of temperature rise has depressed economic growth by approximately 3.89%, with substantial variations across states, sectors, and income groups. The variation in labour relations, industrialisation level, forest cover, and debts across the states affecting the ecological damage and efficiency changes in labour and capital differentially has been found responsible for the variation in TFP and the resultant growth. Our estimated coefficients combined with the projected temperature reveal that poorer and less developed states are expected to be more vulnerable than others because of their dependence on agriculture and ecological resources. The GSDP growth is projected to decrease by a range of 5.25% to 24.51% during 2020 to 2100 from the Stringent Mitigation scenario (SSP1-2.6) to the Business-as-Usual scenario (SSP5-8.5). JEL Code: O44, Q54, Q51 |
| Keywords: | climate change, economic growth, India, panel data, adaptation |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:cde:cdewps:345&r=env |
| By: | Bruno Fontaine (SMASH - Société de Mathématiques Appliquées et de Sciences Humaines, 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); Antoine Teixeira (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, ADEME - Agence de l'Environnement et de la Maîtrise de l'Energie); Fanny Vicard (ADEME - Agence de l'Environnement et de la Maîtrise de l'Energie); Julien Lefèvre (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, AgroParisTech); Marius Potfer (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) |
| Keywords: | Input-output, Net-zero transition, Carbon footprint, Materials, International Trade, Material footprint |
| Date: | 2023–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04483031&r=env |
| By: | Bente Halvorsen; Kristine Grimsrud (Statistics Norway) |
| Abstract: | Unmanaged and overgrown coastal heathlands represent a substantial fire hazard. We analyse how this hazard in Norwegian coastal heathlands is influenced by weather conditions, land management, and usage. Our analysis integrates vegetation, maintenance, and management data with emergency response records from fire departments and weather data. Using panel data regressions, we assess the risk of fire in response to these variables. A key finding is that increased coastal heathland management significantly reduces fire risk, particularly during droughts, warm weather, and periods with strong winds. The reason is that well-maintained coastal heathlands having reduced levels of dry vegetation, making them less susceptible to ignition even during conditions when the overall fire hazard is increased. |
| Keywords: | Land use; Landscape maintenance; Costal heathlands; Fire hazard; Panel data |
| JEL: | C23 Q15 Q54 Q57 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:1011&r=env |
| By: | Matthew E. Kahn; Amine Ouazad; Erkan Yönder |
| Abstract: | In the face of rising climate risk, financial institutions may adapt by transferring such risk to securitizers that have the skill and expertise to build diversified pools, such as Mortgage-Backed Securities. In diversified pools, exposure to climate risk may be a drop in the ocean of cash flows. This paper builds a data set of the entire securitization chain from mortgage-level to MBS deal-level cash flows, and observes the prices of the tranches at monthly frequency. Wildfires lead to higher rates of prepayment and foreclosure at the mortgage level, and larger losses during foreclosure sales. At the MBS deal level, a lower spatial concentration of dollar balances (lower spatial dollar Herfindahl), a lower spatial correlation in wildfire events (within-deal correlation), leads to a lower exposure to wildfire events. These quantifiable metrics of diversification identify those existing deals whose design makes them resilient to climate change. This paper builds optimal deals by finding the portfolio weights in an asset demand system that targets return and risk. Extrapolating wildfire risk using a granular wildfire probability model and temperature projections in 2050, we build climate resilient MBSs whose returns are minimally impacted by wildfire risk even as they supply mortgage credit to wildfire prone areas. Finally, we test whether the market prices the sensitivity of each deal’s cash flow to wildfire risk. |
| JEL: | G0 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32244&r=env |
| By: | Di Tommaso, Caterina; Perdichizzi, Salvatore; Vigne, Samuel; Zaghini, Andrea |
| Abstract: | This research focuses on the cost of financing green projects on the primary bond market and tests for a potential price differential between green bonds issued by government entities and those issued by supranational and private sector issuers. Our findings indicate that government entities benefit from more favorable pricing conditions worldwide. This advantage is growing over time and particularly pronounced for sovereigns and municipal authorities. Our analysis also reveals that country-specific factors, such as strong political commitment to address climate change, low income level and high degree of indebtedness are significant predictors of the pricing spread across bonds. |
| Keywords: | Green bonds, Sovereign debt, Yield spread, Greenium |
| JEL: | G15 G32 H63 C21 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:285366&r=env |
| By: | Bouché, Stéphane (University of the Balearic Islands); Modesto, Leonor (Universidade Catolica Portuguesa, Lisbon) |
| Abstract: | This paper analyzes the impact of trade openness on education and environmental preservation choices in a two country model where both countries only differ in their shares of skilled workers. Parents may invest in their children's education increasing their probability to become skilled and in maintenance investment in order to preserve present and future environmental quality. Under autarky, unskilled individuals in the skill scarce economy are unable to invest in education due to borrowing constraints. Moreover, only skilled individuals of the latter economy choose to invest in environmental preservation. Openness to trade modifies relative factor prices and increases pollution. This allows for human capital convergence between both economies and induces all skilled individuals to contribute to environmental preservation in the free trade equilibrium. However, overall environmental quality decreases, suggesting a potential trade-off between income convergence at the global level and environmental preservation. We also focus on the optimal allocation under free trade and conclude that a maintenance investment subsidy should be implemented for skilled individuals but not necessarily for unskilled ones. |
| Keywords: | altruism, environmental preservation, international trade, human capital |
| JEL: | D64 F18 F64 I25 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16825&r=env |
| By: | Thomas Le Gallic (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, SMASH - Société de Mathématiques Appliquées et de Sciences Humaines); Augustin Danneaux (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, SMASH - Société de Mathématiques Appliquées et de Sciences Humaines); Julien Lefèvre (AgroParisTech, 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, Université Paris Saclay (COmUE)) |
| Abstract: | This study addresses the need to refine the assessment of employment impacts associated with coal phase-out in transition scenarios. We use a multi-sectoral macroeconomic Integrated Assessment Model enhanced by incorporating detailed data to improve productivity expectations in the coal sector. We also developed a sub-national economies dynamics module enabling the results to be scaled down, which provides qualitatively new information. The analysis quantifies job losses and their timing, highlighting regional disparities and vulnerability. The findings underscore the importance of integrating support policies for affected employees into carbon neutrality programs in order to enhance the feasibility and acceptance of transition pathways. |
| Date: | 2023–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04477762&r=env |
| By: | Adedayo Michael Awoniyi (UFBA - Universidade Federal da Bahia, Instituto de Saùde Coletiva - UFBA - Universidade Federal da Bahia); Ana Maria Barreto (UFBA - Universidade Federal da Bahia); Hernan Dario Argibay (UFBA - Universidade Federal da Bahia, Instituto de Saùde Coletiva - UFBA - Universidade Federal da Bahia); Juliet Oliveira Santana (FIOCRUZ - Fundação Oswaldo Cruz / Oswaldo Cruz Foundation - RIIP - Réseau International des Instituts Pasteur); Fabiana Almerinda G. Palma (UFBA - Universidade Federal da Bahia, Instituto de Saùde Coletiva - UFBA - Universidade Federal da Bahia); Ana Riviere-Cinnamond (PAHO - Pan American Health Organization [Washington]); Gauthier Dobigny (UMR CBGP - Centre de Biologie pour la Gestion des Populations - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD [France-Sud] - Institut de Recherche 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 - UM - Université de Montpellier, Institut Pasteur de Madagascar - RIIP - Réseau International des Instituts Pasteur); Eric Bertherat (OMS / WHO - Organisation Mondiale de la Santé / World Health Organization Office); Luther Ferguson (Ministry of Environment and Natural Resources); Steven Belmain (Natural Resources Institute [Chatham] - University of Greenwich); Federico Costa (UFBA - Universidade Federal da Bahia, Instituto de Saùde Coletiva - UFBA - Universidade Federal da Bahia, FIOCRUZ - Fundação Oswaldo Cruz / Oswaldo Cruz Foundation - RIIP - Réseau International des Instituts Pasteur, YSPH - Yale School of Public Health, Department of Epidemiology of Microbial Diseases - YSPH - Yale School of Public Health, Lancaster Medical School - Lancaster University) |
| Abstract: | Rodents are notorious pests, known for transmitting major public health diseases and causing agricultural and economic losses. The lack of site-specific and national standardised rodent surveillance in several disadvantaged communities has rendered interventions targeted towards rodent control as often ineffective. Here, by using the example from a pilot case-study in the Bahamas, we present a unique experience wherein, through multidisciplinary and community engagement, we simultaneously developed a standardised national surveillance protocol, and performed two parallel but integrated activities: (1) eight days of theoretical and practical training of selected participants; and (2) a three-month post-training pilot rodent surveillance in the urban community of Over-the-Hill, Nassau, The Bahamas. To account for social and environmental conditions influencing rodent proliferation in the Bahamas, we engaged selected influential community members through a semi-structured interview and gathered additional site-specific information using a modified Centers for Diseases Control and Prevention (CDC) exterior and interior rodent evaluation form, along with other validated instruments such as tracking plates and snap trapping, to test and establish a standardised site-specific rodent surveillance protocol tailored for the Bahamas. Our engagement with community members highlighted poor disposal of animal and human food, irregular garbage collection, unapproved refuse storage, lack of accessible dumpsters, poor bulk waste management, ownership problems and structural deficiencies as major factors fuelling rodent proliferation in the study areas. Accordingly, results from our pilot survey using active rodent signs (that is, the presence of rodent runs, burrows, faecal material or gnawed material) as a proxy of rodent infestation in a generalized linear model confirmed that the variables earlier identified during the community engagement program as significantly correlated with rodent activities (and capturing) across the study areas. The successful implementation of the novel site-specific protocol by trained participants, along with the correlation of their findings with those recorded during the community engagement program, underscores its suitability and applicability in disadvantaged urban settings. This experience should serve as a reference for promoting a standardised protocol for monitoring rodent activities in many disadvantaged urban settings of the Global South, while also fostering a holistic understanding of rodent proliferation. Through this pilot case-study, we advocate for the feasibility of developing sustainable rodent control interventions that are acceptable to both local communities and public authorities, particularly through the involvement of a multidisciplinary team of professionals and community members. |
| Keywords: | Community engagement, Sustainable rodent management, The Bahamas, Urban rodent survey, Waste management, Zoonoses Rodent proliferation is a major threat to human communities, associated with disease transmission, disruption |
| Date: | 2024–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04498188&r=env |
| By: | Danilo Liberati (Bank of Italy); Giuseppe Marinelli (Bank of Italy) |
| Abstract: | Building on the work by Liberati and Marinelli (2021), this paper presents a study on the greenium, i.e. the negative yield difference between green bonds and their conventional counterparts. We use a security-by-security data set comprising a large sample of green bonds exchanged on the main global security markets, integrated with the microdata employed in official statistics on security holdings and prices. After showing the existence of the greenium, we employ a twofold approach in order to contribute to the literature on this topic. Firstly, we exploit an econometric strategy based on security-level panel regressions and we find strong evidence for the existence of the greenium and for its increase following the Covid-19 shock; nonetheless, after the end of the state of emergency, we find evidence of a rebound of the greenium of different intensities depending on the issuing sector. Finally, we provide econometric evidence for a persistent excess demand in the green bond secondary market through a non-Walrasian disequilibrium model a la Maddala and Nelson (1974). |
| Keywords: | Green bonds, greenium, Covid-19 |
| JEL: | C33 G12 G21 Q56 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_832_24&r=env |
| By: | McLaughlin, Eoin; Ducoing, Cristián; Hanley, Nick |
| Abstract: | There has been widespread debate about whether the way in which we measure economic activity is fit for purpose in the twenty-first century. One aspect of this debate is to move away from measuring a nation's income (GDP) towards monitoring a nation's assets (their inclusive wealth), as a better indicator of sustainable economic development. We provide the first critical comparison of the approaches of leading international organisations - the World Bank and the United Nations Environment Programme - to estimating changes in wealth. Our paper reveals important inconsistencies in how these organisations measure sustainability and the conflicting messages that policy makers receive, despite a common underlying conceptual framework linking changes in a nation's wealth to future well-being. At the most extreme, countries that perform the worst according to the UN are shown to perform well according to the World Bank. This confusion in signals makes better policy making more difficult. |
| Keywords: | Wealth, Sustainability, Natural Capital, Sustainable Development |
| JEL: | Q01 Q32 Q56 N50 N10 O13 O44 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hwuaef:287770&r=env |
| By: | Kräussl, Roman; Oladiran, Tobi; Stefanova, Denitsa |
| Abstract: | We examine whether the uncertainty related to environmental, social, and governance (ESG) regulation developments is reflected in asset prices. We proxy the sensitivity of firms to ESG regulation uncertainty by the disparity across the components of their ESG ratings. Firms with high ESG disparity have a higher option-implied cost of protection against downside tail risk. The impact of the misalignment across the different dimensions of the ESG score is distinct from that of ESG score level itself. Aggregate downside risk bears a negative price for firms with low ESG disparity. |
| Keywords: | ESG, rating, downside risk, options, regulation, risk premium |
| JEL: | G12 G18 G32 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:285370&r=env |
| By: | Peter Kennedy (Department of Economics, University of Victoria) |
| Abstract: | I examine a setting in which households with “green preferences” choose between two available technologies on the basis of their costs, and on the basis of their associated emissions. The green preferences give rise to a reciprocal externality among the households, the correction of which requires policy intervention. In the absence of corrective policy, the adoption of a cleaner technology can be welfare-improving even when it induces an increase in emissions (backfire). A reduction in emissions is neither necessary nor sufficient for the equilibrium adoption of a cleaner technology to be welfare-improving. Mandated adoption of a cleaner technology – when households have otherwise chosen not to adopt it – is never welfare-improving if it induces backfire. |
| Keywords: | backfire; clean technology; energy-efficiency; greenhouse gases; rebound |
| Date: | 2022–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:vic:vicddp:2011&r=env |
| By: | Valentine Millot; Łukasz Rawdanowicz |
| Abstract: | The paper contributes to renewed debates about industrial policy in the context of recent initiatives in several OECD economies. It discusses the pros and cons of industrial policies motivated by environmental, national security and place-based/inclusiveness objectives. The paper also considers implementation and design issues, and how to respond to industrial policies in foreign countries. Despite well-grounded economic, social and environmental justifications for some industrial policies, there are legitimate concerns that the benefits of some of these policies could be limited and the costs high. This mainly relates to measures curbing competition and the practical and political challenges in designing and implementing effective measures. Thus, while governments may want to experiment with future and welfare-oriented industrial policies, they should exert moderation in scope, exercise caution in design and implementation, and be mindful of possible negative international implications. |
| Keywords: | government subsidies, green transition, industrial policy, innovation, national security, trade policy |
| JEL: | F13 F52 H2 H81 L5 O25 O3 Q5 |
| Date: | 2023–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaab:34-en&r=env |
| By: | Severin Reissl; Luca E. Fierro; Francesco Lamperti; Andrea Roventini |
| Abstract: | We present an updated, stock-flow consistent version of the 'Dystopian Schumpeter meeting Keynes' agent-based integrated assessment model. By embedding the model in a fully specified accounting system, all balance sheet items and financial flows can be explicitly and consistently tracked throughout a simulation. This allows for an improved analysis of climate change and climate policy scenarios in terms of their systemic implications for agent and sector-level balance sheet dynamics and financial stability. We provide an extensive description of the updated model, representing the most detailed outline of a model from the well-established 'Keynes + Schumpeter' family available to date. Following a discussion of calibration and validation, we present a range of example scenarios. |
| Keywords: | Climate change; Agent-based models; Integrated assessment |
| Date: | 2024–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/09&r=env |
| By: | Shabnam Salehi; Mojtaba Ardestani |
| Abstract: | Water temperature and dissolved oxygen are essential indicators of water quality and ecosystem sustainability. Lately, heavy rainfalls are happening frequently and forcefully affecting the thermal structure and mixing layers in depth by sharply increasing the volume of inflow entitled flash flood. It can occur by sudden intense precipitation and develop within minutes or hours. Because of heavy debris load and speedy water, this phenomenon has remarkable effects on water quality. A higher flow during floods may worsens water quality at lakes and reservoirs that are thermally stratified (with separate density layers) and decrease dissolved oxygen content. However, it is unclear how well these parameters represent the response of lakes to changes in volume discharge. To address this question, researchers simulate the thermal structure in two stratified reservoirs, considering the Rajae reservoir as a representative reservoir in the north of Iran and Minab reservoir in the south. In this study, the model realistically represented variations of dissolved oxygen and temperature of dams Lake response to flash floods. The model performance was evaluated using observed data from stations on the dams lake. In this case, the inflow charge considered in a 10-day flash flood from April 6th to April 16th during the yearly normal flow. The complete mixture in a part of the thermal structure has been proved in Rajaee reservoir. The nonpermanent impact of the massive inflow of storm runoff caused an increase in oxygen-consuming, leading to a severe decrease in dissolved oxygen on epilimnion and metalimnion. The situation in Minab reservoir was relatively different from Rajae reservoir. The inflow changes not only cause mixture but also help expanding stratification. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.05671&r=env |
| By: | Newbery, D.; Biggar, D. |
| Abstract: | As Variable Renewable Energy (VRE) penetration increases in poorly networked areas with suitable VRE resources, transmission constraints will increasingly force VRE curtailment. Under most European market access and pricing arrangements, location and operation decisions are based on average curtailment rates. As the marginal contribution of the last MW of VRE is 3+ times average curtailment, there is a risk of inefficient location and operation. This article compares different pricing and access regimes (including nodal pricing that gives efficient transmission scarcity signals) to compare their impact on the incentives for VRE merchant or market driven entry. |
| Keywords: | Transmission constraints, access regimes, variable renewable electricity, marginal curtailment, nodal pricing |
| JEL: | H23 L94 Q28 Q42 Q48 |
| Date: | 2024–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2405&r=env |
| By: | Julie Robin (CEREGE - Centre de Recherche en Gestion - UP - Université de Poitiers = University of Poitiers); Olivier Coussi (CEREGE - Centre de Recherche en Gestion - UP - Université de Poitiers = University of Poitiers, FED 4229 - Fédération Territoires - UP - Université de Poitiers = University of Poitiers - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Benjamin Dreveton (CEREGE - Centre de Recherche en Gestion - UP - Université de Poitiers = University of Poitiers) |
| Abstract: | Circular economy emerges as an essential economic paradigm to address contemporary challenges of sustainability and natural resources preservation. However, establishing effective and sustainable circular practices hold complex challenges due to the heterogeneity of circular approaches and the need for cooperation between public and private actors at the territorial level. How can governance based on cooperation be observed among these heterogeneous actors within a circular ecosystem? This theoretical and conceptual paper explores how the relational view allows for understanding the mechanisms of interactions between public and private actors within circular ecosystems. We introduce the concepts of territory, governance, and ecosystem to develop an analytical framework linking these three concepts. Drawing on the theory of relational rents, this framework is constructed through a multicriteria and multi-actor analysis to enhance the understanding of interactions between actors. With the example of the Territorial Cooperative Ecosystem (TCE), this managerial analysis framework of cooperation and value creation criteria in a circular ecosystem facilitates the understanding of governance in circular ecosystems. |
| Abstract: | L'économie circulaire émerge comme un paradigme économique essentiel pour faire face aux enjeux contemporains de soutenabilité et de préservation des ressources naturelles. Cependant, la mise en place de pratiques circulaires efficaces et pérennes pose des défis complexes, notamment en raison de l'hétérogénéité des approches circulaires et de la nécessité d'une coopération entre acteurs publics et privés au niveau territorial. Comment observer une gouvernance fondée sur la coopération entre ces acteurs hétérogènes au sein d'un écosystème circulaire ? Cette proposition théorique et conceptuelle explore comment la perspective relationnelle permet la compréhension des mécanismes d'interactions entre les acteurs publics et privés au cœur des écosystèmes circulaires. Nous introduisons les notions de territoire, de gouvernance et d'écosystème pour aboutir sur une grille d'analyse permettant de lier ces trois concepts. En prenant appui sur la théorie des rentes relationnelles, celle-ci est construite à partir d'une analyse multicritère et multi-acteurs pour favoriser la compréhension des interactions entre acteurs. Ce cadre d'analyse managérial des déterminants de la coopération et de la création de valeur dans un écosystème circulaire est appliqué à l'exemple de l'écosystème coopératif territorial (ECT) afin de comprendre comment la grille managériale favorise la compréhension de la gouvernance des écosystèmes circulaires. |
| Keywords: | territorial governance, circular economy, ecosystem, cooperation, managerial analysis, gouvernance territoriale, économie circulaire, écosystème, coopération, analyse managériale |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04485145&r=env |
| By: | Juanma Castro-Vincenzi; Gaurav Khanna; Nicolas Morales; Nitya Pandalai-Nayar |
| Abstract: | We characterize how firms structure supply chains under climate risk. Using new data on the universe of firm-to-firm transactions from an Indian state, we show that firms diversify sourcing locations, and suppliers exposed to climate risk charge lower prices. Our event-study analysis finds that firms with suppliers in flood-affected districts experience a decline in inputs lasting two months, followed by a return to original suppliers. We develop a general equilibrium model of firm input sourcing under climate risk. Firms diversify identical inputs from suppliers across space, trading off the probability of a climate shock against higher input costs. We quantify the model using data on 271 Indian districts, showing real wages vary across space and are correlated with geography and productivity. Wages are inversely correlated with sourcing risk, giving rise to a cost minimization-resilience tradeoff. Supply chain diversification unambiguously reduces real wage volatility, but ambiguously affects their levels, as diversification may come with higher input costs. While diversification helps mitigate climate risk, it exacerbates the distributional effects of climate change by reducing wages in regions prone to more frequent shocks. |
| JEL: | E0 F0 F10 F18 F40 F62 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32218&r=env |
| By: | Bruna Guidetti; Paula Pereda; Edson R. Severnini |
| Abstract: | How responsive to health shocks are healthcare systems in the developing world? Developing countries are known to have both lower levels of hospital infrastructure and serious health shocks driven by air pollution. These shocks are transitory and may be marginal relative to other health demands, so healthcare systems might be able to manage them. On the other hand, with limited capacity hospitals may not be able to respond rapidly, possibly exacerbating health damages from pollution. In this study, we examine the consequences of health shocks induced by air pollution in a megacity in the developing world: Sao Paulo, Brazil. Using daily data on pediatric hospitalizations from 2015-2017, an instrumental variable approach based on wind speed, and a plausibly exogenous measure of hospital capacity constraints, we show that such transitory health shocks can disrupt healthcare services due to limited capacity, including for conditions seemingly unrelated to air pollution. Also, we cannot rule out severe deterioration of health outcomes. |
| JEL: | I15 O13 Q53 Q56 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32224&r=env |
| By: | Marika Cabral; Marcus Dillender |
| Abstract: | Little is known about how pollution impacts worker health and workplace safety. This paper leverages high-frequency, plausibly exogenous variation in wildfire smoke to estimate the impact of pollution on workplace injuries. Our analysis draws on unique data we construct through linking information on smoke plumes and pollution to comprehensive administrative data on workers’ compensation injury claims from Texas. We first document that wildfire smoke increases ambient air pollution—with our estimates indicating that a day of smoke coverage is associated with an average increase in PM₂.₅ of 18.6%. We find that an additional day of smoke coverage leads to a 2.8% increase in workplace injury claims. Similar percent increases in workplace injuries are found across different types of injuries and workers. However, because of large variation in baseline injury risk, the incidence of these pollution-induced injuries is concentrated among workers in high-risk occupations, and supplemental analysis illustrates potential opportunities for improving the targeting of costly mitigation. Our estimates indicate that pollution—and wildfire smoke in particular—substantially harms worker health, even at pollution levels well below current and proposed regulatory standards. Overall, our findings suggest workers face unique risks from pollution and provide insights for policy aiming to address these risks. |
| JEL: | I18 J28 J3 Q53 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32232&r=env |
| By: | , Marcin Wozniak (Adam Mickiewicz University, Poznan, Poland); Radzimski, Adam; Wajchman-Świtalska, Sandra |
| Abstract: | Enhancing quality of life in contemporary cities hinges on convenient access to parks and forests, offering avenues for physical activity and social engagement, as well as benefits for mental health and opportunities for educational pursuits. This comprehensive study delves into the accessibility to parks and forests across 33 major European cities, employing an interdisciplinary framework drawing from transportation and urban planning methodologies. By analyzing accessibility to urban green spaces (UGS) through sustainable modes of transportation, the research aims at unveiling patterns shaped by population density, terrain elevation, city area and transportation infrastructure. Notably, disparities in accessibility emerge both within and between cities, with urban parks, typically nestled in city centers, exhibiting more equitable accessibility compared to forests, often situated on the outskirts. Further results show that the area of UGS, road network density, public transit availability, and elevation gradients influence parks and forests accessibility with different strengths and in different configurations, unveiling the complexity of green space distribution within urban landscapes. Across transportation modes, disparities in accessibility are most pronounced for pedestrians, accentuating the need for targeted interventions to bridge the gaps. The study also emphasizes the significance of discerning qualitative distinctions among diverse green spaces, advocating for tailored strategies in UGS planning. Acknowledging the pivotal role of parks in augmenting UGS accessibility, particularly in densely populated areas and for short-distance journeys, the paper underscores the urgency of fair provision. Finally, this research furnishes insights for policymakers and urban planners committed to fostering inclusive, healthy and sustainable urban environments. |
| Date: | 2024–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:hcwgp&r=env |
| By: | Carole Kerdelhué (UMR CBGP - Centre de Biologie pour la Gestion des Populations - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD [France-Sud] - Institut de Recherche 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 - UM - Université de Montpellier); Jean-Pierre Rossi (UMR CBGP - Centre de Biologie pour la Gestion des Populations - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD [France-Sud] - Institut de Recherche 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 - UM - Université de Montpellier); Alexis Bernard (URZF - Zoologie forestière - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thierry Fanjas-Mercere (URZF - Zoologie forestière - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Louis Gross (URZF - Zoologie forestière - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Benoit Nusillard (URZF - Zoologie forestière - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Patrick Pineau (URZF - Zoologie forestière - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Julien Pradel (UMR CBGP - Centre de Biologie pour la Gestion des Populations - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD [France-Sud] - Institut de Recherche 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 - UM - Université de Montpellier); Alain Talbi (UMR CBGP - Centre de Biologie pour la Gestion des Populations - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD [France-Sud] - Institut de Recherche 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 - UM - Université de Montpellier); Jérôme Rousselet (URZF - Zoologie forestière - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | The pine processionary moth Thaumetopoea pityocampa is a defoliating lepidopter that develops during winter. The larvae are gregarious and bear urticating setae that are harmful to humans and vertebrates. They shelter in conspicuous silk tents that are easy to detect. We here present a dataset comprising tree characterization and tent counts from 3 agglomerations in France located in regions with different climatic environments. The studied trees belong to various conifer species that are potential hosts for the caterpillars. In each site, we defined clusters as one target tree and its 10–62 nearest neighbors, and surveyed each tree within the clusters by informing: tree species, coordinates, size, number of tents. We characterized a total of 3690 trees, including 2009 trees in Orléans (grouped in 68 clusters), 359 trees in La Baule (18 clusters) and 1322 trees in Montpellier (52 clusters). We provide the raw data characterizing each individual tree, graphs showing the prevalence and mean number of tents for the tree species included in the survey, and maps allowing to locate each tree. This dataset brings information about host preference of the pine processionary moth and will be useful as a baseline to study spatio-temporal variability of host-insect relationships. It can also be informative for decision-makers and managers of urban greenings to avoid trees that are likely to be heavily infested for plantation in proximity to vulnerable people. |
| Keywords: | Thaumetopoea pityocampa, Pinus, Cedrus, Orléans, La Baule, Montpellier, Lepidoptera, Notodontidae |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04498528&r=env |
| By: | Khlil, Brahim (Independent researcher) |
| Abstract: | This white paper delves into the critical role of the United Nations (UN) in facilitating peace, development, and human rights within the multipolar global landscape, with a focused examination on Africa. In a world where power dynamics are increasingly distributed among various global actors, the UN's ability to rally international support, adapt to diverse development models, and address challenges through collective action is more vital than ever. Specifically, in Africa, the UN's contributions range from peacekeeping and conflict resolution to promoting economic growth and sustainable development, showcasing its pivotal position as a mediator, advocate, and ally for the continent. Through strategic partnerships and tailored initiatives, the UN aims to enhance its effectiveness in supporting Africa's journey towards stability, prosperity, and equitable global representation. This paper proposes actionable recommendations for reinforcing the UN-Africa collaboration, emphasizing the importance of innovation, inclusivity, and shared commitment to achieving sustainable development goals. It presents a vision for a future where the UN's dedicated support and Africa's rich potential converge to address global challenges in an interconnected world. |
| Date: | 2024–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:q3nbz&r=env |
| By: | Asante, Felix A. |
| Abstract: | Global estimates show over half a billion people go hungry (FAO, 2020) and close to 2 billion people are either obese or overweight with another 2 billion of the world’s population suffering from micronutrient deficiencies (Micha et al., 2020, Fresco et al., 2017). Inarguably, the world faces significant malnutrition problem (including micro- and macro-nutrient deficiencies, obesity, and diet related non-communicable diseases). This is evident in a recent analysis pointing out that effort in achieving the Global Nutrition Targets is likely to be missed. The observed malnutrition threat is accompanied by climate change, which is influencing food production and consumption trends, and thereby leading to undernutrition and affecting overall development. In addition, there are growing incomes, accelerated urbanization, and expanding middle classes which are also causing significant changes in consumer behaviour and nutritional choices, necessitating both public and private expenditures for better food market integration. As a result, there is a pressing need to examine our food systems to guarantee food and nutrition security and to advance sustainable development. It is likely that the COVID-19 impact may further exacerbates the worsening food insecurity and nutritional status of the most vulnerable groups including women, children and adolescents, refugees and displaced people, smallholders in rural areas, and the urban poor. |
| Keywords: | nutrition; hunger; non-communicable diseases; obesity; malnutrition; climate change; food systems; COVID-19; capacity development; Western Africa; Africa; Ghana |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:resrep:140484&r=env |
| By: | Körner, Marc-Fabian; Nolting, Lars; Heeß, Paula; Schick, Leo; Lautenschlager, Jonathan; Zwede, Till; Ehaus, Marvin; Wiedemann, Stefanie; Babel, Matthias; Radtke, Malin |
| Abstract: | In response to the challenges posed by an increasingly decentralized energy system characterized by a high penetration of renewable energy sources, grid operators are experiencing heightened pressure to effectively manage grid congestion. Concurrently, both the European Union as well as the German government's ambitious climate tar-gets are fostering the proliferation of small-scale systems like heat pumps, photovoltaic systems, and electric cars, thereby enhancing the flexibility potential for redispatch operations. The project Decentralized Redispatch (DEER): Interfaces for providing flex-ibility aims to explore the integration of micro-flexibility into congestion management practices. The project's primary focus lies in designing an architecture in the context of a multi-agent-system that facilities secure and sovereign communication among all stakeholders in such a decentralized redispatch, ensuring both privacy and verifiability. The DEER project sets out to analyze the potential of leveraging self-sovereign identity management methods, combined with technologies such as zero-knowledge proofs and distributed ledgers, as a robust framework for achieving these objectives. |
| Abstract: | Mit den Herausforderungen, die durch ein zunehmend dezentrales Energiesystem mit einem hohen Anteil erneuerbarer Energieanlagen entstehen, verändern sich auch die Anforderungen an das (zukünftige) Netzengpassmanagement. Gleichzeitig treiben sowohl die Europäische Union als auch die Bundesregierung für die Erreichung der Klimaschutzziele die Verbreitung von elektrifizierten Kleinstanlagen wie Wärmepumpen, Photovoltaik-Anlagen mit Heimspeichern und Elektroautos voran. Damit erhöht sich zeitgleich ein (bisher) ungenutztes Potenzial dieser Anlagen für den Redispatch. Das Projekt "Dezentraler Redispatch (DEER): Schnittstellen zur Flexibilitätsbereitstellung" zielt darauf ab, die Integration von Kleinstflexibilitäten in das Netzengpassmanagement zu erforschen. Dieses White Paper gibt ein Überblick über die ersten Projektergebnisse sowie die notwendigen Technologien und Methoden. Das Projekt konzentriert sich dabei hauptsächlich darauf, eine Architektur im Kontext eines Multi-AgentenSystems zu entwerfen, die eine sichere und datensouveräne Kommunikation zwischen allen Stakeholdern im dezentralen Redispatch ermöglicht und damit sowohl Datenschutz als auch Verifizierbarkeit gewährleistet. Dabei zielt das DEER-Projekt darauf ab, das Potenzial von digitalen, selbstbestimmten Identitäten (SSI) in Kombination mit Zero-Knowledge-Proofs und verteilten Ledger-Technologien als geeigneten Rahmen zur Erreichung dieser Ziele zu analysieren. |
| Keywords: | Redispatch, SSI, Multi-Agent Systems, Zero Knowledge Proof |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bayism:287771&r=env |
| By: | Patrick Lloyd-Smith (University of Saskatchewan, Department of Agricultural and Resource Economics); Ewa Zawojska |
| Abstract: | Economic analysis of environmental policy projects typically use pre-existing welfare estimates that are then transferred over time to the policy relevant periods. Understanding how stable and predictable these welfare estimates are over time is important for applying these estimates in policy. Yet, revealed preference models of recreation demand have received few temporal stability assessments compared to other non-market valuation methods. We use a large administrative dataset on campground reservations covering ten years to study temporal stability and predictability of recreation demand welfare estimates of lake water quality changes. Based on single-year models, our findings suggest welfare estimates are temporally stable across years in around 50% of the comparisons. Using an event study design, we find evidence that welfare estimates are stable within a year, that is, for weeks after a change in water quality. Our findings further reveal that having two years of data for predicting welfare estimates in subsequent years improves the prediction accuracy by 22% relative to using a single year of data, but further improvements in the prediction accuracy are modest when including additional years of data. Predictions of welfare estimates are not necessarily improved when using data closer in time to the prediction year. We discuss the implications of our results for using revealed preference studies in policy analysis. |
| Keywords: | recreation demand, revealed preferences, temporal stability, prediction accuracy, water quality, welfare estimates |
| JEL: | H41 Q26 Q51 Q53 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2024-05&r=env |
| By: | Issaka Dialga (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université, UTS - Université Thomas Sankara); Youmanli Ouoba (UTS - Université Thomas Sankara) |
| Abstract: | This paper examines the effect of extractive resources on human development. We control for institutional quality through a composite index of institutional quality. Our sample covers 42 countries over the period 2009–2015. Given the small sample size, we use the bias-corrected least square dummy variable method. The results show that extractive resources have a positive and significant effect on human development. Health and education are the channels through which extractive resources affect human development. The quality of institutions improves the effect of extractive resources on health but destroys their positive effect on human development and education. This study reveals that the consideration of institutional quality must be specific to each sector (health and education) in a more in-depth analysis of the effect of extractive resources on human development. |
| Keywords: | Extractive resources, Human development, Resource curse, Quality of16 institutions, Panel |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04467781&r=env |
| By: | Joseph, Josiah; Hayoge, Glen; Sikas-Iha, Helmtrude; Dorosh, Paul; Schmidt, Emily; Kedir Jemal, Mekamu |
| Abstract: | Sweet potato plays an important role in the food system of Papua New Guinea (PNG), accounting for over 12 percent of total calories consumed in the country (IFPRI, 2023). Three-quarters of sweet potato production takes place in the highlands where it is harvested throughout the year (Chang et al., 2013). However, the production and consumption of sweet potatoes in PNG faces several challenges, including climate change, pests and diseases, and market access constraints. In particular, a significant decline in sweet potato production due to an El Niño-related drought in early 2024 is a realistic possibility. This memo describes analysis using a partial equilibrium model to estimate the potential effects of a shortfall in sweet potato production on market prices and consumption, including consumption levels for various types of households in the highlands and other parts of PNG. We also discuss policy options for mitigating negative effects on household welfare. |
| Keywords: | PAPUA NEW GUINEA; OCEANIA; sweet potatoes; food systems; calories; agricultural production; market prices; consumption; household food security; El Niño; drought |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:pngprn:140447&r=env |
| By: | Haddad, Eduardo A. (Departamento de Economia, Universidade de São Paulo); Araujo, Inacio F. (Departamento de Economia, Universidade de São Paulo) |
| Abstract: | We quantify blue economy contributions and analyze coast-hinterland economic interdependence through interregional linkages The study advances by adopting a multi-level approach, analyzing municipality and state-level data of ocean-related activities. Using an interstate input-output model, we estimate the blue economy’s value chains, enhancing our understanding of its systemic impacts. We address gaps in national, regional, and local blue economy assessments, providing insights for tailored policies in Brazil’s diverse coastal regions as Brazil aims for UN Sustainable Development Goal 14 by 2030. Our analysis underscores the diverse blue economy structure and regional disparities, advocating for the coordination of sector and region-specific policies. Embracing an integrated regional approach acknowledges the interconnectedness of coastal economies to address shared challenges and capitalize on regional strengths effectively. |
| Keywords: | Regional Accounts; Ocean Economy; Blue Economy; Ocean-related activities; Local Economic Activity; Input-Output Analysis; Domestic Value Chains |
| JEL: | C67 D57 E01 R12 |
| Date: | 2024–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:ris:nereus:2024_003&r=env |
| By: | Aggarwal, Khushboo (Christ University); Barua, Rashmi (Jawaharlal Nehru University); Vidal-Fernandez, Marian (University of Sydney) |
| Abstract: | We investigate the impact of groundwater contamination on educational outcomes in India. Our study leverages variations in the geographical coverage and timing of construction of safe government piped water schemes to identify the effects of exposure to contaminants. Using self-collected survey data from public schools in Assam, one of the most groundwater-contaminated regions in India, we find that prolonged exposure to unsafe groundwater is associated with increased school absenteeism, grade retention, and decreased test scores and Cumulative Grade Point Average (CGPA). To complement our findings and to study the effect of one such contaminant, arsenic, we use a large nationally representative household survey. Using variations in soil textures across districts as an instrument for arsenic concentration levels we find that exposure to arsenic beyond safe threshold levels is negatively associated with school attendance. |
| Keywords: | water contamination, education, India |
| JEL: | I15 I25 F63 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16863&r=env |
| By: | Roozbeh Qorbanian; Nils L\"ohndorf; David Wozabal |
| Abstract: | Corporate renewable power purchase agreements (PPAs) are long-term contracts that enable companies to source renewable energy without having to develop and operate their own capacities. Typically, producers and consumers agree on a fixed per-unit price at which power is purchased. The value of the PPA to the buyer depends on the so called capture price defined as the difference between this fixed price and the market value of the produced volume during the duration of the contract. To model the capture price, practitioners often use either fundamental or statistical approaches to model future market prices, which both have their inherent limitations. We propose a new approach that blends the logic of fundamental electricity market models with statistical learning techniques. In particular, we use regularized inverse optimization in a quadratic fundamental bottom-up model of the power market to estimate the marginal costs of different technologies as a parametric function of exogenous factors. We compare the out-of-sample performance in forecasting the capture price using market data from three European countries and demonstrate that our approach outperforms established statistical learning benchmarks. We then discuss the case of a photovoltaic plant in Spain to illustrate how to use the model to value a PPA from the buyer's perspective. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.08846&r=env |
| By: | Selim Mankaï (IAE - UCA - Institut d'Administration des Entreprises - Clermont-Auvergne - UCA - Université Clermont Auvergne, UCA - Université Clermont Auvergne); Sébastien Marchand (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, UCA - Université Clermont Auvergne); Ngoc Ha Le (UCA - Université Clermont Auvergne) |
| Abstract: | The demand for voluntary insurance against low-probability, high-impact risks is lower than expected. To assess the magnitude of the demand, we conduct a meta-analysis of contingent valuation studies using a dataset of experimentally elicited and survey-based estimates. We find that the average stated willingness to pay (WTP) for insurance is 87% of expected losses. We perform a meta-regression analysis to examine the heterogeneity in aggregate WTP across these studies. The meta-regression reveals that information about loss probability and probability levels positively influence relative willingness to pay, whereas respondents' average income and age have a negative effect. Moreover, we identify cultural sub-factors, such as power distance and uncertainty avoidance, that provided additional explanations for differences in WTP across international samples. Methodological factors related to the sampling and data collection process significantly influence the stated WTP. Our results, robust to model specification and publication bias, are relevant to current debates on stated preferences for low-probability risks management. |
| Abstract: | La demande d'assurance volontaire contre les risques à faible probabilité et à fort impact est plus faible que prévu. Pour l'ampleur de la demande, nous effectuons une méta-analyse des études d'évaluation contingente à l'aide d'un d'estimations obtenues expérimentalement et basées sur des enquêtes. Nous constatons que le consentement à payer (CAP) moyen déclaré à payer (CAP) pour l'assurance est de 87 % des pertes attendues. Nous effectuons une analyse de méta-régression pour examiner l'hétérogénéité de la volonté de payer globale dans ces études. La méta-régression révèle que les informations sur la probabilité des pertes et les niveaux de probabilité influencent positivement la volonté relative de payer, tandis que le revenu moyen et l'âge des personnes interrogées ont un effet positif sur la volonté de payer. le revenu moyen et l'âge des répondants ont un effet négatif. En outre, nous identifions des sous-facteurs culturels, tels que la distance de pouvoir et l'évitement de l'incertitude, qui ont fourni des explications supplémentaires pour les différences de consentement à payer entre les échantillons internationaux. de la volonté de payer dans les échantillons internationaux. Les facteurs méthodologiques liés à l'échantillonnage et à la collecte des données d'échantillonnage et de collecte des données influencent de manière significative le CAP déclaré. Nos résultats, robustes à la spécification du modèle et au biais de publication, sont pertinents pour les débats actuels sur l'acceptation de paiement. de publication, sont pertinents pour les débats actuels sur les préférences déclarées en matière de gestion des risques à faible probabilité. |
| Keywords: | Low probability risks, Contingent valuation, Insurance demand, Stated preferences method, Metaanalysis, Economic experiments |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04474880&r=env |
| By: | Nguyen, Ha Trong; Zubrick, Stephen R.; Mitrou, Francis |
| Abstract: | This study explores the allocation of time, particularly to sleep, among children and adolescents in response to daily solar cycles. Utilizing a dataset of over 50, 000 time-use diaries from two Australian cohorts spanning 16 years and employing an individual fixed effects estimator, we uncover a significant correlation between daylight duration and sleep patterns. Our findings reveal that days with longer daylight hours are associated with a decrease in total sleep duration, driven primarily by later sleep onset and earlier wake times. Additionally, longer daylight hours correspond to reduced time spent on personal care and media activities, with increased dedication to school and physical activities. Furthermore, we identify socio-demographic factors moderating these effects, such as older age and weekdays exerting a stronger influence on sleep duration, while children of mothers with lower education or unemployment exhibit a subtle impact. These insights contribute to our understanding of how environmental factors shape daily routines and offer implications for designing schedules that promote positive developmental outcomes in young individuals. |
| Keywords: | Sleep, Time Allocation, Circadian Rhythms, Solar Cycles, Children |
| JEL: | I00 I12 J22 J24 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1410&r=env |
| By: | Zineb Aouni; Marek Hudon; Anaïs A Périlleux; Tyler Wry |
| Abstract: | Unlike traditional investing, where decisions follow a clear financial calculus, it is unclear how and why funders support hybrid ventures. To address this question, we analyze the varied priority that investors place on social impact versus financial returns and draw on categories theory to argue that different priority orderings associate with different perceptions of how hybridity aligns with different investment goals. Results show that funders who prioritize financial goals react positively when they perceive a venture exhibits greater hybridity, while funders who prioritize social impact do not. Our findings contribute to research on impact investing, hybrid organizations, and categories theory. |
| Keywords: | ESG; investment funds; social banks; Sustainable Finance Disclosure Regulation (SFDR); greenwashing; transparency |
| Date: | 2024–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/369203&r=env |
| By: | Wei Zhou; Alice Moncaster; Eoghan O’Neill; David M Reiner; Xinke Wang; Peter Guthrie |
| Keywords: | Urban residential buildings, embodied energy, dynamic stock turnover, probabilistic model, material intensity, policy implications |
| JEL: | O18 R21 Q4 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2209&r=env |
| By: | Susan Das (TrustBridge Rule of Law Foundation); Renuka Sane (TrustBridge Rule of Law Foundation); Ajay Shah (xKDR Forum) |
| Abstract: | Shifting agriculture away from the grid may help address fiscal challenges faced by the Tamil Nadu state government. The paper presents a cost-benefit analysis of implementing solarised irrigation pumps in Erode district, Tamil Nadu. The analysis is based on underlying assumptions on climatic conditions, cropping patterns and irrigation requirements in the district. The results suggest that the state and discom can benefit from the solarisation of agriculture if they can sell surplus power to commercial and industrial (C&I) consumers or in the power exchange market. The paper also performs cost-benefit analysis with the assumption of reduction in solar panel costs in future and finds that the discom would continue to gain net positive benefits. The paper also recommends formalising higher feed-in tariffs, supporting capital cost through subsidies, and exploring alternative procurement approaches. |
| Keywords: | Electricity, Tamil Nadu, agriculture, solar pumps, tariffs, subsidies |
| JEL: | Q H2 H53 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bjd:wpaper:1&r=env |
| By: | Irène Mestre (InSyTE - Interdisciplinary research on Society-Technology-Environment - UTT - Université de Technologie de Troyes); Sabrina Dermine-Brullot (InSyTE - Interdisciplinary research on Society-Technology-Environment - UTT - Université de Technologie de Troyes, Chaire de recherche Transitions des Territoires Agricoles - UTT - Université de Technologie de Troyes); Pierre Guillemin (ASTER Mirecourt - Agro-Systèmes Territoires Ressources Mirecourt - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, ESO - Espaces et Sociétés - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UM - Le Mans Université - UA - Université d'Angers - UR2 - Université de Rennes 2 - CNRS - Centre National de la Recherche Scientifique - Nantes Univ - IGARUN - Institut de Géographie et d'Aménagement Régional de l'Université de Nantes - Nantes Université - pôle Humanités - Nantes Univ - Nantes Université - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Pauline Marty (InSyTE - Interdisciplinary research on Society-Technology-Environment - UTT - Université de Technologie de Troyes, Chaire de recherche Transitions des Territoires Agricoles - UTT - Université de Technologie de Troyes); Emma Teillet (InSyTE - Interdisciplinary research on Society-Technology-Environment - UTT - Université de Technologie de Troyes, Chaire de recherche Transitions des Territoires Agricoles - UTT - Université de Technologie de Troyes, UTT - Université de Technologie de Troyes); Céline Schott (ASTER Mirecourt - Agro-Systèmes Territoires Ressources Mirecourt - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | The sanitary measures induced by Covid-19 have caused an unprecedented shock to food demand by profoundly affecting consumption patterns, which recent events (the crisis in Ukraine) have put back at the center of the issues of autonomy, resilience, and vulnerability of agricultural and food systems. Our research mobilizes four contrasting case studies in the Grand Est region to understand how agricultural and food systems have reacted to Covid-19, and its possible implications in the face of other disruptions. In this paper, we propose an analytical framework to highlight the resilience characteristics of the agricultural and food systems in the Grand Est. More specifically, we examine the role of local authorities in proximity and long distance circuits and their effects on the resilience of the agricultural and food systems. |
| Abstract: | Les mesures sanitaires induites par la Covid-19 ont provoqué un choc sans précédent sur la demande alimentaire en affectant profondément les modes de consommation, que l'actualité récente (crise en Ukraine) replace au centre des enjeux d'autonomie, de résilience, et de vulnérabilité des systèmes agricoles et alimentaires (SAA). Notre recherche mobilise quatre cas d'étude contrastés en Grand Est pour comprendre comment les SAA ont réagi face à la Covid-19, et ses possibles implications face à d'autres perturbations. Dans cet article, nous proposons une grille d'analyse permettant de mettre en évidence les caractéristiques de résilience du SAA en GrandEst. Plus précisément, nous interrogeons le rôle des collectivités territoriales dans les circuits de proximité et circuits longs et leurs effets sur la résilience des SAA. |
| Keywords: | Agri-food system, Health crisis, Public actor, Resilience, Adaptation, Collectivités territoriales, Crise sanitaire, Résilience, Système agrialimentaire |
| Date: | 2022–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04487277&r=env |