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on Environmental Economics |
| By: | Khlil, Brahim (Independent researcher) |
| Abstract: | This white paper delineates Mauritania’s strategic economic and social blueprint for 2024-2030, aimed at fostering sustainable growth, economic diversification, and resilience. It underscores the nation’s initiative to leverage its rich natural resources and the strategic pivot towards diversifying its economy, with special emphasis on the emerging gas sector and renewable energy ventures. Central to this strategy are pivotal initiatives such as the Tekavoul program, TAAZOUR’s comprehensive health insurance project, and SNDP’s role in bolstering the fisheries sector, each playing a crucial role in enhancing the living standards of Mauritania’s populace and steering the country towards its ambitious 2030 vision. Through these strategic endeavors, Mauritania is poised to navigate the complexities of global economic shifts, underscoring its commitment to sustainable development and prosperity. This document serves as an essential guide for stakeholders and investors looking into Mauritania’s concerted efforts towards a resilient and prosperous future. |
| Date: | 2024–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:osf:africa:hgn46&r=env |
| By: | Khlil, Brahim (Independent researcher) |
| Abstract: | The paper, "Green Steel Blueprint: Mauritania's Strategic Pathway to Sustainable Industrial Leadership, " positions Mauritania at the forefront of a potential economic and industrial revolution through the development of a green steel industry. Despite its current status as an exporter of iron ore without domestic steel production, Mauritania is uniquely poised to leverage its abundant natural resources, including vast iron ore reserves and significant renewable energy potential, to pioneer sustainable steel production. Highlighting the economic context and recent discoveries of gas reserves alongside renewable energy initiatives, the paper advocates for the adoption of green hydrogen technology in steel manufacturing to reduce carbon emissions and align with global sustainability goals. It underscores the economic viability, environmental benefits, and strategic importance of transitioning to green steel production. Addressing challenges such as technological and financial hurdles, the paper recommends strategic actions including international collaborations and policy support to realize this vision. It suggests that Mauritania can not only diversify its economy and enhance its global standing but also contribute to the fight against climate change by embracing green steel production. |
| Date: | 2024–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:smzb7&r=env |
| By: | Robert Engle; Shan Ge; Hyeyoon Jung; Xuran Zeng |
| Abstract: | As the frequency and severity of natural disasters increase with climate change, insurance—the main tool for households and businesses to hedge natural disaster risks—becomes increasingly important. Can the insurance sector withstand the stress of climate change? To answer this question, it is necessary to first understand insurers’ exposure to physical climate risk, that is, risks coming from physical manifestations of climate change, such as natural disasters. In this post, based on our recent staff report, we construct a novel factor to measure the aggregate physical climate risk in the financial market and discuss its applications, including the assessment of insurers’ exposure to climate risk and the expected capital shortfall of insurers under climate stress scenarios. |
| Keywords: | insurance; climate change; physical risk |
| JEL: | G1 G2 G3 |
| Date: | 2024–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:98025&r=env |
| By: | : Dubois, Loick (University Paris-Dauphine); Sahuc, Jean-Guillaume (Banque de France, University Paris-Nanterre); Vermandel, Gauthier (Ecole Polytechnique, Palaiseau and University Paris-Dauphine) |
| Abstract: | This paper studies the general equilibrium effects of carbon permit banking during the transition to a climate-neutral economy by 2050. The analysis highlights the critical role of permit banking in shaping the policy outcomes. |
| Keywords: | Emission trading systems, cap policies, carbon permit banking, environmental real business cycle model, occasionally-binding constraints, nonlinear estimation |
| JEL: | C32 E32 Q50 Q52 Q58 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bda:wpsmep:wp2024/20&r=env |
| By: | Corentin Roussel |
| Abstract: | Differentiated treatment of green credit risk in banks’ capital requirements to favor green transition generates lot of debates among European prudential regulators. The aim of this paper is to examine whether the key Basel 3 finalization instrument - the Output Floor - should be applied to green credit risk in order to ensure stability of banking system and promote green finance. To do so, we assess macrofinancial and environmental benefits of such green policy for the Euro Area through the lens of a general equilibrium model. We get three main results. First, when banks get transitory ’environmental awareness’, an Output Floor (OF) applied to brown credits only (i.e. a brown OF) faces a trade-off between limiting environmental aftermaths and reaching OF objectives (i.e reducing volatility of banks’ capital adequacy ratio). Second, to mitigate the prudential cost of this trade-off, brown OF should be joined with additional green financial policies such as green Quantitative Easing. Third, pollutant emissions tax erodes brown OF efficiency along financial and economic cycles but limits the welfare cost implied by pollution in the long run. |
| Keywords: | Output Floor, Credit Risk, Green Finance, Climate Change, DSGE. |
| JEL: | Q54 G21 E44 E51 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2024-07&r=env |
| By: | Marco Ceccarelli (VU University Amsterdam); Stefano Ramelli (University of St. Gallen - School of Finance; Swiss Finance Institute) |
| Abstract: | We study expectations about the energy transition (climate transition beliefs) as drivers of “green” investment decisions and financial performance expectations. In a preregistered survey of U.S. retail investors (N=1, 007), we document considerable heterogeneity in climate transition beliefs at different horizons. More optimistic climate transition beliefs are associated with higher green expected financial performance and investments, especially for investors without strong pro-environmental preferences. A pre-registered information provision experiment (N=3, 003) provides causal evidence of the role of climate transition optimism in investment behavior. By influencing the availability of capital for green projects, the prevailing narratives and beliefs around the energy transition can have important self fulfilling properties. |
| Keywords: | Behavioral Finance, Climate Change, ESG, Expected returns, Heterogeneous beliefs, Information provision experiment, Survey, Sustainable finance. |
| JEL: | D14 H42 G18 P16 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2422&r=env |
| By: | Kythreotis, Andrew P.; Hannaford, Matthew; Howarth, Candice; Bosworth, Gary |
| Abstract: | Climate risk continues to be framed ostensibly in terms of physical, socio-economic and/or ecological risks, as evidenced in the 2012 and 2017 UK Climate Change Risk Assessment (CCRA) evidence reports. This article argues that framing climate risk in this way remains problematic for the science-policy process, particularly in ensuring adequate climate risk assessment information translates into more effective adaptation decision-making. We argue how climate risk assessments need to further consider the social and political aspects of place-based climate risk to ensure more effective adaptation policy outcomes. Using a discourse analysis of the CCRA3 Technical Report methods chapter published in June 2021, we discuss three critical themes around how climate risk is currently framed within the Technical Report methods chapter. These are (i) the over-reliance on reductive methodological framing of assessing climate risk through ‘urgency scores’; (ii) the idea of what constitutes ‘opportunity’; and (iii) the framing of transformational adaptation discourses through the lens of climate risk. To conclude, we suggest that to move beyond assessing risk solely in terms of biophysical and socio-economic risk, a greater emphasis on the social and political contexts of ‘place-based’ risk needs to be central to climate change risk assessments. |
| Keywords: | climate change risk assessments; social and political risk; place-based climate action; adaptation decision-making and transformation; adaptation policy and governance; CCRA3; Andrew Kythreotis and Candice Howarth thank the British Academy and the Department of Business; Energy and Industrial Strategy for funding to continue this research in the context of the new civil politics of climate change (Ref. SRG19\190291); ES/S008381/1; 'through through the PlaceBased Climate Action Network' |
| JEL: | N0 |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122155&r=env |
| By: | Gourene, Grakolet (United Nations Economic Commission for Africa); Hamouda, Samia Mansour (United Nations Economic Commission for Africa (UNECA)); Brixiova, Zuzana (UNECA) |
| Abstract: | Decoupling economic growth from environmental degradation and climate change, increasing resource efficiency, and promoting both sustainable production and sustainable lifestyles is a challenge in North Africa, a region where even a relative decoupling of income growth and carbon (CO2) emissions has not been achieved. This chapter aims to examine recent trends in emissions and the main drivers of improvement in the region's carbon intensity (carbon emissions per unit of GDP), energy intensity (energy use per unit of GDP), and per capita emissions. It also analyzes the effect of policies such as energy taxes and energy standards on the energy efficiency of SMEs in North Africa and suggests actions and policies to encourage structural transformation and ensure better energy efficiency. |
| Keywords: | carbon emission, carbon intensity, energy intensity, inclusive growth, SMEs |
| JEL: | D22 G21 G32 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16854&r=env |
| By: | James H. Stock; Matthew Zaragoza-Watkins |
| Abstract: | From 2015 to 2023, the United States transformed from a net importer of natural gas to the world's largest liquified natural gas (LNG) exporter. We find that this surge in LNG exports has reconnected U.S. gas prices to world market prices, after a hiatus of “shut-in” fracked gas. We estimate that the domestic gas price effect of this recoupling is comparable to a $30/ton carbon tax. For coal prices, which are coupled to gas through competition in the power sector, this effect is comparable to a $20/ton carbon tax. Using the NREL ReEDS model, we estimate that this recoupling reduces U.S. 2030 power sector CO2 emissions by roughly 145 million metric tons. These domestic estimates contribute to estimating the overall climate impact of LNG exports. |
| JEL: | Q41 Q48 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32228&r=env |
| By: | Robert Addison; Giuseppa Ottimofiore; Costanza Caputi; Alberto Morales; Hamsini Shankar |
| Abstract: | To meet their international climate commitments and strengthen renewable energy production, many countries will require significant new investment in low emissions infrastructure. To deliver low emissions infrastructure at the necessary rate and scale, many countries recognise they need better ways of planning and regulating infrastructure and its value chains. This Working Paper describes the challenges and opportunities for using regulatory, stakeholder engagement and public procurement tools to help countries deliver more effective permitting. It provides international good practice case studies to help countries stimulate investment and reduce barriers for new, low emissions infrastructure so they can fulfil their international climate commitments while ensuring existing policy objectives. |
| Date: | 2024–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaaa:68-en&r=env |
| By: | Salomón García-Villegas (Banco de España); Enric Martorell (Banco de España) |
| Abstract: | How should bank capital requirements be set to deal with climate-related transition risks? We build a general equilibrium macro banking model where production requires fossil and low-carbon energy intermediate inputs, and the banking sector is subject to volatility risk linked to changes in energy prices. Introducing carbon taxes to reduce carbon emissions from fossil energy induces risk spillovers into the banking sector. Sectoral capital requirements can effectively address risks from energy-related exposures, benefiting household welfare and indirectly facilitating capital reallocation. Absent carbon taxes, implementing fossil penalizing capital requirements does not reduce emissions significantly and may threaten financial stability. During the transition, capital requirements can complement carbon tax policies, safeguarding financial stability and trading off long-run welfare gains against lower investment and credit supply in the short run. |
| Keywords: | climate risk, financial intermediation, macroprudential policy, bank capital requirements |
| JEL: | Q43 D58 G21 E44 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2410&r=env |
| By: | Elias Asproudis (Department of Economics, Swansea University); Eleftherios Filippiadis (University of Macedonia, Greece) |
| Abstract: | This document delves into the Command-and-Control framework, specifically examining the timing of environmental policymaking within the context of regulating oligopolistic firms to reduce emissions. The regulator faces a crucial decision of implementing technological standards before (ex-ante timing) or after (ex-post timing) firms make production decisions. Geographical considerations also play a role, with regions adopting asymmetric anti-pollution technology standards. An innovative aspect is the inclusion of green trade unions, advocating for environmental conservation during negotiations with firms. The document conducts a comparative analysis of two games employing ex-ante and ex-post approaches, evaluating outcomes across various dimensions. The study emphasizes the significant impact of regulatory timing on environmental and economic outcomes, showcasing the advantages of a proactive (ex-ante) approach in fostering less-polluting technologies, higher production levels, increased profits, elevated social welfare, and reduced environmental damage. These insights contribute to the discourse on environmental policymaking, providing valuable considerations for policymakers, industry stakeholders, and researchers. |
| Keywords: | Command-and-Control, timing of policy, environmental technology, emissions, oligopoly |
| JEL: | D43 L13 Q5 |
| Date: | 2024–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:swn:wpaper:2024-04&r=env |
| By: | Viktoras Kulionis; Andreas Froemelt; Stephan Pfister |
| Abstract: | In this study, we explore a range of options and outcomes associated with using different allocation approaches to operationalise the Planetary Boundaries (PB) framework at the country, sector, and city scales. We demonstrate: (i) how to translate the PB framework into various sub-global scales (countries, cities, industries); and (ii) how to take global/local aspects (e.g., water use at the watershed level) into account. Finally, we apply the proposed methodology to derive country, city, and sector-specific budgets consistent with the PB concept for Switzerland. We then benchmark the translated PBs for climate, biodiversity, and freshwater use against actual environmental pressures in Switzerland from both production- and consumption-based perspectives. This effectively enables us to provide a comprehensive assessment of whether Switzerland is living within its safe operating space. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.11680&r=env |
| By: | Sastry, Parinitha; Verner, Emil; Marqués-Ibáñez, David |
| Abstract: | This paper studies the impact of voluntary climate commitments by banks on their lending activity. We use administrative data on the universe of bank lending from 19 European countries. There is strong selection into commitments, with increased participation by the largest banks and banks with the most pre-existing exposure to high-polluting industries. Setting a commitment leads to a boost in a lender’s ESG rating. Lenders reduce credit in sectors they have targeted as high priority for decarbonization. However, climate-aligned banks do not change their lending or loan pricing differentially compared to banks without climate commitments, suggesting they are not actively divesting. We can reject that climate-aligned lenders divest from firms in targeted sectors by more than 2.6%. Firm borrowers are no more likely to set climate targets after their lender sets a climate target, which casts doubt on active engagement by lenders. These results call into question the efficacy of voluntary commitments. JEL Classification: Q50, G21 |
| Keywords: | banks, green lending, voluntary targets |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20242921&r=env |
| By: | Ozili, Peterson K |
| Abstract: | In a world where banked customers are increasingly aware of social and environmental issues, agents of financial inclusion need to adopt sustainable practices to remain relevant. This brings us to the issue of sustainable financial inclusion which is quite different from the mainstream financial inclusion concept. Sustainable financial inclusion is a concept used to describe the integration of sustainability principles into financial inclusion strategies. This paper provides an in-depth discussion of sustainable financial inclusion. Using the discourse analysis method, the paper provides several definitions of sustainable financial inclusion, and show the importance and benefits of sustainable financial inclusion. The paper also highlights the strategies to achieve sustainable financial inclusion and some challenges that may be experienced in the pursuit of sustainable financial inclusion. The implication of sustainable financial inclusion is that there will be increasing demand for agents of financial inclusion to not only seek profits but to also seek the preservation of society and the environment in their efforts to increase financial inclusion in rural and urban areas. The sustainable financial inclusion agenda will give banked adults an opportunity to pressure agents of financial inclusion to be sustainability oriented. This is a privilege that is non-existent in the mainstream financial inclusion agenda. This calls for a shift from the ‘mainstream financial inclusion’ agenda to a ‘sustainable financial inclusion’ agenda. |
| Keywords: | financial inclusion, sustainable financial inclusion, sustainability, sustainable development, sustainable development goals, SDGs |
| JEL: | G21 G28 I31 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120440&r=env |
| By: | Feng, Kuishuang; Chen, Xiangjie |
| Abstract: | How to keep water and land stress within planetary boundaries is a major challenge for sustainable development in Latin American countries. Using a global multi-regional input-output analysis (GMRIO) approach, this study simulates the future land and water demand for Peru, Bolivia, Ecuador, and Colombia under three climate-socioeconomic scenarios: SSP1-RCP2.6, SSP2-RCP4.5, and SSP5-RCP8.5. Under all three scenarios, land and water demand in all four countries are projected to increase rapidly in the next few decades. By 2050, the demand for cropland in Peru and Bolivia will exceed their planetary boundaries and the rise in income will be the most significant contributor to the rising demand. In addition, foreign demand will significantly drive the growth of both water and land demand in Ecuador and land demand in Colombia. Non-agricultural sectors (e.g., the mining sector in the latter) will be primarily responsible for the increased water demand in Ecuador and Peru, exacerbating competition between those sectors and the agricultural sector for water. In Peru and Bolivia, there is a significant spatial mismatch of water and land resources at the basin level. With hydraulic infrastructure as a prerequisite, developing irrigated agriculture may lead to a water-land trade-off that will significantly alleviate the land stress in Peru and Bolivia. |
| Keywords: | Water and sanitation;Water use;Land stress;Agriculture and Food Security;climate change;Productive Transformation;Andean countries;Andean Region |
| JEL: | C67 Q01 Q15 Q24 Q25 Q56 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13093&r=env |
| By: | Singer, Gregor |
| Abstract: | The transition from traditional labor intensive to modern capital intensive production is a key factor for industrial development. Using half a million observations from Indian manufacturing plants, I analyze the effects of a secular decrease in industrial electricity prices through the lens of a model with technology choices and complementarities between electricity and capital inputs. Using instrumental variables, I show how lower industrial electricity prices can increase both labor productivity and electricity productivity. Apart from positive effects on firm economic and environmental performance, cost-price pass through significantly benefitted consumers, and the productivity improvements limited increases in carbon emissions. |
| Keywords: | industrial development; energy efficiency; electricity productivity; labor productivity; electricity prices; coal prices; incidence; climate policy |
| JEL: | Q41 D24 D20 O14 |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122365&r=env |
| By: | pohit, sanjib; Bhattacharya, Anindya; Chaudhuri, Chetana; Beena, P.L.; Mathur, Somya; Pratap, Devender; Mallik, Hrushikesh; Meena, Mohit; Jain, Ritika; Thampi, Malavika |
| Abstract: | As India has embarked on the journey of fulfilling its net-zero emissions target by 2070, the states of India are steering up too to meet the target. The per capita emissions for Kerala are lower than the national average. The energy sector is the main contributor to GHG emissions in Kerala. A major share of 76 percent of electricity power is purchased from other states. When other states undergo an energy transition, the availability of imported electricity may be a challenge for Kerala. Hence, the State needs to harness its own potential for renewable energy sources and incorporate improved technologies leading to energy efficiencies in all sectors. Accordingly, this paper has undertaken integrated modelling (an approach with the primary objective of quantifying the gains and losses of low-carbon transitions and their financial implications). The integrated modelling approach involves soft linking of the macroeconomic top-down CGE model and bottom-up (Messageix) energy model. The integrated model is a recursive dynamic model with multiple periods of time. In this paper, we have undertaken a policy scenario in which (i) the imports of fossil-based electricity from other states of India are restricted to Kerala, (ii) 50 percent of the existing potential of renewable electricity by various modes is achieved in Kerala and the rest of India, and (iii) energy efficiency in all energy sectors is increased to the tune of 2.5 percent per annum along with 1 percent total productivity growth per annum in all sectors of the Kerala and India economies. Our results show that the reduced import of fossil fuel electricity without any policy intervention to strengthen the renewable energy sector would hamper growth. On the other hand, investment in renewable energy to facilitate a complete energy transition with self-reliance on energy for the state would expand the economy, increase the returns to the factors of production, and increase employment. The key message that comes out from our simulation is that the energy transition towards renewable energy will not take place without complementarity support polices towards this sector. Our observation is that energy transition may be a win‒win situation in the sense that growth and employment creation may be positive with suitable policy intervention. It must be mentioned that the paper focused only on the energy sector. The developed model may be used in the future to focus on the economic implications of other policies, such as carbon sequestration. |
| Keywords: | Low carbon pathway, Integrated Assessment model, Kerala, India, Energy transition |
| JEL: | Q42 Q43 Q47 |
| Date: | 2024–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120363&r=env |
| By: | Yuan, Mingqing |
| Abstract: | In this study, a panel vector autoregressive (PVAR) model with system generalized method of moments (GMM) estimation is utilized to examine the dynamic causalities among economic growth, healthcare expenditure, and CO2 emissions in Asia-Pacific countries from 2000 to 2019. Results show that economic growth has a positive effect on government healthcare expenditure, with bidirectional causality observed with private healthcare spending. No significant long-term relationship is detected in the former case. These results emphasize the role of economic development in bolstering public health and reflect a later weakening of the level of government response as economies expand. Additionally, CO2 emissions negatively affect economic growth in a unidirectional manner. The impulse response analysis supports the presence of the environmental Kuznets curve (EKC). Furthermore, while a bidirectional causality exists between CO2 emissions and government healthcare spending, a long-standing correlation remains elusive. This result calls for a dual focus on enhancing healthcare services and reducing emission for health and environmental benefits. The results of variance decomposition highlight the significant contribution of government healthcare expenditure to economic growth and private healthcare spending, in addition to the important role of private healthcare spending in economic growth. These findings offer policymakers evidence-based insights to formulate strategies that balance economic growth, sustainable development, and healthcare provision. |
| Keywords: | Economic growth, Healthcare expenditure, CO2 emissions, System-GMM, PVAR, Asia-Pacific region |
| JEL: | C33 C36 C51 I15 O44 O5 O53 Q53 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119994&r=env |
| By: | Marco Letta; Pierluigi Montalbano; Adriana Paolantonio |
| Abstract: | The complex relationship between climate shocks, migration, and adaptation hampers a rigorous understanding of the heterogeneous mobility outcomes of farm households exposed to climate risk. To unpack this heterogeneity, the analysis combines longitudinal multi-topic household survey data from Nigeria with a causal machine learning approach, tailored to a conceptual framework bridging economic migration theory and the poverty traps literature. The results show that pre-shock asset levels, in situ adaptive capacity, and cumulative shock exposure drive not just the magnitude but also the sign of the impact of agriculture-relevant weather anomalies on the mobility outcomes of farming households. While local adaptation acts as a substitute for migration, the roles played by wealth constraints and repeated shock exposure suggest the presence of climate-induced immobility traps. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.09470&r=env |
| By: | Sandra Eickmeier; Josefine Quast; Yves Schuler |
| Abstract: | We examine how natural disasters impact the US economy and financial markets using monthly data since 2000. Our analysis reveals large sustained adverse effects of disasters on overall economic activity, with significant implications across various sectors including labor, production, consumption, investment, and housing. Our findings suggest that these effects stem from heightened financial risk, increased uncertainty, declining confidence and heightened awareness of climate change, leading to negative repercussions on the economy. Additionally, consumer prices increase temporarily, likely due to rising energy and food costs. We find a decline in the monetary policy rate and an increase in government spending, which potentially mitigate the adverse macroeconomic effects. However, we also observe a prolonged rise in public debt relative to GDP and a decrease in r-star following the disasters. With climate change persisting, this could constrain the flexibility of monetary and fiscal policies in the future. Overall, our findings emphasize the urgency of combating climate change and, in tandem, enhancing economic and financial resilience. |
| Keywords: | climate change, natural disasters, transmission, local projections |
| JEL: | C22 E31 E32 E44 E52 E62 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2024-23&r=env |
| By: | Cristian Concha; Nathaly M. Rivera |
| Abstract: | Despite the extensive evidence linking particulate matter exposure to adverse health effects, a significant portion of the global population, especially in low-income countries, continues to depend on highly polluting fuels like wood-burning for cooking and heating. This study evaluates the immediate effects of wood-burning restrictions, triggered by air quality warnings, on levels of fine and coarse particulate matter in the city of Los Angeles, Chile. Employing a regression discontinuity design, we derive plausible causal estimates indicating that wood-burning restrictions significantly reduce daily concentrations of PM10 and PM2.5 during the most severe air quality warning. A battery of additional estimations supports these findings. However, our empirical analysis suggests that, while effective, wood-burning restrictions may not be sufficient to lower air pollution concentrations to levels deemed safe for health. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp557&r=env |
| By: | Ivanova, Nevena; Vasileva, Elka |
| Abstract: | The standardization of sustainable management systems, processes and products can support and strengthen their transformational potential for implementing sustainable development goals. However, scientific research in this area is quite limited. Therefore, our study aims to identify the key sustainable management systems standards (SMSS) and to reveal the leading ISO standards in support of their better development in Bulgarian context. The results of SMSS mapping prove their role as a widely used tool for assessing and improving sustainability practices, in the context of organizational management. |
| Keywords: | Standards for sustainable management systems; mapping; ISO standards; Bulgaria |
| JEL: | M1 M10 Q5 Q59 |
| Date: | 2023–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120373&r=env |
| By: | Stefanov, Stiliyan; Tipova, Nina; Vasileva, Elka; Ivanova, Daniela |
| Abstract: | Food waste is one of the major sustainability issues in the tourism and hospitality industry, particularly in the accommodation and food service sectors. The combination of global conflicts, climate change and high food prices make this problem urgent to solve. This article examines the patterns of food consumption by Bulgarian tourists and the causes of food waste generation in accommodation and dining facilities. The results can be used to develop strategies to reduce food waste and loss. |
| Keywords: | food waste; food consumption; tourist; Bulgaria |
| JEL: | Q18 Q53 |
| Date: | 2023–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120372&r=env |
| By: | Constantin, Tea |
| Abstract: | This work provides an ecosystem analysis of the past, present, and future of the biogas industry, from its environmental implications, to market dynamics, and future market expansion prospects. It is structured in four main sections: context, historical roots, market transitions, and future growth. Context presents climate implications of waste-related emissions, introduces biogas as a potent solution, and dives into the present-day favourable market ecosystem for this industry. Historical Roots highlights early drivers and policy instruments that favoured the industry’s nascence, however, also shaped its development in a way that later hindered growth. Market Transitions dives into the industrialization of biogas, detailing key factors that stimulated a transition to market-based approaches. Previously unidentified barriers for non-fossil-fuel industry players are presented. It then outlines recent global events’ favourable influence on stimulating increased attention to this sector. Future Growth delves into the expanded valorization routes for the inputs and outputs of biogas, alongside the mandates that will stimulate exponential demand for this sector’s future. In this, we conclude with how biogas can provide a cost competitive pathway to hydrogen when compared to the electrolysis pathway, which is currently standing at the forefront of global energy transition policy. In sum, this manuscript offers an ecosystem analysis of the biogas industry through the lens of its evolution across time, from past to future, particularly focusing on legal and market perspectives, to highlight this industry’s pivotal role in meeting future energy demands. |
| Date: | 2024–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:osf:thesis:2znby&r=env |
| By: | Gabriel Porcile |
| Abstract: | Latin American Structuralism is an important strain in development theory, one which focuses on the center-periphery dynamics arising from an international economy ridden by technological, financial and power asymmetries. This paper discusses recent Structuralist contributions around the concept of sustainable development, defined as a growth path that is sustainable in three dimensions: economic, social and environmental. The economic dimension of sustainability means that the effective rate of growth is compatible with the Balance-of-Payments constraint; the social dimension means that growth is inclusive and reduces inequality; and the environmental dimension means that it respects the ecological boundaries of the planet. There are no endogenous market forces that could deliver a sustainable growth path: the role of politics and political negotiations (at the domestic and international levels) is paramount. The effective path that will be observed emerges as political power and structural change co-evolve and create tensions and disequilibria, shaping income distribution and the direction of industrial transformation and technological change. |
| Keywords: | Center-periphery models; Structuralism; sustainable development |
| Date: | 2024–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/10&r=env |
| By: | Scanlan, Oliver |
| Abstract: | Adequately integrating evidence from diverse social science perspectives, from political ecology to development studies, gives us a clear picture of the conditions necessary for conservation strategies to support human rights outcomes. Collectively these comprise the need for principles of recognitional, procedural and distributional justice to be embedded in conservation programs. An analysis of the World Bank-funded Sustainable Access to Forests and Livelihoods (SUFAL) Program in Bangladesh, finds significant shortcomings relating to this conception of environmental justice within the disclosed project documentation. The SUFAL project is likely to fail in achieving human rights outcomes. The theoretical implication is that at least in some cases area-based conservation will fail to protect human rights because justice is not part of the plan. The methodological implication is that analysis of all extant disclosed donor documentation by area experts is a research priority, allowing us to determine the extent to which the SUFAL intervention design is typical. To the extent that it is typical, it is likely that the Global Biodiversity Framework will fail to achieve human rights outcomes. In policy terms, this further vindicates recent progress in donor disclosure practices; such practices should be strengthened where they already exist, and adopted immediately by conservation NGOs and civil society organizations. |
| Date: | 2024–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:x8u2a&r=env |
| By: | Sarami Foroushani, Taraneh; Balali, Hamid; Movahedi, Reza; Partelow, Stefan |
| Abstract: | Sustainable access to groundwater remains a key challenge for local users, managers and policy makers, particularly in arid agricultural regions such as Iran. Identifying and assessing the status of diverse sustainability indicators using local knowledge can act as a step in the right direction for often invisible and hard to measure resources, especially when developed through inclusive approaches that include expert stakeholder inputs. In this article, we apply Ostrom's social-ecological systems framework (SESF) to assess how the local knowledge of key informant stakeholders can be used to assess the sustainability of groundwater resources on the Hamadan-Bahar plain in Iran. We evaluate the importance of each of the SESF’s first-tier variables based on 52 indicators attained from literature review and expert insights. Local knowledge is used to assess the sustainability status of each indicator through a survey of 22 key informants. For data analysis, we use the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) and the Shannon Entropy methodologies to weight and rank indicators based on the data provided on their influence on sustainability. Findings suggest that the Resource System (RS) and Resource Unit (RU) indicators have the most positive influence on sustainability. In contrast, the Governance System (GS), Actor (A) and Interaction (I) first-tier variables were evaluated as less stable, along with Outcomes (O). This suggests that social factors and diverse outcomes may need further attention in the region to ensure management and policy development that can better enable sustainable outcomes. This analysis also demonstrates the usefulness of a comprehensive science-based framework for organizing, analyzing and presenting a wide range of complex information to inform policymakers and planners. |
| Keywords: | Groundwater management, local knowledge, knowledge co-production, sustainability indicators, socio-ecological systems (SES), stakeholder inclusion, water governance, commons |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:289209&r=env |
| By: | Peters, Koen (Tilburg University, Center For Economic Research); Fleuren, H.A. (Tilburg University, Center For Economic Research); Cruijssen, Frans (Tilburg University, Center For Economic Research) |
| Keywords: | Sustainable development goals; zero hunger; analytics; operations research; impact |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:a228bc07-76f6-4405-b563-87a64d2fd4b0&r=env |
| By: | Manuel Alejandro Cardenete; M. Carmen Lima; Ferran Sancho |
| Abstract: | We study the role that the productive structure plays in determining carbon dioxide (CO2) emissions by industry. Specifically, we distinguish and isolate the interdependencies originating from the structure of the demand for inputs from those resulting from the supply structure. This separation has the advantage of enabling a better identification of the causal origin of emissions and allows the establishment of a catalog of industries based on their characteristics as demanders or suppliers of inputs. This information, linked to the different nature of demand or supply, can be relevant for designing more effective emission containment measures. The empirical basis of the analysis utilizes input-output data for Spain in 2020, while the methodological platform is an adaptation of the hypothetical extraction method (HEM). |
| Keywords: | demand-induced emissions, supply-induced emissions, selective extractions |
| JEL: | C67 D57 Q51 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1435&r=env |
| By: | Basaglia, Piero; Isaksen, Elisabeth; Sato, Misato |
| Abstract: | Carbon pricing is often paired with compensation to carbon-intensive firms to mitigate carbon leakage risk. This paper examines the causal impacts of compensation payments for indirect carbon costs embodied in electricity prices. We use confidential UK administrative microdata to exploit firm-level inclusion criteria in both difference-in-differences and regression discontinuity frameworks. Our findings suggest that compensated firms increased production and electricity use relative to uncompensated firms, with no significant effect on energy intensity. While compensation lowers leakage risk, it also implies large forgone opportunity costs of public funds and increased mitigation costs of meeting national emission targets. |
| Keywords: | carbon pricing; compensation schemes; competitiveness; electricity consumption |
| JEL: | Q52 Q58 Q40 Q41 H23 |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122364&r=env |
| By: | ROGNA Marco (European Commission - JRC) |
| Abstract: | With almost eight hundred millions people suffering from hunger in 2022, the world population projected to increase of 2 additional billions units by 2050 and the need to strongly curb greenhouse gas emissions, food production will remain a central issue in the next decades. In particular, the need to balance between environmental sustainability and output growth will require to make crucial choices. Agro-ecology, for example, strongly advocates the need to reduce inputs use in agriculture, often criticizing the intensification policy implemented during the so called "Green Revolution". However, every decision has benefits and costs. While the effect of agricultural inputs on yields has been largely studied, their contribution to nutritional outcomes has been partly overlooked. In order to take well-informed decisions about optimal inputs intensity, this is an aspect to be taken into consideration. Therefore, the present paper investigates the role of agricultural inputs in reducing undernourishment through fixed effect panel regressions at country level. By covering roughly half of the countries in the world for a 20 years' time period, it is shown that irrigation and mineral fertilizers positively and significantly contribute to reduce undernourishment. Pesticides and manure are also beneficial, but their contribution is less robust, while land per-capita seems to be inconsequential. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:eapoaf:202403&r=env |
| By: | DiMaria, charles-henri |
| Abstract: | Taxonomy and efficiency assessments provide financial intermediaries (FIs) with guidance to grant funds according to the Environmental, Social and Governance principles. The EBRD provides a classification of industries according to a priori potential risk (low, medium or high). Using a panel of 28 industries in Luxembourg (2008-2019) and National Account data (NA), we challenge this taxonomy. We compute Data Envelopment Analysis (DEA) efficiency scores indicating if an industry could increase output while simultaneously lowering the emission of greenhouse gases. Our results show that EBRD low risk industries are the most efficient ones. Surprisingly, high-risk industries are more efficient than medium-risk ones, suggesting a potential unintended outcome of the EBRD taxonomy—limiting credit to industries classified as high risk that are in fact more efficient than industries classified as medium risk. |
| Keywords: | EBRD Risk taxonomy; Social acceptance; efficiency; bad output; credit rationing; ESG |
| JEL: | C44 G11 Q51 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120410&r=env |
| By: | Michael Keen; Christos Kotsogiannis |
| Abstract: | Border Carbon Adjustment Mechanisms (BCAMs) are becoming reality in the EU and elsewhere, and recur—in very different form—in U.S. legislative proposals. But they remain contentious, with features and differences that leave the underlying welfare rationale and implications unclear. Exploring these, this paper establishes two general principles for Pareto efficient BCAM design: regulatory measures should be recognized symmetrically with explicit carbon prices; and, whatever the ambition of mitigation in the BCA-imposing country, a general ‘difference-in-differences’ form of a BCAM is appropriate. These nest, as special cases, the very different approaches to BCAM design in Europe and the U.S. |
| Keywords: | environmental taxation, carbon pricing, border tax adjustment, international taxation |
| JEL: | H21 H23 H87 F18 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11016&r=env |
| By: | Abir Khribich (Université Côte d'Azur, CNRS, GREDEG, France); Rami H. Kacem (Faculty of Economic Sciences and Management of Nabeul, University of Carthage, Tunisia; LEGI, Tunisia Polytechnic School); Damien Bazin (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | This study introduces a pioneering approach marking the first comprehensive analysis explicitly designed to assess the technical efficiency of renewable energy consumption and its influencing factors. Based on data from 22 high-income countries covering the period 1996 to 2019 a Stochastic Frontier Analysis (SFA) was used to derive scores crafting a distinctive ranking of countries. Notably, Norway, Sweden, and Finland emerge as frontrunners, reflecting their efficiently robust approaches to renewable energy adoption. Empirical findings highlight the crucial role of financial development, revealing a significant and positive impact on increased renewable energy consumption efficiency. This is followed by other key factors such as institutional conditions and social development. Particularly, a non-linear impact was observed for other determinants, including trade openness, economic growth, and CO2 emissions. To explore more profoundly, the study projects six prospective scenarios, each exerting distinct influences on technical efficiency scores. Enhanced financial development, trade openness, and higher CO2 emissions are linked to elevated technical efficiency levels, albeit with variable effects among countries. Interestingly, increased growth in social development was associated to decreased technical efficiency scores, similarly, some countries experienced a counterproductive effect from a stimulated economic growth. Simulation results emphasize the imperative to address contextual variability, aiming to strike a balance between developmental objectives and optimizing the use of renewable energy. |
| Keywords: | Renewable energy consumption, Efficiency, Technical Efficiency, SFA, high-income countries |
| JEL: | Q20 Q28 Q48 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2024-09&r=env |
| By: | Ojo, Marianne |
| Abstract: | The US Inflation Reduction Act 2022, was signed into law in August 2022. It aims amongst other objectives, “to lower energy costs for families and small businesses, accelerate private investment in clean energy solutions in every sector of the economy – as well as nationally, strengthen supply chains, and create good paying jobs and new economic opportunities for workers.” According to the section, “Investing in Clean Hydrogen”, as provided for in the Inflation Reduction Act Guidebook (2023: see page 74 of 184), “Clean hydrogen constitutes a major component of President Biden’s plan to decarbonize the industrial sector. As well as providing $9.5 billion for clean hydrogen initiatives, through the Bipartisan Infrastructure Law, $1 billion was also set aside for a “Clean Hydrogen Electrolysis program”, to reduce the cost of hydrogen produced from clean electricity.” Further, $500 million was committed towards “Clean Hydrogen Manufacturing and Recycling/Initiatives” aimed at supporting equipment manufacturing and strong domestic supply chains for clean hydrogen. Having experienced inflationary levels at unprecedented record highs – globally, in recent months, the possible impacts of recent accommodative monetary policies will be considered in this paper. The paper will aim to highlight why addressing current inflation levels – and particularly through green energy techniques and technologies – which incorporate and embrace the use of green hydrogen, constitute a much welcomed approach in addressing current inflationary levels. |
| Keywords: | Inflation Reduction Act 2022; Green hydrogen; Green energy, green steel ; technologies; techniques; electrolysis |
| JEL: | F4 F43 F47 F6 F64 H3 P5 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120514&r=env |
| By: | Emanuele Bacchiocchi; Andrea Bastianin; Graziano Moramarco |
| Abstract: | We estimate the short-run effects of severe weather shocks on local economic activity and assess cross-border spillovers operating through economic linkages between U.S. states. We measure weather shocks using a detailed county-level database on emergency declarations triggered by natural disasters and estimate their impacts with a monthly Global Vector Autoregressive (GVAR) model for the U.S. states. Impulse responses highlight significant country-wide macroeconomic effects of weather shocks hitting individual regions. We also show that (i) taking into account economic interconnections between states allows capturing much stronger spillover effects than those associated with mere spatial adjacency, (ii) geographical heterogeneity is critical for assessing country-wide effects of weather shocks, and (iii) network effects amplify the local impacts of these shocks. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.10907&r=env |
| By: | Rami H. Kacem (Faculty of Economic Sciences and Management of Nabeul, University of Carthage, Tunisia; LEGI, Tunisia Polytechnic School); Abir Khribich (Université Côte d'Azur, CNRS, GREDEG, France); Damien Bazin (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | The purpose of this paper is to explore how social development affects renewable energy consumption. The proposed methodology derives from the Social Development Index (SDI) which is calculated by aggregating several indicators associated with social well-being. In addition, the added value of this paper, compared to the literature, is to consider a possible non-linear relationship between social development and renewable energy consumption, based on the nonlinear Autoregressive Distributed Lag (ARDL) approach. Using Tunisian data for empirical validation, the proposed procedure provides original results. Indeed, it provides more details about the impact of increasing versus decreasing portions of social development on renewable energy consumption in the short and long run. Thus, it is found that renewable energy consumption is particularly sensitive to the decrease in social development. Indeed, according to our estimation and for the Tunisian case, a 1% decrease in social development leads to a decrease in renewable energy consumption by 3.235%. The proposed procedure merit to be validated for different cases and contexts. |
| Keywords: | ARDL, Capabilities, Causality, Renewable energy, Social development, Tunisia |
| JEL: | C20 Q20 Q28 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2024-07&r=env |
| By: | Xin Sheng (Lord Ashcroft International Business School, Anglia Ruskin University, Chelmsford, EK); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Wenting Liao (School of Finance, Renmin University of China, Beijing, People's Republic of China); Oguzhan Cepni (Copenhagen Business School, Department of Economics, Porcelaenshaven 16A, Frederiksberg DK-2000, Denmark; Ostim Technical University, Ankara, Turkiye) |
| Abstract: | We analyse the impact of uncertainty on the Economic Conditions Index (ECI) of the 50 US states in a panel data set-up, over the weekly period of the 3rd week of April 1987 to the 4th week of March 2023. Using impulse response functions (IRFs) from a linear local projections (LP) model, we show that uncertainty, as captured by the stochastic volatility (SV) of the ECIs, negatively impacts ECI in a statistically significant manner. More importantly, using a nonlinear LP model, the IRFs reveal that the adverse effect of uncertainty is significantly much stronger under the high-regime of climate risks when compared to the low-regime of the same. Understandably, our results have important policy implications. |
| Keywords: | Economic conditions, Uncertainty, Climate risks, US states, Linear and nonlinear local projections models |
| JEL: | C23 D80 E32 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202410&r=env |
| By: | Mekonnen, Dawit Kelemework; Mekonnen, Yalew; Warner, James; Ringler, Claudia |
| Abstract: | The El Nino Southern Oscillation (ENSO) weather event of 2015/16 caused severe drought conditions in northern and central Ethiopia affecting the welfare of millions of farmers in late 2015 and early 2016. Using nationally representative panel data collected in 2012 and 2016 and recent advances in the difference-indifferences literature, this paper explores the effects of the 2015/16 drought and the potential role of irrigation in reducing the adverse effects of the drought. We find that the drought caused, on average, a 37 percent reduction in net annual crop income, an 8 percent decline in area cultivated, a 3 percent decline in household dietary diversity score, and a 10 percent decline in the share of harvest sold for rainfed farmers. On the other hand, irrigating farmers affected by the drought managed to increase their daily expenditures by 72 percent of their average daily food expenditure in the pre-drought period, and maintained their net crop income, size of cultivated land, household dietary diversity, and share of harvest sold to the market. Overall, while rainfed agricultural producers suffered sharp declines in welfare, those farmers with access to irrigation maintained their economic status. The results suggest that irrigation protected farmers from the adverse effects of the 2015/16 ENSO event and given increasing climate variability in Ethiopia, the government should intensify its investment and support to irrigation development in the country. |
| Keywords: | drought; irrigation; resilience; farmers; Ethiopia; Afria; Eastern Africa |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2242&r=env |
| By: | Campolmi, Alessia (University of Verona); Fadinger, Harald (University of Mannheim and CEPR); Forlati, Chiara (University of Southampton); Stillger, Sabine (University of Mannheim); Wagner, Ulrich J. (University of Mannheim and ZEW) |
| Abstract: | This paper proposes a Leakage Border Adjustment Mechanism (LBAM) as a mechanism to tackle carbon emissions and avoid leakages. It requires no knowledge of embedded emissions and can be applied to all tradable sectors. It implements import tariffs (and, possibly, export subsidies) that sterilize the changes in imports (and exports) induced by a higher EU carbon price. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bda:wpsmep:wp2024/19&r=env |
| By: | Leogrande, Angelo; Resta, Emanuela; Costantiello, Alberto |
| Abstract: | In the following article, we estimate the Renunciation of Healthcare Services-RHS in Italian regions in the context of the Environmental, Social and Governance-ESG model during the period 2004-2022. The data were acquired from the ISTAT-BES dataset. The data were analyzed using the following econometric techniques: Panel Data with Fixed Effects, Panel Data with Random Effects, Pooled Ordinary Least Squares-OLS, Weighted Least Square-WLS, . Results show that RHS tends to growth with the E-Component, is negatively associated to the S-Component, and positively associate with the G-Component within the ESG model. Furthermore, a clusterization with the unsupervised k-Means algorithm is presented and the results are discussed with a confrontation between optimal and suboptimal k values optimized with the Silhouette Coefficient. Finally, a confrontation among eight different machine-learning algorithms is performed to predict the future value of RHS. Outcomes show that the Simple Regression Tree is the best predictive algorithm and that the level of RHS is predicted to growth on average of 4.4% for the Italian regions. Results are critically discussed. |
| Keywords: | Analysis of Health Care Markets, Health Behaviours, Health Insurance, Public and Private, Health and Inequality, Health and Economic Development, Government Policy, Regulation, Public Health. |
| JEL: | I10 I11 I12 I13 I14 I15 |
| Date: | 2024–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120351&r=env |
| By: | Yi-Chun Ko; Shinsuke Uchida; Akira Hibiki |
| Abstract: | This study delves into the factors that underly farmer’s adaptation of farm production to extreme weather. Specifically, we examine how farmer’s age mitigates the negative effects of extreme temperatures on crop yields. Our findings reveal a nonlinear relationship between age and the ability to adapt, wherein the adaptation capability generally increases and then decreases with age. Furthermore, we explore how farmer’s age interacts with farm technology, such as irrigation, to influence farmer’s adaptation simultaneously. Interestingly, age effects are less pronounced in irrigated areas, where the likelihood of exposure to climate risk is comparably low. This suggests that human capital plays a critical role in introducing adaptation measures in areas at high risk of exposure to extreme temperatures. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:toh:tupdaa:49&r=env |
| By: | Panle Jia Barwick; Hyuk-Soo Kwon; Shanjun Li |
| Abstract: | Attribute-based subsidies (ABS) are commonly used to promote the diffusion of energy-efficient products, whose manufacturers often wield significant market power. We develop a theoretical framework for the optimal design of ABS to account for endogenous product attributes, environmental externalities, and market power. We then estimate an equilibrium model of China's vehicle market under ABS and conduct counterfactual simulations to evaluate the welfare impacts of various subsidy designs. Compared to the uniform subsidies, ABS lead to higher product quality and are more effective in mitigating quantity distortions, albeit with a modest environmental cost. Between 42% to 62% of welfare gains under ABS relative to uniform subsidies are attributed to more desirable product attributes, with the remainder explained by reductions in market power distortions. Allowing subsidy redistribution through product-level subsidies, as suggested by our theoretical model, further enhances welfare gains by an additional 34% to 62%. Among the ABS designs, China's notched subsidy design based on driving range leads to vehicle downsizing that undermines welfare benefits. Subsidies based on battery capacity, as implemented in the U.S., achieve the highest welfare gains by effectively balancing market power and environmental impacts. |
| JEL: | L13 L52 L62 Q58 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32264&r=env |
| By: | Bum Cheul Park; Andrew Brown; Frithjof Laubinger; Peter Börkey |
| Abstract: | Global trade in plastic waste and scrap declined further (2017-2022) in 2022. The combined trade surplus of OECD Member Countries (i.e. the difference between exports and imports) continued to decrease. Less plastic waste and scrap is being exported by OECD countries to non-OECD countries, however some countries still export substantial volumes to non-OECD countries. Particularly several non-OECD south-east Asian countries remain large export destinations. Trade between OECD countries has increased. The value and composition of plastic waste and scrap exports in 2021 suggests that more high value and easy to recycle plastic waste was traded. Some volume of plastics waste is likely transformed into a “fuel” via mechanical and chemical processing and subsequently shipped as Processed Engineered Fuel (PEF) or Refuse-Derived Fuels (RDF), broadly categorised under HS 3825. There was an increase in this trade mostly between OECD countries in 2021. The trade regime remains dynamic with new export destinations emerging, which deserve further monitoring. |
| Keywords: | circular economy, plastics, trade, waste management |
| JEL: | F18 L65 Q53 Q56 |
| Date: | 2024–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:233-en&r=env |
| By: | Verde, Stefano F.; Di Cosmo, Valeria |
| Abstract: | This paper proposes a dynamic carbon tax (DCT) that stabilises gasoline prices by adjusting inversely to crude oil prices. Compared to a standard fixed-rate carbon tax, the DCT can be expected to cut more CO2 emissions while receiving greater public support. Therefore, it could be a useful instrument for accelerating the ecological transition. The analysis is articulated in three parts. First, we show how, in the context of vehicle choice decisions, any policy that reduces uncertainty about future gasoline prices improves the expected utility of more fuel-efficient vehicles relative to less efficient ones. Second, we show how a DCT could be designed to automatically stabilise gasoline prices and thereby reduce price uncertainty. Third, we conduct an econometric test for whether gasoline price volatility, considered as a proxy for price uncertainty, negatively affects vehicle fuel efficiency. Using microdata from the 2017 National Household Transport Survey, we test for negative correlation between gasoline price volatility and fuel efficiency of new vehicles sold in the US. Evidence of a negative correlation is indeed found despite limited volatility of gasoline prices in the study period. Further tests are warranted using data from different time periods and alternative model specifications. |
| Keywords: | Carbon taxation, Gasoline prices, Vehicle choice, Fuel efficiency, Energy transition |
| JEL: | H2 H23 H3 Q4 Q5 |
| Date: | 2024–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120485&r=env |
| By: | Abir Khribich (Université Côte d'Azur, CNRS, GREDEG, France); Rami H. Kacem (Faculty of Economic Sciences and Management of Nabeul, University of Carthage, Tunisia; LEGI, Tunisia Polytechnic School); Damien Bazin (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | Numerous studies have been proposed in the literature to analyse the determinants of renewable energy consumption and their effects. Nevertheless, despite the various proposed methods and obtained results, nothing is known about which factors are most or least important. This paper proposes to contribute to the literature by comparing their effects and ranking them according to their importance. This additional information may be important when developing policies for energy transition. The proposed procedure is based on the estimation of a panel vector autoregressive (PVAR) model including simultaneously the commonly considered factors affecting renewable energy consumption in the literature, to be able to compare their effects. Next, impulse response functions are drawn, and variances decompositions are made to provide additional information about how renewable energy consumption responds to shocks in each of the considered factors. Empirical validation for 22 high-income countries reveals that financial development is the most important factor that can affect positively renewable energy consumption. Also, it is found that the response of renewable energy consumption to one shock in financial development is the strongest among the studied factors and lasts to the long run. The variance decompositions show that the contributions to the variation in renewable energy consumption are different from one factor to another. |
| Keywords: | Renewable energy consumption, determinant factors, comparative analysis, PVAR model, high-income countries |
| JEL: | Q20 Q28 Q48 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2024-08&r=env |
| By: | Ahmet Duhan Yassa |
| Abstract: | This paper investigates the role of urban sprawl and urban mobility on long-term fuel consumption after the 2011 Van earthquake in Türkiye. Both province-level synthetic control and firm-level difference-in-differences (DID) analyses indicate a statistically significant increase in fuel consumption in Van after the earthquake, even though there was no dramatic change in the main determinants of fuel consumption in the province in this period. Findings from the satellite-supported population density images and sensor-level traffic density data reveal that rising population density in peripheral regions and increasing urban mobility within the province are the potential drivers of the rise in fuel consumption. While the impact of the Van earthquake on fuel consumption, the foreign trade deficit and greenhouse gas emissions was limited given the size of the city, the results highlight the potential impact of other major disasters that have occurred in the recent past and are expected to occur in the future. |
| Keywords: | Urban sprawl, Fuel consumption, Earthquake, Synthetic control, Greenhouse gas emissions, Trade deficit |
| JEL: | Q54 R11 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:2401&r=env |
| By: | Fanny Reniou; Elisa Monnot (Université de Cergy-Pontoise, THEMA) |
| Abstract: | Consumer discipline (i.e., the ability to persist on tasks) is necessary to maintain sustainable consumption patterns and overcome the constraints associated with such self-determined long- term goal pursuits. Little is known, however, about how consumers sustain such patterns over time, despite their importance in people’s lives. Using a qualitative multimethod study of packaging-free product consumption as a Zero Waste sustainable consumption pattern, this research explores the way consumers exercise discipline to accomplish tasks to reach their goal of sustainability in consumption. Beyond a “psychological” ability, discipline implies a “practical” ability, which corresponds to a series of interrelated activities: frame, plan, organize, execute, and measure. By extending the micro-individual focus to a macro-social focus, this research shows the role of external factors (i.e., others, the market, and the situation) in hindering or encouraging discipline. This research provides insights for two consumer research streams: sustainable consumption and consumer control and discipline. First, the research highlights the role of an underinvested individual ability—namely, discipline—in maintaining sustainable consumption patterns. Second, the research proposes a more practical and interactional approach for consumer discipline. |
| Keywords: | consumer discipline, ability, sustainable consumption, packaging-free products, goal pursuit, control |
| JEL: | M31 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2023-19&r=env |
| By: | - |
| Abstract: | El cambio climático se hace cada vez más evidente y está teniendo efectos perjudiciales en todo el mundo. América Latina y el Caribe, donde están aumentando la frecuencia y la intensidad de las sequías, los incendios forestales y las tormentas extremas, no es la excepción. Ello ocurre en un contexto de escaso crecimiento regional, que se refleja en un estancamiento que ya lleva un decenio, pone en riesgo los progresos alcanzados en términos de desarrollo y, sobre todo, limita la capacidad de los países de mejorar el bienestar de sus poblaciones de manera sostenible. En esta encrucijada, la acción por el clima ofrece una oportunidad de potenciar el crecimiento y la innovación, crear empleo y mejorar la integración de los países de la región en la economía mundial. Las inversiones, planes y políticas necesarios para hacer frente a la crisis climática también podrían ser útiles para alcanzar las metas económicas y sociales. En este documento se presentan los efectos económicos generales del cambio climático y se describen los compromisos regionales en materia de mitigación y adaptación. Sobre esa base, se estiman las inversiones necesarias y se examinan las políticas específicas que se están aplicando en la región para propiciarlas. |
| Date: | 2024–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:69031&r=env |
| By: | Goetz von Peter; Sebastian von Dahlen; Sweta C Saxena |
| Abstract: | This paper examines the patterns of macroeconomic recovery following natural disasters. In a panel with global coverage from 1960 to 2011, we make use of insurer-assessed losses to estimate growth responses conditional on risk transfer. We find that major disasters reduce growth by 1 to 2 percentage points on impact, and over time produce an output cost of 2% to 4% of GDP, on top of the initial damage to property and infrastructure. Akin to wars and financial crises, natural disasters have permanent effects, in the sense that output losses are not fully recovered over time. But it is the uninsured losses that drive the macroeconomic cost; insured losses are less consequential in the aggregate, and can even stimulate growth. By helping to finance the recovery, insurance mitigates the macroeconomic cost of disasters. Many countries lack the capacity to (re)insure themselves and would stand to benefit from international risk sharing. |
| Keywords: | natural disasters, growth, recovery, risk transfer, reinsurance, development |
| JEL: | G22 O11 O44 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1175&r=env |
| By: | Ohnishi, Kazuhiro |
| Abstract: | Nonpoint pollution arises from dispersed sources and lacks direct monitoring. Observing individual abatement levels or discharges is generally impractical. This paper addresses the economic incentives for controlling nonpoint pollution, which differs from point source pollution due to difficulties in monitoring individual polluting actions. The paper examines a mixed Bertrand duopoly model where there are two firms: a private firm and a partially privatized public firm that is jointly owned by the public and private sectors. The model of the paper uses ambient charges as a policy measure for reducing industrial nonpoint source pollution. This paper shows that ambient charges are an effective policy measure. |
| Keywords: | Ambient charge; Nonpoint pollution: Partial privatization; Price competition |
| JEL: | D21 L33 Q58 |
| Date: | 2024–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120531&r=env |
| By: | Elisa Monnot; Fanny Reniou; Sarah Lasri (Université de Cergy-Pontoise, THEMA) |
| Abstract: | Purpose – Packaging elimination for selling packaging-free products disrupts the usual distribution and consumption frameworks in which packaging usually plays a central role. This study investigates how retailers and consumers reappropriate packaging and its functions when it disappears. Design/methodology/approach – This research uses a qualitative data collection method with two parts: a netnography of 190 Instagram posts and 54 interviews with experts from packaging-free product stores (N = 10) and consumers (N = 44). Findings – Drawing from the literature on packaging functions and the appropriation theory, this research reveals that actors deploy three appropriation strategies: (1) imitation, a strategy that favors a "utilitarian" function of packaging; (2) adaptation, a strategy that valorizes an "environmental" function of packaging; and (3) creation, a strategy that focuses on an "aesthetic" function of packaging. Finally, this research identifies the dark sides of packaging appropriation in the context of packaging-free products—namely, the damaging effects on health, the environment, and social exclusion. Originality – This research contributes to the literature on packaging on a topic that remains under-investigated (i.e., packaging-free product consumption), though it is a growing trend that questions conventional models of product presentation. The article offers a discussion on (1) the new role of actors in the appropriation of packaging and (2) the ambivalence of the environmental function of packaging-free product consumption. |
| Keywords: | Packaging, Packaging functions, Packaging-free product consumption, Appropriation, Netnography, Sustainability |
| JEL: | M31 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2023-20&r=env |
| By: | Rajae Sabhi (ENCGK - ENCG University Ibn Tofail of Kenitra, Morocco); Noureddine Abdelbaki (ENCGK - ENCG University Ibn Tofail of Kenitra, Morocco); Omar Taouab (ENCGK - ENCG University Ibn Tofail of Kenitra, Morocco) |
| Keywords: | digitization sustainability decision making impact and methodology. JEL Classification: D81 Paper type: Theoretical Research numérisation durabilité prise de décision impact et méthodologie. JEL Classification: D81, digitization, sustainability, decision making, impact, and methodology. JEL Classification: D81 Paper type: Theoretical Research numérisation, durabilité, prise de décision, impact et méthodologie. JEL Classification: D81 |
| Date: | 2024–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04508150&r=env |
| By: | Khan, Haider |
| Abstract: | We define Trans-development as an overcoming of maldevelopment under capitalism towards building a planetary ecological civilization that is equitable, life-affirming and can ensure flourishing of humans along with nature and other species. How can such a planetary ecological counterhegemony be established in the Global South? I answer this question through exploring a fairly comprehensive strategy for development as freedom beyond the ecological and other crises-filled capitalism in the 21st century. Accordingly, I try to find a way to integrate useful markets with the key characteristics of the Enabling Ecological Trans-developmental State(EETDS) for the 21st Century in order to build a growing ecologically sustainable economy with equity in terms of capabilities. This will doubtless require a new global financial and ecological architecture. Relative Degrowth which involves sustainable people’s capabilities enhancing growth in the Global South, and degrowth in the Global North is a necessary condition for such a postcapitalist planetary civilization. Proceeding from a critical capabilities perspective that is fully grounded in social reality of deepening structural and ecological crises of the Global Capitalist System, we discover that such a perspective leads to the need to include among the characteristics of the EETDS for the 21st Century its capacity to build an ecologically sustainable egalitarian Trans- development strategy from the beginning. In addition, democracy must be deepened from the beginning. For the Global South including Eurasia, and particularly for Africa and Latin America, a new cooperative community of nations following their own rhythm to reach their own dynamic trajectories towards development as freedom will be possible if they cooperate regionally and globally on the basis of equal sovereignty and mutual respect. One precondition is to pragmatically unite for a common economic strategy. For this a decolonization of the mind in the global south is also necessary. The Gramscian idea of counterhegemony can be a fruitful way to carry out a thoroughgoing decolonization that dialectically addresses both material and ideational/ideological aspects of such decolonization. Strengthening the global south counterhegemonic movement built around a strategic program of trans-development is crucial for achieving real decolonization and creating a planetary ecological civilization. |
| Keywords: | Trans-development, Counterhegemony, Decolonization, Global South, Dialectics, Enabling Ecological Trans-developmental State(EETDS), Stoffwechsel, Ecological Imperialism, Relative Degrowth, New Non-aligned Movement(NNAM), New International Economic Order, Democratic Internationalism, Egalitarianism, Ecological Crisis, Global Capitalist System(GCS), Counterhegemonic movements, Ecosocialism, Nonlinearities, Multiple equilibria, Entropy and Information Theory |
| JEL: | F6 O1 P0 |
| Date: | 2024–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120325&r=env |
| By: | Gough, Ian; Horn, Stefan; Rogers, Charlotte; Tunstall, Rebecca |
| Abstract: | This paper addresses a neglected aspect of the UK housing crisis: how to rapidly but fairly decarbonise the housing stock to meet tough net zero targets while meeting housing needs of the entire population. To do so the authors adopt a radical approach based on sufficiency. The sufficiency approach is based on determining both a housing floor – a decent minimum standard for all – and a housing ceiling - above which lies unsustainable excess. The authors define these thresholds in terms of bedrooms and floorspace and analyse the distribution of housing in England. They find that excess housing is widespread, concentrated in home ownership, particularly outright ownership, and characterised by above average emissions per square metre. They conclude that current policies based solely on energy efficiency and increasing housing supply cannot achieve agreed decarbonisation goals while securing decent accommodation for those who are housing deprived. To do this will require new policies that distinguish between sufficient and excess housing and more effective use of the housing stock to meet housing needs within planetary boundaries. |
| Keywords: | sufficiency; fair decarbonisation; minima-floors; maximaceilings; excess housing; housing distribution; sufficiency policy |
| JEL: | R21 |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122477&r=env |
| By: | Maxime Menuet (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | This paper focus on civil conflicts arising from natural resource appropriation in a growth model with rent-seeking behavior and how fiscal policy can mitigate them. Such conflicts, if destructive, make the development trajectory indeterminate. There are two self-fulfilling equilibria, including a poverty-conflict trap associated with large civil conflicts. The resource curse may emerge because of pessimistic household expectations. However, fiscal policy can help overcome the tradeoff between conflict and economic development and partially solve the conflict-based resource curse. In this regard, there is an appropriate sharing of the government budget between military spending and human capital investment that minimizes conflict incentives. |
| Keywords: | natural resource, civil conflict, economic growth, rent-seeking |
| JEL: | O41 Q20 E62 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2024-05&r=env |
| By: | Muhammad Faisal Ali (Pakistan Institute of Development Economics, Islamabad) |
| Abstract: | It is an undeniable reality that our reliance on technology for elections lags even in the 21st century, largely due to the 37.7 percent illiteracy in Pakistan[1]. Given the prevalence of high illiteracy rates in the country, symbols serve as a straightforward means to facilitate voting. Consequently, while ballot papers include candidate names, they also feature corresponding symbols. This allows voters to easily identify their preferred choice by placing a stamp on the corresponding symbol, underscoring the heightened significance of visual cues for recognition. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pid:rrepot:2024:6&r=env |
| By: | Jihye Lee; Elena Tosetto |
| Abstract: | Existing well-being measurement initiatives in the region, such as the Quality of Life Indicators in Korea, Bhutan’s Gross National Happiness Index and Quality of Life Index in the Philippines, shed some insight on dimensions that should be considered for measuring well-being beyond GDP in Asia. Dimensions of housing, health, education, environment and civic engagement recur across several Asian well-being measurement frameworks, as well as dimensions such as family and culture which are more characteristic of the region. Identifying vulnerable population groups and securing better evidence on social mobility are also necessary to better measure progress in the region. Going forward, it would be helpful for countries to exchange knowledge on how well-being data available can be used for policy making in a more concrete way, for example, by including it in national development plans or budgeting processes. |
| Keywords: | happiness, quality of life, sustainable development, well-being |
| JEL: | I30 I31 I38 |
| Date: | 2024–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:wiseaa:22-en&r=env |
| By: | Drupp, M. A.; Hänsel, M. C.; Fenichel, E. P.; Freeman, M.; Gollier, C.; Groom, Ben; Heal, G. M.; Howard, P. H.; Millner, A.; Moore, F. C.; Nesje, F.; Quaas, M. F.; Smulders, S.; Sterner, T.; Traeger, C.; Venmans, Frank |
| Abstract: | Governments are catching up with economic theory and practice by increasingly integrating ecosystem service values into national planning processes, including benefitcost analyses of public policies. Such analyses require information not only about today’s benefits from ecosystem services but also on how benefits change over time. We address a key limitation of existing policy guidance, which assumes that benefits from ecosystem services remain unchanged. We provide a practical rule that is grounded in economic theory and evidence-based as a guideline for how benefits change over time: They rise as societies get richer and even more so when ecosystem services are declining. Our proposal will correct a substantial downward bias in currently used estimates of future ecosystem service values. This will help governments to reflect the importance of ecosystems more accurately in benefit-cost analyses and policy decisions they inform. |
| Keywords: | AAM requested |
| JEL: | J1 |
| Date: | 2024–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122469&r=env |