|
on Environmental Economics |
|
Issue of 2024‒05‒20
fifty-five papers chosen by Francisco S. Ramos, Universidade Federal de Pernambuco |
| By: | Teresa Lackner; Luca E. Fierro; Patrick Mellacher |
| 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. |
| Keywords: | Climate change, mitigation policy, opinion dynamics, agent-based models, transition risks |
| Date: | 2024–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/11&r=env |
| By: | Ashutosh Yadav (Patna, Bihar, India); Bright Akwasi Gyamfi (Udaipur, Rajasthan, India); Simplice A. Asongu (Johannesburg, South Africa); Deepak Kumar Behera (Patna, Bihar, India) |
| Abstract: | In the context of sustainable development, this study investigates the intricate dynamics among good governance, renewable energy investment, and green finance in BRICS nations. The aim of the study is to assess how green finance and governance effectiveness moderate the impact of renewable energy investment on CO2 emissions. Utilizing the Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) model, a meticulous analysis spanning two decades was conducted to unravel the relationships among key variables and CO2 emissions. The findings underscore a nuanced interplay where renewable energy investments, synergized with robust governance and strategic green finance, significantly mitigate CO2 emissions, contributing to sustainable economic development. However, the study reveals non-linear relationships, highlighting the necessity for optimal allocation and strategic planning to maximize environmental benefits. In the short-run, a government effectiveness policy threshold that should be attained in order for renewable energy investment to reduce CO2 emissions is provided. In the long-run, the negative responsiveness of CO2 emissions to renewable energy investment is further consolidated by green finance. Moreover, enhancing renewable energy investment in the long run is positive for environmental sustainability. It follows that policy makers should tailor policies aimed at enhancing renewable energy investment in the long-run as well as complementing renewable energy investment with green finance in the long-run in order to ensure environmental sustainability by means of reducing CO2 emissions. Policymakers in BRICS nations are urged to strengthen governance structures, promote renewable energy investments, leverage green finance, foster public-private partnerships, adopt a holistic approach, and address non-linear effects to accelerate the transition to a low-carbon economy. |
| Keywords: | Sustainable Development, Governance, Renewable Energy Investment, BRICS and CS-ARDL |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/015&r=env |
| By: | Elvis K. Ofori (Zhengzhou University, Henan, China); Simplice A. Asongu (Johannesburg, South Africa); Ernest B. Ali (Ural Federal University, Russia); Bright A. Gyamfi (Istanbul, Turkey.); Isaac Ahakwa (Hefei, China) |
| Abstract: | Since the industrial era, the selection of energy sources to facilitate economic advancement has been criticized because of the resulting ecological calamity. This has prompted the introduction of radical approaches such as ISO 14001, which tackles the drivers of pollution. Therefore, this study analyses the ISO 14001 - environment nexus from three distinct points of view BRICS, MINT, and G7 countries from 1999-2020. Also, our work fills an extant gap in assessing structural change and innovation's role in augmenting the relationship. The Driscoll and Kraay (DK) estimator is employed as an analytical tool for cross-sectional dependence and slope homogeneity, while the fixed effects approach provides sufficient robustness checks on the findings. While some outcomes vary per bloc, others are relatively similar across the three (3) blocs. That is: (1) ISO 14001 shows an abatement portfolio for only the G7 bloc, and the Full sample. (2) Structural change showed potential for abating carbon emissions in all blocs. (3) Technology led to an increase in Pollution in all blocs except for the MINT economy. (4) ICT in the form of mobile phones also help reduce carbon emissions in all three blocs except for their composite. (5) Renewable energy helps reduce carbon emission in all blocs except for G7. ISO 14001 shows the potential to encourage green growth. As a result, policymakers should work to enhance ISO 14001 certification, which might serve as a management tool to promote sustainable development. |
| Keywords: | ISO 14001, Sustainable development, Structural change, Technology, BRICSMINT, G7 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/014&r=env |
| By: | Lee, Wang-Sheng (Monash University); Tran, Trang My (Monash University) |
| Abstract: | Environmental research related to military activities and warfare is sparse and fragmented by discipline. Although achieving military objectives will likely continue to trump any concerns related to the environment during active conflict, military training during peacetime has environmental consequences. This research aims to quantify how much pollution is emitted during regular military exercises which has implications for climate change. Focusing on major military training exercises conducted in Australia, we assess the impact of four international exercises held within a dedicated military training area on pollution levels. Leveraging high-frequency data, we employ a machine learning algorithm in conjunction with program evaluation techniques to estimate the effects of military training activities. Our main approach involves generating counterfactual predictions and utilizing a "prediction-error" framework to estimate treatment effects by comparing a treatment area to a control area. Our findings reveal that these exercises led to a notable increase in air pollution levels, potentially reaching up to 25% relative to mean levels during peak training hours. |
| Keywords: | machine learning, military emissions, military training, pollution |
| JEL: | C55 Q53 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16889&r=env |
| By: | Gao, Zhenyu (Chinese University of Hong Kong); Luo, Yan (Fudan University); Tian, Shu (Asian Development Bank); Yang, Hao (Fudan University) |
| Abstract: | Based on Alibaba’s renowned “green” initiative, the Ant Forest program, we develop a novel measure to reveal an individual investor’s nonpecuniary green preference and link it to an individual’s investment actions. We present compelling evidence that supports nonfinancial incentives for investing in green mutual funds while divesting from “brown” funds. Concerns over climate physical and regulatory risks further reinforce this influence. Individuals’ green preferences do not lead to financial gains from trading. Moreover, we mitigate the endogeneity issue by employing the development of a local subway network as a source of variations in green preferences. |
| Keywords: | nonpecuniary preference; revealed preference; sustainable finance; FinTech |
| JEL: | G11 G50 Q55 |
| Date: | 2024–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0722&r=env |
| By: | Irene Monasterolo (Utrecht University and SUERF.); Antonia Pacelli (Toulouse School of Economics and INRAE); Marco Pagano (University of Naples Federico II, CSEF, EIEF, and CEPR.); Carmine Russo (University of Naples Federico II) |
| Abstract: | The European Union faces a large climate investment gap. To fill it, we propose the joint issuance of EU climate bonds. These bonds would be funded by the sale of emission allowances, traded on the EU Emissions Trading System and extended to cover all sectors. Access to the resulting funds would be conditional on countries’ performance on the implementation of climate investments. EU climate bonds would meet global demand for a safe and liquid asset, while increasing the speed and efficiency of EU climate investing, its resilience to sovereign crises, and the greening of investors’ portfolios and monetary policy. |
| Keywords: | climate finance, green investment, EU safe asset, emission allowances, ETS. |
| JEL: | D62 E61 H23 H27 P18 Q51 Q52 Q53 Q54 Q58 |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:702&r=env |
| By: | Victor Cardenas |
| Abstract: | The document provides an overview of financial climate risks. It delves into how climate change impacts the global financial system, distinguishing between physical risks (such as extreme weather events) and transition risks (stemming from policy changes and economic transitions towards low carbon technologies). The paper underlines the complexity of accurately defining financial climate risk, citing the integration of climate science with financial risk analysis as a significant challenge. The paper highlights the pivotal role of microfinance institutions (MFIs) in addressing financial climate risk, especially for populations vulnerable to climate change. The document emphasizes the importance of updating risk management practices within MFIs to explicitly include climate risk assessments and suggests leveraging technology to improve these practices. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.07331&r=env |
| By: | Fujii, Hidemichi; Webb, Jeremy; Mundree, Sagadevan; Rowlings, David; Grace, Peter; Wilson, Clevo; Managi, Shunsuke |
| Abstract: | Voluntary carbon offset markets play an important role in climate change mitigation by deploying technologies in order of lowest abatement cost. The objective of this study is to identify the key drivers of changes in the volume of carbon credits issued in voluntary registry offset markets from 2006 to 2020 using a decomposition analysis framework. The results show that the volume of issued carbon credits related to forestry and land use increased from 2006 to 2015 due to priority increases and scale expansions in REDD+ projects. In addition, the reasons for the priority changes in carbon credits issued varied according to the scale of carbon offset programs in each region. The comparison of scale effect and carbon offset program priority is a useful tool for understanding changes in carbon credits issued according to project technology and region. The very rapid increase in forestry carbon credits issued does however pose important policy implications given it has been accompanied by widespread indications of poor governance and questionable outcomes in terms of CO2 reduction. In light of the IPCC’s reliance on carbon credits the need for thoroughgoing policy reform is underlined. |
| Keywords: | voluntary registry offset market; carbon credit; decomposition analysis |
| JEL: | Q54 Q57 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120657&r=env |
| By: | Maria Cotofan; Karlygash Kuralbayeva; Konstantinos Matakos |
| Abstract: | This study examines how regional temperature variations across OECD countries influence political behavior and support for offset policies. Our analysis reveals that exposure to higher temperatures correlates with political moderation, reduced backing for extreme and populist parties, heightened climate concerns, and increased support for environmentally conscious agendas. These effects are primarily driven by older individuals, who exhibit increased concerns about climate change and the economic costs of climate policies following temperature spikes. Moreover, they express support for policies aimed at mitigating these economic impacts. Conversely, younger individuals show less apprehension about the economic consequences of climate policies and demonstrate readiness to bear them, including through higher energy bills. These findings emphasize the necessity of accounting for age-related perspectives when formulating effective climate policies for the future. |
| Keywords: | preference formation, environmental policies, policy support, voting |
| Date: | 2024–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1991&r=env |
| By: | Felix Kubler (University of Zurich) |
| Abstract: | This paper examines constrained optimal carbon pricing in a general equilibrium model with incomplete asset markets. A carbon policy consists of state-dependent carbon taxes and a sharing rule for tax revenue recycling. The social cost of carbon (SCC) is defined as the present value of the future marginal costs of additional CO2 emissions, discounted at (personalized) prices. For the case of complete markets, we state simple, sufficient conditions that ensure that setting carbon taxes equal to the SCC results in a Pareto-efficient competitive equilibrium. When markets are incomplete, constrained Pareto-efficient carbon taxes generically differ from the SCC. To examine the potential quantitative importance of these differences, we consider an Aiyagari [1994]-style model with a climate change externality. We prove that (i) the SCC cannot be estimated from aggregate damage functions and market prices alone, and (ii) the deviations of constrained optimal carbon taxes from the SCC can be arbitrarily large. |
| Keywords: | climate change, financial frictions, heterogeneous agents, carbon taxes, environmental policy, integrated assessment models |
| JEL: | C61 D52 D62 Q51 Q54 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2427&r=env |
| By: | Thea Kolasa (University of Zurich - Department Finance; Swiss Finance Institute); Zacharias Sautner (University of Zurich - Department of Finance; Swiss Finance Institute; European Corporate Governance Institute (ECGI)) |
| Abstract: | This article examines the role of institutional investors in the fight against climate change. We explain the institutional context, provide evidence highlighting institutional investors’ bright and dark sides in this fight, and develop multiple ideas for future research. We show that climate change has a significant impact on institutional investors. Simultaneously, we demonstrate that institutional investors can have a significant positive impact on fighting climate change, particularly if they actively engage with portfolio firms to reduce carbon emissions. For risk management reasons, this is in their own interest, and it is also in the interests of society. We highlight possible future research avenues on the link between institutional investors and climate change, emphasizing issues related to environmental, social, and governance (ESG) rating agencies, greenwashing, and the risk of a loss of trust in ESG products. Climate change constitutes one of the grand challenges of our time, and substantially more research on the role of finance is required. |
| Keywords: | institutional investors, climate change, climate risks, ESG ratings, greenwashing |
| JEL: | F34 G12 G32 M14 Q54 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2426&r=env |
| By: | Vesa Pursiainen (University of St. Gallen; Swiss Finance Institute); Meichen Qian (University of Chicago Booth School of Business); Dragon Yongjun Tang (The University of Hong Kong - Faculty of Business and Economics) |
| Abstract: | We study the role of environmental commitments by technology entrepreneurs in their reward-based crowdfunding campaigns. Technology projects with public environmental commitments are significantly less likely to receive funding, but this varies depending on local climate opinions and political views. Backers in areas less concerned about climate change and more Republican areas are significantly less likely to fund campaigns with environmental commitments. The negative relationship between campaign outcomes and environmental commitments is stronger in cases where such commitments might be assumed more costly, suggesting that at least some backers interpret there to be a trade-off between sustainability and other product features. |
| Keywords: | Sustainability, entrepreneurship, crowdfunding, environmental attitudes |
| JEL: | G11 M13 Q55 Q56 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2425&r=env |
| By: | OECD; Alvaro Leandro |
| Abstract: | Australia has committed to achieving net zero greenhouse gas emissions by 2050 and more recently outlined a more ambitious intermediate target for emission reductions by 2030. However, achieving these targets will be challenging given a historical reliance on coal generation and the presence of significant mining and agriculture sectors. It will require a rapid transformation of the electricity grid, significant emissions reductions in highly-polluting sectors such as industry and agriculture, and sufficient offsets generated by “negative emissions” technologies and practices to counterbalance any emissions that cannot be fully eliminated. At the same time, Australia is particularly vulnerable to the physical impacts of climate change, as the driest inhabited continent on the planet with the majority of the population living on the coasts. Further significant reforms are required to meet the emission reduction goals, support the reallocation of workers and adapt to climate change. |
| Keywords: | agriculture, Australia, climate change mitigation, energy, transport |
| JEL: | H23 Q15 Q18 Q42 Q48 Q58 R48 |
| Date: | 2024–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1794-en&r=env |
| By: | Kumara T M, Kiran; Birthal, Pratap Singh; Meena, Dinesh Chand; Kumar, Anjani |
| Abstract: | Agriculture is multi-functional, producing economic goods including food, feed, fibre, and fuel, as well as providing several intangible or non-tradable services to society free of cost. Non-tradable services, unlike economic goods, remain unpriced; as a result, farmers are not compensated monetarily for the benefits of the several non-tradable services they provide through agriculture. Recognizing the monetary value of non-tradable ecosystem services is crucial to incentivize farmers to adopt eco-friendly technologies and practices for the sustainable development of agriculture. Through a meta-analysis of the existing evidence on ecosystem services, this study attempts to estimate the value of ecosystem services by using direct and indirect valuation methods—for example, carbon sequestration, methane emission, nutrient availability, biological nitrogen fixation, and water saving—generated by several important technological and agronomic interventions, namely the direct seeding of rice (DSR), zero-tillage in wheat, leguminous crops, organic manure, integrated nutrient management, and agroforestry, based on studies conducted in India. It also explores the trade-offs between the non-tradable and tradable ecosystem services attributable to these interventions. The monetary value of the non-tradable services resulting from most of these interventions is quite large, 34–77% of the total value of all the ecosystem services. However, not all interventions result in a win-win situation that yields improvements in both tradable and non-tradable outcomes. While no-till wheat, legumes, and integrated nutrient management result in a win-win outcome, there are trade-offs between the tradable and non tradable ecosystem services in the cases of directed seed rice, organic manure, and agroforestry. This evidence suggests that not all agricultural technologies and practices are beneficial for farmers, despite their higher environmental benefits. Thus, the findings of this study imply that agricultural policy should provide incentives for the adoption of technologies and practices to conserve ecosystems and natural resources. |
| Keywords: | ecosystem services; agriculture; economic value; farmers; sustainability; incentives; technology adoption; Southern Asia; India |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2250&r=env |
| By: | Zhang, Bing (Nanjing University); Liu, Mengdi (University of International Business and Economics) |
| Abstract: | To cope with the stricter environmental regulation, manufacturing firms need to carry out pollution reduction activities and change their optimal production decisions, which may affect their labor demand. Using a ten-year firm-level panel dataset (1998-2007), we use an estimation technique pairing propensity score matching (PSM) with a difference-in-differences (DID) estimator to examine the impacts of a national air pollution control policy on employment in China. We find that China’s Key Cities for Air Pollution Control (KCAPC) policy effectively lowered sulfur dioxide (SO2) emissions by approximately 26%. The new environmental regulation significantly reduced manufacturing labor demand by approximately 3%. Most importantly, firms reduce pollution emission mainly by upgrading production technology so the decline in labor is partly due to the increase in labor productivity brought about by technological progress. As a result of pollution reduction, low-skilled employees, female employees, and workers in domestic manufacturing firms are more affected by environmental regulation in China. |
| Keywords: | Labor demand; Environmental regulation; Air pollution control; Manufacturing firm; China |
| JEL: | Q56 |
| Date: | 2024–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2024_004&r=env |
| By: | Adel Ben Youssef (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur); Mounir Dahmani (Université de Gafsa) |
| Abstract: | This study examines the complex relation among environmental taxes, productive capacities, urbanization, and their collective effects on environmental quality in Africa, drawing on two decades of data from twenty African countries. It situates the study within the broader discourse on sustainable development and economic growth, emphasizing the Environmental Kuznets Curve (EKC) framework to examine the relationship between economic development, characterized by urban expansion and increased productive capacities, and the adoption of environmental taxes amidst the continent's diverse economic and environmental environments. Using advanced econometric techniques, including the Cross-Section Augmented Autoregressive Distributed Lag (CS-ARDL) model and the Dynamic Common Correlated Effects Mean Group (DCCEMG) estimator, the study addresses data challenges such as cross-sectional dependence and slope heterogeneity. The results provide important insights into the dynamics of environmental quality in relation to economic and urban growth and the role of environmental taxation. The study proposes tailored policy strategies aimed at strengthening sustainable development initiatives in line with international agreements such as the Paris Agreement and the Sustainable Development Goals. These strategies advocate for a nuanced application of environmental taxes and the promotion of productive capacities to enhance environmental sustainability across the African continent. |
| Keywords: | environmental taxes, productive capacities, urbanization, environmental quality, CS-ARDL, DCCEMG, AMG |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04527172&r=env |
| By: | International Monetary Fund |
| Abstract: | Côte d’Ivoire is highly exposed to climate change through rising temperatures and sea levels as well as rain pattern changes. Economic vulnerabilities to climate change are mostly due to the country’s heavy reliance on agriculture, and the concentration of industrial and services activity in coastal areas. Agriculture employs about half of the workforce and contributes about 17 percent of GDP and 10 percent of tax revenues. At the same time, greenhouse gas emission and pollution in urban areas are growing, albeit from a low level. |
| Date: | 2024–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2024/092&r=env |
| By: | Javier Andrés; José Emilio Boscá; Rafael Doménech; Javier Ferri |
| Abstract: | We evaluate the welfare and macroeconomic implications of three distinct strategies aimed at reducing carbon emissions, which could be categorized within the diverse landscape of ideas encompassed by the degrowth literature. These strategies include penalizing fossil fuel demand, substituting aggregate consumption with leisure, and curbing consumption by limiting total factor productivity growth. Using an environmental dynamic general equilibrium model (eDGE) that incorporates both green renewable technologies and fossil fuels in the production process, our study sets an emissions reduction target aligned with the goals of the Paris Agreement by 2050. The results reveal that the strategies analyzed, which most closely align with the strictest interpretations of degrowth—namely, a reduction in the consumption of goods and services compensated by an increase in leisure, or strong impediments against conventional economic growth—may entail significant economic consequences, leading to a notable decline in welfare. In particular, a degrowth scenario aimed at curbing consumption through a decline in Total Factor Productivity (TFP) yields the most pronounced reduction in welfare. Conversely, inducing a reduction in fossil fuel demand by increasing the price of fossil fuels through taxes, despite potential social backlash, shows noticeably less detrimental effects on welfare compared to other degrowth policies. Furthermore, under this degrowth strategy, our findings suggest that a globally coordinated strategy could result in long-term welfare gain. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2024-04&r=env |
| By: | Gustavo Heringer (UFLA - Universidade Federal de Lavras = Federal University of Lavras); Romina D Fernandez (UNT - Universidad Nacional de Tucumán); Alok Bang (Azim Premji University); Marion Cordonnier (University of Regensburg); Ana Novoa (IB / CAS - Institute of Botany of the Czech Academy of Sciences - CAS - Czech Academy of Sciences [Prague]); Bernd Lenzner (University of Vienna [Vienna]); César Capinha (ULISBOA - Universidade de Lisboa = University of Lisbon); D Renault (ECOBIO - Ecosystèmes, biodiversité, évolution [Rennes] - UR - Université de Rennes - INEE-CNRS - Institut Ecologie et Environnement - CNRS Ecologie et Environnement - CNRS - Centre National de la Recherche Scientifique - OSUR - Observatoire des Sciences de l'Univers de Rennes - UR - Université de Rennes - INSU - CNRS - Institut national des sciences de l'Univers - UR2 - Université de Rennes 2 - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - CNRS - Centre National de la Recherche Scientifique, IUF - Institut Universitaire de France - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche); David A Roiz (MIVEGEC - Maladies infectieuses et vecteurs : écologie, génétique, évolution et contrôle - CNRS - Centre National de la Recherche Scientifique - IRD [France-Sud] - Institut de Recherche pour le Développement - UM - Université de Montpellier); Desika Moodley (IB / CAS - Institute of Botany of the Czech Academy of Sciences - CAS - Czech Academy of Sciences [Prague]); Elena Tricarico (UniFI - Università degli Studi di Firenze = University of Florence); Kathrin Holenstein (CEFE - Centre d’Ecologie Fonctionnelle et Evolutive - UPVM - Université Paul-Valéry - Montpellier 3 - EPHE - École Pratique des Hautes Études - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique - 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); Melina Kourantidou (SDU - University of Southern Denmark, AMURE - Aménagement des Usages des Ressources et des Espaces marins et littoraux - Centre de droit et d'économie de la mer - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UBO - Université de Brest - IUEM - Institut Universitaire Européen de la Mer - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - UBO - Université de Brest - CNRS - Centre National de la Recherche Scientifique - CNRS - Centre National de la Recherche Scientifique); Natalia Kirichenko (SibFU - Siberian Federal University); José Ricardo Pires Adelino (State University of Londrina = Universidade Estadual de Londrina); Romina D Dimarco (University of Houston); Thomas W. Bodey (University of Aberdeen); Yuya Watari (FFPRI - Forestry and Forest Products Research Institute); Franck Courchamp (ESE - Ecologie Systématique et Evolution - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Urbanization is an important driver of global change associated with a set of environmental modifications that affect the introduction and distribution of invasive non-native species (species with populations transported by humans beyond their natural biogeographic range that established and are spreading in their introduced range; hereafter, invasive species). These species are recognized as a cause of large ecological and economic losses. Nevertheless, the economic impacts of these species in urban areas are still poorly understood. Here we present a synthesis of the reported economic costs of invasive species in urban areas using the global InvaCost database, and demonstrate that costs are likely underestimated. Sixty-one invasive species have been reported to cause a cumulative cost of USD 326.7 billion in urban areas between 1965 and 2021 globally (average annual cost of US$ 5.7 billion). Class Insecta was responsible for >99 % of reported costs (USD 324.4 billion), followed by Aves (USD 1.4 billion), and Magnoliopsida (US$ 494 million). The reported costs were highly uneven with the sum of the five costliest species representing 80 %. Most reported costs were a result of damage (77.3 %), principally impacting public and social welfare (77.9 %) and authorities-stakeholders (20.7 %), and were almost entirely recorded in terrestrial environments (99.9 %). We found costs reported to 24 countries, yet there were 73 countries with records of species that cause urban costs elsewhere but with no urban costs reported themselves. Although covering a relatively small area of the earth surface, urban areas represent about 15 % of the total reported costs attributed to invasive species. These results highlight the conservative nature of the estimates and impacts, revealing important biases present in the evaluation and publication of reported data on costs. Thus, we emphasize the urgent need for more focused assessments of invasive species economic impacts in urban areas. |
| Keywords: | Anthropogenic activity, Biological invasion, Economic impact, InvaCost, Urban ecosystem, Urbanization |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04429893&r=env |
| By: | Helgeson, Broghan (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | The paper at hand offers a quantitative assessment of the transformation of the European energy system in achieving the goal of the European Commission of carbon neutrality in Europe by 2050. In doing so, the investment and dispatch optimization model DIMENSION is extended to comprise a greater number of sectors and technologies as well as endogeneous links between energy supply and demand for 28 countries in Europe up to 2050. The model is applied to examine the costminimal decarbonization pathway for two cenarios with varying spatial boundaries of the optimization, namely the Green Island Europe and Green Importer Europe scenarios: Whereas the consumption of green hydrogen and/or synthetic fuels in the Green Island Europe scenario requires an investment in the necessary power-to-x production and electricity generating capacities within Europe, the Green Importer Europe scenario allows for such zero-carbon and carbon-neutral fuels to be available for purchase from outside of Europe. Results of the cost minimization in both scenarios show that the model chooses to most rapidly decarbonize the electricity sector, with capacities of wind and solar electricity generation in Europe tripling between 2019 and 2030. Simultaneously, a 500 TWhel increase in electricity demand is observed as 77% of heat generation in Europe is supplied by electricity-consuming heating technologies in 2030. By 2050, flexibility options such as electricity storage, demand-side management and electric vehicles expand their market presence, while the more hard-to-abate sectors such as transport and industry experience a rapid shift from fossil fuels to biofuels as well as to green hydrogen. As a result, the cross-sectional European CO2 shadow price rises to 225 €/CO2 in 2040 and to 559 €/tCO2 in 2050. In the Green Island Europe scenario, carbon neutrality in an energy-independent Europe leads to an overall increase in electricity consumption in Europe of over 4000 TWhel between 2019 and 2050. Yet the long-term results of the two scenarios diverge as the emergence of a demand for green hydrogen leads to a diversification of Europe’s hydrogen supply, with approximately 300 TWhth of green hydrogen (19% of total consumption) imported from outside of Europe in 2050. In turn, the 250 TWhth decrease in domestic green hydrogen production leads to a ramping down of electrolysis systems in the Green Importer Europe scenario, creating an opportunity for other flexibility options. Finally, the difference in average consumer and producer surplus as well average total welfare between the scenarios is examined for players in the European electricity and green hydrogen markets. |
| Keywords: | Energy system modeling; Flexibility options; Electricity sector; Power-to-X; Green hydrogen; Synthetic fuels; Green fuels; Sector coupling; Decarbonization; Carbon neutrality; Energy independence; Security of supply; Welfare analysis |
| JEL: | C61 C68 D61 N70 Q41 Q42 Q48 |
| Date: | 2024–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2024_002&r=env |
| By: | David Adler |
| Abstract: | In this working paper, the Congressional Budget Office provides an overview of CBO-ReEDS, an adapted version of the National Renewable Energy Laboratory’s Regional Energy Deployment System (NREL’s ReEDS) model for analyzing policies in the electric power sector. The paper discusses the strengths and limitations of the model and how CBO modifies it to align with the agency’s assessment of electricity demand, fuel prices, and technology costs. Finally, the paper provides projections of the effects of the 2022 reconciliation act (Public Law 117-169) on emissions of carbon |
| JEL: | Q47 Q48 Q54 Q58 |
| Date: | 2024–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:wpaper:59880&r=env |
| By: | Moros, Lina (Universidad de los Andes, School of Management, Bogotá, Colombia.); Vélez, María Alejandro (Los Andes University); Pfaff, Alexander (Duke University); Quintero, Daniela (Los Andes University) |
| Abstract: | Payment for ecosystem services (PES) programs are proliferating globally but not always with significant impact. Unlike protected areas (PAs), PES compensate suppliers of ecoservices, increasing local acceptance. Yet, some worry that PES could reduce conservation in the long run, if the introduction of financial incentives “crowds out” or diminishes prior conservation behavior. We implemented a decision experiment with farmers in rural Colombia to study the effects of temporary PES. We find no crowding out if a PES is introduced then ended. Contributions after PES fall back to pre-PES levels, at worst, and if anything, they are higher. Comparisons to controls without PES strengthen these findings, which can inform policy design. |
| Keywords: | lab-in-the field experiment; pro-environmental behavior; payment for ecosystem services; incentives; Colombia |
| JEL: | Q01 Q52 Q57 Q58 |
| Date: | 2022–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2022_007&r=env |
| By: | Bergquist, Ann-Kristin (Department of Economic History, Uppsala University); David, Thomas (University of Lausanne) |
| Abstract: | This paper engages with the literature that has looked at the historical response to climate change among industries positioned to have had a far-reaching impact on changing the course of the climate crisis. While much of the historical research in this domain has focused on the role of big oil companies, the utility industry and conservative think tanks in the manufacturing of doubt regarding climate science and opposing ambitions climate policies, our focus is on the International Chamber of Commerce (ICC) – the world’s largest transnational business association. Unlike individual multinational corporations, the ICC developed a close ties and collaborations with the United Nations Environment Programme (UNEP), which made ICC positioned to influence international policy discussions. This study finds that the ICC developed a dual strategy, which set aside climate change as the focus for discussion and business action. One strategy, led by ICC Environment Committee, involved intense collaboration with the United Nations and developing a business agenda for sustainable development. At the same time, the creation of the International Panel of Climate Change (IPCC) in 1988 and the Intergovernmental Negotiating Committee for a Framework Convention on Climate Change (INC) in 1991, gave rise to a parallel strategy, led by ICC’s related oil companies. As this study finds, the ICC’s Energy Committee developed close ties to the Global Climate Coalition, a front group designed to combat the scientific evidence of climate change. The paper concludes that the ICC was able to delay meaningful regulatory response to climate change the between 1988-1992 by forming a broad coalition of competing interests and collaborating with agencies established under the auspices of the United Nations. |
| Keywords: | International Chamber of Commerce; United Nations; Climate Governance; Sustainability; Climate Delay |
| JEL: | N40 N50 N80 P18 |
| Date: | 2024–02–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uuehwp:2024_015&r=env |
| By: | Magacho, Guilherme; Godin, Antoine; Spinola, Danilo; Yilmaz, Devrin |
| 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 lowcarbon transition models. In an effort to establish an appropriate framework for such analyses, this article formulates a Structural StockFlow 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 productionstructure. 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 lowcarbon transition models. In an effort to establish an appropriate framework for such analyses, this article formulates a Structural StockFlow 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 productionstructure. |
| Keywords: | Low-carbon transition; Stock-Flow Consistent Model; Developing and emerging countries; Structural Change; Industrialisation |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:akf:cafewp:15459&r=env |
| By: | Weaich, Malcolm (University of Witwatersrand) |
| Abstract: | This study conducts a bibliometric and thematic analysis on the convergence of young people, digitalisation, and sustainability in the Global South, analysing 349 Scopus-indexed documents. It investigates thematic evolutions, identifies key contributors and collaboration networks, and highlights emergent trends across social, environmental, and computer sciences. The research employs a mixed-methods approach to dissect the interplay between digital technologies and sustainable development, revealing significant global academic collaboration. It outlines three critical future research areas: the impact of digital technologies on young people's relational well-being (RWB), barriers and facilitators to incorporating relational well-being (RWB) in sustainability practices, and the creation of relational well-being (RWB)-centric digital engagement frameworks for sustainability. The paper proposes a concise roadmap for future investigations, by producing thirty possible future studies to address the literary gap in epistemology, emphasising the need for innovative approaches that merge digitalisation with sustainability to enhance relational well-being (RWB) approach among youth in the Global South. This condensed analysis and its recommendations contribute to the discourse on leveraging digital technologies for sustainable development, offering insights for scholars, policymakers, and practitioners. |
| Date: | 2024–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:b6fmr&r=env |
| By: | OECD; Orsetta Causa; Maxime Nguyen; Emilia Soldani |
| Abstract: | This paper develops a novel classification of high-polluting occupations for a large sample of European countries. Unlike previous efforts in the literature, the classification exploits country-level data on air polluting emission intensity by industry. The country-level data allows to capture important cross-country differences, due to differences in technology and in production focus. Applying the new classification to European Labour Force Survey data shows that, on average across the countries covered, about 4% of workers are employed in high-polluting jobs, ranging from 9% in Czechia and the Slovak Republic to around 2% in Austria. These shares do not exhibit any clear decreasing trend over the past decade. High-polluting jobs are unequally distributed, being over-represented among men, workers with lower and medium educational attainment and those living in rural areas. |
| Keywords: | air polluting emissions, classification, climate change, green transition, high-polluting jobs, labour markets |
| JEL: | J21 Q51 Q53 Q56 |
| Date: | 2024–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1795-en&r=env |
| By: | Heinz Welsch (University of Oldenburg, Department of Economics) |
| Abstract: | Carbon pricing is on the rise, as evidenced, for example, by the European Commission’s proposal to extend the trade in carbon emissions to the building and transport sectors. An important feature of carbon pricing is that it generates revenues which can be rebated to households. Rebating the revenues from household sector carbon pricing on an equal-per-capita basis or recycling of revenues to those most affected economically can compensate inequitable impacts, which is expected to increase support for carbon mitigation. This paper addresses carbon pricing and the rebating of carbon pricing revenues from the perspective of their impacts on subjective well-being (SWB). Against the background of pertinent findings in well-being research the paper argues that the rebating of revenues from carbon pricing in the household sector may not be able to compensate the negative effects of carbon pricing on SWB. Referring to research on how energy affordability on the one hand and income on the other affect SWB, it is suggested that the net SWB effect of household sector carbon pricing and equal-per-capita rebating of revenues may be strictly negative. This is not only problematic per se, but all the more so because drops in SWB have been found to be strong predictors of populist voting, which poses a serious threat to carbon mitigation policy. |
| Keywords: | carbon pricing; rebating; energy affordability; subjective well-being; populist voting |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:444&r=env |
| By: | Duygu Buyukyazici; Francesco Quatraro; ; |
| Abstract: | In response to global challenges related to resource scarcity and environmental concerns, the circular economy (CE) has emerged as a transformative model focused on resource e |
| Keywords: | circular economy, skills, competencies, relatedness, complexity |
| JEL: | O33 E24 Q01 Q50 J24 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2411&r=env |
| By: | Felix Frischmuth; Mattis Berghoff; Martin Braun; Philipp Haertel |
| Abstract: | Climate neutrality paradigms put electricity systems at the core of a clean energy supply. At the same time, indirect electrification, with a potential uptake of hydrogen or derived fuel economy, plays a crucial role in decarbonising the energy supply and industrial processes. Besides energy markets coordinating the transition, climate and energy policy targets require fundamental changes and expansions in the energy transmission, import, distribution, and storage infrastructures. While existing studies identify relevant demands for hydrogen, critical decisions involve imports versus domestic fuel production and investments in new or repurposing existing pipeline and storage infrastructure. Linking the pan-European energy system planning model SCOPE SD with the multiperiod European gas market model IMAGINE, the case study analysis and its transformation pathway results indicate extensive network development of hydrogen infrastructure, including expansion beyond refurbished methane infrastructure. However, the ranges of future hydrogen storage costs and market uptake restrictions expose and quantify the uncertainty of its role in Europes transformation. The study finds that rapidly planning the construction of hydrogen storage and pipeline infrastructure is crucial to achieving the required capacity by 2050. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.12974&r=env |
| By: | Carlo Jaeger (Global Climate Forum (GCF)); Jonas Teitge (Global Climate Forum (GCF)); Jan-Erik Thie (Macroeconomic Policy Institute (IMK) and Global Climate Forum (GCF)); Antje Trauboth (Global Climate Forum (GCF)) |
| Abstract: | Long after the debates about tertiarisation and post-industrial society, deindustrialisation is a hot topic again. An important example is the future of the German car industry. Some people believe that the forces of climate policy and digitalisation will lead to a smooth shift from selling internal combustion cars to battery electric ones. We show that things are much more difficult by distinguishing three different futures. First, a pink scenario of global industrial expansion based on electric cars and renewable electricity (1), then, a black scenario of a shrinking market for German cars and a global car fleet far from reaching climate neutrality by 2050 (2), finally a green scenario where carbon neutral self-driving robotaxis and shuttles on demand help realise the goals of the Paris accord and where the German car industry embraces digitalisation to sell mobility as a service, bridging the divide between private and public transport (3). Moreover, the pattern of incremental innovations the German innovation system is locked in is a problem. Germany needs to renew the creative capacity it had when the invention of the automobile planted the seed of the German car industry. This will require patient research able to analyse and foster an unprecedented economic transition. We explain and propose the multisectoral approach to economic dynamics developed at the interface of mathematics and economics by John von Neumann because it offers an adequate starting point for this indispensable effort. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:imk:wpaper:221-2023&r=env |
| By: | Jin-Young MOON, Jin-Young MOON (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Seung Kwon NA, Seung Kwon NA (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); LEE, Sunghee (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); KIM, Eunmi (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | The international community faces two major challenges: securing stable energy supplies and achieving carbon neutrality. Concerns about energy security that aroused due to the oil crises in the 1970s are no longer limited to the stable supply of fossil fuels. The concept of energy security is changing in line with the need for transition from fossil fuels to clean energy. As energy prices have soared due to the recent Russia-Ukraine war, major countries are actively pursuing related policies and external cooperation to diversify their energy supply chain and decarbonize their economic structures. In order to appropriately respond to these challenges, continuous efforts are needed to gradually reduce the use of fossil fuels and in crease the use of clean energy in the medium to long-term. In particular, as the proportion of power generation from variable renewable energy sources increases, maintaining the stability of the power grid becomes a more important task. Demand for minerals essential for clean energy related technologies is expected to increase, however, production of these minerals is concentrated in specific countries. Major concerns related to carbon neutrality or clean energy investment include whether sufficient investment is being made, whether funds are being directed to countries or sectors in urgent need of financial support, and how to induce private investment through public funds. Accordingly, our study analyzed energy security from the perspective of energy transition, and derived key issues and notable cases of international cooperation to ensure energy security and carbon neutrality. Based on our findings, we suggested policy implications for Korea. |
| Keywords: | Energy Security; Carbon Neutrality; Energy Transition |
| Date: | 2024–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2024_010&r=env |
| By: | Noaman ZERIOUH (FSJES-Souissi, UM5 - Faculty of Law, Economic and Social Sciences of Souissi, Mohammed V University of Rabat); Lalla Saadia HAMIDI (FSJES-Souissi, UM5 - Faculty of Law, Economic and Social Sciences of Souissi, Mohammed V University of Rabat) |
| Abstract: | Companies and organizations are invited to identify and assess the social impact of their socially responsible activities in order to align their strategies with the universal sustainable development goals of international organizations and governments. To this end, the main purpose of our paper is to provide the necessary evidence for companies to understand and assess social and environmental impact issues. We also analyze the literature on tools and main methodological families for measuring and assessing social impact and their evolution in recent years. We describe their respective advantages and limitations. We also support reflection on the choice of appropriate assessment methods, suggesting that social impact assessment should be a contextualized process driven by the goals, objectives and precise questions set by the company and its stakeholders. Finally, in order to understand the current dynamics of CSR in Morocco and its impact, we discuss the main trends in CSR practices among Moroccan companies, their impact on society and individuals, and how these impacts can be measured. We are following changes in Morocco's overall ecosystem that are encouraging companies to move in this direction. We present methods and results from a practical example to facilitate this dynamic. |
| Abstract: | Las empresas están invitadas a identificar y evaluar el impacto social de sus actividades socialmente responsables con el fin de armonizar y alinear sus estrategias con los objetivos universales de desarrollo sostenible de las organizaciones internacionales y los gobiernos. Para ello, nuestro principal objetivo en este documento es proporcionar los puntos de referencia esenciales para comprender las cuestiones del impacto social y medioambiental y su evaluación para las empresas. También analizamos la bibliografía sobre herramientas y las principales familias de métodos para medir y evaluar el impacto social y cómo han evolucionado en los últimos años, presentando sus respectivos puntos fuertes y limitaciones. También apoyamos la reflexión sobre la elección del método de evaluación adecuado proponiendo que la evaluación del impacto social se plantee como un proceso contextualizado, motivado por objetivos, metas y preguntas concretas formuladas por la empresa y sus grupos de interés Por último, para comprender la dinámica actual de la RSE y sus impactos en Marruecos, analizamos las principales tendencias en las prácticas de RSE de las empresas marroquíes, sus impactos en la sociedad y los individuos, y cómo medir estos impactos. Nos centramos en los cambios en el ecosistema general de Marruecos que están animando a las empresas a avanzar en esta dirección. Y presentamos la metodología y los resultados de un ejemplo práctico que fomenta esta dinámica. |
| Keywords: | CSR, SOCIAL IMPACT, STAKEHOLDERS, IMPACT ASSESSMENT, RSE, IMPACTO SOCIAL, GRUPOS DE INTERES, EVALUACION DEL IMPACTO |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04536881&r=env |
| By: | Karim Darban (University Hassan II [Casablanca]); Smail Kabbaj (UH2MC - Université Hassan II [Casablanca]); Mostafa El Jay (University Hassan II [Casablanca]) |
| Abstract: | This paper explores how AI can greatly enhance green marketing strategies by improving customer targeting, providing personalized recommendations, optimizing supply chains, and accurately forecasting market trends. And addresses the challenges associated with data quality, privacy concerns, biases in algorithms, and transparency issues that need to be overcome for responsible AI implementation. The paper suggests practical recommendations for policymakers to promote ethical and sustainable use of AI in green marketing. It emphasizes the importance of collaboration among businesses, policymakers, and researchers to ensure responsible AI adoption. |
| Keywords: | Digital marketing, Social-Media, Sustainability, AI Digital marketing Green marketing strategies Social-Media Sustainability, AI, Green marketing strategies |
| Date: | 2023–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04523586&r=env |
| By: | OECD; Orsetta Causa; Maxime Nguyen; Emilia Soldani |
| Abstract: | Greening the economy entails jobs contracting in “high-polluting” economic activities and expanding in environment-friendly activities. Minimizing the corresponding transition costs is crucial to accelerate decarbonisation and reduce displacement costs for affected workers. Using individual-level labour force data for a large sample of European countries, this paper finds that the shares of green and high-polluting jobs remained approximately stable between 2009 and 2019, hinting at a slow or yet-to-come green transition in labour markets. Green and high-polluting jobs are unequally distributed across socioeconomic groups: women are under-represented in both green and high-polluting jobs, while green jobs are associated with higher educational attainment, and high-polluting jobs with lower educational attainment. Equally important from a policy perspective, the results show that high-polluting jobs are concentrated in rural areas. These results are confirmed by analyzing labour market transitions: for instance, while women are more likely to transition from study to job, they are significantly less likely to get a green job. Overall, the results suggest that well designed and targeted policies are needed to support efficient and inclusive labour market transitions in the greening economy: to minimize scarring effects for displaced workers, help individuals’ upskilling and reskilling, and support the matching between workers and jobs in higher demand. |
| Keywords: | green transition, labour markets, policy analysis |
| JEL: | H23 I3 Q41 Q48 H12 |
| Date: | 2024–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1796-en&r=env |
| By: | Alexandre Kornelius; Jose Angelo Divino |
| Abstract: | Transition to renewable energy might affect sensitivity to different types of energy supply and demand shocks economy wide. This paper develops a DSGE model that features renewable energy production, stochastic growth, and external habit formation to tackle this issue. The model is estimated by Bayesian techniques for Brazil, a large country highly dependent on renewable sources with an energy matrix that may soon reflect other countries' matrices. We assess historical decompositions of energy supply and demand shocks, address measurement errors due to regulated energy prices, account for the sharp increase in volatility during the pandemic period, compute structural impulse response functions, and calculate price-elasticities of energy demand. Energy supply shocks are the major driving force of energy prices. Output growth variations are mostly explained by non-energy shocks. Nevertheless, energy shocks account for 4.6% of its fluctuations, decomposed in 2% to energy-price (supply) shocks and 1.3% to each residential and industrial consumption (demand) shocks. Price-elasticities for residential energy usage are -0.150%, -0.364%, and -0.459% after one, ve, and ten years, respectively. Accordingly, price increases would have a limited impact to refrain energy consumption in times of climate change and adverse shocks in renewable sources. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:bcb:wpaper:592&r=env |
| By: | Jiansong Xu |
| Abstract: | Carbon pricing, including carbon tax and cap-and-trade, is usually seen as an effective policy tool for mitigating emissions. Although such policies are often perceived as worsening affordability issues, earlier studies find insignificant or deflationary effects of carbon pricing. We verify this result for the food sector by using provincial-level data on food CPI from Canada. By using a staggered difference-in-difference (DiD) approach, we show that the deflationary effects of carbon pricing on food do exist. Additionally, such effects are weak at first and grow stronger after two years of implementation. However, the overall magnitudes are too small to make carbon pricing blamable for the current high inflation. Our subsequent analysis suggests a reduction in consumption is likely to be the cause of deflation. Contrarily, carbon pricing has little impact on farm production costs owing to the special treatment farmers receive within carbon pricing systems. This paper decomposes the long-term influence Canadian carbon pricing has on food affordability and its possible mechanisms. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.09467&r=env |
| By: | Benjamin Collier; Sabrina T. Howell; Lea Rendell |
| Abstract: | Does emergency credit prevent long-term financial distress? We study the causal effects of government-provided recovery loans to small businesses following natural disasters. The rapid financial injection might enable viable firms to survive and grow or might hobble precarious firms with more risk and interest obligations. We show that the loans reduce exit and bankruptcy, increase employment and revenue, unlock private credit, and reduce delinquency. These effects, especially the crowding-in of private credit, appear to reflect resolving uncertainty about repair. We do not find capital reallocation away from neighboring firms and see some evidence of positive spillovers on local entry. |
| Keywords: | Financing frictions, natural disasters, climate change adaptation, entrepreneurship, government credit |
| JEL: | G21 G32 H81 Q54 R33 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:24-20&r=env |
| By: | Joshua S. Graff Zivin; Benjamin Krebs; Matthew J. Neidell |
| Abstract: | We study the private adoption and diffusion of a technology that provides a local public good – PurpleAir (PA) pollution monitors. From a purely informational perspective, the ideal spacing of these monitors should reflect the degree of spatial correlation in pollution. In stark contrast, we find that monitor adoption is spatially highly clustered in less polluted areas, suggesting the marginal monitor adopted provides minimal additional public information. Moreover, monitor adoption mainly occurs in affluent, predominantly white neighborhoods, underscoring the potential environmental justice concerns associated with the private provision of this public good. |
| JEL: | H41 Q53 Q55 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32356&r=env |
| By: | Kinne, Jan; Dehghan, Robert; Schmidt, Sebastian; Lenz, David; Hottenrott, Hanna |
| Abstract: | While many digital technologies provide opportunities for creating business models with an impact on sustainability, some technologies, especially blockchain applications, are often criticized for harming the environment, e.g. due to high energy demand. In our study, we present a novel approach to identify sustainability-focused blockchain companies and relate their level of engagement to location factors and entrepreneurial ecosystem embeddedness. For this, we use a large-scale web scraping approach to analyze the textual content and hyperlink networks of all US companies from their websites. Our results show that blockchain remains a niche technology, with its use communicated by about 0.6% of US companies. However, the proportion of sustainable blockchain firms is significantly higher than in the overall firm population. Additionally, we find that blockchain companies with an intensified focus on sustainability have, at least quantitatively, a more intensive embedding in entrepreneurial ecosystems, while infrastructural and socio-economic location factors hardly play a role. |
| Keywords: | sustainability, blockchain, ecosystem, location factors, natural language processing |
| JEL: | Q56 R30 L86 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:290401&r=env |
| By: | Velez, Maria (Los Andes University); Rueda, Ximena (University of Los Andes); Henao, Juan Pablo (Chair group of Agricultural Production and Resource Economics, Technical Un); Monroy, Dayron (Los Andes University); Tobin, Danny (Duke University); Maldonado, Jorge Higinio (Universidad de los Andes); Pfaff, Alexander (Duke University) |
| Abstract: | Artisanal and small-scale gold mining employs millions of poor people, globally, yet also significantly degrades the environment. Support from conscientious buyers, based on the information within certifications, could lower environmental impacts and raise incomes, leading miners to be willing to incur costs to participate in sustainable supply chains. As supply-chain certification may require formalization, we explore miners’ motivations for and the barriers to formalization within a choice experiment in two Community Councils in Afro-descendent areas of Colombia’s Pacific Region: Yurumangui, in Valle del Cauca and San Juan, in Choco. Community Councils have collective land rights—which might make them more willing to engage in collective action often required for formalization. We find that, while all miners prefer to leave the status quo, views of miners in the two Councils differed with regard to formalization. Yurumangui expressed more interest overall in the options we offered, perhaps due to past formalization experiences in San Juan. Yurumangui miners were also more willing to form or join an association to formalize, very likely due to positive past outcomes from organization. We find no consistent effect of gender regarding preferences, though prior voluntary restoration correlates with individual miners’ willingness to restore sites, one requisite of formalization. Our results inform interventions to support formalization in small-scale gold mining communities, as we find miners are willing to try formalization but raise issues related to costs that can hinder adoption and in ways that vary with the past legacies of each Council. |
| Keywords: | sustainability; supply chains; mercury; mining; Afro-descendant communities; formalization; common property resources; motivations; choice experiment; Colombia |
| JEL: | C25 D04 D71 Q31 Q32 Q38 |
| Date: | 2024–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2024_005&r=env |
| By: | Wadim Strielkowski; Oxana Mukhoryanova; Oxana Kuznetsova; Yury Syrov |
| Abstract: | This paper analyzes sustainable regional economic development and land use employing a case study of Russia. The economics of land management in Russia which is shaped by both historical legacies and contemporary policies represents an interesting conundrum. Following the dissolution of the Soviet Union, Russia embarked on a thorny and complex path towards the economic reforms and transformation characterized, among all, by the privatization and decentralization of land ownership. This transition was aimed at improving agricultural productivity and fostering sustainable regional economic development but also led to new challenges such as uneven distribution of land resources, unclear property rights, and underinvestment in rural infrastructure. However, managing all of that effectively poses significant challenges and opportunities. With the help of the comprehensive bibliographic network analysis, this study sheds some light on the current state of sustainable regional economic development and land use management in Russia. Its results and outcomes might be helpful for the researchers and stakeholders alike in devising effective strategies aimed at maximizing resources for sustainable land use, particularly within their respective regional economies. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.12477&r=env |
| By: | Maria Tsouri; Ron Boschma; ; |
| Abstract: | Studies show that local capabilities contribute to the green transition, yet little attention has been devoted to the role of scientific capabilities. The paper assesses the importance of local scientific capabilities and the inflow of scientific knowledge from elsewhere for the ability of regions in Europe to diversify into photovoltaic (PV) segments during the period 1998 to 2015, employing a combined dataset on patents and scientific publications. We find that local scientific capabilities matter, but not so much the inflow of relevant scientific knowledge from other regions, as proxied by scientific citations of patents in PV segments. Regions are also likely to diversify into a PV segment when they have technological capabilities related to other PV segments. Finally, we found that European regions are less likely to lose an existing PV segment specialization when they have intra-regional and extra-regional scientific capabilities in this PV segment. |
| Keywords: | relatedness, photovoltaic technologies, green diversification, regional diversification, scientific capabilities, related scientific capabilities, inter-regional linkages, Europe |
| JEL: | O25 O38 R11 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2410&r=env |
| By: | HARDING Richard; NAUWELAERS Claire |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies, also articulated in the same report. The case study research covered several territories from across the EU and beyond, representing a diversity of approaches to CCA and transformative innovation. The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach – features understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation feature. This Report provides the findings for Turku and Southwest Finland, and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137315&r=env |
| By: | HARDING Richard; NAUWELAERS Claire |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies, also articulated in the same report. The case study research covered several territories from across the EU and beyond, representing a diversity of approaches to CCA and transformative innovation. The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach – features understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation feature. This Report provides the findings for Iceland, as at September 2023, and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137291&r=env |
| By: | Renau, Jorge Marco (Department of Economics, University of Los Andes, Bogotá, Colombia); Valbuena, Nicolas (Faculty of Agricultural Sciences, University of Hohenheim, Stuttgart, Germany); Valderrama, Diego (Department of Environmental Science and Policy, George Mason University, USA.); Vasquez, Monica (Colombian Federation of Fish Farmers (FEDEACUA), Colombia) |
| Abstract: | Reaching a production level of 200, 000 tons (live weight) in 2022, the tilapia industry has emerged as the most important finfish farming sector in Colombia. Located in the southwest of the country, the Huila department currently accounts for 40% of total production and 90% of exports. As the industry grew at a remarkable pace over the last two decades, two clearly identifiable sectors emerged, with large-scale producers targeting the export market, and mid- and small-scale producers focusing on the domestic market. This study used the Aquaculture Performance Indicators (API) methodology to examine the economic, environmental, and social performance of both production sectors. The evaluation relied on the input of industry experts and information collected from a number of secondary sources. While the export sector achieved acceptable scores for each sustainability criteria, the economic and social performance of the domestic sector was deficient. Contrasting capacities to cope with a number of production, investment and cost scenarios as well as varying vulnerability to potential risks could further amplify the differences in performance between the two sectors. |
| Keywords: | Aquaculture Performance Indicators; Food production systems; Triple bottom line; Sustainable aquaculture; Tilapia. |
| JEL: | Q22 |
| Date: | 2024–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2024_003&r=env |
| By: | HARDING Richard; NAUWELAERS Claire |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies, also articulated in the same report. The case study research covered several territories from across the EU and beyond, representing a diversity of approaches to CCA and transformative innovation. The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach – features understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation feature. This Report provides the findings for Northern Netherlands, and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137312&r=env |
| By: | Li, Zhi (Xiamen University); Zhang, Da (Tsinghua University); Zhang, Xiliang (Tsinghua University) |
| Abstract: | With a unique opportunity of recruiting hundreds of emissions trading system (ETS) participants in a series of lab-in-the-field experiments, we compare a revenue-neutral consignment auction (CA) with free allocation (grandfathering, GF hereafter) and a uniform price auction (UPA) as alternative permit allocation designs. In our setup, firms first receive their permits for free. Then, under the two auction mechanisms, they need to buy back a share of the permits, either with auction revenues returned to the firms in the primary market (CA) or not returned (UPA), followed by a spot (secondary) market for all mechanisms with the continuous double auction. We find that enforced permit transactions in the primary market induce a higher price, facilitating price discovery with lower volatility and more effective trading in the spot market. Both auctions reduce non-compliance compared with GF, because the auctions reduce both permit hoarding and risky over-selling in the spot market. Both CA and UPA help smaller polluting firms lower their profit risks. CA also helps large, cleaner firms increase profits. Our results provide insights on permit allocation designs when introducing an ETS, especially for developing countries that are pondering the balance between market efficiency and firms’ cost burden. |
| Keywords: | emissions trading; consignment auction; uniform price auction; grandfathering; spot market; price collar |
| JEL: | C92 D44 Q52 Q54 Q58 |
| Date: | 2022–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2022_010&r=env |
| By: | Fulton, Lewis; UC Davis ITS Hydrogen Study Team |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt97s439v1&r=env |
| By: | Yikai Zhao; Jun Nagayasu |
| Abstract: | This study investigates supply chain transparency's (SCT) impact on corporate greenwashing. Analyzing Chinese data reveals a notable negative effect, suggesting that enhanced SCT contributes to reducing greenwashing. This relationship is primarily driven by easier financing constraints and increased investor vigilance. Environmental regulation rigor, digital finance adoption, the degree of market competition, and industry-specific characteristics emerge as key moderating factors of this relationship. Crucially, we demonstrate SCT's integral role in promoting genuine corporate environmental practices and emphasize non-financial disclosures' importance in diminishing information asymmetry and strengthening corporate governance. |
| Date: | 2024–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:toh:dssraa:140&r=env |
| By: | Kosec, Katrina; Kyle, Jordan; Narayanan, Sudha; Raghunathan, Kalyani; Ray, Soumyajit |
| Abstract: | This paper examines the dynamics of women's claim-making within the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme in India, focusing on their participation in selecting durable assets for climate resilience. Despite legal entitlements and protections for women within the program, gender disparities persist in claiming public resources. Utilizing a mixed-methods approach including surveys and qualitative interviews, the study uncovers various pathways to women’s claim-making, influenced by factors such as gender norms around mobility and women’s voice and agency, internal barriers and constraints including comfort in public speaking, and knowledge of the program and its various procedures for selecting assets. While challenges to women’s effective participation remain, findings from our analysis suggest potential for interventions to reduce gender gaps and enhance inclusivity in planning processes. Moreover, the study underscores the importance of recognizing diverse claim-making pathways to promote inclusion effectively within the program. |
| Keywords: | climate resilience; gender equality; infrastructure; women's empowerment; employment; women's participation; gender norms; governance; Asia; Southern Asia; India |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2247&r=env |
| By: | Benjamin L. Collier; Sabrina T. Howell; Lea Rendell |
| Abstract: | Does emergency credit prevent long-term financial distress? We study the causal effects of government-provided recovery loans to small businesses following natural disasters. The rapid financial injection might enable viable firms to survive and grow or might hobble precarious firms with more risk and interest obligations. We show that the loans reduce exit and bankruptcy, increase employment and revenue, unlock private credit, and reduce delinquency. These effects, especially the crowding-in of private credit, appear to reflect resolving uncertainty about repair. We do not find capital reallocation away from neighboring firms and see some evidence of positive spillovers on local entry. |
| JEL: | G21 G32 H81 Q54 R33 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32326&r=env |
| By: | Soga, Kenichi PhD; Comfort, Louise PhD; Li, Pengshun; Zhao, Bingyu PhD; Lorusso, Paola |
| Abstract: | In the event of a wildfire, government agencies need to make quick, well-informed decisions to safely evacuate people. Small communities, such as in Marin County, with a mix of residences and flammable vegetation in Wildland-Urban Interface zones tend to lack resources to conduct evacuation studies. Consequently, this study uses a framework of wildfire and traffic simulations to test the performance of potential evacuation strategies, including reducing the volume of evacuating vehicles through car-pooling, phasing evacuations by staggering evacuation times by zone, and prohibiting street parking in four representative areas of Marin County. Results show that reducing vehicle numbers lowers the average travel time by 20%-70% and average exposure time to wildfire by 27%-60% from the baseline. Phased evacuations with suitable time intervals lower the average travel time by 13.5%-70%, but may expose more vehicles to fire in some situations. Prohibiting street parking yields varying results due to different numbers of exits and evacuees. In some cases, prohibiting street parking reduces the average travel time by over 50%, while in other cases it only reduces the average travel time by 9%, contributing little to evacuation efficiency. Altogether, Marin County may want to consider developing a communication and parking plan to reduce the number of evacuating vehicles in wildfire situations. Phased evacuation is also highly recommended, but the suitable phasing interval depends on the speed of fire spread and number of evacuees. Further, whether to establish street parking prohibition policies for a certain area depends on the number of exits and the number of vehicles on the streets. |
| Keywords: | Engineering, Wildfires, evacuation, urban areas, greenways, traffic simulation, advanced traveler information systems, street parking |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt78n6n8rf&r=env |
| By: | PIERRI Erika (European Commission - JRC); EGLE Lukas (European Commission - JRC); GAUDILLAT Pierre (European Commission - JRC); GALLO Federico; MANFREDI Simone (European Commission - JRC); SAVEYN Hans (European Commission - JRC) |
| Abstract: | The aim of this study is to develop technical recommendations for a possible amendment of Table 1 – Annex II of the EC proposal for a Packaging and Packaging Waste Regulation, to support the co-decision process. The main objective is to consider reducing the number of packaging categories referred to in Article 6 of the Regulation. To this end, the feasibility of aggregating some of the packaging categories has been assessed. The methodological approach followed was based on a statistical analysis to quantify similarities across selected categories. The data used as basis for the analysis have been retrieved from available design for recycling guidelines and from evidence submitted by experts in a written stakeholder consultation. The analysis was complemented by a critical appraisal of results, thereby also accounting for evidence received by stakeholders. The proposal also includes recommendations on possible integration of missing packaging categories or formats in Table 1 of Annex II. The study led to the recommendation to reduce the number of packaging categories from 30 to 22, by merging mono-material and composite packaging for glass, steel and aluminium (distinguishing between rigid and semi-rigid or flexible aluminium packaging); plastic packaging categories that differed only by colour; and PS and XPS plastic packaging. A new category for biodegradable plastic packaging is proposed to be added to the table. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136783&r=env |
| By: | Maria Fay; Frederik F. Fl\"other |
| Abstract: | For organizations to survive and flourish in the long term, innovation and novelty must be continually introduced, which is particularly true in today's rapidly changing world. This raises a variety of ethical and sustainability considerations that seldom receive the attention they deserve. Existing innovation adoption frameworks often focus on technological, organizational, environmental, and social factors impacting adoption. In this chapter, we explore the ethical and sustainability angles, particularly as they relate to emerging technologies, artificial intelligence (AI) being a prominent example. We consider how to facilitate the development and cultivation of innovation cultures in organizations, including budding startups as well as established enterprises, through approaches such as systems thinking. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.07678&r=env |
| By: | EGLE Lukas (European Commission - JRC); PIERRI Erika (European Commission - JRC); GAUDILLAT Pierre (European Commission - JRC); GALLO Federico; MATHIEUX Fabrice (European Commission - JRC); SAVEYN Hans (European Commission - JRC) |
| Abstract: | The aim of this study is to develop technical recommendations for possible elements and parameters of a methodology to assess recyclability of packaging, referred to in Article 6 of the EC proposal for a Packaging and Packaging Waste Regulation, to support the co-decision process. The main objective is to identify relevant functionalities of the packaging materials (listed in Table 1 of Annex II of the proposal) that could be considered in a design-for-recycling (DfR) methodology. A mapping exercise of available DfR guidelines was carried out to build up an extensive database for each packaging material. The outcomes of this study are based on data and evidence provided by experts in the written stakeholder consultation. The proposal consists of a list of elements and parameters, a detailed description of each parameter and the relevance for recyclability. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136777&r=env |