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on Environmental Economics |
| By: | Chunyan Dai; Michael G Pollitt |
| Keywords: | Emission Trading System (ETS), Carbon Border Adjustment Mechanism (CBAM), European Union Emissions Trading System (EU ETS), China’s national Emissions Trading System (CN-ETS), China’s local Emissions Trading System (CL-ETS) |
| JEL: | Q54 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2417 |
| By: | Lécureur, Clairelou |
| Abstract: | This first issue of the Enseignements du Lab collection provides a transversal reading of the results of four collective projects linked to the ecological transition in working-class neighbourhoods. It focuses on the sociological dimension of the climate crisis and, more specifically, on environmental inequalities. The link between environmental issues and inequalities is not new, but it is increasingly being studied, mainly through the prism of working-class neighbourhoods. Indeed, residents of low-income urban areas are more vulnerable to the consequences of climate change. And this, even though they contribute to it the least, through their consumption. After presenting the specific context and potential of working-class neighbourhoods to contribute to the social and ecological transition, this publication answers the following question: what actions are possible in working-class neighbourhoods to address environmental inequalities and move towards greater environmental justice? |
| Date: | 2024–10–11 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:d4pwh |
| By: | Boser, Anna; Caylor, Kelly; Larsen, Ashley; Pascolini-Campbell, Madeleine; Reager, John T; Carleton, Tamma |
| Abstract: | Efficiently managing agricultural irrigation is vital for food security today and into the future under climate change. Yet, evaluating agriculture's hydrological impacts and strategies to reduce them remains challenging due to a lack of field-scale data on crop water consumption. Here, we develop a method to fill this gap using remote sensing and machine learning, and leverage it to assess water saving strategies in California's Central Valley. We find that switching to lower water intensity crops can reduce consumption by up to 93%, but this requires adopting uncommon crop types. Northern counties have substantially lower irrigation efficiencies than southern counties, suggesting another potential source of water savings. Other practices that do not alter land cover can save up to 11% of water consumption. These results reveal diverse approaches for achieving sustainable water use, emphasizing the potential of sub-field scale crop water consumption maps to guide water management in California and beyond. |
| Keywords: | Hydrology, Environmental Sciences, Earth Sciences, Zero Hunger |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:agrebk:qt81j397nv |
| By: | Claire Brunel (American University School of International Service); Arik Levinson (Department of Economics, Georgetown University) |
| Abstract: | We evaluate the economic and environmental consequences of taxes on imported goods based on their carbon content. The analysis uses the simplest possible partial equilibrium framework, with one small open economy and a global pollution externality. It relies on graphs of supply and demand, rather than equations or formulas, hoping to reach readers familiar with basic economics. Despite its simplicity, the framework imparts numerous lessons. (1) Absent a domestic price on carbon, a carbon tariff imposes the same costs on domestic consumers as a domestic carbon price, but a carbon tariff also subsidizes domestic pollution. (2) If one small country imposes a carbon tariff, with or without a domestic carbon tax, the economic incidence of the tariff falls on its consumers. (3) If a holdout country joins the rest of the world by enacting its own carbon regulation and consequently imports more from other countries, those increased imports are not “leakage.” They are the cessation of leakage from when the holdout country’s policy was lax. And (4) if other countries do not appropriately regulate emissions, no single small country can use a combination of carbon taxes and carbon tariffs to fully correct the problem caused by its consumers or producers. |
| Keywords: | climate change, tariffs, CBAM |
| JEL: | Q5 Q56 |
| Date: | 2024–10–08 |
| URL: | https://d.repec.org/n?u=RePEc:geo:guwopa:gueconwpa~24-24-05 |
| By: | Fujing Ma; Torsten Schröder; Juliette Bekkering |
| Abstract: | Background: In the building industry, the concept of the circular economy is gaining a lot of importance, as the construction industry has a very high environmental impact (operational and embodied, energy consumption, and related CO2eq emissions, material consumption, waste generation, etc) increasingly concerned with energy-saving and CO2 reduction during the construction and operation phases of buildings, i.e. reduction of raw materials and reduction of residues and waste. The Dutch government declared an ambitious goal: to have the building industry 100% circular by 2050. In this context, circular design and circular renovation play a crucial role in reaching the government’s goals.The research's goals: This research aims to explore how to optimize the energy efficiency and circular renovation associated with educational building renovations in the context of climate change. We aim to maximize the use of existing buildings and combine the following three strategies: First, to develop a transferable circular design strategy for educational building renovations. These include “circular design” to transform educational buildings (bio-based material design, reuse design, demountable design, etc). Second, to develop zero energy renovation strategies (investigations into building envelope improvements, HVAC and the integration of renewable energy sources, etc), and third, to develop architectural transformation for future learning environments (flexibility, adaptability, materiality, and programmatically diversity, etc).Methods: The research adopts a mixed-method qualitative approach comprising analysis of multiple-case studies to extend theoretical knowledge and framework by integrating strategies and measures from real-world cases. The selected cases are exemplary for implementing circular principles in the building or sustainable renovation. This research selects six building cases and analyzes and summarizes the circulation strategies of Matrix(by ir. S.J. Van Embden), Neuron(by ir. S.J. Van Embden), Floriade (by DP6), Circl (by de Architekten Cie), Echo(by UNStudio), and Emergis(by Emergis Living Lab).Results: This research will analyze and compare these building cases to analyze and summarize the circulation strategies of Matrix, Neuron, Floriade, Circl, Echo, and Emergis, and show results in diagrams. To inform design practices that not only enhance energy efficiency and reduce environmental impact but also contribute to creating educational spaces that are adaptable, sustainable, and conducive to diverse learning needs." |
| Keywords: | Architectural transformation; Circular design; Circular economy; Zero-energy renovation |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-129 |
| By: | Yue Zhang |
| Abstract: | The global call for reducing greenhouse gas emissions has highlighted the importance of sustainable transitions in buildings as an effective means to optimize energy, waste, and other resources utilization. However, balancing environmental impact and green retrofit costs still need to be justified carefully. Though various studies have identified price and rental premiums for green buildings (GB), there is a lack of research delving into the dynamics behind the supply of green buildings. This research aims to investigate the underlying mechanisms and peer effects on green building supply. Thus, the research questions are as follows: (1) What value determinants contribute to green building premia? (2) How does the entry of a green building affect the possibility of nearby buildings turning into green?By using a sample of 59079 office property transactions spanning the period of 2013 to 2022 in Hong Kong, we found that certified office properties command a rental premium of approximately 9.8% compared to non-certified properties. The sample consisted of transactions involving green buildings certified by HKBEAM, BEAM-Plus, and LEED, which accounted for 15% of the total sample.To understand the mechanisms and externalities of GB, we constructed a hedonic model-based rental index. We compared the responsiveness and volatility between GB and non-GB. The provisional results showed that the rental level of certified office properties is more responsive and volatile than non-certified properties and varies across different areas. In the next phase, we plan to use local Moran’s I and Getis-Ord Gi* statistic, which measure the local spatial autocorrelation and hot spots of green buildings. Then by employing Google’s geocoding and distance matrix APIs, we will define neighborhoods flexibly, e.g. we can classify buildings located within k-meter walking distance from a green building as peers. A difference-in-difference method will be used to detect the externalities, where a dummy variable was introduced measuring whether there is an entry of newly certified green buildings into an area within 100 meters of property i over a one-year window before time t (100 meters and 1 year here are arbitrary and subject to robustness checks). Confirming a positive coefficient for this variable would support the hypothesis of urban externalities.This study aims to enhance our understanding of the market mechanism of commercial property and the decision-making of stakeholders. It provides empirical evidence regarding green commercial real estate while offering valuable insights for investors and tenants who are concerned about climate change and energy uncertainty." |
| Keywords: | commercial real estate; Green Building; sustainability; Urban externalities |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-039 |
| By: | Amasha Sumanapala, SD; Naradda Gamage, SK |
| Abstract: | Community-based tourism (CBT) is a viable alternative to promoting sustainable rural development. In the same vein, sustainable rural development is possible by reinforcing the priority of local policies and increasing the involvement of local communities in the development process to achieve positive socio-economic and ecological-environmental impacts. Rural communities face numerous challenges, including economic limitations, socio-cultural preservation issues, and environmental degradation, which can hinder long-term Sustainability. CBT offers a solution by directly involving local communities in the planning and management of tourism, ensuring that economic benefits are equitably distributed, cultural heritage is preserved, and the natural environment is protected. By aligning tourism activities with the community’s socio-economic and environmental goals; CBT Can create a balanced framework for development. The review comes up with a conceptual framework that explores the role of CBT in enhancing sustainable rural development. Therefore, this proposal argues that CBT provides a steady income stream and straightens the resilience of rural communities by integrating sustainable practices into tourism, ultimately contributing to long-term sustainable rural development. |
| Keywords: | Community-Based Tourism, SDGs, Sustainable Rural Development, Sustainable Tourism Development |
| JEL: | O1 O18 R11 Z11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122229 |
| By: | Koundouri, Phoebe; Alamanos, Angelos; Sachs, Jeffrey |
| Abstract: | Multiple challenges have emerged over the last decades, threatening human, socio-economic and environmental systems. Climate change impacts, degradation of limited natural resources, unsustainable demand, production and consumption practices, diseases, crises in the energy, food and biodiversity sectors, economic recessions, and many more, interconnected dynamic threats, require coordinated and efficient solutions. Under the UN's Sustainable Development Solutions Network (SDSN) we developed the Global Climate Hub (GCH), an international initiative for tackling such challenges. After 12 years of SDSN's action, we present the structure and ways of operation of the GCH, along with the principles that allow it to successfully bridge holistic scientific approaches with the society, for implementing fair and publicly acceptable sustainable pathways. The GCH's five innovations are analyzed, namely, the use of integrated 'cutting-edge models', with the support of 'digital AI-driven data-handling infrastructure', for the development of case-specific 'socio-economic narratives' and 'stakeholder engagement' for co-designing solutions. Moreover, the nine units of the GCH are scrutinized in terms of scope, methods, and tools. These cover a wide range of expertise in digital applications, climate science, energy, transport, land, water, food, biodiversity, and marine systems, public health, solutions' application, policy, finance, labour markets, participatory approaches, education and training. This contribution provides a complete picture of a global, developing - and successful so far - vision for a climate-neutral, resilient and sustainable world. |
| Keywords: | Innovation, Innovating for Sustainability, sustainability, Climate Change, SDSN, UN, multiple challenges, socio-economic |
| JEL: | H0 O2 Z1 Z18 |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121978 |
| By: | Chen, Jen-Eem; Ahmad, Mahyudin; Mohd Zulkifli, Shaliza Azreen; Tan, Yan-Ling; Mustofa, Moh. Solehatul |
| Abstract: | Tourism is widely recognized as a key driver of economic growth and development, yet its dependence on the energy sector has raised concerns regarding its environmental impact. Aiming to elucidate the roles of tourism and renewable energy in shaping the environmental outcomes, this study investigates the nexus between tourism development, renewable energy utilization, and environmental quality across 10 ASEAN countries over a 25-year period from 1995 to 2019 by employing panel estimators robust to heterogeneity and cross-sectional dependence such as Panel Corrected Standard Errors (PCSE), Feasible Generalized Least Squares (FGLS), and Augmented Mean Group (AMG) that are rarely utilized in the ASEAN context. Our findings reveal that tourism activity contributes to CO2 and greenhouse gas emissions, with a 1% increase in tourist arrivals associated with a 0.1 to 0.3% rise in emissions. Moreover, we observe a significant mitigating effect of renewable energy on tourism-induced emissions. Our analysis also lends strong support to the Environmental Kuznets Curve (EKC) hypothesis, indicating a threshold level of GDP per capita of USD 13, 000, beyond which the adverse environmental impact of GDP turns positive. The common dynamic process in AMG estimator is found to raise emissions, implying the ASEAN strategic policies on sustainable tourism and energy cooperation may not yet come to fruition given the region’s heavy reliance on non-renewable energy sources to sustain tourism and meet population demands. We conclude with policy implications aimed at fostering sustainable tourism and development in the region. |
| Keywords: | CO2 emissions, Environmental Kuznets Curve, Environmental quality, Renewable energy, Tourism development. |
| JEL: | O13 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122212 |
| By: | Plataniotis, Angelos; Koundouri, Phoebe; Alamanos, Angelos; Stavridis, Charalambos; Landis, Conrad; Chiatto, Elisa; Halkos, Georgios; Perifanos, Konstantinos; Devves, Stathis |
| Abstract: | The European Green Deal (EGD) is the growth strategy for Europe, covering multiple domains, and aiming to an equitable, carbon neutral European Union by 2050. The UN Agenda 2030, with its 17 Sustainable Development Goals (SDGs) set the bases for a global sustainability transition. However, the integration of the SDGs into the EGD is an overlooked issue in the literature, although it is particularly important, given Europe’s slow progress to achieve the sustainability targets. In this paper, 22 central policies and strategies published during 2020–21 to support the EGD's implementation are assessed on how they align with Agenda’s 2030 aspirations, using novel text-mining methodologies: one human-based and one machine-learning-based. The results outline an alignment of EGD policies to the main SDGs themes relevant to Food, Land, Oceans, Energy, but also a strong indication that the progress towards sustainability passes through "Peace, Justice, and Strong Institutions" (SDG16) and international "Partnerships for the Goals" (SDG17). We further explain the underlying policy mechanisms of the established ‘necessary transformations’ to build a sustainable Europe, along with the relevance of valuing the natural capital and integrating it into future investment and financial decisions. |
| Keywords: | European Green Deal, SDGs, Sustainability, Policy alignment, Text-mining, Machine Learning |
| JEL: | F5 H5 |
| Date: | 2023–03–21 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122042 |
| By: | Koundouri, Phoebe; Halkos, George; Landis, Conrad; Dellis, Konstantinos; Stratopoulou, Artemis; Plataniotis, Angelos; Chioatto, Elisa |
| Abstract: | This paper refers to the valuation of European, Marine and Fresh Water Ecosystem Services. Using a meta-regression approach, we estimate the Annual Willingness to Pay (WTP) for several classifications of the ecosystem services and various biogeographical and marine regions across all twenty-seven EU markets. Moreover, we explore the correlation between WTP and the national level of achievement of the 17 SDGs, with particular focus on SDG 14 - Life Below Water. Results indicate that regulating services of marine and freshwater ecosystems are ranked high and that in almost 63% of the European countries, the WTP for the improvement of the marine & freshwater ecosystem is high and exceeds estimates for terrestrial ecosystems. Valuing ecosystem services and link them to the Sustainable Development Goals, we find that marine ecosystems are mainly positively correlated to SDGs 2, 12, 13, 14 and 17, while a high MWTP value is assigned to specific SDG14 individual indicators like fish caught from overexploited or collapsed stocks and fish caught that are then discarded. Overall, results indicate that societies attributing greater value to ecosystem services mark greater progress towards the implementation of SDGs and SDG 14 in particular. |
| Keywords: | Valuation, Sustainable Development Goals, Ecosystem Services, Meta-Regression, Marine, Freshwater |
| JEL: | Q5 |
| Date: | 2023–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122023 |
| By: | Koundouri, Phoebe; Halkos, George; Landis, Conrad; Alamanos, Angelos |
| Abstract: | The significance of the SDGs lies in their holistic, global and interdisciplinary nature. But this nature at the same time poses significant challenges, as it is difficult to bridge the environmental with the socio-economic aspects of SDGs, in theory, practical application and policymaking. SDG14 on “life below water” consists of these aspects, as it refers to a natural/environmental system, supporting several economic activities and values, and associated with strong social and cultural characteristics. The main challenges for the achievement of a sustainable life below water are analyzed, and ways forward are discussed. Holistic and well-coordinated approaches based on systems thinking are necessary. Moreover, we argue on the role of environmental economics, as tools that can bridge environmental and socio-economic aspects, towards more accurate and insightful sustainability reporting. In particular, the potential of environmental valuation as a means to better inform SDG policies, is discussed, using the example of SDG14. The currently established frameworks for Country’s Sustainability Reporting, lack metrics focusing on the economic impact of the environment and the ecosystem services’ degradation or restoration rates, including ocean and marine ecosystems. Acknowledging and quantifying the costs and the benefits of ocean and marine ecosystems can lead to more effective interventions (ocean pollution prevention, climate change mitigation, fishing exploitation, biodiversity and coral reefs preservation), and to a better understanding of the human-environmental dynamics strengthening thus coordinated management and cooperation. |
| Keywords: | Sustainability, SDG14, Environmental Valuation, Ecosystem Services, Sustainability Reporting Frameworks |
| JEL: | F3 G3 |
| Date: | 2023–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122009 |
| By: | Kazeem B. Ajide (University of Lagos, Lagos, Nigeria); Olorunfemi Y. Alimi (University of Lagos, Lagos, Nigeria); Simplice A. Asongu (Johannesburg, South Africa) |
| Abstract: | The research investigates the relationship between intelligence quotient (IQ) and environmental degradation, aiming to understand how cognitive abilities influence environmental outcomes across different nations and time periods. The objective is to examine the impact of intelligence quotient (IQ) on environmental indicators such as carbon emissions, ecological demand, and the Environmental Kuznets Curve (EKC), seeking insights to inform environmental policy and stewardship. The study utilizes statistical techniques including Ordinary Least Squares (OLS), Two Stage Least Squares (2SLS), and Iteratively Weighted Least Squares (IWLS) to analyze data from 147 nations over the years 2000 to 2017. These methods are applied to explore the relationship between IQ and environmental metrics while considering other relevant variables. The findings reveal unexpected positive associations between human intelligence quotient and carbon emissions, as well as ecological demand, challenging conventional notions of "delay discounting." Additionally, variations in the Environmental Kuznets Curve (EKC) hypothesis are identified across different pollutants, highlighting the roles of governance and international commitments in mitigating emissions. The study concludes by advocating for the adoption of a "delay discounting culture" to address environmental challenges effectively. It underscores the complex interactions between intelligence, governance, and population dynamics in shaping environmental outcomes, emphasizing the need for targeted policies to achieve sustainability objectives. |
| Keywords: | Human capital; intelligence quotient; population; output; carbon emission; EKC, World |
| JEL: | C52 O38 O40 Q50 I20 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/017 |
| By: | Monica Billio (Ca’ Foscari University of Venice); Massimo Guidolin (Bocconi University, GREEN; Baffi-CAREFIN Centre); Francesco Rocciolo (Nazarbayev University, Graduate School of Business) |
| Abstract: | We propose a theory of responsible investing under conditions of ambiguity induced by climate uncertainty in which a representative agent is ambiguity averse. This new theory delivers three novel insights. First, in our setting, the climate-related ambiguity perceived for asset returns is a strictly decreasing function of the environmental sustainability of the firm issuing the security. Second, we show the conditions under which ambiguity aversion endogenously lead to the expression of preferences that make an agent environmentally motivated. In particular, we show that in an economy with climate change uncertainty, environmentally motivated agents allocate their wealth according to a three-dimensional, mean-variance-ambiguity efficient frontier as well as to their attitudes towards risk and ambiguity, exactly as an ambiguity averse decision-maker would do. Third, we prove that the agents rationally select "green" portfolios in order to reduce their exposure towards ambiguity and maximize their ambiguity-adjusted Sharpe ratio. Our theoretical predictions are consistent with the empirical literature on the realized rewards-to-risks trade-off of responsible investing. |
| Keywords: | Ambiguity, Uncertainty, Asset Pricing, Portfolio Choice, Climate Uncertainty, Environmental Awareness, ESG, Sustainable Investing |
| JEL: | D81 G11 G12 Q50 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ven:wpaper:2024:15 |
| By: | Adel Ben Youssef (Université Côte d'Azur, CNRS, GREDEG, France); Mounir Dahmani (University of Gafsa); Mohamed Wael Ben Khaled (ThÉMA, ESC Tunis, University of Manouba; Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | The transition to low-carbon energy systems in the Middle East and North Africa (MENA) region is critical for environmental protection, energy security, and socio-economic resilience. This paper uses neo-institutional theory to examine the impact of formal and informal institutions on the region's energy transition. Despite abundant renewable energy resources, governance inefficiencies, regulatory inconsistencies, and entrenched socio-cultural norms hinder progress. Through a literature review, the study presents an analytical framework focused on the Just and Sustainable Energy Transition (JSET) model, which emphasizes equity, sustainability, and inclusive governance. The study offers recommendations for institutional change and highlights the importance of collaboration among governments, industry stakeholders, and international partners to unlock the region's renewable energy potential and advance global sustainability goals. |
| Keywords: | Renewable energy, low-carbon transition, institutional barriers, neo-institutional economics, energy policy, MENA region |
| JEL: | Q42 Q54 Q58 O13 P48 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2024-22 |
| By: | HARIT, ADITYA |
| Abstract: | This paper develops an economic equilibrium model for pollution management and resource generation within a district, segmented into blocks. The model uses quadratic equations to derive equilibrium conditions at both block and district levels. The analysis incorporates principles from Keynesian, welfare, and environmental economics. The model is solved step by step, yielding collective equilibrium conditions consistent with global environmental commitments. |
| Keywords: | Economic Equilibrium, Pollution Management, Sustainable Growth, Clean Technology, Policy Interventions, Endogenous Technical Change, Resource Generation |
| JEL: | A1 A10 A12 C61 Q2 Q20 Q50 |
| Date: | 2024–10–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122333 |
| By: | Bierl, Konrad; Eisenack, Klaus; von Dulong, Angelika; Wieland, Peter |
| JEL: | Q28 Q48 R50 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302400 |
| By: | Dobkowitz, Sonja |
| JEL: | H21 H23 O3 Q54 Q55 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302410 |
| By: | Halkos, George E; Aslanidis, Panagiotis-Stavros; Landis, Conrad; Papadaki, Lydia; Koundouri, Phoebe |
| Abstract: | The present review examines the primary (heatwaves and air pollution) and cascading (population density, traffic and noise, health issues, and biodiversity loss) hazards in urban settlements. The motivation is to understand the interaction between hazards in urban areas to develop a novel holistic approach that enhances urban sustainability. Three objectives are (i) to monitor valuation studies that reveal willingness to pay (WTP) for major urban-related challenges, (ii) to assess non-marketed valuation studies, and (iii) to examine the interactions between the hazards and their impacts on people and the environment. Based on Environmental Valuation Reference Inventory and Ecosystem Services Valuation Database, from 5329 studies, 80 were retrieved that focus solely on the economic measures of 220 WTP values for different ecological and recreational issues during the period 2000-2023. The findings show that regarding the mean WTP (MWTP) values, the valuation studies reveal a MWTP of 142€ for heatwaves mitigation, whereas for air pollution 76€. Moreover, in terms of cascading hazards, the highest MWTP was for population density (298€), followed by biodiversity loss (96€), health issues (63€), and lastly by traffic and noise with 42€. However, biodiversity loss is the most significant stressor for all target groups (citizens, workers, and flora and fauna), therefore, policymakers should invest in green and blue infrastructure, energy-saving technologies, and transportation alternatives in order to improve urban resilience, safeguarding both human health and the natural environment. |
| Keywords: | climate change, heatwaves, air pollution, biodiversity loss, population density, WTP, valuation studies |
| JEL: | Q50 Q54 Q57 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122262 |
| By: | Krupnick, Alan (Resources for the Future); Russo, Suzanne (Resources for the Future); Burtraw, Dallas (Resources for the Future); Holmes, Brandon (Resources for the Future); Roy, Nicholas (Resources for the Future); Toman, Michael A. (Resources for the Future) |
| Abstract: | Carbon dioxide removal (CDR) involves the application of chemical or biological processes by which CO2 can be removed from the atmosphere and stored in reservoirs including living biomass (like forests), long-lived wood products, soils, oceans, and underground (geologic) storage sites. CDR is a complement to mitigating (avoiding) GHGs to prevent their buildup in the atmosphere, the cause of climate change.The 2015 Paris Agreement, adopted by nearly 200 countries under the auspices of the 1992 United Nations Framework Convention on Climate Change, established the aim of limiting the global average temperature increase from global emissions of greenhouse gases (GHGs) to less than 2.0°C, and as close to 1.5°C as possible, to limit dangerous consequences of climate change. Achieving that aim will require a concerted international effort to reduce the release of GHGs to the atmosphere to zero by midcentury.Many analysts have concluded that achieving the Paris temperature limits is infeasible without major increases in CDR, even with aggressive measures to limit GHGs—which have not yet been achieved. Furthermore, net-negative emissions removal (above and beyond what is achieved by a net-zero economy) will be necessary to reduce the stock of atmospheric CO2 if, as is currently feared, emissions overshoot the trajectory for achieving the Paris temperature limits.However, few countries have set removal goals (Smith et al. 2023; Coalition for Negative Emissions 2021; Environmental Defense Fund 2021; Committee on Developing a Research Agenda for Carbon Dioxide Removal and Reliable Sequestration et al. 2019; IPCC 2018). Moreover, the nature and design of policies to motivate and finance the necessary amounts of CDR have received little attention until quite recently. Meeting the technological and economic challenges requires rapid and significant advances in CDR capability, plus financing and installing massive amounts of CDR going forward. Policymakers must ensure that reliable CDR gets built and used, with technologies that are reasonably ready for commercial-scale application; that investments are cost-effective; and that equity and fairness issues are addressed with attention to community effects, community participation, environmental protection, and environmental justice.This paper examines a pioneering effort to establish a policy structure for CDR in California. Submitted to the California legislature in early 2023, Senate Bill (SB) 308, the Carbon Dioxide Removal Market Development Act, proposed that participants in the state’s emissions trading system (ETS) be required to reduce their remaining emissions by increasing percentages over time through investing in CDR (or other means). The fundamental aim was to kickstart a commercial CDR market. The original version of the bill included provisions for regulatory oversight of CDR projects, financial responsibility of project developers, monitoring and verification, and the interests of communities adjacent to CDR facilities. The bill was substantially revised in ways that removed the CDR mandate and other key provisions, leaving decisions to be made subsequently by regulators. The bill did not make it out of the State Assembly’s appropriations committee and died near the end of the legislative session, in August 2024.SB308 brought to the fore issues that need to be addressed in any subsequent effort to establish a CDR program in California, or any other jurisdiction. The intent of this retrospective analysis is to highlight those issues, discuss how SB308 addressed them, and identify gaps that could be filled and changes that could be made in future efforts. |
| Date: | 2024–10–22 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-24-19 |
| By: | Kelly Cobourn; Christopher O'Donnell; Jesús Antón; Ben Henderson |
| Abstract: | This paper proposes an analytical framework to calculate an environmentally sustainable productivity index (ESPI) to address the multiple challenges faced at present by food systems. Using this framework, an empirical analysis covering 28 countries (anonymised) over three decades examines sustainable productivity performance including three environmental externalities: greenhouse gas emissions, and nitrogen and phosphorus surpluses. The results illustrate how the framework could be used to identify trends in environmentally sustainable productivity within and across countries. While this framework is flexible and can accommodate multiple environmental variables, its application requires appropriate and comparable data on agriculture production and related environmental performance, selecting methods to measure and aggregate groups of outputs and inputs into the productivity index, and choosing a weight for environmental externalities relative to commodity outputs. Sensitivity analyses, as well as comparisons with other approaches to measure sustainable productivity can be undertaken using this framework to ensure the robustness of the measurement. By supporting cross-section comparisons, the ESPI also has the potential to be used in statistical analysis to identify the economic and policy drivers of sustainable productivity performance. |
| Keywords: | Environmental sustainability, Index theory, Total Factor Productivity |
| JEL: | C43 D24 O44 Q18 |
| Date: | 2024–10–23 |
| URL: | https://d.repec.org/n?u=RePEc:oec:agraaa:213-en |
| By: | Blazsek, Szabolcs; Escribano, Álvaro; Licht, Adrian |
| Abstract: | We introduce the fractionally integrated quasi-vector autoregressive (FI-QVAR) model. We apply FI-QVAR to climate data and introduce the fractionally integrated scoredriven ice-age model. We use global sea ice volume, atmospheric carbon dioxide (CO2) concentration, and Antarctic land surface temperature data from 798, 000 to 1, 000 years ago. We control for the eccentricity of the Earth’s orbit, the obliquity of Earth, and the precession of the equinoxes (i.e. Milankovitch cycles). We estimate FI-QVAR using the maximum likelihood (ML) method for fractional integration parameters ∈ (−1/2, 1/2). The statistical and forecasting performances of FI-QVAR are superior to QVAR and VAR. The impulse response functions (IRF) for FI-QVAR capture better dynamic effects of the shocks than QVAR and VAR. We confirm, with more confidence than previous works for these data, that for the last 12, 000-15, 000 years when humanity influenced the Earth’s climate (i.e. Anthropocene), the global sea ice volume forecasts are above the observed sea ice volume, the atmospheric CO2 concentration forecasts are below the observed atmospheric CO2 concentration, and the Antarctic land surface temperature forecasts are below the observed Antarctic land surface temperature, after controlling for natural forces of climate change due to orbital variables. |
| Keywords: | Climate change; Fractional integration; Maximum likelihood (ML); Dynamic conditional score (DCS); Generalized autoregressive score (GAS) |
| JEL: | C32 C51 C52 Q54 |
| Date: | 2024–10–23 |
| URL: | https://d.repec.org/n?u=RePEc:cte:werepe:44712 |
| By: | Gormsen, Niels Joachim; Huber, Kilian; Oh, Sangmin S. |
| Abstract: | Firms’ perceived cost of green capital has decreased since the rise of sustainable investing. Green and brown firms perceived their cost of capital to be the same before 2016, but after the post-2016 surge in sustainable investing, green firms perceived their cost of capital to be on average 1 percentage point lower. This difference has widened as sustainable investing has intensified. Within some of the largest energy and utility firms, managers have started applying a lower cost of capital to greener divisions. The changes in the perceived cost of green capital incentivize cross-firm and within-firm reallocation of capital toward greener investments. JEL Classification: G10, G12, G31, G32, G41, Q54 |
| Keywords: | cost of capital, discount rates, ESG, sustainable investing |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20242990 |
| By: | Romuald Le Frioux Author-Name : André de Palma Author-Name : Nadège Blond (CY Cergy Paris Université, THEMA) |
| Abstract: | This study explores how speed limit regulations for cars in Île-de-France affect air pollution from road trac and the economic costs linked to the population's exposure to this pollution. Using an enhanced version ofthe comprehensive and integrative modeling system, METRO-TRACE (Le Frioux, de Palma, and Blond, 2023), the research combines detailed geographical data, a mobility model to simulate population movements, and an air quality model to assess the economics costs associated with population exposure to road trac related air pollution . The ndings show that the yearly cost of population exposure to road trac pollution is 118.6 e per person. Implementing speed limit policies may not signicantly reduce these costs unless they are substained over the long term or accompanied by behavioral adjustments. The study highlights the intricate relationship between speed limits, pollutant emissions, and their economic consequences. |
| Keywords: | Trac pollution, population exposure, integrated chain of model, dynamic transport model, air pollution exposure monetarization |
| JEL: | R48 Q51 Q58 Q53 |
| URL: | https://d.repec.org/n?u=RePEc:ema:worpap:2024-10 |
| By: | Li, Xinwei; Jenn, Alan |
| Abstract: | This study delves into the energy and emissions impacts of Shared Autonomous and Electric Vehicles (SAEVs) on disadvantaged communities in California. It explores the intersection of evolving transportation technologies—electric, autonomous, and shared mobility—and their implications for equity, energy consumption, and emissions. Through high-resolution spatial and temporalanalyses, this research evaluates the distribution of benefits and costs of SAEVs across diverse populations, incorporatingenvironmental justice principles. Our quantitative findings reveal that electrification of the vehicle fleet leads to a 63% to 71% decrease in CO2 emissions even with the current grid mix, and up to 84%-87% under a decarbonized grid with regular charging. The introduction of smart charging further enhances these benefits, resulting in a 93.5% - 95% reduction in CO2 emissions. However, the distribution of these air quality benefits is uneven, with disadvantaged communities experiencing approximately 15% less benefits compared to more advantaged areas. The study emphasizes the critical role of vehicle electrification and grid decarbonization in emissions reduction, and highlights the need for policies ensuring equitable distribution of SAEV benefits to promote sustainable and inclusive mobility. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, Shared, autonomous, electric vehicles, equity, environmental justice, disadvantaged communities |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt08h3p0r6 |
| By: | Oliver Zain Hannaoui; Hyeyoon Jung |
| Abstract: | As interest in understanding the economic impacts of climate change grows, the climate economics and finance literature has developed a number of indices to quantify climate risks. Various approaches have been employed, utilizing firm-level emissions data, financial market data (from equity and derivatives markets), or textual data. Focusing on the latter approach, we conduct descriptive analyses of six text-based climate risk indices from published or well-cited papers. In this blog post, we highlight the differences and commonalities across these indices. |
| Keywords: | climate; climate risk; climate risk index; textual analysis |
| JEL: | C1 G1 G2 G3 |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:98933 |
| By: | Lukas Vashold (Department of Economics, Vienna University of Economics and Business); Gustav Pirich (Department of Economics, Vienna University of Economics and Business); Maximilian Heinze (Department of Economics, Vienna University of Economics and Business); Nikolas Kuschnig (Department of Economics, Vienna University of Economics and Business) |
| Abstract: | Minerals are essential to fuel the green transition, can foster local employment and facilitate economic development. However, their extraction is linked to several negative social and environmental externalities. These are particularly poorly understood in a development context, undermining efforts to address and internalize them. In this paper, we exploit the discontinuous locations of mines along rivers and their basins to identify causal effects on agricultural yields in Africa. We find considerable impacts on vegetation and yields downstream, which are mediated by water pollution and only dissipate slowly with distance. Our findings suggest that pollution from mines may play a role in the limited adoption of intensive agriculture. They underscore an urgent need for domestic regulations and international governance to limit negative externalities from mining in vulnerable regions. |
| Keywords: | pollution, agriculture, river basin, mining, earth observation |
| JEL: | Q53 O13 Q15 C23 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp368 |
| By: | Yang , Jiaqi (Sustainable Lab Inc.); Takahashi , Kotaro (Sustainable Lab Inc.); Yamadera, Satoru (Asian Development Bank); Tian, Shu (Asian Development Bank) |
| Abstract: | By gathering and analyzing the textual information in eXtensible Business Reporting Language format from the annual securities reports of around 3, 800 Japanese listed companies from 2013 to 2023, this study aims to uncover the trend of Japanese corporate environmental, social, and governance (ESG) materiality disclosure, particularly the environmental aspects. Furthermore, this research explores the potential of self-disclosed ESG information based on eXtensible Business Reporting Language technology as an alternative source for predicting companies' sustainability and financial performance. An upward trend in environmental information disclosure was identified, suggesting a deepening corporate commitment to sustainability practices. Second, our correlation analysis indicated that E, S, and G materialities are increasingly disclosed in a unified manner rather than in isolation. Third, our analysis found limited evidence of a relationship between self-disclosed ESG materiality and corporate financial and ESG performance, which indicates that corporates’ self-disclosure of ESG materiality is not yet sufficient to use as a standalone measure to evaluate and predict financial profitability and climate performance. |
| Keywords: | XBRL; ESG materiality; ESG disclosure; fixed panel regression |
| JEL: | C23 M41 O16 Q56 |
| Date: | 2024–10–09 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0744 |
| By: | Karin Mayr-Dorn |
| Abstract: | Climate change is one of the pressing issues of our time, and carbon emissions caused by industrial production are among its most important drivers. This paper analyses how multi-product firms adjust to an increase in the cost of emissions (e.g. due to the introduction of emissions pricing) in terms of their output, product mix, and technology, and how their emissions change in response, depending on firm-specific production patterns and cost structures. My model delivers a (qualitative and quantitative) assessment of changes in aggregate emissions via conventional margins of firm adjustment that have not been sufficiently studied in the literature so far. In numerical simulations, I find that negative effects of emissions pricing on emissions of multi-product firms can be sizeable. |
| Keywords: | emissions, carbon tax, multi-product firms, product mix, technology |
| JEL: | Q54 Q56 D24 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:jku:econwp:2024-10 |
| By: | Claire Brunel; Arik Levinson |
| Abstract: | We evaluate the economic and environmental consequences of taxes on imported goods based on their carbon content. The analysis uses the simplest possible partial equilibrium framework, with one small open economy and a global pollution externality. It relies on graphs of supply and demand, rather than equations or formulas, hoping to reach readers familiar with basic economics. Despite its simplicity, the framework imparts numerous lessons. (1) Absent a domestic price on carbon, a carbon tariff imposes the same costs on domestic consumers as a domestic carbon price, but a carbon tariff also subsidizes domestic pollution. (2) If one small country imposes a carbon tariff, with or without a domestic carbon tax, the economic incidence of the tariff falls on its consumers. (3) If a holdout country joins the rest of the world by enacting its own carbon regulation and consequently imports more from other countries, those increased imports are not “leakage.” They are the cessation of leakage from when the holdout country’s policy was lax. And (4) if other countries do not appropriately regulate emissions, no single small country can use a combination of carbon taxes and carbon tariffs to fully correct the problem caused by its consumers or producers. |
| JEL: | Q5 Q56 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33024 |
| By: | Julian di Giovanni; Galina Hale; Neel Lahiri; Anirban Sanyal |
| Abstract: | While policies to combat climate change are designed to address a global problem, they are generally implemented at the national level. Nevertheless, the impact of domestic climate policies may spill over internationally given countries’ economic and financial interdependence. For example, a carbon tax charged to domestic firms for their use of fossil fuels may lead the firms to charge higher prices to their domestic and foreign customers; given the importance of global value chains in modern economies, the impact of that carbon tax may propagate across multiple layers of cross-border production linkages. In this post, we quantify the spillover effects of climate policies on forward-looking asset prices globally by estimating the impact of carbon price shocks in the European Union’s Emissions Trading System (EU ETS) on stock prices across a broad set of country-industry pairs. In other words, we measure how asset markets evaluate the impact of changes to the carbon price on growth and profitability prospects of the firms. |
| Keywords: | climate policy shocks; stock markets; international spillovers |
| JEL: | F4 G12 Q5 |
| Date: | 2024–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:98959 |
| By: | Pazhanisamy, R.; Muruganandam, Bharathi |
| Abstract: | The Organization of Petroleum Exporting Countries (OPEC) has been one of the most influential organizations in the global energy sector which controls a significant portion of the world’s oil reserves and has often influenced global oil prices through international trade policies such as quotas and strategic decision-making. The rapid global shift towards renewable energy, increased awareness of climate change, and technological advancements in energy production pose various challenges to OPEC's relevance and future. As a member of OPEC, Qatar's economic strategies and policies are intricately linked to the future of OPEC’s economy. In this context this paper attempted to explore the future of the OPEC economy with the perspective of energy transitions and how this could shape Qatar's economic policies so that its economy can mov forward. The central premise of this paper is that while OPEC's influence on global oil markets may diminish due to energy transitions and global environmental initiatives, member countries such as Qatar will need to adopt innovative economic policies that ensure sustained prosperity even in a low-oil-demand scenario. With energy diversification gaining momentum globally, this paper outline what kind of policy decisions today will significantly impact the economic and political stability of OPEC for sustainability. |
| Keywords: | Zero carbon solution to Qatar, Challenges of OPEC, Economic Policy for Qatar, Sustainable oil trade, Global Energy transitions, OPEC alternative Economic Policies |
| JEL: | E6 F4 H3 L51 M1 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:303529 |
| By: | Arlette Simo Fotso (INED - Institut national d'études démographiques, CEPED - Centre Population et Développement - INED - Institut national d'études démographiques - IRD - Institut de Recherche pour le Développement - UPD5 - Université Paris Descartes - Paris 5); Géraldine Duthé (INED - Institut national d'études démographiques); Grace Kathryn |
| Abstract: | People with disabilities face unique risks in response to both rapid- and slow-onset climate-related events because they may require different types of early warning information to accommodate their needs when responding to climate-related hazards. However, the needs of disabled populations are often not considered alongside climate hazards and mitigation planning. In this project, we take a significant step towards documenting and mapping the risks that people with disabilities face in the context of climate change. We use an innovative dataset—the Senegal RGPH, conducted in 2013, which measures disability using the recommended questionnaire of the Washington Group on Disability Statistics. We combine this data with satellite and gridded datasets that provide key climate measures related to temperature and rainfall, as well as land cover, population density, and infrastructure. This approach allows us to identify areas where climate hazard hotspots intersect with disabled populations, taking into account exposure and additional vulnerability factors. |
| Date: | 2024–05–20 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04699163 |
| By: | Pablo Garcia; Pascal Jacquinot; Crt Lenarcic; Kostas Mavromatis; Niki Papadopoulou; Edgar Silgado-Gómez |
| Abstract: | We analyze the economic impact of the green transition in the euro area by extending the Euro Area and Global Economy (EAGLE) model to include green and brown energy sectors. In this model, energy goods are consumed both as final goods by households and as inputs by intermediate goods firms. A carbon tax acts as a cost-push shock, creating stagflation ary effects, particularly when fiscal interventions are not primary-balance neutral. Without subsidies for green energy firms, the green transition is limited to a shift in household ex penditure towards green energy goods. However, when authorities provide subsidies to green energy firms, intermediate goods firms also increase their demand for green energy inputs, thereby strengthening the demand channel in the green energy market and driving its price upward. When carbon taxes are raised globally and governments redistribute carbon tax revenues to green energy firms, the recession in the euro area deepens, and inflationary pres sures increase, partly due to a weakening euro. Taxes on brown capital investment are also contractionary but lead to lower inflation. In this scenario, subsidies for investment in green energy capital can help mitigate the recession. However, overall, taxes on brown capital investment are less effective in driving the green transition compared to carbon taxes. Classification-JEL: C53, E32, E52, F45, H30, Q48 |
| Keywords: | DSGE Modelling, International Spillovers, Monetary Union, Euro Area, COVID-19 Climate Policy, Carbon Taxation, Monetary Policy, Fiscal Policy, Euro Area, DSGE modeling |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:bcl:bclwop:bclwp190 |
| By: | Shunta Yamaguchi |
| Abstract: | Circular economy policies can aim to ensure that products placed on the market are environmentally sustainable throughout their lifecycle. These upstream circular economy policies can include initiatives to phase out hazardous substances, and enhance product durability, repairability, reusability, and recyclability. Policy instruments used to this end include Extended Producer Responsibility (EPR) schemes, eco-labelling and information schemes, product-related standards, eco-design requirements, green public procurement, and fiscal policies. While these upstream circular economy policies are increasingly considered in policymaking, their linkages with international trade have received less attention, especially in contrast to downstream aspects such as trade in waste and scrap. These policies can have potential implications for trade, including creating synergies between trade and circular economy objectives (e.g. making traded products more recyclable), as well as unintended consequences (e.g. through regulatory fragmentation). This report aims to fill this knowledge gap by exploring the trade implications of upstream circular economy policies. |
| Keywords: | Circular economy, Durability, Eco-labelling, Environment policy, Extended producer responsibility, Green public procurement, Hazardous content, Material content, Product lifespan, Product-based standards, Recyclability, Recycled content, Repairability, Resource efficiency, Reusability, Trade and environment, trade policy, Trade-related environmental measures |
| JEL: | F13 F18 F64 Q56 |
| Date: | 2024–10–22 |
| URL: | https://d.repec.org/n?u=RePEc:oec:traaaa:2024/01-en |
| By: | Tony ShunTe Yuo; Tai-Hsi Wu; Yu-An Yang |
| Abstract: | The analytical model of the social-ecological system structure is designed to explore spatial environmental performance from a holistic, complex, dynamic, network-oriented, and nonlinear perspective. In this research, we employ the Social-Ecological System (SES) framework proposed by Ostrom (2009) and McGinnis and Ostrom (2014) to construct a model capturing the characteristics of Taiwan's real estate market in relation to social and ecological spatial diversity. Utilizing Dynamic Network Data Envelopment Analysis (DNDEA), we conduct performance measurements for the SES model. This framework encompasses various real estate market features, including resource systems, ecological and environmental indicators, government governance, and characteristics of real estate market sectors. The study observes dynamic interactions over multiple years. By incorporating assessments of indicators such as social, industrial, energy, ecological, pollution, and healthcare, central and local governments can optimize relevant policies based on comprehensive social and ecological characteristics in addressing the real estate market.This research is funded by the Ministry of Science and Technology: 111-2410-H-305 -055 -MY2McGinnis, M. D., & Ostrom, E. (2014). Social-ecological system framework: initial changes and continuing challenges. Ecology and Society, 19(2).Ostrom, E. (2009). A general framework for analyzing sustainability of social-ecological systems. Science, 325(5939), 419-422. |
| Keywords: | ESG in Real Estate; Human and Environment coupled; Social-Ecological System; Sustainable Development |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-074 |
| By: | Heilemann, Jasmin; Klassert, Christian; Klauer, Bernd |
| Abstract: | Growing income inequality amplifies social vulnerability to climate change. By linking global with local scenario building for the case of Pune, our approach identifies future trends in inequality and assesses to which degree policy measures considered in Pune account for the climate vulnerability of low-income groups. Rapidly increasing income inequality and the impacts of climate change present substantial challenges for urban areas in low- and middle-income countries, difficult to address by local policymakers. For the case of the Indian city Pune, this study examines the potential effects of future income inequality on social vulnerability to climate change and identifies policy measures that can address these challenges. To this end, we adopt an integrated approach, linking the global scenarios of the Shared Socioeconomic Pathways (SSPs) with local insights and a normative scenario from two workshops held in Pune in 2019. Our findings indicate that income inequality will likely increase, exacerbating the potential social vulnerability of lowincome groups through various channels, e.g. via unequal access to resources and the risk of urban flooding. The policy measures, proposed by local experts, provide suggestions to enhance the resilience of low-income groups in Pune. These policies, however, do not address all previously identified channels to the same degree and partially lack the consideration of systemic aspects to confront growing inequality and climate change impacts |
| Keywords: | Income inequality, climate change vulnerability, scenario design, stakeholder workshops |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ufzdps:304315 |
| By: | Yoshifumi Konishi (Faculty of Economics, Keio University); Sho Kuroda (Faculty of Commerce, Waseda University); Shunsuke Managi (Department of Urban and Environmental Engineering, School of Engineering, Kyushu University) |
| Abstract: | We empirically examine the distributional consequences of income-based versus place-based recycling of carbon tax revenues when automobile demand varies substantially over geographic space. Using a large household dataset from Japan, we estimate a discrete-continuous choice model that parsimoniously accounts for the geographic distribution of incomes, public transit, and portfolio preferences. The model outperforms a naive random-coefficient model in explaining the observed spatial distribution of automobile demand, and allows us to estimate the price and income elasticities that vary by income and public transit density. The estimated model is used to simulate the distributional impacts of income-based versus place-based revenue recycling on carbon emissions and consumer welfare. Our results show the following: first, the improvement in consumer welfare from rebates substantially outweighs the increase in negative externalities from the rebound in carbon emissions; second, place-based recycling outperforms income-based recycling in mitigating welfare losses for low-income and rural households, which face the greatest welfare losses from the carbon tax. |
| Keywords: | Carbon dividend, climate justice, equity-efficiency trade-off |
| JEL: | H23 H31 L62 Q54 Q56 |
| Date: | 2024–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:keo:dpaper:2024-019 |
| By: | Koundouri, Phoebe; Aslanidis, Panagiotis-Stavros; Dellis, Konstantinos; Feretzakis, Georgios; Plataniotis, Angelos |
| Abstract: | This paper introduces a machine learning (ML) based approach for integrating Human Security (HS) and Sustainable Development Goals (SDGs). Originating in the 1990s, HS focuses on strategic, people-centric interventions for ensuring comprehensive welfare and resilience. It closely aligns with the SDGs, together forming the foundation for global sustainable development initiatives. Our methodology involves mapping 44 reports to the 17 SDGs using expert-annotated keywords and advanced ML techniques, resulting in a web-based SDG mapping tool. This tool is specifically tailored for the HS-SDG nexus, enabling the analysis of 13 new reports and their connections to the SDGs. Through this, we uncover detailed insights and establish strong links between the reports and global objectives, offering a nuanced understanding of the interplay between HS and sustainable development. This research provides a scalable framework to explore the relationship between HS and the Paris Agenda, offering a practical, efficient resource for scholars and policymakers. |
| Keywords: | Artificial Intelligence in Policy Making, Data Mining, Human-Centric Governance Strategies, Human Security, Machine Learning, Sustainable Development Goals |
| JEL: | C65 O15 |
| Date: | 2024–02–20 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121972 |
| By: | Suarez, Ronny |
| Abstract: | This paper provides statistical evidence of a positive correlation between anomaly precipitation and the variation of planted hectares of rice. Panamanian farmers reduce planted areas of rice when they experience lower levels of rain. |
| Keywords: | climate change |
| JEL: | Q00 Q5 |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122315 |
| By: | Nicola Gagliardi (CEBRIG and DULBEA, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles); Elena Grinza (Department of Economics, Social Studies, Applied Mathematics and Statistics, University of Turin); François Rycx (CEBRIG and DULBEA, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles. IRES (UCLouvain)) |
| Abstract: | In this paper, we investigate the impact of rising temperatures on firm productivity using longitudinal firm-level balance-sheet data from private sector firms in 14 European countries, combined with detailed weather data, including temperature. We begin by estimating firms’ total factor productivity (TFP) using control-function techniques. We then apply multiple-way fixed-effects regressions to assess how higher temperature anomalies affect firm productivity – measured via TFP, labor productivity, and capital productivity. Our findings reveal that global warming significantly and negatively impacts firms’ TFP, with the most adverse effects occurring at higher anomaly levels. Labor productivity declines markedly as temperatures rise, while capital productivity remains unaffected – indicating that TFP is primarily affected through the labor input channel. Our moderating analyses show that firms involved in outdoor activities, such as agriculture and construction, are more adversely impacted by increased warming. Manufacturing, capital-intensive, and blue-collar-intensive firms, compatible with assembly-line production settings, also experience significant productivity declines. Geographically, the negative impact is most pronounced in temperate and mediterranean climate areas, calling for widespread adaptation solutions to climate change across Europe. |
| Keywords: | Climate change, Global warming, Firm productivity, Total factor productivity (TFP), Semiparametric methods to estimate production functions, Longitudinal firm-level data |
| JEL: | D24 J24 Q54 |
| Date: | 2024–08–21 |
| URL: | https://d.repec.org/n?u=RePEc:ctl:louvir:2024010 |
| By: | Giovanardi, Francesco; Kaldorf, Matthias |
| JEL: | E44 G21 G28 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302379 |
| By: | Kerem Yavuz Arslanli; Ayse Buket Onem; Cemre Ozipek; Maide Donmez; Belinay Hira Guney; Maral Tascilar |
| Abstract: | The research focuses on creating an estimation tool designed to automatically evaluate both environmental and economic benefits arising from low-carbon investments in the real estate sector, with a particular emphasis on large building stocks. The tool offers a swift and dependable assessment of energy consumption related to heating, hot water, cooling, and electricity in buildings, considering specific features like building geometry and orientation.Assessing a building's energy demand involves comparing the existing state (pre-retrofit) and the proposed design (post-retrofit). The annual energy savings and net monetary gains achieved over the entire investment cost will be attributed to the renovation investment after a predefined period. This tool is poised to streamline the evaluation process for the impact of low-carbon initiatives in real estate, providing valuable insights into the potential environmental and economic advantages of such investments. Ultimately, it aims to facilitate informed decision-making for stakeholders involved in large-scale building renovations, contributing to a more sustainable and economically viable real estate sector. |
| Keywords: | Energy Demand Modelling; low carbon; Post-Disaster Settlements |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-051 |
| By: | Chatzistamoulou, Nikos; Koundouri, Phoebe |
| Abstract: | The European Green Deal prioritizes green growth through resource efficiency and eco-innovation to achieve the transition in a sustainable and inclusive growth orbit. To monitor progress in such endeavor the EU Resource Efficiency Scoreboard was launched. Focusing on the resource productivity, which is the main sustainability development indicator and policy evaluation tool for Europe and the eco-innovation performance of the EU-28 over a twenty-year period, from 2000 though 2019, we explore convergence patterns and club formation. Descriptive analysis via growth rates of the resource productivity and eco-innovation indicates productivity differentials among the countries giving rise to heterogeneity groups. Econometric results using convergence algorithms advocate in favor of convergence for both variables. However, convergence clubs surface highlighting that there is heterogeneity to consider when designing policies to promote sustainability transition to ensure that no one is left behind serving the priority of inclusive and sustainable growth. |
| Keywords: | Resource Productivity, Eco-Innovation, Sustainability, Convergence, Technological Heterogeneity, European Green Deal |
| JEL: | O1 O3 |
| Date: | 2022–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122104 |
| By: | Knight, Kelli Anne; Miller, Sabbie A. |
| Abstract: | Recent California regulatory efforts, United States goals, and industry roadmaps all target net-zero greenhouse gas (GHG) emissions from the cement and concrete industries within a few decades. While changes in production of cement and concrete, including varying constituents, can greatly reduce GHG emissions, carbon dioxide removal (CDR) will be needed to meet this net-zero goal. Hydrated cement in concrete can carbonate (i.e., form carbon-based minerals with atmospheric CO2) and thus act as a CDR mechanism. This process occurs faster with a large surface area, such as crushed concrete at its end-of-life (EoL), which can be uniquely leveraged by transportation infrastructure projects. In this work, a literature review of key parameters that can facilitate desired CO2 uptake for transportation projects at their end of life is conducted and an initial meta-analyses of data from the literature to inform CO2 uptake for individual projects is performed. Initial considerations for what concomitant impacts may arise from this process are presented. Finally, experiments to fill a key gap in understanding how thin crushed concrete must be spread to maximize uptake reactions are conducted. Cumulatively, findings will inform whether carbonation can be implementedin a way that would support policies that include carbonation as a route for reducing emissions from cement-based materials in transportation applications View the NCST Project Webpage |
| Keywords: | Engineering, Concrete, Carbonation, Direct Air Capture, Carbon dioxide removal |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt30d5k089 |
| By: | Comisión Nacional de los Mercados y la Competencia (CNMC) (Comisión Nacional de los Mercados y la Competencia (CNMC)) |
| Abstract: | Packaging waste management must be efficient and competitive to speed up the transition to a more sustainable economy, which better preserves the environment and public health. The study therefore analyses this historically monopolised sector. To boost competition in this area, it is crucial that regulation and authorities actively promote it. To this end, the study recommends the following. The first is to reduce entry barriers by streamlining authorizations and increasing flexibility for companies to switch PROs. Second, establish a procompetitive coordination framework between public and private agents, including detailed regulation, a supervisory and conflict resolution body, a standard agreement, a single agreement system and provide Public Administrations with sufficient resources. Third, promote transparency and enhance traceability and fraud detection. Fourth, prevent and address conflicts of interest related to the involvement of associations or waste managers in PROs. And fifth, to encourage competition in waste allocation. |
| Keywords: | Packaging waste, Regulation, Competition, Recycling, Sustainability |
| JEL: | D4 H7 K2 L5 Q5 |
| Date: | 2024–07–09 |
| URL: | https://d.repec.org/n?u=RePEc:awo:epaper:e/cnmc/004/21_eng |
| By: | Han Li; Rianne Appel-Meulenbroek; Theo Arentze; Hoes Pieter-Jan |
| Abstract: | Buildings account for 30% of global energy consumption. Although applying energy efficiency programs or energy saving campaigns has helped to conserve energy use in offices, the consumption figures are still increasing. It might be that the scarcely studied user behavioural factors are partly at fault for this. Hence, this study will explore occupants’ energy-related behaviour under multi-model indoor discomfort situations, particularly focusing on office environments.A modified discrete choice experiment design is used to reveal the preference of occupants for adjusting four types of building comfort control system (i.e., windows, blinds, lighting, and thermostat). In addition, these occupants’ choice preferences for four types of personal comfort adaptation measures are included (i.e., adjust clothing, have cold/hot beverages, use of personal heater and fan.). The choices are made under randomly assigned context scenarios based on attributes including weather, task, location, the preceding indoor environmental quality situation, and general attributes like demographics and current building control features. The data collected from the discrete choice experiment is used to build a predictive model that estimates the likelihood of occupants choosing a specific building control system under multi-model discomfort situations. The model offers guidance to building stakeholders in decision-making processes regarding the development and management of building energy transition/conservation strategies. Additionally, it will promote building consumption related researchers in creating more holistic building simulations models in the pursuit of more holistic sustainable building practices for future application. |
| Keywords: | Building Energy Efficiency; Indoor Environmental Quality; Occupant Behaviour; Sustainable Buildings |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-013 |
| By: | Hannah Salzberger; Ben Höhn; Sven Bienert |
| Abstract: | The real estate sector is confronted by escalating physical climate risks due to more frequent and severe extreme weather events from ongoing climate change. These risks impact habitability, energy consumption, and maintenance costs, with regulatory pressures threatening asset valuation.Real estate assets that do not address climate risks and fail to adapt to the changing market demands towards sustainable and resilient properties may experience reduced attractiveness and competitiveness.While climates risks have evolved into a pivotal consideration in transaction due diligence and regulatory compliance, the existing tools for risk quantification frequently encounter criticism for their perceived lack of transparency and comparability, stemming from divergent results.In response to the challenges regarding quantifying physical climate risk this research evaluates current methods of quantifying physical climate risks in real estate, considering criteria such as database quality, quantification methodology, transparency, actuality, scope, and geographical suitability.The study employs a two-step approach, initially gathering qualitative data through extensive literature reviews and interviews with tool providers.In the subsequent phase, a quantitative analysis is undertaken using identified tools to assess the physical risk within a predetermined fictive pan-European real estate portfolio, containing approximately 360 assets.By synthesizing tool outcomes with qualitative insights, the research delves into hazards' predictability, country-specific differences, and evaluations of tool classes.Leveraging Ordinary Least Squares (OLS) regressions, the study further endeavors to categorize hazard contributions to predicted total asset loss, providing nuanced and comprehensive insights crucial for risk assessment in real estate decision-making.Overall, the study aims to make several contributions to the field, including an overview of available tools used by market participants, criteria for assessing climate risk tools (with a focus on the real estate industry), and identification of the strengths and weaknesses of different approaches. It is also determined whether an 'all-in-one' tool is efficient enough or whether a more reliable but time-consuming result is achieved by using specialized tools. Finally, it also provides guidance for financial decision-making. |
| Keywords: | Fictive Pan-European-Portfolio; Fiduciary Duty; Physical Climate Risk; Quantification Tools |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-069 |
| By: | Andy Forse (University of Portsmouth); Benjamin M. Drakeford (University of Portsmouth); Pierre Failler (University of Portsmouth) |
| Abstract: | Abandoned, lost or otherwise discarded fishing gear (ALDFG) poses a threat to sustainable fisheries management through environmental impacts including ghost fishing. Biodegradable fishing gear (BFG) has the potential to mitigate the ghost fishing impact of ALDFG however, fishing efficiency has been identified in various studies as one of the main limiting factors of BFG. We address the potential for higher market prices for BFG fish to offset the economic cost to fishers given the current technical shortcomings of BFG. We find that there is limited potential for BFG fish to achieve higher market prices, respondents were more likely to use the tag of ‘BFG fish’ as a factor to drive demand. Further research is, therefore, required to address the issues that culminate in reduced fishing efficiency and we conclude that BFG implementation is a technical problem and not an economic one. |
| Keywords: | Biodegradable fishing gear (BFG); Abandoned, lost or discarded fishing gear (ALDFG); Fisheries; Wholesale; Fishing efficiency |
| JEL: | Q18 Q22 Q56 |
| Date: | 2024–10–17 |
| URL: | https://d.repec.org/n?u=RePEc:pbs:ecofin:2024-06 |
| By: | Elvis K. Ofori (Taiyuan University of Technology, China); Festus V. Bekun (Istanbul, Turkey); Bright A. Gyamfi (Ä°stanbul Ticaret University, Turkey); Ali E. Baba (Ural Federal University, Russia); Stephen T. Onifade (KTO Karatay University, Konya, Turkey); Simplice A. Asongu (Johannesburg, South Africa) |
| Abstract: | The current study thus explored the impact of technological innovation and trade openness on clean energy while accounting for economic growth, access to electricity, pollution, industrial restructuring, and urbanization using data from 1990 to 2020 for both the MINT and BRICS economies. A series of test were performed for a robust analysis using second generation econometrics approaches before proceeding to investigate the long-run linkages between renewable energy and the duo of innovation and trade using the Prais-Winsten regression model with panel-corrected standard errors (PCSE) while the Driscoll-Kraay standard errors test was applied for robustness checks. The results, firstly confirm the presence of heterogeneity, cross-sectional dependence, and cointegration among the selected variables. Secondly, technological innovation as a renewable energy determinant demonstrated negative elasticities in both BRICS countries and the full sample, but a positive elasticity in the MINT countries. Thirdly, concerning trade liberalisation, negative elasticities were obtained for the full sample and MINT countries, while the elasticities were positive for the BRICS bloc. Fourthly, the roles of economic growth and environmental pollution reveal a negative impact on renewable energy consumption for all samples while urbanisation and industrial restructuring promote renewable energy developments only in the BRICS bloc. Policy implications are discussed. |
| Keywords: | Renewable energy, trade liberalization, technological innovation, Prais-Winsten regression |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/022 |
| By: | Youngho Chang (Singapore University of Social Sciences, SG); Ridwan D. Rusli (Technische Hochschule Köln, DE); Jackson The (Nanyang Technological University, SG) |
| Abstract: | The natural gas supply disruptions and European energy crisis following the Ukraine-Russia war and the West’s economic sanctions made energy security a top priority issue for the German government. We use the 4A framework of energy security to analyze Germany’s energy transition (“Energiewende”) over the last 20 years. While the acceptance of climate change policies is very high among its society and voters, affordability to energy consumers and availability of energy resources have steadily decreased in recent years. High feed-in tariffs and fuel taxes force German households to pay the highest electricity tariffs and among the highest fuel prices worldwide. More of the country’s fiscal capacity is required to support energy-intensive industries and fund energy subsidies. Exit from nuclear and coal electricity production necessitates increasing natural gas imports, requiring new LNG terminals, extensive collaboration with European neighbors and partially undermining the environmental benefits of the coal exit. Moreover, growth in renewables capacity has slowed down, hampered in part by local public resistance and increasing bureaucratic hurdles. The technological leadership of the country’s multinationals and SMEs has been challenged by increasingly sophisticated and efficient competitors, for example from China. To ensure Germany’s energy security the country must accelerate domestic renewables capacity and infrastructure, expand European gasand power interconnector investments and diversify its natural gas supply options. |
| Keywords: | Energy transition; Energy security; 4-A framework; Energiewende; Power interconnector investments; Diversification. |
| JEL: | Q41 Q42 Q48 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:24-09 |
| By: | Bruno Conte; Klaus Desmet; Esteban Rossi-Hansberg |
| Abstract: | Using a multisector dynamic spatial integrated assessment model (S-IAM), we argue that a carbon tax introduced by the European Union (EU) and rebated locally can, if not too large, increase the size of Europe’s economy by concentrating economic activity in its high-productivity non-agricultural core and by incentivizing immigration to the EU. The resulting change in the spatial distribution of economic activity improves global efficiency and welfare. A carbon tax introduced by the US generates similar effects. This stands in sharp contrast with standard models that ignore trade and migration in a world shaped by economic geography forces. |
| Keywords: | economic geography, climate change, carbon taxes |
| JEL: | R12 Q54 H23 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1464 |
| By: | Toyo A. M. Dossou (Abomey-Calavi, Benin); Dossou K. Pascal (Abomey-Calavi, Benin); Emmanuelle N. Kambaye (Chengdu, China.); Simplice A. Asongu (Johannesburg, South Africa); Alastaire S. Alinsato (Abomey-Calavi, Benin) |
| Abstract: | Although the impact of financial development on renewable energy consumption has been extensively examined in recent years, the study regarding the moderation of governance quality on the financial development on renewable energy consumption nexus is sparse. By filling the gap in the energy economics literature, this study investigates the moderating effect of governance quality on the relationship between financial development on renewable energy consumption for a panel of 33 African countries over the period 2000-2020. The fully modified ordinary least square (FMOLS) estimation techniques has been used to account for the cointegration and cross-sectional dependence, respectively. The results unveil that the impact of governance quality and financial development on renewable energy consumption is negative and statistically significant. Moreover, the results reveal that the FD-governance quality interactions are significant and negative. Governance quality thresholds at which the negative incidence of financial development on renewable energy consumption is completely nullified are 0.825; 2.15; 2.86; 3.52;3.36; and 0, 1, respectively. |
| Keywords: | Financial development, renewable energy consumption, governance quality, Africa |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/020 |
| By: | Samantha Gonsalves Wetherell; Anna Josephson |
| Abstract: | We examine the propensity of individuals to donate to climate activism, evaluating the impact of different informational treatments on an incentive compatible charitable donation and stated climate change-related concerns. Participants were evaluated on climate literacy and general climate attitudes before being randomly assigned to a treatment which provided either education or neutral language about climate change, either with or without images of protest. After the treatment, participants engaged in an incentive compatible dictator game. We find that participants gave more to climate activism than seen in previous dictator game and charitable giving experiments, in both average amount given and proportion of participants who gave their entire endowment. However, we determine that climate activism information negatively influenced the amount of money donated. We also found that protest imagery moderated this negative effect and had a positive significant effect of increasing participants' climate concern. Finally, we found that the climate concern was significantly positively correlated with donations, while being a male was significantly negatively associated with donation amounts. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.17378 |
| By: | Oguzhan Cepni (Ostim Technical University, Ankara, Turkiye; University of Edinburgh Business School, Centre for Business, Climate Change, and Sustainability; Department of Economics, Copenhagen Business School, Denmark); Luis A. Gil-Alana (Faculty of Economics and ICS, University of Navarra, E-31080 Pamplona, Spain; Universidad Francisco de Vitoria, Facultad de Ciencias Juridicas y Empresariales, Madrid, Spain); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa.); Onur Polat (Department of Public Finance, Bilecik Seyh Edebali University, Bilecik, Turkiye) |
| Abstract: | We estimate models of fractional integration to determine the degree of persistence for two recently developed metrics of carbon price uncertainty: the Carbon VIX and Carbon Implied Volatility (CIV) covering the period of the 1st week of September 2013 to the 4th week of December 2022. First, we find the two metrics to be highly persistent but depicting mean-reversion with long-memory. Second, time-varying (recursive) estimation revealed that the underlying persistence is on a downward trend. Third, we show that the recent declines in persistence of carbon price uncertainties is a result of declining carbon policy uncertainty, the metric of which we develop using aggregate information on squared surprises of carbon futures price of various maturities. Given that carbon price uncertainty has been shown to negatively affect decarbonization investments, our findings have important implications for the European Union Emissions Trading System (EU-ETS). |
| Keywords: | Carbon Price Uncertainty, Fractional Integration, Persistence, Regulatory Events, Carbon Policy Uncertainty |
| JEL: | C22 C32 D80 Q52 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:pre:wpaper:202446 |
| By: | Lucie Letrouit (AME-SPLOTT - Systèmes Productifs, Logistique, Organisation des Transports et Travail - Université Gustave Eiffel); Martin Koning (AME-SPLOTT - Systèmes Productifs, Logistique, Organisation des Transports et Travail - Université Gustave Eiffel) |
| Abstract: | Building on the exogenous shock linked with the first COVID-19 lockdown in France (March-May 2020), we propose an original approach relying on econometric modelling to estimate the impacts of road freight transport on the concentration of NO2, NOx and PM10 in Paris. We argue that this shock led to a significant change in the composition of road traffic, with an increase in the relative share of freight vehicles with respect to passenger cars, due to the combined exodus of numerous inhabitants, the prohibition of non-mandatory trips and the promotion of home-deliveries. As light-duty vehicles and trucks pollute more than passenger cars, we hypothesize that it led to a rise in the average emissions of pollutants per kilometer traveled in Paris. We confirm this assumption by applying a simple econometric analysis to a rich dataset containing hourly pollutant concentrations and hourly traffic flows recorded in various locations of the French capital city. Relying on the econometric results and on additional back-of-the-envelope computations, we propose tentative estimates of the health impacts of road freight transport. As compared to a counterfactual in which freight traffic in Paris would have declined in the same proportion as cars during the sanitary crisis, hence resulting in a larger decrease in pollutants concentrations, we conclude that around 6 lives have been lost. Crossing this estimate with the official value of statistical life in France, our central scenario approximates at 0.114 euro/vkm the excess external cost of the local pollution emitted by freight vehicles as compared to cars. |
| Keywords: | Road freight traffic, Air pollution, COVID-19 lockdown, Health, External cost |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04695669 |
| By: | Hunt Allcott; Reigner Kane; Maximilian S. Maydanchik; Joseph S. Shapiro; Felix Tintelnot |
| Abstract: | We study electric vehicle (EV) tax credits in the US Inflation Reduction Act (IRA), the largest climate policy in US history, with three goals. First, we provide the first ex-post microeconomic welfare analysis of this central component of the IRA. Event studies around changes in eligibility for EV tax credits find that short-run economic incidence falls largely on consumers. Additionally, domestic content restrictions on tax credits for purchased vehicles have driven enormous shifts to leasing. Our equilibrium model shows that compared to pre-IRA policy, IRA EV credits generated $1.87 of US benefits per dollar spent in 2023, at taxpayer cost of $32, 000 per additional EV sold. Compared to scenarios with no EV credits, however, the IRA EV credits created only $1.02 of benefits per dollar of government spending. Second, we characterize the gains from policies targeting heterogeneity in externalities across vehicles. We find that relative to uniform credits, differentiating credits across EVs according to their heterogeneous externalities would substantially increase policy benefits. Third, we quantify tradeoffs in the IRA EV credits between foreign and domestic welfare and between trade and the environment. We find that the IRA EV credits benefit the environment but undermine trade, since they decrease global carbon emissions but use profit shifting to decrease foreign producer surplus. A controversial IRA loophole that removes domestic content restrictions on tax credits for EV leases has negative domestic benefits. |
| JEL: | F18 H23 L11 Q58 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33032 |
| By: | Berle, Erika (UiS); Jørgensen, Kjell (BI); Ødegaard, Bernt Arne (University of Stavanger) |
| Abstract: | We investigate whether the sustainability profile of a firm affects the terms at which the firm list on a stock market. Given the evidence that sustainable firms have a lower cost of capital, we expect this to also be reflected in the issue terms at an IPO. The laboratory for our investigation is stock listings (IPOs) at Euronext Oslo. We find that firms which emphasize environmental issues (ESG) in their prospectus have lower implied cost of capital. We find no link between the degree of underpricing and ESG issues. We also provide evidence on recent changes in the IPO landscape, where pure listings are becoming more common, and stock exchanges introduce tiered markets that attract younger and smaller companies. |
| Keywords: | IPO; Cost of Capital; Underpricing; ESG; Euronext Oslo |
| JEL: | G12 G24 G30 |
| Date: | 2024–10–12 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:stavef:2024_001 |
| By: | Hang Gao; Shuohua Yang; Xinli Liu |
| Abstract: | Weather parametric insurance relies on weather indices rather than actual loss assessments, enhancing claims efficiency, reducing moral hazard, and improving fairness. In the context of increasing climate change risks, despite growing interest and demand, , weather parametric insurance's market share remains limited due to inherent basis risk, which is the mismatch between actual loss and payout, leading to loss without payout or payout without loss. This paper proposes a novel empirical research using Monte Carlo simulations to test whether basis risk can be managed through diversification and hedged like other risks. Key findings include: Firstly, portfolio basis risk and volatility decrease as the number of contracts increases. Secondly, spatial relationships significantly impact basis risk, with risk levels correlating with the ratio between insured location, weather station, and disaster footprint radius, and thirdly, event severity does not significantly impact basis risk, suggesting that catastrophic disaster severity should not hinder parametric insurance development. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.16599 |
| By: | Lester Lusher (Department of Economics, University of Pittsburgh); Tim Ruberg (Department of Economics, University of Hohenheim) |
| Abstract: | We utilize region-day variation in actual vs. forecasted wet bulb globe temperatures (i.e. forecasting errors) to investigate the effects of the first comprehensive heathealth warning system in Japan. We find that heat alerts led to an increase in heat stroke counts of 17%. An analysis of mechanisms utilizing several datasets suggests the effect is due to increased reporting, as opposed to potential “adverse†behaviors or substitution in health diagnoses. We further find that four times as many heat strokes are detected in low-income neighborhoods compared to high-income neighborhoods, highlighting severe environmental inequalities in health reporting behavior. |
| Keywords: | heat stroke, climate change, warning effectiveness, avoidance behavior |
| JEL: | D90 I12 I18 Q54 |
| Date: | 2024–09–08 |
| URL: | https://d.repec.org/n?u=RePEc:keo:dpaper:2024-020 |
| By: | Jeremy Lin; Alessio Saretto; Anastasia Shcherbakova |
| Abstract: | We use emergency outages of coal generators as an exogenous source of variation in the power generation stack to study how changes in marginal fuel affect real-time prices. Contrary to anecdotal evidence, we find that wholesale prices are less volatile when natural gas is on the margin more often. |
| Keywords: | policy; spillovers; electricity; price volatility; Fuel; Environmental policy |
| JEL: | Q41 |
| Date: | 2024–10–15 |
| URL: | https://d.repec.org/n?u=RePEc:fip:feddwp:98977 |
| By: | Ikefuji, Masako; Magnus, Jan R.; Vasnev, Andrey L. |
| Abstract: | In Bayesian theory, the data together with the prior produce a posterior. We show that it is also possible to follow the opposite route, that is, to use data and posterior information (both of which are observable) to reveal the prior (which is not observable). We then apply the theory to equilibrium climate sensitivity as reported by the Intergovernmental Panel on Climate Change in an attempt to get some insight into the prior beliefs of the IPCC scientists. It appears that the data contain much less information than one might think, due to the presence of correlation. We conclude that the prior in the fifth IPCC report was too low, and in the sixth report too high. |
| Keywords: | Revealed prior, climate sensitivity, data uncertainty, combining information, correlation; IPCC |
| JEL: | C11 C52 C83 Q54 |
| Date: | 2023–11–03 |
| URL: | https://d.repec.org/n?u=RePEc:syb:wpbsba:2123/31835 |
| By: | Kevin Andrew; Jevan Cherniwchan; Mamoon Kader; Hashmat Khan |
| Abstract: | The technique effect – the reduction in aggregate pollution emissions due to reductions in the pollution intensity of individual industries – is often interpreted as evidence that countries are getting cleaner because of improvements in how goods and services are produced. We extend the standard decomposition used in previous research to show the technique effect may also capture changes in the geography of economic activity. An empirical application to Canada suggests such changes may be economically important. While the technique effect decreased aggregate Canadian pollution intensity by 18.0% between 2009-2021, if the pollution intensity of production had remained fixed, within-industry shifts in production across Canada would have increased aggregate pollution intensity by over 11%. The technique effect decreased Canadian pollution intensity because these within-industry shifts were accompanied by reductions in pollution intensity that were greatest in provinces that received the largest within-industry reallocation of economic activity. |
| Keywords: | Pollution Decomposition; Technique Effect |
| JEL: | Q56 R11 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:mcm:deptwp:2024-08 |
| By: | Gale Boyd; Matthew Doolin; Yu Ma |
| Abstract: | Three basic pillars of industry-level decarbonization are energy efficiency, decarbonization of energy sources, and electrification. This paper provides estimates of a decomposition of these three components of carbon emissions by industry: energy intensity, carbon intensity of energy, and energy (fuel) mix. These estimates are constructed at the six-digit NAICS level from non-public, plant-level data collected by the Census Bureau. Four quintiles of the distribution of each of the three components are constructed, using multiple imputation (MI) to deal with non-reported energy variables in the Census data. MI allows the estimates to avoid non-reporting bias. MI also allows more six-digit NAICS to be estimated under Census non-disclosure rules, since dropping non-reported observations may have reduced the sample sizes unnecessarily. The estimates show wide variation in each of these three components of emissions (intensity) and provide a first empirical look into the plant-level variation that underlies carbon emissions. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:24-46 |
| By: | Bigelow Laboratory for Ocean Sciences; Interagency Working Group for Farming Seaweeds and Seagrasses; Editors:; Price, Nichole N.; Rexroad, Caird; Quigley, Charlotte; Stamieszkin, Karen; Langton, Richard; Sipler, Rachel |
| Abstract: | Excerpts from the report: In 2019, the United States Congress charged the Secretary of Agriculture, in coordination with the Administrator of the National Oceanic and Atmospheric Administration, to establish a working group to conduct a comprehensive evaluation of U.S. seaweeds and seagrass farming, describing its current state, its potential to drive economic growth through production of livestock feeds and other commercial applications, and improve ocean health through deacidification. USDA partnered with Bigelow Laboratory for Ocean Sciences (BLOS), a global research institution located in East Boothbay, Maine, for assistance in collecting public input, providing subject matter expertise, and drafting a report to fulfill the Congressional mandate. In accordance with the fiscal year (FY) 2019 U.S. congressional appropriations bill, section 770, this document reports on (1) how kelp and seagrasses could help deacidify the oceans; (2) how emerging ocean farming practices could use seaweeds and seagrasses to provide a feedstock for agriculture and other commercial and industrial seaweeds and seagrasses that study (A) ocean deacidification; (B) the production of a feedstock for agriculture; and (C) how to develop scalable commercial applications to support a blue economy. |
| Keywords: | Climate Change, Crop Production/Industries, Environmental Economics and Policy, International Relations/Trade, Livestock Production/Industries, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, Sustainability |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:usdami:347311 |
| By: | Mélanie Gittard (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Irène Hu (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | In the midst of Africa's mining boom, communities downstream from industrial mines face increased exposure to toxic waste. Yet, the effects of induced water pollution on the local population's health have not been quantified at the continental scale of Africa, due to data limitation and non-random exposure. This paper investigates this question using a new quasi-experimental design and a novel dataset detailing the location and opening dates of all known industrial mines, obtained through intensive manual data collection. We combine geo-coded information on 2, 016 industrial mines with health outcomes from the Demographic and Health Surveys (DHS) from 1986 to 2018 in 26 African countries. Through a staggered difference-in-difference strategy, we compare villages downstream and upstream of mines before and after their opening and find a 25% increase in 24-month mortality rates downstream. The effect is mainly observed among children who were no longer breastfed, confirming that water pollution drives the results. Our analysis rules out other mechanisms like fertility changes, access to facilities, in-migration, conflicts and income effects. The impact intensifies during mine operation and high international mineral prices, is higher in densely mined regions, and fades out with distance. From a public policy perspective, this paper underscores the significant local costs of mine openings on the environment and the health of the surrounding populations. |
| Keywords: | Health, Water Pollution, Natural Resource, Environmental Degradation, Africa, Industrial Mining |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:hal:ciredw:halshs-04685390 |
| By: | Andinet Woldemichael; Iyke Maduako |
| Abstract: | Housing represents the largest asset and liability, in the form of mortgages, on most national balance sheet. For most households it is their largest investment, and when mortgages are required also represents the largest component of household debt. It is also directly tied to financial markets, both the mortgage market and insurance sector. Although many countries have a rich set of housing censuses and statistics, others have large data gap in this area and therefore struggle to formulate effective policies. This paper proposes an approach to construct a global census of residential buildings using opensource satellite data. Such a layer can be used to assess the extent these buildings are exposed to climate hazards and how their production and consumption, in turn, affect the climate. The approach we propose could be scaled globally, combining existing layers of building footprints, climate and socioeconomic data. It adds to the ongoing effort of compiling spatially explicit and granular climate indicators to better inform policies. As a case study, we compute selected indicators and estimate the extent of residential properties exposure to riverine flood risk for Kenya. |
| Keywords: | Census of buildings; Climate Exposure; Building Footprint |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/204 |
| By: | Fulton, Lewis PhD |
| Abstract: | While hydrogen fuel-cell electric vehicles (FCEVs) are seen as a part of California’s efforts to decarbonize transportation, especially for the heavy-duty vehicle sector, their role remains unclear. This may change, however, with the launch of the California Alliance for Renewable Clean Energy Hydrogen Energy Systems (ARCHES) developed by the California Governor’s Office of Business and Economic Development (GO-Biz) as a public-private partnership. The U.S. Department of Energy and ARCHES recently signed a $12.6 billion agreement to build a clean, renewable Hydrogen Hub in California, including up to $1.2 billion in federal funding. The transportation sector will play a central role in this effort, including commitments to deploy 6, 000 FCEVs, mainly trucks and buses, along with 60 refueling stations and other investments. |
| Keywords: | Engineering |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt98x3b8tv |
| By: | Shreya Biswas; Upasak Das; Sandhya Garg (Institute of Economic Growth, Delhi) |
| Abstract: | Forests are vital for environmental and health benefits, making forest management a top priority for policymakers. Using datasetsthat combine remote sensing forest data and temporal state assembly election information, we investigate the role of graduate politicians in promoting growth of forest cover in India. We employ regression discontinuity design using close elections between graduate and non-graduate politicians to tease out the causal effects. Our findings reveal a significant increase in forest cover growth in constituencies led by graduate politicians. On exploring the reasons, we find that higher aggregate demand for forest products across the country can be one of the drivers of the increase in forest growth. This increase in forest growth also explains why constituencies led by educated politicians may tend to show higher growth in economic activity and exhibit increased employment opportunities in forest-related industries. Nevertheless, we also provide suggestive evidence highlighting the possbility of environmental awareness among educated leaders driving their forestation efforts |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:awe:wpaper:463 |
| By: | Guittard, Alice; Akinsete, Ebun; Demian, Elias; Koundouri, Phoebe; Papadaki, Lydia; Tombrou, Xenia |
| Abstract: | Marine litter is a worldwide issue affecting local communities with increasing environmental and economic impacts, with Single-Use-Plastic (SUP) pollution being of specific concern. The tourism industry has been identified as one of the major sector contributing to marine plastic pollution therefor in need to take urgent actions. Small islands are particularly vulnerable and need locally adapted strategies to effectively tackle this issue. This study proposes the use of a participative system-based approach to co-design, with local stakeholders, a roadmap tackling Single-Use-Plastic (SUP) in the hospitality industry of small touristic islands. The methodology was applied in small Greek islands in the Mediterranean Sea where lack of knowledge and awareness, limited financial resources and expertise, low efficiency of the waste management system were identified as the main challenges. Policy, industry, civil society and academia representatives were involved in a participative co-creation process to co-identify the best mix of policy instruments and innovation (social and technological) adapted to the local island context, capable of reducing plastic consumption and littering in the island while fostering behavioural change (from consumers and local businesses perspective).. A roadmap of actions, based on the Circular Economy reduce, reuse, recycle principles, including raising awareness actions, positive economic incentives, capacity building and partnership within the quadruple helix (academia, business, public authorities and civil society representatives), was co-developed, forming the basis of the municipal island free SUP strategy. The study provides 1) an innovative participatory methodology to tackle SUP issues replicable in various contexts, 2) evidences on key barriers to be overcome by the local tourism industry in small island communities to phase out SUP uses. |
| Keywords: | marine litter, participative approach, co-production, system thinking, single-use-plastic, island |
| JEL: | O2 O20 |
| Date: | 2022–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122106 |
| By: | Mélanie Gittard (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Western African Sahel faced severe droughts in the 1980s, affecting agricultural production and food security. In recent decades, farmers have faced uncertainty in the timing and amount of rainy seasons and are confronted with erratic rainfall with high interannual variations. Can the experience of past dry events reduce the vulnerability of households to short-term rainfall shocks? In this paper, I match three waves of panel household surveys focusing on agriculture in Nigeria (GHS, from 2010-2016) and high temporal resolution precipitation data set from the Climate Hazard Center (CHIRPS). I show evidence of the extreme importance of the long-dry period of the 1980s and identify more recent droughts in 2013/2015, which are in line with a change in the characteristics of the rainfall trends. Through a two-way-fixed effect strategy, I exploit the spatial variation of the exposition to the 2015 drought. First, I look at the short-term effects of being hit by a drought on agricultural production and food security indicators. I show that being hit by a drought decreases yields by 14%, and decreases the food diversity of households by around 1%. Second, I look at the impacts' heterogeneity according to the plot's experience, using the timing of the year of acquisition of the plot. I compare short-term droughts' effects on households that acquired their first plot before the 1980s dry period to those that acquired it after. Results suggest that acquiring the land before 1985 attenuates the harmful effects of a climate shock, as these particular households have only a 3% reduction in their yields due to the 2015 drought. This is especially the case when households were severely hit in the 1980s. This result might suggest that having a long-lasting experience under extreme dry events on cultivated land reduces vulnerability to rainfall variability. |
| Keywords: | Nigeria, Droughts, Climate Change, Agricultural Production, Adaptation |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:hal:ciredw:halshs-04685420 |
| By: | Hannan Vilchis Zubizarreta; Samuel Azasu; Elena Lacilla |
| Abstract: | Purpose - This paper aims to systematically analyze research on Environmental, Social, and Governance (ESG) practices and financial performance in the real estate sector, an area that has not yet been fully explored. The study focuses on evaluating how ESG factors affect financial and non-financial outcomes in real estate, considering the sector's unique dynamics and inherent complexities.Design/Methodology/Approach - The study utilized a systematic literature review guided by the PRISMA framework, ensuring a comprehensive and transparent analysis.Findings - The findings reveal a spectrum of associations between ESG practices and financial performance within the real estate sector, ranging from positive correlations to no significant impact, and occasionally, inverse effects. This variation in outcomes underscores the multifaceted nature of ESG impacts and the complex dynamics of the sector.We observed an increased interest in ESG after 2018. Geographically, the research is concentrated in developed markets, with a significant portion of studies emerging from North America and Europe.We also observed a notable variation in methodological approaches suggesting the need for a unified ESG framework, which could help to reconcile divergent interpretations of ESG's financial implications.Key unanswered questions that emerged from our analysis include: How do ESG practices influence the asset value in varying market conditions? What are the long-term financial impacts of ESG integration on real estate portfolios? How does investor demand for ESG compliance translate into real estate development and management practices?Originality/Value - The patterns and identifying pivotal researchers and topics, this review provides valuable insights into the sector's trajectory towards a more integrated ESG approach and suggests promising directions for future research. |
| Keywords: | Esg; Financial Performance; real estate; sustainability |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-134 |
| By: | Simplice A. Asongu (Johannesburg, South Africa); Samba Diop (Bambey, Senegal); Ekene ThankGod Emeka (University of Nigeria, Nsukka, Nigeria); Amarachi O. Ogbonna (Bengaluru Campus, India) |
| Abstract: | This study investigates how governance and infrastructure moderate the effect of natural resource rents on economic growth using a sample of 110 countries, including 47 African countries from 2000 to 2018. The empirical evidence is based on Panel Smooth Transition Regressions (PSTR). The following findings are established. First, the nexus between economic growth and natural resources is not linear and the underlying non-linearity is contingent on existing infrastructural and governance levels. Second, evidence of a “natural resource curse†is apparent in countries with extremely low levels of governance and infrastructural development. Third, the favorable effect of natural resources on economic growth requires a governance threshold of -1.210 and an infrastructure threshold of 2.583, indicating that countries with governance and infrastructure levels higher than these values tend to benefit much more from the wealth of natural resources. With high levels of the transition variables (governance and infrastructure), the established thresholds are low and situated between the 5thand the 10th percentiles. Countries identified below the established thresholds are mainly from Africa. Policy implications are discussed with specific emphasis on African countries. |
| Keywords: | Natural Resources; Economic Growth; Governance; Infrastructure; Threshold; Panel Smooth Transition Regressions; Generalised Method of Moments; Panel |
| JEL: | H10 Q20 Q30 O11 O55 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/027 |
| By: | Oumarou, Mohamadou; Sali, Oumarou; Hamadou, Alioum |
| Abstract: | Do natural resource endowments influence the relationship between economic growth and income inequality in Sub-Saharan African (SSA) countries? This is the main question of this article. To this end, we use polynomial non-linear modeling and non-parametric and semi-parametric modeling applied to a panel of 43 SSA countries between 2000 and 2020. The data used come from World Development Indicators (WDI) and the University of Texas Inequality Project. In order to enrich the empirical literature on the subject, four indices measure income inequality in the econometric tests. All other things being equal, the results show that the growth-inequality link is non-linear, with a positive trend that changes convexity with the level of growth. Rents from non-renewable natural resources (oil, gas and other minerals) accentuate the negative effect of growth on inequality, while income from renewable resources (water and forests) has the effect of reducing inequality. Furthermore, these results show that rents from a single product (a single natural resource) have no impact on inequality. On the other hand, income from the export of several natural resources accentuates the effect of growth on inequality. Consequently, SSA countries need to put in place a general policy to reduce inequalities and a strategy to reduce their dependence on the exploitation of natural resources. This can be achieved through the structural transformation of economies and the development of global value chains. |
| Date: | 2024–09–15 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:5sczh |
| By: | Moritz, Michael (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Czock, Berit Hanna (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Ruhnau, Oliver (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | To tackle climate change, residential heating must become climate-neutral. Which technology cost-efficiently achieves this goal is a complex question, given the heterogeneity of buildings and existing infrastructure, as well as the uncertainty regarding future energy prices and grid fees. This article aims to disentangle this complexity by comparing the future costs of various decentralized and centralized climate-neutral heating options. Using Germany as a case study, we calculate the future levelized cost of eleven heating technologies for different building and settlement types and a wide range of assumptions for uncertain parameters, such as energy prices and infrastructure costs. We find that electric heat pumps are most often the economical choice within the modeled range of inputs when they are deployed either decentrally, in rural areas, or centrally, with heating grids in more urban areas. Hydrogen boilers can also be cost-efficient, mainly in rural areas and in scenarios with low hydrogen prices and grid fees or high electricity grid fees. By contrast, heating with synthetic natural gas seems unlikely to be economical across our broad range of plausible input assumptions. |
| Keywords: | Infrastructure costs; Energy prices; Heat pumps; Hydrogen; Decarbonization; Technoeconomic analysis; Levelized costs of heating; Residential heating; Building energy |
| JEL: | D61 E61 Q40 Q42 Q48 |
| Date: | 2024–10–09 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:2024_005 |
| By: | Koundouri, Phoebe; Christantoni, Maria; Landis, Conrad; Loloni, Maria; Oikonomidis, Socratis; Plataniotis, Angelos |
| Abstract: | The paper consists of the application of the Koundouri et al (2023)’s methodology to integrate SDGs into the Sustainability Reporting Framework for the Case Study of Lavrio Port in Greece. This novel holistic framework consists of downscaling the UN SDSN Sustainable Development Report’s methodology to a corporate (private or public) level to support the transformation of the companies in line with the Corporate Sustainability Reporting Directive. The methodology builds on the ESG rating tool of the Hellenic Republic Asset Development Fund, the sole shareholder of the Port Authority of Lavrio, who had developed a thorough list of ESG Key performance Indicators to assess and support the sustainability performance of its portfolio. This framework is intended to provide a baseline for measuring sustainability performance of the Port of Lavrio, as it is undergoing a sustainability transformation employing a systems innovation approach. |
| Keywords: | SDGs, UN SDSN, Corporate Sustainability Reporting Directive, ESG, Hellenic Republic Asset Development Fund |
| JEL: | L0 O1 O2 O3 |
| Date: | 2023–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122008 |
| By: | Smida, Zaineb; Laurent, Thibault; Cucala, Lionel |
| Abstract: | A scan method for functional data indexed in space has been developed. The scan statistic is derived from the Hotelling test statistic for functional data, extending the univariate and multivariate Gaussian spatial scan statistics. This method consistently outperforms existing techniques in detecting and locating spatial clusters, as demonstrated through simulations. It has been applied to two types of real data: economic data in order to identify spatial clusters of abnormal unemployment rates in Spain and climatic data in order to detect unusual climate change patterns in Great Britain, Nigeria, Pakistan, and Venezuela. |
| Keywords: | Cluster detection, Functional data, Hotelling T2 test, Spatial Scan statistic. |
| JEL: | C12 C21 E24 Q54 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:129819 |
| By: | Ezio Micelli; Giulia Giliberto; Eleonora Righetto; Greta Tafuri |
| Abstract: | The international commitment to the energy transition of the housing stock is essential to meet the global challenges of decarbonisation and reduce CO2 emissions. The building sector is responsible for 40% of fossil fuel consumption and 30% of CO2 emissions, making energy performance upgrades urgent. Recent research highlights the impact of energy performance on property value, revealing inequalities related to energy efficiency. The research investigates whether highly efficient homes present a premium price over less efficient ones and whether this premium differs according to the city's size and vibrancy of the housing market. The study focuses on six Italian cities, three metropolitans (Milan, Turin, and Florence) and three medium-sized (Padua, Mestre, and Bergamo), analysing over 2, 935 ask prices. The methodology employs the Hedonic Price Model to estimate the premium price related to different energy performance levels. The results show a market segmentation according to energy efficiency, with premium prices converging in medium-sized and metropolitan cities. The average gap between high-efficiency properties (class A) and low-efficiency properties (class G) is about 30% for medium-sized cities, narrowing to 14% between class D and class G properties. For metropolitan cities, the average gap between high-efficiency properties (class A) and low-efficiency properties (class G) is about 15%, decreasing to 6% between class D properties compared to class G properties.The findings highlight a higher depreciation in properties in less active medium-sized cities compared to those in more dynamic metropolitan areas. Metropolitan cities seem to be less affected by their position in the EPC ranking, while the energy transition shows more significant effects in medium-sized cities. This implies a possible additional difficulty for struggling territories, accentuating social and economical inequalities. |
| Keywords: | Built Environment; Energy transition; Hedonic Prices; Real Estate Market |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-123 |
| By: | Gorn, Anne-Katrin; Barissoul, Ayoub; Wieck, Christine |
| Abstract: | The CAP monitoring framework includes a wide range of policy indicators, covering output, results, context, and impact. In environmental policy sciences, the complexities of analysing policy instruments and indicators are well known and techniques like statistical pattern analysis and grouping indicators into "umbrella" or composite indicators are recommended to simplify analysis. These methods are less common in agricultural economics and political sciences. This working paper investigates methods for constructing umbrella indicators and presents a literature-based roadmap for their application to the CAP indicators. It demonstrates that these methods can be successfully applied not only in other scientific fields but also to CAP indicators. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:ags:uhgewp:347465 |
| By: | Louise Bernard; Andy Hackett; Robert D. Metcalfe; Andrew Schein |
| Abstract: | Heat pumps have been proposed as the leading technology in the electrification of domestic heat and therefore could play a crucial part in the transition to low-carbon energy systems. However, there is very little causal evidence of the impact of heat pumps on energy demand and the impact of marginal prices to help optimize energy demand with heat pumps. We leverage a staggered roll-out of heat pumps from Octopus Energy Group to show that: (1) heat pumps have a large impact on energy demand, on average causing a 90% reduction in home gas use and a 61% increase in home electricity use – overall, households reduced total energy demand by 40% and carbon dioxide emissions by 36% in 2024 (with an average of 68% emissions savings over the lifetime of the heat pump); (2) a time-of-use tariff designed for heat pumps can provide large demand flexibility benefits, halving electricity consumption during the evening peak to help balance the grid, and that load shifting is possible on the coldest days and from all building types in our sample; (3) the marginal value of public funds of the current UK heat pump subsidy is £1.24 (for every £1 spent by the Government). Overall, we find that heat pumps can meaningfully decarbonize heat and subsidies to encourage heat pumps can be welfare-enhancing. |
| JEL: | H2 Q40 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33036 |
| By: | Kamelamela, Katie L.; Chamberlain, James; Lehman, Ashley D.; Sprecher, Irene; Friday, James B.; Ticktin, Tamara |
| Abstract: | The Hawaiian Islands are an isolated archipelago in the Pacific Ocean with diverse forests covering 1.5 million ac—36 percent of Hawaiʻi’s total land area. These forests produce wood for local use and support trade, yet large-scale timber production has never been significant in Hawaiʻi. In contrast, nontimber forest products (NTFPs), have been foundational to the culture and economy of the state throughout history and continue to be elemental to contemporary society. The rich variety of NTFPs sourced from Hawaiian forests can be observed at diverse social events and informal gatherings. Species used as NTFPs are harvested for a wide range of reasons, including food, medicine, art, textiles, floral garments, floral displays, weaving, and cultural ceremonies. They are harvested and used by people of all ages and socioeconomic classes and support cultural heritage, identity, and connection to nature. Despite these values, there is little information on the reliance, variety, and amounts of NTFPs harvested from Hawaiian forests. Documenting the types, amounts, spatial distribution of harvesting, and current and projected demand and uses for NTFPs is critical to understanding the management needs of these forests and their social, ecological, and economic values to Hawaiʻi residents. This study used multiple methods to document NTFPs, their uses, and significance. Methods included summarizing state collection permits, interviewing and surveying stakeholders, and observing uses at cultural events. We identified more than 140 plant species harvested and used as NTFPs. Thirty-eight percent were native or endemic to Hawaiʻi. Almost all the permits issued by the state were for personal use. Interviews and surveys indicated a strong link between product use and people’s connections to spiritual values, cultural rights, and the land. We found that endemic species, such as maile (Alyxia stellata), palapalai (Microlepia strigosa), ʻōhiʻa lehua (Metrosideros polymorpha), and koa (Acacia koa) had high market value, were under extreme pressure, and would benefit as priority targets for management, conservation, and nature-based development. Findings from this study could guide management plans and actions to conserve Hawaiʻi’s vast forest diversity and cultural economy. |
| Keywords: | Land Economics/Use, Marketing, Resource /Energy Economics and Policy, Sustainability |
| Date: | 2023–09 |
| URL: | https://d.repec.org/n?u=RePEc:ags:usdami:347426 |
| By: | Ha Nguyen; Samuel Pienknagura |
| Abstract: | Using quarterly temperature and sectoral value-added data for a large sample of advanced economies (AEs) and emerging markets and developing economies (EMDEs), this paper uncovers nuanced effects of temperature on economic activity. For EMDEs, hotter spring and summer temperatures reduce growth in real value-added of manufacturing, and most significantly, of agriculture, while a warmer winter boosts it. For advanced countries (AEs), a hotter spring hurts growth in real value-added of all considered sectors: services, manufacturing and agriculture. For both country groups, the negative effect of a hotter spring is larger and more persistent than the positive effect of a warmer winter. Furthermore, the adverse impacts of hotter temperatures in advanced economies have accentuated in recent decades. This result suggests increased vulnerability to rising temperatures. |
| Keywords: | climate change; temperature; economic growth; agriculture |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/202 |
| By: | Nan Liu; Norman Hutchison; Yuanyuan Zhao; Bowen Yan |
| Abstract: | There is a gap in the existing environment, social and governance (ESG) literature in the real estate sector, where occupier characteristics with respect to ESG are overlooked. The paper investigates the relationship between the characteristics of occupiers of commercial real estate and their choice over sustainable labelled buildings, evaluates the bargaining power of tenants with different ESG agendas; and examines the potential impacts of regulation on minimum energy performance and the Covid pandemic on the relationships between occupiers’ characteristics, choice of building and rent determination.This project focuses on the London office and use lease transactions from CoStar (www.CoStar.co.uk) and occupiers’ ESG scores from Refinitiv (www.refinitive.com) from 2002 to 2022. Our empirical results show that publicly listed tenants, who are more likely to disclose their Corporate Social Responsibility (CSR) policies and therefore more likely to be ESG-conscious, are more likely to occupy a sustainable labelled (such as BREEAM certified) space. Tenants with stronger emphasis on governance (i.e., higher G pillar scores) are also more likely to choose a BREEAM certified office space. Our hedonic modelling results confirm a BREEAM related rental premium of around 9% on average in the London office market. However, this sustainable label related premium, is lower among listed firms. The introduction of minimum energy performance regulation seems to have increased listed firms bargaining power in rent negotiation due to the increased supply of more sustainable buildings. Listed firms’ bargaining power also is shown to be stronger during Covid period, as the demand for office spaces significantly reduced. Tenants’ overall ESG scores do not appear to affect effective rent they pay in the hedonic estimation, while separate scores on the ‘Social’ and ‘Governance’ pillars do seem to affect effective rent during the Covid period.This paper differs from previous ESG studies in real estate by providing further insights into occupier’s demand and covenant strength that are related to their ESG agenda, and thereby contributes to the sustainability and the ‘net zero’ debate by providing further insights from the occupiers’ perspective. It sheds light on landlord-tenant relationships and the changing occupier role in the context of ESG. The quantitative analysis and results will have direct implications to real estate investors, real estate managers, developers, occupiers, and policy makers who influence the supply and demand of commercial spaces. |
| Keywords: | ESG, Occupiers, Office market |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-031 |
| By: | Afia Malik (Pakistan Institute of Development Economics); Ayesha Rehman (Young Researcher Development Intern, RASTA-PIDE) |
| Abstract: | Net metering (NM)—an effective tool to meet carbon emission target. No transmission requirement, no losses, no large investments required, and no exposure to dollar fluctuations. It can be a source of carbon credits through a comprehensive policy overhaul. NM is not reducing demand, but commercial load shedding, slow economic activity, and tariff escalation is. The financial impact of distribution losses is much higher—in FY23, distribution losses were 22286 GWh, exceeding NM exported units of 482 GWh. There is no evidence to support the claim that consumers without NM are subsidizing NM consumers. Do revise NM policy/ regulation but upgrade the grid infrastructure first. Enhance grid monitoring through automated metering infrastructure to check the misuse of this facility. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pid:kbrief:2024:124 |
| By: | Kane, Papa Abdoulaye; Barry, Mamadou Bobo; Eissler, Sarah; Tall, Thiané; Camara, Astou Diao; Sall, Moussa; Fass, Simone; Bryan, Elizabeth; Ringler, Claudia |
| Abstract: | Goats are an important source of income, nutrition and resilience in Senegal. This study assesses opportunities to strengthen women’s agency, increase resilience to climate change, and improve nutrition along the various stages of goat value chains from the acquisition of feed resources and other inputs to processing, marketing and consumption of various goat products. The qualitative study finds that even though goats are more climate resilient than other livestock, climate change impacts on goat production and productivity are increasingly felt, particularly through impacts on feed resources. The study identified opportunities to strengthen women’s roles along the goat value chain, particularly in goat production and, to a lesser extent, in processing of goat products. Women and their families also benefit from the consumption of goat milk and women have some degree of control over income from the sale of goat products. Strengthening women’s agency in these nutrient-rich and relatively climate-resilient value chains will require improving their access to land resources and better animal feeds, supporting women’s groups and building women’s capacity for processing and marketing goat products, improving access to electricity for cold storage of goat products, and raising awareness regarding the nutritional benefits of goat products, especially for women and children. |
| Keywords: | climate change; goats; nutrition; climate resilience; value chains; women’s empowerment; gender; Africa; Western Africa; Senegal |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:ifprid:2274 |
| By: | Erwin Heurkens |
| Abstract: | Real estate practice is subject to constant changes due to related economic, societal and environmental transitions, such as circular economy, sustainable mobility and renewable energy, that need to be taken into account when shaping the built environment. As a result, there is a growing need among public and private real estate professionals to understand the wickedness of the challenges ahead, and to develop leadership skills and appropriate courses of action to realize resilient urban real estate projects. For professional organizations and individual practitioners it increasingly becomes evident that lifelong learning is an much needed investment and effective strategy to obtain state-of-the-art knowledge and to create transdisciplinary learning experiences enabling them to adapt to the changing circumstances and to create positive societal impact. Real estate educators increasingly will face the challenge to accommodate life learning needs and extend the traditional bachelor and master course with a variety of courses aimed at educating professionals. This paper addresses the substantive and didactic principles applied in the curriculum renewal of a Dutch post-master program Master City Developer (MCD), aimed at educating planning and real estate practitioners for the challenging job ahead. This two-year professional education program is organized by Erasmus University Rotterdam and Delft University of Technology with the aim to educate practitioners to strategically lead urban development projects. The current 20th course has seen a substantial curriculum change as part of an externally financed renewal project. The renewed course structure is based on ten consecutive modules, focusing on economy, transitions, governance, investment and finance, strategy and design, transformation, law, international development, research methods, and thesis. A major content shift involves the introduction of the urban transitions module, focusing on understanding spatial-economic implications of the mobility and energy transition within various scenarios. Moreover two new modules are added. The urban transformation module support students to understand, create and apply integrative strategies to complex inner-city transformation projects. The urban law module deepens the student’s knowledge on contemporary spatial legislation and contractual law methods that assist them to effectively collaborate on planning and realizing urban projects. Besides the substantive change, various didactic principles and learning methods are introduced resonating with the latest academic insights on lifelong professional education: blended-learning, case-based learning, student-centred learning. Blended-learning involves purposely linking the weekly interactive face-to-face meetings with student flexible self-study preparations via diverse online learning materials including theme-based videos, self-assessment, and peer-to-peer assignments. Case-based learning evolves around studying one critical urban development case per module from specific theoretical perspectives, aimed at enhancing the student’s ability to critically compare practices in order to construct and apply management concepts and strategies for their own job. Student-centred earning factors in the growing need among professionals for relevant personal leadership skills, which is given shape by a personal development trajectory aimed at individual and collective reflective learning at the intersection of study and practice. |
| Keywords: | curriculum renewal; lifelong learning; professional education; Urban Development |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-040 |
| By: | Elvis D. Achuo (Dschang, Cameroon); Simplice A. Asongu (Johannesburg, South Africa) |
| Abstract: | Despite the global resolve to ensure the availability and sustainable management of water and sanitation, several people across the world still have very limited or no access to basic drinking water, sanitation and hygiene (WASH) services. Therefore, this study primarily examined the effect of public spending on WASH adoption. The moderating role of governance quality in the nexus among public spending and WASH adoption was equally assessed. The underlying relationships for a global panel of 45 countries over the 2000-2022 period are unravelled with the help of the system Generalised Method of Moments, Driscoll-Kraay robust standard errors and the generalised least squares estimation techniques. Results from various approaches show that public spending has a statistically significant negative effect on WASH adoption. Moreover, the interactive regressions show that public spending negatively interacts with governance to produce a negative net effect of -0.319. The underlying negative effects are apparent when some governance thresholds are exceeded. These thresholds are critical points that when reached, complementary policies are needed in order to maintain the unconditional positive effect of public spending on WASH adoption. It follows that the complementarity between public spending and governance is a sufficient and necessary condition for the promotion of WASH adoption exclusively below certain governance thresholds. Contingent on the empirical results, policymakers are advised to tailor public spending to more conveniently target local-based WASH initiatives in order to limit bureaucracy and broad-based policies. Besides, the local population should be endowed with the ability to sanction elected officials when WASH measures are not effectively implemented. Beyond the economic and political governance consideration related to WASH, institutional governance should also be improved at the local level, to the extent that ensuring the respect of interactions between the citizens and the State in the promotion of WASH is also enforced at the local level. |
| Keywords: | Public spending, Drinking water, Sanitation, Hygiene, Governance quality, WASH adoption |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/030 |
| By: | Laura E. McCann; Jeffrey D. Michler; Maybin Mwangala; Osaretin Olurotimi; Natalia Estrada Carmona |
| Abstract: | Population pressure is speeding the rate of deforestation in Sub-Saharan Africa, increasing the cost of biomass cooking fuel, which over 80 percent of the population relies upon. Higher energy input costs for meal preparation command a larger portion of household spending which in turn induces families to focus their diet on quick cooking staples. We use a field experiment in Zambia to investigate the impact of solar cook stoves on meal preparation choices and expenditures on biomass fuel. Participants kept a detailed food diary recording every ingredient and fuel source used in preparing every dish at every meal for every day during the six weeks of the experiment. This produces a data set of 93, 606 ingredients used in the preparation of 30, 314 dishes. While treated households used the solar stoves to prepare around 40 percent of their dishes, the solar stove treatment did not significantly increase measures of nutritional diversity nor did treated households increase the number of dishes per meal or reduce the number of meals they skipped. However, treated households significantly reduced the amount of time and money spent on obtaining fuel for cooking. These results suggest that solar stoves, while not changing a household's dietary composition, does relax cooking fuel constraints, allowing households to prepare more meals by reducing the share of household expenditure that goes to meal preparation. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.02075 |
| By: | Wichman, Casey (Resources for the Future) |
| Abstract: | Municipal water utilities choose rates to recover costs, encourage conservation, and reduce burdens on low-income customers, which may deviate from optimal two-part tariffs. Theory suggests that prices should equal marginal cost with fixed costs recovered via fixed fees or alternative tax revenues. Using rate structure and municipal finance data for more than 700 utilities, I show that prices are discounted severely for low levels of consumption within nonlinear rate structures, leading to suboptimal usage and budget deficits, particularly in poorer and smaller communities. Marginal-cost pricing corrects allocative inefficiencies, and equity and cost-recovery goals can be achieved through more progressive approaches to fixed costs, which are both highly regressive and a large share of total costs.Key Words: water pricing; utility management; natural monopolies; two-part tariffs; nonlinear pricing; affordability; municipal finance.JEL codes: D12, H23, L95, Q25 |
| Date: | 2024–10–15 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-24-18 |
| By: | Si-yao Wei; Wei-xing Zhou |
| Abstract: | Resilience serves to assess the ability of financial markets to resist external shocks. The intensity and duration, used to indicate resilience, are calculated for China's financial markets in this paper, focusing on the performance of each financial market during and after several crises. Given that climate issues have been recognized as an important source of risk by financial markets, we also investigate the spillover effects and mechanism of China's climate policy uncertainty on its financial markets resilience. We have found that the two resilience indicators of each market have a relatively consistent trend, but spillovers among markets have different sensitivities to the both. In addition, China's climate policy uncertainty shocks its financial markets resilience by increasing the investor sentiment index and the non-performing loan ratio of commercial banks and by reducing the capital and financial account balance. It is further found that China's financial markets' consensus on the unswerving implementation of climate policy, which provides the reference for other countries on how to balance climate policies introduction and financial markets development. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.18422 |
| By: | Anna Wojewnik-Filipkowska |
| Abstract: | Measuring development is challenging. Stiglitz, Fitoussi and Durand point out (Beyond GDP. Measuring What Counts for Economic and Social Performance, OECD, Paris 2019) that new measures are needed to help protect people from possible shocks, and restore a sense of security and trust in anti-crisis policies. It is also necessary to change the way we think about what is a component of well-being. The subject of the research is the city as an organization, the phenomenon which is a home for almost 60% of the population. The work is based on the following assumptions:Organizations can be thought of as a system, which means that the connections between the components of the system must be taken into account when making changes to the organization.All organizations operate under the influence of the environment, therefore problems related to functioning and development must be considered taking into account the relationship with the economic, social, political, and natural environment.The condition for the survival and development of an organization is the ability to learn and adapt to the anticipated internal and external changes determining the operating conditions.Cities can be analyzed and described using the concepts of Sustainable City, Smart City, and Resilient City. The main objective of this paper is to develop and present the "Fundamental Power of the City" index – a tool for strategic diagnosis and monitoring of city development, where the fundamental power of the city is a synthesis of the concept of a sustainable, intelligent, and resilient city. Research methods include literature analysis and synthesis, and design method. |
| Keywords: | Resilience; Smart City; Sustainable Development |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-130 |
| By: | Edda Donati |
| Abstract: | This study will analyze two of the most important sustainable business models in the construction sector, namely the One-stop shop and the Turnkey contract. The aim is to identify the elements which characterize each model, as well as their similar economic profiles.Since the early 1990s, the growing environmental awareness and the several directives issued by the European Union have led the different states to promote subsidies, tax rebates and sustainable business models aimed at reducing emissions and promoting sustainability in the construction sector.The One-stop shop model, which was developed following Directive 2018/844/EU, consists of a physical or virtual reference point where owners can access all the necessary information and services in order for their service providers to carry out the renovation projects. The Turnkey contract, on the other hand, is characterized by a contract whereby a single contractor warrants and provides all the premises, structures, tools, materials and operating personnel necessary for the completion and commissioning of the project. The main difference between the two models lies in the objective: while the One-stop shop focuses on improving the efficiency of existing properties, the Turnkey contract is instead intended for the construction of new buildings.The research is carried out in three phases, which entail: i) the collection of European case studies on the improvement of efficiency or new construction of real estate through these business models; ii) an exploratory analysis using Multiple Correspondence Analysis (MCA) in order to identify associations between variables in the dataset related to both the applied business model and the improved/constructed real estate; iii) a cluster analysis using the k-modes algorithm in order to define the economic profiles associated with the One-stop shop and Turnkey contract models.The research, therefore, aims to describe in detail two of the most used sustainable business models in the construction sector, as well as to illustrate how their application depends not only on energy-related factors, but also on economic and social factors that are characteristic of each European country. |
| Keywords: | Economic Profiles; One-stop shop business model; Sustainable business model; Turnkey contract business model |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-018 |
| By: | - |
| Abstract: | La Red de los Sistemas Nacionales de Inversión Pública (Red SNIP) es un espacio de intercambio de experiencias, conocimientos, buenas prácticas y herramientas entre los Sistemas Nacionales de Inversión Pública de América Latina y el Caribe. Participan actualmente 16 países y cuenta con el apoyo de la Comisión Económica para América Latina y el Caribe (CEPAL), a través de su Instituto Latinoamericano y del Caribe de Planificación Económica y Social (ILPES), el Banco Interamericano de Desarrollo (BID) y la Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). Desde su creación en 2011, la Red SNIP se ha convertido en un punto de encuentro y discusión de temas relacionados con la institucionalidad, gestión, metodologías y ejecución de la inversión pública y su importancia para alcanzar un desarrollo más sostenible e inclusivo. Este documento presenta los resúmenes de las intervenciones realizadas en el Undécimo Seminario de la Red de Sistemas Nacionales de Inversión Pública de América Latina y el Caribe (Red SNIP), celebrado los días 4 y 5 de octubre de 2023 en Lima, bajo los auspicios del Ministerio de Economía y Finanzas (MEF) del Perú. El seminario tuvo como objetivo favorecer el intercambio y la discusión entre los países de América Latina y el Caribe, en torno a experiencias e iniciativas que permiten mejorar la eficacia en la planificación y ejecución de los proyectos de inversión, considerando aspectos institucionales, metodológicos y técnicos, con especial atención en la sostenibilidad y en la gestión del riesgo de desastres asociados al cambio climático. En las presentaciones que aquí se resumen se abordaron los desafíos para impulsar una inversión pública innovadora y de calidad, los arreglos institucionales necesarios para la gestión eficiente de la inversión pública, incluido el seguimiento a la ejecución oportuna, metodologías de priorización de inversiones con criterios climáticos, así como el uso de las tecnologías de la información en la gestión de la inversión pública. |
| Date: | 2024–07–29 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col043:80561 |
| By: | Gwenolé Le Velly (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - 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); Philippe Delacote (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEC - Chaire Economie du Climat - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres); Rachel E Golden Kroner (Betty and Gordon Moore Center for Science and Oceans, World Wildlife Fund - R.N.I. Lago Preola e Gorghi Tondi); Derya Keles (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Chaire économie du climat - Chaire économie du climat); Alexander Pfaff (Duke University [Durham]) |
| Abstract: | Despite global calls to raise protection for nature, efforts proliferate to reduce the extent of, and restrictions in, protected areas (PAs) via legal changes to downgrade, downsize, or degazette PAs (PADDD). Protected area downgrading, downsizing, and degazettement studies have considered the tropics, despite significant data and relevance for the Global North, and focused on fixed proxies for economic opportunity cost. Given important political dynamics, we focus instead on the U.S. and shifts in political representation. We examine 2001-2018 federal PADDD events in the U.S., using panel data to control for all fixed factors. We study how elections that shift representatives and senators affect U.S. PADDD. Indeed, shifts at district, state, and national levels appear to influence PADDD. Specifically, shifts that put Republicans into office raised risks for PADDD events, especially proposals. Our empirical results highlight shifts in political power as an ongoing challenge to conservation, even after the establishment of protected areas. |
| Keywords: | conservation policy, elections, political economy, protected areas, United States |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04704372 |
| By: | Abdullah Yavas; Lu Fang; Lingxiao Li; David Scofield |
| Abstract: | We study how hurricane-related climate risk affects the commercial real estate (CRE) market using hurricane Sandy as an example. We introduce an ex-post climate risk measurement for CRE assets by supplementing a sample of CRE transactions in the New York Metropolitan Area before and post Sandy with a dataset containing detailed assessments of the severity of the storm-related damage and flooding. Among the four major types of CRE assets including offices, retail stores, warehouses, and apartments, we only document a significant and negative price impact by Sandy to offices, whereas no significant effect on the value of other CRE types. Specifically, we find robust evidence that unaffected office assets surrounded by severely damaged properties within proximity experienced a significant price penalty for four years following the storm. Meanwhile, we did not find any significant price impact on unaffected office assets with moderately damaged properties or flooded properties nearby. Additionally, it seems that the documented price penalty to unaffected office assets located in most severely damaged neighborhoods is mainly driven by a decline in building occupancy. We attribute the differential impact of Sandy on office and other CRE to the increase in remote work for office employees triggered by Sandy. We also note that the absence of any impact of Sandy on other CRE, including apartments, compared to significant and negative impact on single family homes reported in earlier studies (Fang et al. 2023) is an indication of more rational expectations and pricing in the commercial space. |
| Keywords: | Commercial; Hurricane; rationa.; Valuation |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-088 |
| By: | Jolanta Panas; Gabriel Gówka; Anna Grygiel-Tomaszewska |
| Abstract: | Purpose – The purpose of this study was to analyze how ESG criteria are implementing in allocation decision-making processes assets by real estate investment funds in Poland.Design/methodology/approach – As part of the research project entitled Quality of management of ESG aspects and resilient to crises. Enterprises - financial institutions - local government, planned for 2022-2024 at the Collegium of Business Administration at the SGH Warsaw School of Economics, the focus was on how ESG factors are understood by various economic entities from both the private and public sectors. The researched entities were represented by companies listed on the Warsaw Stock Exchange, financial institutions, in particular, investment funds focused on investing in securities and funds investing in real estate, and local government units. The interdisciplinary research team was divided into research groups depending on the type of entity being the subject of the research. Empirical research was conducted in November / December 2022 in the form of focus group interviews divided into the entities under study. The following section presents detailed conclusions from focus group interviews conducted among selected real estate funds. To the research group in the context of real estate funds, consisted of representatives, among others: asset managers of real estate funds who decide on the selection of real estate for investment portfolios, risk managers, managers responsible for creating products and managers responsible for compliance.Findings – The multi-faceted nature and complexity of the ESG issue is reflected in the broad impact of the issue of sustainable development on the functioning of the entire economy, on the functioning of the real estate sector due to the resource-intensity and emission-intensity of buildings. The results of the above-described research among real estate funds indicate that nowadays ESG factors constitute a key challenge for real estate portfolio managers.Research limitations/implications – Currently, the most important contribution to drawing attention to the need to apply the ESG concept are EU cascading regulations regarding the activities of individual groups of entities. The examined entities face numerous challenges, including: such as: the need to learn and understand changes in regulations and requirements of key stakeholder groups in the field of non-financial aspects of management, awareness of opportunities for sustainable transformation in the context of ESG or developing appropriate competences to use them.Practical implications – From the conducted research, it can be clearly stated that real estate fund managers are striving to create a standardized assessment of real estate sustainability because the expected future value of investment portfolios depends on the degree of their sustainability.Originality/value – The research has tracked how ESG criteria are implementing in allocation decision-making processes assets by real estate investment funds in Poland. The real estate funds participating in the described study are in the initial phase of ESG transformation, at the same time, the people representing them are highly aware of the importance of ESG issues for the entities they represent. In the near future, further identification of criteria should be expected to assess the potential benefits resulting from compliance with ESG requirements by entities from the real estate sector as well as closely related sectors. |
| Keywords: | Esg; Poland; real estate; Sustainable Assessment |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-068 |
| By: | David Kreitmeir (Monash University) |
| Abstract: | Over the past two decades, violence against land and environmental activists has been on the rise, besetting even stable democracies. Using a unique, fine-grained data set on social conflict events in Peru and exogenous variation in world mineral prices, I document a strong link between local mineral rents and violent state repression of socioenvironmental protests in a democratic institutional setting. I show that the increase in the use of excessive force cannot be explained by changes in protester behavior. Empirical findings highlight the role of local authorities: the election of a pro-mining mayor is associated with a higher prevalence of state repression and corruption in the constituency. The legal and democratic accountability of local authorities is, however, found to be limited. The reported increase in corruption does not translate into more investigations against pro-mining mayors for corruption offenses nor are reelection results of incumbents found to be negatively affected by state violence against protesters. Finally, I show that violent state repression is successful in forestalling conflict resolution agreements that acknowledge protesters’ demands. |
| Keywords: | Resource curse, mining, social conflict, state repression, civil society |
| JEL: | D74 H7 O13 O16 P16 Q34 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ajr:sodwps:2024-05 |
| By: | Wegener, Christoph; Kruse-Becher, Robinson; Klein, Tony |
| JEL: | C12 G14 Q01 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302359 |
| By: | Mr. Serhan Cevik |
| Abstract: | Lithuania’s immediate fiscal challenges are national security and higher costs of borrowing, but fiscal prospects are further exacerbated by long-term pressures stemming from climate change and a shrinking and aging population. The country has experienced a rapidly decreasing population—from 3.7 million in 1991 to 2.8 million in 2023—and its old-age dependency ratio is consequently expected to increase from 33 percent in 2023 to 53.4 percent by 2050. The resulting long-term spending pressures are projected to amount to as much as 11.2 percent of GDP, which is about 30 percent of the current level of spending. Debt sustainability concerns would not allow financing additional spending with more debt. Hence, a comprehensive strategy will help address these long-term fiscal challenges, including tax policy changes to raise additional revenue while primarily reducing expenditure needs through pension and healthcare reforms. |
| Keywords: | Military spending; interest rates; climate change; demographics; pension; healthcare; tax policy; fiscal sustainability; Lithuania |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/201 |
| By: | Costas Arkolakis; Conor Walsh |
| Abstract: | In this paper we assess the economic impacts of moving to a renewable-dominated grid in the US. We use projections of capital costs to develop price bounds on future wholesale power prices at the local geographic level. We then use a class of spatial general equilibrium models to estimate the effect on wages and output of prices falling below these bounds in the medium term. Power prices fall anywhere between 20% and 80%, depending on local solar resources, leading to an aggregate real wage gain of 2-3%. Over the longer term, we show how moving to clean power represents a qualitative change in the aggregate growth process, alleviating the “resource drag” that has slowed recent productivity growth in the US. |
| JEL: | E60 O4 Q40 Q42 Q43 Q57 R13 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33028 |
| By: | Mathilde Stoltz (Université de Franche-Comté, CRESE, F-25000 Besançon, France) |
| Abstract: | Dans un contexte de paupérisation des locataires du parc social et de surexposition des ménages défavorisés aux nuisances environnementales, cette étude examine dans quelle mesure l'ore de logements sociaux contribue à ces dynamiques. Trois questions sont posées. Premièrement, nous analysons en France l'influence de la présence de sites industriels polluants sur la construction de logements sociaux. Deuxièmement, nous identifions les facteurs déterminant la localisation des logements sociaux à proximité de ces sites. Enfin, nous comparons la proportion de ménages pauvres autour des sites polluants, en distinguant ceux avec ou sans nouveaux logements sociaux. En mobilisant les données du Répertoire des logements locatifs des bailleurs sociaux (RPLS) et du Registre européen des rejets et transferts de polluants (E-PRTR), trois résultats émergent. Tout d'abord, nous constatons que la présence de sites polluants est un déterminant pertinent de la construction de nouveaux logements sociaux. Ensuite, nous montrons que les communes les plus précaires tendent à construire davantage de logements sociaux près de sites polluants. Enfin, nous observons une proportion plus importante de ménages pauvres autour des sites polluants lorsque de nouveaux logements sociaux y sont construits. Ces résultats suggèrent que ces constructions contribuent à la surexposition des ménages pauvres aux nuisances environnementales. |
| JEL: | R38 C21 H7 O18 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:crb:wpaper:2024-19 |
| By: | Bez, Charlotte; Steckel, Jan; Naumann, Lennard |
| JEL: | D72 L72 Q52 N56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302390 |