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on Environmental Economics |
| By: | Abatemarco, Antonio; Dell'Anno, Roberto; Lagomarsino, Elena |
| Abstract: | The implementation of environmental policies varies substantially across geographical areas. This paper proposes a conceptual and methodological framework—adapted from the health economics literature— to assess equity in the allocation of environmental policy effort. We define “environmental care” as the set of local policy interventions aimed at improving environmental quality within an area, and evaluate its distribution relative to environmental need. Using direct and indirect standardization techniques, we measure horizontal inequity (unequal care among areas with similar need) and vertical inequity (differential care in response to differing needs). Applying this framework to traffic-related air pollution policies in Italian municipalities from 2012 to 2021, we find that the observed reduction of overall inequality in environmental care is mostly driven by a decline in horizontal inequity. However, we find evidence of persistent socioeconomic disparities, with lower-income municipalities receiving disproportionately less policy effort relative to their environmental needs. |
| Keywords: | Climate Change, Health Economics and Policy, Sustainability |
| Date: | 2025–07–02 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:359332 |
| By: | - |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col093:81372 |
| By: | Till Köveker; Philipp M. Richter; Alexander Schiersch; Robin Sogalla |
| Abstract: | This paper revisits the exporter’s environmental premium (EEP) by incorporating emissions embodied in domestically and internationally sourced intermediate inputs. Combining administrative firm-level data and customs records for German manufacturers with an environmentally extended input-output table and fuel specific emission factors, we document three stylized facts: (i) embodied emissions account for over half of firms’ total emissions; (ii) exporters’ production involves disproportionately more embodied emissions, particularly through international sourcing; and (iii) once embodied emissions are considered, the EEP reverses: exporters appear cleaner based on production-related emissions alone, but dirtier in total emissions. We rationalize these patterns in a sourcing model and test its predictions using a shift-share IV strategy based on foreign demand shocks. Export expansion lowers the production-related emission intensity without affecting total emissions, underscoring the role of sourcing in shaping firm-level environmental outcomes. These findings highlight the importance of accounting for embodied emissions when evaluating the welfare and environmental consequences of trade liberalization. |
| Keywords: | Exporter’s environmental premium, CO2 emission intensity, embodied emissions, international sourcing, heterogeneous firms |
| JEL: | F18 F12 L23 Q54 Q56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:diw:diwwpp:dp2126 |
| By: | Heidelmeier, Lisa; Sahm, Marco |
| Abstract: | We investigate the impact of an environmental award in a Bertrand duopoly with green consumers considering a three-stage game. First, the regulator designs the environmental contest. Second, firms choose their green investments, and the winner of the contest is awarded. Third, firms compete in prices, and consumption takes place. We illustrate that the award not only incentivizes green investments and may thus reduce environmental externalities. As consumers perceive the product of the awarded firm to be of superior quality, it also gives rise to vertical product differentiation. This induces market power, and thus anti-competitive effects: Rents shift from consumers to producers, and consumer surplus may decrease, particularly if marginal investment costs in green technologies are high compared to the strength of environmental damage. |
| Keywords: | Bertrand Competition, Contests, Environmental Award, Green Consumer, Product Differentiation |
| JEL: | D43 H23 L13 L51 Q52 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bamber:319885 |
| By: | Phoebe Koundouri; Angelos Alamanos; Giannis Arampatzidis; Stathis Devves; Kostas Dellis; Christopher Deranian; Tatiana Pliakou |
| Abstract: | Achieving climate neutrality in Europe requires a collective effort that goes well beyond national energy plans, extending into food systems, land use, and natural resources. While each Member State's National Energy and Climate Plan (NECP) outlines individual targets, a common assessment addressing diversity in planning horizons, data detail, and resources' considerations is lacking. This report bridges these gaps by simulating Europe's 35 NECPs through an integrated, systems-nexus framework that couples energy-emissions, food-land, biofuels and water models under two scenarios: "Business as Usual" (BAU, current trends) and the full implementation of the National Commitments (NC) for net-zero. |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2548 |
| By: | Theofanis Zacharatos; Ginevra Coletti; Konstantinos Dellis; Phoebe Koundouri |
| Abstract: | The agricultural sector contributes to global greenhouse gas emissions while facing pressures to meet nutritional needs of the growing population. Reducing post-harvest food losses represents an underappreciated path to achieving net-zero emissions without requiring radical changes in production systems. In this study, the Food, Agriculture, Biodiversity, Land-Use, and Energy (FABLE) Calculator simulates post-harvest loss (PHL) reduction scenarios, assessing their socioeconomic and environmental impacts. We model five pathways: a business-as-usual pathway entitled Current Trends, two scenarios with 25% and 50% PHL reductions, and two National Commitments pathways, combining PHL reduction with other policies. Results show that reducing PHL alone lowers production needs and costs by increasing supply chain efficiency. However, only the NC-25% pathway achieves greater cost savings and emission reductions, underscoring the value of combining supply- and demand-side interventions. Ultimately, this study underscores that reducing post-harvest losses is linked to achieving many SDGs and is essential for transitioning to more sustainable agri-food systems. |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2547 |
| By: | Sofia Anyfantaki; Marianna Blix Grimaldi; Carlos Madeira; Simona Malovana; Georgios Papadopoulos |
| Abstract: | Climate change poses a significant risk to financial stability by impacting sovereign credit risk. Quantifying the exact impact is difficult as climate risk encompasses different components – transition risk and physical risk – with some of these, as well as the policies to address them, playing out over a long time horizon. In this paper, we use a large panel of 52 developed and developing economies over two decades to empirically investigate the extent to which climate risks influence sovereign yields. The results of a panel regression analysis show that transition risk is associated with higher sovereign yields, with the effect more pronounced for developing economies and for high-emitting countries after the Paris agreement. In contrast, high-temperature anomalies do not appear to be priced-in sovereign borrowing costs. At the same time, countries with high levels of debt tend to record higher sovereign yields as acute physical risk increases. In the medium term, using local projections, we find that sovereign yields respond significantly but also differently to different types of disaster caused by climate change. We also explore the nonlinear effects of weather-related natural disasters on sovereign yields and find a striking contrast in the impact of climate shocks on sovereign borrowing costs according to income level and fiscal space when the shock hits. |
| Keywords: | climate risk, sovereign risk, transition risk, temperature change, natural disasters |
| JEL: | C23 E62 H63 Q54 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1275 |
| By: | Gross, Christian; Kuntz, Laura-Chloé; Niederauer, Simon; Strobel, Lena; Zwanzger, Joachim |
| Abstract: | We develop a novel stress testing framework to quantify the risks to the German banking sector from the green transition. Our methodology combines a macro-level and a micro-level approach to calculate scenario-dependent probabilities of default and losses. The macro approach leverages traditional stress testing techniques in which aggregate scenario variables are translated into aggregate estimates of credit risk indicators. The micro approach uses firm- level balance sheet and carbon emissions data, allowing for the projection of heterogeneous effects across individual borrowers. Given that climate-related risks impact individual sectors and borrowers of the economy differently, exploring ways to quantify the distribution of potential effects is a key element of our framework. We find that potential losses over the near term from a green transition are non-negligible, highlighting that banks' loan portfolios are vulnerable to climate policy. Our estimates show that there are large differences across sectors and firms depending on their characteristics, most notably their carbon footprint, highlighting the importance of concentration risk in bank portfolios. |
| Keywords: | climate-related risks, climate scenarios, stress testing, credit risk |
| JEL: | C11 G21 G28 Q54 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:319621 |
| By: | Ioannis Kalientzidis; Amelie Barbier-Gauchard; Moises Sidiropoulos |
| Abstract: | This paper develops a New Keynesian Environmental Dynamic Stochastic General Equilibrium (EDSGE) model to analyze the role of government investment in facilitating the transition to a green economy. We extend the standard framework by incorporating two types of capital—polluting (brown) and non-polluting (green)—both of which are used in production. Firms choose their capital mix while being subject to carbon taxation, and the government directly invests in capital formation, with preferences over green and brown investments. The model includes adjustment costs for the production of green capital, capturing the frictions associated with its deployment and the slow adaptation of firms to green alternatives. Our analysis explores the macroeconomic and environmental effects of fiscal policy under different government investment preferences. We find that when the government invests only in brown capital, the crowding-out effect on private investment leads to lower output, reduced consumption, and increased emissions. In contrast, when the government prioritizes green capital, economic growth accelerates while emissions decline, despite the presence of a private investment crowd-out effect. A mixed investment strategy, where the government allocates resources to both types of capital but still favors brown investment, yields results similar to the green-focused scenario but with more moderate effects. A key result of our analysis is that both the full-green and mixed investment strategies reduce the returns on green capital, highlighting that targeted government policies can mitigate production frictions in green capital accumulation. This result underscores the importance of public sector intervention in lowering the financial barriers to green investment and ensuring a smoother transition toward a more sustainable production structure. Moreover, our findings emphasize the broader policy trade-offs involved in financing the green transition. While carbon taxation effectively reduces emissions, its interaction with investment decisions creates supply-side constraints that could slow economic growth if not accompanied by complementary public investment. Overall, our research highlights the pivotal role of government intervention in shaping the dynamics of green transition. By explicitly modeling capital accumulation frictions, carbon taxation, and government investment preferences, we provide a framework that can be used to evaluate climate policies when private sector adaptation is constrained. Our findings reinforce the argument that proactive fiscal policies are highly recommended to align economic incentives with long-term environmental goals, ensuring that the transition to a greener economy is both economically viable and socially optimal. |
| Keywords: | Green Public Capital, New Keynesian Model, Environmental DSGE, Climate Change Policy, Fiscal Policy, Carbon Tax, Emission Reduction, Green Public Investments. |
| JEL: | E62 H23 Q52 Q58 Q54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2025-22 |
| By: | Luca Bargna (Department of Economics, Insubria University, Varese, Italy); Davide La Torre (SKEMA Business School, Université Côte d'Azur, France); Rosario Maggistro (University of Trieste, Italy); Benjamin Montmartin (SKEMA Business School, Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | This paper investigates the trade-offs between organic and conventional farming methods, focusing on their respective impacts on health, environmental sustainability, and economic outcomes. Our contributions are twofold. First, we develop a theoretical model based on an optimal control problem to examine the dynamic allocation of investments in organic versus conventional agriculture. This model incorporates critical social factors such as the environmental and health costs associated with the use of pesticides in conventional farming and the long-term social benefits of organic practices. Second, we estimate the key parameters of the model using French data on pesticide levels in groundwater and the costs of the treatments required to ensure safe and potable water for the population. The empirical results provide insights into the economic and environmental implications of shifting investments towards organic farming. By comparing theoretical and empirical results, key insights have been identified, regarding the interplay between the social costs of pesticide exposure, its spatial distribution, and the design of mitigation efforts. The optimal policy suggested, underscores the necessity of targeting localized areas of high pesticide concentration with intensified effort to minimize adverse health and environmental impacts. Furthermore, our model advocates for a balanced distribution of effort and emphasizes the efficacy of early intervention strategies. Failure to adhere to optimal effort levels could significantly increase future effort, and so the costs, required to achieve policymaker targets. |
| Keywords: | Organic agriculture, Pesticide, Pollution, Optimal control, Parameter estimation |
| JEL: | C60 Q50 Q10 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-30 |
| By: | Samantha Borkhoche; Miss Eman Abdulla; Mr. Edward R Gemayel; Vidhi Maheshwari; Faten Saliba |
| Abstract: | Africa is vulnerable to the impacts of climate change despite its minimal contribution to global greenhouse gas emissions. The continent’s burden manifests in shifting weather patterns which threatens food security and economic stability, compounded by a growing population. This paper is a novel attempt at understanding whether trade in “green goods" and engaging in “green practices" can reduce negative environmental outcomes in the region. Using local projections methods, we find that increasing trade in “green goods" decreases the harmful effect on the environment in the medium-term. In the medium-term, there are cumulative improvements in ecological footprint by about 4%, decreases in net CO2 emissions embedded in trade by about 60-100% of total domestic production, and decreases in PM2.5 air pollution by about 1%. We also construct a novel Green Practices Index for Sub-Saharan Africa to benchmark individual country performance and facilitate regional cooperation on green practices. We find that engaging in green practices decreases harmful environmental outcomes by about 0.3-1.5% in the medium-term. |
| Keywords: | Development strategy; production practices; regional cooperation; externalities; resource use; growth resilience; local projection methods; Sub-Saharan Africa |
| Date: | 2025–07–04 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/131 |
| By: | Schenuit, Felix |
| Abstract: | In the discussions being held at EU level about the 2040 mitigation target, the role of international credits has recently taken centre stage. The new momentum in those discussions is due in part to the German government having announced its support for a mitigation target of a net 90 per cent greenhouse gas emissions reduction is conditional on up to 3 per cent of the target being achieved through international credits. How the target is to be drawn up and what it means for EU climate policy instruments will inevitably give rise to conflicts during the forthcoming legislative processes. Despite open questions about the quality, additionality and availability of the credits, it makes sense to hold a timely debate about their possible functions so that, if necessary, policy instruments can be further developed and corrections made later. It would be expedient to ensure that the use of international credits is focused on durable carbon dioxide removal technologies that are scalable only to a limited extent within the EU itself. Not only could international removal credits make a contribution to overcoming the challenges on the path to greenhouse gas neutrality by counterbalancing residual emissions; the creation of institutionalised demand for high-quality removal methods would also lay the foundation for achieving net-negative emissions. |
| Keywords: | EU mitigation target for 2040, carbon dioxide removal technologies, greenhouse gas neutrality, climate policy, Net-zero emissions, Carbon Management, CCS, CCU, CDR, UNFCCC |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:320461 |
| By: | Tricarico, Luca; Hausemer, Pierre; Gorman, Nessa; Squillante, Francesca |
| Abstract: | This paper explores the concept of the Proximity Economy, a human-centered model focused on short value chains and social interactions within local contexts, as a strategic response to global challenges like climate change, supply chain disruptions, and the twin green and digital transitions. Amid ongoing crises, e.g., pandemic, economic, geopolitical, and environmental, reconceptualizing economic development paradigms is crucial for fostering resilient and sustainable solutions. The Proximity Economy integrates local production, distribution, and consumption, supporting sustainable innovation and the competitiveness of local enterprises. It aligns with the European Union’s industrial strategy and Sustainable Development Goals, such as climate action (SDG 13) and reducing inequalities (SDG 10). This paper reviews the socio-economic impacts of the Proximity Economy, considering its connections with the circular and social economies, and identifies relevant policies for its promotion at the European, national, and local levels. Through sectoral analysis and examples, the paper provides a framework for evaluating the economic, environmental, and social outcomes of this model, offering recommendations for its future development and implementation. |
| Keywords: | proximity; regional development; resilience; social innovation; sustainability; cohesion policy |
| JEL: | N0 |
| Date: | 2025–07–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128633 |
| By: | Ghosh, Samarpita; Sarkhel, Prasenjit |
| Abstract: | This paper examines how political representation for marginalized groups affects development outcomes and environmental choices by studying the adoption of clean cooking fuels under India's Pradhan Mantri Ujjwala Yojana (PMUY). Focusing on political reservations for Scheduled Tribes (STs), we assess how these institutional arrangements influence household fuel use across ecologically diverse regions. Using village-level data from the 2020 Mission Antyodaya Survey and high-resolution forest cover data, we employ a spatial regression discontinuity design (SRD) to compare LPG adoption between Scheduled Areas (administratively designated tribal-majority regions) and non-Scheduled Areas. We find that ST political reservations at the assembly constituency level are associated with a significant reduction in PMUY uptake in Scheduled Areas. To explore variation within SAs, we employ Propensity Score Matching to assess the impact of the Panchayat Extension to Scheduled Areas Act (PESA), which mandates ST representation in local governance. We find that PESA increases LPG adoption in villages located in open forest and scrubland, while it reduces uptake in regions with moderately dense forests. Additionally, our analysis reveals that higher forest cover displaces clean fuel use, and quantile regressions confirm that PESA implementation is linked to forest gains-suggesting that politically empowered ST leaders may promote conservation, inadvertently reinforcing biomass dependence. Our findings highlight a policy trade-off between environmental stewardship and the clean energy transition in ecologically sensitive tribal areas. |
| Keywords: | Clean Fuel, Forest Cover, PESA, Propensity Score Matching, Scheduled Area, Spatial Regression Discontinuity |
| JEL: | O13 Q42 Q48 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:320716 |
| By: | Josh Burke; Siyu Feng; Maxwell Read; Esin Serin; Ram Smaran Suresh Kumar |
| Abstract: | This report analyses innovation activity represented by patenting data for two carbon dioxide removal (CDR) technologies - bioenergy with carbon capture and storage (BECCS) and direct air carbon capture and storage (DACCS), referred to collectively as geological CDR - to shed light on the countries that might be best positioned to lead the market for relevant technologies to capture growth opportunities while supporting global climate goals. |
| Keywords: | Green Growth, carbon capture, Technological change |
| Date: | 2025–07–09 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepsps:51 |
| By: | Philippe Aghion; Lint Barrage; Eric Donald; David Hémous; Ernest Liu |
| Abstract: | We analyze a model of green technological transition along a supply chain. The model generates a unique equilibrium for given initial conditions but multiple steady-states. We show that: (i) even in the presence of Pigouvian environmental taxation, targeted sectoral subsidies are generally necessary to implement the social optimum; (ii) small, targeted industrial policy may bring large welfare gains; (iii) a government which is unable to subsidize greenification in more than one sector or price carbon at its true social cost should primarily target downstream sectors; (iv) over-investing in greenification in the wrong upstream branch may derail the overall transition towards greenification. Finally, we calibrate our model to decarbonization of heavy duty transportation (trucking, aviation, etc.) via hydrogen. We find that, absent industrial policy, the economy can get stuck in the “wrong” steady-state with CO₂ emissions vastly above the social optimum even with a Pigouvian carbon price in place. |
| JEL: | O0 O3 O38 O4 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33934 |
| By: | Mark Budolfson; Michael Geruso; Kevin J. Kuruc; Dean Spears; Sangita Vyas |
| Abstract: | A smaller human population would emit less carbon, other things equal, but how large is the effect? Here we test the widely-shared view that an important benefit of the ongoing, global decline in fertility will be reductions in long-run temperatures. We contrast a baseline of global depopulation (the most likely future) with a counterfactual in which the world population continues to grow for two more centuries. Although the two population paths differ by billions of people in 2200, we find that the implied temperatures would differ by less than one tenth of a degree C—far too small to impact climate goals. Timing drives the result. Depopulation is coming within the 21st century, but not for decades. Fertility shifts take generations to meaningfully change population size, by which time per capita emissions are projected to have significantly declined, even under pessimistic policy assumptions. Meanwhile, a smaller population slows the non-rival innovation that powers improvements in long-run productivity and living standards, an effect we estimate to be quantitatively important. Once the possibility of large-scale net-negative emissions is accounted for, even the sign of the population-temperature link becomes ambiguous. Humans cause greenhouse gas emissions, but human depopulation, starting in a few decades, will not meet today’s climate challenges. |
| JEL: | J11 J13 O30 O40 Q54 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33932 |
| By: | Léo Delpy (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique, UMR ASTRE - Animal, Santé, Territoires, Risques et Ecosystèmes - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This article is an original contribution to reconsider social protection mechanisms in contexts of rural extreme poverty from the perspective of One Health approach. Poor individuals in rural areas confront a set of risks stemming from climate, agriculture, livestock, health, and nutrition. This article introduces new perspectives in understanding the interplay between climate change and development. By delving into the interconnection between human, non-human animal, and environmental health issues, the One Health approach offers an original outlook for redefining the development of social protection programs. Then, this article operationalizes this approach in the context of southern Madagascar, a region characterized by the prevalence and interaction of human health issues (e.g. diseases, water and food scarcity), animal health issues (e.g. diseases, water and food scarcity), and environmental issues (e.g. drought, flood, wind). Using a mixed method incorporating original data, this article investigates the array of social protection mechanisms in response to diverse risks (human health, animal health, and environment health). The findings of this article underscore (i) the importance of interactions among human, animal and environmental risks and (ii) the inadequacy of social protection mechanisms in addressing these risks. |
| Keywords: | social protection, one health, poverty, climate change, rural poverty |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05066683 |
| By: | Cecilia Bellora; Lionel Fontagné; Christophe Gouel; Youssef Salib |
| Abstract: | This paper revisits the existence of a carbon bias in trade policies, where emissions-intensive sectors receive lower trade protection than cleaner sectors. Using a stylized general equilibrium model that accounts for greenhouse gas emissions, we confirm the presence of a carbon bias but find it to be significantly smaller than previously estimated. Our analysis reveals that this bias is primarily driven by low tariffs on fossil fuels, particularly crude oil. Incorporating the finite nature of fossil fuel resources into the model reduces the responsiveness of fossil fuel production to tariff changes, effectively neutralizing the carbon bias. Furthermore, when accounting for domestic consumption taxes on fossil fuels in non-producing countries –which act as de facto tariffs– the bias shifts toward a pro-environmental stance. These findings underscore the importance of integrating energy markets' specificities and domestic distortions into trade models to better account for the impact of trade policies on the environment. |
| Keywords: | Fossil Fuels;Greenhouse Gases;International Trade;Tariffs |
| JEL: | F13 F18 Q40 Q56 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cii:cepidt:2025-08 |
| By: | Joseph Francois (University of Bern); Neil Foster-McGregor (Asian Development Bank) |
| Abstract: | This paper employs a computational general equilibrium model to examine the potential impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM). The paper considers the impact of extending CBAM to other economies, examining whether approaches that require increased coordination of carbon pricing over a greater number of jurisdictions can increase the impact of CBAM. Results suggest that while an expanded scheme of carbon prices and border carbon taxes can reduce emissions, underlying global economic growth trends are more than enough to quickly undo the highest emissions reductions modelled here. As such, sustained technical innovation and major changes in the underlying structure of energy systems will be required to meet Intergovernmental Panel on Climate Change (IPCC) targets. The results also reinforce another message of recent IPCC reports, namely that in some cases the potential impacts of mitigation actions through domestic and trade-related carbon taxes may fall disproportionately on poorer regions. |
| Keywords: | computable general equilibrium;carbon pricing;border carbon adjustments |
| JEL: | C68 Q56 |
| Date: | 2025–07–16 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:021407 |
| By: | Ringstad, Ingrid Emilie Flessum (Dept. of Business and Management Science, Norwegian School of Economics); Benini, Giacomo (Dept. of Business and Management Science, Norwegian School of Economics); Dotti, Valerio (Dept. of Economics, Ca’ Foscari University of Venice); Tselika, Kyriaki (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | We study how uncertainty about future climate policy affects the valuation of oil resources. Using a structural model of extraction and exploration applied to field-level data from the Norwegian Continental Shelf, we estimate the impact of climate policy uncertainty (CPU) on the shadow prices of both discovered and undiscovered oil. We find that higher CPU lowers these marginal values, especially after the 2015 Paris Agreement, reducing incentives to extract and explore. This decline translates into an implicit carbon cost of $15–$38 per tonne of carbon dioxide emitted. Unlike a Pigouvian tax, this shadow cost does not scale with emissions intensity or generate fiscal revenue. As a result, it reduces production and emissions in a diffuse and economically inefficient manner, without rewarding low emitters or financing green transition policies. |
| Keywords: | Oil Industry; Climate Policy; Decision-Making under Risk and Uncertainty |
| JEL: | C51 D81 Q35 Q58 |
| Date: | 2025–07–10 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhhfms:2025_022 |
| By: | Pablo Acevedo; Elias Albagli; Gonzalo García-Trujillo; María Antonia Yung |
| Abstract: | This project uses unique Chilean administrative data to shed light on how production networks might play a key role in shaping the macroeconomic impacts of green transition policies. First, using customs and firm-to-firm transaction data that covers the universe of firms in Chile, we build the fossil fuel consumption and the direct CO2 emissions at the firm, sectoral, and aggregate levels. In line with the official national sources, the electricity generation sector is the most important contributor to aggregate CO2 emissions, followed by the manufacturing, transport, and mining sectors. Then, we study the role of input-output linkages in propagating CO2 emissions to the rest of the economy. To do so, we construct the production network and the carbon footprint at the firm level using firm-to-firm transaction data from the Chilean IRS, and we validate our results with the input-output tables approach used in the literature. The results show that the electricity generation sector is central in the network, with potentially important downstream spillover effects, while the mining sector is located in the outer part of the network with rich upstream connections. Also, we show that the copper mining industry is the most exposed one to a carbon tax scheme implemented on all the firms in the economy and also to one that only targets the electricity generation sector. |
| Keywords: | carbon emissions, production network, carbon footprint, downstream and upstream propagation, administrative firm-level data |
| JEL: | E01 D24 D57 E23 H23 Q54 Q56 Q58 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1277 |
| By: | D'Amato, Alessio; De Simone, Marco; Dileo, Ivano; Marzano, Elisabetta |
| Abstract: | The multidimensional nature of environmental problems is increasingly recognized, as different relevant behaviors may be mutually reinforcing or in a trade-off relationship. This is particularly relevant when the use of resources is tightly linked to their packaging, as in the case of bottled water consumption. This paper aims at using Italian data to assess whether plastic related separated collection and bottled water consumption are complements or substitutes in consumers’ behaviors. Using Cross-sectional Italian data, we provide evidence of a challenging “rebound” effect: individuals more engaged in recycling are also those producing more plastic waste related to bottled water consumption. This has important consequences for policy analysis, since the rebound effect appears to be related to the availability of waste infrastructures: better infrastructure, namely door to door collection, inflate the consumption of (plastic packaged) bottled water. We also provide robustness analysis for our results, specifically addressing the role of endogeneity issues. |
| Keywords: | bottled water, environmental concern; recycling waste; rebound effect; |
| JEL: | C21 Q25 Q53 |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125184 |
| By: | Heidelmeier, Lisa; Schmitt, Stefanie Y. |
| Abstract: | Although consumers often care about environmental quality, limited attention impairs consumers' perception of environmental quality. Environmental awards and labels make environmental quality salient and attract consumers' attention. We analyze how awards and labels affect firms' investments in environmental quality and social welfare. We show that, with an award, both firms invest in environmental quality; with a label, only one firm invests. Under awards, investments depend positively on salience. Under labels, investments depend non-monotonically on salience. A welfare-maximizing social planner prefers awards over labels if and only if marginal damage and salience are sufficiently high such that consumers overestimate the environmental quality of the goods. |
| Keywords: | awards, environmental quality, labels, limited attention, salience |
| JEL: | D91 L13 L15 Q52 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bamber:319884 |
| By: | Shi, Mengjie; Zhang, Yupu; Meinerding, Christoph |
| Abstract: | The introduction of the EU Carbon Border Adjustment Mechanism (CBAM) has triggered statistically significant negative stock market responses for firms within the EU. Comparing EU customers that have non-EU suppliers in CBAM-affected industries with their non- treated peers in the control group, we find an extra cumulative abnormal return of up to -1.3 percentage points over our main five-day event window around December 13, 2022. Fur- thermore, we document substantial anticipatory market responses reflecting updated beliefs about broader climate policy developments going forward. This paper is the first to provide empirical evidence of carbon border tax impacts on firm valuations through international supply chains. Our findings contribute to the understanding of climate policy transmission through international trade networks and inform the debate on stranded assets resulting from environmental regulations. |
| Keywords: | Carbon border adjustment mechanism, carbon pricing, supply chain, event study, cumulative abnormal returns, trade |
| JEL: | G12 G14 G15 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:319628 |
| By: | Broeders, Dirk; Bauer, Rob; De Carolis, Flavio |
| Abstract: | In this event study, we analyze the effect of market segmentation on stock returns in Europe amid extreme weather events. We show that local institutional ownership (LIO) mitigates the negative effect of the uncertainty from the occurrence of extreme weather events on stock prices. We assess firms’ exposure to physical climate risks using the Eurosystem’s method that uses physical climate risk indicators. In a sample with materially exposed industries, we find a negative risk-adjusted abnormal return of 99 basis points for storms on the event date. This negative return is mitigated however by 1.3% for each percentage point increase in LIO. We confirm the mitigating role of LIO by testing the information hypothesis through two channels: the distance between a firm’s headquarters and the affected facility and its exposure to physical risk. JEL Classification: C81, G11, G14, G32, Q54 |
| Keywords: | asset pricing, event study, extreme weather events, market segmentation |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253069 |
| By: | Pierre Cotterlaz; Christophe Gouel |
| Abstract: | This study examines the evolution of France's carbon footprint from 2000 to 2014, with a particular focus on the role of international trade. During this period, France's territorial emissions decreased by 18%, yet its consumptionbased footprint declined by only 5%. This modest reduction reflects an increase in emissions embedded in imports, which grew from 45% to 54% of the total. Employing a novel structural decomposition analysis, we disentangle the contributions of scale, composition, and technique effects from a consumption perspective. Our approach advances traditional methods by explicitly distinguishing between domestic and foreign influences and by separately analyzing trade openness and the geographic reallocation of trade flows. The results underscore the dominance of the technique effect in reducing emissions (-28%), driven primarily by efficiency improvements abroad. However, the geographic composition effect led to a substantial increase in emissions (+18%), especially due to shifts toward more carbon-intensive trading partners prior to 2008. This pattern - characterized by a growing reliance on foreign improvements for emission reductions - likely foreshadows developments in other developed economies as domestic decarbonization advances. It highlights the need for greater coordination between trade and climate policies. |
| Keywords: | Carbon footprint;Structural decomposition analysis;Consumption-based accounting;Scale, composition, and technique effects;France |
| JEL: | F18 Q54 Q56 C67 F64 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:cii:cepidt:2025-09 |
| By: | Thomas, Timothy S.; Robertson, Richard D. |
| Abstract: | In this paper we present analysis on the recent historical trend in agriculture in the Eastern and Southern Africa (ESA) region, along with analysis of recent historical trends in temperature and precipitation. We also present 5 climate models and describe the possible future climates associated with these. We use these climate models with crop models -- for seven crops -- and bioeconomic models to further assess the impact on agricultural productivity throughout the region and how the agricultural sector will transform through 2050. While we evaluate seven crops in detail, we note the key role that maize plays for the region, and we assess -- considering the regional and global impact of climate change -- how the role of maize will change over time and whether the change will be rapid enough to shift regional agriculture into a more vibrant sector. We find that while the relative importance of maize to farmers in the region will decline, out to 2050 maize will remain the dominant crop. Additional policies and investments will need to be implemented if the goal is to hasten the transition to higher value or more nutritious crops. |
| Keywords: | bioeconomic models; climate change; maize; crop modelling; agricultural production; modelling; climate models; Eastern Africa; Southern Africa; Africa |
| Date: | 2024–02–16 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:gsspwp:139503 |
| By: | Soufiane El Hmieche (ENCG - Ecole Nationale de Commerce et de Gestion - UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)); Abdelkarim Asdiou (ENCG - Ecole Nationale de Commerce et de Gestion - UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)) |
| Abstract: | This article is an attempt to define environmental management control, taking as its starting point the two currents of classical management control. Before presenting the different typologies of environmental strategies and their objectives, it is worth considering that any control system can be impacted by the strategy and objectives adopted by the company. After summarizing the various definitions of environmental accounting and environmental management accounting, we review the definitions proposed to date of environmental management control, to deduce the three shades of green first defined by de O'Riordan (1991), before being taken up in the conceptual framework of Antheaume (2013). Finally, we formulate our own definition of environmental management control, accompanied by a new proposal for the conceptual framework of environmental management control. |
| Abstract: | Cet article est un essai de définition du contrôle de gestion environnemental qui prend comme point de départ les deux courants du contrôle de gestion classique. Avant de présenter les différentes typologies des stratégies environnementales et leurs objectifs, il convient de considérer que tout dispositif de contrôle peut être impacté par la stratégie et les objectifs adoptés par l'entreprise. Après avoir synthétisé les différentes définitions de la comptabilité environnementale et la comptabilité environnementale de gestion, nous passons en revue les définitions proposées jusqu'à aujourd'hui du contrôle de gestion environnemental, pour en déduire les trois nuances de vert définies pour la première fois par de O'Riordan (1991), avant d'être repris dans le cadre conceptuel de Antheaume (2013). En fin, nous formulons notre propre définition du contrôle de gestion environnemental, accompagnée d'une nouvelle proposition du cadre conceptuel du contrôle de gestion environnemental. |
| Keywords: | Environmental strategies, Environmental accounting, Environmental management accounting, Environmental management control, Eco-control, Stratégies environnementales, Comptabilité environnementale, Comptabilité de gestion environnementale, Contrôle de gestion environnemental, Eco-contrôle |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05078123 |
| By: | Pablo Garcia Sanchez; Olivier Pierrard |
| Abstract: | While a sustained contraction of global production could lower emissions, it would hamper economic development in poorer countries, reduce living standards for low-income households in advanced economies, and heighten the risk of social unrest. Therefore, reducing carbon intensity emissions per unit of output appears to be the most viable and sustainable path forward. We make two contributions: one empirical and one theoretical. Empirically, we show that the distribution of carbon intensities across major economies has followed a path since 1995 that is well approximated by the transport equation, a basic differential equation from physics. Theoretically, we show that in an extended Solow model with abatement capital, the distribution of carbon intensity across a continuum of economies also follows the dynamics described by the transport equation. This theoretical result remains empirically plausible under standard parameter values. Unlike its empirical counterpart, the calibrated model can provide projections of emissions and temperature increases under various policy scenarios, with results aligning closely with forecasts by leading institutions. |
| Keywords: | Carbon intensity; Transport equation; Solow model. |
| JEL: | O44 Q50 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:bcl:bclwop:bclwp198 |
| By: | Donato Romano; Luca Tiberti; Tulia Gattone; Raul Caruso; Sara Balestri; Anna Balestra |
| Abstract: | This paper explores the pathways linking climate change and conflict, shedding light on the critical role the agrifood system can play as an intermediary. By conducting a scoping review of recent literature (2014-2024), this paper identifies two main pathways: increased competition over natural resources used in agriculture and decreased agricultural productivity. While some relationships, such as those examining the immediate causes of conflict – like threats to livelihoods, increased migration, and food insecurity – have been extensively studied, others, such as the impact of price changes and market forces, remain surprisingly underexplored. Various empirical approaches have been employed to identify these pathways, including ordinary least squares and logit/probit regressions as well as instrumental variables and structural equation modeling. Recently, the availability of high-resolution georeferenced datasets including socio-economic, environmental and conflict data, along with methodological advancements like spatial econometrics, have prompted more detailed and rigorous analyses. Current research gaps include the paucity of empirical studies at the micro level and the insufficient exploration of how market-based mechanisms influence the dynamics between climate change and conflict through the agrifood sector. The paper discusses future research directions, emphasizing the need for multidisciplinary approaches. |
| Keywords: | Climate change, conflict, agrifood system, agricultural production, resource scarcity. |
| JEL: | Q54 Q25 Q18 D74 O13 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:frz:wpaper:wp2025_12.rdf |
| By: | Rahai, Rouzbeh; Evans, Gary W.; Wells, Nancy M.; Xu, Wenfei |
| Abstract: | U.S. schools are increasingly threatened by climate-related events such as extreme heat and air pollution, which adversely affect children’s health and learning. Climate risks do not occur in isolation. Adverse exposures intersect with local school socioeconomic and physical conditions that shape susceptibility to risks. Yet, research on how climate risks intersect with school social and physical factors influencing susceptibility remains limited. This study assesses relationships between climate risk and school susceptibility factors across major U.S. Cities and pinpoints school clusters within cities most in need of climate intervention. We analyzed 4, 754 public school parcels in 20 major U.S. cities using climate risk and susceptibility indices. Climate risk was defined by PM2.5, ozone levels, and extreme heat days (Heat Index>102°F). School susceptibility included poverty rates (free/reduced lunch), impervious surface cover, and inverse greenspace availability (trees, grass, shrub) based on 1m land-use classifications. Spatial lag regression assessed risk–susceptibility associations, and HDBSCAN clustering identified school clusters with convergence of high risk and high susceptibility within cities. Risk–susceptibility relationships varied by city. Significant positive associations were found in Chicago, Los Angeles, Philadelphia, Phoenix, New York, and Riverside (.007 < β < .105). These school districts serve nearly 5% of U.S. public-school students. HDBSCAN identified 582 schools with both high climate risk and high susceptibility. Climate vulnerability among U.S. urban schools is spatially uneven. Identifying schools with the highest combined risk and susceptibility provides a foundation for targeted interventions such as greening and HVAC upgrades to support resilience and protect student wellbeing. |
| Date: | 2025–07–02 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:5ebtn_v1 |
| By: | Chao Li (Kyushu University and aiESG, Inc.); Alexander Ryota Keeley (Kyushu University and aiESG, Inc.); Shunsuke Managi (Kyushu University and aiESG, Inc.); Satoru Yamadera (Asian Development Bank) |
| Abstract: | Environmental, social, and governance (ESG) considerations are becoming increasingly vital in corporate decision-making, especially for global companies, and in evaluating corporate performance and investments. This study examines the ESG tendencies of the companies with the largest market values in eight East Asian and Southeast Asian countries through the analysis of 480 corporate reports published in 2023. Our findings reveal that among the various ESG topics, economics and governance risk were the most frequently mentioned in the corporate disclosure reports, though significant variations exist across the region. |
| Keywords: | environmental; social; and governance; corporate report; pre-trained transformer; deep learning; Eas |
| JEL: | G30 M14 O16 Q56 |
| Date: | 2025–07–14 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:021404 |
| By: | Fajardo-Gonzalez, Johanna; Nguyen, Minh Cong; Corral Rodas, Paul Andres |
| Abstract: | Climate change is increasingly acknowledged as a critical issue with far-reaching socioeconomic implications that extend well beyond environmental concerns. Among the most pressing challenges is its impact on global poverty. This paper projects the potential impacts of unmitigated climate change on global poverty rates between 2023 and 2050. Building on a study that provided a detailed analysis of how temperature changes affect economic productivity, this paper integrates those findings with binned data from 217 countries, sourced from the World Bank’s Poverty and Inequality Platform. By simulating poverty rates and the number of poor under two climate change scenarios, the paper uncovers some alarming trends. One of the primary findings is that the number of people living in extreme poverty worldwide could be nearly doubled due to climate change. In all scenarios, Sub-Saharan Africa is projected to bear the brunt, contributing the largest number of poor people, with estimates ranging between 40.5 million and 73.5 million by 2050. Another significant finding is the disproportionate impact of inequality on poverty. Even small increases in inequality can lead to substantial rises in poverty levels. For instance, if every country’s Gini coefficient increases by just 1 percent between 2022 and 2050, an additional 8.8 million people could be pushed below the international poverty line by 2050. In a more extreme scenario, where every country’s Gini coefficient increases by 10 percent between 2022 and 2050, the number of people falling into poverty could rise by an additional 148.8 million relative to the baseline scenario. These findings underscore the urgent need for comprehensive climate policies that not only mitigate environmental impacts but also address socioeconomic vulnerabilities. |
| Date: | 2025–07–15 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11173 |
| By: | Jaller, Miguel; Valencia-Cardenas, Maria C. |
| Abstract: | This report develops an equitable and sustainable freight-oriented land use (LU) methodology to support future planning activities, enabling the integration of freight activity across urban, suburban, and rural areas and facilitating the transition of heavy- and medium-duty vehicles toward zero-emission. The methods include a literature review to identify freight sustainable strategies, policy analysis at different scales, characterization of local context, and demand/supply patterns. The latter examines the spatial distribution and land use characteristics of freight facilities and retail/service sectors in the Sacramento region to inform sustainable and equitable planning strategies. This analysis identifies co-location patterns, accessibility gaps, and sectoral interactions using a multi-dimensional approach integrating spatial clustering, distance analysis, population-employment dynamics, and environmental burdens. Data sources include Longitudinal Employer-Household Dynamics Origin-Destination Employment Statistics (LODES), American Community Survey (ACS), CalEnviroScreen, and OpenStreetMap, alongside geospatial tools in R. The findings suggest the need for targeted interventions to address potential conflicts, service deserts, and environmental justice concerns. The study proposes actionable strategies for planners to support balanced economic development and improve access to essential services. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, Land Use, Sustainable Freight Strategies, Transportation Policy, Transportation Planning, Spatial equity, Demand-Supply interaction |
| Date: | 2025–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt2x20p4fg |
| By: | Sarah Wheeler (Flinders University of South Australia, University of Adelaide); Céline Nauges (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); R. Quentin Grafton (ANU - Australian National University) |
| Abstract: | The allocation of water across space and time is a key challenge of water governance, with demand and supply often not well matched over time and place. Best practice water pricing and markets may promote water conservation, yet their application is limited. We highlight the governance principles needed for best practice water pricing and water markets, describe differences across regions, and provide six key water demand governance recommendations, for both Global North and Global South countries. |
| Keywords: | Global South, Global North, water trade, water markets, water crisis, water security, climate change, sustainable development, taxes, costs, tariffs, subsidies. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05143769 |
| By: | Stefan Ambec; Claude Crampes; Stefan Lamp |
| Abstract: | The energy transition requires significant investment in intermittent renewable energy sources, such as solar and wind power. New generation capacities are generally procured through fixed price contracts, such as power purchase agreements and contracts for difference, or feed-in tariffs. With these designs, renewable technologies are selected based on their generation, regardless of their adequacy with demand and supply by other technologies. We show that fixed-price contracts implement the optimal portfolio of renewable technologies if the price is adjusted with a technology-specific bonus-malus system that depends on the correlation between renewable energy production and the wholesale electricity price. We estimate the bonus-malus for solar and wind power in California, France, Germany, and Spain and decompose it to identify the key market factors driving the adjustment. We argue that the bonus-malus measures the cost of integrating intermittent generation into the energy mix. Therefore, it should be added to the levelized cost of energy (LCOE) to obtain the cost of generating an additional megawatt-hour with a specific renewable technology. |
| Keywords: | electricity market, levelized cost of energy, climate change, intermittent renewable energy, feed-in tariff, power purchase agreement, contract for difference |
| JEL: | D47 L23 Q41 Q48 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11977 |
| By: | Terzi, A.; Ramsay, A. |
| Abstract: | As climate change intensifies, it is expected to affect countries across the globe in highly heterogeneous ways, depending on each nation's geographical location and level of development. Yet, most long-term economic projections do not take this factor explicitly into account. Could climate-induced weather events shape the relative wealth – and therefore geopolitical clout – of countries over the 21st century? In this paper, we present GDP projections for 164 countries between 2025 and 2100 under different SSP-RCP scenarios. Three fundamental conclusions emerge. First, under any climate scenario, the world is heading towards a multipolar equilibrium, with the US, China and Europe remaining the dominant economic blocs. India is on the rise, but is not currently expected to match the scale of these three by century’s end. Second, the global concentration of GDP is projected to decline, indicating increasing potential for geopolitical fragmentation and a relative "rise of the Rest". Third, a scenario marked by heightened geopolitical rivalry would exacerbate climate damages and harm growth in all countries, but particularly so for emerging markets, making China's surpassing of the US even more unlikely. Despite the large direct nominal losses arising from climate change, our results suggest that its indirect effects—through slower productivity growth and demographic shifts—will be even more consequential in shaping the future wealth of nations. |
| Keywords: | Climate Change, Geopolitics, Socio-Economic Pathways, Economic Growth, International Political Economy |
| JEL: | F02 F52 O44 O47 Q56 |
| Date: | 2025–07–08 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:0000 |
| By: | Schmitt, Maike |
| Abstract: | This paper analyses the relation between air quality and individual life satisfaction in Germany. Life satisfaction data from the German socio-economic panel is connected with daily county pollution in terms of carbon monoxide, nitrogen dioxide and ozone from 1998 to 2008. The assumed microeconometric happiness function is estimated considering individual fixed effects. Ozone has a significant negative impact on life satisfaction. The effect of carbon monoxide as well as nitrogen dioxide is not significant. Moreover, I found that people with environmental worries are more affected by ozone pollution. This was not the case for people with a bad health status. Using the marginal rate of substitution between income and air pollution, it is calculated that an increase of one µg/m³ in average county ozone has to be compensated by an increase of € 11.33 in monthly net household income to hold an average individual's life satisfaction constant. |
| Date: | 2025–06–16 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:155306 |
| By: | Yafei Wang; Marielle Brunette; Fanny Claise |
| Abstract: | Forest insurance is a relevant tool to consider in a context of increasing natural hazard due to climate change. However, forest insurance is highly heterogeneous from one country to another, with some countries having large insured forest areas and others not. In this article, we attempt to identify the reasons for this heterogeneity. To do so, we compare the forest insurance schemes of two countries, France and China. France is characterized by a low level of insured forest area, while China is the opposite. We identify differences and similarities between the two schemes that can explain the heterogeneity in terms of insured area. In particular, we highlight the different role of the government in these schemes. Finally, we present some innovative insurance products likely to encourage insurance adoption. |
| Keywords: | Insurance, Forestry. |
| JEL: | G22 Q54 Q23 Q58 O57 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2025-14 |
| By: | Verónica Acurio Vásconez; Mónica Pereira Henriques |
| Abstract: | This paper explores the nuanced interplay between the green energy rebound effect and the elasticity of substitution within a Solow growth model. Our study characterizes how the rebound effect varies with the elasticity of substitution between production factors. Our findings demonstrate that technological progress in green or fossil energy leads to different consumption patterns depending on the elasticity of substitution. For substitution elasticities below one, technological advances result in slower increases in energy consumption relative to labor growth, while for elasticities above one, energy consumption accelerates. These insights underscore the critical role of substitution elasticities in shaping effective energy policies, highlighting opportunities to mitigate the rebound effect and promote sustainable energy transitions. |
| Keywords: | rebound effect, energy transition, Solow model, elasticity of substitution. |
| JEL: | E13 O41 O44 Q43 Q55 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2025-12 |
| By: | Jeoffrey Dehez (UR ETTIS - Environnement, territoires en transition, infrastructures, sociétés - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sandrine Lyser (UR ETTIS - Environnement, territoires en transition, infrastructures, sociétés - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Bruno Castelle |
| Abstract: | Objectives To predict beachgoer decision to enter the water at a high-energy surf beach, in southwest France. Methods We built a unique multidisciplinary database combining data collected by an on-site beachgoers survey, weather stations, marine buoys and tidal reconstruction. Human, weather and meteocean factors were considered as potentially predictive of beachgoer behaviour. We employed a logistic regression analysis to predict beachgoers' decision to enter the water on any given day at a high-energy recreational beach. Results We demonstrated that both environmental and human factors influence a beachgoer's decision to enter the water. Daily mean wave height and daily mean insolation duration were significant predictors at the p<0.001 level, while age, place of residence and self-confidence in swimming out of a rip current were significant at the p<0.05 level or higher. Beachgoers were more likely to enter the water on sunny days with lower waves. Younger individuals, those living outside the Landes département, and those who declared themselves to be ‘confident' or ‘uncertain' about their ability to swim out of a rip current expressed a higher propensity to enter the water. Our model has an accuracy, F-Score, precision and recall of 71%, 73%, 86%, 79%, respectively. Conclusions Beachgoer exposure on any given day can ultimately be predicted by coupling our model with beach attendance models. This would allow for the design of rescue and preventive operations on days with high expected exposure. While models based solely on environmental factors can be used to forecast beach risks, incorporating human factors into the model provides valuable insight for crafting prevention messages. In this regard, lifeguards could engage more actively with beach users to deliver appropriate safety messages. |
| Keywords: | Drowning prevention, Risk forecasting, Beach Safety |
| Date: | 2025–05–08 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05064341 |
| By: | Jakub Sokołowski; Joanna Mazurkiewicz |
| Abstract: | The new carbon tax (ETS2) will increase the cost of heating with coal and gas starting in 2027. Rising energy prices raise concerns about a growing risk of energy poverty. The Social Climate Fund is intended to protect vulnerable households from excessive price increases. It will finance direct transfers and investments aimed at reducing energy consumption, such as thermal retrofits. We show that the risk of energy poverty will increase after the introduction of ETS2, even if thermal retrofitting investments are implemented. Therefore, direct transfers will be necessary. The budget of the Social Climate Fund will be sufficient to ensure that transfers protect low-income households from excessive energy price increases. |
| Keywords: | Social Climate Fund, energy poverty, ETS2 |
| JEL: | D63 H23 I32 Q48 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ibt:ppaper:pp022025 |
| By: | Paunić, Alida |
| Abstract: | Reducing harmful emissions and decreasing costs of large weather problems is the aim of today. This means new strategies and investment in renewable types of energy. The most countries still linger in old system contributing to its own problems. If problems are not locally solved the world initiatives will reach the end point. |
| Keywords: | energy, production, consumption, projects |
| JEL: | Q2 Q3 Q4 Q5 Q58 |
| Date: | 2025–06–13 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125106 |
| By: | Francisco Blasques (Vrije Universiteit Amsterdam and Tinbergen Institute); Paolo Gorgi (Vrije Universiteit Amsterdam and Tinbergen Institute); Siem Jan Koopman (Vrije Universiteit Amsterdam and Tinbergen Institute); James Sampi (World Bank) |
| Abstract: | We empirically investigate the economic impact of natural disasters on food prices and production. We address the key issues of data aggregation and counterfactual biases. Our data set consists of regional information on prices and production for fourteen food products in Peru. This granularity level of the data allows us to disentangle nominal from real effects, while we still can account for within-country differences. On the other hand, the random nature of intense rainfalls and droughts allows us to establish a natural counterfactual for each event by comparing between and within-regions. Our empirical results show that prices increase in the aftermath of disasters, while production strongly declines, which mask the price increases at the macroeconomic level. This is particularly apparent during extreme events. The supply channel turns out to be the main mechanism through which disasters affect prices. These effects are mostly heterogeneous. When conditioning on storage life-duration of the products, we find that prices of perishable products are affected by rainfalls only while those of semi-durable products by both rainfalls and droughts. |
| Keywords: | Climate events, price, production, fixed effects panel data, difference-in-differences |
| JEL: | C33 E20 Q54 |
| Date: | 2025–04–11 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20250024 |
| By: | U.S. Environmental Protection Agency (EPA) |
| Abstract: | The Technical Guidance for Assessment Environmental Justice in Regulatory Analysis is designed to help EPA analysts evaluate potential environmental justice (EJ) concerns associated with EPA regulatory actions. It provides recommendations for analysts on how to assess the existence of EJ concerns prior to the rulemaking and whether such concerns are exacerbated, mitigated, or remain unchanged for each regulatory option under consideration. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ags:enecgd:348895 |
| By: | Magdalena Gadek; Joanna Kott; Marek Kott; Jagoda Mrzygłocka-Chojnacka; Katarzyna Walecka-Jankowska; Anna Kowalska-Pyzalska |
| Abstract: | The aim of the article was to deepen the understanding of the implementation of ESG (Environmental, Social, Governance) principles within the small and medium-sized enterprises (SMEs) sector in Poland, taking into account the impact of company size on the level of knowledge about ESG issues, the motives for undertaking related actions, as well as the state of ESG implementation and reporting. The study was conducted using a quantitative method (CAWI) on a sample of 533 enterprises. The results indicate that both the level of ESG knowledge and the scope of implemented actions increase with the size of the company. The main motivators for enterprises are regulatory requirements and market and client pressure, which are particularly evident among medium-sized enterprises. The analysis also identified significant implementation barriers, such as limited resources and the lack of coherent reporting standards. The article highlights the necessity of enhancing educational and financial support for micro and small enterprises, as well as the need for appropriate regulatory adjustments to encourage SMEs to actively participate in the transition towards sustainable development. |
| Keywords: | ESG; CAWI; SME; Sustainable Development; Poland |
| JEL: | Q01 Q58 M14 M21 O35 D22 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ahh:wpaper:worms2504 |
| By: | Ekoh, Susan; Martin-Shields, Charles; Kitzmann, Carolin; Küssau, Nina; Pfeffer, Mario; Platen, Merle; Reinel, Theresa; Setrana, Mary Boatemaa; Appiah Kubi, Johnson Wilson; Effa, Stella |
| Abstract: | Climate change poses an existential threat to individuals and communities across the world. Populations with existing socio-economic vulnerabilities are the most affected, with people already experiencing climate-related losses and damages. Extreme weather events and other adverse impacts of climate change lead to forced displacement of populations to, from and within cities. Hence, building and supporting social cohesion in displacement contexts will be a key activity for development cooperation actors. This research study therefore explores these questions: How do the elements of social cohesion, trust, inclusive identity and cooperation for the common good, evolve within communities and across institutions in Accra's informal settlements? Additionally, what role do climate resilience efforts play in fostering or hampering vertical and horizontal social cohesion in Accra's informal settlements?Our findings suggest that limited institutional resilience efforts contribute to weak vertical cohesion between neighbourhoods and city authorities, undermining collective responses to climate challenges. The research emphasizes the need for a more integrated approach, whereby community-led initiatives and state interventions work together to strengthen resilience and social cohesion in Accra's informal settlements. |
| Keywords: | Urban Displacement, Social Cohesion, Climate Change, Ghana, Accra |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:diedps:319872 |
| By: | Emiliano Basco; Diego Elías; Maximiliano Gómez Aguirre; Luciana Pastore |
| Abstract: | Agriculture, and especially soybean production, has a critical role in Argentina's economy, as a major contributor to GDP and export revenue. This paper studies the impact of climate variability on soybean yields in Argentina using a novel department-level dataset spanning 1980–2023. We estimate a fixed effects spatial error model (SEM) to quantify the long-run effects of weather shocks - measured by extreme heat, precipitation, and ENSO phases - while controlling for economic and technological factors such as seed technology and relative prices. Our results show that extreme heat significantly reduces yields, while moderate rainfall boosts them up to a nonlinear threshold. El Niño phases increase yields, whereas La Niña events are detrimental. Technological adoption and favorable price signals also enhance productivity. These findings highlight the importance of accounting for both climatic and spatial dynamics when analyzing agricultural outcomes. The model provides a strong empirical basis for forecasting soybean yields and informing policy decisions under increasing climate uncertainty. These models can be employed as effective tools for anticipating yield outcomes under different climate scenarios and utilized in climate-related stress exercises. This work provides valuable insights for policymaking decisions, contributing to prepare for potential economic impacts stemming from climate risks on Argentina's agricultural sector. |
| Keywords: | Soybean Yields, Argentina, Forecasting, Model Selection |
| JEL: | Q10 Q12 C13 C32 C33 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1278 |
| By: | Nathalie Lazaric (GREDEG, CNRS, Université Côte d'Azur, France; University of Gothenburg, Sweden); Loubna Echajari (GREDEG, CNRS, Université Côte d'Azur, France; Tech-CICO Research Group - LIST3N; UTT - Université de Technologie de Troyes, France); Dorota Leszczyńska (IDRAC Business School, campus de Nice, France) |
| Abstract: | We explore potential changes to the organizational routines of Bordeaux winemakers faced with the need to reduce their use of pesticides – one of the grand challenges for agriculture. A routine dynamics lens suggests that the goal of sustainability can be achieved through various paths. The uncertainties related to reducing the use of chemical pesticides to encourage ecological biodiversity have resulted in efforts by viticulturalists, winemakers, and policy makers to find local solutions. Our results reveal a three-layered process of patterning and creating new routines. Our empirical findings contribute to theoretical work on routine dynamics and grand challenges. We show that there are several potential solutions to environmental problems based on new patterns and demonstrate that reflection is a major structural enabler of changes. Our research explores the ontological multiplicity of routines in the journey to achieving sustainability and the role of policy making in this process. |
| Keywords: | Routines Dynamics, Practices, Sustainability, Viticulture, Winemaking |
| JEL: | O33 R5 L21 L26 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-27 |
| By: | Rabah Arezki; Frederick van der Ploeg; Rick van der Ploeg |
| Abstract: | Economic super-powers are racing to control critical minerals in developing economies fueling conflict, environmental damage and poverty. In this paper, we first explore what could well constitute a new “critical minerals curse”. We then highlight the dualism of institutions required for developing countries to navigate the phenomenon. Specifically, we argue that the difficulty for developing countries rich in minerals lies in the balancing act between these two different types of institutions, namely outward- and inward-facing institutions. |
| Keywords: | imports, market concentration, natural resources, resource curse |
| JEL: | O12 O13 F14 F10 L12 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11966 |
| By: | Widmaier, A. |
| Abstract: | This paper constructs a novel biodiversity dataset for Brazil, measuring the annual change in species richness during 1985-2020 at 300m resolution. It then uses a spatio-temporal ARDL model to establish the long-run effects of bio-diversity loss on agricultural yields. Brazil lost 8 percentage points in species richness compared to an undisturbed baseline during 1985-2020, largely driven by substantial reductions in regions bordering the Amazon. Long-run crop yields decreased up to 4% for every percentage point in biodiversity loss, and up to 10% when considering pest control species. Resulting soybean and maize yield decreases reduced agricultural GDP by 15.3% in 2020. |
| Keywords: | Biodiversity, Crop Yields, Agriculture, Autoregressive Distributed Lag Model |
| JEL: | C23 C82 O13 Q11 Q57 R14 |
| Date: | 2025–03–26 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2543 |
| By: | Headey, Derek D.; Venkat, Aishwarya |
| Abstract: | Climate change is resulting in increased frequency of extreme weather events, especially in low- and middle-income countries (LMICs) already characterized by highly vulnerable malnourished populations. Unsurprisingly, there are many empirical studies of the linkages between extreme weather events and undernutrition, especially stunting and wasting in early childhood, and several existing reviews of this literature. However, the quality of empirical studies in this highly multi-disciplinary literature is uneven, and existing reviews do exhaustively illustrate the potential pitfalls of climate-nutrition analyses. In this more critical review, we therefore have five objectives. First, to map out the existing literature, particularly in terms of the types of dependent and independent variables used, the geographies in which different studies focus their analysis, and the types of statistical methods used. Our second objective is to illustrate the empirical limitations and pitfalls of this literature through a more critical review. Our third objective is to be critically constructive, by developing a checklist of good practices for analytical studies in this literature, which we hope will be formalized and broadly adopted. Our fourth objective is to illustrate the usefulness of these good practices through a deep dive into what we consider an exemplary study in the literature from Blom et al. (2022). Our final objective is to identify possible steps for new types of survey methods and data collection, actions for the adoption of best-practice analytical methods and identify important research questions for future research. |
| Keywords: | capacity development; climate change; nutrition; undernutrition; extreme weather events; stunting; wasting disease (nutritional disorder) |
| Date: | 2024–02–02 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:gsspwp:138887 |
| By: | U.S. Environmental Protection Agency (EPA) |
| Abstract: | EPA's Guidelines for Preparing Economic Analyses establish a sound scientific framework for performing economic analyses of environmental regulations and policies. They incorporate recent advances in theoretical and applied work in the field of environmental economics. The Guidelines provide guidance on analyzing the benefits, costs, and economic impacts of regulations and policies, including assessing the distribution of costs and benefits among various segments of the population. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ags:enecgd:348896 |
| By: | Lukas Hofmann (University of Amsterdam and Tinbergen Institute); Martijn Dröes (University of Amsterdam); Marc Francke (University of Amsterdam and Tinbergen Institute) |
| Abstract: | This paper examines the effect of land subsidence -- the gradual sinking of the Earth's surface -- on property values. Subsidence can negatively affect real estate by damaging building foundations and increasing vulnerability to flooding. Using detailed property transaction data from the Netherlands, combined with high-resolution geospatial data on both current and projected subsidence and flood risk, we find that properties currently experiencing subsidence sell at a 0.8% discount when built on foundations susceptible to damage. Additionally, flood-prone properties projected to experience future subsidence sell for 1.5% less. Compared to the actual costs and occurrence of these risks, our findings suggest that homeowners tend to underestimate the risks associated with foundation damage while overestimating the threat of future flooding. |
| Keywords: | Land subsidence, property prices, climate risk, risk perception |
| JEL: | G10 Q54 R30 |
| Date: | 2025–06–26 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20250040 |
| By: | Hasna, Z.; Hatton, H.; Jaumotte, F.; Kim, J.; Mohaddes, K.; Pienknagura, S. |
| Abstract: | This paper investigates how climate policies affect low-carbon innovation (as measured by patents) and assesses the link between such innovation and economic activity. Climate policies, including international cooperation, spur both specific and overall innovation, with regulations, emissions-trading systems, and expenditure measures such as R&D subsidies and feed-in tariffs being particularly impactful. In turn, low-carbon innovation raises economic activity as much as other types of innovation and past technological revolutions. However, the mechanisms are different: low-carbon innovation increases capital accumulation, while other types of innovation increase total factor productivity (TFP). |
| Keywords: | Low-Carbon Innovation, Growth, Climate Policies, Climate Change, Porter Hypothesis |
| JEL: | F64 H23 O33 O44 Q55 Q56 Q58 |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2544 |
| By: | Jain, Aakansha; Hwang, Roland; Ramji, Aditya |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2025–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt3g18x2tm |
| By: | Bo WU; Ioana FILIPAS |
| Abstract: | This paper investigates the GHG emission reduction incentive problem when a supply chain faces dual moral hazard and multi-goal. We innovatively characterize dual moral hazard and multi-goal functions of a supply chain and obtain some findings. First, when a brand prioritizes multiple goals, it will make greater efforts to reduce GHG emissions than the manufacturer. Surprisingly, the more complex the environment of moral hazard, the less likely the manufacturer will make concessions. In general, considering multi-goal of brand reduces the problem of double marginalization in a supply chain. Second, while supply chains face complex double moral hazard, the brand’s burden of GHG reduction can only be reduced by prioritizing heavily sustainability and consumer surplus goals. Third, firms face a dual moral hazard when pursuing sustainability and consumer surplus goals, which can sometimes be positive. |
| Keywords: | sustainable efforts; moral hazard; multi goals; risk aversion; uncertainty. |
| JEL: | Q51 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2025-25 |
| By: | Hazem, Nada; Zaki, Chahir |
| Abstract: | The Middle East and North Africa (MENA) region stands among the most vulnerable areas to the impacts of climate change. At the same time, with lax environmental regulations, this region’s integration into Global Value Chains (GVC) is modest. Thus, this paper aims to examine the effect of environmental stringency on GVC participation in MENA countries. To do so, using the World Bank Enterprise Surveys, this paper analyzes how environmental regulations and treaties affect both the extensive and the intensive margins of GVCs. The main results show that national environmental regulations increase the likelihood of integrating into GVCs when it is measured using both the simple and the strict definitions. This result highlights the role of such regulations in attracting GVCs in developing countries and thus lends support to the Porter Hypothesis. The paper also shows that these regulations increase the effect of spending on research and development on GVC. Yet, the results are less conclusive for the role of environmental treaties. These results remain robust when a mixed multilevel approach is used, and when large exporters, who might lobby to affect policy choices, are dropped from the analysis. In addition, at the sectoral level, national regulations are associated with higher GVC participation in the food sector in the MENA region and lower participation in the plastics one. Finally, regulatory stringency increases the probability of GVC participation for both SMEs and large firms, with the effect generally stronger for SMEs. |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11161 |
| By: | Zeina Hasna; Henry Hatton; Florence Jaumotte; Jaden Kim; Kamiar Mohaddes; Samuel Pienknagura |
| Abstract: | This paper investigates how climate policies affect low-carbon innovation (as measured by patents) and assesses the link between such innovation and economic activity. Climate policies, including international cooperation, spur both specific and overall innovation, with regulations, emissions-trading systems, and expenditure measures such as R&D subsidies and feed-in tariffs being particularly impactful. In turn, low-carbon innovation raises economic activity as much as other types of innovation and past technological revolutions. However, the mechanisms are different: low-carbon innovation increases capital accumulation, while other types of innovation increase total factor productivity (TFP). |
| Keywords: | low-carbon innovation, growth, climate policies, climate change, Porter Hypothesis |
| JEL: | F64 H23 O33 O44 Q55 Q56 Q58 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-39 |
| By: | van Dorp, Mark; Martin, Mary; Bojicic-Dzelilovic, Vesna |
| Abstract: | As competing guidelines and standards to encourage responsible business behavior and social impact management proliferate (e.g., the Do No Significant Harm principle and ESG standards), companies and investors are struggling to define basic concepts and devise usable methodologies for operating in fragile and conflict-affected settings. Objectives are framed using large, general terms like peace and sustainable development. Even organizations that aspire to positive social and environmental impacts toward peacebuilding find their ambitions thwarted when global frameworks must be translated into the messy and chaotic conditions on the ground. In this article, we outline an approach using forward-looking human security partnerships between business and local stakeholders to identify and assess the potential peace value and risks of business interventions as they materialize over time. Next, we outline lessons from Colombia and the Democratic Republic of Congo and suggest how businesses can use novel governance arrangements to design and measure social impacts that build peace via improvements to human security. |
| Keywords: | corporate social impact; peacebuilding; ESG issues; human security; UN SDGs |
| JEL: | L81 |
| Date: | 2025–07–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127714 |
| By: | Banuri, Sheheryar; Sergenti, Ernest John |
| Abstract: | Climate change is a global challenge requiring unprecedented levels of collective action. In this context, this paper asks: do appeals to historical responsibility facilitate or hinder collective action? This paper uses a simple lab experiment simulating climate mitigation bargaining between high- and low-income countries. A key design feature is that the need for mitigation is triggered based on historical actions that were undertaken without knowledge of their impact on the environment (and hence, the need for mitigation). Two treatment arms were conducted, a baseline where the cause for mitigation (past actions) is not revealed, and a treatment—“the shadow of history”—where the historical origins of the problem are made explicit. In both conditions, negotiations take place regarding contributions to a mitigation fund (i.e., collective action). Results show that revealing the shadow of history marginally increases average contributions, but the distribution of those contributions changes markedly. When made aware of the historical causes of the climate problem, low-income countries significantly reduce their contributions, while high-income countries contribute more—offsetting the reduction. Critically, the overall welfare of low-income countries increases, while it decreases for high-income countries. Moreover, results from textual analysis of chat data show greater tension when historical responsibility is made explicit, with more negative sentiment and adversarial conversations. These results suggest that appealing to historical responsibility appears to be a successful negotiations tactic for poor countries. |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11160 |
| By: | David Bartolini; Andrew Ceber; Ms. Valerie Cerra; Pedro Juarros; Yujin Kim; Junko Mochizuki; Christine J. Richmond |
| Abstract: | This paper describes a macroeconomic framework integrating disasters in the analysis of growth and long-term economic resilience. The framework is a dynamic growth model incorporating endogenous human and physical capital accumulation, fiscal policy interventions, and public debt dynamics. The model allows for flexible analyses of slow and fast onset climate impacts and fiscal policy reforms to foster sustainable long-term growth and adaptation, including enhanced spending on resilient investment and non-structural adaptation options. Focusing on adaptation policies, specifically on investing in resilient infrastructure, we present the country cases of Benin and Jamaica, examining tradeoffs and synergies in macro-fiscal policies for addressing sustainable long-term growth and the impacts of disasters. |
| Keywords: | Fiscal Policy; Adaptation; Debt Sustainability; Public Investment; Natural Disasters; Economic Growth |
| Date: | 2025–07–04 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/135 |
| By: | Taco Prins (University of Amsterdam); Frederick van der Ploeg (University of Amsterdam and Tinbergen Institute); Ton S. van den Bremer (University of Amsterdam and Tinbergen Institute) |
| Abstract: | We analyse optimal investment in one of the most important forms of climate adaptation: flood protection. Investments to build and heighten dykes and surge barriers involve considerable adjustment costs, so that their construction locks in the level of flood protection for some time. Investment decisions must take into account both economic and sea level rise uncertainty over a horizon of several decades, where the latter is to a large extent driven by global warming. We put forward a tractable macro-finance DSGE model that includes flood risk. We obtain solutions for optimal flood protection as a function of these uncertainties, costs, and preferences regarding impatience, risk aversion and intertemporal substitution. Sea level rise uncertainty always leads to more flood protection. Economic uncertainty leads to less (more) protection if the elasticity of substitution is greater (less) than one. We illustrate our results with a calibrated case study for the Netherlands. |
| Keywords: | Sea level rise, flood risk, macroeconomic risk, climate adaptation, discounting, risk aversion, intertemporal substitution |
| JEL: | F64 Q51 Q54 |
| Date: | 2025–04–25 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20250030 |
| By: | Bezerra De Goes, Carlos Andre; Canozzi Conceicao, Otavio; Lara Ibarra, Gabriel; Lopez-Acevedo, Gladys |
| Abstract: | What is the environmental impact of exports? Focusing on 2000–20, this paper combines customs, administrative, and census microdata to estimate employment elasticities with respect to exports. The findings show that municipalities that faced increased exports experienced faster growth in formal employment. The elasticities were 0.25 on impact, peaked at 0.4, and remained positive and significant even 10 years after the shock, pointing to a long and protracted labor market adjustment. In the long run, informal employment responds negatively to export shocks. Using a granular taxonomy for economic activities based on their environmental impact, the paper documents that environmentally risky activities have a larger share of employment than environmentally sustainable ones, and that the relationship between these activities and exports is nuanced. Over the short run, environmentally risky employment responds more strongly to exports relative to environmentally sustainable employment. However, over the long run, this pattern reverses, as the impact of exports on environmentally sustainable employment is more persistent. |
| Date: | 2025–07–14 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11172 |
| By: | Stefano Di Bucchianico; Mario di Serio; Matteo Fragetta; Mr. Giovanni Melina |
| Abstract: | A Bayesian factor-augmented interacted vector autoregression framework purified of expectations is employed to analyze how government spending shocks have impacted CO2 emissions in the United States from the 1980s to the pre-pandemic period. Consumption-generated emissions are found to have generally risen following fiscal expansions, although their elasticity to government spending has declined substantially over time—with the five-year elasticity dropping from about 0.5 in the early 1980s to 0.1 by 2019. In contrast, positive government spending shocks increased production-generated emissions in the early 1980s—with a five-year elasticity near 0.4—but reversed course by the 1990s, eventually reaching an elasticity of –0.5 by the end of the sample. Examination of time-varying interaction variables suggests that environmental regulation, tertiarization, and a larger share of spending on public goods can mitigate—or even reverse—the emissions growth associated with economic expansions driven by government spending. Furthermore, government consumption, rather than investment, is chiefly responsible for these shifts in emissions elasticities. |
| Keywords: | government spending; fiscal policy; CO2 emissions |
| Date: | 2025–07–04 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/132 |
| By: | Jean-Marc Blazy (ASTRO - Agrosystèmes tropicaux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); M’hand Fares (UMR SELMET - Systèmes d'élevage méditerranéens et tropicaux - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Alban Thomas (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | The objective of our paper is to provide an explanation for the lack of joint adoption by farmers of cleaner technologies in banana production, specifically fallow period (FP) and disease-free seedlings (DFS). Our hypothesis is that while these technologies are synergistic from an agronomic and environmental perspective, and thus efficient from a social interest perspective, they are substitutable rather than complementary from a farmer's private interest perspective. In other words, farmers receive lower returns from adopting both technologies together than from adopting them in isolation. To test this hypothesis, we present a unified empirical framework for assessing complementarity. We estimate a structural model of complementarity that overcomes the unobservable heterogeneity bias found in previous models using a database of 607 banana farmers in the French West Indies. Our results support our hypothesis, showing a substitution effect between FP and DFS rather than a complementarity effect. Moreover, we observe a contrasting profile of adopting farmers: smallholders who are reluctant to change adopt FP, while more specialized farmers who anticipate a pesticide ban adopt DFS. A public policy that promotes joint adoption should compensate smallholders for the cost of the DFS technology, while compensating more productive farmers for leaving their land fallow. |
| Keywords: | Agroecology, clean technologies, complementarity, joint adoption |
| Date: | 2025–03–19 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05008165 |
| By: | Geoffroy Dolphin; Gianluigi Ferrucci |
| Abstract: | The EU Carbon Border Adjustment Mechanism (CBAM) came into force on October 1, 2023, introducing reporting requirements for importers of covered products and, from 2026, an obligation to pay a fee on the carbon content of imported goods. This paper uses indices of ad valorem tariffs to assess the incidence of the EU CBAM on both EU member states and the EU’s trading partners. Overall, the direct impact on EU countries’ trade is estimated to be small, adding 0.1 percent to the value of EU imports when averaged across all imports, and 0.04 percent to the average cost of non-EU countries’ exports to the EU—with a maximum of 1.2 percent. However, effects could be sizeable for specific products such as iron, steel and aluminium, which can help explain CBAM’s political salience. Moreover, an expanded CBAM featuring full coverage of ETS sectors and a significantly higher carbon price could entail larger costs in the more distant future. |
| Keywords: | Carbon Leakage; Emissions Trading; Carbon Taxation; Trade Policy |
| Date: | 2025–06–20 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/125 |
| By: | Jan Pedro Zeiss (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Valeria Jana Schwanitz; August Wierling; Timothy Peter Marcroft; Constantin von Beck; Arnaud Diemer (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne) |
| Abstract: | In view of the emerging social, environmental and economic crises, the degrowth movement questions the current growth paradigm. The fundamental criticism put forth by degrowth is that unlimited growth cannot be sustained within the planetary boundaries. Citizen-owned and democratically controlled Community Energy Initiatives (CEI) engage since many years in the sustainable energy transition. This paper investigates to what extent they align with the degrowth movement. Drawing from an inventory of over 10000 European Community Energy Initiatives, we go beyond the few case studies and theoretical think-pieces. We test potential alignment by empirically investigating indicators for the following degrowth imperatives: (1) Reduce environmental impact, (2) Re-orient economic priorities, (3) Reduce inequality (4) Foster democratic decision making, and (5) Re-localize production and consumption. The results suggest a strong alignment with the environmental impact reduction, democratic decision making, and relocalized production and consumption imperatives, while the alignment with the economic re-orientation and inequality reduction imperatives varies considerably across countries and types of initiatives. |
| Abstract: | Face aux crises sociales, environnementales et économiques émergentes, le mouvement de la décroissance remet en question le paradigme actuel de la croissance. La critique fondamentale formulée par la décroissance est qu'une croissance illimitée ne peut être maintenue dans les limites de la planète. Les initiatives énergétiques communautaires (IEC), détenues par des citoyens et contrôlées démocratiquement, s'engagent depuis de nombreuses années dans la transition vers l'énergie durable. Cet article étudie dans quelle mesure elles s'alignent sur le mouvement de décroissance. À partir d'un inventaire de plus de 10000 initiatives énergétiques communautaires européennes, nous allons au-delà des quelques études de cas et des réflexions théoriques. Nous testons l'alignement potentiel en examinant empiriquement les indicateurs des impératifs de décroissance suivants : (1) réduire l'impact environnemental, (2) réorienter les priorités économiques, (3) réduire les inégalités, (4) favoriser la prise de décision démocratique et (5) relocaliser la production et la consommation. Les résultats suggèrent un fort alignement sur les impératifs de réduction de l'impact environnemental, de prise de décision démocratique et de relocalisation de la production et de la consommation, tandis que l'alignement sur les impératifs de réorientation économique et de réduction des inégalités varie considérablement d'un pays à l'autre et d'un type d'initiative à l'autre. Traduit avec DeepL.com (version gratuite) |
| Keywords: | Community energy Energy cooperatives Degrowth Energy transition European Union |
| Date: | 2025–05–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05110749 |
| By: | Rhomir S. Yanquiling |
| Abstract: | The People’s Survival Fund (PSF) is the Philippine government’s flagship climate adaptation finance program. Publicly financed, the fund is designed to integrate adaptation activities to resilience building, disaster risk reduction, and poverty alleviation in poor and vulnerable local communities. Since the signing into law of the PSF (Republic Act 10174) on 16 August 2012, only a few local government units have been able to access  the fund. Institutionally linked barriers and governance gaps in the implementation and disbursement of the fund seem to negate the benefits accruing from the direct access nature of the fund and the decentralized implementation of adaptation activities at the local level. Using a mix of quantitative and qualitative methods, this study assessed the legal-policy framework upon which the PSF operates and mapped out the barriers that hinder its implementation. At the macro level, the PSF Law is not a policy in isolation but a policy that is embedded in an existing policy constellation. The PSF Law, along with its surrounding legal-policy framework, is generally compliant with all the principles of good governance on climate finance delivery (i.e., implementability, coherence, and legitimacy). Moreover, fundamental institutional architecture and processes are in place at the national level. Barriers identified for the effective implementation and delivery of the PSF include those on policy, institutional, and operational. Improving the PSF’s governance and institutional architecture is still a work in progress. The findings of this study deduce policy implications that strike at the heart of fundamental governance and institutional policy areas.  |
| Keywords: | climate change local policy, people's survival fund, Philippines, climate change adaptation, climate change funding |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:sag:seadps:2025:606 |
| By: | Sofia Lamperti (INPG - Institut National Polytechnique de Grenoble, CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes); Jean-Marie Courrent (Labex Entreprendre - UM - Université de Montpellier, MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School); Sylvie Sammut (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School) |
| Abstract: | A growing number of business incubation programs are showing interest in supporting sustainable entrepreneurship in response to pressing social and environmental challenges. However, while the need for a sustainability orientation is widely acknowledged, it remains unclear how and to what extent business incubators are translating this interest into concrete actions. The risk that the focus of business incubators on sustainability may remain largely symbolic-expressing a commitment without meaningful change-rather than substantive, with a real impact on their structures and programs, exists. Drawing on the distinction in institutional theory between symbolic and substantive actions, this study presents a comparative case analysis of three French business incubators to explore how they operationalize their missions to foster sustainable new ventures. The findings provide both research and practical insights on understanding and implementing sustainability orientation within business support structures. |
| Keywords: | Business incubators Sustainability orientation Institutional theory Sustainable entrepreneurship Case study methodology |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05101546 |
| By: | John Aguirre; Alan Ledesma; Fernando Perez; Youel Rojas |
| Abstract: | This paper studies how El Niño Costero, a large climatic event, generates physical risks disrupting business cycles and hindering the effectiveness of monetary policy. Using Peruvian data, we find consistent empirical evidence that El Niño shocks leave a footprint on the economy akin to a supply-side shock: it exerts inflationary pressures while simultaneously contracting GDP. The effects are very persistent and reflect the differentiated effects across sectors in the economy. Primary sectors response is more immediate and larger but persistent. Conversely, non-primary sectors experience lagged effects that become considerably more persistent and important later on. We integrate these empirical findings into a semi-structural model that incorporates five non-linear transmission channels through which El Niño affects the economy. These non-linearities present a challenge for monetary policy design, as the economic uncertainty and the cost in stabilizing the economy depends on the frequency of El Niño events. Faced with such large-scale shocks, hawkish conventional monetary policy remains a relevant, though limited, tool for stabilizing inflation dynamics. |
| Keywords: | climate, extreme weather events, growth, inflation, financial and macroeconomic stability |
| JEL: | E31 E52 O44 Q54 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1276 |
| By: | Ketterling, Corinna Irina |
| Abstract: | This article analyzes the evolving legal landscape of Environmental, Social, and Governance (ESG) regulation and standardization, highlighting the fragmentation, ambiguities, and power dynamics that characterize current ESG governance. First, it offers a conceptual clarification of ESG and contrasts it with the historically established Corporate Social Responsibility (CSR) framework, tracing the shift from voluntary ethics-based approaches to legally binding obligations. Second, it examines the transatlantic divide between the United States and the European Union, with a particular focus on the transition from voluntary disclosure in the U.S. to mandatory ESG reporting frameworks in the EU. Third, the paper investigates the definitional inconsistencies and methodological challenges surrounding ESG standards, ratings, and frameworks. Fourth, it provides an overview of current EU legal instruments—including the CSRD, EU Taxonomy, and EFRAG initiatives—and analyzes their implications for companies, regulators, and investors. Finally, it presents a comparative snapshot of the global status quo regarding ESG standard integration and regulatory approaches. Across all sections, the paper highlights the need for a coherent legal framework, robust quality infrastructure, and harmonized standard-setting mechanisms to support effective and credible ESG implementation. Note: This is the full length article (approx. 24, 000 words), while a shortened version is currently in preparation for submission to a peer-reviewed journal. |
| Date: | 2025–06–17 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:47efm_v1 |
| By: | Ali ZEGGAGH; Serge GARCIA |
| Abstract: | Water scarcity is a major challenge in many Mediterranean countries, where intermittent water supply and inefficient distribution lead to significant economic and social costs. This paper examines the cost structure of drinking water utilities in Algeria, focusing on the impact of water rationing, network inefficiencies and production constraints. Using a translog cost function estimated with a Cluster-Robust Correlated Random Effects Instrumental Variable (CRE-IV) approach, we analyse the determinants of variable costs and assess network economies such as economies of density and scale, as well as trade-offs in water supply management. Our results indicate the presence of economies of scale in both water production and distribution, with cost elasticities of 0.7415 for production capacity and 0.7904 for distributed volume, suggesting that expanding service coverage can reduce average costs. However, we find strong cost complementarities between water losses and distributed volume, suggesting that utilities often prioritise increasing supply over network maintenance. Furthermore, the interaction between (possibly reduced) service hours and production capacity shows a significant positive effect on marginal costs due to the water availability constraint, highlighting the economic burden of continuous water supply in a context of resource scarcity. By estimating the shadow price of water in situ, we quantify the opportunity cost of water abstraction, and find a value of 18.59 DZD/m3, compared to the estimated marginal cost of 5.77 DZD/m3. This reflects the problem of water scarcity and the inefficiency of current supply strategies. Our findings underscore the need for better resource allocation policies that emphasise network rehabilitation, demand-side management and cost-reflective pricing mechanisms, hence providing important insights for policy makers seeking to improve the efficiency and sustainability of water supply systems in water-stressed regions. |
| Keywords: | Drinking water distribution, water supply interruptions, water scarcity, water losses, cost function, shadow price of water. |
| JEL: | C23 C26 D24 L95 Q25 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2025-19 |
| By: | Zorbas, Christina; Resnick, Danielle; Jones, Eleanor; Suri, Shoba; Iruhiriye, Elyse; Headey, Derek D.; Martin, Will; Vos, Rob; Arndt, Channing; Menon, Purnima |
| Abstract: | Achieving Sustainable Development Goal 2 (SDG 2), Zero Hunger, by 2030 is in jeopardy due to slowing and unequal economic growth, climate shocks, the COVID-19 pandemic, conflict, lackluster efforts toward investing in food system sustainability and agricultural productivity growth, and persistent barriers to open food trade. Nevertheless, numerous commitments to achieving SDG 2 have been repeatedly expressed by Heads of State and Ministers at diverse global meetings since the SDGs became a focus in 2015. To identify the intensity and degree of convergence of commitments that national governments have collectively made to realizing SDG 2, this paper provides a qualitative assessment of statements from more than 68 global meetings and 107 intergovernmental commitment documents since 2015. Analyzing these commitments against seven critical factors necessary for impact at scale, we find that stated intentions to solve the global food security and hunger challenge have become more pronounced at global meetings over time, especially in the wake of the crises. However, the intent to act is not consistently matched by commitments to specific actions that could help accelerate reductions in hunger. For instance, while increased financing is often recognized as a priority to reach SDG 2, few commitments in global fora relate to detailed costing of required investments. Similarly, many commitment statements lack specificity regarding what and how policy interventions should be scaled up for greater action on SDG 2 or the ways to enhance different stakeholders’ capacities to implement them. While horizontal coherence was mentioned across most global fora, it was only present in about half of the commitment statements, with even less recognition of the necessity for vertical coherence from global to local levels. Despite global acknowledgement of the importance of accountability and monitoring, usually by way of progress reports, we find few consequences for governments that do not act on commitments made in global fora. We discuss the implications of these findings and offer recommendations for how to strengthen the commitment-making process to help accelerate actions that can reduce food insecurity and hunger and augment the legitimacy of global meetings. This work can inform the policy advocacy community focused on SDG 2 and those engaged in catalyzing and supporting intergovernmental action on other SDGs. Our findings reiterate the importance of attention to global governance and the political economy of global meetings—which is necessary to strengthen our focus on delivering outcomes that put the world on a path that brings the solution to the problems of global hunger and food insecurity within reach. |
| Keywords: | food security; diet; accountability; food policies; hunger; governance; nutrition |
| Date: | 2024–02–05 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:gsspwp:138946 |
| By: | Martin, Will; Vos, Rob |
| Abstract: | Progress toward reducing global hunger has stalled since the mid-2010s. In fact, hunger is on the rise again, driven by slowing economic growth and protracted conflict, intensified by the impacts of climate change and economic shocks in many low- and middle-income countries. In addition, food systems worldwide have suffered disruptions in recent years, caused by the COVID-19-related global recession and associated supply chain disruptions, and exacerbated by the war in Ukraine. These factors have also jeopardized efforts at addressing the challenges to food system sustainability. The 2030 Agenda for Sustainable Development and the related sustainable development goals (SDGs), defined in 2015, recognize these challenges and set ambitious targets to end hunger and all forms of malnutrition and to make agriculture and food systems sustainable by 2030. Many other fora have restated and reiterated these ambitions, including the 2021 United Nations Food System Summit (UNFSS). While governments around the world have subscribed to these ambitions, collectively they have not been very specific as to how to achieve the SDGs and related goals and targets, except for three means of implementation (MOI) involving (i) increases in research and development, (ii) reductions in trade distortions, and (iii) improved functioning and reduced volatility in food markets. This paper is part of a wider effort at assessing the international community’s follow-through on the above ambitions and the related (implicit or explicit) commitments made toward action for achieving them. While not presenting new research findings, we bring together available evidence and scenario analyses to assess the progress made toward the ambitions for transforming food systems, the actions taken in regard of the internationally concerted agenda, and the potential for accelerating progress. The number of hungry people in the world has risen from 564 million in 2015, when the SDGs were agreed, to 735 million in 2022. While declines to between 570 and 590 million by 2030 are projected, this is far above the 470 million projected in the absence of the COVID-19 pandemic and the Ukraine war. The share of the world’s people unable to afford healthy diets is projected to decline from 42 percent in 2021 to a still far too high 36 percent by 2030. On the means of implementation, levels of spending on agricultural research and development have increased, particularly in key developing countries such as Brazil, China and India. However, rates of investment remain too low for comfort, particularly in low-income countries. Also, little progress has been made in reducing agricultural trade distortions and many countries continue to use trade policy measures, such as export restrictions, which have proven to increase the volatility of both world and domestic food prices. We conclude that progress toward the SDG-2 targets has been dismal, and that the food system challenges have only become bigger. But we also find that it is not too late to accelerate progress and that the desired food system transformation can still be achieved over a reasonable timespan and at manageable incremental cost. Doing so will require unprecedented concerted and coherent action on multiple fronts, which may prove the biggest obstacle of all. |
| Keywords: | food security; food systems; hunger; nutrition; diet; sustainable development goals |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:gsspwp:138940 |
| By: | Rana, Abdul Wajid; Gill, Sitara; Meinzen-Dick, Ruth S.; ElDidi, Hagar |
| Abstract: | Pakistan is highly dependent on irrigated agriculture for employment, income generation and food security—around 90 percent of all food production relies on either surface or groundwater irrigation. The growing dependence of agriculture but also industries and the drinking water sector on groundwater has led to the overexploitation of groundwater resources and, in some areas, to the deterioration of groundwater quality. Fiscal incentives for solarization of irrigation/drinking water pumps are likely to further increase water withdrawals and make water governance more complex. To understand the perspectives of groundwater users, a qualitative study was conducted in the alluvial groundwater systems of Punjab as well as the hard rock systems of Balochistan. Interviews with key informants at federal, provincial, and district level were also conducted to capture insights from additional decisionmakers affecting groundwater management and governance. The study identified a series of challenges around groundwater management and use, including overexploitation of groundwater resources, worsening groundwater quality raising serious health challenges, lack of communities’ participation in decision making, particularly women, non-availability of actionable data, weak enforcement of laws and regulations relating to groundwater governance, and partisan decision-making driven by political influentials and local bureaucracies. Solarization of irrigation pumps without proper regulatory and monitoring framework is expected to exacerbate groundwater extraction and accelerate water stress. The study strongly suggests an urgent need for not only integrated water management at all levels with equitable distribution of water resources but also to engage local communities and other stakeholders, including women in water conservancy awareness campaigns, groundwater quality monitoring, and decision-making. Moreover, the management and governance of water, particularly groundwater, must be insulated from political and partisan decision making. It is equally important to look at the quality of groundwater from a wider prism, considering health and water supply, sanitation and hygiene to address the increase in water borne diseases. |
| Keywords: | agriculture; food security; groundwater irrigation; women; employment; governance; Pakistan; Southern Asia; Asia |
| Date: | 2024–02–22 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:gsspwp:139604 |
| By: | Mekonnen, Dawit Kelemework; Marilign, Yalew M.; Warner, James; Ringler, Claudia |
| Abstract: | The El Nino Southern Oscillation (ENSO) weather event of 2015/16 caused severe drought conditions in northern and central Ethiopia affecting the welfare of millions of farmers in late 2015 and early 2016. Using nationally representative panel data collected in 2012 and 2016 and recent advances in the difference-indifferences literature, this paper explores the effects of the 2015/16 drought and the potential role of irrigation in reducing the adverse effects of the drought. We find that the drought caused, on average, a 37 percent reduction in net annual crop income, an 8 percent decline in area cultivated, a 3 percent decline in household dietary diversity score, and a 10 percent decline in the share of harvest sold for rainfed farmers. On the other hand, irrigating farmers affected by the drought managed to increase their daily expenditures by 72 percent of their average daily food expenditure in the pre-drought period, and maintained their net crop income, size of cultivated land, household dietary diversity, and share of harvest sold to the market. Overall, while rainfed agricultural producers suffered sharp declines in welfare, those farmers with access to irrigation maintained their economic status. The results suggest that irrigation protected farmers from the adverse effects of the 2015/16 ENSO event and given increasing climate variability in Ethiopia, the government should intensify its investment and support to irrigation development in the country. |
| Keywords: | drought; irrigation; resilience; farmers; Ethiopia; Africa; Eastern Africa |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:gsspwp:139780 |
| By: | Bilal Bourkha (Université Mohammed Premier [Oujda] = Université Mohammed Ier) |
| Abstract: | Corporate Social Responsibility (CSR) is now a key strategic lever for organizations aiming to reconcile economic performance with social and environmental concerns. This course traces the evolution of CSR, from philanthropic actions to integrated business models, drawing on key frameworks such as ISO 26000 and the UN Global Compact. It explores the theoretical foundations of CSR (Freeman, Barney, Porter & Kramer, Elkington, Demil et al.) to highlight its strategic relevance. CSR is then linked to strategic planning through tools like the materiality matrix and the responsible value chain. The course also details operational levers (ESG policies, responsible procurement, sustainable innovation) and monitoring tools (indicators, reporting, governance). It thus shows that CSR is not a constraint, but a driver of transformation and sustainable performance. |
| Abstract: | La Responsabilité Sociétale des Entreprises (RSE) s'impose aujourd'hui comme un levier stratégique incontournable permettant aux organisations de concilier performance économique, respect de l'environnement et équité sociale. Ce cours propose une compréhension globale et structurée de la RSE, en partant de sa définition et de son évolution historique, des premières initiatives philanthropiques jusqu'aux approches intégrées aux modèles d'affaires actuels. Il met en lumière les principaux cadres de référence internationaux tels que la norme ISO 26000 ou le Pacte mondial des Nations Unies, qui encadrent les pratiques responsables. Ancrée dans les grandes théories du management stratégique, la RSE est analysée à travers les apports de la théorie des parties prenantes (Freeman), de la théorie des ressources (Barney), de la création de valeur partagée (Porter & Kramer), du triple bottom line (Elkington) et du modèle RCOV, afin de montrer comment elle peut constituer un levier de différenciation et d'innovation durable. Le cours explore ensuite les modalités concrètes d'intégration de la RSE dans le processus de planification stratégique, notamment à travers l'analyse des enjeux sociétaux dans le diagnostic stratégique, la matrice de matérialité et la relecture de la chaîne de valeur de Porter dans une perspective responsable. Il examine également les leviers opérationnels de mise en œuvre de la RSE via les politiques ESG, en abordant les actions environnementales, sociales et de gouvernance, ainsi que des pratiques spécifiques telles que les achats responsables et l'innovation durable. Enfin, le pilotage de la démarche RSE est abordé à travers les indicateurs extra-financiers, le reporting, les tableaux de bord durables et le rôle crucial de la gouvernance pour assurer la cohérence, la transparence et l'amélioration continue. Ainsi, la RSE est présentée non comme une démarche périphérique, mais comme une composante centrale de la stratégie d'entreprise, au service d'une performance globale, durable et responsable. |
| Keywords: | Responsabilité Sociétale des Entreprises (RSE), Performance durable, Stratégie d’entreprise, Parties prenantes, Diversité, Innovation responsable, ISO 26000, Triple bottom line, Politiques ESG, Achats responsables, Gouvernance responsable, Développement durable |
| Date: | 2025–05–28 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05088549 |
| By: | Financial Markets Department (Bank of Japan) |
| Abstract: | To accelerate efforts in tackling climate change, it is crucial for financial markets to play a greater role in terms of financial intermediation by incorporating risks and opportunities arising from climate change into the pricing of financial instruments, such as stocks and bonds, and by providing a more favorable environment for the issuance of climate change-related ESG bonds (hereinafter "the ESG bonds"). Since 2022, the Bank of Japan has conducted the Market Functioning Survey concerning Climate Change to evaluate those developments and challenges in Japanese financial markets. Respondents in the fourth survey viewed that climate-related risks and opportunities were priced into both the stock and corporate bond markets in Japan slightly more than the previous survey. To further incorporate these factors into market prices, the most frequently cited priority was "increasing issuers and/or investors that place a high value on climate-related risks and opportunities." Regarding the current status of the ESG bond market, there was a slight shift in respondents' assessment of the economic advantages of issuing the ESG bonds. As the expansion of the investor base became limited, respondents' views on supply and demand conditions changed toward loosening. Their views on the advantages of issuance conditions for the ESG bonds over non-ESG bonds, such as the presence of a greenium, also became somewhat more cautious. The proportion of respondents selecting "gaining new investors and/or diversifying the investor base" as a reason for issuing the ESG bonds declined accordingly. As for the market outlook, both business corporates and investors appeared to remain willing to use the ESG bonds actively over a somewhat long term. However, business corporates seemed to be considering fundraising methods for climate change-related responses more flexibly, including options such as taking out loans or issuing non-ESG bonds. Under these circumstances, the most frequently cited challenge for expanding the ESG bond market was "increasing issuers and/or investors that place a high value on climate-related risks and opportunities." Although there were slight changes in respondents' views on the economic aspects of the ESG bonds, companies maintained their overall stance on gaining understanding and securing necessary funds to address climate change. They have consistently placed greater importance on business strategy and reputation rather than economic benefits as primary reasons for issuing the ESG bonds, and this perspective continues to shape their approach. Transition finance is being increasingly utilized, particularly in high-emitting sectors, and many companies plan to use it going forward. Respondents also indicated that they would utilize transition plans, for example, as tools for fundraising. The international situation surrounding climate finance has changed since last autumn, against the backdrop of the change in administration in the United States and intensified discussions over industrial competitiveness in Europe. In this survey, there appeared to be no clear indication that these developments had a direct and significant impact on the views of market participants in Japan. Some respondents noted that Japan's approach to climate finance had been well-balanced to date, and thus there had been little notable influence of these international developments on domestic efforts. At the same time, these developments seem to have sparked growing interest in climate change-related initiatives among respondents. Many respondents expressed views on climate finance and disclosure from various perspectives, including cost-effectiveness, underlying philosophy, and practical effectiveness. Looking ahead, how such developments will affect the views of market participants in Japan is a key point of interest. As climate-related disclosure legislation continues to advance, the role and positioning of the ESG bonds within corporate strategies may shift. It is therefore be important to closely monitor these trends when assessing the functioning of climate-related financial markets. |
| Date: | 2025–07–16 |
| URL: | https://d.repec.org/n?u=RePEc:boj:bojron:ron250716a |
| By: | Ugo Arbieu (ESE - Ecologie Systématique et Evolution - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, Smithsonian Conservation Biology Institute); Céline Bellard (ESE - Ecologie Systématique et Evolution - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Corey Ja Bradshaw (Flinders University [Adelaide, Australia], ARC Center Excellence Australian Biodiversity and Heritage - UNSW - University of New South Wales); Ricardo A Correia (University of Turku, HELSUS - Helsinki Institute of Sustainability Science - Faculty of Biological and Environmental Sciences [Helsinki] - Helsingin yliopisto = Helsingfors universitet = University of Helsinki); Pierre Courtois (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); Enrico Di Minin (Helsingin yliopisto = Helsingfors universitet = University of Helsinki, School of Life Sciences, University of KwaZulu-Natal, Pietermaritzburg 3209, South Africa., HELSUS - Helsinki Institute of Sustainability Science - Faculty of Biological and Environmental Sciences [Helsinki] - Helsingin yliopisto = Helsingfors universitet = University of Helsinki); Ivan Jarić (Université Paris-Saclay); Boris Leroy (BOREA - Biologie des Organismes et Ecosystèmes Aquatiques - MNHN - Muséum national d'Histoire naturelle - IRD - Institut de Recherche pour le Développement - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique); Jessica R Murfree (UNC - University of North Carolina System); Madeleine Orr (University of Toronto); Samuel Roturier (ESE - Ecologie Systématique et Evolution - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Melanie Sartore‐baldwin (University of Toronto); Diogo Veríssimo (University of Oxford); Franck Courchamp (ESE - Ecologie Systématique et Evolution - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05136242 |
| By: | Busato, Francesco; Cisco, Gianluigi; De Simone, Marco; Marzano, Elisabetta |
| Abstract: | Climate change has led to an increase in extreme weather events, causing significant challenges for macroeconomic stability and monetary policy, particularly in small open economies (SOEs). This paper investigates the optimal monetary policy response to weather shocks in an SOE framework, using a Dynamic Stochastic General Equilibrium (DSGE) model calibrated for Turkey. The model includes sectoral price rigidities, trade openness, and climate-related productivity shocks affecting agricultural output. We evaluate alternative monetary policy rules, including those that target aggregate inflation, sector-specific inflation, and output stabilization. Our findings suggest that an aggressive monetary policy response to agricultural inflation mitigates short-term economic disruptions and accelerates recovery, albeit at the cost of a deeper initial contraction. The Ramsey-optimal policy prioritizes inflation stability while minimizing the long-term persistence of weather-induced output losses. Our results offer insights into the role of monetary policy in addressing climate-induced economic fluctuations in SOEs, highlighting the importance of tailored monetary policies that account for sectoral heterogeneities. |
| Keywords: | Agricultural output, Weather shocks, Dynamic Stochastic General Equilibrium Model |
| JEL: | E32 Q51 Q54 |
| Date: | 2025–03–17 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125175 |
| By: | José Vicente Romero; Sara Naranjo-Saldarriaga; Jonathan Alexander Muñoz-Martínez |
| Abstract: | This paper examines the macroeconomic impacts of adverse weather shocks on the Colombian economy, with a specific focus on agricultural output, food prices, and headline inflation. Drawing on empirical evidence from events such as the 2015–2016 El Niño, we document that these shocks tend to reduce agricultural output and increase inflation while having a limited effect on aggregate GDP growth. Motivated by these stylized facts, we develop a small open economy New Keynesian model for Colombia that introduces a mechanism in which weather shocks alter the relative prices of agricultural and non-agricultural goods. This framework allows us to capture the inflationary pressures induced by adverse climate events in a structural setting. Under our proposed calibration, food inflation, headline inflation, and inflation expectations rise in response to the shock, prompting the monetary authority to raise the interest rate to anchor inflation expectations. *****RESUMEN: Este documento examina los impactos macroeconómicos de choques climáticos adversos sobre la economía colombiana, con un enfoque específico en la producción agrícola, los precios de los alimentos y la inflación total. A partir de la evidencia empírica, documentamos que estos choques tienden a reducir la producción agrícola y aumentar la inflación, aunque con un efecto limitado sobre el crecimiento del PIB total. Motivados por estos hechos estilizados, se desarrolla un modelo neokeynesiano para una economía pequeña y abierta que introduce un mecanismo mediante el cual los choques climáticos afectan los precios relativos de bienes agrícolas y no agrícolas. Este marco permite capturar las presiones inflacionarias inducidas por eventos climáticos adversos de manera estructural. Bajo la calibración propuesta para Colombia, la inflación de alimentos, la inflación total y las expectativas de inflación aumentan en respuesta al choque, lo que lleva a la autoridad monetaria a incrementar parcialmente la tasa de interés con el fin de anclar las expectativas de inflación. |
| Keywords: | Extreme Weather events, El Niño Southern Oscillation (ENSO), Inflation, Small Open Economy New Keynesian Models, Eventos climáticos extremos, Fenómeno de El Niño (ENSO), Inflación, Economía pequeña y abierta, Modelos neokeynesianos. |
| JEL: | Q54 E52 E31 E32 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:bdr:borrec:1319 |
| By: | Ms. Zeina Hasna; Henry Hatton; Ms. Florence Jaumotte; Jaden Kim; Mr. Kamiar Mohaddes; Samuel Pienknagura |
| Abstract: | This paper investigates how climate policies affect low-carbon innovation (as measured by patents) and assesses the link between such innovation and economic activity. Climate policies, including international cooperation, spur both specific and overall innovation, with regulations, emissions-trading systems, and expenditure measures such as R&D subsidies and feed-in tariffs being particularly impactful. In turn, low-carbon innovation raises economic activity as much as other types of innovation and past technological revolutions. However, the mechanisms are different: low-carbon innovation increases capital accumulation, while other types of innovation increase total factor productivity (TFP). |
| Keywords: | Low-Carbon Innovation; Growth; Climate policies; Climate change; Porter Hypothesis |
| Date: | 2025–06–27 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/130 |
| By: | Edison D. Macusi; Erna S. Macusi |
| Abstract: | The Davao Gulf in the Philippines has diverse marine resources on which the coastal fishing communities crucially depend for their food and livelihood. Recent studies have shown that resource depletion in the country’s fishing grounds is due to overfishing and destruction of the aquatic environment. In 2014,  a joint administrative order by the Department of Interior and Local Government and the Department of Agriculture was implemented in the Davao Gulf to establish a three-month closed fishing season to reduce the annual fishing effort by 20 percent. This study aimed to validate the effectiveness of the closed season fishing policy; identify the factors that influenced the positive response in implementing the fishing policy; understand how it influenced the fishing strategies, movement patterns,  and effort allocation of small-scale fishers; and determine the possible impacts of the policy on main commercial markets. The results of the study showed that the unabated capture of wild fish can impact the marine ecosystem if not allowed to replenish itself. Recent advancements in fishing technology using GPS and sonars,  coupled with increasing fish demands from a fast-growing population, have resulted in widespread depletion of global fish stocks. Other findings from this study revealed the cooperation of fishers and fishing communities toward its implementation and provided evidence for economic motivation, informed communication, better organization, and perceived negative consequences of violations such as the impounding of fishing gear and boats and the scale of operation promoted by the government. |
| Keywords: | Davao Gulf, small-scale fisheries, Philippines, fisheries |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:sag:seadps:2025:603 |
| By: | Miller, Marshall; Fulton, Lewis; Yang, Hong; Zhao, Jingyuan; Burke, Andrew |
| Abstract: | The savings to California from transitioning to zero-emission cars and trucks by 2050 is about $300 billion. These savings result mostly from the cost of zero-emission vehicles (ZEVs) dropping close to or below the cost of gasoline and diesel vehicles; additional savings come from operational cost advantages. Policies at the state and national level, as well as the success of ZEV manufacturers, will affect California’s ability to achieve ZEV adoption targets and realize net economic benefits. However, even in the absence of ZEV-supportive policies, the global embrace of electric vehicles and the resulting cost reductions from innovation and scale economies will lead to substantial benefits and savings for California. |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2025–07–03 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt40k5w5h9 |
| By: | Rabah Arezki; Frederick van der Ploeg; Gregoire Rota-Graziosi; Văn Đạo Lê; Rick van der Ploeg |
| Abstract: | The introduction of the Value Added Tax (VAT) has been widely perceived as a successful instrument, boosting government revenue and stimulating industrialization. However, in countries that are heavily dependent on exports of natural resources the introduction of the VAT has led on average to lower tax revenues and did not stimulate industrialization. The VAT thus did not help these countries to diversify away from the natural resource sector contrary to its promise. The results indicate a novel channel for the resource curse hinging on the interaction between economic structure and the design of tax systems. |
| Keywords: | natural resource, tax, industrialization, value added tax |
| JEL: | H25 O13 O14 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11967 |
| By: | Laetitia Dillenseger; Thi Huong Nhai NguyenAnne Stenger; Thi Kim Cuong Pham; Anne Stenger |
| Abstract: | This paper examines how different motivations for engaging in organic farming may impact the farmers’ subjective well-being using a large-scale 2023 survey database from the French Agence Bio and leveraging the multi-dimension of well-being. Three measures capturing both affective and cognitive aspects of the well-being of farmers brought by their involvement in organic farming are used: Feelings of Pride, Satisfaction, and Feeling of Happiness. We focus on the effects of two types of motivations: intrinsic and extrinsic. Our results indicate that most intrinsic motivations, including concern about public health and human health, concern about the environment, and the request for autonomy in farming decisions, significantly and positively impact both the affective aspect (i.e., Pride, Happiness) and the cognitive aspect (i.e., Satisfaction) of farmers’ well-being. In contrast, extrinsic motivations related to the request for profits earned from fair prices and the response to demand incentives exert a negative influence. Besides motivations, our multi-dimensional well-being analyses also reveal that income, farming experience and difficulty, and production types significantly impact both affective and cognitive well-being. It is shown that social comparison (income) does not matter while social ties do. Finally, some aspects of farming characteristics and lifestyle factors (e.g., number of working hours and number of vacation days) contribute to cognitive well-being, while others (e.g., support from family and others) are associated with affective well-being. |
| Keywords: | cognitive well-being, affective well-being, intrinsic and extrinsic motivations, organic farming, pro-environmental decision, subjective well-being. |
| JEL: | D62 I31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2025-20 |
| By: | Vasily Pozdyshev; Alexey Lobanov; Kirill Ilinsky |
| Abstract: | Over the past few years, physical risks have turned from a niche domain of (re)insurers into a systemic risk factor that may have an impact through various channels on financial markets and financial institutions alike. While physical risks are not a common income-producing or even a sizeable cost-ofbusiness risk factor for most banks, they do affect banks, mostly indirectly, through their loan and trading books. Against this backdrop, standard setting bodies and financial regulators have increasingly called on banks to recognise physical risks as an additional factor in their risk space and internalise it in their risk management policies. A major obstacle for banks on this way, however, is the absence of generally accepted industry models of credit risk adjusted for physical risk factors. Such models are increasingly needed to account for physical risks in banks' capital requirements, loan loss provisions, pricing of loans and, eventually, derivatives to hedge this risk. This poses the question of building a bank's internal model for climaterelated correction to the internal probability of default and loss given default or using third-party databases on the type of the borrower's assets, their geolocation, exposure to climate factors, statistical description of weather events and damage functions. This paper proposes a methodology that allows in a relatively simple way the integration of physical risk component into the credit risk modelling, using an extension of the one-factor Vasicek model. The model described by the paper may be of specific interest for both banks and regulators, as it preserves important properties of models currently used while allowing for an informed mitigation of physical risk factor in credit risk. Additionally, the paper discusses further possible extensions of the credit risk model if physical risk manifests itself in more than one state. |
| Keywords: | climate risk, physical risk, credit risk, risk modelling, Vasicek model |
| JEL: | C60 G17 P28 Q54 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1274 |
| By: | Abdelkarim Jiar (Université Ibn Zohr = Ibn Zohr University [Agadir]); Serghini Meryem (Université Ibn Zohr = Ibn Zohr University [Agadir]); Juiher El Mahdi (Université Ibn Zohr = Ibn Zohr University [Agadir]); Ouaddi Hmad (Université Ibn Zohr = Ibn Zohr University [Agadir]) |
| Abstract: | As urban populations continue to grow and environmental demands intensify, cities are increasingly turning to data-driven approaches to modernize waste management. This study explores how artificial intelligence (AI) and the Internet of Things (IoT), particularly through the analysis of consumer behaviors and logistical flows, can contribute to the development of smarter and more responsive waste management policies. The research is based on a sample of four municipal waste management directors in the Moroccan cities of Agadir, Casablanca, Marrakech, and Fes. Using semi-structured interviews, data were analyzed with Python tools for word cloud generation and sentiment analysis. The findings reveal a fragmented adoption of smart technologies, hindered by insufficient training, limited infrastructure, and a lack of alignment between political ambitions and technological capabilities. Despite these challenges, the interviewed officials express cautious optimism about the potential of AI and IoT. The study recommends integrated strategies that combine digital infrastructure, institutional capacity-building, and local citizen engagement. |
| Abstract: | Alors que les populations urbaines ne cessent de croître et que les exigences environnementales s'intensifient, les villes s'orientent vers des approches fondées sur les données pour moderniser la gestion des déchets. Cette étude explore comment les technologies de l'intelligence artificielle (IA) et de l'Internet des objets (IdO), notamment à travers l'analyse des comportements des consommateurs et des flux logistiques, peuvent contribuer à l'élaboration de politiques de gestion des déchets plus intelligentes et réactives. L'enquête repose sur un échantillon de quatre directeurs municipaux chargés de la gestion des déchets dans les villes marocaines d'Agadir, Casablanca, Marrakech et Fès. À partir d'entretiens semi-structurés, les données ont été analysées à l'aide d'outils Python de génération de nuages de mots et d'analyse de sentiments. Les résultats révèlent une adoption fragmentée des technologies intelligentes, freinée par une formation insuffisante, des infrastructures limitées et un manque de cohérence entre les ambitions politiques et les capacités technologiques. Malgré ces contraintes, les responsables interrogés manifestent un optimisme prudent quant au potentiel de l'IA et de l'IdO. L'étude préconise des stratégies intégrées alliant infrastructure numérique, renforcement des capacités institutionnelles et mobilisation citoyenne à l'échelle locale. |
| Keywords: | Intelligent waste management artificial intelligence Internet of Things urban policy Morocco, Intelligent waste management, artificial intelligence, Internet of Things, urban policy, Morocco |
| Date: | 2025–06–17 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05117660 |
| By: | Ramji, Aditya; Dhole, Anuj; Sperling, Daniel; Fulton, Lewis; Hwang, Roland |
| Abstract: | ITS-Davis has analyzed the design of self-financing zero emission truck (ZET) incentive programs that could help the current underfunded Clean Truck and Bus Voucher Program (HVIP) and continue to provide certainty for fleet buyers to transition, given the recently withdrawn Advanced Clean Fleet (ACF) regulation for trucks. The revenues are generated by either imposing a one-time pollution charge on the price of new diesel truck sales or a recurring annual surcharge to annual registration fees, with the revenues used to incentivize ZET sales. For instance, if a one-time charge of 6.8% is imposed on new diesel truck sales, or an annual polluter charge was imposed on diesel trucks ranging from $290 to $820 per truck, depending on the type of truck, about $3.4 billion would be generated over 10 years. On an annual basis, this would roughly be equivalent to the average funding level of $340 million per year from 2021 to 2024 of the current HVIP incentive program. Such a program would harness market forces by sending a clear signal to truck buyers and manufacturers, and would generate revenue for incentive funds for ZETs, with no cost to government or taxpayers. The charges would be administratively straightforward to collect. As a one-time charge, it could be collected at the time of vehicle purchase. Alternatively, as an annual charge, it could be assessed as part of the annual registration and renewal fee, known as the Commercial Vehicle Registration (CVRA) fee. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2025–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt5wc7028m |
| By: | Mathilde Felga (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - 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, MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier); Céline Vial (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - 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, IFCE - Institut Français du Cheval et de l'Equitation [Saumur]); Béatrice Siadou-Martin (MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier) |
| Abstract: | Cette contribution étudie comment des acteurs du secteur équin interprètent le bien-être du cheval en entremêlant sciences et spiritualités. À travers l'étude de deux journées commerciales, elle analyse un sens alternatif du « bien-être équin ». Celui-ci repose sur trois logiques argumentatives. La première consiste à optimiser certains critères du bien-être, en mettant l'accent sur l'état émotionnel du cheval et sa relation avec l'humain, tandis que d'autres critères scientifiques sont jugés secondaires. La seconde valorise le développement du couple homme-cheval, à travers des prestations améliorant la communication et le bien-être partagé entre cavalier et monture. La troisième transfère au cheval des logiques issues du bien-être humain, notamment le développement personnel et des pratiques mystiques et ésotériques. Si elle semble étrangère à la rationalité scientifique, cette interprétation du bien-être du cheval se légitime néanmoins en partie par celle-ci. Comprendre cette représentation du bien-être équin pourrait permettre au secteur de mieux répondre aux enjeux du bien-être animal. |
| Date: | 2025–05–22 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05109844 |
| By: | Clarisse Cazals (UR ETTIS - Environnement, territoires en transition, infrastructures, sociétés - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sylvain Le Berre (UR ETTIS - Environnement, territoires en transition, infrastructures, sociétés - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Valérie Deldrève (UR ETTIS - Environnement, territoires en transition, infrastructures, sociétés - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Keywords: | Economie circulaire, Déchet, Nord / Sud, Matérialité, Justice environnementale |
| Date: | 2025–06–17 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05107203 |
| By: | Christophe Martin (CSGA - Centre des Sciences du Goût et de l'Alimentation [Dijon] - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UBE - Université Bourgogne Europe); Marielle Harel-Oger (STLO - Science et Technologie du Lait et de l'Oeuf - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Gilles Garric (STLO - Science et Technologie du Lait et de l'Oeuf - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Stephan Marette (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05069228 |
| By: | Benabdeljlil, Nadia; Kerzazi, Lamia |
| Abstract: | This research examines the impact of codes of conduct imposed by international lead firms on subcontractors in Morocco's textile and apparel sector. Based on a qualitative study conducted in the two main industrial hubs (Tangier and Casablanca), it explores the diffusion of corporate social responsibility (CSR) standards along the supply chain, their role in enhancing subcontractor capabilities, and their influence on inter-level relationships within the chain. The study highlights cross-cutting factors that place subcontractors in conditions that are not conducive to the effective implementation of CSR standards. It also shows that procedural audits associated with the enforcement of codes of conduct promote the spread of coercive isomorphism and foster a culture focused on strict compliance with formal rules. Furthermore, the research identifies two distinct profiles of subcontractors based on how they respond to institutional pressures to adopt these codes: those with minimal compliance, often engaging in rule-bypassing practices, and those adopting a proactive approach to internalising the standards. The study also uncovers factors explaining these divergent attitudes. Among the firms with a proactive stance, initiatives aimed at strengthening the capacities of their subcontractors are emerging. However, relationships with downstream actors in the supply chain remain characterised by a climate of mistrust, which limits the overall impact of these efforts. |
| Keywords: | CSR, codes of conduct, textile and apparel sector, Morocco, supply chain, lead firms, subcontractors, informal employment |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:diedps:320561 |
| By: | Estelle CAMPENET; David DESMARCHELIER |
| Abstract: | The literature has highlighted the potential occurrence of a limit cycle through a Hopf bifurcation near the steady state of a competitive Ramsey economy when pollution significantly increases the marginal utility of consumption (compensation effect). This latter condition is necessary but not sufficient. More specifically, pollution inertia must be strong when pollution originates from production but not when it stems from consumption. This paper investigates the reasons for this difference and emphasizes the role of decreasing marginal productivity of capital in explaining it. |
| Keywords: | Ramsey model, Pollution inertia, Hopf bifurcation. |
| JEL: | E32 O44 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2025-10 |
| By: | Pierluigi Conzo; Gianmarco Daniele; Andrea F.M. Martinangeli; Willem Sas |
| Abstract: | This paper investigates how institutional and social trust respond to crisis situations, and to what extent different kinds of trust interact in such a context. In an online survey experiment on 4, 400 representative respondents from Italy, participants are exposed to a real-world flooding scenario and randomly assigned to information treatments portraying institutions as effective, ineffective, or neither of the two. When institutions are framed as effective, institutional trust and donations to a grassroots environmental NGO increase, while social trust and cooperation norms remain stable. When institutions are seen as unprepared, participants do not compensate by trusting others or stressing cooperation. Instead, they increase support for the NGO as well, suggesting crisis management delegation to motivated and organised citizens. When no information is provided about institutional quality all trust indicators rise, albeit more noisily. These findings suggest delegation as a distinct response to institutional failure and point to the need to study trust in civic movements as an intermediate form between institutional and interpersonal trust. |
| Keywords: | social trust, institutional trust, external shocks, online survey experiment, climate change, cooperation, grassroot movements, delegation |
| JEL: | D91 H84 Z13 C93 D83 H11 P16 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11987 |
| By: | Rodriguez, M. M.; Chyong, C. K.; Fitzgerald, T.; Martínez, M. V. |
| Abstract: | The reliance on hydrogen as an energy carrier, as part of the transition towards a low-carbon economy, will require the development of a dedicated pipeline infrastructure. This deployment will be shaped by regulatory frameworks governing investment and access conditions, ultimately structuring how the commodity is traded. The paper assesses the market design for hydrogen infrastructure, assuming the application of unbundling requirements. For this purpose, it develops a general economic framework for regulating pipeline infrastructure, focusing on asset specificity, market power and access rules. The paper focuses on the scope of application of infrastructure regulation, which can be set to individual pipelines or to entire networks. When treated as entire networks, the infrastructure can provide flexibility to enhance market liquidity. The paper further compares the regulations applied to the US and EU natural gas transport markets. Based on the challenges the EU hydrogen sector faces, including the absence of wholesale concentration and the large infrastructure needs, the paper draws lessons for a regulatory framework establishing the main building blocks of a hydrogen target model. The paper recommends a review of the current EU regulatory framework in the Hydrogen and Decarbonised Gas Package to i) enable the application of regulation to individual pipelines rather than entire networks; ii) enable the use of negotiated third-party access, light-touch regulation and possibly market-based coordination mechanisms for the access to the infrastructure and, iii) allow for a more significant role for long-term capacity contracts to underpin investment. |
| Keywords: | Hydrogen Infrastructure, Pipeline Regulation, Third-Party Access (TPA), Unbundling, Market Design |
| JEL: | L95 L51 Q48 Q42 D47 |
| Date: | 2025–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2540 |
| By: | Campbell, John Y.; Martin, Ian W. R. |
| Abstract: | How much consumption is sustainable, if \sustainability" re- quires that welfare should not be expected to decline over time? We impose a sustainability constraint on a standard consump- tion/portfolio choice problem. The constraint does not distort portfolio choice, but it imposes an upper bound on the sustain- able consumption-wealth ratio, which must lie between the riskless interest rate and the expected return on wealth (and if risky capital evolves according to a geometric Brownian motion, it lies exactly halfway between the two). Sustainability requires an upward drift in wealth and consumption to compensate future generations for the increased risk they face. |
| JEL: | D63 D81 E21 H43 Q01 |
| Date: | 2025–06–16 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126073 |
| By: | Yukihiro Nishimura (Osaka University and CESifo) |
| Abstract: | This paper develops a Kantian equilibrium framework, subsuming the global pollution model with private ownership, wherein agents condition their contributions on a universalizable moral imperative reflecting income and preference heterogeneity. After showing a specific proportionality assumption linking Kantian reasoning to other agents’ behavior that must make the Kantian equilibrium coincide with the Lindahl equilibrium, we show that the level of the public good may or may not increase with income inequality. Inequality invariance is observed in some solution. Applying this model to a global pollution context, we demonstrate that the Lindahl allocation may fail to Pareto dominate the voluntary contribution (disagreement) equilibrium. We compare the Lindahl outcome with other proposed solutions to global public good provision, focusing in particular on the role of international income transfers and their ability to achieve Pareto improvements over the voluntary contribution (disagreement) equilibrium. Our analysis contributes to a reinterpretation of morally grounded mechanisms for global public good provision, bridging normative ethics with economic design. |
| Keywords: | Global externalities, Kantian equilibrium, Income inequality, International emissions trading |
| JEL: | H41 D63 Q54 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:osk:wpaper:2504r |
| By: | Wadjamsse Beaudelaire Djezou (Université Alassane Ouattara [Bouaké, Côte d'Ivoire]); Atsé Eric Noel Aba (Université Alassane Ouattara [Bouaké, Côte d'Ivoire]); Martine Audibert (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne) |
| Abstract: | Eating organic food is a key health issue… but at what cost? While market gardening in Africa, particularly in urban areas, has helped improve the dietary diversity of city dwellers, its development has been accompanied by the untimely use of uncontrolled pesticides, inducing a significant health risk to both producers and consumers. The actions taken by governments to control the use of pesticides mainly target producers -and have proven to be ineffective (Cissé et al., 2003). The purpose of this article is to explore the demand side by identifying the attributes of food products (vegetables), particularly their organic nature, which guide consumers' choice on the market. |
| Abstract: | Manger bio, un enjeu fondamental pour la santé… mais à quel prix ? Si le maraîchage en Afrique, notamment en zone urbaine, a permis d'améliorer la diversité alimentaire des citadins, son développement s'est accompagné d'un usage intempestif de pesticides non contrôlés faisant peser tant sur les producteurs que sur les consommateurs un risque important pour leur santé. Les actions menées par les Etats pour tenter de maîtriser l'usage des pesticides ciblent essentiellement les producteurs et se sont révélées peu efficaces (Cissé et al., 2003). L'objet de cet article est d'explorer du côté de la demande, en identifiant les attributs des produits alimentaires (légumes), notamment leur caractère bio, qui orientent le choix des consommateurs sur le marché. |
| Keywords: | Prix hédonique, Pesticide, Attributs du légume, Préférences, Consommateur, Côte d'ivoire |
| Date: | 2025–02–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05088883 |
| By: | I. Kalaitzoglou (Audencia Business School) |
| Abstract: | This paper revisits the informational efficiency of the EU ETS at a micro level, by introducing a novel time variant structural decomposition of variance. The new modelling introduces GARCH-like effects into a structural price modelling. With this, all variance components, including public information and price discreteness, can be estimated, for the first time, in a continuously updated setup that is free of sampling bias. The empirical findings report that although all variance components decrease in magnitude, this is primarily due to higher overall market liquidity that results in less price discovery per trade. On a proportional basis, though, the EU ETS appears to be increasingly inefficient prior to the introduction of MiFID II rules, with the situation reversing after their implementation. This is evidence that transparency is vital in rendering emission allowances a policy rather than a speculative instrument. |
| Keywords: | EU ETS MiFID II Algorithmic trading |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05133749 |
| By: | Marina Friedrich (Vrije Universiteit Amsterdam and Tinbergen Institute); Karim Moussa (Vrije Universiteit Amsterdam and Tinbergen Institute); Yuliya Shapovalova (Radboud University Nijmegen); David van der Straten (Vrije Universiteit Amsterdam and Tinbergen Institute) |
| Abstract: | Understanding the developments of atmospheric ethane is essential for better identifying the anthropogenic sources of methane, a major greenhouse gas with high global warming potential. While previous studies have focused on analyzing past trends in ethane and modeling the inter-annual variability, this paper aims at forecasting the atmospheric ethane burden above the Jungfraujoch (Switzerland). Since measurements can only be taken under clear sky conditions, a substantial fraction of the data (around 76%) is missing. The presence of missing data together with a strong seasonal component complicates the analysis and limits the availability of appropriate forecasting methods. In this paper, we propose five distinct approaches which we compare to a simple benchmark – a deterministic trending seasonal model – which is one of the most commonly used models in the ethane literature. We find that a structural time series model performs best for one-day ahead forecasts, while damped exponential smoothing and Gaussian process regression provide the best results for longer horizons. Additionally, we observe that forecasts are mostly driven by the seasonal component. This emphasizes the importance of selecting methods capable of capturing the seasonal variation in ethane measurements. |
| Keywords: | climate econometrics, forecasting, time series analysis |
| JEL: | C32 C53 |
| Date: | 2025–04–11 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20250025 |
| By: | Maxime Huré (CDED - Centre de Droit Economique et du Développement - UPVD - Université de Perpignan Via Domitia); Arnaud Passalacqua (LIED (UMR_8236) - Laboratoire Interdisciplinaire des Energies de Demain - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité, LAB'URBA - LAB'URBA - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel); Philippe Poinsot (LVMT - Laboratoire Ville, Mobilité, Transport - ENPC - École nationale des ponts et chaussées - Université Gustave Eiffel, EUP - École d'urbanisme de Paris - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel) |
| Abstract: | France is one of the countries where the phenomenon of fare-free public transport is most active, particularly in Europe. This public policy has given rise to controversy over its environmental, social and urban effects. This article offers a different way of discussing the phenomenon. It paints a picture of the phenomenon and then traces its origins back to the emergence of urban crises that began in the 1970s. Finally, it looks back at the major issues associated with this policy, showing that they reflect questions facing cities more widely today. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04791253 |
| By: | Llorca, M.; Rodriguez-Alvarez, A. |
| Abstract: | Energy poverty refers to the inability of households to afford adequate energy services, connected to negative impacts on health, well-being, and economic opportunities. It is a social policy issue that exacerbates inequality and limits access to essential services, particularly among vulnerable populations. In Spain, energy poverty has become an increasing concern, with many low-income households struggling to meet their energy needs despite various social protection mechanisms. This paper analyses the effectiveness of the Bono Social Eléctrico (BSE), a Spanish social electricity voucher aimed at alleviating energy poverty among vulnerable households. Departing from a microeconomic theoretical framework and a applying a Stochastic Frontier Analysis (SFA) approach, the study evaluates the gap between observed and potential energy poverty levels. The empirical analysis employs Spanish household panel data from 2021 to 2023, capturing key household characteristics and subsidy information. The findings indicate that, while the BSE contributes to reducing energy poverty, its effectiveness is constrained by insufficient coverage and lack of impact on the poorest households. Moreover, energy poverty has worsened over the years and there has been a decline in the mitigating effect of the BSE, while some regional disparities persist. Education and computer access play an important role in addressing energy poverty. The study suggests policy recommendations to enhance the voucher’s targeting mechanisms and explores strategies for more effective interventions to tackle energy poverty. |
| Keywords: | Energy Poverty, Policy Evaluation, Stochastic Frontier Analysis, Spain, Bono Social Eléctrico |
| JEL: | C23 D12 I38 Q48 |
| Date: | 2025–06–28 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2542 |
| By: | Valls, Ricardo A. P. Geo. (Valls Geoconsultant) |
| Abstract: | Compositional data analysis (CoDA) has emerged as a critical methodology for enhancing the predictive capabilities of geochemical models in mineral exploration and environmental assessment applications. This systematic review examines the extent to which compositional data analysis techniques improve geochemical modeling performance in diverse geological settings and application domains. Through the analysis of 50 peer-reviewed studies, we identified 10 studies that met rigorous inclusion criteria, focusing on the quantitative evaluation of predictive modeling performance using compositional data analysis methods. The review reveals that log-ratio transformations, particularly centered log-ratio (CLR) and isometric log-ratio (ILR) transformations, consistently address the closure problem inherent in compositional geochemical data [1]. The integration of compositional data analysis with machine learning approaches, including random forests and principal component analysis, has demonstrated significant improvements in anomaly detection, geological class prediction, and mineralization identification. Quantitative results show classification accuracy improvements from 68.4% to 74.7% when maximum autocorrelation factor analysis is applied to compositionally transformed data compared to traditional principal component analysis (McKinley et al., 2018). The key findings indicate that compositional data analysis enhances predictive capabilities through improved data uniformity, more accurate anomaly identification, and better alignment with known geological processes. The methodology is particularly effective in diverse geological contexts, including stream sediment analysis, soil geochemistry, and regional mapping applications across multiple continents. However, this review identified limitations in reporting standards, with many studies lacking explicit accuracy metrics and baseline comparisons. This absence of standardized reporting significantly hinders the ability to compare findings across studies, assess the true impact of CoDA techniques, and draw robust and generalizable conclusions regarding their effectiveness. The inconsistent metrics make it challenging to synthesize quantitative results, potentially leading to an overestimation or underestimation of CoDA’s benefits in certain contexts. This systematic review also delves into a deeper analysis of these limitations, particularly the inconsistent reporting of quantitative performance metrics, and presents counterarguments to provide a more balanced perspective on the effectiveness of the compositional data analysis. This systematic review provides evidence that compositional data analysis significantly strengthens geochemical modeling capabilities, offering a robust framework for addressing the unique statistical challenges of geochemical datasets while improving practical outcomes in mineral exploration and environmental monitoring. However, this review also examines the limitations and potential counterarguments associated with the application of compositional data analysis in geochemical modeling, providing a more nuanced and balanced perspective. The author declares no conflicts of interest. The data supporting the conclusions of this article are available in the cited references. This study received no external funding. |
| Date: | 2025–06–13 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:3zhwv_v1 |