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on Environmental Economics |
| By: | Joiner, Emily (Resources for the Future); Toman, Michael A. (Resources for the Future); Russo, Suzanne (Resources for the Future) |
| Abstract: | Agricultural (ag) bioenergy has received financial and technical support from the Energy Title of the Farm Bill, first established in 2002. At present, however, the primary drivers of ag bioenergy are incentives in federal energy legislation (the Renewable Fuel Standard or RFS) and California legislation to reduce the greenhouse gas intensity of transportation fuels (the Low Carbon Fuel Standard or LCFS), along with policies administered by the US Environmental Protection Agency.The RFS creates requirements for incorporating various categories of renewable sources, including ag biofuels, into liquid transportation fuels. A complex credit program based on sales of qualifying renewable sources facilitates the achievement of those requirements. The thresholds for qualifying (20, 50, or 60 percent lower estimated lifecycle greenhouse gas intensity) are coarse-grained and thus coarsely targeted for providing incentives to reduce greenhouse gas intensity.The LCFS also uses a credit system to achieve targeted reductions in lifecycle greenhouse gas intensity over time. However, the emissions intensities of qualifying renewable sources are based on technology pathways, with careful assessments of actual emissions that provide incentives for reducing actual emissions intensity. Nevertheless, the measurement of reductions in emissions intensity is only as good as the baseline used for comparison—a concern that has been expressed over the calculation of negative emissions intensity for manure-derived biogas.There is vigorous debate about the overall reduction in greenhouse gases achieved with conventional bioethanol made from corn. Lower-carbon technologies remain costly to use at scale. Adverse environmental impacts also can arise from producing biofuels, some of which raise environmental justice concerns. |
| Date: | 2024–05–09 |
| URL: | https://d.repec.org/n?u=RePEc:rff:ibrief:ib-24-03 |
| By: | Domeshek, Maya (Resources for the Future) |
| Abstract: | As Missouri is a state with no formal climate goals and an electricity sector that is three-quarters coal generation (Figure 1a), the decarbonization of its electricity grid will depend in large part on decisions by utilities to retire or retrofit coal capacity (Figure 1b; Table 1). Utilities covering a majority of electricity sales in Missouri have net-zero targets—Empire District, 2050; Ameren, 2045; Evergy, 2045; and City Utilities of Springfield, 2050—accounting for 71 percent of sales (Figure 1d). Most of the remaining electricity sales are covered by cooperatives (co-ops), none of which have climate targets. But these private net-zero targets are not enforceable, and they may not have direct impacts on coal generation in Missouri, given that the utilities serve customers in multiple states. On the other hand, the US Environmental Protection Agency’s (EPA’s) recent proposed regulation of existing fossil generators under section 111(d) of the Clean Air Act sets firm dates before which coal plants must either retire or retrofit in a way that reduces their greenhouse gas emissions. “New Source Performance Standards for GHG Emissions from New and Reconstructed EGUs; Emission Guidelines for GHG Emissions from Existing EGUs; and Repeal of the Affordable Clean Energy Rule, ” Item No. 1, Docket ID EPA-HQ-OAR-2023-0072. https://www.regulations.gov/document/EPA-HQ-OAR-2023-0072-0001. In addition, advocacy groups within Missouri—most notably the Sierra Club, through its Beyond Coal Campaign—have been pushing for coal plant retirements through litigation and rate cases because of the climate and public health harms.So what plans have Missouri utilities made for their coal plants, and are they following through on those plans? A brief accounting indicates that Missouri utilities plan to retire 6.0 gigawatts (GW) of coal capacity between now and 2050, leaving 4.3 GW still online after that date and making no plans for carbon capture and storage (CCS) retrofits (Figure 2). Moreover, there have been noticeable shifts in successive integrated resource plans (IRPs) about which plants are to be retired and when. This issue brief explores three factors influencing whether Missouri coal plants retire as planned: (1) whether the plants are in conflict with environmental regulation and would require expensive upgrades to continue operating, (2) whether financial barriers to retirement exist, and (3) whether generators are available to replace the coal plants.The main (enforceable) driver of coal retirements is environmental regulation. For example, when the Department of Justice sued Ameren’s Rush Island plant for violating the Clean Air Act’s New Source Review requirements, the plant was ordered to install flue gas desulfurization (Sierra Club 2021). Rather than do so, Ameren elected to move the plant’s retirement date from 2039 to 2024 (Skipworth 2022). The recent coal combustion residual rule required that wet coal ash be stored in lined ponds. After making investments to close the final ash ponds at its Meramec plant, Ameren made plans to close the plant in 2022 (Ameren Missouri 2021). Perhaps most impactfully, the EPA’s proposed 111(d) regulation will require coal plants that want to exist beyond 2035 but retire by 2040 to retrofit to cofire with fossil gas by 2030 and plants that want to exist after 2040 to retrofit with 90 percent carbon capture by 2030. Several plants have retirement dates just one or two years after one of these deadlines (Labadie 1&2 in 2036, Labadie 3&4 in 2042), so they may choose to retire earlier than planned rather than retrofit to run for only a short while longer. Others with no retirement date (Thomas Hill, Sikeston, New Madrid, Iatan, Hawthorne) will have to install CCS by 2030 or declare retirement dates before 2040 (Table 1).Many coal plants cost more to operate than the expense of building and operating a new renewable resource, but remaining debt on the coal facilities deters utilities from retiring them (Bodnar et al. 2020). When a regulated utility retires a plant without recovering its costs, the utility’s shareholders lose money, and in some cases the utility’s credit rating falls, affecting its ability to borrow money in the future. This makes utilities reluctant to retire plants early, even when doing so would save ratepayers money. In 2021 Missouri passed a securitization law designed to address this problem (Kite 2021). Under the law, the utility establishes a special-purpose entity that issues ratepayer-backed bonds to pay off the remaining debt. The bonds are then paid off over a long period through a charge on electric bills. Because the ratepayer-backed bonds have a lower rate of interest than the utility’s rate of return, ratepayers save money on both operating expenses for the coal plant (since it’s no longer running) and the interest rate they would have paid on the utility’s coal plant debt. At the same time, the utility avoids an unpaid debt, and having cash on hand allows it to invest in new clean generation (Varadarajan 2018). Empire District Electric Company (Algonquin) used securitization when it closed its last coal unit, the Ashbury plant, in 2020 (Uhlenhuth 2019; Howland 2022c). And Ameren intends to use it to recover some of the costs associated with the Meramec and Rush Island plants (Ameren Missouri 2022b).While Missouri’s securitization law is aimed primarily at regulated utilities, the Inflation Reduction Act (IRA) contains two provisions that may address financial barriers faced by co-op–owned coal plants. The US Department of Energy Loan Program Office’s Energy Infrastructure Reinvestment program (funded at $5 billion) will provide low-interest loans to refinance and replace or reduce emissions at existing fossil generators (DOE n.d.). These funds are available to all power plants. The US Department of Agriculture’s Empowering Rural America program (funded at $9.7 billion) is limited to co-ops and is designed to help them replace existing fossil plants with low-interest, forgivable loans (USDA 2023). Given that 2.7 of the 4.3 GW of coal units left after 2050 are from co-ops or municipal utilities (munis) (Figure 2), these programs will do important work to ease the retirement of coal in Missouri.Despite new environmental regulations and policies to overcome financial barriers to retirement, the utilities have repeatedly delayed coal retirements as the dates approach. And each time, the stated reason was a lack of adequate replacement capacity. For example, Ameren, which has retirement dates for all its remaining coal units, is planning to replace this coal mostly with fossil gas plants that have the ability to burn hydrogen or with unnamed “clean firm” facilities. The utility has already delayed two of these coal retirements. The Rush Island plant, which will be retiring with securitization in lieu of retrofitting with coal gas desulfurization, delayed its retirement beyond 2024 after the Midcontinent Independent System Operator (MISO) asked the Federal Energy Regulatory Commission to keep it online as a System Support Resource through 2025 (Howland 2022a). The Sioux Energy Center has pushed its retirement date from 2028 in the 2020 IRP to 2030 in the 2022 Change in Preferred Plan (Ameren Missouri 2022a), while Ameren waits for a fossil gas unit to come online in 2031. Evergy has repeatedly modified and delayed the quantity of renewables they planned to build in their 2020 IRP (Evergy 2021, 2022), before suggesting a significant fossil gas build-out in 2027 and 2028 (Evergy 2023). See also “In the Matter of Evergy Missouri West, Inc. d/b/a Evergy Missouri West’s 2023 Integrated Resource Plan Annual Update Filing, ” Item No. 9, Docket Sheet EO-2023-0212; “In the Matter of Evergy Metro, Inc. d/b/a Evergy Missouri Metro’s 2023 Integrated Resource Plan Annual Update Filing, ” Item No. 16, EO-2023-0213. Similarly, City Utilities of Springfield has delayed the retirement of the first unit at the John Twitty Energy Center from 2027 to 2030 in response to slower-than-anticipated renewable builds and new reliability rules from the Southwest Power Pool (SPP) (CU 2022). These examples suggest that even when utilities are planning to replace their coal plants, construction delays and reliability rules from Independent System Operators are keeping coal plants online longer. Additionally, current ways of measuring reliability may be pushing utilities to replace coal plants with fossil gas and hydrogen-enabled fossil gas rather than with renewables.In summary, Missouri has a lot of coal generators and some unenforceable commitments from utilities to reach net-zero emissions. If the commitments are to be met, all these coal generators must be retired or retrofitted with CCS. An examination of IRPs reveals that as of now, utilities do not plan to do so, leaving 4.3 GW of coal with uncontrolled carbon emissions after 2050 (Figure 2). Regulations, specifically the coal combustion residuals and the 111(d) rule, may play an important role in pushing coal plants to retire or retrofit. Financial barriers to retirement related to paying off the debt on coal plants are surmountable for regulated utilities, given the state’s securitization law, and for co-ops, given the federal government’s new programs under the IRA. Nonetheless, planned coal plant retirements have been delayed because of slower-than-expected build-out of replacements and reliability concerns from grid operators. |
| Date: | 2023–10–11 |
| URL: | https://d.repec.org/n?u=RePEc:rff:ibrief:ib-23-07 |
| By: | Boyd, James (Resources for the Future); Krupnick, Alan (Resources for the Future); Joiner, Emily (Resources for the Future); Toman, Michael A. (Resources for the Future) |
| Abstract: | Carbon dioxide removal (CDR) involves the application of chemical or biological processes by which carbon dioxide (CO2) can be removed from the atmosphere and stored in different reservoirs. Those reservoirs include soils, oceans, underground (geologic) storage sites, long-lived wood products, and living biomass like forests.The 2015 Paris Agreement under the auspices of the 1992 United Nations Framework Convention on Climate Change established the aim of limiting the global average temperature increase from global emissions of greenhouse gases (GHGs) to less than 2.0°C, and as close to 1.5°C as possible, to limit dangerous impacts from climate change. Achieving that aim requires a concerted international effort to reduce GHGs to zero by mid-century. Many analysts have concluded that achieving the Paris temperature limits is infeasible without major increases in CDR, even with aggressive measures to limit GHGs (which have not yet been achieved). Smith et al. (2023); Coalition for Negative Emissions (2021); Environmental Defense Fund (2021); Committee on Developing a Research Agenda for Carbon Dioxide Removal and Reliable Sequestration et al. (2019); IPCC (2018). These sources also provide background on the temperature goals; in addition, see IPCC (2018). Furthermore, net negative emissions removal (above and beyond what is achieved by a net-zero economy) will be necessary to reduce the stock of atmospheric CO2 if, as is currently feared, emissions “overshoot” the trajectory for achieving the temperature limits.Smith et al. (2023) describe the lack of national goals for CDR around the world, and the lack of adequate policies to engender rapid and significant advances in CDR capability followed by large-scale installation of CDR. In what follows we summarize what we believe are needed innovations in US CDR policy to achieve these goals. These findings are based on research contained in a recent RFF report (Boyd et al. 2024). A few basic principles underlie the policy suggestions. Public sector support for CDR research, development, and demonstration is needed. However, as technologies mature, public sector support should be scaled back in favor of policies relying on private sector incentives to finance the major buildup in CDR capacity needed. Policy should be based on technology performance and cost of CO2 removal across a portfolio of approaches. However, negative side effects also must be identified and addressed in a timely way. Finally, CDR policy should be designed to take advantage of benefits from coordination with GHG mitigation measures. |
| Date: | 2024–04–25 |
| URL: | https://d.repec.org/n?u=RePEc:rff:ibrief:ib-24-01 |
| By: | Mrs. Marina Conesa Martinez |
| Abstract: | This paper analyzes how central banks' communication influences corporate financial decisions and instruments. Empirically, we find that more active central bank communication is associated with a rise in firms' green bond issuance. The effect seems to be particularly strong among commercial banks, firms closely monitoring central bank climate communication, and firms with higher exposure to weather-related risks and opportunities. This likely reflects strategic responses to anticipated regulatory and market shifts. |
| Keywords: | Central banking; Communication; Climate change; Green bonds; Sustainable finance; Natural language processing |
| Date: | 2025–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/169 |
| By: | Gunther Capelle-Blancard (Université Paris 1 Panthéon-Sorbonne, Centre d'Econonomie de la Sorbonne & Paris School of Business) |
| Abstract: | The aim of this note is to assess whether and how the Financial Transaction Tax (FTT) could be "greened" - that is, adapted or utilized to support environmental objectives and the financing of the transition to a more sustainable economy. While traditionally conceived as a regulatory tool, the FTT also holds unexploited potential as an instrument for climate finance and broader environmental alignement. This paper outlines five complementary arguments in favor of a green FTT: (1) its capacity to mobilize stable, international funding for global public goods; (2) its symbolic relevance in light of the financial sector's contribution to social and environmental disruption; (3) its ability to modestly lengthen investment horizons and counteract excessive short-termism; (4) its potential to enhance public trust in finance by matching rhetoric about sustainable finance with contributions; and (5) its propective use as a differentiated tool to reward environmentally responsible issuers. The paper also includes a first quantitative assessment of potential revenues from a tiered green FTT, illustrating how such a mechanism could operationalize the principle of common but differentiated responsibilities and respective capabilities in climate finance. While recognizing practical limitations (in terms of governance, data reliability, ans risk of complexity) the paper concludes that a well-calibrated green FTT could be a simple yet effective lever in aligning financial markets with the ecological transition |
| Keywords: | Financial transaction tax; Securities Transaction Tax; Tobin tax; Innovative Financing; Climate Finance |
| JEL: | G1 H2 Q5 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:mse:cesdoc:25012 |
| By: | Beatrice Negro; Maria Enrica Virgillito |
| Abstract: | Hydrogen plays a central role in policies aimed at decarbonisation, energy autonomy, industrial competitiveness, and development. This study analyses hydrogen policies, revealing how their design may undermine just transition goals and instead reinforce existing spatial inequalities. Drawing on IEA data on clean hydrogen projects, investment trends are examined. A spatial analysis combining project data with environmental conflicts, sourced from the Atlas of Environmental Justice, reveals a concentration of hydrogen projects in areas affected by ecological degradation and socio-environmental disparities, raising concerns about the socio-ecological distributive effects. Hydrogen development appears largely driven by market logics and seems unlikely to meet climate targets. |
| Keywords: | energy transition, industrial policy, hydrogen policy, environmental justice |
| Date: | 2025–09–02 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2025/28 |
| By: | Prajol Joshi (South Asia Watch on Trade, Economics and Environment); Madhu Marasini (South Asia Watch on Trade, Economics and Environment) |
| Abstract: | The accelerating climate crisis and associated socio-economic losses have intensified the global pursuit of clean energy solutions. Green hydrogen—produced via electrolysis using renewable sources like hydro, wind, or solar—has emerged as a promising alternative, enabling energy storage and decarbonization of hard-to-electrify sectors. Nepal has expanded its hydropower sector significantly, aiming to generate 28, 500 MW of electricity by 2035. Globally, initiatives like the UN’s Green Hydrogen Catapult, EU and Japan’s strategies, and national roadmaps in India, Sri Lanka, and China highlight growing momentum. Nepal has also advanced through its 2023 Green Hydrogen Policy, tax incentives, and Koshi Province’s fertilizer plant initiative. However, challenges remain, including high production costs, infrastructure gaps, regulatory shortcomings, and safety concerns. Moving forward, Nepal must strengthen its regulatory framework, offer greater technical and financial support to the private sector, and explore innovative financing to scale green hydrogen adoption. |
| Keywords: | green hydrogen, energy transition, hydrogen economy, energy security, climate change, sustainability, decarbonization |
| JEL: | Q42 Q56 L52 O13 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:saw:rpaper:rp/25/01 |
| By: | Burtraw, Dallas (Resources for the Future); Roy, Nicholas (Resources for the Future) |
| Abstract: | States can lead on climate policy while shielding households from the affordability impacts of rising policy uncertainties.Energy affordability is a concern to households across the country. Buchsbaum and Kahn-Lang (2025) summarize data from the US Energy Information Administration to illustrate that national average real electricity prices have risen over the past four years after nearly two decades of flat or decreasing real prices. Inflationary pressure in the electricity sector is especially salient with the rapid expansion of data centers and an anticipated increase in electricity demand resulting from electrification of other sectors (Robertson and Palmer 2025). The concern about energy affordability has been turbocharged in light of changes in federal regulations withdrawing support for clean energy investments.This issue brief considers an opportunity for state governments to respond to this challenge by enhancing electricity affordability for households and concurrently boosting environmental outcomes. Investments in renewable energy and energy efficiency would reduce electricity costs. With the loss of federal support for these investments, we explore the potential introduction of a price on carbon dioxide (CO2) emissions in the electricity sector at the state level, via a cap or limit on power sector emissions sources, and coupling that price with a policy to direct program revenues to reduce residential electricity rates (Meng and Prasad 2025). An example of this approach is embodied in recently proposed legislation in Pennsylvania (House Bill 503), which would introduce an electricity-sector carbon market and direct 70 percent of the auction proceeds to paying rebates to electric ratepayers, calculated on a per-kilowatt-hour basis. In California, under the state’s existing carbon market, residential electricity and natural gas customers receive an equal per-customer-account payment every six months. Recent research considers revising this program to direct proceeds to reduce volumetric electricity prices (Meng and Prasad 2025). The scenario examines the implementation of the policy in eight leadership states that have previously pursued clean energy policies such as renewable portfolio standards but do not currently have carbon pricing in place. Electricity-sector emissions are already subject to carbon pricing in the 10 currently participating Northeast and mid-Atlantic states Regional Greenhouse Gas Initiative (with two other observer states) and in California and Washington. Oregon has a regulatory cap on emissions. We model an electricity-sector carbon price implemented through an emissions cap in Arizona, Colorado, New Mexico, Illinois, Michigan, Minnesota, Wisconsin, and North Carolina. |
| Date: | 2025–08–27 |
| URL: | https://d.repec.org/n?u=RePEc:rff:ibrief:ib-25-11 |
| By: | - |
| Abstract: | This document examines the challenges and opportunities facing Latin America and the Caribbean in biodiversity conservation and sustainable development. While the region has abundant natural resources that have been instrumental in driving economic growth, their overexploitation has jeopardized this valuable heritage and exacerbated social inequality, and that, together with habitat loss, deforestation and climate change, threatens long-term sustainability. In that context, the development model must be reoriented towards a more sustainable one that values, preserves and regenerates the region’s natural heritage. Achieving this requires strengthening the participation of local institutions and actors and promoting research, investment and effective environmental governance, including the recognition of Indigenous Peoples, as key actors in the protection of biodiversity. Integrating conservation into public policies and decision-making processes will enable the region not only to ensure a more prosperous and sustainable future for its inhabitants, but also to produce innovative solutions to environmental challenges. |
| Date: | 2025–08–18 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:82396 |
| By: | Never, Babette; Stöcker, Alexander; Tsinda, Aimé; Mujanama, Erick; Mugisha, Roger |
| Abstract: | Green, circular buildings and their construction are essential for climate change mitigation and resource efficiency. However, the impact of a systematic shift towards green, circular buildings on employment in Sub-Saharan Africa remains unclear. Rwanda, particularly Kigali, is a relevant case due to its high urbanisation rate, pressing housing needs and political commitment to greening the economy. Currently, we do not know what types of green jobs exist in Kigali's construction value chain or what potential they have for economic development. This paper addresses these questions using a sequential mixed-methods approach. We conducted 33 qualitative, semi-structured interviews with local experts and stakeholders. Based on these insights, we ran a survey with 546 firms across five construction value chain segments: planners/architects, material producers, material and equipment suppliers, construction/masonry firms, and firms installing energy, water, and wastewater technologies. Our analysis reveals four key findings: (1) a significant number of green jobs exist in the construction value chain, with varying degrees of greenness based on the number of environmentally-friendly practices performed (about are 5 per cent highly green and 58 per cent are partly green); (2) diverse green and circular practices are developing through both state support and grassroots initiatives; (3) greening is positively and significantly correlated with employment growth for highly green firms; and (4) greening is positively and significantly associated with improved job quality for all firms. For policy-makers, our results suggest that supporting firms in critical transition phases - those that have initiated greening but are not fully engaged - may enhance both job quantity and quality in the short to mid-term. Expanding green and circular, bio-based building practices across the construction sector requires a mix of interventions focused on cost competitiveness, skills and attitudes. |
| Keywords: | green jobs, green economy, green buildings, value chain, Sub-Saharan Africa |
| JEL: | J21 Q56 L74 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:diedps:324633 |
| By: | Felbermayr, Gabriel; Peterson, Sonja; Wanner, Joschka |
| Abstract: | While international trade can offer gains from specialization and access to a wider range of products, it is also closely interlinked with global environmental problems, above all, anthropogenic climate change. This survey provides a structured overview of the economic literature on the interaction between environmental outcomes, trade, environmental policy and trade policy. In this endeavor, it covers approaches reaching from descriptive data analysis based on input‐output tables, over quantitative trade models and econometric studies to game‐theoretic analyses. Addressed issues are in particular the emission content of trade and emissions along value chains, the relocation of dirty firms and environmental impacts abroad, impacts of specific trade policies (such as trade agreements or tariffs) or environmental policies (such as border carbon adjustment), transportation emissions, as well as the role of firms. Across the different topics covered, the paper also tries to identify avenues for future research, with a particular focus on extending quantitative trade and environment models. |
| Keywords: | carbon border adjustment, carbon leakage, climate change, trade, trade policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:323983 |
| By: | C.O. Olaniyi (University of South Africa); N.M. Odhiambo (University of South Africa) |
| Abstract: | Transitioning to a carbon-neutral renewable energy (REN) option to decarbonize ecosystems and mitigate carbon dioxide (CO2) emissions and the negative impacts of climate change is consistent with United Nations Sustainable Development Goals 7 and 13. Scholars have identified natural resource wealth and institutions as critical factors in the REN transition in resource-rich countries. Financial barriers are arguably the most significant impediments to transitioning to REN, as REN is more capital-intensive and costly to produce, invest in, and use than traditional fossil fuel-based energy. Meanwhile, weak institutions and corruption in most resource-rich countries culminate in the resource curse phenomenon and the mismanagement of natural resource wealth. It implies that institutions (weak or strong) modify the natural resource rent contribution to the REN transition. Previous research has paid little attention to the impact of the interplay between natural resources and institutional quality on the REN transition in resource-rich African countries. This study examines how institutions moderate the contribution of natural resource wealth to accelerating or inhibiting the REN switch in resource-rich African countries for the period 2000–2021, using fully modified ordinary least squares, a Driscoll-Kraay nonparametric covariance matrix, and moments-based quantile regression estimators. This study departs from earlier studies by determining the institutional quality threshold above which institutions significantly stimulate natural resource rents to accelerate Africa's REN transition. The findings indicate that institutions in resource-rich African countries breed inefficient bureaucracies and corruption in natural resource rent administration. These undermine the ability of natural resource incomes to facilitate a shift to renewable energy sources. The threshold analyses indicate that most resource-rich African countries operate below the institutional quality threshold. This finding corroborates that inefficient institutions abet natural resource rent mismanagement and hinder the channeling of resource income towards the REN transition. The findings' policy implications are robustly articulated and outlined. |
| Date: | 2024–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:afa:wpaper:wp032024 |
| By: | Saon Ray (Indian Council for Research on International Economic Relations (ICRIER)); Vasundhara Thakur |
| Abstract: | The urgent need to address climate change has placed environmental degradation and sustainable development at the centre of policy discussions. This highlights the importance of examining how the financial system directs funds toward green investments or emission-intensive industries. Expanding financial inclusion integrates more individuals into the formal financial system, influencing capital allocation. India has introduced several initiatives in recent years to enhance financial inclusion. In this context, this study explores the impact of financial inclusion on carbon emissions in India from 1990 to 2018. It also examines the interplay of financial inclusion and financial development on carbon emissions in India. The study uses the ARDL bounds testing approach to find a long-run relationship between financial inclusion and carbon emissions. However, the interaction between financial inclusion and financial development does not significantly impact emissions in the long run. These findings contribute to understanding the role of financial inclusion in shaping India's environmental trajectory. |
| Keywords: | financial inclusion, carbon emissions, financial development, banking, green finance, icrier |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:bdc:wpaper:427 |
| By: | Jhonny Aguilar-Madrigal (Data Analysis and Statistics Division, Central Bank of Costa Rica); Mauricio Vega-Araya (Universidad Nacional de Costa Rica); Luis Rivera (LEAD University and Academia de Centroamérica) |
| Abstract: | Costa Rica produces a wide variety of ecosystem services. In terms of its contribution to climate change mitigation, the country’s forests play a vital role in carbon storage. These forests contribute not only to climate regulation but also to long-term economic stability. Nature-based tourism is a key driver of the economy, especially in protected areas that attract international visitors. Tourism has a multiplier effect on the local economy, boosting other productive sectors and contributing to sustainable economic growth. Crops such as pineapple and coffee play an important role in Costa Rica’s economy by adding value and generating employment. These sectors build a value chain, from primary production to the export of processed products, driving economic growth. ***RESUMEN: Costa Rica produce una amplia variedad de servicios ecosistémicos. Con relación a su contribución con la mitigación del cambio climático, los bosques del país desempeñan un papel vital en el almacenamiento de carbono. Los bosques del país contribuyen no solo con la regulación climática, sino también con la estabilidad económica a largo plazo. El turismo basado en la naturaleza es un motor clave de la economía, especialmente en áreas protegidas que atraen visitantes internacionales. El turismo tiene un efecto multiplicador en la economía local, impulsando otros sectores productivos y contribuyendo con el crecimiento económico sostenible. Los cultivos como la piña y el café desempeñan un papel importante en la economía costarricense al agregar valor y generar empleo. Estos sectores construyen una cadena de valor, desde la producción primaria hasta la exportación de productos procesados, impulsando el crecimiento de la economía. |
| Keywords: | Ecosystem Services; Ecosystem Accounting; Carbon Storage; Nature-Based Tourism; Environmental Economic Valuation; Agricultural Crops; System of Environmental-Economic Accounting (SEEA EA); Sustainable Public Policies; Climate Change; Servicios Ecosistémicos, Contabilidad de Ecosistemas, Almacenamiento de Carbono, Turismo Basado en Naturaleza, Valoración Económica Ambiental, Cultivos Agrícolas, Sistema de Contabilidad Ambiental y Económica |
| JEL: | Q01 Q26 Q57 Q56 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:apk:nottec:2501 |
| By: | Achim Hagen; Gilbert Kollenbach |
| Abstract: | We study the interaction of climate policies and investments into fossil and renewable energy generation capacity under political uncertainty caused by democratic elections. We develop an overlapping generations model, where elected governments determine carbon taxation and green investment subsidies, and individuals make investments into fossil and renewable capacity. We find that some fossil investments become stranded assets if the party offering the higher carbon tax is unexpectedly elected. Green investment subsidies can be used by governments to bind the hands of their successor. By using the subsidy, the party in power can influence the capital stocks and, therefore, the climate policy of the following period to reduce or even avoid potentially stranded assets. With endogenous reelection probability, the impact on the capital stocks can also be used strategically to manipulate the reelection probabilities in favor of the party in power. |
| Keywords: | stranded assets, elections, fossil fuel, renewable energy, carbon tax, investment subsidy |
| JEL: | D72 H23 Q54 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12063 |
| By: | Robertson, Molly (Resources for the Future); Ko, Eunice; Bautista, Eddie; Krupnick, Alan (Resources for the Future); Look, Wesley (Resources for the Future) |
| Abstract: | Disadvantaged communities (DACs) in New York State bear a disproportionate burden of pollution from fossil fuel power plants. Using SNL Energy data on generators, we estimate that 65 percent of emitting power generators in New York State are within one mile of a DAC. In New York City, nearly a million people live within one mile of the dirtiest peaker power plants, and the overwhelming majority are people of color. This issue brief presents modeling results for obligating the electricity sector and adding facility-specific caps to electric power generating facilities in the context of New York State’s cap-trade-and-invest (CT&I) system. Our analysis, which builds on previous work, covers the statewide and regional effects of these policy decisions and examines the community-level impacts to assess the role of these policies in delivering benefits to DACs in New York.The work featured in this issue brief builds on prior research, including a report coauthored by Resources for the Future and the New York City Environmental Justice Alliance that examined the impacts of environmental justice guardrails on emissions and costs in a cap-trade-and-invest program in New York State (Krupnick et al. 2024). That report provided evidence that facility- and sector-specific caps could be implemented to reduce emissions near DACs at little to no cost to households.Shortly before we released that report, the state shared a CT&I pre-proposal outline and preliminary scenario analyses to evaluate the policy designs it is considering (NYSERDA & DEC 2023, 2024). In the pre-proposal outline, the state requested feedback from stakeholders on certain aspects of the program to inform the CT&I draft regulations that will be released at the end of 2024. This issue brief and Krupnick et al. (2024) directly respond to questions raised in the pre-proposal outline.NYSERDA and DEC (2023) indicated that the state may not obligate (include) the New York power sector in the economy-wide CT&I system. In practice, this would mean that emissions from the electricity sector would contribute to New York’s overall emissions targets, but generators would not be required to purchase allowances to cover their emissions in the CT&I auction. Power generators in New York would still be required to purchase allowances in the Regional Greenhouse Gas Initiative (RGGI) auction to cover their emissions.The pre-proposal provided several reasons for this exclusion:the power sector is already regulated by other policies, including RGGI, a clean energy standard, and clean generation mandates that will drive decarbonization in the sector;electricity prices could rise if the power sector is included, which could discourage the electrification needed to drive decarbonization in a variety of sectors;rising electricity prices for New York generators facing the carbon price could induce power plants in other states (which may be dirtier than those in New York State) to increase their generation and associated greenhouse gas (GHG) and copollutant emissions, a process called leakage, making the regional emissions problem worse; andpermitting and interconnection delays for clean generation may limit the sector’s ability to decarbonize in the earliest years of the program, even with a carbon price in place.The state’s preliminary scenario analyses highlighted some of these concerns, mainly noting higher costs of delivering electricity and high GHG emissions leakage rates. The analyses did not investigate the impact of excluding the power sector on DACs.The pre-proposal solicited further input on whether the electricity sector should be obligated—that is, included in the CT&I system. It also sought guidance on the impact and importance of facility-specific caps for stationary emitters like power sector facilities. Our research responds to this solicitation, further informing the development of the New York cap-trade-and-invest system.In our previous report (Krupnick et al. 2024), we discussed the emissions and cost impacts of implementing facility-specific CO2 emissions caps in the power sector under a New York State cap-trade-and-invest program. However, our analysis did not consider what the impact of these caps would be if the state chose not to obligate the power sector in the program. We saw significant GHG and copollutant emissions benefits in the power sector relative to a business-as-usual (BAU) case without cap-trade-and-invest, but that case did not consider the possible impact of increased demand for electricity from other sectors driving emissions even higher in the power sector. We address this gap in this issue brief.For brevity, this issue brief focuses more on GHG and fine particulate matter (PM2.5) emissions than on results for NOX and SO2 emissions because these three copollutants generally move together. However, some tables and text do consider SO2 and NOx emissions separately. The next report from our team will examine the implications for DACs and other New York communities of the transformation and dispersal of these copollutant emissions into fine particulate concentrations (PM2.5 in ug/m3).Our main findings are as follows:All CT&I designs increase the demand for electricity in New York. Without obligating the electricity sector under CT&I, this rise in demand leads to an increase in GHG and PM2.5 emissions in the New York power sector.Statewide GHG emissions and average PM2.5 emissions at power sector facilities are lowest when the power sector is obligated and power generators face facility-specific caps. Statewide GHG emissions are highest when the power sector is not obligated and there are no facility-specific caps.Facility-specific CO2 emissions caps on power generators deliver copollutant emissions benefits to DACs whether the electricity sector is obligated under CT&I or not, by forcing emissions reductions at those facilities that are least responsive to CO2 emissions pricing through cap-trade-and-invest.About 43 percent of emissions reductions achieved by obligating the electricity sector are offset by out-of-state increases in power sector emissions.Obligating the electricity sector in CT&I or including facility-specific caps has almost no impact on electricity prices in our modeling.Overall, we find that obligating the electricity sector under New York’s CT&I program while also capping CO2 emissions at each facility offers the greatest power sector GHG and copollutant emissions improvements statewide and for areas surrounding DACs, compared with a BAU scenario. If the state ultimately decides not to obligate the electricity sector, facility-specific caps are even more important for delivering PM2.5 (and other copollutant) emissions reductions. Obligating the electricity sector under CT&I leads to some emissions leakage but still has a net negative impact on regional power sector emissions. Neither of the policy options we explored has a significant impact on retail electricity prices in our model. |
| Date: | 2024–06–17 |
| URL: | https://d.repec.org/n?u=RePEc:rff:ibrief:ib-24-04 |
| By: | Léa Tardieu (UMR TETIS - Territoires, Environnement, Télédétection et Information Spatiale - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - AgroParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris); Chloé Beaudet (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sarah Potin (LA TELESCOP); Julie Chaurand (LA TELESCOP); Léa Mariton (CESCO - Centre d'Ecologie et des Sciences de la COnservation - MNHN - Muséum national d'Histoire naturelle - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique); Vincent Delbar (LA TELESCOP); Maia David (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Urban planners continuously face the challenge of reducing artificial lighting to protect biodiversity while ensuring urban residents comfort and safety at night. Striking this balance is crucial for supporting urban residents broadly, yet it remains insufficiently explored in current research. Here, we integrate remote sensing and ecological modelling to assess species' requirements around light pollution reduction with socio-economic modelling to evaluate human residents' acceptance of various street-lighting adjustments, aiming to identify the optimal lighting compromises for Montpellier, France, a mid-sized European city. We show that, depending on the spatial context, both trade-offs and synergies can emerge when implementing light pollution mitigation measures. By integrating results into an RShiny application, we enabled urban planners to prioritize actions for each streetlight. Our findings underscore the importance of tailoring lighting policies to the specific environmental and social context rather than adopting a universal 'one-size-fits-all' approach. |
| Abstract: | Les urbanistes sont constamment confrontés au défi de réduire l'éclairage artificiel afin de protéger la biodiversité tout en garantissant le confort et la sécurité des citadins pendant la nuit. Il est essentiel de trouver cet équilibre pour soutenir les citadins dans leur ensemble, mais ce sujet reste insuffisamment exploré dans les recherches actuelles. Ici, nous combinons la télédétection et la modélisation écologique pour évaluer les besoins des espèces en matière de réduction de la pollution lumineuse avec la modélisation socio-économique afin d'évaluer l'acceptation par les habitants de divers ajustements de l'éclairage public, dans le but d'identifier les compromis optimaux en matière d'éclairage pour Montpellier, une ville européenne de taille moyenne. Nous montrons que, selon le contexte spatial, des compromis et des synergies peuvent émerger lors de la mise en œuvre de mesures d'atténuation de la pollution lumineuse. En intégrant les résultats dans une application RShiny, nous avons permis aux urbanistes de hiérarchiser les actions pour chaque lampadaire. Nos conclusions soulignent l'importance d'adapter les politiques d'éclairage au contexte environnemental et social spécifique plutôt que d'adopter une approche universelle « unique ». |
| Keywords: | Light pollution, socio-economic modelling, remote sensing, ecological modelling, ALAN, sustainable lighting |
| Date: | 2025–06–20 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05138150 |
| By: | Yixiao Tan; Dimitrios P. Tsomocos; Xuan Wang |
| Abstract: | Climate change affects the effectiveness of monetary policy, particularly in maintaining price stability. In a two-period theoretical model with heterogeneous agents, monetary policy and climate externalities, we establish that a trade-off exists between climate change and inflation. In addition, lower interest rates for green investments enhance economic growth and aggregate social welfare when carbon tax is not at the optimal level. Our analysis suggests that green monetary policy and carbon emission taxes are complementary rather than substitutes. Our findings provide policy implications for balancing climate change mitigation and economic stability for the South African Reserve Bank. |
| Date: | 2025–08–28 |
| URL: | https://d.repec.org/n?u=RePEc:rbz:wpaper:11089 |
| By: | Kuntal K. Das (University of Canterbury); Mona Yaghoubi (University of Canterbury) |
| Abstract: | This paper examines the impact of firm-specific climate change sentiment on stock liquidity using a novel dataset derived from earnings call transcripts of U.S. publicly listed firms. We find that negative sentiment related to regulatory transition risks significantly impairs stock liquidity, while sentiment related to physical risks or green opportunities has limited effects. The impact of negative sentiment is amplified in firms with higher information asymmetry and greater regulatory oversight, such as high litigation risk or substantial government funding. These findings highlight the asymmetric nature of market responses to climate risks and underscore the critical role of institutional context and informational frictions in shaping financial market reactions to climate-related developments. |
| Keywords: | Climate change sentiment, Stock liquidity, Asymmetric information, Regulatory environment |
| JEL: | G10 G40 Q54 Q58 |
| Date: | 2025–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:cbt:econwp:25/12 |
| By: | Sylvie Avallone (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); Sophie Nicklaus (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); Céline Giner (OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development); Juliana F. W. Cohen (Merrimack College, Harvard T.H. Chan School of Public Health); Stéphane Verguet (Harvard T.H. Chan School of Public Health) |
| Abstract: | The COVID pandemic has highlighted the essential role of school meal programs, not only for education but also for children's nutrition. In France, school meals are shaped by ambitious policies to ensure their safety and nutritional quality, while promoting sustainable eating practices and awareness of environmental and agricultural challenges. In this article, we used the case study of France to discuss the multi-sectoral value of these programs. The economic value of school meals in France amounts to €8.2 billion annually, of which 2.8 billion are dedicated to food purchases. Since 2022, the EGAlim and Climate and Resilience laws require canteens to offer one vegetarian meal per week and to source at least 50% of sustainable products with positive environmental or social impacts (e.g., certified products, organic farming, and short supply chains). These laws represent a potential support of €1.4 billion for more sustainable agriculture. School canteens also offer a unique opportunity for food education, allowing children to discover new types of food, notably with vegetarian menus. They can contribute to preventing childhood obesity by reducing exposure to ultra-processed foods. Additionally, they play an important role in social inclusion by providing subsidized meals for disadvantaged children. However, disparities in access to canteens persist due to the cost of meals, dietary restrictions or the presence of a parent at home. In conclusion, school meal programs in France generate significant multi-sectoral value in the areas of education, nutrition, agriculture, and social inclusion and support the transition to more sustainable food systems for future generations. |
| Keywords: | vegetarian meals, public policies, food education, nutrition, equity, climate resilience, economic value, organic farming |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05211597 |
| By: | Elkerbout, Milan (Resources for the Future) |
| Abstract: | The concept of leakage plays an important role in climate policy discussions and design. Leakage generally is shorthand for carbon leakage, which, even if intuitively understood as referring to greenhouse gas (GHG) emissions, can be defined in several ways. Leakage can also refer to production or investment, in which case industrial competitiveness is the more salient concern. The two concepts are often treated as overlapping, as this allows for environmental justification of policy measures that aim to protect competitiveness.Different types of leakage have different impacts and implications for policymaking. They require (and deserve) different policy responses to mitigate their adverse effects. This issue brief discusses how the concept of leakage affects climate policymaking and policy design and suggests distinguishing among types of leakage.As countries decarbonize their industries at different speeds, and as new close-to-carbon-neutral (or net-zero-compatible) industrial goods enter the market, the range of carbon intensities in traded industrial goods will be wider than ever, and the prospect of leakage may increase as well. Net-zero-compatible goods can be generally understood as technologies and activities that can continue well beyond the point where a jurisdiction has achieved net-zero emissions—or indefinitely—either by no longer emitting at all or by emitting in sufficiently limited quantities such that the residual emissions can be offset by carbon removal. The latter inevitably depends on political choices and constraints. It is helpful to distinguish among different types of leakage that may potentially arise so that any mitigating policy measures are effectively designed. Four types of leakage are discussed in Section 2.The intuition behind carbon leakage is that by enacting climate policy through pricing or regulation in one country, and thereby raising the costs of emitting GHGs, producers will move at least some of their production elsewhere to a region with lower carbon constraints, thereby offsetting the environmental gain while also undermining economic performance—a potential lose-lose outcome. A closer look at the various elements of potential leakage can be instructive.The worst case of carbon leakage involves a scenario in which emissions elsewhere increase by more than they are reduced in the region increasing its carbon constraints. However, a scenario in which emissions decrease by 100 metric tons in country A, only to rise by 95 tons in country B, is unlikely to be attractive to policymakers, even if there is a net environmental benefit.Things get trickier if the amount of leakage is further reduced but not zero. If emissions increase elsewhere by 20 or 30 tons in country B, the leakage effect is undermining the efficiency of the policy considerably, but the environmental impact can still be considered significant. However, if the policy discourse is squarely focused on the absolute amount of leakage, such a policy could still be rendered politically infeasible.To disentangle the political motivations in dealing with carbon leakage, it can also be instructive to look at the language of what should be done about it, such as risk, avoidance, or mitigation.Assessing whether carbon leakage has, in fact, occurred is not an easy task. Ex ante modeling usually tends to result in higher rates of leakage than empirical ex post studies reveal (Felbermayr and Peterson 2020; Caron 2022). In some cases, pass-through rates are used, with the lack of pass-through ability being considered evidence of risk of leakage. Attribution and causality add to the challenge. If climate policies—and carbon pricing, specifically—create a risk of leakage, it is usually assumed that this is linked to higher production costs and higher costs for energy inputs. However, energy prices can fluctuate for many reasons, and the final costs to (industrial) consumers depend on many factors, of which carbon and energy costs are only one. Shifts in production or investment can also occur for many reasons, some of which are orthogonal to policy, such as growing demand in other regions.Fully preventing or avoiding leakage, let alone claims of purported leakage, is therefore challenging. An element of discourse and narrative framing will remain in policy debates. Some policymakers instead talk about the risk of carbon leakage and the need to mitigate this risk. This leads to a need to define risk. Some combination of trade intensity (imports and exports divided by turnover) and emissions intensity (GHG emissions per volumetric metric ton of product) is generally used, although the ability to pass through costs is an alternative. By using the word risk, policymakers create a fair bit of latitude to act. By focusing on risk mitigation, some level of actually observed leakage might be seen as policy failure. On the other hand, focusing on risk is less precise and allows policymakers to argue that more protections, to further mitigate risk, are desirable.In these circumstances, vague assertions of leakage concerns can justify a great many policy interventions, some of which arguably go beyond legitimate climate policy effectiveness considerations. Protectionism, mercantilism, and geopolitical strife are resurgent today, with industrial policy in vogue again, while multilateral institutions such as the World Trade Organization are weakened (Elkerbout et al. 2024).With industrial competitiveness being threatened across Western countries—especially through competition with China and increasing hard security risks—policies to safeguard or boost competitiveness may become still more popular, as will the temptation to justify such measures by referring to leakage risks. Despite this new geopolitical background, increasingly ambitious climate policy is poised to continue apace. As new low-carbon producers (or production) enter the market, they will have to compete with incumbents domestically and abroad. This gives rise to a new type of competitiveness challenge. Trade and trade policy, moreover, lie at the core of any concern about leakage and competitiveness as the vehicle for carbon embedded in commercial exchange. |
| Date: | 2024–06–24 |
| URL: | https://d.repec.org/n?u=RePEc:rff:ibrief:ib-24-05 |
| By: | Wingenroth, Jordan (Resources for the Future); Prest, Brian C. (Resources for the Future); Rennert, Kevin (Resources for the Future) |
| Abstract: | The 2023 Global Stocktake (GST) that is scheduled to conclude at COP28 offers an opportunity to not only look back and measure progress toward the Paris Agreement goals but also look ahead and consider the benefits of achieving them. Estimating the economic benefits of reducing climate change requires a model that incorporates both socioeconomic and climatological elements, accounting for both the long-lived repercussions of near-term emissions and uncertainty in future emissions and temperature trajectories.In this issue brief, we use the Greenhouse Gas Impact Value Estimator (GIVE) model (Rennert et al. 2022) to estimate the global economic benefits of limiting temperature rise to the Paris Agreement targets of 1.5°C and “well below” 2°C above preindustrial levels. We construct modified versions of the GIVE model that are calibrated to meet these targets, and we compare them to the baseline model, which combines estimates made by a panel of experts about future population, GDP, and emissions trajectories with a robust climate model to arrive at a central outcome of 2.5°C above preindustrial levels in 2100. This baseline reflects an estimate of anticipated future emissions pathways as of the date of the elicitation, which was conducted in 2021. This sets it apart from business-as-usual scenarios because it captures the benefits that experts estimated would be achieved with the knowledge that they possessed at the time.We find that mitigation efforts that reduce expected warming from that scenario with a 2.5°C central temperature outcome to instead remain well below 2°C would generate cumulative expected economic benefits of $467 trillion in present value through 2300, equivalent to 1.5 percent of the cumulative expected present value of global GDP over the same time frame. In equivalent annual terms, this $467 trillion figure corresponds to $5.2 trillion in annual benefits. Holding the temperature increase to below 1.5°C would generate an additional $138 trillion, bringing the total benefits to $605 trillion or 2 percent of cumulative GDP. $605 trillion amounts to $6.8 trillion in equivalent annual terms.These estimated benefits incorporate the societal impacts of climate change that research suggests are most significant, but many other impacts have yet to be accounted for. Furthermore, our estimates represent incremental benefits from increasingly ambitious scenarios, but even the baseline scenario reflects some of the progress made since the Paris Agreement was signed and how such progress influenced our expert panel’s expectations for the future. For both of these reasons, our results should be understood as conservative estimates of the total benefits of achieving the agreement’s goals. |
| Date: | 2023–10–16 |
| URL: | https://d.repec.org/n?u=RePEc:rff:ibrief:ib-23-08 |
| By: | Yukihide Kurakawa (Kanazawa Seiryo University.); Makoto Tanaka (National Graduate Institute for Policy Studies.) |
| Abstract: | This paper shows how demand-side energy use efficiency affects demand response (DR) and total CO2 emissions. The marginal cost of DR corresponds to the marginal utility of electricity consumption. Thus, improved energy efficiency increases the marginal cost of DR and increases thermal power generation in balancing markets. We analyze a model consisting of a day-ahead and balancing market and examine CO2 emissions from each market. Improved energy efficiency decreases emissions from the day-ahead market while increasing emissions from the balancing market. The analysis reveals that improved energy efficiency could increase total emissions when the emission factor of the marginal plant in the day-ahead market is sufficiently small. Raising the carbon tax rate as energy efficiency improves will be necessary to deter such perverse effects, expanding the use of DR in the balancing market. |
| Keywords: | Day-ahead Market, Balancing Market, Carbon Tax, Incentivebased Demand Response, Demand-side Energy Efficiency |
| JEL: | D02 Q41 Q58 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:was:dpaper:2501 |
| By: | In Chang Hwang; Richard S. J. Tol |
| Abstract: | This paper presents a refined country-level integrated assessment model, FUND 3.9n, that extends the regional FUND 3.9 framework by incorporating sector-specific climate impact functions and parametric uncertainty analysis for 198 individual countries. The model enables estimation of the national social cost of carbon (NSCC), capturing heterogeneity across nations from economic structure, climate sensitivity, and population exposure. Our results demonstrate that both the NSCC and the global sum estimates are highly sensitive to damage specifications and preference parameters, including the pure rate of time preference and relative risk aversion. Compared to aggregated single-sector approaches, the disaggregated model with uncertainty yields higher values of the NSCC for low- and middle-income countries. The paper contributes to the literature by quantifying how sector-specific vulnerabilities and stochastic variability amplify climate damages and reshape global equity in the distribution of the NSCC. The NSCCs derived from our model offer policy-relevant metrics for adaptation planning, mitigation target setting, and equitable burden-sharing in international climate negotiations. This approach bridges the gap between globally harmonized carbon pricing and nationally differentiated climate impacts, providing a theoretically grounded and empirically rich framework for future climate policy design. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.03926 |
| By: | Bonacina, Monica; Demir, Mert; Sileo, Antonio; Zanoni, Angela |
| Abstract: | The transition to a zero-emission vehicle fleet represents a pivotal element of Europe’s decarbonization strategy, with Italy’s participation being particularly significant given the size of its automotive market. This study investigates the potential for battery electric cars (BEVs) to drive decarbonization of Italy’s passenger vehicle fleet, focusing on the feasibility of targets set in the National Integrated Plan for Energy and Climate (PNIEC). Leveraging artificial neural networks, we integrate macroeconomic indicators, market-specific variables, and policy instruments to predict fleet dynamics and identify key factors influencing BEV adoption. We forecast that while BEV registrations will continue growing through 2030, the growth rate is projected to decelerate, presenting challenges for meeting ambitious policy targets. Our feature importance analysis demonstrates that BEV adoption is driven by an interconnected set of economic, infrastructural, and behavioral factors. Specifically, our model highlights that hybrid vehicle registrations and the vehicle purchase index exert the strongest influence on BEV registrations, suggesting that policy interventions should prioritize these areas to maximize impact. By offering data-driven insights and methodological innovations, our findings contribute to more effective policy design for accelerating sustainable mobility adoption while accounting for market realities and consumer behavior. |
| Keywords: | Climate Change, Environmental Economics and Policy, Sustainability |
| Date: | 2025–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:369002 |
| By: | Sebastian G. Nosenzo |
| Abstract: | The increasing global demand for sustainable agricultural practices and effective waste management has highlighted the potential of biochar as a multifaceted solution. This study evaluates the economic viability of sugarcane bagasse-based biochar in Brazil, focusing on its potential to enhance agricultural productivity and contribute to environmental sustainability. While existing literature predominantly explores the production, crop yield benefits, and carbon sequestration capabilities of biochar, there is a notable gap in comprehensive economic modeling and viability analysis for the region. This paper aims to fill this gap by employing a scenario-based economic modeling approach, incorporating relevant economic models. Findings include that biochar implementation can be economically viable for medium and large sugarcane farms (20000-50000 hectares) given the availability of funding, breaking even in about 7.5 years with an internal rate of return of 18% on average. For small farms, biochar can only be viable when applying biochar to the soil, which in all scenarios is found to be the more profitable practice by a large margin. Sensitivity analyses found that generally, biochar becomes economically feasible at biochar carbon credit prices above $120 USD/tCO2e, and at sugarcane bagasse availability percentages above 60%. While the economic models are well-grounded in existing literature, the production of biochar at the studied scales is not yet widespread, especially in Brazil and uncertainties can result. Reviewing the results, the land application scenario was found to be the most viable, and large farms saw the best results, highlighting the importance of scale to biochar operation. Small and medium farms with no land application were concluded to have no and questionable viability, respectively. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2508.12454 |
| By: | Despina Gavresi (DEM, Université du Luxembourg); Andreas Sintos (DEM, Université du Luxembourg) |
| Abstract: | Can early-life experiences shape long-term risk attitudes? This paper examines the lasting effect of exposure to natural disasters during early adulthood on individual risk preferences. Using harmonized survey data linked to disaster records, we find that individuals exposed to natural disasters between the ages of 18 and 25 exhibit significantly greater risk aversion later in life. This effect is robust across a range of alternative specifications. We further explore the role of cultural transmission as a mechanism, showing that social connectedness moderates the observed behavioral shift. Our findings underscore the impressionable years as a critical window for the formation of individual preferences. The study offers new insights into how climate-related shocks can exert long-lasting behavioral effects, with implications for public policy, economic behavior, and climate adaptation. |
| Keywords: | Natural Disasters, Risk Attitudes, Impressionable Exposure, Cultural Transmission. |
| JEL: | D81 D91 Q5 Q54 Z10 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:25-13 |
| By: | Gingembre, Mathilde |
| Abstract: | This paper examines how land-based climate mitigation strategies under the European Green Deal raise crucial questions about the distribution and democratic control of land resources. The research analyses the intersection of carbon neutrality-driven land-use changes with existing patterns of land grabbing and concentration, revealing significant limitations in current just-transition approaches. Through a critical analysis of European climate policy frameworks and land governance mechanisms, the study demonstrates that the land dimension represents a notable blind spot in just-transition approaches. The findings indicate that existing frameworks, primarily focused on industrial restructuring and labor market adaptation, cannot adequately address the challenges of ensuring democratic access to and control over land resources. The paper proposes the concept of a "land-just transition" as a necessary evolution, advocating for the explicit integration of land justice considerations into climate transition frameworks. This approach would expand beyond compensation and adaptation to address fundamental questions of land governance and democratic control. The research concludes by identifying key areas requiring further investigation, including empirical analysis of land control patterns, development of policy instruments for ensuring land justice, and theoretical elaboration of land justice within just transition frameworks. |
| Date: | 2025–09–04 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:u4j9z_v1 |
| By: | Bollino, Carlo Andrea; Galeotti, Marzio |
| Abstract: | While population growth is a known driver of CO2 emissions, prevailing models often treat “population” as a homogeneous factor. This study addresses a critical gap, providing the first comprehensive empirical analysis to disaggregate the contributions of native-born and migrant populations to domestic CO2 emissions. Using an extended STIRPAT model for 172 countries (1990-2022), separated by OECD and non-OECD blocs, we uncover two novel insights. First, native-born populations consistently exhibit a substantially higher emissions elasticity than migrants in both country groups. Second, a dynamic shift occurred in OECD countries: migrants’ initially higher per capita emissions impact steadily declined over time, becoming lower than native-born individuals after 2003-2004. This refutes simplistic notions that migration inherently increases emissions. Our findings underscore the urgent need for differentiated, equitable climate policies that acknowledge the heterogeneous and evolving consumption patterns of diverse demographic groups, enabling more efficient mitigation strategies. |
| Keywords: | Climate Change |
| Date: | 2025–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:369003 |
| By: | Jacob Kim-Sherman; Lee Seltzer |
| Abstract: | Understanding the economic and financial consequences of natural disasters is a major concern for researchers and policymakers. The way in which overlapping natural disaster systems interact, as exemplified by the recent fires in Los Angeles being exacerbated by strong winds, is a major area of study in environmental science but has received comparatively little attention in the economics literature. Examining these potential interactions would likely be important for financial institutions, since such assessments would, in many instances, increase the estimated financial impact of a given natural disaster. In our recent Staff Report, we develop a method of identifying disaster systems in natural disaster data, such as the Spatial Hazard Events and Loss Database (SHELDUS), and use it to argue that the economics and finance literatures may have overlooked some sources of systemic risk. |
| Keywords: | natural disasters; clustering |
| JEL: | Q50 Q54 |
| Date: | 2025–09–02 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:101560 |
| By: | Harding, Anthony; Moreno-Cruz, Juan; Quaas, Martin; Rickels, Wilfried; Smulders, Sjak |
| Abstract: | Climate-econometric estimates assuming that climate changes affect economic growth result in larger projected damages than estimates restricting the effect to economic income levels. We show that the latter is consistent with neoclassical macroeconomic theory by explicitly accounting for income growth convergence in our empirical investigation. We show that accounting for convergence does not statistically change the point estimates capturing climate’s macroeconomic effect, but it has significant implications for assessing the long term economic consequences of climate change. The magnitude and spread of long-term losses from climate change are reduced. Aggregated damages are found to be convex in the extent of climate change and are projected to continuously increase over time with on-going climate change, in contrast to growth-effects-only estimates where the gains experienced by the winners of climate change eventually surpass the losses incurred by the losers. For example, projections of climate change damages based on climate-econometric estimates by Burke et al., 2015 find that global warming could reduce average global incomes by 20% and drastically increase intercountry income inequality, reflected by a 118% increase in the Gini coefficient in 2100 under RCP8.5. We reestimate and project climate damages under the same scenario accounting for convergence and find global climate damages around 8.5% of global incomes and an increase in intercountry income inequality by 8% in 2100. |
| Keywords: | Climate change, Economic growth, Convergence |
| JEL: | Q54 O47 O44 C23 D63 Q56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:323984 |
| By: | Owen Kay |
| Abstract: | In open economies, the effectiveness of carbon taxes is diminished by “pollution leakage, ” where some polluting activity shifts abroad because of the tax. This paper shows that the same conditions that lead to pollution leakage enhance the efficacy of clean subsidies. As a result, the optimal policy in an open economy combines a pollution tax and a clean subsidy, the balance of which depends on the leakage rate. Furthermore, efficient policy sets the sum of the tax and subsidy rates, a measure of policy ambition, equal to the marginal damages from pollution, and does not depend on the leakage rate. |
| Keywords: | energy taxes; energy subsidies; clean subsidies; pollution leakage; optimal policy; open economy |
| JEL: | H23 H21 Q41 Q42 Q48 F18 |
| Date: | 2025–08–18 |
| URL: | https://d.repec.org/n?u=RePEc:fip:feddwp:101526 |
| By: | Margaux Salmon-Genel |
| Abstract: | As climate change is increasingly recognised as a significant source of macroeconomic and fiscal risks, it becomes essential to assess its macro-fiscal impacts and integrate them into national budgetary frameworks. Recent amendments to related EU law (Council Directive 2011/85/EU) introduced new requirements for Member States to assess and disclose information, to the extent possible, on how the macro-fiscal risks from climate change may affect the medium- and long-term sustainability of public finances, on disaster- and climate-related contingent liabilities, and on the fiscal costs incurred due to disasters and climate-related shocks. This discussion paper is intended as an operational document to support reflection on how to approach assessments of the macro-fiscal risks from climate change in light of these new requirements. It outlines key concepts, explores possible methodologies and available tools, and presents country practices that illustrate emerging approaches across Europe. It also proposes a gradual approach to conducting assessments, helping to identify areas that could be further developed. This paper is structured as a modular resource, providing a flexible framework that can be adapted to national specificities. While progress is evident, current efforts to assess the macro-fiscal impacts of climate change often cover specific aspects rather than being comprehensive, and integration of climate risks into forecasts and budgets is still at an early stage. Strengthening data collection, enhancing the accessibility and use of existing tools, and building institutional capacity are essential to embed climate risks into fiscal planning. This paper aims to contribute to a shared understanding and to support more risk-informed national budgetary frameworks in line with evolving EU requirements |
| JEL: | H5 H61 Q58 Q51 Q54 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:euf:dispap:224 |
| By: | Luis Gonzáles; Cristian Rojas |
| Abstract: | This study shows evidence of the levels of exposure to physical and transition climate risks of the commercial portfolio of Chilean banks. Regarding physical risk, we find that the exposure of commercial loans to economic sectors that are intensive in natural resources is 11%. Using the chain of impact, the most relevant risks manifest in 3% of the portfolio, with a high dispersion between banks. Regarding transition risks, we analyzed the exposure to sudden increases in the carbon tax, changing it from USD 5 to USD 75. We found that 20% of the commercial portfolio is exposed to this risk. However, only 4, 9% face a higher risk due to the representativeness of this tax increase either in the company's residual debt or sales level. At a systemic level, we find that 27% of the portfolio is exposed to some degree of climate risk, and 7% is at a high-risk level. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:chb:bcchwp:1040 |
| By: | Elkerbout, Milan (Resources for the Future); Kopp, Raymond J. (Resources for the Future); Rennert, Kevin (Resources for the Future); Nehrkorn, Katarina (Resources for the Future) |
| Abstract: | In our 2023 report, Carbon Border Adjustments: Design Elements, Options, and Policy Decisions, we provided an overview of critical design elements in carbon border adjustment policies. We compared these design elements, such as how fees are set and the product scope, across several border adjustment mechanisms (BAMs) including the European Union’s Carbon Border Adjustment Mechanism (EU CBAM); the Clean Competition Act (CCA) proposal and the Foreign Pollution Fee Act (FPFA) proposal. In April 2025, a revised version of the FPFA was reintroduced in the Senate by Bill Cassidy (R-LA) and Lindsey Graham (R-SC). This issue brief uses the design elements introduced in our original BAM report to describe the policy reflected in the updated bill.The FPFA recognizes in its design and structure that the United States has reduced its greenhouse gas (GHG) emissions substantially over time, and that US manufacturers face costs to comply with environmental regulations that are not faced uniformly by many countries US manufacturers compete with. Though US emissions have decreased, the United States is also a significant importer of GHGs embodied in primary commodities and manufactured products from countries that have not taken comparable actions to reduce their emissions.A primary purpose of the FPFA is to level the playing field for US manufacturers vis-à-vis manufacturers in jurisdictions with higher average carbon intensities in selected sectors and thereby reduce the importation of embodied GHGs. The FPFA seeks to accomplish this goal by imposing a fee on embodied imported GHGs for a set of product categories that are highly traded and also have high GHG intensities. The proposed fees are intended to disincentivize US importation of such products from countries with poor environmental performance, incentivize increased importation from countries with high environmental performance and greater US manufacturing overall, and address concerns about international industrial competitiveness. The primary focus on leveling the playing field for US manufacturers means that the FPFA does not include provisions to require further reductions in greenhouse gases by domestic manufacturers, in contrast to other proposals such as the CCA.BAMs are complicated and technical policy instruments, and the FPFA is no exception. To describe the FPFA in this brief, we discuss it in terms of the seven design elements of BAMs we laid out in our earlier report. We have made every effort to be concise with respect to our descriptions of the policy approach taken in the legislation, but that has required us to abstract from a great deal of detail that exists within the legislative text. This issue brief is intended to provide a roadmap to understanding the approach taken by the FPFA but should not be considered a complete and comprehensive description and review. |
| Date: | 2023–11–06 |
| URL: | https://d.repec.org/n?u=RePEc:rff:ibrief:ib-23-09 |
| By: | Ms. Pritha Mitra; Mr. Mehdi Raissi; Mr. Bruno Versailles; Samuele Centorrino; Maksym Ivanyna; Koralai Kirabaeva; Emanuele Massetti; Mariza Montes de Oca Leon; Ha Nguyen; William Oman; Mr. Nooman Rebei; Filippos Tagklis; Alice Tianbo Zhang; Christoph Ungerer; Javier Uruñuela López; Sha Yu |
| Abstract: | Climate change poses significant and diverse impacts on countries’ macroeconomic and financial stability, resulting in complex macro-critical policy challenges. Consequently, where significant, country-level macroeconomic analysis may need to integrate climate change-related impacts and policies. This paper reviews (i) climate change and related policies’ channels of impact on the real, fiscal, external, monetary, and financial sectors over various time horizons and (ii) corresponding data sources, models, and climate scenarios that could be applied in assessing the impact of physical climate risks as well as adaptation, transition, and mitigation policies. The paper concludes with considerations for future work. |
| Keywords: | Climate change; economic growth; adaptation |
| Date: | 2025–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/170 |
| By: | Bergman, Aaron (Resources for the Future) |
| Abstract: | The central question in determining the emissions effect of new load on the electrical grid is whether the new generation is clean. In previous installments of this series, I reviewed studies that directly address this question, using optimizing models to look at the effect of the demand for electricity from electrolysis, the process of producing hydrogen by using electricity to split water. In this issue brief, I consider two studies that instead assume all the new generation built in response to the new demand from an electrolyzer is clean. The study from Energy + Environmental Economics (E3) was sponsored by the American Council on Renewable Energy, and the Boston Consulting Group (BCG) study was sponsored by NextEra Energy.As I argued in the opening blog post of this series, not assuming that new generation is clean is the more defensible approach. Nonetheless, one can still obtain valuable insight from studies that assume the contrary. In this issue brief, I will discuss the findings from these studies and how I believe they should be interpreted. |
| Date: | 2023–09–27 |
| URL: | https://d.repec.org/n?u=RePEc:rff:ibrief:ib-23-06 |
| By: | Wang, Maria; Kässi, Otto; Kuusi, Tero |
| Abstract: | Abstract This brief examines environmental and energy-related business subsidies in Finland and compares them with those in other EU countries. In Finland, subsidies are concentrated on tax concessions and preservation-oriented support for which there is limited amount of research, and the existing studies show limited effectiveness. By contrast, investment and innovation subsidies, which potentially have a greater potential to accelerate the green transition, make up a smaller share of the overall support. Internationally, Finland stands out with a high level of subsidies, but structurally it differs from, for example, Germany, where the emphasis is on direct investment support. The analysis suggests that redirecting subsidies from tax concessions towards conditional, impact-oriented instruments could better support permanent emission reductions, technological development and economic renewal. |
| Keywords: | Green transition subsidies, State subsidies, Environmental policy funding, Industrial policy |
| JEL: | H23 H25 H81 Q58 O38 |
| Date: | 2025–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:rif:briefs:163 |
| By: | Richard S. J. Tol |
| Abstract: | There are many published estimates of the social cost of carbon. Some are clear outliers, the result of poorly constrained models. Percentile winsorizing is an option, but I here propose conceptual winsorizing: The social cost of carbon is either a willingness to pay, which cannot exceed the ability to pay, or a proposed carbon tax, which cannot raise more revenue than all other taxes combined. Conceptual winsorizing successfully removes high outliers. It slackens as economies decarbonize, slowly without climate policy, faster with. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2508.07384 |
| By: | Rawadee Jarungrattanapong; Therese Lindahl |
| Abstract: | Artisanal fisheries are significant for poverty alleviation, but they are severely threatened by overfishing and climate change effects. Governance solutions can be hard to find when their implementation and success depend on both social and ecological contexts. In this study, our objective is to increase our understanding of behavioral strategies adopted by artisanal fisheries under different types of regulations using a field experiment in the form of a so-called common-pool resource (CPR) experiment with 540 artisanal fishers in Nakorn Si Thammarat province, Thailand. Our results reveal that: (i) a quota treatment provide higher overall efficiency and leads to more sustainable management compared to the treatment with an unregulated fishery. (ii) the higher probability of punishment in the quota treatment promotes more equal sharing of payoffs from the experiment among group members compared to a quota treatment with a low probability of punishment; and (iii) a higher degree of monitoring in the quota system prevents resource depletion. Our results suggest that the community empowerment in these artisanal fishery communities is not strong enough to make fishers cooperate effectively without regulation and that a quota system may be one plausible solution. Our results also suggest, however, that the design of the monitoring and punishment systems may need careful consideration to ensure a sustainable solution. |
| Keywords: | Quota; Self-governance; Total allowance catches; Artisanal fisheries; Lab-in-the-field experiment |
| JEL: | Q22 Q28 C93 D70 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:pui:dpaper:237 |
| By: | Jessica Birkholz; Susanna Bolz; Björn Jindra; Philip Kerner |
| Abstract: | Green hydrogen can play a major role in future net-zero energy systems. This paper investigates how existing technological and production capabilities can support the emergence and growth of green hydrogen value chains in Northern and Western Germany. Drawing on evolutionary economic geography, we argue that the development of the hydrogen value chain depends on the relatedness between existing knowledge bases and hydrogen technologies, and further recombinant capabilities, as well as the processes involved in acquiring capabilities. Our analysis focuses on seven NUTS 2 regions with favorable conditions for the development of hydrogen hubs, which are low cost of renewable energy production, access to hydrogen infrastructure, and political support for the hydrogen economy. We comparatively examine the regional capabilities using patent data to map technological innovation, firm-level data to identify key corporate actors, and regionalized export statistics to assess production capabilities. Based on our findings, we argue that the development of green hydrogen hubs might be facilitated by alignment between a region’s existing innovation capabilities, production capabilities, and hub specialization, with place-based policy approaches tailored towards each region’s unique profile. |
| Keywords: | Green hydrogen, Value chains, Regional capabilities |
| JEL: | O13 Q42 Q55 R11 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:atv:wpaper:2505 |
| By: | Majer, Sarah; Boelhauve, Patrick; Hasch, Joachim; Ohlmeyer, Martin |
| Abstract: | The increased use of wood as a sustainable building material offers significant potential for reducing CO₂ emissions in the construction sector. At the same time, the natural variability of wood products, particularly their volatile organic compounds (VOCs), poses challenges for indoor air quality. Monoterpenes such as α-pinene and 3-carene dominate the emissions of pine wood and are the focus of current research aimed at assessing and reducing VOC emissions and exposure. The standardized approach to emission analysis, based on the chamber method according to DIN EN 16516:2017, is time-consuming. This project report demonstrates that near-infrared spectroscopy (NIR), combined with multivariate analytical methods, can provide an efficient and precise alternative. The results show that reliable predictive models for terpene emissions from pine wood could be developed using NIR technology. For α-pinene and 3-carene, cross-validated correlation coefficients of R²CV = 0.77 were achieved, indicating good model quality. The mean deviation in cross-validation (RMSECV) was 1, 257 μg/m³ for α-pinene and 1, 232 μg/m³ for 3-carene. These models enable a rapid evaluation of product emissions, with model accuracy performing particularly well at medium and higher concentrations. However, limitations exist in the lower concentration range, which restricts the applicability of the method in such cases. The applicability to wood materials such as strands (long, thin chips) used for the production of OSB, proved problematic due to transmission effects and high spectral variability. To make the technology usable for woodbased materials, advanced calibration approaches are required. Overall, NIR technology represents a promising complement to existing analytical methods and opens up new perspectives for the sustainable processing of wood products. |
| Keywords: | Land Economics/Use, Research Research Methods/Statistical Methods |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:jhimwo:368988 |
| By: | Lea Fricke; Clemens Fuest; Dominik Sachs |
| Abstract: | We study optimal redistribution and carbon taxation in a Mirrlees framework. Households differ in their carbon footprint due to both (i) the overall level of spending and (ii) the composition of spending. Introducing a cap on carbon emissions reduces the social value of output, which lowers the efficiency costs of taxation and thereby strengthens the scope for redistribution. However, the optimal increase in redistribution is weaker than suggested by popular proposals for a carbon dividend. While the optimal rebate schedule overcompensates low-income households and undercompensates high-income households for their carbon tax burden, the rebate nevertheless rises with income. Quantifying the model for Germany, we find that the optimal rebate for the 90th income percentile is nearly three times that for the 10th percentile, whereas carbon tax payments are about seven times higher. This results in higher effective average tax rates at the top and lower ones at the bottom of the income distribution. |
| Keywords: | carbon tax, optimal taxation, carbon dividend |
| JEL: | H21 H23 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12085 |
| By: | Pablo Acevedo; Elías 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. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:chb:bcchwp:1047 |
| By: | Legrenzi, Demis; Ciola, Emanuele; Bazzana, Davide |
| Abstract: | This paper examines the macro-financial effects of alternative adaptation strategies in response to exogenous shocks in labor productivity caused by climate change. Using a Stock-Flow-Consistent Agent-Based model calibrated to U.S. data, we analyze two main scenarios: (i) a change in the conduct of monetary policy to account for climate-related damages, and (ii) a firm-level adaptation strategy that internalizes expected climate losses. We evaluate both scenarios under the assumption of either homogeneous or heterogeneous climate shocks. Our results indicate that both strategies can mitigate the adverse effects of climate change on output and wealth distribution. However, their performance is significantly worse in the presence of heterogeneous climate shocks, which also lead to a persistent increase in firms’ leverage. Moreover, while firm-level adaptation relies primarily on internal resources, monetary policy adjustments increase firms’ dependence on external debt financing, underscoring the need for closer monitoring of financial stability in such circumstances. |
| Keywords: | Climate Change, Labor and Human Capital |
| Date: | 2025–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:369004 |
| By: | Jonathan Brandt; Astrid Bensmann; Richard Hanke-Rauschenbach |
| Abstract: | Following years of controversial discussions about the risks of market-based redispatch, the German transmission network operators finally installed regional redispatch markets by the end of 2024. Since water electrolysers are eligible market participants, the otherwise downwards redispatched renewable energy can be used for green hydrogen production in compliance with European law. To show how different price levels in regional redispatch markets affect green hydrogen production cost and thus the incentive for electrolyser market participation, we use historic redispatch time series and evaluate various power purchase scenarios. Our results show that low price levels can lead to notable production cost reductions, potentially counteracting uncertainties in redispatch power availability and thus incentivising system-beneficial electrolyser siting. In contrast, the possibility of high price levels can nullify an increase in the competitiveness of German and European green hydrogen through production cost reductions and discourage market participation. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2508.06500 |
| By: | Lück, Sarah; Callaghan, Max; Borchers, Malgorzata; Cowie, Annette; Fuss, Sabine; Gidden, Matthew; Hartmann, Jens; Kammann, Claudia; Keller, David P.; Kraxner, Florian; Lamb, William F.; Mac Dowell, Niall; Müller-Hansen, Finn; Nemet, Gregory F.; Probst, Benedict S.; Renforth, Phil; Repke, Tim; Rickels, Wilfried; Schulte, Ingrid; Smith, Pete; Smith, Stephen M.; Thrän, Daniela; Troxler, Tiffany G.; Sick, Volker; van der Spek, Mijndert; Minx, Jan C. |
| Abstract: | Carbon dioxide removal plays an important role in any strategy to limit global warming to well below 2 °C. Keeping abreast with the scientific evidence using rigorous evidence synthesis methods is an important prerequisite for sustainably scaling these methods. Here, we use artificial intelligence to provide a comprehensive systematic map of carbon dioxide removal research. We find a total of 28, 976 studies on carbon dioxide removal—3–4 times more than previously suggested. Growth in research is faster than for the field of climate change research as a whole, but very concentrated in specific areas—such as biochar, certain research methods like lab and field experiments, and particular regions like China. Patterns of carbon dioxide removal research contrast with trends in patenting and deployment, highlighting the differing development stages of these technologies. As carbon dioxide removal gains importance for the Paris climate goals, our systematic map can support rigorous evidence synthesis for the IPCC and other assessments. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:323986 |
| By: | Karla Hernández; Facundo Luna; Carlos Madeira |
| Abstract: | Climate change should deteriorate the value of real estate, but studies are lacking for developing economies which may suffer the worst weather changes. We match an administrative register of all the real estate properties’ transactions in Chile between 2002 and 2020 with a high spatial resolution dataset of local temperatures and precipitation. Even after controlling for a wide set of home characteristics or fixed-effects for each property, we find that fluctuations in temperatures had an impact on the prices of residential homes and agricultural properties. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:chb:bcchwp:1030 |
| By: | Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Kataria, Mitesh (Department of Economics, School of Business, Economics and Law, Göteborg University); Lampi, Elina (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | We investigate how politicization and the financial cost of climate policies influence public trust in scientific information about climate change. We find that citizens' trust in science-based information on climate is influenced by its political context. When climate policy is associated with a political affiliation, trust in the scientific information decreases, independent of the political party supporting the policy. However, there is no effect on policy support on political endorsement. Varying the financial cost of the policy to induce cognitive dissonance had no significant effect on trust in the scientific information; instead, as expected, higher cost substantially reduced policy support. |
| Keywords: | Experiment; climate change; scientific information; political parties; motivated beliefs |
| JEL: | D91 Q54 Q58 |
| Date: | 2025–08–26 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:gunwpe:0856 |
| By: | Joiner, Emily (Resources for the Future); Russo, Suzanne (Resources for the Future); Toman, Michael A. (Resources for the Future) |
| Abstract: | We examine three pathways for reducing agricultural greenhouse gas (ag-GHG) emissions in the United States that complement the Farm Bill’s Title II programs:support for the development of markets for “climate-smart” agricultural productsresearch and development (R&D) support by the public sector for technical innovation that improves capabilities to reduce ag-GHG emissionsag-GHG emissions credits that can be used by other GHG sources to offset a portion of their own emissions-reduction obligationsClimate-smart agricultural products have lower GHG emissions in their supply chains. In addition to how those reductions are accomplished and validated, a key issue is what demand there will be for such products if their costs exceed those of conventional alternatives.Agricultural R&D is supported under Title VII of the Farm Bill and through other means. Key issues are broadening the range of ag-GHG mitigation practices receiving R&D support and ensuring the fruits of agricultural R&D are relevant for and available to a diverse array of producers.Ag-GHG emissions credits facilitate lower costs for achieving emissions mitigation, which may also increase ambition for mitigation. To have ag-GHG emissions credits that are both environmentally sound and affordable, several measurement and validation challenges need to be addressed, including establishing that the claimed ag-GHG emissions reductions would not have happened anyway (in other words, they are additional). |
| Date: | 2023–11–09 |
| URL: | https://d.repec.org/n?u=RePEc:rff:ibrief:ib-23-10 |
| By: | Raphaël Chiappini (University of Bordeaux); Enea Gerard (University of Bordeaux) |
| Abstract: | This paper investigates the impact of environmental regulations on inward foreign direct investment (FDI) using a novel index that distinguishes between the implementation and enforcement of environmental policy across 111 countries from 2001 to 2018. Leveraging bilateral FDI data and a structural gravity model, we find robust evidence of a Pollution Haven Effect: stricter environmental regulations in host countries are associated with lower inward FDI. The effect is more pronounced in emerging markets and in environments with higher corruption. Importantly, we show that FDI responds more strongly to policy implementation, capturing formal regulatory commitment, than to enforcement, measured as deviations between predicted and actual emissions. In addition, bilateral FDI patterns are shaped by the environmental stringency gap between source and host countries, consistent with regulatory arbitrage behavior. |
| Keywords: | Environmental regulation, foreign direct investment, Pollution Haven Hypothesis |
| JEL: | F Q |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:inf:wpaper:2025.09 |
| By: | Lehr, Jakob |
| Abstract: | Using the German census of the manufacturing industry, I analyze the impact of import competition on carbon emissions per unit of deflated sales (emission intensity). I combine precise information on firm‐level CO emissions with sector‐level trade flows. Looking at the period 1995 until 2017, I focus on the impact of the rise of Eastern Europe and China while addressing the endogeneity of trade flows with an instrumental variable approach. The baseline results suggest that a 1 pp increase in the import penetration ratio caused a reduction of the average firm's emission intensity by approximately 0.3%. This result implies that the rise of the joint East between 1995 and 2017 kept the average firm's emission intensity 6% below the level it would have had in the absence of the East's rise. I do not find strong indication for reallocation of production towards more efficient firms. Finally, I supplement the analysis by examining the effect of export opportunities due to the East's rise. The results indicate that exporting to the East increased sales and emissions, with a small, if any, negative effect on emission intensities. |
| JEL: | F18 Q54 L60 D22 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:323985 |
| By: | Hippolyte Lion da Silva Aguiar (AGIR - AGroécologie, Innovations, teRritoires - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INP - PURPAN - Ecole d'Ingénieurs de Purpan - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Marie-Benoît Magrini (AGIR - AGroécologie, Innovations, teRritoires - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INP - PURPAN - Ecole d'Ingénieurs de Purpan - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Pierre Labarthe (AGIR - AGroécologie, Innovations, teRritoires - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INP - PURPAN - Ecole d'Ingénieurs de Purpan - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Mission-oriented Innovation Systems (MIS) play a crucial role in policies for sustainability transitions, yet their development through bottom-up dynamics is not well understood. We mobilized innovation functions and Resources-Based-View approaches to investigate how a formal network in the agri-food sector developed as an MIS. Within the conceptual framework we built, innovation functions are entry points for understanding how collective action leads to resource sharing and building. This study investigates the FILEG association in southern France, created to promote the sustainable development of the regional legume value chain, involving over 70 actors. Data collected through desk research, a questionnaire, and interviews reveal diverse perceptions among members regarding the association's contributions to innovation functions. This raises questions about the collective's ability to achieve internal and external legitimacy and highlights the need for dialogue between MIS and institutional approaches, which could advance governance and coordination as a key innovation function in MIS. |
| Keywords: | Agri-Food Systems Transformation, Mission-Oriented Approach, Innovation Functions, Sustainability Transitions, Sustainable Value Chains |
| Date: | 2025–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05217507 |
| By: | Dejan Glavas (ESSCA School of Management, Paris); Gilles Grolleau (ESSCA - ESSCA – École supérieure des sciences commerciales d'Angers = ESSCA Business School); Naoufel Mzoughi (ECODEVELOPPEMENT - Ecodéveloppement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This study investigates trust of information technology (IT) professionals in artificial intelligence (AI), human experts, and their combination for achieving Sustainable Development Goals (SDGs). Through a survey of IT project managers and frequent AI users across France, the United Kingdom, and Belgium, our findings reveal that respondents place significantly higher trust in human experts and combinations of AI and human expertise, compared to AI. Notably, individuals who most frequently use AI technology show stronger preference for human-AI collaborative approaches, suggesting that familiarity with AI leads to better understanding of its complementary role with human expertise. The study demonstrates that successful AI implementation for achieving SDGs requires careful integration with human oversight rather than standalone deployment. |
| Keywords: | sustainable development, SDG, Artificial intelligence |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05209259 |
| By: | Domenico de Paola (IBBR CNR - Istituto di Bioscienze e BioRisorse = Institute of Biosciences and Bioresources - CNR - National Research Council of Italy | Consiglio Nazionale delle Ricerche); Francesca Taranto (IBBR CNR - Istituto di Bioscienze e BioRisorse = Institute of Biosciences and Bioresources - CNR - National Research Council of Italy | Consiglio Nazionale delle Ricerche); Soraya Mousavi (IBBR CNR - Istituto di Bioscienze e BioRisorse = Institute of Biosciences and Bioresources - CNR - National Research Council of Italy | Consiglio Nazionale delle Ricerche); Francesco Mercati; Wilma Sabetta (IBBR CNR - Istituto di Bioscienze e BioRisorse = Institute of Biosciences and Bioresources - CNR - National Research Council of Italy | Consiglio Nazionale delle Ricerche); Marina Tumolo (IBBR CNR - Istituto di Bioscienze e BioRisorse = Institute of Biosciences and Bioresources - CNR - National Research Council of Italy | Consiglio Nazionale delle Ricerche); Sharif Islam (Naturalis Biodiversity Center [Leiden]); Roland Pieruschka (IBG - Institute of Bio- and Geosciences [Jülich] - FZJ - Forschungszentrum Jülich GmbH | Centre de recherche de Jülich | Jülich Research Centre - Helmholtz-Gemeinschaft = Helmholtz Association); Andrea Scaloni; Anne-Françoise Adam-Blondon (IFB-core - Institut Français de Bioinformatique - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - INSERM - Institut National de la Santé et de la Recherche Médicale - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, URGI - Ressources génomique-info - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Lorenzo Maggioni; Sandra Goritschnig (Alliance - Alliance of Bioversity International and the International Center for Tropical Agriculture (CIAT) [Rome] - CGIAR - Consultative Group on International Agricultural Research [CGIAR]); Filippo Guzzon; Massimo Ianigro (IRSA - CNR Water Research Institute - CNR - National Research Council of Italy | Consiglio Nazionale delle Ricerche); Giovanni Giuseppe Vendramin; Giovanni Giuliano (ENEA - Agenzia Nazionale per le nuove Tecnologie, l’energia e lo sviluppo economico sostenibile = Italian National Agency for New Technologies, Energy and Sustainable Economic Development); Gabriele Bucci (IBBR CNR - Istituto di Bioscienze e BioRisorse = Institute of Biosciences and Bioresources - CNR - National Research Council of Italy | Consiglio Nazionale delle Ricerche) |
| Abstract: | Background: Plant genetic resources (PGRs) are crucial for sustainable agriculture and food security, but the roadmap of the European Strategy Forum on Research Infrastructures (ESFRI) lacks a dedicated research infrastructure (RI) for their systematic cataloguing, safeguarding and improvement. To fill this gap, we propose a new RI concept specifically for PGRs in Europe. Scope: The proposed RI, called ‘Plant Genetic Resources Community for Europe' (GRACE), is aimed to support current and future research projects on PGRs, enhance collaboration across European countries, unlock the adaptive potential of crop biodiversity preserved in PGR collections, and strengthen the current and future sustainability of the food chain in Europe. As part of the preparatory project ‘Promoting a Plant Genetic Resource Community for Europe' (PRO-GRACE), we analysed the current landscape of European RIs supporting PGR-related research in complementary fields regarding research aims, research products and features/services. Conclusions: Through a robust quantitative approach, we have identified gaps and potential synergies among six RIs from the Health and Food and Environment domains of the ESFRI roadmap. These findings were discussed in the context of European PGR research priorities and current societal needs, and the implementation of GRACE was proposed as a strategic response to these challenges. |
| Keywords: | genebanks, ex situ and in situ PGR conservation, plant genetic resources, GRACE-RI, research infrastructure, ESFRI roadmap, Crop diversity, gap analysis, synergy analysis |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05222930 |
| By: | Odunola Oladeji; Ilan Noy |
| Abstract: | For Africa, there is limited documented evidence on the impact of weather shocks on mental health. The expediency and need to understand this nexus motivate this study on the effect of extreme temperatures on self-reported mental health in South Africa. We combine district-level climate data with a nationally representative panel dataset from the National Income Dynamics Survey, which spans 2008 to 2017. Using a panel fixed-effects Poisson model, we observe that, overall, an additional cold day is associated with a reduced mental health score, while an additional cold night shows a positive relationship with mental health. However, delving into the seasonal intricacies of this relationship, the result shows that additional warm days are good for mental health in both winter and summer. In addition, warmer nights in the past 7 days during winter show a positive relationship with good mental health, while warmer nights for the same period during summer are detrimental to mental health. Our results also highlight the effect of temperature shocks on mental health components (such as depression, loneliness, etc.) and the contributions of factors such as age, exercise, and underlying health conditions to mental health outcomes. |
| Keywords: | climate change, mental health, wellbeing, weather shocks, temperature, South Africa |
| JEL: | I31 Q54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12083 |
| By: | Lavy, Victor (University of Warwick, Hebrew University, and NBER); Rachkovski, Genia (Tel Aviv University); Yoresh, Omry (London School of Economics) |
| Abstract: | Literature has shown that air pollution can have short- and long-term adverse effects on physiological and cognitive performance. In this study, we estimate the effect of increased pollution levels on the likelihood of accidents in construction sites, a significant factor related to productivity losses in the labor market. Using data from all construction sites and pollution monitoring stations in Israel, we find a strong and significant causal effect of nitrogen dioxide (NO2), one of the primary air pollutants, on construction site accidents. We find that a 10-ppb increase in NO2 levels increases the likelihood of an accident by as much as 25 percent. Importantly, our findings suggest that these effects are non-linear. While moderate pollution levels, according to EPA standards, compared to clean air levels, increase the likelihood of accidents by 138 percent, unhealthy levels increase it by 377 percent. We present a mechanism where the effect of pollution is exacerbated in conditions with high cognitive strain or reduced awareness. Finally, we perform a cost-benefit analysis, supported by a nonparametric estimation calculating the implied number of accidents due to NO2 exposure, and examining a potential welfare-improving policy to subsidize the closure of construction sites on highly polluted days. |
| Keywords: | Workplace Accidents, Labor Productivity, Air Pollution, Government Policy JEL Classification: |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:cge:wacage:770 |
| By: | David R. Heres (Universidad Iberoamericana Mexico City); Alejandro Lopez-Feldman (Universidad Iberoamericana Mexico City - Environment for Development Initiative, University of Gothenburg, School of Business, Economics and Law); Juan M. Torres-Rojo (Universidad Iberoamericana Mexico City) |
| Abstract: | The opportunity cost of forested land is one of the key elements that determines the success of any forest conservation strategy. In this paper, we explore how sensitive tropical forest conservation is to competing economic incentives in Mexico from 2002 to 2011, both within and outside protected areas. Our results show that forest revenues have a statistically significant positive effect on the conservation of most forest categories. This is a promising finding for the potential success of programs that provide economic compensation to landowners in exchange for conserving forests since the effect is also economically significant. Somehow reassuringly, economic revenues have a smaller effect on the lower levels of deforestation observed within the boundaries of protected areas. |
| JEL: | H23 Q15 Q23 |
| Date: | 2025–08–31 |
| URL: | https://d.repec.org/n?u=RePEc:smx:wpaper:2025001 |
| By: | Amina Harmach (ESCA Ecole de Management, Morocco); Azzeddine Allioui (ESCA Ecole de Management, Morocco) |
| Abstract: | This paper thoroughly examines the implementation and potential impact of the new investment charter in Morocco, focusing on its role in enhancing the country's investment climate. While it is premature to fully assess concrete outcomes, the charter shows promising prospects for boosting investments. It introduces attractive territorial incentives and strengthens legal certainty through improved land registration aimed at revitalizing high-potential investment zones. The study highlights challenges faced, such as the difficulty in gathering comprehensive quantitative data due to the novelty of the charter. Despite these obstacles, interviews conducted with investors have provided initial insights into perceptions and early observed effects. In conclusion, this research calls for further research to better understand how the charter can promote sustainable economic development in Morocco. It emphasizes the importance of ongoing evaluation to fine-tune policies and maximize benefits for the country's economy and investors. |
| Keywords: | New Investment Charter, Morocco, Investment Climate, Legal Certainty, Economic Development, Policy Evaluation |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0513 |
| By: | Bergman, Aaron (Resources for the Future); Rennert, Kevin (Resources for the Future) |
| Abstract: | For decades now, the heart of US federal policy support to reduce greenhouse gas (GHG) emissions has been a set of tax incentives for producing clean electricity and putting into service new clean electricity generators. These tax credits, along with state-level policies to require renewable and low-carbon electricity, are widely credited as the fundamental driver of emission reductions in the United States over the past decades. But they’ve always had some issues. They were inconsistent, being extended for short periods and at times expiring completely, leading to considerable investment uncertainty for developers. The credits themselves varied by technology and could be hard to monetize. And the rules were pretty inflexible: in order for a new technology to be eligible for the credit, it had to be named in the statute, requiring an act of Congress. The Inflation Reduction Act (IRA) sought to address many of these issues by transitioning in 2025 to a new set of technology-inclusive credits for electricity: the “clean energy production credit” (26 USC 45Y) and the “clean energy investment credit” (26 USC 48E). Instead of listing various technologies, in these new provisions, the IRA allowed technologies to qualify if they satisfy one seemingly simple condition: that their emissions are at most zero. Multiple model projections of the IRA (see here and here) have suggested that these tax credits are the single most important driver of IRA-attributable emissions reductions over the next decade, so much of the success of the IRA in reducing emissions hinges on their successful implementation by the US Department of the Treasury. Despite this significance and the looming deadline for the transition, however, there has been relatively little public discussion around their implementation, even as there are some potentially complicated issues for Treasury to work through. This situation stands in contrast to the robust conversation that’s been had over design of the 45V production tax credit for hydrogen, among others. In this issue brief, we give an overview of the tax credits and some potential challenges we see for their implementation in the hopes of stimulating timely discussion on issues Treasury will likely need to address in its forthcoming guidance. |
| Date: | 2024–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:rff:ibrief:ib-24-02 |
| By: | Soukayna Naji (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); Joaquin Ameller Pavez (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); Sophie Drogué (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); Paule Moustier (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) |
| Abstract: | As global urbanization accelerates, food security and the resilience of urban supply chains have become critical issues, particularly in West Africa, where the urban population is projected to reach 65.7% by 2050. This study, based on food flow data collected from 2013 to 2017 by Karg et al. (2023), analyzes the spatial organization of supply inflows in four West African cities: Bamenda, Bamako, Ouagadougou, and Tamale. A constraint-based model was developed to assess both the efficiency and resilience of supply chains in response to various shock scenarios, such as climate disruptions or fuel price increases. The results show that several factorsincluding product type, perishability, geographic origin, seasonal variations, and the specific characteristics of each city-shape the organization of food supplies. These dynamics play a central role in the cities' capacity to maintain stable supplies and adapt to crises, thereby enhancing the resilience of urban food systems. The model calibration will further enable a detailed interpretation of future results through the lens of supply dynamics and resilience. |
| Keywords: | Supply Chains, Resilience, Constraint-Based Model, Supply Flows (inflows), Spatial Organization, West Africa, Food Security, Urbanization |
| Date: | 2024–12–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05216035 |
| By: | Pyddoke, Roger (Swedish National Road and Transport Research Institute (VTI)); From, Emma (Swedish National Road and Transport Research Institute (VTI)); Fukushima, Nanna (Swedish National Road and Transport Research Institute (VTI)) |
| Abstract: | This paper aims to describe the distribution of private car ownership, car use, and fuel consumption in Sweden, and to assess how increased fuel prices resulting from climate policy impact the distribution of fuel expenditure and disposable income. We also estimate the potential need for compensating low-income car owners in rural areas in the event of higher climate taxes on fuels. The analysis is based on detailed administrative data for all adults in Sweden in 2022, including information on private car ownership and car use. The main finding is that individual fuel consumption was highly skewed: approximately 15 percent of car owners account for 50 percent of all fuel consumed by privately owned cars, while the remaining 85 percent account for the other half. Most of these high consumers are found among high-income earners, many of whom reside in rural rather than urban areas. Most high-income earners, however, tend to spend a modest share of their disposable income on fuel, with a median of about 4 percent and a 75th percentile of about 7 percent. Similar expenditure shares are found in most low-income earners, with the striking exception of the lowest income octile. A yearly compensation is calculated as the difference in median fuel costs for owners of fossil-fueled cars residing in rural areas with disposable incomes below the median and the corresponding car owners in large cities. In 2022, the estimated compensation for a tax increase equivalent to EUR 0, 5 per liter of fuel ranged from 0 to EUR 80 per year. |
| Keywords: | Climate policy; fuel tax; car ownership; fuel consumption; income distribution; spatial distribution; compensation |
| JEL: | D31 H23 Q52 R12 R48 |
| Date: | 2025–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:vtiwps:2025_004 |
| By: | Arango-Castillo Lenin; Mart\'inez-Ram\'irez Francisco |
| Abstract: | This paper measures the effects of temperature and precipitation shocks on Mexican inflation using a regional panel. To measure the long-term inflationary effects of climate shocks, we estimate a panel autoregressive distributed lag model (panel ARDL) of the quarterly variation of the price index against the population-weighted temperature and precipitation deviations from their historical norm, computed using the 30-year moving average. In addition, we measure the short-term effects of climate shocks by estimating impulse response functions using panel local projections. The result indicates that, in the short term, the climate variables have no statistical effect on Mexican inflation. However, in the long term, only precipitation norms have a statistical effect, and the temperature norms have no statistical impact. Higher than normal precipitation has a positive and statistically significant effect on Mexican inflation for all items. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2507.14420 |
| By: | Saki Bigio; Diego R. Känzig; Pablo Sánchez; Conor Walsh |
| Abstract: | Despite broad acceptance among economists, carbon taxes face persistent public resistance. We measure the sources and distribution of welfare losses from unexpected European carbon price changes by estimating their impact on consumer prices, labor income, financial wealth, and government transfers. A 1% carbon-policy-induced increase in energy prices yields an average welfare loss of about 1.5% of a year’s consumption, primarily driven by indirect labor-income effects. Younger, poorer, and less educated households, especially in Southern and Eastern Europe, bear a disproportionate burden. These findings suggest public opposition to carbon taxes stems from legitimate distributional concerns. |
| JEL: | D31 H23 Q58 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34125 |
| By: | Agrawal, Sonakshi; Liu, Lisa Yao; Rajgopal, Shivaram; Sridharan, Suhas A.; Yan, Yifan; Yohn, Teri Lombardi |
| Abstract: | We explore the role of ESG raters' business models in the production of their ratings, noting that increasingly ESG raters not only produce ESG ratings but also construct and sell index products based on their ESG ratings. We examine whether deriving revenue from ESG rating-based indices is associated with inflated ESG ratings for firms with higher stock returns. Consistent with this notion, we find that raters with strong index licensing incentives issue higher ESG ratings for firms with better stock return performance and those added to their ESG indices, compared to raters with weaker licensing incentives. By comparing ESG ratings for a firm across raters with high versus low index licensing incentives, we control for the firm's fundamental ESG performance. We find that the results hold after accounting for different rating methodologies. Overall, our findings suggest that ESG ratings are associated with index construction incentives, highlighting the need for greater transparency in the incentives of producers of ESG ratings. |
| Keywords: | ESG, index providers, rating agencies, sustainability, disclosure |
| JEL: | G24 M14 M40 M41 M48 Q56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cbscwp:324653 |
| By: | Océane Salignon (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - Cnam - Conservatoire National des Arts et Métiers [Cnam]); Emmanuel Caillaud (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - Cnam - Conservatoire National des Arts et Métiers [Cnam]); Oliver Fouché-Grobla (iEES Paris - Institut d'écologie et des sciences de l'environnement de Paris - IRD - Institut de Recherche pour le Développement - SU - Sorbonne Université - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Cnam - Conservatoire National des Arts et Métiers [Cnam]) |
| Abstract: | La qualité et les quantités d'eau disponibles dans les écosystèmes sont des indicateurs mesurés et suivis en France dans le cadre des Commissions Locales de l'Eau (CLE) depuis la loi sur l'eau de 1992. Les autres limites planétaires sont également en relation avec ces indicateurs, ce qui demande de réduire les pressions anthropiques sur ces limites de façon concertée. Certaines des activités humaines responsables de ces dépassements sont invitées à coopérer dans les CLE afin de stopper ou réduire ces problématiques. Crozier et Friedberg définissent le concept de capacités, qui sont l'habilité des acteurs à agir grâce aux instruments qui forgent leurs activités (ici, les CLE). Par une revue de littérature et par une transcription des luttes écologiques ayant lieu dans les CLE dans la théorie des capacités, je définis les capacités écologiques d'organisations ayant pour objectif de régénérer les écosystèmes. Je réalise des entretiens dirigés avec les acteurs de différentes CLE pour les évaluer. Je propose ensuite des ateliers sur les interdépendances (territoriales par le concept de nexus et internationales par le concept de systèmes sociotechniques) afin d'identifier les capacités supplémentaires nécessaires pour réaliser des changements sociétaux durables. Cette recherche n'a pas de résultats préliminaires (les entretiens dirigés sont en cours) |
| Keywords: | Local Water Council, Strong sustainability, Capacity Analysis, Soutenabilité forte, Capacités, Commissions locales de l'eau |
| Date: | 2025–08–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05228514 |
| By: | Carmen González‐velasco (Universidad de León [León]); Isabel Feito‐ruiz (Universidad de León [León]); Marcos González‐fernández (Universidad de León [León]); Pilar Sierra‐fernández (Universidad de León [León]); Yolanda Fernández‐santos (Universidad de León [León]); Rubén Arrondo‐garcía (Universidad de Oviedo = University of Oviedo); Sigrid Vandemaele (UHasselt - Hasselt University); Souad Lajili Jarjir (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine); Anneleen Michiels (UHasselt - Hasselt University) |
| Abstract: | Many initiatives worldwide aim to improve financial knowledge through training programmes at different levels of education. In this context, it is worth highlighting that sustainable finance knowledge should receive attention in line with the global challenges (climate change, social and economic inequalities, etc.) society is facing. Implementing (short) training programmes in educational curricula may be an effective way to improve students' knowledge and practical skills. The aim of this paper is to analyse the efficacy of short sustainable finance training programmes in fostering sustainable financial awareness and attitudes among university students. This research focuses on how these programmes influence participants' understanding of sustainability, interest in financial matters, and decision-making competencies. Our results, based on validated questionnaires carried out by students from different universities, reveal that short training programmes positively influence knowledge of and interest in sustainable financial matters. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made. |
| Keywords: | students, sustainable finance, training programmes, financial literacy, Financial education |
| Date: | 2025–07–22 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05226683 |
| By: | Ramona Duminica (The National University of Science and Technology POLITEHNICA Bucharest,) |
| Abstract: | The right to a healthy environment is part of the third generation of human rights, consisting of the so-called “solidarity rights.†Although it is not expressly regulated in the European Convention on Human Rights or in the additional protocols, this right is nevertheless characterized by a remarkable evolution in terms of recognition and protection through case law. However, the lack of a legal text has been, and continues to be, a challenge for the European judge. Starting from these aspects, this paper examines how the European Court of Human Rights (ECHR) has developed its case law to address this legislative gap. To achieve this objective, the paper first highlights the landmark judgments given by the Court in this matter. It then explores jurisprudential trends—especially in light of the Court’s decision in Verein KlimaSeniorinnen Schweiz and Others v. Switzerland. Finally, the paper advocates strengthening the protection of the right to a healthy environment by intensifying cooperation between the European human rights system and international environmental law. |
| Keywords: | Right to a Healthy Environment, European Court of Human Rights, Case Law, International Environmental Law |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0535 |
| By: | Megan Yeo; Sebastian Nosenzo; Daniel S. Palmer; Alexei K. Varah; Lucas Woodley; Ashley Nunes |
| Abstract: | Premium air travel is often associated with a disproportionately large carbon emissions footprint. This association reflects the increased space and amenities typically found in premium cabins that existing discourse suggests makes their carriage more fuel, and consequently carbon, intensive. One increasingly popular solution is disincentivizing the use of premium cabins in favor of all-economy cabins. How effective might such a policy be. To what extent. And how may the revenue impact affect travelers. We address these questions by leveraging an empirical model that integrates cabin configuration data, fuel burn profiles across various aircraft types, and multi-month airfare datasets. Our findings are threefold. First, we find that favoring entirely foregoing premium travel classes can reduce per-passenger emissions by between 8.1 and 21.5 percent, the precise figure varying based on the type of aircraft and aircraft stage length involved. Second, we observe that these emissions reductions are far less assured on a per-flight and a lifespan basis. Here, an all-economy configuration can reduce emissions by 0.45 percent or increase emissions by as much as 1.43 percent. Third, we enumerate pronounced revenue consequences associated with an all-economy configuration. This configuration produces aggregate revenue declines of between 4.92 and 23.1 percent, necessitating airfare increases of between 6 and 30 percent to maintain baseline revenue. This increase risks imposing a profound and regressive economic burden on working-class travelers who exhibit markedly higher price elasticities of demand compared to their wealthier counterparts and highlights the cross-subsidization airlines leverage to ensure the accessibility of air travel. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2508.12507 |
| By: | Labrousse, Charles; Perdereau, Yann |
| Abstract: | The distributive effects of carbon taxation are critical for its political acceptability and depend on both income and geographic factors. Using French administrative data, household surveys, and matched employer-employee records, we document that rural households spend 2.8 times more on fossil fuels than urban households and are employed in firms that emit 2.7 times more greenhouse gases. We incorporate these insights into a spatial heterogeneous-agent model with endogenous migration and wealth accumulation, linking spatial and macroeconomic approaches. After an increase in carbon taxes, we quantify that rural households face 20% higher welfare losses than urban households. In an optimal revenue-recycling exercise, we compare transfers targeting income and geography, and show that neglecting for geography reduces welfare gains by 7%. We conclude that carbon policies should account for spatial differences to improve political feasibility. JEL Classification: C61, E62, H23, Q43, Q58, R13 |
| Keywords: | carbon tax, inequalities, migration, revenue recycling, spatial and macroeconomic models |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253104 |
| By: | Phoebe Koundouri; Ebun Akinsete (ICRE8); Angelos Alamanos; Roy Brouwer; Sofia Frantzi; Conrad Landis; Lydia Papadaki; Hezal Sari; Theofanis Zacharatos |
| Date: | 2025–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2552 |
| By: | Gomez Yannick (ISEC - Institut des Sciences et technologies pour une Economie Circulaire des énergies bas carbone - CEA - Commissariat à l'énergie atomique et aux énergies alternatives); Gérald Naro (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, UM - Université de Montpellier) |
| Abstract: | Disclosure of the business model is a key issue in a company's relationship with its stakeholders. The European CSRD directive, applicable since 1 January 2024, strengthens the regulatory framework for this disclosure with two general standards, four environmental standards, three social standards and two governance standards. However, a simple point-by-point response to these eleven standards risks leading to a disparate list, with no overall consistency between the economic, environmental, social and governance dimensions. In this article, we will show how the use of a three-layer strategic framework enables a coherent response to the CSRD requirements. After presenting our approach in theory, we will apply it to the French company DECATHLON. |
| Abstract: | La divulgation du business model est un enjeu clé de la relation de l'entreprise avec ses parties prenantes. La directive européenne CSRD, applicable depuis le 1 er janvier 2024, renforce le cadre réglementaire de cette divulgation avec deux normes générales, quatre normes environnementales, trois normes sociales et deux normes de gouvernance. Mais une simple réponse, point par point, à ces onze normes risque de conduire à une énumération hétéroclite, sans cohérence d'ensemble entre les dimensions économiques, environnementales, sociales et de gouvernance. Dans cet article, nous montrerons comment l'utilisation d'un canevas stratégique en triple couche permet une réponse cohérente aux exigences de la CSRD. Après avoir exposé notre approche de manière théorique, nous proposerons de l'appliquer à l'entreprise française DECATHLON. |
| Keywords: | Strategic Framework, Disclosure, Divulgation Business Model, CSRD, TLBMC, Canevas Stratégique, Business Model, Business Model Canevas Stratégique TLBMC CSRD Divulgation Business Model Strategic Framework TLBMC CSRD Disclosure |
| Date: | 2025–06–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05200071 |
| By: | USDA Economic Research Service; Farm Foundation |
| Abstract: | The symposium aimed to convene and develop a network of researchers and stakeholders to engage in a productive discussion focused on farm labor issues. A primary goal of the symposium was to strengthen and enhance ongoing farm labor research, focusing on four key themes: 1. Trends in the farm labor force—including presentations on worker migration and the H-2A Temporary Agricultural Program ---- 2. Labor costs—including presentations on the effects of H-2A AEWR and overtime laws on farmworkers ---- 3. Farm worker conditions—including presentations on a) workplace safety; b) effects of climate change on worker health; c) workplace harassment ---- 4. Workforce development—trends in training current farmworkers and a new generation to develop, operate, and repair new technologies in the field and lead packing operations. |
| Keywords: | Agricultural and Food Policy, Climate Change, Crop Production/Industries, Dairy Farming, Health Economics and Policy, International Relations/Trade, Labor and Human Capital, Livestock Production/Industries, Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ags:uersmp:369001 |
| By: | Farid Farrokhi; Elliot Kang; Heitor S. Pellegrina; Sebastian Sotelo |
| Abstract: | We study deforestation in a dynamic world trade system. We first document that between 1990-2020: (i) global forest area has decreased by 7.1 percent, with large heterogeneity across countries, (ii) deforestation is associated with expansions of agricultural land use, (iii) deforestation is larger in countries with a comparative advantage in agriculture, and (iv) population growth causes deforestation. Motivated by these facts, we build a model in which structural change and comparative advantage determine the extent, location, and timing of deforestation. Using the model, we obtain conditions under which reductions in trade costs and tariffs reduce global deforestation. Quantitatively, eliminating global agricultural tariffs has limited impacts on global forest area, leads to substantial forest reallocation across countries, and results in net welfare benefits. |
| Keywords: | international trade, deforestation, dynamics, land use, trade policy |
| JEL: | F1 F18 Q5 N5 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12077 |
| By: | Matthias Derez; Alexander Hoogsteyn; Erik Delarue |
| Abstract: | Integrating external heat into electrolysers can reduce the electrical power demand for carbon-neutral hydrogen production. Efficient operation requires detailed models that incorporate heat availability and its effect on startup costs. This paper advances existing operational models by endogenously modelling startup costs and direct heat integration, based on a piecewise linear approximation of the electrochemical equations. We analyse the impact of low- and high-temperature heat integration on the efficiency and profitability of hydrogen production for solid oxide and proton exchange membrane electrolysis technologies. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2507.06796 |
| By: | Farid Farrokhi; Elliot Kang; Heitor S. Pellegrina; Sebastian Sotelo |
| Abstract: | We study deforestation in a dynamic world trade system. We first document that between 1990-2020: (i) global forest area has decreased by 7.1 percent, with large heterogeneity across countries, (ii) deforestation is associated with expansions of agricultural land use, (iii) deforestation is larger in countries with a comparative advantage in agriculture, and (iv) population growth causes deforestation. Motivated by these facts, we build a model in which structural change and comparative advantage determine the extent, location, and timing of deforestation. Using the model, we obtain conditions under which reductions in trade costs and tariffs reduce global deforestation. Quantitatively, eliminating global agricultural tariffs has limited impacts on global forest area, leads to substantial forest reallocation across countries, and results in net welfare benefits |
| JEL: | F0 F18 N5 Q5 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34150 |
| By: | Hendrik Rommeswinkel |
| Abstract: | Decision makers may face situations in which they cannot observe the consequences that result from their actions. In such decisions, motivations other than the expected utility of consequences may play a role. The present paper axiomatically characterizes a decision model in which the decision maker cares about whether it can be ex post verified that a good consequence has been achieved. Preferences over acts uniquely characterize a set of events that the decision maker expects to be able to verify in case they occur. The decision maker chooses the act that maximizes the expected utility across verifiable events of the worst possible consequence that may have occurred. For example, a firm choosing between different carbon emission reduction technologies may find some technologies to leave ex post more uncertainty about the level of emission reduction than other technologies. The firm may care about proving to its stakeholders that a certain amount of carbon reduction has been achieved and may employ privately obtained evidence to do so. It may choose in expectation less efficient technologies if the achieved carbon reduction is better verifiable using the expected future evidence. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2508.19585 |
| By: | M.T. Musakwa (University of South Africa); N.M. Odhiambo (University of South Africa) |
| Abstract: | The causal relationship between urbanisation, energy consumption, and economic growth was examined for South Africa using annual data from 1990 -2021. The growing need for economies to bounce back after the COVID-19 pandemic and catch up with national economic plans and the Sustainable Development Goals (SDGs) motivated a relook at the important factors that influence economic growth. This study used two measures of energy consumption, namely electricity consumption and total energy consumption. Employing autoregressive distributed lag (ARDL) to cointegration and error correction model (ECM)- based Granger-causality test, the study found unidirectional causal flow from energy consumption to urbanisation in the short run regardless of the energy consumption measure used, and the same causal flow in the long run when total energy consumption was used. The study found a unidirectional causality from urbanisation to economic growth. A bidirectional causality between economic growth and electricity, while no causality was confirmed when total energy consumption was used. The findings from this study confirm the importance of energy consumption and urbanisation in driving economic growth. Policy recommendations are discussed. |
| Date: | 2024–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:afa:wpaper:wp022024 |
| By: | Kai Gehring; Matteo Grigoletto |
| Abstract: | Understanding behavioral aspects of collective decision-making remains a core challenge in economics. Political narratives can be seen as a key communication technology that shapes and affects human decisions beyond pure information transmission. The effectiveness of narratives can be driven as much by their virality as by their specific persuasion power. To analyze political narratives empirically, we introduce the political narrative framework and a pipeline for its measurement using large language models (LLMs). The core idea is that the essence of a narrative can be captured by its characters, which take on one of three archetypal roles: hero, villain, and victim. To study what makes narratives go viral we focus on the topic of climate change policy and analyze data from the social media platform Twitter over the 2010–2021 period, using retweets as a natural measure of virality. We find that political narratives are consistently more viral than neutral messages, irrespective of time or author characteristics and other text features. Different role depictions differ in terms of emotional language, but political narratives capture more than merely valence or emotions. Hero roles and human characters increase virality, but the biggest virality boost stems from using villain roles and from combining other roles with villain characters. We then examine the persuasiveness of political narratives using a set of online experiments. The results show that narrative exposure influences beliefs and revealed preferences about a character, but a single exposure is not sufficient to move support for specific policies. Political narratives lead to consistently higher memory of the narrative characters, while memory of objective facts is not improved. |
| Keywords: | narrative economics, climate change policy, social media, virality, political economy, media economics, text-as-data, large language models |
| JEL: | C80 D72 L82 H10 P16 Q54 Z1 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12064 |
| By: | Dominique Torre (Université Côte d'Azur - GREDEG - CNRS) |
| Abstract: | Comment identifier e tourisme dans le champ des consommations ? En quoi cette forme de loisir s'insère plus que d'autres dans l'économie marchande ? Que recouvre exactement l'« industrie du tourisme » ? Est-ce un tout homogène ou en réalité un ensemble de segments aux spécificités économiques affirmées ? Comment l'activité touristique fait face au défi de la numérisation ? Qu'en résulte-t-il dans chacun des segments de l'activité touristique ? Dans quelle mesure le tourisme s'avère-t-il néfaste à la planète et à la conservation de notre patrimoine ? Quelles actions peut-on entreprendre ou intensifier pour contenir ces effets ? Voici les thèmes abordés très synthétiquement dans ce texte. |
| Keywords: | loisir et tourisme, industrie du tourisme, tourisme et digitalisation, tourisme soutenable. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:halshs-05208310 |
| By: | Alexandre Goujon (LAMIH - Laboratoire d'Automatique, de Mécanique et d'Informatique industrielles et Humaines - UMR 8201 - CNRS - Centre National de la Recherche Scientifique - UPHF - Université Polytechnique Hauts-de-France - INSA Hauts-De-France - INSA Institut National des Sciences Appliquées Hauts-de-France - INSA - Institut National des Sciences Appliquées); Frederic Rosin (LISPEN - Laboratoire d’Ingénierie des Systèmes Physiques et Numériques - Arts et Métiers Sciences et Technologies); Florian Magnani (MAGELLAN - Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon); Samir Lamouri (LAMIH - Laboratoire d'Automatique, de Mécanique et d'Informatique industrielles et Humaines - UMR 8201 - CNRS - Centre National de la Recherche Scientifique - UPHF - Université Polytechnique Hauts-de-France - INSA Hauts-De-France - INSA Institut National des Sciences Appliquées Hauts-de-France - INSA - Institut National des Sciences Appliquées); Robert Pellerin (CIRRELT - Centre Interuniversitaire de Recherche sur les Réseaux d'Entreprise, la Logistique et le Transport - EPM - École Polytechnique de Montréal - UdeM - Université de Montréal - HEC Montréal - HEC Montréal) |
| Abstract: | This article explores the impact of new technologies on employee engagement in the context of Industry 5.0. Although Industry 4.0 (I4.0) was introduced in 2011, most companies are still in the early stages of the transition. Industry 5.0 (I5.0) aims to further integrate social and environmental priorities, promoting harmonious collaboration between humans and machines. Autonomy, a crucial pillar of I5.0, is closely linked to employee engagement. A systematic review of the literature on I4.0 and I5.0 identified 12 relevant articles. These studies highlight the importance of engagement in the adoption of new technologies, although methodologies and definitions of engagement vary considerably. The most studied technologies are artificial intelligence, simulation, and cobotics. The majority of studies suggest that these technologies enhance engagement, but some also highlight risks of degradation. A global engagement model, such as Octalysis, is proposed to better understand the levers of engagement. The results emphasize the need for standardized methodologies and a common definition of engagement for more robust future research. |
| Abstract: | Cet article explore l'impact des nouvelles technologies sur l'engagement des employés dans le cadre de l'Industrie 5.0. Bien que l'Industrie 4.0 (I4.0) ait été introduite en 2011, la plupart des entreprises en sont encore aux premiers stades de la transition. L'Industrie 5.0 (I5.0) vise à intégrer davantage les priorités sociales et environnementales, en favorisant une collaboration harmonieuse entre humains et machines. L'autonomie, un pilier crucial de l'I5.0, est étroitement liée à l'engagement des employés. La revue systématique des travaux sur l'I4.0 et l'I5.0 a permis d'identifier 12 articles pertinents. Ces études mettent en évidence l'importance de l'engagement dans l'adoption des nouvelles technologies, bien que les méthodologies et les définitions de l'engagement varient considérablement. Les technologies d'intelligence artificielle, de simulation et de cobotique sont les plus étudiées. La majorité des études suggèrent que ces technologies renforcent l'engagement, mais certaines soulignent également des risques de dégradation. Un modèle d'engagement global, comme Octalysis, est proposé pour mieux comprendre les leviers de l'engagement. Les résultats soulignent la nécessité de méthodologies standardisées et d'une définition commune de l'engagement pour des recherches futures plus robustes. |
| Keywords: | Motivation, Engagement, industry 4.0, industry 5.0, engagement, industrie 4.0, industrie 5.0 |
| Date: | 2025–07–08 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05222853 |
| By: | Christian Doh Dinga; Sander van Rijn; Laurens de Vries; Milos Cvetkovic |
| Abstract: | Coordinating the interactions between flexibility assets in multi-carrier integrated energy systems (MIES) can lead to an efficient integration of variable renewable energy resources, and a cost-efficient energy transition. However, the proliferation of flexibility assets and their participation in active demand response increases the complexity of coordinating these interactions. This paper introduces different approaches to model the coordination of flexibility scheduling in MIES. We propose a market auction-inspired model coupling approach to address the challenges of preserving the autonomy and privacy of flexibility providers, and the issue of scalability. We benchmark our approach against co-optimization and an iterative price-response method by conducting experiments with varying problem sizes and computing infrastructure. We show that our approach scales well and is suitable for modeling flexibility in large-scale energy systems in a more realistic way. From an optimality standpoint, the flexibility dispatch schedules and electricity prices are ``near-optimal". Our methodology is implemented as a new open-source software, which offers several practical applications. For example, flexibility providers and network operators can couple their models to simulate the interaction between their systems without disclosing confidential information; policy regulators can use it to investigate new market design and regulations to optimize the utilization of flexibility in MIES. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.03126 |
| By: | Mujica, Guillermina; Viteri, María Laura; Molpeceres, María Celeste; Bruno, Mariana Paola |
| Abstract: | El sector agrícola global consume cerca del 70% del agua dulce disponible. Este alto consumo está vinculado a la consolidación del riego artificial como una estrategia clave para aumentar los rendimientos productivos. Este fenómeno global se registra también en lo local. En el partido de Balcarce (Buenos Aires), objeto de estudio de este trabajo, la producción de papa, y en menor medida, de maíz para semilla representan la principal superficie bajo riego. Este proceso plantea desafíos en términos de sustentabilidad ambiental, como la sodificación y la pérdida de estructura del suelo (Texeira y Pannunzio, 2020), así como también desde las esferas social y económica por el uso de un bien común, como es el agua subterránea. Esta investigación exploratoria entiende al sistema de riego en Balcarce como un ensamblaje de interacciones entre actores humanos (productores, funcionarios, académicos, vendedores de equipos de riego, etc.) y no humanos (agua, suelo, equipos de riego), en el marco de un escenario de cambio climático. Focalizar de manera crítica en esas interacciones, atendiendo a sus prácticas discursivas, productivas y tecnológicas permite dar luz a la complejidad de vínculos a la hora de buscar soluciones para un uso eficiente del recurso agua en un contexto de conflictos de intereses. El presente constituye un avance del trabajo de tesis de la primera autora en el contexto una investigación mayor, de la tesis de Maestría en Agroeconomía de la Universidad Nacional de Mar del Plata (UNMDP). Está estructurado de la siguiente manera: introducción; marco teórico y aspectos metodológicos; caracterización de la zona geográfica seleccionada; resultados y conclusiones. |
| Keywords: | Aguas Subterraneas; Riego; Prácticas; Partido de Balcarce; |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4381 |
| By: | Xiangpeng Li; Junwei Ma; Bo Li; Ali Mostafavi |
| Abstract: | The multifaceted nature of disaster impact shows that densely populated areas contribute more to aggregate burden, while sparsely populated but heavily affected regions suffer disproportionately at the individual level. This study introduces a framework for quantifying the societal impacts of power outages by translating customer weighted outage exposure into deprivation measures, integrating welfare metrics with three recovery indicators, average outage days per customer, restoration duration, and relative restoration rate, computed from sequential EAGLE I observations and linked to Zip Code Tabulation Area demographics. Applied to four United States hurricanes, Beryl 2024 Texas, Helene 2024 Florida, Milton 2024 Florida, and Ida 2021 Louisiana, this standardized pipeline provides the first cross event, fine scale evaluation of outage impacts and their drivers. Results demonstrate regressive patterns with greater burdens in lower income areas, mechanistic analysis shows deprivation increases with longer restoration durations and decreases with faster restoration rates, explainable modeling identifies restoration duration as the dominant driver, and clustering reveals distinct recovery typologies not captured by conventional reliability metrics. This framework delivers a transferable method for assessing outage impacts and equity, comparative cross event evidence linking restoration dynamics to social outcomes, and actionable spatial analyses that support equity informed restoration planning and resilience investment. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.02653 |
| By: | Filippo Marchesani |
| Abstract: | This chapter explores the six core dimensions of smart cities (i.e. smart economy, mobility, environment, people, living, and governance) emphasizing their interdependence and the need for holistic orchestration. Building on Giffinger et al. (2007) and subsequent literature, it argues that integrating these dimensions is crucial for sustainable urban development. ICT plays a key enabling role but must be complemented by human and social capital. Through institutional examples, such as the creation of dedicated municipal offices for digital innovation, the chapter illustrates how governance and internal capacity shape smart transitions. A human-centric approach is also essential, ensuring inclusivity, creativity, and active civic participation. Ultimately, smart cities must be viewed as cohesive urban ecosystems where technology, people, and governance interact dynamically. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2507.12267 |
| By: | Araneda, Elisa; Ruelas, Ignacio; Gálvez, Tomás |
| Abstract: | This document analyses the contributions made in the region by integrated national financing frameworks (INFFs). It highlights their potential to make it easier to finance the SDGs and other national priorities, expediting resource mobilization and the alignment of public policies. Examples in the region include Colombia, where budget tagging was implemented and tools were created to engage the private sector; Costa Rica, where support was provided to develop a framework for issuing sovereign sustainable bonds; and the Dominican Republic, where efforts have been made to identify financial gaps and design innovative tools for implementing its national development strategy. The document also highlights the potential of INFFs in subnational governments, which play a crucial role in providing public services and could benefit from innovative financing alternatives and public-private partnerships. Lastly, it addresses the main labour market issues in the region and how INFFs could contribute to decent employment, tackling challenges such as labour informality, gender gaps and youth unemployment. |
| Date: | 2025–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:82290 |
| By: | Schling, Maja; Saenz Somarriba, Magaly; De Salvo, Carmine Paolo; Chang Huaita, Rodrigo Ysaac |
| Abstract: | El presente trabajo evalúa el impacto a largo plazo de la rehabilitación de los canales de riego en el marco del programa PROSAP III de Argentina sobre la productividad de los viñedos en la provincia de San Juan. Combinamos 20 años de datos NDVI obtenidos de Landsat con datos de encuestas realizadas a 299 viticultores y aplicamos el modelo de diferencias en diferencias sintéticas (SDID) para estimar los efectos causales. Otros chequeos de robustez son el emparejamiento por puntaje de propensión (propensity score matching o PSM) y la ponderación de probabilidad inversa (inverse probability weighting o IPW). Los resultados indican que la rehabilitación de canales incrementó el NDVI entre un 0, 9% y un 1%, lo que equivale a un aumento del rendimiento de aproximadamente 144 kg por hectárea, con un impacto máximo del 2, 5% (386 kg por hectárea) cinco años después de la intervención. El estudio pone de manifiesto los beneficios en la productividad de las inversiones en sistemas de riego y demuestra el valor de la teledetección en las evaluaciones de impacto agrícola a gran escala. Los resultados ofrecen información relevante para las políticas de diseño y monitoreo de los programas de infraestructura rural en regiones con escasez de agua. |
| Keywords: | riego;productividad;Teledetección;evaluación de impacto;Argentina |
| JEL: | O13 O22 Q12 Q15 Q18 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14246 |