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on Environmental Economics |
| By: | Harstad, Bård; Holtsmark, Katinka |
| Abstract: | We analyze a fundamental dilemma and time-inconsistency problem facing a climate coalition producing natural gas. In the short term, it is tempting to export more to outcompete coal. When this policy is anticipated, however, investments in renewables fall and emissions ultimately increase. When the coalition cannot pre-commit, its policies will be counterproductive. We discuss the robustness of this result and possible solutions. If the coalition can invest directly in renewables, for instance, the incentive to maintain a high price on exports can mitigate the temptation to reduce the price to outcompete coal. Under certain conditions, the commitment outcome can be implemented. |
| Keywords: | Climate change; Carbon leakage; Green transition; Supply-side environmental policy; Renewable energy; Time inconsistency |
| JEL: | F18 Q55 H23 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20036 |
| By: | Aghion, Philippe; Boppart, Timo; Peters, Michael; Schwartzman, Matthew; Zilibotti, Fabrizio |
| Abstract: | We develop and quantify a growth theory where consumers' preferences are defined over products with varying environmental impacts. Preferences are non-homothetic: Necessities are intensive in material inputs whose production leads to high emissions, while luxury goods, being more reliant on services, exhibit a comparatively lower environmental footprint. Directed innovation is the focal point of the study: it can be aimed at either enhancing the productivity of material production or refining the quality of luxury goods. Over time, innovation increasingly prioritizes quality improvement, consequently reducing the environmental impact of economic growth. The pace of structural transformation and the composition of GDP are both endogenous and susceptible to policy interventions. The shift towards quality-oriented growth may result in a decline in (mis)measured GDP growth without a decrease in welfare. Extending the model to a two-country trade scenario reveals that trade barriers could have a detrimental effect on environmental sustainability. |
| Keywords: | Climate change; degrowth; Structural change; Weightless economy; Development |
| JEL: | O14 O41 O44 Q54 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20007 |
| By: | Adler, Konrad; Rehbein, Oliver; Reiner, Matthias; Zeng, Jing |
| Abstract: | This paper proposes a simple but effective tool to measure firms' exposure to climate risk: the market. We first develop a model showing that abnormal stock returns around significant climate policy events measure a firm's exposure to climate risk. On this basis, we create market-based firm greenness measures for around 36, 000 international firms based on abnormal returns around UN climate conferences. The resulting measure creates intuitive rankings of sector-level climate-risk exposure and is correlated with, but distinct from existing measures. At the firm level, market-based greenness is associated with lower present and future carbon emissions. Green firms are more likely to file green patents, have lower stock-price volatility, and tend to be financially more robust. At the country level, market-based greenness is associated with lower emission intensity and a larger share of renewable energy. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20086 |
| By: | Hambel, Christoph; van der Ploeg, Frederick |
| Abstract: | We analyze the effects of policy transition risk on asset pricing and the green transition using a global two-sector, macro-finance model of climate and the economy. Policy transition risk results from probabilistic changes between three policy states: no, modest, and ambitious carbon pricing. We show that policy transition risk leads to carbon premiums (i.e. higher expected returns on brown than on green assets), especially if the economy is still quite carbon-intensive and close to the temperature cap, and thus accelerate the green transition. Increased transition risk leads to more precautionary saving and falls in the risk-free rate. We offer extensions to deal with physical risks (temperature-related risk of climate disasters and climate tipping), technology transition risk, and more realistic policy tipping with endogenous transition probabilities. |
| JEL: | D81 G01 G12 Q5 Q54 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20005 |
| By: | Schmutzler, Armin |
| Abstract: | By affecting prices and thereby market shares of green and brown firms, product innovations and process innovations influence industry emissions even when they do not directly affect the emission intensity of the innovating firm. Using a differentiated two-stage duopoly, this paper therefore analyzes the effects of environmental policy on such innovations, and it asks how these effects differ from each other and from those of environmental innovations that directly reduce the emission intensity. The paper investigates the determinants of R&D investments, showing in particular that incentives for certain types of potentially beneficial innovations may be negative. Moreover, it analyzes how suitable policies can foster green innovation. |
| Keywords: | Innovation; Environmental policy; Imperfect competition |
| JEL: | Q55 L13 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20170 |
| By: | Acharya, Viral; Giglio, Stefano; Pastore, Stefano; Ströbel, Johannes; Tan, Zhenhao; Yong, Tiffany |
| Abstract: | We build a general equilibrium model to study how climate transition risks affect energy prices and the valuations of different firms in the energy sector. We consider two types of fossil fuel firms: incumbents that have developed oil reserves they can extract today or tomorrow, and new entrants that must invest in exploration and drilling today to have reserves to potentially extract tomorrow. There are also renewable energy firms that produce emission-free energy but cannot currently serve non-electrifiable sectors of the economy. We analyze three sources of climate transition risk: (i) changes in the probability of a technological breakthrough that allows renewable energy firms to serve all economic sectors; (ii) changes in expected future taxes on carbon emissions; and (iii) restrictions on today’s development of additional fossil fuel production capacity. We show that the different transition risk—and, importantly, uncertainty about their realizations—have distinct effects on firms’ decisions, on their valuations, and on equilibrium energy prices. We provide empirical support for the heterogeneous effects of different transition risks on energy prices and stock returns of firms in different energy sub-sectors. |
| Keywords: | Climate change |
| JEL: | E31 Q35 Q38 Q43 Q54 Q58 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20039 |
| By: | Acharya, Viral; Engle, Robert; Wang, Olivier |
| Abstract: | We study how government policies and corporate commitments to decarbonize interact under two externalities: environmental damages and green innovation spillovers. Unconstrained carbon taxes and innovation subsidies could achieve first-best outcomes, but when government policies face constraints, commitments by large firms and institutional investors can serve as profit-driven coordination devices that spur green innovation and technology adoption, and thereby reduce overall transition costs. Firm commitments also enhance government policy credibility by lowering the need for high future carbon taxes. Our empirical evidence confirms that firm size and green common ownership drive Net Zero commitments and decarbonization investments. |
| Keywords: | Emissions; Abatement; Renewables |
| JEL: | Q5 H2 G3 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20040 |
| By: | Balboni, Clare; Shapiro, Joseph S. |
| Abstract: | How do environmental goods and policies shape spatial patterns of economic activity? How will climate change modify these impacts over the coming decades? How do agglomeration, commuting, and other spatial forces and policies affect environmental quality? We distill theoretical and empirical research linking urban, regional, and spatial economics to the environment. We present stylized facts on spatial environmental economics, describe insights from canonical environmental models and spatial models, and discuss the building blocks for papers and the research frontier in enviro-spatial economics. Most enviro-spatial research remains bifurcated into either primarily environmental or spatial papers. Research is only beginning to realize potential insights from more closely combining spatial and environmental approaches. |
| JEL: | F18 F64 H23 J61 O18 Q50 R11 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19934 |
| By: | Marina Gómez-García (Universidad Autónoma de Madrid and Banco de España) |
| Abstract: | This paper estimates the causal impact of air pollution on housing prices in Madrid, a large European city with relatively high and persistent nitrogen dioxide (NO2) concentrations and a home ownership rate of around 70%. Using location-specific data on pollution levels and the universe of housing transactions, my estimation controls for house and neighborhood characteristics, year and neighborhood fixed effects, a bad weather index and a set of time-varying neighborhood characteristics. To address endogeneity concerns, I make use of quasi-experimental variation in nitrogen dioxide levels resulting from temperature inversions. The results suggest that a 10% increase in air pollution reduces housing prices by 0.65% (around €1, 327 for the average house). This effect is robust to alternative measures of air pollution, different bad weather indices and the inclusion of seasonality dummies, and is highly non-linear, being larger for higher levels of pollution. |
| Keywords: | air pollution, housing market, valuation of environmental effects |
| JEL: | Q53 R31 Q51 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:bde:wpaper:2624e |
| By: | Odeyomi, Omowunmi A.; Ejimakor, Godfrey C.; Collins, LaPorchia |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404888 |
| By: | Shrestha, Aavash; Zhang, Qi; Etienne, Xiaoli; Tejeda, Hernan; Trujillo-Barrera, Andres |
| Abstract: | The food sector faces growing pressure to reduce greenhouse gas emissions, and food companies increasingly communicate climate actions through product labels and sustainability claims. Yet low-carbon claims can be achieved through substantively different strategies. Some firms directly reduce emissions in production or along the supply chain, while others rely on carbon offsets that compensate for emissions through external projects. This study examines whether U.S. consumers distinguish among direct emissions reduction, carbon offsetting, and a combined reduction-and-offset approach in the context of dairy products. We conduct an online discrete choice experiment in which consumers choose between two 8-ounce blocks of sharp cheddar cheese and a neither option. Product attributes include brand type, price, climate mitigation claim, and certification source. Using a conditional logit model with respondent-clustered standard errors, we estimate willingness to pay for alternative climate claims and certification sources. Results show that consumers value all three climate mitigation claims relative to no claim, but they do not treat them as equivalent. Under both certification sources, the combined reduction-and-offset claim receives the highest willingness to pay, followed by direct emissions reduction and carbon offsetting alone. Similarly, across all the climate mitigation claims, government certification generates an additional premium relative to independent third-party certification. These findings suggest that the market value of climate-related food labels depends not only on the presence of a low-carbon claim, but also on the substantive mitigation strategy and the credibility of verification. |
| Keywords: | Institutional and Behavioral Economics |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404432 |
| By: | Jiang, Jing; Fan, Yubing; Tang, Zeng |
| Abstract: | Livestock production has thus become a key pillar of rural revitalization and agricultural modernization. However, herders in China’s pastoral regions face significant risks from natural disasters, wildlife conflicts, and market fluctuations, which threaten income stability and sustainable development. Using survey data from 522 herder households in the Qilian Mountains, this study employs a Double-Hurdle model to examine how herders’ perceptions of natural disaster, wildlife conflict, and market risks affect their livestock insurance purchase decisions and payment amounts. The results reveal that a one-unit increase in overall risk perception raises the probability of purchasing insurance by 34.2% and increases insurance expenditure by 1, 512.1 CNY 2 . Specifically, only natural disaster perception demonstrates a statistically significant effect on insurance expenditure: a one-unit increase in this perception raises the probability of purchasing insurance by 3.0% and increases expenditure by 242.9 CNY. Perceived market risk increases purchase probability by 6.2%, and wildlife conflict risk increases it by 2.9%. Regional heterogeneity is evident: Qinghai herders respond more strongly to natural disaster risks in determining insurance payment amount, whereas Gansu herders are more responsive in their purchase decisions. Across livestock types, natural disaster perception remains the dominant driver of insurance participation and expenditure for both cattle and sheep herders. These findings highlight the importance of tailoring policy-based livestock insurance to regional and behavioral contexts. Strengthening herders’ market risk awareness, improving insurance accessibility and trust, and aligning insurance with ecological conservation policies can enhance participation and promote sustainable pastoral livelihoods. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404779 |
| By: | Yiwen Chen (Shandong Agricultural University, Taiwan); Nora Paulus (DF, Université du Luxembourg); Xi Wan (International Joint Audit Institute) |
| Abstract: | "Achieving Net-Zero emissions by 2050, in line with the Paris Agreement, has emerged as a binding constraint for climate policy, yet most dynamic models treat carbon neutrality as an endogenous outcome. This paper studies the role of Carbon Capture and Storage (CCS), as a representative case of abatement under terminal constraints, when the deadline for reaching the net-zero target (T) is exogenously fixed. We derive a closed-form welfare criterion that compares CCS-based and renewable-only transition pathways through the difference in inherited pollution damages at T. This criterion delivers policy-relevant results along three dimensions: (i) the net-zero date; (ii) learning-by-doing effects on CCS cost trajectories; and (iii) storage capacity requirements needed for CCS to remain welfare-desirable. Using a linear–quadratic framework calibrated to different target dates, we show that CCS dominates a renewable-only pathway whenever its transition period welfare gains are large enough to offset the higher post-transition climate damages it generates relative to renewables. We therefore derive a general welfare criterion linking transition emissions to terminal carbon stock under an exogenously imposed net-zero constraint. Our results provide decision-relevant thresholds for net-zero planning, complementing recent work on the timing of CCS deployment and the feasibility of negative emissions." |
| Keywords: | "renewable energy, Pollution abatement, Irreversible pollution control, net-zero emission target" |
| JEL: | Q54 Q58 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:26-10 |
| By: | Yiwen Chen (Shandong Agricultural University, Taiwan); Jianxin Guo (Academy of Mathematics and Systems Science, Chinese Academy of Sciences); Benteng Zou (DEM, Université du Luxembourg) |
| Abstract: | "The clean-energy transition relies on critical minerals whose extraction generates substantial local environmental damages, while their use enables global decarbonization. We develop a dynamic two-region model linking extraction-related pollution in exporting countries to global CO2 accumulation valued by importing countries. We analyze three regimes: the exporter’s first-best, importer leadership, and importer leadership with partial responsibility for local damages. When exporters internalize only local externalities, extraction is conservative and may leave resources in situ, with pollution following a hump-shaped path and eventually dissipating. By contrast, importer leadership without responsibility induces accelerated extraction, finite-time depletion, and sharply higher cumulative local damages, reflecting the overriding effect of demand-side commitments. Introducing partial importer responsibility moderates extraction and reduces local pollution, but delays mineral availability and increases global CO2, revealing a fundamental local–global trade-off. We derive the social planner’s solution and show that optimal extraction follows a cumulative threshold rule balancing local environmental damages against the global cost of delayed decarbonization. Relative to this benchmark, exporter-led equilibria under-extract, while importer-led regimes generate over-extraction. Bilateral Pigouvian transfers, compensating exporters for local damages and accounting for global climate benefits, decentralize the planner’s allocation. The analysis provides a tractable framework for evaluating emerging policy instruments in critical mineral supply chains, including sustainability, linked procurement, environmental provisions in trade agreements, and cross-border compensation mechanisms." |
| Keywords: | Clean Energy Boom, Mining of Critical Minerals, Local vs Global Costs. |
| JEL: | Q34 C61 D4 L72 L12 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:26-09 |
| By: | David Dosso; Imen Ghattassi; Francisco Serranito |
| Abstract: | Climate vulnerability indices are widely used to guide environmental planning, climate adaptation strategies, and the allocation of resilience resources. However, many existing indicators are strongly correlated with countries’ levels of economic development, which can blur the distinction between climate risk and income conditions and lead to potentially biased prioritization of adaptation efforts. This study introduces the Climate Vulnerability Neutral (CVN) Index, a transparent and reproducible tool designed to better isolate climate-related vulnerability while maintaining broad sectoral coverage relevant for environmental management. The CVN index is constructed using a systematic selection procedure that retains vulnerability components with limited dependence on GDP per capita while preserving representation across key environmental domains, including food security, water resources, health, ecosystems, habitat, and infrastructure. Using panel data for 158 countries over the period 1995-2023, the results show that economic development explains a substantial share of the variation in widely used vulnerability indicators, whereas its influence on the CVN index is markedly lower. The proposed framework therefore provides a more balanced representation of countries’ exposure and sensitivity to climate hazards across income groups.From a management perspective, the CVN index offers a practical instrument for monitoring vulnerability trends, supporting comparative risk assessments, and improving the targeting of climate adaptation policies. By enhancing the transparency and usability of vulnerability measurement, the index can assist governments and international organizations in designing more effective and evidence-based environmental management strategies. |
| Keywords: | Climate vulnerability ; Environmental management ; Risk assessment ; Adaptation policy ; Composite indicators, GDP neutrality |
| JEL: | Q54 Q01 C43 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:drm:wpaper:2026-17 |
| By: | Mirkasimov, Bakhrom; Parpiev, Ziyodullo; Wolfson, Inna |
| Abstract: | Climate change is likely to reshape agriculture in an irrigated, water-scarce transition economy like Uzbekistan. We use IFPRI's International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT) model and evaluate the direct effects of climate change on Uzbekistan’s agriculture through 2050. We assume changes in GDP, population, and technological progress to be exogenous. We find that climate change and the corresponding temperature increase will have significant adverse effects on the long-term yields of cotton and wheat through changes in water availability, precipitation patterns, crop yields, and the use of land, water, and other natural resources, but harvested area responses may differ. All climate change scenarios are similar in predicting an increase in harvested area for temperate fruits and vegetables, but their yield gains remain conditional on market prices, policy reform, water use and institutional constraints. For policymakers, this makes climate change adaptation actions an opportunity for incentives and structural reforms as well as for technology to adapt to changing environmental conditions and to ensure food security. |
| Keywords: | climate change; climate change adaptation; mathematical models; climate change impacts; modelling; Uzbekistan; Central Asia; Asia |
| Date: | 2026–06–11 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:cenawp:183323 |
| By: | Bilal, Adrien; Känzig, Diego |
| Abstract: | This paper shows that unilateral decarbonization pays for itself in large economies. We estimate economic damages from global temperature shocks and combine them with a climate-economy model to construct Domestic Costs of Carbon: $226 per ton for the United States and $216 per ton for the European Union. When compared to marginal abatement costs, these values imply over 80% unilateral decarbonization for both economies, an order of magnitude larger than under conventional damages estimated based on local temperature. |
| Keywords: | Climate change |
| JEL: | E01 E23 F18 O44 Q54 Q56 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19938 |
| By: | Cornelli, Giulio; Gambacorta, Leonardo; Oliviero, Tommaso; Takahashi, Koji |
| Abstract: | In the context of rising public awareness of climate change, the proliferation of green mutual funds reflects expectations of their contribution to a sustainable economic transition. This paper investigates the effect of climate news on mutual funds’ flows, and on their portfolio allocation decisions. Using detailed flow- and holdings- level data, we observe that heightening climate news results in significantly larger capital inflows into green funds versus their non-green counterparts. Furthermore, we show that, in reaction to climate news, green funds decrease their exposure to high-polluting firms relative to low-polluting firms more than non-green funds do. These results suggest that increasing public awareness boosts capital re-allocation towards green funds and this, in turn, potentially fosters investment relocation towards more environmentally- friendly companies. |
| Keywords: | Mutual funds; Climate news; Green finance |
| JEL: | G11 G23 Q54 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19984 |
| By: | Sloterdijk, Hans; Grünhagen, Caroline; Voss, Rudi; Grasse, Patricia; Keller, David P.; Kleemann, Linda; Kluger, Lotta Clara; Lancker, Kira; Rickels, Wilfried; Riebesell, Ulf; Salvatteci, Renato; Oschlies, Andreas; Schmidt, Jörn O.; Oppelt, Natascha; Rehdanz, Katrin; Riekhof, Marie‐Catherine |
| Abstract: | Achieving global climate goals while ensuring food security in a changing climate presents significant challenges, particularly when relying solely on land-based solutions. Covering over 70% of the Earth's surface, the ocean remains an underutilized resource for climate mitigation. Ocean alkalinity enhancement (OAE) is one such strategy, designed to strengthen the ocean's natural carbon sink, reduce atmospheric CO2, and mitigate ocean acidification. However, its implications for fisheries, critical for food security and livelihoods, remain uncertain. This study examines the interplay between global fisheries, OAE, and different future socioeconomic and climatic conditions, using the Shared Socioeconomic Pathways (SSPs) and Representative Concentration Pathways framework. We explore how global fisheries and OAE could evolve under three combined scenarios: SSP1-2.6 (sustainability-focused), SSP3-7.0 (regional rivalry), and SSP5-8.5 (high fossil fuel dependency). By integrating ecological, economic, societal, and technological perspectives, we develop scenario narratives and quantify key bio-economic parameters, including technological progress, fishing costs, fisheries management, marine aquaculture, and ecosystem carrying capacity. High-emission (SSP5-8.5) and fragmented development (SSP3-7.0) scenarios present significant barriers to the coexistence of OAE and fisheries, whereas sustainability-focused pathways (SSP1-2.6) offer the most favorable conditions for their alignment. Successfully integrating OAE with fisheries management will likely depend on technological advancements, international cooperation, and socio-economic developments. These scenarios are aligned with those used in model-based scenario studies conducted under the frameworks of the Intergovernmental Panel on Climate Change and the Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES), providing a shared foundation for future work. Plain Language Summary The world faces two major challenges: reducing climate change and ensuring food security. While many climate solutions focus on land, the ocean, covering over 70% of the Earth's surface, offers untapped potential. One proposed strategy is ocean alkalinity enhancement (OAE), which could help the ocean absorb more carbon dioxide from the atmosphere and reduce ocean acidification. However, little is known about how OAE might affect global fisheries, which are essential for food and livelihoods. Our study explores how fisheries and OAE could co-evolve under different future scenarios, considering climate change and socio-economic developments. We examine three possible futures: one focused on sustainability (SSP1-2.6), another marked by regional conflict (SSP3-7.0), and one with continued high fossil fuel use (SSP5-8.5). Using these scenarios, we analyze factors such as fishing costs, technology, aquaculture, and ecosystem health. We find that sustainability-focused pathways (SSP1-2.6) create the best conditions for OAE and fisheries, while high-emission and fragmented development scenarios present major challenges. The successful implementation of OAE alongside fisheries management will likely depend on technological progress, international cooperation, and economic policies. We expect that these scenarios will be a common starting point for future model-based scenario studies related to the work of the Intergovernmental Panel on Climate Change and Intergovernmental Platform on Biodiversity and Ecosystem Services. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:341700 |
| By: | Böttcher, Miranda |
| Abstract: | In January 2027, the first Conference of the Parties to the new United Nations High Seas Treaty will take place. The meeting is expected to address key conflicts between marine conservation and ocean use in the context of climate change. The 2024 advisory opinion of the International Tribunal for the Law of the Sea (ITLOS) on climate change is therefore once again attracting attention. Many observers had expected the opinion to clarify the relationship between ocean protection and utilisation in climate policy. Such clarification is particularly important in relation to emerging marine carbon dioxide removal (mCDR) technologies, which seek to enhance oceanic carbon drawdown in order to mitigate climate change. ITLOS confirmed that states are obliged to protect the ocean from pollution caused by atmospheric CO2. However, it left open the question of whether mCDR should be regarded as marine pollution or as a contribution to marine environmental protection. This ambiguity could be mobilised politically to either promote or restrict mCDR. International organisations, EU institutions, and national authorities should therefore prepare for competing interpretations of the advisory opinion that may shape future climate and ocean governance. |
| Keywords: | Ocean governance, climate policy, marine carbon dioxide removal, mCDR, United Nations Agreement on the Conservation and Sustainable Use of Marine Biological Diversity of Areas beyond National Jurisdiction, BBNJ Agreement, International Tribunal for the Law of the Sea, ITLOS, United Nations Convention on the Law of the Sea, UNCLOS |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:341972 |
| By: | Fichter, Klaus; Neumann, Thomas; Olteanu, Yasmin; Grothey, Tim; Block, Jörn |
| Abstract: | The Green Startup Report 2026, published by the Borderstep Institute for Innovation and Sustainability, analyzes the current development of the green startup landscape in Germany and continues the scientific observation of the scene that has been carried out continuously since 2013. The long-term perspective enables a reliable classification of structural trends, technological developments, and changes in startup dynamics. The green startup community has continued to grow and now comprises 4, 668 companies (founded between 2016 and 2025). Green startups make a key contribution to Germany's technological innovation capacity and climate protection performance as a business location. They are characterized by a high patent rate, above-average research intensity, and significant CO2 reduction potential. On average, their solutions reduce greenhouse gas emissions by more than 70 percent compared to standard technologies on the market. At the same time, the report shows a decline in start-up momentum for the first time in years. Despite stable and growing green tech markets, shifts in political and public attention as well as regulatory uncertainties, particularly in capital-intensive sectors, are slowing further growth. The Green Startup Report 2026 thus provides a key data basis for the strategic development of German start-up, innovation, and climate policy. |
| Keywords: | green startups, climate protection potential, green startup ecosystem, Business model, Sustainable business model, Green tech business model, Impact potential, Energy transition, Sustainable chemistry, Sustainability, GreenTech, Climate Forward Financing |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esrepo:341854 |
| By: | Bhattacharya, Shubhro (University of California San Diego); Constantino, Sara (Stanford University); Mishra, Nirajana (Northeastern University); Prakash, Nishith (Northeastern University); Sabarwal, Shwetlena (The World Bank); Samaddar, Dighbijoy (Centre for Social and Behavior Change); Sherif, Raisa (Max Planck Institute for Tax Law and Public Finances) |
| Abstract: | We study intergenerational spillovers of environmental education using a randomized field experiment with 1, 446 child–parent pairs in Patna, India, assigned to child-only, parent-only, joint, or control arms. Treating either children or parents raises the likelihood that the untreated household member chooses a delayed recycled certificate over an immediate standard one by 25 percentage points—spillovers on this incentivized behavior run symmetrically in both directions. Spillovers on beliefs and attitudes are asymmetric, however: children shift parents' views on climate change, but little spillover runs from parents to children on other measures. Joint participation does not outperform targeting children alone once child-to-parent spillovers are accounted for, suggesting that targeting children is a more scalable, cost-effective way to promote sustainable household behavior. |
| Keywords: | environmental education, intra-household spillovers, intergenerational transmission, pro-environmental behavior, climate risk perceptions, factorial randomized design, India |
| JEL: | C93 D10 I20 O10 Q01 Q53 Q54 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18809 |
| By: | Maria Elena Bontempi; Clementine Ols |
| Abstract: | Temperate conifer forests underpin European ecosystems and economies, making it essential to understand how they respond to climate change. Yet most empirical studies estimate average climate responses that mask variability across biological and ecological scales. Using a cross-classified panel model, we estimate heterogeneous climate sensitivities across trees, species, and ecological regions while accounting for temporal dynamics, competition, stand characteristics, and within- and between-species size variation. Spring temperature emerges as the dominant seasonal driver of radial growth, but its effect varies markedly across species and ecological regions. Native species exhibit lower growth potential but more context-dependent responses, whereas introduced species generally achieve higher growth while displaying greater climate sensitivity. Controlling for tree size attenuates the estimated temperature effect, showing that part of the apparent climate response reflects ontogenetic structure rather than intrinsic physiological sensitivity. Consequently, vulnerability cannot be inferred from species identity alone but depends on the interaction between species traits and ecological context. Models imposing homogeneous climate responses therefore risk misrepresenting both resilience and exposure to climate change. Our findings suggest that continued warming and changing precipitation regimes are likely to reshape temperate conifer forests through differential responses across species and ecological settings rather than through a uniform climatic effect. |
| JEL: | Q54 Q23 C23 Q24 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:bol:bodewp:wp1229 |
| By: | Gilberto Libânio (Cedeplar/UFMG); Diana Chaib (Cedeplar/UFMG); Eric Serbinenko (Cedeplar/UFMG); Monique Botelho (UFMG) |
| Abstract: | This article examines China’s green transition from a political economy perspective, emphasizing the interaction between the developmental state, Five-Year Plans, and multilevel governance arrangements. It argues that China’s capacity to advance decarbonization and productive restructuring is rooted in the combination of long-term strategic planning, decentralized implementation, and policy instruments such as green finance, carbon markets, and pilot zones. By integrating top-down coordination with bottom-up experimentation, this framework has supported the expansion of renewable energy, technological upgrading, and improvements in green complexity indicators. At the same time, the persistence of high emission levels and carbon-intensive sectors highlights the non-linear and contradictory nature of the transition process. The Chinese experience thus provides relevant, albeit not directly replicable, insights for the design of sustainable development strategies in Global South economies. |
| Keywords: | Green transition; China; Developmental state; Environmental policy. |
| JEL: | O44 Q58 P21 O53 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:cdp:texdis:td698 |
| By: | Battiston, Stefano; Mandel, Antoine; Monasterolo, Irene |
| Abstract: | We develop a micro-founded model of climate credit risk (CLIMACRED) for scenario-contingent valuation, linking adjustments of the firm's default probability and credit risk to the reference supervisory climate transition scenarios of the Network for Greening the Financial System (NGFS). We unveil a new economic mechanism of asset stranding, with transition risk emerging from the change in asset value triggered by a change in markets' expectations about the material impact of a climate policy scenario on the firm. We quantify the impact of changes in market's expectations about climate policy scenarios on the financial valuation adjustment of the firm's financial instruments (equity and bonds), applying CLIMACRED to a universe of utility companies. We find that the firm's valuation adjustment depends on the interplay of (i) the technology profile of the firm's assets and revenues, (ii) the timing and magnitude of the carbon tax (iii) the dynamic technology cost adjustment across scenarios. Firms with revenues from different energy technologies would face lower financial losses in disorderly transition scenarios, n comparison to firms relying solely on fossil fuels that would face up to 80% losses in valuation, implying larger credit and portfolio risk for the bonds' holders. The model was adopted by the NGFS for the development of its short-term climate scenarios to provide a comprehensive assessment of climate financial risk dynamics. |
| JEL: | G00 G30 Q54 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20239 |
| By: | Clausing, Kimberly; Colmer, Jonathan; Hsiao, Allan; Wolfram, Catherine |
| Abstract: | Climate change poses a collective action problem: individual countries bear the costs of carbon regulation, while the benefits are shared globally. Carbon border adjustment mechanisms (CBAMs), which are currently being implemented by the EU and UK, aim to realign incentives by improving domestic competitiveness, reducing emissions leakage, and encouraging other countries to tax carbon. However, policy discussions also note that CBAMs could unfairly disadvantage lower-income trading partners. We evaluate these issues with a quantitative trade model and plant-level data for two key industries – steel and aluminum – which are the focus of early CBAM implementation. Together, they account for 14% of global emissions. We show that CBAMs can facilitate collective climate action, while largely avoiding disproportion- ate burdens on lower-income countries. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20277 |
| By: | Ascari, Guido; Colciago, Andrea; Haber, Timo; Wöhrmüller, Stefan |
| Abstract: | The EU aims for 42.5% green energy consumption by 2030. What are the effects of the European green transition on inequality? We answer this question using a heterogeneous-agent model with non-homothetic preferences for energy and non-energy goods, calibrated to European data. We study the impact of an increase in carbon taxes designed to meet the EU target under different revenue-recycling strategies. Redistributing tax revenues via uniform transfers reduces consumption inequality, shifts the welfare burden to high-income households, but leads to significant output losses. Subsidizing green energy producers boosts energy production, reduces output losses, and requires a smaller carbon tax to meet the EU target. However, it increases consumption and income inequality, with the highest welfare costs borne by low income and asset-poor households. Our findings highlight key trade-offs between equity and efficiency in green transition policies. |
| Keywords: | Inequality |
| JEL: | Q43 Q52 E6 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20006 |
| By: | Coppens, Léo; Dietz, Simon; Venmans, Frank |
| Abstract: | We analyse the large and diverse literature on technical change in integrated assessment models (IAMs) of climate change, with a view to understanding how different representations of technical change affect optimal climate policy. We first solve an analytical IAM that features several models of technical change from the literature, including exogenous technical change in abatement technologies, exogenous decarbonisation of the economy, endogenous technical change via learning-by-doing, and endogenous technical change via R&D (in particular, directed technical change). We show how these models of technical change impact optimal carbon prices, emissions and temperatures in often quite different ways. We then survey how technical change is currently represented in the main quantitative IAMs used to inform policy, demonstrating that a range of approaches are used. Exogenous technical change in abatement technologies and learning-by-doing are most popular, although the latter mechanism is only partially endogenous in some models. We go on to quantify technical change in these policy models using structural estimation, and simulate our analytical IAM numerically assessing the effect of technical change on optimal climate policy. We find large quantitative effects of technical change and large quantitative differences between different representations of technical change, both under cost-benefit and cost-effectiveness objectives. |
| JEL: | C61 O30 Q54 Q55 Q58 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20043 |
| By: | Griebenow, Nils Darius |
| Abstract: | Apart from being an obvious and significant environmental problem, climate change poses a unique set of economic problems due to the intertemporal nature of those who are responsible for producing emissions, and those who bear the costs down the road. Market-based solutions can facilitate the internalization of these costs associated to climate change. One such solution came in the form of the European Union Emissions Trading System (ETS) in 2005. This dissertation investigates the economic effects of this policy across three chapters based on empirical investigations. Chapter 3 explores firm-level economic effects of ETS regulation in Spain, echoing results from other studies which found positive outcomes in employment, revenues, and fixed assets, even in a credit-constrained and structurally-challenged economy. Chapter 4 looks at the issue of over-allocation of emissions certificates during Phase 2 of the ETS using a sector-based quasi-natural experiment. Using a new definition of the concept, we find evidence for substantial over-allocation amongst energy producers. Lastly, Chapter 5 investigates both economic and electoral effects of policy stringency at the regional level across Europe. Positive economic effects, as well as positive electoral effects for green parties in national elections, are found to be caused by higher ETS stringency, although the latter is not mediated by the former. Overall, the findings suggest that concerns regarding environmental policy in the form of negative economic effects and political backlash are unsubstantiated in the case of the ETS, while also identifying design flaws which may have impacted earlier stages of the scheme. |
| Date: | 2025–12–04 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:160845 |
| By: | Raouf Boucekkine (Aix-Marseille Université); Weihua Ruan (Purdue University Northwest, USA); Benteng Zou (DEM, Université du Luxembourg) |
| Abstract: | "We study an n-country pollution differential game in which countries differ in their sensitivity to environmental damages while contributing to a common pollution stock. Such heterogeneity implies that countries value environmental quality differently and disagree on the desirable long-run environmental outcome. Within a linear-quadratic framework, we characterize the decentralized equilibrium and compare it to a centralized benchmark that maximizes aggregate welfare. We show that decentralized steady-state pollution is inefficiently high and that its level depends systematically on the distribution of damage sensitivities: intriguingly, holding average damages constant, more evenly distributed damages lead to more long-run pollution. We next show, among others, that while polarized damages reduce equilibrium pollution, they do generate distributional tensions. We therefore suggest a mechanism combining Pigouvian taxation with lump-sum transfers that can found an International Environment Agreement redistributing gains and implementing the first-best allocation despite divergent incentives." |
| Keywords: | "Transboundary pollution; Differential games; Asymmetric players; International Envionmental agreements" |
| JEL: | C62 C71 H23 F53 Q53 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:26-08 |
| By: | Asia Guerreschi (Sustainability Environmental Economics and Dynamic Studies (SEEDS); Department of Economics and Management, University of Ferrara); Corentin Tenailleau (HEC Paris, Sustainability and Organizations Institute (S&O); École Nationale des Ponts et Chaussées, Department of City, Environment, Transportation); Fernando J. Díaz López (Sustainability Environmental Economics and Dynamic Studies (SEEDS); HEC Paris, Sustainability and Organizations Institute (S&O); Department of Industrial Engineering, Stellenbosch University) |
| Abstract: | Climate adaptation and resilience are increasingly important dimensions of corporate sustainability and R&D strategies, yet management and economics research remains largely focused on climate mitigation and decarbonisation. This paper develops an exploratory framework linking business model innovation, organisational resilience and climate adaptation through the lens of dynamic capabilities. Using a multiple case study of three France-based logistics and transportation firms (CMA CGM, Getlink and Sogaris), the study examines how firm-level micro-foundations of dynamic capabilities contribute to anticipating, absorbing, adapting to and transforming in response to climate change. Findings suggest that climate resilience capabilities are emerging but remain unevenly developed across firms, with sensing and seizing capabilities more mature than reconfiguration and innovation capabilities. The paper proposes an initial conceptual framework (CLIMB Framework) and identifies avenues for future theoretical and empirical research on climate resilience innovation. |
| Keywords: | Climate adaptation; Climate resilience; Dynamic capabilities; Business model innovation; Corporate resilience; Climate innovation |
| JEL: | D81 Q54 Q55 Q56 O32 O39 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:srt:wpaper:1226 |
| By: | Berman, Gabriella; Echavarria, Elizabeth; Spiller, Beia (Resources for the Future) |
| Abstract: | This paper evaluates deep-sea mining (DSM) from a policy perspective in light of rising critical mineral demand. It assesses the economic, environmental, social, and governance trade-offs between DSM and terrestrial mining, highlighting unresolved questions about ecological harm, commercial viability, benefit sharing, and the long-term substitution of land-based supply. Because DSM is likely to augment rather than displace terrestrial mining, particularly in the short term, it could have important distributional consequences for mining-dependent communities and producer countries. We also examine the unsettled international governance landscape, including ongoing negotiations at the International Seabed Authority (ISA) and growing unilateral national initiatives. We argue that, given the many uncertainties, policymakers should proceed with caution when setting regulatory frameworks for and making decisions about DSM. Furthermore, prioritizing robust environmental standards, equitable distributional rules, and broader mineral strategies centered on demand reduction, recycling, and reform of terrestrial mining governance is key to ensuring a sustainable transition as DSM rules develop. |
| Date: | 2026–07–29 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-26-12 |
| By: | Di Giovanni, Julian; Hale, Galina; Lahiri, Neel; Sanyal, Anirban |
| Abstract: | The slow adoption of climate change policies stems from concerns about their economic impact. The EU has led global carbon pricing through its Emissions Trading Scheme (ETS). This study examines the effect of ETS policy shocks on global stock market returns at the country-industry level using linear and spatial autoregression models. Results show that while markets react negatively to rising carbon prices, the impact is small in magnitude. Global spillovers are limited to sectors linked to EU industries via intermediate goods trade, with no significant effects beyond these supply chain linkages. Overall, the unintended consequences of EU climate policies appear negligible, with minimal effects on targeted industries’ stock returns and no spillovers outside supply chain linkages. |
| Keywords: | Global supply chains |
| JEL: | F10 F18 G15 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20093 |
| By: | Harstad, Bård |
| Abstract: | There appears to be a tension between proponents of trade and environmental activists. This paper shows, however, how trade can motivate environmental conservation. I first analyze a standard trade model, where trade-specific investments (e.g., deforestation) causes environmental damage. In this model, a traditional trade agreements will cause more thus deforestation. Next, I investigate the extent to which a contingent trade agreement (CTA), where default tariffs can vary with changes in the production capacity (e.g., forest cover), can motivate conservation. The model permits many products, countries, and collaborators. A numerical example suggests that growth and liberalization can cause Brazil's agricultural area to expand by 27%, but this expansion can be avoided if the EU and the US offer a CTA. |
| Keywords: | International trade |
| JEL: | F13 F18 F55 Q37 Q56 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20037 |
| By: | Ceccarelli, Marco; Ramelli, Stefano; Vasileva, Anna; Wagner, Alexander F. |
| Abstract: | Can changes in political context shift the weight individuals place on non-pecuniary versus pecuniary motives in financial decision-making? We examine this question using pre-registered surveys and incentivized investment decisions surrounding the 2024 U.S. presidential election. Following Trump’s victory, investors reduced average green investments due to worse financial expectations. However, investors who strongly disapproved of his climate policies increased their green allocations, emphasizing climate considerations over financial ones. These "contrarian" investors appear motivated to offset perceived policy shortcomings. Real-world ETF flows corroborate this pattern. The findings have implications for understanding and modeling values-based investment behavior. |
| Keywords: | Behavioral finance; Climate change; Expected returns; Investments; Political economy; Surveys; Sustainable finance |
| JEL: | D83 G11 G12 G41 G51 P18 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20123 |
| By: | Tan, Zhaofeng; Zhu, Xinlei; Huang, Teng; Liu, Tianjun |
| Abstract: | Existing research on how environmental policy affects firm dynamics has focused mainly on highly polluting firms. By contrast, there is still limited evidence on how such policies shape the entry and exit of green agribusiness. This paper studies a Chinese agricultural environmental policy that combines regulation with incentives and was gradually introduced at the county level from 2017 onward. We treat this rollout as a quasi-natural experiment. Using a staggered difference-in-differences design, we identify the causal effects of agricultural environmental policy on the dynamics of green agriculture-related firms. We find that the policy increased entry by about 10.67 percent and exit by about 9.84 percent among green agriculture-related firms. The evidence points to market selection as the main mechanism. The policy increased market demand for green agriculture from both consumers and agricultural producers. It also raised the revenues and profits of incumbent green agriculture-related firms. In addition, the policy reduced informal costs, especially financing frictions, but did not significantly relax formal institutional barriers. Lower entry costs and stronger market expectations increased the expected returns to entry and encouraged green agribusiness to enter. At the same time, intensified competition pushed less efficient firms out of the market. This pattern is especially pronounced among smaller firms, firms with narrower business scopes, less diversified firms, and firms with weaker profitability. The policy also generated both environmental and economic gains. It reduced methane emissions by about 1.06 percent and nitrous oxide emissions by about 1.68 percent. It also increased nighttime light intensity by about 3.57 percent. Overall, this paper provides new micro-level evidence on how environmental policy shapes green agribusines dynamics. It also offers evidence from China that may inform green structural transformation in agriculture in developing countries. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404468 |
| By: | Budhathoki, Srijan; McCluskey, Jill |
| Abstract: | Plant-based meat alternatives (PBMAs) have been marketed as a tool for reducing the environmental footprint of food consumption, yet their actual market performance and policy relevance remain contested. Using the Nielsen Consumer Panel, we estimate an EASI demand system across conventional beef, conventional chicken, plant-based (PB) beef, PB chicken, and PBMA veggie products for the years 2021 to 2024, a period that follows the PBMA U.S. sales peak. Censored participation is corrected via the Shonkwiler-Yen two-step procedure with full categorical demographic controls in the selection stage. PBMA participation rates declined markedly across our sample period, yet PBMAs retain persistent price premiums over their conventional counterparts. We find that PBMAs are own-price elasticities are elastic, while conventional meats are approximately unit elastic. Hicksian cross-price elasticities reveal meaningful substitutability between PB beef and conventional beef and between PB chicken and conventional chicken, but Marshallian cross-price elasticity estimates are negative, reflecting dominant income effects. Policy simulations suggest that a carbon tax calibrated to the U.S. social cost of carbon would reduce household beef consumption by 8% to 20% and aggregate dietary greenhouse gas emissions by 6.5% to 16.2%, whereas a $0.10 per pound PBMA subsidy alone generates negligible emissions reductions. Combining the carbon tax with a PBMA subsidy yields marginally greater reductions. Heavy meat consumers and low-income households face disproportionately large absolute reductions in consumption under the carbon tax. Our results imply that demand-side climate policy in the food sector should prioritize consumption taxes on high-emission conventional meats over supply-side subsidies for alternatives. |
| Keywords: | Food Consumption/Nutrition/Food Safety |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404569 |
| By: | Keuschnigg, Christian; Stalenis, Giedrius K. |
| Abstract: | We study a small open economy that must implement an emissions reduction plan and eventually phase out fossil fuel. R&D leads to the design of energy saving new machines. Endogenous scrapping eliminates old inefficient machines. We identify two distortions that delay the adoption and diffusion of energy saving technology: scrapping of old equipment and investment in new machines are both too low. The optimal policy to manage the energy transition thus combines a carbon tax with a profit tax to speed up exit, and an investment subsidy to speed up investment in new equipment. The optimal policy increases capital turnover, the diffusion of energy saving technology, and thereby mitigates the costs of the energy transition. Compared to a policy that exclusively relies on carbon taxes, the optimal policy could reduce the GDP loss of moving to net zero from 7.8 to 6.1% of GDP. |
| JEL: | D21 D62 H23 O33 Q41 Q43 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19993 |
| By: | Takafumi SASAKI; Tatsuo USHIJIMA |
| Abstract: | Achieving the Paris Agreement's goals requires substantial decarbonization investments by companies. This paper investigates the impact of corporate industrial diversification on environmental performance by focusing on the role of cash flow coinsurance. Corporate diversification may ease financing constraints and promote decarbonization investments by facilitating external financing and reallocating resources through internal capital markets across segments. Using a sample of Japanese firms from 2006 to 2019, we find that corporate diversification mitigates carbon intensity, especially among diversified firms with low cash flow correlation among business segments (high coinsurance). The relationship between coinsurance and carbon intensity is particularly evident among firms operating in carbon-intensive industries and during the period following the Paris Agreement. We also find that cash flow coinsurance does not significantly impact Scope 2 emissions but that it has a significant impact on Scope 1 emissions, for which large investments are required. Our results suggest that industrial diversification lowers carbon intensity by mitigating the financing constraints associated with decarbonization projects. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:26057 |
| By: | Phoebe Koundouri (Dept. of International and European Economic Studies, Athens University of Economics and Business); Chrysilia Pitti; Georgios Feretzakis |
| Abstract: | The transition to a sustainable economy depends on transforming the workforce at least as quickly as the labour market is being reshaped by automation. This chapter examines how artificial intelligence (AI) can identify the competencies required to deliver the United Nations Sustainable Development Goals (SDGs) and can guide the revision of curricula across all levels of education, while critically assessing the risks that accompany technology-driven workforce planning. Drawing on an operational natural-language-processing framework that extracts skills from policy documents and curricula, maps them to the European ESCO taxonomy and to SDG targets-achieving an overall F1 score of 0.963 for skills extraction and 0.809 for environmental-SDG alignment in an authors' evaluation-we show how AI can accelerate the skills intelligence needed for evidence-based upskilling and reskilling. We weigh these promises against the perils of algorithmic bias, linguistic and regional exclusion, worker displacement, surveillance and rebound effects, and we propose governance and educational pathways for an inclusive transition that genuinely empowers labour-market participation. |
| Keywords: | sustainability skills, green transition, artificial intelligence, upskilling and reskilling, curricula reform, Sustainable Development Goals, ESCO, just transition |
| Date: | 2026–07–27 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2619 |
| By: | Raouf Boucekkine (Aix-Marseille Université); Weihua Ruan (Purdue University Northwest, USA); Benteng Zou (DEM, Université du Luxembourg) |
| Abstract: | "We study an n-country pollution differential game in which countries differ in their sensitivity to environmental damages while contributing to a common pollution stock. Such heterogeneity implies that countries value environmental quality differently and disagree on the desirable long-run environmental outcome. Within a linear-quadratic framework, we characterize the decentralized equilibrium and compare it to a centralized benchmark that maximizes aggregate welfare. We show that decentralized steady-state pollution is inefficiently high and that its level depends systematically on the distribution of damage sensitivities: intriguingly, holding average damages constant, more evenly distributed damages lead to more long-run pollution. We next show, among others, that while polarized damages reduce equilibrium pollution, they do generate distributional tensions. We therefore suggest a mechanism combining Pigouvian taxation with lump-sum transfers that can found an International Environment Agreement redistributing gains and implementing the first-best allocation despite divergent incentives." |
| Keywords: | "Transboundary pollution; Differential games; Asymmetric players; International Envionmental agreements" |
| JEL: | C62 C71 H23 F53 Q53 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:26-11 |
| By: | Estruch-Garcia, Cèlia; Solé-Ollé, Albert; Tassinari, Filippo; Viladecans-Marsal, Elisabet |
| Abstract: | This paper examines the local electoral effects of Barcelona's Superblocks pedestrianization policy, an initiative aimed at reducing car traffic and air pollution while enhancing urban livability. Using census tract-level data from local elections, we analyze its impact on support for the incumbent mayor. We find a significant increase in votes in tracts directly affected by the policy, which also extends to neighboring areas. Traffic was not displaced to adjacent tracts, which also saw reduced pollution, suggesting that concerns about congestion did not materialize and may explain the absence of electoral backlash. Heterogeneity analysis indicates that the effects are stronger in tracts with higher levels of education and that they are not affected by gentrification or mobility disruptions. Overall, our results highlight that voters respond to localized improvements in traffic, air quality, and public spaces, offering insights into the political economy of urban climate policies and public support for green interventions. |
| Keywords: | Cities; Elections; Green Policies |
| JEL: | D72 Q58 R53 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19925 |
| By: | Francesco Furini (University of Hamburg, Germany); Michael Finus (University of Graz, Austria) |
| Abstract: | This review characterizes the governance challenges arising from the potential deployment of solar geoengineering. We survey existing theoretical models that analyze the strategic incentives such technologies generate. In particular, we examine the conditions under which the "free-driver problem", where a single nation or small group of nations initiates solar geoengineering without the consent of the international community, might be avoided or mitigated and explore the implications for international climate governance when mitigation and solar geoengineering policies interact. |
| Keywords: | solar geoengineering, "public gob", free-riding vs free-driving, climate agreements, mitigation-geoengineering games |
| JEL: | H41 C71 C72 Q54 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:grz:wpaper:2026-13 |
| By: | Mireille Razafindrakoto (LEDa-DIAL, IRD, CNRS, Universite Paris-Dauphine, Universite PSL, Paris); François Roubaud (LEDa-DIAL, IRD, CNRS, Universite Paris-Dauphine, Universite PSL, Paris); Florent Bédécarrats; Stéphanie Carrière; Emmanuel Pannier |
| Abstract: | Despite repeated calls for urgent action to address biodiversity loss, the resounding verdict is that most conservation policies, in particular their main policy measure, Protected Areas (PAs), have failed to halt environmental degradation and achieve meaningful social outcomes. Yet, the international community has committed to extending PA coverage to 30% of the planet by 2030, and with one-third of the Global South’s population already living in or near a PA, this proportion is set to become a majority. In view of this, the current practice, which is supposed to promote sustainable development but is problematic, consists of juxtaposing socioeconomic policies and environmental policies, often regarded as mutually antagonistic, without considering a comprehensive view of governance issues. This article reviews the impact of PAs on biodiversity and the populations’ living conditions and identifies the knowledge gaps, before looking into why biodiversity conservation has been prioritised, inconclusively, to the detriment of local sociopolitical and economic dynamics and why the narrow principle of ‘inclusive governance’, more words than deeds, falls far short of the mark. The traditional approach, which is blind to the fact that conservation and development objectives are embedded within power relations and a broader sociopolitical dynamic, dominated by extractivist and capitalist logic, should be challenged. We propose a novel analytical framework with an operational methodological approach grounded in critical political ecology in order to take a bottom-up approach rooted in a territory and improve our understanding of the complex interactions between local socioecological, socioeconomic and sociopolitical concerns. This approach will help put in place more effective and inclusive policies consistent with local livelihoods, ways of life, equity and justice. |
| Keywords: | Protected areas, Methodological Framework, Monitoring, Interdisciplinarity, Conservation-development system |
| JEL: | Q01 Q56 C81 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:dia:wpaper:dt202605 |
| By: | Liang, Xiaomeng; Yang, Chenyujing; Xue, Yongji |
| Abstract: | Balancing ecological restoration and grain production is a central challenge in sustainable land management, particularly in arid and semi-arid regions. Large-scale ecological engineering programs are often perceived as potentially limiting agricultural output due to land-use competition; however, causal evidence regarding their long-term impacts and underlying mechanisms remains limited. This study examines whether and how China’s Three-North Shelter Forest Program (TNSFP) influences grain production. Guided by the social–ecological systems framework and ecosystem-services theory, we hypothesize that ecological restoration enhances agricultural output through improvements in ecosystem services rather than by crowding out cropland. Using county-level panel data from 2000 to 2022, we employ a difference-in-differences (DID) model, parallel trend test, placebo test, and multiple robustness checks to estimate causal effects. Mechanism analysis integrates grain production data with satellite-derived vegetation indices, air quality indicators, and ecosystem quality measures. Our results indicate that the TNSFP significantly increases county-level grain production, with effects robust to controls for agricultural inputs, climate, and socioeconomic conditions. Mechanism analyses reveal that enhanced vegetation cover, improved air quality, and overall ecosystem quality jointly promote grain production. Significant regional heterogeneity is observed: the policy effect is stronger in Northeast and North China, positively moderated by cropland area and negatively moderated by the relief degree of land surface. These findings provide new causal evidence that ecological restoration can achieve synergistic gains in land restoration and food production, offering practical implications for sustainable land management in dryland regions. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404477 |
| By: | Hsieh, Hsin-Chieh; Gramig, Benjamin M. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404905 |
| By: | Profitis, Romanos; Schoenle, Raphael |
| Abstract: | This paper analyzes how fiscal and macroprudential policies can jointly stabilize inflation, support output, and contain emissions after a surge in fossil fuel prices. In a New-Keynesian E-DSGE model with disaggregated energy sectors and banking frictions, we compare energy production subsidies, energy consumption subsidies, and carbon subsidies. While fiscal measures alone often raise carbon emissions, pairing them with sector-specific macroprudential tools — taxes on dirty-energy loans or subsidies on clean-energy loans — reallocates credit, strengthens macroeconomic stabilization, and curbs emissions volatility. Welfare analysis shows that combining production subsidies with “green†macroprudential support substantially reduces household welfare losses relative to fiscal measures alone. Our results show that carefully designed policy packages can cushion macroeconomic shocks without sacrificing climate objectives. |
| JEL: | E52 E62 H23 Q43 Q58 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20215 |
| By: | Hochmuth, Philipp; Krusell, Per; Mitman, Kurt |
| Abstract: | The EU has embarked on an ambitious path toward climate neutrality. How difficult will this transition be for the population as a whole and different subsets of consumers? This paper investigates this question using a dynamic general equilibrium model that captures a key feature of energy consumption: the relative energy content in one's consumption basket falls significantly as a function of one's relative income. Thus, poorer consumers are expected to be hit harder by the higher energy prices that we anticipate over the next few decades. In the model, energy — a complementary input to capital and labor — can be produced either using fossil fuel or a "green'" technology. We represent the EU policy in terms of a tax on fossil fuel and show that the European Commission's Fit-for-55 package implies a 168% tax on the fossil-based technology. The output losses from this tax are substantial, and GDP is 9.3% lower in the new steady state. The burden falls primarily on the poor agent who is 50% more worse off than the rich agent. The output losses can be compensated for if the economy achieves a 1.49% annual increase in energy efficiency as outlined in the Fit-for-55 package. |
| Keywords: | Green transition; Carbon tax |
| JEL: | E61 Q43 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20216 |
| By: | , KuoRayMao; Zhang, Qian; Weeks, Nefratiri |
| Abstract: | Environmental justice for China’s rural populations is especially important in the context of China’s multifaceted environmental crises as existing disparities have exacerbated the unequal distribution of economic wealth and environmental harm between rural and urban communities. This chapter examines two environmental intervention programs in China to evaluate environmental justice outcomes under authoritarian environmentalism. Based on 136 in-depth interviews as well as government documents, official statistics, and reports from state-owned media in China between 2009 and 2016, our research demonstrates that the exertion of authoritarian state power in green transition may worsen environmental inequalities and dispossess the underprivileged rural populace in China. The findings indicate that just transition in China requires a multi-scalar examination on how state-led economic development initiatives and the material interests of the centralized bureaucracy shape the formulation and implementation of conservation programs and environmental regulation. We suggest that instead of viewing local communities as problems to be fixed by arbitrary administrative measures, the central state should utilize government organized NGOs affiliated with national ministries and grassroots environmental NGOs to incorporate community-based perspectives into program formulation and implementation. Institutional innovations that reconceptualize authoritarian state environmental intervention as constant responses and adjustments involving multiple stakeholders will be essential for just transitions in China and beyond. |
| Date: | 2026–07–24 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:wgjbq_v1 |
| By: | Alessandrini, Fabio; Jondeau, Eric; Vallée, Lou-Salomé |
| Abstract: | This paper explores the integration of Nationally Determined Contributions (NDCs) into the construction of net-zero (NZ) portfolios of sovereign bonds. Based on both backward-looking (2015–2021) and forward-looking (2021–2030) analyses, we compare the effectiveness of scenarios using constant greenhouse gas (GHG) intensities and NDC-based trajectories in reducing the portfolio’s GHG intensity while minimizing the tracking error relative to the business-as-usual benchmark. The backward-looking exercise reveals that NDC-based portfolios achieve similar GHG intensity reductions with lower tracking errors compared to constant-intensity scenarios, demonstrating their efficacy in building an NZ portfolio. Conversely, constant-intensity strategies require more aggressive rebalancing, leading to higher tracking errors and uneven allocations. In the forward-looking exercise, the more ambitious second round of NDCs announced before COP26 enables substantial GHG intensity reductions at a marginal financial cost. Overall, our results highlight the potential of NDCs as a forward-looking tool to align sovereign bond portfolios with climate objectives while maintaining financial performance. However, imposing weight restrictions by country or region, to ensure more equitable investment between advanced and emerging economies, significantly limits the ability to meet reduction targets and increases tracking errors. |
| Keywords: | Net-zero investment; Portfolio carbon footprint; Climate change; Nationally determined contributions |
| JEL: | G11 Q56 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20016 |
| By: | Nicoletta D'Alterio; Maria Ferrara; Alessia Paccagnini |
| Abstract: | Fiscal consolidation and decarbonization are two of the European Union's most pressing - and typically separately analyzed—policy challenges. This paper asks whether they can be pursued jointly, and at what distributional cost. We develop a Two-Agent New Keynesian model augmented with an environmental sector and compare a standard expenditure-based consolidation with an environmental-fiscal policy mix in which the carbon tax responds systematically to the debt gap, becoming an active consolidation instrument. The policy mix reaches the debt target faster under a pure announcement of future tax cuts (22 rather than 35 quarters), delivers a substantially larger reduction in emissions at a comparable output cost, generates a smaller transitional rise in consumption inequality, and lowers inequality in the long run. Automatic stabilizers cushion financially constrained households, roughly halving the transitional rise in inequality, while countercyclical monetary policy contains welfare costs for both household types. Debt reduction and decarbonization thus emerge as complementary, rather than competing, objectives under a coordinated policy design. |
| Keywords: | fiscal consolidation, environmental policies, inequality, DSGE |
| JEL: | E62 E63 Q58 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2026-63 |
| By: | Sapkota, Sushil; Gitungwa, Henriette; Gustafson, Christopher; Rose, Devin |
| Abstract: | Pulses provide well-documented health and environmental benefits, yet remain underconsumed. In fact, pulses are a critical element in the movement to shift diets towards plant-based foods to improve human and environmental health: they are both a protein food and a vegetable food. While surveys and choice experiments show significant percentages of consumers interested in pulse-containing foods, sales data do not reflect these claims. A potential explanation is that simple research environments eliminate cognitive or search costs for attributes that constitute a small percentage of products. Recent work on rational inattention theory predicts that these costs will lead decision-makers to limit the set of items/information they consider. In the food retail environments, attention is likely to be driven by individual priorities (e.g., taste, health, price sensitivity, etc.). To examine these mechanisms, we conducted an online experiment with 831 U.S. adults in which participants selected foods in large product sets (50 items/category) across six product categories under two pulse-prevalence conditions (10% vs. 20% of products). Immediately after completing the food choices, participants completed an ecological momentary assessment-style question capturing what they were actively thinking about while making food choices. They then rated how important taste, food prices, healthiness, and environmental impact are when making food choices. Mixed-effects logit and mediation analyses indicate that both environmental and health importance ratings are positively associated with pulse product selection. Environmental importance also exhibits a statistically significant indirect effect through active consideration of environment during choice, while the indirect pathway through active consideration of health is not statistically significant. Increasing pulse prevalence more than doubles the odds of choosing pulses without affecting self-reported consideration. Overall, the findings suggest that policies highlighting environmental attributes while increasing the availability of pulse-based products may be particularly effective in encouraging sustainable food choices, as they target both attention to sustainability information and the accessibility of sustainable options. |
| Keywords: | Institutional and Behavioral Economics |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404428 |
| By: | Haqiqi, Iman; Doelman, Jonathan |
| Abstract: | Global conservation initiatives, including the Kunming–Montreal Global Framework's 30×30 target, require policy instruments that determine not only how much land is protected, but also where protection occurs. Yet most economic assessments of conservation policies rely on highly aggregated representations of land use that cannot capture spatial heterogeneity in ecosystem value, agricultural productivity, or opportunity costs. As a result, they provide limited insight into how alternative conservation designs influence land-use displacement, trade, and economic outcomes. This paper evaluates the economic and land-use consequences of alternative spatial conservation policies using a high-resolution gridded equilibrium model of global agriculture. We implement a set of land-conversion taxes within SIMPLE-G, a spatially explicit modeling framework that represents agricultural production, consumption, trade, and land allocation across 2.3 million grid cells worldwide. All policy scenarios achieve the same conservation objective, maintaining at least 30 percent natural land within each region-biome, but differ in their degree of spatial targeting. We compare uniform taxes applied broadly across landscapes with priority-targeted and differentiated tax schemes that concentrate conservation efforts in ecologically valuable locations. The results demonstrate that the spatial design of conservation policy is a first-order determinant of economic and environmental outcomes. Priority-targeted policies achieve conservation goals more efficiently by concentrating land withdrawal in high-value areas, but they also generate greater leakage through the relocation of agricultural production and land-use change to non-target regions. Uniform policies reduce leakage by spreading adjustments more broadly, although at higher aggregate economic cost. We further show that intermediate policy designs defined at the biome-region level capture much of the efficiency gain associated with highly targeted interventions while reducing implementation complexity. These findings highlight the importance of explicitly accounting for spatial heterogeneity and market-mediated feedbacks when evaluating large-scale conservation policies. More broadly, they demonstrate that conservation outcomes depend not only on the extent of protection but also on the spatial allocation of conservation effort within an interconnected global food system. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404494 |
| By: | Davide Martino; Francesco Zambonin; Nuve Yazgan |
| Abstract: | Europe faces a dual challenge: the climate crisis and a persistent housing crisis, both of which converge in the urgent need to renovate aging urban housing stock. While energy-efficient renovations are essential to meet EU carbon neutrality targets by 2050, they risk triggering “renovictions”, the displacement of vulnerable residents due to rising rents and property values. This policy study shows how these renovictions can be avoided. We summarise scientific literature and survey best practices and cautionary tales from three cities across Europe: Amsterdam, Athens, and Paris. These are three large capitals, with historic centres protected by heritage status, and facing the pressure of (over)tourism. We recommend that tenants should not pay for renovations, and identify alternative sources of funding for different types of housing. The overall principle is that any money entering the housing sector should remain in the housing sector. Our recommendations are intended for policymakers at the local and European level. Local administrations should learn from each other, replicating successful policies like one-stop-shops to accompany renovations. The EU should use the policy levers that it already has to coordinate and facilitate policies at local level, namely by simplifying existing funding options or setting up publicly backed loan guarantees.Incremental, locally adapted policies—supported by EU coordination—are essential to ensure that the green transition in housing does not come at the expense of social justice. Policymakers must act to make European cities both sustainable and inclusive for all residents. |
| Date: | 2026–07–20 |
| URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/412228 |
| By: | Da, Yabin; Chen, Yuanyuan; Qiu, Huanguang |
| Abstract: | China generates more than 3.8 billion tons of livestock and poultry manure annually, making manure one of the most important sources of agricultural nonpoint-source pollution. Since 2017, China has implemented a county-wide manure resource utilization pilot program, supported by substantial central fiscal transfers, to promote crop-livestock recycling, manure treatment facilities, and water-quality improvement. Yet water quality has not improved uniformly in key river basins, and several indicators have increased rather than declined. This paper treats the county-wide manure utilization pilot in Sichuan Province as a quasi-natural experiment and combines county-level panel data on lake and reservoir water quality from 2014 to 2023 with staggered difference-in-differences estimators. To separate local treatment effects from basin-level spillovers, we construct directed hydrological spatial weights from high-resolution digital elevation model (DEM) analysis of upstream-downstream runoff relationships. The results show strong indicator-specific heterogeneity. The policy significantly reduces total phosphorus (TP) and the permanganate index (PI), but increases total nitrogen (TN) and conductivity (Cond) in both lakes and reservoirs. Mechanism tests suggest that treatment facilities generate abatement benefits, while pilot counties also experience a substantial expansion in livestock scale, offsetting part of the environmental gains through additional nitrogen and dissolved-ion loads. Heterogeneity tests show larger nitrogen and ion-migration risks in areas with weaker cultivated-land carrying capacity, stronger precipitation-driven runoff, and better irrigation conditions. DEM-based spillover estimates further show that upstream pilots improve downstream composite water quality while increasing downstream TN, turbidity, and conductivity, consistent with selective abatement and pollution shifting. The paper contributes a hydrologically directed policy-evaluation framework for agricultural environmental regulation and provides evidence for basin-scale coordination in manure management. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404484 |
| By: | Piatti, Ilaria; Shapiro, Joel; Wang, Xuan |
| Abstract: | We model investors who take into account the amount of public goods firms produce (e.g., carbon emission reductions). In an asset pricing model with production and public goods, we find that more environmentally conscious investors invest more overall, invest more in clean firms, and may invest more in dirty firms. The magnitude and sign of CAPM alphas depends on a comparison between a firm's systematic risk and its relative public good contribution. There is underprovision of the public good. Government provision crowds out private provision, and may reduce overall public good provision. Government provision may be dominated by green subsidies. |
| Keywords: | Sustainable finance |
| JEL: | G11 G12 H41 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20133 |
| By: | Alexander Rincón Ruiz |
| Abstract: | This article explores the concept of Diverse Economies and Other Economies as a response to the environmental and social crisis. From a systemic and interdependent perspective, it argues that the hegemonic economic model has led the planet into an unprecedented ecological crisis, rooted in the commodification of nature, capital accumulation, and cultural homogenization. Through theoretical analysis and territorial experiences in Colombia (5 months traveling through 15 municipalities in Colombia), it suggests that Diverse Economies and Other Economies offer viable alternatives grounded in reciprocity, ecological justice, and the regeneration of ecosystems. The article highlights community-based, solidarity, peasant, Afro-descendant, and Indigenous economic practices, as well as principles such as ecological interdependence, territorial autonomy, and the care economy. Finally, it argues that Colombia, due to its biocultural richness and territorial resistances, can play a key role in the transition toward sustainable and resilient economic models, contributing perspectives from the pluriverse and post-development. |
| Keywords: | Diverse Economies; Other Economies; Environmental Crisis; Ecological Regeneration; Solidarity Economy; Colombia; Pluriverse |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:col:000176:023145 |
| By: | Muhammad Syukri; Hening Wikan Sawiji |
| Keywords: | just energy transition, gender equality, inclusion, economic policy, East Kalimantan |
| URL: | https://d.repec.org/n?u=RePEc:agg:wpaper:4593 |
| By: | Tirgari, Mohammad; Nejadhashemi, A. Pouyan; Harmel, R. Daren |
| Abstract: | The agricultural economics literature has overlooked the development of a normative approach to describe farmers’ non-monotonic behavior and preferences toward environmental strategies. This gap has become increasingly important as emerging global paradigms related to nitrogen planetary boundaries and the Sustainable Development Goals (SDGs) call for nitrogen regulatory policies that promote pro-environmental behavior. Consequently, any disruption to farmers’ utility may significantly hinder the implementation of strategies based on Less Environmentally Impactful Diets (LEID-based strategies). This study introduces a novel utility function and extends the normative approach for describing farmers’ preferences regarding the trade-off between economic gains and environmental benefits. The performance of the proposed approach is evaluated using metadata from 421 studies conducted on corn farms in the United States and Canada. The utility function and the marginal rate of substitution between corn yield and the LEID index identify four assumptions underlying farmers’ behavioral rules: (i) the marginal utility of crop yield increases as yield rises but declines through its interaction with nitrogen leaching; (ii) the marginal utility of nitrogen leaching increases as leaching intensifies, although this effect is moderated by its interaction with crop yield; (iii) the marginal utilities of crop yield and nitrogen leaching exhibit a negative interaction, where the inverse relationship indicates substitutability between economic gains and environmental benefits; and (iv) nitrogen leaching exhibits diminishing marginal utility as it approaches the drainage-discharge threshold. The results show that the estimated marginal utility of leid, an index representing the production of less environmentally impactful diets, has an inverse relationship with the elasticity between yield and nitrogen leaching. This finding supports the positive effect of pro-environmental behavior on farmers’ utility among those who successfully reduce nitrogen leaching through LEID-based strategies. The structural properties of the proposed utility function therefore provide theoretical support for analyzing farmers’ behavioral responses to LEID-based strategies. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404781 |
| By: | Althouse, Jeffrey; Bedossa, Bastien; Espagne, Etienne; Faucher, Léna; Gonon, Morgane; Kedward, Katie; Modica Scala, Angela; Poupard, Adam; Svartzman, Romain |
| Abstract: | While the macroeconomic and financial implications of climate change have long been debated by researchers as well as economic and financial decision-makers, the potential macro-critical impacts posed by biodiversity loss and the structural shift towards an economy that protects - rather than degrades - nature remain underexplored. In fact, recent studies struggle to explain why even major ecosystem disruptions show only minor macroeconomic and financial impacts in their models. Against this backdrop, this paper reviews existing biodiversity-economy scenarios and modeling approaches to assess their ability to capture the macro-criticality of nature-related transition impacts. We highlight two key gaps: (i) The prevailing tendency to adopt a narrow approach to nature-related impacts, predominantly focusing on the agricultural sector, fails to account for the multiple sectors that could also be affected—either directly or through value chain linkages. Moreover, this approach overlooks the broader socioeconomic transformations that may be necessary to facilitate a meaningful transition toward sustainability; and (ii) The limits of equilibrium-based models, which systematically underestimate the economic impact of nature-related impacts due to their focus on optimization under constraints, their assumptions about substitutability, and their limited representation of both the financial sector and propagations of shocks throughout value chains. We then make three contributions to start addressing these shortcomings: First, we provide a thematic summary of a broad range of nature-related transition scenarios, to support future economic assessments of nature loss or transition pathways through a more comprehensive approach. Second, we explore the potential of diverse non-equilibrium ecological macroeconomic models to reflect the interdependencies between biodiversity, economic activity, and financial stability. Rather than forcing automatic convergence towards an optimal state, these models track the dynamic evolution of simulated trajectories, thereby better capturing how nature loss can become macro-critical. Third, we apply these insights through four case studies to illustrate how nature-related impacts can propagate through production and financial networks, with potentially large positive or negative impacts at the macro level. We do so by using both: relatively simple tools (based on input-output tables) to assess short-term economic and financial exposures to specific scenarios; and two of the ecological macroeconomic models mentioned above for medium-term assessments. Our findings underscore the need to consider both a broad range of scenarios and alternative modeling approaches to identify the potential macro-criticality of nature. Doing so will be essential to begin to meaningfully integrate nature into economic and financial policymaking, and support efforts to halt and reverse biodiversity loss. |
| Keywords: | Biodiversity; Macro-financial stability; Input-output linkages; Disequilibrium models |
| JEL: | C67 D50 D57 E17 Q57 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19987 |
| By: | Chen, Qiaoyi; Ryan, Nicholas; Xu, Daniel Yi |
| Abstract: | We study carbon offsets sold by firms in China under the Clean Development Mechanism (CDM).We find that offset-selling firms, meant to cut carbon emissions, instead increase them by 49% after starting an offset project. In a model of firm investment decisions and offset review, we estimate that CDM firms increase emissions due to both the selection of higher-growth firms into projects (35 pp) and because offset projects themselves boost firm growth and therefore emissions (14 pp). The CDM reduces global surplus by causing damages from increased emissions four times greater than private gains from trade in the offset market. |
| Keywords: | Carbon offsets |
| JEL: | Q56 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20126 |
| By: | van der Ploeg, Frederick; Venables, Anthony |
| Abstract: | With strategic complementarities stemming from peer effects in demand or technological spillovers, propagation and amplification mechanisms increase the effectiveness of climate policies. This suggests that climate goals can be met with smaller policy interventions. However, if there are multiple equilibria, radical policies are needed to shift the economy from a high-emissions to a low-emissions path. Once the radical shift has taken place these policies can be withdrawn. More generally, such policies can set in motion social, technological, and political tipping points. The paper develops an analytical framework within which policies to achieve these tipping points are studied, looking at the extended role for tax and subsidy policies, at dynamics of change, and at policy under uncertainty. Our proposals offer a complementary perspective to scholars that have emphasised insights from the literature on early warning signals to advocate sensitive intervention points to obtain more effective and more transformative climate policies. |
| JEL: | Q54 Q58 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19969 |
| By: | Tatjana Dahlhaus (Bank of Canada); Malik Shukayev (University of Alberta); Alexander Ueberfeldt (Bank of Canada) |
| Abstract: | Natural disasters pose complex challenges for monetary policy in resource-rich small open economies. Using an open-economy dynamic stochastic general equilibrium model calibrated to Canada, we embed stochastic disaster shocks affecting capital, productivity, and the commodity sector. Drawing on detailed historical data, we quantify disaster-specific transmission channels and show that most disasters act as supply shocks, reducing output and modestly raising inflation. The magnitude and persistence of these effects depend on disaster type, sectoral exposure, and spillovers through global trade and terms-of-trade channels. The framework provides a forward-looking assessment of climate-related risks and their implications for monetary policy. |
| Keywords: | Natural Disasters; Climate Shocks; Monetary Policy Trade-offs; DSGE Model; Terms-of-trade Effects |
| JEL: | E52 Q54 F41 E12 E31 C68 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:ris:albaec:023232 |
| By: | Gharib, Mariam; Bergtold, Jason; Avocat, Helene; Caldas, Marcellus M.; Joslin, Audrey |
| Abstract: | CRP persistence, the length of time land under CRP land management practices remains under similar land management after contract expiration, ranges between 15 to 66% of previously enrolled land. Thus, longer-term environmental benefits from CRP on the land depend on how the land is managed after contract expiration. Research has examined what influences CRP persistence, but little literature extensively examines the effect of environmental factors on CRP persistence. We examine the influence of wildfires and drought, as well as surrounding land use, on CRP persistence. To study this, we constructed a 10-year unique geodatabase at the CRP parcel level and used a mixed effects Weibull accelerated failure time model (AFTM) to examine CRP persistence. We find that CRP persistence averages about 3 years, and most conversions of land practices away from those under prior CRP contracts happen within the first 2 years after contract expiration. CRP persistence is higher for expired CRP parcels located in regions with long-term to mid-range drought conditions, parcels that have been burnt or been in proximity to a megafire event. CRP persistence increases for every increase in percentage of grassland and open water for the surrounding land and decreases when bordered by crops. There is a need for policy intervention within the first two years after contract expiration to ensure the environmental benefits of conservation are retained in the longer term. This can be achieved through education to encourage landowners to retain CRP-based practices, enhancing wildfire mitigation land management efforts on both CRP and post-CRP lands, as well as increasing the likelihood of reenrollment for CRP lands classified as risky areas, such as those that are less connected or surrounded by crop production, located in wetlands, and during periods of short-term drought. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404737 |
| By: | Bremer, Björn (Central European University); Chwieroth, Jeffrey; Mancosu, Anita |
| Abstract: | Climate change presents unelected central banks with an acute dilemma: acting on climate change risks charges of mandate overreach, while failing to act risks charges of institutional failure. Yet public opinion on green central banking remains un- studied. We address this gap with two survey experiments in Germany and the Netherlands. A conjoint experiment shows that adding environmental condition- ality to corporate bond purchases significantly increases support for quantitative easing, suggesting that greening can rehabilitate contested unconventional policies. A framing experiment reveals that institutional objections about price stability and democratic legitimacy erode support more than distributive objections about job losses or asset devaluation, inverting expectations from the climate politics literature. Respondents who trust the central bank most are paradoxically most responsive to arguments for and against it. Public trust in delegated institutions is thus not a blank check; it is a license granted on terms, policed most attentively by the institution’s own supporters. |
| Date: | 2026–06–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:jmru2_v1 |
| By: | Xie, Ziqing; Sawerengera, Jane; Wang, Jingjing |
| Abstract: | In a rapidly growing world, conventional agriculture is under pressure from climate change and is struggling to meet the growing food demand while protecting the environment. Adopting new technologies like Controlled Environment Agriculture (CEA), where farming is done in controlled environments shielded from external climate fluctuations, can ensure climate resilience. This paper develops a dynamic bioeconomic model of aquaponic production in which fish biomass is both a harvestable stock and a source of nutrients for plant production. The model links fish growth, waste generation, plant nutrient availability, fertilizer substitution, repeated plant harvests, and terminal fish harvest timing in a unified private-profit framework. The central mechanism is intertemporal: fish biomass evolves over a long production cycle, while leafy vegetables can be harvested repeatedly over shorter cycles. As fish biomass increases, fish-generated waste raises plant-available nutrients and can reduce the need for purchased fertilizer. A calibrated tilapia-kale application illustrates the model. In the baseline simulation, the profit-maximizing tilapia harvest occurs after approximately 262 days, while kale is harvested on a 27-day cycle. Repeated kale harvests generate revenue before the terminal fish harvest and therefore affect farm cash flow as well as fertilizer demand. Sensitivity analysis shows that fish profit is most responsive to biological growth conditions, especially temperature, and to revenue-side parameters such as fish price and harvestable-output share. Kale profit is driven primarily by crop price, harvestable yield, and production scale. The results show that the value of aquaponic integration depends not only on nutrient recycling, but also on the timing of biological growth, nutrient availability, and harvest decisions. |
| Keywords: | Agribusiness |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404315 |
| By: | Youngjin Hong; In Kyung Kim; Frank Verboven |
| Abstract: | We develop a framework to compare the relative effectiveness of subsidizing alternative emission-reducing technologies. We show that an intermediate technology may reduce emissions more effectively than the cleanest technology if it induces sufficiently greater substitution away from the prevailing high-emission technology. We apply the framework to the South Korean passenger vehicle market using a demand model that incorporates mileage heterogeneity, an important determinant of fuel-type choice. First, reallocating existing subsidies from battery electric vehicles (BEVs), the cleanest technology, to hybrid electric vehicles (HEVs), an intermediate technology, would reduce total greenhouse gas emissions by an additional 47%. Second, for a BEV-focused subsidy policy to outperform an HEV-focused policy, the carbon intensity of electricity generation would need to fall by approximately 45%. Our findings suggest that HEV subsidies remain more effective than BEV subsidies until consumers become sufficiently willing to switch to BEVs or electricity generation becomes sufficiently decarbonized. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.14446 |
| By: | Sara MacLennan |
| Abstract: | The natural environment has been shown to improve wellbeing, mental and physical health and a range of wider positive outcomes. But what can the government do? And are investments in "nature" value for money? There are a wide range of policy interventions which effectively protect and improve the natural environment and enhance the benefits which flow from it. Many important interventions protect the natural environment in oceans, rivers, mountains and forests, safeguarding wellbeing for current and future generations. In this paper, we explore the value for money of 3 selected potential options for government investment: - converting small areas of vacant, unused land to new green space and parkland; - maintaining blue spaces to be accessible for public visits; - example schemes to encourage access to green space and engagement with nature. |
| Date: | 2026–07–23 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepops:76 |
| By: | Deka, Anubrata; Banerjee, Simanti; Floyd, Theresa |
| Abstract: | In this bulletin, we have provided a descriptive analysis of the perceptions of conservation professionals in Nebraska and Montana, two states where the rangeland ecosystem is facing a large-scale transition from native grasses to invasive trees and grasses. This analysis provides an initial understanding of the different factors that can influence adoption of policy initiatives by conservation professionals. When considered alongside insights into the management behaviors of ranchers—whose productivity and profitability are adversely affected by these transitions—this information helps form a more comprehensive picture of the ecological and economic impacts of UVTs, as well as strategies for their mitigation. In the next step, our goal is to analyze data from questions about respondents’ social networks to evaluate how the structure and composition of their networks influence policy priorities and barriers, and how those are related to their perceptions of trust. This analysis will be conducted for both states while controlling for respondent-level characteristics and other variables in the data set, thereby deepening our understanding of how personal, environmental, and social factors influence professionals’ approaches to UVT management on the landscape. |
| Keywords: | Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies, Sustainability |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:nbaece:404860 |
| By: | Basaglia, Piero; Berestycki, Clara; Carattini, Stefano; Dechezleprêtre, Antoine; Kruse, Tobias |
| Abstract: | Despite decades of global attention, effective climate policy implementation remains challenging, with firms and investors often grappling with uncertainty about potential policymaking in addition to actual policy changes. This paper introduces a novel Climate Policy Uncertainty (CPU) index, along with a set of sub-indices capturing the direction of uncertainty, and assesses the impacts of CPU on firm and investor behavior in the United States. Leveraging variation in our indices over the past three decades, we find that uncertainty surrounding climate policies negatively impacts firm financial outcomes, innovation, and stock-market outcomes for firms that are in CO2-intensive sectors, i.e. exposed to climate policy. Higher CPU reduces capital expenditures, employment, and research and development, which in turn translates to a decrease in innovation (patent filings), particularly for clean technologies. On the stock market, CPU leads to increased stock volatility and decreased returns for exposed firms. This negative effect of CPU is distinct from the impact of changes and salience in climate policy as well as variations in economic policy uncertainty. These findings underscore the economic costs of climate policy uncertainty, which delays the low-carbon transition by deterring investment and innovation. |
| Keywords: | Uncertainty; Climate policy; Innovation; Firm decision-making; Investor beliefs |
| JEL: | D22 D83 G10 O32 Q58 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20160 |
| By: | Banner, William |
| Abstract: | Gender-responsive climate finance is growing in prominence, yet remains under-examined in academic research – particularly in the context of Small Island Developing States (SIDS). This research addresses this gap by applying a mixed-methods approach to analysing climate finance projects in Melanesia and Polynesia. A novel Gender-Responsiveness Index (GRI) was developed through content analysis to assess the quality of gender integration in project design. This was paired with econometric analysis to evaluate how gender-responsive design influences real-world gender outcomes. The findings reveal significant variation in gender-responsiveness across funds, countries, and project characteristics. Stronger gender integration in design was generally associated with stronger gender-related outcomes, but not all dimensions - such as capacity building or gender-specific funding - were equally influential. Finally, the study finds clear evidence that gender integration in climate finance has improved since the 2014 Lima Work Programme, underscoring the importance of international policy frameworks in driving progress. |
| Keywords: | Climate finance; climate adaptation; climate mitigation; climate change and gender; climate justice; SIDS; Pacific Island Countries; Melanesia; Polynesia |
| JEL: | J16 O13 O19 Q54 Q56 Y4 |
| Date: | 2025–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127897 |
| By: | Tatjana Dahlhaus; Alexander Ueberfeldt; Malik Shukayev |
| Abstract: | Natural disasters pose complex challenges for monetary policy in resource-rich small open economies. Using an open-economy dynamic stochastic general equilibrium model calibrated to Canada, we embed stochastic disaster shocks affecting capital, productivity, and the commodity sector. Drawing on detailed historical data, we quantify disaster-specific transmission channels and show that most disasters act as supply shocks, reducing output and modestly raising inflation. The magnitude and persistence of these effects depend on disaster type, sectoral exposure, and spillovers through global trade and terms-of-trade channels. The framework provides a forward-looking assessment of climate-related risks and their implications for monetary policy. |
| Keywords: | Models and tools; Economic models; Monetary policy; Monetary policy framework and transmission; Structural challenges; Climate change |
| JEL: | C C1 C11 C3 C32 D D6 D63 E E5 E52 Q Q5 Q54 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocawp:26-28 |
| By: | Keusch, Thomas; Timmermans, Oscar |
| Abstract: | We examine whether financial performance metrics in CEO compensation contracts provide incentives for environmental performance improvement, and the conditions under which such incentives arise. Using toxic pollution as our primary outcome, we find that relative financial performance evaluation (RPE) is negatively associated with future pollution in firms whose environmental impacts are subject to greater scrutiny, whereas other financial incentives, such as equity portfolio delta and new equity grants, show no such association. This pattern is consistent with theories of corporate social responsibility and, as supported by complementary tests, with the idea that stronger environmental performance can improve a firm’s relative financial position by attracting customers, employees, and shareholders from less responsible peers. We further show that the RPE-pollution relation varies predictably with various RPE plan characteristics and stakeholder switching costs, persists when we instrument for the use of RPE, and operates in part through increased environmental innovation. |
| Keywords: | CEO compensation;relative performance evaluation;corporate social responsibility;sustainability;ESG;stakeholder monitoring |
| JEL: | G34 M41 M52 Q52 Q56 |
| Date: | 2026–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:139003 |
| By: | Khachatur Babayan (Burnaby Mountain Secondary School) |
| Abstract: | This paper explores how artificial intelligence (AI) can support everyday environmental behavior through a narrative case study of one high-school student who transformed a small apartment balcony into a circular micro-garden system. Using kitchen scraps, recycled containers and free AI tools such as ChatGPT and QualiGPT, the student created a household loop where waste became inputs, plants reduced packaging demand and AI guided efficient decision-making. The project demonstrates how AI supports real-time environmental learning by offering personalized explanations, troubleshooting plant-health issues through image analysis and reducing uncertainty around recycling choices. Findings show that AI increased confidence, reduced resource waste and strengthened long-term thinking, which are the key principles in Environmental Economics. While small in scale, the micro-garden functioned as a miniature circular economy shaped by AI-enhanced decision-making. The study suggests that when AI meets hands-on sustainability tasks, teenagers can meaningfully participate in environmental stewardship, reducing waste and practicing household-level resource optimization. |
| Keywords: | Artificial intelligence, Circular economy, Environmental behavior, Micro-gardening, Sustainability |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:15816983 |
| By: | Campante-Vale, Ricardo; Fontes, Luiz Felipe; Roost, Stefanie; Tebaldi, Raquel |
| Abstract: | We study the labor market effects of a major flood disaster in Brazil and whether a temporary labor-retention schemePrograma Emergencial de Apoio Financeiro (PEAF)mitigated these effects by providing wage subsidies while requiring firms to retain covered workers. Drawing on administrative data, we use a matched event-study design that compares workers in flood-affected establishments with and without PEAF coverage to matched workers in non-affected establishments. Direct flood exposure reduced formal employment among unprotected workers by about 2 percentage points and increased job switching, indicating rapid reallocation to other formal employers. PEAF increased employment by 2.4 percentage points relative to the counterfactual of flood exposure without program protection. It also reduced reliance on unemployment insurance, consistent with its effect on employment retention. Earnings effects are more nuanced: PEAF mitigated unconditional earnings losses through employment preservation, but earnings among retained workers declined, consistent with downward compensation adjustment within continuing jobs. Effects are concentrated in very small establishments and in sectors more exposed to disruption. The results show that labor-retention schemes can preserve employment after climate disasters, but that need not imply full income protection, a difference that is central to the design of policies aimed at mitigating the economic consequences of climate shocks. |
| JEL: | H25 J38 J65 J68 Q54 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14660 |
| By: | Duchoslav, Jan; Jamali, Andrew; Kumchulesi, Grace; Nagoli, Joseph |
| Abstract: | El Niño is a phase in an irregular periodic variation in winds and sea surface temperatures over the Pacific Ocean. It occurs on average every 2 to 7 years and typically lasts between 9 months and 2 years. El Niño affects global weather patterns, resulting in above-average precipitation in some places and droughts in others. Malawi and its neighbors typically experience drier than usual weather during El Niño, which often leads to poor growing conditions and below-average harvests (Anderson et al., 2023). In mid-June 2026, conditions in the Pacific Ocean have surpassed El Niño thresholds, and it is becoming increasingly probable that they will strengthen further (NOAA, 2026). |
| Keywords: | El Niño; vulnerability; climate change mitigation; financing; Malawi; Africa; Sub-Saharan Africa; Southern Africa |
| Date: | 2026–07–08 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:masspn:183710 |
| By: | Jan Janku; Tomas Karhanek; Simona Malovana; Ivan Trubelik |
| Abstract: | This paper examines whether chronic physical climate risk affects corporate credit allocation. We focus on drought, one of the most salient climate-related risks for the Czech economy, and combine granular AnaCredit data with district-level measures of drought-related agricultural losses. Using almost 6 million bank-firm-month observations for nearly 140, 000 firms between 2019 and 2023, we show that long-term drought exposure is associated with a significant contraction in new corporate lending. The effect is concentrated at the origination margin: newly originated credit declines by about 12 percent in drought-affected regions, while outstanding credit volumes adjust more gradually. The impact varies across bank-firm relationships, credit-exposure characteristics, and sectors, consistent with banks incorporating chronic physical climate risk primarily into new lending decisions rather than immediately reducing existing exposures. |
| Keywords: | Bank lending, Climate risk, Corporate credit, Drought, Loan origination, AnaCredit |
| JEL: | E51 G21 G32 Q54 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:cnb:wpaper:2026/11 |
| By: | Gessner, Johannes; Habla, Wolfgang; Ruebenacker, Benjamin; Wagner, Ulrich |
| Abstract: | Many European companies face the challenge of lowering CO2 emissions from their company car fleets. A promising lever is to increase the notoriously low electric usage of Plug-in Hybrid Electric Vehicles (PHEVs). This paper examines whether home charging infrastructure can help achieve these goals. We leverage quasi-experimental variation in the delivery and installation of home chargers to quantify the impact of this technology on energy use and CO2 emissions of PHEV company cars held by 856 employees of a large German company. Since fuel and electricity expenditures for these cars are covered by the employer, home charging mainly changes the non-monetary costs to an employee. We find that access to home charging increases electricity consumption by 317.9 ((±23.3) kWh per quarter and decreases fuel consumption by 97.97 ((±36.5) liters, reducing CO2 emissions by 38%. Moreover, access to home charging increases the employee's propensity to choose a Battery Electric Vehicle (BEV) upon renewal of the lease by 28.4 ((±25.6) percentage points. We use these estimates to compute the private levelized abatement costs of home chargers for a range of scenarios characterizing the diffusion of BEVs and the effect of the program on vehicle choice. With current tax-inclusive energy prices, home chargers break even for the company within eight to 16 years. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20069 |
| By: | Marijnissen, Wander; Schoenmaker, Dirk; Schramade, Willem |
| Abstract: | Companies face serious transition risks and opportunities, which put their futureproofness to the test. Current valuation ratios are not well suited to value those transition risks and opportunities. We argue that the solution lies in expanding financial-based valuation ratios with externalities (external impacts), which are good proxies for transition risks and opportunities. Building on impact accounting and valuation methods, we model a company’s integrated value, which combines financial, social and environmental value. This paper turns integrated value into a valuation ratio: the futureproofing ratio. To illustrate, we quantify the futureproofing ratios of 23 companies on the Amsterdam Stock Exchange. These estimates suggest that the futureproofing ratio varies significantly across companies and sectors, and provide valuable insight in the transition risk of a company’s business model. Company management and investors can use this ratio as a guide for investment decisions. |
| Keywords: | Valuation; Transition; Externalities; Carbon emissions |
| JEL: | D62 G31 G32 M41 Q52 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20243 |
| By: | Mr. William Oman; Etienne Espagne; Jean-Baptiste Fressoz |
| Abstract: | Global energy and materials are essential to the functioning of the economy and have significant implications for macroeconomics and the environment. At the same time, the world is not on track to meet Paris Agreement goals. This paper documents two stylized facts that connect these observations. First, the world economy is characterized by large embedded emissions and materials: different energies and materials are deeply entwined and interdependent. This has historically led to additive – rather than substitution – dynamics in energy and materials on a global scale. Second, historically there has been a strong positive correlation between efficiency in resource use and total resource use at a global scale. We synthesize these observations by introducing the Generalized Jevons Paradox (GJP). We argue that the GJP reflects the direct and indirect energy/material demand effects of long-term energy and material interdependencies, themselves shaped by market and geoeconomic power, trade arrangements, and financial factors. While future scenarios may diverge from historical data, including because of different population and growth trends, the GJP calls for caution in projecting energy and material flows within the energy transition framework, as it suggests that a declining share of fossil fuels in primary energy consumption can coexist with rising total fossil consumption, and thus rising global emissions – as observed since 2012. The GJP highlights the importance of policies to better allocate energy and material flows across sectors and countries and reduce supply chain vulnerabilities, but raises difficult distributional and political economy questions. Based on the GJP, the paper identifies three areas for research: the detailed analysis of the role of materials in supply chain vulnerabilities; the political economy of material flows; and multidimensional welfare analysis in decarbonization scenarios. |
| Keywords: | energy; materials; economic growth; climate change |
| Date: | 2026–07–24 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2026/157 |
| By: | Roberto Rivas Hermann (Nord University [Bodø]); Giovany Cajaiba-Santana (Kedge BS - Kedge Business School); Olivier Faury (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School) |
| Abstract: | Sustainability has become a central issue in Polar tourism, yet existing research offers limited insight into how sustainability commitments evolve within cruise organizations. Drawing on a multi-year case study of Hurtigruten, a Norwegian cruise company, this study examines how sustainability evolves as an institutional logic. We apply a critical discourse analysis of Environmental, Social, Governance reports and Norwegian media articles to examine evolving alignment between sustainability discourse and operational practices. We introduce a typology to capture phases of sustainability engagement and trace their development over time. The findings show a shift from symbolic compliance to strategic institutionalization, shaped by reporting strategies and external pressures. The study offers insight into how sustainability becomes embedded in cruise organizations in environmentally sensitive contexts. |
| Keywords: | Corporate environmental responsibility, Strategy, Arctic cruise tourism, Critical discourse analysis, Sustainability reporting, Institutional logics |
| Date: | 2026–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05651929 |
| By: | Galvin Kuan Sian Lee (School of Diploma & Professional Studies, Taylor’s College, Subang Jaya, Malaysia and Asia-Europe Institute, Universiti Malaya, Kuala Lumpur, Malaysia., Asia-Europe Institute, Universiti Malaya, Kuala Lumpur, Malaysia) |
| Abstract: | As sustainability becomes a central concern in global policy, higher education institutions (HEIs) are increasingly expected to act as transformative agents in advancing the Sustainable Development Goals (SDGs). This narrative review synthesises recent literature to examine how sustainability is operationalised within HEIs through three interrelated dimensions: institutional strategy, curriculum reform, and digital transformation. The findings reveal that while many universities align their mission statements and policies with the 2030 Agenda, implementation is often hindered by structural fragmentation, limited governance frameworks, and lack of coordination. Education for Sustainable Development (ESD) emerges as a critical pedagogical model that shifts beyond environmental education, promoting systems thinking and participatory learning. However, ESD integration remains inconsistent due to disciplinary silos and outdated teaching methods. Digital transformation is identified as both an enabler and challenge, with technologies such as e-learning platforms and smart campus tools offering new avenues for sustainability education, while digital inequity and sparse research limit its full potential. This review contributes to both theory and practice by highlighting the need for cohesive institutional frameworks, interdisciplinary collaboration, and equitable access to digital infrastructure. It offers actionable insights for policymakers, academic leaders, and educators striving to embed sustainability more systematically within higher education. Future research is encouraged to explore student and faculty engagement, cross-disciplinary applications of ESD, and the long-term impact of digital strategies on sustainability learning outcomes. |
| Keywords: | Digital Transformation, Curriculum Reform, Education for Sustainable Development, Higher Education Institutions, Sustainable Development Goals |
| Date: | 2025–05–11 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05608927 |
| By: | Fitzsimmons, Jill |
| Abstract: | The expansion of utility-scale solar energy is expected to require millions of acres of land in the United States, increasing pressure on agricultural landscapes and raising concerns regarding farmland preservation, rural identity, and food production. Agrivoltaics, which combines agricultural production and solar energy generation on the same parcel of land, has been proposed as a strategy to reduce land-use conflicts between renewable energy development and agriculture. While previous studies find that the public generally prefers agrivoltaics to conventional utility-scale solar, little evidence exists regarding how consumers value agrivoltaics relative to continued agricultural production or other competing land uses. This study evaluates public acceptance of agrivoltaics using a discrete choice experiment administered to 6, 332 adult consumers across thirty-seven U.S. states with commercial apple production. Respondents repeatedly chose whether to purchase apples from farm stands associated with traditional apple production, agrivoltaics, utility-scale solar, or residential development. Choice attributes also varied the share of land-use revenues accruing to farmers, subsidy status, travel time, and apple price. The survey incorporated randomized information treatments and elicited measures of risk preferences and social preferences. Results indicate substantial heterogeneity in willingness to pay for agrivoltaics. On average, respondents prefer maintaining agricultural production relative to converting farmland to utility scale solar or residential development. Willingness to pay for agrivoltaics is not statistically different from continued agricultural production in the full sample. However, urban respondents exhibit a positive willingness to pay for agrivoltaics, whereas rural respondents exhibit a negative willingness to pay. Higher farmer revenue shares significantly increase support for land-use change, while the absence of subsidies reduces acceptance of solar-related development. Additional analyses indicate that support for agrivoltaics varies systematically with political ideology and risk preferences. The findings suggest that public acceptance of renewable-energy development on agricultural land depends not only on energy production outcomes but also on perceptions of agricultural land as a provider of public goods and on the distribution of economic benefits associated with land-use change. Policies that preserve agricultural functions, support increased and transparent revenues for farmers, and account for place-based differences in public preferences may improve acceptance of agrivoltaic development during the renewable-energy transition. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404505 |
| By: | Guo, Jiahui; Ren, Yongwang; Wang, Xibo; Zhang, Ruohao; Zhang, Wendong; Zheng, Jiameng |
| Abstract: | This paper examines household avoidance behavior in response to drinking water contamination under the Safe Drinking Water Act (SDWA). A major challenge in studying behavioral responses to public notifications is that the timing recorded in the Safe Drinking Water Information System (SDWIS) often does not accurately reflect when contamination information becomes publicly available. To address this issue, this study combines SDWIS violation records with detailed water testing data from the EPA’s Six-Year Review (SYR) to infer more accurate notification timing for Tier 1 drinking water violations. The analysis links public water system service areas to weekly store-level bottled-water sales data and estimates dynamic responses using a staggered event-study design. Preliminary results show a sharp increase in bottled-water sales immediately following contamination notifications. When notification timing is measured using the SYR generation date, bottled-water sales increase by approximately 40 percent in the week after notification, substantially larger than estimates based on EPA enforcement dates. The findings suggest that inaccurate administrative timing may substantially attenuate estimated behavioral responses in prior studies and highlight the importance of precise notification timing when evaluating environmental information disclosure policies. |
| Keywords: | Health Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404873 |
| By: | Wang, Xinran; Wang, Xingguo; Fei, Chengcheng |
| Abstract: | Reduced-form climate–yield panels allow nonlinear temperature effects but often treat precipitation as a seasonal total over a fixed calendar window. This paper estimates precipitation responses for rainfed U.S. corn and soybean from 1981 to 2022 using county-year yields, PRISM daily weather, and NASS Crop Progress phenology. We construct dynamic growingseason windows from planting to physiological maturity, estimate generalized additive models, and allow precipitation to affect yield differently across cold, moderate, and heat regimes through tensor-product smooths with the matching degree-day exposure. The dynamic window lowers measured growing-season precipitation by 25.1% for corn and 34.8% for soybean and removes 85.0%and82.3%offixed-window cold exposure. The regime specification does not increase out-of-sample mean squared error relative to an additive dynamic-window GAM. Estimated rainfall responses vary by thermal context: moderate-regime rainfall has a humpshaped marginal effect with zero-crossings near 380 mm for corn and 425 mm for soybean, while heat-regime rainfall has positive dry-end effects, especially for corn. An adaptation-gain counterfactual, which holds the fitted response surface fixed and re-evaluates climate inputs under a 1981–1985 baseline phenology window, turns positive after the 1980s for both crops. Decadal gains peak at 0.44 billion 2022 dollars for corn in 2001–2010 and rise to 0.55 billion for soybean in 2011–2022. These estimates bundle deliberate calendar choices with passive phenological movement, so they are not causal estimates of farmer behavior. The results show that precipitation effects depend on when rainfall occurs within the temperature distribution, andthat historical phenology shifts have already changed the value of growing-season weather. |
| Keywords: | Production Economics |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404689 |
| By: | Willwerth, Hanna; Janzen, Sarah; Michelson, Hope C.; Hultgren, Andrew |
| Abstract: | Climate change is increasing weather variability across Sub-Saharan Africa, exacerbating uncertainty in agricultural production. Farmers can adapt to changes in expected growing conditions by shifting between maize seed maturity types. Local input providers, agro-dealers, facilitate adaptation by determining which seeds are available to farmers even as dealers grapple with demand uncertainty. In this context of market and production risks, seasonal forecasts can help agro-dealers and farmers align their expectations of upcoming growing seasons. Using a panel of 748 agro-dealers from 2021 to 2023 and leveraging plausibly exogenous variation in seasonal forecasts across counties, we study adaptation responses in Kenyan maize seed markets. We build a theoretical framework to model how forecasts influence expected demand and agro-dealer stocking decisions, and how this can vary by agro-ecological zone. This framework motivates our estimation of the reduced form equilibrium response of realized seed sales to forecasts, which embed both supply and demand decisions. We specifically estimate the marginal change in the maturity profile of maize seed sold when the forecast deviates from normal. We find that the portfolio of maize seed sold shifts in response to forecasts, but that adjustments are relatively small and vary across zones. In the highlands, the maturity profile of seed sold falls by 11 days when the forecast is below-average and rises by 10 days when it is above-average, approximately 8% of the mean days to maturity under a normal forecast. Seed sales in the marginal and wet upper mid-altitude zone exhibit near-zero response to forecasts. This paper provides new evidence on the supply-side use of seasonal forecasts, highlighting the role of agro-dealers in facilitating short-run climate adaptation |
| Keywords: | International Development |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404656 |
| By: | Shrestha, Aavash; Zhang, Qi; Etienne, Xiaoli; Tejeda, Hernan; Trujillo-Barrera, Andres |
| Abstract: | Carbon taxes are economically efficient but often face public resistance, especially in food markets where taxes may raise concerns about affordability and fairness. This study examines whether revenue earmarking can improve U.S. consumer acceptance of a carbon tax on dairy products. We conduct a discrete choice experiment with 1, 169 U.S. primary grocery shoppers using yogurt as the product context. Alternatives vary by base price, carbon tax rate, and revenue use. Earmarking options include nutrition assistance, dairy emissions-reducing R&D, animal welfare and food safety improvements, and general government revenue. Results from a conditional logit model show that consumers respond negatively to higher base prices and to higher carbon tax rates when revenues are allocated to general government revenue. However, the positive and statistically significant interactions between the carbon tax rate and the earmarking indicators show that revenue use substantially changes consumers’ valuation of the tax. WTP estimates for a one-percentage-point increase in the carbon tax rate are negative under general government revenue (-$0.055), positive and statistically significant under nutrition assistance earmarking ($0.018), negative but smaller in magnitude under emissions-reducing R&D (-$0.011), and positive under animal welfare and food safety earmarking ($0.006). These findings suggest that revenue design is central to the acceptability of food carbon taxes. Earmarking revenues toward visible and socially meaningful purposes, especially nutrition assistance, may help reduce consumer resistance and broaden support for climate policy in food markets. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404503 |
| By: | Mazen Diwani (MS Research Hub); Mohamed Hamid (University of People); Giacomo Santangelo (University of Fordham) |
| Abstract: | The 2018 US–China trade war represented the largest escalation of trade barriers among major economies in recent decades, yet its environmental consequences remain poorly understood. This study examines whether tariff exposure altered national CO₂ emission trajectories across 171 countries between 2015 and 2019 using propensity score matching based on trade-weighted tariff exposure. While conventional matched comparisons suggest that highly exposed countries experienced significantly faster emissions growth than less exposed economies, this apparent effect disappears when the appropriate weighted Average Treatment Effect on the Treated (ATT) estimator is applied. Placebo tests further reveal that treated countries were already on higher emission-growth paths before tariffs were introduced, indicating that the observed differences reflect pre-existing industrialization trends rather than the causal impact of the trade war. The findings show no statistically significant effect of tariff exposure on national CO₂ emission trajectories beyond underlying growth dynamics. More broadly, the study demonstrates that relying solely on baseline covariate balance can produce misleading policy conclusions and highlights the importance of placebo tests, pre-treatment trend diagnostics, and correct matching estimators in observational policy evaluation. |
| Keywords: | energy; carbon emissions; trade |
| JEL: | F18 O13 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:ris:msrwps:023241 |
| By: | Tirgari, Mohammad; Nejadhashemi, A. Pouyan; Marquart-Pyatt, Sandra |
| Abstract: | Classical and neoclassical viewpoints in production and growth theory dominated the issue of capital and labor substitution in the normative progress of the production function, while ignoring other inputs, called intermediate factors. In the context of emerging global priorities related to planetary boundaries and the Sustainable Development Goals (SDGs), there is a need to upgrade marginal production analysis to explicitly incorporate nitrogen use pathways. To address this gap, the study extends (i) a novel procedure based on the microeconomic relationship between marginal product ( ) and average product ( ). Specifically, MP of nitrogen fertilizer ( ) is formulated as a function of the proportional change in nitrogen application rate, the elasticity of nitrogen use with respect to cropland size, and the marginal effect of the cropland-to-nitrogen ratio on the average product of nitrogen fertilizer ( ); (ii) two distinct pathways of nitrogen- saving/farm-expansion and nitrogen-intensive/farm-expansion. The performance of the procedure is examined by using three waves of cross-sectional data from corn farms in Michigan, USA. The results showed that a higher level of the nitrogen-saving/farm-expansion strategy keeps farms within the economic zone (Stage II) of the production function, as indicated by a positive marginal effect. These results indicate yield losses of approximately 223 kg/ha, 43 kg/ha, and 34 kg/ha for corn farms applying nitrogen at average rates of 53 kg/ha, 142 kg/ha, and 165 kg/ha, respectively. The nitrogen-intensive/farm-expansion strategy causes, depending on the nitrogen rate, the farm position to vary between the economic zone (Stage II) and the zone of negative return (Stage III) of the production function if the marginal effect responds negatively. The outcomes of the new procedure underscore the importance of targeting nitrogen management policies to specific production stages, supporting sustainable intensification that maintains yields while mitigating environmental risks in Michigan’s corn systems. |
| Keywords: | Production Economics |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404782 |
| By: | Meihan Chen (East China University of Science and Technology, Rennes SB - Rennes School of Business); Xiangyun Chang (East China University of Science and Technology); Zhengwei Sun (East China University of Science and Technology); Ramzi Hammami (Rennes SB - Rennes School of Business); Imen Nouira (Rennes SB - Rennes School of Business) |
| Abstract: | The carbon offset market is a voluntary market where firms trade carbon offsets to compensate for their emissions and comply with cap-and-trade regulations. In contrast to the emission trading market, which involves government-allocated emission quotas, the carbon offset market trades offsets generated from certified emission reduction projects by independent suppliers. While both markets operate concurrently, they are governed by distinct pricing mechanisms and regulatory structures. We develop a game-theoretic model that incorporates the supply side of the offset market, often neglected in previous literature, and analyze how offsets influence firm behavior and emissions trading dynamics. We also examine how offset usage should be regulated under different governmental policy objectives.We show that introducing a carbon offset market reduces firms' direct emission abatement efforts, lowers product prices, and increases demand, while also decreasing emission allowance prices and total social abatement costs. Importantly, the allocation of emission caps among firms does not affect their behavior, provided the total cap remains constant, but it redistributes profits in a non-monotonic manner, with profit first increasing and then decreasing in a firm's own cap and exhibiting the opposite pattern with respect to other firms' caps. However, tightening the total emissions cap still affects emission prices, abatement levels, and product pricing. These effects are moderated when offset usage is supply-constrained, as firms can flexibly substitute offsets for direct reductions. To maximize total production and emissions reduction, the government should avoid imposing binding regulatory offset limits. In contrast, to minimize total abatement costs, binding regulatory limits are necessary and should be coordinated with the cap level to jointly achieve cost efficiency and market stability. We further extend the analysis to incorporate product market competition and show that our main results remain robust. |
| Keywords: | Carbon offset, Cap-and-trade, Emission abatement, Game theory |
| Date: | 2026–11 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05664658 |
| By: | Haqiqi, Iman; Hertel, Thomas |
| Abstract: | Growing geopolitical tensions, trade disputes, and export restrictions have renewed concerns about the resilience of globally integrated food systems. While previous studies have examined the implications of agricultural trade for food security and environmental outcomes, little is known about how trade restrictions reshape production, resource use, and food access at the spatial scales where agricultural decisions occur. Existing approaches either lack endogenous behavioral responses or rely on highly aggregated representations of land and production systems. We address this gap using a multi-crop version of SIMPLE-G, a global gridded equilibrium model that integrates economic decision-making with high-resolution data on crop yields, land availability, water constraints, and production systems. We use the model to evaluate the consequences of global crop import tariffs and to quantify the land-use and productivity adjustments required to maintain food security under reduced trade integration. Our results show that trade restrictions increase crop prices, reorganize production across landscapes, and worsen food insecurity, with the largest impacts concentrated in import-dependent regions. Major exporters such as the United States and Brazil reduce production of internationally traded crops, while food-importing regions expand domestic production through import substitution. However, these market adjustments are insufficient to maintain baseline food security. Restoring pre-tariff levels of undernourishment would require substantial additional cropland expansion or accelerated productivity growth. In North Africa, for example, maintaining baseline food security requires either a 62.7% increase in cropland extent or a 24.9% increase in total factor productivity. Similar but smaller adjustment requirements emerge across the Middle East, Central America, and China. Iso-nutrition frontiers reveal the trade-offs between land conversion and productivity enhancement needed to offset the food-security consequences of trade fragmentation. Beyond the policy implications of trade restrictions, this study demonstrates the value of high-resolution economic modeling for understanding how global market shocks propagate through local agricultural landscapes. By resolving market-mediated responses at the grid-cell level, the framework provides a foundation for evaluating interactions among trade, food security, agricultural productivity, and environmental sustainability in the next generation of global gridded economic models. |
| Keywords: | International Relations/Trade |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404668 |
| By: | Fuchs, Andreas; Leue, Sebastian S.; Rose, Andrew |
| Abstract: | Since 1971, the World Economic Forum (WEF) Annual Meeting in Davos has attracted the leadership of global corporations. Attendance may offer economic benefits through networking and political support or provide only private gains without measurable impact. Through creating a novel database of WEF attendees (2009 - 2018) matched with firm-level data, we analyze stock market performance, corporate ratings, and environmental, social, and corporate governance (ESG) scores. Regression results, including annual and daily event studies, suggest that WEF attendance does not systematically improve stock performance or credit ratings. However, WEF attendance positively impacts ESG scores, especially the social sub-score, indicating beneficial stakeholder effects. |
| Keywords: | Economic |
| JEL: | F54 G24 G32 G39 O19 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20186 |
| By: | Lauritzen, J. E.; Belt, S.; Jensen, N.; Natural Resources Conservation Service |
| Abstract: | [Contents:] Alternative Names --- Description (Distribution – Habitat) --- Adaptation --- Uses (Forage – Wildlife – Erosion Control – Buffer/Barrier – Air Quality – Biofuel Source – Phytoremediation and Phytoextraction) --- Ethnobotany --- Status (Threatened or Endangered – Wetland Indicator – Weedy or Invasive) --- Planting Guidelines --- Management --- Pests and Potential Problems --- Environmental Concerns --- Control --- Seeds and Plant Production --- Cultivars, Improved, and Selected Materials (and area of origin) --- Literature Cited. |
| Keywords: | Crop Production/Industries, Livestock Production/Industries, Research and Development/Tech Change/Emerging Technologies, Resource/Energy Economics and Policy |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:ags:usdami:404913 |
| By: | Adhikari, Prabin; Ojha, Laxmi Narayan; Kassas, Bachir |
| Abstract: | Catastrophic crop diseases are widely assumed to accelerate the conversion of farmland to urban uses, yet rigorous causal evidence on the destination of land released from agriculture is scarce. We use the spread of huanglongbing (HLB), or citrus greening, in Florida as a natural experiment to estimate where land flows after a severe and persistent productivity shock. Combining USDA National Agricultural Statistics Service citrus surveys with the annual USDA Cropland Data Layer for the period 2008 to 2023, we construct a county-level yield-loss proxy for HLB severity and exploit two complementary identification strategies: a within-Florida two-way fixed effects design across fourteen citrus counties, and a matched difference-in-differences design that uses California citrus counties, which were largely unaffected by HLB during the sample period, as a counterfactual. We find that a one-unit increase in the production pressure due to HLB is associated with a 28 percent annual decline in citrus acreage and a meaningful reallocation of land toward forest and shrub cover (1.7 percentage points) and lower-value agricultural uses (0.7 percentage points), with a small and generally insignificant effect on developed land. The matched differencein-differences design corroborates this pattern: treated counties lost 3.8 percentage points of citrus share after 2012, while developed land grew by less than one percentage point. Results are stable across robustness checks that include house price controls, climate covariates, and the exclusion of hurricane years. A complementary analysis suggests that depressed land values in former citrus counties may have facilitated utility-scale solar development after 2016. The findings indicate that even severe and incurable plant disease shocks generate land-use adjustment primarily within agriculture and toward natural reversion rather than urbanization, with implications for farmland protection policy, rural development, and the design of disease-response programs. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404740 |
| By: | Kalyviotis, Nikolaos; Cartone, Alfredo; Carrascal-Incera, André; Stamatopoulos, Giorgos |
| Abstract: | The global shift to a low-carbon energy system highlights the need for large-scale renewable deployment. Solar photovoltaics, with their modularity and falling costs, play a central role but also pose challenges due to intermittency. The “duck curve”—midday overgeneration followed by steep evening demand peaks—exemplifies these issues and calls for flexible infrastructure such as battery energy storage systems (BESS). This paper examines the techno-economic optimization of solar-BESS projects in Greece, which targets 82% renewable electricity by 2030 and full neutrality by 2050. Using cost-benefit analysis, the study assesses storage’s role in markets, grid balancing, and residual load management, based on projections from Greece’s National Energy and Climate Plan and Long-term Strategy. The methodology combines system-level simulations with market modelling to estimate storage needs and revenues from arbitrage, ancillary services, and capacity mechanisms. Results show that storage enhances solar value by reducing curtailments and enabling peak-time participation, but oversized capacity quickly reaches diminishing returns due to residual load and price dynamics. Optimal sizing is thus key for economic efficiency and system stability. The study recommends dynamic incentives that reflect the real-time value of storage and warns against uniform subsidies. Finally, it offers a structured framework for designing profitable solar-storage projects. |
| Keywords: | enewable Energy; Economics & Finance; Cost-benefit analysis; Solar energy; Energy storage. |
| JEL: | Q41 |
| Date: | 2025–08–26 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128660 |
| By: | Fabisik, Kornelia |
| Abstract: | I study the quality of the governance pillar of environmental, social, and corporate governance (ESG) ratings. Since 2018, ESG integration strategies, many of which rely on ESG ratings, have dominated the ESG investing sphere. I examine the governance ratings’ ability to provide useful information to shareholders. My results not only suggest rather limited success in predicting relevant firm outcomes (such as financial-statement restatements, governance incidents, class action lawsuits, operating performance, firm value, stock returns, and credit ratings), but in the case of most raters, I identify multiple instances of counterintuitive results, that is, with the opposite direction of the effect. |
| Keywords: | Corporate governance; ESG ratings; Governance quality |
| JEL: | G24 G32 G34 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20031 |
| By: | Jean Dubé; Francesco Ciari; Sara Gharavi; Rakibul Hassan; Hamed Naseri |
| Abstract: | Although remote working is not a new phenomenon and was already well established before the pandemic struck, its use has grown exponentially since 2020. In theory, working from home should lead to a decrease in the use of transportation infrastructure and, consequently, a reduction in pollutant emissions. However, research has shown that travel patterns change when workers choose to work from home or remotely. Thus, while the number of commutes may decrease, other trips may be added to the new daily routine. This substitution has potential implications for transportation demand and its environmental consequences. In this study, the authors attempt to quantify the likely impact of the uptake of remote working on transport demand and greenhouse gas (GHG) emissions using the Québec City metropolitan area as a case study. This study represents a significant contribution from a methodological perspective. The analyses are conducted using an agent-based simulation model to compare the effects of various scenarios with the baseline scenario. The results suggest that teleworking is likely not the solution to the environmental problems arising from people’s travel choices. The expected benefits in terms of reducing traffic and pollutant emissions are not as significant as might initially have been anticipated. Même si le télétravail n’est pas un phénomène nouveau et qu’il était déjà bien implanté avant l’arrivée de la pandémie, son utilisation s’est accrue de manière exponentielle à partir de 2020. En théorie, le travail à domicile devrait entraîner une diminution de l’utilisation des infrastructures de transport et, par conséquent, une réduction des émissions polluantes. Or, la littérature a montré que les habitudes de déplacements changent lorsque les travailleurs optent pour le travail à domicile ou à distance. Ainsi, la réduction du nombre de déplacements domicile-travail peut avoir pour effet d’ajouter d’autres trajets à la nouvelle routine quotidienne. Cette substitution a des incidences potentielles sur la demande en transport et ses conséquences environnementales. Dans cette étude, les auteurs tentent de chiffrer l’impact vraisemblable du recours au télétravail sur la demande en transport et les émissions de gaz à effet de serre (GES) en utilisant la région métropolitaine de Québec comme cas d’étude. Cette étude représente une contribution importante du point de vue méthodologique. Les analyses sont effectuées à partir d’un modèle de simulation par agents afin de comparer l’effet de différents scénarios au scénario de référence. Les résultats donnent à penser que le recours au télétravail n’est probablement pas la solution aux problèmes environnementaux découlant des choix de déplacements des individus. Les retombées positives attendues sur la diminution du trafic et des émissions polluantes ne sont pas aussi importantes qu’on aurait pu l’anticiper au départ. |
| Keywords: | telework, agent-based simulation model, traffic, rebound effect, pollutant emissions, télétravail, modèle de simulation par agents, trafic, effet rebond, émissions polluantes |
| Date: | 2026–07–28 |
| URL: | https://d.repec.org/n?u=RePEc:cir:cirpro:2026rp-15 |
| By: | Dai, Shangze; Guan, Zhengfei; Ji, James |
| Abstract: | This paper examines how geopolitical risk reshapes food security strategies, agricultural land allocation, trade, productivity, and environmental outcomes. We argue that rising geopolitical uncertainty increases concerns over the availability and reliability of external food supplies, encouraging countries to adopt defensive strategies centered on domestic agricultural capacity. Using a country-year panel from 2016 to 2022 that combines geopolitical risk measures with land-cover data, agricultural trade flows, agricultural total factor productivity, ecological footprint indicators, and macroeconomic controls, we document several findings. Higher geopolitical risk is associated with agricultural land expansion, forest loss, and weaker urbanization, suggesting that food security concerns raise the strategic value of domestic agricultural land. Geopolitical risk also reduces agricultural exports and net agricultural exports, while its effect on imports is weaker and statistically insignificant, indicating a retreat from trade-oriented specialization. These adjustments are accompanied by lower agricultural total factor productivity and a larger ecological footprint, consistent with resource misallocation and environmental pressure induced by defensive agricultural expansion. The effects are generally weaker among net agricultural exporters, which face less pressure to expand domestic production capacity because of their stronger initial food-supply position. These findings reveal a trade-off between national resilience and economic and environmental efficiency: strategies designed to secure food availability under geopolitical uncertainty may reduce external vulnerability, but they can also generate land-use distortions, productivity losses, and environmental costs. |
| Keywords: | International Development |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404631 |
| By: | Magezi, Eustadius; Nakano, Yuko; Tsujimoto, Yasuhiro |
| Abstract: | Balancing environmental sustainability and agricultural productivity is a major global challenge. In particular, increasing crop productivity while reducing fertilizer inputs is central to achieving sustainable intensification among smallholder farmers in Sub-Saharan Africa. This study evaluates the impact of P-dipping—an innovative technique for lowland rice production that enables farmers to achieve high yield with a small amount of fertilizer by placing a triple superphosphate (TSP) fertilizer near the root system at transplanting— on yield, income, and profit. Despite the technological advantages of P-dipping, its diffusion would require improvements in the fertilizer supply chain, as TSP fertilizer remains largely unavailable in rural markets. We conducted a randomized controlled trial (RCT) to answer two primary questions: the effectiveness of P-dipping training for farmers on productivity, and whether providing training to both farmers and local fertilizer retailers would enhance the development of the TSP market. We compared three groups: a control group without training, farmers trained only, and farmers trained together with fertilizer retailers. We find that the adoption of P-dipping increased fertilizer use efficiency by 10.6 to 14.0 kilograms of paddy per kilogram of fertilizer applied. Furthermore, the adoption increased rice yield by 6.9 to 14.1 kilograms per are compared to non-P-dipping plots, resulting in higher income and profit even under an international fertilizer price surge that occurred in 2022 during the experimental period from 2021 to 2024. Our intention-to-treatment effects show that providing P-dipping training to both farmers and fertilizer retailers results in more sustained adoption than training farmers only. Retailers, however, stopped stocking TSP when project logistical support ended, resulting in a decline in adoption rates. These findings suggest that while P-dipping can significantly improve fertilizer use efficiency and productivity, its long-term success depends on viable supply chains. |
| Keywords: | International Development |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404653 |
| By: | Matej Opatrny (Charles University, Faculty of Social Sciences, Institute of Economic Studies & Charles University Environment Center); Milan Scasny (Charles University, Faculty of Social Sciences, Institute of Economic Studies & Charles University Environment Center); Csilla Farkas (Norwegian Institute of Bioeconomy Research (NIBIO)); Mikael Skou Andersen (Aarhus University); David Zilberman (University of California, Berkeley) |
| Abstract: | This paper presents a social benefit-cost analysis (BCA) of Precision Agriculture (PA)and Enhanced Efficiency Fertilizers (EEF) for reducing nitrate pollution in the Zelivka catchment, the drinking-water source for 1.5 million people in Prague and surrounding regions. The analysis combines field-level data (50, 309 ha, 729 farms), meta-analytical biophysical parameters, a dynamic heterogeneous-agent adoption model, and cross-validation against an independent SWAT+ hydrological simulation. Technology adoption generates a mean Net Present Value of EUR 291 million (95% CI: EUR 94 775 million) over fifty years, with a deterministic benefit-cost ratio of 19.8. Even with health benefits set to zero, the NPV remains positive at EUR 44 million, indicating that private benefits alone cover adoption costs. BCA and the SWAT+ approaches imply comparable rates of reservoir-concentration decline (≈0.15 mg/L/yr in SWAT+ over its lag-free window versus a ≈0.13 mg/L/yr peak in the BCA once the lag has elapsed). At-source nitrogen prevention via agricultural technology adoption offers a cost-effective complement to structural catchment measures and end-of-pipe water treatment. |
| Keywords: | benefit-cost analysis; precision agriculture; enhanced efficiency fertilizers; nitrogen pollution; water quality; technology adoption |
| JEL: | D61 Q12 Q15 Q25 Q51 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2026_18 |
| By: | Nicola Bartolini; Silvia Romagnoli; Amia Santini |
| Abstract: | Renewable Power Purchase Agreements have become increasingly important instruments for supporting the energy transition, as they offer revenue stability to renewable energy producers and price certainty to electricity consumers. This paper develops a financial framework for the valuation and risk assessment of fixed-price renewable PPAs. We formalize the payoff structures of the main PPA designs adopted in practice for wind and photovoltaic generation and derive fair contract prices based on financial valuation principles. We further propose a market risk-assessment methodology based on Monte Carlo simulation and introduce a parsimonious continuous-time model for solar irradiance suitable for financial applications. An empirical analysis of the Italian electricity market shows that fair prices and risk profiles vary substantially across technologies and contractual structures, highlighting the trade-off between downside protection and participation in favorable market outcomes. This framework provides practical tools for the pricing and risk evaluation of renewable PPAs. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.03115 |
| By: | Ferraro, Greg; Brown, Zachary; Moschini, Giancarlo; Perry, Ed |
| Abstract: | Glyphosate, the active ingredient of the herbicide RoundUp, has been subject to extensive scrutiny since the introduction of genetically engineered glyphosate tolerant crops in 1995. However, both a lack of observational studies and continued uncertainty around the toxicity of glyphosate emissions contribute to international political controversy and numerous civil actions at a time when US rural health measures are worsening and youth cancer rates are rising. Recent quasi-experimental studies using genetically engineered crop adoption as a source of exposure variation found glyphosate applications caused deleterious infant health effects in rural US areas, but we are unsure their exposure is truly exogenous. We reassess glyphosate’s effects on infant health using two sources of exposure variation in two-stage least squares instrumental variable approaches for twelve different infant health measures. We first similarly employ genetically engineered crop adoption but using seed sale marketing data, which is a more accurate measure of adoption relative to previous attempts. We then use changes in glyphosate product characteristics from the introduction of generic product types using product sales marking data, which is a novel separate source of variation. We do not find any consistent significant health changes from glyphosate exposure, where estimates are generally precise, pass typical assumption tests, and are robust to alternative specifications. By investigating the association between genetically engineered crop adoption and several rural co-occurring health and agricultural trends, we obtain evidence exposure variation from genetically engineered crop adoption is probably not independent from other agricultural production externalities. While this study provides evidence glyphosate did not contribute to rural health problems from 1995 to 2013, we believe pesticide data limitations, continued glyphosate controversy, and remaining potential for toxic agricultural emissions justifies evaluations of improved environmental monitoring. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404479 |
| By: | Duygu Buyukyazici (LSE - Department of Geography & Environment - London School of Economics and Political Science - LSE - London School of Economics and Political Science); Olivier Brossard (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - UT2J - Université Toulouse - Jean Jaurès - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville); Ron Boschma (Department of Human Geography and Spatial Planning, Utrecht University) |
| Abstract: | The transition towards a circular economy (CE) represents not only an economic shift but also a profound social and institutional transformation that redefines production, consumption, and policy. This study provides the first macro-level empirical assessment of the CE transition across European regions over the last two decades. It then examines how regional regulative, normative, and cultural–cognitive institutions shape regional CE performance, while also accounting for key confounding factors, including EU cohesion funds, regional autonomy, and the EU Circular Economy Action Plan (CEAP). The results reveal strong spatial and temporal heterogeneity, as well as distinct effects across institutional dimensions. Regulative institutions exhibit the most consistent positive association across and within countries. Normative institutions matter most within major regions, while cultural–cognitive institutions provide more modest support for CE efforts. Importantly, the combination of all institutional pillars is associated with the largest gains in circularity. EU cohesion funds significantly support CE progress, while the post-2015 results suggest that the CEAP reshaped the relative importance of institutional pillars. Overall, the findings highlight the importance of coordinated institutional frameworks and targeted policy support in advancing the regional CE transition. |
| Keywords: | Circular economy, Circular transition, Institutions, Sustainability, Regions |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05664661 |
| By: | Abdushukurova, Sevinch; Egamberdiev, Bekhzod; Djuraeva, Mukhayyo |
| Abstract: | Agriculture is central to the Kyrgyz economy, yet technology adoption lags, and existing models overlook trust and risk preferences, particularly their interaction. Moreover, no prior Kyrgyz study has addressed this gap. Hence, this research examines how risk attitudes and trust shape technology adoption among Kyrgyz farming households, using two waves (2016, 2019) of the Life in Kyrgyzstan panel survey restricted to farming households, yielding balanced panel data of 1, 305 households with 3, 298 observations. Using household fixed-effects regression, preliminary results show that risk preference alone is not a significant variable, while its interaction with trust reveals that risk-tolerant farmers adopt more when they have institutional trust or are cautious. It has also been observed that different types of trust have distinct direct effects on farmers' technology adoption. For instance, wariness predicts higher adoption, while institutional trust suggests lower adoption. These findings are crucial for Kyrgyzstan’s current push toward modern, particularly green and resource-efficient, approaches aimed at limiting environmental damage while improving resource management in farmers’ practices. Investments pay off only if farmers actually adopt technologies. Therefore, to maximize the returns from these investments, it is important to design trust- and risk-sensitive policy for Kyrgyzstan. |
| Keywords: | Agriculture, Risk preferences, Technology Adoption, Trust |
| JEL: | N50 O13 P32 Q1 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:342387 |
| By: | Stanislas Kihm (ISTEC - Institut supérieur des Sciences, Techniques et Economie Commerciales - ISTEC, IDHES - Institutions et Dynamiques Historiques de l'Économie et de la Société - UP1 - Université Paris 1 Panthéon-Sorbonne - UP8 - Université Paris 8 - UPN - Université Paris Nanterre - UEVE - Université d'Évry-Val-d'Essonne - CNRS - Centre National de la Recherche Scientifique - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay); Adrien Jean-Guy Passant (Université Paris-Saclay, UVSQ - Université de Versailles Saint-Quentin-en-Yvelines, ISTEC - Institut supérieur des Sciences, Techniques et Economie Commerciales - ISTEC) |
| Abstract: | Electric vehicles (EVs) are central to automotive strategy, yet their adoption has been gradual. For decades, electrification competed with hybrids, hydrogen/fuel cells, and improved combustion engines, without any dominant path. Situated within business history and the 'companies in transition' framework, this article examines Renault, a European carmaker that was not 'born green' , through a historical case study. The firm began experimenting with electromobility in the 1970s, but not until the mid-2000s did it launch a program for mainstream consumers. Using various sources, we trace Renault's discontinuous engagement with EVs over five decades. We use a 'roads not taken' approach, grounded in contemporaneous options documented in our sources, to discuss alternative trajectories that might have accele rated learning and coordination. By demonstrating how firms influence energy transitions, this study contributes to understanding electromobility trajectories and clarifies the role of organizational ambidexterity and 'perpetually emerging technologies' in contexts of technological and institutional uncertainty. |
| Keywords: | automotive industry, sustainability transitions, electric vehicles, strategy, Organizational ambidexterity, Organizational ambidexterity strategy electric vehicles automotive industry sustainability transitions |
| Date: | 2026–07–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05678896 |
| By: | Liu, Rui; Lopez Barrera, Emiliano; Vieira, Dominic; Roe, Brian |
| Abstract: | Differences in pharmaceutical regulatory frameworks, including patent protection, approval 26 timelines, pricing policies, and market access conditions, shape the pace and scale of adoption of 27 anti-obesity medications such as glucagon-like peptide-1 (GLP-1) receptor agonists across 28 countries. Although these medicines are primarily discussed in health contexts, regulatory-driven 29 variation in adoption can induce large-scale dietary shifts that propagate through agri-food 30 systems. Here, we examine how heterogeneous regulatory environments influence GLP-1 31 diffusion and how the resulting behavioral changes translate into economy-wide adjustments in 32 U.S. agriculture, trade, welfare, factor markets, and environmental outcomes. We combine a Bass 33 diffusion model of pharmaceutical adoption with the GTAP-RD recursive dynamic computable 34 general equilibrium framework to simulate alternative adoption scenarios across North America through 2030, distinguishing between current clinical coverage and expanded weight-36 management access. Preliminary results suggest that asynchronous adoption across trading 37 partners alters relative demand conditions and shifts sectoral comparative advantages, generating 38 trade-mediated reallocation of U.S. production and export patterns. Within the United States, 39 agricultural land markets emerge as the primary adjustment margin, with land rents declining 40 substantially relative to baseline levels, while labor and capital markets remain comparatively 41 stable. Reduced output in emission-intensive sectors generates systematic declines in U.S. 42 production-side greenhouse gas and CO2 emissions, highlighting a tension between 43 environmental gains and pressures on agricultural land values. Overall, these findings suggest 44 that pharmaceutical regulation can act as an indirect driver of food-system transformation, 45 underscoring the importance of cross-sector policy perspectives when evaluating how emerging 46 health technologies reshape sustainability outcomes, trade relationships, and producer 47 livelihoods. |
| Keywords: | International Relations/Trade |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404673 |
| By: | Felix Kubler |
| Abstract: | Computing optimal policy in heterogeneous-agent economies is complicated by the possibility of multiple equilibria. We overcome this difficulty by showing that when the equilibrium manifold has a low-dimensional Negishi-weight parameterization, Bayesian optimization reliably finds approximate solutions and can be used to certify candidate solutions with high probability. This insight brings recent machine learning advances to bear on a core problem in macroeconomics. We apply Bayesian optimization to a dynamic economy with heterogeneous agents and climate change and compute optimal carbon taxes in this setting. Although in principle the presence of the carbon externality creates scope for multiple equilibria, we show that in an example with realistic calibration of damages competitive equilibra are most likely unique. |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2606.29299 |
| By: | Jabar, Rudeena; Sharma, Anjali; Songola, Haritha |
| Abstract: | The potential employment generation is an important co-benefit and policy motivation to pursue energy transition. Empirical evidence suggests that energy transition leads to net employment gains. However, the job estimates vary across studies due to methodological choices, underlying modelling assumptions and scope of analysis. In this study, we present a systematic review of the studies that have examined labor impacts of energy transition to understand the underlying mechanisms that impact employment estimates. Using the Context-Interventions-Mechanisms-Outcome framework, we selected 236 papers for the study. The paper identifies multiple factors that explain these variations: first, the type of assessment used in the study impacts the projected job numbers. Gross assessment (42% of studies in our sample) provide optimistic results without accounting for the potential job losses. Second, ambitious climate action scenarios in an economy leads to the increase in projected jobs. We find that 25% of studies are dependent on the scenario assumptions. Third, employment details such as employment factors, learning effects, job quality and skills determine the intensity of the job estimates. The review suggests that only 12% of the studies have included learning effects in their assessment and 15% have assessed the skill requirements for the manufacturing of renewables. Based on these limitations in the existing literature, we have developed an analytical framework that can serve as the benchmark for studying the labor impacts of energy transitions. The framework systematically identifies and highlights the importance of integrating different elements previously discussed in the labor assessment studies to avoid the over-estimation/underestimation of employment numbers. |
| Date: | 2026–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:3agz4_v1 |
| By: | Khondaker Golam Moazzem; Md. Khalid Mahmud |
| Abstract: | Electric three-wheelers (E3Ws) have become a widely used mode of urban transport in Bangladesh, responding to the growing demand for affordable and accessible mobility in densely populated cities. However, despite their considerable potential, the rapid and largely unregulated expansion of E3Ws has created substantial challenges for urban public transport systems. These include increasing traffic congestion, heightened road safety risks, weak institutional oversight, and serious health and environmental impacts, most notably those arising from the improper handling and recycling of used lead-acid batteries (ULABs). The absence of standardised manufacturing, licensing, and operational frameworks has further intensified these problems, enabling E3Ws to operate beyond designated corridors and outside formal regulatory control. |
| Keywords: | Electric Three-Wheelers, Urban Transport, Road Safety, Traffic Congestion, Lead-Acid Batteries, Battery Recycling, Transport Regulation, Sustainable Mobility, Urban Mobility, Bangladesh Transport |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:report:84 |
| By: | Persico, Nicola; Ravina, Enrichetta |
| Abstract: | We examine how the political polarization of individual investors, particularly regarding Environmental, Social, and Governance (ESG) issues, is reflected in institutional investor proxy voting and in corporate decision-making. We develop a theoretical model with two types of investors: those who value ESG factors (activists) and those who do not (skeptics). We find that large funds, seeking to attract investors of all ideologies, tend to adopt moderate stances on ESG, which they can impose on corporations, while small funds cater to investors’ polarized positions. We then explore counterfactual settings where individual investors vote directly or delegate their vote to individuals and organizations of their choice (political entrepreneurs), like in a representative democracy, and show that more-extreme corporate ESG policies are likely to be implemented in these cases, reflecting the underlying polarization among investors. In such settings, self-confirming multiple equilibria can arise since share ownership is endogenous to the firm’s ESG stance. Additionally, we explore shareholder abstention and the role of investors as citizens. |
| Keywords: | ESG |
| JEL: | D72 G23 G30 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20153 |
| By: | Kiho Yoon |
| Abstract: | Consignment auctions, in which bidders first receive free initial endowments of a good and must then consign them to a subsequent uniform price auction, are often used in emissions allowance trading for the environmental regulation of greenhouse gas emissions. We study consignment auctions where many asymmetric bidders have flat demands up to their respective quantity constraints. We first characterize the equilibrium outcome and then examine the effects of initial endowments and total supply. If bidders' initial endowments increase or the total supply decreases, the equilibrium price increases whereas the social welfare and the auctioneer's revenue may increase or decrease. In particular, the revenue may increase even though fewer units remain in the hands of the auctioneer since an increase in initial endowments can prevent the low price equilibrium resulting from demand reduction. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.03648 |
| By: | Zhou, Yimeng; Chen, Wei; Chen, Lin |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404865 |
| By: | Ambec, Stefan; Coria, Jessica |
| Abstract: | Public consultations are widely used in regulatory processes, allowing stakeholders to present their viewpoints despite their inherent biases. Some stakeholders, such as firms, are known to be pro-business, while others, such as environmental NGOs, are pro-environment. We develop a framework to analyze how a regulator should process information provided by biased stakeholders. We distinguish between stakeholders whose biases are high and known and those whose biases are small but unknown, such as national authorities. We show that the regulator should follow the advice that runs counter to a stakeholder's typical bias, i.e., to regulate if firms so advise, and not to regulate if environmental organizations so advise. Without such advice, she should prioritize the comments provided by stakeholders with smaller but unknown bias. Next, we contrast our theoretical results with the regulation of chemicals in the European Union. In line with our theory, we find that support for regulation has a strong and significant impact on the decision to regulate when the support comes from firms but not when it comes from NGOs and environmental agencies. We also find that national authorities have a stronger influence than other stakeholders in the regulation decision, both by the number of comments and the relative support. |
| JEL: | D04 D21 H53 Q48 D58 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20292 |
| By: | Ricardo da Silva Vieira; Mario Biggeri; Peter Benczur; Robert Costanza; Joseph Eastoe; Tuuli Hirvilammi; Ida Kubiszewski; Matteo Mazziotta; Kenneth Mulder; Taketo Muroya; Kelsey J. OConnor; Francesco Sarracino; Nikos Rigas; Enrico Giovannini; Rutger Hoekstra; Daniel Hopp; Edwin Horlings; Petra Krylova; Michele Melchiorri; Heriberto Tapia; Oscar Smallenbroek |
| Abstract: | Societal goals need to shift from over-reliance on gross domestic product (GDP) to broader aspects of sustainable and inclusive wellbeing (SIW). However, defining SIW and eventually measuring it with a single number is problematic because it involves many subjective and objective contributors that combine in complex, non-linear ways. Conventional approaches either use linear weighted averages or reduce SIW to subjective wellbeing alone. Neither is sufficient. This paper reviews aggregation methods for SIW against nine conditions derived from needs theory and strong sustainability: limited substitutability, penalisation of imbalances, non-linear transformations, respect for environmental ceilings, respect for lower limits, a formative measurement model, no correlation requirement, distributional sensitivity, cross-border spillovers, and intertemporal aggregation. We compare 13 methods, from simple arithmetic means to penalty-based indices, outranking multicriteria, data envelopment analysis, and insights from ecology, neuroscience, and machine learning. Our illustrative example shows that aggregation choices change significantly country rankings. Compensatory methods create similar rankings. No single method satisfies all nine conditions. We conclude that a future SIW composite indicator will require combining methods across levels: non-linear normalisation, non-compensatory aggregation, and measurement-level choices for inclusiveness and spillovers. This paper provides a step towards the headline aggregated indicator advocated by the UN High-Level Expert Group on Beyond GDP. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.08153 |
| By: | Roy, Banya; Sims, Charles; Manning, Dale; Mingie, James; Cho, Seong-Hoon |
| Abstract: | Family forest owner enrollment in carbon programs remains below 0.1 percent in the United States despite growing policy interest. Prior work identifies the participation barriers qualitatively but does not measure them separately or connect them to contract design. This paper makes four contributions. First, it develops a landowner decision model that decomposes the minimum payment landowners require to enroll into an expected-value gap and a riskpremium gap. Second, it estimates minimum required support across six Southern Appalachian states, four parcel sizes, and four contract designs, producing county-level thresholds for spatially differentiated targeting. Third, it connects the barrier diagnosis to contract design, showing that instruments matched to the binding constraint outperform those that do not. Fourth, it translates model-implied thresholds into adoption-threshold curves that show what share of the modeled positive-carbon opportunity set becomes viable at alternative area-based and carbondenominated payment levels. We find the dominant barrier is an expected-return shortfall: in the baseline one-shot adoption framework, improved forest management is less risky than businessas- usual, but the expected returns are too low to make enrollment privately attractive without support. Under the 20-year baseline contract, minimum required support averages roughly $1, 200 per acre as a present-value lump-sum equivalent for 20-acre parcels, but falls to about $215 per acre as a present-value lump-sum equivalent for 160-acre parcels, a nearly sixfold gap driven by fixed enrollment costs falling more heavily on smaller parcels. Support varies substantially across states, favoring county-level targeting over uniform payment schedules. Two-part contracts reduce required performance payments by 8-12 percent at baseline and by up to 21 percent under higher fixed-cost assumptions because the upfront component directly offsets fixed participation costs; modest price floors have limited effects because downside risk is not the binding constraint here. The adoption-threshold curves show that prevailing voluntary carbon prices leave many modeled opportunities above the viability threshold, especially for small parcels. These results imply that expanding participation requires payment structures matched to the obstacle that actually limits enrollment, not simply higher payments of any kind. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404475 |
| By: | Majeed, Fahd; Khanna, Madhu; Mwebaze, Paul; Miljkovic, Nenad; Du, Xuzhi; Jia, Mengqi; Peng, Bin; Guan, Kaiyu |
| Abstract: | Solar energy adoption in the US offers a cost-effective means to meet future energy demands, but its land 17 requirements often overlap with high-yielding cropland, especially in the Eastern Interconnection. We 18 provide a comprehensive economic analysis of the potential of US agriculture to meet solar development 19 targets using utility-scale PV systems on US cropland, and the impact such adoption will have on crop 20 production. We show that to meet 2050 projections, only a fraction (1.67%) of farmland is needed under 21 utility solar. Next, we consider two alternative solar setups, namely a land sparing approach where solar is 22 adopted only on low quality land, and a land sharing approach using agrivoltaic solar systems. We show 23 that utility scale solar on low quality cropland will displace solar production from being concentrated in a 24 few counties to counties further away from transmission lines, and displace a similar number of acres as 25 utility-scale solar. We also show that agrivoltaic setups will require more cropland than utility-scale solar, 26 due to shading effects on yield and an increase in land set aside for panels and buffer regions. In each 27 alternative approach, more regions will not have enough cropland for solar development sites, resulting in 28 lower overall energy generation relative to utility-scale. Utility solar also has the lowest cost compared to 29 the other solar system setups, with land sparing approaches increasing transmission costs and being located 30 in relatively lower generation areas, and land sharing mostly due to high CAPEX costs and increased land 31 demand. Additionally, utility scale solar on low quality land will displace fewer crops (due to being located 32 on lower yielding cropland), and agrivoltaic setups will displace more crops than utility scale solar (due to 33 shading effects and an increase in land left idle). |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404749 |
| By: | Schoenauer, Anne; Trompke, Tilman (University of Groningen) |
| Abstract: | Purpose: This paper develops a scalable method, called tilt, and an associated dataset to estimategreenhouse gas emissions and emission reduction potentials of small and medium-sized enterprises(SMEs). Thereby, we close the SME emission data gap.Design/methodology/approach: We estimate firm-level emissions by matching firms’ productinformation to product-level emission factors and aggregating them using simulated revenue shares.We apply the method to a sample of 7, 885 German SMEs.Findings: tilt produces granular estimates that capture within-sector heterogeneity omitted bysectoral averages. Benchmarking against a sector-based model and large firms’ reported emissionsshows strong correlations, with tilt yielding more conservative estimates on average. Differences areinherent to methodological choices. We further identify high-emitting SME sectors and emission-intensive firms with high reduction potential.Research limitations/implications: We achieve representativeness through stratified sampling andpost-stratification weighting. The data enable research on SME decarbonisation pathways, regionalanalyses of sectoral emission hotspots, and linkages to financial datasets. The method is applicablebeyond Germany in other countries. Model uncertainty is documented transparently.Practical implications: The data help banks address asymmetric information in SME climaterisk assessment and enable SMEs to conduct emissions analysis and supply-chain disclosure usinginterpretable, product-based estimates.Social implications: Moving beyond sector averages, the dataset supports more targeted climatepolicy, financial regulation, and empirical evaluation of SME decarbonisation pathways.Originality/value: To the best of our knowledge, this paper introduces the first scalable methodand dataset for estimating product-based emissions and reduction potentials for SMEs. |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:gro:rugfeb:2026001-gem |
| By: | Cai, Yetian; Guan, Zhengfei; Wang, Le; Weng, Weizhe |
| Abstract: | Managed trade policies are widely used in agricultural markets and have attracted renewed attention amid rising trade protectionism, yet their environmental consequences remain poorly understood. Managed trade policies, which refer to government interventions that utilize quantitative trade restrictions to achieve specific, measurable outcomes, have garnered significant recent attention. While such policies have long been used in agricultural and food markets to support commodity prices and shield domestic producers from international competition, the empirical evidence on their environmental consequences is notably limited, especially within the context of agricultural commodities in developed economies. Using the 2014 U.S.–Mexico Suspension Agreement as a quasi-experiment, this paper presents the first empirical study to quantify the causal environmental consequences of shifting from free trade to a managed trade agreement. Exploiting agronomic constraints that tie sugarcane production to sugar mill proximity, we employ a spatial difference-in-differences design with high-resolution remote sensing data on agricultural fires and land use. There are three primary findings. First, we document an approximately 15% increase in agricultural fires in treated fields three years later, with effects varying by exposure intensity. Second, results show substantial spatial and temporal heterogeneity. The increase in fire activity only significantly happen in Louisiana and is concentrated in the early harvest window. Third, the surge primarily driven by land-use conversion rather than intensified burning on existing sugarcane fields. A back-of-the-envelope calculation suggests that these effects translate into approximately $238 million in annual environmental costs, reflecting increased smoke-related mortality and wetland ecosystem loss. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404360 |
| By: | Francois, Joseph; Hoekman, Bernard; Manchin, Miriam; Santi, Filippo |
| Abstract: | The literature on preferential trade agreements (PTAs) has mainly focused on the trade effects of non-trade provisions (NTPs) addressing environmental or labor policies. Using a dataset covering more than 120 countries and several decades, we employ a synthetic difference-in-difference estimator to study whether such provisions are accompanied with changes in associated sustainability-related performance indicators in developing countries. Given the importance the EU places on using trade to pursue sustainability goals, we differentiate between EU and other PTAs. The analysis is motivated by two arguments that have influenced the design of deep PTAs: (i) legally enforceable NTPs are more effective in improving nontrade outcomes in developing countries; and (ii) acceptance of NTPs will be accompanied by (more) aid from high-income partners. We find limited support for these arguments. Enforceable provisions have no effect on performance indicators, whereas non-enforceable provisions in non-EU PTAs are accompanied by deterioration in several outcome measures. Enforceable provisions are associated with less aid; we only find a positive relationship between EU aid and nonenforceable environmental provisions. |
| Keywords: | Official development assistance |
| JEL: | F13 F15 O19 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19917 |
| By: | Francisco Villegas (UDP - Universidad Diego Portales [Santiago - Chili]); Stefan Markovic (NEOMA - Neoma Business School); Cristina Sancha (ESADE Barcelona - Sant Cugat); Nebojsa Davcik (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School); Piyush Sharma (Curtin University); Joan Llonch (UAB - Universitat Autònoma de Barcelona = Autonomous University of Barcelona = Universidad Autónoma de Barcelona) |
| Abstract: | Among the extensive research into various environmental strategies and their effects on competitive advantage, a gap remains regarding whether small and medium-sized enterprises (SMEs) can benefit from adopting a circular economy and what kinds of internal knowledge they need to embrace it effectively. Based on survey data from 205 SME managers, this study examines how intrinsic and extrinsic learning orientations influence circular economy adoption and competitive advantage. Using structural equation modeling, we validate that both learning orientations are important in fostering the adoption of circular economy within organizations, leading to an increased competitive advantage. Our findings highlight the need for formal knowledgebuilding mechanisms and internal ecosystems to support sustainable change. Overall, our study offers a guide for learning process development for practitioners, consumers, and policymakers in SME contexts. |
| Keywords: | SMEs, Intrinsic vs. extrinsic learning orientation, Environment, Competitive advantage, Circular economy |
| Date: | 2025–09–16 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05652058 |
| By: | Schoenmaker, Dirk; Schramade, Willem |
| Abstract: | The dominant shareholder value paradigm in academic finance is a major obstacle to responsible management. The methodology for responsible management education identifies three aspects to address: building sustainability knowledge, incorporating sustainability in an integrated way, and developing practical applications. Applying this methodology to academic finance education, and based on our own teaching experience, we propose three shifts to the current approach. First, courses should start with sustainable development as the goal, i.e. finance as a means instead of finance for the sake of shareholder value maximisation. Second, courses should offer an alternative perspective to shareholder value, not just slight modifications. We suggest using the integrated value paradigm, which estimates not only financial value, but also social and environmental value, which tends to be an eye-opener to students. Third, practical learning tools could enhance the interdisciplinary learning experience of students. To achieve these shifts, business schools need to show leadership with the right tone and incentives from the top. |
| Keywords: | Education; Sustainable finance; Shareholder value |
| JEL: | A2 G1 G3 M1 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20122 |
| By: | Dong, Caroline Yifan; Fei, Chengcheng; McCarl, Bruce; Zilberman, David |
| Abstract: | U.S. farmers have reallocated land across crops on an extraordinary scale over the past thirty years, and how much of this reflects climate adaptation matters for the welfare cost of warming. A farmer who switches from cotton to soybean may be chasing higher expected returns or fleeing rising downside risk. The two motives carry very different welfare and policy implications but reduced-form acreage-share methods cannot tell them apart. We build a structural land-use framework in which risk-averse farmers choose among crops by maximizing CARA expected utility over believed non-Gaussian per-acre profit distributions. The believed distributions are constructed from a thirty-year rolling weather belief and a Just–Pope yield model. The acreageshare system estimates a behaviorally disciplined distribution of farmer absolute risk aversion from observed land shares, rather than calibrating it from surveys. Federal crop insurance enters explicitly through its indemnity-and-premium structure. The framework lets us decompose climate-driven between-crop reallocation into a productivity channel and a risk channel, evaluate the welfare value of letting farmers re-optimize across crops, and assess subsidized federal crop insurance as a climate-adaptation policy. We apply the model to U.S. county-level land-allocation data 1987–2022 and project a CMIP6 SSP2-4.5 climate forward to mid-century. Two findings emerge. Between-crop reallocation absorbs most of the welfare cost of climate change the model assigns. About one-third of the projected reallocation reflects substitution away from worsening downside risk rather than toward higher expected returns — a channel reduced-form acreage methods cannot identify — and the same one-third risk share appears retrospectively in the actually-observed 1990–2020 reallocation. |
| Keywords: | Production Economics |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404687 |
| By: | Chen, Zhang-Hangjian; Derwall, Jeroen; Gao, Xiang; Koedijk, Kees |
| Abstract: | This paper presents macro-, meso-, and firm-level measures of biodiversity risk specific to the Chinese capital market, and investigates how biodiversity risk relates to individual stock returns. Our measures indicate that biodiversity risk in China varies over time and across industries, and that aggregate attention to biodiversity issues has risen sharply over the past two decades. We then provide new evidence that corporate biodiversity risk exposure negatively relates to stock returns in the cross-section, significantly more so when aggregate attention to biodiversity issues rises and industry-level biodiversity risk increases. Furthermore, we obtain some evidence that weekly returns on a portfolio long (short) on stocks with low (high) biodiversity risk positively covary with contemporaneous shocks to aggregate biodiversity attention, although negatively with lagged shocks to attention. In addition, institutional ownership is lower when firms appear more vulnerable to biodiversity risk, even more so in years of rising attention to biodiversity. |
| Keywords: | Biodiversity risk; Stock returns; Official news; Investor perception; Internal governance |
| JEL: | G10 G11 G12 Q5 Q53 Q57 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20066 |
| By: | Lanteri, Andrea; Rampini, Adriano A. |
| Abstract: | We analyze the adoption of clean technology by heterogeneous firms subject to financing constraints. In the model, capital goods differ in terms of their energy needs and age. In equilibrium, cleaner and newer capital requires more financial resources. Therefore, financial constraints induce an endogenous pattern in clean technology adoption: Financially constrained, smaller firms optimally invest in dirtier and older capital than unconstrained, larger firms. The model is consistent with the empirical patterns of technology adoption we document using data on commercial shipping fleets. We use a calibrated version of our model to simulate the aggregate transition dynamics to cleaner technology. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20025 |
| By: | Islam, Md Sayemul; Atwood, Joseph; Nugent, Paul; Belasco, Eric |
| Abstract: | Precision agriculture (PA) and conservation tillage (CT) are promoted as risk-reducing innovations that can stabilize yields, improve input efficiency, and enhance environmental performance. Yet, if these technologies reduce production risk, they may also change farmers’ demand for federally subsidized crop insurance—an underexplored policy interaction. This study evaluates whether Virginia’s Conservation Tillage and Precision Agriculture Equipment Tax Credit—a refundable state income tax credit that subsidizes eligible PA and CT equipment purchases—affects crop insurance coverage choices for corn producers. Leveraging the tax credit as a natural experiment, we assemble a county-by-year panel combining USDA Summary of Business (SoB) crop insurance outcomes with Risk Management Agency (RMA) measures of premiums, liability, and yields over 1999–2023. We estimate a difference-in-differences model with county and year fixed effects, using an acres-weighted effective coverage rate as the primary outcome and controlling for planted area and lagged yields. Results indicate that the tax credit is associated with a statistically meaningful decline in effective coverage—approximately a 0.019-unit reduction—consistent with farmers lowering coverage after adopting risk-mitigating technologies. Findings are robust across alternative specifications and are not sensitive to statespecific time trends. Overall, the evidence suggests that state incentives for PA/CT adoption can generate spillovers into the federal crop insurance program, with potential implications for producer risk-management strategies, insurance pricing, and the public cost of premium subsidies. Keywords: precision agriculture, conservation tillage, tax credits, crop insurance, difference-in-differences, risk management. |
| Keywords: | Agribusiness |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404770 |
| By: | Cabrales, Antonio; Pomares, Gema; Ramos Muñoz, David; Sánchez, Angel |
| Abstract: | We study experimentally a new model to study the effect of climate externalities and contractual incompleteness on network formation. We model a network where good/green firms enjoy direct and indirect benefits from linking with one another. Bad/brown firms benefit from having a connection with a good firm, but they are a cost to both direct and indirect connections. In efficient networks the green firms should form large connected components with very few brown firms attached. The equilibrium networks, on the other hand, have many more brown firms attached, and components are also smaller than the efficient ones. Our experiments show that empirical results are broadly in line with the theoretical equilibrium predictions, although the precise quantitative outcomes are different from the theory. |
| Keywords: | Network formation |
| JEL: | C92 D62 D85 Q54 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19933 |
| By: | Khondaker Golam Moazzem; Maleehah Sabah Ali |
| Abstract: | Bangladesh’s business environment in 2025 is shaped by a period of political transition, economic uncertainty, and ongoing reform efforts under the interim government. Based on findings from the Executive Opinion Survey (EOS), conducted in collaboration with the World Economic Forum (WEF), this report assesses the key constraints, emerging risks, and structural challenges facing businesses. Despite reform initiatives, persistent issues such as corruption, policy instability, bureaucratic inefficiencies, and limited access to finance continue to hinder business operations. |
| Keywords: | Business Environment, Executive Survey, Economic Reforms, Policy Stability, Business Climate, Corruption, Access Finance, Economic Resilience, Sustainable Growth, Bangladesh Economy |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:report:85 |
| By: | McFadden, Jonathan; Rosburg, Alicia; Lim, Katherine; Arbuckle, J. Gordon |
| Abstract: | Digital agriculture is typically evaluated through productivity and environmental outcomes, yet its heterogeneous effects on farmers’ wellbeing remain poorly understood. Using Iowa farmer survey data, we estimate associations between five digital technologies and eleven wellbeing outcomes and interpret those patterns using thematic coding of farmers’ open-ended comments to assess how digitalization has changed farming and farmer wellbeing. Autosteer is consistently associated with reduced fatigue and higher productivity, whereas yield monitoring and mapping show weaker and narrower benefits. Drones align with coordination- and stressrelated benefits, and variable-rate systems with time-flexibility outcomes. Digital agriculture (DA) is chiefly framed as a transformative pathway to more efficient, resilient, and sustainable global food production1, 2. Precision guidance, automated sensing, highly detailed geospatial data, and decision-support tools can help farmers manage within-field variability while reducing input use and improving the timing of operations1, 3, 4. Yet these technologies also reorganize farm work, reshape how information is interpreted, and redistribute responsibilities between farmers and digital systems2, 5. For farmers and their households, such changes may be as meaningful as improvements in yields or input efficiency6. A growing literature examines both the promise and risks of DA. Some studies emphasize its role in sustainability monitoring, precision input use, and climate-smart management1–3. Others highlight a set of tangible risks, including heightened surveillance, data ownership and privacy concerns, technological lock-in, and power imbalances between farmers and technology providers5. Qualitative and critical social-science scholarship has argued that digitalization reorganizes labor, expertise, and control within farming systems5, 7, 8, raising concerns about farmer autonomy and broader inequities, but quantitative evidence remains limited on how specific technologies have affected multiple dimensions of farmer wellbeing in large samples, and on how these patterns align with farmers’ own accounts of daily work. Policies promoting DA often implicitly assume that technologies generating productivity, environmental, or resilience gains improve farmer welfare9. Yet if technologies redistribute stress, time burdens, managerial complexity, or technological dependency unevenly across farmers and/or tools, then adoption incentives may produce mixed wellbeing outcomes even when agronomic performance improves. Understanding how diverse technologies influence farmer wellbeing differently is therefore important not only for food systems research, but for designing targeted policies to improve rural livelihoods in the face of fundamental changes to the labor structure of farming. We address this gap by evaluating DA through the lens of multidimensional farmer wellbeing, moving beyond conventional evaluations focused mainly on adoption and productivity. We estimate how five common digital technologies—autosteer, yield monitors, soil mapping, variable rate equipment, and uncrewed aerial vehicles (UAV) —associate with eleven wellbeing outcomes—time pressure, physical labor, non-farm time, time flexibility, multiple forms of stress, fatigue, technology-failure pressures, and perceived productivity—and interpret these patterns using farmers’ own accounts. Our approach connects DA research with broader food-systems work emphasizing trade-offs, sustainable transitions, and farmer decision-making with direct evidence on the lived experience of farm work4, 10–12. We show that DA impacts vary systematically across technologies and wellbeing dimensions, with a redistribution of physical, cognitive, and managerial burdens that are highly tool specific. Reported adoption rates broadly align with representative adoption estimates from USDA’s Agricultural Resource Management Survey (ARMS) for Iowa and the broader Midwest (Table S1.1), supporting external validity in a major U.S. field crop adoption setting. |
| Keywords: | Consumer/Household Economics, Labor and Human Capital |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404611 |
| By: | Trovillion, Alexander P.; Piggott, Nicholas E.; Poole, Chad A. |
| Abstract: | Water management technologies−including center pivot irrigation, subsurface drip irrigation, tile drainage, and open ditch drainage−require substantial upfront capital investments, yet their economic viability in the humid southeastern United States remains poorly understood. Previous research has largely evaluated irrigation and drainage technologies independently; this study jointly assesses both strategies for corn production in North Carolina’s northern coastal region, the Blacklands. This study develops and applies a farm-scale profitability framework in which corn yield responses to eighteen water management strategies are simulated using DRAINMOD (Skaggs, 2013), calibrated against field trial data, and integrated with empirical cost estimates through a novel grid search-based numerical optimization approach spanning 20 years of historical data (2005-2024). We find that drainage is the primary driver of profitability in the poorly drained Blacklands. Open ditch drainage with no land leveling or irrigation yields the shortest payback period (0.91 years), the highest net present value ($235, 096.81), and the highest internal rate of return (32.52%), while subsurface drip irrigation combined with tile drainage and no land leveling generates the highest mean annual per-acre profit ($337.85). An important economic finding is that the profit-maximizing level of water management is generally less intensive than the agronomic optimum, highlighting the need to account for investment and operating costs in technology adoption decisions. These results are consistent with stakeholder sentiment and indicate that excess water is the primary limiting hydrological factor in the Blacklands. The framework in this study is designed to be transferable across North Carolina’s diverse agronomic regions as additional calibration data become available, and it has the potential to generate spatially differentiated profitability estimates that can help producers, policymakers, and stakeholders make more informed investment decisions. |
| Keywords: | Productivity Analysis, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404710 |
| By: | Mwebaze, Paul; Khanna, Madhu; Majeed, Fahd; Mishra, Bijesh; Miao, Ruiqing |
| Abstract: | Utility-scale solar expansion across U.S. croplands is intensifying food–energy land-use conflicts, particularly in the Midwest. Agrivoltaics (AV), the co-location of photovoltaic systems with agricultural production, offers a potential land-use solution, but its scalability depends on farmer adoption. This study examines how financial incentives, operational requirements, and behavioral factors shape AV adoption decisions using a discrete choice experiment with 177 farmers across 12 Midwestern states (708 choice observations). The experiment evaluates attributes that directly affect farm profitability, risk exposure, and management complexity, including lease payments, income variability, land share under panels, and requirements for new equipment or crop switching. We model adoption as a joint discrete–continuous decision, capturing both the likelihood of adoption and the extent of land allocation to AV. Results show that higher lease payments significantly increase both the probability of adoption and land allocation, highlighting the importance of stable and attractive compensation. In contrast, operational complexity, particularly requirements for new equipment, reduces adoption and generates substantial implicit costs in willingness-to-accept (WTA) estimates. Behavioral characteristics also matter: farmers with higher discount rates are less likely to adopt, whereas risk-tolerant farmers are more willing to participate. Latent class analysis further reveals substantial heterogeneity, distinguishing a majority of cautious “moderate adopters” from a smaller group of “high-intensity adopters” that is more responsive to stable income streams and higher lease compensation. Overall, the findings suggest that financially attractive and operationally simple AV contracts will be critical for scaling adoption while preserving agricultural production. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404508 |
| By: | Arnaud Costinot; Iván Werning |
| Abstract: | We develop a simple and intuitive Pigouvian perspective on optimal trade policy. Our approach unifies a wide range of rationales for taxing trade, from the classical optimal tariff argument to contemporary debates about global carbon emissions and geopolitics. We also clarify when trade policy intervention is warranted and when alternative domestic instruments should be used instead. |
| JEL: | F10 F13 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35461 |
| By: | José Alves; João Estevão |
| Abstract: | Europe’s energy geopolitics is usually told as a story of changing suppliers – Russian gas yesterday, Chinese clean technology tomorrow. Electrification adds a second, more local geopolitics, defined by who sits at the centre of the grid, who runs into bottlenecks, and who can call on flexibility when stress hits. Using public data alone, we build a bidding-zone-month panel covering 41 European zones over 2019-2025 and test six pre-stated hypotheses about how this internal layer redistributes price volatility, negative-price exposure, net imports, and cross-border price gaps. Three findings survive our identification checks. More cross-zonal capacity lowers net imports in average months, confirmed quasi-experimentally around the NordLink and Viking Link HVDC commissionings. Higher renewable shares raise within-month price volatility once network position is held fixed – about 1.8 EUR/MWh per ten percentage points of renewable share – concentrated in the network-central half of the panel. And the 2022 gas crisis widened the gap between EU-27 and non-EU European zones: integration transmitted the shock into the most-connected jurisdictions instead of dampening it. The flexibility-moderation prediction fails. Energy sovereignty in an electrified Europe is best understood as advantageous positioning within regional infrastructure, not separation from it; integration is double-edged. |
| Keywords: | electricity interdependence; energy transition; strategic vulnerability; congestion; Europe; energy security. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp04252026 |
| By: | Geleta, Solomon |
| Abstract: | Organic transition support programs are an incentive-design problem under asymmetric information. Policymakers cannot observe farm-specific transition costs, yield outcomes, or compliance capabilities. As a result, uniform and static payment structures can generate information rents for low-cost adopters, fail to attract high-cost but potentially high-value participants, and create moral hazard during the multi-year transition period when compliance is costly to monitor. We develop an integrated bio-economic and mechanism-design framework to evaluate how federal organic transition programs affect adoption incentives, transition costs, compliance behavior, and program efficiency. Farm-level linear-programming models are calibrated to USDA Census of Agriculture microdata for conventional operations and certified organic farms to generate farm-specific conversion-cost distributions, which serve as the type space for mechanism evaluation. Programs are assessed on six criteria: individual-rationality satisfaction, incentive-compatibility compliance, participation rates, targeting efficiency, information rents, and deadweight loss relative to the full-information first-best benchmark. Static support scenarios, including certification cost share through the Organic Certification Cost Share Program (OCCSP) and practice-based conservation payments through the Environmental Quality Incentives Program (EQIP), do not achieve break-even within the transition period for the majority of farms in our simulations. Cumulative four-year returns remain negative under all static scenarios evaluated. A theoretical dynamic mechanism, budget-matched to the Environmental Quality Incentives Program–Organic Transition Initiative (EQIP-OTI) over the three-year transition window and structured as a front-loaded, declining payment conditioned on verifiable transition milestones, achieves positive Year 1 returns, the highest targeting correlation, and the lowest rents-to-budget ratio among all evaluated configurations, outperforming all static programs on fiscal efficiency. The highest steady-state adoption rate (86.3 percent individual-rationality satisfaction) is achieved by combining market premiums with practice-based cost share, but this scenario also produces the largest deadweight loss (35.1 percent of first-best welfare) due to additive information rents. These results establish a quantitative efficiency-adoption tradeoff at the core of organic transition program design. Effective policy should use dynamic, declining payment structures as the core mechanism, offer sizeand production-type-differentiated contract menus to exploit observable heterogeneity, condition continuation on verifiable milestones rather than self-reported costs, and integrate financial transfers with technical assistance and market-development support. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404389 |
| By: | Ritika Juneja (Indian Council for Research on International Economic Relations (ICRIER)); Sachchida Nand; Emil Thomas Johny; Ashok Gulati |
| Abstract: | The policy brief proposes a comprehensive reform agenda that includes the gradual decontrol of urea through a farmer-centric Direct Benefit Transfer (DBT) mechanism, rationalisation and expansion of the NBS framework, promotion of balanced and sulphur-based nutrient management, diversification of fertiliser import sources and feedstocks, establishment of strategic fertiliser reserves, and accelerated investments in domestic production of green ammonia and other low-carbon fertiliser inputs. More fundamentally, the brief argues that fertiliser policy must move beyond its traditional role as an agricultural support instrument. In an increasingly uncertain world characterised by geopolitical tensions, climate change, and volatile global commodity markets, fertiliser security should be viewed as a strategic national priority—integral to India's food security, fiscal stability, energy resilience, and long-term economic competitiveness. |
| Keywords: | Fertiliser, Geopolitical Disruption, Strait of Hormuz, Fertiliser Pricing Policies, icrier |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:bdc:ppaper:75 |
| By: | Ahlvik, Lassi; Kaariaho, Tuomas; Liski, Matti; Vehviläinen, Iivo |
| Abstract: | This paper studies household responses to a sharp energy price increase. Using Finnish household-level microdata from the 2022 European Energy Crisis, we exploit quasi-random contract expiration dates to identify adjustments across key margins: energy use, earnings, financial distress, and residual consumption. High- and middle-income households primarily reduce electricity use and modestly increase earnings, whereas low-income groups lack these adjustment channels, facing rising defaults and cutbacks in other spending. Households with an anticipation period adjust electricity use in advance, softening the impacts of the price shock. We apply these results to quantify the incidence of a hypothetical carbon price. |
| JEL: | H23 Q41 Q54 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19972 |
| By: | Zhao, Xuemei; Yu, Xiaohua |
| Abstract: | Cost–price squeeze (CPS) is an important but under-measured form of producer-side stress in food systems. It occurs when rising production costs are not sufficiently matched by output-price adjustments, resulting in compressed producer margins. While existing research has documented agricultural profitability pressures in specific commodities or countries, less is known about the conditions under which CPS emerges across global staple crop systems. This paper examines the drivers of CPS using a harmonized country–year panel for maize, wheat, and rice systems over 2000–2023. Building on an outcome-based CPS indicator developed in a companion pattern paper, we estimate fixed-effects models, fertilizer shock-exposure specifications, placebo tests, and machine-learning prediction models. The results show that exchange-rate pressure is the most stable external predictor of CPS risk, suggesting that macro-external price exposure plays an important role in producer margin stress. More importantly, global fertilizer price shocks disproportionately increase CPS risk in countries with higher pre-period fertilizer intensity. This shock-exposure result remains robust after controlling for lagged macroeconomic, food-trade, agricultural-structure, and climate variables, while a lead-shock placebo is statistically insignificant. Nutrient-specific estimates indicate that nitrogen exposure is the most consistent fertilizer-related channel. Machine-learning models provide complementary predictive validation: Random Forest, XGBoost, and LASSO-logit models achieve meaningful out-of-sample performance, and fertilizer shock exposure, nitrogen shock exposure, food-trade variables, and global fertilizer shocks rank among the most important predictors. The findings suggest that CPS risk emerges from the interaction between external cost shocks and country-specific exposure structures, highlighting the importance of monitoring input dependence as an early-warning indicator of food-system vulnerability. |
| Keywords: | Marketing |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404541 |
| By: | Niazi, Kamran; Poudel, Dixit; Burrone, Sara; Bologna, Giulio; Lombardi, Niccolo; Scognamillo, Antonio |
| Abstract: | Anticipatory cash transfers, i.e. disbursed before climate shocks materialise rather than after, are expanding rapidly across fragile settings, yet rigorous evidence on their effectiveness in slow-onset drought contexts remains scarce. This study provides one of the first quasi-experimental evaluations of Early Warning-based Anticipatory Cash Transfers (EWACT) targeting a slow-onset drought in a fragile, conflict-affected setting, using three rounds of panel data from 1, 635 households in Baidoa district, Somalia (2024–2025) and a difference-in-differences design with inverse probability weighting. Results show that treated households significantly increased savings and crop reserves and improved debt repayment capacity, the intermediary outcomes of the asset-protection, savings, and debt-management pathways, which translated into a 33 percentage-point improvement in food consumption scores and a 7 percentage-point reduction in crop losses at midline. No significant effects on livestock mortality were detected. Effects on mobility and displacement, reveal a reduction in both, with mobility effect that deepens from 5 to 12 percentage points between midline and endline, even as food security gains dissipate. An instrumental variable extension shows that food security benefits are front-loaded and fade with elapsed time since transfer, while financial stock outcomes persist across seasons. This temporal asymmetry, transient food security improvements alongside a strengthening and durable reduction in mobility, is the paper's central empirical contribution, with implications for the design, sequencing, and cost-effectiveness of anticipatory action in fragile, drought-prone contexts. |
| Keywords: | Food Consumption/Nutrition/Food Safety |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404575 |
| By: | Lykke E. Andersen (SDSN Bolivia); Fabiana Argandoña (SDSN Bolivia); Diego Leonel Calderón Acebey (SDSN Bolivia); Carla Olmos (SDSN Bolivia) |
| Abstract: | Este documento busca presentar la metodología empleada para calcular el valor de las plantas silvestres utilizadas para la nutrición en Bolivia. Específicamente, se calcula el Beneficio Local Anual Actual (BLAA) y el Valor Económico Total Anual Potencial (VETAP) para cuatro plantas silvestres utilizadas para alimentación que son responsables del 98% de toda la recolección de plantas de este tipo en Bolivia. Estas son, castaña, fruto de almendrillo, asaí y cacao silvestre. Se localizó la distribución espacial de estos valores según condiciones óptimas de crecimiento para cada especie, generando así mapas de valor de las plantas silvestres utilizadas para la nutrición en Bolivia. Finalmente, se calcula estos valores para todas las Áreas Protegidas y Territorios Indígenas de Bolivia. |
| Keywords: | Servicios Ecosistémicos, Valor Plantas Silvestres, Áreas Protegidas, Territorios Indígenas, Bolivia. |
| JEL: | Q56 Q57 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iad:sdsnwp:0525 |
| By: | Nicola Bartolini; Silvia Romagnoli; Amia Santini |
| Abstract: | Power Purchase Agreements (PPAs) are bilateral over-the-counter contracts central to renewable energy financing. While their capacity to stabilise revenues and hedge price risk is well recognised, their OTC structure exposes both parties to counterparty credit risk. This is a dimension yet to be explored in the literature, particularly given the dual price and volumetric uncertainty inherent in renewable sources. This paper develops a framework for the pricing and valuation of wind power PPAs and for quantifying this risk through Credit Valuation Adjustment (CVA) and Debit Valuation Adjustment (DVA). We model the joint dynamics of electricity spot prices and renewable output, incorporate default probabilities, and compute valuation adjustments that reflect the fair value of bilateral credit risk. The framework provides market participants with a transparent metric for PPA valuation under counterparty risk. While initiatives such as the European Investment Bank's pilot guarantee scheme aim to mitigate credit risk for certain offtakers, such interventions do not cover all PPA transactions. Rigorous internal credit risk assessment therefore remains indispensable for lenders, producers, and offtakers alike. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.04781 |
| By: | Elham Soufiani; Mehrdad Pirnia |
| Abstract: | This paper presents a multi-period mixed-integer linear programming (MILP) framework for planning the transition from conventional to electric aircraft in regional aviation. The model jointly optimizes fleet acquisition, infrastructure deployment, and service allocation over time, while accounting for policy constraints such as emissions reduction targets, electric service share, and budget limits. A real-world case study based on Helijet's short-haul network in British Columbia demonstrates the applicability of the model. The results show that electrification can reduce emissions by more than 70\% within five years while remaining economically viable. However, the transition is primarily limited by the capacity of the fleet and operational structure, rather than the charging infrastructure, leading to unmet demand under direct aircraft replacement. These findings emphasize the need for coordinated planning across fleet sizing, scheduling, and route prioritization to ensure a practical and efficient transition to electric aviation. |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2606.28312 |
| By: | Florian Fizaine (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Guillaume Le Borgne (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, IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Gregory Chatel (EDYTEM - Environnements, Dynamiques et Territoires de Montagne - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc - CNRS - Centre National de la Recherche Scientifique - Fédération OSUG - Observatoire des Sciences de l'Univers de Grenoble) |
| Abstract: | The concept of the circular economy (CE) has gained increasing prominence over the past decade, yet its meaning remains ambiguous and often diverges from the original vision of early CE pioneers. Understanding how this ambiguity shapes public perceptions is critical for the effective design and implementation of CE policies. Drawing on a survey of 1281 respondents in France, this study examines individuals' familiarity with CE, their spontaneous definitions, and their prioritization of circular strategies using the 5R hierarchy (refuse, reduce, reuse, repair, recycle). The results reveal a strong and asymmetric polarization of CE representations, structured around the acceptance or rejection of the refuse (sufficiency) lever. Recycling and reuse dominate spontaneous definitions, while reuse and recycling are prioritized when respondents explicitly rank CE levers. By contrast, refuse remains marginal despite its central role in strong circularity approaches. Socio-economic characteristics do not robustly explain this polarization. However, respondents whose preferences align more closely with strong circularity—consistent with the pioneers' vision—report higher levels of pro-environmental behaviors and stronger support for CE-related public policies. These findings highlight a persistent gap between weak and strong circularity representations and suggest important implications for CE communication strategies and public policymaking. |
| Keywords: | Sufficiency, Perception, Recycling, 5R, Ranking, Circular economy |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05682944 |
| By: | Andrew G. Ross; Julia Gershenzon; Andreas Kleefeld |
| Abstract: | Assessments of structural change and economic transition dynamics, such as those arising in the energy transition, depend on internally consistent qualitative scenarios specifying the policy environment, technology mix, governance arrangements, and demand conditions. Cross-Impact Balance (CIB) analysis derives such socio-technical scenarios as fixed-point attractors of an expert-elicited interdependency network, supplying structural inputs upon which assessment models (including energy system optimisation, agent-based, and general equilibrium frameworks) can draw. Standard CIB, however, delivers only this equilibrium catalogue, leaving four structural questions unanswered: how much network-weighted effort a given transition requires; which components are the true system-wide levers once indirect influence chains are counted; in what sequence the system adjusts; and how the network at a given attractor responds to an external shock. This paper extends CIB through Linear Response Theory, exploiting a structural isomorphism between the CIB drift matrix and the Leontief input-output technology matrix. Four analytical objects are derived in closed form: the Type I cross-impact multiplier, which aggregates all direct and indirect influence chains; the perturbation budget, a network-weighted and directionally asymmetric measure of transition effort; the impulse response function, which traces descriptor adjustment sequences and feedback-induced overshoots; and the unit-impulse shock profile, which characterises attractor-specific network sensitivity and yields a direct measure of structural resilience and susceptibility. The framework is applied empirically to an energy-transition cross-impact matrix, yielding all four objects for five structural equilibria, and transfers to any domain in which pairwise influence scores encode structural interdependencies. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.12414 |
| By: | Robinson, Anya; Parés Olguín, Francisco; Hwang, Roland; Ramji, Aditya |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2026–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt14d9497v |
| By: | Alexander Rincón Ruiz |
| Abstract: | Colombia y el mundo enfrentan una crisis socioecológica que cuestiona las bases estructurales de su modelo de desarrollo. La degradación ambiental, la persistencia de desigualdades y la intensificación de conflictos territoriales revelan los límites de una arquitectura económica centrada en el crecimiento, la acumulación y la mercantilización de la naturaleza. En este contexto, procesos de articulación como el Encuentro Internacional de Economías para la Vida (ECOOVIDA) 2026 constituyen hitos históricos que consolidan una convergencia ética y política en torno a la centralidad de la vida como principio orientador de la acción pública (ECOOVIDA, 2026). Este artículo propone el enfoque de economías diversas y economías otras para la vida (Rincón Ruiz, 2026a) como una orientación estructural para repensar la política pública en Colombia. Más allá de ajustes sectoriales o enfoques de economía verde, se argumenta que optar por economías para la vida implica interrogar la arquitectura macroeconómica —sus métricas, incentivos fiscales, prioridades productivas y marcos financieros— y explorar transiciones graduales hacia una política económica orientada a la reproducción ampliada de la vida humana y no humana. En diálogo con la Evaluación sobre Cambios Transformadores de la IPBES (2024), el texto ofrece una lectura situada de los desafíos de transformación estructural en contextos de alta complejidad y conflicto (IPBES, 2024). Lejos de presentar un modelo cerrado, el artículo propone una brújula conceptual que permita articular experiencias territoriales, marcos constitucionales y debates macroeconómicos en la construcción de trayectorias de transición coherentes con la justicia ecológica y la diversidad biocultural del país. |
| Keywords: | economías para la vida; cambio transformador; límites planetarios; IPBES; soluciones planetarias; crisis ambiental |
| JEL: | Q01 Q57 O13 P48 R11 B55 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:col:000176:023143 |
| By: | Minh Ha-Duong (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) |
| Abstract: | Depuis le début des années 1990, la finance climat est passée d'une expression floue des politiques internationales à un objet économique central, quantifié, comparé et audité dans les négociations climatiques, au sein de l'OCDE et des banques multilatérales de développement. Les engagements collectifs successifs – de l'objectif des 100 milliards de dollars par an adopté à Copenhague en 2009 au nouvel objectif quantifié de 300 milliards à l'horizon 2035 fixé à Bakou en 2024 – ont fait de la finance climat un point nodal de la gouvernance climatique internationale. Pourtant, malgré trois décennies d'efforts statistiques, les controverses persistent quant à ce qui doit être comptabilisé comme finance climat, à la manière de l'évaluer et à l'attribution des responsabilités entre acteurs. Nous proposons une analyse historique de la construction de la finance climat comme objet économique entre 1990 et 2025. Elle s'éloigne d'une lecture qui ferait de la finance climat une simple extension technique de l'économie de l'environnement ou de l'économie du climat fondée sur la modélisation intégrée. Si les travaux fondateurs sur les externalités et les contraintes environnementales collectives (Ayres et Kneese, 1969), puis les modèles centrés sur la croissance, les dommages, le risque et le temps (Manne et Richels, 1992 ; Nordhaus, 1992 ; Stern, 2007 ; Weitzman, 2007), ont structuré une partie de l'expertise climatique, la question du partage international de l'effort financier s'est développée en grande partie en dehors de ces cadres. La finance climat a émergé principalement à travers l'entrelacement des négociations internationales, des pratiques de la finance du développement et des outils comptables mobilisés pour rendre opératoires des engagements politiques. À l'OCDE, et en particulier au sein du Comité d'aide au développement, des économistes comme Jan Corfee-Morlot ont joué un rôle central dans la mise en place d'infrastructures statistiques – marqueurs de Rio, méthodes d'évaluation en équivalent-don, cadres de suivi et de déclaration – qui ont permis de rendre la finance climat visible et mesurable dans les cadres existants de l'aide publique au développement (Corfee-Morlot et al., 2009, 2012). Ces catégories comptables sont rapidement devenues des lieux de controverse au sein de la discipline économique. D'un côté, des approches fondées sur la correction des défaillances de marché ont mis l'accent sur l'efficacité, l'effet de levier et la mobilisation du capital privé, justifiant le recours à la finance mixte et aux instruments de réduction du risque. De l'autre, des économistes inscrits dans une perspective d'économie politique ont contesté tant les conventions de mesure que leurs implications normatives. Axel et Katharina Michaelowa ont mis en évidence les incitations à la surévaluation inhérentes aux marqueurs de Rio (Michaelowa et Michaelowa, 2007), tandis que Romain Weikmans et J. Timmons Roberts ont interprété les controverses récurrentes comme l'expression de conflits distributifs non résolus entre Nord et Sud (Roberts et Weikmans, 2017 ; Weikmans et Roberts, 2019). À travers quatre controverses récurrentes – la valorisation des prêts concessionnels, la crédibilité des marqueurs de Rio, l'attribution de la finance privée mobilisée et la frontière entre aide au développement et obligations climatiques – nous montrons que les économistes ont agi non seulement comme experts techniques, mais comme acteurs à la frontière science-société, redéfinissant en permanence ce que la finance climat est et devrait être. La finance climat apparaît ainsi comme un cas privilégié pour analyser les limites politiques de la quantification économique en gouvernance internationale. |
| Keywords: | organisations internationales, catégories comptables, quantification, finance climat |
| Date: | 2026–07–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05681943 |
| By: | Bolay, Matthieu; Knierzinger, Johannes; Pastré, Paule |
| Abstract: | Investor–state dispute settlement (ISDS) has become a key site where extractive capitalism collides with sovereignty claims by eroding democratic decision making, draining public budgets, and constraining climate policies. Yet, despite mounting calls for reform or abolition, withdrawals from the investment treaty regime remain rare. This article investigates the promises and processes of exit through three case studies where governments faced disputes with extractive investors over redistribution (Tanzania), anti-racism (South Africa) and climate policy (Slovenia), which catalyzed reappraisals of foreign investment protection. Drawing on interviews and fieldwork within the epistemic communities of investment arbitration (lawyers and arbitrators, government agents, activists) in the three countries, the article conceptualizes ISDS withdrawal as contentious politics that operates at the intersection of national projects, transnational legal orders, and the ambiguous mobilizations of civil society groups. “Civil society” preserved or even enforced the apolitical framing of ISDS while seeking to prevent exposure to it. Successful opt-out campaigns thus have to combine international solidarization and coordination with careful considerations concerning the generated level of contentiousness on the national scale. |
| Keywords: | arbitration;contentious Politics;investor-state dispute Settlement (ISDS);mining;Slovenia;South-Africa;Tanzania;treaty withdrawal |
| JEL: | J1 |
| Date: | 2026–06–27 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:140158 |
| By: | Lykke E. Andersen (SDSN Bolivia); Fabiana Argandoña (SDSN Bolivia); Diego Leonel Calderón Acebey (SDSN Bolivia) |
| Abstract: | En este documento se calcula el valor de la producción de madera en Bolivia, específicamente el Beneficio Local Anual Actual (BLAA) y el Valor Económico Total Anual Potencial (VETAP) asociados a la extracción de madera de diferentes especies reportada en el país. Asimismo, se determina la distribución espacial aproximada de estos valores según los tipos de madera reportados en los diferentes municipios, asignándolos a áreas de bosque mediante una distribución aleatoria, de acuerdo con la composición de su extracción. Finalmente, estos valores se calculan para todas las Áreas Protegidas y los Territorios Indígenas de Bolivia. |
| Keywords: | Servicios Ecosistémicos, Producción de Madera, Áreas Protegidas, Territorios Indígenas, Bolivia. |
| JEL: | Q56 Q57 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:iad:sdsnwp:0425 |
| By: | Fuad, Syed; Farmer, Michael |
| Abstract: | A growing literature documents that distance variables (e.g., distance to CBD, distance to nearest train station, distance to amenity) are not identified in multivariate regressions because the change in distance to one landmark mechanically predetermines the change in distance to every other. A recently proposed fixed-point correction unpacks the Euclidean distance formula into four nested directional terms (Δx, Δx², Δy, Δy²) anchored at any arbitrary reference point, and shows that this construction (i) stabilises all non-correction coefficients against the choice of anchor, (ii) preserves overall model efficiency, and (iii) absorbs the position information that a distance variable imperfectly proxies. We apply the correction to five published studies spanning urban economics, environmental economics, and industrial organisation: Ahlfeldt, Redding, Sturm and Wolf (2015) on the Berlin Wall; Harrison and Rubinfeld (1978) on Boston air quality; Heblich, Redding and Sturm (2020) on the London Underground; Diao, Li, Sing and Zhan (2023) on Singapore's MRT; and Kalnins and LaFontaine (2013) on franchise outlet survival. Three of the five headlines shift by 8 to 49 percent under the correction. In Harrison and Rubinfeld's data, the canonical clean-air willingness-to-pay estimate of $15, 927 per unit NOₓ reduction is halved to $8, 049, a result that, given the paper's enduring influence on environmental valuation, has independent substantive significance. In Heblich, Redding and Sturm (2020), where parish fixed effects already absorb time-invariant position, the correction is collinear with the existing controls and is correctly inert. In Kalnins and LaFontaine (2013), where the distance variable measures genuinely bilateral spatial structure between an outlet and its own headquarters, the correction also leaves the headline essentially unchanged. We show that when the correction shifts the headline is predictable from the role the distance variable plays in the original specification: it shifts when distance proxies for a broader spatial concept that the model does not otherwise absorb, and is inert when it captures bilateral spatial information that is genuinely orthogonal to position. |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404724 |
| By: | Coskun, Ali; Suplicki, Emma |
| Abstract: | The equine industry occupies a unique position in the intersection of agriculture, recreation, tourism, sports management, service delivery, and animal welfare. Equine businesses contribute significantly to rural economies and community development through several activities. Despite their economic and social importance, many equine enterprises, particularly small and mediumsized businesses, continue to operate with informal management practices, limited governance structures, and minimal internal control systems. Consequently, these organizations face a variety of financial, operational, compliance, safety, environmental, and reputational risks that may threaten long-term sustainability and organizational resilience. This conceptual study examines the application of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control Framework within small and medium-sized equine businesses. Drawing upon the literature on internal control, risk management, sustainability, and equine business management, the study identifies the major risks facing equine enterprises and develops a COSO-based internal control framework tailored to the industry's unique operational characteristics. The framework demonstrates how the five COSO components can be adapted to strengthen governance, improve decision-making, enhance compliance, safeguard assets, support horse welfare, and improve organizational performance. The paper also presents a practical implementation roadmap designed specifically for equine SMEs, providing guidance for integrating internal controls into routine operations without requiring complex organizational structures or significant additional resources. By embedding internal controls into everyday management processes, equine businesses can improve accountability, strengthen risk management, enhance stakeholder confidence, and better align operational activities with sustainability objectives. The study contributes to the limited literature on governance and internal control in the equine sector by extending the application of the COSO framework to an 3 underexplored industry. It positions internal control not merely as a compliance mechanism but as a strategic management tool that supports financial sustainability, operational effectiveness, horse welfare, stakeholder trust, and long-term organizational |
| Keywords: | Agribusiness |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404768 |
| By: | Majeed, Fahd; Cooper, Joseph; Khanna, Madhu; Miao, Ruiqing |
| Abstract: | The potential for cover cropping to reduce the riskiness of row crop yields has led to interest in considering crop insurance premium subsidies as a mechanism to induce adoption. We develop an integrated framework that links an economic model with a biogeochemical model to analyze the incentives for a utility- maximizing farmer, with varying risk and time preferences, to adopt cover cropping across spatially heterogeneous counties in the rainfed region of the United States. We use this framework to examine the effects of increasing insurance premium subsidies linked to cover cropping on the level and spatial pattern of cover cropping and its implications for policy costs. Our results show that both without and with 20 insurance subsidy policy interventions, farmers do not have an incentive to adopt cover crops in the 21 Midwest. But crop insurance subsidies for cover cropping can be effective in incentivizing adoption 22 the Great Plains and southern states where premiums are higher and net costs of cover cropping lower. 23 We find that the actuarially fair reduction in insurance premiums for cover cropping would be about 24 $5-7 per acre per year in the Midwest, which is not enough to meet the costs of cover cropping, and 25 $25-40 per acre per year in the southern states and Great Plains. Additionally, we show that when crop 26 insurance is already heavily subsidized, additional subsidies linked to cover cropping do not 27 significantly affect the downside risk, which is already largely covered. Lastly, we show that crop 28 insurance subsidies alongside a uniform per-acre payment for cover cropping of $30 per acre can 29 incentivize some adoption in the Midwest by meeting cover cropping costs and monetizing the risk 30 reduction it provides. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404396 |
| By: | Allen, Robert |
| Abstract: | The paper uses basic theories of Marx on social structure and Malthus on demography to explain many features of Arabia in terms of the arid environment. The focus is on traditional Arabia, but it is argued that the same consideration continue to apply to modern Arabia. Beginning with the desert, it is argued that the only viable economic activity in ‘traditional’ Arabia was herding, and the only feasible system of property was communal ownership. Malthusian demography implies that the population expanded until the average product of labour equaled subsistence. Since labour was at subsistence and land had no value, neither could provide a tax base for a state. Hence, the social system was tribal–tribes had no budgets. There were two exceptions: International trade could be taxed, as in Yemen. Oasis land could also be taxed. Water meant that the average product of labour exceeded the marginal, which equaled subsistence. The difference was a taxable surplus. Some Bedouin tribes claimed ownership of oases and the implications are analyzed. The Saudi states that emerged beginning in the eighteenth century were Bedouin sheikhdoms writ large. Their finance came from oases like al-Hasa and al-Qatif near the Gulf Coast. With Shiite populations, Wahabism proved a useful ideology to justify their plundering by Sunni tribes from the interior. The finances of the Gulf Sheikhdoms are also analyzed as are the finances and investment strategies of the rulers of Oman as well as the role of slavery. Oman is a good example of a hydraulic civilization. Oil replaces water in modern Arabia, and guest workers replace slaves, but the system continues much as before since it continues to meet many needs. Wahabism continues its useful ideological role since the oil fields happen to be adjacent to the al-Hasa oasis. |
| JEL: | N35 N55 P48 Q15 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20279 |
| By: | Robinson, Anya; Parés Olguín, Francisco; Hwang, Roland; Ramji, Aditya |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2026–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt9f60f7gb |
| By: | Tong, Jingyi; Comito, Jacqueline; Zhang, Wendong |
| Abstract: | Edge-of-field conservation practices can reduce nutrient losses from agricultural landscapes, but adoption remains limited, especially for structural practices that require land-use change and program participation. This paper examines whether the gender of farmer messengers affects Iowa farmers’ willingness to adopt water quality enhancement wetlands (WQEW). We use a 2024 online survey experiment in which farmers and landowners were randomly assigned to receive no supplemental information or farmer-messenger treatments that varied messenger gender, delivery format, and wildlife-benefit content. Respondents then answered a dichotomous-choice contingent valuation question under randomized cost-share offers. Logit models with respondent gender interactions show strongly gender-asymmetric messenger effects. Female farmers respond much more strongly to male farmer messengers than to female farmer messengers, and male messengers largely close the predicted adoption gap between female and male farmers. Male farmers, by contrast, are largely messenger-neutral. Message format also matters: a video treatment with wildlife benefits reduces the messenger-gender gap among female farmers. Willingness-to-accept estimates show that respondents are relatively insensitive to the offered cost-share range and often require compensation above full cost reimbursement. The information treatments have economically meaningful shadow values, especially for female farmers, by lowering implied compensation requirements for WQEW adoption. |
| Keywords: | Productivity Analysis, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404878 |
| By: | Yoshiko NAIKI |
| Abstract: | This paper addresses trade-law aspects of battery supply chains by focusing on data sharing. This focus stems from the ambition of the European Union (EU) to regulate battery supply chains through the establishment of battery passports (or digital product passports). The EU has two primary objectives based on its circular economy policy: establishing a recycling system for batteries (to close the production loop) and supporting the competitiveness of EU industries in battery production. On this point, the EU is motivated by both sustainability concerns and geopolitical interests in its battery production. In this regard, it is important to recognize that battery passports are relevant to economic security policies. This paper identifies the EU digital battery passport as a trade issue because establishing such a passport is a prerequisite for economic operators to place batteries on the EU market. The EU Batteries Regulation has already affected Asian producers who intend to export to the EU. Accordingly, it examines how EU digital battery passports may (or may not) comply with the WTO rules. It also explores international collaboration and standardization for cross-border data-sharing and highlights the collaboration between Japanese and German car and battery industries on cross-border data-sharing. Moreover, this paper touches upon several international standardization efforts to advance trustworthy, interoperable data governance and conclude by arguing how the case of batteries can generate societal demand for digital passports in Japan, which may lead to a dynamic ecosystem of sustainability and circularity with broader acceptance by multiple stakeholders. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:eti:rdpsjp:26030 |
| By: | Kabir, Md Faizul; Dennis, Elliott; Banerjee, Simanti; Meredith, Gwendwr |
| Abstract: | This study examines the misalignment between self-reported and practice-based measures of rotational grazing adoption among ranchers in the Northern Great Plains. Using survey data, we compare ranchers’ self-reported rotational grazing status with a practice-based adoption measure constructed from paddock number and livestock movement frequency. Whereas 79% of respondents self-reported practicing rotational grazing, only 37% met the baseline of practice-based criteria. Among self-reported adopters, 59% (257 of 434) overreport, accounting for 99% of all misalignments. Logistic regressions show that larger paddock size and higher perceived fencing costs raise the likelihood of overreporting, whereas larger animal inventories and connection to USDA personnel lower it. These associations persist across relaxed and tightened definitions of rotational grazing. Mismeasurement is consequential, increasing as practice standards tighten. First, the estimated association between rotational grazing and stocking density is attenuated when adoption is measured by self-report rather than practice, rising from near zero under lenient definitions to 40–49% under stricter definitions, where the difference is statistically significant. For a second outcome, we link willingness to accept a rotational-grazing requirement, estimated from a different choice experiment: self-reported adoption understates by about a third the lower compensation practice-based adopter requires. Surveys and conservation-program evaluations could therefore adopt explicit practice definitions and management-based verification questions rather than single yes/no items. The bias is largest where programs seek the greatest ecological gains, directly affecting payment design. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404500 |
| By: | Andrew B. Choi; Christoph Schlom; Chengyang Zhu |
| Abstract: | We introduce a moral hazard model in which public information about a payoff-relevant state arrives over time, an agent decides when to make an irreversible investment, and a principal commits to a state-contingent policy to incentivize investment. To discourage the agent from waiting for more information, the principal's optimal policy provides certainty, reducing the degree to which the agent's payoff depends on the state. This is inefficient -- both players would be better off with less certainty. We study when the agent receives positive rent, and when moral hazard delays investment. Our results apply to environmental subsidies and R&D incentives. |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2606.28583 |
| By: | Arunava Patra; Prosanta Mandal; Sagar Chakraborty |
| Abstract: | Resource scarcity can fundamentally encourage antisocial behaviour, whereas resource abundance can promote fair behaviour. Experimental evidence indeed suggests that scarcity induces spiteful behaviour, while repeated interactions enhance fairness. However, existing studies of game--environment feedback systems are largely confined to the evolution of cooperation and they overlook the interplay between resources, spite, and fairness. To address this lacuna, we develop a stochastic ultimatum game framework in which an offerer and an accepter repeatedly interact to negotiate exploitation of a self-renewable resource under the ownership of the offerer. Successful agreements deplete the resource, whereas unsuccessful agreements inhibit exploitation and facilitate replenishment. The mutation--selection driven two-species stochastic evolutionary dynamics reveal that the emergence of spite and fairness strongly depends on the resource growth rate. Fairness predominantly prevails for resources with high growth rates. Intriguingly, low resource growth rates give rise to a resource feedback loop driven by spite: spiteful behaviour dominates in the depleted state, facilitating transition of the resource state to replete state which, in turn, promotes fairness through repeated interactions. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.14914 |
| By: | Chao, Zenghui; Gu, Wenhao; Xu, Chenguang; Zhang, Jun |
| Abstract: | This paper studies how cognitive friction shapes rural households’ willingness to lease rooftops for distributed solar photovoltaics. Using double-bounded WTA survey data from 311 households in Pingdingshan, Henan Province, we estimate a two-class latent class model that allows households to follow different information-processing rules. About 66.8 percent of households belong to a policy-familiar class that incorporates return confidence into project valuation. Their mean WTA is 31.03 yuan per square meter per year, compared with 57.38 yuan for the policy-unfamiliar class. Counterfactual simulations show that improving return confidence and policy familiarity can sharply raise participation and substitute for cash subsidies. Raising both to their highest levels increases zero-subsidy participation from 15.1 percent to 88.7 percent and generates substantial annual CO2 abatement. |
| Keywords: | Consumer/Household Economics |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404857 |
| By: | Andrea Bastianin; Luca Rossini; Marco Zoso |
| Abstract: | We use web search data to construct monthly indexes of derived demand for cobalt, copper, and nickel, which are key inputs in technologies driving the energy and digital transitions. We incorporate these indexes into Structural Vector Autoregressive (SVAR) models of global metal markets and identify structural shocks using zero, sign, and magnitude restrictions. This approach disentangles supply shocks from several demand-side drivers of metal prices and isolates a transition demand (TD) shock linked to the diffusion of metal-intensive technologies. We find that TD shocks generate persistent price effects, especially for copper and nickel, whereas supply and metal-specific demand shocks are more immediate and less persistent. |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2606.27842 |
| By: | Ge, Houtian; Gomez, Miguel; Peters, Christian |
| Abstract: | Fresh produce supply chains depend on supplier logistics services that connect spatially dispersed production regions, import entry points, aggregation facilities, domestic consumption markets, and export destinations. Yet the intermediary logistics segment remains less integrated into economic models of fresh produce market structure and spatial allocation. This study develops a two-stage framework that combines hub location optimization with a CESbased spatial equilibrium model to analyze supplier logistics in U.S. fresh produce markets. In the first stage, a mixed-integer optimization model selects aggregation hubs from Major Land Resource Area centroid candidates and determines hub-level domestic and import assembly volumes and FOB hub prices for nine fresh produce categories. In the second stage, these optimized hub outputs are used to calibrate 108 commodity-month gravity allocation models that distribute product flows from hubs to Grocery Marketing Areas and export port markets. The model characterizes hub-to-market shipments, composite delivered prices, route-specific supplier attractiveness, and transportation-related food-loss exposure. Results show that large-volume hubs tend to rely less on residual route-attractiveness adjustments, while smaller hubs often require stronger non-price or unobserved logistical advantages to explain their market roles. Destination-level price differences are driven primarily by outbound shipment costs rather than hub FOB price variation, and regions farther from major hub corridors face both higher delivered prices and greater distance-related food-loss exposure. The framework advances spatial foodmarket analysis by linking logistics infrastructure, supplier differentiation, delivered-price formation, and perishability-related losses within a unified economic system. It provides a basis for evaluating how aggregation network design can support more efficient, resilient, and sustainable fresh produce distribution. |
| Keywords: | Industrial Organization |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404626 |
| By: | Lykke E. Andersen (SDSN Bolivia); Fabiana Argandoña (SDSN Bolivia); Álvaro Muñoz (SDSN Bolivia) |
| Abstract: | El presente documento estima el valor neto del servicio ecosistémico de la polinización de cultivos. Con base en datos de producción agrícola a nivel municipal en Bolivia, se estimó el valor de los cultivos más relevantes en términos de extensión que requieren polinizadores para su producción, considerando el grado de dependencia del rendimiento de estos cultivos respecto a la polinización. Asimismo, se realizó un mapeo que tomó en cuenta la probabilidad de presencia de polinizadores, la distribución municipal de cultivos dependientes de la polinización y la intersección entre estos espacios donde se provee el servicio ecosistémico. El valor neto estimado de la polinización asciende a USD 98, 5 millones en Bolivia, con un potencial de crecimiento de hasta USD 116 millones en los próximos años. |
| Keywords: | Servicios Ecosistémicos, Áreas Protegidas, Polinización, Territorios Indígenas, Bolivia |
| JEL: | Q56 Q57 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:iad:sdsnwp:0625 |
| By: | Álvaro Muñoz Quisberth (SDSN Bolivia); Fabiana Karina Argandoña (SDSN Bolivia) |
| Abstract: | Las enfermedades transmitidas por vectores constituyen un problema de salud pública a nivel global, y Bolivia no es la excepción. En el país, la Malaria, el Dengue y el Chagas representan las principales patologías de este tipo, las cuales han mostrado cambios significativos entre los periodos intercensales 2011-2013 y 2022-2024. El análisis, realizado a nivel municipal mediante la comparación de promedios trianuales y la clasificación en categorías de cumplimiento del ODS 3 (Salud y Bienestar), evidencia dinámicas diferenciadas entre enfermedades y territorios. |
| Keywords: | Desarrollo sostenible, salud, Malaria, Chagas, Dengue, Bolivia |
| JEL: | I10 O15 O54 Q01 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:iad:sdsnwp:0126 |
| By: | Vourazeris, Kelsey; Richards, Timothy; Schmitz, Troy |
| Abstract: | This paper examines how trade policy and technological change have jointly shaped competition in the U.S. fresh tomato market. Since 1996, the U.S.–Mexico Tomato Suspension Agreements have imposed minimum reference prices on Mexican tomato exports, while Mexico has simultaneously expanded greenhouse production through sustained investment in protected agriculture. Using weekly product-level data from the USDA Agricultural Marketing Service (AMS) Terminal Market and Movement reports from 1998 to 2025, we first document that suspension-agreement price floors bind frequently, with binding episodes occurring in approximately two out of every five weeks over the sample period. We show that these binding episodes disproportionately constrain lower-priced open-field products while greenhouse tomatoes, which command higher prices, are less frequently affected. This creates incentives for compositional shifts toward greenhouse production and higher-value export categories. To evaluate these mechanisms, we estimate a structural model of differentiated tomato demand that allows substitution across products defined by origin, production technology, variety, and organic status. The model incorporates heterogeneous preferences for greenhouse production and recovers implied marginal costs and markups under Bertrand competition. We then use the estimated framework to evaluate counterfactual policy scenarios involving tariffs on Mexican imports, reductions in marginal costs associated with Mexican greenhouse investment, and comparable subsidies for U.S. greenhouse producers. The preliminary results suggest that price-based trade protection primarily redistributes surplus, whereas technological change and greenhouse expansion have played a more important role in reshaping market structure, trade composition, and welfare outcomes in U.S. tomato markets. The paper contributes to the literature on non-tariff barriers by showing how differentiated price floors interact with production technology and quality differentiation in agricultural trade. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404366 |
| By: | Ater, Itai; Hodor, Michal; Yoseph, Nir |
| Abstract: | We study the effects of an excise tax on single-use plastic tableware products introduced in Israel in November 2021 and repealed 15 months later. After the introduction of the tax, prices of taxed products increased by 45%, and sales decreased by 24%. After its repeal, prices dropped, and sales increased. Yet, prices were 18% higher and sales 19% lower than pre-tax levels. Our analysis shows that changes in consumption habits can explain 15% of the decrease in post-repeal sales, whereas the higher prices explain the rest. The change in consumption habits is greater among less price-sensitive consumers. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20209 |
| By: | Etienne Fouqueray (RURALITES [Poitiers] - Rural, urbain, acteurs, liens, territoires, environnement, sociétés [UR 13823] - UP - Université de Poitiers = University of Poitiers, Région Nouvelle-Aquitaine); Jeanne Jimenez (Région Nouvelle-Aquitaine); Elodie Massiot (Région Nouvelle-Aquitaine); Coralie Mouffok-Chabe (AD'OCC - AD'OCC Agence Régionale d’Attractivité et de Développement d’Occitanie) |
| Keywords: | Régression logistique, Agroécologie, Crise, Décertification, Agriculture biologique |
| Date: | 2026–06–24 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05648943 |
| By: | Prakash, Divya; Porse, Erik; Nemati, Mehdi; Shellabarger, Rachel; Dinar, Ariel; Ma, Meilin |
| Abstract: | This paper examines how nitrogen management practices (NMPs) affect nitrogen (N) use efficiency, which is measured as nitrogen applied (A) minus nitrogen removed (R) through crop uptake (A−R). The analysis uses unique field-level panel survey data from 11 water quality coalitions across California’s Central Valley, spanning the period 2019–2023. Because fertilizer application decisions are jointly determined with cropping management practices and field conditions, we employ an Instrumental Variables (IV) framework that uses soil, tissue, and irrigation-water testing practices as instruments for nitrogen application intensity. The results indicate that several management practices are associated with significant improvements in nitrogen efficiency outcomes. The largest gains are observed for split nitrogen applications, followed by fertigation and foliar nitrogen application. To further examine heterogeneity across growers, we estimate Quantile IV models across the distribution of A−R outcomes. The estimates reveal substantial variation in the effectiveness of management practices across such distribution. In particular, the practice of split nitrogen applications generates the largest efficiency gains among relatively less efficient fields, while fertigation and foliar applications exhibit heterogeneous effects across quantiles. The findings suggest that improvements in nitrogen efficiency are driven by a relatively narrow set of efficiency-oriented practices, highlighting the importance of distinguishing among management practices in both regulatory design and extension outreach efforts. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404362 |