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on Environmental Economics |
| By: | Ibadoghlu, Gubad |
| Abstract: | This article examines the structural tension between Azerbaijan's international climate commitments and its expanding role as a major natural gas exporter to Europe. Since hosting COP29 in 2024, Azerbaijan has positioned itself as an active participant in global environmental governance while simultaneously accelerating hydrocarbon production, developing new gas fields (including Absheron Phase II, Babek, and non-associated gas at ACG), and deepening its strategic energy partnership with the EU through the Southern Gas Corridor (SGC) and Trans Adriatic Pipeline (TAP). Drawing on the concept of "exported emissions, " the article argues that while European states may reduce territorial emissions by substituting Azerbaijani gas for more carbon-intensive fuels, a substantial share of the associated methane emissions-generated during extraction, processing, compression, and transmission-remains externalized to Azerbaijan and other points along the supply chain. The analysis assesses whether existing environmental, health and safety, and human rights safeguards imposed by EU legislation, EBRD, EIB, IFC, OECD, and Equator Principles standards, as well as the new EU Methane Regulation (2024/1787), are adequate to address this challenge. It finds that although TAP operates under one of the most extensive formal governance frameworks applied to energy infrastructure, effective implementation depends heavily on independent monitoring, transparency, and civic space-all of which are significantly constrained in Azerbaijan and, to varying degrees, in Georgia and Türkiye. Restrictions on civil society, journalists, and human rights defenders limit the ability of independent actors to verify compliance, creating a gap between formal regulatory commitments and actual environmental and social outcomes. The article concludes that Azerbaijan's declining performance in the World Economic Forum's 2026 Energy Transition Index-driven by weaknesses in institutional and regulatory "Transition Readiness" rather than technical system performance-illustrates a broader dilemma facing hydrocarbon-exporting states: the credibility of climate commitments ultimately hinges not only on renewable energy targets, but on methane governance, transparency, and protection of the civic space needed to hold gas export infrastructure accountable throughout its operational lifecycle. |
| Keywords: | Azerbaijan, Southern Gas Corridor, Trans Adriatic Pipeline, European Energy Security, SOCAR, Exported/Embodied Emissions, Methane Emissions, Energy Transition, COP29, Civic Space, Resource Governance, Human Rights and Environmental Accountability |
| JEL: | K32 P18 Q42 Q43 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:342434 |
| By: | Belgacem, Wajdi; Xu, Zheng; Wang, Tong |
| Abstract: | U.S. dairy consolidation has accelerated, yet the role of climate risk remains underexplored. Using county‑level panel data from five USDA Censuses of Agriculture (1997–2017) linked with gridded climate records, we estimate fixed‑effects Poisson models to quantify the effects of climate extremes on dairy farm numbers. A two‑standard‑deviation increase in heat stress reduces small‑farm counts by 75 percent and increases large farms by 94 percent. A similar increase in extreme drought further accelerates small‑farm exit by 3.4 percent. Climate stress thus reinforces structural dynamics favoring larger operations, underscoring the need for policies that strengthen the resilience of vulnerable producers. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404478 |
| By: | Souza Bezerra, Bruno Felipe Lenin |
| Abstract: | The Legal Amazon, a critical biome for global climate stability, has experienced a significant increase in wildfires, driven by both natural and human factors. In response, the Brazilian government launched the Green Brazil Operations (1 and 2) to combat illegal deforestation and wildfires. This study evaluates the effectiveness of these operations in reducing wildfire occurrences using a Difference-in-Differences (DiD) methodology on a monthly panel dataset spanning 2017–2023. Results indicate that neither operation significantly reduced fire outbreaks. Additionally, contrary to policy objectives, the number of environmental fines decreased during the operational periods. These findings highlight the limitations of the Green Brazil Operations in addressing the root causes of wildfires and underscore the need for more comprehensive, integrated strategies that align enforcement with socio-economic realities in the region. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404476 |
| By: | Bilal, Adrien; Känzig, Diego |
| Abstract: | This paper estimates that the macroeconomic damages from climate change are an order of magnitude larger than previously thought. Exploiting natural global temperature variability, we find that 1°C warming reduces world GDP by over 20% in the long run. Global temperature correlates strongly with extreme climatic events, un- like country-level temperature used in previous work, explaining our larger estimate. We use this evidence to estimate damage functions in a neoclassical growth model. Business-as-usual warming implies a present welfare loss of more than 30%, and a Social Cost of Carbon in excess of $1, 500 per ton. These impacts suggest that uni- lateral decarbonization policy is cost-effective for large countries such as the United States. |
| Keywords: | Climate change; Macroeconomics |
| JEL: | E01 E23 F18 O44 Q54 Q56 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19203 |
| By: | Gillaizeau, Marc; Gaertner, Jakob; Avdeenko, Alexandra; Al Harun, Abdullah; Anastasia, Aladysheva |
| Abstract: | This study examines the effects of climate adaptation interventions in coastal areas on household welfare, food security, and shock preparedness. Results indicate that adopting climate-adaptive livelihoods increased household income by 43%, improved food security, and enhanced preparedness for extreme weather events, though it had limited impact on women’s decision-making power. Moreover, we show that perceptions are instrumental in the success of adaptation projects. Beneficiaries showed increased concern about the adverse long-term consequences of climate change, which is linked to a greater likelihood of adopting adaptive and resilient livelihoods. Finally, the cost-benefit analysis points to the economic viability of adaptation projects promoting climate-adaptive livelihoods. |
| JEL: | O12 Q54 Q56 I31 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19211 |
| By: | , KuoRayMao; Jin, Shuqin; Yu Hu; Weeks, Nefratiri; Ye, Liangjun |
| Abstract: | As industrialized animal agriculture expanded rapidly in the last decade, the resultant pollution has generated widespread despoliation of natural resources and environmental victimization in rural China. This study examines the formulation and implementation of national environmental regulations from 2014 to 2019 and finds that the juxtaposing ministerial and provincial jurisdictions resulted in conflicting interpretations of the scale and evaluation criteria of the national policy. We argue that the regulations are more than centralized conservation programs designed to reduce environmental pollution caused by the expansion of animal husbandry. Instead, these regulations are fundamentally state-led rural development initiatives that utilize the designations of ecological protection zones to reconfigure land use and promote scale-up production in agricultural structural adjustment initiatives. The enforcement of these environmental regulations, therefore, constitutes a treadmill of law (ToL) that accelerated the geographical specialization and function intensification of the Chinese husbandry sector. |
| Date: | 2026–07–25 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:k2zg6_v1 |
| By: | John Fitzgerald (Department of Economics, Trinity College Dublin); Jules Linden (Luxembourg Institute of Socio-Economic Research (LISER)); Cathal O'Donoghue (Department of Economics, National University of Ireland Galway) |
| Abstract: | This paper studies Greenhouse Gas Emission trajectories, climate governance, and climate policy on the island of Ireland. Comparing Northern Ireland and the Republic of Ireland, it shows that the structure of emissions, and therefore the challenge to decarbonise, is highly similar North and South, but climate governance and policy maturity differ substantially. The RoI has a more developed and comprehensive set of climate policies and NI lags significantly behind the RoI. Yet, both jurisdictions are failing to meet their climate targets and advisory councils across NI and the RoI recommend similar actions to advance towards the targets. There is, therefore, a case to improve cooperation on climate policy on the island and to seek out synergies. NI can accelerate the development of its own climate policy mix through policy learning and both the RoI and NI can benefit from developing the common infrastructure and knowledge required to achieve swifter emission reductions. Crucial areas of collaboration include further interconnection of the two electricity grids on the island, shared research on cattle breeding and feed additives, a common biomethane market, the development of common or standardised EV charging infrastructure and of common retrofitting and heat pump standards and skill recognition. The paper also discusses significant challenges to achieving effective climate policy cooperation across north and south. |
| Keywords: | Climate change; greenhouse gas emissions; environmental policy; Island of Ireland |
| JEL: | Q20 Q40 Q50 Q54 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:tcd:tcduee:tep1926 |
| By: | MOGAJI, RIDWAN ISHOLA |
| Abstract: | Today, environmental crisis is at the forefront of global debates due to the significant harm done to the environment over the years. This crisis has caused decreased agricultural yields, water pollution, flooding, and a decline in living standards, as well as affected public health. As a result, the global community has been compelled to address these urgent issues, for if left unchecked, they could be more disastrous to human well-being. Environmentalists have argued that these consequences, being the effect of climate change, can be traced to the degradation of nature by humans. To this effect, various coping strategies and preventive measures have been proposed to raise awareness and implement solutions, but environmental degradation persists. This, however, has been argued to be a result of a top-down approach to environmental crisis, which, as a result, led to a shift towards embracing a bottom-up approach to environmental crisis. This shift has sparked an interest in indigenous knowledge systems, for it is believed that the indigenous people have a closer relationship with the environment. In this context, we propose the Yoruba conservation approach, which prioritises fear in environmental management. The goal herein is to assess its relevance and effectiveness in addressing contemporary environmental challenges. Through a conceptual analysis, critical analysis, and comparative analysis, this paper argues that the Yoruba conservative methodology, which is founded on fear, may struggle to survive in today's scientific world, where innovative solutions and societal developments are scientifically driven. |
| Keywords: | Environmental Crisis, Fear, Global, Yoruba conservation approach |
| JEL: | I3 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128258 |
| By: | Tröger, Tobias |
| Abstract: | This paper examines the limits of corporate governance as a tool for advancing climate transition. While capital market mechanisms, shareholder stewardship, say-on-climate votes, and ESG-linked executive compensation are often presented as effective levers for greening corporate behavior, their transformative capacity is systematically constrained. Building on insights from financial economics and agency theory, the paper highlights incentive distortions within the complex investment ecosystem and introduces the "waterbed effect" as a central, yet underappreciated, limitation. Firm-specific governance interventions alter marginal abatement incentives asymmetrically, inducing competitive reallocation of emissions or production that may fully offset intended environmental gains. A formal model demonstrates how such interventions fail to reduce aggregate emissions under emissions trading systems and may even be counterproductive in competitive product markets. The analysis suggests that corporate governance can complement, but not substitute for, universally applicable regulatory instruments such as carbon pricing or comprehensive emissions caps. Overreliance on governance-based solutions risks inefficient resource allocation and may crowd out the political momentum necessary for effective climate regulation. |
| Keywords: | Corporate governance, Climate change, Waterbed effect, Systematic stewardship, ESG, Emissions trading |
| JEL: | D62 D86 G34 G38 K22 Q54 Q58 D62 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:lawfin:342453 |
| By: | Cisneros-Pineda, Alfredo; Haqiqi, Iman; Liu, Jing; Zuidema, S.; Grogan, D. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404511 |
| By: | Li, Wei; Woodward, Richard; Taylor, Eric; Moore, Michelle; Wannlund, Eric |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404474 |
| By: | Pereira, Olívia S; Jacobsen, Mark; Carson, Richard; Cortés, Jorge; Levin, Lisa A |
| Abstract: | Methane seeps are highly productive ecosystems that provide carbon sequestration services, host diverse communities including endemic species, and serve as habitats for commercial fisheries. Little is known about the economic value the public places on them. Discrete Choice Experiments (DCEs) are administered to a sample of Costa Rican taxpayers to evaluate their willingness to pay (WTP) in monetary terms using tradeoffs made in a survey context involving three of the main attributes of methane seep ecosystems to provide insights for future conservation and management efforts. Extensive effort is devoted to understanding how Costa Ricans view different aspects of the deep sea. We find that they associate it with strange animals, natural resources, the unknown, and being far from reach. Perhaps surprisingly, they underestimate how much they know about the deep sea. We find that WTP for methane seep protection is the highest for programs that protect seeps with endemic species, followed by seeps with high climate change mitigation potential and commercial fishing habitat. Higher-income groups and women are more likely to prefer options that increase the current level of protection. We discuss how science communication and community engagement contribute to care expressed toward the deep sea. |
| Keywords: | 38 Economics (for-2020), 3801 Applied Economics (for-2020), 15 Life on Land (sdg), Choice modelling, Deep sea, Ecosystem services, Existence value, Methane seeps, 0502 Environmental Science and Management (for), 1402 Applied Economics (for), 1499 Other Economics (for), Agricultural Economics & Policy (science-metrix), 3103 Ecology (for-2020), 3801 Applied economics (for-2020), 3899 Other economics (for-2020) |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:ucsdec:qt87w646zx |
| By: | Diewert, W. Erwin; Fox, Kevin J. |
| Abstract: | The existing environmental accounting literature typically uses the Weitzman (1976) consumer perspective to measure the welfare effects of environmental bads (pollution, environmental degradation). We show that the consumer perspective is the “wrong” perspective to measure the welfare effects of bads: it is impossible to measure completely the welfare effects of externalities using a consumer framework. In contrast, production-based approaches are shown to be useful in this context. |
| Keywords: | Pollution; green accounting; externalities; welfare; productivity |
| JEL: | D24 D62 Q51 |
| Date: | 2026–02–18 |
| URL: | https://d.repec.org/n?u=RePEc:eoe:escoed:escoe-dp-2026-03 |
| By: | C.O. Olaniyi (University of South Africa); N.M. Odhiambo (University of South Africa) |
| Abstract: | Transitioning to a carbon-neutral renewable energy (REN) option to decarbonize ecosystems and mitigate carbon dioxide (CO2) emissions and the negative impacts of climate change is consistent with United Nations Sustainable Development Goals 7 and 13. Scholars have identified natural resource wealth and institutions as critical factors in the REN transition in resource-rich countries. Financial barriers are arguably the most significant impediments to transitioning to REN, as REN is more capital-intensive and costly to produce, invest in, and use than traditional fossil fuel-based energy. Meanwhile, weak institutions and corruption in most resource-rich countries culminate in the resource curse phenomenon and the mismanagement of natural resource wealth. It implies that institutions (weak or strong) modify the natural resource rent contribution to the REN transition. Previous research has paid little attention to the impact of the interplay between natural resources and institutional quality on the REN transition in resource rich African countries. This study examines how institutions moderate the contribution of natural resource wealth to accelerating or inhibiting the REN switch in resource-rich African countries for the period 2000-2021, using fully modified ordinary least squares, a Driscoll-Kraay nonparametric covariance matrix, and moments-based quantile regression estimators. This study departs from earlier studies by determining the institutional quality threshold above which institutions significantly stimulate natural resource rents to accelerate Africa's REN transition. The findings indicate that institutions in resource-rich African countries breed inefficient bureaucracies and corruption in natural resource rent administration. These undermine the ability |
| Keywords: | institutional quality, dynamic panel threshold, natural resource rents, renewable energy transition, resource-rich African countries |
| JEL: | N27 O13 Q20 |
| Date: | 2024–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:afa:wpaper:wp122024 |
| By: | Weisberg, Michael; Brown, Rachael; Lean, Christopher H. |
| Abstract: | Standard approaches to climate adaptation, commonly understood as the protection of infrastructure, social systems, and ecosystems from adverse climate impacts, are too closely tied to the biological concept of adaptation and the ecological notion of stability. Instead, we argue that climate adaptation is better articulated by analogy to the concept of evolvability. Adaptation thus understood emphasizes the need for internal capacities of restoration and self-maintenance, preserves flexibility and options for the future, addresses the social, political, and psychological impacts of climate change, and promotes transboundary strategies. |
| Date: | 2026–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:mzjra_v2 |
| By: | Kimura, Roberto; Sohngen, Brent; Kim, John; Golub, Alla |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404473 |
| By: | Belcher, Richard; Fecht, Daniela; Weale, Martin |
| Abstract: | This paper explores whether it is possible to use the well-being data collected in the survey Understanding Society to produce estimates of the cost put on local air pollution or proximity to a main road and the value placed on proximity to green space. The conclusions are rather negative. Calculations based on the 2012/13 wave point and the 2016/17 wave give very different answers, and a differences in differences approach shows no significant environmental effect. In the near term it seems unlikely that this approach could form a basis for the inclusion of environmental influences in measures of local well-being. |
| Keywords: | Measures of Well-being; Environmental Costs and Benefits; Small-area Statistics |
| JEL: | I31 Q51 |
| Date: | 2025–10–29 |
| URL: | https://d.repec.org/n?u=RePEc:eoe:escoed:escoe-dp-2025-14 |
| By: | Peter K. Kruse-Andersen; Peter Birch Sørensen; Anders Pretzmann Gotfredsen; Francesco Clora; Wusheng Yu |
| Abstract: | Despite being a major source of greenhouse gas (GHG) emissions, agriculture remains one of the least regulated sectors in climate policy. Designing climate policy for agriculture is challenging due to the interaction between GHG emissions, emissions of other pollutants such as ammonia and nitrate, competing land uses, and the risk of GHG leakage. Within a general equilibrium framework, we analyze cost-effective climate policy for the entire economy with a focus on agriculture, assuming a national GHG emissions target and a target for limiting GHG leakage. The first-best policy requires a large set of tax and subsidy instruments to mitigate GHG leakage from all possible channels. We argue that this set of instruments is unlikely to be implemented in practice. We therefore focus on an implementable second-best policy. We show that accounting for all externalities and leakage effects, it is second-best optimal to differentiate GHG taxes across sectors and to allow taxes on other emissions to deviate from their Pigouvian level. To quantify the second-best policy, we simulate a calibrated version of our theoretical model, with leakage coefficients computed using a large-scale global general equilibrium model. Simulations indicate that the domestic environmental co-benefits of GHG reductions may be sufficiently large to ensure that overall household welfare improves even when disregarding global warming effects. However, the government faces a trade-off: if it wishes to limit GHG leakage, it will have to sacrifice the benefits to the domestic environment that could otherwise be gained from the second-best optimal unilateral climate policy. |
| Keywords: | climate and environmental policy towards agriculture, greenhouse gas leakage, environmental co-benefits from climate policy. |
| JEL: | D58 H21 Q15 Q58 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12944 |
| By: | Yang, Meng; Zheng, Yanan; An, Henry; Qiu, Feng |
| Abstract: | Subnational climate policies, such as the Regional Greenhouse Gas Initiative (RGGI) in the United States, can generate cross-border effects, including emissions leakage and positive spatial spillovers. We estimate a spatial difference-in-differences (DiD) model to evaluate these spillovers. Our spatial DiD framework separately estimates three effects: direct effects on participating states, spillover effects among RGGI states, and spillover effects to neighboring non-participating states. We find significant reductions in coal, natural gas, and petroleum consumption in RGGI states, along with notable spillover effects within the regulated group and into nearby unregulated states. Our analysis shows that subnational policies may lead to positive unintended consequences in addition to the well- known negative leakage effects. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404470 |
| By: | Martin Obradovits; Markus Walzl |
| Abstract: | Consumers increasingly care about the environmental and social responsibility of the production processes used by firms, yet these processes often remain unobservable, even after consumption. We develop a simple model in which firms select either a green or a brown production technology before competing and signaling through prices. Firms observe each other's production choices, while consumers observe only prices. We show that, in the payoff-dominant equilibrium, prices signal when at least one firm produces green, avoiding Bertrand competition. Counterintuitively, raising consumers' environmental concerns or eliminating the information asymmetry may discourage green production and reduce welfare. |
| Keywords: | sustainable production, endogenous technology choice, price signaling, asymmetric information, price competition, label credence goods |
| JEL: | D82 D83 L13 L15 Q58 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:jku:econwp:2026-05 |
| By: | Hopkins, Caroline; Hyde, Timothy (Department of Economics, Oberlin College) |
| Abstract: | Prior research has documented a tendency for insurance demand to rise abruptly in the aftermath of natural disasters. This may be attributable in part to the information shock that a disaster represents. Understanding how beliefs about risk evolve is of first-order importance for projecting climate adaptation in coming decades. Using a three-wave survey of 815 residents of flood-prone coastal counties in the southeastern United States, including 436 for whom we have longitudinal data, we study how individuals’ beliefs evolve after two very different types of informational shocks about future local flooding risk: viewing flood maps, and experiencing a local flooding disaster. We find that, on average, exposure to maps causes respondents to update their beliefs of their homes’ ten-year flood risk downward substantially (38%, 95% CI 13%–56%) and reduces their reported level of worry on a ten-point scale. We then leverage the natural experiment created by differential flood exposure during the hurricane seasons of 2017 and 2018, the latter of which fell between the initial wave of our survey and two follow-up waves. We find that flood disasters systematically increase flood concern in affected counties, as expected. More surprisingly, we find that those who experienced a flood before Wave 1 saw greater increases in concern between waves than those who did not — a pattern inconsistent with standard Bayesian updating and more consistent with the conservatism hypothesis, whereby experiential information shocks are incorporated into beliefs only gradually. This delayed updating process has implications for projections of climate adaptation among flood-prone populations. |
| Keywords: | Flood risk perceptions, Belief updating, Natural disaster information, Flood insurance demand, Conservatism bias |
| JEL: | D83 G52 Q54 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:cxv:wpaper:2601 |
| By: | Chiara Canta; Helmuth Cremer; Firouz Gahvari |
| Abstract: | We develop a two-country model of trade and global pollution in which country A values environmental quality whereas country B does not. Governments choose emissions and commodity taxes non-cooperatively under autarky and free trade. Under autarky, the principle of targeting holds: country A levies a Pigouvian emissions tax, whereas neither country uses a commodity tax. Opening borders fundamentally changes the design of corrective taxation. Country A subsidizes the polluting good to shift production toward its cleaner firms. The optimal subsidy depends on the marginal social damage of emissions despite the presence of an emissions tax, implying a violation of the principle of targeting. Contrary to the conventional pollution-haven prediction, the environmentally unconcerned country need not be the exporter of the polluting good. As country A's valuation of environmental quality increases, or country B's production-cost advantage narrows, production shifts toward A, which eventually becomes the exporter. Beyond a critical threshold, trade reduces global emissions relative to autarky. Welfare effects are asymmetric: trade always benefits country B but may either increase or decrease welfare in country A. |
| Keywords: | global externality, asymmetric valuation of environmental quality, tax competition, emission taxes, output taxes |
| JEL: | H21 H23 H73 H87 F15 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12931 |
| By: | Guerriero, Arthur Zito; Kapeller, Jakob; Ankel-Peters, Jörg |
| Abstract: | The social cost of carbon (SCC) is the central concept of benefit-cost analysis in climate economics. The SCC provides guidance on the urgency of climate policy as it expresses the present value of expected future damages associated with the emission of one additional ton of CO2. This paper summarizes key normative assumptions underlying the calculation of the SCC and illustrates how these crucially affect the magnitude of final estimates. Building on a social welfare framework, we discuss the treatment of risk, time (discounting), and inequality (equity weights). Moreover, we present the normative choices related to how SCC estimates monetize non-market damage, in particular the loss of human lives. Based on a database of 515 studies with original SCC estimates (Tol, 2026), we document how the literature deals with these normative issues. In doing so, we find significant variation in the treatment of normative aspects across studies, but also across different normative dimensions. For instance, while the literature justifies the use of a time discount rate based on the assumption of diminishing marginal utility, equity aspects between countries or regions are often ignored. We conclude by stressing that while the SCC can help structuring societal deliberation about climate policy, greater clarity and transparency on the underlying normative assumptions is necessary. |
| Keywords: | climate change, social welfare, normativity, discounting, distribution, risk, value-neutrality |
| JEL: | D61 D63 Q54 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifsowp:342451 |
| By: | Green, Mark Alan (University of Liverpool); Wilkins, Emma; Gilthorpe, Mark S (University of Leeds); Sawczuk, Thomas; Hardman, Charlotte; Greatwood, Hannah; Stone, Rebecca Ann (University of Liverpool); Johnstone, Alexandra (University of Aberdeen); Morris, Michelle |
| Abstract: | Introduction: Promoting healthier and more sustainable diets is needed to improve population and planetary health. However, limited evidence has described how these intersecting issues vary together by socioeconomic position. Our study uses novel large-scale retailer consumer purchase data, adjusted for known biases, to explore socioeconomic inequalities in health and environmental impacts of food and beverage purchases. Methods: Data were household-level loyalty card records from a major UK supermarket retailer between 24th July and 31st December 2022 (n = 117 710). The health-related outcome was proportion of purchases that were ‘High in Fat, Salt or Sugar’ (HFSS), determined using the UK nutrient profile model. We estimated three environmental outcomes: total greenhouse gas emissions, total land use footprint, and total water use from food purchases. Multilevel regression with post-stratification was used to estimate each outcome measure by level of neighbourhood socioeconomic deprivation, adjusted for age, household size, distance to nearest supermarket, and urbanicity. We also described environmental outcomes by food category across level of deprivation. Results: Households residing in the most deprived 10% of areas purchased a larger proportion of HFSS items than households in the least deprived 10% of areas. Households in the least deprived 10% of areas had a greater absolute environmental impact. However, when considered per weight of items, households in the most deprived 10% of areas purchased items that contributed to higher greenhouse emissions per kg but had lower impacts for land use. Soft drinks, ready meals, pasta, and pastry products were identified as key food categories for targeted ‘food swaps’ to reduce environmental inequalities. Conclusions: Our novel application of retailer loyalty card data shows how these data can offer valuable insights for informing strategies to promote healthy, sustainable, and equitable diets. Tackling environmental inequalities in food purchases requires tailoring approaches to different population groups. |
| Date: | 2026–08–20 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:ky62u_v1 |
| By: | Casey, Gregory; Fried, Stephie; Gibson, Matthew |
| Abstract: | Existing climate-economy models assume climate change has equal impacts on the productivity of firms that produce consumption and investment goods and services. We develop a model of structural change to show that the split between damage to consumption and investment productivity matters for the aggregate consequences of climate change. When investment is more vulnerable to climate, we find smaller short-run consumption losses than leading models suggest, but larger long-run consumption losses. We provide a quantitative illustration of these effects for one type of climate damage in the US economy: labor productivity losses from heat stress. We find that accounting for heterogeneous damages increases the welfare cost of the climate damage from heat stress by approximately 4 to 23\%, depending on the discount factor. |
| Keywords: | Growth |
| JEL: | O13 O44 Q56 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19229 |
| By: | Taj, Tanjum Afrin; Elbakidze, Levan; Hwang, Julian |
| Abstract: | Per- and polyfluoroalkyl substances (PFAS) are harmful and persistent synthetic chemicals widely detected in U.S. surface water, groundwater, and public drinking water systems. Although the EPA introduced national drinking water standards for selected PFAS compounds, the economic benefits of mitigating PFAS in drinking water remain unquantified. We estimate willingness to pay (WTP) for removing PFAS from all publicly supplied drinking water in the U.S. using an online dichotomous choice contingent valuation survey. The results show that aggregate annual benefits of a national PFAS drinking water remediation program range from $104.1 billion to $111.7 billion. WTP is higher when PFAS are detected in the respondent’s local drinking water supply, while provision of information about exposure to PFAS via other pathways besides drinking water, including consumer goods, has no significant impact. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404489 |
| By: | , KuoRayMao; Zhao, Zhong |
| Abstract: | This article examines authoritarian states’ roles in commodifying freshwater resources in illiberal societies. The authors argue that collusion between global capitalism and national authoritarian interests has affected the legal structure, regulation enforcement, and institutional practices of public–private partnerships in China’s municipal water systems, resulting in regulatory failures in drinking water provision. The article also explores the implications of China’s state capitalist expansion into the global water utilities market as part of the green Belt and Road Initiative and suggests that this expansion may lead to new patterns of environmental concerns in the Global South. The findings demonstrate that collusion between neoliberal and authoritarian capitalist expansions shapes increasing inequalities and environmental governance standards in the Global South. The authors stress the need to view environmental and public health disasters resulting from water privatization as a transnational crime rather than solely focusing on nation-state regulatory mechanisms that exemplify “metropolitan thinking” in criminology. |
| Date: | 2026–07–25 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:8akq3_v1 |
| By: | Yang, Wei; Rouhi Rad, Mani; Bahrami, Shahin; Nayga, Rodolfo; Hrozencik, Aaron |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404450 |
| By: | Schmitz, Tom; Colantone, Italo; Ottaviano, Gianmarco |
| Abstract: | This paper evaluates the economic effects of environmental policy in the presence of general equilibrium spillovers. Focusing on a major change in U.S. air pollution regulations, we combine microeconometric evidence on local and industry-level impacts with a quantitative spatial equilibrium model that captures trade and labor market interactions. Using reduced-form estimates to discipline the model, we quantify aggregate employment and welfare effects that are not identified by partial equilibrium approaches. We find that the policy substantially reduced fine particle emissions, but also led to sizable employment losses. Ignoring general equilibrium spillovers materially overstates job losses in polluting industries while understating employment losses in clean industries. When both economic costs and emission-related amenity gains are taken into account, the welfare benefits of cleaner air dominate. |
| Keywords: | Employment; Trade |
| JEL: | E24 Q50 Q53 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19221 |
| By: | Lachhab, Rania; Bruno, Ellen |
| Abstract: | Water banking has gained increasing policy attention as a means to mitigate drought risk and enhance long-term water security, yet assessing its economic value remains challenging. We estimate the value of groundwater storage with a hedonic analysis of the Kern Water Bank in California, which created spatial variation in access to storage based on whether a parcel was located within a participating water district. Using a dataset of agricultural land transactions from Kern County, CA and surrounding areas spanning 1984 to 2021, we find that access to the Kern Water Bank meaningfully increased land values, with a 15% increase in the per-acre price of parcels within participating water districts relative to those outside following the start of the bank. These findings underscore the substantial economic benefits of intertemporal water reallocation, with policy implications for agricultural regions facing growing water scarcity and climate variability. |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404731 |
| By: | Wdowin, Julia; Coyle, Diane |
| Abstract: | Shadow prices provide estimates of the economic contribution of capital assets (goods and services) to social welfare. They differ from exchange values in that they aim to incorporate the economic value of externalities associated with some assets. As the revised SNA25 standard explicitly recognises renewable energy resources as economic assets, this paper demonstrates an empirical methodology for estimating the shadow value of wind as a renewable energy asset, and provides estimates of the annual asset shadow value for onshore wind in the UK between 2009 and 2023. The estimates incorporate the value of avoided carbon emissions as a service wind energy provides. The estimated annual shadow asset values are much larger than market price equivalent asset values. While these estimates should be treated with caution due to a number of methodological choices involved, they signal the likely underestimation of the contribution of wind energy to social welfare. The paper concludes by discussing methodological assumptions and data needs for estimating shadow values. The paper provides a modest empirical contribution, whilst methodologically consistent with ONS natural capital accounting for feasible implementation. |
| Keywords: | shadow prices; natural capital accounting; wind; renewable energy; asset valuation; welfare |
| JEL: | D60 D62 E01 Q40 Q51 Q56 |
| Date: | 2026–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:eoe:escoed:escoe-dp-2026-08 |
| By: | Giglio, Stefano; Kuchler, Theresa; Ströbel, Johannes; Wang, Olivier |
| Abstract: | We explore the economic effects of biodiversity loss by developing an ecologically-founded model that captures how different species interact to deliver the ecosystem services that complement other factors of economic production. Aggregate ecosystem services are produced by combining several non-substitutable ecosystem functions such as pollination and water filtration, which are each provided by many substitutable species playing similar roles. As a result, economic output is an increasing but highly concave function of species richness. The marginal economic value of a species depends on three factors: (i) the number of similar species within its ecosystem function, (ii) the marginal importance of the affected function for overall ecosystem productivity, and (iii) the extent to which ecosystem services constrain economic output in each country. Using our framework, we derive expressions for the fragility of ecosystem service provision and its evolution over time, which depends, among other things, on the distribution of biodiversity losses across ecosystem functions. We discuss how these fragility measures can help policymakers assess the risks induced by biodiversity loss and prioritize conservation efforts. We also embed our model of ecosystem service production in a standard economic model to study optimal land use when land use raises output at the cost of reducing biodiversity. We find that even in settings where species loss does not reduce output substantially today, it lowers growth opportunities and reduces resilience to future species loss, especially when past species loss has been asymmetric across functions. Consistent with these predictions of our model, we show empirically that news about biodiversity loss increases spreads on credit default swaps (CDS) more for countries with more depleted ecosystems. |
| Keywords: | Biodiversity |
| JEL: | E3 E32 E60 E61 G1 G10 H20 H21 H23 Q01 Q3 Q30 Q32 Q50 Q54 Q56 Q57 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19277 |
| By: | Khanal, Ajit; Legrand, Nicolas |
| Abstract: | This paper studies whether Minnesota’s Buffer Law affected county-level corn and soybean yields. Using a staggered difference-in-differences design that compares Minnesota border counties to neighboring border counties, we estimate dynamic effects while controlling for weather, drought, fertilizer use, and adoption intensity of federal conservation programs. We do not find consistent evidence that the law reduced average yields in the later post-treatment periods. The current results are preliminary and should be interpreted cautiously pending additional robustness and sensitivity analysis. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404481 |
| By: | Gibbon, Kayshani; Derwall, Jeroen; Gerritsen, Dirk; Koedijk, Kees |
| Abstract: | Motivated by concerns that mutual funds’ stated integration of environmental, social and governance (ESG) criteria in investing is cosmetic, we study the widespread phenomenon that mutual funds change their name to include ESG-related appellations. Using a unique global sample of ESG-related name changes by 740 retail and 317 institutional share classes between July 2016 and September 2022, we investigate investors’ response and fund managers’ behaviour in terms of fund flows, portfolio-level ESG metrics and fees. Using difference-in-differences analyses and accounting for heterogeneous treatment effects, we provide mixed evidence on whether funds increase flows by renaming, although effects appear significant for funds domiciled in Europe. We subsequently document that fund managers do improve the ESG performance, reduce exposure to controversial businesses, decrease the carbon intensity, and lower the overall ESG risks of their portfolios after ESG renaming. Renaming has no material impact on funds’ expenses. The results alleviate concerns that funds use ESG-oriented name changes cosmetically and imply that they are renaming with purpose. |
| Keywords: | ESG; Mutual funds |
| JEL: | G15 G23 M14 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19291 |
| By: | Li, Yixuan; Sun, Wenxin |
| Abstract: | We estimate the amenity value of trees using spatial and temporal variation in tree cover from an exogenous ecological shock: the invasion of the Emerald Ash Borer, which killed millions of ash trees throughout the eastern United States starting in 2002. We estimate heterogeneous responses between renters and homeowners, as these groups may hold different conditions of the contracts. Results show that the substantial reduction in tree cover significantly decreased local property prices, and that renters and homeowners reacted divergently to this unexpected ecological shock. These findings highlight the economic value of environmental amenities and market responses to unanticipated environmental shocks. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404495 |
| By: | Mehan, Sach |
| Abstract: | India faces a dual crisis: an oil import dependency of 87.7% costing $137 billion annually, and binding climate commitments including a 47% emission intensity reduction target and net zero by 2070. The transport sector, which accounts for 14% of India's total emissions and 58-60% of imported crude oil consumption, sits at the centre of both crises. This policy brief examines ethanol blending as a policy instrument positioned to address both simultaneously. Drawing on official government data, a peer-reviewed study by IIM-A and the Potsdam Institute (Jha et al., 2026), and the Parliament statement of July 20, 2026, the brief analyses the advantages and challenges of India's Ethanol Blending Programme, which achieved its 20% blending target in 2025, five years ahead of schedule. While the programme has delivered $19.3 billion in forex savings and a net reduction of 832 lakh metric tonnes of CO2 emissions, it presents serious trade-offs in food security, water stress, and land use. This brief argues that the path forward lies not in retreating from ethanol blending, but in accelerating the transition from first-generation sugarcane-based ethanol to second-generation agricultural waste-based ethanol. Five policy recommendations are proposed to address the structural challenges while preserving the programme's strategic benefits. |
| Date: | 2026–07–27 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:aws6h_v2 |
| By: | Anouk Levels |
| Abstract: | The EU has introduced an extensive ESG disclosure regime aimed at redirecting private capital to support the transition to a sustainable economy. Yet, it remains unclear whether these disclosure obligations lead to measurable shifts in the allocation and cost of capital to green firms or investments. This review aims to address this gap by developing a conceptual framework that identifies the mechanisms through which both voluntary and mandatory disclosures may influence the allocation and cost of private capital, and by systematically mapping the emerging empirical evidence against these channels. It draws on 99 publications from three academic databases (Scopus, Web of Science, EconLit) and EU institutions, published between 2010 and 2025. The review shows that the evidence base remains emerging and fragmented, but generally points to a positive association between ESG disclosure or performance and access to finance and more favourable funding conditions. At the same time, capital markets seem to anticipate regulatory compliance costs and risks, which can increase uncertainty, and in some settings, adversely affect firms with potential implications for market functioning and capital allocation and pricing. The review further highlights implications for academics and regulators. For academics, it identifies several gaps and limitations suggests avenues for future research. For regulators, it provides cautious support for disclosure regulation, while underscoring the need for credible, usable and proportionate requirements. |
| Keywords: | Regulation; Disclosure; Environmental; social and governance (ESG); capital allocation; cost of capital; Review |
| JEL: | G11 G12 G14 G38 M14 M48 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:dnb:dnbwpp:867 |
| By: | Zhang, Yifan; Tian, Xiaohui |
| Abstract: | Existing projections of China’s forest carbon sink treat management as exogenous, ignoring how timber prices shape investment, species selection, and harvest timing. We develop a high-resolution China module within the Global Timber Model (GTM), a dynamic partial-equilibrium optimization framework calibrated to the Ninth National Forest Inventory across 234 land classes. Under the baseline, China’s forests sequester an average of 164 Tg C yr−1 between 2020 and 2060, stabilizing above 100 Tg C yr−1 through end-of-century. Commercial plantations, 24% of forest area, contribute over half the total sink by 2060. Holding management intensity fixed reduces the sink by 15% by 2060. Higher timber demand strengthens the sink through intensified management, while relaxing logging restrictions generates short-term carbon costs but long-term net gains. |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404739 |
| By: | Antonelli, Nicolás; Zanfrillo, Alicia Inés; Baltar, Fabiola; Sirochinsky, Eugenia |
| Abstract: | As a result of the profound changes in purchasing patterns driven by younger generations who are more conscious and responsible for what is produced and consumed, together with the health crises that brought food safety to the center of the debate, the demands on production models have evolved towards more sustainable and circular schemes. In this context, the fishing industry finds in the circular economy (CE) paradigm a strategic vehicle for the generation of value, with a remarkable potential in the reuse of waste, diversification of by- products and generation of renewable energy from organic waste. |
| Keywords: | Industria Pesquera; Economía Circular; Sostenibilidad; Cadena de Valor; |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4586 |
| By: | De la Peña, Nicolas (Universidad de La Salle); Vasquez-Merchan, Irma Liliana |
| Abstract: | International Environmental Agreements (IEAs) and Preferential Trade Agreements (PTAs) are supposed to influence domestic environmental norms. Although recent literature has examined global patterns, there remains a lack of understanding regarding the situation in Latin America. This paper aims to assess the effect of international agreements on domestic environmental law in Latin America. We develop an empirical analysis of the relationship between international agreements and national environmental legislation by combining three datasets: International Environmental Agreements Database (IEADB), Trade & Environment Database (TREND), and Food, Agriculture and Renewable Natural Resources Legislation Database (FAOLEX), to address IEAs, PTAs, and domestic legislation, respectively. Our paper contributes to scientific debates on international political economy because Latin America exhibits particularities regarding the influence of international norms on domestic legislation due to political regime, environmental protectionism, the influence of high-income partners, and the more significant impact of PTAs compared to EIAs. |
| Date: | 2026–07–24 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:7623c_v1 |
| By: | Schoenmaker, Dirk; Schramade, Willem |
| Abstract: | There is a long-standing controversy about determining the discount rate at which companies should discount the long-term benefits of sustainability investments (e.g. for climate change mitigation and adaptation). While financial capital is discounted at the standard financial discount rate, this paper argues that companies should discount social and natural capital at the social discount rate. We add a risk parameter to the social discount rate to deal with the macroeconomic risk of rare disasters. Social discount rates are typically lower than financial discount rates. So, if applied, they should lead to higher investments in social and natural capital. |
| JEL: | G32 H43 Q22 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19321 |
| By: | Mo, Taejun |
| Abstract: | We investigate how climate-induced changes in agricultural productivity will reshape global agricultural trade patterns, and how trade policy mediates these effects. We employ a structural gravity model combining econometric and counterfactual simulation-based analyses using spatially resolved data reflecting anticipated productivity impacts for six major crops. Our analysis yields three main findings: (1) climate change will significantly alter the geography of global agricultural production and trade, (2) trade offers a crucial mechanism through which the impacts of climate change can be mitigated, and (3) trade liberalization can further amplify the role of trade in buffering the economic effects of climate change. |
| Keywords: | International Relations/Trade |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404670 |
| By: | Johanna Bola\~nos-Zu\~niga; Alberto J. Lamadrid |
| Abstract: | In this study, we use electricity demand growth, cooling requirements, and backup system operation to evaluate the environmental and economic implications of artificial intelligence data centers in the United States. Our results indicate that impacts are not determined solely by facility design, but by the broader electricity, water, and land-use systems in which these facilities operate. Emissions are primarily driven by electricity consumption and therefore depend on marginal generation mixes, transmission constraints, and the spatial and temporal distribution of demand. Analysis further shows that local effects include pressures on water resources, increased noise exposure, and land-use changes, with outcomes varying across regions and infrastructure conditions. The assessment of technological and operational measures shows that improvements in energy efficiency, cooling configurations, and operational strategies can reduce these impacts, although their effectiveness depends on system-level conditions. Evaluation of regulatory and market structures suggests that existing frameworks may not fully account for location- and time-specific externalities. These findings support the need for integrated policy approaches that align data center deployment and operation with electricity system characteristics, water availability, and land-use planning to improve overall environmental and economic performance. |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2608.09882 |
| By: | , KuoRayMao; Zhu, Yiliang; Zhao, Zhong; Yan, Shan |
| Abstract: | This chapter offers one of the first studies to examine critically the connection between deficiencies in China’s regulatory apparatus and the criminality associated with illegal dumping and trading of medical waste—specifically as it pertains to waste dumping in rural northwestern China. The authors begin with a brief review of green criminology’s approach to waste crime and summarise the literature on top-down environmental regulation enforcement in China. Next, they describe the development of the medical waste regulation framework and highlight the current obstacles to enforcement in China. The chapter then introduces a case study to illustrate how institutional incentives in the job performance evaluation system of bureaucrats resulted in the under-enforcement of medical waste regulations at the level of rural governance. Their chapter concludes by suggesting that to study environmental offenses in China, green criminologists must examine how the institutional practices of the fragmented bureaucracy shape the economic, political, and social contexts that have structured the complexity of environmental regulation enforcement in this illiberal and restrictive society. |
| Date: | 2026–07–27 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:45uh2_v1 |
| By: | Kim, Gisu; Elbakidze, Levan |
| Abstract: | The United States has become the world’s largest exporter of liquefied natural gas (LNG). Yet, the local air quality impacts of LNG export terminals remain unexplored. We estimate the effects of the three largest U.S. export terminals on local ambient ozone pollution. Using daily wind direction to determine downwind treatment versus control observations and difference-in-difference (DiD) methods, we document statistically significant 5% to 7% increases in downwind ozone pollution due to export terminals. The estimated effects are robust across multiple specifications. Even with these increases, average daily ozone concentrations remain well below EPA’s National Ambient Air Quality Standards. Nevertheless, the results document measurable, localized externalities from LNG export operations, which emphasizes the need for continued monitoring as export capacity expands. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404439 |
| By: | Ndubuisi, Gideon; Avenyo, Elvis |
| Keywords: | Gender equality, Green transition, Engendering Policy, Gender-Transformative Industrial Policy, G-TRIP, Africa |
| JEL: | O14 O55 O57 J16 |
| Date: | 2026–08–20 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2026011 |
| By: | Rounak Hande (xKDR Forum); Utkarsh Narain (xKDR Forum); Ajay Shah (xKDR Forum) |
| Abstract: | Accurate measurement of renewable energy capacity is a prerequisite for effective climate policy making. Yet, official statistics are rarely cross-validated against independent sources. Sound measurement helps policymakers meet globally-stated goals and guides the private sector in deploying capital. We compare solar and wind installed capacity from the Central Electricity Authority (CEA) against two independent sources: satellite imagery from Global Renewables Watch (GRW) and project-level data from the Centre for Monitoring Indian Economy (CMIE) CAPEX database. For solar, GRW tracks CEA closely (95% as of January 2024) initially, but diverges by April 2026. The satellite estimate of 133 GW with a slight downward adjustment to account for non-operational plants likely represents true solar capacity in India as of April 2026. Wind estimates differ more substantially, with GRW reporting 122% of CEA capacity as of January 2024, likely reflecting higher turbine capacity factor assumptions. As of April 2026, CEA reports installed wind capacity of 56.4 GW. The CMIE CAPEX database accounts for roughly 48-75% of CEA-reported capacity for wind and solar respectively by April 2026, consistent with its role as a survey rather than a census, and indicative of sizeable unrecorded capacity. Our analysis establishes a benchmark to validate official statistics with alternative data. Additionally, we note that alternative sources like GRW and CMIE CAPEX can serve as valuable project-level resources supporting microeconomic research. |
| JEL: | Q42 Q43 Q48 O13 C82 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:anf:wpaper:45 |
| By: | Chen, Jian; Feng, Hongli; Ji, Yongjie; Seaberg, Luke |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404504 |
| By: | Johannes Gallé; Rodrigo Oliveira; Daniel Overbeck; Nadine Riedel; Edson R. Severnini |
| Abstract: | This paper provides the first comprehensive evidence on how firms in an emerging economy respond to carbon taxation in the context of an early-phase policy, highlighting how firms adjust when incentives are modest but signals about future regulation are strong. We study the announcement and early implementation of South Africa’s 2019 carbon tax using detailed administrative firm-level data from 2011-2021. Employing a matched difference-in-differences design and event-study models, we trace dynamic firm responses. Contrary to concerns that carbon taxes might hinder growth or employment, we find no negative effects on firm performance or jobs. Leveraging variation in firms’ exposure to the tax through temporary tax-free allowances, we find that firms facing higher effective tax rates increased sales, employment, capital, and capital depreciation in anticipation of the policy, reflecting resolution of regulatory uncertainty and adjustments to mitigate stranded asset risks. While we detect no measurable reduction in emissions — likely due to anticipatory behavior — the results show that early-phase carbon pricing can shape firm behavior without harming economic outcomes, even in low- and middle-income settings. |
| Keywords: | carbon pricing, carbon tax, firm performance, employment outcomes |
| JEL: | H23 Q52 Q58 O13 O55 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12953 |
| By: | Hua, Yunei; Li, Wenying; Wang, Haoluan; Zhang, Jingfang |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404499 |
| By: | Chen, Jialiang; Lade, Gabriel |
| Abstract: | Environmental advocates argue that California’s Low Carbon Fuel Standard (LCFS) is expanding U.S. dairy herds by paying farmers to capture manure methane, while regulators dismiss these concerns as speculative. We exploit the historical placement of natural gas facilities relative to dairy farms and historical LCFS credit prices to examine the impact of the policy on county milk-cow inventories from 2012 to 2025. We find that a 10 percent increase in the credit revenue per unit of biogas raises herd sizes by approximately 1.2 percent for complier counties. The estimate is robust to excluding California. National herd inventories have held steady between 9.3 and 9.5 million head since 2018, suggesting the policy reallocated dairy cow locations rather than expanding aggregate herd sizes. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404445 |
| By: | Taheripour, Farzad; Baldos, Uris Lantz; Benavidez-Brouk, Lauren; Chen, Shuo; Zhuang, Qianlai |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404789 |
| By: | Taheripour, Farzad; Baldos, Uris Lantz; Benavidez-Brouk, Lauren; Chen, Shuo; Zhuang, Qianlai |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404796 |
| By: | Phoebe Koundouri (Dept. of International and European Economic Studies, Athens University of Economics and Business); Stathis Devves |
| Abstract: | Climate change, increasing electrification, energy-price volatility, and growing dependence on variable renewable resources are increasing the exposure of local and regional energy systems to economic and operational disruptions. Strengthening climate resilience therefore requires systemic approaches capable of integrating distributed flexibility, behavioural adaptation, local market coordination, and digital governance. This study develops an integrated behavioural-economic-technical framework for evaluating residential prosumers participating in blockchain-enabled local electricity markets under dynamic pricing. The model operates over an annual 8, 760-hour horizon and combines endogenous utility-based demand response, photovoltaic generation, battery storage, grid interaction, peer-to-peer (P2P) energy trading, battery degradation, and multidimensional welfare assessment. Three progressively more intelligent battery dispatch strategies-a fixed rule-based strategy, an adaptive forecast-based strategy, and a 24-hour rolling-horizon optimisation strategy-are evaluated for four storage capacities of 10, 15, 20, and 30 kWh under identical assumptions and performance indicators. Results show that dispatch intelligence is generally more influential than battery size alone in determining grid dependence, renewable self-consumption, price responsiveness, and welfare allocation. Strategy A exhibits strong capacity saturation, Strategy B produces the strongest capacity-dependent response and buyer-oriented redistribution of P2P benefits, while Strategy C provides a more balanced compromise between prosumer welfare, market participation, and storage utilisation. Fourier decomposition further identifies systematic intraday periodicity in elasticity, P2P price reductions, and participant utilities, revealing temporal market dynamics that are not captured by annual indicators alone. A utility-based clearing-price benchmark additionally quantifies the distribution of welfare between buyers and selling prosumers, while a hierarchical welfare decomposition separates behavioural utility, conventional grid-related surplus, and decentralised P2P welfare. Overall, the findings demonstrate that distributed storage, intelligent dispatch, and blockchain-enabled local trading can reduce exposure to wholesale-market volatility, increase local renewable utilisation and energy autonomy, and strengthen the adaptive capacity of energy communities. The framework therefore interprets distributed flexibility not merely as an optimisation resource, but as a form of local climate-resilience infrastructure supporting more adaptive, decentralised, and inclusive energy transitions |
| Keywords: | Climate resilience, Peer-to-peer electricity Trading, Battery energy storage systems, Prosumer utility, Blockchain-enabled energy markets, Distributed energy flexibility |
| Date: | 2026–08–23 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2620 |
| By: | Johannes Gessner; Wolfgang Habla; Benjamin Rübenacker; Ulrich J. Wagner |
| 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 almost quintuples electricity consumption: Total charging increases by 318 kWh per quarter while fuel consumption falls by 98 liters, reducing tailpipe CO2 emissions by 38%. Moreover, access to home charging doubles the employee’s propensity to choose a Battery Electric Vehicle (BEV) upon renewal of the lease. Based on these estimates we compute the private levelized abatement costs of home chargers for a range of scenarios characterizing the diffusion of BEVs and the evolution of tax-inclusive energy prices over a 20-year horizon. Home chargers break even within twelve years, saving on average 13 tons of CO2 over a 20-year lifetime at negative levelized cost. |
| Keywords: | charging infrastructure, plug-in hybrid and battery electric vehicles, electric driving share, technology adoption, company cars, marginal emissions |
| JEL: | D12 L91 Q52 R42 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_663v2 |
| By: | Arnaud Garnier (LHEEA - Laboratoire de recherche en Hydrodynamique, Énergétique et Environnement Atmosphérique - CNRS - Centre National de la Recherche Scientifique - Nantes Univ - ECN - NANTES UNIVERSITÉ - École Centrale de Nantes - Nantes Univ - Nantes Université); Pierre Marty (LHEEA - Laboratoire de recherche en Hydrodynamique, Énergétique et Environnement Atmosphérique - CNRS - Centre National de la Recherche Scientifique - Nantes Univ - ECN - NANTES UNIVERSITÉ - École Centrale de Nantes - Nantes Univ - Nantes Université); Rodica Loisel (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université) |
| Abstract: | The pathway towards decarbonisation of shipping is unclear, as many technical, economic, and regulatory challenges remain. This study builds a bottom-up model to forecast the merchant fleet vessel composition and CO2 emissions by 2050. A 35, 000 vessel fleet is modelled based on technical and operational data, on the population pyramid and historical fleet evolution triggered by trade demand. The emissions forecast in a ‘no-action' scenario shows that even low-growth traffic scenarios will largely deviate from the carbon neutrality objectives. It highlights fleet heterogeneity as a key point in understanding and considering global decarbonisation strategy. Fleet renewal analysis revealed technical and planning issues due to the tendency towards larger vessels and high building rates up to 2000 vessels per year from 2040 onwards. Alternatively, retrofitting could significantly contribute to carbon neutrality, concerning up to 40% of the shipping tonnage if the strategy of decarbonisation is not integrated early in shipyard industry planning. |
| Keywords: | Energy consumption model, Shipping decarbonisation, Bottom-up approach, Fleet renewal inertia, Traffic demand scenarios, Emission forecast, AIS data |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05692446 |
| By: | Golub, Alla; Chepeliev, Maksym; Simonato, Thiago; Fischer, Carlos Gonzalez; Mason-D'Croz, Daniel; van der Mensbrugghe, Dominique |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404493 |
| By: | Donnelly, Emma; Reeling, Carson; Melstrom, Richard; Phelps, W. Adam |
| Abstract: | We estimate willingness to pay (WTP) for a hypothetical sandhill crane (Antigone canadensis) hunting permit using contingent valuation, based on a mail survey of Indiana hunters. The hypothetical permit would allow hunting over a two-month season. Permit attributes in the experiment include price, individual harvest limits, and a seasonal quota. We find mean WTP is $61 and sensitive to scope, which supports the internal validity of the valuation estimate. Understanding the benefits of hunting is important as resource managers consider initiating new harvest seasons. No prior studies have estimated WTP for sandhill crane hunting, so these results provide a baseline for future benefit transfer applications in wildlife economics. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404451 |
| By: | Azarmsa, Ehsan; Shapiro, Joel |
| Abstract: | The boom in Environmental, Social, and Governance (ESG) investing has created a demand for ESG ratings. ESG ratings, unlike credit ratings, measure multiple unrelated categories. We provide a model of ESG ratings competition where raters provide information about these categories and set fees. Raters specializing in different categories maximizes the amount of information transmitted and total surplus, and is the competitive outcome when investors are less concerned about ESG performance. When investor concerns about ESG performance are large enough, the competitive outcome is for them to generalize – splitting their effort among the categories, resulting in less informative ESG ratings. In this case, generalizing increases the stand-alone value of the ratings, and, hence, the raters’ pricing power. The possibility of greenwashing by firms can make generalization the unique equilibrium. We also demonstrate that specialization maximizes ratings disagreement and, thus, empirical measures of disagreement may be poor measures of surplus. |
| Keywords: | ESG ratings; Information transmission; Market structure |
| JEL: | G24 G14 L13 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19290 |
| By: | , KuoRayMao; Zhao, Zhong; Xu, Yue |
| Abstract: | This study examines China's environmental governance through the framework of Althusser's Repressive and Ideological State Apparatuses, using the 2021 Shenzhen Blueway Ecological Belt Project as a case study. Despite the formalization of public participation, the authoritarian state employs legal, bureaucratic, and ideological mechanisms to suppress dissent while preserving legitimacy. The findings reveal how control over information flows and media narratives, coupled with legal and bureaucratic constraints on NGOs, systematically undermines public engagement and reinforces top-down governance. The Shenzhen case demonstrates the state's dual strategy of repression and ideological control, wherein environmental governance operates both as a political instrument and a means of consolidating state authority. By co-opting NGOs, restricting transparency, and framing environmental contention as a national security threat, the state effectively neutralizes opposition and fortifies its state-capitalist accumulation model. This study contributes to the discourse on authoritarian environmentalism, underscoring its long-term implications for sustainability, public participation, and state-society relations. |
| Date: | 2026–07–27 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:4pm57_v1 |
| By: | Grimm, Michel; Kerner, Philip; Klarl, Torben |
| Abstract: | Uncertainty is a major theme of complex and multilayered socio-technical transitions such as the transition to a sustainable energy system. Thereby, uncertainty can delay investment decisions and affect the prospects and speed of the transition. Additionally, the energy transition is shaped by local conditions and transition paths differ across sub-national regions. In this paper, we contribute to the understanding of the effects of uncertainty in the energy transition by proposing a novel energy-transition-related uncertainty index at this sub-national level. To achieve this, we use recent advances in Natural Language Processing and a novel dataset of localized German news articles at the German NUTS 2 level. We discuss our new index in detail and compare it to established measures of uncertainty to show that it is well suited to purposefully capture uncertainty related to the energy transition. In our empirical application, we show that regional uncertainty related to the energy transition is driven by common national-level factors and region-specific path dependence simultaneously. Furthermore, we report robust evidence for regional uncertainty shocks leading to a quick decline in investment in solar photovoltaics. |
| Keywords: | Uncertainty, Large Language Models, News Data, Renewable Energy Investments |
| JEL: | Q43 D80 O33 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:atv:wpaper:2602 |
| By: | Christina Caron |
| Abstract: | This report examines the role of natural capital in economic and productivity growth. It proposes that natural capital should be considered a pivotal explanatory variable in the rise and subsequent decline of global productivity growth over the past five centuries, and presents extensive supporting evidence. Labour productivity and multifactor productivity (MFP) growth rates have been declining in advanced economies for several decades, with significant implications for living standards; the decline in labour productivity growth has extended to emerging economies over the past fifteen years. Global MFP growth has flatlined since 2007 in both advanced and emerging economies. While many explanations for these trends have been advanced, no clear consensus has yet emerged. However, the pervasive and persistent nature of the declines signals that factors of global scope and extended duration are likely implicated. This report presents an alternative explanation for the secular decline in global productivity growth: that erosion of natural capital has been occurring on a sufficiently large scale as to exert significant and growing downward pressure on productivity growth. Accordingly, a fundamental transformation in the economic role of natural capital has taken place, from productivity accelerator from the 16th century through the mid-20th century, to productivity decelerator subsequently. This role has been obscured due to the absence of natural capital from conventional economic frameworks and production functions. |
| Keywords: | natural capital, productivity growth, multifactor productivity, environmental degradation, climate change, biodiversity, global productivity |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:sls:resrep:2507 |
| By: | C. Nondo (Jackson State University); T. Saungweme (University of South Africa); N.M. Odhiambo (University of South Africa) |
| Abstract: | The objective of this study is to empirically examine the short and long-run relationship between natural resource rent, economic growth, governance mechanisms based on the Polity IV, gross capital formation, inflation, and population in Zambia over the period 1986-2018. This study employs the autoregressive distributed lag model (ARDL) to estimate the underlying long-run and short-run relationships between the variables. The study uses three proxies of governance quality, namely autocracy, executive recruitment, and democracy, and estimates three regression models. Furthermore, interaction terms are included to explore how different forms of governance quality influence the economic impact of natural resources. The results confirmed a long-run equilibrium relationship among the variables included in the estimated models. The results further show that the impact of natural resource rents on economic growth depends on the model specification. It is also time-variant, depending on whether the model is estimated in the short run or the long run. Overall, our results do not support the existence of the resource-curse phenomenon in Zambia, regardless of the time frame considered. Instead, the results indicate that natural resources have the potential to spur economic growth in the short run when both executive recruitment and democracy are used as governance proxies, and in the long run when democracy is used. The results also show that governance modulates the impact of natural resource rents on economic growth, but only when proxied by democracy. However, the findings vary depending on the timeframe. While democracy positively influences growth through natural resources in the long run, it has adverse effects in the short run. The results of the study suggest that policymakers in Zambia should enact cautious measures that encourage responsible approaches to utilizing natural resource rents to foster sustainable economic growth. This involves using natural resource rents to boost human and physical capital, as well as diversify the economy. |
| Keywords: | Economic growth, governance, natural resources; resource curse; Zambia |
| JEL: | C22 O13 O43 O55 Q34 |
| Date: | 2024–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:afa:wpaper:wp082024 |
| By: | Rodolfo R.S.M. Freitas; Fengqi You; Zhihao Xing; Fernando Alves Rochinha; Roger R.F. Cracknell; Daniel D.M. Mira; Alessandro Parente; Kai Hong Luo; Jinyue Yan; Xi Jiang |
| Abstract: | The aviation industry’s dependence on liquid fossil fuels makes it one of the most challenging sectors to decarbonise. Sustainable aviation fuels (SAF) offer a promising pathway; however, their widespread deployment is constrained by high production costs and the lack of systematic design tools for identifying viable drop-in fuel candidates. To address this challenge, this work presents an AI-guided de novo fuel discovery framework based on deep kernel learning to establish a high-fidelity mapping between molecular structure and key physicochemical fuel properties. The proposed probabilistic surrogate model demonstrates strong predictive performance, achieving coefficients of determination exceeding 0.91 across all target properties while providing calibrated uncertainty estimates through probabilistic inference. Quantitative uncertainty diagnostics, including negative log-likelihood, continuous ranked probability score, interval sharpness, and predictive uncertainty calibration analyses, demonstrate robust predictive reliability across the evaluated fuel-property space. Integrated with a virtual high-throughput screening framework, the proposed methodology enables rapid exploration of high-dimensional blend-composition spaces and identification of candidate SAF formulations whose predicted properties are consistent with, or exceed, those of JP-8 and Jet A reference fuels. The identified SAF blends additionally exhibit an estimated reduction in particulate emissions exceeding 17%. Repeated optimisation and sensitivity analyses further demonstrate robustness with respect to stochastic initialisation and optimisation hyperparameters. Importantly, these results should be interpreted as prediction-guided identification of promising SAF candidates rather than direct experimental validation. Although the predicted properties align with key certification-relevant specifications, full assessment of 100% drop-in capability, operational compatibility, and certification readiness requires comprehensive experimental validation and qualification according to established aviation standards. Overall, this work establishes an AI-enabled framework that integrates predictive modelling, uncertainty quantification, and virtual high-throughput optimisation to accelerate the discovery and prioritisation of sustainable aviation fuel candidates, supporting more efficient exploration of the SAF design space and contributing to the aviation sector’s transition towards net-zero emissions. |
| Keywords: | AI for science; AI-compositional mapping; De novo design; Decarbonisation; Energy transition; Sustainable aviation fuels; Sustainable energy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/412197 |
| By: | Martinez Salas, Ana |
| Abstract: | El cambio climático constituye uno de los principales desafíos globales de la actualidad, impulsado por el aumento de las emisiones de GEI. Las instituciones de educación superior, dada su intensa actividad cotidiana, se convierten en fuentes significativas de emisiones, resultando fundamental medir y gestionar su impacto ambiental. El presente trabajo propone el cálculo de la huella de carbono de la FCEYS (UNMDP), siendo este uno de los indicadores biofísicos de sostenibilidad propuesto por la Economía Ecológica, conocido por su utilidad para cuantificar emisiones, identificar fuentes principales y orientar la toma de decisiones hacia una gestión ambiental eficiente. Para ello se desarrolló un estudio de caso que combinó la estimación de las emisiones generadas por las principales actividades de la Facultad con el análisis de la percepción, la predisposición y las prácticas ambientales de estudiantes, docentes y personal nodocente, a través de una encuesta. Los resultados indican que la huella de carbono institucional de la FCEYS para el año 2023 asciende a 1.883 tnCO2eq. La movilidad cotidiana de la comunidad universitaria constituye la principal fuente de emisiones, representando aproximadamente el 88 % de la huella de carbono institucional. El enfoque integrado con la conducta sustentable, permite proponer líneas de acción orientadas a la reducción de emisiones, la eficiencia en el uso de los recursos y el fortalecimiento de una cultura institucional sustentable. Así, este trabajo busca contribuir a la gestión ambiental universitaria y sentar un precedente metodológico replicable en la universidad. |
| Keywords: | Impacto Ambiental; Cambio Climático; Huella de Carbono; Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales; |
| Date: | 2026–04–12 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4580 |
| By: | Celian Colon; Stephane Hallegatte |
| Abstract: | Building resilience to natural hazards requires more than identifying critical assets. It requires understanding how supply chains respond to disruptions: where suppliers are located, what inventories firms hold, how diversified their sourcing is, and how products are transported. This paper summarizes key insights from DisruptSC, a spatial agent-based model that jointly represents the transport network and firm-level supply chains, applied to four countries or regions: Tanzania, Cambodia, Ecuador, and the Middle Corridor (Central Asia and South Caucasus). Five policy-relevant findings emerge. First, the duration of a disruption is a primary driver of total economic losses, making fast recovery a crucial lever for risk reduction. Second, the distribution of direct damages across firms and facilities matters as much as the total damages in determining total economic losses. Third, compounding events striking in close succession amplify losses in non-trivial ways, so that individual events cannot be assessed in isolation. Fourth, shorter supply chains do not always increase resilience: they buffer small, frequent disruptions but amplify large ones, reflecting a trade-off between efficiency and resilience that depends on the characteristics of the firm network and the nature of the risks. And fifth, resilience is a network externality—its benefits spill across firms and across borders — so markets under-provide it, and coordinated policy, within and between countries, has a role to play. The paper also illustrates how the model can be used for operational risk assessments or investment prioritization through transport investment stress testing, hotspot identification, and cost-benefit analyses that capture supply chain impacts. |
| Keywords: | supply chains, transport resilience, natural disaster, climate adaptation, criticality, agent-based modeling |
| JEL: | Q54 R42 D57 D85 C63 O18 H54 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12950 |
| By: | Jesús Enrique Beltrán Virgüez (Corporación Universitaria Minuto de Dios (UNIMINUTO), Bogotá, Colombia. Author-2-Name: Diana Geraldine Jiménez García Author-2-Workplace-Name: "Universidad Libre, Bogotá, Colombia. " Author-3-Name: "Giovanny Rodríguez Martínez" Author-3-Workplace-Name: "Fundación Universitaria Los Libertadores, Bogotá, Colombia. " Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Objective - The study of competitiveness has been widely addressed in the literature due to its importance as a key factor for organizational success. Competitiveness is closely linked to productivity and the organization's ability to project itself in the market. Methodology/Technique - A central element in this analysis is innovation, which has evolved towards approaches like sustainable competitiveness, integrating social, environmental, and economic dimensions. This paper examines the importance of innovation by defining it, measuring it, and applying it, highlighting its role as a driver of competitiveness at both national and organizational levels. Findings - Moreover, innovation is considered a source of competitive advantage that facilitates organizational sustainability. Through an extensive literature review, the advancements in the concept of innovation and its relationship with competitiveness are analyzed, contrasting theoretical models with case studies. These studies help establish a first step towards building a model of sustainable competitiveness. Novelty - This analysis is crucial for promoting the implementation of innovation processes that address current market needs, integrate environmental, economic, and social dimensions, and contribute to a more sustainable approach to organizational competitiveness. Type of Paper - Review" |
| Keywords: | Organizational Innovation; Literature Review; Innovation Models; Business Competitiveness; Barriers and Facilitators. |
| JEL: | O30 O31 Q01 |
| Date: | 2026–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:gtr:gatrjs:gjbssr676 |
| By: | Agerton, Mark; Beatty, Lauren; Cruz Figueroa Garcia, Diogenes |
| Abstract: | Environmental remediation yields no direct profit for producers, making delay privately rational and resulting in an externalization of the environmental costs of inaction, such as methane leaks and risk of groundwater contamination. There is option value to delaying plugging, however, if there is an expectation of future higher prices. Using data from the Railroad Commission of Texas, we estimate a discretetime dynamic discrete choice model of well production, shut-in, and plugging decisions. We recover the structural costs of shut-in maintenance, plugging and abandonment, and well reactivation for both oil and gas wells. We use these estimates to evaluate counterfactual policies, including plugging subsidies, idling taxes, capacity-based plugging mandate and time-based idling limits, that aim to accelerate the abandonment of unproductive wells. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404437 |
| By: | Sebasti\'an Souyris; Jason A. Duan; Anantaram Balakrishnan; Varun Rai |
| Abstract: | Problem definition: Solar electricity generation is a strategic component of energy portfolios designed to meet growing demand and reduce carbon emissions. Governments and municipalities encourage household photovoltaic (PV) adoption through upfront rebates and tax credits. Limited budgets require principled, data-driven policies that account for the drivers of adoption and the effects of incentives on adoption rates. Methodology/results: We develop a dynamic structural model of residential PV diffusion based on adoption decisions by forward-looking households that weigh the economic trade-offs between installing now and later. Adoption depends on return on investment and influence from neighboring adopters. The model segments households by home value and urbanization level, incorporates unobserved heterogeneity, and captures spatiotemporal installation dynamics. We estimate the model using Bayesian methods and detailed household-level data from Austin, Texas. In out-of-sample tests, it predicts installations more accurately than contemporary alternatives. We simulate counterfactual policies within the dynamic equilibrium of PV diffusion to evaluate rebate designs. The framework can also be adapted to study the adoption of other durable technologies. Managerial implications: A rebate offered for a limited period generates more adoption and emissions reductions than a prolonged, costlier program. This counterintuitive result arises from forward-looking behavior, neighbor influence, and accelerated adoption before the rebate expires. We also evaluate phased reductions and rebates differentiated by household segment. A two-step reduction outperforms multiple small reductions. Geographic differentiation improves policy performance, whereas differentiation by home value offers little advantage over a uniform rebate. |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2608.23796 |
| By: | Meg Adachi-Sato (Research Institute for Economics and Business Administration, Kobe University, JAPAN and Faculty of Business Administration / Institute of Small Business Research and Business Administration, Osaka University of Economics, JAPAN); Hiroshi Osano (College of Business Administration, Ritsumeikan University, JAPAN) |
| Abstract: | We study the optimal design of sustainable debt when a for-profit borrower raises capital from socially responsible investors and motivates a for-profit manager to exert sustainability effort through an executive compensation contract. We ask when fixed-rate bonds or loans are sufficient and when sustainability-linked debt is required, given that executive compensation can also be tied to ESG performance. The analysis shows that the optimal debt contract depends jointly on the investment structure faced by socially responsible investors and the borrower's ability to commit to ESG-linked managerial compensation. When the borrower can adjust ESG-based compensation appropriately, noncontingent debt can replicate the incentive effects of sustainability-linked debt in some environments, whereas explicit sustainability-linked payments remain valuable in others. The results clarify how sustainable debt and ESG-linked executive pay interact as alternative incentive instruments and provide implications for the design of sustainable bonds and loans. |
| Keywords: | >ESG; Managerial compensation; Managerial incentives; Sustainability-linked debt; Sustainable debt |
| JEL: | D86 G12 G20 G32 M14 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:kob:dpaper:dp2026-25 |
| By: | Martino, Edoardo; Parchimowicz, Katarzyna |
| Abstract: | We investigate the hurdles to the effective implementation of sustainable banking regulation. We argue that existing approaches rest on an implicit assumption of verifiable asset quality, which is inconsistent with the informational structure of banking. Accordingly, we develop an analytical framework centred on structural asset opacity and information asymmetry: banks operate through opaque balance sheets and possess superior information about asset quality relative to both markets and supervisors. This opacity generates moral hazard in the asset classification when regulatory incentives tied to 'green' or 'brown' labels induce strategic misrepresentation and adverse selection. We recast the main regulatory tools proposed in the literature. The analysis shows that incorporating sustainability objectives into prudential requirements, particularly capital regulation, is prone to distortion under conditions of unverifiable information, while supervisory tools remain constrained by their reliance on bank-generated data. We advance an alternative approach based on mandatory contractual mechanisms embedded in lending relationships. Properly designed and supervised, these private law tools operate as sorting devices that differentiate between green and brown activities without requiring full information about asset quality. |
| Keywords: | bank capital, green transition, information asymmetry, bank supervision, regulatory private law |
| JEL: | G21 K22 K23 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:lawfin:342485 |
| By: | Dylan Brewer; R. Jim Crozier |
| Abstract: | In 2019, a fire at a natural gas plant and historically low temperatures caused an emergency shortage of natural gas in Michigan. A statewide emergency text alert asked households to turn thermostats down to 65{\deg}F. We analyze the effectiveness of this request using high-frequency smart-thermostat data from Michigan and four neighboring states. Using a difference-in-differences research design, we find that Michigan households reduced thermostat settings by 1.1 degrees on average. Our results suggest that the use of the wireless emergency alert system was critical in creating an effective emergency response. We examine heterogeneity in responsiveness by whether a household's baseline thermostat setting was above or below the compliance target of 65{\deg}F and by Democratic Party gubernatorial vote share. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.27584 |
| By: | Marco Alfano; Joseph-Simon Görlach |
| Abstract: | Accounting for multiple responses to weather shocks drastically changes policy implications for adaptation to increasingly variable weather. Kenyan households react to temperature anomalies by sending migrants, by transiting to less climate-sensitive occupations, and by changing livestock species. Evidence suggests these are short-term adjustments, which respond significantly to common interventions. Randomised income transfers cushion consumption losses and decrease adaptation pressure, such as migration. Better infrastructure, instead, eases occupational transitions, reducing alternative adjustments, including migration and livestock composition. A model of joint migration, occupation, and livestock choices reveals long-term effects of these short-term shocks. Transitions to non-agriculture first act as a substitute for migration and subsequently as a stepping stone for later migration. |
| Keywords: | migration, weather shocks, coping strategies, development policies |
| JEL: | J61 O15 R23 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:26216 |
| By: | Wang, Chang |
| Abstract: | Coastal property markets are influenced by unique environmental attributes, yet traditional models often assume their economic value is spatially constant. This study investigates the spatial heterogeneity of beach proximity value in Glynn County, Georgia, using a geographically weighted spatial lag (GWSL) hedonic model. By analyzing 42, 152 residential transactions from 1984 to 2021, we find that the effect of beach proximity on house prices is highly non-stationary, with significant capitalization concentrated in barrier islands. Our results reveal a powerful spatial multiplier, which indicates that property wealth is highly socialized through localized price spillovers. Applying individual local parameters, we estimate a mean Total Marginal Willingness to Pay (MWTP) of $1.06 million for a 100-meter reduction in network distance to the shoreline. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404453 |
| By: | Andrés-Cerezo, David; Fabra, Natalia |
| Abstract: | Decarbonizing the power sector requires major investments in renewables and storage. Though often seen as complementary, these technologies can act as substitutes from an economic perspective. When renewable output correlates positively with demand and capacity is low, storage may lower renewable profits, and vice versa — especially with strategic thermal producers. In markets with negatively correlated renewables, like solar and wind, storage can benefit one while disadvantaging the other. These findings inform policies on the timing and effectiveness of mandates or subsidies, suggesting that solar investments may need an initial push before supporting storage. Simulations of the Spanish market show that, at high solar penetration, storage boosts solar profits but reduces wind profits. |
| Keywords: | market power |
| JEL: | L94 Q40 Q42 Q48 Q50 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19294 |
| By: | Mayang Sari; Suphi Sen; Hans-Peter Weikard |
| Abstract: | We study the effect of a 2018 reform that expanded the scope of corporate income tax exemptions in Indonesia to include investments in renewable energy capacity. We find a large increase in the share of renewables in total installed capacity. These effects are mainly driven by the expansion of renewables and partially by a decrease in investments in fossil-fuel capacity. These regional effects imply a two-fold increase in the renewable energy share of Indonesia. We find no effects on manufacturing, a decline in mining activity accompanied by lower wages but no change in employment, and an increase in services employment, particularly in utilities. These results highlight the effectiveness of fiscal incentives in spurring capital-intensive infrastructure investments in developing countries and have implications for the role of renewable capacity expansion in regional development. |
| Keywords: | investment tax incentives, tax holidays, corporate income tax, renewable energy, investment, industrial policy |
| JEL: | H25 H30 L50 Q48 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12886 |
| By: | Fernando, Sachintha |
| Abstract: | This paper replicates Mideksa (2024), which applies the synthetic control method to estimate the effect of Finland's 1990 carbon tax introduction on per capita transport sector carbon emissions. I successfully replicate the main findings: the synthetic counterfactual closely tracks Finnish emissions in the pre-treatment period, with a substantial post-1990 divergence consistent with the original study. However, I show that this result is entirely driven by the inclusion of a single donor unit, Luxembourg, which is a structural outlier yet receives a positive weight in the optimization. Including Luxembourg is unusual in the literature: Luxembourg is a well-documented structural outlier, as its comparatively low fuel prices attract fuel tourism from neighboring countries, inflating its recorded transport emissions relative to actual domestic transport activity. Excluding Luxembourg deteriorates the pre-treatment fit and attenuates the estimated treatment effect, which falls to roughly a third of the original estimate and becomes indistinguishable from the placebo distribution. A donor pool resampling exercise confirms that the large treatment effect reported in the original study is systematically concentrated in subsamples containing Luxembourg. These findings highlight the sensitivity of synthetic control estimates to donor pool composition and provide an empirical illustration of interpolation bias in action. |
| Keywords: | synthetic controls, replication, carbon taxes, policy evaluation |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:i4rdps:317 |
| By: | Singleton, Alex; Green, Mark Alan (University of Liverpool); Shi, Meilin |
| Abstract: | The 3-30-300 rule has emerged as an influential benchmark for equitable urban green space provision, specifying that every home should have visibility of 3 trees, 30% neighbourhood tree canopy cover, and access to public green space within 300 metres. Despite growing international application, there is no GB-wide assessment of how households meet the rule. This paper presents the first nationally consistent operationalisation of the framework at the highest possible spatial resolution, calculating indicators for approximately 40 million Unique Property Reference Numbers (UPRNs) using high-resolution tree mapping, open green space data, and network-based pedestrian routing. We generate the 3-30-300 indicators as contin- uous measures, enabling assessment under canonical and alternative threshold specifications. Results reveal a substantial national green deficit: only 0.7% of urban UPRNs satisfy all three thresholds, with the 30% canopy criterion the binding constraint. The three components decouple both spatially and socio-economically. Tree visibility and canopy cover concen- trate in affluent southern suburbs and exhibit steep positive deprivation gradients, whereas proximity to formal green space marginally favours the most deprived urban neighbourhoods, reflecting inherited civic park provision in dense industrial- era cities. Composite compliance is nine times higher in the least deprived decile than the most deprived, a pattern robust to threshold relaxation. We argue the framework is best understood as three distinct policy levers rather than a single standard, and that place-sensitive, component-specific targeting is required to avoid widening the inequalities the rule seeks to ad- dress. |
| Date: | 2026–08–20 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:jyf63_v1 |
| By: | Niza Tan Mohd Aminuddin (Postgraduate School, UCYP University, Pahang, Malaysia Author-2-Name: Shakirah Noor Azlan Author-2-Workplace-Name: Faculty of Industrial Management, University Malaysia Pahang Al-Sultan Abdullah (UMPSA), Pahang, Malaysia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Objective - To analyze how women's political leadership translates from descriptive representation into substantive influence, identify the governance mechanisms affecting sustainable development, and examine the institutional conditions shaping these relationships. Methodology/Technique - An integrative review and structured evidence audit updated through July 2026, which synthesized 33 scholarly and authoritative institutional sources (selected from 68 candidate sources after screening). The analysis combined Governance Theory, Feminist Institutionalism, and SDG Interaction Theory to compare evidence across political systems and policy domains. Findings - Women's presence in office expands the possibility of influence but does not automatically guarantee superior development performance. Stronger outcomes depend on agenda access, executive authority, budgetary influence, and administrative capacity, with evidence being stronger for social-policy and institutional outcomes than for environmental or economic effects. Novelty - The conceptualization of women's political leadership as a contingent governance mechanism rather than an automatic cause, delivering an integrated framework that links representation, authority, mechanisms, outputs, and SDG outcomes while specifying enabling and constraining conditions. Type of Paper - Review" |
| Keywords: | women's political leadership; substantive representation; feminist institutionalism; governance; SDG 5; SDG interactions; sustainable development |
| JEL: | J16 D72 O15 H11 |
| Date: | 2026–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:gtr:gatrjs:gjbssr678 |
| By: | Eliseo Curcio |
| Abstract: | Interconnection queues, not electricity prices, now govern where data centers can be built, and the standard levelized-cost comparison answers a question no developer faces: it assumes a load profile, freezes the grid price while modeling the demand that moves it, and quotes busbar costs a facility cannot buy. This paper evaluates nine on-site supply technologies against a delivered grid whose price is endogenous to projected data-center demand, on a complete-site basis that retains standby charges, with measured GPU training load, delivered fuel prices, production-pathway carbon, and statutory 45V and 48E incentive mechanics. Nothing beats the wire: gas combined cycle produces at 47 USD/MWh but costs about 114 USD per megawatt-hour of complete site energy against a 92 USD grid; four-hour storage is physically capped near 18 percent of annual energy and, charged at the margin, dirtier than the grid; hydrogen from grid-priced power fails on cost and carbon together. An investment inversion converts these findings into capital terms: conversion-hardware learning buys nothing, because free hardware still exceeds the grid for every low-carbon arm, while global electrolyser deployment on sited sub-20 USD/MWh power brings PEM hydrogen power to about 2.2 times the grid at 300 billion USD and 1.9 times at 1 trillion USD (2.7 and 2.3 for the hydrogen engine), with a carbon reduction of roughly 85 percent (6.8-fold) against grid-power production. Grid parity is not purchasable at any budget. On-site supply is an access and depth product; most current investment targets the wrong term. |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2608.08170 |
| By: | Xiaozhen Wang; Francois Buet-Golfouse |
| Abstract: | For a trading desk, residual climate hedging valuation adjustment (HVA) is the climate cost left after its inherited hedge and any admissible overlay have been taken into account; it therefore cannot be inferred from a stand-alone stress loss. We obtain this residual by comparing paired climate-on and baseline worlds and reoptimizing the overlay for each hedge universe, which also turns hedge-instrument discovery into a valuation problem: an instrument is useful to the extent that it lowers the optimized residual cost. The linear-Gaussian case has an exact finite-horizon Riccati solution; Climate-Dyna starts from that hedge and learns the remaining nonlinear correction from paired world-model rollouts, with an independent gate deciding whether to deploy the update. In a public-data-calibrated semi-synthetic EU ETS study, crediting the inherited hedge lowers the mean climate charge from 1.517 to 0.906, and the learned overlay lowers it to 0.831 against a 0.821 exact floor; residual Dyna cuts regret by 93% relative to replay with one quarter as many trajectories, while adaptation from only 25 target transitions retains 60.7% of the exact-assisted gain. |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2608.01208 |
| By: | Bachmann, Ronald; Fischer, David; Gausing, Sibylle; Klauser, Roman; Rammert, Timo |
| Abstract: | This paper examines the extent and characteristics of labor shortages in the context of the green transition of the German labor market and discusses potential strategies to mitigate them. Using online job vacancy data, a firm survey, administrative employment and apprenticeship data, and measures of occupational greenness and labor shortages from the German Federal Employment Agency, we provide a comprehensive picture of green labor demand, supply, and shortages. We show that green labor demand has increased along both the extensive and intensive margins and identify the occupations and skills most relevant to the green transition. While green occupations are represented among both shortage and non-shortage occupations, firms increasingly expect the green transition to exacerbate skill and labor shortages. At the same time, the German apprenticeship system appears to play an important role in alleviating these shortages: although green occupations face shortages of apprentices, they remain comparatively attractive to applicants. Finally, firms predominantly rely on internal adjustment mechanisms - particularly training and increased technology use - rather than external recruitment strategies, such as hiring from abroad, to address changing labor demand. |
| Abstract: | Dieses Papier untersucht das Ausmaß und verschiedene Merkmale des Fachkräftemangels im Kontext der ökologischen Transformation des deutschen Arbeitsmarktes und erörtert mögliche Strategien zur Abmilderung der Konsequenzen. Die empirische Analyse basiert auf Daten aus Online-Stellenanzeigen, einer Unternehmensbefragungen sowie administrativen Beschäftigungs- und Ausbildungsdaten. Ergänzend werden berufsspezifische Indikatoren der Bundesagentur für Arbeit zur "Grünheit" von Berufen und zum Arbeitskräftemangel herangezogen. Dadurch lassen sich grüne Arbeitsnachfrage, das entsprechende Arbeitsangebot und bestehende Fachkräfteengpässe umfassend abbilden. Wir zeigen, dass die Nachfrage nach grünen Arbeitskräften sowohl entlang der extensiven als auch an der intensiven Marge gestiegen ist und identifizieren die für den grünen Wandel relevantesten Berufe und Qualifikationen. Grüne Berufe sind sowohl unter den Berufen mit ausgeprägtem Fachkräftemangel als auch unter den Berufen, die keinen Fachkräftemangel aufweisen, vertreten. Dennoch erwarten Unternehmen, dass die ökologische Transformation den Fachkräftemangel verschärfen wird. Eine zentrale Rolle bei der Abmilderung dieser Engpässe kommt dem deutschen Ausbildungssystem zu. Obwohl auch grüne Berufe einen Mangel an Auszubildenden verzeichnen, bleiben diese Berufe für Bewerberinnen und Bewerber vergleichsweise attraktiv. Unternehmen nutzen zur Bewältigung der sich wandelnden Arbeitsnachfrage überwiegend interne Anpassungsmechanismen, insbesondere Weiterbildung und verstärkten Technologieeinsatz, statt externe Rekrutierungsstrategien, wie die Anwerbung von Arbeitskräften aus dem Ausland. |
| Keywords: | green transition, labor demand, firm adjustment, green skills, labor shortages |
| JEL: | J23 J24 Q52 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:342544 |
| By: | Ezeukwu, Ijeoma |
| Abstract: | Over the past three decades, the international community has adopted an unprecedented set of legal, policy, and institutional commitments to advance gender equality, protect women and girls from violence, and promote peaceful and inclusive societies, most notably through Sustainable Development Goals (SDGs) 5 and 16 and the Women, Peace and Security (WPS) agenda. Yet global monitoring confirms that progress on the relevant targets remains off track, and everyday realities inside households continue to diverge sharply from these commitments. This paper argues that the principal barrier is not the absence of formal commitments but the limited capacity of institutions to translate those commitments into lived domestic security, a pattern it terms the domestic peace gap. It applies the Domestic Peace Deficit (DPD) framework, developed in a companion conceptual paper (Ezeukwu, 2026), as an implementation lens for SDG 5, SDG 16, and the four WPS pillars of Prevention, Protection, Participation, and Relief and Recovery. The paper maps DPD's three pillars against relevant SDG targets and WPS commitments, and closes with practical recommendations for governments, United Nations agencies and development partners, and civil society organisations. Its central contribution is diagnostic and practical rather than theoretical: it shows how an institutional-performance lens, rather than an institutional-presence lens, can be used to evaluate whether global commitments are producing safer households. |
| Date: | 2026–08–20 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:9f4js_v1 |
| By: | John C. Whitehead; Tim Haab; Sherry L. Larkin; John B. Loomis; Sergio Alvarez; Andrew Ropicki |
| Abstract: | Estimating recreation benefits from environmental events or regulatory actions often requires household survey data. Probability-based sampling is preferred but costly; opt-in panels cost less but their welfare estimates may be biased. This paper compares probability-based and opt-in samples using travel cost method (TCM) and contingent valuation method (CVM) estimates of recreation losses from the BP/Deepwater Horizon oil spill in northwest Florida. Opt-in estimates exceed probability-based estimates by 26% under TCM and by 20% to 32% under CVM. Restricting CVM "yes" responses to those respondents most certain they would pay narrows the gap, but it remains larger than the TCM gap. Key Words: contingent valuation method, opt-in panel data, probability-based panel data, travel cost method. |
| JEL: | Q51 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:apl:wpaper:26-09 |
| By: | Xin Zhang; Yixuan Wang; Xingyi Hu; Xi Chen |
| Abstract: | We examine how prenatal exposure to air pollution interacts with gender-biased parental investments to shape long-run cognitive performance. Using nationally representative survey data from China, we show that fetal PM2.5 exposure significantly reduces cognitive ability for women, particularly among those with brothers. Our evidence suggests that the family investment channel operates primarily through education rather than health, with gender-biased educational resource allocation compounding negative outcomes for females. Specifically, conditional on the same level of fetal PM2.5 exposure, females receive less homework assistance from their families and attain lower levels of education. |
| JEL: | D13 I14 I24 J13 J16 Q53 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35591 |
| By: | Kamalbek Karymshakov (Kyrgyz-Turkish Manas University); Kijin Kim (Asian Development Bank); Dina Azhgaliyeva (Asian Development Bank); Dastan Aseinov (Kyrgyz-Turkish Manas University) |
| Abstract: | Household resilience to extreme weather events depends critically on financial access, yet the role of remittances in shaping expenditure responses to such events remains insufficiently understood. This study examines how remittances are associated with household expenditure patterns under precipitation extremes in the Kyrgyz Republic, using nationally representative panel household survey data (2019–2023). Exploiting exogenous variation in remittance flows generated by historical migration networks and exchange rate movements, the analysis identifies a context-dependent buffering role of remittances. Remittances may help sustain household expenditure during periods of extreme weather, with the strongest protective effects observed among rural and high-altitude communities. However, rural households receiving remittances during excess rainfall episodes appear to reduce their expenditure shares on education and health. The middle-income households exhibit the strongest remittance-climate buffering patterns, while the poorest households show limited ability to leverage remittances for meaningful expenditure reallocation—likely reflecting the insufficiency of remittances relative to the scale of climate-induced losses. |
| Keywords: | remittances;climate risks;Central Asia;Kyrgyz Republic;highland communities;precipitation;drought;weather extremes |
| JEL: | F24 Q54 D14 C23 |
| Date: | 2026–08–24 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:023539 |
| By: | Yin, Jiaxin |
| Abstract: | This paper examines how institutional structure shapes groundwater market participation using the evidence from the Oxnard Basin in Ventura County, California, where the first groundwater market under California’s SGMA was implemented. Using a farm-year panel of well-level extraction records linked to crop and land-use data, I show that agricultural production units have become increasingly concentrated. The internal reallocation of groundwater within the production units absorbs some marginal gains from formal market participation. The findings suggest that limited groundwater market trading may reflect institutional substitution rather than market failure, with implications for the design and evaluation of environmental markets. |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404733 |
| By: | Fabisik, Kornelia; Ryf, Michael; Schäfer, Larissa; Steffen, Sascha |
| Abstract: | We study whether institutional investors in corporate debt markets respond to environmental, social, and corporate governance (ESG)-related concerns. We exploit changes in firms’ ESG ratings on the cost of debt of U.S. firms using methodology-driven changes of two major ESG rating providers in the secondary corporate loan market. We find that loan spreads of downgraded ESG-rated firms increase by 25 percent compared to non-downgraded firms after the methodology change. This increase is not driven by an increase in firms’ fundamental default risk, but rather by a premium charged by debt investors above the spread for default risk. We further find that debt investors are indeed more likely to sell downgraded firms in the same period, especially when they are more ESG-conscious. Finally, we show that this has implications for the cost of debt of firms in the primary corporate loan market. |
| Keywords: | ESG ratings; Loan spreads |
| JEL: | E44 G20 G24 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19293 |
| By: | Kräussl, Roman; Rauh, Joshua; Stefanova, Denitsa |
| Abstract: | We study the effects of market ESG perceptions, as proxied by ESG ratings, on public firms’ security issuance and asset accumulation decisions. As many ratings products use restated or backfilled ratings, we focus on point-in-time (PIT) ratings. Higher ESG scores are associated with increases in equity issuance, and decreases in net debt issuance of similar magnitude, driven completely by the “E†component of ESG. There are no effects of ESG assessments on capital expenditures or non-cash asset accumulation, supporting the hypothesis that ESG perceptions are a sideshow for investment. We document that if using a standard ratings product instead of PIT data, researchers might falsely infer that higher ESG ratings lead to investment and positive asset accumulation, due in particular to the use of ESG scores in standard ratings data products. |
| Keywords: | Capital structure; Equity issues; Debt issues; ESG ratings |
| JEL: | G15 G31 G32 G34 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19282 |
| By: | Guiso, Luigi; Jappelli, Tullio |
| Abstract: | We implement a survey experiment to study whether awareness of the consequences of hydrogeological risk affects people’s willingness to fight it. To do so, we leverage a representative panel of 5, 000 Italian individuals interviewed at quarterly frequency, starting in October 2023. We elicit survey participants’ willingness to contribute to a public fund to finance investment to secure areas exposed to hydrogeological risk under different information treatments. We find that disclosing information about the consequences of hydrogeological risk causes individuals to increase both support for public funding and individual willingness to pay for the policy. Compared to the control group, individuals exposed to the treatment were 9 percentage points more likely to contribute to the fund and more willing to contribute an additional €29. Applying the information treatment to the whole working age population could raise as much as €0.26 billion per year. We provide evidence that individual willingness to pay depends on individual knowledge that the success of the policy depends critically on the willingness to pay of other citizens. |
| JEL: | H31 H2 H23 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19280 |
| By: | N. Karimi; E. Salavati; F. Shokrollahi |
| Abstract: | Climate perils are linked through event ordering and state-dependent propagation, features not fully captured by joint loss distributions alone. This paper develops a Cascading Climate Risk Network (CCRN) for multi-peril reinsurance that separates calendar-scale climate conditioning from within-event propagation on a directed acyclic graph (DAG). The model combines complementary-log-log triggering hazards with bounded severity activation, mapping physical states to insured losses via a capacity-bounded demand-surge transformation. For fixed shocks, the event-scale cascade reaches a unique finite-step closure. Monotone comparative statics provide a pathwise upper-corner loss bound over rectangular stress sets, yielding a transparent contract-level stress-testing guarantee under common aleatory inputs. Comprehensive numerical experiments, including copula and Bayesian-network benchmarks, sensitivity analyses, and uncertainty propagation, demonstrate that while central layer prices remain robust across matched-marginal dependence structures, far-tail and high-layer behaviors differ materially. Directional propagation, annual event frequency, and dependence strength emerge as the principal risk drivers. The study provides a controlled synthetic verification of the proposed architecture. |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2608.09456 |
| By: | De Marchi, Elisa; Banterle, Alessandro; Cavaliere, Alessia; Fadini, Irene |
| Keywords: | Research Methods/Statistical Methods |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404520 |
| By: | Hamid Bekamiri (Aalborg University Business School, The IKE Research Group, Aalborg University, Denmark); Jan Auernhammer (Center for Design Research, ME Design Group, Stanford University, USA); Milad Abbasiharofteh (Aalborg University Business School, The IKE Research Group, Aalborg University, Denmark); Jesper Lindgaard Christensen (Aalborg University Business School, The IKE Research Group, Aalborg University, Denmark) |
| Abstract: | Green-patent indicators based on Cooperative Patent Classification Y02 tags increasingly inform research, industrial policy, and climate-oriented investment, yet their construct validity has not been evaluated at corpus scale. We ask whether Y02 classification errors are random measurement noise or systematic, direction-specific bias. We introduce an Error-as-Signal framework in which disagreement between an administrative label and an independent model is treated as evidence of potential measurement error. Screening 9, 075, 421 USPTO granted patents from 1962-2024 with a fine-tuned domain model identifies 517, 772 disagreements. Two independent open-weight large language models then assess whether each flagged invention has a direct climate-mitigation or adaptation function. Cross-model consensus identifies 180, 384 administrative Type I errors (False Green) and 29, 465 Type II errors (Silent Green). Correcting these errors reduces the measured green-patent population by 25.5%, from 592, 387 to 441, 468 patents. Misclassification is systematic rather than random. Atypicality predicts Silent Green in an inverted-U pattern, while reflection complexity independently increases under-recognition: controlling for atypicality and filing year, a one-standard-deviation increase is associated with 1.61 times the odds of Silent Green. Structural complexity has the opposite association. Among consensus-attributed errors, the same increase in reflection complexity is associated with 2.45 times the odds that an error is Silent Green rather than False Green. Event tests show no discrete rise in misclassification when green classification became more salient and only limited evidence of increased explicit green framing after the 2013 CPC launch. The evidence is more consistent with bounded classification capacity than with applicant gaming. |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2608.23420 |
| By: | Pi, Zhiying; Bai, Junfei |
| Abstract: | Policies aimed at reducing food waste are central to global sustainability agendas, yet most studies analyze waste in isolation, neglecting interactions with food safety and nutrition. Efforts to curb waste can interact in unexpected ways with these objectives, potentially shifting inefficiencies rather than resolving them. This paper develops a unified producer–consumer model in which waste, spoilage risk, and nutritional deviation arise endogenously from intertemporal decisions on pricing, purchasing, and consumption. We show that single-objective policies, such as disposal fees or consumer was te reduction campaigns, may distort incentives, shift waste across stages, or worsen safety and health outcomes. Coordinated interventions improve welfare when spoilage probability decreases through real technological progress, so long as waste disposal fees are high enough and consumption remains close to the nutritional benchmark. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404380 |
| By: | Carolin Nast; Tom Broekel |
| Abstract: | This study examines researchers’ diversification into sustainability research, distinguishing between initial entry and subsequent engagement intensity. While the existing literature emphasises individual-level drivers, we argue that such diversification is also shaped by organisational and relational contexts. Using bibliometric data from the University of Stavanger, Norway, we show that network distance to sustainability-active colleagues is a key predictor: researchers who are structurally closer to engaged peers are more likely to enter the field and deepen their involvement. By contrast, department- and faculty-level sustainability activities show weaker, more context-dependent associations, with department-level effects disappearing once network variables are included. The findings highlight the importance of intra-organisational knowledge networks for sustainability-oriented research transitions. |
| Keywords: | research diversification, sustainability research, organizational context, academic peer influence |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2618 |
| By: | Hütter, Steffen Helmut; Kohl, Nicolai |
| Abstract: | Die Studie untersucht die ökologischen Effekte und das Einsparpotenzial von CO2-Emissionen durch den Einsatz zusätzlicher Buslinien während des Bürgerfests zum Tag der Deutschen Einheit 2025 im Saarland. Im Rahmen einer Befragung von 297 Besucherinnen und Besuchern, die mit Sonderbussen anreisten, wurden Nutzungsverhalten, Zufriedenheit und Verbesserungsvorschläge erfasst. Die Ergebnisse zeigen eine hohe Akzeptanz und Zufriedenheit mit dem Angebot, insbesondere bei den Altersgruppen 50-69 Jahre. Die Mehrheit der Fahrgäste würde die Sonderlinien auch bei zukünftigen Veranstaltungen oder im Alltag nutzen. Die Analyse des CO2-Ausstoßes belegt, dass die Nutzung der Sonderbuslinien im Vergleich zum motorisierten Individualverkehr (Pkw) unter realistischen Bedingungen zu erheblichen Emissionseinsparungen führt: Je nach Pkw-Besetzungsgrad konnten zwischen 2.437 und 6.425 Tonnen CO2 eingespart werden. Die Studie hebt hervor, dass die Auslastung der Verkehrsmittel ein entscheidender Faktor für die Klimabilanz ist. Ergänzend wurde die Fahrradnutzung untersucht, wobei eine hohe Zustimmung zur bereitgestellten Fahrradabstellanlage, aber geringe tatsächliche Nutzung festgestellt wurde. Die Ergebnisse liefern praxisnahe Empfehlungen für nachhaltige Mobilitätskonzepte bei Großveranstaltungen und zeigen das Potenzial für eine dauerhafte Verbesserung des urbanen Verkehrs im Sinne des Klimaschutzes. |
| Keywords: | CO2-Einsparpotenzial, Öffentlicher Personennahverkehr (ÖPNV), Sonderbuslinien, NachhaltigeMobilität, Veranstaltungsverkehr |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:htwlog:343064 |
| By: | Gong, Xuche; Cheu, Sungmin; Lee, Seowoo; Park, Yunsun |
| Keywords: | Agricultural and Food Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404364 |
| By: | Dekker, Thekla; Günzel-Jensen, Franziska; Scheidgen, Katharina |
| Abstract: | This paper explores how sustainable entrepreneurial ventures mobilize resources within over-supported sustainable entrepreneurial ecosystems (SEEs). Drawing on 76 interviews and field data from Copenhagen and Stockholm-two mature, sustainability-oriented ecosystems densely populated with entrepreneurial support organizations (ESOs)-the study employs an inductive qualitative design using the Gioia methodology. Contrary to prevailing assumptions that greater ESO density enhances entrepreneurial outcomes, the findings reveal that excessive and redundant support infrastructures generate structural inefficiencies and resource misallocations for ventures. Three distinct resourcing approaches emerge: The Hoarders, who over-engage and become trapped in ESO dependency; The Inverted Resources, who evolve from recipients to exploited ESO assets; and The Instrumentally Engaged, who selectively leverage ESO offerings for targeted gains while maintaining independence. These patterns demonstrate that in munificent ESO landscapes, venture resourcing shifts from acquisition under scarcity to navigation under abundance. The study contributes to ecosystem and resourcing theory by conceptualizing over-support as a paradoxical condition where institutional logics of support invert into extractive dynamics, undermining venture autonomy and ecosystem efficiency. Policy implications emphasize the need for outcome-oriented ESO evaluation and strategic curation over quantitative proliferation of support infrastructures. |
| Abstract: | Diese Studie untersucht, wie nachhaltige Gründungsunternehmen Ressourcen in überversorgten nachhaltigen unternehmerischen Ökosystemen (Sustainable Entrepreneurial Ecosystems, SEEs) mobilisieren. Anhand von 76 Interviews und Felddaten aus Kopenhagen und Stockholm - zwei reifen, nachhaltigkeitsorientierten Ökosystemen mit einer hohen Dichte an Entrepreneurial Support Organizations (ESOs) - wird mittels eines induktiven qualitativen Designs nach der Gioia-Methodik analysiert, wie Gründungsunternehmen auf ein Überangebot an Unterstützungsstrukturen reagieren. Entgegen der verbreiteten Annahme, dass eine höhere ESO-Dichte die Gründungsergebnisse verbessert, zeigen die Befunde, dass übermäßige und redundante Unterstützungsinfrastrukturen strukturelle Ineffizienzen und Fehlallokationen von Ressourcen erzeugen. Drei distinkte Ressourcierungsansätze werden identifiziert: Die Hoarders (Hamsterer): Gründerteams, die anfänglich möglichst viele ESO-Angebote akkumulieren, sich dabei aber in einer Abhängigkeit von ESOs verfangen und erkennen müssen, dass institutionelle Eigeninteressen der ESOs ihre unternehmerische Entwicklung behindern. Die Inverted Resources (Invertierte Ressourcen): Ventures, die zunächst als Vorzeigebeispiele im Ökosystem gefördert werden und sich zunehmend von Ressourcenempfängern zu Ressourcen für die ESOs selbst wandeln - mit der Folge von Erschöpfung durch Repräsentationspflichten und stagnierender Unternehmensentwicklung. Die Instrumentally Engaged (Instrumentell Engagierten): Erfahrene Gründerteams, die ESO-Angebote selektiv und zielgerichtet für spezifische Leistungen (z. B. Lebenszyklusanalysen, ESG-Zertifizierungen) nutzen, dabei Ineffizienzen bewusst in Kauf nehmen und ihre Unabhängigkeit wahren. Die Befunde zeigen, dass Ressourcenmobilisierung in reifen SEEs weniger ein Problem der Ressourcenknappheit als vielmehr der Ressourcennavigation unter Überfluss darstellt. Die Studie leistet damit einen Beitrag zur Ökosystem- und Ressourcentheorie, indem sie Überversorgung als paradoxe Bedingung konzeptualisiert: Institutionelle Unterstützungslogiken können sich in extraktive Dynamiken umkehren, die die Autonomie der Ventures und die Effizienz des Ökosystems untergraben. Für die Politik leiten sich daraus Implikationen ab, die eine ergebnisorientierte Evaluation von ESOs sowie eine strategische Kuration statt quantitativer Ausweitung von Unterstützungsstrukturen nahelegen. |
| Keywords: | Entrepreneurial Ecosystem, Resource Abundance, Resources, Multiple Case Study, Qualitative Study |
| JEL: | L26 O31 R11 M13 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifhwps:342482 |
| By: | Dieter F. Kogler; Keungoui Kim |
| Abstract: | Evolutionary Economic Geography (EEG) has become a central perspective within contemporary Economic Geography by explaining how regions, cities, industries, firms, technologies, and institutions evolve over historical time. This chapter introduces EEG’s intellectual foundations in evolutionary economics, Schumpeterian ideas of innovation and creative destruction, and geographical debates on uneven development, path dependence, and regional transformation. It reviews the field’s core conceptual contributions around history, novelty, complexity, emergence, and adaptability, and shows how these ideas have informed empirical research on related variety, regional branching, technological knowledge spaces, networks, resilience, path development, institutions, and policy. The chapter argues that EEG is best understood not as a closed paradigm, but as an evolving and plural research programme. Its future relevance depends on explaining not only how inherited capabilities shape regional trajectories, but also how capabilities, relatedness, and path dependence are produced, activated, selected, contested, and transformed. In doing so, EEG offers a powerful framework for understanding how economic landscapes inherit the past, generate novelty, and confront uncertain spatial, technological, social, and ecological futures. |
| Keywords: | Evolutionary Economic Geography; Regional Diversification; Path Dependence; Knowledge Spaces; Uneven Development |
| JEL: | R11 O33 O18 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2619 |
| By: | Mo, Taejun; Nino, Gustavo; Ridley, William |
| Abstract: | Disruptions to supply chain transportation networks, such as natural disasters, can generate substantial economic costs. This paper combines data on more than 1, 200 road-related landslides with seven years of weekly domestic trade data in Colombia to estimate the effects of transportation network disruptions on domestic trade and welfare. Using a structural gravity framework, we show that landslides reduce trade by increasing transport frictions. However, their welfare effects are not uniform and disruptions reallocate trade across regions, generating both winners and losers. Our results show that regions with stronger export orientation experience welfare gains when landslides occur, while regions more dependent on imports experience welfare losses. These effects reflect both direct bilateral impacts and indirect multilateral adjustments across the domestic trade network. |
| Keywords: | International Relations/Trade |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404669 |
| By: | Lin, Wuyin; , KuoRayMao; Zhao, Xinyin |
| Abstract: | This study examines the illegal marine wildlife trade in Southern China, focusing on sea turtles, giant clams, and corals, to assess enforcement challenges, market dynamics, and consumer behaviors. Adopting a multi-method approach, it incorporates a comprehensive policy and regulatory review spanning 1979–2022, along with market and consumer surveys conducted before and after the COVID-19 pandemic. Standardized training protocols were used for data collection, including consumer questionnaires and stakeholder interviews with a diverse range of actors. Market surveys reveal a 17.06 % decrease in the number of shops selling marine wildlife products but a 32.72 % increase in items available for sale, suggesting a concentration of trade activity. Consumer data indicate that the majority of potential buyers were aged 23–30 (38.93 %) and 31–45 (24.83 %), with 60 % identifying as female. Stakeholder interviews identify distinct supply chain nodes facilitating illegal trade across the region. Despite policy reforms and intensified enforcement at the onset of the COVID-19 pandemic, the study finds that marine species remain vulnerable due to fragmented regulations and inconsistent enforcement across jurisdictions. Sellers continue to exploit short-term, top-down enforcement gaps, maintaining illicit trade flows and meeting persistent consumer demand. The findings underscore the resilience of illegal trade networks and the inadequacy of reactive enforcement strategies. A multi-stakeholder approach—grounded in inter-agency coordination and civic engagement—is essential. Without sustained, community-driven enforcement mechanisms, policy efforts will remain ineffective, exacerbating illegal trade and accelerating biodiversity loss in China and the wider Global South. |
| Date: | 2026–07–25 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:vdkte_v1 |
| By: | Sollis, Kate; Turner, Bethaney; van Eeden, Lily Mahailah (The University of Sydney); Wiset, Kanchana; Rajeevan, Usitha; Marsh, Pauline; Flies, Emily |
| Abstract: | Cultural norms and values influence human-nature connection, shaping then how people use, and interact with natural environments and their nature stewardship actions. This study examines how nature connection varies across migrant communities in Australia and explores the role of cultural factors in shaping human–nature relationships. Using a mixed-methods approach, we analyse data from a national survey of 4, 006 respondents in Australia, exploring the quantitative measures (CN-12 and Inclusion of Nature in Self) and qualitative responses from the respondents born overseas. Migrants reported higher overall nature connection than non-migrants, with particularly high levels among individuals from North African and Middle Eastern, Southern and Central Asian, Southern and Eastern European, and Sub-Saharan African backgrounds. However, differences in connection were not explained by socio-demographic factors, migration history, or access to nature. Qualitative findings reveal distinct conceptualisations of nature, including everyday interactions, human–nature entanglement, recognition of nature’s agency, reciprocity, and experiences of awe. These findings suggest that both cultural values and lived experiences shape how nature is understood and engaged with, highlighting the need for culturally inclusive approaches to environmental policy and nature-based interventions. |
| Date: | 2026–08–05 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:btv58_v1 |