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on Environmental Economics |
| By: | World Bank |
| Abstract: | Environmental degradation is the largest public health challenge of the century and is likely to be exacerbated by climate change. This study undertakes a comprehensive examination of the health implications of environmental hazards in Cambodia, simultaneously addressing extreme temperatures, precipitation patterns, and air pollution. It leverages data from the Demographic and Health Surveys and satellite-derived metrics on temperature, precipitation, and fine particulate matter. The analysis identifies a positive association between temperature and the occurrence of diarrhea and cough among children and a nonlinear relationship between precipitation and these health outcomes. Furthermore, the study demonstrates that pollution significantly impacts cough incidence. To anticipate future trends, climate simulations are employed to forecast the incidence of child diarrhea in Cambodia under different climate and development scenarios. The projections indicate that diarrhea incidence could increase to 19 percent by 2040 without significant adaptation measures that would lessen the adverse impact of weather. For instance, the acceleration in toilet ownership over the last decade reduced diarrhea incidence by at least 1.2 to 1.4 percentage points. Nevertheless, the path ahead requires proactive efforts to improve sanitation and hygiene. The forecasts suggest that, without additional strategies to counter climate change’s adverse effects, only universal toilet ownership would contain the climate-driven increase in diarrhe a incidence expected by 2040. |
| Date: | 2024–03–05 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10715 |
| By: | Timilsina, Govinda R.; Sebsibie, Samuel |
| Abstract: | The Arab Republic of Egypt is the 24th largest carbon dioxide emitter from fossil fuel combustion in the world and the third largest emitter in the Middle East and North Africa region after the Islamic Republic of Iran and Saudi Arabia. Egypt has set a target of reducing one-third of its national greenhouse gas emissions under the Paris Climate Agreement. Pricing instruments, such as the removal of existing fossil fuel subsidies and the introduction of a carbon tax, help the country to achieve its emission reduction targets. However, the economic, social, and environmental impacts of such policies are unknown. This study develops a computable general equilibrium model for Egypt to investigate the economic, distributional, and climate change mitigation effects of fossil fuel subsidy removal and introduction of a carbon tax under alternative schemes to recycle the saved subsidies and carbon tax revenues. Four revenue recycling schemes are considered: public debt reduction, equal or progressive cash transfers to households, and cutting corporate income taxes. The numerical results indicate that removing existing petroleum subsidies and introducing of a carbon tax of LE 600 per ton of carbon dioxide would reduce national carbon dioxide emissions by up to 11 percent without significantly affecting the economy. When the saved subsidies and carbon tax revenues are given back to households through cash transfers, the income of poorer households would rise relative to that of richer households, ensuring that this revenue recycling scheme is progressive. The policies affect commodity prices and sectoral output not only in different magnitudes, but also in different directions across the revenue recycling schemes. |
| Date: | 2024–06–04 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10791 |
| By: | Kraynak, Daniel Christopher; Timilsina, Govinda R.; Alberini, Anna |
| Abstract: | This study investigates the emission reduction effects of a mix of market-based climate policies in Australia, where a dramatic ramp-up of incentives for renewable electricity generation was paired with a short-lived carbon tax. A synthetic control method is employed to estimate the joint effect of the policies. Contrary to the general perception in the existing literature, this study shows that the green electricity and carbon tax policies together caused a 7 percent reduction in emissions per capita from 2009 to 2018. The emission reduction impacts attenuated when the carbon price was repealed, and the renewable targets were softened. The study also finds that the policy mix did not reduce the production of Australian coal and may have expanded its export. The findings suggest that even imperfect climate change mitigation policies can have substantial and persistent effects on emissions as well as unintended consequences. |
| Date: | 2024–06–24 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10812 |
| By: | Bauer, Adam Michael; Mcisaac, Florent John; Hallegatte, Stephane |
| Abstract: | The Paris Agreement established that global warming should be limited to “well below” 2°C and encouraged efforts to limit warming to 1.5°C. Achieving this goal presents a challenge, especially given (i) economic inertia and adjustment costs, which penalize a swift transition away from fossil fuels, and (ii) climate uncertainty that, for example, hinders the ability to predict the amount of emissions that can be released before a given temperature target is exceeded. This paper presents a modeling framework that explores optimal decarbonization investment strategy when both adjustment costs and climate uncertainty are present. The findings show that climate uncertainty impacts investment in three ways: (i) the cost of policy increases, especially when adjustment costs are present; (ii) abatement investment is front-loaded relative to the certainty policy; and (iii) the sectoral allocation of investment changes to favor declining investment pathways rather than bell-shaped paths. The latter effect is especially pronounced in hard-to-abate sectors, such as heavy industry. Each of these effects can be traced back to the carbon price distribution inheriting a “heavy tail” when climate uncertainty is present. The paper highlights how climate uncertainty and adjustment costs combined result in a more aggressive least-cost strategy for decarbonization investment. |
| Date: | 2024–03–28 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10743 |
| By: | Aidah Nanyonjo (Cambridge Resource International Inc.); Mikhail Miklyaev (Department of Economics Queen’s University, Canada, and Cambridge Resource International Inc.) |
| Abstract: | The Electricity Sector Investment Appraisal Manual provides a comprehensive framework for the planning, appraisal, and development of electricity sector projects in Mozambique. It emphasizes the efficient allocation of public resources by ensuring that projects demonstrate economic viability, cost-effectiveness, and alignment with national energy and development goals. The manual provides robust methodologies for conducting Cost-Benefit Analysis (CBA) and Cost-Effectiveness Analysis (CEA), ensuring that electricity projects deliver maximum social and economic benefits. Illustrative case studies, such as the Manica Mini Hydropower Project (MHPP), demonstrate the application of the manual’s methodologies. This project serves as a practical example of addressing rural electrification challenges through renewable energy while aligning with national development strategies and Sustainable Development Goals (SDGs). Given Mozambique’s vulnerability to climate-related risks, the manual places significant emphasis on Climate Change Risk Screening. Projects are categorized into adaptation, resilience, and mitigation initiatives, with tools provided to integrate climate-proofing measures that ensure long-term sustainability. The Electricity Sector Investment Appraisal Manual is an essential resource for ensuring that electricity sector investments in Mozambique are economically viable, socially beneficial, and environmentally sustainable. By providing clear guidelines and practical tools, the manual enhances the quality of project development, improves transparency, and contributes to the country’s sustainable energy development. |
| Keywords: | Cost-benefit analysis (CBA), Cost-effectiveness analysis (CEA), Climate change risk screening, Climate-proofing, Infrastructure sustainability, Mozambique, Sustainable Energy, Electricity sector |
| JEL: | D61 L91 R42 Q48 Q54 |
| URL: | https://d.repec.org/n?u=RePEc:qed:dpaper:4635 |
| By: | Johannes Gessner |
| Keywords: | environmental regulation, global value chains, innovation, fuel economy standards, directed technological change Decarbonizing industries to mitigate climate change requires technological change. Innovation by suppliers can play a crucial role in the technological transition, particularly when suppliers have expertise in zero-emission technologies. In this paper, I study the effect of environmental regulation in a downstream industry on the innovation outcomes of suppliers in the context of the European CO2 emission standard for passenger cars. I construct a novel data set that links administrative data on car manufacturer compliance to supplier patent data using information on automotive supply chains. To identify the causal effect of changes in the stringency of the emission standard, I leverage the heterogeneous exposure of automotive suppliers to changes in the composition of the European car market in the aftermath of the 2015 Volkswagen diesel scandal. Exposure to more stringent environmental regulation increases innovation for zero-emission vehicle technologies among existing suppliers. In addition, the likelihood that car manufacturers form new supply chain links to firms with expertise in technologies to reduce vehicle emissions increases in response to more stringent environmental regulation. These results suggest that environmental regulation induces economically significant technology spillovers to the regulated firms. |
| JEL: | O30 Q55 Q58 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_654 |
| By: | Vesa Pursiainen (University of St. Gallen; Swiss Finance Institute); Hanwen Sun (University of Bath, School of Management); Yue Xiang (Durham University) |
| Abstract: | Higher exposure to competition – measured by product fluidity – is associated with higher carbon emission intensity. This result is robust to using instrumental variables to obtain exogenous variation in fluidity. The positive relationship between competition and carbon emissions is stronger for firms in areas less concerned about climate change. It is also stronger in areas with weaker social norms. Our results suggest that shorttermism is not the primary driver, as the emissions-competition link is at least as strong for firms with longer-term-oriented shareholders. Our findings suggest that policies promoting competition may be at odds with climate change abatement. |
| Keywords: | carbon emissions, carbon intensity, competition |
| JEL: | D40 G30 M14 Q50 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2516 |
| By: | Veronica G. Maigida (Cambridge Resource International Inc.); Mikhail Miklyaev (Department of Economics Queen’s University, Canada, and Cambridge Resource International Inc.) |
| Abstract: | The Water Sector Investment Appraisal Manual provides a comprehensive framework for the planning, appraisal, and development of water sector projects in Mozambique. It emphasizes the efficient utilization of limited public resources by ensuring that projects demonstrate economic viability, cost-effectiveness, and alignment with national development goals. The manual also provides tools for conducting cost-benefit analysis (CBA) and cost-effectiveness analysis (CEA), ensuring that projects deliver maximum social and economic benefits. The manual provides robust methodologies for Financial and Economic Analysis. These analyses ensure that projects are not only financially sustainable but also contribute to the overall welfare of the population. The manual also highlights the importance of Stakeholder and Distributional Analysis, ensuring that the impacts of projects on various stakeholder groups are identified and quantified and that benefits are equitably distributed while adverse effects are mitigated. The manual includes illustrative case studies, such as the Maputo Water Rehabilitation and Expansion Project, to demonstrate the application of its methodologies. This project serves as a practical example of how to address challenges like aging infrastructure, water losses, and inadequate service coverage, while aligning with national development strategies and Sustainable Development Goals (SDGs). Given Mozambique's vulnerability to climate-related events, the manual places significant emphasis on Climate Change Risk Screening. Projects are categorized into adaptation, resilience, and mitigation, with tools provided for climate-proofing infrastructure to ensure long-term sustainability. The Water Sector Investment Appraisal Manual is an essential resource for ensuring that water sector investments in Mozambique are economically viable, socially beneficial, and environmentally sustainable. By providing clear guidelines and practical tools, the manual aims to enhance the quality of project development, improve transparency, and contribute to the country's sustainable management of water resources. |
| Keywords: | Cost-benefit analysis (CBA), Cost-effectiveness analysis (CEA), Climate change risk screening, Climate-proofing, Infrastructure sustainability, Mozambique, Water resource management, Water sector |
| JEL: | D61 Q25 Q56 |
| URL: | https://d.repec.org/n?u=RePEc:qed:dpaper:4633 |
| By: | Foroogh Nazari Chamaki (Department of Economics Queen’s University, Canada, and Cambridge Resource International Inc.); Mikhail Miklyaev (Department of Economics Queen’s University, Canada, and Cambridge Resource International Inc.) |
| Abstract: | The Electricity Sector Investment Appraisal Manual provides a comprehensive framework for the planning, appraisal, and development of electricity sector projects in Mozambique. It emphasizes the efficient allocation of public resources by ensuring that projects demonstrate economic viability, cost-effectiveness, and alignment with national energy and development goals. The manual provides robust methodologies for conducting Cost-Benefit Analysis (CBA) and Cost-Effectiveness Analysis (CEA), ensuring that electricity projects deliver maximum social and economic benefits. Illustrative case studies, such as the Manica Mini Hydropower Project (MHPP), demonstrate the application of the manual’s methodologies. This project serves as a practical example of addressing rural electrification challenges through renewable energy while aligning with national development strategies and Sustainable Development Goals (SDGs). Given Mozambique’s vulnerability to climate-related risks, the manual places significant emphasis on Climate Change Risk Screening. Projects are categorized into adaptation, resilience, and mitigation initiatives, with tools provided to integrate climate-proofing measures that ensure long-term sustainability. The Electricity Sector Investment Appraisal Manual is an essential resource for ensuring that electricity sector investments in Mozambique are economically viable, socially beneficial, and environmentally sustainable. By providing clear guidelines and practical tools, the manual enhances the quality of project development, improves transparency, and contributes to the country’s sustainable energy development. |
| Keywords: | Cost-benefit analysis (CBA), Cost-effectiveness analysis (CEA), Climate change risk screening, Climate-proofing, Infrastructure sustainability, Mozambique, Sustainable Energy, Electricity sector |
| JEL: | D61 Q42 Q48 Q54 |
| URL: | https://d.repec.org/n?u=RePEc:qed:dpaper:4634 |
| By: | Carbone, Sante; Giuzio, Margherita; Kapadia, Sujit; Krämer, Johannes Sebastian; Nyholm, Ken; Vozian, Katia |
| Abstract: | This paper explores how the low-carbon transition affects firms' credit ratings and market-implied distance-to-default. We develop a novel dataset covering firms' greenhouse gas emissions alongside climate disclosure and forward-looking emission reduction targets. Panel regression analysis indicates that high emissions are associated with higher credit risk, but that this relationship can be mitigated by disclosing emissions and committing to reduce emissions. After the Paris agreement, firms most exposed to transition risk saw their ratings deteriorate relative to their peers, with the effect larger for European than US firms, probably reflecting differential climate policy expectations. A dynamic difference-in-differences approach also shows that European firms who make a climate commitment subsequently experience an improvement in their credit rating relative to comparable firms who do not set a target. These results have policy implications for corporate disclosure and pricing of transition risk. |
| Keywords: | climate change, transition risk, climate disclosure, net zero targets, green finance, credit risk |
| JEL: | C58 E58 G11 G32 Q51 Q56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:312432 |
| By: | Luetkemeier, Robert; Awad, Ahmad |
| Abstract: | Freshwater resources are vital for environmental health and human societies. Understanding their current status and future trends is critical for developing sustainable solutions. This study examines water quantity and quality on global and regional scales, with a specific focus on Germany. To assess water quantity, data from the Inter-Sectoral Impact Model Intercomparison Project (ISIMIP) was analyzed, providing insights into past, present, and future conditions. Water availability data and simulations of water withdrawals, incorporating socio-economic drivers, were used to estimate current and future water stress levels. For water quality, indicators from the Sustainable Development Goals Monitoring program and data from the Water Framework Directive were analyzed. The findings highlight uncertainties in assessing water stress and predicting future changes due to limited observational data and socio-economic variability. Models suggest declines in renewable water resources in arid and temperate regions, with possible increases in high-altitude and monsoon areas. While global water stress is expected to rise, reduced withdrawals in Germany may lead to lower stress levels. However, climate change-induced events like droughts and floods remain significant concerns. Water quality challenges show regional disparities. Globally, only 56% of water bodies meet good quality standards, with developed regions outperforming developing areas such as Sub-Saharan Africa and Central Asia in wastewater treatment. In Germany, despite advances in pollution control, water bodies face pressures from chemical pollutants, nutrient loads, and legacy contaminants like mercury. Only 9% of surface water bodies meet good ecological and chemical standards, and groundwater is compromised by nitrate and pesticide contamination, posing risks to drinking water and ecosystems. In conclusion, integrated and adaptive water management strategies are urgently needed to address the impacts of climate change, socio-economic developments, and pollution. Enhancing data quality and availability, especially in underrepresented regions, is essential for reliable projections and informed policy-making. Collaboration among stakeholders, governments, and technological innovations is critical for achieving sustainable water resource management for future generations. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:efisdi:312419 |
| By: | Shaiara Husain (Business School, University of Western Australia); Kazi Sohag (Graduate School of Economics and Management, Ural Federal University, Russia); Yanrui Wu (Business School, The University of Western Australia) |
| Abstract: | Pro-environmental technologies, environmental taxes and environmental protection expenditure are three important policy tools for patronizing renewable energy production (REP) in OECD countries. With this background, we evaluate the efficacy of environmental policies in promoting renewable energy production by applying the CS-ARDL method and panel data of 24 OECD economies incorporating the role of proven reserve oil during 1990-2022. The empirical analysis of this study demonstrates that the environmental policy stringency, encompassing market and non-market approaches, is positively affiliated with the growth in REP. Our findings also affirm the proposition that proven oil reserves are antagonistic to the growth of renewable energy production considering the intergenerational energy security aspect. Positive shock in oil price augments the renewable energy production validating the substitution effect between renewable energy and non-renewable energy. Our findings are robust when alternative measures of policy stringency, considering both supply-side (cost-push) and demand-side (demand-pull) socio-technical incentives are used. The empirical findings reinforce existing market-based mitigation policies to promote renewable energy production adhering to the energy security agenda of sustainable development goals. |
| Keywords: | Renewable Energy, Environmental Policy Stringency, Panel Data Analysis, OECD Countries |
| JEL: | C23 Q21 Q28 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:uwa:wpaper:24-02 |
| By: | Stacciarini, João Henrique Santana (Federal University of Goiás); Gonçalves, Ricardo Junior de Assis Fernandes |
| Abstract: | The energy transition has driven the rapid expansion of associated technologies, such as solar panels, wind turbines, and electric vehicles. Although promoted as clean and renewable, these technologies, due to their intrinsic characteristics, rely heavily on minerals for their manufacturing - many of which have recently been classified as critical. This article examines the impact of the significant increase in demand for these minerals. Using the International Renewable Energy Agency’s definition of critical minerals - which includes cobalt, nickel, copper, lithium, and rare earth elements - we conducted extensive data collection, systematization, and analysis on a global scale to identify the main producing countries and the contexts surrounding their extraction. The results reinforce a historical pattern in which most critical minerals for the energy transition originate from Global South nations, predominantly in Africa, Asia, and Latin America. In countries where environmental, social, and economic regulations are often more flexible, the profitability of large international corporations is favored. Furthermore, our findings reveal that, in many cases, the extraction of these minerals is linked to severe social, environmental, and economic impacts, ranging from extreme pollution and worker contamination by toxic metals to the financing of militias associated with authoritarian military regimes. These issues, often overlooked in dominant energy transition narratives, deserve greater attention and reflection from both the scientific community and society at large. |
| Date: | 2025–02–16 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:n8m57_v1 |
| By: | Li, Yantong; Zhai, Wei; Yang, Zheng; Tang, Junqing; Li, Haiyun; Huang, Huanchun |
| Abstract: | The escalating impacts of global climate change, marked by a surge in extreme weather events, underscore the imperative need to address the effects of this ongoing challenge. This study emphasizes the critical need to prioritize the reduction of social and environmental inequalities to enhance urban resilience. The adoption of nature-based solutions is considered a paramount approach, leveraging ecosystem characteristics to alleviate and adapt to climate change and natural hazards. In the absence of a systematic classification, the inefficiencies in hazard response and societal inequalities are exposed, particularly concerning environmental justice. Hence, this study extensively investigates urban-scale nature-based solutions and conceptually explores environmental justice. This paper traces the reflection and perspective of environmental justice in NbS responses to different types of environmental hazards. It provides a new perspective on the implementation and management of nature-based solutions in urban environments, emphasizing the integration of various hazard types and a focus on environmental justice to bolster urban resilience against climate change and environmental hazards. |
| Date: | 2024–03–15 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:uqfsx_v1 |
| By: | Norris Keiller, Agnes; Van Reenen, John |
| Abstract: | Climate change is making natural disasters more frequent, yet little is known about the capacity of firms to withstand such disasters and adapt to their increased frequency. We examine this issue using the latest wave of the World Management Survey (WMS) that includes new questions on firms' climate change perceptions and adaptation behaviour. Combining this with geocoded data on natural disasters and previous WMS waves, we create a panel spanning 8, 000 firms across 33 countries and three decades that shows exposure to disasters decreases growth inputs, outputs and firm survival. More importantly, firms with structured management practices are more resilient, suffering much smaller drops in jobs and capital. To understand the mechanisms behind this resilience, we use the new WMS climate questions to show better managed firms have more accurate perceptions of climate-related risks to their businesses. Such firms are also more likely to have implemented measures to adapt to climate change both overall and in response to their perceived climate risk. Other aspects of firm organisation, such as decentralisation, also help protect against disasters, but their adaptation behaviour is not well-targeted. These results show that improving management is one way to help protect economies from climate change shocks. |
| Keywords: | climate; natural disasters; management practices; firm performance |
| JEL: | Q54 M11 L25 H10 |
| Date: | 2024–06–13 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126782 |
| By: | Leonelli, Giulia Claudia |
| Abstract: | The exercise of environmental ‘leverage’ via trade-related measures and trade in environmental goods offers opportunities to tackle the climate crisis and advance transnational decarbonization. Inward-looking, adversarial, and short-term national security-centred approaches, however, are disrupting the trade and climate change mitigation linkage. This article employs the race for critical raw materials and US and EU strategies to promote the net-zero transition at the domestic level as case studies to illustrate the environmental pitfalls of the ‘securitization’ of the trade and climate change mitigation nexus. The article demonstrates that the pursuit of strategic dominance in key net-zero sectors, attempts to exclude systemic rivals and reshore supply chains, opportunistic forms of friendshoring and loose agreement on regulatory means jeopardize recourse to environmental ‘leverage’ and undermine decarbonization at both national and transnational levels. This analysis casts a light on the inherent tension between national security and climate change mitigation. Taking stock of these findings, the article advocates a radically different approach to the governance of the trade and climate change mitigation nexus. |
| Keywords: | decarbonisation; national security; critical raw materials; net-zero transition; Inflation Reduction Act; industrial policy; reshoring; friendshoring |
| JEL: | L81 |
| Date: | 2025–01–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:120553 |
| By: | Schmitz, Tom; Colantone, Italo; Ottaviano, Gianmarco I. P. |
| Abstract: | This paper shows how to combine microeconometric evidence on the effects of environmental policy with a macroeconomic model, accounting for general equilibrium spillovers that have mostly been ignored in the literature. To this end, we study the effects of a recent US air pollution policy. We use regression evidence on the policy's impact across industries and local labor markets to calibrate a quantitative spatial model allowing for general equilibrium spillovers. Our model implies that the policy lowered emissions by 11.1%, but destroyed approximately 250'000 jobs. Ignoring spillovers overestimates job losses in polluting industries, but underestimates job losses in clean industries. |
| Keywords: | environmental policy; employment; trade; clean air act |
| JEL: | E24 Q50 Q53 |
| Date: | 2024–07–09 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126761 |
| By: | Cotofan, Maria; Kuralbayeva, Karlygash; Matakos, Konstantinos |
| Abstract: | This study examines how regional temperature variations across OECD countries influence political behavior and support for offset policies. Our analysis reveals that exposure to higher temperatures correlates with political moderation, reduced backing for extreme and populist parties, heightened climate concerns, and increased support for environmentally conscious agendas. These effects are primarily driven by older individuals, who exhibit increased concerns about climate change and the economic costs of climate policies following temperature spikes. Moreover, they express support for policies aimed at mitigating these economic impacts. Conversely, younger individuals show less apprehension about the economic consequences of climate policies and demonstrate readiness to bear them, including through higher energy bills. These findings emphasize the necessity of accounting for age-related perspectives when formulating effective climate policies for the future. |
| Keywords: | preference formation; environmental policies; policy support; voting |
| JEL: | D83 H23 H31 Q58 |
| Date: | 2024–04–15 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126818 |
| By: | Danopoulos, Evangelos; Shah, Aarushi; Schneider, Claudia R.; Aston, John |
| Abstract: | Scientific studies often put forward policy recommendations (PRs) to bridge the gap between science and policy making. Climate change is one of the areas that PRs can be useful and have major impact, but only if they are based on scientific findings and are communicated trustworthily. The objective of this systematic review is to appraise the quality of PRs in the areas of green energy and transportation. Four databases (Web of Science, Scopus, GeoRef and GreenFile) were searched from 2019. Studies with an environmental focus in the areas of green energy (wind power and hydrogen energy) and transportation that included PRs for tackling climate change or reaching net zero targets were included. The novel Evidence Communication Rules for Policy (ECR-P) critical appraisal tool was used to assess the individual study quality, specifically targeting PRs. The Collaboration for Environmental Evidence Critical Appraisal Tool (CEECAT) was also used. Findings were synthesized narratively based on ECR-P. Twenty-three studies were included, most focusing on wind power, followed by hydrogen energy and transportation. The majority of studies used econometric and empirical modelling. According to CEECAT, study quality was found to be medium to poor. ECR-P was piloted and validated, the rating results indicated poor quality of PRs across all studies. The areas addressing the papers inherent bias towards advocacy against providing information and to disclose uncertainties were found to present most concerns. Communication quality was markedly better regarding study findings and conclusion than PRs. Researchers must use the same scientific rigour and reporting standards in PRs as in any other section of their studies. A reporting guideline for scientific-based PRs could be of great assistance. More research in other disciplines is needed to validate our results and provide further data. |
| Date: | 2024–07–08 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:k4ujg_v1 |
| By: | Richard Arhinful (Cyprus International University, North Cyprus); David Shobowale (Cambridge Resource International Inc.); Mikhail Miklyaev (Department of Economics Queen’s University, Canada, and Cambridge Resource International Inc.) |
| Abstract: | This manual provides a structured framework for appraising investment projects in Mozambique’s agricultural sector. The manual covers key stages of project appraisal, including Project Profile, Prefeasibility Study, and Feasibility Study, incorporating tools such as Cost-Benefit Analysis (CBA), Stakeholder Analysis, Risk Assessment, and Climate Change Screening to enhance decision-making and optimize resource allocation. A key illustrative example in this manual focuses on a cashew nut and pineapple intercropping project in the Mabote District, which aims to transition 200 subsistence farmers into commercial agriculture. The project, supported by the Ministry of Agriculture and Rural Development, seeks to enhance farmer incomes, improve access to financial and market resources, and contribute to Mozambique’s agricultural exports. By providing farmers with the necessary inputs, training, and infrastructure, the initiative promotes sustainable agricultural practices while addressing issues such as rural poverty, food security, and rural-urban migration. Through a structured Integrated Investment Appraisal (IIA) approach, the project ensures net positive benefits, improves livelihoods, and contributes to national development goals. Incorporating illustrative examples and case studies facilitates practical application, enabling policymakers to make informed investment decisions that promote long-term agricultural sustainability and economic growth. Additionally, the manual highlights climate resilience strategies to mitigate risks posed by droughts, floods, and other extreme weather events. |
| Keywords: | Agricultural Sector, Cost-Benefit Analysis (CBA), Climate Change Screening, Mozambique, Sustainable Agriculture |
| JEL: | O1 O22 Q1 Q15 Q18 Q56 |
| URL: | https://d.repec.org/n?u=RePEc:qed:dpaper:4632 |
| By: | Aghion, Philippe; Barrage, Lint; Hemous, David; Liu, Ernest |
| Abstract: | We analyze a model of green technological transition along a supply chain. In each layer, a good is produced with a dirty technology, or, if the required "electrification" innovation has occurred, with a clean technology which uses the immediate upstream good. We show that the economy is characterized by a single equilibrium but multiple steady-states, and that even in the presence of Pigouvian environmental taxation, a targeted industrial policy is generally necessary to implement the social optimum. We also show that: (i) small, targeted, industrial policy may bring large welfare gains; (ii) a government which is constrained to focus its subsidies to electrification on one particular sector, should primarily target downstream sectors; (iii) when extending the model so as to allow for supply chains also for the dirty technology, overinvesting in electrification in the wrong upstream branch may derail the overall transition towards electrification downstream. Finally, we illustrate our model with a calibration to decarbonization of global iron and steel production via hydrogen direct reduction, and show that, absent industrial policy, the economy can get stuck in a "wrong" steady-state with CO2 emissions vastly above the social optimum even with a carbon price in place. |
| Keywords: | technological change; green growth; supply chain; industrial strategy |
| JEL: | Q50 |
| Date: | 2024–07–10 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126750 |
| By: | Nicholas Bloom; Philip Bunn; Paul Mizen; Prachi Srivastava; Gregory Thwaites; Ivan Yotzov |
| Abstract: | We analyse the importance of climate-related investment using a large economy-wide survey of UK firms. Over half of firms expect climate change to have a positive impact on their investment in the medium term, with around a quarter expecting a large impact of over 10%. Around two-thirds of these investments are expected to be in addition to normal capital expenditure, with some firms investing less elsewhere. These investments will be driven by larger firms as well as those in more energy-intensive sectors. Climate investments are expected mainly in switching to green energy sources and improving energy efficiency, and firms expect to finance these mainly using internal cash reserves. Overall, although firms are expecting to invest more resources in adapting to climate change, under reasonable assumptions, these investments are still not sufficient to meet the estimated targets implied by the UK Net Zero Pathway. |
| Keywords: | UK Economy, investment, climate change, Green Growth |
| Date: | 2025–02–20 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2077 |
| By: | Orecchia, Carlo; Cala, Valerio Ferdinando; de Cristofaroa, Fabiana; Dudu, Hasan |
| Abstract: | One of Italy’s key objectives is to reform and modernize the tax system to increase tax efficiency and improve environmental sustainability and regional economic outcomes, in line with the European Union strategy. Within the framework of the European Green Deal, Italy is committed to contributing to the goal of becoming the first climate neutral region by 2050 (the “Fit for 55” package). As an intermediate step toward the 2050 target, the European Union must reduce greenhouse gas emissions by at least 55 percent by 2030 compared to 1990 levels. Carbon pricing is at the core of the proposal, but its full implementation is also expected to have regressive effects, harming poorer households, and adverse economic impacts, reducing firms’ competitiveness. This paper evaluates the effects of the carbon pricing proposal of the “Fit for 55” package on welfare, sectoral production, and income distribution. To tackle the adverse social and economic effects, it compares different revenue recycling schemes shifting the tax burden from major direct and indirect taxes to carbon emissions. It finds that well-targeted revenue recycling policies might significantly reduce the negative effects. The analysis adopts the Italian Regional and Environmental Computable General Equilibrium of the Department of Finance model, which is a new (recursive) dynamic computable general equilibrium model developed by the Italian Ministry of the Economy with technical assistance from the World Bank. It has a detailed energy specification that allows for capital/labor/energy substitution in production, intra-fuel energy substitution across all demand agents, a multi-output and multi-input production structure, an extended energy system with 11 different types of technologies, multiple households to address distributional impacts, and detailed information on the Italian tax system. |
| Date: | 2023–10–26 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10592 |
| By: | Gilles Grolleau (ESSCA School of Management Lyon); Luc Meunier (ESSCA School of Management, Aix-en-Provence); Naoufel Mzoughi (ECODEVELOPPEMENT - Ecodéveloppement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Inspired from Kahneman's seminal contributions to the theory of framing, we test the impact of noun-versus verb-based framings (e.g., do not be a polluter versus do not pollute) on individuals' behavioral intentions towards two pro-environmental messages aiming at reducing waste. Using a non-incentivized laboratory experimental survey, we find a significant effect of messages framed as verb-based actions (i.e., do not pollute, do not waste) in driving individuals to sign a petition in favor of garbage recycling and accept to receive tips about food waste. Additionally, we also identify a significant negative influence of reactance, hampering pro-environmental behavior. We discuss our exploratory results keeping in mind the humility that characterizes Kahneman's scholarly legacy. |
| Keywords: | behavioral intentions, pollution, framing, moral identity, moral self-image, recycling, waste |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04926850 |
| By: | Julia Mink |
| Abstract: | I estimate the causal impact of short-term exposure to nitrogen dioxide (NO2), ground-level ozone (O3), and particulate matter (PM) on healthcare costs in France. I construct a large-scale dataset by linking administrative healthcare expenditures for a nationally representative sample with high-resolution air pollution and meteorological data. To address endogeneity concerns related to economic activity, I implement an instrumental variable (IV) strategy that exploits weekly variations in altitude atmospheric conditions—such as thermal inversions, wind speed, and the height of the planetary boundary layer—that predict local pollutant concentrations yet are unlikely to affect healthcare utilization except through pollution. My findings reveal that air pollution, even at concentrations below current European air quality standards, imposes annual healthcare costs that exceed earlier estimates by a factor of ten. Heterogeneity analyses show that pollution affects multiple medical specialties, including cardiology, pulmonology, and ophthalmology, while placebo specialties, such as trauma surgery, exhibit no significant effects. Contrary to prior work focusing on children and the elderly, I find that adverse health outcomes extend across all age groups, demonstrating broader population vulnerability. Moreover, marginal effects prove larger at lower pollution levels, implying a concave doseresponse function that underscores the potential for substantial cost savings from even modest pollution abatement in relatively clean areas. These results suggest that earlier cost-benefit analyses likely undervalue the societal gains from stricter environmental regulation. |
| Keywords: | Air pollution, healthcare cost, instrumental variables |
| JEL: | Q51 Q53 I12 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_650 |
| By: | Kassa, Woubet; Woldemichael, Andinet |
| Abstract: | This study documents the impacts of climate change on firm-level productivity by matching a globally comparable and standardized survey of nonagricultural firms covering 154 countries with climate data. The findings show that the overall effects of rising temperatures on productivity are negative but nonlinear and uneven across climate zones. Firms in hotter zones experience steeper losses with increases in temperature. A 1 degree Celsius increase from the typical wet-bulb temperature levels in the hottest climate zone (25.7 degrees Celsius and above) results in a productivity decline of about 20.8 percent compared to firms in the coldest climate zone. The effects vary not only based on the temperature zones within which firms are located, but also on other factors such as firm size, industry classification, income group, and region. Large firms, firms in manufacturing, and those in low-income countries and hotter climate zones tend to experience the biggest productivity losses. The uneven impacts, with firms in already hotter regions and low-income countries experiencing steeper losses in productivity, suggest that climate change is reinforcing global income inequality. If the trends in global warming are not reversed over the coming decades, there is a heightened risk of widening inequality across countries. The implications are especially dire for the poorest countries in the hottest regions. |
| Date: | 2024–05–06 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10762 |
| By: | Goicoechea, Ana; Lang, Megan Elizabeth |
| Abstract: | Low- and middle-income countries (LMICs) face a disproportionate burden from climate change, potentially threatening the operations and profitability of firms. Simultaneously, firms in LMICs may contribute to climate change through the emissions associated with production. This paper synthesizes the empirical evidence on the links between climate change and firms in LMICs. It identifies three major gaps: poor geographic coverage, little discussion of how market failures interact with climate change in ways that constrain firm decisions, and an overall greater focus on policies for mitigation than adaptation. |
| Date: | 2023–12–13 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10644 |
| By: | Hoy, Christopher Alexander; Kim, Yeon Soo; Nguyen, Minh Cong; Sosa, Mariano Ernesto; Tiwari, Sailesh |
| Abstract: | This study examines which factors influence support for reducing fossil fuel subsidies and what types of information shift people’s views through surveying 37, 000 respondents across 12 middle-income countries that provided over US$750 billion in explicit and implicit subsidies for fossil fuels in 2022. Respondents were randomly allocated to receive information about the relative cost of fossil fuel subsidies, how they are regressive, or worsen climate change and air pollution. They were then asked about their support for reforms with and without accompanying policies. These treatments, particularly about environmental damage, increased support for reforms in countries that primarily subsidize gasoline and among respondents who perceive themselves to be middle class. Around 30 percent of respondents supported reducing fossil fuel subsidies in isolation, but this share increased to over 95 percent if accompanying policies were implemented. These findings help inform governments about how to build public support for phasing out fossil fuel subsidies. |
| Date: | 2023–11–22 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10615 |
| By: | Robert Hill; Leigh Neethling; Morné Oosthuizen (Development Policy Research Unit, University of Cape Town) |
| Abstract: | In an attempt to mitigate their effect on climate change, a number of economies have already, or are in the process of shifting away from a reliance on coal-based power. This just energy transition means that many existing jobs in the coal industry will be lost in favour of so-called “green jobs”, which aim to contribute positively and sustainably to the environment. South Africa is one such economy that is embarking on the process of a just transition. But, given that the coal industry is predominantly represented by young people in the province of Mpumalanga, it is not clear how or if this vulnerable group will transition into newly created green jobs. Making use of occupational relatedness metrics, this research investigates the feasibility of green job opportunities to capture displaced youth in Mpumalanga, depending on their employment history. Results of this desktop study – which forms part of a larger cross-country study funded and led by the University of Cambridge – suggest that green jobs are relatively different to the existing experience and task competences of young people, and thus some form of reskilling programme is likely to be necessary for young people to take full advantage of the employment opportunities offered by green jobs. |
| Keywords: | Just transition; green jobs; youth employment; occupational relatedness; Mpumalanga |
| JEL: | E24 J24 J40 J62 O13 Q01 Q20 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ctw:wpaper:202406 |
| By: | Kroen, Annette; Barnes, Emma; Hartley, Chris; Dodson, Jago; Butt, Andrew; Pawson, Hal |
| Abstract: | What this research is about? This research looks at how housing policy and planning can better prepare for natural disasters, and enable recovery from them. It examines institutional arrangements, planning coordination and disaster management responses. Why this research is important? Australia faces many natural hazards like bushfires, floods, storms and cyclones. Climate change is making these events more frequent and intense. Because housing is heavily impacted during disasters, it's crucial that housing policy works closely with disaster risk reduction and response. |
| Date: | 2025–02–18 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:t6j2w_v1 |
| By: | Gao, Shuo; zu Ermgassen, Sophus; Bull, Joseph W.; Milner-Gulland, E.J. |
| Abstract: | Countries worldwide have collectively agreed to halt and reverse nature loss. However, a poorly understood and systemic challenge to this vision is Shifting Baseline Syndrome (SBS), wherein people misperceive the extent to which nature has been changed, with erosion of the baseline of what “good” nature looks like over time, either between generations or for an individual. This can diminish societal expectations for nature recovery. Here, we propose a framework that incorporates cognitive mechanisms underlying environmental misperceptions, broadening the conceptual framing of SBS to include other mechanisms behind misperceptions of environmental change, and including not just nature loss but also recovery. We demonstrate the utility of the framework using a mixed-methods study in Qunli New Town, Harbin, China, consisting of in-depth interviews (N=42) and a population-based quantitative survey (N=1018). Our results show that more accurate perception is associated with gaining information about an area from personal experience rather than indirect information sources. Cognitive errors, including errors of “omission” and “commission”, were related to the processes of sensation, attention, learning, thinking, and memory. Minimising SBS is important to ensure that people affected by environmental change are able to perceive it accurately, so that they can better respond to it; this is essential to pursuing resilient, sustainable, and inclusive societies under the Sustainable Development Goals and the Global Biodiversity Framework. |
| Date: | 2024–06–07 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:k7rbz_v1 |
| By: | Chad Shirley; William Swanson |
| Abstract: | This working paper provides an estimate of a probability distribution of changes in gross domestic product (GDP) in the year 2100 resulting from changes in temperature. To estimate that distribution, we perform a meta-analysis of the literature on the effects of climate change on GDP and combine those effects with forecast global temperature distributions for the year 2100. We fit Gaussian distributions to the underlying data and numerically estimate the joint distribution of GDP and temperature. Using that distribution, we project that, on average, future temperature |
| JEL: | O44 Q54 |
| Date: | 2025–02–27 |
| URL: | https://d.repec.org/n?u=RePEc:cbo:wpaper:61186 |
| By: | Rexer, Jonah Matthew; Sharma, Siddharth |
| Abstract: | Adapting to climate change is an increasingly urgent policy priority in lower- and middle-income countries. This systematic review summarizes the current state of the literature on adaptation to climate change, and conducts a quantitative meta-analysis of the effectiveness of climate adaptation. The meta-analysis reveals that observed adaptations offset 46 percent of climate losses on average, with firms using more effective adaptation strategies than households and farmers. The review identifies several key lessons. First, purely private adaptations to climate shocks tend to be less effective than those from public infrastructure and services, although neither by itself is generally sufficient to fully offset the effects of climate change. Second, some adaptations may reduce climate losses in the present, but in the long-run, households, firms, and farmers might be better-served by reducing their climate exposure. Third, the literature tends to focus on adaptation by households and farmers, neglecting firms. Finally, productivity losses from climate shocks may be offset if capital and labor can adjust across sectors and locations, but constraints on these reallocations have not been sufficiently studied. |
| Date: | 2024–03–21 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10729 |
| By: | Schulz, Nicolai; Proestou, Maria; Feindt, Peter |
| Abstract: | The sustainability of social-ecological systems has become a major concern in environmental policy. To address the sustainability challenges of the fossil-based economy, more than 50 countries around the world have promulgated policies to promote the transformation towards a bio-based economy. The success of this transformation, in turn, depends on the resilience of the bio-based production systems on which the bioeconomy rests. However, the continued delivery of the desired functions of these systems is challenged by environmental, social, economic, and political short- and long-term stresses. Despite the importance of such resilience challenges for a sustainable bioeconomy transformation, the extent to which they are addressed in bioeconomy policies remains unclear and under-researched. To fill this gap, we investigate the salience of resilience challenges in bioeconomy policies using the Resilience Policy Design (RPD) framework. Specifically, we conduct a systematic content analysis of bioeconomy policy documents in 50 countries to identify and discuss the specific challenges and instruments directly aimed at addressing these challenges. Overall, our analysis contributes to a better understanding of the role and origins of resilience concerns in global bioeconomy policymaking. |
| Date: | 2023–11–16 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:rp2by_v1 |
| By: | Eickmeier, Sandra; Quast, Josefine; Schüler, Yves |
| Abstract: | We examine how the occurrence of natural disasters impact the US economy and financial markets using monthly data since 2000. Our analysis reveals large sustained adverse effects of disasters on overall economic activity, with significant implications across various sectors including labor, production, consumption, investment, and housing. Our findings suggest that these effects stem from heightened financial risk, increased uncertainty, declining confidence and heightened awareness of climate change, leading to negative repercussions on the economy. Additionally, consumer prices increase temporarily, likely due to rising energy and food costs. We find a decline in the monetary policy rate and an increase in government spending, which potentially mitigate the adverse macroeconomic effects. However, we also observe a prolonged rise in public debt relative to GDP and a decrease in r-star following the disasters. With climate change persisting, this could constrain the flexibility of monetary and fiscal policies in the future. Overall, our findings emphasize the urgency of combating climate change and, in tandem, enhancing economic and financial resilience. |
| Keywords: | Climate change, natural disasters, transmission, local projections |
| JEL: | C22 E31 E32 E44 E52 E62 Q54 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:311840 |
| By: | Ashish Ashok Uikey (Symbiosis International (Deemed University)); Ruturaj Baber (Christ University, Bengaluru, India); Zericho R Marak (Symbiosis International (Deemed University)) |
| Abstract: | The present study leverages the Stimulus-Organism-Behavior-Consequence (SOBC) framework to investigate how green transparency influences green brand loyalty and repurchase intention among electric vehicle consumers. Specifically, it examines the mediating roles of brand image and brand credibility in the relationships among green transparency, green brand loyalty, and repurchase intention. Data collected from 386 electric vehicle users were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM). Results reveal that green transparency positively impacts brand image and brand credibility, which subsequently enhances green brand loyalty and repurchase intention. Mediation analysis further highlights brand image and brand credibility as critical mechanisms linking green transparency to green brand loyalty. This study extends the SOBC framework to green marketing, offering theoretical and practical insights into fostering sustainable consumer behavior. By emphasizing the role of green transparency in building credible and compelling brand narratives, the findings guide marketers in cultivating consumer trust and loyalty while supporting policymakers in formulating transparency regulations for a sustainable marketplace. |
| Keywords: | Brand credibility, Brand image, Electric vehicles, Green brand loyalty, Green marketing, Green transparency, Repurchase intention |
| Date: | 2025–01–31 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04925852 |
| By: | Baquie, Sandra; Behrer, Arnold Patrick; Du, Xinming; Fuchs Tarlovsky, Alan; Nozaki, Natsuko Kiso |
| Abstract: | Air pollution profoundly impacts welfare, causing more deaths globally than malnutrition, AIDS, tuberculosis, and malaria combined. In the Georgian capital, Tbilisi, air pollution levels exceed international standards and surpass levels in other cities in the region. The average monthly PM2.5 concentration in Tbilisi is 20 Micrograms per cubic meter, four times higher than the World Health Organization’s annual recommended limit. This paper uses multiple data sources — administrative data, satellite imagery, private real estate transactions, and traffic data — to estimate the impact of air pollution on the health and productivity of people in Tbilisi. It estimates that a 1 percent increase in PM2.5 levels corresponds to a 0.24 percent increase in respiratory hospitalization rates. A 1 percent increase in PM2.5 is also associated with a 0.2 percent decrease in rental prices. All the estimates are lower bounds of the total impact of air pollution as they only account for short-term consequences. The study shows that traffic and industrial activity are significant drivers of air pollution in Tbilisi. The paper also estimates the positive co-benefits of potential carbon pricing policies from air pollution reduction. Adopting a carbon tax of $25 per ton would reduce hospitalizations by 0.44 percent per district by 2036, while increasing rental prices by 0.38 percent. |
| Date: | 2023–12–12 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10643 |
| By: | Preety Srivastava (RMIT University); Trong-Anh Trinh (Centre for Health Economics, Monash Business School, Monash University); Xiaohui Zhang (University of Exeter) |
| Abstract: | This paper contributes to the growing body of research examining the impact of temperature on educational outcomes. Utilising national-level administrative data on nearly one million Australian students, it investigates whether temperature fluctuations, and prolonged heatwaves influence test performance. The analysis reveals that both heat and cold affect student test scores, with some evidence of the effects intensifying during heatwaves. Australia’s vast geographical diversity and climate variability provides a unique opportunity to explore spatial heterogeneity in these effects. Findings suggest that in regions with hot weather conditions, the most thermally comfortable temperature is likely to be higher, whereas students in the coldest parts of the country appear to be less sensitive to cold weather conditions, consistent with the adaptation hypothesis. In contrast, in regions with moderate and temperate weather conditions, student scores are affected by both hot and cold weather. |
| Keywords: | climate change , temperature, academic performance, NAPLAN, heatwave |
| JEL: | C3 I2 Q5 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:mhe:chemon:2025-07 |
| By: | Lall, Somik V.; Rajan, Raghuram Govind; Schoder, Christian |
| Abstract: | This paper proposes an objective way of estimating and allocating “differentiated” responsibilities for carbon emissions across countries. These responsibilities translate into specific obligations and incentives for future emission reductions and support for adaptation, mitigation, and development. The proposals in this paper should be seen as a starting point for an informed and productive debate. Under the Global Carbon Reduction Incentive, every country that emits more than the per capita global average pays into a global incentive fund. This annual payment will be calculated based on the “excess” emissions per capita, the country’s population, and a dollar amount called the Global Carbon Incentive. Countries below the global per capita average would receive a payout commensurate with their “under-emission.” The United States and China are the two biggest emitters and, assuming a Global Carbon Incentive of $10, they jointly would contribute more than $70 billion to the fund, from which nations such as India, Nigeria, Pakistan, Bangladesh, and Indonesia would be the major recipients. An important adjustment to the Global Carbon Reduction Incentive is to focus on consumption rather than production—a country should not avoid responsibility for the carbon it consumes by outsourcing production to another country. The proposal considers that countries that have used more of the collective carbon budget have benefited from the associated development and should pay for it. The proposal also considers methane emissions as well as crediting countries for their efforts toward preventing deforestation. |
| Date: | 2024–04–25 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10759 |
| By: | Priftis, Romanos; Schoenle, Raphael |
| Abstract: | We construct a New-Keynesian E-DSGE model with energy disaggregation and financial intermediaries to show how energy-related fiscal and macroprudential policies interact in affecting the euro area macroeconomy and carbon emissions. When a shock to the price of fossil resources propagates through the energy and banking sector, it leads to a surge in inflation while lowering output and carbon emissions, absent policy interventions. By contrast, imposing energy production subsidies reduces both CPI and core inflation and increases aggregate output, while energy consumption subsidies only lower CPI inflation and reduce aggregate output. Carbon subsidies instead produce an intermediate effect. Given that both energy subsidies raise carbon emissions and delay the “green transition, ” accompanying them with parallel macroprudential policy that taxes dirty energy assets in bank portfolios promotes “green” investment while enabling energy subsidies to effectively mitigate the adverse effects of supply-type shocks, witnessed in recent years in the EA. JEL Classification: E52, E62, H23, Q43, Q58 |
| Keywords: | DSGE model, energy sector, energy subsidies, financial frictions, macroprudential policy |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253032 |
| By: | Dasol Kim; Luke M. Olson; Toan Phan |
| Abstract: | In a recent OFR working paper, the authors study how banks adjust their lending behavior when a new risk emerges, such as climate change. |
| Date: | 2024–06–21 |
| URL: | https://d.repec.org/n?u=RePEc:ofr:ofrblg:24-06 |
| By: | Robert D. Metcalfe; Sefi Roth |
| Abstract: | Exposure to ambient air pollution has been shown to be detrimental to human health and productivity, and has motivated many policies to reduce such pollution. However, given that humans spend 90% of their time indoors, it is important to understand the degree of exposure to Indoor Air Pollution (IAP), and, if high, ways to reduce it. We design and implement a field experiment in London that monitors households’ IAP and then randomly reveals their IAP in real-time. At baseline, we find that IAP is worse than ambient air pollution when residents are at home and that for 38% of the time, IAP is above World Health Organization standards. Additionally, we observe a large household income-IAP gradient, larger than the income-ambient pollution gradient, highlighting large income disparities in IAP exposure. During our field experiment, we find that the randomized revelation reduces IAP by 17% (1.9 μg/m³) overall and 34% (5 μg/m³) during occupancy time. We show that the mechanism is households using more natural ventilation as a result of the feedback (i.e., opening up doors and windows). Finally, in terms of welfare, we find that: (i) households have a willingness to pay of £4.8 ($6) for every 1 μg/m ³ reduction in indoor PM2.5; (ii) households have a higher willingness to pay for mitigation than for full information; (iii) households have a price elasticity of IAP monitor demand around -0.75; and (iv) a £1 subsidy for an IAP monitor or an air purifier has an infinite marginal value of public funds, i.e., a Pareto improvement. |
| JEL: | Q5 Q53 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33510 |
| By: | Mehdi Mikou (ESE - Ecologie Systématique et Evolution - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Améline Vallet (ESE - Ecologie Systématique et Evolution - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Céline Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); David Makowski (MIA Paris-Saclay - Mathématiques et Informatique Appliquées - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Income maps have been extensively used for identifying populations vulnerable to global changes. The frequency and intensity of extreme events are likely to increase in coming years as a result of climate change. In this context, several studies have hypothesized that the economic and social impact of extreme events depend on income. However, to rigorously test this hypothesis, fine‐scale spatial income data is needed, compatible with the analysis of extreme climatic events. To produce reliable high‐resolution income data, we have developed an innovative machine learning framework, that we applied to produce a European 1 km‐gridded data set of per capita disposable income for 2015. This data set was generated by downscaling income data available for more than 120, 000 administrative units. Our learning framework showed high accuracy levels, and performed better or equally than other existing approaches used in the literature for downscaling income. It also yielded better results for the estimation of spatial inequality within administrative units. Using SHAP values, we explored the contribution of the model predictors to income predictions and found that, in addition to geographic predictors, distance to public transport or nighttime light intensity were key drivers of income predictions. More broadly, this data set offers an opportunity to explore the relationships between economic inequality and environmental degradation in health, adaptation or urban planning sectors. It can also facilitate the development of future income maps that align with the Shared Socioeconomic Pathways, and ultimately enable the assessment of future climate risks. |
| Keywords: | machine learning, random forest, income, Europe, spatial modeling, economic vulnerability |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04906700 |
| By: | Antweiler, Werner |
| Abstract: | When faced with making economic trade-offs between lower upfront purchase costs and lower operating costs, many consumers experience "capital bias", a phenomenon that is tantamount to discounting future costs excessively. Consumers may therefore end up with investments that are sub-optimal on a life-cycle cost basis. Capital bias can affect the purchase of many goods that could lower greenhouse gas emissions such as electric vehicles, heat pumps, or more efficient appliances. The benecial effect of carbon pricing can be thwarted by capital bias when technology usage is price-inelastic and benecial environmental gains occur mostly at the extensive margin (replacements) rather than the intensive margin (usage). Policies other than carbon pricing may be needed to induce consumers to shift to product choices that are superior on a lifecycle cost that includes external costs from greenhouse gas emissions (or other negative externalities). This paper provides a novel theoretical micro-economic analysis of the problem coupled with an investigation about competing policy interventions. Conventional carbon pricing can be ineffective in the presence of consumer myopia, while subsidy (or penalty) schemes that influence the purchase decision can be effective especially when they are conditioned on a usage threshold and/or offer incentives proportional to usage. There is scope for alternative policy designs that can overcome consumer myopia as a hurdle to adopting energy-ecient durable goods. The theoretical analysis is rounded out with empirical simulations focusing on electric vehicle adoption. |
| Abstract: | Wenn es darum geht, einen wirtschaftlichen Kompromiss zwischen niedrigeren Anschaffungskosten und niedrigeren Betriebskosten zu finden, unterliegen viele Verbraucher einem "capital bias", ein Phänomen, das einer übermäßigen Diskontierung künftiger Kosten gleichkommt. Dies kann dazu führen, dass die Verbraucher Investitionen tätigen, die im Hinblick auf die Lebenszykluskosten suboptimal sind. Kapitalverzerrungen können sich auf den Kauf vieler Güter auswirken, die die Treibhausgasemissionen senken könnten, wie Elektrofahrzeuge, Wärmepumpen oder effizientere Geräte. Die positive Wirkung der Kohlenstoffbepreisung kann durch Kapitalverzerrungen vereitelt werden, wenn der Technologieeinsatz preisunelastisch ist und die positiven Umweltauswirkungen am extensiven Rand (Ersatz) zu verorten sind, nicht am intensiven Rand (Nutzung). Andere politische Maßnahmen als die Preisgestaltung können nötig sein, um die Verbraucher dazu zu bewegen, sich für Produkte zu entscheiden, die in Bezug auf die Lebenszykluskosten günstiger sind, die die externen Kosten von Treibhausgasemissionen (oder andere negative externe Effekte) einschließen. Dieses Papier liefert eine neuartige theoretische mikroökonomische Analyse des Problems in Verbindung mit einer Untersuchung über konkurrierende politische Interventionen. Konventionelle Bepreisung von Kohlenstoff kann unwirksam sein, wenn die Verbraucher kurzsichtig handeln. Subventions- (oder Straf-)Regelungen, die die Kaufentscheidung beeinflussen, können vor allem wirksam sein, wenn sie an einen Schwellenwert für den Verbrauch gebunden sind und/oder Anreize bieten, die proportional zum Verbrauch sind. Es gibt Spielraum für alternative politische Konzepte, mit denen die Kurzsichtigkeit der Verbraucher als Hindernis für die Einführung von energieeffizienten langlebigen Güter überwunden werden kann. Die theoretische Analyse wird durch empirische Simulationen abgerundet, die sich auf die Einführung von Elektrofahrzeugen fokussiert. |
| Keywords: | Carbon pricing, internalities, capital bias, environmental policy |
| JEL: | Q58 Q48 D11 D83 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:312427 |
| By: | Arthur Fliegelman |
| Abstract: | Review of the rising premium costs and reduced availability of U.S. property insurance and its growing impact on real estate owners, lenders and governments. |
| Keywords: | property & casualty industry, climate, climate related, property insurance, homeowners insurance, national flood insurance program |
| Date: | 2023–12–14 |
| URL: | https://d.repec.org/n?u=RePEc:ofr:ofrblg:23-18 |
| By: | Giuliano, Fernando Mauro; Navia Simon, Daniel; Ruberl, Heather Jane |
| Abstract: | Uruguay is an economy that is vulnerable to precipitation patterns, as evidenced during the country’s historic 2022/23 drought. Yet, and despite its rich macroeconomic and climate data environment, the country does not have a consistent macroeconomic model to address the aggregate impact of climate shocks, let alone the expected additional impact from climate change. This paper intends to fill this gap by integrating climate shocks into the World Bank’s Macro-Fiscal Model, its workhorse structural macroeconomic projection model. Building on existing country studies on the sectoral effects of droughts and floods, the analysis finds that the volatility of a simulated Uruguayan economy only subject to historical climate shocks reaches 22 percent of the historical volatility of gross domestic product. Moreover, as climate shocks are only one of many shocks that can simultaneously affect an economy, incorporating exogenous macroeconomic shocks into historical climate shocks exacerbates volatility and increases potential losses. Gross domestic product can fall by 2.3 percent under a combined negative climate and macroeconomic shock of the type witnessed once every six years on average, and 4.1 percent under a once-in-40-years combined negative shock. Climate change compounds these effects going forward, worsening the magnitude of the downside risks from droughts by between 18 and 30 percent, although estimates incorporating climate change are subject to large uncertainty. The order of magnitude of these effects calls for a more systematic consideration of climate shocks in macroeconomic projections and fiscal risk assessments for Uruguay. |
| Date: | 2024–03–27 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10740 |
| By: | Gascoigne, Jon; Baquie, Sandra; Vinha, Katja Pauliina; Skoufias, Emmanuel; Calcutt, Evie Isabel Neall; Kshirsagar, Varun Sridhar; Meenan, Conor; Hill, Ruth |
| Abstract: | This paper quantifies the impact of drought on household consumption for five main agroecological zones in Africa, developing vulnerability (or damage) functions of the relationship between rainfall deficits and poverty. Damage functions are a key element in models that quantify the risk of extreme weather and the impacts of climate change. Although these functions are commonly estimated for storm or flood damages to buildings, they are less often available for income losses from droughts. The paper takes a regional approach to the analysis, developing standardized hazard definitions and methods for matching hazard and household data, allowing survey data from close to 100, 000 households to be used in the analysis. The damage functions are used to quantify the impact of historical weather conditions on poverty for eight countries, highlighting the risk to poverty outcomes that weather variability causes. National poverty rates are 1–12 percent higher, depending on the country, under the worst weather conditions relative to the best conditions observed in the past 13 years. This amounts to an increase in the total poverty gap that ranges from US$4 million to US$2.4 billion (2011 purchasing power parity). |
| Date: | 2024–01–29 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10683 |
| By: | Feriga, Moustafa Amgad Moustafa Ahmed Moustafa; Lozano Gracia, Nancy; Serneels, Pieter Maria |
| Abstract: | What is the impact of climate change on labor Reviewing the evidence, this paper finds five areas of potential impact. Climate change may have an immediate effect on labor demand, labor supply and time allocation, on-the-job productivity, and income and vulnerability among the self-employed. In the medium term, climate change may lead to a reallocation of labor across economic activities and across space. Impact estimates typically rely on fixed effect estimation. These estimates require care when interpreted as they typically reflect the short-term direct impact of past events and abstract from potential adaptation. The paper discusses emerging work trying to address this, analyzing the responses by firms, farms, households, and workers. Together, the existing evidence points toward six potential areas of government response. Potential labor policies include green jobs, green skills, labor-oriented adaptation, flexible work regulation, labor market integration, and social protection. The paper concludes by setting out avenues for future research in this field. |
| Date: | 2024–01–24 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10682 |
| By: | Jaccard, Ivan; Kockerols, Thore; Schüler, Yves |
| Abstract: | Does it pay to invest in green companies? In countries where a market for carbon is functioning, such as those within the European Union, our findings suggest that it should be beneficial. Using a sample of green and brown European firms, we initially demonstrate that green companies have outperformed brown ones in recent times. Subsequently, we develop a production economy model in which brown firms acquire permits to emit carbon into the atmosphere. We find that the presence of a well-functioning carbon market could account for the green equity premium observed in our data. Incorporating a preference for green financial assets is also unlikely to overturn our results. JEL Classification: E32, Q51, G18 |
| Keywords: | asset pricing, composite habits, equity premium, general equilibrium, monopolistic competition |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253030 |
| By: | World Bank |
| Abstract: | The environment has long been the foundation of human flourishing, but its continued degradation is threatening to reverse recent development gains, especially in human health. This paper analyzes the possible complementarity between natural and human capital by linking high-resolution deforestation data with health outcomes for 0.7 million children across 46 countries. Forest loss is often a consequence of economic activities that may confer market and other benefits. At the same time, it can adversely affect the provision of forest ecosystem services and reduce the associated socioeconomic and environmental benefits for rural communities. The net effect is thus ambiguous. The paper focuses on the hydrological services provided by forests and exploits quasi-random variation in deforestation upstream to assess the impacts on waterborne disease outcomes for rural households downstream. The results not only indicate increases in diarrheal disease incidence among children under 5 years old, but also offer new evidence of early-life exposure to deforestation on childhood stunting, a well-known indicator of later-life productivity. A case study for Peru shows similar results for diarrheal disease, but a weaker effect of forest loss on stunting. The paper concludes that maintaining natural capital has the potential to generate meaningful improvements in long-run human capital. |
| Date: | 2023–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10617 |
| By: | Letta, Marco; Montalbano, Pierluigi; Paolantonio, Adriana |
| Abstract: | The complex relationship between climate shocks, migration, and adaptation hampers a rigorous understanding of the heterogeneous mobility outcomes of farm households exposed to climate risk. To unpack this heterogeneity, the analysis combines longitudinal multi-topic household survey data from Nigeria with a causal machine learning approach, tailored to a conceptual framework bridging economic migration theory and the poverty traps literature. The results show that pre-shock asset levels, in situ adaptive capacity, and cumulative shock exposure drive not just the magnitude but also the sign of the impact of agriculture-relevant weather anomalies on the mobility outcomes of farming households. While local adaptation acts as a substitute for migration, the roles played by wealth constraints and repeated shock exposure suggest the presence of climate-induced immobility traps. |
| Date: | 2024–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10724 |
| By: | Bøler, Esther Ann; Holtsmark, Katinka; Ulltveit-Moe, Karen Helene |
| Abstract: | We analyze how a major negative shock to the producers of fossil fuels may lead to a shift from dirty to clean R&D along the supply chain. First, we develop a theoretical framework of directed technical change, showing that adjustment costs in R&D activity can lead fossil energy sector suppliers to shift their R&D activity towards clean innovation more than other firms, as a consequence of a negative oil price shock. Second, we investigate the impact of a major drop in the oil price in 2014 on clean R&D. Relying on rich firm level trade data, we propose a novel method of identifying firms' exposure to the price shock. We find that more exposed firms increased their clean R&D investments more than less exposed firms. Our findings contribute to the understanding of the drivers of clean technological change, which is vital to assess the effectiveness of different climate policy measures, including carbon pricing. |
| Keywords: | clean innovation; supply chains; carbon pricing |
| JEL: | F18 O31 Q55 Q58 |
| Date: | 2024–12–13 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126766 |
| By: | Eickmeier, Sandra; Petersen, Luba |
| Abstract: | As central banks, including the European Central Bank (ECB), adopt climaterelated responsibilities, gauging public support becomes essential. Drawing on a June 2023 Bundesbank household survey, we find that 69% of households report increased trust in the ECB due to its climate actions, valuing the institution's broader scope and concern. While 17% and 20% of households express concerns over risks to price stability or independence, 23% believe climate engagement reinforces the ECB's core objectives. An information intervention indicates minimal impact on household inflation expectations, suggesting a disconnect between institutional trust and inflation outlooks. An internal survey reveals that central bankers accurately gauge trust impacts but tend to overestimate effects on inflation expectations. Overall, our findings indicate broad public support for the ECB's climate initiatives. |
| Keywords: | Central bank trust, central bank credibility, inflation expectations, climate change, green policies, survey, central bank communication, uncertainty |
| JEL: | E7 E59 C93 D84 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:311842 |
| By: | Hai-Anh H. Dang (World Bank, GLO, IZA, Indiana University, London School of Economics and Political Science, University of Economics Ho Chi Minh City); Stephane Hallegatte (World Bank); Minh Cong Nguyen (World Bank); Trong-Anh Trinh (Centre for Health Economics, Monash Business School, Monash University) |
| Abstract: | Despite a vast body of literature documenting the harmful effects of climate change on various socio-economic outcomes, little cross-country analysis exists on the global impacts of higher temperatures on poverty and inequality. Analyzing a new global panel dataset of subnational poverty in 137 countries covering the past decade, we find that a one-degree Celsius increase in temperature leads to a 17.1% increase in poverty, employing the US$2.15 daily poverty threshold, and a 1.1% increase in the Gini inequality index. We also find negative effects of colder temperature on poverty and inequality. Yet, while poorer countries—particularly those in Sub-Saharan Africa—are more affected by climate change, household adaptation could have mitigated some adverse effects in the long run. The findings provide relevant and timely inputs for the global fight against climate change as well as the current policy debate on cost-sharing between richer and poorer countries. |
| Keywords: | Climate change, temperature, poverty, inequality, subnational data |
| JEL: | Q54 I32 O1 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:mhe:chemon:2025-08 |
| By: | Colmer, Jonathan; Qin, Suvy; Voorheis, John; Walker, Reed |
| Abstract: | This paper uses administrative tax records linked to Census demographic data and high-resolution measures of fine small particulate (PM2.5) exposure to study the evolution of the Black-White pollution exposure gap over the past 40 years. In doing so, we focus on the various ways in which income may have contributed to these changes using a statistical decomposition. We decompose the overall change in the Black-White PM2.5 exposure gap into (1) components that stem from rank-preserving compression in the overall pollution distribution and (2) changes that stem from a reordering of Black and White households within the pollution distribution. We find a significant narrowing of the Black-White PM2.5 exposure gap over this time period that is overwhelmingly driven by rank-preserving changes rather than positional changes. However, the relative positions of Black and White households at the upper end of the pollution distribution have meaningfully shifted in the most recent years. |
| Keywords: | air pollution; income; environmental inequality; decomposition |
| JEL: | H00 H40 Q50 |
| Date: | 2024–01–18 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126758 |
| By: | Colmer, Jonathan; Qin, Suvy; Voorheis, John; Walker, Reed |
| Abstract: | This paper explores the relationships between air pollution, income, wealth, and race by combining administrative data from U.S. tax returns between 1979-2016, various measures of air pollution, and sociodemographic information from linked survey and administrative data. In the first year of our data, the relationship between income and ambient pollution levels nationally is approximately zero for both non-Hispanic White and Black individuals. However, at every single percentile of the national income distribution, Black individuals are exposed to, on average, higher levels of pollution than White individuals. By 2016, the relationship between income and air pollution had steepened, primarily for Black individuals, driven by changes in where rich and poor Black individuals live. We utilize quasi-random shocks to income to ex-amine the causal effect of changes in income and wealth on pollution exposure over a five-year horizon, finding that these income-pollution elasticities map closely to the values implied by our descriptive patterns. We calculate that Black-White differences in income can explain ~10 percent of the observed gap in air pollution levels in 2016. |
| Keywords: | income; inequality; air pollution |
| JEL: | H0 H4 Q5 R0 |
| Date: | 2024–11–12 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126791 |
| By: | Doan, Miki Khanh; Hill, Ruth; Hallegatte, Stephane; Corral Rodas, Paul Andres; Brunckhorst, Ben James; Nguyen, Minh; Freije-Rodriguez, Samuel; Naikal, Esther G. |
| Abstract: | Based on global datasets, 4.5 billion people were exposed to extreme weather events (flood, drought, cyclone, or heatwave) in 2019, an increase from 4 billion in 2010. Among exposed people in 2019, 2.3 billion people lived with less than $6.85 per day and about 400 million lived in extreme poverty (on less than $2.15 per day). This paper presents a methodology to estimate the number of people who are at high risk from extreme weather events, defined as the people who are exposed to these events and highly vulnerable to them. Vulnerability is proxied by a set of indicators measuring (1) the physical propensity to experience severe losses (proxied by the lack of access to basic infrastructure services, here water and electricity) and (2) the inability to cope with and recover from losses (proxied by low income, not having education, not having access to financial services and not having access to social protection). Estimates from 75 countries for which data on all indicators are available suggest that, in 2019, 42 percent of the total population (and 70 percent of people exposed) are at high risk from extreme weather shocks, if one indicator is enough to be considered as highly vulnerable. If high vulnerability is defined based on being vulnerable on two dimensions or more, then 12 percent of the total population (and 20 percent of people exposed) are at high risk from extreme weather shocks. The trend between 2010 and 2019 can be explored in a subset of countries covering 60 percent of the world population. In these countries, even though the population exposed to extreme weather events has been increasing, the number of people at high risk has declined. The exception is Sub-Saharan Africa where the number of people at high risk has increased between 2010 and 2019. |
| Date: | 2023–11–29 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10619 |
| By: | Brownbridge, Martin; Canagarajah, Roy S. |
| Abstract: | Small Island Developing States (SIDS) are a group of 39 United Nations (UN) member states and 18 dependent territories mostly located in the Caribbean and Oceania. They are among the most vulnerable countries to losses and damages from climate change globally, and they are especially exposed to tropical cyclones and sea level rise. This paper evaluates the climate change-related vulnerabilities of the SIDS. It uses data from the International Disaster Database (EM-DAT), to examine the magnitude of damages incurred over the last three decades and conducts an event study analysis to examine the fiscal impacts of large tropical cyclone disasters in the last decade. SIDS need to invest substantial resources over the long term for climate change adaption. The paper reviews the limited studies that have been conducted so far, on the potential long-term costs of effective adaptation investment programs. Using the most recent Debt Sustainability Analyses of SIDS, the paper discusses the challenges countries with high public debt levels face and whether a general program of debt relief might be a feasible way to fund the adaptation investment requirements of SIDS. Finally, the paper discusses the type of assistance that SIDS need to strengthen their resilience to climate change in a cost-effective manner, and the role development partners can play in supporting climate-resilient development. |
| Date: | 2024–06–03 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10787 |
| By: | Boeing, Geoff (Northeastern University); Pilgram, Clemens; Lu, Yougeng |
| Abstract: | This study estimates the relationships between street network characteristics and transport-sector CO2 emissions across every urban area in the world and investigates whether they are the same across development levels and urban design paradigms. The prior literature has estimated relationships between street network design and transport emissions---including greenhouse gases implicated in climate change---primarily through case studies focusing on certain world regions or relatively small samples of cities, complicating generalizability and applicability for evidence-informed practice. Our worldwide study finds that straighter, more-connected, and less-overbuilt street networks are associated with lower transport emissions, all else equal. Importantly, these relationships vary across development levels and design paradigms---yet most prior literature reports findings from urban areas that are outliers by global standards. Planners need a better empirical base for evidence-informed practice in under-studied regions, particularly the rapidly urbanizing Global South. |
| Date: | 2024–01–02 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:r32vj_v1 |
| By: | Grover, Arti Goswami; Kahn, Matthew Edwin |
| Abstract: | How firms in the developing world adapt to changes in weather extremes will play a key role in determining their nation’s economic growth. This survey of the recent microeconomics adaptation literature suggests that although firm competitiveness is negatively affected by weather events, firms may bounce back better under certain conditions. The adaptation and resilience of firms to climate change depend on their capabilities, the available information on risks, and the depth of insurance and financial markets. As real-time weather forecasting improves, firms are better informed about these risks and this affects their decisions regarding their location, production, and configuration of supply chains. A firm’s resilience also depends on the quality of public investment in infrastructure and the social safety net. Understanding that market frictions can slow the pace of adaptation, the paper concludes with some insights on the options available to policy makers. |
| Date: | 2024–06–10 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10797 |
| By: | Pielke, Roger Jr |
| Abstract: | For more than two decades, the U.S. National Oceanic and Atmospheric Administration (NOAA) has popularized a count of weather-related disasters in the United States that it estimates have exceeded one billion dollars (inflation adjusted) in each calendar year starting in 1980. The dataset is widely cited and applied in research, assessment and invoked to justify policy in federal agencies, Congress and by the U.S. President. This paper performs an evaluation of the dataset under criteria of procedure and substance defined under NOAA’s Information Quality and Scientific Integrity policies. The evaluation finds that the “billion dollar disaster” dataset falls comprehensively short of meeting these criteria. Thus, public claims promoted by NOAA associated with the dataset and its significance are flawed and misleading. Specifically, NOAA incorrectly claims that for some types of extreme weather, the dataset demonstrates detection and attribution of changes on climate timescales. Similarly flawed are NOAA’s claims that increasing annual counts of billion dollar disasters are in part a consequence of human caused climate change. NOAA’s claims to have achieved detection and attribution are not supported by any scientific analysis that it has performed. Given the importance and influence of the dataset in science and policy, NOAA should act quickly to address this scientific integrity shortfall. |
| Date: | 2024–01–07 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:3yf7b_v1 |
| By: | Triyana, Margaret Maggie; Turk, Andy Jiang; Hu, Yurui; Naoaj, Md Shah |
| Abstract: | There is a rapidly growing literature on the link between climate change and poverty. This study reviews the existing literature on whether the poor are more exposed to climate shocks and whether they are more adversely affected. About two-thirds of the studies in our analyzed sample find that the poor are more exposed to climate shocks than is the rest of the population and four-fifths of the studies find that the poor are more adversely affected by climate shocks than is the rest of the population. Income and human capital losses tend to be concentrated among the poor. These findings highlight the potential long-term risk of a climate-change induced poverty trap and the need for targeted interventions to protect the poor from the adverse effects of climate shocks. |
| Date: | 2024–03–29 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10742 |
| By: | He He; Kim, Chaeyoung |
| Abstract: | Correctly pricing private vehicles and their use is paramount to building sustainable, safe, and equitable transportation systems. However, determining the “right” price – the combination of taxes on vehicle purchase, ownership, and use – is a complex problem. Although a rich literature exists on the subject, it is built on evidence from developed countries. This paper synthesizes the lessons learned from the literature, theoretical and empirical, on vehicle and fuel taxation for managing private vehicle demand. In particular, the paper examines the efficiency and distributional impacts of purchase, ownership, and use taxes. The literature is unequivocal that taxing use dominates taxing purchase or ownership on efficiency grounds. Nonetheless, the latter instruments can still have important roles to play, for example, addressing specific market failures, for equity and political acceptability considerations, or for ease of enforcement. The paper also discusses the practical challenges of saliency, gaming, and evasion of taxes; how the effectiveness of taxes as policy instruments also depends on the availability of alternatives to driving; and what the emergence of electric vehicles means for optimal taxation. Importantly, the paper considers how these lessons, mostly derived from high-income countries with mature automobile markets, apply to developing contexts. In addition to the policy discussion, the paper conducts two exercises compiling empirical evidence. It compiles and compares estimates of the externality costs associated with private vehicle use, including congestion, local air pollution, greenhouse gas emissions, injuries, and noise. Similarly, it compiles and compares demand response elasticities to vehicle purchase, ownership, and use taxes. Both serve as useful references for researchers, development practitioners, and policy makers. |
| Date: | 2023–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10647 |
| By: | Winkler-Seales, Hernan Jorge; Di Maro, Vincenzo; Montoya Munoz, Kelly Yelitza; Olivieri, Sergio Daniel; Vazquez, Emmanuel Jose |
| Abstract: | A growing body of literature investigates the labor market implications of scaling up “green” policies. Since most of this literature is focused on developed economies, little is known about the labor market consequences for developing countries. This paper contributes to filling this gap by providing new stylized facts on the prevalence of green occupations and sectors across countries at varying levels of economic development. Green occupations are defined using the Occupational Information Network, and green sectors are those with relatively lower greenhouse gas emissions per worker. The paper offers an initial assessment of how the implementation of green policies—aimed at expanding green sectors and strengthening the relative demand for green skills—may affect workers in developing economies. It finds that the share of green jobs is strongly correlated with the level of gross domestic product per capita across countries. When controlling for unobserved heterogeneity, a 1 percent increase in gross domestic product per capita is associated with 0.4 and 4.1 percentage point increases in the shares of new and emerging, and enhanced skills green jobs, respectively. The paper then focuses on Latin America and finds that only 9 percent of workers have a green job with respect to both occupation and sector. The findings show that within countries, workers with low levels of income and education are more likely to be employed in non-green sectors and occupations, and to lack the skills for a greener economy. This evidence suggests that complementary policies are needed to mitigate the potential role of green policies in widening income inequality between and within countries. |
| Date: | 2024–06–06 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10794 |
| By: | Chase, Sarah K.; Sachdeva, Sonya; Wood, Spencer A (University of Washington); Lawler, Joshua J |
| Abstract: | 1. Addressing social and ecological values is a central aim of democratic environmental management and policymaking, especially during deliberative and participatory processes. Agencies responsible for managing public lands would benefit from a deepened understanding of how various publics’ value those lands. 2. Federal land management agencies receive millions of written comments from the public on proposed management actions annually, providing a unique source of insights into how the public assigns value to public lands. To date, little attention has been directed towards methods for analyzing the public’s comments to understand their expressed values, in part because the volume of comments often makes manual analysis unworkable. 3. This study introduces and applies a novel computational approach to inferring values in written text by using natural language processing and a method that combines a lexicon with semantic embedding models. We developed embedding models for four types of values that are expressed in public comments. We then fit models to 409, 241 public comments on actions proposed by the United States Forest Service from 2011 to 2020 and regulated by the Natural Environmental Policy Act. 4. The embedding model generally outperformed the lexicon word-count, particularly for value types with shorter lexicons, and, like human evaluators, the embedding models performed better for more evident values and were less reliable for more abstract or latent values. 5. By applying the resulting model, we furthered our understanding of how the public values National Forest lands in the United States. We observed that aesthetic and moral values were expressed more often in comments for projects that received more public interest, as gauged by the number of comments a project received and in comments for projects addressing recreational management. |
| Date: | 2025–02–21 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:f4pgy_v1 |
| By: | Mark A. Andor; Lorenz Goette; Michael K. Price; Anna Schulze-Tilling; Lukas Tomberg |
| Abstract: | We compare the behavior and welfare effects of two popular behavioral interventions for resource conservation. The first intervention is social comparison reports (SC), primarily providing consumers with information motivating behavioral change. The second intervention is real-time feedback (RTF), primarily providing consumers with information facilitating behavioral change. In a field experiment with around 1, 000 participants, SC reduces water and energy use per shower by 9.4%, RTF by 28.8%, and the combination of both interventions by 35.0%. Participants’ willingness to pay for RTF and the combination is higher than for SC. We find that all interventions enhance welfare. |
| Keywords: | Resource Conservation, Welfare, Real-time Feedback, Social Comparison, Behavioral Intervention, Field Experiment |
| JEL: | D12 C93 Q25 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_651 |
| By: | Karayalcin, Cem; Onder, Harun |
| Abstract: | Developing countries are facing mounting pressures to incorporate environmental concerns into their policy reform agendas. This paper finds that common environmental policies, such as levying taxes to reduce the excessive exploitation of natural assets, can be self-defeating when (i) institutions are weak and (ii) the general equilibrium effects of such policy actions are overlooked. This seemingly paradoxical result is driven by fundamental mechanisms in structural transformation frameworks, without the need for strong assumptions. It also carries a clear policy implication: environmental policies should be considered within a country’s broader development context, rather than in isolation. |
| Date: | 2024–03–08 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10719 |
| By: | Jacob Moscona; Karthik A. Sastry |
| Abstract: | An influential explanation for global productivity differences is that frontier technologies are adapted to the high-income countries that develop them and "inappropriate" elsewhere. We study this hypothesis in agriculture using data on novel plant varieties, patents, output, and the global range of crop pests and pathogens. Innovation focuses on the environmental conditions of technology leaders, and ecological mismatch with these markets reduces technology transfer and production. Combined with a model, our estimates imply that inappropriate technology explains 15-20% of cross-country agricultural productivity differences and re-shapes the potential consequences of innovation policy, the rise of new technology leaders, and environmental change. |
| JEL: | O3 O33 O4 O44 Q16 Q56 Q57 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33500 |
| By: | von Briel, Dorine; Kemperman, Astrid; Dolnicar, Sara (The University of Queensland) |
| Abstract: | United Nations Sustainable Development Goal 12 calls for nations to ensure sustainable consumption and production. The tourism industry can contribute to this aim by reducing the provision of non-essential service components with negative environmental consequences, such as single-use plastic items. This study (1) identifies unsustainable non-essential accommodation services, (2) determines tourist preferences for each service compared to each other at aggregate and market segment levels, and (3) assesses the potential of two alternative theory-based approaches (risk reduction through autonomy and gain- and loss- framing of the price) to entice tourists to forfeit environmentally unsustainable non-essential service components. Results from a discrete choice experiment suggest that tourists see little value in most non-essential unsustainable service components and that gain-framing the price represents the most promising strategy to motivate tourists to voluntarily opt-out of such service components. Theoretical and managerial implications of these findings are discussed. |
| Date: | 2025–02–20 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:a9wbe_v3 |
| By: | Granata, Julia; Posadas, Josefina |
| Abstract: | The coexistence of several definitions of green jobs and measurement instruments gives room for mismatches between those concepts and their application to research questions. This paper first presents an organizing framework for the existing definitions, measurement instruments, and policy frameworks. It then delves into discussing two appropriate approaches for identifying green occupations to guide skills development policy: the task-content and the skills approaches. In the process, it introduces a novel methodology with a dictionary of green terms for identifying green tasks and occupations. This methodology, utilizing text analysis, demonstrates superior performance compared to the well-known O*NET Green Economic Project classification, particularly for developing countries. Lastly, the paper applies this methodology to Indonesia, a middle-income country, and utilizes various data sources to showcase the utility of the dictionary and text analysis exercise. |
| Date: | 2024–04–17 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10753 |
| By: | Dang, Hai-Anh H.; Hallegatte, Stephane; Trinh, Trong-Anh |
| Abstract: | This paper offers an updated and comprehensive review of recent studies on the impact of climate change, particularly global warming, on poverty and inequality, paying special attention to data sources as well as empirical methods. While studies consistently find negative impacts of higher temperature on poverty across different geographical regions, with higher vulnerability especially in poorer Sub-Saharan Africa, there is inconclusive evidence on climate change impacts on inequality. Further analysis of a recently constructed global database at the subnational unit level derived from official national household income and consumption surveys shows that temperature change has larger impacts in the short term and more impacts on chronic poverty than transient poverty. The results are robust to different model specifications and measures of chronic poverty and are more pronounced for poorer countries. The findings offer relevant inputs into current efforts to fight climate change. |
| Date: | 2024–02–08 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10697 |
| By: | Palmer, Charles; Groom, Ben; Sileci, Lorenzo; Langton, Steve |
| Abstract: | Biodiversity conservation in agricultural landscapes, the world's predominant land use, could involve sparing, or setting aside, agricultural land from production, implying biodiversity–food trade‐offs. Employing bird species and agricultural data in two panel data sets, we evaluate the extent of set‐aside's trade‐offs in England between 1992 and 2007. Mixed biodiversity outcomes are reflected in a marginal effect, of a 100 ha increase in set‐aside, associated with a 1%–2% increase in species abundance and richness, no impact on Shannon‐Wiener diversity, and a 0.03 standard deviation fall in phylogenetic diversity. Lower phylogenetic diversity indicates that populations of less genetically distinct bird species appear when set‐aside increases. These effects are discontinuous for abundance and richness, and larger in the long run than in the short run for richness and phylogenetic diversity. Set‐aside led, on average, to a 7%–9% fall in cereal land. In turn, this led to an up to 2% decline in cereal output. A yield increase of 5%–10% is likely due to the setting aside of mostly marginal land. Biodiversity–food trade‐offs in agricultural landscapes could be minimized with a carefully targeted set‐aside policy, based on clearly defined biodiversity goals, and in settings where there is still scope for intensification. |
| Keywords: | agriculture; biodiversity; food production; land sparing; set-aside |
| JEL: | Q18 Q57 R52 |
| Date: | 2025–02–09 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126254 |
| By: | Oscilowicz, Emilia; Solís, Guadalupe A.; Martinez, Laura; Németh, Jeremy; Simon, Gregory L.; Makarewicz, Carrie; Dickinson, Katherine; McKenzie, Lisa M.; Scandlyn, Jean; Erices-Ocampo, Paulina |
| Abstract: | Community air pollution science is widely viewed as a powerful public health and urban planning tool that can empower communities to push for policy change to benefit public health outcomes. A review of 131 studies highlights a bias toward the evaluation of low-cost sensor performance. We draw attention to the 10 studies (10%) that address a research-to-policy gap through distinct theories of change. Recommendations include addressing research gaps such as equitable sensor distribution, expanding focus to the Global South, and establishing engagement with policymakers early on in community science research. |
| Date: | 2024–06–10 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:mxv5k_v1 |
| By: | Weaich, Malcolm (University of Witwatersrand) |
| Abstract: | This study interrogates the conceptual frameworks surrounding young people's livelihood strategies, particularly focusing on those contending with acute insecurity and precariousness in the Global South. A bibliometric analysis provides a critical evaluation of the shifting landscape of future work, revealing substantive gaps in literature related to young people, their wellbeing, and livelihoods. These gaps are most pronounced in the articulation of livelihood components and their interconnections with wellbeing, sustainable development, and equitable energy transitions. Addressing these lacunae, the study enhances the conceptual understanding of access within livelihoods research and advocates for the integration of a Relational Well-Being approach. This research underscores the salience of relationality in comprehending young people's future livelihoods, seeking to provide an objective nuanced understanding of the interplay between livelihood strategies and the multifarious aspects of wellbeing. In particular, the study delineates three pivotal categories for future research: examining the impact of social relationships and community networks on the livelihood strategies and wellbeing of young people; identifying the barriers and facilitators to sustainable livelihoods within the prism of Relational Well-Being; and exploring how the Relational Well-Being framework can refine existing conceptualisations of livelihood and wellbeing, aimed at forging sustainable interventions. By critically engaging with the definitions and scope of “young people” in scholarly inquiry, this study fosters a deeper engagement with young people's lived realities, their livelihoods, and Relational Well-Being, with an expanded emphasis on the Global South. The outcome of this research develops twenty possible future studies from the data analysed. |
| Date: | 2024–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:fhng9_v1 |
| By: | Gil-Clavel, Sofia (Max Planck Institute for Demographic Research); Wagenblast, Thorid; Akkerman, Joos (Delft University of Technology); Filatova, Tatiana |
| Abstract: | Understanding which climate change adaptation constraints manifest for different actors – governments, communities, individuals and households – is essential, as adaptation is turning into a matter of survival. Though rich qualitative research reveals constraints for diverse cases, methods to consolidate knowledge and elicit patterns in adaptation constraints for various actors and hazards are scarce. We fill this gap by analyzing associations between different adaptations and actors’ constraints in adaptation to climate-induced floods and sea-level rise. Our novel approach derives textual data from peer-reviewed articles (published before February 2024) by using natural language processing, supervised learning, thematic coding books, and network analysis. Results show that social capital, economic factors, and government support are constraints shared among all actors. With respect to adaptation types, communities are frequently associated with maladaptation, while individuals and households are frequently associated with transformational adaptation. |
| Date: | 2024–04–26 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:3cqvn_v1 |
| By: | Rampazzo, Pietro |
| Abstract: | There is a gap in the study of mobility. The work done so far is not taking into account the changes the shared-mobility is bringing into our society. This research project aims to leverage shared-mobility data for a better understanding of new patterns in the human-mobility. These new services allow people to use a shared vehicle based on their needs, without the necessity to own one. Shared mobility is going towards users' needs and letting them reach their destination as close as possible. Sharing mobility is improving the data collected and at the same time reshaping the commuting patterns. Understanding travel behaviour is key to creating more resilient, sustainable urban transport networks and reducing carbon emissions. In this research, I start analysing data from Movi which focus on Padova. Movi (ex Mobike) is a free-floating bike sharing system active in Italy and Spain. The data collected by the this service is very detailed and rich. The data sets contain high-level detailed information that is related to service usage. For every trip made it is known: (1) anonymized user id and rental plan, (2) vehicle id, (3) origin (latitude, longitude), (4) destination (latitude, longitude), (5) start date and time (timestamp), (6) end date and time (timestamp), and (7) rounded meters/kilometres travelled. All the information is anonymized. The two research questions this paper is going to address are: (a) What is the profile of the active users? This information can be studied based on the usage data and socio-demographic information the service is collecting. (b) What are the effects of the weather and temperature on the usage of this service? Weather data were retrieved from the local authorities regarding temperature and precipitations. |
| Date: | 2024–06–14 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:bd8p4_v1 |
| By: | José Augusto Lacerda Fernandes (UFPA - Federal University of Para - Universidade Federal do Pará - UFPA [Belém, Brazil]); Ana Clara Aparecida Alves de Souza (USP - Universidade de São Paulo = University of São Paulo) |
| Abstract: | Objective: the bioeconomy has been repeatedly highlighted as the main path to sustainable development for the Amazon. However, the advancement of this movement faces numerous challenges, such as the creation of sustainable business models (SBMs) and the change of perspectives regarding old social technologies (STs) and local communities, which are sometimes seen as mere suppliers of raw materials. In order to better understand these challenges, this article aims to identify the role of the community and its social technologies in the design of an SBM. Theoretical approach: based on a single case study of Da Tribu, a biojewelry company located in the state of Pará, in the Brazilian Amazon, we demonstrate the recursive nature of the relationship: ST-communities- SBM. Method: through various primary and secondary data sources (interviews, non-participant observation, and online materials), we demonstrate the relevance of considering social technologies and other particular aspects of Amazonian communities in the design of a business. Results: conceptually, the research contributes to the discussion that brings ST and SBM closer together; the contribution to practice is based on essential points of attention for the creation and management of companies involved in the development of the Amazonian bioeconomy. With regard to communities, the study seeks to highlight voices that have been historically silenced and treated only as resources to be exploited. Conclusions: finally, the discussion highlights points that can also be considered in public policies aimed at the context under discussion. |
| Keywords: | sustainability, local knowledge, bioeconomy. |
| Date: | 2025–01–24 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04915393 |
| By: | Eriksson, Mathilda; del Valle, Alejandro; De La Fuente, Alejandro |
| Abstract: | This paper studies how air quality around combustion power plants changes in response to hydrological droughts that affect hydropower generation. Using fixed-effect and post-double selection methods, the paper analyzes a unique plant-level panel of fine particulate matter concentrations and meteorological conditions spanning 20 years at monthly frequency. The findings show that, on average, hydrological droughts lead to 0.83 micrograms per cubic meter excess fine particulate matter, equivalent to a 5.3 percent increase from non-drought conditions. Counterfactual simulations for the region indicate that this excess fine particulate matter may have resulted in up to 10, 000 premature deaths annually. Combining the estimates with climate, demographic, and policy projections, the paper also shows that this health burden will likely persist over the next four decades. |
| Date: | 2024–05–03 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10760 |
| By: | Calice, Pietro; Demekas, Dimitri G. |
| Abstract: | Recent calls on central banks and financial regulators to use the tools at their disposal to help mitigate the negative economic and social impacts of climate policies are based on several false analogies between the energy transition and the “just” energy transition. The same false analogies explain why voluntary efforts to incorporate just transition considerations into private financial decisions and products copying approaches from climate finance have so far failed to gain traction. None of the above invalidates the just transition as a political aspiration. However, only the government has the legitimacy and authority to identify the regions or sectors where the negative impacts of the energy transition are to be mitigated, determine the extent and instruments for this mitigation, and adjust them over time in line with shifting social preferences. This is an essentially political task that cannot be delegated to technocratic agencies. Nevertheless, within the parameters established by the government, central banks and financial regulators can play a supporting role by ensuring accurate data on the social impact of the energy transition, enforcing disclosure requirements, sensitizing financial firms to just transition–related risks, and raising awareness among financial firms. However, they must be cautious not to overstep their mandate, and remain mindful of the limitations of their toolkit and of the risks and potential unintended consequences of their actions. |
| Date: | 2024–01–30 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10685 |
| By: | Behrer, Arnold Patrick; Heft-Neal, Sam |
| Abstract: | Air pollution is a major threat to health, and the dangers are particularly acute in low- and middle-income countries. However, little is known about how the burden of pollution is spread across the wealth distribution in these countries. This paper uses new data providing high-resolution wealth estimates for more than 100 low- and middle-income countries, combined with equally high-resolution estimates of air pollution, to estimate how wealth is correlated with ambient air pollution around the world. The findings show that on average air pollution is positively correlated with wealth, but the relationship is highly heterogeneous across countries. The fact that air pollution and wealth are both disproportionately high in urban areas, where economic activity is largely concentrated, appears to drive this relationship. When the analysis is limited to anthropogenic sources of pollution, the relationship becomes less heterogeneous and more systematically positive. The paper also examines the relationship between pollution exposure and wealth within large cities around the world. Again, the findings show substantial heterogeneity across cities. The paper explores several hypotheses for this heterogeneity but does not find a single explanation. Economic concentration within cities appears to explain some of the relationship. Cities with more concentrated economic opportunity tend to have more positive correlations between pollution and wealth. |
| Date: | 2024–01–31 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10689 |
| By: | Hutton, Guy; Chase, Claire; Kennedy-Walker, Ruth Jane |
| Abstract: | In Sub-Saharan Africa, health care facilities face critical challenges in water supply, sanitation, and hygiene services; health care waste management; and environmental cleanliness. With coverage below 50 percent, these deficiencies pose significant health risks to patients and health care workers, contributing to health care–associated infections. Meta-analyses and individual studies estimate rates of health care–associated infections in Sub-Saharan Africa at between 13 and 30 percent of hospital admissions, impacting patients, families, and health care providers. Rising antimicrobial resistance further exacerbates health outcomes and costs. In Eastern and Southern Africa, an estimated 3.1 million health care–associated infections in 2022 incurred over 320, 000 excess deaths, costing at least US$6 billion, or 1.14 percent of combined gross domestic product in 2022. Investing in comprehensive water supply, sanitation, and hygiene and health care waste management can yield substantial benefits, with a benefit-cost ratio of 5.8 for all economic costs. Beyond preventing health care–associated infections, improved cleanliness and infrastructure are crucial for patient satisfaction, impacting future health care–seeking behavior and health care worker job satisfaction. Sub-Saharan African countries should prioritize infrastructure investment, budget allocation, staffing, and behavioral improvements to enhance the quality of health care and mitigate these pressing challenges. |
| Date: | 2024–02–21 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10708 |
| By: | Rosenow, Samuel Kaspar; Mealy, Penelope Ann |
| Abstract: | Reaching net-zero emissions by 2050 requires unprecedented scaling up in the global deployment of critical decarbonization technologies, such as solar photovoltaics, wind turbines, and electric vehicles (EVs). This challenge is currently rife with risks and rewards. With global production perceived to be concentrated in a small number of countries, mitigating against possible supply-side risks has become an urgent policy priority for many countries. At the same time, these technologies’ high-growth potential offer lucrative rewards for countries able to strategically position themselves to produce requisite materials, components or assemble final products. As green industrial policies have become an increasingly popular tool for shoring up supply chains and stimulating production in key green sectors, this paper presents a data-driven framework for identifying which countries could have key strengths and latent comparative advantages in the production of solar PV, wind turbines and EVs. It constructs a new dataset of traded products, components, and materials associated with decarbonization technologies and develops new indices capturing countries’ current export strengths and future diversification potential in the global value chains of these technologies. It also highlights products with supply risks due to high market concentration levels and those with development rewards in terms of their potential for growth, knowledge spillovers, and technological upgrading. Our analysis suggests that there is plenty of opportunity to diversify these value chains across a larger number of countries and reduce risks associated with reliance on only a few countries. |
| Date: | 2024–02–07 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10696 |
| By: | Burgold, Peter; Ernst, Anne; Hinterlang, Natascha; Jäger, Marius; Stähler, Nikolai |
| Abstract: | In this paper, we compare the economic and welfare implications of two carbon pricing policies, namely the European Cap and Trade (CaT) regime and the Chinese Tradeable Performance Standard (TPS). The former sets an economy-wide emissions target and forces firms to purchase sufficient certificates. The latter sets an emissions intensity and requires firms with a higher intensity to either abate or buy emissions allowances from firms with lower-than-target intensities. It can be shown that TPS is equivalent to CaT when carbon pricing revenues are redistributed to firms according to output. In a dynamic multi-sector general equilibrium TANK model, we show that TPS outperforms a CaT regime that redistributes carbon revenues to households in a lump-sum manner, both, in terms of output gains and welfare due to lower costs on the production side. However, CaT with labor tax reduction increases welfare most because it alleviates distortions on the production side and improves the income situation of all households. |
| Keywords: | Carbon Pricing, Cap and Trade, Tradable Performance Standard, Dynamic General Equilibrium Model, Sectoral Heterogeneity, Input-Output Matrix |
| JEL: | E32 E62 H23 H32 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:311837 |
| By: | El Skaf, Rawad |
| Abstract: | Scenarios and pathways, as defined and used in the "SSP-RCP scenario framework", are key in last decade's climate change research and in the latest report of the Intergovernmental Panel on Climate Change (IPCC). In this framework, Shared Socioeconomic Pathways (SSP) consist of a limited set of alternative socioeconomic futures, that are both represented in short qualitative narratives and with quantitative projections of key drivers. One important use of the computationally derived SSPscenarios is to do mitigation analysis and present a "manageable" set of options to decision-makers. However, all SSPs and derivatively SSP-scenarios in this framework assume a globally growing economy into 2100. This, in practice, amounts to a value-laden restriction of the space of solutions to be presented to decision-makers, falling short of IPCC's general mandate of being "policyrelevant and yet policy-neutral, never policy-prescriptive". Yet, the Global Economic Growth Assumption (GEGA) could be challenged and in practice is challenged by post-growth scholars. However, for post-growth mitigation scenarios to be constructed, explored, and assessed more systematically, they need to be fully integrated into the scenario framework. This is not done yet. I argue, from a philosophy of value-laden science perspective, that this should be done and propose two ways. This integration follows from and satisfies a diversity criterion, which derivatively enhances the framework's "objectivity" and the IPCC's policy-neutrality. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:penwps:312411 |
| By: | Soufiane Elbroumi (USMBA - Université Sidi Mohamed Ben Abdellah); Maha Assaad Idrissi (UIT - Université Ibn Tofaïl) |
| Abstract: | The circular economy (CE) represents an innovative approach to addressing contemporary environmental, social, and economic challenges. This study investigates the factors influencing the adoption of circular practices by Moroccan small and medium enterprises (SMEs), focusing on economic, technological, and institutional dimensions. Based on empirical data from 250 SMEs across Morocco's major economic regions, the research highlights how access to funding, clean technologies, and managerial awareness serve as key drivers of this transition. The findings reveal that financial and technological resources significantly promote the adoption of multi-R approaches (reduce, reuse, recycle), while institutional constraints pose substantial barriers. Moreover, sectoral disparities are evident, with higher adoption rates in industry and services compared to commerce. This study offers strategic recommendations to accelerate the circular transition of Moroccan SMEs, including public incentives, institutional reforms, and enhanced stakeholder awareness. The findings contribute to academic discussions on CE in emerging economies while providing practical insights for policymakers and businesses. |
| Abstract: | L'économie circulaire (EC) constitue une approche novatrice pour répondre aux défis environnementaux, sociaux et économiques contemporains. Cet article examine les facteurs influençant l'adoption des pratiques circulaires par les petites et moyennes entreprises (PME) marocaines, en mettant en lumière les dimensions économiques, technologiques et institutionnelles. Basée sur une analyse empirique menée auprès de 250 PME réparties sur les principales régions économiques du Maroc, cette recherche explore comment des leviers tels que l'accès aux financements, aux technologies propres et à la sensibilisation des dirigeants peuvent stimuler cette transition. Les résultats montrent que si les ressources financières et technologiques favorisent l'intégration des approches multi-R (réduction, réutilisation, recyclage), les contraintes institutionnelles freinent considérablement cette adoption. En outre, des disparités sectorielles marquées sont identifiées, l'industrie et les services montrant un engagement plus élevé que le commerce. Cette étude propose des recommandations stratégiques pour accélérer la transition circulaire des PME marocaines, notamment à travers des incitations publiques, des réformes institutionnelles et une sensibilisation accrue des parties prenantes. Les conclusions enrichissent le débat académique sur l'économie circulaire dans les économies émergentes tout en offrant des orientations pratiques pour les décideurs et les entreprises. |
| Keywords: | Circular economy Small and medium-sized enterprises (SMEs) Multi-R practices Sustainable Transition, Circular economy, Small and medium-sized enterprises (SMEs), Multi-R practices, Sustainable Transition |
| Date: | 2024–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04916123 |
| By: | Bastos, Paulo S. R.; Greenspon, Jacob Neil; Stapleton, Katherine Anne; Taglioni, Daria |
| Abstract: | This paper develops measures of the diffusion of a comprehensive range of low-carbon technologies in 35 countries from 2019 to 2022 using text analysis of job postings and earnings calls transcripts. It documents a rapid acceleration in the diffusion of low-carbon technologies in 2022, driven by technologies related to renewable energy, vehicles, thermal performance, and electrical generation and storage. Rapid growth occurred in three quarters of the countries studied and 228 of 300 subnational regions, although was fastest in Europe. Hiring for roles related to low-carbon technologies in these 35 countries doubled between 2019 and the end of 2022, for example. It studies the role of the global energy crisis in triggering this accelerated technology diffusion, focusing on 16 mainly advanced economies. It finds that establishments in countries that had a higher pre-crisis dependence on imports of natural gas, and were thus more exposed to the price shock, differentially increased hiring for low-carbon technology related roles from March 2022 onwards. Within more exposed countries, establishments with a higher pre-crisis energy intensity also saw a differential increase in hiring rela tive to less energy intensive ones. |
| Date: | 2024–05–21 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10777 |
| By: | Anglade, Boaz; Cucagna, Maria Emilia; De Hoop, Jacobus Joost; Paffhausen, Anna Luisa |
| Abstract: | Preparing for—and responding to—disasters requires a people-centered approach and a strong understanding of households’ ability to cope with shocks. Relying on novel household survey data, this paper examines the ability of households in the Caribbean to cope with disasters caused by natural hazards. The analysis sheds light on disaster preparedness in five “data deprived” countries: Belize, Dominica, Haiti, Saint Lucia, and Suriname. The analysis points to a clear income gradient in possession of emergency supplies needed to cope with disasters. This gradient can be observed at both the country and household levels. In contrast, no such income gradient is observed for other key elements of preparation for disasters: community disaster management systems and discussion of risk mitigation strategies within households (both of which are common in the Caribbean hurricane belt). There is substantial variation in preparedness to cope with disasters across sociodemographic groups, as households with less educated heads, with children, and residing in rural areas are generally less able to handle disasters. All in all, a large share of households in all five countries indicates that they are not prepared to cope with a natural disaster. The COVID-19 pandemic had a negative impact on disaster risk preparedness, primarily due to households’ deteriorating financial circumstances. |
| Date: | 2024–06–17 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10807 |
| By: | Carletto, Calogero; Letta, Marco; Montalbano, Pierluigi; Paolantonio, Adriana; Zezza, Alberto |
| Abstract: | Reliable microeconomic data to understand the climate-migration nexus are virtually nonexistent. Nationally representative multitopic household surveys are rarely, if ever, explicitly designed for studying migration issues. Despite this limitation, most countries have no alternatives to the use of household surveys when it comes to analyzing complex multidimensional phenomena such as the interrelationship between climate change and migration. This paper offers a critical reflection on current challenges faced by multi-topic household surveys in responding to this need, but also, more importantly, on the many opportunities embedded in their use. Specifically, using the Living Standards Measurement Study as a case study, a conceptual framework, practical empirical guidance, and a methodological agenda are proposed to address data gaps and contribute to a more solid understanding of the climate-migration nexus. |
| Date: | 2023–11–21 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10613 |
| By: | Francisco E. Ilabaca; Robert Mann; Philip Mulder |
| Abstract: | Natural disasters can generate large economic losses for global financial institutions with propagating across economies through global banking networks. |
| Date: | 2024–07–23 |
| URL: | https://d.repec.org/n?u=RePEc:ofr:ofrblg:24-07 |
| By: | Mosomi, Jacqueline; Cunningham, Wendy |
| Abstract: | To adequately prepare the labor force for the green economy, policy makers and workers require a detailed understanding of the nature of green jobs. This study profiles green jobs in the South African labor market. It uses labor force survey data and applies an occupational task-based approach to identify current green occupations and associated jobs, count them, and profile their workers and wages. The findings show that 5.5 to 32 percent of South Africa’s jobs can be labeled as “green, ” where the former estimate uses a strict definition and the latter uses a broad definition. The share of strictly green jobs has not changed over the past eight years. While 65 percent of strictly green occupations can be classified as high (skill) occupations, only 55 percent of workers are in these occupations, reflecting numerous employment opportunities in mid-level and elementary green occupations. Strictly green occupations tend to be male-dominated and held by prime-age (25–44) workers with post-secondary school. However, the profile of those in the greenest of the green occupations shows that they are older (age 45–65) workers and Black Africans with lower than completed high school education. Policies to prepare South Africans to engage in the green economy include developing a strategy to teach new and existing workers to use green technologies; targeting green occupations in youth development programs; making a concerted effort to support women in science, technology, engineering, and mathematics; helping low-skilled green workers to organize and improve their work conditions; and continuing to collect and analyze data for better tracking South Africa’s progress in becoming a green labor force. |
| Date: | 2024–05–21 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10779 |
| By: | Stanhope, Jessica; Foley, Kristen; Butler, Mary; Boddy, Jennifer; Clanchy, Kelly; George, Emma; Roberts, Rachel; Rothmore, A/Prof Paul; Salter, Amy; Serocki, Patricia |
| Abstract: | Exposure to natural environments is important for human health. We conducted the first study of allied health professionals’ thoughts about the features that should be incorporated into natural environments to benefit their patients/ clients and the broader community. Allied health professionals reported a variety of features, including specific natural features; being pleasing to the senses, privacy and having a relaxing feel; features that facilitate engagement in activities; as well as being accessible and safe. Universal and co-design is important for developing accessible and inclusive natural spaces to promote health. |
| Date: | 2024–05–24 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nv95r_v1 |
| By: | Gustavo Javier Canavire Bacarreza; Naraya Carrasco; Marlen Yamilet Cardona Botero; Olive Umuhire Nsababera |
| Abstract: | This paper examines the socioeconomic factors correlated with vulnerability to natural hazards, using unique data from the High-Frequency Phone Surveys conducted in Haiti in 2021, 2022, and 2023. The results indicate a high overall exposure to hazards, with a significant number of individuals living in households facing the threat of multiple hazards. The analysis finds that disaster preparedness is generally low, with the poorest households experiencing the most significant challenges. Households in the bottom two wealth quintiles are less likely to have the necessary supplies to prepare adequately for and respond to disasters compared to those in the upper quintiles. Moreover, the level of education of the household head and access to the internet are found to be correlated with the likelihood of having better disaster preparedness. This suggests that higher levels of education and internet access play a significant role in improving preparedness levels among households. Overall, these findings highlight the importance of addressing socioeconomic factors when developing strategies to enhance resilience to natural hazards. By focusing on improving disaster preparedness among the most vulnerable households and promoting education and internet access, policy makers can mitigate the negative impacts of natural disasters on affected communities. |
| Date: | 2024–02–09 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10699 |
| By: | Artuc, Erhan; Sommer, Konstantin Heinrich Ludwig |
| Abstract: | This paper analyzes the effects of carbon taxation and border carbon adjustments in a setting where firms can choose to respond to taxation by abating or by outsourcing part of their production. For this, this paper sets up a general equilibrium trade model, calibrated with world trade and input-output data that features a discrete choice production structure, where the producers choose between outsourcing or abating emission-intensive intermediate production steps. The paper finds that border adjustments that cannot target scope 3 emissions can lead to outsourcing, and thus leakage, further down the value chain, but nevertheless induce higher abatement both in the countries that impose the border adjustment and in the ones affected by it. |
| Date: | 2024–01–11 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10665 |
| By: | Kwabena A. Addo (Utrecht University); Shams Pathan (University of Newcastle - Newcastle University Business School); Steven Ongena (University of Zurich - Department Finance; Swiss Finance Institute; KU Leuven; NTNU Business School; Centre for Economic Policy Research (CEPR)) |
| Abstract: | We investigate how CEO overconfidence influences banks' decisions to join the United Nations Environment Programme Finance Initiative. Analyzing 13, 000 bank-year observations, spanning the last quarter century, with a duration model, we find that overconfident CEOs delay participation by reducing the likelihood of joining by 15% annually. This effect is stronger in large, profitable, deposit-funded banks and persists across various CEO demographics. Our findings reveal how behavioral biases shape strategic decisions, highlighting overconfidence as a barrier to timely sustainability commitments. These insights underscore the importance of leadership traits in driving-or hindering-progress in green finance. |
| Keywords: | CEO overconfidence, green bank alliances, green finance, duration model |
| JEL: | G21 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2520 |
| By: | Srivastava, Bhavya; Hirfrfot, Kibrom Tafere; Behrer, Arnold Patrick |
| Abstract: | This paper uses data from 2003–19 on 2.47 million test takers of a national high stakes university entrance exam in Ethiopia to study the impacts of temperature on learning outcomes. It finds that high temperatures during the school year leading up to the exam reduce test scores, controlling for temperatures when the exam is taken. The results suggest that the scores of female students are less impacted by higher temperatures compared to their male counterparts. Additionally, the analysis finds that the scores of students from schools located in hotter regions are less impacted by higher temperatures compared to their counterparts from cooler regions. The evidence suggests that the adverse effects of temperature are driven by impacts from within-classroom temperatures, rather than from indirect impacts on agriculture. |
| Date: | 2024–03–05 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10714 |
| By: | Valve, Helena; D'Amato, Dalia (University of Helsinki, Finland); Hebinck, Aniek; Lazurko, Anita; de Pater, Mara; Březovská, Romana Jungwirth; Saarikoski, Heli; Laspidou, Chrysi; Keune, Hans; Ziliaskopoulos, Konstantinos |
| Abstract: | Individual actors and actor groups are vital catalysts of transformative change as they are able to initiate bottom-up interventions that nurture and protect biodiversity. This paper analyses biodiversity-focused practices across the civil, market and public spheres to identify the modes of intervention that actors in Europe utilise when they seek to fight biodiversity loss as part of their every-day work or voluntary activism. Studying how actors locate and engage with biodiversity issues allowed us to develop a typology of intervention modes and to unravel interlinkages between biodiversity governance and bottom-up action in a new manner. The seven modes of intervention identified from the rich qualitative data demonstrate how modes of biodiversity action vary in terms of the tangible issues they seek to address. Practitioners and activists locate options for change in resource management practices, production and consumption systems, market conditions, and land-use, amongst others. The findings enact a Europe in which cohesion policies, land-use pressures and power lobbies controlling resource management generate resistance and spark innovation. The aspirations to affect policymaking and biodiversity governance vary from one mode to another. The typology also grants visibility to potentially unrecognised modes and mediations along which transformative change is and might be further catalysed. The categorisation of the modes of intervention thus helps policymakers learn from and engage with innovations and niches. It also makes explicit the critical roles that some grassroots actors have adopted, as governance bodies have not done their share in fostering of transformative change. |
| Date: | 2024–05–30 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:e6vfx_v1 |
| By: | Baumeister, Hubertus; Canzler, Weert; Haus, Juliane; Hülz, Martina; Klein-Hitpaß, Anne; Molter, Uli; Walther, Michael |
| Abstract: | Nach der jüngst beschlossenen Novelle des Straßenverkehrsgesetzes können unabhängig vom Bestehen einer Gefahrenlage nun auch der Klima- und Umweltschutz, die Gesundheit und die städtebauliche Entwicklung als Ziele für verkehrspolitische Maßnahmen geltend gemacht werden. Das ist ein von vielen Kommunen seit langem gewünschter Paradigmenwechsel. Fast gleichzeitig hat sich das Bundesverwaltungsgericht in einem Grundsatzurteil gegen das illegale "aufgesetzte Parken" auf Gehwegen positioniert. Auch dieses Urteil ist ein Paukenschlag, weil Kommunen das verbotswidrige Parken von Fahrzeugen nicht mehr dulden dürfen, wenn andere Verkehrsteilnehmende dadurch beeinträchtigt werden. Die neue Rechtslage bietet ein Möglichkeitsfenster für Kommunen, die nun etwas gegen die Dominanz des KFZ-Verkehrs im Straßenraum und den daraus resultierenden Problemen machen und damit einen wichtigen Beitrag zur kommunalen Verkehrswende leisten können. |
| Abstract: | Following the recently adopted amendment to the Road Traffic Act, climate and environmental protection, health and urban development can now finally be cited as objectives for transport policy, whether or not a dangerous situation exists. This is a paradigm shift that has long been desired by many local authorities. Almost at the same time, the Federal Administrative Court issued a landmark judgement against illegal 'surface parking' on pavements. This judgement is also a bombshell because local authorities are no longer allowed to tolerate parking offences of vehicles if other road users are impaired as a result. The new legal situation offers a window of opportunity for local authorities, which can now do something about the dominance of motor traffic on the roads and the resulting problems and thus make an important contribution to the municipal transport transformation. |
| Keywords: | Novelle Straßenverkehrsgesetz, Verkehrswende, Mobilität, Flächengerechtigkeit, Inklusive Verkehrsplanung, Amendment to the Road Traffic Act, transport transformation, mobility, spatial justice, inclusive transport planning |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:arlpos:312412 |
| By: | Tommaso Sonno; Davide Zufacchi |
| Abstract: | Large-scale land acquisitions are a key component of agricultural foreign direct investment. In 2023 alone, nearly 6% of the world's arable land was acquired globally. This paper examines their impact on agricultural production, environmental outcomes, and local communities. To identify these effects, we exploit an exogenous increase in palm oil land acquisitions driven by the Ebola epidemic in Liberia. We find a 54% growth in production, primarily due to an expansion in cultivated hectares rather than large improvements in land productivity, accompanied by a significant rise in palm oil exports. Our results indicate that LSLAs have altered the equilibrium of palm oil production, fuelling the adoption of an extensive monoculture system oriented toward international markets. The expansion of this tradable industry generated modest positive effects on the local economy and spurred a process of structural transformation. Women transitioned from agriculture to service and sales jobs, while men shifted into manual labour positions. However, all of this came at a cost: increased deforestation, air pollution, and a decline in local land ownership. |
| Keywords: | large-scale land acquisitions, agricultural production, structural transformation |
| Date: | 2025–02–17 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2075 |
| By: | Ghose, Devaki; Pinheiro Fraga, Eduardo; Fernandes, Ana Margarida |
| Abstract: | This paper quantifies the value of fertilizer for agricultural production and trade in a developing economy where agriculture is centrally important by using an unprecedented natural experiment whereby the government of Sri Lanka imposed an abrupt and unexpected ban on the imports of all chemical fertilizers in May 2021. The analysis combines novel high-frequency firm-level trade data, detailed agricultural ground production data, crop yield estimates from state-of-the-art remote sensing techniques, an d dynamic event study designs. The findings show that the fertilizer ban led to dramatic declines in agricultural production, fertilizer imports, and exports of fertilizer-dependent crops. Using a quantitative trade model, the paper finds that the ban’s welfare effects were equivalent to a 1.5 percent income reduction on average, with losses disproportionately concentrated on landowners (whose income is tied to agriculture) relative to workers and on regions specialized in the cultivation of relatively fertilizer-intensive crops. The findings quantify the equilibrium value of fertilizer in agriculture, an important estimate for any fertilizer-related policy (such as fertilizer subsidies) and for the public debate on the costs and benefits of environmental regulation more generally. |
| Date: | 2023–12–12 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10642 |
| By: | Torsten Ehlers; Jon Frost; Carlos Madeira; Ilhyock Shim |
| Abstract: | Different types of extreme weather event have different transmission channels to economic activity and inflation. An analysis of eight major economies in the Americas shows that droughts reduce economic output over the two years after they occur due to lasting effects on agriculture, forestry and electricity production. It also shows that, while droughts and wildfires temporarily increase food prices and droughts and storms raise energy prices over the following three months, in general there is no persistent impact on inflation. Considering the trade-off between growth and inflation, monetary policy may have to react differently in different circumstances: by tightening if price impacts are large and threaten to become persistent, and by loosening if events destroy physical capital and have lasting effects on economic output. |
| Date: | 2025–02–10 |
| URL: | https://d.repec.org/n?u=RePEc:bis:bisblt:98 |
| By: | Brüggemann, Anke; Grewenig, Elisabeth; Rode, Johannes; Schwartz, Michael |
| Abstract: | The business sector in Germany increased climate-positive investment by 5% in real terms to EUR 85 billion in 2023. These are the findings of the 2024 KfW Climate Barometer. This growth was driven by large enterprises. They expanded their climate investments again considerably on the previous year (+19% in real terms). At the same time, the generally higher price level, rising financing costs and the economic slowdown have put the brakes on SMEs’ investment. Climate investment activity by SMEs decreased by 10% overall on an inflation-adjusted basis last year. Even in challenging times, many enterprises continue to have climate action on their agenda, with 51% having taken climate action into account in their business strategy. Eighty per cent of large enterprises and 24% of larger SMEs aspire to become climate neutral. |
| Date: | 2024–11–26 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:153182 |
| By: | Stark, Hendrik; Dorjee, Dusana; Trautwein, Fynn-Mathis; Frank, Pascal; Cooper, Kira Jade; Lutz, Martina; Braeunig, Matthias; Ericson, Torgeir; Lodoe, Tenzin; Schmidt, Stefan (Medical Center - Universit of Freiburg) |
| Abstract: | The aggravation of socio-ecological crises can be attributed to human behaviour. The underlying processes are grounded in one’s sense of self - a central aspect of the human mind. We argue that the self represents a blind spot in dominant sustainability discourses, in the sense that it is an invisible but central element that underpins behaviour and guides social development. In particular, we explore reification - a cognitive process that substantiates the self and forms fixed and narrow notions of it. Reification thereby reinforces self-centred cognitive, affective, and motivational patterns underlying unsustainability. In contrast, a flexible, open and reflected sense of self has been demonstrated to foster more considerate and sustainable lifestyles and behaviours. Against this background, we suggest that social contexts that facilitate more reflective and flexible forms of self-awareness are crucial leverage points for sustainability science, policy, and practice. |
| Date: | 2025–02–21 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:hs23f_v1 |
| By: | Simmonds, Jeremy; Kerswell, Ailsa; Maron, Martine |
| Abstract: | Businesses and other organisations are increasingly making "nature positive" commitments, similar to the trend of "net-zero" carbon pledges. Such commitments are essential to meet the global goal of ensuring more nature in the world by 2030 than in 2020, with continued recovery beyond that. However, making a commitment to contribute to a nature positive future requires a nuanced understanding of the nature positive concept and how it can be delivered, both on the ground and within organisational structures. Here, we outline key considerations for making robust nature positive commitments, avoiding common pitfalls, and emphasise the importance of evidence-based, incremental approaches that build ambition over time. We provide a checklist to help organisations develop solid foundations for their contribution to a nature positive world, ensuring commitments are actionable, transparent, and beneficial for both nature and organisations themselves. |
| Date: | 2024–05–30 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nx2j3_v1 |
| By: | Savolainen, Sonja; Saarinen, Ville P.; Chen, Ted Hsuan Yun |
| Abstract: | Prior studies have demonstrated social media's role in post-repression backlash mobilization but have yet to consider how they can sustain movements through long term repression. We explore this possibility by studying how Finnish climate activists responded to government repression in their social media behavior. We first conducted in-depth interviews to see how activists understand the interplay between activism, repression, and social media affordances. Findings from our interviews suggest that activists continue their movement participation despite repression because the risk of social media amplifying individual chilling into movement-wide cascading demobilization outweighs risks from repression. We looked for evidence of this mechanism in the networked communication of Finnish climate activists on Twitter using time series and temporal network analyses. Our findings show that activists' Twitter participation remained remarkably consistent despite offline repression, and that their communication patterns exhibited centralization tendencies that likely sustain the movement. |
| Date: | 2024–05–24 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:p4yvk_v1 |
| By: | Gregory Phelan; David Love |
| Abstract: | A new OFR working paper looks at what economic fundamentals determine sustainable conditions. Keywords: inflation, supply and demand, Phillips curve |
| Date: | 2023–05–16 |
| URL: | https://d.repec.org/n?u=RePEc:ofr:ofrblg:23-12 |
| By: | Vilalta-Perdomo, Eliseo (Aston University); Michel-Villarreal, Rosario; Thierry-Aguilera, Ricardo; Krejci, Caroline; Rainer, Javier; Burgos, Daniel |
| Abstract: | This study focuses on the role that international logistics performance may play in achieving Sustainable Development Goal 2 (Zero Hunger). We conducted a confirmatory piece of research to determine the potential importance of regional logistics coordination. Secondary data concerning the Logistics Performance Index (LPI) by the World Bank and the SDG2 scores by the UN database were examined at the level of countries and regions. The analysis considers an unconditional growth model with time as the only fixed effect and random effects of time within regions and countries. The findings show that LPI is a good predictor for SDG2 level of achievement; however, there are other sources for important variation between and within regions. Therefore, when developing and implementing strategies for the improvement of international logistics performance specific regional needs should be considered. Anyway, there is a global consensus among logistics professionals that the most impactful LPI component is ‘Customs’, which needs improvement across all the regions of the world. Other priorities vary depending on the region under study. For instance, developed countries are particularly sensitive to shipment costs, whilst less developed countries’ concerns focus on improving their infrastructure. |
| Date: | 2023–11–25 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:3ykgx_v1 |
| By: | Englander, Aaron Gabriel Ratliffe; Costello, Christopher |
| Abstract: | Many countries sell fishing rights to foreign nations and fishers. Although African coastal waters are among the world’s most biologically rich, African countries earn much less than their peers from selling access to foreign fishers. African countries sell fishing access individually (in contrast to some Pacific countries that sell access as a bloc). This paper develops a bilateral oligopoly model to simulate the effects of an African fish cartel. The model shows that wielding market power entails both ecological and economic dimensions. Africa would substantially restrict access catch, which would increase biomass by 16 percent. This would confer economic benefits to all African nations, raising profits by an average of 23 percent. These benefits arise because market power shifts from foreign buyers to African sellers. Although impediments to sustainable development, like corruption, are hard to change in the medium term, deeper African integration is an already emerging solution to African countries’ economic and ecological challenges. |
| Date: | 2023–11–03 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10594 |
| By: | Wollburg, Philip Randolph; Markhof, Yannick Valentin; Bentze, Thomas Patrick; Ponzini, Giulia |
| Abstract: | Disasters affect millions of people each year and cause economic losses worth many billions of dollars globally. Reporting on disaster impacts in research, policy, and news primarily relies on macro statistics based on disaster inventories. The macro statistics suggest that a relatively small share of disaster damages accrues in Africa. This paper, instead, uses detailed survey micro-data from six African countries to quantify disaster damages in one key sector: crop agriculture. The micro-data reveals much higher damages and more people affected than the macro statistics would indicate. On average, 36 percent of the agricultural plots in the sample suffer crop losses due to adverse climatic events. In the countries and time period analyzed, these losses reduced total crop production by an average of 29 percent. Importantly, many of these losses are underreported or undetected in key disaster inventories and therefore elude macro statistics. In the case of droughts and floods, the economic losses recorded in the micro-data are $5.1 billion higher than in the macro statistics, affecting 145 million to 170 million people, more than four times as many as the macro statistics suggest. The difference stems mostly from smaller and less severe but frequent adverse events that are not recorded in disaster inventories. |
| Date: | 2024–01–09 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10660 |
| By: | Helmers, Viola; Van der Werf, Edwin |
| Abstract: | The taxation of aviation is a frequently discussed component of governments' efforts to mitigate greenhouse gas emissions. This study examines the impact of the German aviation tax on passenger numbers during the period 2011-2019 using five panel data estimators and a Specification Curve Analysis (SCA) to assess the robustness of the results to changes in the specifications of the econometric model. Employing five base models, we find that the tax induced a 6-11% reduction in the number of passengers departing annually from Germany in the first two years after implementation. For later years, estimated effects are more ambiguous. The SCA, comprising 175 alternative specifications, corroborates our main findings while showing a slightly wider range of effect sizes, especially on the upper bound. The results show that the choice of econometric method can affect research outcomes, especially for the fourth year of the tax and onward. |
| Abstract: | Die Besteuerung des Luftverkehrs ist eine häufig diskutierte Maßnahme von Regierungen zur Verringerung von Treibhausgasemissionen. Diese Studie untersucht die Auswirkungen der deutschen Luftverkehrsteuer auf Passagierzahlen im Zeitraum 2011-2019 mit Hilfe von fünf Paneldatenschätzern und einer Specification Curve Analysis (SCA), um die Robustheit der Ergebnisse gegenüber Änderungen in den Spezifikationen des ökonometrischen Modells zu bewerten. Unter Verwendung von fünf verschiedenen Schätzern stellen wir fest, dass die Steuer in den ersten beiden Jahren nach Einführung der Steuer zu einem Rückgang der Anzahl der jährlich aus Deutschland abfliegenden Passagiere um 6-11 % führte. Für die nachfolgenden Jahre sind die geschätzten Effekte uneindeutig. Die SCA, welche weitere 175 alternative Spezifikationen umfasst, bestätigt unsere Hauptergebnisse und zeigt eine etwas breitere Spanne von Effektgrößen, insbesondere im oberen Bereich. Unsere Ergebnisse zeigen, dass die Wahl der ökonometrischen Methode die Ergebnisse maßgeblich beeinflussen kann, in diesem Fall insbesondere für die Effekte ab dem vierten Jahr der Steuer. |
| Keywords: | Aviation policy, aviation tax, passenger tax, transport economics, dynamic panel model, specification curve analysis |
| JEL: | C21 C23 H23 R48 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:312424 |
| By: | Proestou, Maria; Schulz, Nicolai; Feindt, Peter |
| Abstract: | Policies to promote the transition from carbon-based to bio-based economies are proliferating around the globe. Meanwhile, concerns are growing about the resilience of bioeconomy, but the attention given to resilience issues in bioeconomy policies has remained underexplored. To address this gap, we conduct a systematic content analysis of the resilience orientation in 78 bioeconomy policy documents across 50 countries. Our descriptive statistical analyses show that more than 60 per cent of the average policy text concerns resilience-related goals or instruments, driven particularly by adaptability and transformability considerations. Our explorative correlational analysis indicates that policy design spac-es characterized by political openness, economic wealth, high arable land shares, low export shares, and limited oil rents might be conducive to high resilience orientation. These findings contribute to a better understanding of the role of resilience concepts in global bioeconomy policy making. |
| Date: | 2023–11–16 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:5xzwf_v1 |
| By: | Lei Nie (Cooperative Innovation Center for Transition of Resource-based Economies and Research Institute of Resource-based Economic Transformation and Development, Shanxi University of Finance and Economics, Taiyuan, China); Zhenzhen Ren (Research Institute of Resource-based Economic Transformation and Development, Shanxi University of Finance and Economics, Taiyuan, China); Yanrui Wu (Department of Economics, University of Western Australia, Perth, Australia); Qizhou Luo (Department of Economics, University of Nevada, Reno, USA) |
| Abstract: | This study aims to investigate the repercussions of urban industrial land misallocation on green total factor productivity within the context of China’s Yellow River Basin regions. Utilizing data from 99 prefecture-level cities over the period from 2007 to 2020, the analysis reveals that the misallocation of urban industrial land exhibits regional variations and exerts a significant and persistent negative influence on green total factor productivity, with notable regional disparities. Further analysis shows the mechanism of this effect is the obstacle to urban innovation due to industrial land misallocation. In addition, education expenditure plays a moderating role both directly and indirectly. These findings imply the need to continuously improve the performance evaluation and financial system of local governments, reduce government intervention and make use of the market mechanism in the allocation of urban industrial land. |
| Keywords: | industrial land misallocation, green total factor productivity, moderated mediation model, China |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:uwa:wpaper:24-05 |
| By: | Philip Mulder; Yanjun Liao |
| Abstract: | Understanding why so few homeowners insure their flood risk is important for understanding how increasing flood risk could affect financial markets. |
| Date: | 2024–07–24 |
| URL: | https://d.repec.org/n?u=RePEc:ofr:ofrblg:24-08 |
| By: | Floreani, Vincent Arthur; Rama, Martin G. |
| Abstract: | Disasters are frequent and clearly harmful in developing countries, but precisely estimating their overall cost and distributional impact is challenging. This paper proposes a microsimulation approach to do so rapidly, borrowing concepts from both poverty analysis and urban economics. Because housing prices reflect the present value of a specific bundle of living conditions, local earnings opportunities, and local access to services, their change in the aftermath of a disaster can be interpreted as a measure of the welfare cost incurred by households. A hedonic pricing function is used to estimate such changes based on the destruction experienced by the dwellings themselves, but also on the overall destruction suffered by their surrounding areas. The first element captures the damage from worse living conditions, whereas the second captures the loss from diminished earnings opportunities and access to services. The proposed approach is illustrated by estimating the cost of the 2015 Gorkha earthquakes in Nepal. Overall, the estimated impact is comparable to that from the official assessment. But its spatial distribution is significantly different due to the pivotal influence of neighborhood effects. |
| Date: | 2024–01–12 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10668 |
| By: | Tobón-Cuenca, Juan Pablo; De La Fuente Solari, Jacinta; Rojas, Mariana González; Ayala, Renata Cavazos; Sotelo, Saragoza Nieves Ccarhuas; Palencia-Sánchez, Francisco (Pontificia Universidad Javeriana) |
| Abstract: | Food insecurity is defined as the “impossibility of not being able to buy enough food or nutritious food for general health and well-being”. According to PAHO, this problem has evidenced an increase in the regions of Latin America and the Caribbean, which led to the fact that between 2019 and 2021 the number of hungry people in the region has increased by 13.2 million, reaching a total of 56.5 million hungry people in 2021. This situation has affected the population in general, including school children. Faced with this problem, the implementation of a single isolated public policy would not allow a definitive solution, so it must be approached from multiple aspects in order to mitigate the impact of this on society. A clear example is the measure carried out in Colombia, which consisted of a Protocol for urban and peri-urban agroecological agriculture in public spaces. In this way, a single public health measure was obtained with an environmental, population and economic impact, which can be developed to mitigate food insecurity in schoolchildren. |
| Date: | 2024–05–14 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:ftjvz_v1 |
| By: | Ruottunen, Sonja |
| Abstract: | This article examines the wellbeing implications of activation policies, focusing on the lived experiences of long-term unemployed jobseekers with public employment services. Using a phenomenological approach and the theory of sustainable wellbeing as a framework, the article explores how activation services function as either need satisfiers or barriers across four well-being dimensions: having, loving, doing, and being. Drawing on 24 individual and 4 focus group interviews in the city of Espoo in Finland, the findings highlight the potential of group-form services enhance wellbeing, particularly in the doing dimension through providing meaningful activity and fostering a sense of autonomy and capability. At best, providing meaningful activity could lead to improvements in the being dimension of wellbeing, such as improved self-image and functional ability, creating a self-reinforcing circle of wellbeing. However, to offer successful need satisfiers, group form services had to also support the loving dimension by offering experiences of social relatedness. Additionally, the interviewees lived experiences highlight conditionality as a need barrier, as jobseekers may prioritize maintaining basic material needs over engagement, fearing benefit loss. Ultimately, the article argues for a holistic approach to welfare policy design, considering the interplay of different wellbeing needs to create more inclusive support structures. |
| Date: | 2025–02–19 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:xgn3v_v1 |
| By: | Clément Nedoncelle (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04926510 |
| By: | Mansoori, Issa |
| Abstract: | By framing development as an emergent property of collective consciousness, this paper provides a fresh epistemological lens to address local and global common challenges, such as inequality, social, cultural, and ecological degradation, and resource management through commoning. The paper argues for the ‘new commons’, reimagining the concept of development by integrating insights from the philosophy and neuroscience of consciousness. Moving beyond economic conventional and institutionalist paradigms, it explores how development, like consciousness, functions as an interconnected and emergent system that transcends the sum of its parts. Countering neoliberal ideologies and prioritizing collective intention instead of pluralistic action, ‘new commons’ can be defined from a different perspective. Also, distinct from Ostrom’s common resource management model, the new commons framework emphasizes the societal construction of shared spaces and values through collective consciousness. |
| Keywords: | New commons, Development, Epistemology, Economic goods |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:312282 |
| By: | Ruiz (Dir.), María del Pilar (FEDESARROLLO); Núñez, Jairo (FEDESARROLLO); Repetto, Elena; Ezpeleta, Sorne; Cárdenas, Andrés; Franco, Gabriela; Hincapié, Julieth; Bateman, Andrés |
| Abstract: | En el marco del proyecto se realizaron diez (10) estudios de mercado para: 1) café verde, 2) cacao seco en grano, 3) leche, 4) quesos frescos, 5) caucho natural, 6) aguacate, 7) plátano, 8) açaí, 9) ají y 10) miel de abejas, en los mercados de: a) Estados Unidos, b) Unión Europea, c) Comunidad Andina de Naciones, d) Emiratos Árabes Unidos y e) China, así como las posibilidades de exportación y de sustitución de importaciones en el mercado interno colombiano. Los estudios proporcionan una visión integral de los mercados ofreciendo perspectivas valiosas para productores, comercializadores y formuladores de políticas en Colombia, pero especialmente para el Programa de Agricultura Sostenible de USAID, ejecutado por PALLADIUM. Los estudios tuvieron énfasis en productos sostenibles, certificados y trazables, y combinaron el análisis cuantitativo con el cualitativo, mediante el procesamiento de bases de datos de producción, consumo y comercio exterior desde 2012 y la realización de más de 70 entrevistas con actores relevantes de las cadenas de valor. Los estudios presentan los cálculos de la demanda en los mercados nacionales e internacionales, con un énfasis especial en la exploración de las oportunidades para los productos sostenibles. Asimismo, se estudiaron los indicadores y tendencias del consumo en mercados nacionales e internacionales de los productos convencionales y sostenibles, se llevó a cabo un análisis de los precios (estacionalidades, ventanas, tendencias) y de los países competidores referentes para Colombia, así como un estudio de la oferta colombiana. Los estudios presentan hallazgos que se entrecruzan y se complementan y que son el resultado del procesamiento y triangulación de múltiples fuentes de información, cuantitativa y cualitativa, y, primaria y secundaria. |
| Keywords: | Mercados Agropecuarios; Mercados de Productos Sostenibles; Mercados de Productos Trazables |
| JEL: | Q10 Q11 Q13 Q17 Q21 Q27 |
| Date: | 2024–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:col:000124:021056 |