nep-env New Economics Papers
on Environmental Economics
Issue of 2023‒11‒06
75 papers chosen by
Francisco S. Ramos, Universidade Federal de Pernambuco

  1. Natural Disaster Costs in Australia By Dhillon, Liam
  2. Carbon Taxes: Many Strengths but Key Weaknesses By Roger H. Gordon
  3. From broadband deployment to climate action: Key considerations in the development of climate policies across OECD countries By Palmer, Sarah Kate; Rowsell, Joe; Schmidt, Stephen
  4. Adoption and impacts of agricultural technologies and sustainable natural resource management practices in fragile and conflict affected settings: A review and meta-analysis By Nshakira-Rukundo, Emmanuel; Tabe-Ojong, Martin Paul Jr.; Gebrekidan, Bisrat Haile; Agaba, Monica; Surendran-Padmaja, Subash; Dhebibi, Boubaker
  5. Divestment and Engagement: The Effect of Green Investors on Corporate Carbon Emissions By Kahn, Matthew E.; Matsusaka, John G.; Shu, Chong
  6. The economics of tropical deforestation By Balboni, Clare; Berman, Aaron; Burgess, Robin; Olken, Benjamin A.
  7. People can understand IPCC visuals and are not influenced by colors By Battocletti, Vittoria; Romano, Alessandro; Sotis, Chiara
  8. Do shared E-bikes reduce urban carbon emissions? By Li, Qiumeng; Fuerst, Franz; Luca, Davide
  9. To what extent are temperature levels changing due to greenhouse gas emissions? By John K. Dagsvik; Sigmund H. Moen
  10. INDONESIA’S CLIMATE POLICY By Popova, Irina (Попова, Ирина)
  11. How Much Will It Cost to Achieve the Climate Goals in Latin America and the Caribbean? By Galindo Paliza, Luis Miguel; Hoffmann, Bridget; Vogt-Schilb, Adrien
  12. Ecosystem Services Valuation for supporting Sustainable Life Below Water By Phoebe Koundouri; George Halkos; Conrad Landis; Angelos Alamanos
  13. Climate change and carbon policy: A story of optimal green macroprudential and capital flow management By Le, Anh H.
  14. Assessing the Macroeconomic Implications of Climate Change On Indian Economy By Mishra, Mukesh Kumar
  15. Lâécofiscalité comme outil de résilience et dâadaptation aux changements climatiques By Jean-Philippe Meloche
  16. Market-Based Approaches to Achieve Australia’s Emissions Reduction Targets By McFadzean-Lodge, Liam
  17. Unlock the Change. A Literature Review on Barriers Limiting SME Sustainable Transition. By Elisa Errico
  18. Unconventional Environmental Theories in the Face of Climate Change and Biodiversity Loss: Re-examination of Deep Ecology, VHEMT, and Primitivism By La, Viet-Phuong; Nguyen, Minh-Hoang; Vuong, Quan-Hoang
  19. New Challenges for the Russian Energy Industry By Potashnikov, Vladimir (Поташников, Владимир); Levakov, Pavel (Леваков, Павел)
  20. The impact of spectrum policy on carbon emissions By Zagdanski, Jakub; Castells, Pau
  21. Global Economic Impacts of Physical Climate Risks By Roshen Fernando; Caterina Lepore
  22. Seizing sustainable growth opportunities from tidal stream energy in the UK By Pia Andres; Ralf Martin; Esin Serin; Arjun Shah; Anna Valero
  23. Flächennutzung und Flächennutzungsansprüche in Deutschland By Osterburg, Bernhard; Ackermann, Andrea; Böhm, Jonas; Bösch, Matthias; Dauber, Jens; Witte, Thomas de; Elsasser, Peter; Erasmi, Stefan; Gocht, Alexander; Hansen, Heiko; Heidecke, Claudia; Klimek, Sebastian; Krämer, Christine; Kuhnert, Heike; Moldovan, Aura; Nieberg, Hiltrud; Pahmeyer, Christoph; Plaas, Elke; Rock, Joachim; Röder, Norbert; Söder, Mareike; Tetteh, Gideon; Tiemeyer, Bärbel; Tietz, Andreas; Wegmann, Johannes; Zinnbauer, Maximilian
  24. Ãtude sur la mise en Åuvre dâoutils dâécofiscalité au service de la conservation et de lâadaptation aux changements climatiques dans les basses-terres du Saint-Laurent By Jean-Philippe Meloche; Cedric Bourbonnais; Arnaud Dragicevic; Jérôme Dupras; Andrew Gonzalez; Tejasvi Hora; Noémie Lacroix; Julie Lebert; Justin Leroux; Kyle Martins; Fanny Maure; Brigitte Milord; François Vaillancourt; Françoise Vanoverbeke; Sylvia Wood
  25. Flood Risk Mapping and the Distributional Impacts of Climate Information By Joakim A. Weill
  26. Increasing inequality between countries in key renewable energy costs By Barbrook-Johnson, Peter; Tankwa, Brendon
  27. Liberalizing Markets for Environmental Goods and Services By Lee, Jukwan
  28. Fueling Financial Stability: The Financial Impact of U.S. Renewable Fuel Standard By Karel Janda; Jan Sila; David Zilberman
  29. Green investing, information asymmetry, and capital structure By Li, Shasha; Yang, Biao
  30. Review of approaches to ecological and economic modeling and assessment of the effects of the development of transport and transport infrastructure on environmental indicators of territories By Rostislav, Ksenia (Ростислав, Ксения); Evdokimov, Dmitry (Евдокимов, Дмитрий)
  31. Greenhouse Gas Emissions Associated with Argentina's Exports: A Decomposition Exercise By Jalile, Ileana Raquel; Moncarz, Pedro E.
  32. Review on Decarbonizing the Transportation Sector in China: Overview, Analysis, and Perspectives By Jiewei Li; Ling Jin; Han Deng; Lin Yang
  33. Responses to Temperature Shocks: Labor Markets and Migration Decisions in El Salvador By Ibáñez, Ana María; Quigua, Juliana; Romero, Jimena; Velásquez, Andrea
  34. Institutions, Comparative Advantage, and the Environment By Joseph S. Shapiro
  35. Preferred design elements of the energy transition: From the perspective of households By Breitschopf, Barbara; Büttner, Isabelle; Burghard, Uta
  36. Flood Risk Mapping and the Distributional Impacts of Climate Information By Joakim Weill
  37. Green macrofinancial regimes By Gabor, Daniela; Braun, Benjamin
  38. Comparative legal analysis of Green Finance market regulation in OECD countries and in Russia: present experience and harmonization challenges By Levashenko, Antonina (Левашенко, Антонина); Ermokhin, Ivan (Ермохин, Иван)
  39. What would happen if we banned billionaires? By Jain, Parth
  40. Urban water security: Assessing the impacts of metering and pricing in Aotearoa New Zealand By Thomas Benison; Julia Talbot-Jones
  41. Buen Vivir: an Opportunity to Re-think the Development and Sustainability Model By Maria Chiara Fatigato
  42. Actuarial Implications and Modeling of Yellow Virus on Sugar Beet After the EU's Ban on Neonicotinoids and Climate Change By Martial Phélippé-Guinvarc; Jean Cordier
  43. Exposure or Income? The Unequal Effects of Pollution on Daily Labor Supply By Hoffmann, Bridget; Rud, Juan Pablo
  44. Uncertainty and Climate Change: The IPCC approach vs Decision Theory By Anastasios Xepapadeas
  45. Austria. The 20th Austrian Trade Union Federation congress and climate change: towards a unionism for social change? By Kevin Guillas-Cavan
  46. IPCC - Nachdenkliches zur Klimaökonomik By Pies, Ingo
  47. Navigating Uncertainty in ESG Investing By Jiayue Zhang; Ken Seng Tan; Tony S. Wirjanto; Lysa Porth
  48. Securing future-fit jobs in the green transformation: A policy framework for industrial policy By Hafele, Jakob; Le Lannou, Laure-Alizée; Rochowicz, Nils; Kuhls, Sonia; Gräbner-Radkowitsch, Claudius
  49. The Impact of the Energy Conservation Law on Enterprise Energy Efficiency: Quasi-Experimental Evidence from Chinese Firms By Yu, Hongwei; Chen, Wenjin; Wang, Xinyi; Delina, Laurence; Cheng, Zhiming; Zhang, Le
  50. The impact of high temperatures on performance in work-related activities By Matteo Picchio; Jan van Ours
  51. Innovativeness, innovation adoption and priming: Nudging farmers in a large-scale randomized experiment in France By Douadia Bougherara; Lea Gosset; Raphaële Préget; Sophie Thoyer
  52. 'Shop Until You Drop': the Unexpected Effects of Anti-consumerism and Environmentalism By Giovanni Maccarrone; Marco A. Marini; Ornella Tarola
  53. The Environmental Cost of Easy Credit: The Housing Channel By Manuel Adelino; David T. Robinson
  54. Will economic growth be sufficient to end global poverty?: New projections of the UN Sustainable Development Goals By Arief Anshory Yusuf; Zuzy Anna; Ahmad Komarulzaman; Andy Sumner
  55. The Political Economy of Commitment to Policies By Josse Delfgaauw; Otto H. Swank
  56. Investigating Inefficiencies in the German Rental Housing Market: The Impact of Disclosing Total Costs on Energy Efficiency Appreciation By Lisa Sieger
  57. The political economy of food system transformation: Pathways to progress in a polarized world: Synopsis By Resnick, Danielle, ed.; Swinnen, Johan, ed.
  58. Determinants of Agricultural Fires: An Aggregative Games Approach By Wilfredo L. Maldonado; Jessica A. Barbosa
  59. Technology adoption constraints and Laser Land Levelling: evidence from Karnataka, India By Lisa Capretti
  60. Actuarial Implications and Modeling of Yellow Virus on Sugar Beet After the EU's Ban on Neonicotinoids and Climate Change By Martial Ph\'elipp\'e-Guinvarc; Jean Cordier
  61. CO2-Bepreisung in Deutschland: Kenntnisstand privater Haushalte im Jahr 2022 By Eßer, Jana; Frondel, Manuel; Sommer, Stephan; Wittmann, Julia
  62. Vehicle Choice Modeling for Light-, Medium-, and Heavy-Duty Zero-Emission Vehicles in California By Burke, Andrew; Zhao, Jingyuan; Miller, Marshall; Fulton, Lewis
  63. Water Bill Perception in Brazil: Do Households Get It Right? By Pérez Urdiales, María; Libra, Jesse Madden; Machado, Kleber; Serebrisky, Tomás; Solís, Ben
  64. Towards Sustainability of the Greek Port Sector - The Case Study of Lavrio By Phoebe Koundouri; Maria Christantoni; Conrad Landis; Maria Loloni; Socratis Oikonomidis; Angelos Plataniotis
  65. Exploring the Link Between Diet and Sustainability in Europe: A Focus on Meat and Fish Consumption By Diana Kmetkova; Milan Scasny; Iva Zverinova; Vojtech Maca
  66. Personalized Incentives with Constrained Regulator’s Budget By Lucas Javaudina; Andrea Araldo; André de Palma
  67. Detection of Phase Transitions in Discourse Networks of Sustainability Transitions By Vandenhole, Kimberley; Garic, Kristijan; Leifeld, Philip
  68. Do Wind Turbines Have Adverse Health Impacts? By Krekel, Christian; Rode, Johannes; Roth, Alexander
  69. Natural Resource Windfalls In Nonproducing Areas By Ome, Alejandro; Pérez, Javier
  70. Kingfisher’s GHG emission reduction plan By Vuong, Quan-Hoang
  71. The Growth, Geography, and Implications of Trade in Digital Products By Viktor Stojkoski; Philipp Koch; Eva Coll; Cesar A. Hidalgo
  72. Oil price shocks and energy transition in Africa By Tii N. Nchofoung
  73. DIRECTIONS OF AGRICULTURAL DEVELOPMENT IN THE REGIONS OF THE RUSSIAN RURAL PERIPHERY By Nikulin, Alexander (Никулин, Александр); Gusakov, Timur (Гусаков, Тимур); Trotsuk, Irina (Троцук, Ирина)
  74. Disentangling Small-Scale Solar Photovoltaic Adoption: A Spatial Analysis of Decision Factors and Localized Interactions in Germany By Tobias Stein; Lisa Sieger; Christoph Weber
  75. Évaluation d’impact d’un projet d’adduction en eau potable à Kinshasa. Rapport complet. By Camille Saint-Macary; Komlavi II Adjegan; Flore Gubert; Virginie Comblon; Benoit Marion; François Roubaud

  1. By: Dhillon, Liam (Monash University)
    Abstract: As climate change continues to amplify the incidence of extreme weather events, policymakers are increasingly cognizant of the mounting financial burdens brought by a warming world. This paper examines the costs which have followed natural disasters in Australia between 1970-2022, utilising data from the Insurance Council of Australia and the Australian Institute for Disaster Resilience. The financial impact of disasters is estimated by applying loss ratios to insurance claim data and overlaying mortality and injury costs. An autoregressive integrated moving average model is then applied to forecast these costs out to 2030. The results show an average annual cost of between $2.9 billion to $6.7 billion between 1970-2022 and highlight the tendency for large-scale events to drive the majority of losses, with events in the top decile of costs accounting for 68% of all losses incurred in the period. The scale and volatility of costs following extreme weather events reinforces the need for both physical and fiscal preparedness of governments in meeting the economic challenges presented by climate change.
    Keywords: Climate Change ; Global Warming ; Natural Disaster ; Economic Costs ; Disaster Management ; Climate Policy ; Environmental Policy JEL classifications: Q51 ; Q54 ; Q58
    Date: 2023
  2. By: Roger H. Gordon
    Abstract: There is a consensus among economists that a carbon tax is the best approach for addressing the effects of CO2 emissions on the global climate. However, past international agreements on climate change instead specify caps on emissions (a quantity target) for each country. This paper explores several advantages of such use of quantity targets. For one, if a country were to impose a carbon tax at a rate high enough to correct for global externalities, this rate would far exceed the rate in that country’s own self-interest. The result is an incentive to make use of other domestic government policies to encourage greater emissions, undercutting the intended abatement under a carbon tax. A quantity target instead by construction caps emissions. Second, the paper argues that a quantity target can better insure that global warming remains below two degrees Celsius, given the uncertainties faced regarding the response to any given carbon tax rate. Third, the set of quantity targets set for each country can more flexibly be adjusted to ensure that most countries benefit from participating in a global accord, while still allowing efficient patterns of abatement by giving countries credit for cross-border abatement efforts.
    JEL: H20 H22 H3 Q54
    Date: 2023–10
  3. By: Palmer, Sarah Kate; Rowsell, Joe; Schmidt, Stephen
    Abstract: This research paper examines an underexplored facet of climate change mitigation - digital climate policies. Despite empirical evidence demonstrating the potential of broadband networks to substantially reduce greenhouse gas emissions (GHGe), these networks are conspicuously absent from the climate policies of G7 countries. To address this critical omission, the paper investigates three key areas: the countries and sectors with the greatest potential for adopting digital climate policies; the effectiveness of digital climate policies in reducing GHGe under various economic and social conditions; and the barriers hindering the development of such policies. Utilizing a mixed-methods approach, the study aims to provide a comprehensive understanding of the role digital climate policy can play in climate change mitigation, fostering an international community of practice and offering robust data for further empirical research. The findings of this paper hold significant implications for the design and implementation of climate policies in advanced economies.
    Keywords: Telecommunications, Broadband, 5G networks, 5G solutions, digitization, telecommunications policy, climate change, digital policy, climate change policy
    Date: 2023
  4. By: Nshakira-Rukundo, Emmanuel; Tabe-Ojong, Martin Paul Jr.; Gebrekidan, Bisrat Haile; Agaba, Monica; Surendran-Padmaja, Subash; Dhebibi, Boubaker
    Abstract: Climate change and conflicts co-exist in many countries with significant welfare and socio-environmental implications. Different approaches are being promoted to adapt and build resilience to these fragilities including the adoption of sustainable farm practices that have the potential to increase agricultural productivity and maintain environmental sustainability. We undertake a systematic review and perform a meta-analysis to understand and synthesize the adoption and impacts of agricultural technologies and natural resource management practices with a special attention to fragile and conflict affected settings. We employ state of the art machine learning methods to enable process and selection of appropriate papers from a universe of over 78, 000 papers from leading academic databases. We find that studies on adoption and impact of agricultural technologies and natural resource management practices are highly clustered around Ethiopia and Nigeria. We do not find any studies on Small Island States. We observe a wide array of characteristics that influence adoption of these technologies. Of the over 1400 estimates of determinants collected, majority predict input technologies while very few studies and estimates are found in relation to risk management and mechanisation technologies. Our meta-analysis shows an average effect size of 7 - 9% for the different technologies and practices. For the outcomes: land productivity, food security and household welfare, we obtain effect sizes of 6, 8 and 9% respectively. We do not observe much in terms of publication bias. Both climate and conflict vulnerability not only cause far more food insecurity, poverty, and degradation of the environment on their own but also reinforce each other through the climate change – conflict linkage. For these detrimental effects to be curtailed, utilisation of climate-smart agricultural technologies and natural resource management practices need to be encouraged. We thus lend credence to the development, dissemination and upscaling of these sustainable practices. We observe a lot of space for growth and adoption of these technologies.
    Keywords: technology adoption; natural resources management; fragility; conflicts; climate change; impact resilience; agricultural technology; mechanization; food security; poverty
    Date: 2023
  5. By: Kahn, Matthew E. (University of Southern California); Matsusaka, John G. (University of Southern California); Shu, Chong (University of Utah)
    Abstract: This paper studies whether green investors can influence corporate greenhouse gas emissions through capital markets, either by divesting their stock and limiting polluters' access to capital, or holding polluters' stock and engaging with management. We focus on public pension funds, classifying them as green or non-green based on which political party controlled the fund. To isolate the causal effects of green ownership, we use exogenous variation caused by state-level politics that shifted control of the funds and portfolio rebalancing in response to returns on non-equity investment. Our main finding is that companies reduced their greenhouse gas emissions when stock ownership by green funds increased and did not alter their emissions when ownership by non-green funds changed. We find evidence that ownership and constructive engagement was more effective than confrontational tactics such as voting or shareholder proposals. We do not find that companies with green investors were more likely to sell off their polluting facilities (greenwashing). Overall, our findings suggest that (a) corporate managers respond to the environmental preferences of their investors; (b) divestment in polluting companies may be counterproductive, leading to greater emissions; and (c) private markets may be able to address environmental challenges without explicit government regulation.
    Keywords: corporate decarbonization, divestment, engagement, investors
    JEL: G11 Q54
    Date: 2023–10
  6. By: Balboni, Clare; Berman, Aaron; Burgess, Robin; Olken, Benjamin A.
    Abstract: Two factors have elevated recent academic and policy interest in tropical deforestation: first, the realization that it is a major contributor to climate change; and second, a revolution in satellite-based measurement that has revealed that it is proceeding at a rapid rate. We begin by reviewing the methodological advances that have enabled measurement of forest loss at a fine spatial resolution across the globe. We then develop a simple benchmark model of deforestation based on classic models of natural resource extraction. Extending this approach to incorporate features that characterize deforestation in developing countries—pressure for land use change, significant local and global externalities, weak property rights, and political economy constraints—provides us with a framework for reviewing the fast-growing empirical literature on the economics of deforestation in the tropics. This combination of theory and empirics provides insights not only into the economic drivers and impacts of tropical deforestation but also into policies that may affect its progression. We conclude by identifying areas where more work is needed in this important body of research.
    Keywords: climate change; environmental economics; tropical deforestation; environmental degradation; biodiversity loss; natural resource management; land use change; remote sensing; externalities; common-property resources; political economy; Graduate Research Fellowship under grant 1745302; Advanced Grant 743278
    JEL: F18 H23 O13 O40 Q23 Q56 Q57
    Date: 2023–09–01
  7. By: Battocletti, Vittoria; Romano, Alessandro; Sotis, Chiara
    Keywords: climate change; IPCC report; climate visuals; colors; framing; visuals; carbon tax; REF fund
    JEL: J1
    Date: 2023–09–20
  8. By: Li, Qiumeng; Fuerst, Franz; Luca, Davide
    Abstract: Under the threat of climate change, many global cities nowadays are promoting shared commuting modes to reduce greenhouse gas emissions. Shared electric bikes (e-bikes) are emerging modes that compete with bikes, cars, or public transit. However, there is a lack of empirical evidence for the net effect of shared e-bikes on carbon emissions, as shared e-bikes can substitute for both higher carbon emissions modes and cleaner commuting modes. Using a large collection of spatio-temporal trajectory data of shared e-bike trips in two provincial cities (Chengdu and Kunming) in China, this study develops a travel mode substitution model to identify the changes in travel modes due to the introduction of shared e-bike systems and to quantify the corresponding impact on net carbon emissions. We find that, on average, shared e-bikes decrease carbon emissions by 108–120 g per kilometre. More interestingly, the reduction effect is much stronger in underdeveloped non-central areas with lower density, less diversified land use, lower accessibility, and lower economic level. Although the actual carbon reduction benefits of shared e-bike schemes are far from clear, this study bears important policy implications for exploring this emerging micro-mobility mode to achieve carbon reduction impacts.
    Keywords: carbon emissions; E-bikes; micro-mobility; sharing economy; substitution effects; yrban context
    JEL: J1
    Date: 2023–10–01
  9. By: John K. Dagsvik (Statistics Norway); Sigmund H. Moen
    Abstract: Weather and temperatures vary in ways that are difficult to explain and predict precisely. In this article we review data on temperature variations in the past as well possible reasons for these variations. Subsequently, we review key properties of global climate models and statistical analyses conducted by others on the ability of the global climate models to track historical temperatures. These tests show that standard climate models are rejected by time series data on global temperatures. Finally, we update and extend previous statistical analysis of temperature data (Dagsvik et al., 2020). Using theoretical arguments and statistical tests we find, as in Dagsvik et al. (2020), that the effect of man-made CO2 emissions does not appear to be strong enough to cause systematic changes in the temperature fluctuations during the last 200 years.
    Keywords: Global climate models; Climate change; Temperature analysis; Fractional Gaussian noise; Long-range dependence
    JEL: C22 C46 Q54
    Date: 2023–09
  10. By: Popova, Irina (Попова, Ирина) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: This paper studies Indonesia’s climate policy and its transformation in the context of the geopolitical and economic crisis. Indonesia is one of the world's fastest growing economies and a major emitter. Its actions to combat climate change will facilitate achievement of Paris goals globally. In addition, the country is playing an increasing role in developing the tools of global economic governance, including in the field of climate. The purpose of the study is to distinguish the main priorities and directions of Indonesia's climate policy and their transformation. Based on the results of the study, the authors conclude that Indonesia is demonstrating its commitment to the goals of decarbonization, showing its readiness to introduce even the strictest instruments, including carbon pricing. International partners need to support Indonesia's aspirations and efforts as they advance the achievement of the Paris goals. The principle of common and differentiated responsibilities enshrined in the UNFCCC processes takes into account the national context, therefore, given the centrality of coal to the economic development model and the traditionally high share of emissions from land and forest use, Indonesia's strategy and policy can be considered ambitious.
    Keywords: Indonesia, climate policy, restrictions and taxes, Indonesian green taxonomy, green cover, Just Energy Transition Partnership
    JEL: F52 F53 O38
    Date: 2023–08–02
  11. By: Galindo Paliza, Luis Miguel; Hoffmann, Bridget; Vogt-Schilb, Adrien
    Abstract: Latin America and the Caribbean must respond to the challenge of climate change while making progress with other sustainable development goals. How much will it cost to meet climate change goals in this context? This work reviews the evidence on the costs of meeting the goals the goals of the Paris Agreement and the sources of finance available to do so in the region. Its main thesis is that climate action does not consist solely or primarily of additional spending, but also requires a massive redirection of existing financial flows. The climate goals cannot be achieved without addressing other sustainable development goals intrinsically related to climate, such as those related to energy, transportation, water, agriculture, and ecosystem conservation, among others. Furthermore, climate action is closely linked to social spending since social conditions such as poverty, inequality, and lack of access to basic health services exacerbate vulnerability to climate change. Finally, the transition to a decarbonized and resilient economy must be fair. A so-called just transition means maximizing socioeconomic benefits, minimizing, or compensating transition costs, and involving all affected parties in decision-making processes. Consequently, climate action is also linked to competitiveness, education levels, labor markets, and social institutions. We find that responding to the climate crisis requires annual spending on the provision of infrastructure services of between 2% to 8% of GDP and annual spending to address a variety of social challenges of between 5% and 11% of GDP. This will involve aligning in total from 7% to 19% of annual GDP, representing from US$470 billion to US$1, 300 billion of infrastructure and social spending in 2030, with sustainable, resilient, and decarbonized development goals. The benefit of this redirection will be far greater than its costs because it will avoid the worst impacts of climate change and generate economic, social, fiscal, and environmental benefits. Specific financing sources, such as green taxes and sustainable bonds, can finance part of the effort. However, to redirect public and private spending and foreign investment into solutions consistent with climate goals, governments will also need to reform policies and regulations in all sectors. Comprehensive climate strategies can help identify the necessary transformations to move toward a resilient, carbon-neutral economy in the region by 2050. Development banks can directly finance a small part of the necessary spending and support the design and implementation of reforms to redirect existing financial flows.
    Keywords: climate change
    JEL: Q54 H51 H52 H53 H54 H55 H23
    Date: 2022–02
  12. By: Phoebe Koundouri; George Halkos; Conrad Landis; Angelos Alamanos
    Abstract: The significance of the SDGs lies in their holistic, global and interdisciplinary nature. But this nature at the same time poses significant challenges, as it is difficult to bridge the environmental with the socio-economic aspects of SDGs, in theory, practical application and policymaking. SDG14 on "life below water" consists of these aspects, as it refers to a natural/environmental system, supporting several economic activities and values, and associated with strong social and cultural characteristics. The main challenges for the achievement of a sustainable life below water are analyzed, and ways forward are discussed. Holistic and well-coordinated approaches based on systems thinking are necessary. Moreover, we argue on the role of environmental economics, as tools that can bridge environmental and socio-economic aspects, towards more accurate and insightful sustainability reporting. In particular, the potential of environmental valuation as a means to better inform SDG policies, is discussed, using the example of SDG14. The currently established frameworks for Country's Sustainability Reporting, lack metrics focusing on the economic impact of the environment and the ecosystem services' degradation or restoration rates, including ocean and marine ecosystems. Acknowledging and quantifying the costs and the benefits of ocean and marine ecosystems can lead to more effective interventions (ocean pollution prevention, climate change mitigation, fishing exploitation, biodiversity and coral reefs preservation), and to a better understanding of the human-environmental dynamics strengthening thus coordinated management and cooperation.
    Keywords: Sustainability, SDG14, Environmental Valuation, Ecosystem Services, Sustainability Reporting Frameworks.
    Date: 2023–10–17
  13. By: Le, Anh H.
    Abstract: This paper studies the macro-financial implications of using carbon prices to achieve ambitious greenhouse gas (GHG) emission reduction targets. My empirical evidence shows a 0.6% output loss and a rise of 0.3% in inflation in response to a 1% shock on carbon policy. Furthermore, I also observe financial instability and allocation effects between the clean and highly polluted energy sectors. To have a better prediction of medium and long-term impact, using a medium-large macro-financial DSGE model with environmental aspects, I show the recessionary effect of an ambitious carbon price implementation to achieve climate targets, a 40% reduction in GHG emission causes a 0.7% output loss while reaching a zero-emission economy in 30 years causes a 2.6% output loss. I document an amplified effect of the banking sector during the transition path. The paper also uncovers the beneficial role of pre-announcements of carbon policies in mitigating inflation volatility by 0.2% at its peak, and our results suggest well-communicated carbon policies from authorities and investing to expand the green sector. My findings also stress the use of optimal green monetary and financial policies in mitigating the effects of transition risk and assisting the transition to a zero-emission world. Utilizing a heterogeneous approach with macroprudential tools, I find that optimal macroprudential tools can mitigate the output loss by 0.1% and investment loss by 1%. Importantly, my work highlights the use of capital flow management in the green transition when a global cooperative solution is challenging.
    Keywords: Climate change, Environmental policy, Optimal policy, Transition risk
    JEL: Q58 E32 Q54 C11 E17 E52
    Date: 2023
  14. By: Mishra, Mukesh Kumar
    Abstract: This paper aims to assess the macroeconomic implications of climate change on the overall Indian economy, considering various sectors and key macroeconomic indicators. It examines the impact of climate change on GDP growth, employment, inflation, fiscal policy, trade, and other relevant factors. The study utilizes empirical data, economic models, and policy analysis to provide insights into the potential risks and opportunities arising from climate change in India. Furthermore, it explores policy interventions and adaptation strategies that can mitigate the adverse effects and enhance the resilience of the Indian economy in the face of climate change. To address this challenge, the policy maker must take urgent action by increasing funding commitments for sustainable Economic Growth, improving effectiveness, encouraging private sector involvement, strengthening capacity building, promoting innovation and technology transfer, Inflations and prices, Green Investment and capital flows, enhancing domestic resource mobilisation, and fostering international trade and distribution effects. Understanding the macroeconomics of climate change is crucial for policymakers, businesses, and societies to develop effective strategies for mitigating greenhouse gas emissions, adapting to the changing climate, and promoting sustainable economic development. It involves assessing the costs and benefits of different policy measures and considering the long-term implications for Indian economic stability and welfare. Overall, addressing these new and multiple shocks requires a comprehensive and holistic approach that takes into account the interconnections between different sectors, regions, and global challenges.
    Keywords: Macroeconomics, Climate Change, Green Growth, International Trade
    JEL: E5 E6 Q5 F1
    Date: 2023
  15. By: Jean-Philippe Meloche
    Abstract: → Read the full report Do ecofiscal measures exist that can contribute to the protection of natural areas in the St. Lawrence Lowlands and thus improve resilience and adaptation to climate change and the preservation of habitats for wildlife and plant species of precarious status? To answer this question, a CIRANO study (Meloche et al., 2023) proposes and analyzes two eco-tax tools based on the ecological footprint of land use: a tax and a subsidy. The authors show that in urban environments, the tax tool offers interesting potential for improving the protection of natural spaces. In agricultural areas, on the other hand, the tool works less well. As for subsidies, they are not very effective in protecting natural areas. In any case, the low level of public support shows that the road to eco-taxation in Quebec is still strewn with pitfalls. → Lire le rapport complet Existe-t-il des mesures d’écofiscalité qui peuvent contribuer à la protection des espaces naturels sur le territoire des Basses-terres du Saint-Laurent et ainsi, améliorer la résilience et l’adaptation aux changements climatiques et la préservation des habitats des espèces fauniques et floristiques à statut précaire ? Pour répondre à cette question, une étude CIRANO (Meloche et al., 2023) propose et analyse deux outils d’écofiscalité fondés sur l’empreinte écologique de l’utilisation du sol : une taxe et une subvention. Les auteurs montrent que dans les milieux urbains, l’outil de taxation offre un potentiel intéressant pour améliorer la protection des espaces naturels. Par contre, en milieu agricole, l’outil fonctionne moins bien. Quant aux subventions, elles sont peu efficaces pour protéger les espaces naturels. Dans tous les cas, le faible niveau d’appui de la population montre que le chemin à parcourir vers l’écofiscalité au Québec reste semé d’embuches.
    Keywords: eco-taxation, environmental protection, natural areas, climate change, ecological footprint, écofiscalité, taxation, protection de l'environnement, espaces naturels, changements climatiques, empreinte écologique
    Date: 2023–10–18
  16. By: McFadzean-Lodge, Liam (Monash University)
    Abstract: With Australia recently legislating a 2030 emissions reduction target, market-based approaches (such as carbon pricing) should be considered as a policy approach to achieve these reductions at least cost to the economy. This paper begins by delving into the economic theory behind carbon pricing and why it is considered the least cost emissions reduction method, then synthesises the literature on the outcomes of carbon pricing implemented in other jurisdictions to inform a potential Australian policy. This paper then explores market-based approaches in the Australian context by analysing Australia’s previous attempt to implement carbon pricing. Empirical analysis in the paper demonstrates what level of emissions reductions can be expected for different levels of carbon tax, for instance, a carbon tax of AUD$112/tCO2 would reduce emissions by 41.18% from 2005 levels by 2030 (Australia's target is 43%). These findings inform policymakers determining the best policy mix to achieve emissions reduction targets, and what level of reductions should come from a carbon price compared to other policy measures. This paper also highlights the importance of accompanying carbon pricing with policies addressing the inequality effects to increase the longevity of the policy and to avoid mistakes of previous failed attempts to implement carbon pricing.
    Keywords: climate change ; energy demand ; government policy JEL classifications: Q41 ; Q48 ; Q54
    Date: 2023
  17. By: Elisa Errico (Department of Social Sciences and Economics, Sapienza University of Rome)
    Abstract: Since the publication of the report Our Common Future of the World Commission on Environment and Development (Brundtland, 1987) governments around the world have started a reflection upon the social and environmental damages caused by a growth-oriented economic system which neglects our natural ecosystem's boundaries (Shaper, 2002; Chofreh et al., 2020; Goni et al., 2021). This has led also to the definition of sustainable development goals (SDGs) in the 2030 Agenda of United Nation, in which businesses are called to give their contribution towards sustainability (Cantele & Zardini, 2018) considering their environmental, social and economic impact (Elkington, 1998). In this scenario, Smes represent 99.8% of companies (European Commission, 2019; Neri et al., 2021) and because of their overall socio-economic and environmental impacts, play a fundamental role in order to achieve SDGs. Through a systematic literature review (SLR) on current studies, this study seeks to establish a comprehensive body of knowledge on the particular barriers to sustainability for SMEs. Thematic analysis method (TA) was used to identify key themes and classify them into four major types of barriers for SMEs (organizational constraints, individual features and beliefs, market conditions, and institutional environment). The last paragraph discusses these findings to identify under-investigated areas and proposes future paths of research, and draws the limitations of this study.
    Keywords: SME; barrier; sustainability transitions; systematic review; thematic analysis
    JEL: L25 M13 M14
    Date: 2023–05
  18. By: La, Viet-Phuong; Nguyen, Minh-Hoang; Vuong, Quan-Hoang
    Abstract: Deep Ecology, the Voluntary Human Extinction Movement (VHEMT), and Anti-Civilization Primitivism have frequently been labeled as radical environmental ideologies, owing to their relationship with activities conducted by environmental extremists. Nonetheless, given the serious concerns faced by climate change and biodiversity loss, it is critical to engage with a broad range of perspectives and techniques. Such participation allows us to have access to a greater range of perspectives and a more diverse pool of knowledge, boosting our capacity for creative problem-solving. The purpose of this essay is to reconsider the underlying concepts and principles that drive these theories, as well as to assess their relevance in tackling modern environmental issues. We think that Deep Ecology, the Voluntary Human Extinction Movement (VHEMT), and Anti-Civilization Primitivism should be called "unconventional" or "distinctive" rather than "radical, " because they primarily focus on the ontological perspective but do not urge extreme acts. Meanwhile, their distinctiveness helps increase public awareness about environmental issues and promote reflection on and rethinking of the ontological link between mankind and the natural world.
    Date: 2023–10–12
  19. By: Potashnikov, Vladimir (Поташников, Владимир) (The Russian Presidential Academy of National Economy and Public Administration); Levakov, Pavel (Леваков, Павел) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Currently many sectors of the Russian economy, including the fuel and energy sector, are undergoing structural changes. This is due both to the energy transformation (a significant change in the structure of the energy balance) and the recent events of 2022. The article analyzes how these changes will affect the Russian energy sector. Firstly, the risks of reducing natural gas exports to the EU countries are assessed. Gas supplies to the EU are a significant part of Russia's export earnings, and the supplies themselves are difficult to redirect to other directions. Secondly, it is analyzed how recent changes will affect the development of the energy sector using the example of two scenarios for the development of the energy industry before and after 2022. Finally, it is assessed how the changes that have taken place will affect the effectiveness of an active climate policy in Russia. The possibility of a reduction in domestic demand for gas in the EU or an increase in production is unlikely. However, an increase in LNG (liquefied natural gas) imports is possible, which may allow the EU to abandon natural gas imports from Russia in the coming years. EU nominal regasification capacity allows for a potential increase in EU LNG imports by 110 billion cubic meters per year. This can be done both by redirecting supplies from other countries to the EU, and by increasing production and liquefaction of LNG. As a result of an increased sanctions pressure, with a high degree of probability, without an active climate policy, the level of greenhouse gas emissions will increase significantly. In addition to climate effects and associated negative environmental impact, this also negatively affects the prospects for economic development. Thus, greater consumption of fossil fuels makes the economy more dependent on their prices and reduces the potential for an increase in the volume of export. An analysis of decarbonization scenarios has shown that because of the recent events, an active climate policy will cost more, with more modest results.
    Keywords: natural gas, climate policy, international trade, energy, decarbonization, RUTIMES, LNG, Representative Energy System
    JEL: F1 O13 Q4
    Date: 2022–11–10
  20. By: Zagdanski, Jakub; Castells, Pau
    Abstract: By assigning rights and conditions of use, spectrum policy regulates how radio frequencies can be used by mobile networks. We develop a parameterised calculator tool to estimate the impact of various spectrum policy aspects on the emissions of the mobile sector. We model the impacts during the main phase of 5G rollout (2022-2031) in representative medium-sized low-income and high-income countries. (population: 80 million). We find that the carbon footprint of the mobile sector can increase between 1% (up to 0.4 MtCO2e) as a result of fragmented 5G spectrum, and up to 9% ( up to 2.6 MtCO2e) as a result of a two year-delay to 5G assignment Importantly, we find that the potential impact on the emissions of other sectors and households as a result of lower adoption of emission-saving use cases could be many times greater. A two-year delay to assignment of 5G spectrum could lead to emissions in other sectors and households increasing by up to 37 MtCO2e.
    Keywords: Radio spectrum, spectrum policy, emissions, climate change
    JEL: Q54 Q58 D44
    Date: 2023
  21. By: Roshen Fernando; Caterina Lepore
    Abstract: This paper evaluates the global economic consequences of physical climate risks under two Shared Socioeconomic Pathways (SSP 1-2.6 and SSP 2-4.5) using firm-level evidence. Firstly, we estimate the historical sectoral productivity changes from chronic climate risks (gradual changes in temperature and precipitation) and extreme climate risks (representative of heatwaves, coldwaves, droughts, and floods). Secondly, we produce forward-looking sectoral productivity changes for a global multisectoral sample of firms. For floods, these estimates account for the productivity changes from the damage to firms’ physical capital. Thirdly, we assess the macroeconomic impact of these shocks within the global, multisectoral, intertemporal general equilibrium model: G-Cubed. The results indicate that, in the absence of additional adaptation relative to that already achieved by 2020, all the economies would experience substantial losses under the two climate scenarios, and the losses would increase with global warming. The results can be useful for policymakers and practitioners interested in conducting climate risk analysis.
    Keywords: Climate change, Climate risks, Extreme events, Macroeconomic modelling
    JEL: C51 C53 C54 C55 C68 F41 Q51 Q54
    Date: 2023–10
  22. By: Pia Andres; Ralf Martin; Esin Serin; Arjun Shah; Anna Valero
    Abstract: This is the decade for managing the immense risks of climate change, and delivery on net zero. That means rapidly increasing the share of renewable sources in our energy mix alongside a step-change in energy and resource efficiency. Energy transitions will look different in different parts of the world and will be most sustainable if countries leverage the unique opportunities offered by their local geographies to cut emissions as quickly as possible. As an island nation, the UK has a uniquely rich marine energy resource. Using this resource is an opportunity the UK cannot afford to miss as it works to fulfil its own target of net zero as well as its international commitments under the Paris Agreement. This report adds to a growing evidence base concluding that tidal stream energy presents a clear sustainable growth opportunity for the UK due to the net zero, energy security and regional growth benefits it offers. Given its predictability, tidal stream energy offers important complementarities with other renewable sources of generation and in turn, the potential to improve the overall resilience of the energy system. The report also showcases the UK's innovative specialisms in tidal stream technologies, pointing out an opportunity for the UK to export its expertise in the future to many other countries around the world that have the potential to deploy tidal stream energy - if it acts quickly to establish a strong domestic sector.
    Keywords: Green Growth, growth, policy, net zero, Technological change, employment, Economic geography, UK Economy
    Date: 2023–06–22
  23. By: Osterburg, Bernhard; Ackermann, Andrea; Böhm, Jonas; Bösch, Matthias; Dauber, Jens; Witte, Thomas de; Elsasser, Peter; Erasmi, Stefan; Gocht, Alexander; Hansen, Heiko; Heidecke, Claudia; Klimek, Sebastian; Krämer, Christine; Kuhnert, Heike; Moldovan, Aura; Nieberg, Hiltrud; Pahmeyer, Christoph; Plaas, Elke; Rock, Joachim; Röder, Norbert; Söder, Mareike; Tetteh, Gideon; Tiemeyer, Bärbel; Tietz, Andreas; Wegmann, Johannes; Zinnbauer, Maximilian
    Abstract: Agricultural land in Germany has continuously declined in recent decades. This was accompanied by an increase in settlement and transport areas as well as forest areas. This process continues. Even if the food supply in Germany is not endangered due to this development, agricultural land is a fundamentally scarce resource that is worth protecting. It must be taken into account that Germany has a global responsibility to use fertile arable land for food production and to protect it accordingly. In view of the fact that national and international sustainability goals are aimed at protecting soils and that the amount of arable land available per capita is decreasing worldwide, Germany should therefore provide an example in dealing with soil as a resource. In recent years, new land use for settlement and transport infrastructure has declined significantly. However, as a result of plans to increase construction of new housing and to expand renewable energies, especially ground-mounted photovoltaics, a sharp increase in new land use is expected by 2030. At the same time, from the perspective of biodiversity and climate protection, increasing demands are being made for the creation of near-natural habitats and carbon sinks. These are associated with land use changes (afforestation, planting of woodlands and hedges, rewetting of peatlands) or with an extensification of agricultural use. Given the numerous uncertainties, it is difficult to predict to what extent the utilised agricultural area will be allocated towards additional land requirements for affordable housing, the energy transition and natural climate protection. An estimate assuming that key goals are achieved by 2030 amounts to a decline of more than 300, 000 hectares of utilised agricultural area by 2030. The increasing demands for land are exacerbating the already existing competition between land uses. In the future, land use requirements must be carefully weighed up more closely and synergies and multiple uses of areas should be realized as far as possible. Examples of such synergies include the expansion of photovoltaics (PV) on settlement and transport areas, on rewetted peatlands or in combination with agricultural use. However, governance of PV expansion on open spaces is currently only possible to a limited extent, as planning and approval are in the hands of the municipalities and new systems are increasingly being built outside of the Renewable Energy Act. The expanded privilege under building law for ground-mounted PV on corridors along motorways and railway lines is intended to accelerate expansion. However, it promotes the conversion of agricultural land without taking advantage of the aforementioned synergies. Given the high demands on land for biodiversity and climate protection, synergies must also be realised in this area. Balancing and controlling the various land requirements without slowing down the pace of the energy transition and the transformation towards more sustainable and climate-friendly land use is a major challenge for politicians. For this purpose, a cross-target land use policy must be developed.
    Keywords: Community/Rural/Urban Development, Land Economics/Use
    Date: 2023
  24. By: Jean-Philippe Meloche; Cedric Bourbonnais; Arnaud Dragicevic; Jérôme Dupras; Andrew Gonzalez; Tejasvi Hora; Noémie Lacroix; Julie Lebert; Justin Leroux; Kyle Martins; Fanny Maure; Brigitte Milord; François Vaillancourt; Françoise Vanoverbeke; Sylvia Wood
    Abstract: → Read CIRANO PERSPECTIVES Most of the eco-fiscal measures used around the world apply to the energy and transportation sectors to reduce GHG emissions. Very little is being done to adapt to climate change, even though it is a real threat to habitat for species at risk. In Quebec, the St. Lawrence Lowlands are experiencing anthropogenic pressures that threaten the ecological balance. What is more, this region has been affected by major flooding in recent years, hence the importance of adaptation measures in terms of land management. In this exploratory study, the authors examine the contribution of eco-fiscal measures to the protection of natural areas in the St. Lawrence Lowlands. These measures would aim to improve resilience to climate change and help preserve of habitats for wildlife and flora species with precarious status. They evaluate the feasibility of two innovative eco-fiscal measures based on the ecological footprint of land use and measure their effects across Quebec. One is a tax measure and the other is a subsidy. Two main findings emerge from the analyses. First, the technical feasibility of the land use tax is demonstrated. A tax would have the desired effect of increasing urban density and adding vegetation. However, the subsidy measure is more costly and less effective in promoting the preservation and restoration of natural areas, particularly because the relationship between land area, ecological value and market value is problematic. → Lire le PERSPECTIVES CIRANO La plupart des mesures d’écofiscalité utilisées dans le monde s’appliquent aux secteurs de l’énergie et des transports afin de réduire les émissions de GES. Très peu de mesures visent l’adaptation aux changements climatiques, et ce même si ceux-ci sont une réelle menace pour les habitats d’espèces en péril. Au Québec, les basses-terres du Saint-Laurent subissent des pressions anthropiques qui menacent l’équilibre écologique. Qui plus est, cette région a été touchée par d’importantes inondations au cours des dernières années, d’où l’importance des mesures d’adaptation en matière de gestion du territoire. Dans cette étude exploratoire, les auteurs examinent la contribution des mesures d’écofiscalité à la protection des espaces naturels sur le territoire des basses-terres du Saint-Laurent. Ces mesures viseraient à améliorer la résilience aux changements climatiques et la préservation des habitats des espèces fauniques et floristiques à statut précaire. Ils évaluent la faisabilité de deux mesures écofiscales novatrices basées sur l’empreinte écologique de l’usage du sol et mesurent leurs effets à l’échelle du Québec. La première est une mesure de taxation et l’autre une mesure de subvention. Deux principaux constats émergent des analyses. D’abord, les auteurs montrent la faisabilité technique de la taxe sur l’empreinte écologique de l’usage du sol. Cette mesure aurait les effets recherchés soit de favoriser la densité urbaine et l’ajout de végétation. Par contre, la mesure de subvention est plus coûteuse et moins efficace pour favoriser la préservation et la restauration des espaces naturels, notamment parce que la relation entre superficie, valeur écologique et valeur marchande des terrains pose problème.
    Keywords: Ecotax, land usage, ecological footprint, natural areas, St. Lawrence Lowlands, Quebec, Ãcofiscalité, usage du sol, empreinte écologique, espaces naturels, basses-terres du Saint-Laurent, Québec
    Date: 2023–10–18
  25. By: Joakim A. Weill
    Abstract: This paper examines the provision of official flood risk information in the United States and its distributional impacts on residential flood insurance take-up. Assembling new data on all flood maps produced after Hurricane Katrina, I first document that updated maps decreased the number of properties zoned in high-risk floodplains and incorrectly omitted five million properties that should have been rezoned inside these areas. Removals and omissions disproportionately occurred in neighborhoods with more Black and Hispanic residents. Leveraging the staggered timing of map updates, I estimate they decreased flood insurance take-up and exacerbated racial disparities in insurance coverage. These effects are driven by beliefs about risks and regulatory constraints. Correcting flood maps could increase welfare by $20 billion annually, but past updates decreased welfare due to distorted risk and price signals.
    Keywords: Applied Econometrics; Climate Adaptation; Disaster Insurance; Environmental Inequalities; Flood Risk; Information Provision
    JEL: G52 R52 H40 Q58 R14 D40 Q54
    Date: 2023–10–11
  26. By: Barbrook-Johnson, Peter; Tankwa, Brendon
    Abstract: There is growing optimism that the energy transition will be strongly aided by the reduction in global renewable technology costs. We use trends in solar PV and onshore wind costs and related factors to explore differences between countries and consider how cost inequalities might affect the energy transition. We show that, despite average costs falling, technology cost inequality between countries is increasing over time. The impacts of this could be severe as certain countries and investors face higher costs to implement green technologies. Countries with historic developmental disadvantages, and lower emissions, face higher costs, reinforcing potential injustices in the energy transition. We also show that demand pull factors (e.g., income, ease of doing business), renewable industry competitiveness, and policy portfolios are significant explanatory factors for cost differences.
    Keywords: renewable energy, solar energy, wind energy, technology costs, just transition
    Date: 2023–10
    Abstract: The international community is striving to establish trade rules for the environmental market in order to secure a free and fair trade order and contribute to achieving carbon neutrality and sustainability. This paper examines the related discussions, reviews the current status and market openness of environmental goods and services, and analyzes the effects of environmental market regulation and liberalization on the global and Korean economies.
    Keywords: Environmental goods; Environmental services; Liberalization; Trade and Envionment
    Date: 2023–10–16
  28. By: Karel Janda (Faculty of Finance and Accounting, Prague University of Economics and Business, Prague, Czech Republic & Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Jan Sila (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); David Zilberman (Department of Agricultural and Resource Economics, University of California, Berkeley, CA)
    Abstract: Oil price shocks, which materialize in petrol prices, put severe inflationary pressures on countries that rely largely on fossil fuels, causing financial instability. The Renewable Fuel Standard (RFS) program, implemented in the USA in 2005, sanctions blending corn-based ethanol with fuel and can offset oil price shocks. RFS is a technological innovation that protects against inflationary pressures while being ecologically beneficial. We examine how global oil price changes affect US petrol costs and the resulting savings for US families by assessing the program´s effectiveness. Our findings show that blending ethanol into petrol serves as a buffer against global oil price shocks, delivering an average $0.185 per gallon savings from 2019 to 2022. This translates to $22.8 billion in annual savings for American consumers. As the global debate shifts towards sustainable energy and climate change mitigation, our findings highlight the practical benefits of diversifying energy sources, which promote both environmental sustainability and economic stability in the face of volatile commodity price shocks.
    Keywords: Financial stability, Commodities, Energy markets, Technological Innovation, Ethanol, U.S.A.
    JEL: C22 E63 Q42 Q41
    Date: 2023–02
  29. By: Li, Shasha; Yang, Biao
    Abstract: We investigate how optimal attention allocation of green-motivated investors changes information asymmetry in financial markets and thus affects firms' financing costs. To guide our empirical analysis, we propose a model where investors with heterogeneous green preferences endogenously allocate limited attention to learn market-level or firm-specific fundamental shocks. We find that a higher fraction of green investors in the market leads to higher aggregate attention to green firms. This reduces the information asymmetry of green firms, leading to higher price informativeness and lower leverage. Moreover, the information asymmetry of brown firms and the market increases with the share of green investors. Therefore, greater green attention is associated with less market efficiency. We provide empirical evidence to support our model predictions using U.S. data. Our paper shows how the growing demand for sustainable investing shifts investors' attention and benefits eco-friendly firms.
    Keywords: capital structure, climate finance, information asymmetry, rational in-attention
    JEL: D82 G11
    Date: 2023
  30. By: Rostislav, Ksenia (Ростислав, Ксения) (The Russian Presidential Academy of National Economy and Public Administration); Evdokimov, Dmitry (Евдокимов, Дмитрий) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The main theoretical and empirical approaches to modeling the interaction between socioeconomic indicators and anthropogenic load on the environment are considered. The most common approaches to measuring the environmental load on territories and population are environmental models IPAT, STIRPAT, modeling the impact of socio-economic characteristics on the environment. Extension of the models also allows taking into account the characteristics of the transportation industry and modeling their impact on the volume of emissions from road transport. According to economic studies, road infrastructure development has a dual impact on the environment. While better infrastructure can help reduce emissions from road transport, it also stimulates economic activity and travel demand, which increases emissions. The emission reduction effect of road network development is more likely to be observed in regions where infrastructure saturation exceeds the level needed to meet current, including latent, travel demand. Thus, the development of road transport infrastructure at a pace that outpaces the economic development of the region can contribute to reducing the environmental burden. In addition, approaches to analyzing causal relationships between variables and assessing the overall, direct and indirect effects of factors on ecology are discussed: structural modeling and path analysis based on the structure of a simple directed graph.
    Keywords: environmental load measurement, modeling of the impact of emissions, environmental models, effects of transport development
    Date: 2023–10–11
  31. By: Jalile, Ileana Raquel; Moncarz, Pedro E.
    Abstract: Two databases are constructed on GHG emissions associated with Argentina's international trade between 2000 and 2017, emissions derived from the production of exported goods and those associated with the international transport of exports and imports. Food, beverages, and tobacco, and agriculture, hunting, and related activities, followed by manufactures of metal and chemical products, are the main sectors that explain GHG emissions linked to exports. Petroleum, gas, and mining became less significant. The same sectors explain most of the CO2 emissions linked to the international transportation of exports. For emissions linked to the transportation of imports used in the production of exports, the main contributing sectors are those relating to industrial manufacturing. A decomposition exercise reveals that for emissions linked to the production of exports, the scale effect contributed more significantly in 2000-2011 than in 2012-2017, although in both cases its effect was positive. The composition effect was much less significant. For the emissions associated with international transportation, the main drivers were the scale, sector, and partner effects. Changes in the sector structure of exports appear to have caused more emissions between 2000 to 2011, but the opposite was observed between 2011 and 2017. In the case of emissions from international transportation, changes in the sector structure increased pollution in the case of the transportation of exports, while the opposite was the case for the transportation of imports.
    Keywords: exports
    JEL: F10 F18
    Date: 2022–04
  32. By: Jiewei Li; Ling Jin; Han Deng; Lin Yang
    Abstract: This review identifies challenges and effective strategies to decarbonize China's rapidly growing transportation sector, currently the third largest carbon emitter, considering China's commitment to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. Key challenges include rising travel demand, unreached peak car ownership, declining bus ridership, gaps between energy technology research and practical application, and limited institutional capacity for decarbonization. This review categorizes current decarbonization measures, strategies, and policies in China's transportation sector using the "Avoid, Shift, Improve" framework, complemented by a novel strategic vector of "Institutional Capacity & Technology Development" to capture broader development perspectives. This comprehensive analysis aims to facilitate informed decision-making and promote collaborative strategies for China's transition to a sustainable transportation future.
    Date: 2023–10
  33. By: Ibáñez, Ana María; Quigua, Juliana; Romero, Jimena; Velásquez, Andrea
    Abstract: By 2017, one-quarter of people born in El Salvador were estimated to be living in the U.S. We show that extreme temperatures have negatively affected agricultural production and increased international migration from El Salvador. We find that labor markets act as a transmission mechanism of the negative effects of weather shocks on agricultural workers, who react by migrating internationally or reallocating within local labor markets. However, these responses differ by landownership status and access to risk-coping mechanisms. Our results suggest that, despite the current anti-immigrant political climate, there should be a global responsibility relative to the consequences of climate change.
    Keywords: Migration;Temperature Shocks;El Salvador
    JEL: Q54 O15 J43
    Date: 2022–05
  34. By: Joseph S. Shapiro
    Abstract: This paper proposes that strong financial, judicial, and labor market institutions provide comparative advantage in clean industries, and thereby improve a country's environmental quality. Five complementary tests support this hypothesis. First, industries that depend on institutions are disproportionately clean. Second, strong institutions increase relative exports in clean industries, even conditional on environmental regulation and factor endowments. Third, an industry's complexity helps explain the link between institutions and clean goods. Fourth, a quantitative general equilibrium model indicates that strengthening a country's institutions decreases its pollution through relocating dirty industries abroad, though increases pollution in other countries. Fifth, cross-country differences in the composition of output between clean and dirty industries explain more of the global distribution of emissions than differences in the techniques used for production do. The comparative advantage that strong institutions provide in clean industries gives one under-explored reason why developing countries have relatively high pollution levels.
    JEL: F18 F55 F6 F64 H23 O4 O44 P48 Q50 Q56
    Date: 2023–10
  35. By: Breitschopf, Barbara; Büttner, Isabelle; Burghard, Uta
    Abstract: In light of the increasing climate change, policy makers have set ambitious targets for greenhouse gas emission. To achieve these targets, it is necessary to speed up the installation of renewable wind and solar power plants. This dynamic calls for an accelerated planning and permitting process with low resistance from citizens. To ensure a high acceptance of the energy transition, it is important to understand which design elements or characteristics, objectives or impacts of the energy transition are more or less preferred by citizens. This study therefore investigates what the preferred design elements for a fair and secure energy transition of German households look like. Based on literature and Energy Union objectives and policies, key dimensions are identified and then described by design elements. The dimensions are: the form of burden sharing of energy transition costs (distributional aspects), actions with respect to investment in and consumption of energy, the origin and security of energy supply and policies for a sustainable energy transition. To identify the favoured design elements, we applied a conjoint analysis. In an online survey conducted among 2000 German citizens, the respondents were asked to choose between two designs of the energy transition that are described by a design element per dimension. The results show that German households favour the polluter-pays rule for burden sharing, a regional energy supply to ensure supply security, information and appeals as policy instruments to promote the energy transition. Regarding actions, households opt for installing private photovoltaics. At the level of dimensions, the approval and refusal of the suggested burden sharing mechanisms were larger than those of the suggested energy supply design elements.
    Keywords: design elements, energy transition, preferences, burden sharing, energysecurity, investor
    Date: 2023
  36. By: Joakim Weill (Federal Reserve Board of Governors)
    Abstract: This paper examines the provision of official flood risk information in the United States and its distributional impacts on residential flood insurance take-up. Assembling all flood maps produced after Hurricane Katrina, I document that updated maps decreased the number of properties zoned in high-risk floodplains and incorrectly omitted five million properties, primarily in neighborhoods with more Black and Hispanic residents. Leveraging the staggered timing of map updates, I estimate they decreased flood insurance take-up and exacerbated racial disparities in insurance coverage. Correcting flood maps could increase welfare by $20 billion annually, but past map updates distorted risk and price signals.
    Keywords: flood risk, climate adaptation, information provision, ,
    JEL: Q54 Q58 D8 R14 G52
    Date: 2023–10
  37. By: Gabor, Daniela; Braun, Benjamin
    Abstract: Debates about climate policy have neglected the question of macrofinancial pathways to decarbonisation, not all of which are politically and environmentally viable. We propose a theory of macrofinancial regimes, understood as combinations of monetary, fiscal, and financial institutions that shape the creation and allocation of credit/money, and hence the speed and nature of the green transition. Examining recent green industrial policy initiatives, we distinguish between a weak derisking state that tweaks the risk-return profile on infrastructure assets, and a robust derisking state that intervenes directly in the organisation of production by subsidizing capital expenditure in cleantech manufacturing. Although the derisking state is hegemonic today, coordination problems and regressive distributional consequences render this regime unstable. This instability may tip societies into carbon shock therapy, or it may give rise to a big green state, capable of planning and implementing a just green transition through non-market means of coordination.
    Date: 2023–10–05
  38. By: Levashenko, Antonina (Левашенко, Антонина) (The Russian Presidential Academy of National Economy and Public Administration); Ermokhin, Ivan (Ермохин, Иван) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper analyzes the regulation of the green finance market in Russia and in the world, and also formulates proposals for the development of regulation in order to improve Russian mechanisms for sustainable (including green) development and harmonize the Russian approach to such regulation with international approaches. The relevance of the work lies in the need to develop regulation of the market for sustainable (including green) financing in Russia, taking into account the growth in the size of the global market, as well as the development of such regulation in foreign countries. The object of the research is the regulation of the market for sustainable (including green) financing in Russia and in the world. The purpose of the study is to formulate proposals for regulating the market for sustainable (including green) financing in Russia in order to improve Russian mechanisms for sustainable (including green) development and harmonize the Russian approach to such regulation with international approaches. Based on the study, the following results were obtained: an analysis was made of the approaches of foreign countries and international organizations in the field of regulation of green finance; an analysis of the regulation of green finance in Russia was carried out, inconsistencies between Russian practices of such regulation and international ones were identified. In addition, the risks that such a discrepancy creates were described; proposals for the development of market regulation in Russia were formed, taking into account the best international practices. The practical significance of the work lies in the possibility of using its results for the development of regulatory legal acts aimed at developing the regulation of the market for sustainable (including green) financing in Russia.
    Keywords: sustainable finance, green finance, international standards, responsible business conduct, OECD
    Date: 2022–11–10
  39. By: Jain, Parth
    Abstract: This essay aims to introduce a discussion into outlawing the existence of perhaps the most significant economic actors in modern society: billionaires. By reviewing literature and statistical evidence on their impact on both a macro and microeconomic level, arguments and counterarguments about possible economic outcomes and their likelihood are discussed.
    Keywords: billionaires; wealth tax; climate change; SMEs; carbon footprint
    JEL: H2 O4 O44
    Date: 2023–07–10
  40. By: Thomas Benison (Motu Economic and Public Policy Research); Julia Talbot-Jones (Victoria University of Wellington)
    Abstract: With urbanisation and climate change placing increasing pressure on water security around the world, demand-side mechanisms, such as metering and pricing, have emerged as core components of urban water management. Yet the impacts of metering and pricing on water production and consumption in Aotearoa New Zealand are not well understood. This constrains the ability of decision-makers to make targeted wellbeing improvements for the communities they serve. In this paper, we endeavour to estimate the impact of metering and pricing on urban water consumption in Aotearoa. We collect data on residential water production and consumption from 67 local councils and provide comparisons of water use across regions and over time, with particular attention given to Tauranga and Wellington. Our experience reveals the extent of the drinking water data gaps in urban areas in Aotearoa, raising questions about how evidence is being used to inform the design of urban water policy in Aotearoa and issues of public accountability.
    Keywords: Data gaps; demand management; drinking water; metering; policy; pricing
    JEL: Q21 Q25 Q28
    Date: 2023–10
  41. By: Maria Chiara Fatigato (Department of Social Sciences and Economics, Sapienza University of Rome)
    Abstract: As written in 2030 Agenda for Sustainable Development, the unsustainability of the current development model, not only on the environmental level but also on the economic and social one, is leading critical theory to deeply revise these models theorized by Western modernity. If prominent authors have already extensively questioned the risks of advanced modernity (Beck 1986 Bauman 1991; Quijano 1992; Santos 2002; Escobar 2011;), nowadays becomes necessary to extend and integrate the debate with a counterhegemonic literature. Sustainability could be considered as a central topic to understand how to reorientate the relation between nature and society, but also to become aware of the diversity of social experience in the world in this field. The case of Ecuadorian and Bolivian Constitution is remarkable in that, for the first time in a constitution, they attribute rights to nature, overcoming the western-centric way of knowing according to which nature is a considered merely as a natural resource. According to Indigenous Cosmovisions, Mother Earth is a living entity that does not belong to us, rather human beings belong to her. Over the last few years, the idea of buen vivir seems to be a valid alternative to expand the gaze on the debate on sustainability, proposing a non- anthropocentric, but rather biocentric, perspective (Monni, Pallottino 2015), without any distinction between nature and culture. Investigating the above-mentioned concepts of sustainability and buen vivir as alternative visions of society and experiences of struggle and resistance for the preservation of harmony between nature and community, through the framework of Epistemologies of the South’s literature, can allow for the realization of “the sociology of the possible” (Pellegrino, Ricotta 2020a), a sociology where a divergent vision can emerge.
    Keywords: Development, Sustainability, Buen Vivir, Cosmovision, Nature
    JEL: Y8
    Date: 2023–05
  42. By: Martial Phélippé-Guinvarc (GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université); Jean Cordier (Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)
    Abstract: Following the EU's decision to ban neonicotinoids, this article investigates the impacts of yellow virus on sugar beet yields under the ban and under current and future climates. Using a model that factors in key variables such as sowing dates, phenological stages, first aphid flight and aphid abundance, simulations are performed using long-period climate datasets as inputs. Coupled with incidence and sugar yield loss assumptions, this model allows to reconstruct the impact of yellow virus on sugar beet yields using a so called 'as if' approach. By simulating the effects of viruses over a longer period of time, as if neonicotinoids weren't used in the past, this methodology allows an accurate assessment of risks associated with yellow viruses, as well as impact of future agroecological mesures. The study eventually provides an actuarial rating for an insurance policy that compensates the losses triggered by those viruses.
    Keywords: Yellows Virus, Actuarial Rating, Beet, Climate change
    Date: 2023–08–29
  43. By: Hoffmann, Bridget; Rud, Juan Pablo
    Abstract: We use high-frequency data on fine particulate matter air pollution (PM 2.5) at the locality level to study the effects of high pollution on labor supply decisions and hospitalizations for respiratory disease in the metropolitan area of Mexico City. We document a negative, non-linear relationship between PM 2.5 and same-day labor supply, with strong effects on days with extremely high pollution levels. On these days, the average worker experiences a reduction of around 7.5% of working hours. Workers partially compensate for lost hours by increasing their labor supply on days that follow high-pollution days. Informal workers reduce their labor supply less than formal workers on high-pollution days and also compensate less on the following days. This suggests that informal workers may experience greater exposure to high pollution and greater reductions in labor supply and income. We provide evidence that reductions in labor supply due to high pollution are consistent with avoidance behavior and that income constraints may play an important role in workers' labor supply decisions.
    Keywords: Air pollution;Informal workers;Mexico
    JEL: Q52 Q53 J22 J46 I14
    Date: 2022–02
  44. By: Anastasios Xepapadeas
    Abstract: One of the most important challenges in the study of climate change and its interactions with the economy is uncertainty. The present paper looks at this uncertainty from two different points of view. The first is the way that IPCC deals with uncertainty at its report and the way that uncertainty is communicated. The IPCC approach is implemented by a combination of qualitative and qualitative methods and the use of heuristics. IPCC studies climate change its evolution and its impact in a context, which in terms of decision making approach is akin to analysis under risk. The second is the point of view of the part of decision theory that deals with uncertainty in the Knightian sense and more specially with uncertainty which is manifested in multiple probabilistic models or priors. The presence of multiple priors is associated with ambiguity aversion and misspecification concerns that necessitate the use of maxmin optimizing approaches. The IPCC and the decision theory approaches are briefly reviewed and compared seeking ways to accommodate the concept of risky parameters or impacts of the IPCC framework, to the framework of optimization under uncertainty under multiple probabilistic models.
    Keywords: Climate change, IPCC, risk, uncertainty, misspecification, ambiguity aversion
    JEL: Q54 D81
    Date: 2023–08–24
  45. By: Kevin Guillas-Cavan (IRES - Institut de recherches économiques et sociales)
    Abstract: At its 20th congress, the Austrian Trade Union Federation tackled the question of climate change for the first time. Ordinarily, it leaves such discussions to the Social Democratic Party, but a weakening of the historical links between the federation and the party may be behind this major change. Union thinking on economic matters rests on three pillars: securing workers' career trajectories, public ownership of strategic businesses and strong development of social housing.
    Abstract: Au cours de son 20e congrès, la Confédération autrichienne des syndicats s'est emparée pour la première fois de la question du changement climatique. D'ordinaire, elle laisse de tels développements au Parti social-démocrate, mais l'affaiblissement des liens historiques entre la confédération et le parti explique ce changement majeur. La réflexion syndicale dans le domaine écologique repose sur trois piliers : une sécurisation des trajectoires professionnelles des travailleurs, la propriété publique des entreprises stratégiques et un très fort développement du logement social.
    Keywords: Trade unionism, Austria, Environment, Syndicat, Autriche, Environnement
    Date: 2023–09–12
  46. By: Pies, Ingo
    Abstract: Dieser Kurztext analysiert die jüngsten Äußerungen des Weltklimarats (IPCC) zum gegenwärtigen Erkenntnisstand der Klimaökonomik und gibt Interpretationshilfen, die darauf abzielen, die kritische Urteilskraft im Umgang mit solchen Äußerungen zu stärken.
    Keywords: IPCC, Klimaökonomik, Kosten-Nutzen-Analyse, Climate Economics, Cost-Benefit Analysis
    Date: 2023
  47. By: Jiayue Zhang; Ken Seng Tan; Tony S. Wirjanto; Lysa Porth
    Abstract: The widespread confusion among investors regarding Environmental, Social, and Governance (ESG) rankings assigned by rating agencies has underscored a critical issue in sustainable investing. To address this uncertainty, our research has devised methods that not only recognize this ambiguity but also offer tailored investment strategies for different investor profiles. By developing ESG ensemble strategies and integrating ESG scores into a Reinforcement Learning (RL) model, we aim to optimize portfolios that cater to both financial returns and ESG-focused outcomes. Additionally, by proposing the Double-Mean-Variance model, we classify three types of investors based on their risk preferences. We also introduce ESG-adjusted Capital Asset Pricing Models (CAPMs) to assess the performance of these optimized portfolios. Ultimately, our comprehensive approach provides investors with tools to navigate the inherent ambiguities of ESG ratings, facilitating more informed investment decisions.
    Date: 2023–10
  48. By: Hafele, Jakob; Le Lannou, Laure-Alizée; Rochowicz, Nils; Kuhls, Sonia; Gräbner-Radkowitsch, Claudius
    Abstract: Achieving compatibility between economies and planetary boundaries poses a momentous challenge. It requires a fundamental restructuring of current industrial systems, with a dual focus on the creation and protection of green technologies and firms, as well as the redirection of workers and technologies from ecologically harmful activities to support sustainable production patterns. This paper acknowledges that during the process of green industrial restructuring, certain non-future fit sectors will inevitably decline due to regulatory requirements or reduced competitiveness. Allowing market forces to solely determine the decline of these sectors would result in extensive economic and social consequences. Instead, this paper advocates for the implementation of active industrial policies to facilitate the phasing out of non-future-fit sectors and to ensure a just transition for the workers affected. To this end, the paper introduces a data-driven political framework with two objectives: 1) identify emission-intensive sectors with limited potential to stay competitive (non-future-fit sectors) and 2) identify sectors capable of absorbing workers from declining sectors while presenting better economic potential (complementary future-fit sectors). Despite the data limitations, applying this framework in Germany and Hungary reveals two significant challenges. First, the results indicate a limited number of skill-related sectors able to absorb workers from declining industries, highlighting the reluctance of workers to adapt to the changing landscape due to the costs associated with retraining and relocation. Second, a market-driven approach to the green transformation is likely to result in gradual shifts, requiring ongoing worker retraining as other problematic sectors decline. These preliminary findings underscore the need to anticipate these challenges and prioritise worker retraining and skill development, particularly in cases where there are limited complementary future-fit sectors.
    Keywords: Green Transformation, Industrial Policy, Competitiveness, Emission Intensity, Economic Complexit
    Date: 2023
  49. By: Yu, Hongwei; Chen, Wenjin; Wang, Xinyi; Delina, Laurence; Cheng, Zhiming; Zhang, Le
    Abstract: We employ a regression discontinuity design (RDD) to investigate the causal effect of China's Energy Conservation Law (ECL) on the energy efficiency of Chinese firms. Using data from the 2018 China Employer-Employee Survey (CEES), we find that the energy regulation has a positive impact on enterprise energy efficiency. Furthermore, we observe that the effects of the regulation vary across industries, ownership types, and firm ages. We also find that energy management system (EnMS) and technological innovation are mechanisms through which the energy regulation helps improve enterprise energy efficiency. These findings underscore the importance of well-designed and effectively implemented energy regulations in fostering energy efficiency and reducing carbon emissions in the industrial sector. They also highlight the need to consider the heterogeneity of the regulatory impact when designing energy-saving policies.
    Keywords: Energy Conservation Law, energy regulation, energy efficiency, China, regression discontinuity design
    JEL: K32 Q56 Q58
    Date: 2023
  50. By: Matteo Picchio (Marche Polytechnic University); Jan van Ours (Erasmus University Rotterdam)
    Abstract: High temperatures can have a negative effect on work-related activities. Labor productivity may go down because mental health or physical health is worse when it is too warm. Workers may experience difficulties concentrating or they have to reduce effort in order to cope with heat. We investigate how temperature affects performance of male professional tennis players. We use data about outdoor singles matches from 2003 until 2021. Our identification strategy relies on the plausible exogeneity of short-term daily temperature variations in a given tournament from the average temperature over the same tournament. We find that performance significantly decreases with ambient temperature. The magnitude of the temperature effect is age-specific and skill specific. Older and less-skilled players suffer more from high temperatures than younger and more skilled players do. The effect of temperature on performance is smaller when there is more at stake. Our findings also suggest that there is adaptation to high temperatures: the effects are smaller if the heat lasts for several days.
    Keywords: Climate change, temperatures, tennis, performance, productivity
    JEL: J24 J81 Q51 Q54
    Date: 2023–10–12
  51. By: Douadia Bougherara (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Lea Gosset (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Raphaële Préget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Sophie Thoyer (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)
    Abstract: This article is an empirical contribution on measuring farmers' ability to innovate, and on the effectiveness of a nudge-type non-monetary incentive on their (stated) intention to adopt an innovation such as the French "Label bas carbone", a voluntary scheme that certifies carbon credits. We propose an original methodology for measuring farmers' capacity to innovate ("innovativeness"), adapting the scale of Goldsmith and Hofacker (1991) to the specificities of farmers' decisions in a professional setting. Based on an online survey with more than 6, 000 responses from French farmers, we validate this scale and evaluate with a randomized experiment included in the questionnaire the net impact of a priming nudge targeting the most innovative farmers. The results indicate that the nudge tested has no significant or detectable impact on the surveyed sample, leading us to discuss the effectiveness of nudges when trying to influence high-stakes decisions.
    Keywords: Innovation, Carbon farming, Nudge, Behaviour, Experiment, Innovation -Carbon farming -Nudge -Behaviour -Experiment
    Date: 2023–08–29
  52. By: Giovanni Maccarrone (Department of Social Sciences and Economics, Sapienza University of Rome); Marco A. Marini (Department of Social Sciences and Economics, Sapienza University of Rome); Ornella Tarola (Department of Social Sciences and Economics, Sapienza University of Rome)
    Abstract: In an economy where consumers are heterogeneous in their preferences over the hedonic and environmental attributes of goods on sale, we explore the effects of anti-consumerism and environ- mentalism. We show that when the environmental attributes of products come at the expense of the hedonic attributes, a higher supply of anti-consumerism and environmentalism yields the ex- pected positive effect on the environment. In contrast, when hedonic and environmental attributes are jointly met by a good, higher levels of anti-consumerism and environmentalism negatively affect the society's environmental footprint. Moreover, the impact of anti-consumerism and environmen- talism on social welfare is far from being obvious, giving rise to unexpected redistributive effects between firms and consumers.
    Keywords: environmentalism, hedonism, anti-consumerism, hedonic and environmental product attributes, vertical product differentiation.
    JEL: D11 L13 Q50
    Date: 2023–01
  53. By: Manuel Adelino; David T. Robinson
    Abstract: Heating, cooling, and powering the residential housing stock accounts for about one-fifth of total annual greenhouse gas emissions in the US. Home size is a key determinant of energy intensity. The average newly built single-family home is 50% larger than in the 1950s. Using distinct identification strategies spanning the last four decades of banking history, we show that more abundant credit increases average new home size. It also facilitates more construction but does not produce offsetting increases in home quality or durability. These results highlight potential environmental costs associated with monetary policies that expand access to credit.
    JEL: G30 Q43 R21 R31
    Date: 2023–10
  54. By: Arief Anshory Yusuf; Zuzy Anna; Ahmad Komarulzaman; Andy Sumner
    Abstract: In this paper, we present new projections for a range of global poverty-related Sustainable Development Goals (SDGs), specifically, extreme monetary poverty, undernutrition, stunting, child mortality, maternal mortality, and access to clean water and basic sanitation. Our projections, based on economic growth forecasts, take into account recent global shocks such as the COVID-19 pandemic and the inflation shock. Our findings indicate that economic growth alone will not be sufficient to end global poverty, and the global poverty-related SDGs will not be met by a considerable distance.
    Keywords: Poverty, Growth, Nutrition, Health, Inequality, SDGs
    Date: 2023
  55. By: Josse Delfgaauw (Erasmus University Rotterdam); Otto H. Swank (Erasmus University Rotterdam)
    Abstract: IPCC (2022) documents a looming gap between climate goals and implemented policies and points to a lack of political commitment. We study policymakers' incentives to commit. A policymaker decides on a policy to encourage citizens to make investments and determines the degree of flexibility to change the policy after investments have been made. This adds redistributive concerns to the trade-off between commitment and flexibility. When a majority of citizens invest, redistributive concerns alleviate the time-inconsistency problem. When a minority of citizens invest, redistributive concerns aggravate the time-inconsistency problem. Then, the policymaker either commits too strongly or refrains from commitment altogether.
    Keywords: commitment, flexibility, redistribution, median voter, climate
    JEL: D72 D78 H23 Q52
    Date: 2023–10–12
  56. By: Lisa Sieger (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen)
    Abstract: Energy efficiency and renewable energy are key pillars of the energy transition that is high on the political agenda of governments in face of the climate crisis. Germany, however, is underperforming in its emissions reduction goals. There is still room for improvement, especially in the building sector – but this is often associated with high upfront investments. There is evidence that the market for energy efficiency in the German rental housing market is inefficient, resulting in underinvestment. To investigate these inefficiencies, this study estimates a hedonic pricing model combined with a total-cost-of-use perspective based on the observation of warm rents for a sample of 3, 903, 473 rental offers from 2014 to 2021. In a “perfect world†, the effect of the energy performance score given in energy performance certificates as an indicator of energy consumption or demand, respectively, is expected to be zero, as corresponding costs are already included in the warm rent. If the coefficient is significantly different from zero, it can be interpreted as measure for inefficiencies. The study further investigates whether disclosing heating costs in real estate advertisements could lead to a better appreciation of energy efficiency in the rental market and thus contribute to closing the information gap. Results show that the market for energy efficiency is indeed inefficient; however, the disclosure of full information can help to overcome these inefficiencies. These results lead to several important policy implications.
    Keywords: energy efficiency, rental housing market, information asymmetry, hedonic pricing
    JEL: C31 Q40 R21 R31
    Date: 2023–10
  57. By: Resnick, Danielle, ed.; Swinnen, Johan, ed.
    Abstract: The current structure of the global food system is increasingly recognized as unsustainable. In addition to the environmental impacts of agricultural production, unequal patterns of food access and availability are contributing to non-communicable diseases in middle- and high-income countries and inadequate caloric intake and dietary diversity among the world’s poorest. While the need to transform food systems is widely accepted, the policy pathways for achieving such a vision often are highly contested, and the enabling conditions for implementation are frequently absent. Moreover, transformation implicitly requires reforms that depart from the status quo, which will generate resistance from those groups that stand to lose the most.
    Keywords: food systems; reforms; policies; agricultural policies; governance; Sustainable Development Goals
    Date: 2023
  58. By: Wilfredo L. Maldonado; Jessica A. Barbosa
    Abstract: The effects of deforestation through land fires used by farmers (specially, smallholders) are twofold. From the individual point of view, they prepare the land improving its fertility. On the other side, the aggregate decision has a negative impact on air and water quality, degrading the environment, and this is reverted as a negative impact of the productivity of the land. In this work we present an aggregative game framework which includes those effects and allows us to analyze the impact of cost fires variations and number of farmers. Finally, using data from Brazilian research institutes, we test the sign and the size of the impacts of those determinants on the aggregate deforestation in Brazil for the period 2009 to 2018.
    Keywords: aggregative games, land use, deforestation
    JEL: C72 D62 Q5
    Date: 2023–10
  59. By: Lisa Capretti (Department of Social Sciences and Economics, Sapienza University of Rome)
    Abstract: Climate-smart agriculture can address many of the challenges faced by agriculture in semi-arid areas. However, in many developing countries, the adoption and use of this kind of technology are still low. Knowledge constraints represent a critical barrier to adoption; hence, an effective extension system is key. In India, extension programs are characterized by partnerships involving the public sector, the private sector and NGOs. The latest approaches take advantage of mass media and video-based extension services. In this article, I assess the role of extension services on the adoption of laser land leveling among 604 households in the Indian state of Karnataka. Laser land leveling is a modern way of leveling fields using a laser machine; it also brings environmental, economic and social benefits. Using propensity score matching, I find that visiting the extension center Raita Samparka Kendra (RSK) or receiving visit from RSK officials at least once in a year increases the likelihood of using LLL. Furthermore, a causal mediation analysis reveals that after explaining the advantages of the technology and its cost, farmers develop a perception about the affordability of laser land leveling that mediates the treatment effects of the extension service on laser land leveling adoption. Another mechanism that mediates this relationship, even to a lesser extent, is the increase in farmers’ welfare, proxied by household expenditure.
    Keywords: Climate-smart agriculture, Extension services, Mediation analysis
    JEL: Q15 Q16 O12 O13 C31
    Date: 2023–01
  60. By: Martial Ph\'elipp\'e-Guinvarc (GAINS); Jean Cordier
    Abstract: Following the EU's decision to ban neonicotinoids, this article investigates the impacts of yellow virus on sugar beet yields under the ban and under current and future climates. Using a model that factors in key variables such as sowing dates, phenological stages, first aphid flight and aphid abundance, simulations are performed using long-period climate datasets as inputs. Coupled with incidence and sugar yield loss assumptions, this model allows to reconstruct the impact of yellow virus on sugar beet yields using a so called 'as if' approach. By simulating the effects of viruses over a longer period of time, as if neonicotinoids weren't used in the past, this methodology allows an accurate assessment of risks associated with yellow viruses, as well as impact of future agroecological mesures. The study eventually provides an actuarial rating for an insurance policy that compensates the losses triggered by those viruses.
    Date: 2023–10
  61. By: Eßer, Jana; Frondel, Manuel; Sommer, Stephan; Wittmann, Julia
    Abstract: Im Jahr 2021 wurde in Deutschland die sogenannte CO2-Bepreisung fossiler Kraft- und Brennstoffe eingeführt, um deren Verbrauch zum Zwecke des Klimaschutzes zu reduzieren. Dieser Preisaufschlag auf fossile Energieträger wird in den kommenden Jahren sukzessive erhöht. Der vorliegende Beitrag untersucht die Kenntnis der Bürgerinnen und Bürger zur Wirkungsweise und Höhe der CO2-Bepreisung und der für sie daraus resultierenden individuellen finanziellen Konsequenzen. Eine Erhebung unter mehr als 6.000 Haushalten aus dem Jahr 2022 zeigt, dass sich die überwiegende Mehrheit der Befragten überhaupt nicht oder eher schlecht über die CO2-Bepreisung informiert fühlt. Dies bestätigt sich vor allem durch das mangelnde Wissen über die individuellen finanziellen Konsequenzen: Eine überwältigende Mehrheit von über 80 % der Befragten weiß zwar, dass der CO2-Preis auf fossile Kraft- und Brennstoffe wie Benzin, Diesel, Heizöl und Erdgas aufgeschlagen wird. Allerdings können sie die für sie aus dem CO2-Preis folgende Kostenbelastung nicht korrekt abschätzen. Vielmehr überschätzen sie die finanziellen Konsequenzen oft maßlos. Überdies vermuten viele Befragte irrtümlich, dass der CO2-Preis auch auf weitere Güter wie Kerosin oder Plastiktüten erhoben wird. Diese Ergebnisse stellen die Effektivität der CO2-Bepreisung in Frage. Politik und Wissenschaft sind daher gleichermaßen gefordert, durch bessere Kommunikation und höhere Transparenz die Wirksamkeit dieses Klimaschutzinstrumentes zu fördern.
    Keywords: Panelerhebung, Klimawandel
    JEL: D12 C25
    Date: 2023
  62. By: Burke, Andrew; Zhao, Jingyuan; Miller, Marshall; Fulton, Lewis
    Keywords: Engineering, Social and Behavioral Sciences
    Date: 2023–10–20
  63. By: Pérez Urdiales, María; Libra, Jesse Madden; Machado, Kleber; Serebrisky, Tomás; Solís, Ben
    Abstract: An issue that affects the effectiveness of water pricing policies is consumers misperception, which implies that households decide their water consumption based on poor/inaccurate information about the marginal price. We use household survey data on bill and quality perception in Brazil to analyze this problem and its drivers. Once we control for the selection bias caused by survey respondents voluntarily providing their bill, we find evidence of bill misperception. Apart from the informational and socioeconomic drivers usually considered in the literature, perceived water quality seems to be a relevant factor of the degree of misperception.
    JEL: Q25
    Date: 2022–05
  64. By: Phoebe Koundouri; Maria Christantoni (Hellenic Republic Asset Development Fund); Conrad Landis; Maria Loloni (EIT Climate-KIC); Socratis Oikonomidis (Hellenic Republic Asset Development Fund); Angelos Plataniotis
    Abstract: The paper consists of the application of the Koundouri et al (2023)'s methodology to integrate SDGs into the Sustainability Reporting Framework for the Case Study of Lavrio Port in Greece. This novel holistic framework consists of downscaling the UN SDSN Sustainable Development Report's methodology to a corporate (private or public) level to support the transformation of the companies in line with the Corporate Sustainability Reporting Directive. The methodology builds on the ESG rating tool of the Hellenic Republic Asset Development Fund, the sole shareholder of the Port Authority of Lavrio, who had developed a thorough list of ESG Key performance Indicators to assess and support the sustainability performance of its portfolio. This framework is intended to provide a baseline for measuring sustainability performance of the Port of Lavrio, as it is undergoing a sustainability transformation employing a systems innovation approach.
    Date: 2023–10–23
  65. By: Diana Kmetkova (Charles University, Faculty of Social Sciences, Institute of Economic Studies, Prague, Czech Republic); Milan Scasny (Charles University, Faculty of Social Sciences, Institute of Economic Studies, Prague, Czech Republic); Iva Zverinova (Charles University, Faculty of Social Sciences, Institute of Economic Studies, Prague, Czech Republic); Vojtech Maca (Charles University, Faculty of Social Sciences, Institute of Economic Studies, Prague, Czech Republic)
    Abstract: Global food production practices and consumption patterns have changed notably in the last few decades. Current dietary patterns are characterized by increased consumption of refined sugars as well as higher intakes of heavily-processed and animal-source foods, which results in higher obesity rates and increased prevalence of diet-related non-communicable diseases. Moreover, diets high in animal products are associated with a larger environmental burden. The aim of this paper is to examine the association between the consumption of meat and fish and economic and socio-demographic factors, different consumption habits and behaviours of individuals in five European countries. Using household-level data, descriptive analysis is presented and regressions using Heckman’s standard sample selection model are conducted. The main reasons for not eating meat or fish are ethics, environment, taste and health. Our findings also suggest that though income results to be significant, its positive effect on meat and fish intake is rather small. Regarding fish, the price of groceries seems to have a significant negative impact while it does not affect the consumption of white meat. This indicates that if we want to lower the consumption of (especially red) meat, we should focus on other factors, such as gender, age, healthy habits and behavioural traits or values (especially factors that are part of the decisionmaking process during food purchases like price, taste, habit, family and appearance). Moreover, meat and fish intakes differ significantly among analysed countries, hence, the policy recommendations should be based on a local context.
    Keywords: income, meat and fish consumption, animal protein, healthy and sustainable diet, behavioural analysis
    JEL: C34 C38 I15 O12 O13 Q56
    Date: 2023–10
  66. By: Lucas Javaudina; Andrea Araldo; André de Palma (Université de Cergy-Pontoise, THEMA)
    Abstract: We consider a regulator driving individual choices towards increasing social welfare by providing personal incentives. We formalize and solve this problem by maximizing social welfare under a budget constraint. The personalized incentives depend on the alternatives available to each individual and on her preferences. A polynomial time approximation algorithm computes a policy within few seconds. We analytically prove that it is boundedly close to the optimum. We efficiently calculate the Maximum Social Welfare Curve to achieve for a range of incentive budgets. This curve provides the right incentive budget to invest. We extend our formulation to enforcement, taxation and non-personalized-incentive policies. We analytically show that our personalized-incentive policy is also optimal within this class of policies and construct close-to-optimal enforcement and proportional tax-subsidy policies. We then compare analytically and numerically our policy with other state-of-the-art policies. Finally, we simulate a large-scale application to mode choice to reduce CO2 emissions.
    Keywords: Personalized incentives; Knapsack problem; Tax policy; CO2 emissions; Modal shift
    JEL: C61 H2 Q58 R41
    Date: 2023
  67. By: Vandenhole, Kimberley (Université libre de Bruxelles); Garic, Kristijan; Leifeld, Philip
    Abstract: Sustainability Transitions Research (STR) confronts complex societal challenges by examining societal shifts and their trajectories. An emerging perspective in STR is discursive approaches, which analyse the role of discourses and discourse coalitions in shaping sustainability transitions. However, discursive approaches face challenges regarding the analysis of sustainability transition processes as complex, temporal processes of stability and change. We discuss the nature of these challenges and explore the method of discourse network analysis (DNA) as a potential solution. We extend DNA significantly by measuring distinct temporal states (phases of stability) in discourse networks and detecting phase transitions (significant changes) between these discursive states. An empirical application of this extension to the discursive networks around the introduction of a Low Emission Zone demonstrates how and when discourses and actors display significant structural shifts. This methodological innovation addresses the need for measuring stability and change in the complex, discursive, temporal dynamics of sustainability transitions.
    Date: 2023–10–02
  68. By: Krekel, Christian (London School of Economics); Rode, Johannes (Darmstadt University of Technology); Roth, Alexander (DIW Berlin)
    Abstract: While wind power is considered key in the transition towards net zero, there are concerns about adverse health impacts on nearby residents. Based on precise geographical coordinates, we link a representative longitudinal household panel to all wind turbines in Germany and exploit their staggered rollout over two decades for identification. We do not find evidence of negative effects on general, mental, or physical health in the 12-Item Short Form Survey (SF- 12), nor on self-assessed health or doctor visits. We also do not find evidence for effects on suicides, an extreme measure of negative mental health outcomes, at the county level.
    Keywords: wind turbines, externalities, health, renewable energy, difference-in-differences, event study
    JEL: D62 I10 Q20 Q42 R10
    Date: 2023–10
  69. By: Ome, Alejandro; Pérez, Javier
    Abstract: We study the impact of natural resource royalties on educational outcomes in Colombia. We analyze a reform enacted in 2012 that made the distribution of these royalties more equitable. Before the reform, most royalties were assigned to the regions where the natural resources were exploited; with the reform non-producing regions started to receive royalties. We estimate the impact of the reform on regions that most benefited from it, using the international price of oil as an instrument in a difference-in-differences framework. We found positive impacts on enrollment in primary, secondary, and high schools, but no conclusive evidence on academic achievement at any of these levels.
    Keywords: royalties;public finance;instrumental variables;transformación productiva;Extractivas;región andina;Andea Region
    JEL: C26 H52 H72 O13 O54
    Date: 2022–06
  70. By: Vuong, Quan-Hoang
    Abstract: *Editorial note: This story is the closing chapter of The Kingfisher Story Collection (3rd Ed.) [1]. It was translated by Minh-Hoang Nguyen from the original Vietnamese version.
    Date: 2023–09–15
  71. By: Viktor Stojkoski; Philipp Koch; Eva Coll; Cesar A. Hidalgo
    Abstract: Despite global efforts to harmonize international trade statistics, our understanding about trade in digital products and its implications remains elusive. Here, we study five key aspects of trade in digital products by introducing a novel dataset on the exports and imports of digital products. First, we show that compared to trade in physical goods, the origin of digital products exports is more spatially concentrated. Second, we show that between 2016 and 2021 trade in digital products grew faster than physical trade, at an annualized growth rate of 20% compared to 6% for physical trade. Third, we show that trade in digital products is large enough to partly offset some important trade balance estimates, like the physical trade deficit of the United States. Fourth, we show that countries that have decoupled economic growth from greenhouse gas emissions have larger and faster growing exports in digital product sectors. Finally, we add digital products to measures of economic complexity, showing that digital products tend to rank high in terms of sophistication contributing positively to the complexity of digital exporters. These findings provide a novel lens to understand the impact of the digital sector in the evolving geography of global trade.
    Date: 2023–10
  72. By: Tii N. Nchofoung (University of Dschang, Cameroon)
    Abstract: When commodity prices rise in international markets, Africa's economic performance scarcely improves, and when commodity prices fall, its economic performance suffers substantially. This study examines the effect of oil price shocks on Africa’s energy transition (ET). Data is obtained for 53 African countries between 2000 and 2020, with the Driscoll and Kraay and Panel VAR regression procedures used. The results reveal that oil price shocks have an adverse influence on Africa's ET, with the findings being strong in both rural and urban contexts. Furthermore, the results expose that the adverse effect is visible only in net crude oil exporting countries, whereas net oil importing countries have no significant effect. Moreover, oil price shocks cannot explain Africa's urban-rural differences in clean energy access. As policy implications, African policymakers should reduce the rural-urban gap in clean energy by investing more in clean energy and technologies in rural areas, which help enhance the resilience of the energy sector to oil price shocks.
    Keywords: Crude oil price shocks, energy transition; Panel VAR, Africa
    Date: 2023–01
  73. By: Nikulin, Alexander (Никулин, Александр) (The Russian Presidential Academy of National Economy and Public Administration); Gusakov, Timur (Гусаков, Тимур) (The Russian Presidential Academy of National Economy and Public Administration); Trotsuk, Irina (Троцук, Ирина) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The relevance of the study is determined by the fact that in recent decades, peripheralization of rural spaces in Russia has intensified in the form of the expansion of abandoned agricultural lands, disappearance of rural settlements, and a general long-term social-demographic depression. Concerning the spatial and food security of Russia, the re-development of peripheral rural territories is the most important condition for the viability and sustainable development of the country. The study aims at presenting a typology of models of rural development and rural differentiation in the peripheral territories of Russia as based on regional resources and the potential of local territories – in order to integrate them into the all-Russian programs of rural development. The subject is specific Russian cases of the development of rural peripheral territories and general trends in the revival of the depressed rural periphery. The methods combine the elements of the quantitative (statistical data, secondary analysis) and qualitative (expert semi-formalized interviews) approaches within the case study. Based on the results of the study, the paper describes the latest trends in the peripheralization of even the old-developed Russian regions, i.e., measures for the centralization of spatial development often exacerbate the depth of peripherization. The paper concludes with the main indicators of the rural periphery viability (ability to cope with systemic shocks and uncertainty, ability to radically change the trajectory of one’s development) and the features of the sustainable peripheral rural system. The novelty of the study is determined by an attempt to develop a typology of rural periphery and by a systematic analysis of its problems within both the agrarian re-development strategies and projects of ecological-recreational and cultural-historical types. The paper provides some recommendations on the development of rural periphery: more diverse economic activities of rural residents; more market-oriented institutions to ensure a transition from informal economic interactions to the formalized ones; stronger social capital in order to more easily mobilize internal and external resources.
    Keywords: periphery, center, agrarian policy, depressed areas, innovations, ecology, re-development, rural development, rural differentiation, models
    Date: 2022–11–10
  74. By: Tobias Stein; Lisa Sieger; Christoph Weber (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen)
    Abstract: The existence of spatial patterns in the adoption of small-scale solar photovoltaic (PV) systems is widely accepted in the academic literature. The diffusion of these systems depends on decisions of heterogenous units, often households, that form their decision based on unit characteristics and attitudes, the built environment, economic and physical factors, as well as peer effects. When including several of these factors, many studies use macro-level datasets, which have a limited ability to capture ‘real’ small-scale spatial patterns. Using data on a 1 km² grid level for Germany, we identify spatial patterns of adoption while also controlling for highly localized explanatory variables. Spatial dependence is estimated and tested with spatial econometric models. Using this set of small-scale data, we show that spatial clustering affects the adoption of residential PV systems, which is increasing with larger neighborhood sizes. Further, the presence of large-scale PV installations has strong direct and also indirect, i.e., spillover effects on the adoption of rooftop PV installations. Finally, spillover effects from defined neighborhoods are found to become statistically insignificant with larger distances, promoting the use of such small-scale data.
    Keywords: Solar PV adoption, Spatial econometrics, Adoption behavior, Energy transition
    JEL: C31 Q28 Q55 R12
    Date: 2023–10
  75. By: Camille Saint-Macary (DIAL-LEDa, IRD, Université Paris-Dauphine, PSL Université); Komlavi II Adjegan (IRD, UMR LEDa-DIAL, PSL, Université Paris-Dauphine); Flore Gubert (IRD, UMR LEDa-DIAL, PSL, Université Paris-Dauphine, CNRS, and PSE); Virginie Comblon; Benoit Marion; François Roubaud (DIAL-LEDa, IRD, Université Paris-Dauphine, PSL Université)
    Abstract: In the Democratic Republic of Congo (DRC), only a third of the population has basic access to drinking water. The lack of access to drinking water is particularly marked in urban areas, especially in the capital city of Kinshasa and its outlying districts. This results in poor hygiene and sanitation conditions and in large amounts of time spent every day for collecting water. To improve this situation, AFD initiated the PILAEP "Promotion de modalités Innovantes pour L'Accès à I'Eau Potable" (2008-2012) and PILAEP2 (2017-2021) projects, which involve setting up autonomous drinking water distribution networks for people living in the outlying districts of Kinshasa and Bas Congo who are not served by the national water distribution company (REGIDESO). Each network is managed by a Users' Association (ASUREP) and comprises a borehole, a reservoir, a distribution network and a system of standpipes, capable of supplying 1, 000 inhabitants with drinking water. This report presents the impact assessment of the PILAEP2 project. The first section describes the evaluation protocol and the survey methods used to measure the project's impact. The second section presents descriptive analyses of the study districts, their demographic dynamics and changes in water supply and demand over the study period. The third section presents the results of the evaluation of the impact of the PILAEP 2 project on the populations targeted by the project, focusing on five groups of indicators: water supply, physical and mental health, education, employment and governance.
    Keywords: water supply and demand, water access, difference-in-differences, instrumental variables, Africa.
    JEL: D10 D71 I14 I38 O12 O55
    Date: 2023–10

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