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on Microeconomic European Issues |
| By: | McNamara, Sarah; Neidhöfer, Guido; Lehnert, Patrick |
| Abstract: | We estimate intergenerational mobility of education for people born 1940-1999 at the subnational level for 40 European countries. The result is a panel of mobility indices for 105 mesoregions (NUTS1), and 215 microregions (NUTS2). We use these indices to make three contributions. First, we describe the geography of intergenerational mobility in Europe. Second, adapting a novel weighting procedure based on cohorts' relative economic contribution, we transform cohort-linked measures into annual measures of intergenerational mobility for each region. Third, we investigate the relationship between intergenerational mobility and innovation, and find robust evidence that higher mobility is associated with increased innovation. |
| Keywords: | Intergenerational Mobility, Equality of Opportunity, Human Capital, Innovation, Regional Economic Performance, Europe |
| JEL: | D63 I24 J62 O15 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283012&r=eur |
| By: | CHAFWEHÉ Boris; RICCI Mattia (European Commission - JRC); STOEHLKER Daniel (European Commission - JRC) |
| Abstract: | We study the impact of the recent cost-of-living crisis on European households using detailed data on individual consumption, income and wealth. We account for the various channels through which inflation affects individual households, and for the monetary and fiscal policy responses to the inflationary shock. Our results indicate that the effects of inflation through the revaluation of nominal wealth and income are one order of magnitude larger than the effect arising from differences in individual consumption patterns. On average, the effect of inflation is regressive, with lower income households suffering the biggest losses. Among population subgroups, young individuals and households with mortgage debt are the biggest winners of the inflation surge, while older individuals with large nominal net savings positions are the main losers. Fiscal policy measures, especially those targeted towards low-income households, were successful in dampening the negative and regressive impact of inflation. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:202401&r=eur |
| By: | Wiemer Salverda;; Veerle Rook; |
| Abstract: | Though labour-market earnings are the most important component of household incomes, the relationship between the two distributions remains underresearched. This contribution aims to examine this association with a descriptive analysis. We focus particularly on low-wage and high-wage employment which define two different but still interlinked types of the vicious entanglement. We present the results for the average EU country, as all 27 countries appear to largely share the same fundamentals (Annex 2). Thereto we examine how ‘labour households’ (who depend primarily on wage earnings), are spread over the income distribution of all households and how the individuals providing those earnings are distributed over the overall distribution of hourly wages. Their household incomes appear to crowd towards the top while a significant share of those individuals crowd towards low wages. Thus, low pay is found all over the income distribution. This contrasts with the single-earner world and depends predominantly on ‘Additional earners’ (persons earning less than the main ‘Primary earners’ in their households), who are the defining constituent of the dual-earner world. Note though that the dual-earner world has much more progressed in the labour market, as three quarters of earners share a household with one or more other earners, than in the income distribution as single-earner households still make up close to half of all labour households. Additional earners’ personal characteristics differ significantly but they sort almost identical effects on hourly pay – suggesting that the earner’s position in the household overrides all characteristics. Their low wages spread also over the entire wage distribution of corresponding Primary earners. Consequently, the first element of mutually increasing inequalities is that middle- and high-educated Additional earners make up a large majority of low-wage employment. They mount strong job competition to the low educated based on qualifications, working time and the leeway offered by higher household incomes. A brief country comparison suggests a growing exclusion of the low-educated from employment as a result. As the second element of inequality is that high-educated homogamy drives a modest share of households towards the very top of the income distribution, especially when these earners are also jointly high paid. Another country comparison suggests that the rapid expansion of tertiary educational attainment reinforces both the second and the first type of entanglement. Clearly, the two distributions in incomes and wages should be considered in conjunction in analysis as well as policy making. We conclude with a short discussion of the implications for wage formation as well as the role of education. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:hdl:wpaper:2302&r=eur |
| By: | Theis Madsen; Yiannis Kountouris; Rasmus Bramstoft; Phoebe Koundouri; Dogan Keles |
| Abstract: | Decarbonization of the energy system is a major challenge for today's energy system to combat climate change. This challenge is addressed in the EU through different political strategies and plans such as the European Green Deal, Fit-for-55, and REPowerEU, which set specific emission reduction goals for 2030 and 2050. Different mechanisms are in place to achieve these goals, such as the system-wide ETS and the country-level National Energy and Climate Plans. However, there is a difference in the enforcement level between European countries, despite their connection to the same integrated energy system. Hence, there might be discrepancies between the effectiveness of the EU system-level target and the achievements of national goals and plans. To understand and address these discrepancies, we utilize the open-source, sector-coupled energy system optimization model Balmorel to analyze the impact of different decarbonization methods in a fully interconnected, pan-European energy system. In three scenarios, we consider 1) the use of only a system-level carbon budget in line with Fit-for-55 and the European Green Deal, 2) the application of a carbon budget at the country level, and 3) the use of a carbon tax instead of a budget on all production of electricity, heat, and hydrogen. The novelty of this paper lies in the first comparison of these three decarbonization mechanisms and their impact on alignment with policy targets. We demonstrate that the pan-European energy system can reach decarbonization targets across all scenarios. Still, diving from the system perspective into the country level, challenges appear, causing nations to overshoot their allocated budgets. Country-level emission targets are more effective with little cost increase compared to the only system-level target scenario but also cause crossborder effects of fossil fuel based energy production. The carbon tax scenario is the most effective at decarbonizing but comes at up to 27 % higher costs in intermediary years, requiring more early investments. |
| Keywords: | Energy policy, Energy Transition Pathway, Decarbonization Strategies, Balmorel, Energy System Modeling |
| Date: | 2024–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2404&r=eur |
| By: | Johanna Greiss;; Karen Hermans;; Bea Cantillon; |
| Abstract: | With the Fund for European Aid to the Most Deprived (FEAD), the European Union (EU) is involved in the field of last resort social protection, mainly by subsidising food aid. This working paper examines (a) to what extent FEAD funds are geared towards poor Member States with greater social needs, (b) how important food aid in general, and FEAD in particular, is to supplement insufficient minimum income protection for the poor, (c) to what extent food aid is embedded in and supported by (welfare) state institutions, and (d) how important FEAD accompanying measures are to strengthen individual power resources. The paper builds on primary and secondary data and includes case study research covering eight European countries and four European cities. Our results show that FEAD organises an – albeit very limited – form of pan-European solidarity. Although FEAD budgets are very small, in some poorer countries they are not trivial compared to national unemployment and social exclusion spending. However, FEAD’s share in food aid packages is small. Moreover, compared to the efforts needed in order to lift minimum incomes to the EU-wide poverty threshold, the funds are relatively smaller in poor countries than in the richer ones. Our findings also suggest that on the one hand, FEAD could strengthen power resources of European citizens through its accompanying measures, but on the other hand, it seems to support the increasing penetration of food aid into welfare state institutions. Nonetheless, FEAD might be used as a stop-gap measure in a political strategy aimed at the implementation of the right to adequate minimum income protection. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:hdl:wpaper:2306&r=eur |
| By: | Phoebe Koundouri; Angelos Alamanos; Angelos Plataniotis; Charalampos Stavridis; Konstantinos Perifanos; Stathis Devves |
| Abstract: | The European Green Deal (EGD) is the growth strategy for Europe, covering multiple domains, and aiming to an equitable, climate neutral European Union by 2050. The UN Agenda 2030, encompassing 17 Sustainable Development Goals (SDGs), establishes the foundation for a global sustainability transition. The integration of the SDGs into the EGD is an overlooked issue in the literature, despite Europe's slow progress to achieve the sustainability targets. We employed a machine-learning text-mining method to evaluate the extent of SDG integration within the 74 EGD policy documents published during 2019�2023. The findings reveal a substantial alignment of EGD policies with SDGs related to clean energy (SDG7), climate action (SDG13), and sustainable consumption and production (SDG12). In contrast, there is a significant underrepresentation in areas related to social issues such as inequalities, poverty, hunger, health, education, gender equality, decent work, and peace, as indicated by lower alignment with SDGs 1, 2, 3, 4, 5, 8, 10, and 16. Temporal trends suggest a marginal increase in the attention given to environmental health (especially water and marine life) and gender equality. Furthermore, we illustrate the alignment of EGD policies with the six essential sustainability transformations proposed by the Sustainable Development Solutions Network (SDSN) in 2019 for the operationalization of the SDGs. The results indicate that besides the prevalence of "Energy Decarbonisation and Sustainable Industry", all areas have received attention, except for the "Health, Wellbeing and Demography". The findings call for a more integrated approach to address the complete spectrum of sustainability in a balanced manner. |
| Keywords: | European Green Dea, SDGs, Sustainability, Policy alignment, Text-mining, Machine Learning, Natural Language Processing, Sustainability Transformations |
| Date: | 2024–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2405&r=eur |
| By: | Karen Hermans;; Bea Cantillon;; Anikó Bernát;; Elena Carrillo-Álvarez;; Irene Cussó-Parcerisas;; Lauri Mäkinen; Júlia Muñoz Martínez;; Péter Szivos; |
| Abstract: | Many European welfare states are confronted with a growing demand for charitable food aid among households that struggle to make ends meet. This issue is particularly pressing today as a consequence of the COVID-19 crisis, the Russian invasion of Ukraine and the following soaring inflation. In this exploratory case study research, we estimate the financial importance of charitable food aid packages for vulnerable recipient families by using cross-country comparable food basket data. Concretely, we collected data about the content of food packages and conducted interviews in twelve food distribution points in Antwerp, Barcelona, Budapest and Helsinki. Furthermore, we evaluate the content of food aid packages by comparing them with food basket and Household Budget Survey data. Based on the data in our twelve case study organisations, we find that the monetary value of food aid packages differs greatly between and within cities. While average food aid packages in Antwerp and Barcelona exceed 100 euros a month (adjusted for Purchasing Power Parities), this value is lower in Helsinki but especially in Budapest. This variation seems to be partially driven by differences in administrative and volunteer capacity, the (financial) support by municipalities and the position within the broader food aid network. Nevertheless, food aid packages as a top-up to inadequate minimum incomes are never able to close the at-risk-of-poverty-gap for social assistance recipients in the studied organisations in the four countries. Furthermore, our results show that the food aid packages do not fully represent a healthy and varied diet and do not correspond to people’s average consumption choices. Hence, it is very likely that food aid recipients will attach a lower recipient value to the food aid packages than the estimated market values, because the packages do not entirely reflect specific household preferences and needs. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:hdl:wpaper:2301&r=eur |
| By: | Antea Barišić; Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | In recent decades, the development of novel technologies has intensified due to globalisation, prompting countries to enhance competitiveness through innovation. These technologies have significantly improved global welfare, particularly in sectors like healthcare, where they have facilitated tasks and boosted productivity, for example playing a crucial role in combating the COVID-19 pandemic. However, certain technologies, such as robots, can negatively impact employment by replacing workers and tasks. Additionally, the emergence of artificial intelligence as digital assets not only replaces specific tasks but also introduces complexities that may displace employees who are unable to adapt. While the existing literature extensively explores the heterogeneous effects of these technologies on labour markets, studies of their impact on migrant workers remain scarce. This paper presents pioneering evidence on the effects of various novel technologies on migrant employment in the European Union. The analysis covers 18 EU member states from 2005 to 2019 focusing on the impact of novel innovations, robot adoption, three types of digital assets, and total factor productivity, on migrant employment. The key findings reveal that innovations measured by the number of granted patents increase both the number and proportion of migrant workers relative to the overall workforce. While robots do replace jobs, their impact on native workers surpasses that of migrant workers, resulting in a higher share of migrant workers following robot adoption. Total factor productivity positively influences migrant workers, while the effects of digital assets are heterogeneous. Moreover, the impacts of these technologies on migrant workers vary significantly across different occupation types and educational levels. |
| Keywords: | Robot adoption, digitalisation, novel innovation, migrant workers |
| JEL: | O33 F22 D24 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:241&r=eur |
| By: | Mar\'ia Jose Presno; Paula Fern\'andez Gonz\'alez; Manuel Landajo |
| Abstract: | The European Union is engaged in the fight against climate change. A crucial issue to enforce common environmental guidelines is environmental convergence. States converging in environmental variables are expected to be able to jointly develop and implement environmental policies. Convergence in environmental indicators may also help determine the efficiency and speed of those policies. This paper employs a multilevel club convergence approach to analyze convergence in the evolution of GHG emissions among the EU-28 members, on a search for countries transitioning from disequilibrium to specific steady-state positions. Overall convergence is rejected, with club composition depending on the specific period (1990-2017, 2005-2017) and emissions categories (global, ETS, ESD) analyzed. Some countries (e.g. the United Kingdom and Denmark) are consistently located in clubs outperforming the EU's average in terms of speed of emissions reductions, for both the whole and the most recent periods, and for both ETS and ESD emissions. At the other end, Germany (with a large industrial and export basis), Ireland (with the strongest GDP growth in the EU in recent years) and most Eastern EU members underperform after 2005, almost reversing their previous positions when the study begins in 1990. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.01784&r=eur |
| By: | Cristina Pereira; Herm\'inia Gon\c{c}alves; Teresa Sequeira |
| Abstract: | Traditionally, European social policies have focused on material well-being and social justice, neglecting subjective indicators. This review systematically examines the scientific understanding of well-being, its indicators, and its relationship with governance. It suggests that political systems and institutions significantly impact well-being, and that subjective indicators should be incorporated into public policy decisions. The findings advocate for a more holistic approach to well-being measurement, encompassing both objective and subjective dimensions. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.17047&r=eur |
| By: | Elise Aerts;; Ive Marx;; Zachary Parolin; |
| Abstract: | This paper takes stock of income support provisions for families with children in the European Union, the United Kingdom and the United States. We look at the impact of regulatory instruments such as statutory minimum wages and also at the role of more direct income supports like child benefits and refundable tax credits. We also consider the impact of design. What is the relative role of universal as opposed to more targeted provisions, be it by family type or (pre-tax) income level? In short, what can we learn from the best-performing countries when it comes to ensuring that families with children have adequate minimum resources? We demonstrate that there is very substantial variation in the levels of income support provided to working and non-working families across Europe and the US. The most generous countries support incomes through layers of policies of which significant minimum wages and both universal and targeted child benefits (or tax credits) are key layers. The main lesson here is that, if the political will is there, workable policy mixes are available to make sure that parents have adequate minimum income resources to provide their children an upbringing free from poverty. |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:hdl:wpaper:2204&r=eur |
| By: | Coates, Dermot; Lawless, Martina |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp772&r=eur |
| By: | Gabriele Coletti (Bank of Italy); Alberto Di Iorio (Bank of Italy); Emanuele Pimpini (Bank of Italy); Giorgia Rocco (Bank of Italy) |
| Abstract: | This report presents findings for Italy from the ‘Study on the payment attitudes of consumers in the euro area (SPACE) – 2022’, conducted by the European Central Bank between the end of 2021 and the first half of 2022. The primary aim of the report is to provide updated information on the prevailing trends in the use of payment methods in Italy. Additionally, where applicable and useful, the report compares Italy’s results with those of the euro area and with data from the previous run of the survey, conducted in 2019, and from the ‘Study on the use of cash by households in the euro area’ (SUCH), conducted in 2015-16. The data show that, while cash remains the dominant payment method at the Point of Sale (POS), especially for low-value purchases (up to €50), its overall usage has declined in comparison with the findings of the previous editions of the survey. In terms of value of transactions, non-cash payments have gained importance, accounting for more than half of total expenditures at POS. Cashless payments are increasing overall, supported also by an uptake in e-commerce purchases. Specifically, cards, besides being the greatest competitor of cash for POS transactions, continue to be the most used means of payment both in terms of number and value of transactions for online purchases. |
| Keywords: | payment instruments, cash, payment habits, consumers’ payment behaviour |
| JEL: | D12 D14 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wpmisp:mip_042_23&r=eur |
| By: | Daryna Grechyna |
| Abstract: | This paper evaluates the relative importance of natural and human factors in shaping public awareness of climate change. I compare the predictive efficacy of natural factors, represented by air temperature deviations from historical norms, and human factors, encompassing noteworthy political events focused on environmental policies and movements led by environmental activists, in forecasting the salience of climate change topic over weekly and annual horizons using regional European countries’ data. The salience of climate change is proxied by the Google search intensity data. The activists’ movements are measured by weekly Friday for Future strikes. The best-performing predictor in the short term (weeks), is the size of activists’ strikes and in the longer term (years), positive deviations of maximum air temperature from historical norms and political meetings focused on environmental policies. The inter-regional spatial relations, when taken into account, significantly improve the forecasts of the future public interest in climate change. |
| Keywords: | climate change, activists’ strikes, political meetings, weather |
| JEL: | Q01 Q52 Q58 C33 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10907&r=eur |
| By: | Marta-Claudia Cliza (Nicolae Titulescu University, Bucharest, Romania); Laura-Cristiana Spataru-Negura (Nicolae Titulescu University, Bucharest, Romania) |
| Abstract: | This study aims to present the current status of the Deposit Return System implementation in Romania, called in Romanian ‘Sistem de Garantie Returnare’ and abbreviated as SGR. In 14 days from now, Romania must start operating the deposit return system according to the European Union legislation and the Romanian legislation put in place. Being an important component of the circular economy, everybody's asking if, through this implementation, Romania will be able to attain the recycling objectives of the European Union and be clean, especially now, on November 16, 2023, when the European Commission initiated infringement proceedings against Romania and five other EU member states over waste management issues. Numerous questions arise concerning the implementation and operation of DRS. Is Romania ready for this moment, especially since it is supposed to collect more than 7 billion recipients at the national level? What is the present status of the deposit return system implementation and how difficult will be to put in place a functioning operating system? Are all the stakeholders involved in DRS ready? This study will address the current issues in implementing the deposit return system in Romania, hoping that point by point will be addressed by the Romanian authorities in due time to have a functional system on November 30, 2023. |
| Keywords: | deposit return system, DRS, EPR, European Union, packaging waste, Romania, targets, SGR |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0353&r=eur |
| By: | Olivier Cardi; Fatma Hoke; Romain Restout |
| Abstract: | By exploiting the downward trend of profits' taxation observed in OECD countries which is rooted into international competition to attract capital, we identify exogenous variations in the corporate income tax rate. Estimating a SVAR model with long-run restrictions for a panel of eleven OECD countries over 1973-2017, we find that a permanent decline in profits' taxation leads to significant technology improvements which are concentrated in traded industries. The corporate tax cut has also an expansionary effect on hours concentrated in non-traded industries. The country-split shows that technology significantly improves in English-speaking and Scandinavian countries only while hours persistently increase only in continental European countries. To account for the dynamic effects of a corporate tax cut, we consider a two-sector open economy model with tradables and non-tradables and endogenous technology decisions where both capital and technology can be used more intensively. The model can account for the magnitude of technology improvements we estimate empirically as long as the traded sector is intensive in R&D, experiences low costs in the use of the stock of knowledge and also highly benefits from international R&D spillover. While large elasticities of utilization-adjusted-TFP w.r.t. the domestic and international stock of knowledge must be assumed in English-speaking and Scandinavian countries, in accordance with our estimates, we have to allow for sticky wages in continental European countries to account for our evidence. |
| Keywords: | Corporate taxation, SVAR, Open economy, Endogenous technological change, R&D, Hours worked, Tradables and non-tradables, Labor reallocation, Wage stickiness |
| JEL: | E23 E62 F11 F41 H25 O33 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:408700700&r=eur |
| By: | David Amaglobeli; Joaquim Guilhoto; Samir Jahan; Salma Khalid; Mr. Waikei R Lam; Mr. Gregory M Legoff; Brent Meyer; Xuguang Simon Sheng; Pawel Smietanka; Sonya Waddell; Daniel Weitz |
| Abstract: | The energy price shock in 2022 led to government support for firms in some countries, sparking debate about the rationale and the nature of such support. The results from nationally representative firm surveys in the United States and Germany indicate that firms in these countries were generally resilient. Coping strategies adopted by firms included the pass-through of higher costs to consumers, adjustment of profit margins (United States) and investments in energy saving and efficiency (Germany). Firms in energy-intensive industries would have been significantly more affected if international energy prices were fully passed through to domestic prices in Europe. Survey responses further reveal that most firms are uncertain about the impact of recent policy announcments on green subsidies. Firms take advantage of fiscal incentives to accelerate their climate-related investment plans are often those that have previous plans to do so. These findings suggest better targeting and enhancing policy certainty will be important when facilitate the green transition among firms. |
| Keywords: | Energy prices; Subsidies; Survey; Cost-Push Model; Input Output Table; Firm Behavior |
| Date: | 2024–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/027&r=eur |
| By: | Kendall, Alissa; Slattery, Margaret; Dunn, Jessica |
| Abstract: | Lithium-ion batteries (LIBs) are the enabling technology for modern electric vehicles (EVs), allowing them to reach driving ranges and costs comparable to internal combustion engine vehicles, an important development with EVs being integral to greenhouse gas mitigation efforts. However, LIB advancements include the use of rapidly evolving and chemically diverse batteries as well as larger battery packs, raising concerns about battery production sustainability as well as battery end-of-life (EoL). This study seeks to respond to these concerns by analyzing potential pathways for EoL EV batteries, quantifies flows of retiring EV battery materials, proposes economically and environmentally preferable LIB EoL strategies, and recommends pertinent policies with an emphasis on environmental justice. The researchers used a loosely coupled dynamic systems model that utilized life cycle assessment and material flow analysis and a mixed methods research approach. They find that the U.S. can make significant gains in securing supply chains for critical materials and decrease life cycle environmental impacts through the adoption of Recycled Content Standard policies similar to those found in the European Union. In addition, they examine the currently understood waste hierarchy in the context of LIB technology. Comparing immediate recycling to repurposing and reusing, they find that repurposing and reusing reduces life cycle environmental impacts relative to recycling. This project also includes an investigation of EoL battery collection and transportation and the vehicle afterlife ecosystem, as well as general stakeholders in the LiB life cycle, informed by expert interviews and a case study of a developing lithium industry in Imperial, California. View the NCST Project Webpage |
| Keywords: | Law, Physical Sciences and Mathematics, Electric vehicle, lithium-ion batteries, battery recycling, end-of-life, spent batteries |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt3v6047fh&r=eur |
| By: | Robert Z. Lawrence (Peterson Institute for International Economics) |
| Abstract: | This paper considers climate policies, not from the perspective of their environmental impacts, but rather their likely effects on labor and investments. While the aggregate impact of the green transition on jobs and investment may be modest, it will require significant reallocation of labor and capital within and across industries. Although the green transition brings new opportunities for employment and investment in renewable technologies, many workers and communities tied to the fossil fuel industry may not benefit from these advances due to skills mismatch and geographic constraints. Both the United States and the European Union acknowledge the importance of achieving "climate justice" and "leaving no one behind" in their decarbonization efforts. However, current policies and resources in the United States may fall short, with inadequate assistance reaching too many communities and a narrow focus on green jobs. In Europe, while the Just Transition Fund complements existing programs, effective implementation of place-based policies remains challenging due to the need for specific, localized responses. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp24-1&r=eur |
| By: | Arigoni, Filippo; Lenarčič, Črt |
| Abstract: | This paper estimates a Bayesian VAR model on Euro area data and quantifies the reaction of real activity to economic policy uncertainty shocks that originate abroad. Our findings show that US and Chinese uncertainty explains larger shares of fluctuations than European uncertainty. In an extended set-up, we perform a counterfactual simulation and verify the presence of a foreign economic policy uncertainty spillovers channel that magnifies the real effects of US and Chinese uncertainty shocks. The simulation also documents a non-negligible role played by bilateral trading activities in the transmission mechanism of Chinese shocks. In an application with Dutch data, we highlight that structural domestic factors shape region and country-specific uncertainty in the propagation of foreign economic policy uncertainty shocks onto the economy. |
| Keywords: | Uncertainty shocks, Euro area spillovers, real activity, US, China, Bayesian VAR |
| JEL: | C32 E30 Q54 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120022&r=eur |
| By: | Kohnert, Dirk |
| Abstract: | Human activity has transformed the planet at a pace and scale unprecedented in recorded history, causing irreversible damage to communities and ecosystems. Countries have focused their capacities on economic growth, with too little attention to externalities in terms of environmental quality. The world will not avoid catastrophic warming unless wealthy nations accelerate their reduction of own emissions and help poorer countries to do the same. North America and Europe have contributed 62 % of carbon dioxide emissions since the industrial revolution, while Africa has contributed only 3%. However, it is in sub-Saharan Africa (SSA) that the impacts are most severe and the people most vulnerable. Developed countries, in their own interests, should focus on ways to help developing countries phase out fossil fuels and transition to renewable energy. However, there are tensions between richer and poorer nations over who should pay the costs of global warming. Rich countries have a responsibility to act more quickly than their low-income counterparts. Yet governments continue to subsidise the use of fossil fuels, and banks and companies still invest more in polluting industries than in climate solutions. The consumption habits of the richest 10 % of people generate three times more pollution than those of the poorest 50 %. Emerging economies such as China and India, which plan to achieve net-zero emissions by 2060 and 2070 respectively, should join the developed world in accelerating emissions reductions. It is not just the way we produce and use energy that needs to change quickly. It's the way we consume food, the way we protect nature. It's everything, everywhere, all at once. The agricultural sector is particularly vulnerable, especially in SSA countries where agriculture is central to the economy. Among the top eight countries with the highest cumulative net emissions from agriculture, forestry and other land use are two SSA countries, Nigeria and DR Congo. Most of these emissions are embodied in trade and are caused by consumption in regions such as Europe, the United States and China. The establishment of the Loss and Damage Fund agreed at COP27 will not be enough to turn the tide, nor will it necessarily translate into climate finance commitments, given the lack of progress in delivering the promised US$100 billion in annual climate finance from rich countries. African countries themselves need to reflect on their own strengths and step up their efforts in a timely and substantial way. |
| Keywords: | Klimawandel; ökologische Nachhaltigkeit; CO2-Neutralität; Umweltverschmutzung; Treibhausgase; fossile Brennstoffe; erneuerbare Energien; Regierungsführung; Europäische Union; Industrieländer; Schwellenländer; BRICS; Subsahara-Afrika; Südafrika; Nigeria; DR Kongo; |
| JEL: | E26 F18 F54 F64 G38 H23 H84 H87 I15 I31 K32 N17 N37 N57 O13 O44 O55 Q54 Z13 |
| Date: | 2024–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120252&r=eur |