nep-res New Economics Papers
on Resource Economics
Issue of 2015‒09‒26
three papers chosen by
Maximo Rossi
Universidad de la República

  1. Do we care about sustainability? An analysis of time sensitivity of social preferences under environmental time-persistent effects. By Michela Faccioli; Nick Hanley; Catalina M. Torres Figuerola; Antoni Riera Font
  2. The consumption-based carbon footprint of households in Sulawesi, Jambi and Indonesia as a whole in 2013 By Mohammad Iqbal Irfany; Stephan Klasen; Rezky Syahrezal Yusuf
  3. Service innovation for sustainability: paths for greening through service innovation By Faridah Djellal; Faïz Gallouj

  1. By: Michela Faccioli (Department of Applied Economics at the University of the Balearic Islands.); Nick Hanley (Department of Geography and Sustainable Development, University of St. Andrews); Catalina M. Torres Figuerola (Department of Applied Economics at the University of the Balearic Islands.); Antoni Riera Font (Department of Applied Economics at the University of the Balearic Islands.)
    Abstract: Environmental cost-benefit analysis has traditionally assumed that environmental policies’ social benefits are sensitive to the timing of the improvement. Indeed, it has relied on the idea that policies’ outcomes, taking place at different moments in the future depending on the intervention’s performance or on environmental dynamics, are preferred if occurring earlier. However, this assumption needs to be verified as it may lead to consider as socially desirable policies being less so. This is especially important when interventions aim at counteracting time-persistent environmental problems, whose impacts occur in the long-and very long-term, respectively involving the present and future generations. In this framework, with the objective to identify the role of sustainability concerns, this study analyzes the time sensitivity of social preferences for preservation policies of adaptation to time-persistent climate change stresses. Results have shown that preferences are time insensitive due to sustainability issues, as current generations equally care about nature preservation in the long-term, when they will enjoy it, and in the very long-term, when future generations will. These outcomes are relevant to better inform decision-making in the design of policies in the face of time-persistent environmental problems, by pointing out that, to be welfare-maximizing, interventions also need to be sustainable.
    Keywords: Time-persistent environmental problems, sustainability, preference analysis, choice experiment, time sensitivity, climate change
    JEL: D6 D90 Q51 Q54 Q56
    Date: 2015–08
  2. By: Mohammad Iqbal Irfany (Georg-August-University Göttingen); Stephan Klasen (Georg-August-University Göttingen); Rezky Syahrezal Yusuf (Georg-August-University Göttingen)
    Abstract: This study analyzes the consumption-based carbon footprint of households in Sulawesi, Jambi and Indonesia as a whole. Combining the use of the GTAP data for emission intensities, of input-output tables for inter-industry linkages with household expenditure categories, we then estimate and calculate the carbon footprint from household consumption, including its drivers, pattern and decomposition of increasing household emission intensities. We find that the main driver of carbon footprint is overall household income, but that differentials in fuel, light and transportation expenditures are key drivers of the household carbon footprint. These expenditures also ensure that the carbon footprint of household in Jambi is higher than in Indonesia as a whole, despite lower per capita incomes. At the same time, substantially lower income inequality in Jambi ensures that the inequality in the carbon footprint is much lower in Jambi than in Indonesia as a whole; particularly noteworthy is the poorer quintiles in Jambi have substantially higher emissions than average Indonesian households in the same quintiles. In Sulawesi, average emissions are much lower and also not as unequal than in Indonesia as a whole. Overall expenditures are by far the most important driver of household carbon emissions, but in Jambi, emissions are higher at all expenditure levels, suggesting particularly carbon-intensive consumption patterns.
    Keywords: Development economics; carbon footprint; household emissions; comparison of Sulawesi, Jambi, and National SUSENAS
    JEL: Q54 D12 O13
    Date: 2015–09–19
  3. By: Faridah Djellal (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS - Université Lille 1 - Sciences et technologies); Faïz Gallouj (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS - Université Lille 1 - Sciences et technologies)
    Abstract: The purpose of this work is to examine the extent to which services and service innovation can contribute to sustainable development in its environmental dimension. The supposed immateriality of services seems to argue in favour of their natural sustainability. This is actually just a myth – one we examine the roots of, and which we refute. This calling into question of the naturally-green-servicesmyth does not, however, mean that the greening of the economy cannot rely on services. On the contrary, greening also fundamentally depends on innovation dynamics being implemented in or by services.
    Date: 2015–05

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