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on Resource Economics |
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Issue of 2020‒02‒17
three papers chosen by |
| By: | Rick Van der Ploeg; Simon Dietz; Armon Rezai; Frank Venmans |
| Abstract: | We show that several of the most important economic models of climate change produce climate dynamics inconsistent with the current crop of models in climate science. First, most economic models exhibit far too long a delay between an impulse of CO2 emissions and warm¬ing. Second, few economic models incorporate positive feedbacks in the carbon cycle, whereby carbon sinks remove less CO2 from the atmosphere, the more CO2 they have already removed cumulatively, and the higher is temperature. These inconsistencies affect economic prescriptions to abate CO2 emissions. Controlling for how the economy is represented, different climate mod¬els result in significantly different optimal CO2 emissions. A long delay between emissions and warming leads to optimal carbon prices that are too low and too much sensitivity of optimal carbon prices to the discount rate. Omitting positive carbon cycle feedbacks also leads to op¬timal carbon prices that are too low. We conclude it is important for policy purposes to bring economic models in line with the state of the art in climate science. |
| Keywords: | carbon cycle, carbon price, climate change, integrated assessment modelling, positive feedbacks, social cost of carbon |
| JEL: | Q54 |
| Date: | 2020–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:900&r=all |
| By: | Samira Demaria (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique); Sandra Rigot (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique); Sylvain Borie |
| Abstract: | Climate change is introducing greater risk and uncertainty into the economy and financial system. Despite wide acceptance of the need to reduce emissions, information failures limit understanding of the financial risks. As a result, the Financial Stability Board is pushing for greater disclosure via an international initiative: the Task Force on Climate-related Financial Disclosures (TCFD). Based on content analysis of firms' reference documents over 2015-2017, this article examines CAC 40 firms' compliance with the recommendations of TCFD by building a new index (Comprehensive Compliance Index-CCI) to measure the disclosure of environmental information. Our results highlight a gradual improvement in environmental disclosure by CAC 40 companies over the three years. CCI levels were relatively satisfactory in 2015 and 2016 to the extent that the TCFD report had not yet been published, but it masks discrepancies. Sectors with high environmental impact have higher index scores than low impact sectors. In 2017, CAC 40 companies communicated the most in the areas of risk management, metrics and governance, far ahead of strategy, and there was an improvement in the environmental disclosure in each area. Finally, our content analysis allows us to develop a matrix of climate risks and opportunities per sector. JEL: M40, M14 |
| Keywords: | Environmental disclosures,CSR reporting,climate-related risk,TCFD recommendations 2 |
| Date: | 2019–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02407136&r=all |
| By: | Chen, Xi (Yale University); Tan, Chih Ming (University of North Dakota); Zhang, Xiaobo (Peking University); Zhang, Xin (Beijing Normal University) |
| Abstract: | This paper investigates the effects of prenatal exposure to extreme temperatures on birth outcomes – specifically, the log of birth weight and an indicator for low birth weight – using a nationally representative dataset in rural China. During the span of our data (i.e., 1991–2000), indoor air-conditioning was not widely available and migration was limited, allowing us to address identification issues endemic in the climate change literature related to adaptation and location sorting. We find substantial heterogeneity in the effects of extreme temperature exposure on birth outcomes. In particular, prenatal exposure to heat waves has stronger negative effects than exposure to cold spells on survivors. |
| Keywords: | climate change, cold weather, heat waves, birth weight, low birth weight, China |
| JEL: | I15 Q54 Q51 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12917&r=all |