nep-res New Economics Papers
on Resource Economics
Issue of 2021‒10‒25
three papers chosen by
Maximo Rossi
Universidad de la República

  1. Abatement strategies and the cost of environmental regulation: emission standards on the European car market By Mathias Reynaert
  2. Adaptation to climate change: air-conditioning and the role of remittances By Teresa Randazzo; Filippo Pavanello; Enrica De Cian
  3. Climate Protection versus Convergence? By Lengwiler, Yvan

  1. By: Mathias Reynaert (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: This paper studies the introduction of an EU-wide emission standard on the automobile market. Using panel data from 1998-2011, I find that firms decreased emission ratings by 14%. Firms use technology adoption and gaming of emission tests to decrease emissions, rather than shifting the sales mix or downsizing. I find that the standard missed its emission target, and from estimating a structural model, I find that the standard was not welfare improving. The political environment in the EU shaped the design and weak enforcement and resulted in firms' choices for abatement by technology adoption and gaming.
    Keywords: Environmental regulation,Compliance,Carbon emissions,Automobiles,Fuel economy
    Date: 2021–01
  2. By: Teresa Randazzo (Department of Economics, University Of Venice Cà Foscari; Fondazione CMCC, RFF-CMCC EIEE); Filippo Pavanello (University of Bologna; Department of Economics, University Of Venice Ca’ Foscari; Fondazione CMCC, RFF-CMCC EIEE.); Enrica De Cian (Department of Economics, University Of Venice Cà Foscari; Fondazione CMCC, RFF-CMCC EIEE)
    Abstract: Do remittances improve the ability of households to adapt to global warming? We try to answer this question by studying the behaviours of households in Mexico, a country that experiences a large and stable flow of remittances. Nationally representative household surveys indicate that Mexican households respond to the high temperature levels by purchasing air-conditioning, whose adoption is on the rise. We inquire whether and to what extent remittances are used to adopt and operate air-conditioning to maintain thermal comfort at home. We find an important role of remittances in the climate adaptation process, with large differences between coastal and inland regions, as well as among different income groups. We conclude by showing the overall increase in welfare households attain by adopting air-conditioning.
    Keywords: Remittances, Air-conditioning, Climate Change Adaptation, Micro-econometrics, Mexico
    JEL: D12 O13 O15 F24 Q4
    Date: 2021
  3. By: Lengwiler, Yvan (University of Basel)
    Abstract: Global economic convergence and protection of the climate are both worthwhile goals. Yet, there is an inherent tension between them. Greenhouse gases are a waste product that is often emitted in the production process. Limiting such emissions therefore hampers the accumulation of income and capital. I expand Solow's growth model to accommodate green house gases, and use this to estimate the contribution of such emissions to economic development. The sobering insight is that we would not have witnessed any convergence in the last 45 years if poorer countries had not increased greenhouse gas emissions.
    Keywords: climate change, convergence, growth theory, growth accounting, green house gases, GHG, carbon emissions, pollution, poverty, natural resources.
    JEL: O44
    Date: 2021–09–19

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