nep-res New Economics Papers
on Resource Economics
Issue of 2023‒02‒20
five papers chosen by

  1. Productive versus environmental objectives of agricultural policies dealing with climate change: a French case study By Tiphaine Guillet; Lauriane Mouysset
  2. Do Wildfires Harm Student Learning? By Ge We
  3. Policies and Corporate Responses to the Plastic Pollution Crisis By Park, Yumi
  4. Environmental Impacts of Redispatching in Decarbonizing Electricity Systems: A Spanish Case Study By Davi-Arderius, Daniel; Schittekatte, Tim
  5. Do wildfires burn tourism intentions? The case of Portugal By João Cerejeira; Rita Sousa; Carolina Bernardo; António Bento-Gonçalves

  1. By: Tiphaine Guillet (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Lauriane Mouysset (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The study aims at reconciling contrasting productive and environmental goals of agricultural policies at a given budget in the context of climate change. Based on a quantitative bioeconomic model integrating interdependencies between agricultural systems and agroecosystems, we compare the impacts of 4 contrasted public policy scenarios based either on productive (food or energy) or environmental goals (pollution reduction or ecosystem state) on a set of 18 bioeconomic indicators. We run the policy scenarios under two contrasted climate change scenarios to investigate their robustness. We confirm that it is possible to achieve productive and environmental goals with the ongoing budget of European agricultural policy. Synergies between productive and environmental performances exist even if they are not trivial nor systematic. More precisely, an agricultural public policy which focuses on energy production might offer a good compromise regarding the different facets of agricultural landscapes. The Pollution scenario constitutes a credible environmentally oriented alternative even if it remains slightly less competitive regarding both ecological and economic sides than an energyoriented policy. Eventually, our analysis shows that our conclusions are robust to climate change, suggesting that adequate agricultural public policies might attenuate climate change effects when considering intermediary climate change scenarios.
    Keywords: land-use change, ecosystem service, bioeconomic model, public policy scenario, Europe, terrestrial biodiversity, socioecological system, climate change
    Date: 2022
  2. By: Ge We (Department of Economics, University of Tennessee)
    Abstract: I evaluate the effect of wildfire smoke on primary and middle school students’ English Language Arts (ELA) and math achievement across the United States. To estimate students’ exposure to wildfires at the school district level, I merge satellite-based wildfire smoke plume boundaries and 1km-grid daily PM2.5 values with school district locations, and weight the exposure by census tract population. I find that recent drifting wildfire smoke plumes significantly lower ELA and math test scores. When I proxy the wildfire intensity by PM2.5, results suggest that severe wildfires generate lasting effects on young students in primary school. Effects are only transitory for students in middle school. Further analysis reveals that Black students in primary school and economically disadvantaged students are more negatively affected than others. Males are more affected by unhealthy air quality in elementary ELA and middle school math than female students. Overall, findings suggest that more environmental and educational policy responses are needed to protect students with the increase in wildfire occurrence and intensity
    Keywords: Wildfire, Academic Performance, Education Disparity
    JEL: I21 I24 Q54
    Date: 2022–02
  3. By: Park, Yumi (Korea Institute for Industrial Economics and Trade)
    Abstract: The International Energy Agency (IEA) estimated in May 2020 that as fossil fuel consumption in the transportation sector drops, petrochemicals will explain the majority of future increases in oil demand, accounting for 33 percent of overall growth by 2030 and nearly half by 2050. The announcement in October 2020 that Aramco, the world’s largest oil company, will refit its refinery in Yanbu, Saudi Arabia for petrochemical production supports this forecast. However, climate crisis research group Carbon Tracker stated in a report titled The Future’s Not in Plastics that while oversupply — as exemplified by the expansion at Aramco’s Yanbu facility — hurts profitability, the oil-based plastic industry will suffer from the spread and tightening of regulations designed to combat the plastic pollution crisis. According to BP’s 2019 energy forecast, regulations such as bans on the use of disposable plastics could significantly reduce the demand for oil, which is the key component of most plastics. The European Union Board of Directors resolved last year to accept new contributions from member states in proportion to the amount of non-recyclable plastic waste created to meet future expenditures. If a Carbon Border Adjustment Mechanism (CBAM) is implemented, the future of polymers that are heavily reliant on fossil fuels could become even more uncertain. This article examines the causes of the plastic pollution crisis, which provided the impetus for the enforcement of policies impacting plastic demand, as well as the approaches used by the EU, China, the United States, and South Korea to deal with the crisis. It also examines contemporary responses by businesses and the implications carried for policy.
    Keywords: plastics; pollution; petrochemicals; petrochemical industry; plastic pollution; industrial policy; carbon border adjustment mechanism; CBAM; environmental policy
    JEL: L65 Q53
    Date: 2022–06–01
  4. By: Davi-Arderius, Daniel (University of Barcelona); Schittekatte, Tim (Massachusetts Institute of Technology)
    Abstract: In recent years, European system operators have been more frequently needing to redispatch generation, load, or both, after the day-ahead market clearing to ensure that the final dispatch schedule does not violate any network limit. In this paper, we focus on the environmental impact of redispatch processes. We use hourly data from the Spanish market operator and transmission system operator between 2019-2021 to analyze the emissions introduced by redispatch processes. We find that while redispatch energy accounts for about 2-4% of total annual electricity demand, it contributes to about 6-11% of the annual power sector’s CO2 emissions. Upwards redispatch energy is nearly entirely provided by polluting power plants, while clean wind generation is by far the most downwards redispatched. We confirm that redispatch volumes increase when the share of intermittent renewables in the supply mix increases but, additionally, show that redispatch volumes also significantly increase during hours with low energy demand. The latter can indicate important inefficiencies in the integration of renewables in the power system, not only leading to higher costs but also emissions. Finally, we find that when considering the CO2 emissions from redispatch, the abated CO2 emissions resulting from marginally increasing renewable generation, substituting coal or gas in the day-ahead schedule, reduces by 0.7-4.5%. We offer several recommendations to reduce the need for redispatch actions and recommendations to make redispatch actions less polluting. A key point is the consideration of a specific ancillary service for voltage control.
    Keywords: renewables; redispatching CO2 emissions; power markets; power system operations; ancillary services
    JEL: L51 L94 Q41 Q42
    Date: 2023–01–25
  5. By: João Cerejeira (NIPE/Center for Research in Economics and Management, University of Minho, Portugal; and CIPES – Centre for Research in Higher Education Policies); Rita Sousa (NIPE/Center for Research in Economics and Management, University of Minho, Portugal); Carolina Bernardo (University of Minho, Portugal); António Bento-Gonçalves (CECS – Communication and Society Research Centre, University of Minho)
    Abstract: Fire intensity and size incite visitation decrease and recreational losses, relevant tourism variables for European economies. As a result of climate change, this reality is becoming more evident. Due to significant gaps in analyzing the relationship between wildfires and tourism demand, this paper aims to explain how tourism demand reacts to wildfires in Portugal. We use a novel approach in these studies and estimate a spatial econometric model to analyze the relationship between total burned areas and overnight stays in a touristic establishment in a given municipality and its neighbouring municipalities. Our results show that wildfires negatively affect the overnight stays in the same location but also cause spillover effects in neighbouring municipalities. Also, the wildfire occurrences are positively related to the number of overnight stays after three months, suggesting a delay in tourism activities.
    Keywords: tourism, wildfires, spatial econometrics
    JEL: O13 Q54 Q56 L83
    Date: 2023

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