nep-res New Economics Papers
on Resource Economics
Issue of 2023‒06‒12
three papers chosen by
Maximo Rossi
Universidad de la República

  1. Emissions Projections for a Trio of Federal Climate Policies By Look, Wesley; Palmer, Karen; Burtraw, Dallas; Linn, Joshua; Hafstead, Marc; Domeshek, Maya; Roy, Nicholas; Rennert, Kevin; Gillingham, Kenneth; Xiahou, Qinrui
  2. The Gasoline Climate Trap By Josse Delfgaauw; Otto Swank
  3. The Effects of Climate Change on Public Investment Efficiency in Resource-rich Countries : Evidence from Stochastic Frontier Analysis By Yacouba Coulibaly

  1. By: Look, Wesley (Resources for the Future); Palmer, Karen (Resources for the Future); Burtraw, Dallas (Resources for the Future); Linn, Joshua (Resources for the Future); Hafstead, Marc (Resources for the Future); Domeshek, Maya (Resources for the Future); Roy, Nicholas (Resources for the Future); Rennert, Kevin (Resources for the Future); Gillingham, Kenneth; Xiahou, Qinrui (Resources for the Future)
    Abstract: With the Biden Administration’s recent announcement of the American Jobs Plan and nationally determined contribution (NDC) under the Paris Agreement, and as Congress begins to seriously consider legislation to advance clean energy and cut greenhouse gas emissions, RFF researchers have been investigating environmental outcomes under various policy scenarios. In this issue brief, we provide a snapshot from this work—including estimates of energy-related CO2 emissions and cost-effectiveness.
    Date: 2021–04–27
  2. By: Josse Delfgaauw (Erasmus University Rotterdam); Otto Swank (Erasmus University Rotterdam)
    Abstract: Due to taxes and subsidies, gasoline prices vary dramatically across countries. Externalities cannot fully account for this. We develop a simple political-economic model that shows that group interests, resulting from the composition of a country’s car fleet, help to explain differences in gasoline taxes even among countries with identical fundamentals. In the model, citizens’ car ownership is endogenous, which can yield multiple equilibria. Our model demonstrates the possibility of a society in a climate trap where a low gasoline tax reflects the views of a majority, but another majority would benefit from transitioning to an equilibrium with a higher gasoline tax and fewer emissions.
    Keywords: median voter, gasoline taxes, multiple equilibria.
    JEL: D62 D72 H23 Q58
    Date: 2023–05–08
  3. By: Yacouba Coulibaly (UO - Université d'Orléans, UCA - Université Clermont Auvergne)
    Abstract: Developing countries suffer disproportionately from the negative impacts of climate change and environmental degradation on economic development in terms of financial costs and loss of potential revenues. In this paper, we examine the impact of climate change on the efficiency of public investment in 34 developing countries, with a particular focus on resource-rich countries, over the period 2000-2013. Using stochastic frontier analysis (SFA) to determine efficiency scores, we find that developing countries could increase the capital stock by 29% on average without changing their public investment spending. In particular, resource-rich countries could increase the capital stock by 26% without changing their spending. In the second step, we then use the fractional regression model (FRM) to capture the impact of climate change on the investment efficiency values obtained in the first step. Our results show that climate change has a negative impact on public investment efficiency. However, when the climate change index is disaggregated for the regressions, we find that only precipitation has a negative effect, while a 1°C temperature increase in resource-rich countries leads to a 16.32% improvement in public investment efficiency of GDP. These results are also statistically and economically robust to different controls and specifications. The main findings of this paper suggest that policies to address climate change in general and heavy rainfall shocks in particular should include strong provisions for financing more resilient public investments to adapt to climatic conditions and modernise public infrastructures to mitigate the negative environmental impacts for developing countries, especially resource-rich countries.
    Keywords: H81, C12, Q54, Q01, Climate change, Public investment, Technical efficiency, Weather shocks, Environment, Stochastic frontier analysis O13
    Date: 2023–04–11

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