nep-res New Economics Papers
on Resource Economics
Issue of 2023‒07‒24
four papers chosen by
Maximo Rossi
Universidad de la República

  1. The Historical Impact of Coal on Cities By Clay, Karen; Lewis, Joshua; Severnini, Edson R.
  2. Contribution of Agriculture to Climate Change and Low-Emission Agricultural Development in Asia and the Pacific By Aryal, Jeetendra P.
  3. Germans’ Concerns about Climate Protection By Armin Falk; Mark Fallak; Lasse Stötzer
  4. Impact of Environmental Regulation on Cross-Border MAs in high- and low-polluting sectors By Federico Carril-Caccia; Juliette Milgram Baleix

  1. By: Clay, Karen (Carnegie Mellon University); Lewis, Joshua (University of Montreal); Severnini, Edson R. (Carnegie Mellon University)
    Abstract: Historically coal has offered both benefits and costs to urban areas. Benefits include coal's role in fueling industry and thus employment. The primary costs are air pollution and its impact on human health. This paper starts by using a Rosen-Roback style model to examine how differences in local coal availability affect equilibrium city employment. Drawing on the model, the paper surveys papers that examine the net effects of coal on the growth in city population and air pollution on health. The paper then turns to papers that explicitly consider the trade-offs between production benefits and pollution disamenities across space and over time. The paper ends with a discussion of opportunities for future work on coal and cities in historical settings.
    Keywords: coal availability, local development, air pollution, trade-offs of coal consumption
    JEL: N52 N72 O13 Q53 Q56
    Date: 2023–06
  2. By: Aryal, Jeetendra P. (Asian Development Bank Institute)
    Abstract: The agriculture sector in the Asia and Pacific region contributes massively to climate change, as the region has the largest share of greenhouse gas (GHG) emissions from agriculture. The region is the largest producer of rice, a major source of methane emissions. Further, to achieve food security for the increasing population, there has been a massive increase in the use of synthetic fertilizer and energy in agricultural production in the region over the last few decades. This has led to an enormous rise in nitrous oxide (N2O) (mostly from fertilizer-N use) and carbon dioxide (mostly from energy use for irrigation) emissions from agriculture. Besides this, a substantial increase in livestock production for meat and dairy products has increased methane emissions, along with other environmental problems. In this context, we conduct a systematic review of strategies that can reduce emissions from the agriculture sector using a multidimensional approach, looking at supply-side, demand-side, and cross-cutting measures. The review found that though there is a huge potential to reduce GHG emissions from agriculture, significant challenges exist in monitoring and verification of GHG emissions from supply-side measures, shifting to sustainable consumption behavior with regard to food consumption and use, and the design and implementation of regulatory and incentive mechanisms. On the supply side, policies should focus on the upscaling of climate-smart agriculture primarily through expanding knowledge and improving input use efficiency in agriculture, while on the demand side, there is a need to launch a drive to reduce food loss and waste and also to move toward sustainable consumption. Therefore, appropriate integration of policies at multiple levels, as well as application of multiple measures simultaneously, can increase mitigation potential as desired by the Paris Agreement and also help to achieve several of the United Nations’ Sustainable Development Goals.
    Keywords: agriculture; climate change; low-emission agriculture; Asia and the Pacific
    JEL: Q15 Q18 Q24 Q54
    Date: 2022–09
  3. By: Armin Falk (University of Bonn, briq Institute); Mark Fallak (Institute of Labor Economics); Lasse Stötzer (briq Institute)
    Abstract: In a representative survey of around 2, 000 people in Germany, almost two-thirds thought the German govern-ment was doing too little to combat climate change. This dissatisfaction is also widespread among voters of the governing parties. About 89 percent of respondents believe that the government should step up support for solar and wind energy. Almost 74 percent support a much faster expansion of wind turbines, even if this would mean short-er approval procedures and lower distances to dwellings. Strict emission limits for gas and coal-fired power plants, and an increase in the CO2 tax received less support among respondents, at around 60 percent each. More than 80 percent are in favor of discontinuing domestic flights on the condition that the rail network is expanded. Two-thirds support a speed limit of 130 km/h on freeways. Both proposals would command a majority across all electorates – with the exception of the speed limit, which is rejected by more than half of AfD voters. Most incentives to change consumer behavior are also supported by a vast majority. These include stan-dardized labeling of CO2 emissions for food and consumer goods and higher subsidies for climate-friendly behavior. By contrast, only 48 percent would approve of making climate-damaging meat and dairy products more expensive. Two-thirds would support a climate solidarity tax to help lower-income households finance additional spending on climate protection. The high willingness to accept costs or restrictions is in line with people being strongly concerned about the consequences of climate change. A large majority of 78 percent said they were concerned - one-third are even “very concerned”. Almost 84 percent of Germans believe in an obligation to protect the environment for future generations. 56 percent go even further and call on the German government to give greater weight to the needs of young people and future generations than to the needs of older people when making climate-re-lated policy decisions.
    Date: 2023–06
  4. By: Federico Carril-Caccia (Universidad de Granada, Departamento de Economia Española e Internacional); Juliette Milgram Baleix
    Abstract: We test the influence of environmental regulation (ER) on the location decision of cross-border Mergers and Acquisitions (M&As) for a large sample of countries, sectors, and years using a structural gravity model. Our results confirm the pollution haven hypothesis in highly polluting sectors, according to which more stringent ER makes countries less attractive to foreign investors planning to invest through M&As compared with domestic investors. Policies that set quantitative limits on emissions discourage investments in dirty sectors, while taxes on emissions only have a negative impact on clean sectors. The impact of ER differs depending on the type of investors and investees, reflecting the fact that investments in developed countries and BRICS respond to different motivations. In emerging countries, lax ER could attract significantly more inward M&As. In developed countries, ER has a less discouraging effect.
    Keywords: Environmental stringency, pollution havens, M&As, structural gravity, polluting sectors.
    Date: 2023–06–13

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