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on Resource Economics |
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Issue of 2024‒05‒20
four papers chosen by |
| By: | Vesa Pursiainen (University of St. Gallen; Swiss Finance Institute); Meichen Qian (University of Chicago Booth School of Business); Dragon Yongjun Tang (The University of Hong Kong - Faculty of Business and Economics) |
| Abstract: | We study the role of environmental commitments by technology entrepreneurs in their reward-based crowdfunding campaigns. Technology projects with public environmental commitments are significantly less likely to receive funding, but this varies depending on local climate opinions and political views. Backers in areas less concerned about climate change and more Republican areas are significantly less likely to fund campaigns with environmental commitments. The negative relationship between campaign outcomes and environmental commitments is stronger in cases where such commitments might be assumed more costly, suggesting that at least some backers interpret there to be a trade-off between sustainability and other product features. |
| Keywords: | Sustainability, entrepreneurship, crowdfunding, environmental attitudes |
| JEL: | G11 M13 Q55 Q56 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2425&r=res |
| By: | Felix Kubler (University of Zurich) |
| Abstract: | This paper examines constrained optimal carbon pricing in a general equilibrium model with incomplete asset markets. A carbon policy consists of state-dependent carbon taxes and a sharing rule for tax revenue recycling. The social cost of carbon (SCC) is defined as the present value of the future marginal costs of additional CO2 emissions, discounted at (personalized) prices. For the case of complete markets, we state simple, sufficient conditions that ensure that setting carbon taxes equal to the SCC results in a Pareto-efficient competitive equilibrium. When markets are incomplete, constrained Pareto-efficient carbon taxes generically differ from the SCC. To examine the potential quantitative importance of these differences, we consider an Aiyagari [1994]-style model with a climate change externality. We prove that (i) the SCC cannot be estimated from aggregate damage functions and market prices alone, and (ii) the deviations of constrained optimal carbon taxes from the SCC can be arbitrarily large. |
| Keywords: | climate change, financial frictions, heterogeneous agents, carbon taxes, environmental policy, integrated assessment models |
| JEL: | C61 D52 D62 Q51 Q54 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2427&r=res |
| By: | Lee, Wang-Sheng (Monash University); Tran, Trang My (Monash University) |
| Abstract: | Environmental research related to military activities and warfare is sparse and fragmented by discipline. Although achieving military objectives will likely continue to trump any concerns related to the environment during active conflict, military training during peacetime has environmental consequences. This research aims to quantify how much pollution is emitted during regular military exercises which has implications for climate change. Focusing on major military training exercises conducted in Australia, we assess the impact of four international exercises held within a dedicated military training area on pollution levels. Leveraging high-frequency data, we employ a machine learning algorithm in conjunction with program evaluation techniques to estimate the effects of military training activities. Our main approach involves generating counterfactual predictions and utilizing a "prediction-error" framework to estimate treatment effects by comparing a treatment area to a control area. Our findings reveal that these exercises led to a notable increase in air pollution levels, potentially reaching up to 25% relative to mean levels during peak training hours. |
| Keywords: | machine learning, military emissions, military training, pollution |
| JEL: | C55 Q53 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16889&r=res |
| By: | Irene Monasterolo (Utrecht University and SUERF.); Antonia Pacelli (Toulouse School of Economics and INRAE); Marco Pagano (University of Naples Federico II, CSEF, EIEF, and CEPR.); Carmine Russo (University of Naples Federico II) |
| Abstract: | The European Union faces a large climate investment gap. To fill it, we propose the joint issuance of EU climate bonds. These bonds would be funded by the sale of emission allowances, traded on the EU Emissions Trading System and extended to cover all sectors. Access to the resulting funds would be conditional on countries’ performance on the implementation of climate investments. EU climate bonds would meet global demand for a safe and liquid asset, while increasing the speed and efficiency of EU climate investing, its resilience to sovereign crises, and the greening of investors’ portfolios and monetary policy. |
| Keywords: | climate finance, green investment, EU safe asset, emission allowances, ETS. |
| JEL: | D62 E61 H23 H27 P18 Q51 Q52 Q53 Q54 Q58 |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:702&r=res |