|
on Environmental Economics |
| By: | De Valck, Jeremy; Rolfe, John |
| Abstract: | The Great Barrier Reef (GBR) is a World-known, iconic environmental asset whose complex functioning is largely ascribed to its outstanding biodiversity, ranging from genes to plants, animals and entire ecosystems. Biodiversity has been key to its resilience over the past millennia. However, the combined effects of climate change, water quality degradation and coastal development are threatening the GBR’s resilience. There is a crucial need to better understand the value of biodiversity in that region to encourage sustainable policy-making. Different approaches have been suggested in the literature to value biodiversity. First, we review the use of a Total Economic Value framework to look into all dimensions of biodiversity values. Second, we describe an approach relying on ecosystem services. The suitability of these two approaches to value biodiversity in the GBR is assessed. Next, we review 23 finance mechanisms and discuss the possibility to use them to alleviate pressures on ecosystems and biodiversity in the GBR. We conclude by stressing the importance of biodiversity valuation in the GBR, highlight some of the remaining challenges and provide recommendations for future research avenues. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285061&r=all |
| By: | Christos Karydas (ETH Zurich, Switzerland); Anastasios Xepapadeas (Athens University of Economics and Business, Greece) |
| Abstract: | There are concerns that climate-related physical and political risks are not yet properly reflected in asset prices. To address these concerns, we develop a dynamic asset pricing framework with rare disasters related to climate change. The novelty of this paper lies in linking carbon emissions and portfolio composition with the stochastically-varying probability of these events. Using theory and simulations we study the implications of the imminent threat of climate change on different market measures and on the participation of carbon-intensive assets in the aggregate portfolio, as well as the conditions that lead to these assets becoming stranded. Our result suggest that climate change implies a positive and increasing risk premium, with the overall equity premium depending on the volatility of the stochastic process that governs climate change risk. Transition risks lower substantially the participation of carbon intensive assets in the market portfolio, which should be fully de-carbonized by the end of the century for the worst IPCC emissions scenario. |
| Keywords: | Renewable Climate change, Equity premium, Rare events, Fat tails, Stranded assets |
| JEL: | E43 G11 G12 Q51 Q54 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:19-311&r=all |
| By: | Jan Abrell (ETH Zurich, Switzerland); Clemens Streitberger (ETH Zurich, Switzerland); Sebastian Rausch (ETH Zurich, Switzerland) |
| Abstract: | This paper uses theoretical and numerical economic equilibrium models to examine optimal renewable energy (RE) support policies for wind and solar resources in the presence of a carbon externality associated with the use of fossil fuels. We emphasize three main issues for policy design: the heterogeneity of intermittent natural resources, budget-neutral financing rules, and incentives for carbon mitigation. We find that differentiated subsidies for wind and solar, while being optimal, only yield negligible efficiency gains. Policies with smart financing of RE subsidies which either relax budget neutrality or use “polluter-pays-the-price” financing in the context of budget-neutral schemes can, however, approximate socially optimal outcomes. Our analysis suggests that optimally designed RE support policies do not necessarily have to be viewed as a costly second-best option when carbon pricing is unavailable. |
| Keywords: | Renewable Energy, Wind, Solar, Environmental Regulation, Climate Policy, Decarbonization, Renewable Subsidies, Carbon Pricing, Heterogeneity of Natural Resources, Feed-in tariffs, Green quota |
| JEL: | Q28 Q42 Q52 Q58 C61 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18-286&r=all |
| By: | Kirill Borissov (European University at Saint Petersburg, Russia); Lucas Bretschger (ETH Zurich, Switzerland) |
| Abstract: | We derive the optimal contributions to global climate policy when countries differ with respect to income level and pollution intensity. Countries's growth rates are determined endogenously, and abatement effciency is improved by technical progress. We show that country heterogeneity has a crucial impact on optimal policy contributions: more developed countries have to make a larger effort while less developed countries are allowed to graduate under a less stringent environmental regime. The optimal allocation of pollution per- mits depends on international trade. In the absence of international permit trade, more developed countries should receive more permits than the less developed countries but permit prices are higher in the rich countries. With international permit trade, more developed countries receive less permits than the less developed. When global distribution of physical capital is uneven and the aggregate pollution ceiling is low, poor countries receive all the permits and incomes do not converge, even with free trade. |
| Keywords: | Climate policy, growth, abatement efficiency, policy convergence |
| JEL: | Q43 O47 Q56 O41 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18/297&r=all |
| By: | Vo, D.H.; Nguyen, H.M.; Vo, A.T.; McAleer, M.J. |
| Abstract: | The paper investigates the role of consumption of both renewable and sustainable energy, as well as alternative and nuclear energy, in mitigating the effects of carbon dioxide (CO2) emissions, based on the Environmental Kuznets Curve (EKC). The papers introduces a novel variable to capture trade openness, which appears to be a crucial factor in inter-regional co-operation and development, in order to evaluate its effect on the environment, The empirical analysis is based on a sample of nine signatories to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for the period 1971-2014, which is based on data availability. The empirical analysis is based on several time series econometric methods, such as the cointegration test, two long run estimators, namely the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methods, as well as the Granger causality test. There are several noteworthy empirical findings: it is possible to confirm the U-shaped EKC hypothesis for six countries, namely Australia, Canada, Chile, New Zealand, Peru and Vietnam; there is no evidence of the EKC for Mexico; a reverse-shaped EKC is observed for Japan and Malaysia, there are long run relationships among the variables, the adoption of either renewable energy, or alternative energy and nuclear energy, mitigates CO2 emissions, trade openness leads to more beneficial than harmful impacts in the long run, the Granger causality tests show more bi-directional-relationships between the variables in the long run, and the Granger causality tests show more uni-directional-relationships between the variables in the short run. |
| Keywords: | Renewable and sustainable energy, alternative energy, nuclear energy, carbon, emissions, CPTPP, EKC hypothesis, DOLS, FMOLS, Granger causality, VECM |
| JEL: | C12 C52 Q42 Q43 |
| Date: | 2019–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ems:eureir:115609&r=all |
| By: | Aimilia Pattakou (ETH Zurich, Switzerland); Aryestis Vlahakis (ETH Zurich, Switzerland) |
| Abstract: | Can subsidies to renewable energy effectively internalise CO2 costs in electricity production? Under current policy design it only matters that the replaced energy is dirty, but not how dirty it is. We use a modified peak-load pricing model, including variable renewable generators and the external costs of carbon, to examine the way in which a unit subsidy to variable renewables cannot restore first best optimum. In our model, electricity is generated using a combination of three technology types: two dispatchable, thermal, and CO2 emitting technologies, differing in their emission intensity, and a non-dispatchable renewable technology. We show that available wind capacity is never idle, and derive equations determining optimal installed capacities for all technologies. We then describe the mechanism by which a subsidy that does not discriminate between dirty energies fails to restore first best. Our analysis highlights the importance of a carbon price: even one below the social cost of carbon could have a corrective effect on the merit order of fossil fuels and improve the effectiveness of a subsidy. |
| Keywords: | Energy policy, Renewable energy, Environmental subsidy |
| JEL: | Q42 Q48 H23 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18-295&r=all |
| By: | Shashwat Koirala |
| Abstract: | Small and medium-sized enterprises (“SMEs”) are important stakeholders for both environmental and economic policymaking. Among OECD countries, they represent roughly 99.7% of all enterprises and 60% of total employment. Simultaneously, while their individual environmental footprint is small, on aggregate, SMEs contribute up to 70% of industrial pollution in Europe. Thus, they have tremendous potential as drivers of green and inclusive growth. Through a comprehensive literature review, this issue paper assesses the trade-offs and synergies between SMEs’ ability to deliver green growth – through greening processes like eco-innovation and adoption of green measures - and their ability to contribute to inclusive growth – through job creation and inclusive business models. This issue paper also reviews relevant policy measures that can help SMEs navigate the opportunities and challenges in delivering green and inclusive growth. |
| Date: | 2019–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envddd:2019/03-en&r=all |
| By: | Lucas Bretschger (ETH Zurich, Switzerland); Alexandra Vinogradova (ETH Zurich, Switzerland) |
| Abstract: | Climate economics has been criticized for ignoring uncertainty, catastrophic changes, and tipping points (Stern 2016). The present paper addresses these issues. We consider multiple climate shocks which are recurring, random, uninsurable, and potentially large. The associated damages and the hazard rate are endogenously driven by the stock of greenhouse gases. We provide closed-form solutions for the optimal climate policy and the growth rate of the economy. The optimal path is characterized by a constant growth rate of consumption and of the capital stock until a shock arrives, triggering a downward jump in both variables. The mitigation policy consists of a simple and intuitive rule which requires spending a constant fraction of output on emissions abatement. In a quantitative assessment we show that under favorable conditions the abatement expenditure represents 0.5% of output, equivalent to $37 per ton carbon. Under less favorable conditions with respect to abatement technology and damages, coupled with a relative risk aversion which exceeds unity, the abatement propensity increases to 2.9%, equivalent to $212 per ton carbon, and it jumps to a striking 10% in the pessimistic scenario involving severe shocks and a possible crossing of a tipping point. |
| Keywords: | Climate policy, uncertainty, natural disasters, endogenous growth |
| JEL: | O10 Q52 Q54 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18/2891&r=all |
| By: | Lucas Bretschger (ETH Zurich, Switzerland); Susanne Soretz (University of Greifswald, Germany) |
| Abstract: | Standard environmental economics prescribes policies which are optimal and implemented immediately. The paper argues that, in reality, environmental policy often deviates from the optimum and implementation is not deterministic but subject to major uncertainty and frequent change. We present a model with a stochastic policy process that affects investors’ decisions and the composition of capital. We assume that pollution is reduced by private green services and public abatement. The government subsidizes green services and taxes dirty capital albeit at a rate which may become random, causing unexpected capital write-offs. Tax jumps depend on environmental degradation and the share of green services. We show how policy uncertainty affects capital valuation and how it alters individual portfolios, green services, and economic growth. |
| Keywords: | Policy uncertainty; stranded assets; private abatement; stochastic growth |
| JEL: | Q52 Q54 O10 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18/288&r=all |
| By: | Andreas Schäfer (University of Bath, UK); Anna Stünzi (ETH Zurich, Switzerland) |
| Abstract: | In an OLG model with multiple steady states we analyse the impact of endogenous environmental policies on the relevance of history and expectations for the equilibrium selection. In a polluting regime environmental preferences cause an increasing energy tax which raises the risk that the economy transits to the inferior equilibrium under pessimistic expectations. However, higher environmental preferences imply an earlier switch to the clean energy regime. Then, the conflict between production and environmental preferences is resolved and the prospects to select the superior equilibrium improve, since positive expectations become more relevant. In an empirical analysis we find that people with environmental preferences tend to have more optimistic expectations about economic development. Using these findings to analyse the steady state dynamics implies that agents with environmental preferences support higher energy taxes and switch faster to clean production. Due to their optimism, the likelihood to reach the superior stable steady state increases. |
| Keywords: | Expectations, Multiple Equilibria, Endogenous Taxation, Green Preferences |
| JEL: | Q43 O44 Q50 O11 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18-305&r=all |
| By: | Ceccarelli, Marco; Ramelli, Stefano; Wagner, Alexander F |
| Abstract: | In April 2018, the investment platform and financial advisor Morningstar introduced a new eco-label for mutual funds, the Low Carbon Designation (LCD). The unexpected release of this label induced responses by (1) investors and (2) mutual funds. First, investors flocked to funds labeled as Low Carbon. Through the end of 2018, such funds enjoyed a 3.1% increase in assets compared to otherwise similar funds. This effect was distinct from that of more generic sustainability ratings ("Globes"), and it reversed for funds that lost the label in August or November 2018. Second, managers of just-missing funds adjusted their holdings towards lower carbon risk and lower fossil fuel involvement, the two criteria used to assign the LCD. Both the rewards-for-LCD and the moving-towards-LCD effects are stronger for European funds, retail funds, funds with weak financial performance, and low-sustainability funds. Overall, the findings suggest that as investors become more sensitive to the topic of climate change, financial intermediaries also use existing investment vehicles to respond to the increasing demand for climate-conscious investment products. |
| Keywords: | behavioral finance; climate change; eco-labels; investor preferences; Mutual funds; Sustainable Finance |
| JEL: | D03 G02 G12 G23 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13599&r=all |
| By: | Morana, Claudio; Sbrana, Giacomo |
| Abstract: | Concurrent with the rapid development of the market for catastrophe (cat) bonds, a steady decline in their risk premia has been observed. Whether the latter trend is consistent with the evolution of natural disasters risk is an open question. Indeed, a large share of outstanding risk capital in the cat bonds market appears to be exposed to some climate change-related risk as, for instance, hurricane risk, which global warming is expected to enhance. This paper addresses the above issue by assessing the global warming evidence, its implications for the natural environment and the drivers of cat bonds risk premia. We find that radiative forcing, i.e. the net insolation absorbed by the Earth, drives the warming trend in temperature anomalies and the trend evolution of natural phenomena, such as ENSO and Atlantic hurricanes, enhancing their disruptive effects. Hence, in the light of the ongoing contributions of human activity to radiative forcing, i.e., greenhouse gases emissions, natural disasters risk appears to be on a raising trend. Yet, the latter does not appear to have been accurately priced in the cat bonds market so far. In fact, while we find that the falling trend in cat bonds multiples is accounted by the expansionary monetary stance pursued by the Fed, we do also find evidence of significant undervaluation of natural disasters risk. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemci:268728&r=all |
| By: | Alexander Mackie; Ivan Haščič |
| Abstract: | This paper reviews the empirical evidence on the socioeconomic distribution of exposure to a selection of common environmental risks such as air and noise pollution and natural hazards, and of access to amenities such as green space. It finds that there are many examples where disadvantaged groups within countries, regions or cities are exposed to greater environmental risks, and ultimately greater potential harm or damages, or have poorer access to amenities than more advantaged groups. However, this pattern is not ubiquitous, there are examples in the literature where no difference, or the opposite difference is observed. Next, the paper reviews the empirical literature on the distributional effects of environmental policies. It concludes that although the evidence on the direct effects of environmental policy varies by policy instrument type, the general lesson is that well-designed environmental policy reforms incorporating appropriately targeted compensation schemes (e.g. within existing social welfare systems) can neutralise direct negative distributional outcomes and generate progressive outcomes overall. |
| Date: | 2019–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envddd:2019/02-en&r=all |
| By: | William Brock; Anastasios Xepapadeas |
| Abstract: | We study climate change policies using the novel pattern scaling approach of regional transient climate response, to develop a regional economy-climate model under conditions of deep uncertainty associated with: (i) temperature dynamics, (ii) regional climate change damages, and (iii) policy in the form of carbon taxes. We analyze cooperative and noncooperative outcomes. Under deep uncertainty, robust control policies are more conservative regarding emissions, the higher the aversion to ambiguity is, while damage uncertainty seems to produce more conservative behavior than climate dynamics uncertainty. As concerns about uncertainty increase, cooperative and noncooperative policies tend to move close together. Asymmetries in concerns about uncertainty tend to produce large deviations in regional emissions policy at the noncooperative solution. We calculate the cost of robustness in terms of welfare. If aversion to ambiguity is suciently high, optimal regulation might not be possible. The result is associated with the existence of regional hot spots and temperature spillovers across regions, a situation which emerges in the real world. In such cases, deep uncertainty about the impacts of climate change makes robust regulation infeasible. We show that, if resources are devoted to learning, which reduces uncertainty concerns, robust regulation is facilitated. |
| Keywords: | Regional temperature anomalies, Deep uncertainty, Cooperative solution solutions, Robust Open Loop Nash Equilibrium, Cost of Robustness, Learning |
| JEL: | Q54 Q58 D81 |
| Date: | 2019–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1903&r=all |
| By: | Thomas Eichner; Rüdiger Pethig |
| Abstract: | We investigate the displacement effects of phase-out-of-coal policies in a stylized model of electricity generation and CO2 regulation, in which a group of countries operates an emissions trading scheme (ETS). Electricity markets are either international or national and the emissions cap remains either unchanged or is tightened. With constant emissions cap and trade in electricity, some emissions as well as some coal-based electricity ‘leak’ into other countries and the aggregate welfare of the group of countries declines, if a country unilaterally phases out coal. With constant emissions cap and no trade in electricity, the unilaterally phasing-out country is worse off and the other countries are better off. Following a suggestion in a recently revised EU ETS Directive, we then combine a country’s phase-out policy with canceling the permits it formerly used to generate electricity from coal. When electricity is traded, that combined policy prevents the leakage of emissions and coal-based electricity and shifts a share of the welfare costs to other countries. Without trade in electricity, the other countries generate less coal-based electricity and all countries’ consumption welfare decreases, but all countries benefit from reduced climate damage. Finally, we offer an empirical calibration of our model to the European Union. |
| Keywords: | phase-out, gas, electricity, leakage, ETS |
| JEL: | H22 Q37 Q48 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7554&r=all |
| By: | Leitão, Nuno Carlos |
| Abstract: | The climate change has inspired the interest of the academic community in the most diverse areas of knowledge. This study tests and revisited the environmental Kuznets curve assumptions for Portugal. The econometric strategy used in this research is time series (ARIMA model, OLS estimator, ARCH regression, VAR model, and Granger causality) for the time period 1980-2013.The econometric results show that the income per capita and squared income per capita are according to the expected signs, i.e. a positive impact of income per capita on carbon dioxide emissions, and a negative effect of squared income per capita on carbon dioxide emissions. The empirical study also demonstrates that Portugal presents a dependence on energy consumption. The openness trade and foreign direct investment are negatively correlated with carbon dioxide emissions. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemci:273122&r=all |
| By: | Sebastian Rausch (ETH Zurich, Switzerland); Hidemichi Yonezawa (ETH Zurich, Switzerland) |
| Abstract: | We examine the lifetime incidence and intergenerational distributional effects of an economywide carbon tax swap using a numerical dynamic general equilibrium model with overlapping generations of the U.S. economy. We highlight various fundamental choices in policy design including (1) the level of the initial carbon tax, (2) the growth rate of the carbon tax trajectory of over time, and (3) alternative ways for revenue recycling. Without revenue recycling, we find that generations born before the tax is introduced experience smaller welfare losses, or even gain, relative to future generations. For suffciently low growth rates of the tax trajectory, the impacts for distant future generations decrease over time. For future generations born after the introduction of the tax, the negative welfare impacts are the smallest (largest) when revenues are recycled through lowering pre-existing capital income taxes (through per-capita lump-sum rebates). For generations born before the tax is introduced, we find that lump-sum rebates favor very old generations and labor (capital) income tax recycling favors very young generations (generations of intermediate age). |
| Keywords: | Carbon tax, Green Tax Reform, Intergenerational Incidence, Distributional Impacts, Overlapping Generations, Climate Policy |
| JEL: | H23 Q52 D91 Q43 C68 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18-287&r=all |
| By: | Bodansky, Daniel M.; Hoedl, Seth A.; Metcalf, Gilbert E.; Stavins, Robert N. |
| Abstract: | Negotiations pursuant to the Durban Platform for Enhanced Action appear likely to lead to a 2015 Paris agreement that embodies a hybrid climate policy architecture, combining top-down elements, such as for monitoring, reporting, and verification, with bottom-up elements, including “nationally determined contributions” from each participating country, detailing what it intends to do to reduce emissions, based on its national circumstances. For such a system to be cost-effective—and thus more likely to achieve significant global emissions reductions—a key feature will be linkages among regional, national, and sub-national climate policies. By linkage, we mean a formal recognition by a greenhouse gas mitigation program in one jurisdiction (a regional, national, or sub-national government) of emission reductions undertaken in another jurisdiction for purposes of complying with the first jurisdiction’s mitigation program. We examine how a future international policy architecture could help facilitate the growth and operation of a robust system of international linkages of regional, national, and sub-national policies. Several design elements merit serious consideration for inclusion in the Paris agreement, either directly or by establishing a process for subsequent international elaboration. At the same time, including detailed linkage rules in the core agreement is not desirable because this could make it difficult for rules to evolve in light of experience. |
| Keywords: | Environmental Economics and Policy |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemcl:202114&r=all |
| By: | Shayegh, Soheil; Bosetti, Valentina; Dietz, Simon; Emmerling, Johannes; Hambel, Christoph; Jensen, Svenn; Kraft, Holger; Tavoni, Massimo; Traeger, Christian; Van der Ploeg, Rick |
| Abstract: | Over the last few decades, integrated assessment models (IAM) have provided insight into the relationship between climate change, economy, and climate policies. The limitations of these models in capturing uncertainty in climate parameters, heterogeneity in damages and policies, have given rise to skepticism about the relevance of these models for policy making. IAM community needs to respond to these critics and to the new challenges posed by developments in the policy arena. New climate targets emerging from the Paris Agreement and the uncertainty about the signatories’ commitment to Nationally Determined Contributions (NDCs) are prime examples of challenges that need to be addressed in the next generation of IAMs. Given these challenges, calculating the social cost of carbon requires a new framework. This can be done by computing marginal abatement cost in cost-effective settings which provides different results than those calculated using constrained cost-benefit analysis. Here we focus on the areas where IAMs can be deployed to asses uncertainty and risk management, learning, and regional heterogeneity in climate change impacts. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemci:273369&r=all |
| By: | Diamantoudi, Effrosyni; Sartzetakis, Eftichios; Strantza, Stefania |
| Abstract: | The present paper examines the stability of self-enforcing International Environmental Agreements (IEAs) among heterogeneous countries in a twostage emission game. In the first stage each country decides whether or not to join the agreement, while in the second stage the quantity of emissions is chosen simultaneously by all countries. We use quadratic benefit and environmental damage functions and assume k types of countries that differ in their sensitivity to the global pollutant. We find that the introduction of heterogeneity does not yield larger stable coalitions. In particular, we show that, in the case of two types, when stable coalitions exist their size is very small, and, if the asymmetry is strong enough, they include only one type of countries. Moreover, heterogeneity can reduce the scope of cooperation relative to the homogeneous case. We demonstrated that introducing asymmetry into a stable, under symmetry, agreement can disturb stability. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemci:274850&r=all |
| By: | Nesta, Lionel; Verdolini, Elena; Vona, Francesco |
| Abstract: | This paper analyzes the effect of environmental policies on the direction of energy innovation across countries over the period 1990-2012. Our novelty is to use threshold regression models to allow for discontinuities in policy effectiveness depending on a country's relative competencies in renewable and fossil fuel technologies. We show that the dynamic incentives of environmental policies become effective just above the median level of relative competencies. In this critical second regime, market-based policies are moderately effective in promoting renewable innovation, while command-and-control policies depress fossil based innovation. Finally, market-based policies are more effective to consolidate a green comparative advantage in the last regime. We illustrate how our approach can be used for policy design in laggard countries. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies |
| Date: | 2018–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemci:268731&r=all |
| By: | Bošković, Branko; Chakravorty, Ujjayant; Pelli, Martino; Risch, Anna |
| Abstract: | Fuelwood collection is often cited as the most important cause of deforestation in developing countries. Use of fuelwood in cooking is a leading cause of indoor air pollution. Using household data from India, we show that households located farther away from the forest spend more time collecting. Distant households are likely to sell more fuelwood and buy less. That is, lower access to forests increases fuelwood collection and sale. This counter-intuitive behavior is triggered by two factors: lower access to forests (a) increases the fixed costs of collecting, which in turn leads to more collection; and (b) drives up local fuelwood prices, which makes collection and sale more profitable. We quantify both these effects. Using our estimates we show that a fifth of the fuelwood collected is consumed outside of rural areas, in nearby towns and cities. Our results imply that at the margin, fuelwood scarcity may lead to increased collection and sale, and exacerbate forest degradation. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemci:274849&r=all |
| By: | Mutiara, Vonny Indah; Utami, Ami Sukma; Hariance, Rika |
| Abstract: | Climate change and natural disaster has both direct and indirect effects on agricultural productivity including changing rainfall patterns, drought, flooding and the geographical redistribution of pests and diseases and importantly, the agricultural land use changes to no Agricultural land. Global land system changes are occurring at an unprecedented pace and have major implications for the environment and human well-being. These impact also occurs in West Sumatera, Indonesia. Climate change has impact to agricultural activities such as drought and harvest failure thus posing a risk for farmer. While the natural disaster such earthquake in 2009 resulted the movement of people from coastal area to upland area whereas the agricultural land exist. So that this study aims to analysis the land system resilience of farmer in West Sumatera. This study using a desk study method. The result of the study shows that the matrilineal system in Minangkabau tribe is forcing the farmer to preserve their agricultural land. Most natural resource property, and especially the irrigated rice fields, was inherited property of matrilineages. These Minangkabau people-property complexes were characterized by differentiated mixes of rights held and inherited by individuals or groups within the matrilineage. The property that the ancestors of the lineage members created through their cultivation of the jungle, which descends and is to be shared in continuity through the generations of all lineage members who can trace their matrilineal descent from these ancestors. In other word this property cannot be sold. We study three different location are with different agricultural plant. The first location is Padang City, where most of the farmer cultivate rice. The result shows that the farmers preserve their land because of their land ownership is communal land that belong to tribes in Padang. The same result was founded in Agam District, where the horticultural farmers preserve their land because the land is a high heritage. Surprisingly, in the third location, in West Pasaman, we found different result. The Palm oil farmers have sold their high inheritance land and the land has been certified so that it is no longer belong to communal. It is because oil palm have high economic value rather than the other agricultural products. |
| Keywords: | Land Economics/Use |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285082&r=all |
| By: | Benyam, Addis; Rolfe, John; Kinnear, Susan |
| Abstract: | The cost of disposing domestic food waste (DFW) in open landfills is a significant financial expenditure for most Councils in regional Australia. However, there is little information about the extent that householders value the environmental goods and services that are impacted by DFW disposal. This paper presents non-market valuations for a hypothetical kerbside domestic food waste collection service from a household survey in two local government areas in the Central Queensland region. Choice modelling (CM) and contingent valuation method (CVM) were employed to elicit and estimate willingness to pay (WTP) of the community for a DFW collection service. In the CM exercise, latent class analysis results for the sub-groups supporting an improvement option revealed that the respondents’ utility increased by $4.13 for lifespan expansion of the local landfill. On the contrary, the group had $3.05 and $0.28 utility declines for a fortnightly DFW collection service and an increase in the rate of methane emission from DFW disposal, respectively. For the status quo group, utility increased by $5.05 for a landfill lifespan extension but decreased by $16.26 for potential odour from the collection bins. Under the CVM exercise, a Multilogit estimator model for the overall sample population showed a WTP of $30.42 for the service, with 58% participation rate in the improvement option. This valuation study provides policy insights on the importance of full-cost accounting of environmental goods and services attributes, which is useful information for future implementation of voluntary or mandatory DFW diversion schemes. |
| Keywords: | Consumer/Household Economics |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285074&r=all |
| By: | Lucas Bretschger (ETH Zurich, Switzerland); Christos Karydas (ETH Zurich, Switzerland) |
| Abstract: | The paper develops the Basic Climate Economic (BCE) model featuring the core elements of climate economics and climate policy. The BCE model incorpo- rates fossil stock depletion, pollution stock accumulation, endogenous growth, and climate-induced capital depreciation. We first use graphical analysis to show the effects of climate change and climate policy on economic growth. In- tuition for the different model mechanisms, the functional forms, and the effects of different climate policies is provided. We then show the model equations in mathematical terms to derive closed-form solutions and to run model simula- tions relating to the graphical part. Finally, we compare our setup to other models of climate economics. |
| Keywords: | Climate change, endogenous growth, climate policy, resource use, stock pollution |
| JEL: | Q43 O47 Q56 O41 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18-296&r=all |
| By: | Diamantoudi, Effrosyni; Sartzetakis, Eftichios; Strantza, Stefania |
| Abstract: | This paper examines the stability of International Environmental Agreements (IEAs) in an economy with trade. We extent the basic model of the IEAs by letting countries choose emission taxes and import tariffs as their policy instruments in order to manage climate change and control trade. We define the equilibrium of a three-stage emission game. In the first stage, each country decides whether or not to join the agreement. In the second stage, countries choose simultaneously - cooperatively or non-cooperatively - tariff and tax levels. In the third stage, taking countries’ decisions as given, firms compete a la Cournot in the product markets. Numerical analysis illustrates that the interaction between trade and environment policies is essential in enhancing cooperation. Contrary to the IEA model, stable agreements are larger and more efficient in reducing aggregate emissions and improving welfare. Moreover, the analysis shows that the size of a stable agreement increases in the number of countries affected by the externalities. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemci:274851&r=all |
| By: | Rösemann, Claus; Haenel, Hans-Dieter; Dämmgen, Ulrich; Döring, Ulrike; Wulf, Sebastian; Eurich-Menden, Brigitte; Freibauer, Annette; Döhler, Helmut; Schreiner, Carsten; Osterburg, Bernhard; Fuß, Roland |
| Abstract: | The report at hand (including a comprehensive annex of data) serves as additional document to the National Inventory Report (NIR) on the German green house gas emissions and the Informative Inventory Report (IIR) on the German emissions of air pollutants (especially ammonia). The report documents the calculation methods used in the German agricultural inventory model GAS-EM as well as input data, emission results and uncertainties of the emission reporting submission 2018 for the years 1990 - 2017. In this context the sector Agriculture comprises the emissions from animal husbandry, the use of agricultural soils and anaerobic digestion of energy crops. As required by the guidelines, emissions from activities preceding agriculture, from the use of energy and from land use change are reported elsewhere in the national inventories. The report at hand (including a comprehensive annex of data) serves as additional document to the National Inventory Report (NIR) on the German green house gas emissions and the Informative Inventory Report (IIR) on the German emissions of air pollutants (especially ammonia). The report documents the calculation methods used in the German agricultural inventory model GAS-EM as well as input data, emission results and uncertainties of the emission reporting submission 2018 for the years 1990 - 2017. In this context the sector Agriculture comprises the emissions from animal husbandry, the use of agricultural soils and anaerobic digestion of energy crops. As required by the guidelines, emissions from activities preceding agriculture, from the use of energy and from land use change are reported elsewhere in the national inventories.The report at hand (including a comprehensive annex of data) serves as additional document to the National Inventory Report (NIR) on the German green house gas emissions and the Informative Inventory Report (IIR) on the German emissions of air pollutants (especially ammonia). The report documents the calculation methods used in the German agricultural inventory model GAS-EM as well as input data, emission results and uncertainties of the emission reporting submission 2018 for the years 1990 - 2017. In this context the sector Agriculture comprises the emissions from animal husbandry, the use of agricultural soils and anaerobic digestion of energy crops. As required by the guidelines, emissions from activities preceding agriculture, from the use of energy and from land use change are reported elsewhere in the national inventories. The calculation methods are based in principle on the international guidelines for emission reporting and have been continuingly improved during the past years by the Thünen Institute working group on agricultural emission inventories, partly in cooperation with KTBL. In particular, these improvements concern the calculation of energy requirements, feeding and the N balance of the most important animal categories. In addition, technical measures such as air scrubbing (mitigation of ammonia emissions) and digestion of animal manures (mitigation of emissions of methane and laughing gas) have been taken into account. For the calculation of emissions from anaerobic digestion of animal manures and energy crops (including spreading of the digestate), the aforementioned working group developed, in cooperation with KTBL, a national methodology. |
| Keywords: | Environmental Economics and Policy, Farm Management |
| Date: | 2019–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:jhimwo:285071&r=all |
| By: | Hans Gersbach (ETH Zurich, Switzerland); Marie-Catherine Riekhof (ETH Zurich, Switzerland) |
| Abstract: | Innovation clusters combining public and private effort to develop breakthrough technologies promise greater technological advances to slow down climate change. We use a multi-country model with emissions permit trade to examine how international climate policy can incentivize countries to create such clusters. We find that a minimal carbon price is needed to attract applied research firms, but countries may nevertheless fail to invest in complementary research infrastructure. We construct a mechanism that leads to innovation clusters. It is a combination of low permit endowments for the country with the lowest costs to build the needed infrastructure, compensation for this country by profits from permit trade, and maximal possible permit endowments for the remaining countries. |
| Keywords: | International permit markets, Carbon prices, Innovation clusters, Research infrastructure, Applied R&D, Climate change mitigation, Externalities |
| JEL: | H23 Q54 O32 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18-303&r=all |
| By: | Jeremias Mate, Balogh |
| Abstract: | The global food system, from fertilizer production to food packaging, is responsible for one-third of all human-caused greenhouse gas emissions. On average, carbon footprint represents more than 50% of the total ecological footprint in the world. Carbon footprint is said to be a widely accepted indicator of GHG intensity, originating from different economic activities. Due to its important role in raising awareness of global warming, scientists and policymakers also use it as a management tool. However, the application of carbon footprint on the agricultural sector is still limited in the literature. The aim of the paper is to explore what agriculture-specific factors influence the carbon footprint at a global level. This research investigates the determinants of the carbon footprint on a global sample, considering the role of agriculture and trade for a period of 1961-2013. Data are derived from the Global Footprint Network and the World Bank databases. The sample includes a panel dataset of 133 countries and 53 years’ period. A feasible generalized least squares estimator is applied to the sample in order to estimate the regression model, along with panel tests. Results show that carbon footprint is stimulated by economic development and agricultural production (arable land, agricultural machinery, fertilizer use). Furthermore, agricultural trade has a positive impact on the carbon footprint. By contrast, the growth of carbon footprint is negatively related to the higher share of rural population and agricultural development. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285052&r=all |
| By: | Enrico Botta |
| Abstract: | The paper discusses the implications of the low-carbon transition for workers and the relevant lessons-learnt in previous industrial restructuring experiences. The evidence suggests that, while climate policies are likely to have a modest impact on aggregate employment, workers in certain regions and industries can be more severely affected. The transition may also have gender-differentiated impacts: men represent the largest share of the workforce of most negatively affected industries (e.g. coal-mining) while the growth of the renewable power generation sector, which exhibits a relatively more gender-balanced workforce, suggests that female employment may increase in the traditionally male-dominated energy sector. Lessons from the case-studies underline that a suite of polices is necessary to manage the structural adjustment process, including structural reforms and skills policies. Importantly, the low-carbon transition differentiates itself from previous restructuring experiences because of its policy-driven nature and the possibility to finance structural adjustment measures through carbon-pricing revenues. |
| Date: | 2019–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envddd:2019/04-en&r=all |
| By: | Diamantoudi, Effrosyni; Sartzetakis, Eftichios; Strantza, Stefania |
| Abstract: | The paper examines the stability of self-enforcing International Environmental Agreements (IEAs) among heterogeneous countries, allowing for transfers. We employ a two-stage, non-cooperative model of coalition formation. In the first stage each country decides whether or not to join the agreement, while in the second stage countries choose their emissions simultaneously. Coalition members agree also to share the gains from cooperation in the first stage. We use quadratic benefit and environmental damage functions and assume two types of countries differing in their sensitivity to the global pollutant. In examining the impact of transfers on the coalition size, we apply the notion of Potential Internal Stability (PIS). Results show that transfers can increase cooperation among heterogeneous countries. However, the increase in the coalition size, relative to the case without transfers, comes only from countries belonging to the type with the lower environmental damages, which are drawn into the coalition by the transfers offered. Furthermore, the level of cooperation increases with the degree of heterogeneity. However, the reduction in aggregate emissions achieved by the enlarged coalition is very small leading to dismal improvement in welfare, which confirms the "paradox of cooperation". |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemci:273370&r=all |
| By: | Karine Constant (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12); Marion Davin (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier) |
| Abstract: | In this paper, we consider the unequal distribution of climate change damages in the world and we examine how the underlying costs can spread from a vulnerable to a non-vulnerable country through international trade. To focus on such indirect effects, we treat this topic in a North-South trade overlapping generations model in which the South is vulnerable to the damages entailed by global pollution while the North is not. We show that the impact of climate change in the South can be a source of welfare loss for northern consumers, in both the short and the long run. In the long run, an increase in the South's vulnerability can reduce the welfare in the North economy even in the case in which it improves its terms of trade. In the short run, the South's vulnerability can also represent a source of intergenerational inequity in the North. Therefore, we emphasize the strong economic incentives for non-vulnerable - and a fortiori less-vulnerable - economies to reduce the climate change damages on - more - vulnerable countries. |
| Keywords: | overlapping generations,international trade,heterogeneous damages,climate change |
| Date: | 2018–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-01947416&r=all |
| By: | LaFrance, Jeffery T.; Shimshack, Jay P.; Watts, Myles J. |
| Abstract: | Use of public natural resources for private gain is a longstanding, hotly contested politicaleconomic issue across the world. Publicly owned natural resources generate social benefits beyond private commodity uses and exploitation – recreational, environmental, ecological, biological, preservation and conservation, existence values, and aesthetics. The dynamics of natural resource use and exploitation leads to asymmetric information on the actions taken to exploit resource, the stock levels of resources, and net benefit flows to society. Imperfect and costly monitoring and enforcement in a continuous time setting lead to new questions, results, and insights. We model this as a countable sequence of dynamic sub-games. Each sub-game is played in continuous time for a random length of time between monitoring events with an infinite support. Each subgame has three players: a public natural resource administrator, the principle; a private commodity user, the agent; and nature, which serves to draw a random agent from a measure space of potential commodity uses at the beginning of each sub-game and to draw the random time between sequential monitoring events. These are not repeated games, even in a stationary long-run equilibrium distribution context. An interior solution is obtained for the optimal monitoring rate and penalty function in the event of noncompliance. Several new results are obtained that, on the surface, appear to be somewhat surprising, perhaps even contrary to standard results on regulation and externalities in commodity use. The results relate to, extend, and connect several strands of the existing literature – including efficiency wages, crime and punishment, environmental regulation, and dynamic games. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285066&r=all |
| By: | Duran, Orencio; Johnston, Robert J.; Kirwan, Matthew L.; Leroux, Anke D.; Martin, Vance L. |
| Abstract: | The sustainability of dynamic natural systems often depends on their capacity to adapt to uncertain climate-related changes, where different management options may be combined to facilitate this adaptation. Salt marshes exemplify such a system. Marsh sustainability under rapid sea level rise requires the preservation of transgression zones - undeveloped uplands onto which marshes migrate. Whether these uplands eventually become marsh depends on uncertain sea level rise and natural dynamics that determine migration onto different land types. Under conditions such as these, systematically diversi ed management actions likely outperform ad hoc or non-diversi ed alternatives. This paper develops the first adaptation portfolio model designed to optimize the bene fits of a migrating coastal resource. Results are illustrated using a case study of marsh conservation in Virginia, USA. Results suggest that models of this type can enhance adaptation benefits beyond those available via current approaches. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285075&r=all |
| By: | Paulin Ibanda Kabaka (LAM - Les Afriques dans le monde - Sciences Po - CNRS - Centre National de la Recherche Scientifique, Centre de recherche Pau Droit Public - UPPA - Université de Pau et des Pays de l'Adour, UPPA - Université de Pau et des Pays de l'Adour) |
| Abstract: | This article analyzes the impact of logging in the DR Congo on the state of forests, public revenues and improving the living conditions of indigenous peoples and those bordering on forests. A forestry reform has been launched since 2002 at the instigation of the World Bank to promote the sustainable management of forests and the development of forest populations. However, the evaluation of this public forest policy, which we have carried out after 14 years of application in order to measure its impact on sustainable forest management, forestry taxation and the local development of forest populations, shows that, if The forestry reform in 2002 contributed to a slight improvement in the mobilization of forest tax revenues, but did not favor the sustainability of forests and the protection of the rights of forest peoples. Thus, we suggest some reforms to improve this forestry policy. |
| Abstract: | Dans cet article, il est question de faire une analyse des conséquences de l'exploitation forestière en RD Congo sur l'état des forêts, sur les recettes publiques et sur l'amélioration des conditions de vie des populations autochtones et riveraines des forêts. En effet, une réforme forestière est engagée depuis 2002 à l'instigation de la Banque mondiale dans le but de favoriser la gestion durable des forêts et le développement des populations forestières. Cependant l'évaluation de cette politique publique forestière, que nous avons réalisée après quatorze ans d'application afin d'en mesurer l'impact sur la gestion durable des forêts, la fiscalité forestière et le développement local des populations forestières, montre que , si la réforme forestière de 2002 a contribué a une légère amélioration de la mobilisation des recettes fiscales forestières, elle n'a pas en revanche favorisé la durabilité des forêts ainsi que la protection des droits des populations forestières. Ainsi, nous suggérons certaines réformes consistant à améliorer cette politique forestière. |
| Date: | 2019–03–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02062608&r=all |
| By: | Philippe Le Coent (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Raphaële Preget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Sophie Thoyer (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier) |
| Abstract: | This article analyses the role played by social norms in farmers' decisions to enroll into an agri-environmental scheme (AES). First, it develops a simple theoretical model highlighting the interplay of descriptive and injunctive norms in farmers' utility functions. Second, an empirical valuation of the effect of social norms is provided based on the results of a stated preference survey conducted with 98 wine-growers in the South of France. Proxies are proposed to capture and measure the weight of social norms in farmers' decision to sign an agri-environmental contract. Our empirical results indicate that the injunctive norm seems to play a stronger role than the descriptive norm. |
| Keywords: | agri-environmental contracts,behaviour,social norms |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:halshs-01936004&r=all |
| By: | Purkus, Alexandra; Lüdtke, Jan; Becher, Georg; Dieter, Matthias; Jochem, Dominik; Lehnen, Ralph; Liesebach, Mirko; Polley, Heino; Rüter, Sebastian; Schweinle, Jörg; Weimar, Holger; Welling, Johannes |
| Abstract: | The Charter for Wood 2.0 (CfW 2.0) aims to increase the contribution of forestry and forest-based industries to climate change mitigation; maintain and improve value creation and competitiveness of the forestry and wood cluster; and conserve finite resources through the sustainable and efficient use of forests and wood. The CfW 2.0 is implemented through a dialogue process covering six thematic fields of action. It involves actors from politics, the public sector, industry, science as well as civil society. The Charter process is accompanied by an evaluation whose task it is to provide Charter actors with science-based information on progress in the fields of action. The following report discusses the methodological basis of the evaluation and develops the evaluation concept. As a long-term process which involves diverse actors and governance levels, the CfW 2.0 possesses several distinctive features. With three primary aims (climate change mitigation, value creation and resource efficiency) and various intermediate aims in the fields of action, the Charter is characterised by a complex system of policy aims. Its implementation requires coordinated action on different policy and administration levels. Moreover, it is based on the active involvement of actors from science, industry and civil society. Consequently, responsibilities for the implementation of measures are allocated in the course of the Charter process. Similarly, the Charter’s instrument mix is deliberately not defined ex-ante, but results from the Charter process and evolves over times. Given diverse interactions between instruments, isolating the contribution of individual measures to a specific development can be associated with high uncertainty. In handling complex cause-effect relationships in the context of multiple aims, actors and instruments, the evaluation builds on insights from systems-oriented evaluation research on innovation policy. Its focus is the long-term support of learning and decision processes. By combining different methods and levels of analysis, it aims to cover information requirements concerning developments in the Charter’s fields of action, but also facilitate learning regarding the design of the Charter process. A participatory approach, which actively includes members of the Charter’s steering and working groups in the evaluation process, ensures that the evaluation generates information useful to the Charter process. The evaluation concept was developed in coordination with the Charter actors and encompasses three elements: (1) An outcome evaluation, which a) employs monitoring indicators to analyse the development of important variables in the Charter’s fields of action and b) conducts in-depth analyses to explore what role Charter measures play in influencing these developments, within the context of wider instrument mixes (2) A process evaluation, which a) reflects on results and procedures of the Charter process and b) develops recommendations for the further development of the process (3) Short analyses of selected focus topics, to document current changes in framework conditions which may prove relevant for the Charter’s system of aims |
| Keywords: | Environmental Economics and Policy |
| Date: | 2019–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:jhimwo:285195&r=all |
| By: | Zhang, ZhongXiang |
| Abstract: | Putting a price on carbon is considered a crucial step for China’s endeavor of harnessing the market forces to reduce its energy consumption and carbon emissions. Indeed, aligned with China’s grand experiment with low-carbon provinces and low-carbon cities in six provinces and thirty-six cities, the Chinese central government has approved the seven pilot carbon trading schemes. These pilot trading schemes have features in common, but vary considerably in their approach to issues such as the coverage of sectors, allocation of allowances, price uncertainty and market stabilization, potential market power of dominated players, use of offsets, and enforcement and compliance. This article explains why China turns to market forces and opts for emissions trading, rather than carbon or environmental taxes at least initially, discusses the five pilot trading schemes that have to comply with their emissions obligations by June 2014, and examines a wide range of design, implementation, enforcement and compliance issues related to China’s carbon trading pilots and their first-year performance. The article ends with drawing some lessons learned and discussing the options to evolve regional pilot carbon trading schemes into a nationwide carbon trading scheme. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemcl:199336&r=all |
| By: | Adrien Fabre (PSE - Paris School of Economics); Mouez Fodhaz (PSE - Paris School of Economics); Francesco Ricci (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier) |
| Abstract: | The production of energy from renewable sources is much more intensive in minerals than that from fossil resources. The scarcity of certain minerals limits the potential for substituting renewable energy for scarce fossil resources. However, minerals can be recycled, while fossils cannot. We develop an intertemporal model to study the dynamics of the optimal energy mix in the presence of mineral intensive renewable energy and fossil energy. We analyze energy production when both mineral and fossil resources are scarce, but minerals are recyclable. We show that the greater the recycling rate of minerals, the more the energy mix should rely on renewable energy, and the sooner should investment in renewable capacity take place. We confirm these results even in the presence of other better known factors that a ect the optimal schedule of resource use: growth in the productivity in the renewable sector, imperfect substitution between the two sources of energy, convex extraction costs for mineral resources and pollution from the use of fossil resources. |
| Keywords: | recycling,renewable and non-renewable natural resources,mineral resources,energy transition |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-02056348&r=all |
| By: | Pérez Blanco, Carlos Dionisio |
| Abstract: | Water is a key input in the production of many goods and services and under certain conditions can become a critical limiting factor with significant impacts on regional development. This is the case of many agricultural European Mediterranean basins, where water deficit during drought events is partially covered by illegal abstractions, mostly from aquifers, which are tolerated by the authorities. Groundwater overexploitation for irrigation has created in these areas an unprecedented environmental catastrophe that threatens ecosystems sustainability, urban water supply and the current model of development. Market-based drought insurance systems have the potential to introduce the necessary incentives to reduce overexploitation during drought events and remove the high costs of the drought indemnity paid by the government. This paper develops a methodology to obtain the optimum risk premium based on concatenated stochastic models. The methodology is applied to the agricultural district of Campo de Cartagena (Segura River Basin, Spain). Results show that the prices in a hypothetic competitive private drought insurance market would be reasonable and the expected environmental outcomes significant |
| Keywords: | Agricultural and Food Policy, Risk and Uncertainty |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemcl:178242&r=all |
| By: | Graham, Victoria; Fleming, Christopher M; Smart, James CR |
| Abstract: | The Southport Spit, as a relatively green and open space at the northern end of the Gold Coast beaches, is under continual development pressure and has been subject to a number of contentious development proposals over the past 50 years. In order to better understand the preferences of Gold Coast residents for the future of the site, we employ a survey-based method known as choice experiments. This is a method whereby respondents are asked to choose between alternative outcomes, described in terms of their attributes and the levels these take. Development alternatives were described in terms of four attributes: development focus (cruise ship terminal, casino, neither or both), height of future development (low-, medium- or high-rise), extent of developed space (25%, 50% or 75% of the available footprint) and open space preservation and recreational space charge ($70, $50, $35, $20, $10, $0). We received 345 usable responses to our online survey, with results revealing three distinct segments within the community. Approximately 45% of the sample were labelled ‘pro-conservation’ and are opposed to the idea of both a cruise ship terminal and casino being developed, prefer the maximum three-storey (low-rise) development limits to be retained and oppose the extent of developed space increasing to 75% of the available footprint. Approximately 33% of the sample were labelled ‘pro-development’ and are in favour of all three development options, prefer medium-rise over low- and high-rise options, and have no clear preferences for the extent of developed space. Approximately 22% of the sample were labelled ‘middle ground’ and reveal a slight preference for a cruise ship terminal, prefer low-rise development and an increase in the extent of developed space to 50% of the available footprint. In all, our results suggest there is some level of community support for the development of a cruise ship terminal, but far less support for a casino. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285079&r=all |
| By: | Philippe Delacote (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, Climate Economics Chair - Université Paris Dauphine (Paris 9)); Gwenolé Le Velly (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Gabriela Simonet (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, CIFOR - Center for International Forestry Research) |
| Abstract: | Since the emergence of the REDD+ mechanism, hundreds of projects have emerged around the globe. Much attention has been given to REDD+ projects in the literature, but the conditions under which they are likely to be efficient ares till not well known. In this article, we study how the location of REDD+ projects is chosen and how those location choices influence project additionality. Based on a sample of six REDD+ projects in Brazil, we propose an empirical analysis of the location choices and estimate additionality in the first years of implementation using impact evaluation techniques. In order to explain the heterogeneity of the empirical results, we present a simple theoretical model and show that project location is strongly influenced by the type of project proponent, which appears to be a good proxy for its objectives, whether oriented toward environmental impacts, development impacts, or external funding. Our results suggest that (1) the incentives behind REDD+ certification mechanisms can lead to low environmental efforts or an investment in areas that are not additional, (2) location biases are dependent on the REDD+ project manager's type, and (3) the existence of a location bias does not necessarily preclude additionality. |
| Keywords: | REDD+,deforestation,additionality,conservation policy,spatial analysis |
| Date: | 2018–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-01954923&r=all |
| By: | Sylvaine Lemeilleur (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - INRA Montpellier - Institut national de la recherche agronomique [Montpellier] - CIHEAM - Centre International des Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Subervie Julie (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Anderson Edilson Presoto (USP - University of São Paulo); Roberta De Castro Souza (USP - University of São Paulo); Maria Sylvia Macchione Saes |
| Abstract: | The production of certified coffee has increased significantly in recent years. However, most stringent standards are least often chosen by farmers. We ran a choice experiment among 250 Brazilian coffee farmers in the state of Minas Gerais to investigate the barriers that affect participation in certification schemes that require improved agricultural practices. Our results suggest that non-cash payments such as long-term selling contracts or the provision of technical assistance to comply with the environmental requirements are likely to motivate farmers to participate in certification schemes. Farmers' preferences for these non-cash rewards, however, appear highly heterogeneous. Results moreover show that the minimum willingness-to-accept for compost adoption is twice as high as the average price premium for certified coffee in the current context, which may partly explain why most coffee farmers continue to be reluctant to enter the most stringent certification schemes such as the Organic standard. |
| Keywords: | choice experiment,coffee,certification,erosion,voluntary sustainability standards,pesticides,compost,Brazil |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-02018715&r=all |
| By: | Hagen Schwerin (ETH Zurich, Switzerland) |
| Abstract: | This paper develops a mechanism to correct production externalities between several parties, such as externalities motivating environmental policy between countries, using asset ownership. Efficiency can be obtained if each party retains less than the full share of their own gain from resource use materialized in gross product. The remainder of the product can be earned by other parties - in a reciprocal way. The resulting swaps can be enforced by using bonds or stocks or with balanced trade of shares, hindering free-riding. The best international climate policy thus may be swap contracts. |
| Keywords: | Free-rider behavior, Privately provided public good, Lindahl prices, Property rights, Climate agreement, General equilibrium. |
| JEL: | D62 H23 Q58 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18-293&r=all |
| By: | Caspar Sauter; Jean-Marie Grether; Nicole A. Mathys |
| Abstract: | We construct the world’s centers of gravity for human population, GDP and CO2 emissions by taking the best out of five recognized data sources covering the last two centuries. On the basis of a novel distorsion-free representation of these centers of gravity, we find a radical Western shift of GDP and CO2 emissions centers in the 19th century, in sharp contrast with the stability of the demographic center of gravity. Both GDP and emissions trends are reversed in the first half of the 20th century, after World War I for CO2 emissions, after World War II for GDP. Since then, both centers are moving eastward at an accelerating speed. These patterns are perfectly consistent with the lead of Western countries starting the industrial revolution, the gradual replacement of coal by oil and gas as alternative sources of energy, and the progressive catch up of Asian countries in the recent past. |
| Keywords: | center of gravity, growth, CO2 emissions, GDP, population, great divergence |
| JEL: | Q56 Q59 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7557&r=all |
| By: | Ninpanit, Panittra |
| Abstract: | Traffic-related air pollution is a serious environmental concern in mega-cities worldwide. This study investigates the causal link between fuel prices and traffic-related air pollution using Bangkok and the surrounding areas as a case study. Bangkok has been ranked being as one of the world's most traffic-congested cities. Daily and monthly data for 1996–2017 are used to model three traffic-related air pollutants: CO, NO2, and PM10. Pollution data are collected from 25 monitoring stations. The findings provide evidence that higher fuel prices reduce air pollution from road vehicles. The fuel price elasticities of CO and PM10 pollution are found to be around –0.3 to –0.4 and –0.1 to –0.4, respectively. The estimates suggest a fuel price elasticity of NO2 pollution of –0.2 to –0.3 during 1996–2006. However, the effect of fuel prices on NO2 after 2006 is positive, potentially due to substitution of gasoline with gaseous fuels. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285055&r=all |
| By: | Ahmad, Ashfaq; Ashfaq, Muhammad; Wajid, Aftab; Khaliq, Tasneem; Ahmd, Ishfaq; Hoogenboom, Gerrit |
| Abstract: | Climate change is an established fact and its impacts on water, agriculture, health, biodiversity, forest and socio-economic sectors are quite visible around the globe. By virtue of its geographical location, Pakistan is highly vulnerable to the consequent climate change because of global warming. Adaptation to climate change and building resilience among ecosystems and people to respond to climate variability and hazard threats are relatively new concepts. Rice-wheat cropping system zone is the bread basket of Punjab, Pakistan and comprising more than 1 million farm families. There is an urgent need for improved climate modeling and forecasting that can provide a basis for informed decision-making and the implementation of adaptation strategies. For this study crop growth models (DSSAT and APSIM) were calibrated and evaluated on experimental field data to develop the robust genetic coefficients. Models were validated using farmers’ field data. Survey data for rice and wheat in Rice-wheat cropping zone of Punjab were collected for this study. An extensive farm survey for 155 farms from the selected five districts Sheikhupura, Nankana Sahib, HafizAbad, Gujranwala, and Sialkot was conducted. Surveyed data (initial condition, crop management, soil characteristic) were used to create the input files in both DSSAT and APSIM. The past climate of the study region, baseline (1981–2010) was analyzed by using the available weather station data and future climate projection were generated by General Circulation Models (GCMs) for mid-century (2040-2069) under RCP 8.5. Five GCMs (CCSM4, GFDLESM2M, HadGEM2-ES, MIROC5, and MPI-ESM-MR) were used for the generation of climate projections. Trade of Analysis model for Multidimensional (TOA-MD) was used for economic analysis. Results of climate change scenarios showed that there would be mean 2.8 °C rise in maximum and 2.2 31 °C in minimum temperature for mid-century (2040-2069) in Rice-wheat (RW) cropping system of Punjab, Pakistan. In Rice average yield reduction in DSSAT and APSIM was 15.2% and 17.2% while in Wheat average yield reduction by DSSAT and APSIM was 14.1% and 12% during mid-century (2040-2069). A close agreement was observed between farmer and simulated fine rice yield with good statistical indices such as Root Mean Square Error (RMSE) 409 kg ha-1 and 440 kg ha-1 with d-index (0.80 and 0.78) for DSSAT and APSIM models, respectively. Economic loss of 83% farm household, if they continue to use current production technology in changed climate. Adaptation strategies using Representative Concentration Pathways (RAP’s) were developed to achieve high productivity and meet the need of growing population, it would be required to increase the planting density, fertilizer use and reduce the irrigation amount up to 15% over current with greater potential for promising cultivars. This suggested that due to projected rise in temperature, the cropping seasons will be affected and 5 days earlier transplanting of rice nursery and two weeks earlier in wheat planting over current would be recommended. These strategies have a significant impact in reducing the vulnerabilities of the changing climate with 33% improvement in rice yield to sustain production in Rice-wheat cropping system. Significant reduction in poverty (5-6%) among farm households, if adaptation takes place in this zone |
| Keywords: | Research and Development/Tech Change/Emerging Technologies |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285087&r=all |
| By: | Didier Grouset (RAPSODEE - Centre de recherche d'Albi en génie des procédés des solides divisés, de l'énergie et de l'environnement - IMT Mines Albi - IMT École nationale supérieure des Mines d'Albi-Carmaux - CNRS - Centre National de la Recherche Scientifique); Cyrille Ridart (ALBHYON Technopole Innoprod ALBI) |
| Abstract: | This chapter is dedicated to the optimization of cost and energy consumption for compression, transportation, and storage of hydrogen for vehicle refueling in the current hydrogen emerging market. Thus, it considers only small refueling stations (20–200 kg/day) and current costs. It considers two cases: the case of a refueling station on the site of the hydrogen production and the case of a production unit supplying hydrogen to several distant refueling stations. In the case of production and distribution located on the same site, no transportation has to be considered, and the energy consumption is mainly due to hydrogen compression and cooling. In a reference case corresponding to good current practice, the study calculates an energy need of 3.5 or 4.4 kWh per kg of hydrogen transferred to a car tank at 35 or 70 MPa, respectively. It then shows that this need can be reduced by > 25% through judicious use of four or five stages of buffers organized in a pressure cascade for the filling of a tank at 70 MPa. Whereas the total volume of the staged buffers is higher than the volume of a single very-high-pressure buffer (VHPB), the investment cost is only slightly higher; then the energy saving results in short payback times for the extra investment in staged buffers. In the case of a production unit supplying hydrogen to several distant hydrogen refueling stations, energy for transportation by truck and for re-compression on the distribution site must be added. Current off-site distribution practices are used as a reference case; it considers the transportation of hydrogen in 20 MPa steel bottle bundles or trailer tubes and the re-compression of all the hydrogen to the VHPB. To lower the energy spend, solutions are proposed and quantified, such as using small transportable containers of higher pressure light composite bottles and bypassing the compressor as much as possible. Energy needs and CO2 emissions are estimated and compared for the reference case and the innovative cases. The study shows that, even if the investment in composite bottles is high, the resulting overall cost is definitely lower and CO2 emissions can largely be decreased. The size effect appears very important; cost decreases by 60% from 20 to 200 kg/day. |
| Keywords: | Hydrogen,CO2 emissions,compression,storage,transportation,energy,costs |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01877835&r=all |
| By: | Sophie Clot (UOR - University of Reading); Gilles Grolleau (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, CEREN - Centre de Recherche sur l'ENtreprise [Dijon] - BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC)); Lisette Ibanez (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier) |
| Abstract: | Rather than just examining moral licensing and cleansing at an aggregate level, we investigate experimentally the moral dynamics at an individual level. We also propose a formal definition of moral consistency or inconsistency (i.e., moral licensing and/or moral cleansing). We found that half our sample present inconsistent pro-environmental behaviour, independently of the way behavior is elicited (positive or negative framing). Men seem to behave more consistently over time, but when they compensate, they license (respectively cleanse) in a higher (respectively lesser) extent than women. We suggest that policies can improve their performances by avoiding a ‘one size fits all approach' and take into account this heterogeneity of moral dynamics. |
| Keywords: | taking game,dictator game,moral in(consistency),licensing,cleansing |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-01954925&r=all |
| By: | Nicolas Querou (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier) |
| Abstract: | We consider a setting where agents are subject to two types of collective action problems, any group user's individual extraction inducing an externality on others in the same group (intra-group problem), while aggregate extraction in one group induces an externality on each agent in other groups (intergroup problem). One illustrative example of such a setting corresponds to a case where a common-pool resource is jointly extracted in local areas, which are managed by separate groups of individuals extracting the resource in their respective location. The interplay between both types of externality is shown to affect the results obtained in classical models of common-pool resources. We show how the fundamentals affect the individual strategies and welfare compared to the benchmark commons problems. Finally, different initiatives (local cooperation, inter-area agreements) are analyzed to assess whether they may alleviate the problems, and to understand the conditions under which they do so. |
| Keywords: | externalities,common-pool resource,collective action |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:halshs-01936007&r=all |
| By: | Liu, Xinghua; Li, Qiang; Chand, Satish |
| Abstract: | Estimating the economic value of clean air is of significance to both policymakers and private individuals but its quantification has proved difficult. Of the different valuation approaches used, the classic hedonic theory predicts a negative relationship between air quality and housing prices. Existing attempts to quantify this nexus is plagued by problems of endogeneity, mainly arising from omitted variables that confound air pollution with other determinants of housing prices. We employ a regression discontinuity (RD) design to estimate the impact of air pollution on house prices across a river that demarcates regions with and without coal-fired heating emanating from the Huai River Policy. This policy was decreed by the Chinese government in the 1950s that allowed burning of coal at subsidised prices for indoor heating to only the north of the Huai River. Employing quasi-experimental variation in particulate matter of 10 micrometres or less in aerodynamic diameter (PM10) generated by this arbitrary policy and regression discontinuity (RD) design based on distance from Huai River, we estimate the local average treatment effect (LATE) to provide new evidence on the capitalization of PM10 air pollution into housing values. By using panel data of 30 large cities on either side of the river for the period 2006 to 2015, we found that 1 μg/m3 reduction in average PM10 results in an approximately 1 percent increase in housing prices. The results are robust to using parametric and nonparametric estimation methods and adjustment to a rich set of covariates. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285038&r=all |
| By: | d’Adda , Giovanna; Gao , Yu; Golman, Russell; Tavoni, Massimo |
| Abstract: | Environmental policies based on information provision are widespread, but have often proven ineffective. One possible explanation for information’s low effectiveness is that people actively avoid it. We conduct an online field experiment on air conditioning usage to test the theory of moral wiggle room, according to which people avoid information that would compel them to act morally, against the standard theory of information acquisition, and identify conditions under which each theory applies. In the experiment, we observe how exogenously imposing a feeling of moral obligation to reduce air conditioning usage and exploiting natural variation in the cost of doing so, given by outside temperature, influences subjects’ avoidance of information about their energy use impacts on the environment. Moral obligation increases information avoidance when it is hot outside, consistent with the moral wiggle room theory, but decreases it when outside temperature is low. Avoiding information positively correlates with air conditioning usage. These findings provide guidance about tailoring the use of nudges and informational tools to the decision environment. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemci:269535&r=all |
| By: | Singh, Prachi; Dey, Sagnik; Chowdhury, Sourangsu |
| Abstract: | This paper examines effect of outdoor air pollution on child health in India by combining satellite PM2.5 data with geo-coded Demographic and Health Survey of India(2016). Pollution levels vary due to seasonal open biomass burning events (like crop-burning and forest res) which are a common occurrence. Our identification strategy relies on spatial and temporal differences in these biomass burning events to identify the effect air pollution on child health. Our results indicate that children ex- posed to higher levels of PM2.5 during their first trimester and during the post-natal period of first three months after birth have lower Height-for-age and Weight-for-age; the effect is not limited to just rural areas, but prominent for Northern states of India which have higher incidence of such events. |
| Keywords: | Health Economics and Policy |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285036&r=all |
| By: | Sebastien Houde (ETH Zurich, Switzerland) |
| Abstract: | This paper shows that firms respond strategically to ENERGY STAR, a voluntary certification program for energy-efficient products. Firms offer products that bunch at the certification requirement, differentiate certified products in energy and non-energy dimensions, and charge a price premium on certified products. In the US refrigerator market, the magnitude of the price premium corresponds exactly to the average willingness to pay consumers have for certified products. This suggests that firms have the ability to extract most of the consumer surplus associated with certified products. If firms had to pay a fee to use the certification, a policy recently suggested, most of the cost should then be borne by consumers. I illustrate how such policy would impact the adoption of energy-efficient appliances. |
| Keywords: | environmental certification, firm behavior, energy efficiency, imperfect competition |
| JEL: | L13 L15 Q48 Q58 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18-292&r=all |
| By: | Besstremyannaya, Galina; Dasher, Richard; Golovan, Sergei |
| Abstract: | A considerable amount of research has shown that a carbon tax combined with research subsidies may be regarded as optimal policy for encouraging the spread of low-carbon technologies for the benefit of society. The paper exploits the macroeconomic approach of endogenous growth models with technological change in order to make a comparative assessment of the impact of such policy measures on economic growth in the US and Japan in the medium and long term. Our estimates reveal several important differences between Japanese and US energy firms: lower elasticity of the innovation production function in R&D expenditure, lower probability of radical innovation, and predominance of dirty technologies in Japan. This may explain our quantitative findings of stronger reliance on carbon tax in Japan as opposed to research subsidies in the US. |
| Keywords: | endogenous growth,technological change,innovation,carbon tax,energy |
| JEL: | O11 O13 O47 Q43 Q49 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:797&r=all |
| By: | Ilaria Brunetti (CMAP - Centre de Mathématiques Appliquées - Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique); Mabel Tidball (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Denis Couvet (MNHN - Muséum National d'Histoire Naturelle) |
| Abstract: | Agriculture is one of the main causes of biodiversity loss. In this work we model the interdependent relationship between biodiversity and agriculture on a farmed land, supposing that, while agriculture has a negative impact on biodiversity, the latter can increase agricultural production. Farmers act as myopic agents, who maximize their instantaneous profit without considering the negative effects of their practice on the evolution of biodiversity. We find that a tax on inputs can have a positive effect on yield since it can be considered as a social signal helping farmers to avoid myopic behavior in regards to the positive effect of biodiversity on yield. We also prove that, by increasing biodiversity productivity the level of biodiversity at equilibrium decreases, since when biodiversity is more productive farmers can maintain lower biodiversity to get the same yield. |
| Keywords: | cleansing dictator game licensing moral in(consistency taking game. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:halshs-01936005&r=all |
| By: | Kirill Borissov (European University at Saint Petersburg, Russia); Lucas Bretschger (ETH Zurich, Switzerland); Alexandra Vinogradova (ETH Zurich, Switzerland) |
| Abstract: | We analyze the impact of carbon prices on human capital accumulation, sectoral change, and economic growth. In our framework output is produced with dirty and/or clean technologies using skilled and unskilled labor as inputs. Carbon policy affects technology selection which transmits incentives for human capital formation. We show that a temporary policy may be sufficient for a transition to a clean economy and that such a policy also stimulates economic growth. Moreover, in the presence of inter-country knowledge spillovers, a carbon policy in the North helps human capital formation in the South and induces South’s transition to the clean steady state. |
| Keywords: | Carbon pricing, education, clean and dirty technologies, temporary policies |
| JEL: | Q43 O47 Q56 O41 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:18/285&r=all |
| By: | Jan Abrell (ETH Zurich, Switzerland); Sebastian Rausch (ETH Zurich, Switzerland); Clemens Streitberger (ETH Zurich, Switzerland) |
| Abstract: | Mitigating climate change will require integrating large amounts of highly intermittent renewable energy (RE) sources in future electricity markets. Considerable uncertainties exist about the cost and availability of future large-scale storage to alleviate the potential mismatch between demand and supply. This paper examines the suitability of regulatory (public policy) mechanisms for coping with the volatility induced by intermittent RE sources, using a numerical equilibrium model of a future wholesale electricity market. We find that the optimal RE subsidies are technology-specific reflecting the heterogeneous value for system integration. Differentiated RE subsidies reduce the curtailment of excess production, thereby preventing costly investments in energy storage. Using a simple cost-benefit framework, we show that a “smart” design of RE support policies significantly reduces the level of optimal storage. We further find that the marginal benefits of storage rapidly decrease for short-term (intra-day) storage and are small for long-term (seasonal) storage independent of the storage level. This suggests that storage is not likely to be the limiting factor for decarbonizing the electricity sector. |
| Keywords: | Renewable Energy, Electricity, Volatility, Intermittency, Storage, Technology-specific Regulation, Subsidies, Energy Policy, Climate Policy |
| JEL: | C63 Q42 Q48 Q54 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:19-310&r=all |
| By: | Wolf-Peter Schill; Alexander Zerrahn |
| Abstract: | Using electricity for heating can contribute to decarbonization and provide flexibility to integrate variable renewable energy. We analyze the case of electric storage heaters in German 2030 scenarios with an open-source electricity sector model. Making customary night-time storage heaters temporally more flexible offers only moderate benefits because renewable availability during daytime is limited in the heating season. As storage heaters feature only short-term heat storage, they also cannot reconcile the seasonal mismatch of heat demand in winter and high renewable availability in summer. Generally, flexible electric heaters increase the use of generation technologies with low variable costs, which are not necessarily renewables. |
| Keywords: | Power-to-heat, renewable energy, electricity sector, power system model, flexibility, storage |
| JEL: | C61 Q41 Q42 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1769&r=all |
| By: | Pourzand, Farnaz; Noy, Ilan |
| Abstract: | Droughts are expected to become more frequent and more severe under all climate change scenarios. They are predicted, in turn, to result in a significant increase in the associated cost to the agricultural sector in New Zealand. This paper explores how drought hazards affected agricultural productivity and economic performance for different sectors (sheep and beef farming and dairy farming) between 2007 and 2016. We combine agricultural and financial farm-level panel data from Statistics New Zealand’s Longitudinal Business Database (LBD) with the drought index produced by the National Institute of Water and Atmospheric Research (NIWA). We estimate a set of fixed-effects panel regressions and find that drought events have negative impact on the agricultural productivity across all sectors, where the most vulnerable sector is dairy farming. Dairy sector’s operating profit is significantly reduced through increasing in operating cost due to proving feed for livestock during drought events. Results also show that droughts affect farms’ financial indicators such as their interest coverage, return on capital, business equity and debt to income ratio. |
| Keywords: | Agribusiness |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285051&r=all |
| By: | Alcorta, Ludovico; Bazilian, Morgan; De Simone, Giuseppe; Pedersen, Ascha |
| Abstract: | Energy efficiency is a foundation of any good energy policy. The economic, security, and environmental benefits of energy efficiency have been recognized for decades. We explore energy efficiency policy insights derived from survey work in developing countries in 119 projects across nine manufacturing sub-sectors. The methodology utilises financial return calculations to highlight gaps and opportunities for meeting the potential of energy efficiency projects in the manufacturing sector. We find a generally very high level of internal rates of return at a project level - with payback periods ranging from 0.9 to 2.9 years; but note that these metrics do not always appropriately influence corporate decision-making for a number of well-understood reasons. |
| Keywords: | Resource /Energy Economics and Policy |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemer:128203&r=all |
| By: | Jean-Pierre Mignot; Youssef Aissani (LERASS - Laboratoire d'Etudes et de Recherches Appliquées en Sciences Sociales - UM3 - Université Paul-Valéry - Montpellier 3 - UT2J - Université Toulouse - Jean Jaurès - UPS - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées); Marc Mequignon (LERASS - Laboratoire d'Etudes et de Recherches Appliquées en Sciences Sociales - UM3 - Université Paul-Valéry - Montpellier 3 - UT2J - Université Toulouse - Jean Jaurès - UPS - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées); Teresi Laurent (LERASS - Laboratoire d'Etudes et de Recherches Appliquées en Sciences Sociales - UM3 - Université Paul-Valéry - Montpellier 3 - UT2J - Université Toulouse - Jean Jaurès - UPS - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées); Hassan Ait Haddou (LIFAM - Laboratoire Innovation Formes Architectures Milieux - ENSAM - Ecole nationale supérieure d'architecture de Montpellier) |
| Date: | 2019–03–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02057976&r=all |
| By: | Clune, Tim |
| Abstract: | Developing a sustainable and resilient agribusiness sector is fundamental if Australia is to capture the value of the opportunity presented the by the growing food and fibre needs of a global population expected to reach 9.8bn by 2050 and 11bn by 2100. Key threats in the Australian context are an increasingly dynamic climate, changing demographics of regional Australia, economic factors related to currency fluctuations and the reality of being a price taker in a global market. While the current policy environment provides a number of mechanisms to support agribusinesses in mitigating these threats (including research and development investment, infrastructure investment, action to increases access to and competitiveness of markets as well as a suite of agricultural welfare options), it does not contemplate the relative readiness of individuals and businesses to act on the interventions of government. This paper proposes the adoption of the capabilities approach (CA) to refocus the policy framework and environment to prioritise the delivery of outcomes that are valued by individuals and businesses. A conceptual model is proposed to support the development, design and evaluation of future agribusiness policy. Fundamental to the conceptual model is the recognition of the central focus on the achievement of outcomes valued by agribusinesses, when considered within the constraints of the resource base, the capabilities of agribusiness owners to achieve the valued outcomes as well as the external factors required to aid in the conversion of the resources to valued outcomes. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285037&r=all |
| By: | Bassino, Jean-Pascal; van der Eng, Pierre |
| Abstract: | This paper asks whether better integration of rice markets in Japan during the 19th and 20th centuries compared to China and India explains the ‘Little Divergence’ in Asia and Japan’s role in the ‘Great Divergence’. It analyses rice prices for 13 markets across Japan during 1720-1857 and finds that Japan had relatively well-integrated rice markets, particularly western Japan. In eastern Japan market integration was partially impeded by distance to Osaka, which was the core market, and the greater ecological vulnerability of rice in northeast Japan to lower temperatures during the ‘little ice age’ that lasted until the mid-19th century. Relatively well-integrated markets did not prevent major famines during 1732-1733, 1783-1786, and 1833-1838, because stocks and supplies were insufficient to withstand the consequences of sequences of crop failures. Better integration of rice markets is indicative of higher allocative efficiency of markets in Japan which is a likely reason that ‘shrinking’ episodes caused fewer setbacks in long-term economic growth compared to in China and India. |
| Keywords: | Great Divergence, Famine, market integration, Tokugawa Japan, VAR, ECM |
| JEL: | I39 N15 N35 N45 N75 N95 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2018-18&r=all |
| By: | Nguyen, H.M.; Bui, N.H.; Vo, D.H.; McAleer, M.J. |
| Abstract: | The importance of non-renewable, renewable and sustainable energy sources and energy consumption in the economic development strategy of a country is undeniable. The purpose of the paper is to investigate the impacts of energy consumption on the economic growth of Vietnam during the 1980-2014 period. By applying the Autoregressive Distributed Lag (ARDL) model of Pesaran et al. (2001), and the Granger causality test of Toda and Yamamoto (1995), the empirical results provide evidence that electricity consumption has positive impacts on Vietnam’s economic growth in both the short run and long run. For public policy prescriptions, the empirical evidence suggests that an exploration of new sources of renewable and sustainable energy is essential for long run economic development |
| Keywords: | Energy consumption, renewable and sustainable energy, economic growth, economic development, ARDL, Granger causality |
| JEL: | F43 O13 O47 Q42 Q43 |
| Date: | 2019–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ems:eureir:115606&r=all |
| By: | Frank Wijen (Rotterdam School of Management - Erasmus University Rotterdam); Mireille Chiroleu-Assouline (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics, UP1 - Université Paris 1, Panthéon-Sorbonne - Université Paris I - Panthéon-Sorbonne - Pres Hesam) |
| Abstract: | Voluntary standards certifying environmental qualities of labeled products have proliferated across sectors and countries. Effectuating these standards requires the collaboration among and between creators (typically firms and nongovernmental organizations) and adopters (firms across a particular supply chain). However, the need to collaborate does not rule out the presence of controversy. Drawing on the case of the Marine Stewardship Council, a leading seafood standard to conserve the world's threatened marine fauna, we analyze how this controversy, from economic and sociologic vantage points, impacts a sustainability transition. In essence, interest divergence drives controversy over standard design, which spurs controversy over standard effectiveness and prompts the proliferation of competing standards. Controversy is magnified by the opacity or nontransparency of the fields which such standards seek to govern. We conclude that, while interest divergence and field opacity entail inherent controversy over voluntary environmental standards, the impact of this controversy on sustainability transitions is typically predominantly positive. |
| Keywords: | competition,certification,standard,self-regulation,nongovernmental organization,Marine Stewardship Council,conflict,controversy,environmental governance,label |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02071504&r=all |
| By: | Eric Brouillat; Maïder Saint-Jean |
| Abstract: | We investigate implementation gaps observed in environmental regulations in the specific case of dangerous chemical substances such as targeted by the REACH regulation. An agent-based model is developed as an exploratory tool to examine to what extent significant implementation gaps between stringency requirements and real but conditional enforcement jeopardize the transition to safer substitutes, by affecting the way heterogeneous actors perceive the regulatory threat and their innovation strategy. We show that the combination of the most severe regulation with the strictest enforcement and the shortest timing would not necessarily lead to the highest frequency of bans on dangerous substances, because it may alter the competitive process that is vital to preserving diversity in innovation strategies and to developing safer substitutes. Opting for a very severe regulation should be combined with concessions on enforcement in order to preserve diversity and to give green pioneering competitors enough time to expand. From a reverse angle, if authorities are keen to apply the regulation strictly and are prepared to face higher market concentration, then they should release the degree of stringency in order to enhance the prospects of transition to safer substitutes. |
| Keywords: | technological transition; policy stringency; perception; enforcement; REACH regulation; agent-based model |
| JEL: | O33 Q55 D83 Q58 C63 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2019-04&r=all |
| By: | Wittwer, Glyn |
| Keywords: | Environmental Economics and Policy |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare19:285089&r=all |
| By: | Patrick Plane (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Camille Da Piedad (FERDI - Fondation pour les Etudes et Recherches sur le Développement International) |
| Abstract: | L'Observatoire de la compétitivité durable retrace, pour l'Afrique, un tableau de bord ordonné autour de trois piliers thématiques : vulnérabilités, attractivité et compétitivité prix. La vulnérabilité physique aux changements climatiques est le facteur dominant pour le Sahel. Elle confère à l'UEMOA une moyenne des scores inférieure à celle de l'Afrique. Les vulnérabilités économiques structurelles et les violences sociétales sont en revanche moins accusées. Seuls la Côte d'Ivoire et le Sénégal se hissent à un niveau d'attractivité supérieur à celui de la moyenne africaine. En comparaison de l'Afrique, la compétitivité prix est légèrement plus favorable à l'Union. La Côte d'Ivoire fait bonne figure, mais également le Burkina Faso, le Mali et le Sénégal. |
| Date: | 2019–01–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02068856&r=all |
| By: | Brombacher, Daniel; Westerbarkei, Jan |
| Abstract: | The concept of alternative development (AD) in international drug control has evolved over the past four decades, with several major milestones between the two United Nations General Assembly Special Sessions on the World Drug Problem (UNGASS) 1998 and 2016. However, it was not until UNGASS 2016 that the door for development-oriented thinking in international drug policy was pushed wide open. The Chapter VII of the UNGASS 2016 Outcome Document not only assigns a prominent role to AD, but also seeks to broaden the scope of development towards urban drug markets and drug trafficking, formerly exclusive realms of law enforcement and repressive measures of drug supply control. Therefore, in the field of development a major revolution has taken place through the unequivocal broadening of the scope of development within UN drug control, feeding directly into the much-needed approximation of the UN drug control system and the Sustainable Development Goals. The article sheds light on the evolvement of the German approach of alternative development that has been influential at the international level in the shaping of the global drugs and development nexus. |
| Keywords: | Alternative development; German approach; UNGASS 2016; Development-oriented drug policy; Development-oriented drug control |
| JEL: | N0 |
| Date: | 2019–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:100344&r=all |