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on Environmental Economics |
| By: | Santiago Guerrero (OECD); Ben Henderson (OECD); Hugo Valin (OECD); Charlotte Janssens (International Institute for Applied Systems Analysis); Petr Havlik (International Institute for Applied Systems Analysis); Amanda Palazzo (International Institute for Applied Systems Analysis) |
| Abstract: | This study investigates whether agricultural policy reforms could help cushion the impacts of climate change on agriculture by facilitating the relocation of production and international trade. The agricultural sector faces immense challenges in ensuring the provision of food, farm incomes, employment and environmental services in a changing climate. Its ability to meet these challenges depends, in part, on the flexibility with which agricultural production can be relocated in response to agro-ecological and market conditions being reshaped by climate change in a sustainable manner. To better understand these interactions, this study employs a quantitative model to assess the economic and environmental effects of removing market distorting policies under climate change. The modelling results suggest that the policy reforms could reduce the extent to which climate change increases agricultural commodity prices and undernourishment and, in that sense, contribute to global adaptation to climate change. The results also suggest that accompanying policy measures may be required to address potential trade-offs in some regions, in terms of land use emissions, water demand and farm income losses. |
| Keywords: | Adaptive capacity, Agricultural policy, Land use change, Non-technical measures, Producer support, Tariffs, Trade policy, Water scarcity |
| JEL: | C61 F18 Q11 Q17 Q54 O13 |
| Date: | 2022–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:180-en&r= |
| By: | Karel Janda; Binyi Zhang |
| Abstract: | As facilitated by governmental authorities promising sustainable economic growth, green bonds have gained prominence in China's capital market to scale up the transition to a climate-resilient economy. Although the issuance volume of the Chinese green bond market has been growing rapidly in recent years, the impact of green label on bond pricing is not adequately studied. Thus, this paper aims to investigate whether this newly developed financial instrument offers investors in China an attractive yield compared to other equivalent conventional bonds. By applying a matching method and subsequently a fixed-effects estimation, our empirical results reveal a significant negative yield premium of green bonds on average -1.8 bps lower than their conventional counterparts in the Chinese secondary market. In addition to that, the yield premium is found to vary across issuers' business sectors mainly due to the public reputation of bond issuers. Moreover, our empirical results reveal an insignificant relationship between the green certification and the yield premium, reflecting an inconsistent green definition in the Chinese market. Our results point to some practical implications for policymakers and investors. |
| Keywords: | Green bonds, Green bond premium, ESG, China |
| JEL: | G12 Q56 |
| Date: | 2021–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:prg:jnlwps:v:4:y:2022:id:4.007&r= |
| By: | Stern, Nicholas; Xie, Chunping |
| Abstract: | China has announced its commitment to achieving carbon neutrality by 2060, and for this challenging goal to be reached within just four decades, there is a real urgency of shaping the low-carbon agenda in its 14 th Five-Year Plan and to ratchet up ambition on climate policy in the near term to peak emissions early. This paper argues that China will have to change the way of development by take a sustainable pathway to growth. And this new approach does not mean sacrificing economic growth; quite the opposite, it can boost growth by providing great opportunities in terms of jobs, efficiency, demand, and many other aspects, while reducing carbon emissions and enabling great benefits with regards to pollution, ecological restoration, biodiversity and well-beings. The COVID-19 pandemic has provided a window of opportunity for China and other countries to cooperate to link the post-pandemic economic recovery with the fight against climate change. |
| Keywords: | 14 Five-Year Plan; Carbon neutrality; China’s new growth story; low-carbon transition; T&F deal |
| JEL: | N0 R14 J01 |
| Date: | 2022–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115068&r= |
| By: | Entine, Jon |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, Environmental Economics and Policy |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usao21:320971&r= |
| By: | Sareh Vosooghi; Maria Arvaniti; Rick van der Ploeg |
| Abstract: | This paper studies the formation of international climate coalitions by heterogeneous countries. Countries rationally predict the consequences of their membership decisions in climate negotiations. We offer an approach to characterise the equilibrium number of coalitions and their number of signatories independent of their heterogeneity, and we suggest a tractable algorithm to fully characterise the equilibrium. In a dynamic game analysis of a general equilibrium model of the economy integrated with climate dynamics, a grand climate coalition or multiple climate coalitions may form in equilibrium, but if the policymakers are patient, the number of signatories in all climate treaties is a Tribonacci number. Our results are robust to the possibility of renegotiation and investment in green technologies besides fossil fuels. |
| Keywords: | climate economics, international environmental agreements, coalition formation, heterogeneous countries, integrated assessment models |
| JEL: | Q54 D70 D50 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9768&r= |
| By: | Konstantinos Metaxoglou; Aaron Smith |
| Abstract: | We study the relationship between water nutrient pollution and U.S. agriculture using data between the early 1970s and late 2010s. We estimate a positive causal effect of corn acreage on nitrogen concentration in the country’s water bodies using alternative empirical approaches. We find that a 10% increase in corn acreage causes an increase in nitrogen concentration in water by at least 1% and show that the magnitude of the acreage effect increases with precipitation but not with extreme temperature. Based on the average streamflow of the Mississippi River at the Gulf of Mexico during this period and damages of about $16 per kilogram of nitrogen, this 1% increase in average nitrogen concentration implies an annual external cost of $800 million. We also report the results of additional integrated-assessment type of exercises aimed to inform policy makers, and we use recent climate models to project the implications of climate change on the magnitude of the estimated effects. We estimate that climate change will not materially change the relationship between corn acreage and nitrogen concentration in waterways |
| JEL: | Q15 Q48 Q51 Q53 Q58 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30124&r= |
| By: | Noemie Martin; Pierre-Olivier Pineau |
| Abstract: | Reducing energy consumption and carbon emissions are two cornerstones of the fight against climate change. Signaling negative externalities of individual consumption on the environment is at the heart of public policies, and usually materializes through an increase in the price of polluting good and services. However, social resistance typically arises when such policies are implemented. In this experiment, we are interested in testing the context in which individuals would be willing to pay more for electricity. We use the situation of Québec (Canada), where low-cost hydropower sold below market value, akin to a consumption subsidy, leads to high residential consumption. Increasing regulated prices closer to their market value would result in a direct welfare gain and free some green energy, reducing greenhouse gases (GHG) in other sectors. The choice to pay more is a prisoner’s dilemma, and we find in this framework that giving clear and transparent information on the consequences of the price increase induces a majority of people to choose to pay more. In addition to the economic benefit of the public good, the presence of the environmental benefit increases contributions. Participants with a more severe budget constraint tend to contribute less. These results are encouraging for the development of efficient energy policies reducing GHG emissions. La réduction de la consommation d'énergie et des émissions de carbone sont deux pierres angulaires de la lutte contre le changement climatique. Signaler les externalités négatives de la consommation individuelle sur l'environnement est au cœur des politiques publiques, et se matérialise généralement par une augmentation du prix des biens et services polluants. Cependant, la résistance sociale se manifeste généralement lorsque de telles politiques sont mises en œuvre. Dans cette expérience, nous souhaitons tester le contexte dans lequel les individus seraient prêts à payer plus cher pour l'électricité. Nous utilisons la situation du Québec (Canada), où l'hydroélectricité à faible coût vendue en dessous de la valeur du marché, ce qui s'apparente à une subvention à la consommation, entraîne une forte consommation résidentielle. Une augmentation des prix réglementés plus proches de leur valeur de marché entraînerait un gain de bien-être direct et libérerait une partie de l'énergie verte, réduisant ainsi les gaz à effet de serre (GES) dans d'autres secteurs. Le choix de payer plus est un dilemme du prisonnier, et nous trouvons dans ce cadre que donner des informations claires et transparentes sur les conséquences de l'augmentation des prix incite une majorité de personnes à choisir de payer plus. En plus de l'avantage économique du bien public, la présence de l'avantage environnemental augmente les contributions. Les participants ayant une contrainte budgétaire plus sévère ont tendance à moins contribuer. Ces résultats sont encourageants pour le développement de politiques énergétiques efficaces réduisant les émissions de GES. |
| Keywords: | Public good,Voluntary environmental action,Green electricity, Bien public,action environnementale volontaire,électricité verte |
| Date: | 2022–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2022s-18&r= |
| By: | R. Aaron Hrozencik; Nicholas A. Potter; Steven Wallander |
| Abstract: | Global climate change is already impacting water resources and, in many areas, reducing the amount of water available for drinking, sanitation, and agriculture. Water conservation can be a means to mitigate the economic damages associated with water scarcity, including scarcity arising from climate change. In the agricultural sector, most water conservation efforts have focused on farm-level irrigation efficiency. However, since over one-third of water applied for agricultural irrigation in the U.S. comes from off-farm supplies, improvements in delivery and conveyance efficiency also have the potential to significantly reduce water losses. This study utilizes survey data from irrigation water delivery organizations in the Western U.S. to estimate the impact of lining and piping conveyance infrastructure on conveyance losses. The average irrigation delivery organization reports a conveyance loss of 15 percent of the total water brought into their system in 2019. Using a control function estimation, this study finds that at the margin an increase of one percentage point in the share of conveyance infrastructure piped leads to an expected 0.16 percentage point reduction in conveyance losses. A simulated water-conservation supply curve based on these estimates shows that about 2.3 percent of total water brought into these systems could be recaptured at a private capital cost below $10,000 per acre foot. |
| JEL: | Q1 Q15 Q25 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30123&r= |
| By: | Isaac K. Ofori (University of Insubria, Varese, Italy); Emmanuel Gbolonyo (University of Cape Town, South Africa); Nathanael Ojong (York University,Toronto, Canada) |
| Abstract: | This study contributes to the scholarly literature on the drive towards sustainable development in light of the UN’s Agenda 2030 and the African Union’s Agenda 2063 by examining pathways through which energy efficiency (EE) promotes inclusive green growth (IGG) in Africa. Our contribution is novel from both the conceptual and empirical perspectives. With regard to the former, we develop a framework on how EE and governance feed into IGG, and on the latter, our contribution is based on country-level data for 23 African countries for the period 1996 – 2020. First, evidence from the generalised method of moments (GMM) estimator shows that EE is not unconditionally effective for spurring IGG. Second, we find that governance is both directly, and indirectly effective for repackaging EE to foster IGG. In particular, the evidence suggests that governance mechanisms for controlling corruption while ensuring regulatory quality and government effectiveness are keys for forming relevant synergies with EE to foster IGG. Third, regarding the socioeconomic sustainability (SES) and environmental sustainability (EVS) dichotomy of IGG, we find that the EE-governance pathway is more effective for driving the latter compared to the former. We also make some policy recommendations. |
| Keywords: | , Inclusive Growth; Inclusive Green Growth; Greenhouse Gases; Environmental Sustainability; Carbon Intensity; Sustainable Development |
| JEL: | I3 O11 O43 O44 O55 Q01 Q43 Q56 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/043&r= |
| By: | Stetter, Christian; Sauer, Johannes |
| Abstract: | The cultivation of agroforestry systems is regarded as an effective strategy to synergistically mitigate and adapt to climate change in the face of an increased occurrence of regional extreme weather events. This study addresses the question if and under what conditions farmers are likely to adopt agroforestry and wood-based land-use systems in response to regional weather extremes. We conducted a discrete choice experiment to elicit farmers preferences for - and willingness to adopt - agroforestry and wood-based land use systems and combined the results with geo-spatial weather data. Assuming adaptive weather expectations, we regionally simulate land users' dynamic response to extreme weather years in terms of adoption probabilities. We find that farmers in our case study region in Southeast Germany have a negative preference for alley cropping and short rotation coppice compared to an exclusively crop-based land use system. However, the results from the simulation of a 2018-like extreme weather year show that alley-cropping systems (i.e. agroforestry) might have a very high probability of being adopted in the medium to long-run under different scenarios, thus enhancing farmers' resilience to climate change. |
| Keywords: | Environmental Economics and Policy, Production Economics |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc22:321173&r= |
| By: | Jonathan R. McFadden; David J. Smith; Steven Wallander |
| Abstract: | Crop farmers have few short-run options for reducing downside production risk from changes in drought frequency and intensity due to ongoing climate change. However, one recently available option is drought-tolerant (DT) varieties. We determine how recent drought exposure, drought risk, and other climatic features have influenced adoption of DT corn—a water-intensive crop of particular economic importance due to its large share of U.S. agricultural value. Our empirical analysis is motivated by a state-contingent economic framework that accommodates farmers' beliefs about future drought based on objective drought risk and exposure. Using a representative sample of U.S. farmers' fields, we implement a novel econometric method, spatial first differences, that can reduce concerns of omitted variables bias. We find that long-run temperatures and drought risk—rather than short-run drought exposure in recent prior years—led to increased adoption of DT corn varieties in 2016. Farmers are more likely to plant DT corn on highly erodible land and less likely to irrigate such varieties, consistent with the fact that the western Corn Belt was of major marketing focus during the early years of commercialization. |
| JEL: | Q12 Q15 Q16 Q54 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30121&r= |
| By: | Ar\'anzazu de Juan; Pilar Poncela; Vladimir Rodr\'iguez-Caballero; Esther Ruiz |
| Abstract: | In this paper, we survey recent econometric contributions to measure the relationship between economic activity and climate change. Due to the critical relevance of these effects for the well-being of future generations, there is an explosion of publications devoted to measuring this relationship and its main channels. The relation between economic activity and climate change is complex with the possibility of causality running in both directions. Starting from economic activity, the channels that relate economic activity and climate change are energy consumption and the consequent pollution. Hence, we first describe the main econometric contributions about the interactions between economic activity and energy consumption, moving then to describing the contributions on the interactions between economic activity and pollution. Finally, we look at the main results on the relationship between climate change and economic activity. An important consequence of climate change is the increasing occurrence of extreme weather phenomena. Therefore, we also survey contributions on the economic effects of catastrophic climate phenomena. |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2206.03187&r= |
| By: | Karamik, Yasemin; von Graevenitz, Kathrine |
| Abstract: | Recent evidence suggests a positive impact of air pollution on crime in large cities. We provide first evidence on the potential effect of air pollution on criminal activity using a broader set of geographical regions with lower air pollution levels. We use a unique combination of daily crime data with weather and emission records for the states of Baden-Wuerttemberg (BW) and Rhineland-Palatinate (RLP) in Germany from 2015 until 2017. We exploit the variation in air pollution which is attributable to changes in daily wind direction. We find that an increase of one standard deviation of PM10 leads to an increase in crime of 4.6%. |
| Keywords: | Air Pollution,Crime |
| JEL: | K42 Q53 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22013&r= |
| By: | P. Hamel (Natural Capital Project, Department of Biology and Woods Institute for the Environment, Stanford University, ASE - Asian School of the Environment - Nanyang Technological University [Singapour]); A. Guerry; S. Polasky; B. Han; J. Douglass; M. Hamann; B. Janke; J. Kuiper; H. Levrel (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); H. Liu; E. Lonsdorf; R. Mcdonald; C. Nootenboom; Z. Ouyang; R. Remme; R. Sharp; L. Tardieu (UMR TETIS - Territoires, Environnement, Télédétection et Information Spatiale - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - AgroParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); V. Viguié; D. Xu; H. Zheng; G. Daily |
| Abstract: | Natural infrastructure such as parks, forests, street trees, green roofs, and coastal vegetation is central to sustainable urban management. Despite recent progress, it remains challenging for urban decision-makers to incorporate the benefits of natural infrastructure into urban design and planning. Here, we present an approach to support the greening of cities by quantifying and mapping the diverse benefits of natural infrastructure for now and in the future. The approach relies on open-source tools, within the InVEST (Integrated Valuation of Ecosystem Services and Tradeoffs) software, that compute biophysical and socio-economic metrics relevant to a variety of decisions in data-rich or data-scarce contexts. Through three case studies in China, France, and the United States, we show how spatially explicit information about the benefits of nature enhances urban management by improving economic valuation, prioritizing land use change, and promoting inclusive planning and stakeholder dialogue. We discuss limitations of the tools, including modeling uncertainties and a limited suite of output metrics, and propose research directions to mainstream natural infrastructure information in integrated urban management. |
| Keywords: | Natural Infrastructure,Urban sustainabiliy,InVEST,Modelisation |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03318222&r= |
| By: | Robbie Maris (University of Waikato); Yvonne Matthews (National Institute of Water and Atmospheric Research (NIWA)) |
| Abstract: | Freshwater scarcity is worsening as we quickly approach the freshwater planetary boundary. There has been extensive research and policy development in the space of water scarcity, pollution and accessibility, centered around the Sustainable Development Goals (SDGs). A large body of literature examines household and climate characteristics predictive of water consumption by households. However, there does not appear to be any research on the role of views of and proximity to water bodies in household water consumption. While researchers have long recognised the relationship between “water views†and property prices, the relationships between water views and water consumption have been all but ignored. In this paper, we develop a simple model of water consumption which depends on the perceptions of water scarcity and the perceptions of whether water scarcity is an issue. Using geographic information systems (GIS) viewshed analysis, we model whether properties in Tauranga, New Zealand, have views of lakes and the coast. We then use these variables in a fixed effects model of water consumption. We find that views of lakes are associated with higher water consumption and views of the coast are associated with lower water consumption. We suggest that these effects are driven by psychological biases which alter the perceptions of water scarcity and concern for water scarcity. We deploy a range of robustness checks and argue that our results are likely causal. However, there is still plenty of research required to comprehensively unpack the relationship between views of water bodies and water consumption. |
| Keywords: | Water consumption; Viewshed analysis; Water scarcity; Fixed effects; Water demand |
| JEL: | D12 D91 Q21 Q25 |
| Date: | 2022–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:22/10&r= |
| By: | Aimable Nsabimana |
| Abstract: | There has been much discussion on climate change and its adverse effects on agriculture, including excessive loss of food production. In regions such as sub-Saharan Africa, where agriculture is the major source of household livelihoods, shocks in weather patterns affect farmers' expectations of farm yield and hence the decision to adopt farm inputs such as fertilizers and pesticides and the extent of their utilization, particularly given the relatively high cost of these inputs. |
| Keywords: | Farm inputs, Agriculture, Climate change, Sub-Saharan Africa, Weather shock |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2022-57&r= |
| By: | Rob ter Burg; Yuli Shan; Klaus Hubacek; Franco Ruzzenenti |
| Abstract: | The largest 6,529 international corporations are accountable for almost 30% of global CO2e emissions. A growing awareness of the role of the corporate world in the path toward sustainability has led many shareholders and stakeholders to pursue increasingly stringent and ambitious environmental goals. However, how to assess the corporate environmental performance objectively and efficiently remains an open question. This study reveals underlying dynamics and structures that can be used to construct a unified quantitative picture of the environmental impact of companies. This study shows that the environmental impact (metabolism) of companies CO2e ,energy used, water withdrawal and waste production, scales with their size according to a simple power law which is often sublinear, and can be used to derive a sector-specific, size-dependent benchmark to asses unambiguously a company's environmental performance. Enforcing such a benchmark would potentially result in a 15% emissions reduction, but a fair and effective environmental policy should consider the size of the corporation and the super or sublinear nature of the allometric relationship. |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2206.03148&r= |
| By: | Moody, Lara |
| Keywords: | Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usao21:320994&r= |
| By: | Emily Gray; Darryl Jones |
| Abstract: | This report assesses Viet Nam’s agricultural sector through the lens of the OECD Agro-food Productivity-Sustainability-Resilience (PSR) Policy Framework. Agriculture has played an important role in Viet Nam’s remarkable economic growth over the past thirty years. In the 1990s, government policies contributed to strong agricultural productivity growth, but this has since fallen. OECD Agri-Environmental indicators also reveal weaknesses in the environmental footprint of growth, notably with respect to nutrient balances, as a result of the excessive use of agro-chemicals and poor animal waste management practices. The agricultural sector faces significant resilience challenges from climate change impacts, including sea level rises and more frequent and severe storm events. Although the level of agricultural support provided to farmers is relatively low, policies such as land use regulations are skewed in favour of rice production, thereby maintaining a production structure dominated by small part-time household farms that limit innovation. Viet Nam’s support for general services for agriculture (GSSE) was equivalent to 2.5% of agricultural value added in 2018-20, well below the OECD average. Shifting the focus of support towards research, development, and innovation partnerships with the private sector will contribute to improving the agri-environmental performance of agriculture in Viet Nam. This should ideally be accompanied by a reform of land use regulations. |
| Keywords: | Agricultural policies, Agricultural productivity, Environmental sustainability |
| JEL: | O13 O3 Q1 Q18 Q24 |
| Date: | 2022–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:181-en&r= |
| By: | Julia Anna Bingler (Council on Economic Policies (CEP); ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich); Mathias Kraus (University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg); Markus Leippold (University of Zurich; Swiss Finance Institute); Nicolas Webersinke (riedrich-Alexander-Universität Erlangen-Nürnberg) |
| Abstract: | Corporate climate disclosures are considered an essential prerequisite to managing climate-related financial risks. At the same time, current disclosures are imprecise, inaccurate, and greenwashing-prone. We introduce a deep learning approach to enable comprehensive climate disclosure analyses by fine-tuning the \climatebert model. From of 14,584 annual reports of the MSCI World index firms from 2010 to 2020, we extract the amount of cheap talk, defined as the share of precise versus imprecise climate commitments. We then test various hypotheses on the drivers of cheap talk. In particular, we ask whether climate initiatives discipline companies in the way they define and disclose actionable climate commitments in their annual reports. |
| Keywords: | Corporate climate disclosures, voluntary reporting, commitments, TCFD recommendations, textual analysis, natural language processing |
| JEL: | G2 G38 C8 M48 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2254&r= |
| By: | Julia M. Puaschunder (The New School, New York, USA) |
| Abstract: | Resilience finance is understood as an advancement of Socially Responsible Investments. In the wake of the COVID-19 economic fallout, unprecedented amounts of governmental rescue and recovery aid were allocated towards social and environmental causes. This paper argues that advances in Socially Responsible Investments are resilience finance pegged to noble causes but also ethics and ideologies. The COVID-19 bailout and recovery packages can potentially provide, if well-designed and properly-used, a unique opportunity to develop fairer and sustainable societies. Finance can imbue responsibility in the post-COVID-19 era in the establishment and fortification of the current Sustainable Development Goals but potentially also in negative screenings and sanction mechanisms in international law infringements. The article argues for a comparative Behavioral Law and Economics approach to understand the most contemporary international finance politics and responsible investment trends around the world. |
| Keywords: | Climate Change, Climate Stabilization, Coronavirus crisis, COVID-19, Digitalization, Economics, Economics of the Environment, Environmental Justice, Environmental Governance, Equality, Law, Economics, Healthcare, Monetary policy, Rescue and recovery aid, Redistribution, Social Justice, |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0167&r= |
| By: | Pejman Abedifar (University of St Andrews - School of Management; Khatam University - Tehran Institute for Advanced Studies); Seyed Javad Kashizadeh (Khatam University); Steven Ongena (University of Zurich - Department of Banking and Finance; Swiss Finance Institute; KU Leuven; NTNU Business School; Centre for Economic Policy Research (CEPR)) |
| Abstract: | Using a rare flood in April 2019 in Iran as a natural experiment, we study the role of local banks in mitigating the financial consequence of natural disasters to smallholder farmers. We find that local branches immediately react to the disaster by increasing their lending for two months following the flood. Analyzing proprietary information on more than 70,000 farmers, we find that farmers with a stronger relationship with their bank - in particular when they are young and female - have a higher chance of access to new credit. Our findings underscore the importance of the presence of local banks in agricultural areas which are exposed to climate risk. |
| Keywords: | Local banks, Relationship lending, Climate Change, Farmers |
| JEL: | G21 G28 O13 Q14 Q54 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2252&r= |
| By: | Lebdioui, Amir |
| Abstract: | The economic future of Latin America and the Caribbean is intrinsically linked to climate change. In the context of a 21st century that will be marked by climate change and the global fight against it, the status quo is unlikely to help Latin American economies leap forward economically, which calls for a major rethinking of trade and investment strategies in the region. A Latin American Green Deal, based on regional coordination to exploit existing synergies and economies of scale, could be the way forward. Across the region there is growing evidence of climate change - precipitation patterns are shifting, temperatures are rising, and some areas are experiencing changes in the frequency and severity of weather extremes such as floods and droughts. By 2050, it is estimated that climate change damage could cost USD 100 billion annually to the region. The impact of climate change, which will be more devastating in Latin America than in most parts of the world, also influences the region’s ability to trade and its long-term export prospects. The increasing frequency of extreme meteorological events has already led to devastating effects on production, tourism, and trade infrastructure, while expected fluctuations in precipitation and temperature also threaten the long-term productivity of several agricultural outputs, which many countries in the region depend on as a source of exports. |
| JEL: | L81 |
| Date: | 2022–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115268&r= |
| By: | Nikos Karadimitriou (The Bartlett School of Planning - UCL - University College of London [London]); Sonia Guelton (LAB'URBA - LAB'URBA - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, University of Paris-East Créteil); Athanasios Pagonis (National Technical University of Athens, School of Architecture); Silvia Sousa (Civil Engineering Department, Faculty of Engineering, University of Porto, Research Centre for Territory, Transport and Environment - Universidade do Porto = University of Porto) |
| Abstract: | This paper examines the role that two Public Value Capture (PVC) mechanisms could play in providing a source of funding for urban infrastructure in the case of two coastal areas in France and Greece. High development pressures in those areas have been exacerbated in recent times by the growing ‘informality of desire'. Therefore, in a context of climate change the two case study areas face the dual challenge of an increasing ‘investment gap' and increasing vulnerability. Although the estimated costs are still based on approximate calculations, they are substantive. Using primary and secondary data, as well as analysis of the legal and policy framework, the paper shows that ‘informality of desire' is not only tolerated but actually incentivised in both countries. This leads to substantial short-term financial benefits for private developers and property owners but also some gains for local authorities and central governments. However, the value captured via the legalisation fees and property taxation is not adequately ringfenced and in any case it is not enough to cover the infrastructure gap and the potential compensation in case of natural disasters |
| Keywords: | Public Value Capture,Climate Change,the infrastructure gap,coastal development,Athens Riviera,Vendée |
| Date: | 2022–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03690708&r= |
| By: | Matthews, Alan |
| Abstract: | The European Green Deal has the ambition to bring about a more sustainable food system. Trade policy is required to be coherent with and supportive of the objectives of the Green Deal. Various legislative and other initiatives have been introduced or proposed to use trade policy measures to support the move to higher sustainability standards in the food system both in the EU and globally. Mandatory due diligence requirements for companies are proposed to ensure they have ‘clean’ supply chains. Mirror clauses have been proposed in agri-food trade to require that imported products meet similar regulatory standards as EU producers. Promoting this agenda is a priority of the French EU Presidency in the first half of 2022. Higher sustainability standards and accompanying trade measures will have a significant impact on the competitiveness of EU producers as well as international trade in food. This paper provides a preliminary assessment of this debate, with a particular focus on vulnerable developing countries for which the EU is an important market. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, International Relations/Trade |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc22:321162&r= |
| By: | Ogunpaimo, Oyinlola Rafiat; Buckley, Cathal; Hynes, Stephen; O'Neill, Stephen |
| Abstract: | There exist an urgent need to reduce ammonia (NH3) emissions to control air pollution and moderate other related environmental and health hazards. . This study adopts farm-level marginal abatement cost curve (MACC) analysis across different farm typologies in Ireland. The study also addresses the interactions amongst the abatement options and the presence of farm heterogeneity in order to examine whether it is sub-optimal to adopt a single marginal abatement cost curve across different farm systems. Teagasc National Farm Survey (NFS) 2020 data was used as the basis of the analysis in the paper. The findings show that the selected measures are effective in abating ammonia emissions at varying levels across the different farm typologies. Liming, protected urea and crude protein in diets were primarily cost-saving while the clover measure examined moved between cost-saving and cost positive across the different farm types. The presence of heterogeneity across the farm typologies was further supported by the difference in the MACC diagram of the farm types. Furthermore, a higher abatement potential (>100 kgNH3) was reported for the combined measure as against the stand-alone measures. |
| Keywords: | Environmental Economics and Policy, Farm Management |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc22:321176&r= |
| By: | Takuro Ashizawa (Bank of Japan); Nao Sudo (Bank of Japan); Hiroki Yamamoto (Bank of Japan) |
| Abstract: | The impact of natural disasters caused by increasing-scale climate change on economic activity has been the focus of global attention in recent years. Natural disasters primarily damage the assets owned by firms and households and public infrastructure, i.e., direct effects, but they may also affect the economic activity through the subsequent changes in production inputs, i.e., indirect effects. While there is already a large number of empirical analysis on the indirect effects, however, no consensus has been established not only on the scale and persistence, but even on the signs. In this paper, we estimate the indirect effects of past flood disasters in Japan on the real economy using Prefectural Accounts and Flood Statistics. There are three main findings. First, while floods have a negative effect on the GDP of the prefecture in which they occur, this effect may not persist over the long run as it loses statistical significance after the year following the year of occurrence. Second, floods have different effects across sectors. Floods generally have a negative effect on GDP of the manufacturing and the wholesale and retail sectors, while they tend to have a positive effect on GDP of the construction sector. Third, the magnitude of the indirect effect of floods differs for asset, facility, and equipment that incurs damage. Compared to damage to the assets owned by firms and households, damage to public infrastructure, such as roads, and to public service utilities, such as electric power facilities, tend to depress GDP more significantly, which may indicate the importance of public assets in the spillover effects of flood damage. |
| Keywords: | Climate Change; Natural Disaster; Physical Risk; Floods |
| JEL: | C21 C23 O44 Q54 |
| Date: | 2022–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:boj:bojwps:wp22e06&r= |
| By: | Leduc, Gaëlle; Hansson, Helena |
| Abstract: | Agroforestry has recently been recognized as a type of agriculture that provides ecosystem services such as biodiversity, carbon sequestration and water management. This paper studies farmers’ behavioral drivers with respect to their adoption of agroforestry practices, using survey data from Sweden. We extended the Theory of Planned Behavior (TPB) to incorporate other behavioral factors, including business identity, conservation objectives and perceived labor constraints. These constructs were first extracted with factor analysis before estimating their impact on adoption with logit models. Of the factors analyzed, the results indicate that conservation objectives positively impact farmers’ adoption of agroforestry. The absence of significance of the other behavioral variables, including attitudes, perceived behavioral control and subjective norms, indicate that there might be some over reporting of significant TPB models in the farmers’ adoption literature. |
| Keywords: | Environmental Economics and Policy, Institutional and Behavioral Economics |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc22:321174&r= |
| By: | Le Gloux, Fanny; Dupraz, Pierre; Issanchou, Alice; Ropars-Collet, Carole |
| Abstract: | The effectiveness of payment schemes for delivering agri-environmental public goods with provision thresholds (biodiversity, water quality) depends on reaching enough farmland enrolment at the landscape scale. Supporting the development of collaborative approaches with a financial bonus conditioned to a collective element on top of an individual basic payment is a promising way to favour participation and continuity of environmental commitments in an area. However, little is known on farmers’ attitudes towards such mixed-payment mechanisms. Using a choice experiment, we measure farmers’ preferences towards an individual bonus for sponsoring peers, which can be combined with a collective bonus for improving the ecological quality of rivers in northwestern France. Applying a mixed logit model, we find that respondents have a positive willingness to accept contracts with a sponsor bonus, but a negative willingness to accept a sponsor bonus combined with a bonus for reaching a collective environmental objective. We characterize respondents’ heterogeneity with a latent class model and identify 3 different attitudes towards the bonus options: (i) negative preferences for both, particularly for the combined bonus, (ii) indifference, (iii) positive preferences for both, even higher for the combined bonus. |
| Keywords: | Agricultural and Food Policy, Agricultural Finance, Environmental Economics and Policy |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc22:321177&r= |
| By: | Khuc, Quy Van |
| Abstract: | War, poverty, climate change, solutions, DMS, core values, culture, world peace, humankind |
| Date: | 2022–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:5zxbn&r= |
| By: | Céline Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Thomas Le Gallic (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Nico Bauer (PIK - Potsdam-Institut für Klimafolgenforschung); Panagiotis Fragkos; Daniel Huppmann; Marc Jaxa-Rozen; Ilkka Keppo (Aalto University); Elmar Kriegler (PIK - Potsdam-Institut für Klimafolgenforschung); Tamás Krisztin; Giacomo Marangoni; Steve Pye (UCL - University College of London [London]); Keywan Riahi; Roberto Schaeffer (UFRJ - Universidade Federal do Rio de Janeiro); Massimo Tavoni; Evelina Trutnevyte (UNIGE - Université de Genève); Detlef van Vuuren (Utrecht University [Utrecht]); Fabian Wagner |
| Abstract: | As they gain new users, climate change mitigation scenarios are playing an increasing role in transitions to net zero. One promising practice is the analysis of scenario ensembles. Here we argue that this practice has the potential to bring new and more robust insights compared with the use of single scenarios. However, several important aspects have to be addressed. We identify key methodological challenges and the existing methods and applications that have been or can be used to address these challenges within a three-step approach: (1) pre-processing the ensemble; (2) selecting a few scenarios or analysing the full ensemble; and (3) providing users with efficient access to the information. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03663267&r= |
| By: | Damini Singh; Indrani Gupta (Institute of Economic Growth, Delhi University, Delhi); Sagnik Dey |
| Abstract: | This paper provides a causal estimate of the contemporaneous impact of outdoor air pollution on cognitive and academic performance of children aged 8-11 years in India by combining satellite PM2.5 data with the two rounds of Indian Human Development Survey. Our identification strategy relies on the use of thermal inversions as an instrument that generates exogenous variation in the pollution levels. Results show that exposure to average PM2.5 concentrations in the past 12 months prior to the month of test taken by the children has a significant detrimental impact on their cognitive ability in India. Specifically, a 1 µg/m3 increase in average PM2.5 concentrations in the past 12 months decreases the math performance by 10-16 percentage points and the reading performance by 7-9 percentage points. We also find that there is a significant fall in the combined agestandardised cognitive score. The results imply that the cost of air pollution in India is much higher than estimated, and a narrow focus on health-related outcomes understate the magnitude of negative impact of pollution, as mental acuity is essential for higher productivity of children. |
| Keywords: | Air pollution, Cognitive performance, Educational outcomes, Thermal inversions, India. |
| JEL: | O12 O13 I15 I24 I25 Q53 Q56 |
| Date: | 2022–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:awe:wpaper:452&r= |
| By: | Avril Pauline; Levieuge Grégory; Turcu Camelia |
| Abstract: | We empirically investigate the impact of natural disasters on the external finance premium (EFP), conditional on the stringency of macroprudential regulation. The intensity of natural disasters is measured through an original set of geophysical indicators for a sample of 88 countries over the period 1996-2016. Using local projections, we show that, following storms, the EFP significantly rises (drops) when macroprudential regulation is lax (stringent). This suggests that regulated financial systems could foster favorable financing conditions to replace destroyed capital with more productive capital. Macroprudential stringency seems less crucial in the case of floods, which are more predictable and thus may prompt self-discipline. |
| Keywords: | Financial Stress, External Finance Premium, Macroprudential Policy, Natural Disasters, Local Projections |
| JEL: | E43 E5 Q54 C23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:874&r= |
| By: | Volodina, Victoria; Wheatcroft, Edward; Wynn, Henry |
| Abstract: | District heating is expected to play an important role in the decarbonisation of the energy sector in the coming years since low carbon sources such as waste heat and biomass are increasingly being used to generate heat. The design of district heating often has competing objectives: the need for inexpensive energy and meeting low carbon targets. In addition, the planning of district heating schemes is subject to multiple sources of uncertainty, such as variability in heat demand and energy prices. This paper proposes a decision support tool to analyse and compare system designs for district heating under uncertainty using stochastic ordering (dominance) so that decision-makers can make robust decisions. The uncertainty in input parameters of the energy system model together with general scenarios are introduced to generate distributions of net present costs and emissions for each design. To perform inference about the induced distributions of outputs, we apply the orderings in the mean and dispersion. The proposed approach is demonstrated in an application to the waste heat recovery problem in district heating in Brunswick, Germany. The results obtained show that heat pump, a low carbon design option, is more robust in comparison to combined heat and power (CHP) and a mix of CHP and heat pump under all three scenarios, highlighting that robustness is an attractive feature of low-temperature waste heat recovery. |
| Keywords: | district heating; local sensitivity; scenarios; stochastic orderings; waste heat recovery; uropean Union’s Horizon 2020 research and innovation programme under grant agreement No 767429; project ReUseHeat.; esearch project Managing Uncertainty in Government Modelling (MUGM) funded by the Alan Turing Institute |
| JEL: | C1 |
| Date: | 2022–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:114292&r= |
| By: | Ralf Martin; Sam Unsworth; Anna Valero; Dennis Verhoeven |
| Abstract: | In the recovery from Covid-19, innovation and diffusion will be key to addressing several structural challenges facing the UK economy. These include improving the UK's longstanding poor productivity performance, addressing large-scale disparities across and within regions, and re-orientating the economy to reach net zero emissions of greenhouse gases by 2050. We analyse patent data to identify areas where the UK has comparative advantage in innovation, and where the economic returns in the UK might be large, highlighting technologies that are relevant for two key societal challenges: net zero and dealing with the pandemic. We conclude with policy implications. While the government's 'Ten Point Plan for a Green Industrial Revolution' provides a clear signal for future investment and growth, this needs to be accelerated and complemented with consistent and long-term innovation and industrial policy to facilitate transition to sustainable business models, investments and related innovation. |
| Keywords: | covid-19, productivity, technological change, UK economy, climate change, net zero, innovation, R&D |
| Date: | 2020–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcvd:cepcovid-19-014&r= |
| By: | Shyam Nath; Yeti Nisha Madhoo |
| Abstract: | This paper empirically tests the suitability of local vs state government expenditure in providing an environmental public good, namely airborne pollution control in two municipal areas in India. We employ an innovative methodology where factual and counterfactual state and local expenditure regimes are constructed to capture different degrees of decentralization. Econometric results highlight higher efficacy of state level expenditure (centralization) as spillover/regional effects become important. Particularly, superiority of state expenditure is evident in the control of suspended particulate matter (SPM), which has wide cross-boundary effects. Local expenditure and the counterfactual of local expenditure for uniform provision (both decentralized provision modes) emerge as more effective than state to control point-source local pollutant SO2. However, they may also supplement the effects generated by state expenditure in the case of NO2 emissions, which entail spillovers and seem amenable to pressure group influence at local level. |
| Keywords: | Environmental governance; fiscal decentralization; atmospheric pollution; spillover effects; non-point source pollution; India |
| JEL: | E31 E61 E65 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pas:asarcc:2021-01&r= |
| By: | Anastasios Xepapadeas |
| Abstract: | Following a brief review of the management of environmental externalities under strategic interactions in the traditional temporal domain, results are extended to the spatiotemporal domain. Conditions for spatial open-loop and feedback Nash equilibria, along with conditions for the benchmark cooperative solution, are presented and compared. A simplified numerical example illustrates the spatial patterns emerging at a steady state under Fickian diffusion and dispersal kernels, and the inefficiency of spatially-flat emission taxes. This conceptual framework could provide new research areas. |
| Keywords: | spatial diffusion, dispersion kernel, open-loop Nash equilibrium, feedback Nash equilibrium, cooperative solution, steady state, optimal emission tax |
| Date: | 2022–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2216&r= |
| By: | Giulia Malevolti |
| Abstract: | As extreme weather events are becoming more frequent, the chronic poor, being overly exposed to these shocks, risk suffering the highest price. The 2012 flood in Nigeria was the worst in 40 years and hit more than 3 million people. Using nationally representative panel data from LSMS project, I study households’ asset dynamics over about a decade. I find that households hit by the flood converge to multiple equilibria consistent with the poverty trap narrative. In particular, households whose assets fell below the threshold converge to a low-level equilibrium point, whereas better endowed households converge to a high steady state. This is consistent across several empirical methods, ranging from parametric to non-parametric methods, as well as panel threshold estimation. Robustness checks further examine the validity of the finding, testing different asset indexes and flood definitions, as well as controlling for conflict-related events. Identifying a poverty trap is crucially helpful for designing poverty alleviation policies and fostering a country’s development. |
| Keywords: | poverty traps; flood; climate shocks; asset poverty; Nigeria; poverty |
| JEL: | D31 I32 O12 Q54 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2022_10.rdf&r= |
| By: | Rajashri Chakrabarti; Marco Del Negro; Julian di Giovanni; Laura Pilossoph |
| Abstract: | What are the implications of climate change, and climate change–related policies, for macroeconomics in general and monetary policy in particular? This is the key question debated at a recent symposium on “Climate Change: Implications for Macroeconomics” organized by the Applied Macroeconomics and Econometrics Center (AMEC) of the New York Fed on May 13. This post briefly summarizes the content of the discussion and provides links to recordings of the various sessions and the participants’ slides. |
| Keywords: | climate change; macroeconomics |
| JEL: | E2 Q54 |
| Date: | 2022–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:94441&r= |
| By: | Devina Lakhtakia (Department of Economics and Finance, University of Guelph, Guelph ON Canada); Ross McKitrick (Department of Economics and Finance, University of Guelph, Guelph ON Canada) |
| Abstract: | Many studies have been undertaken to quantify the economic costs of climate change. However, while climate data is measured at a grid cell level, economic data are measured at the national level. In order to form correct damage estimates researchers must reconcile the two. Aggregating climate data up to the national level has been the more common approach but results are sensitive to how the averaging is done and the averaging process itself can bias the results. An alternative approach has been to project economic data down to the grid cell level. Nordhaus (2006) developed the G-Econ database to do this, but while it provides considerable spatial detail it provides only four quinquennial observations per cell from 1990 to 2005. We develop herein a model to predict within-grid cell economic activity using national, regional and local economic activity. The latter is measured using a unique dataset showing annual fight volumes at hundreds of urban and rural airports worldwide from 1976 to 2010. We show that the model has a high level of explanatory power and can be used in an iterative algorithm to infill and extrapolate the G-Econ data base to provide annual observations for grid cells in approximately 150 countries over the 1976 to 2010 interval. We supplement this with satellite nightlight data which provides even more spatial detail but over a shorter time frame. |
| Keywords: | Gross cell product, climate change, economic growth |
| JEL: | Q54 Q56 R11 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:gue:guelph:2022-03&r= |
| By: | Jorge Carrera; Pablo de la Vega |
| Abstract: | We estimate the causal effect of external debt (ED) on greenhouse gas (GHG) emissions in a panel of 78 emerging market and developing economies (EMDEs) over the 1990- 2015 period. Unlike previous literature, we use external instruments to address the potential endogeneity in the relationship between ED and GHG emissions. Specifically, we use international liquidity shocks as instrumental variables for ED. We find that dealing with the potential endogeneity problem brings about a positive and statistically significant effect of ED on GHG emissions: a 1 percentage point (pp.) rise in ED causes, on average, a 0.7% increase in GHG emissions. Moreover, when disaggregating ED between public and private indebtedness, instrumental variable estimates allow us to find a positive and statistically significant effect of external public debt on GHG emissions. Finally, disaggregation by type of creditor reveals that the external public debt from bilateral (private) creditors causes, on average, a 1.8% (1.2%) increase in GHG emissions. On the contrary, the instrument used is not relevant in the case of multilateral lending so we have not found any significant effect of external public debt from IMF creditors or other multilateral creditors on environmental damage. |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2206.01840&r= |
| By: | B Canaj; Yanne Bogaerts; Marijke Verbruggen |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ete:woswps:687493&r= |
| By: | Michele Fioretti (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Jorge Tamayo (Harvard Business School - Harvard University [Cambridge]) |
| Abstract: | Renewable generation creates a tradeoff between current and future energy production as generators produce energy by releasing previously stored resources. Studying the Colombian market, we find that diversified firms strategically substitute fossil fuels for hydropower before droughts. This substitution mitigates the surge in market prices due to the lower hydropower capacity available during dry periods. Diversification can increase prices, instead, if it results from mergers steepening a firm's residual demand. Thus, integrating production technologies within firms can smooth the clean-energy transition by offsetting higher prices during scarcity periods if the unaffected technologies help store renewables more than exercise market power. |
| Keywords: | Energy transition,Renewables,Hydropower generation,Diversified production technologies,Energy storage,Wholesale electricity markets |
| Date: | 2021–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpspec:hal-03389152&r= |
| By: | Perona, Mathieu |
| Abstract: | Du sentiment d’impuissance à la révolte, de la représentation d’un écologie punitive à celle d’une sobriété heureuse, le thème du bien-être traverse les représentations du changement climatique et de la nécessaire transition écologique. Dans un format plus long que celui de nos Notes habituelles, nous réalisons ici un parcours de la littérature scientifique qui mobilise la mesure du bien-être subjectif pour éclairer ces enjeux. Comme nous l’avons démontré dans d’autres domaines, le bien-être subjectif constitue une manière de mesurer les effets du changement climatique. Dépassant les seules conséquences matérielles, il met en évidence le coût important de la plus grande variabilité du climat qui résulte du réchauffement planétaire. À une échelle plus locale, il souligne de même tant les effets délétères de la pollution que ceux, bénéfiques, d’un accès à des espaces naturels. Notre compréhension de la manière dont se construit l’évaluation de la satisfaction dans la vie fournit en parallèle des outils pour dessiner les transitions vers des modes de vie moins consommateurs en ressources. Le pluriel est ici important : la diversité des situations au regard des consommations à réguler impose une grande attention aux capacités d’engagement et à l’acceptabilité des évolutions proposées. Le changement climatique génère de fortes réactions émotionnelles. Si l’éco-anxiété pèse aujourd’hui sur le bien-être d’un nombre croissant de Français, et particulièrement chez les jeunes générations, la colère à l’égard de la lenteur des progrès constitue un puissant facteur de passage à l’action. Elle n’est heureusement pas le seul facteur. De nombreuses études soulignent qu’adopter des comportements plus éco-responsables va de pair avec un niveau de bien-être plus élevé. |
| Keywords: | Bien-être, Wellbeing, Climate change, changement climatique, transition écologique |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpm:notobe:2209&r= |
| By: | Fengxia Dong |
| Abstract: | Besides a variety of production and environmental benefits, cover cropping has been advocated as a mean to increase resilience to drought. We explored factors influencing farmer’s adoption of cover crops and examined the effects of cover crops on soybean yield and its risk using USDA’s 2018 ARMS Phase II Soybean Production Practices and Costs Report and Phase III Soybean Costs and Returns Report. Incorporating drought occurrence in current year and previous 5 years into our analysis, we find that previous occurrence of drought did not affect farmers’ adoption of cover crops and the effects of cover crops on yield and its risk are mixed. Under a drought condition, cover crops reduced soybean yield and increased yield variation; but in the meantime, they reduced the risk of crop failure, or made yield less negatively skewed. The insignificant effect of previous drought on cover crop adoption and the mixture of positive and negative effects of cover crops on yield and its risk imply that farmers are divided in their acceptance of cover crops as a mean to build resilience to drought. |
| JEL: | Q12 Q54 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30122&r= |
| By: | Ryuichiro Hashimoto (Bank of Japan); Nao Sudo (Bank of Japan) |
| Abstract: | This paper quantitatively assesses the indirect effect of floods on the real economy and financial intermediation in Japan by estimating a dynamic stochastic general equilibrium (DSGE) model that incorporates a mechanism through which floods cause the capital stock and the public infrastructure to depreciate exogenously, using the data on flood damage recorded in the Flood Statistics released by the Japanese government. The result of the analysis is twofold. First, flood shocks dampen GDP from the supply side by reducing the capital stock inputs. The decline in GDP then impairs the balance sheets of firms and financial intermediaries, resulting in disruptions to financial intermediation and thus dampening GDP further from the demand side. Even when the direct damage due to floods is fully covered by insurance, the downward pressure on GDP endogenously deteriorates the balance sheets of these sectors, causing the same mechanism to operate. Second, the quantitative impacts of flood shocks on GDP up to now have been minor compared to the standard structural shocks that are considered important in existing macroeconomic studies, including shocks to total factor productivity (TFP) and the subjective discount factor. According to the estimates that use the relationship between the key variables in our model together with climate change scenarios published by an external organization, the impacts of these shocks could become somewhat larger in the future. |
| Keywords: | Climate change; Natural disasters; Physical risk; Financial System; DSGE model |
| JEL: | E32 E37 E44 Q54 |
| Date: | 2022–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:boj:bojwps:wp22e05&r= |
| By: | Sandra Aguilar-Gomez (University of California, San Diego); Emilio Gutierrez (Department of Economics, ITAM); David Heres (Banco de México, Financial Stability Department); David Jaume (Banco de México, Financial Stability Department); Martin Tobal (Banco de México, Financial Stability Department) |
| Abstract: | The frequency and intensity of extreme weather events are likely to increase with climate change. Although a growing body of literature shows that extreme weather has a negative impact on economic outcomes, there is lack of evidence about how it affects firm’s credit delinquency and credit use. This question is relevant for Low and Middle Income Economies, where institutions are frequently less prepared to deal with informational asymmetries and credit market are frequently shallow. We fill this gap by exploiting an extraordinarily detailed data set with loan-level information for the universe of loans extended by commercial banks to private firms in Mexico. Exploiting differences across Mexican counties over time, we find that anomalous days of extreme temperature increase the rate of non-performing loans and that this result is mainly driven by extreme heat. The effect is concentrated in the agricultural sector but there is also a nonnegligible impact on the non-agriculture industries that are more dependent on local demand. Our results are consistent with general equilibrium effects originated in agriculture that expand to non-agriculture sectors in agricultural regions. |
| Keywords: | Extreme temperatures, Default, Firm credit, Agriculture. |
| JEL: | D25 Q54 Q14 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:148&r= |
| By: | Malevolti, Giulia |
| Abstract: | As extreme weather events are becoming more frequent, the chronic poor, being overly exposed to these shocks, risk suffering the highest price. The 2012 flood in Nigeria was the worst in 40 years and hit more than 3 million people. Using nationally representative panel data from LSMS project, I study households’ asset dynamics over about a decade. I find that households hit by the flood converge to multiple equilibria consistent with the poverty trap narrative. In particular, households whose assets fell below the threshold converge to a low-level equilibrium point, whereas better endowed households converge to a high steady state. This is consistent across several empirical methods, ranging from parametric to non-parametric methods, as well as panel threshold estimation. Robustness checks further examine the validity of the finding, testing different asset indexes and flood definitions, as well as controlling for conflict-related events. Identifying a poverty trap is crucially helpful for designing poverty alleviation policies and fostering a country’s development. |
| Keywords: | Agricultural and Food Policy, Consumer/Household Economics, Environmental Economics and Policy, Food Security and Poverty |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc22:321172&r= |
| By: | Joey Blumberg; Chris Goemans; Dale Manning |
| Abstract: | Agricultural producers make investment decisions based on beliefs about future returns. This article investigates how changes in beliefs about input availability affects the adoption of conservation practices. We develop a theoretical model to examine how a producer's beliefs about water shortages influence investment in more efficient irrigation technologies. We then use publicly available data on water rights and irrigated cropland to empirically identify the impact of changing beliefs about water availability on conservation decisions. We leverage a natural experiment in Colorado in which a period of severe drought and institutional change in the early 2000s led to an exogenous shock to expectations for some water right holders. We estimate that producers who experience unprecedented increases in the curtailment of their water right convert 11% more land to a more efficient irrigation technology on average. We also present evidence that adoption rates are driven more by changes in surface water availability than groundwater. This analysis provides useful insight into the role of beliefs in incentivizing adaptation to increasing water scarcity in irrigated agriculture. |
| JEL: | Q1 Q25 Q54 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30080&r= |
| By: | Francesco Giancaterini; Alain Hecq; Claudio Morana |
| Abstract: | This paper, exploiting the properties of mixed causal and noncausal models, proposes strategies to detect time reversibility in stochastic processes. These novel strategies can be implemented to verify the time reversibility of stationary stochastic processes. We show that they can also be used for nonstationary processes when the trend component is computed using the Hodrick-Prescott filter characterized by a time-reversible closed-form solution. We investigate whether time reversibility is a feature of climate changes using nine climate indicators. |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2205.07579&r= |
| By: | Alessandro Passaro; Filippo Randelli |
| Abstract: | Faced with higher risks from climate change, food systems will need to transition away from dominant industrial paradigms and move towards a more sustainable way of producing, distributing, and consuming food. For sustainability transitions to happen, there is increased acknowledgment that lower administrative levels and local territorial arrangements are fundamental for policymaking, implementation, and impactful action. To go beyond two well-known criticisms of local food sustainable initiatives, i.e., to be rather small and to be developed outside policy frameworks and/or in stark opposition to current food systems, we argue in this paper to look at new meso-spaces of transformation at local level such as biodistricts, where community members, professionals, and governments get together to share knowledge, deliberate, and collectively devise place-based strategies to address complex food systems issues. We analyse 8 biodistricts in Tuscany and, as a result of the analysis, we argue that biodistricts can potentially act as territorial meso-spaces at local level, favouring the transformation towards sustainability of food systems. |
| Keywords: | food systems, sustainability transitions, governance, grassroots innovations. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2022_12.rdf&r= |
| By: | Murhula K., Pacifique; Achiza N., Alain |
| Abstract: | This paper intends to analyze the relationship between mining boom and economic growth and on the other hand the relationship between mining boom and sustainable development in a country potentially furnished of various mineral resources, the DRCongo. To achieve these two goals, we estimate an Autoregressive Distributed Lag (ARDL) Model on Congolese data from 2005 to 2018 for two main equations respectively. From estimations, our findings show that the mineral rent, taken as mining boom proxy negatively impacts on GDP per capita as well as in the long and short run implicating a non-inclusive growth stemming from mining sector. On the other hand, mining boom has a significant and negative effect on sustainable development with a coefficient value of -3.18 and -1 at the long and short run respectively) and this impact is more marked in the long term. This is because a unit of mineral resources exploited today is no longer available for future generations; which reduces their right to enjoy the resources that the country once had. Otherwise, Adjusted Net Saving has been find negative between 2005 and 2018 with an average of -10,16% revealing that the DRCongo is not sustainable. |
| Keywords: | Mining boom, Resource curse, Economic growth, Sustainable development, Governance, ARDL Model |
| JEL: | C3 G38 O47 Q01 Q33 Q5 |
| Date: | 2021–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113330&r= |
| By: | Rita Abdel Sater (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The works compiled in this thesis are concrete examples of how methods, insights and evidence from behavioural science and economics could enlighten policy makers wishing to understand and reinforce pro-environmentalism. The 1st part is an application of methods and insights from psychology to environmental public policy and is the product of a collaboration with policy makers in the French Parisian region, to tackle two polluting behaviours: littering and household combustion. The 1st chapter shows how laboratory experiments using psychometric methods from vision research could be crucial to inform policy makers on how to maximise the effectiveness of littering interventions, by quantifying the increase in visual salience following a change in the colour of trash bins in an urban setting. The 2nd chapter, using a field experimental setting, shows that while information provision is not enough to change household combustion behaviour, increasing the salience of indoor pollution by combining feedback provision and social comparison is effective in changing behaviour and decreasing indoor air pollution. The 2nd part of this thesis examines the relationship between socioeconomic status and the psychological mechanisms underlying pro-environmentalism and behavioural interventions. The 3rd chapter shows that the positive association between socioeconomic status and pro-environmental attitudes is partially mediated by individual time preferences. Chapter 4 is a short review suggesting that socioeconomic backgrounds could moderate the effectiveness of popular environmental behavioural interventions that leverage on biases likely to be heterogeneous across income groups. |
| Abstract: | Les travaux compilés dans cette thèse représentent des exemples de la manière dont les méthodes, connaissances et résultats des sciences comportementales et économiques pourraient informer les décideurs publics souhaitant comprendre et renforcer les politiques environnementales. La 1ère partie est une application des méthodes de la psychologie aux politiques publiques environnementales, et le produit d'une collaboration avec des décideurs publics de la région parisienne, abordant deux comportements polluants : les déchets et la combustion domestique. Le premier chapitre illustre comment les expérimentations en laboratoire utilisant des méthodes psychométriques peuvent informer les décideurs sur la manière de maximiser l'efficacité des interventions contre les ordures dans la rue. Le 2ème chapitre, utilisant un cadre expérimental sur le terrain, montre qu'une combinaison de feedback personnalisé et des éléments de comparaison sociale est efficace pour modifier le comportement de combustion domestique et réduire la pollution de l'air intérieur. La 2ème partie de cette thèse examine la relation entre le statut socioéconomique et les mécanismes psychologiques qui sous-tendent le pro-environnementalisme et les interventions comportementales. Le chapitre 3 montre que l'association positive entre le statut socio-économique et les attitudes pro-environnementales est partiellement médiée par les préférences temporelles. Le chapitre 4 suggère que les antécédents socioéconomiques peuvent modérer l'efficacité des interventions comportementales environnementales couramment employées qui s'appuient sur des biais susceptibles d'être hétérogènes entre les différents niveaux de revenus. |
| Keywords: | Experiments,Environmental policy,Behavioural science,Expérimentation,Politiques environnementales,Sciences comportementales |
| Date: | 2021–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpspec:tel-03450909&r= |
| By: | Mitsch, Frieder; McNeil, Andrew |
| Abstract: | A clean environment is a public good, with the benefits shared by all. While most individuals can agree on the need to implement green policies, we argue that the cost-benefit calculation is quite different depending on where one lives. Those individuals living in places where green infrastructure is infeasible, such as cities, can advocate for green technologies knowing that the chance of having to bear the cost of infrastructure in their ‘backyard’ is low. We test how the building of wind turbines and solar farms changes one’s political preferences in the German state of Baden-Württemberg. We use a difference-indifference design based on whether one’s area is designated for potential infrastructure in the future. We show that when the burden of ‘green’ infrastructure falls on voters, wind turbines or solar farms in one’s ‘backyard’, these local authorities vote less for the Green Party. Additionally, using individual level data from SOEP, we find that it is those individuals who previously voted Green who are the most likely to desert their party in the face of green infrastructure, rather than disincentivising potential ‘switchers’. We argue that this has profound implications for the move to ‘net zero’. Green parties face a Catch22 situation, the very policies that draw their support create a backlash when implemented. |
| JEL: | N0 |
| Date: | 2022–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115269&r= |
| By: | Julia Mink (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In this dissertation, I examine the effects of major life events and exposure to adverse environmental conditions on health and health-related outcomes. The objective of this work is to establish causal relationships using quasi-experimental methods and mobilising different sources of micro-level data from France. Each of the four chapters that compose this dissertation is a stand-alone, independent piece of research that addresses distinct policy-relevant issues. In the first two chapters, I consider the impact of retirement and the dissolution of a romantic partnership, respectively, on income and diet and discuss the potential health effects of these changes. In the third chapter, I investigate the consequences of exposure to adverse conditions related to World War II during childhood and adolescence on health outcomes in adulthood. In the fourth chapter, I examine the short-term effects of exposure to ambient air pollution on health care use and costs. |
| Abstract: | Dans cette thèse, j'examine les effets de certains événements majeurs de la vie et de l'exposition à des conditions environnementales défavorables sur la santé et les résultats de santé. L'objectif de ce travail est d'établir des relations causales en utilisant des méthodes quasi-expérimentales et en mobilisant différentes sources de données de micro-niveau en France. Chacun des quatre chapitres qui composent cette dissertation est un travail de recherche autonome et indépendant qui aborde des questions distinctes et pertinentes pour les politiques publiques. Dans les deux premiers chapitres, j'examine l'impact de la retraite et de la séparation du couple, respectivement, sur le revenu et le régime alimentaire et je discute des effets potentiels de ces changements sur la santé. Dans le troisième chapitre, j'étudie les conséquences de l'exposition à des conditions défavorables liées à la Seconde Guerre mondiale pendant l'enfance et l'adolescence sur la santé à l'âge adulte. Dans le quatrième chapitre, j'examine les effets à court terme de l'exposition à la pollution de l'air ambiant sur l'utilisation et les coûts des soins de santé. |
| Keywords: | Fixed effects model,Life-cycle events,Health effects,Air pollution,Modèle à effets fixes,Evènements du cycle de vie,Effets sur la santé,Pollution de l'air |
| Date: | 2021–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpspec:tel-03575191&r= |
| By: | Eric Kulanthaivelu (CEMOI - Centre d'Économie et de Management de l'Océan Indien - UR - Université de La Réunion) |
| Abstract: | Tropical cyclones are arguably one of the most damaging and threatening natural disasters for human systems. Among other examples, the 2005 Hurricane Katrina caused the displacement of approximately 650,000 people and destroyed more than 200,000 homes along the US Gulf Coast. A number of empirical studies have explored the short and long-run economic relationship between tropical cyclones and national growth rates, but no general conclusion can be drawn from them so far. While negative effects are found in samples of exposed countries worldwide, cyclone shocks also show no significant influence in other national-level analyses. This suggests that, beyond inequalities in the exposure to cyclonic risk between countries, there is also inequality regarding these extreme weather events' impacts. |
| Date: | 2022–03–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03662162&r= |
| By: | Yudianti, Anita |
| Abstract: | PRECEDE (Predisposing, Reinforcing, and Enabling Causes in Educational Diagnosis and Evaluation) adalah suatu model pendekatan yang dapat digunakan dalam mendiagnosis masalah kesehatan ataupun sebagai alat untuk merencanakan suatu kegiatan perencanaan kesehatan atau mengembangkan suatu model pendekatan yang dapat digunakan untuk membuat perencanaan kesehatan. Namun, pada tahun 1991 Green menyempurnakan kerangka tersebut menjadi PRECEDE-PROCEED. PROCEED (Policy, Regulatory, Organizational, Construct, in Educational and Environmental Development). PRECEDE digunakan pada fase diagnosis masalah, penetapan prioritas masalah dan tujuan program, sedangkan PROCEED digunakan untuk menetapkan sasaran dan kriteria kebijakan, serta implementasi dan evaluasi. |
| Date: | 2022–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:2sqpx&r= |
| By: | Becker, Stefan; Grajewski, Regina; Rehburg, Pia |
| Abstract: | The Common Agricultural Policy (CAP) 2023–2027 is implemented through national strategic plans. This paper examines the strategic plans submitted for approval, analysing their financial priorities to identify commonalities, differences and overarching patterns of national CAP implementation. It aims to provide general orientation on the new funding period as well as starting points for further studies. The paper shows that the member states use the discretion granted in the Strategic Plan Regulation in various ways. Despite common goals and funding guidelines, the plans show great heterogeneity. Regarding the general design, the plans differ quite vastly mainly in the reallocation of funds between the first and the second pillar or the level of contribution rates. In the first pillar, the plans not only vary in their shares of decoupled and coupled direct payments as well as the newly introduced eco-schemes; they also differ considerably in how these interventions are designed. Overall, the funds planned for eco-schemes are slightly above the prescribed minimum, while some member states are close to the maximum share of coupled direct payments. Interventions in specific sectors also vary. Some offerings are highly differentiated; however, most funds will flow into the fruit and vegetable and wine sectors. The second pillar is marked by overall continuity. Despite the eco-schemes in the first pillar, agri-environment- climate measures also remain important in the second pillar. Support for organic farming and animal welfare measures even increase slightly in relative terms. The same is true for risk management, where Italy and France make substantial use of CAP funds. Support for investments remains high, but becomes less important. More significant than the changes compared to the current funding period are national differences: The strategic plans attribute quite different importance to each of these interventions. Despite the heterogeneity, the strategic plans heavily focus on the agricultural sector; services of general interest and business development in rural areas as well as the forestry sector are only secondary. The goals primarily pertain to income, competitiveness and the environment. This pattern is also evident, albeit in a weakened form, if only the second pillar is considered. Nevertheless, the overall diversity of strategic plans is further evidence of the subsidiarity in the Common Agricultural Policy. |
| Keywords: | Agricultural and Food Policy, Agricultural Finance, Environmental Economics and Policy, Financial Economics |
| Date: | 2022–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:jhimwp:321830&r= |
| By: | Earnhart, Dietrich; Germeshausen, Robert; von Graevenitz, Kathrine |
| Abstract: | Information-based policies play an important role in environmental protection efforts around the world. These policies use information provision and/or disclosure to shape behavior in order to meet the policy objective; for example, mandatory information disclosure requires firms to measure and report their pollutant emissions. This study investigates the influence of a particular information-based policy - the European Union's mandatory and public emission registry of polluting facilities - on financial outcomes of German firms: revenues, costs, and profits. Using detailed firm-level data for the years 1998 to 2016, we exploit size- and pollution-specific reporting thresholds to isolate the effect of this policy. We compare firms that own facilities required to report in the first EPER wave with similar firms that do not own such facilities. For this comparison, we deploy both a difference-in-differences design and an event study. Our findings suggest that the introduction of EPER in 2001 increased both operating revenues and expenditures, yielding a neutral impact on the operating profits of affected firms. These results support neither of the two competing hypotheses regarding financial outcomes: costly regulation hypothesis and Porter Hypothesis. |
| Keywords: | Information-based Regulation,Environmental Policy,Financial Performance,Porter Hypothesis |
| JEL: | K32 L21 O31 Q52 Q58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22015&r= |
| By: | Costanza Torricelli; Beatrice Bertelli |
| Abstract: | This paper analyses the impact of screening strategies based on ESG (Environmental, Social, Governance) scores, with a focus on periods of financial distress such as the 2008 global recession and the 2020 Covid-19 pandemic. To this end, negative and positive screening strategies based on Bloomberg ESG disclosure scores and different screening thresholds are set up from the 559 stocks belonging to the EURO STOXX index in the period 2007-2021. To compare ESG portfolios performance with a benchmark passive strategy, we compute risk-adjusted performance measures: the Sharpe ratio and the alphas resulting from both a one-factor model and the Carhart four-factor model. Three main results emerge. First, each single ESG dimension has a different role in determining performance: environmental and governance screens, and the combined ESG ones, generally lead to over performance, in contrast to the social screens. Second, ESG screens represent better performing strategies in the long-term, whereas, when the focus is on times of financial distress, the passive strategy appears to perform better and ESG portfolios do not seem to represent a safe haven. Finally, positive screening strategies, and in particular those based on the social dimension, limit diversification benefits and are characterized by significant underperformance during periods of crises. These results are useful to address ESG portfolio optimization and to gauge the role that finance may have in support of sustainable economic development. |
| Keywords: | sustainable finance, Socially Responsible Investments (SRI), Environmental, Social, Governance (ESG), positive and negative screening strategies, portfolio performance. |
| JEL: | C32 G01 G11 M14 Q01 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:mod:wcefin:0087&r= |
| By: | Anmina Murielle Djiguemde (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Dimitri Dubois (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Alexandre Sauquet (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Mabel Tidball (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | We study the impact of discrete versus continuous time on the behavior of agents in the context of a dynamic common pool resource game. To this purpose, we consider a linear quadratic model and conduct a lab experiment in which agents exploit a renewable resource with an infinite horizon. We use a differential game for continuous time and derive its discrete time approximation. In the single agent setting, we fail to detect, on a battery of indicators, any difference between agents' behavior in discrete and continuous time. Conversely, in the two-player setting, significantly more agents can be classified as myopic and end up with a low resource level in discrete time. Continuous time seems to allow for better cooperation and thus greater sustainability of the resource than does discrete time. |
| Keywords: | Common Pool Resource,Differential Games,Experimental Economics,Continuous Time,Discrete Time |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03664156&r= |
| By: | Silvia London (Universidad Nacional del Sur/CONICET); Mara Leticia Rojas (Universidad Nacional del Sur/CONICET); Karen Natal Candidas (Universidad Nacional del Sur) |
| Abstract: | En el marco de la Agenda 2030 del PNUD y los Objetivos del Desarrollo Sostenible, las actividades intensivas en el uso de recursos naturales son de gran interés. Entre ellas se destaca el turismo como actividad impulsora del crecimiento. Sin embargo, dicha actividad también causa daños ambientales que podrían, incluso, minar la base de la propia industria turística. Así, este artículo presenta un modelo de crecimiento sencillo de generaciones solapadas y análisis discreto para economías basadas en turismo con uso intensivo en recursos naturales. Los resultados muestran que la posición final de la economía está determinada por el grado de utilización de los recursos en la actividad turística, la impaciencia de la población respecto de las decisiones de consumo intertemporal —preferencia intertemporal—, la presencia de polución y la existencia o ausencia de medidas de mitigación. Se concluye la presencia de un autorreforzamiento positivo entre los recursos económicos destinados al desarrollo de la actividad y el stock de recursos naturales, si las medidas de mitigación son las adecuadas. El aporte es hacia la formulación de política al reconocer los fundamentos de los mecanismos causales que conducen a un resultado de turismo sostenible. |
| Keywords: | turismo; crecimiento; recursos naturales; sostenibilidad; preferencia intertemporal; modelo de generaciones solapadas. |
| JEL: | L83 Z32 O41 O44 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:140&r= |
| By: | Amane Saito (Graduate School of Economics, Osaka University); Hisashi Tanizaki (Graduate School of Economics, Osaka University) |
| Abstract: | In this paper, we analyze the return and volatility of portfolios based on Sustainability Themed Japanese Equity Index, which focuses on social (S) and environment (E) using the Stochastic Volatility (SV) model. The daily data of stock price from January 5, 2015 to October 29, 2021 are utilized. As a result of the analysis, it was confirmed that the asymmetry effect, which captures the increase in volatility after a stock price decline, is significantly smaller for the portfolio that take gender diversity into account. On the other hand, no effect of considering gender diversity was found for the holiday effect, the turn of the month effect, and U.S. volatility spillover effect. In addition, for the portfolio that take into account the information disclosure on corporate greenhouse gas (GHG) emissions, which is the theme of E, the asymmetry effect was confirmed tobe significantly smaller in Material industry as well. |
| Keywords: | SV model, Sustainability themed Indices, Gender Diversity, Greenhouse Gas(GHG) emissions, Market Anomaly (asymmetry effect, holiday effect, turn of the month effect) |
| JEL: | C58 G17 M14 Q50 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:2201&r= |
| By: | Christian Hauenstein; Karlo Hainsch; Philipp Herpich; Christian von Hirschhausen; Franziska Holz; Claudia Kemfert; Mario Kendziorski; Pao-Yu Oei; Catharina Rieve |
| Abstract: | The European Union has increased pressure on Russia by enacting a coal embargo. Following a transition period, Russian coal imports will end in August 2022. Recent studies show that Germany will be able to substitute Russian supplies with imports from other countries by summer 2022. However, with the looming threat of a Russian gas supply stop, plans must be developed to ensure security of supply. In scenario calculations, DIW Berlin analyzed how the German electricity system can respond to a stop of Russian energy supplies (especially coal and natural gas) while still maintaining the accelerated coal phase-out and the 2022 nuclear phase-out plans. The calculations show that a secure electricity supply will be possible in 2023, even without Russian energy supplies. The shutdown of the final three nuclear power plants can and should take place as planned in December 2022. In the short term, coal-fired power plants from the grid reserves will have to be used and the standby mode of some power plants will have to be extended. In the medium term, the accelerated expansion of renewable energy infrastructure as envisaged by the German government in the set of measures known as the Easter Package is expected to lead to a decline in demand for natural gas and coal-fired power generation by 2030. Thus, an accelerated coal phase-out by 2030 as laid out in the coalition agreement is still possible. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwfoc:8en&r= |
| By: | Ahmed, Musa Hasen; Tesfaye, Wondimagegn Mesfin; Gassmann, Franziska |
| Abstract: | We investigate if and how farmers adjust their land allocation decisions in response to within-growing season weather variability using novel crop-specific data collected over seven consecutive years. By focusing on maize-producing smallholder farmers in Ethiopia, we show that farmers respond quickly to growing season weather variability by adjusting their land allocation decisions. In addition to quantifying a substantial adaptation margin that has not been documented before, our findings also reveal the presence of a weather variability-induced expansion of maize production into areas that are less suitable for maize cultivation. |
| Keywords: | Crop Production/Industries, Production Economics |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc22:321171&r= |
| By: | Arnaud Diemer (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Claudiu Eduard Nedelciu (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Manuel Morales (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, KTU - Kaunas University of Technology); Cécile Batisse (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Carmen Cantuarias-Villessuzanne (ESPI2R - Laboratoire ESPI2R Research in Real Estate [Paris] - ESPI - Ecole Supérieure des Professions Immobilières) |
| Abstract: | The impact that European and French legislation have on the circular economy implementation between market-driven incentives and state regulation emerges as the main challenge addressed in this chapter. Circular economy principles and the normative aspects of legislation constitute the best available frameworks to foresee how circular economy implementation will evolve in the building and construction sector in France. The Eiffage case study can be explained by the evolution of the normative arena composed by the current codes, environmental laws, roadmaps, and directives that frame the dynamic behavior of individual actors submitted to market pressures. A literature review of the current scientific and gray literature on circular economy in the building and construction sector was carried out in order to identify the required conditions to improve circularity in a normative way in France. Seven circular economy principles have been identified in the state of the art of Building and construction sector in France with emphasis on four of them: (1) Building lighter structures, (2) Waste reduction in the production process, (3) Intensive use of floor space, and (4) Extension of product life or recycling. Finally, we claim that the advantage of the normative approach implementation and analysis is to set the social agreement of compulsory foundation over which the market-driven initiatives and innovation could make the difference for the outstanding stakeholders of the economic sector. |
| Keywords: | circular economy,market-driven incentives,buildings,construction sector,resource efficiency,EU legislation |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03661983&r= |
| By: | Lyu, Chenyan (Department of Economics, Copenhagen Business School); Scholtens, Bert (Department of Finance, University of Groningen) |
| Abstract: | Emission trading is gaining momentum with its increasing market size and constantly improving information transmission mechanisms. With carbon assets becoming prominent as an alternative asset in investment portfolios, the ETS model has engaged a broad range of market participants, including not only emissions-intensive energy corporations but also individual and institutional investors. As arbitrage opportunities arise, price fluctuations are likely to occur, which typically have a mutual spillover effect. This paper examines how market fluctuations (e.g., volatilities) in these markets interact with each other, among carbon prices across four jurisdictions – European Union, New Zealand, California, and Hubei (China) ETS. The data used in this paper consists of weekly return and volatility, constructed by the daily prices from four markets, covering the period 30th April 2014, through 1st December 2021. We focus theoretically on the time-varying parameter (TVP)-VAR methodology, and empirically the connectedness approach. Our empirical results show average return (volatility) spillover is 6.03% (8.25%), which means that the dynamics of each of the carbon market are mainly explained by themselves and not due to spillovers from other markets, indicating that the global carbon prices are largely (albeit not completely) dependent. |
| Keywords: | Carbon markets integration; Volatility connectedness; TVP-VAR; Market risk |
| JEL: | C32 E44 Q43 R11 |
| Date: | 2022–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2022_007&r= |
| By: | Eichhorn, Theresa; Kantelhardt, Jochen; Schaller, Lena Luise |
| Abstract: | A major focus of the Europe’s “Green Deal” is the better delivery of public goods by agriculture. Improvements are expected by applying innovative agri-environmental contracts, e.g. based on results-based payments. For the implementation of such contract solutions, farmers’ willingness to participate is key to success. This empirical study determines factors influencing farmers’ intention to perform result-based contract solutions based on a Technology Acceptance Model (TAM). The direct and indirect relationships are tested by applying a Structural Equation Model (SEM) based on primary data of 235 Austrian farmers. Findings reveal that the intention to perform is significantly and directly driven by the attitude towards performing result-based contracts and by self-efficacy. Perceived usefulness and perceived ease of use are indirectly influencing the intention to perform via attitude. The subjective norm is influencing perceived usefulness directly and the intention to perform indirectly. Perceived risk is impacting perceived ease of use and therefore also indirectly impacting intention to perform. Our findings show, that especially for new voluntary AES, the socio-psychological constructs of farmers should be considered, which allows new levers in the design and successful introduction of these measures. |
| Keywords: | Agricultural and Food Policy, Agricultural Finance, Environmental Economics and Policy |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc22:321178&r= |
| By: | Sahil Gandhi; Matthew E. Kahn; Rajat Kochhar; Somik Lall; Vaidehi Tandel |
| Abstract: | Urban flooding poses danger to people and places. People can adapt to this risk by moving to safer areas or by investing in private self-protection. Places can offset some of the risk through urban planning and infrastructure investment. By constructing a global city data set that covers the years 2012 to 2018, we test several flood risk adaptation hypotheses. Population growth is lower in cities that suffer from more floods. Richer cities suffer fewer deaths from flood events. Over time, the death toll from floods is declining. Cities protected by dams experience faster population growth. Using lights at night to measure short run urban economic dynamics, we document that floods cause less damage to richer cities and cities with protective dams. Cities with more past experience with floods suffer less from flooding. |
| JEL: | Q5 R1 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30137&r= |
| By: | Bai, Yihang; Cao, Mengqiu; Wang, Ruoyu; Liu, Yuqi; Wang, Seunghyeon |
| Abstract: | Introduction: Active travel is currently gaining popularity worldwide as a sustainable form of travel. However, very few studies have examined how the built environment affects active travel behaviour on university campuses, particularly in China. It is a key feature of Chinese university campuses that they are generally gated communities, which are spatially organised in a very different way from campuses in other countries, and they often also provide for students’ daily needs, meaning that students tend to travel off-campus less frequently. Aims: This research aims to explore the link between street greenery and the active travel behaviour of students on closed university campuses in China. Methods: The study combined sensor data from Guangzhou Higher Education Mega Centre (HEMC), China, with individual cross-sectional survey data from university students and applied a multilevel logistic regression model to conduct the analysis. Street-view images were analysed using a deep learning approach, which represents an emerging method for assessing urban green space. Results: The results demonstrated that street greenery on campuses is positively associated with active travel among university students. Modes of travel also influenced active travel, with university students who owned bicycles tending to participate in active travel more; however, those who travelled by electric bikes were less likely to participate in active travel. Conclusions: This study suggests that policymakers and transport planners should focus more on greening urban areas and improving walking and cycling environments to achieve green transport goals through urban planning. |
| Keywords: | active travel; health; equity; behavioural change; street greenery; urban planning |
| JEL: | C1 |
| Date: | 2022–05–27 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115239&r= |
| By: | Maurice Doyon; Stéphane Bergeron; Jacinthe Cloutier |
| Abstract: | This research project is part of a multi-disciplinary project with the overall objective of providing municipal managers with data to demonstrate the various ecosystem services provided by stormwater retention ponds in the context of urban ecosystem conservation, with a particular focus on the protection of the drinking water resource. This report focuses on the social and economic aspects and has as its main objective to inform municipal administrations on citizens' preferences for retention ponds, using Quebec City as a test case. More specifically, the objectives are: 1) To identify the preferences of Quebec City citizens towards different types of retention pond development; 2) To estimate the Consent to Pay (CTP) for retention pond development. CTP is not only an economic measure, but also a quantification of the benefit perceived by citizens; 3) Based on citizens' perceptions, qualify desirable and undesirable features of retention pond developments; 4) Create a typology of citizens according to their preferences to better consider the diversity of preferences. Ce projet de recherche s’inscrit dans le cadre d’un projet pluridisciplinaire ayant comme objectif général de fournir aux gestionnaires municipaux des données permettant de démontrer les différents services écosystémiques apportés par les bassins de rétention d’eau pluviale dans un contexte de conservation des écosystèmes urbains, avec un accent particulier sur la protection de la ressource en eau potable. Ce rapport se concentre sur les aspects sociaux et économiques et a comme objectif principal d’informer les administrations municipales sur les préférences des citoyens en matière de bassins de rétention, en utilisant comme cas type la Ville de Québec. Plus spécifiquement, les objectifs sont : 1) Identifier les préférences des citoyens de la ville de Québec envers différents types d’aménagement des bassins de rétention; 2) Estimer le consentement à payer (CAP) pour l’aménagement des bassins de rétention. Le CAP n’est pas seulement une mesure économique, mais également une quantification du bénéfice perçu par les citoyens; 3) Selon la perception des citoyens, qualifier les caractéristiques désirables et indésirables des aménagements de bassin de rétention; 4) Créer une typologie des citoyens en fonction et de leurs préférences pour mieux envisager la diversité des préférences. |
| Keywords: | Retention pond,developments,citizen preferences,Consent to Pay (CTP), Bassins de rétention,aménagements,préférences des citoyens,Consentement à payer (CAP) |
| Date: | 2022–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2022s-17&r= |
| By: | François Charrier (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel, LRDE - Laboratoire de Recherches sur le Développement de l'Elevage - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Marc Barbier |
| Abstract: | Animal health crises are progressively leading to an attempt to build an integrated view of animal health management. Political and scientific movements, marked by epistemic watchwords such as One Health or EcoHealth, are completing a long-standing effort to integrate the diversity of epidemiological risk contexts, to refine its understanding and to develop actions to reduce population exposure. The need to extend conceptual frameworks to include social and ecological dimensions of risk has indeed been successfully addressed by many research communities from all disciplines. But Management research is surprisingly absent from this field, even though it holds keys to interpreting health situations and developing management systems. Indeed, literature on animal health crises often describes a complex managemental and organizational activity in the hands of public servants, but without proposing an interpretative framework of the complexity and diversity of the management problematics they deal with. By focusing on the figure of the manager, we show in this article that animal health situations consist of a nexus of problems that stretch beyond the borders of the relationship between the pathogen, humans and their environment, and the causal relationship promoted by risk analysis. From a dialectical construction between management situations and management settings, we argue that the "social context" of the pathogen, largely investigated by many research communities, differs from the "social context" of the manager, which is under-investigated. We propose the notion of "Socio-pathosystem" as a framework to address the process of emergence of these nexuses of problems and the organizing activity that they trigger. We advocate in favor of the development of knowledge infrastructures involving a diversity of stakeholders, which should allow to better connect research and democratic management objectives. |
| Abstract: | Les crises sanitaires conduisent progressivement à construire une vision intégrée de la gestion de la santé animale. Les mouvements politiques et scientifiques, marqués par des mots d'ordre épistémiques comme One Health ou EcoHealth , achèvent un travail entrepris de longue date, par de nombreuses communautés de recherche de toutes disciplines, pour intégrer la diversité des contextes du risque épidémiologique et en affiner sa compréhension et pour construire des actions visant la réduction de l'exposition des populations. Alors qu'elle recèle des clés d'interprétation des situations sanitaires, et des cadres pour construire des dispositifs de gestion, la recherche en gestion est curieusement absente de ce domaine. En posant la focale sur la gestion publique de la santé animale, nous montrons dans cet article que les situations sanitaires sont faites de nexus de problématiques qui dépassent le périmètre d'une compréhension de la relation entre le pathogène, l'homme et son milieu. À partir d'une construction dialectique entre situations et dispositifs de gestion, nous proposons alors la notion de « socio-pathosystème » pour rendre compte de l'émergence de ces problématiques et de l'activité organisatrice pour les prendre en charge. |
| Keywords: | socio-pathosystem,animal health,integrated management,infectious diseases,management situation,dispositive analysis,research-intervention,socio-pathosystème,santé animale,maladies infectieuses,gestion intégrée,analyse de dispositif,recherche-intervention |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03688950&r= |
| By: | Brusberg, Mark |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usao21:320993&r= |
| By: | Nguyen-Tien, Viet; Dai, Qiang; Harper, Gavin D.j.; Anderson, Paul A.; Elliott, Robert J.R. |
| Keywords: | lithium-ion-batteries; electric vehicles; circular economy; recycle; life cycle assessment; supply chain; material flow analysis; transitions; transition management |
| JEL: | R14 J01 |
| Date: | 2022–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115263&r= |
| By: | Anaïs Garin (IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel) |
| Abstract: | In the past years, the ecosystem concept has gained importance in the strategy and management fields. Originated by Moore in 1993, ecosystems have since then been analysed and critically reviewed by many scholars. The biological metaphor used to describe the variety of actors suggests that artificial ecosystems emerge by themselves, a point for which it has been criticised. Past research showed that ecosystems need to be orchestrated to develop and renew over time. Although research on ecosystems flourished, our understanding of ecosystem orchestration remains limited. Reviewing the literature on ecosystem orchestration, this paper summarises the current research on the structure and dynamics of orchestration. In particular, the article reviews a recent research stream that addresses dynamic capabilities in ecosystems, thus laying the ground for further research. |
| Keywords: | Orchestration,Ecosystems,Dynamic capabilities,Narrative literature review |
| Date: | 2022–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03667275&r= |
| By: | Gilbert E. Metcalf |
| Abstract: | More stringent fuel economy standards and increased market penetration of electric vehicles (EVs) present challenges to federal policy makers who historically have relied on motor vehicle fuel excise taxes to fund highway projects. This paper considers the distributional implications of a federal tax swap where a new vehicle miles travelled (VMT) tax is used to finance a reduction in the federal excise tax on gasoline. Whether the tax shift is progressive (relative to the pivot point) or not depends on the sign of the income elasticity of demand for fuel intensity. If it is negative (higher-income households demand more fuel efficient cars), then the tax shift is progressive around the pivot point. Conversely, if it is positive, then the tax shift is regressive around the pivot point. Where the pivot point occurs and how progressive a shift occurs is an empirical matter. Using data from the 2017 National Household Travel Survey (NHTS), I find that the income elasticity of fuel intensity is negative and that this revenue-neutral tax swap to be mildly progressive for all household incomes below $200,000. This is driven, in part, by the fact that higher income households are more likely to drive hybrid and electric vehicles and to own newer vehicles which, due to increasingly stringent fuel economy standards, tend to be more fuel efficient. How the progressivity of a tax swap changes as fuel economy standards are raised and EV market penetration increases depends on who purchases EVs and more efficient vehicles. Federal policy will likely play a role in influencing the future distribution of EV ownership. In addition, I find the tax swap benefits rural drivers and has no appreciable differential impacts on Black and Hispanic households. |
| JEL: | H22 H23 Q48 R48 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30129&r= |