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on Environmental Economics |
| By: | Zeev Krill; Robert Grundke; Marius Bickmann |
| Abstract: | Germany intends to reach climate neutrality in 2045, tripling the speed of emission reductions that was achieved between 1990 and 2019. Soaring energy prices and the need to replace Russian energy imports have amplified the urgency to act. Various policy adjustments are needed to ensure implementation and achieve the transition to net zero cost-effectively. Lengthy planning and approval procedures risk slowing the expansion of renewables, while fossil fuel subsidies and generous tax exemptions limit the effectiveness of environmental policies. Germany should continue to rely on carbon pricing as a keystone of its mitigation strategy and aim to harmonise prices across sectors and make them more predictable. Carbon prices will be more effective if complemented by well-designed sectoral regulations and subsidies, especially for boosting green R&D, expanding sustainable transport and electricity network infrastructure, and decarbonising the housing sector. Subsidies for mature technologies and specific industries should be gradually phased out. Using carbon tax revenue to compensate low-income households and improve the quality of active labour market policies would help to support growth and ensure that the transition does not weaken social cohesion. |
| Keywords: | Carbon Pricing, CGE climate modelling, Climate Policy, Energy, Environmental Taxation, Germany, Green Investment, Industrial Policy, Labour Market Analysis, Plant Closure, Social Consequences of Mitigation Policies, Transport |
| JEL: | H23 H54 J65 Q42 Q48 Q54 Q58 R48 C68 |
| Date: | 2023–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1768-en&r=env |
| By: | Victor Yakovenko (University of Maryland); Gregor Semieniuk (University of Massachusetts Amherst) |
| Abstract: | Ambitious scenarios of carbon emission redistribution for mitigating climate change in line with the Paris Agreement and reaching the sustainable development goal of eradicating poverty have been proposed recently. They imply a strong reduction in carbon footprint inequality by 2030 that effectively halves the Gini coefficient to about 0.25. This paper examines feasibility of these scenarios by analyzing the historical evolution of both weighted international inequality in CO2 emissions attributed territorially and global inequality in carbon footprints attributed to end consumers. For the latter, a new dataset is constructed that is more comprehensive than existing ones. In both cases, we find a decreasing trend in global inequality, partially attributed to the move of China from the lower to the middle part of the distribution, with footprints more unequal than territorial emissions. These results show that realization of the redistributive scenarios would require an unprecedented reduction in global inequality far below historical levels. Moreover, the territorial emissions data, available for more recent years up to 2017, show a saturation of the decreasing Gini coefficient at a level of 0.5. This observation confirms an earlier prediction based on maximal entropy reasoning that the Lorenz curve converges to the exponential distribution. This saturation further undermines feasibility of the redistributive scenarios, which are also hindered by structural tendencies that reinforce carbon footprint inequality under global capitalism. One way out of this conundrum is a fast decarbonization of the global energy supply in order to decrease global carbon emissions without relying crucially on carbon inequality reduction. |
| Keywords: | Carbon footprint, Sustainable development, Maximum entropy |
| JEL: | Q01 Q54 Q56 Q43 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2023-652&r=env |
| By: | John Bistline; Geoffrey Blanford; Maxwell Brown; Dallas Burtraw; Maya Domeshek; Jamil Farbes; Allen Fawcett; Anne Hamilton; Jesse Jenkins; Ryan Jones; Ben King; Hannah Kolus; John Larsen; Amanda Levin; Megan Mahajan; Cara Marcy; Erin Mayfield; James McFarland; Haewon McJeon; Robbie Orvis; Neha Patankar; Kevin Rennert; Christopher Roney; Nicholas Roy; Greg Schivley; Daniel Steinberg; Nadejda Victor; Shelley Wenzel; John Weyant; Ryan Wiser; Mei Yuan; Alicia Zhao |
| Abstract: | If goals set under the Paris Agreement are met, the world may hold warming well below 2 C; however, parties are not on track to deliver these commitments, increasing focus on policy implementation to close the gap between ambition and action. Recently, the US government passed its most prominent piece of climate legislation to date, the Inflation Reduction Act of 2022 (IRA), designed to invest in a wide range of programs that, among other provisions, incentivize clean energy and carbon management, encourage electrification and efficiency measures, reduce methane emissions, promote domestic supply chains, and address environmental justice concerns. IRA's scope and complexity make modeling important to understand impacts on emissions and energy systems. We leverage results from nine independent, state-of-the-art models to examine potential implications of key IRA provisions, showing economy wide emissions reductions between 43-48% below 2005 by 2035. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2307.01443&r=env |
| By: | Irmelin Slettemoen Helgesen (Department of Economics, Norwegian University of Science and Technology); Anne Borge Johannesen (Department of Economics, Norwegian University of Science and Technology) |
| Abstract: | The Arctic is warming three times faster than the global average. Rising temperatures could reduce the snow-covered season and increase plant productivity in the spring, fall and summer. While this may increase carrying capacity and growth of semi-domesticated reindeer, rising temperatures could also lead to an increase the frequency of ice-locked pastures, negatively affecting reindeer body mass, survival and reproductive success. We create a stage-structured bioeconomic model of reindeer herding that incorporates two counteracting effects of climate change on reindeer growth, reproduction, and survival. The model is calibrated using historical data on reindeer numbers and slaughter weights, in combination with weather data. We find that one more day with ice-locked pastures has a greater negative impact than the benefit of earlier spring. Then the model is used to simulate the economic impact of three climate change scenarios, and four areas in Norway and Sweden. All areas experience an improvement in herding profits in the Paris Agreement scenario. In the BAU scenario, the impact of climate change is negative for all areas. We also find that the potential loss in pasture related to certain emission mitigating policies may be more detrimental to reindeer husbandry than climate change itself. |
| Keywords: | reindeer husbandry, climate change, commons, livestock, food limitation |
| JEL: | Q24 Q54 |
| Date: | 2023–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:nst:samfok:19723&r=env |
| By: | Damien Dussaux; Alberto Agnelli; Nordine Es-Sadki |
| Abstract: | Several efforts have been made to track progress on environmental innovations using very different approaches. However, many lack coverage, granularity, timeliness and may involve high data collection costs, especially when conducted on a large scale. Traditional indicators also overlook commercialised innovation and breakthrough innovation. This issue is particularly relevant for environmental innovation, where scaling-up is considered key to address the climate, biodiversity and pollution crises. The paper reviews potential metrics to measure commercialised climate change-related innovation and to measure breakthrough environmental innovation. By comparing advantages and drawbacks of various options, the paper selects two families of metrics to measure commercialised climate change-related innovation: one based on patent assignments and the other one based on licensing agreements. For breakthrough environmental innovation, the paper concludes that a family of metrics based on venture capital data is currently the most promising option to pursue. The paper then develops the selected new metrics and provides trends in environmental innovation over time, across sectors and when possible across countries. The paper concludes that additional data sources should be explored to extend the application of the proposed new metrics in more countries and consider a more comprehensive set of supports to innovation. |
| Keywords: | assignment, breakthrough innovation, green innovation, innovation metrics, licensing, patent, transfer, venture capital |
| JEL: | O31 Q55 |
| Date: | 2023–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:221-en&r=env |
| By: | JANG, Youngook (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | This report highlights the significant impact of climate change on migration patterns and the need for Korea to prepare for the influx of climate migrants. While natural disasters have historically caused population displacement, the effects of climate change-induced slow-onset changes, such as rising sea levels and droughts, are increasingly evident. Environmental migration disrupts social, labor, and industrial structures in sending and receiving countries, particularly through labor migration, which affects wages, employment rates, production costs, commodity prices, and business cycles. The study by Jang et al. (2022) investigates regional patterns of environmental migration and the potential labor market implications. Although Korea is currently unaffected, it is projected to experience an increase in climate migrants in the near future, as Southeast Asian and South Asian countries facing climate and environmental challenges contribute significantly to Korea's migrant population. The report emphasizes the importance of understanding the socio-economic characteristics of potential migrants to develop appropriate policies to mitigate the negative impacts of this anticipated influx. By proactively addressing these challenges, Korea can better prepare for the future dynamics of climate-induced migration and its impact on society, labor markets, and industrial sectors. |
| Keywords: | migration; climate change; environmental migration; labor market |
| Date: | 2023–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2023_025&r=env |
| By: | O'Brien, G.; Dickens, Chris; Stassen, R.; Erasmus, H.; Herselman, S.; van der Waal, B.; Wepener, V.; Pearson, H.; LeRoux, H.; Villholth, Karen; Ebrahim, Girma; Magombeyi, Manuel; Riddell, E.; Petersen, R. |
| Keywords: | Agribusiness, Agricultural Finance, Environmental Economics and Policy |
| Date: | 2022–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iwmirp:337113&r=env |
| By: | Mengyu Wang; Jeffrey Wurgler; Hong Zhang |
| Abstract: | Government subsidies are often used to stimulate environment-friendly investment. We find that Chinese firms reduce green investment as the uncertainty of subsidies rises. This effect is identified from weather-driven fluctuations in air pollution that lead to fluctuations in subsidy allocations: Firms in cities where weather-driven subsidy uncertainty is high engage in less green R&D investment, patent applications, and research staff. Industries that are heavy emitters and those focused on environmental technologies are more affected. The results suggest that policy uncertainty may originate not only from political and macroeconomic shocks but from behavioral mechanisms that link policy to salient recent conditions. |
| JEL: | D8 O13 O3 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31401&r=env |
| By: | Karen Clay |
| Abstract: | Both energy and the environment are inputs into production, influencing the economy and the overall welfare of the population. While the economy itself has been a central focus of economic history from its inception, energy and the environment have received more limited attention. On the energy side, the relative lack of attention reflects economic historians' focus on labor, capital, and technology. Two areas that have received attention are the effects of energy on the spatial location of economic activity and the importance of coal for the Industrial Revolution. On the environmental side, the relative lack of attention likely reflects the focus on the positive aspects of industrialization and the difficulty of finding data related to air, water, and land pollution. One environmental area that has received attention is water pollution from human waste, which had large mortality impacts, particularly in cities. This essay reviews long run trends in energy use and water and air pollution and then turns to the energy and environmental literatures in economic history. The conclusion offers some thoughts regarding opportunities for further research in energy and the environment. |
| JEL: | N50 N70 Q32 Q53 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31408&r=env |
| By: | Khalid Ahmed (Crawford School of Public Policy, Australian National University); David I. Stern (Crawford School of Public Policy, Australian National University) |
| Abstract: | Is China on a path to peak its greenhouse gas emissions in the near future? We compare trends in carbon emissions and energy production in the first five months of 2019 to the first five months of 2023. Emissions grew substantially, especially from the energy sector. Though renewable energy production has increased substantially, coal production is growing more strongly than before the pandemic. The changing geopolitical environment may further impede the peaking of emissions in China. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:2302&r=env |
| By: | O'Brien, G.; Dickens, Chris; Diedericks, G.; Kaiser, A.; Barendze, C.; Pearson, H.; LeRoux, H.; MacKenzie, J.; Gerber, S.; Petersen, R.; Dlamini, V. |
| Keywords: | Agribusiness, Environmental Economics and Policy, International Development |
| Date: | 2022–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iwmirp:337114&r=env |
| By: | Stamm, Andreas; Altenburg, Tilman; Strohmaier, Rita; Oyan, Ece; Thoms, Katharina |
| Abstract: | Green hydrogen - produced with renewable energy - is indispensable for the decarbonisation of economies, especially concerning 'hard-to-abate' activities such as the production of steel, cement and fertilisers as well as maritime transport and aviation. The demand for green hydrogen is therefore booming. Currently, green hydrogen is far more expensive than fossil fuel-based alternatives, but major initiatives are underway to develop a global green hydrogen market and bring costs down. Green hydrogen is expected to become cost-competitive in the mid-2030s. Given their endowment with solar and wind energy, many countries in the Global South are well-positioned to produce low-cost green hydrogen and are therefore attracting investments. Whether and to what extent these investments will create value and employment for - and improve environmental conditions in - the host economies depends on policies. This discussion paper analyses the potential industrial development spillovers of green hydrogen production, distinguishing seven clusters of upstream and downstream industries that might receive a stimulus from green hydrogen. Yet, it also underlines that there is no automatism. Unless accompanied by industrial and innovation policies, and unless there are explicit provisions for using revenues for a Just Transition, hydrogen investments may lead to the formation of socially exclusive enclaves. The paper consists of two parts. Part A provides basic information on the emerging green hydrogen market and its technological ramifications, the opportunities for countries with abundant resources for renewable energy, how national policies can maximise the effects in terms of sustainable national development and how this can be supported by international cooperation. Part B delves into the specific case of South Africa, which is one of the countries that has an advanced hydrogen roadmap and hosts several German and international development projects. The country case shows how a national hydrogen strategy can be tailored to specific country conditions and how international cooperation can support its design and implementation. |
| Keywords: | Green hydrogen, energy transition, industrial development, industrial policy, South Africa, Just Transition, technological learning, international cooperation |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:diedps:92023&r=env |
| By: | Kim, Eunmi (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Sunghee (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 전 세계적으로 다수의 국가와 기업이 탄소중립을 추구함에 따라 다량의 온실가스를 배출하는 산업부문의 감축 노력이 강화되고 있다. 본 연구는 주요국의 정부뿐만 아니라 민간의 온실가스 감축 전략을 비교분석하고, 설문조사를 토대로 우리나라 중소기업의 정책 수요를 파악하여 시사점을 도출하였다. 특히 산업부문의 탈탄소화 과정에서 중소기업의 역할이 중요함에도 이를 다각도로 분석한 연구가 부족하다는 점에서 차별성을 확보하고 있다. The international community has stepped up efforts to achieve carbon neutrality or net zero emissions and has begun to expand the scope of greenhouse gas management to all companies in the supply chain. In particular, the decarbonization of industries that emit large amounts of greenhouse gases is an important task for countries not only to effectively respond to climate change, but also to improve their energy security and international competitiveness. Although decarbonization can be achieved by all companies regardless of their sizes, small and medium-sized enterprises (SMEs) are struggling with a lack of resources and capabilities. Therefore, the purpose of this study is to analyze the characteristics of national and multilateral carbon-neutral strategies, identify policy demands of SMEs based on survey results, and derive implications for the decarbonization of the industrial sector and, in particular, SMEs in Korea. Chapter 2 mainly analyzes policies to reduce greenhouse gases in the industrial sector and cases of multilateral cooperation between both major governments and global companies. Sweden, Germany, the United States, the UK and Japan are increasing their financial support for decarbonization efforts in their industrial sectors, also rearranging relevant policies and institutions. Sweden is working closely with the EU and its local governments to support carbon reduction projects, and also subsidizes investments with greenhouse gas reduction benefits but not expected to generate a return on investment without subsidies. Germany is inducing technological innovation and international cooperation among SMEs. The United States is expanding its investment in clean energy and providing research and development funding to SMEs and startups through federal agency-level programs such as SBIR/STTR programs. The UK is promoting decarbonization particularly in high-emitting industrial clusters, and is stimulating private investment through public funding for technology innovation. Japan is expanding its financial support in this area, for instance through tax benefits for companies pursuing green transformation (GX), and helping SMEs and startups enter or expand their business in developing countries through funds including Official Development Assistance (ODA).(the rest omitted) |
| Keywords: | Environmental policy; industrial policy; carbon neutrality; decarbonization; climate change; sustainability; SMEs |
| Date: | 2023–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepre:2022_016&r=env |
| By: | Wu, Kelly Yuexuan |
| Keywords: | Environmental Economics and Policy, Resource/Energy Economics and Policy, International Development |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335930&r=env |
| By: | Fanning, Andrew L.; Hickel, Jason |
| Abstract: | Research on carbon inequalities shows that some countries are overshooting their fair share of the remaining carbon budget and hold disproportionate responsibility for climate breakdown. Scholars argue that overshooting countries owe compensation or reparations to undershooting countries for atmospheric appropriation and climate-related damages. Here we develop a procedure to quantify the level of compensation owed in a ‘net zero’ scenario where all countries decarbonize by 2050, using carbon prices from IPCC scenarios that limit global warming to 1.5 °C and tracking cumulative emissions from 1960 across 168 countries. We find that even in this ambitious scenario, the global North would overshoot its collective equality-based share of the 1.5 °C carbon budget by a factor of three, appropriating half of the global South’s share in the process. We calculate that compensation of US$192 trillion would be owed to the undershooting countries of the global South for the appropriation of their atmospheric fair shares by 2050, with an average disbursement to those countries of US$940 per capita per year. We also examine countries’ overshoot of equality-based shares of 350 ppm and 2 °C carbon budgets and quantify the level of compensation owed using earlier and later starting years (1850 and 1992) for comparison. |
| Keywords: | REAL—ERC-2022-SYG reference number 101071647 and the María de Maeztu Unit of Excellence (CEX2019–374 000940-M) grant from the Spanish Ministry of Science and Innovation.; María de Maeztu Unit of Excellence (CEX2019–374 000940-M) grant |
| JEL: | J50 |
| Date: | 2023–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:119717&r=env |
| By: | Rachel Glennerster; Seema Jayachandran |
| Abstract: | Reductions in greenhouse gas emissions are a global public good, which makes it efficient to act globally when addressing this challenge. We lay out several reasons that high-income countries seeking to mitigate climate change might have greater impact if they invest their resources in opportunities in low- and middle-income countries. Specifically, some of the easiest and cheapest options have already been tapped in high-income countries, land and labor costs are lower in low- and middle-income countries, it is cheaper to build green than to retrofit green, and global targeting matters in integrated economies. We also discuss economic counterarguments such as the challenge of monitoring emissions levels in low- and middle-income countries, ethical considerations, the importance of not double-counting mitigation funding as development aid, and policy steps that might help to realize this opportunity. |
| JEL: | F18 O13 Q54 Q56 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31421&r=env |
| By: | Mohamed Tahar Benkhodja (ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers); Xiaofei Ma (ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers); Tovonony Razafindrabe (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We establish a two-sector model to simulate the potential effects of green fiscal poli- cies and unconventional green monetary policy on the economy during a recovery or in case of a stimulus policy. We find that instruments such as a carbon tax, an implicit tax on brown loans, and a subsidy for the purchase of green goods are all beneficial to the green sector, in contrast to green quantitative easing. A carbon tax imposed directly on firms in the brown sector is the most effective tool to reduce pollution. More importantly, the marginal effects of green instruments on the economy depend on consumer preferences. Namely, the marginal effects are the most prominent when consumers start to purchase more green goods as an increasing part of their consumption basket. Furthermore, the effects of those green policies are more effective when the elasticity of substitution between green and brown goods increases. This finding suggests that raising consumers' awareness and ability to consume green goods reinforce the effectiveness of public policies designed for low-carbon transition of the economy. |
| Keywords: | Consumers’ preferences, E-DSGE, Economic recovery, Elasticity of substitution, Environmental policies, Stimulus policy |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04126564&r=env |
| By: | Heise, Arne |
| Abstract: | It can hardly be denied that perhaps the most serious challenge to mankind has not yet been addressed properly by post-Keynesianism: the over-stretching of our planetary boundaries. Most of the resources which we need to sustain our lives are non-renewable and, therefore, limited. And most of our production processes produce some kind of joint product (externality) like air, ground or water pollution which hold no value to the producer and instead harm the environment upon disposal. Consequently, the existence of mankind on this planet may be threatened when indispensable resources such as energy are running out and the environmental damage changes our living conditions in a way that mankind cannot survive. |
| Keywords: | Ecological crisis, monetary production economy, zero growth, stagnation, growth imperative |
| JEL: | B59 E12 P18 Q50 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cessdp:102&r=env |
| By: | O'Brien, G.; Dickens, Chris; Wade, M.; Stassen, R.; Diedericks, G.; MacKenzie, J.; Kaiser, A.; van der Waal, B.; Wepener, V.; Villholth, Karen; Ebrahim, Girma; Dlamini, V.; Magombeyi, Manuel |
| Keywords: | Agribusiness, Environmental Economics and Policy, Risk and Uncertainty |
| Date: | 2022–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iwmirp:337115&r=env |
| By: | Xiao, Keliang |
| Keywords: | Environmental Economics and Policy, Labor and Human Capital, Community/Rural/Urban Development |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335463&r=env |
| By: | Branca, Giacomo; Chileshe, Paxina |
| Abstract: | The achievement of the goal of zero hunger by 2030 can be facilitated through green growth investments in the agriculture, forestry and land use (AFOLU) sector. Significant levels of finance are needed to support countries to implement such strategies and fulfil the commitments made in their Nationally Determined Contributions (NDCs), and private finance remains a key source. This report is a useful guide to shape investments by IFAD, and other international donors, in climate change mitigation actions in the East and Southern Africa (ESA) region. We quantify the ESA countries’ mitigation commitments with a focus on the AFOLU sector and introduce cost-effectiveness criteria to evaluate such capacity, also in view of attracting private financing. Our results show that most emissions in the region come from the energy sector, followed by AFOLU. Full implementation of conditional and unconditional mitigation targets set forth in the NDCs would limit the increase in regional net emissions to about 20 per cent above the baseline. We argue that mitigation investments can be prioritized to enhance the efficiency of available financing (economy of scope), maximize the mitigation results (economy of scale) and create synergies with economic development needs. However, trade-offs exist from the perspective of social equity and economic development goals. In its 12th replenishment cycle, IFAD has increased its focus on mitigation. In line with this, we find that investment in AFOLU is a profitable way to invest in climate change mitigation, being more competitive than energy and other sectors in attracting mitigation finance. Investing in mitigation through AFOLU is certainly more feasible given the increasing prices recorded in the carbon market. Revenues from this market may provide the necessary resources to fill the funding gap and drive a competitive restructure of the AFOLU sector to help achieve the Sustainable Development Goals. Prioritizing low-income countries would minimize the trade-offs and enhance the synergies between mitigation and economic development, therefore supporting socio-economic growth. |
| Keywords: | Agricultural Finance, Community/Rural/Urban Development, Food Security and Poverty |
| Date: | 2023–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:unadrs:337206&r=env |
| By: | O'Brien, G.; Dickens, Chris; Wade, M.; Stassen, R.; Wepener, V.; Diedericks, G.; MacKenzie, J.; Kaiser, A.; van der Waal, B.; Villholth, Karen; Ebrahim, Girma; Dlamini, V.; Magombeyi, Manuel |
| Keywords: | Agribusiness, Environmental Economics and Policy, Risk and Uncertainty |
| Date: | 2022–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iwmirp:337116&r=env |
| By: | Hyeyoon Jung; João A. C. Santos; Lee Seltzer |
| Abstract: | Much of the work on climate risk has focused on the physical effects of climate change, with less attention devoted to “transition risks” related to negative economic effects of enacting climate-related policies and phasing out high-emitting technologies. Further, most of the work in this area has measured transition risks using backward-looking metrics, such as carbon emissions, which does not allow us to compare how different policy options will affect the economy. In a recent Staff Report, we capitalize on a new measure to study the extent to which banks’ loan portfolios are exposed to specific climate transition policies. The results show that while banks’ exposures are meaningful, they are manageable. |
| Keywords: | risk exposures; climate risk; banks; Network for Greening the Financial System (NGFS) scenarios |
| JEL: | G2 |
| Date: | 2023–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:96458&r=env |
| By: | Gimenez-Nadal, José Ignacio (University of Zaragoza); Molina, José Alberto (University of Zaragoza); Velilla, Jorge (University of Zaragoza) |
| Abstract: | The private vehicle is, for most developed countries, the prevalent commuting mode of workers, and one of the main source of CO2 emissions. The choice of the mode of transport for commuting trips clearly depends on individual preferences, and it may be that pro-environmental attitudes and values are related to environmental awareness and minimization of harm to the environment. This paper explores how pro-environmental attitudes and values relate to commuting behaviors, using data from the American Time Use Survey for the period 2003-2019. We focus on the time spent commuting, and on commuting modes. The results show that, net of observable factors, regions in which social attitudes are more pro-environmental are related to longer commuting times, but also to a higher percentage of active commuters and public transit commuters. These results suggest that policies aimed at shifting pro-environmental social values may help in reducing the use of private vehicles and encourage green means of transport, in order to reduce the environmental costs of commuting. |
| Keywords: | pro-environmental attitudes, commuting time, transport mode, American Time Use Survey, American Values Survey, general social survey |
| JEL: | A13 Q52 R41 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16279&r=env |
| By: | Le Gloux, Fanny; Ropars-Collet, Carole; Issanchou, Alice; Dupraz, Pierre |
| Abstract: | Designing incentives for agri-environmental public good provision with threshold effects calls for payment mechanisms favouring critical mass participation and continuity of commitments at the landscape scale. Studies show farmers are reluctant to collective requirements but favourable to a bonus rewarding collective action. We conducted a choice experiment to test the acceptability of a bonus in a hypothetical scheme for improving rivers’ water quality in France. We introduce a sponsorship bonus each time the farmer convinces a peer into entering the scheme that can be combined with a collective result bonus per hectare if the river reaches a higher step of the water quality scale. We consider the involvement of local financers could increase the willingness to pay beyond opportunity costs and income foregone, and propose higher levels of payment than agri-environmental schemes. Results suggests a sponsorship bonus on its own is cost-effective, and that preferences for the bonus levels are heterogeneous.. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy |
| Date: | 2023–07–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:inrasl:337160&r=env |
| By: | Sari, Ajeng Rossantika; Sulistiyana, Fitri; Pandin, Maria Yovita R |
| Abstract: | This research has the purpose of analyzing the application of green accounting which has the ability as environmental costs and environmental performance with the level of profit. The research object studied at this time is PT Unilever Indonesia Tbk which uses a descriptive qualitative method where the data collection source is the company's annual report distributed by the Indonesia Stock Exchange (IDX). The environmental cost variable has no influence on the level of profit, the environmental performance variable has no influence on the level of profit. This study aims to improve Green Accounting in the application of company profitability. |
| Date: | 2023–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:dbhj5&r=env |
| By: | Donatella Gatti (University Sorbonne Paris Nord, CEPN UMR-CNRS 7234); Julien Vauday (University Sorbonne Paris Nord, CEPN UMR-CNRS 7234) |
| Abstract: | While environmental values are spreading among societies, they hardly lead to effective political actions. This may be due to an overestimation of the sharing of those values among people, or to a lack of political power of environmentalists vis-Ã -vis materialist citizens. We propose a theoretical model to investigate these two channels, based on a setup a la Grossman and Helpman (1994), in which lobby is a strategy available to social groups, in order to influence the government on environmental taxes. Because societies have being historically marked by materialist habits, citizens sharing those habits face lower costs when getting organized. By considering endogenous lobby formation a la Mitra (1999), we show that, in order for environmental and materialist lobbies to coexist, the society must be mixed enough. Based on a dynamic framework a la Besley and Persson (2023), we investigate how social values change over time. Whenever lobbying by materialists prevails, a unique social equilibrium exists, featuring a stable hegemony by materialist values. If environmentalists get organized too, a second social equilibrium emerges, that is locally stable and more favorable to them. However, the threshold might be very high, above which the cultural transition effectively takes off. By calibrating the model, we study counter-acting forces allowing to improve the odds of the environmental transition, such as cultural mutations, social-signaling, and lowering organizational costs. Finally, we provide policy implications. |
| Keywords: | Collective lobby, Environmentalism, Carbon tax, Environmental policy, Social change |
| JEL: | A13 D71 D72 H23 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2023.03&r=env |
| By: | Farid Makhlouf (ESC PAU - Ecole Supérieure de Commerce, Pau Business School); Refk Selmi (ESC PAU - Ecole Supérieure de Commerce, Pau Business School); Kamal Kasmaoui (ESC PAU - Ecole Supérieure de Commerce, Pau Business School) |
| Abstract: | Climate change and extreme weather events have led to a surge in natural hazards in Pakistan that have escalated into humanitarian disasters. Prior studies have largely documented the significant role of remittances in dealing with unforeseen natural disasters. This paper investigates the reaction of Pakistani migrants to natural disasters via remittances from 1972 to 2023. Using a flexible event-study methodology suited to examining the changes in remittances beyond expectation during a specific period of time, the paper compares the responses of remittances in different host countries namely Gulf Cooperation Council (GCC), Europe and North America Countries. Our findings reveal that the response is significant two (one) months after the events for GCC (Europe and North America), and tends to dissipate five months from the disaster occurrence (except for GCC). The intensity and the persistence of remittances'responsiveness (abnormal returns and volatility) depends on the nature of disasters, host countries'features and the economic conditions of migrants limiting their ability to send additional financial resources at home.Overall, migrant remittances may act as immediate and direct aid to households harmfully affected by disasters, substituting for the delayed arrival of official aid. |
| Keywords: | Remittances, Natural Disaster, Pakistan, Event study methodology, Abnormal returns, Volatility |
| Date: | 2023–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04137400&r=env |
| By: | Joseph S. Shapiro; Reed Walker |
| Abstract: | This paper describes a framework to estimate the marginal cost of air pollution regulation, then applies it to assess whether a large set of existing U.S. air pollution regulations have marginal costs exceeding their marginal benefits. The approach utilizes an important yet under-explored provision of the Clean Air Act requiring new or expanding plants to pay incumbents in the same or neighboring counties to reduce their pollution emissions. These “offset” regulations create several hundred decentralized, local markets for pollution that differ by pollutant and location. We show that these markets cover much US economic activity, experience search frictions, have rising prices over time, and reflect local regulatory stringency. We provide empirical and theoretical evidence consistent with the idea that offset transaction prices are close to the marginal cost of pollution abatement, and we compare offset prices to estimates of the marginal benefit of abatement from leading air quality models. We find that for most regions and pollutants, the marginal benefits of pollution abatement exceed mean offset prices more than ten-fold. In at least one market, however, estimated marginal benefits are below offset prices. |
| JEL: | H23 Q52 Q53 R11 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:23-27&r=env |
| By: | Malerba, Daniele |
| Abstract: | Socio-ecological transitions need to address the pressing challenges of our time, namely climate change mitigation and social development - including poverty and inequality reduction - in a complementary manner. The importance of achieving resilient and sustainable societies has been made more evident by recent shocks such as the Covid-19 pandemic and the war in Ukraine. As a consequence, national and international development policies need to foster links between social and environmental goals and policies. One way to achieve such synergies is through environmental fiscal reforms, defined as the combination of carbon-pricing mechanisms and consequent revenue spending for environmental and socio-economic goals. Even though carbon pricing is just one of the instruments needed to achieve climate goals, it provides the complementary benefit of expanding revenues while incentivising a reduction in emissions though market signals. This paper discusses environmental fiscal reforms from the perspective of low- and middle-income countries and development cooperation, with a focus on how to improve the social outcomes of such reforms. While revenues can be recycled for different purposes - including compensating industries with high adaptation costs, further investments in environmental projects and research, and use for the general budget - the paper focusses on social spending. The revenue can be used to decrease poverty and inequality levels and to compensate the poorest for increases in prices by utilising social protection mechanisms. This is particularly important to garner broad societal support and to make environmental fiscal reforms and carbon pricing more socially acceptable and implementable at sufficient levels in more countries. The paper first presents the key features of different carbon-pricing policies and the revenues they can generate, especially for low- and middle-income countries that have limited fiscal space. It then shows how the revenue can be used to fund social protection mechanisms that can compensate the poorest and address distributional concerns. It underlines the gaps and limitations of current social protection programmes, especially in terms of low coverage of vulnerable populations. This also constrained the response to the war in Ukraine, as lower-income countries had to use price stabilisation mechanisms - which ultimately generated negative fiscal and environmental effects - to avoid inflicting greater burdens on the poor instead of providing targeted programmes. The paper also offers some design principles to best address distributional concerns, including sequencing and sectoral coverage. It then discusses the role that development cooperation can have in implementing environmental fiscal reforms in low- and middle-income countries. Overall, the paper suggests that environmental fiscal reforms can be used to achieve resilient societies and accelerate the fight against climate change, with the goal of building a more inclusive and sustainable future. Such reforms should become a priority of German development cooperation and a key lever for its strategic goals, instead of occupying a peripheral role, as it currently does. Most importantly, the analysis strongly underlines the case for environmental fiscal reforms rather than the current use of subsidies and price controls; this is true when considering both climate goals (as keeping prices low does not incentivise shifts in production and consumption) as well as social goals (e.g. cash transfers result in significantly greater levels of poverty and inequality reduction when compared to untargeted subsidies). Therefore, social protection investments are urgently needed, also in lower-income countries. The current energy crisis due to the war in Ukraine and the Covid-19 pandemic has made this clearer. |
| Keywords: | climate change, social security and inclusion |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:diedps:102023&r=env |
| By: | Dickens, Chris; O'Brien, G.; Stassen, R.; van der Waal, B.; MacKenzie, J.; Eriyagama, Nishadi; Villholth, Karen; Ebrahim, Girma; Magombeyi, Manuel; Wepener, V.; Gerber, S.; Kaiser, A.; Diedericks, G. |
| Keywords: | Consumer/Household Economics, Environmental Economics and Policy, Productivity Analysis |
| Date: | 2021–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iwmirp:337112&r=env |
| By: | Sylvain Leduc; Daniel J. Wilson |
| Abstract: | This paper examines how the spatial distribution of people and jobs in the United States has been and will be impacted by climate change. Using novel county-level weather data from 1951 to 2020, we estimate the longer-run effects of weather on local population, employment, wages, and house prices using a panel distributed lag model. The historical results point to long-lasting negative effects of extreme temperatures on each of these outcomes. We highlight that a long lag structure is necessary to appropriately capture the longer-run effects of climate change, as short-run effects are often small and imprecisely estimated. Using county-level weather projections based on alternative greenhouse gas emissions scenarios, we use the estimated models to project the spatial distribution of these local economic outcomes out to 2050. The results point to substantial reallocations of people and jobs across the country over the next three decades, with mobility increasing by between 33 and 100 percent depending on the scenario. Population and employment are projected to shift away from the Sunbelt and toward the North and Mountain West. We document that this would, in fact, be a continuation of a historical pattern: Over the past four decades the relationship between population growth and hot climates across the United States has turned from strongly positive to slightly negative. We present a spatial equilibrium model to interpret the results, highlighting the impacts of climate change on amenities and productivity, and find significant roles for both channels in accounting for our empirical findings. |
| Keywords: | climate change; economy; panel data |
| Date: | 2023–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:96489&r=env |
| By: | Carla Morvan (Université Lyon 2, CNRS, Université Jean Monnet Saint-Étienne, GATE Lyon Saint-Étienne UMR 5824, F-69130, Ecully, FRANCE); Sonia Paty (Université Lyon 2, CNRS, Université Jean Monnet Saint-Étienne, GATE Lyon Saint-Étienne UMR 5824, F-69130, Ecully, FRANCE) |
| Abstract: | Natural disasters and related prevention policies can affect voter decisions. In this study, we analyze how the occurrence of natural disasters changes voters’ behavior at municipal elections and how prevention policies can mitigate the impact of such catastrophic events on budget accounts and might potentially be rewarded by citizens in upcoming elections. We exploit original data on French municipalities where incumbents sought reelection between 2008 and 2020. To estimate the probability of re-election at the municipal level in the event of a natural disaster we apply a Heckman model based strategy to avoid selection bias. We find that the occurrence of natural disasters significantly decreases the chances of reelection of incumbent mayors. However, although we show that natural hazard prevention plans significantly mitigate the impact of catastrophic events on budget accounts, citizens do not reward such prevention policies in upcoming elections. We confirm the hypothesis of myopia: voters reward incumbents for delivering investment spending or decreasing debt but not for investing in spending on disaster preparedness. |
| Keywords: | Elections, natural disasters, prevention policies, natural experiment |
| JEL: | D72 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:2310&r=env |
| By: | Karwowski, Nicole |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Agribusiness |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335462&r=env |
| By: | Lisette Ibanez (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Sébastien Roussel (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier) |
| Abstract: | We analyze whether exposure to a nature documentary increases pro-environmental behavior (PEB). We test this causal link in an experiment where subjects viewed a video featuring either an urban (control treatment) or a nature setting (nature treatment). We consider two types of behavior: a monetary donation to an environmental non-governmental organization (ENGO) that we call an eco-donation, and subsequently, a non-monetary decision (i.e., recycle or not recycle headphone protectors) that we call an eco-action. We find that virtual exposure to nature boosts both eco-donation and eco-action. Interestingly, the increase in PEB only occurs for individuals who express low environmental values. We did not find any negative or positive spillover effects on the eco-action. We finally provide robustness checks and discuss policy implications. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03847453&r=env |
| By: | Clare A. Balboni; Aaron Berman; Robin Burgess; Benjamin A. Olken |
| Abstract: | Two factors have elevated recent academic and policy interest in tropical deforestation: first, the realization that it is a major contributor to climate change; and second, a revolution in satellite-based measurement that has revealed that it is proceeding at a rapid rate. We begin by reviewing the methodological advances that have enabled measurement of forest loss at a fine spatial resolution across the globe. We then develop a simple benchmark model of deforestation based on classic models of natural resource extraction. Extending this approach to incorporate features that characterize deforestation in developing countries---pressure for land use change, significant local and global externalities, weak property rights, and political economy constraints---provides us with a framework for reviewing the fast-growing empirical literature on the economics of deforestation in the tropics. This combination of theory and empirics provides insights not only into the economic drivers and impacts of tropical deforestation but also into policies that may affect its progression. We conclude by identifying areas where more work is needed in this important body of research. |
| JEL: | O13 Q23 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31410&r=env |
| By: | Emilio Fernández Corugedo; Andres Gonzalez; Mr. Alejandro D Guerson |
| Abstract: | This paper presents a Markov switching dynamic stochastic general equilibrium model designed to evaluate the macroeconomic return of adaptation investment to natural disasters (NDs) and the impact of climate change. While the model follows the existing literature in assuming that NDs destroy a share of the public and private capital stocks and a government that can invest in adaptation at an additional cost, it adds several features that are key to the analysis, both in the near (transition) and long (steady state) terms. Those include incomplete markets, financial frictions with collateral constraints, foreign remittances, full menu of tax and government spending instruments, and endogenous climate risk premium. The model is calibrated to the case of Dominica. It finds that NDs have large and persistent negative effects on output and public finances. It also shows that adaptation investment has large returns in terms of private investment, employment, output and tax revenue in the long term, especially under climate change. |
| Keywords: | natural disasters; climate change; DSGE; resilient capital; financial frictions; Dominica; climate adaptation policies |
| Date: | 2023–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/138&r=env |
| By: | Patricia Detry (Cerema - Centre d'Etudes et d'Expertise sur les Risques, l'Environnement, la Mobilité et l'Aménagement); Julien Gauthey (OFB - Office français de la biodiversité); Pascal da Costa (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay); Samuel Jouon (Lannion-Trégor Communauté); Anne Vivier (OFB - Office français de la biodiversité) |
| Abstract: | The preservation of ecosystems in very good condition or with little impact from human activities is a key issue for the protection of biodiversity and the services they provide to society. The aim of our study was to analyse the dynamics of interdependencies between ecosystems in very good condition in rivers labelled "wild river sites" and the various stakeholders who already or potentially benefit from the ecosystem services associated with these rivers. The objective was to highlight the strength of the dependencies and attachments, to raise awareness among these stakeholders, particularly decision-makers, of the significant socio-economic wealth of these ecosystems and, ultimately, to provide useful data to the stakeholders in the area to help them make management and development choices. Two catchment areas, the Léguer (department 22) and the Estéron (06) were analysed with the help of local stakeholders. The study was carried out in three main stages: (i) The collection of initial data for the socio-ecological study of the Estéron and the Léguer and their territory of influence; (ii) The identification of interdependencies, synergies and conflicts between ecosystem services, which highlighted the interest of using the concept of a bundle of services; And (iii) the biophysical and economic evaluation of the ecosystem services selected by the local steering committees, with a focus on the qualification of the inhabitants' attachment to the Léguer Valley, via a willingness-to-pay study based on development scenarios for the territory. Some ecosystem services selected by the local stakeholders of the two areas remain recurrent, such as the availability of lightly treated drinking water, wood energy and carbon sequestration provided by the forest (as well as the "Breton bocage": A particularity of the Léguer), outdoor activities and the notion of attachment of the inhabitants to their valley (Léguer) or the feeling of tranquility of the place (Estéron). |
| Abstract: | La préservation des écosystèmes en très bon état ou peu altérés par les activités humaines représente un enjeu capital pour la sauvegarde de la biodiversité et des services qu'ils rendent à la société. Notre étude avait pour objectif d'analyser la dynamique des relations d'interdépendances entre les écosystèmes en très bon état des rivières labellisées "sites rivières sauvages" et les différents acteurs qui d'ores et déjà ou potentiellement bénéficient des services écosystémiques associés à ces rivières. L'objectif était de souligner la force des dépendances et des attachements, de sensibiliser ces acteurs, notamment les décideurs, à l‘importante richesse socio-économique de ces écosystèmes et, in fine, de fournir des données utiles aux acteurs du territoire pour opérer leur choix de gestion et d'aménagement. Deux bassins versants, le Léguer (département 22) et l'Estéron (06) ont été analysés avec le concours des parties prenantes locales. L'étude s'est déroulée en trois grandes étapes : (i) le recueil de données initiales pour l'étude socio-écologique des bassins versants de l'Estéron, du Léguer et de leur territoire d'influence ; (ii) l'identification des interdépendances, des synergies, des conflits, entre les services écosystémiques qui a mis en évidence l'intérêt de s'appuyer sur la notion de bouquet de services ; et (iii) l'évaluation biophysique et économique des services écosystémiques sélectionnés par les comités de pilotage locaux, avec un focus sur la qualification de l'attachement des habitants à la Vallée du Léguer, via une étude de consentement à payer reposant sur des scénarios de développement du territoire. Certains services écosystémiques sélectionnés par les acteurs locaux des deux bassins versants demeurent récurrents comme la disponibilité en eau potable avec des traitements réduits, le bois énergie et la séquestration du carbone fournies par la forêt (ainsi que le bocage breton : particularité du Léguer), les activités de plein air et la notion d'attachement des habitants à leur vallée (Léguer) ou le sentiment de quiétude des lieux (Estéron). |
| Keywords: | Ecosystem services, Economic valuation, Market valuation, Non-market valuation, Stated preference methods, Revealed preference methods, Wild rivers, Léguer, Estéron., Services écosystémiques, Évaluation économique, Évaluation marchande, Évaluation non marchande, Méthodes à préférences déclarées, Méthodes à préférences révélées, Rivières sauvages |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04143090&r=env |
| By: | Chowdhury, Sulin |
| Keywords: | International Development, Environmental Economics and Policy, Health Economics and Policy |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335458&r=env |
| By: | Angulo, Juan C. |
| Keywords: | International Development, International Relations/Trade, Research Methods/Statistical Methods |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335896&r=env |
| By: | Reichhardt, Tasha |
| Abstract: | There is currently little research about the economic outcomes for tribes that settle their water rights with the United States. To address this gap, I conduct a benefit-cost analysis on the Crow Reservation’s Municipal, Rural, and Industrial System funded by the Crow Tribe Water Rights Settlement Act of 2010. This project is designed to revitalize the existing community water systems on Crow Reservation and provide community water access to over half of the reservation's residents that otherwise rely on wells, springs, or hauling water. I also discuss the implications this may have for tribes unable or ineligible to settle water rights. Based on the baseline scenario of the cost-benefit model, the benefits of this system accumulate to $413 million (95% CI $339 million - $508 million) at a 3 percent discount rate, $1, 464 (95% CI $1, 261 million - $1, 776 million) at a 0.1 percent discount rate, and $153 million (95% CI $115 million - $194 million) at a 7 percent discount rate. Costs accumulate to $320 million at a 3 percent discount rate, $632 million at a 0.1 percent discount rate, and $196 million at a 7 percent discount rate. The respective benefit-cost ratio for each discount rate is 1.29, 2.31, and 0.78. |
| Keywords: | Demand and Price Analysis, Environmental Economics and Policy |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umapug:337207&r=env |
| By: | Utsumi, Tomoko |
| Keywords: | International Development, International Development, Labor and Human Capital |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335713&r=env |
| By: | Leogrande, Angelo; Leogrande, Domenico; Costantiello, Alberto |
| Abstract: | In this article, we investigate the role of Unemployment-U in the context of Environmental, Social and Governance-ESG model at World Level. We use data from 193 countries in the period 2011-2021. We apply Panel Data with Random Effects, Panel Data with Fixed Effects, Pooled Ordinary Least Squares-OLS, and Weighted Least Squares-WLS. We found that among other the level of U is positively associated, among others, to “GHG Net Emissions” and “Government Effectiveness”, and negatively associated among others, to “Maximum 5 Day Rainfall” and “Political Stability and Absence of Violence/Terrorism”. Furthermore, we confront eight different machine-learning algorithms to predict the future value of U. We found that the best predictive algorithm in terms of maximization of R-squared and minimization of MAE, MSE, and RMSE is the Linear Regression. The value of U is expected to growth of 1.51% on average for the analysed countries. |
| Date: | 2023–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:z2ums&r=env |
| By: | Yannick Perez (CentraleSupélec, Gif-sur-Yvette, 91192, France); Carine Staropoli (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Face aux défis du changement climatique, la révolution de la mobilité durable tant attendue et annoncée tarde à se concrétiser. Les transports sont encore responsables du tiers des émissions de gaz à effet de serre en France (dont 72 % pour le transport routier), 24 % au niveau mondial, et sont le seul secteur où elles continuent d'augmenter par rapport à 1990 (le ralentissement lié aux restrictions de déplacement pendant la pandémie en 2020 constituant une parenthèse). La décarbonation de la mobilité est pourtant un impératif pour respecter les engagements du pays d'atteindre la neutralité carbone en 2050 ce qui impose des étapes tout aussi ambitieuses et contraignantes. En 2030, l'Europe va obliger beaucoup de secteurs de l'industrie, dont les transports, à réduire leurs émissions de CO2 de 55 % par rapport au niveau actuel ce qui se traduit pour les constructeurs de véhicules légers par la nécessité de vendre des véhicules qui émettent en moyenne 55 % de moins de CO2 que les véhicules vendus en 2021. En 2035, la vente de véhicules thermiques neufs sera tout simplement interdite. Pourtant, des changements ont eu lieu mais à un rythme trop lent qui ne permet pas le passage à l'échelle : les usages de la mobilité évoluent, l'industrie innove avec une perspective technologique favorable du côté des véhicules électriques, les investisseurs publics et privés poursuivent leurs engagements dans des projets d'infrastructures et les politiques publiques sont mises en œuvre à tous les niveaux pour promouvoir la mobilité durable. |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:pseptp:hal-04157581&r=env |
| By: | Cropper, Maureen L. (Resources for the Future); Joiner, Emily (Resources for the Future); Krupnick, Alan (Resources for the Future) |
| Abstract: | The US Environmental Protection Agency (EPA) bases its estimate of the value of statistical life (VSL) on 17 hedonic wage studies and five contingent valuation studies conducted between 1974 and 1991. We summarize advances in the mortality risk valuation literature since these papers were published, focusing on studies that value risks to adults and were conducted in the United States. We review hedonic wage, other revealed preference, and stated preference studies, identifying papers that satisfy appropriate validity criteria. We conclude that the recent literature is sufficiently rich to permit a revision of EPA’s baseline estimate. Importantly, VSL estimates from both the averting behavior and stated preference studies we review reflect the preferences of a wider range of demographic groups than the current VSL, and newer studies better target causes of death relevant to EPA regulations. |
| Date: | 2023–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-23-30&r=env |
| By: | Angelo Leogrande (LUM University Giuseppe Degennaro) |
| Abstract: | In this article, I estimate the value of "Individual Using Internet"-IUI in the context of Environmental, Social and Governance-ESG database of the World Bank. I use data from 193 countries for the period 2011-2020. I found that among others the value of IUI is positively associated to "Methane Emissions" and "People Using Safely Managed Sanitation Services" and negatively associated among others to "Fossil Fuel Energy Consumption" and "Renewable Energy Consumption". I apply the k-Means algorithm for the clusterization optimized with the Elbow Method and we find the presence of three clusters. Finally, I confront eight machine-learning algorithms to predict the future value of IUI. I found that the best predictive algorithm is Linear Regression and that the value of IUI is expected to decrease on average of 0.30% for the analysed countries. |
| Keywords: | Analysis of Collective Decision-Making General Political Processes: Rent-Seeking Lobbying Elections Legislatures and Voting Behaviour Bureaucracy Administrative Processes in Public Organizations Corruption Positive Analysis of Policy Formulation Implementation JEL Classification: D7 D70 D72 D73 D78, Analysis of Collective Decision-Making, General, Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behaviour, Bureaucracy, Administrative Processes in Public Organizations, Corruption, Positive Analysis of Policy Formulation, Implementation JEL Classification: D7, D70, D72, D73, D78 |
| Date: | 2023–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04139944&r=env |
| By: | Budzinski, Oliver; Stöhr, Annika |
| Abstract: | Dem Aufruf des Bundesministeriums für Wirtschaft und Klimaschutz (BMWK) folgend, nehmen wir in dieser Stellungnahme eine ökonomische Einschätzung des umfangreichen Gutachtens zu 'Wettbewerb und Nachhaltigkeit in Deutschland und der EU', welches im Auftrag des BMWK angefertigt wurde, vor. Wir legen dabei den Fokus auf 12 vom Ministerium hervorgehobene Maßnahmenvorschläge. Insgesamt zeigt sich, dass Ausnahmen vom Wettbewerbsschutz wirtschaftliche Macht schaffen und entsprechende Ausnahmen vom Wettbewerbsschutz regelmäßig dem Gemeinwohl der Gesellschaft schaden, ohne dass Nachhaltigkeitsziele damit besser erreicht werden. Wir plädieren daher für die Einbeziehung von Nachhaltigkeitsaspekten in wettbewerbspolitische Fallanalysen und -entscheidungen unter der Voraussetzung, dass der Wettbewerbsprozess dadurch insgesamt gestärkt wird. |
| Keywords: | Wettbewerb und Nachhaltigkeit, Sustainable Development Goals, Wettbewerbspolitik, Green Antitrust |
| JEL: | K21 K32 P18 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:179&r=env |
| By: | Chakraborty, Judhajit |
| Keywords: | International Development, Institutional and Behavioral Economics, International Development |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335776&r=env |
| By: | Kazuki Motohashi |
| Abstract: | Developing countries have increased sanitation investment to reduce diarrheal diseases. However, the direct health benefits of latrine construction can be offset by water pollution externalities due to poor treatment of fecal sludge. I estimate these negative externalities of a sanitation policy in India that subsidized the construction of over 100 million latrines. Exploiting geographical variation in soil characteristics and the differential increase in latrine coverage across districts, I find that the policy increases river pollution by 72%. While it reduces diarrheal mortality overall, this positive health effect is two-thirds smaller in areas with lower capacities for treatment of fecal sludge where water pollution externalities are consequently larger. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1210&r=env |
| By: | Jasny, Johannes; Schubert, Torben |
| Abstract: | The post-growth discourse emphasizes the role need to limit economic growth as a primary means to stop continuous environmental degradation associated with production induced overexploitation of natural resources. A criticism of the post-growth discourse is, however, that innovation is known to be demand-driven implying that limiting growth may then undermine incentives to innovate. This may reduce the speed with which new environmentally friendly technologies are developed. Empirical analysis of this claim however do not exist. Relying on data from the European Manufacturing Survey 2018 for Germany, we match macroeconomic sector-growth statistics from the German Statistical Office and analyse how firm-level and sector level growth drive firms' innovation activities with a specific focus to environmental innovations. We find that while firm-level growth is strongly associated with all kinds of innovation activities, sector-level growth is not. Our results suggest that limiting overall economic growth may not undermine incentives to innovate as long as growth is still feasible on the level of the firm. |
| Keywords: | Economic growth, Innovation, Post-growth, Demand pull hypothesis, Green growth |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisidp:76&r=env |
| By: | Sulistyaningtyas, Yuliana |
| Abstract: | PDAM is a regional drinking water company managed directly by the local government. Before PDAM clean water, residents of Ampelgading Village still used well water for bathing, cooking, washing, and drinking water by boiling it first. Because healthy water only sometimes produces water, especially during the dry season, the Ampelgading Village government does not remain silent; the Ampelgading Village government advises all residents to use PDAM clean water. However, not all residents immediately agree with the advice given by the local government because not all residents can afford to pay for PDAM clean water; the government provides PDAM clean water assistance to its citizens at a low price, and in the end, all residents want to use PDAM clean water for bathing, washing, etc., there is also innovation in the PDAM clean water payment system to make it easier for the community. This study aims to discover the innovation division from using healthy water to developing using PDAM clean water using a qualitative method using a descriptive approach. Retrieval of data in this study using interviews, observation, and documentation. |
| Date: | 2023–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:wsvdr&r=env |
| By: | Ines Helm; Nicolas Koch; Alexander Rohlf |
| Abstract: | We study the effects of a large car scrappage scheme in Germany on new car purchases and local air quality by combining vehicle registration data with data on local air pollutant emissions. For identification we exploit cross-sectional variation across districts in the number of cars eligible for scrappage. The scheme had substantial effects on car purchases and did not simply reallocate demand across time in the short-term. Nevertheless, about half of all subsidized buyers benefited from windfall gains. The renewal of the car stock improved local air quality suggesting substantial mortality benefits that likely exceed the cost of the policy. While policy take-up is somewhat smaller in urban districts, improvements in air quality and health tend to be larger due to a higher car density. |
| Keywords: | cash for clunkers, local air quality, car scrappage schemes, emissions, car rebate |
| JEL: | H20 H23 Q53 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10530&r=env |
| By: | Fetzer, Thiemo (University of Warwick); Gazze, Ludovica (University of Warwick); Bishop, Menna (University of Warwick) |
| Abstract: | Which households are most affected by energy price shocks? What can we learn about the distributional implications of carbon taxes? How do interventions in energy markets affect these patterns? This paper introduces a measurement framework that leverages granular property-level data representing more than 50% of the English and Welsh housing stock. We use this ex-ante measurement framework to investigate these questions and set out an empirical evaluation framework to study the causal effects of the energy crisis more broadly. We find that the energy price shock has a more pronounced effect on relatively more affluent areas highlighting the likely progressive impact of carbon taxation. We document that commonly used untargeted interventions in energy markets significantly weaken market price signals for able-to-pay households. Alternative, more targeted policies are cheaper, easily implementable, and could better align energy saving incentives. |
| Keywords: | Energy crisis ; Carbon taxation ; Climate change ; Energy efficiency gap JEL codes: : Q48 ; C55 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1467&r=env |
| By: | Louis-Gaëtan Giraudet (ENPC - École des Ponts ParisTech, 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); Bénédicte Apouey (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Hazem Arab (UP1 - Université Paris 1 Panthéon-Sorbonne); Simon Baeckelandt (CERAPS - Centre d'Etudes et de Recherches Administratives, Politiques et Sociales - UMR 8026 - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Philippe Begout; Nicolas Berghmans (IDDRI - Institut du Développement Durable et des Relations Internationales - Institut d'Études Politiques [IEP] - Paris); Nathalie Blanc (LADYSS - Laboratoire Dynamiques Sociales et Recomposition des Espaces - UP1 - Université Paris 1 Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité); Jean-Yves Boulin (IRISSO - Institut de Recherche Interdisciplinaire en Sciences Sociales - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Eric Buge (IMV - Institut Michel Villey pour la Culture Juridique et la Philosophie du Droit - Université Paris-Panthéon-Assas); Dimitri Courant (UNIL - Université de Lausanne = University of Lausanne, CRESPPA - Centre de recherches sociologiques et politiques de Paris - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, Harvard University); Amy Dahan (CAK-CRHST - Centre Alexandre Koyré - Centre de Recherche en Histoire des Sciences et des Techniques - MNHN - Muséum national d'Histoire naturelle - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Adrien Fabre (ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]); Jean-Michel Fourniau (Université Gustave Eiffel); Maxime Gaborit (CEE - Centre d'études européennes et de politique comparée (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Laurence Granchamp (LINCS - Laboratoire interdisciplinaire en études culturelles - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique); Hélène Guillemot (CAK-CRHST - Centre Alexandre Koyré - Centre de Recherche en Histoire des Sciences et des Techniques - MNHN - Muséum national d'Histoire naturelle - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Laurent Jeanpierre (CESSP - Centre européen de sociologie et de science politique - UP1 - Université Paris 1 Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Hélène Landemore (Yale University [New Haven]); Jean-François Laslier (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Antonin Macé (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Claire Mellier (Cardiff University); Sylvain Mounier; Théophile Pénigaud (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique); Ana Povoas (ULB - Université libre de Bruxelles); Christiane Rafidinarivo (LCF - Laboratoire de recherches sur les espaces créoles et francophones - UR - Université de La Réunion, CEVIPOF - Centre de recherches politiques de Sciences Po (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Bernard Reber (CEVIPOF - Centre de recherches politiques de Sciences Po (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Romane Rozencwajg (Cresppa-LabToP - Laboratoire Théories du politique : pouvoir et relations sociales - CRESPPA - Centre de recherches sociologiques et politiques de Paris - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Philippe Stamenkovic (BGU - Ben-Gurion University of the Negev); Selma Tilikete (Cresppa-CSU - Cultures et sociétés urbaines - CRESPPA - Centre de recherches sociologiques et politiques de Paris - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, CAK-CRHST - Centre Alexandre Koyré - Centre de Recherche en Histoire des Sciences et des Techniques - MNHN - Muséum national d'Histoire naturelle - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique, EHESS - École des hautes études en sciences sociales); Solène Tournus (CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Launched in 2019, the French Citizens' Convention for Climate (CCC) tasked 150 randomly-chosen citizens with proposing fair and effective measures to fight climate change. This was to be fulfilled through an "innovative co-construction procedure, " involving some unspecified external input alongside that from the citizens. Did inputs from the steering bodies undermine the citizens' accountability for the output? Did co-construction help the output resonate with the general public, as is expected from a citizens' assembly? To answer these questions, we build on our unique experience in observing the CCC proceedings and documenting them with qualitative and quantitative data. We find that the steering bodies' input, albeit significant, did not impair the citizens' agency, creativity and freedom of choice. While succeeding in creating consensus among the citizens who were involved, this co-constructive approach however failed to generate significant support among the broader public. These results call for a strengthening of the commitment structure that determines how follow-up on the proposals from a citizens' assembly should be conducted. |
| Keywords: | Citizens’ assemblies, Climate assemblies, Deliberative democracy, Co-construction, Carbon tax, Referendum |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03119539&r=env |
| By: | Peter Benczur (European Commission - JRC); Virmantas Kvedaras (European Commission - JRC); Nadir Preziosi (European Commission - JRC) |
| Abstract: | With recent developments such as climate change and the pandemic, it has become increasingly clear that GDP is incomplete as a measure of progress, as it does not fully reflect important environmental or social challenges of our times. This calls for developing complementary metrics, which allow to better track the EU’s sustainability transition and its performance in global comparison. The 2023 Strategic Foresight Report of the European Commission presents the results of a pilot, which incorporates the often overlooked aspect of the health and life expectancy of a population into a beyond-GDP metric. The pilot provides an illustration of how health-adjusted income would compare for four major countries/entities, the US, China, India, and the EU in 2000, 2020, and 2040. This short report serves as its background, presenting the underlying methodology, data used, and the sensitivity of the results to various alternatives. |
| Keywords: | Beyond GDP, health, measurement, life expectancy, valuation, well-being |
| JEL: | I15 I31 I38 O57 D60 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc134152&r=env |
| By: | Benjamin Ouvrard (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Arnaud Reynaud (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Stéphane Cezera (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Alban Thomas (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, US ODR - Observatoire des Programmes Communautaires de Développement Rural - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Dishant Jojit James (Wyzsza Szkola Bankowa University); Murudaiah Shivamurthy (Department of Agricultural Extension, GKVK, UAS, Bangalore) |
| Abstract: | We use a framed-field experiment to analyze the preferences of Indian farmers regarding water sharing. Farmers play a dictator game (DG) behind the veil of ignorance in which a limited quantity of water has to be allocated between two farmers. We vary the equity/efficiency trade-off by introducing some heterogeneity between farmers' productivity and by considering an upstream/downstream spatial configuration. We first show that generosity in the DG is high (on average, respectively 44% and 47% of the total quantity of water or the total profit are left by the dictator). Only a small proportion of farmers act in the DG as selfish profit maximizers, a majority of them adopting efficient, egalitarian in payoff or egalitarian in quantity behaviors. We then show that it is possible to induce more efficient water allocation behaviors in the DG by modifying farmer's choice architecture. A loss framing induces farmers to share more efficiently the water resource, but only when the most productive farmer is located downstream. On the contrary, we find mild evidence that farmers choose less often the efficient solution with a gain framing. |
| Keywords: | Dictator Game, Framed-field experiment, Framing, Water sharing |
| Date: | 2023–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04150233&r=env |
| By: | Christophe Boucher; Wassim Le Lann (UO - Université d'Orléans, LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne); Stéphane Matton; Sessi Tokpavi |
| Abstract: | Sustainable investing is growing fast and investors are increasingly integrating environmental, social, and governance (ESG) criteria. However, ESG ratings are derived using heterogeneous methodologies and can be quite divergent across providers, which suggests the need for a formal statistical procedure to evaluate their accuracy. This paper develops a backtesting procedure that evaluates how well these extra-financial metrics help in predicting a company's idiosyncratic risk. Technically, the inference is based on extending the conditional predictive ability test of Giacomini and White (2006) to a panel data setting. We apply our methodology to the forecasting of stock returns idiosyncratic volatility and compare two ESG rating systems from Sustainalytics and Asset4 across three investment universes (Europe, North America, and the Asia-Pacific region). The results show that the null hypothesis of no informational content in ESG ratings is strongly rejected in Europe, whereas results appear mixed in the other regions. Furthermore, the predictive accuracy gains are higher when considering the environmental dimension of ESG ratings. Importantly, applying the test only to firms over which there is a high degree of consensus between the ESG rating agencies leads to higher predictive accuracy gains for all three universes. Beyond providing insights into the accuracy of each of the ESG rating systems, this last result suggests that information gathered from several ESG rating providers should be cross-checked before ESG is integrated into investment processes. |
| Keywords: | Backtesting, ESG ratings, Idiosyncratic realised volatility, Test of equal predictive power, Panel data, Consensus ESG ratings |
| Date: | 2023–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04140193&r=env |
| By: | Mathieu Guigourez (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The Stern-Nordhaus controversy has been emblematic of the economic and ethical debate around the formulation of a discount rate and a carbon price. The aim of this article is to study this controversy in order to shed light on the epistemological and ethical postulates implicitly accepted by the two economists in their work, and more broadly in the integrated models concluding to a social cost of carbon. These implicitly accepted postulates are 1) the comprehension of economic rationality solely as the maximization of expected utility, and 2) a consequentialist point of view. The latter compartmentalize the scope of the ethical debate into cleavages over the formulation of an optimal discount rate. This article aims to broaden the ethical debate around these integrated models by questioning the implicit normativity of how economic rationality is at play in these models and proposes a new way of conceiving individual responsibility in regard to climate change. |
| Keywords: | Integrated Assessment Models, Economic Rationality, Discount Rate, Social Cost of Carbon, Individual Responsibility, Philosophy of Economics, Expected utility |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-04161930&r=env |
| By: | Kever Bruno Paradelo Gomes (Instituto Federal of Brasília); Cledinaldo Aparecido Dias (University Federal of Minas Gerais) |
| Abstract: | After a historic period of conventional cocoa bean production, southern Bahia has shown a strong trend towards diversification and inclusion in the special cocoa market. Producers in the region are cultivating fruits of superior quality and low environmental impact. Inserted in a production model based on the concept of sustainable business, these producers, agrifood entrepreneurs, seek to promote experiences to their consumers in their different alternative lifestyles, such as the philosophy of the Bean-to-bar production model. Elaborated as a theoretical essay, the development of this article aims to identify the contribution of the Bean-to-bar process in generating value in the cocoa production chain, inserted within a context of Short Circuits of Commercialization in the generation of innovative business. It is noted that a good monitoring of the entire process of transforming the input into a product allows entrepreneurs to explore with greater vigor the organoleptic properties of cocoa beans. Among the main initiatives that boosted the performance of the cocoa production chain in southern Bahia, Fortaleza Slow Food, the creation of the Cocoa Innovation Center and the Geographical Indication stand out. The strategies developed make it possible to diversify and foster rural communities. It is essential to understand the dynamics of these processes of local productive arrangements from the integration of public policies in the promotion, valuation of family farming products, sustainable cocoa beans with superior quality and local development. The search for recognition of the value attributed to cocoa products in the southern region of Bahia, from production (bean) to transformation into the final product (bar), intensifies the environmental perspective on the part of cocoa farmers. In this process, the sociocultural dimensions are present mainly in the cabucra production system, valuing and strengthening local family farming. The commercialization of almonds in the short chain segment enables business efficiency, giving space for increased profitability and reduced environmental impact. The frugal innovation model, oriented towards sustainability, becomes a path for the development of innovative businesses that generate value in the cocoa production chain. In this sense, for this topic to become solidified as a field of research that can bring relevant theoretical and practical contributions, it is suggested that new studies focus, among others, on business models that prioritize the cause and not simply the trends. |
| Keywords: | Agri-food chains. Entrepreneurship. Social business. Sustainability |
| JEL: | L26 Q01 Q19 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:11615531&r=env |
| By: | Tamás Hajdu (Centre for Economic and Regional Studies) |
| Abstract: | Research on the effect of in utero shocks on health at birth may be influenced by in utero selection. This study outlines a conceptual framework and shows that the results of the standard empirical approach are biased if (i) the exposure changes the probability of fetal death and (ii) health differences exist between deceased and surviving fetuses. Furthermore, an empirical example is provided to illustrate, the potential importance of fetal selection. Examining the impact of heat on birth weight, I find that accounting for fetal selection substantially increases the heat effect compared to the standard approach. These results suggest that incorporating the distorting effect of fetal losses into the estimations may be critical in some cases to provide more informed guidance for public policy |
| Keywords: | Keywords: in utero selection, health at birth, birth weight, temperature, climate change |
| JEL: | I12 J13 Q54 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:2320&r=env |
| By: | Ekaterine Maglakelidze (The University of Georgia); Eka Gegeshidze (The University of Georgia); Nino Jgamadze (The University of Georgia); Irakli Malaguradze (The University of Georgia); Maia Veshaguri (Iv. Javakhishvili Tbilisi State University) |
| Abstract: | We continue the series of investigations toward the market uptake measures of renewable energy systems for achievement of balance between electricity supply and demand in the local electricity market of Georgia. At present the research objective is to assess the benefits of residential customers living in the different climatic zones of Georgia with varied average annual solar radiation and willing to participate in the Demand Response (DR) program so called net-metering (NEM) for the purpose to figure out in which climatic zones of Georgia is more reasonable to make investments in small-scale solar PV plants. For achieving the research objective, the total benefits/costs of residential customers (with the average monthly electricity consumption between 101 kWh and 301kWh) living in four different climatic zones of Georgia (Tbilisi, Batumi, Telavi, and Mestia) and willing to invest in small-scale solar PV installations with the installed capacity of 3, 465 kW and sell excess electricity (capacity) to the grid, is estimated. Besides, the capacity factors for Tbilisi, Batumi, Telavi, and Mestia were determined to illustrate how location affects the actual output of small-scale PV plants.During the study the following research hypothesis has been tested: ?Residential customers can benefit from retail-rate net energy metering if they choose to participate in this program but their benefits depend heavily on the location where PV installations are applied.? Our cost-benefit analyses revealed that solar is often a solution suitable for the geographical needs of remote communities with higher potential of solar radiation. |
| Keywords: | Demand Response (DR), small-scale solar PV plants, net energy metering (NEM), renewable energy resources, Distributed Energy Resources (DER), Energy Balance, energy efficiency (EE). |
| JEL: | D19 M31 Q21 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:13315656&r=env |
| By: | Aheeyar, Mohamed; Jayathilake, Nilanthi; Bucatariu, C.; Reitemeier, Maren; Bandara, Ayomi; Thiel, Felix; Drechsel, Pay |
| Abstract: | This report explores and analyses the governance framework (i.e. policies, laws, and regulations) relevant to urban food waste (FW) prevention and reduction in the wholesale, retail, hospitality (restaurants, hotels), food services (schools, hospitals), and households in Sri Lanka. The project "Innovative approaches to reduce, recycle and reuse food waste in urban Sri Lanka" was implemented from June 2019 to August 2021 under the oversight of the Ministry of Urban Development and Housing and in collaboration with the Food and Agriculture Organization of the United Nations (FAO) and the International Water Management Institute (IWMI). |
| Keywords: | Agribusiness, Agricultural and Food Policy, Consumer/Household Economics |
| Date: | 2023–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iwmirp:337118&r=env |
| By: | Maia David (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Vincent Martinet (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | A l'aide d'une expérience de choix discret, nous avons évalué l'acceptabilité relative de politiques de taxation ou d'interdiction du glyphosate auprès d'un échantillon représentatif de citoyens de 5 pays européens : l'Allemagne, la Belgique, l'Espagne, la France et l'Italie. Alors que 3/4 des répondants se déclarent en faveur d'une interdiction dans le questionnaire pré-expérimental, notre expérience montre que 2/3 d'entre eux sont susceptibles de préférer une taxation qui résulterait dans une réduction forte (mais pas totale) de l'utilisation du glyphosate à condition que cette politique réduise suffisamment le coût induit sur leur panier alimentaire. Notre expérience permet ainsi de quantifier cet arbitrage entre le gain environnemental de la politique et son coût pour les consommateurs. |
| Keywords: | Taxation, Pesticide, glysophate |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04114102&r=env |