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on Environmental Economics |
| By: | Krellenberg, Kerstin; Link, Felipe; Welz, Juliane; Barth, Katrin; Harris, Jordan; Irarrázaval, Felipe; Valenzuela, Felipe |
| Abstract: | [Foreword ...] The present report contains the results of the initial working steps of the CLAVE project which is a) the theoretical combination of fragmentation and vulnerability, and b) the development of a methodology for assessing socio-environmental fragmentation and residential vulnerability in order to enhance the overall knowledge of urban vulnerability. This is seen as the primary prerequisite for the subsequent elaboration and implementation of local adaptation measures. The different methodological steps and in-depth analyses to be undertaken are described by using selected municipalities within the MAS. Chapter 2 focuses on describing the underlying problem of linking the theoretical approaches of fragmentation and vulnerability from a general point of view. Existing approaches presented by other authors are discussed, in order to link as well as distinguish the work presented here with/from others. Chapter 3 shows how the concepts of fragmentation and vulnerability are interlinked from the project’s point of view. Chapter 4 describes the theoretical background of climate change adaptation and adaptive capacity in order to allow a better understanding of both the CLAVE project approach and its application. The case study, the MAS, is described and illustrated in Chapter 5 by providing a general overview of the city together with existing findings with regard to fragmentation and vulnerability. This chapter thereby explains the context in which the approach is to be applied. Chapter 6 presents the project’s methodological framework with its three-stage approach as an integrated assessment of urban vulnerability to climate change. Options for validating the approach are likewise discussed. Chapter 7 summarizes the main conclusions and provides an outlook by describing success stories and lessons learned for validating the theoretical approach. The development of strategies to deal with future climate change in these and other regions worldwide is discussed. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzrep:022015&r=env |
| By: | John J. Nay; Martin Van der Linden; Jonathan M. Gilligan |
| Abstract: | Despite much scientific evidence, a large fraction of the American public doubts that greenhouse gases are causing global warming. We present a simulation model as a computational test-bed for climate prediction markets. Traders adapt their beliefs about future temperatures based on the profits of other traders in their social network. We simulate two alternative climate futures, in which global temperatures are primarily driven either by carbon dioxide or by solar irradiance. These represent, respectively, the scientific consensus and a hypothesis advanced by prominent skeptics. We conduct sensitivity analyses to determine how a variety of factors describing both the market and the physical climate may affect traders' beliefs about the cause of global climate change. Market participation causes most traders to converge quickly toward believing the "true" climate model, suggesting that a climate market could be useful for building public consensus. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1603.08961&r=env |
| By: | Indarto, Jarot; Mutaqin, Dadang J. |
| Abstract: | Deforestation is one of the critical issues in our global climate change era. It leads to two important environmental challenges, loss of biodiversity and increasing of greenhouse gas emission. Many efforts have been introduced, developed and implemented. However, a declining forest cover still presents. Since deforestation is a complex and intertwined issue, understanding its complexity and context on which it is debated is crucial. This paper aims at discussing some grand theories of deforestation, especially from economics perspective. The discussion covers the proximate-underlying causes of deforestation, the Environmental Kuznets Curve for deforestation theory, the forest transition theory and the land rent theory. For each, this paper elaborates their original notion, basic idea, empirical studies and policy derivation. Finally, comparable similarities and dissimilarities and their future extend are reviewed. |
| Keywords: | Deforestation, proximate and underlying causes, Environmental Kuznets Curve for deforestation, forest transition, land rent. |
| JEL: | Q57 |
| Date: | 2016–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70178&r=env |
| By: | Landis, Florian; Heindl, Peter |
| Abstract: | We study how European climate and energy policy targets affect different member states and households of different income quintiles within the member states. We find that renewable energy targets in power generation, by reducing EU ETS permit prices, may make net permit exporters worse off and net permit importers better off. This effect appears to dominate the effciency cost of increasing the share of energy provided by renewable energy sources in the countries that adopt such targets. While an increase in prices for energy commodities, which is entailed by the policies in question, affects households in low income quintiles the most, recycling revenues from climate policy allows governments to compensate them for the losses. If renewable targets reduce the revenues from ets permit auctions, member states with large allocations of auctionable permits will lose some of the ability to do so. |
| Keywords: | distributional effects,EU climate policy,renewable energy target |
| JEL: | H23 Q52 Q54 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16026&r=env |
| By: | James Corbett; Nick Johnstone; Karin Strodel; Laurent Daniel |
| Abstract: | This paper examines the relationship between environmental policy and “green” innovation in shipbuilding. The primary motivating question of this work is whether there is evidence of: i) technology push from innovation that enables environmental policy initiatives; and/or, ii) policy pull that induces innovation leading to “green” ships. This paper focuses on four environmental categories of technological innovation in the shipbuilding industry, encompassing oil spill recovery, emissions control, climate change mitigation and ballast water treatment. The analysis draws upon documents filed at the International Maritime Organization (IMO) to proxy for policy measures, and uses patent data of the Worldwide Statistical Patent Database, maintained by the European Patent Office (EPO), to account for innovation. Our results show a similar trend between patent activity and IMO document submissions over the years 1998 to 2012 for the two environmental categories, climate change mitigation and emissions control. The key contribution of this work are to provide more insights into environmental policy in shipbuilding and its role in innovation activity, as well as to develop a rich dataset focused on IMO policies aimed at encouraging improved environmental performance by ships. |
| Date: | 2016–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:28-en&r=env |
| By: | Andrea Baranzini; Stefano Carattini |
| Abstract: | This paper analyzes the drivers of carbon taxes acceptability with survey data and a randomized labeling treatment. Based on a sample of more than 300 individuals, it assesses the effect on acceptability of specific policy designs and individuals’ perceptions of carbon taxes advantages and disadvantages. We find that the lack of perception of primary and ancillary benefits is one of the main barriers to the acceptability of carbon taxes. In addition, policy design matters for acceptability and in particular earmarking fiscal revenues for environmental purposes can lead to larger support. We also find an effect of labeling, comparing the wording “climate contribution” with “carbon tax”. We argue that proper policy design coupled with effective communication on the effects of carbon taxes may lead to a substantial improvement in acceptability. |
| Keywords: | climate policy; carbon tax; CO2 emissions; political economy |
| JEL: | D72 H23 Q48 Q52 Q58 |
| Date: | 2016–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:65212&r=env |
| By: | Kerstin Burghaus; Peter Funk |
| Abstract: | We study economic growth and pollution control in a model with endogenous rate and direction of technical change. Economic growth results from growth in the quantity and productivity of polluting intermediates. Pollution can be controlled by reducing the pollution intensity of a given quantity through costly research (green innovation) and by reducing the share of polluting intermediate quantity in GDP. Without clean substitutes, saving on polluting inputs implies that the rate of GDP growth remains below productivity growth (deceleration). While neither green innovation nor deceleration is chosen under laissez-faire, both contribute to long-run optimal pollution control for reasonable parameter values. |
| Keywords: | Endogenous Growth, Direction of Technical Change, Pollution, Green Innovation, Rebound Effect |
| JEL: | O30 O41 O44 Q55 |
| Date: | 2016–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:kls:series:0084&r=env |
| By: | Zon, Adriaan van (UNU-MERIT & SBE, Maastricht University) |
| Abstract: | An optimal growth model is constructed in a context of irreversible investment in different concurrent production technologies in order to study the optimum timing of the various stages that can be identified in the transition from a carbon-based economy to a carbon-free economy. Such a transition is necessary to avoid runaway global warming. The model is based on the AK-model by Rebelo (1991) and uses multi-stage optimal control methods to illustrate the importance of the notion of capital goods as a produced means of production and as the physical carriers/manifestations of different technologies for the timing and intensity of the use of carbon-based and carbon-free technologies during a just-in-time transition. The transition needs to happen within a given cumulative emissions constraint in order to avoid runaway global warming and corresponding runaway welfare losses. It is shown that the expectation of extreme weather-related damages in such a setting may induce a welfare maximizing central planner to step-up carbon-based production rather than reducing such activity, for similar reasons as the green paradox arises. A further paradoxical result is that increases in the productivity of carbon-free technologies relative to carbon-based technologies do not necessarily imply an earlier phasing in of those carbon-free technologies, but rather allow for a more gradual (and more prolonged) transition towards a carbon-free future. Finally, it is shown that having a productive carbon-based production system facilitates the transition towards a carbon-free system, i.e. investment in carbon intensive technologies may be an effective instrument in securing a carbon-free future. |
| Keywords: | Energy transition, global warming, climate tipping point, optimal timing of investment and production, multi-stage optimal control |
| JEL: | O10 O21 O44 |
| Date: | 2016–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2016010&r=env |
| By: | Mark Sommer; Kurt Kratena |
| Abstract: | This paper calculates the CO2e (CO2 equivalents) footprint of private consumption in the EU27 by five groups of household income, using a fully fledged macroeconomic input-output model covering 59 industries and five groups of household income for the EU27. Due to macroeconomic feedback mechanisms, this methodology not only takes into account intermediate demand induced by the demand of a household group, but also: (i) private consumption induced in the other household groups, (ii) impacts on other endogenous final demand components, and (iii) negative feedback effects due to output price effects of household demand. Direct household emissions from household energy consumption are taken into account in a non-linear specification. Emissions embodied in imports are calculated using the results of a static MRIO (Multi-Regional Input-Output) model. The footprint is calculated separately for the consumption vector of each of the five income groups. The simulation results yield an income elasticity of direct and indirect emissions at each income level that takes all macroeconomic feedbacks of consumption into account and differs from the ceteris paribus emission elasticity in the literature. The results further reveal that a small structural ‘Kuznet effect’ exists. |
| Keywords: | Carbon footprint, CGE modeling, income distribution |
| JEL: | C67 Q52 Q54 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2016:m:3:d:0:i:113&r=env |
| By: | Andreas Schaefer (ETH Zurich, Switzerland) |
| Abstract: | Environmental pollution adversely affects children’s probability to survive to adulthood, reduces thus parental expenditures on child quality and increases the number of births necessary to achieve a desired family size. We argue that this mechanism will be intensified by economic inequality because wealthier households live in cleaner areas. This is the key mechanism through which environmental conditions may impose a growth drag on the economy. Moreover, the adverse effect of inequality and pollution on children’s health may be amplified, if the population group that is least affected decides about tax-financed abatement measures. Our theory provides a candidate explanation for (1) the observed positive correlation between inequality and the concentration of pollutants at the local level, and (2) the humpshaped evolution of child mortality ratios between cleaner and more polluted areas during the course of economic development. |
| Keywords: | Endogenous Growth, Endogenous Fertility, Inequality, Mortality, Pollution |
| JEL: | O10 Q50 I10 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:16-241&r=env |
| By: | Fander Falconi (Facultad Latinoamericana de Ciencias Sociales, Ecuador); Rafael Burbano (Departamento de Matemática, Escuela Politécnica Nacional, Ecuador); Pedro Cango (Facultad Latinoamericana de Ciencias Sociales, Ecuador) |
| Abstract: | La curva ambiental de Kuznets (CAK) examina la relación entre crecimiento económico y calidad ambiental. Esta hipótesis asume que en el corto plazo el desarrollo económico empeora el medio ambiente; pero en el largo plazo, a partir de un cierto nivel de ingresos, el crecimiento económico provoca menores niveles de contaminación. La curva ambiental de Kuznets asume la forma de una U invertida. Bajo este supuesto, de manera coherente con la evidencia empírica, el presente estudio demuestra que solo en ciertos países desarrollados se verifica la hipótesis de una curva ambiental de Kuznets entre el ingreso per cápita y las emisiones de dióxido de carbono (CO2) per cápita. Sin embargo, dado que el CO2 es el principal gas de efecto invernadero que provoca el cambio climático global, esta investigación examina la relación entre las emisiones globales de CO2 y el ingreso per cápita. Con este objetivo, utilizamos una regresión por tramos. Los resultados muestran que a partir de un ingreso per cápita de $22.258 (US$ 2005) las emisiones de CO2 se estabilizan (no aumentan ni disminuyen). Es decir, no se cumple la curva ambiental de Kuznets, se cumpliría una forma débil de la CAK. El artículo analiza además las implicaciones de este hecho para el ambiente. |
| Keywords: | eficiencia energética, divergencia, brechas de conocimiento, curva ambiental de Kuznets |
| JEL: | Q57 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:flc:flcwps:2016_03&r=env |
| By: | Can, Muhlis; Gozgor, Giray |
| Abstract: | Environmental degradation is most often brought to the agenda by arousing the attention of scholars, and there has been an increase in the studies on this issue. This paper re-estimates the environmental Kuznets curve in France over the period of 1964–2011. To this end, the unit root test with one structural break and a cointegration analysis with multiple endogenous structural breaks are considered. The impacts of the energy consumption and the economic complexity on CO2 emissions are also included in dynamic empirical models. First, it is found that the environmental Kuznets curve hypothesis is valid in France in both the short and the long run. Second, the positive impact of energy consumption on CO2 emissions is also observed in the long run. Third, it is observed that a higher economic complexity suppresses CO2 emissions in the long run. The evidence suggests important environmental policy implications to suppress CO2 emissions in France. |
| Keywords: | environmental Kuznets curve; energy consumption; economic complexity; time series modeling; structural breaks; French economy |
| JEL: | C32 O13 Q55 Q56 |
| Date: | 2016–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70373&r=env |
| By: | Mohamad Taghvaee, Vahid; Seifi Aloo, Alireza; Khodaparast Shirazi, Jalil |
| Abstract: | Nobody on the planet is going to be untouched by the impacts of climate change. This study aims to arrange the various socioeconomic elasticities of environmental pollution in order of priority, depending on the length of time period, to establish the most effective policy. We employed a simultaneous equations system to find out the various socioeconomic elasticities in the long run and short run in Iran during 1974-2012. Based on the results, per capita CO2 emissions, GDP, energy consumption show the strongest interactions (relationships and elasticities) in the equations system as a whole in the long run. Moreover, it is the trade openness, labour force, financial development, and urbanization which show the most decisive effects in the short run. So the effectiveness of the system variables depends on the time period. Trade openness, labour force, and financial development play the most leading role in the short run, notwithstanding their limited role in the long run. However, energy consumption elasticity of CO2 emissions and urbanization elasticity of energy consumption are among the largest elasticities both in short run and long run. Therefore, energy consumption, economic growth and urbanization should be reduced and financial sector should be grown to decrease the environmental pollution. Moreover, economic growth is an effective factor for the long run; and trade openness and financial development are effective for the short run but urbanization and energy consumption are influential for both the long run and short run policies. |
| Keywords: | Energy Consumption; Environmental Pollution; Economic Growth |
| JEL: | Q4 Q5 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70508&r=env |
| By: | Anthony Heyes (Department of Economics, University of Ottawa); Soodeh Saberian (PhD student, Department of Economics, University of Ottawa) |
| Abstract: | Scientific evidence is that ozone exposure induces aggression, irritability, impulsivity and loss-of-control in humans, mice, monkeys and other animals. Consistent with this we use data from Los Angeles to generate the first evidence causally linking day-to-day variations in air quality to violent crime. The effect is substantial. Using IV methods with wind direction as instrument our preferred specification points to a 17% increase in assaults for a 10 ppb increase in daily fine particulate pollution. We also identify very small positive impacts of carbon monoxide (CO). The results satisfy a wide set of robustness checks. Cost-benefit analyses that fail to account for these effects will substantially under-estimate the case for air quality regulation. |
| Keywords: | Valuation of air quality, Non-health impacts of pollution, crime |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ott:wpaper:1514e&r=env |
| By: | Yeboah Asuamah, Samuel |
| Abstract: | The double impact effect of climate change and economic globalisation on the manufacturing sector is examined in the research for the period 1961-2013 for Ghana using annual time series data. The augmented Dickey Fuller (ADF) and Kwiatkowski–Phillips–Schmidt–Shin (KPSS) test were used to examine the nature of the effect of shock to climate change and economic globalisation on the manufacturing sector. The ordinary Least Square (OLS) method was used to examine the effect of climate change and economic globalisation on the manufacturing sector. The Johansen framework was use to establish significant long run equilibrium relationship among the variables. The vector error correction model was to trace the reconciliation of the transitory deviation from the short run disequilibrium to long run equilibrium. The granger-predictability test results revealed evidence of bidirectional causality between climate change and manufacturing sector productivity and between economic globalisation and manufacturing sector productivity. The findings of the study indicate that reducing the effect of climate change and economic globalisation will not have negative effect on the productivity of the manufacturing sector. Future studies should examine the effect of structural change on climate change and economic globalisation on the manufacturing sector. In addition, other proxies of economic globalisation and climate change should be modelled. |
| Keywords: | Carbon Emissions, Manufacturing Sector Productivity, Trade Openness |
| JEL: | Q54 Q56 Q57 |
| Date: | 2016–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70108&r=env |
| By: | Cecilia Bellora; Jean-Marc Bourgeon |
| Abstract: | Biotic factors such as pests create biodiversity effects that increase food production risks and decrease productivity when agriculture specializes. Under free trade, they reduce the specialization in food production that otherwise prevails in a Ricardian two-country setup. Pesticides allow farmers to reduce biodiversity effects, but they are damaging for the environment and for human health. When regulating farming practices under free trade, governments face a tradeoff: they are tempted to restrict the use of pesticides compared to under autarky because domestic consumption partly relies on imports and thus depends less on them, but they also want to preserve the competitiveness of their agricultural sector on international markets. Contrary to the environmental race-to-the-bottom tenet, we show that at the symmetric equilibrium under free trade restrictions on pesticides are generally more stringent than under autarky. As a result, trade increases the price volatility of crops produced by both countries, and, depending on the intensity of the biodiversity effects, of some or all of the crops that are country-specific. |
| Keywords: | Agricultural Trade;Food Prices;Agrobiodiversity;Pesticides |
| JEL: | F18 Q17 Q18 Q56 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2016-06&r=env |
| By: | Iwata, Hiroki |
| Abstract: | This study investigates the effect of an environmental regulation on the innovation choice of firms in an oligopoly. Most existing studies on environmental regulations and innovations examine the optimal behavior of firms when one innovation project is feasible. In our model, firms are allowed to choose from multiple types of innovation projects. Our main contributions are that we derive the conditions under which environmentally friendly and cost reducing innovations are selected in Bertrand competition and we show how environmental regulation affects innovation choice. |
| Keywords: | environmental regulation; innovation; the Porter hypothesis |
| JEL: | D21 Q55 Q58 |
| Date: | 2016–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70280&r=env |
| By: | Emily Cox (SPRU (Science Policy Research), University of Sussex) |
| Abstract: | As part of a growing body of research into potential ways of achieving a secure transition to a low-carbon energy system, this paper assesses the future security of the UK electricity system in a low-carbon context. A new mixed-method set of indicators for assessing security of both supply and demand has been developed and applied to a set of three transition pathways for the UK electricity system, all of which seek to reduce UK carbon emissions by 80% by 2050. This paper uses the results to highlight some of the key risks and trade-offs which may emerge under different routes to a low-carbon electricity transition. In particular, the results indicate that a major risk may be experienced by a lack of flexible, responsive supply capacity in low-carbon electricity pathways. A trade-off is also identified between ‘affordability’ and ‘environmental sustainability’ objectives. The paper finds that energy security is often conceptualised as the avoidance of causes of insecurity (such as insecure fuel imports), but that an equally important aspect of security lies in maximising responses to insecurity, for example by increasing the flexibility and responsiveness of both supply and demand. |
| Keywords: | energy security; low-carbon transition; electricity systems |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2016-07&r=env |
| By: | Heindl, Peter; Kanschik, Philipp |
| Abstract: | We investigate the prospects of voluntary ecological sufficiency for environmental and climate policy under the constraints implied by political liberalism. We find that freedom of choice restricts sufficiency to rather wealthy societies and that a sufficiency threshold cannot be derived by referring to the poor. Sufficiency can be in conflict with the demands of social justice, i.e. if the sufficiency threshold is below the social minimum implied by social justice. Benefits from sufficiency are highly related to individual perceptions. Such benefits cannot be expressed in a standard preference framework. Consequently, alternative measures of welfare and inequality are required if sufficiency is a significant phenomenon in society. 'Standard' environmental policies can have a pronounced interaction with voluntary sufficiency, i.e. if 'quantity regulation' is present. Overall, the voluntary notion of sufficiency causes a dilemma as sufficiency is largely a matter of civil society. However, voluntary sufficiency is expected to make important contributions to the preservation of ecological resources if properly balanced with social and environmental policies and framed by public discursive control. |
| Keywords: | ecological sufficiency,freedom,distributive justice,environmental policy,climate policy |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16023&r=env |
| By: | International Food Policy Research Institute (IFPRI) |
| Abstract: | The Global Food Policy Report is IFPRI’s flagship publication. This year’s annual report examines major food policy issues, global and regional developments, and commitments made in 2015, and presents data on key food policy indicators. The report also proposes key policy options for 2016 and beyond to achieve the Sustainable Development Goals. In 2015, the global community made major commitments on sustainable development and climate change. The global food system lies at the heart of these commitments—and we will only be able to meet the new goals if we work to transform our food system to be more inclusive, climate-smart, sustainable, efficient, nutrition- and health-driven, and business-friendly. |
| Keywords: | agricultural research; agricultural development; economic development; agricultural policies; governance; poverty; conflicts; food security; food policies; climate change; sustainability; water; water management; nutrition; food consumption; malnutrition; health; land degradation; land management; soil fertility; soil carbon; energy; smallholders; markets; value chains; gender; women; resilience; social protection; social safety nets; post harvest losses; food loss and waste; spillage; spoilage; sustainable development goals (SDGs); Africa South of Sahara; South Asia; Latin America; Africa; Asia; South America; Americas |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:synops:9780896299795&r=env |
| By: | Chhibber, Ajay (National Institute of Public Finance and Policy) |
| Abstract: | The Sustainable Development Goals - SDGs with 17 goals and 169 targets were adopted by world leaders in September, 2015. This paper argues that if the world had problems monitoring the MDGs - with 8 goals and 21 targets, it will find it impossible to track the SDGs. It recommends focusing on 60 highest priority targets. It also highlights the synergies and trade-offs among the various goals - especially between growth, inequality and sustainability which countries and the world will have to navigate. The Addis Ababa Action Agenda (AAAA), ostensibly, the financing plan for the SDGs widens the scope of development financing to include private and domestic financing - moving from billions to trillions. But such an approach also dilutes global responsibility for development and climate financing. The paper suggests an evaluation framework for assessing the AAAA and ensuring that the synergies among the SDGs are exploited and the trade-offs confronted. The paper suggests a pathways approach with concurrent evaluation every five years to assess and adjust programmes and policies. |
| Keywords: | Economic Development ; Economic Impact ; Environment ; Growth ; Sustainable Growth ; Technological Change ; Technology Adoption ; Sustainability ; International Environmental Policy ; Environmental Economics ; Alternative Energy Source |
| JEL: | O33 O44 Q28 Q5 Q42 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:16/166&r=env |
| By: | Angelo Antoci; Marcello Galeotti; Serena Sordi |
| Abstract: | This paper analyzes the dynamics of a small open economy characterized by two sectors (a farming sector and an industrial sector), heterogeneous agents (workers and entrepreneurs) and free inter-sectoral labor mobility. Labor productivity in the farming sector is negatively affected by environmental pollution generated by both sectors. Labor productivity in the industrial sector is positively affected by physical capital accumulated by entrepreneurs. We show that, as in the seminal contribution by Matsuyama (1992), low productivity of labor in the farming sector can be an engine of the industrialization process. However, in contrast with Matsuyama’s results, our analysis shows that the accumulation of pollution may fuel a self-enforcing process such that the expansion of the industrial sector generates a decrease in workers’ revenues. |
| Keywords: | Two-sector model; structural change; negative externalities; pollution; self-protection behavior |
| JEL: | D62 E32 C61 B41 E12 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:725&r=env |
| By: | Richard S.J. Tol (UK Department of Economics, University of Sussex, UK Institute for Environmental Studies and Department of Spatial Economics, Vrije Universiteit, Amsterdam, The Netherlands Tinbergen Institute, Amsterdam, The Netherlands); David Anthoff (University of California, Berkeley, Energy and Resources Group, 310 Barrows Hall # 3050, Berkeley, CA 94703, USA); Francisco Estrada (Universidad Nacional Autónoma de México, Circuito Exterior S/N, Mexico DF, 04510; Institute for Environmental Studies, Vrije Universiteit Amsterdam) |
| Abstract: | Past climatic changes were caused by a slowdown of the thermohaline circulation. We use results from experiments with three climate models to show that the expected cooling due to a slowdown of the thermohaline circulation is less in magnitude than the expected warming due to increasing greenhouse gas concentrations. The integrated assessment model FUND and a meta-analysis of climate impacts are used to evaluate the change in human welfare. We find modest but by and large positive effects on human welfare since a slowdown of the thermohaline circulation implies decelerated warming. |
| Keywords: | Climate change; thermohaline circulation; integrated assessment; climate impacts |
| JEL: | Q54 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:8516&r=env |
| By: | Gabriel Chan (Humphrey School of Public Affairs, University of Minnesota); Carlo Carraro (University of Venice and Fondazione Eni Enrico Mattei); Ottmar Edenhofer (Mercator Research Institute on Global Commons and Climate Change and Potsdam Institute for Climate Impact Research); Charles Kolstad (Stanford University); Robert Stavins (John F. Kennedy School of Government, Harvard University) |
| Abstract: | The Intergovernmental Panel on Climate Change (IPCC) is broadly viewed as the world’s most legitimate scientific assessment body that periodically assesses the economics of climate change (among many other topics) for policy audiences. However, growing procedural inefficiencies and limitations to substantive coverage have made the IPCC an increasingly unattractive forum for the most qualified climate economists. Drawing on our observations and personal experience working on the most recent IPCC report, published last year, we propose four reforms to the IPCC’s process that we believe will lower the cost for volunteering as an IPCC author: improving interactions between governments and academics, making IPCC operations more efficient, clarifying and strengthening conflict of interest rules, and expanding outreach. We also propose three reforms to the IPCC’s substantive coverage to clarify the IPCC’s role and to make participation as an author more intellectually rewarding: complementing the IPCC with other initiatives, improving the integration of economics with other disciplines, and providing complete data for policymakers to make decisions. Despite the distinct characteristics of the IPCC that create challenges for authors unlike those in any other review body, we continue to believe in the importance of the IPCC for providing the most visible line of public communication between the scholarly community and policymakers. |
| Keywords: | Scientific Assessment, Intergovernmental Panel on Climate Change (IPCC), Scientific Communication |
| JEL: | Q5 Q58 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2016.12&r=env |
| By: | Emanuele Campiglio |
| Abstract: | It is widely acknowledged that introducing a price on carbon represents a crucial precondition for filling the current gap in low-carbon investment. However, as this paper argues, carbon pricing in itself may not be sufficient. This is due to the existence of market failures in the process of creation and allocation of credit that may lead commercial banks – the most important source of external finance for firms – not to respond as expected to price signals. Under certain economic conditions, banks would shy away from lending to low-carbon activities even in presence of a carbon price. This possibility calls for the implementation of additional policies not based on prices. In particular, the paper discusses the potential role of monetary policies and macroprudential financial regulation: modifying the incentives and constraints that banks face when deciding their lending strategy - through, for instance, a differentiation of reserve requirements according to the destination of lending - may fruitfully expand credit creation directed towards low-carbon sectors. This seems to be especially feasible in emerging economies, where the central banking framework usually allows for a stronger public control on credit allocation and a wider range of monetary policy instruments than the sole interest rate. |
| Keywords: | green investment; low-carbon finance; banking; credit creation; green macroprudential regulation; monetary policy |
| JEL: | E50 G20 Q56 |
| Date: | 2015–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:65146&r=env |
| By: | Victoria Y. Fan; Dean T. Jamison; Lawrence H. Summers |
| Abstract: | Estimates of the long-term annual cost of global warming lie in the range of 0.2-2% of global income. This high cost has generated widespread political concern and commitment as manifested in the Paris agreements of December, 2015. Analyses in this paper suggest that the expected annual cost of pandemic influenza falls in the same range as does that of climate change although toward the low end. In any given year a small likelihood exists that the world will again suffer a very severe flu pandemic akin to the one of 1918. Even a moderately severe pandemic, of which at least 6 have occurred since 1700, could lead to 2 million or more excess deaths. World Bank and other work has assessed the probable income loss from a severe pandemic at 4-5% of global GNI. The economics literature points to a very high intrinsic value of mortality risk, a value that GNI fails to capture. In this paper we use findings from that literature to generate an estimate of pandemic cost that is inclusive of both income loss and the cost of elevated mortality. We present results on an expected annual basis using reasonable (although highly uncertain) estimates of the annual probabilities of pandemics in two bands of severity. We find: 1. Expected pandemic deaths exceed 700,000 per year worldwide with an associated annual mortality cost of estimated at $490 billion. We use published figures to estimate expected income loss at $80 billion per year and hence the inclusive cost to be $570 billion per year or 0.7% of global income (range: 0.4-1.0%). 2. For moderately severe pandemics about 40% of inclusive cost results from income loss. For severe pandemics this fraction declines to 12%: the intrinsic cost of elevated mortality becomes completely dominant. 3. The estimates of mortality cost as a % of GNI range from around 1.6% in lower-middle income countries down to 0.3% in high-income countries, mostly as a result of much higher pandemic death rates in lower-income environments. 4. The distribution of pandemic severity has an exceptionally fat tail: about 95% of the expected cost results from pandemics that would be expected to kill over 7 million people worldwide. |
| JEL: | H51 I15 I18 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22137&r=env |
| By: | Achenbach, Hermann; Rüter, Sebastian |
| Abstract: | Durch Energieeinsparungen in der Nutzungsphase eines Gebäudes gewinnen Produktions-, Konstruktions- und Entsorgungsphase eines Gebäudes immer mehr an Bedeutung. Für eine ganzheitliche Nachhaltigkeitsbewertung hat das Europäische Komitee für Normung (CEN) daher einen horizontalen Normensatz entwickelt, der u.a. die Umweltbewertung von Bauprodukten und Gebäuden über ihren gesamten Lebensweg ermöglicht (DIN EN 15804/15978). Um die Umweltwirkungen der Produktions- und Konstruktionsphase von in Deutschland hergestellten Bauelementen (1 m2 Innen-/Außenwand, 1 m2 Dachelement, 1 m2 Deckenelement) sowie durchschnittlichen Fertighäusern in Holztafel- und Holzskelettbauweise zu erfassen, wurde eine Ökobilanzierung gemäß den aktuellen Europäischen Normen durchgeführt. Die erarbeiteten Ökobilanzdaten repräsentieren den Durchschnitt von 12 Mitgliedsunternehmen des Bund Deutscher Fertigbau e.V. (BDF). Neben der Bereitstellung durchschnittlicher Ökobilanzdaten liegt ein methodischer Fokus der Arbeit auf der Anwendung der modularen Lebenszyklusbetrachtung nach DIN EN 15804/15978 auf ein Konstruktionssystem mit hohem Vorfertigungsgrad. Um den Anforderungen von DIN EN 15804 gerecht zu werden, mussten die Sachbilanzdaten der deklarierten/funktionellen Einheiten auf Basis von Jahresdaten der einzelnen Werkstandorte berechnet werden. Die größte Herausforderung bestand somit darin, ein Modell zu entwickeln, das die jährlichen auf Werksebene auftretenden Input- und Outputflüsse auf die deklarierten/ funktionellen Einheiten umrechnet. [...] |
| Abstract: | Energy savings in the use phase of a buildings' life cycle increased the relative importance of the environmental impacts of the product-, construction- and end-of-life stages of a building. Thus, the European Committee for Standardization (CEN) has developed a set of horizontal standards that enables the sustainability assessment of construction works including the evaluation of associated environmental impacts of building products and buildings over its entire life cycle (EN 15804/15978). Consistent with the European state-of-the-art standards a life cycle assessment (LCA) was carried out to determine the environmental impact of the production and construction stage of building elements (1 m2 inner/outer wall, 1 m2 roof element, 1 m ceiling element) and an average prefabricated timber house produced in Germany. Besides the supply of average LCA-data methodical aspects are discussed. A particular focus was set on the application of the modular life cycleprinciple according to EN 15804/15978 to construction systems with a high level of prefabrication. In order to be in line with EN 15804 the life cycle inventories (LCI) of the declared/functional units had to be calculated by annual data of each factory site (house manufactories). Thus, the main challenge was to develop a model that calculates the annual input- and output-flows to the defined declared/functional units on factory level. [...] |
| Keywords: | Ökobilanzierung,Holzgebäude,Fertigbau,Datenerhebung,Nachhaltiges Bauen,life cycle assessment,timber houses,prefabricated construction,data collection,sustainable building |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:jhtire:38&r=env |
| By: | Curtis, John; Lynch, Muireann Á.; Zubiate, Laura |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb2015/4/1&r=env |
| By: | Christoph Bühren (University of Kassel); Maria Daskalakis (University of Kassel) |
| Abstract: | Which behavior-based interventions are more appropriate to induce energy saving: energy saving goals with or without incentive, energy saving products, environmentally related information, social comparison or competition? We try to answer this question in a comprehensive study. First, we designed energy bills with different behavioral interventions. Second, we evaluated their appropriateness in an empirical survey with 457 participants. Third, we tested behavioral consequences in real effort lab experiments with 550 subjects in 11 treatments and one baseline. Our results indicate that monetary incentives to save energy might foster the intention to invest effort in energy saving but backfire if factual performance is required. Instead, fostering non-incentivized self-set goals and providing social comparison induced substantial effort to protect the environment. Non-incentivized competition to save energy provided the best results. Our study concludes with implications for practical policy design and further need of research. |
| Keywords: | Environmental behavior; Goals; Incentives; Social Comparison; Competition; Experiment |
| JEL: | D03 D12 C91 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201534&r=env |
| By: | Will McDowall; Dimitri Zenghelis; Paul Drummond |
| Abstract: | The CCCEP Policy Innovation fund supported a project to explore the feasibility and perceived usefulness of an indicator of confidence in climate change policies. This final report presents the analysis that was undertaken by the project team, the outcomes of a workshop, and highlights ongoing steps to further develop the work. A stakeholder workshop was held to inform the proposed indicator. This took place on November 18th 2015 at UCL (see the annexes for a list of participants, and for the slides presented at the workshop by the project team). Prior to the workshop, a discussion paper was developed and circulated to participants. This report first provides the background and rationale of the idea itself, and examines why an indicator of confidence in policy might be useful. Section 3 then examines key issues relating to the scope and focus of such an indicator, and illustrates the views of stakeholders that participated in the project workshop on these issues. Sections 4 and 5 examine existing attempts or methods for measuring confidence or policy uncertainty in climate and energy fields, and in other related fields, and draws lessons for how a better climate policy confidence indicator might be developed. A summary of the methodological options for developing an indicator is presented in section 6, while section 7 draws conclusions and highlights next steps. Throughout the report, the perspectives of stakeholders consulted during the workshop are provided in text boxes. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp231&r=env |
| By: | Juan Carlos Matallín-Sáez (Department of Finance & Accounting, Universitat Jaume I, Castellón, Spain); Amparo Soler-Domínguez (Department of Finance & Accounting, Universitat Jaume I, Castellón, Spain); Emili Tortosa-Ausina (IVIE, Valencia and Department of Economics, Universidad Jaume I, Castellón, Spain) |
| Abstract: | This paper analyses the performance of US social responsible (SR) mutual funds in relation to the fund’s ethical strategy focus and whether the business cycle is in a state of expansion or recession. Our results show that in aggregated terms the abnormal performance of SR funds is negative and there are no significant differences based on their ethical strategy focus: environmental, ESG, religious and undefined. In general we also find no significant differences in performance according the state of the business cycle. In terms of methodology our analysis shows the relevance of considering a benchmark to cover idiosyncratic risks linked to the asset classes in which the fund invests according to its ethical commitments. This effect is especially relevant in the case of environmental funds due to the poor performance of the renewable energy industry since the 2008 financial crisis as a result of changes in green government policy and lower oil prices. Thus, part of the mutual fund performance will not be linked to managers but rather to the behaviour of these asset classes. |
| Keywords: | Mutual fund, performance, business cycle, environmental, ESG, SRI |
| JEL: | G23 G11 M14 Q56 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2016/03&r=env |
| By: | Kris Bachus (HIVA, KU Leuven); Kristine Van Herck (HIVA, KU Leuven); Lize Van Dyck (HIVA, KU Leuven) |
| Abstract: | This research paper provides an overview of the main international climate finance and governance bodies, such as the Green Climate Fund (GCF), where Belgium was a Board member in 2015. The specific objectives of the study are to provide a comprehensive overview of the financial instruments that a donor can use to make contributions to the GCF taking into account the aim of the GCF and the institutional context (“upstream financial instruments”), the financial instruments that the Board of the GCF and national and regional intermediaries can use to mobilize private finance (“instream financial instruments”) and the financial instruments that the Board of the GCF can use to finance projects (“downstream financial instruments”). |
| Keywords: | Green Climate Fund, climate finance, climate flows, climate-related development finance, climate change, UNFCCC |
| JEL: | F35 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:nam:befdwp:8&r=env |
| By: | Jesus Ramos-Martin (Facultad Latinoamericana de Ciencias Sociales, Ecuador) |
| Abstract: | New or revived concepts such as degrowth and the knowledge economy represent a necessary criticism to the conventional view on economic growth, especially in regard to their environmental criticism. Both ideas are related as degrowth needs the application of knowledge in order to be operationalised and both share as a desirable outcome the reduction of working time. However, both concepts also bear common flaws in their criticism, due to the lack of attention in their analysis of the biophysical side of the economic process that has been analysed in approaches such as societal metabolism. The document discusses these weaknesses with the aim of stirring the much needed debate on the limits to growth. |
| Keywords: | Degrowth, knowledge, sustainability, complexity, societal metabolism |
| JEL: | O11 O44 Q43 Q57 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:flc:flcwps:2016_04&r=env |
| By: | Teresa Weiss |
| Abstract: | This paper summarizes future research questions for each driver of change based on the outcomes of the WWWforEurope project and the derived policy recommendations. Firstly, a broad research question is suggested for each driver indicating the main focus of interest. In a second step, several analytical aspects as well as policy aspects are defined to specify the broad research questions (for an overview of all analytical and policy aspects see Aiginger 2016, p. 128). While focussing on the seven drivers of change when formulating the research questions, attention was also paid to so-called cross-cutting issues (e.g. gender aspects, strategies for implementing the Paris climate agreements). The research gaps are based on the fundamental insight of WWWforEurope that highlights the importance of applying a comprehensive and integrated approach for achieving the three strategic project goals instead of following a silo approach. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2016:m:3:d:0:i:115&r=env |
| By: | Tim Jackson; Peter Victor; Asjad Naqvi |
| Abstract: | Modern western economies (in the Eurozone and elsewhere) face a number of challenges over the coming decades. Achieving full employment, meeting climate change and other key environmental targets, and reducing inequality rank amongst the highest of these. The conventional route to achieving these goals has been to pursue economic growth. But this route has created two critical problems for modern economies. The first is that higher growth leads (ceteris parabis) to higher environmental impact. The second is that fragility in financial balances has accompanied relentless demand expansion. The prevailing global response to the first problem has been to encourage a decoupling of output from impacts by investing in green technologies (green growth). But this response runs the risk of exacerbating problems associated with the over-leveraging of households, firms and governments and places undue confidence in unproven and imagined technologies. An alternative approach is to reduce the pace of growth and to restructure economies around green services (post-growth). But the potential dangers of declining growth rates lie in increased inequality and in rising unemployment. Some more fundamental arguments have also been made against the feasibility of interest-bearing debt within a post-growth economy. The work described in this paper was motivated by the need to address these fundamental dilemmas and to inform the debate that has emerged in recent years about the relative merits of green growth and post-growth scenarios. In pursuit of this aim we have developed a suite of macroeconomic models based on the methodology of Post-Keynesian Stock Flow Consistent (SFC) system dynamics. Taken together these models represent the first steps in constructing a new macroeconomic synthesis capable of exploring the economic and financial dimensions of an economy confronting resource or environmental constraints. Such an ecological macroeconomics includes an account of basic macroeconomic variables such as the GDP, consumption, investment, saving, public spending, employment, and productivity. It also accounts for the performance of the economy in terms of financial balances, net lending positions, money supply, distributional equity and financial stability. This report illustrates the utility of this new approach through a number of specific analyses and scenario explorations. These include an assessment of the Piketty hypothesis (that slow growth increases inequality), an analysis of the ‘growth imperative’ hypothesis (that interest bearing debt requires economic growth for stability), and an analysis of the financial and monetary implications of green investment policies. The work also assesses the scope for fiscal policy to improve social and environmental outcomes. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2016:m:3:d:0:i:114&r=env |
| By: | John Curtis; Benjamin Breen |
| Abstract: | On-site survey data from coarse and game angling sites in Ireland is used to estimate count data models of recreational angling demand. To investigate the existence of preference heterogeneity across angler-types, three demand functions are estimated according to angler type; coarse, game and a combination of both. Comparison of these demand functions indicates that the fishery characteristics which drive demand differ depending on angler-specific characteristics. For example treating all anglers as an homogeneous group led to results suggesting angling demand is higher where there is a greater provision of angling services (such as guide-hire and tackle shops). While this relationship pertained for the game angling demand function, angling service levels had no effect on coarse angling demand. Water quality, which was not found to be significant in driving demand in the combined case, was identified as a significant determinant of angling demand in game fisheries. Overall the results strongly support the need to specifically address angler characteristics when analysing angler preferences. Improved survey design that attains more detailed information such as anglers' quarry-type, skill level, etc. will improve the ability of analysts to understand angler preferences and provide more effective policy recommendations. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp529&r=env |
| By: | Tausch, Arno |
| Abstract: | In this book, we present a first empirical reflection on ‘smart development’, its measurement and its possible ‘drivers’ and ‘bottlenecks’. We first provide cross-national data, how much ecological footprint is used in the nations of the world system to ‘deliver’ a given amount of democracy, economic growth, gender equality, human development, research and development, and social cohesion. To this end, we first developed UNDP-type performance indicators from current standard international comparative, cross-national social science data on these six main dimensions of development and on the combined performance on the six dimensions (a UNDP type ‘human development index plus’). We then show the non-linear standard OLS regression trade-offs between ecological footprints per capita and their square on these six components of development and the overall super-UNDP development performance index, derived from them. The residuals from these regressions are our new measures of smart development: a maximum of democracy, economic growth, gender equality, human development, research and development, social cohesion, and their combination with a minimum of ecological footprint. Our estimates underline the enormous importance of the positive effects of received worker remittances on smart development. |
| Keywords: | C43 - Index Numbers and Aggregation Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth F22 - International Migration F-24 – Remittances |
| JEL: | C43 F22 F24 Q56 |
| Date: | 2016–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70204&r=env |