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on Environmental Economics |
| By: | Anubhab Pattanayak (Lecturer, Madras School of Economics); K. S. Kavi Kumar (Professor, Madras School of Economics) |
| Abstract: | With the objective of assessing climatic impacts at the regional (i.e., subnational) level, past studies employing statistical models have largely followed the approach of uniformly applying the climate response function estimated at the aggregate (national) level to extrapolate/interpolate the impacts for the region(s) of interest. Although impact estimates based on this approach could loosely indicate the magnitude of regional impacts (or at the least the direction of such impacts), they may exhibit significant overestimation or underestimation of the true regional impacts. Thus, following this approach could be misleading and will be inappropriate if the objective is effective adaptation planning and policy implementation at the regional level to withstand future climate change impacts. The present study is an extension of this literature and examines the above issue through an assessment of regional weather sensitivity of rice crop in the Indian context. Using disaggregated (district) level weather and non-weather data during 1969-2007 and region-specific rice growing season information, the crop-yield response functions for two dominant rice growing regions (East and South) are estimated. The study finds significant adverse effects of higher daytime temperature during all phases of crop growth on rice yield for both regions. However, the effects of higher nighttime temperature and rainfall across growth phases tend to differ across regions. The paper then examines whether an aggregate (all-India) response function represents well the regional impacts on rice yield due to a hypothetical scenario of pre-1960 climatic conditions prevailing during the period of study. Accordingly, comparison is made between regional impacts simulated using the all-India yield response function and impacts simulated using the region-specific yield response functions. The analysis suggests that regional impacts are overestimated when simulated using an all-India yield response function instead of using the region-specific yield response function. Regional impacts simulation results indicate that the average yield loss for the Southern and the Eastern regions due to past changes in climate has been to the tune of ?8 per cent and ?5 per cent respectively. Regional distribution of impacts shows that majority of districts in each region, especially in the East, suffered yield losses due to climate change in the past. The study highlights the need to conduct regional crop-weather sensitivity assessment using region-specific characteristics to understand regional vulnerability to climatic and non-climatic stressors and for region-level adaptation planning to tackle climate change. |
| Keywords: | Rice; India; Climate Change; Regional Impacts; Poverty |
| JEL: | Q10 Q54 R50 I30 |
| URL: | http://d.repec.org/n?u=RePEc:mad:wpaper:2017-162&r=env |
| By: | Catherine Benjamin (Université de Rennes 1, CREM UMR CNRS 6211, France); Ewen Gallic (Université de Rennes 1, CREM UMR CNRS 6211, France) |
| Abstract: | The effects of climate change on European agriculture under different alternative scenarios are empirically studied. Empirical results exhibit the effects of seasonal weather variables on both mean yields and the variance of wheat and corn yields. Prices show a positive and significant impact on wheat yields for northern Europe, only after the CAP reform. Prior to this reform, the effect of prices on yields were not statistically different from zero. The empirical models are then used to assess the effect of climate change on yields. Four climate projection scenarios reflecting greenhouse gas concentration trajectories are tested. Mitigate spatio-temporal effects are found. Wheat yields would increase at the European scale under most scenarios, but the gains would decrease with time for regions in the north in the long-run. Results are less optimistic for corn yields. In the short-run, some northern regions would experience gains in yields, but these gains would transform into losses in the long-run. Those losses would even be higher in the south of Europe. |
| Keywords: | Agriculture, Climate change, Crop Yields, Prices, Variance of Yields |
| JEL: | C23 Q15 Q54 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2017-16&r=env |
| By: | Claudio, Morana; Giacomo, Sbrana |
| Abstract: | Concurrent with the rapid development of the market for catastrophe (cat) bonds, a steady decline in their risk premia has been observed. Whether the latter trend is consistent with the evolution of natural disasters risk is an open question. Indeed, a large share of outstanding risk capital in the cat bonds market appears to be exposed to some climate change-related risk as, for instance, hurricane risk, which global warming is expected to enhance. This paper addresses the above issue by assessing the global warming evidence, its implications for the natural environment and the drivers of cat bonds risk premia. We find that radiative forcing, i.e. the net insolation absorbed by the Earth, drives the warming trend in temperature anomalies and the trend evolution of natural phenomena, such as ENSO and Atlantic hurricanes, enhancing their disruptive effects. Hence, in the light of the ongoing contributions of human activity to radiative forcing, i.e., greenhouse gases emissions, natural disasters risk appears to be on a raising trend. Yet, the latter does not appear to have been accurately priced in the cat bonds market so far. In fact, while we find that the falling trend in cat bonds multiples is accounted by the expansionary monetary stance pursued by the Fed, we do also find evidence of significant undervaluation of natural disasters risk. |
| Keywords: | Cat bonds, risk premia/multiples, temperature anomalies, global warming, radiative forcing, ENSO, El Niño, Atlantic hurricanes, dynamic conditional correlation model |
| JEL: | G11 G23 C32 |
| Date: | 2017–12–25 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:377&r=env |
| By: | Raju Mandal (Assam University, Silchar, Cachar, Assam 788011 (India)); Hiranya Nath (Department of Economics and International Business, Sam Houston State University) |
| Abstract: | This paper reviews the extant literature on the impacts of climate change on agriculture. We first discuss various methodologies used to study climatic impacts on crop yield. We then present a brief survey of studies from across the globe followed by a discussion on India-specific research. The empirical evidence on the effects of climate change on agriculture has been mixed: while some studies find evidence of adverse impacts others report evidence of positive effects. Applying nonparametric median regression technique to state-level time series data on average yield of rice and wheat, and on temperature and rainfall from 1968 to 2001, we further investigate the impacts of changes in these climate variables on rice and wheat yields in India. The results indicate that rising temperature has a significant negative impact and rising rainfall variability has a significant positive impact on the average rice yield. Furthermore, an increase in temperature variability over the crop year appears to have a significant positive impact on wheat yield. |
| Keywords: | India, Rice yield, Wheat yield, Climate change, Median regression |
| JEL: | Q11 Q54 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:shs:wpaper:1705&r=env |
| By: | Catherine Benjamin (Université de Rennes 1, CREM UMR CNRS 6211, France); Ewen Gallic (Université de Rennes 1, CREM UMR CNRS 6211, France) |
| Abstract: | The effects of climate change on Indian agriculture under different alternative climate scenarios are empirically studied. This article uses the Ricardian approach that links net revenues per acre as a function of climate, farm and households’characteristics. We estimate the net revenues per acre function using cross-sectional data and quantile regression. Empirical results show that farms with higher net revenues per acre look to be more affected by climate variables in magnitude. Farms with lower net revenues per acre tend to benefit more from crops mixing than farms with high income per acre. In a second step, we implement two climate scenarios which differ according to the assumptions on changes on average temperature and total rainfall. Farms with low net revenues per acre experience losses less important in magnitude but larger in percent change than farms with high net revenues per acre. At the district level, results show more heterogeneity. Under both scenarios, districts in the North of India tend to experience a decrease in net revenues per acre while an opposed effect is found for districts in the South of the country. |
| Keywords: | Climate change, Adaptation, Ricardian model, Developing countries, Quantile regression, Farmer’s behavior |
| JEL: | Q12 Q15 Q54 C21 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2017-15&r=env |
| By: | Pierre Courtois (CEEM ñ INRA); Charles FiguiËres (AMSE ñ Aix-Marseille University); ChloÈ Mulier (Innovation); Joakim Weill (Dept of Agricultural and Resource Economics, University of California, Davis) |
| Abstract: | Biological invasions entail massive biodiversity losses and tremendous economic impacts that justify significant management efforts. Because the funds available to control biological invasions are limited, there is a need to identify priority species. This paper first reviews current invasive species prioritization methods and explicitly highlights their pitfalls. We then construct a cost-benefit optimization framework that incorporates species utility, ecological value, distinctiveness, and species interactions. This framework offers the theoretical foundations of a simple method for the management of multiple invasive species under a limited budget. We provide an algorithm to operationalize this framework and render explicit the assumptions required to satisfy the management objective. |
| Keywords: | Biological invasion, Prioritization, cost-benefit, optimization, Diversity |
| JEL: | Q28 Q57 Q58 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:fae:ppaper:2017.06&r=env |
| By: | Pierre Courtois (CEEM – INRA); Charles Figuières (AMSE – Aix-Marseille University); Chloé Mulier (Innovation); Joakim Weill (Dept of Agricultural and Resource Economics, University of California, Davis) |
| Abstract: | Biological invasions entail massive biodiversity losses and tremendous economic impacts that justify significant management efforts. Because the funds available to control biological invasions are limited, there is a need to identify priority species. This paper first reviews current invasive species prioritization methods and explicitly highlights their pitfalls. We then construct a cost-benefit optimization framework that incorporates species utility, ecological value, distinctiveness, and species interactions. This framework offers the theoretical foundations of a simple method for the management of multiple invasive species under a limited budget. We provide an algorithm to operationalize this framework and render explicit the assumptions required to satisfy the management objective. |
| Keywords: | Biological invasion, Prioritization, cost-benefit, optimization, Diversity |
| JEL: | Q28 Q57 Q58 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2017.29&r=env |
| By: | Gaël Giraud (Centre d'Economie de la Sorbonne and Agence Française de Développement); Hadrien Lantremange (Centre d'Economie de la Sorbonne, Agence Française de Développement and Chaire Energie et Prospérité); Emeric Nicolas (Chaire Energy et Prospérité); Olivier Rech (Chaire Energie et Prospérité) |
| Abstract: | How could the burden of GHG emission reduction be shared among countries? We address this arguably basic question by purely statistical methods that do not rely on any normative judgment about the criteria according to which it should be answered. The sum of current Nationally Determined Contributions to reducing GHG emissions would result in an average temperature rise in 2100 of the order of 3°C to 3.2°C. Implementing policies that enable to achieve the objective of a worldwide average temperature rise below 2°C obviously requires setting a more consistent and efficient set of national emissions targets. While a scientific consensus has been reached about the global carbon budget that we are acing, given the 2°C target of the Paris Agreement, no such consensus prevails on how this budget is to be divided among countries. This paper proposes a Climate Liabilities Assessment Integrated Methodology (CLAIM) which enables to determine national GHG budgets compliant with any average temperature target and time horizon. Our methodology does neither resort to any scenario nor any simulation-based model. Rather, it computes the allocation of 2°C-compatible national carbon budgets which has a priori the highest probability of emerging from the international discussion, whatever being the criteria on which the latter might be based. As such it provides a framework ensuring the highest probability of reaching a consensus. In particular, it avoids the pitfall of arbitrarily assigning weights according, say, to “capacity” or “responsibility” criteria, and simultaneously unifies the different methodologies that have been proposed in the literature aiming at setting national GHG budgets. Sensitivity tests confirm the robustness of our methodology |
| Keywords: | climate change; global warming; GHG emissions; distribution of GHG emissions; emissions gap; 2°C scenario; carbon budget; Intended Nationally Determined Contributions |
| JEL: | Q54 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:17062&r=env |
| By: | Barbara Annicchiarico (CEIS & DEF, University of Rome "Tor Vergata"); Francesca Diluiso (DEF, University of Rome "Tor Vergata") |
| Abstract: | This paper presents a baseline dynamic general-equilibrium model of environmental policy for a two-country economy and studies the international transmission of several asymmetric shocks considering three different economy-wide greenhouse gases (GHG) emission regulations: (i) national cap-and-trade, (ii) carbon tax, and (iii) international cap-and-trade system allowing for cross-border allocation of emission permits. We find that international spillovers of shocks originated in one country are strongly influenced by the environmental regime put in place. We show that, while a national cap-and-trade system diminishes the international spillovers by dampening the response of the country hit by shocks, the cross-border reaction to supply-side shocks is found to be magnified under an international cap-and-trade system, while demand shocks are more intensively transmitted under a carbon tax. The pattern of trade and the underlying monetary regime in uence the cross-border transmission channels interacting with the environmental policy adopted. |
| Keywords: | Open Economy Macroeconomics, GHG Emission Control, Macroeconomic Dynamics |
| JEL: | F41 F42 E32 Q58 |
| Date: | 2017–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:423&r=env |
| By: | Alexandre Volle (Laboratoire CEE-M, Université Montpellier) |
| Abstract: | The present paper investigates the pricing behavior of a green firm competing against a brown firm where the polluting quality is sell in a perfect competitive market. The distorsion of the price to signal a green product is too high to face any demand. Pooling price equilibria emerge as most plausible as long as the brown firm has the possibility to mimic the pricing behavior of the green firm. A green producer is thus constrained to practice uninformative prices which can conduct it to leave the market. |
| Keywords: | Environmental Quality, Asymmetric Information, Price Signaling |
| JEL: | D43 D82 Q5 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2017.30&r=env |
| By: | Santosh Kumar Sahu (Assistant Professor, Madras School of Economics); Arjun Shatrunjay (Madras School of Economics) |
| Abstract: | The paper attempts to understand the significance of the Green Solow Model, in the context of a developing country such as India. It gives particular importance to the role of population density, in understanding the drawbacks of the Green Solow Model. It further extends the argument to analyse the impacts of the emission regulations on a developing country, by proving relationship between price level on one hand, and abatement costs and emissions on the other. Lastly, interactions between countries, given different price scenarios are studied |
| Keywords: | Green Solow Model, abatement costs, technology, emission regulations, India |
| JEL: | C70 O44 Q52 Q56 |
| URL: | http://d.repec.org/n?u=RePEc:mad:wpaper:2017-160&r=env |
| By: | Simon Quemin (LEDa-CGEMP, Paris-Dauphine University ñ PSL Research University & Climate Economics Chair, Paris); Christian de Perthuis (LEDa-CGEMP, Paris-Dauphine University ñ PSL Research University & Climate Economics Chair, Paris) |
| Abstract: | Linkages between Emissions Trading Systems can be an important element in forging the future global climate change architecture, but remain few and far between. This article develops a deterministic partial equilibrium model of bilateral linkage to compare various link restrictions in facilitating linkage negotiations, namely quantitative restrictions, border permit taxes, exchange and discount rates, and unilateral linkage. Because restrictions undermine cost-efficiency and generate rents, they should be used as transitory mechanisms to full linkage. Trial restricted-link periods may allow to test the effects of the link while containing its reach, spur cooperation and provide more time and flexibility in circumventing impediments to full linkage. While quantitative restrictions seem to be the natural route to a full link, they can lead to uncertain distributional effects and weakened price signals. These aspects are mitigated under a border tax on permits, but this policy seems harder to implement. Exchange rates have potential to adjust for programmes' stringencies and increase overall ambition, but are challenging to select. As experience corroborates, unilateral linkage may constitute a practical and promising approach. |
| Keywords: | Climate change, Climate policy architecture, Emissions trading, Linkage, Permit trade restrictions |
| JEL: | Q58 H23 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:fae:ppaper:2017.09&r=env |
| By: | Simon Quemin (LEDa-CGEMP, Paris-Dauphine University – PSL Research University & Climate Economics Chair, Paris); Christian de Perthuis (LEDa-CGEMP, Paris-Dauphine University – PSL Research University & Climate Economics Chair, Paris) |
| Abstract: | Linkages between Emissions Trading Systems can be an important element in forging the future global climate change architecture, but remain few and far between. This article develops a deterministic partial equilibrium model of bilateral linkage to compare various link restrictions in facilitating linkage negotiations, namely quantitative restrictions, border permit taxes, exchange and discount rates, and unilateral linkage. Because restrictions undermine cost-efficiency and generate rents, they should be used as transitory mechanisms to full linkage. Trial restricted-link periods may allow to test the effects of the link while containing its reach, spur cooperation and provide more time and flexibility in circumventing impediments to full linkage. While quantitative restrictions seem to be the natural route to a full link, they can lead to uncertain distributional effects and weakened price signals. These aspects are mitigated under a border tax on permits, but this policy seems harder to implement. Exchange rates have potential to adjust for programmes' stringencies and increase overall ambition, but are challenging to select. As experience corroborates, unilateral linkage may constitute a practical and promising approach. |
| Keywords: | Climate change, Climate policy architecture, Emissions trading, Linkage, Permit trade restrictions |
| JEL: | Q58 H23 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2017.31&r=env |
| By: | Loic Berger; Massimo Marinacci |
| Abstract: | We review recent models of choices under uncertainty that have been proposed in the economic literature. The framework that we propose is general and may be applied in many different fields of environmental economics. To illustrate, we provide a simple application in the context of an optimal mitigation policy. Our objective is to offer guidance to policy makers who face uncertainty when designing climate policy. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:igi:igierp:616&r=env |
| By: | Kerstin Gerling |
| Abstract: | Weather-related natural disasters and climate change pose interrelated macro-fiscal challenges. Using panel-VARX studies for a sample of 19 countries in Developing Asia during 1970 to 2015, this paper contributes new empirical evidence on the dynamic adjustment path of growth and key fiscal variables after severe weather-related disasters. It does not only show that output loss can be permanent, but even twice as large for cases of severe casualties or material damages than people affected. Meanwhile, key fiscal aggregates remain surprisingly stable. Event and case studies suggest that this can reflect both a deliberate policy choice or binding constraints. The latter can make governments respond through mitigating fiscal policy efforts such as ad hoc fiscal rebalancing and reprioritization. The findings help better customize disaster preparedness and mitigation efforts to countries’ risk exposure along a particular loss dimension. |
| Date: | 2017–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:17/235&r=env |
| By: | Zareena Begum Irfan,, Jayakumar S and Satarupa (Associate Professor, Madras School of Economics); Venkatachalam. L (Professor, Madras Institute of Development Studies, Gandhi Nagar, Adyar, Chennai); Jayakumar S (Associate Professor, Department of Ecology, Pondicherry University, Puducherry); Satarupa Rakshit (Research Associate, Madras School of Economics) |
| Abstract: | Wetlands play a key role in the ecological conservation, in environmental quality improvement, and in human habitat environment improvement. Primer field investigations, primary survey and series of stakeholder meetings were utilised to evaluate the performance of the wetland. It was done using the complex index system covering wider aspect to correlate the comparative status of both Tamil Nadu and Puducherry zone of the Ousteri wetland. Compared with the researches applying the ecosystem service evaluation method, the proposed scoring method in this study can evaluate on some important performance indices (aquatic vegetation coverage, plant community integrity, integrity of management operating system, stakeholders feedback on the wetland protection, public satisfaction) that cannot be ignored and unable to be transformed to a monetary form. The Delphi method was used to screen preset 35 subindicators prior to evaluation. By using Delphi and Analytic Hierarchy Process method, as well as the weighted linear combination model, the ecological-economic-social performances were obtained. This indices system was applied to the case of Ousteri wetland with respect to Puducherry and Tamil Nadu scenario separately. With the help of the Evaluation Index system (EIS) established in this study, decision makers can obtain more omni-visual information so that an ecological subsidy policy by incorporating rewards and punishments mechanisms according to the performance evaluations can be formulated to enable the greatest returns on investment in the wetland conservative measure. |
| Keywords: | Wetland, Performance Evaluation, Evaluation Index System, Conservation |
| JEL: | O13 Q15 Q56 N55 R11 |
| URL: | http://d.repec.org/n?u=RePEc:mad:wpaper:2017-155&r=env |
| By: | Misato Sato, Karsten Neuhoff, Vera Zipperer |
| Abstract: | Greenhouse gas emission benchmarks are widely implemented as a policy tool, as more countries move to implement carbon pricing mechanisms for industrial emissions. In particular, benchmarks are used to determine the level of free allowance allocation in emission trading schemes, which are distributed as a measure to prevent carbon leakage. This paper analyses how benchmark designs impact firms’ production and business model decisions, particularly focusing on the coverage of direct and indirect emissions in the benchmark scope. We develop an analytical model and use the example of a steel mill to analyze and quantify how scope of indirect emissions coverage affect incentives. We seek to clarify generalized principles for efficient benchmark design, that provide a predictable policy framework for innovation and investment to decarbonize energy intensive industry. |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp321&r=env |
| By: | Vera Zipperer; Misato Sato; Karsten Neuhoff |
| Abstract: | Greenhouse gas emission benchmarks are widely implemented as a policy tool, as more countries move to implement carbon pricing mechanisms for industrial emissions. In particular, benchmarks are used to determine the level of free allowance allocation in emission trading schemes, which are distributed as a measure to prevent carbon leakage. This paper analyses how benchmark designs impact firms’ production and business model decisions, particularly focusing on the coverage of direct and indirect emissions in the benchmark scope. We develop an analytical model and use the example of a steel mill to analyze and quantify how scope of indirect emissions coverage affect incentives. We seek to clarify generalized principles for efficient benchmark design, that provide a predictable policy framework for innovation and investment to decarbonize energy intensive industry. |
| Keywords: | Emissions Trading, Emission Benchmarking, Free allocation, Incentives, Low-Carbon Innovation |
| JEL: | D04 H25 L51 L61 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1712&r=env |
| By: | Zhang, Peng (Hong Kong Polytechnic University); Deschenes, Olivier (University of California, Santa Barbara); Meng, Kyle C. (University of California, Santa Barbara); Zhang, Junjie (Duke Kunshan University) |
| Abstract: | This paper uses detailed production data from a half million Chinese manufacturing plants over 1998-2007 to estimate the effects of temperature on firm-level total factor productivity (TFP), factor inputs, and output. We detect an inverted U- shaped relationship between temperature and TFP and show that it primarily drives the temperature-output effect. Both labor- and capital- intensive firms exhibit sensitivity to high temperatures. By mid 21st century, if no additional adaptation were to occur, we project that climate change will reduce Chinese manufacturing output annually by 12%, equivalent to a loss of $39.5 billion in 2007 dollars. This implies substantial local and global economic consequences as the Chinese manufacturing sector produces 32% of national GDP and supplies 12% of global exports. |
| Keywords: | manufacturing, productivity, climate change, China |
| JEL: | Q54 Q56 L60 O14 O44 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11132&r=env |
| By: | Adelina Gshwandtner; Cheul Jang; Richard McManus |
| Abstract: | Increased pollution leads to a constant decrease of drinking water quality worldwide. Due to safety concerns, unpleasant taste and odour only about 3% of the population in South Korea is drinking untreated tap water. The present study uses choice experiments and cost-benefit analysis to investigate the feasibility of installing advanced water treatments in Cheongju waterworks in South Korea. The waterworks is situated in the middle of the country and is providing more than half a million people with drinking water. The study shows that the lower bound of the median WTP for installing a new advanced water treatment system is about $2 US/month, which is similar to the average expenditures for bottled water per household in South Korea. Scenarios under which the instalment of the advanced water treatments is feasible are discussed together with environmental solutions in the long-run. |
| Keywords: | Drinking Water Quality, Water Pollution, Choice Experiments, Willingness to Pay, Random Parameter and Latent Class Logit, Cost-Benefit Analysis |
| JEL: | C19 C83 C90 D12 D61 Q25 Q51 Q53 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:ukc:ukcedp:1720&r=env |
| By: | Zareena Begum Irfan (Associate Professor, Madras School of Economics); Venkatachalam. L (Professor, Madras Institute of Development Studies, Gandhi Nagar, Adyar, Chennai); Jayakumar S (Associate Professor, Department of Ecology, Pondicherry University, Puducherry); Satarupa Rakshit (Research Associate, Madras School of Economics) |
| Abstract: | Land use/cover change is a major factor for global change because of its interactions with climate, cosystem processes, biodiversity, and, even more important, human activities, research on land use/cover change has become an important aspect of global change. The present research paper aims to investigate the land use changes over the time period, 2005 to 2014, in the Ousteri wetland. The information collected through the ecological, hydrological and geological analysis was used to carry out the quantitative research on Ousteri wetland land use/cover change. The temporal changes of land use characteristics were quantitatively analyzed and then the driving forces of land use changes were examined based on natural and artificial factors. As the result of natural factors and human disturbances, the area of wetland shrunk, bringing the conversion from wetland to terrestrial land use type. The annual conversion rates indicated the land use changes in Ousteri wetland. |
| Keywords: | Land use cover, Ousteri wetland, Dynamic Degree model, Ecosystem modification |
| JEL: | O13 Q15 Q56 N55 R11 |
| URL: | http://d.repec.org/n?u=RePEc:mad:wpaper:2017-156&r=env |
| By: | Hassan Benchekroun; Gerard C. van der Meijden; Cees A. Withagen |
| Abstract: | We show that OPEC’s market power contributes to global warming by enabling producers of relatively expensive and dirty oil to start producing before OPEC reserves are depleted. We fully characterize the equilibrium of a cartel-fringe model and use a calibration to examine the importance of this extraction sequence effect. While welfare under the cartel-fringe equilibrium can be significantly lower than under a first-best outcome, almost all of this welfare loss is due to the sequence effect. Moreover, the recent boom in shale oil reserves may reduce social welfare and renewables subsidies can increase the carbon content of current extraction. |
| Keywords: | cartel-fringe, climate policy, non-renewable resource, Herfindahl rule, limit pricing |
| JEL: | Q31 Q42 Q54 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6746&r=env |
| By: | Paulin Ibanda Kabaka (Centre de recherche Pau Droit Public - UPPA - Université de Pau et des Pays de l'Adour, UPPA - Université de Pau et des Pays de l'Adour, LAM - Les Afriques dans le monde - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | After several bibliographic research attempts concerning the Democratic Republic of Congo (DRC), we have not found any scientific article on forest taxation and its impact on sustainable forest management in this tropical forest country. However, the subject is fascinating in view of the interests and the actors in the presence following the forest fiscal reform implemented since 2002. This explains our determination to lead this study. |
| Abstract: | Après plusieurs tentatives de recherches bibliographiques concernant la République Démocratique du Congo (RDC), nous n'avons trouvé aucun article scientifique portant sur la fiscalité forestière et son impact sur la gestion durable des forêts dans ce pays forestier tropical. Pourtant le sujet est passionnant au regard des intérêts et des acteurs en présence consécutivement à la réforme fiscale forestière mise en oeuvre depuis 2002.Voilà ce qui explique notre détermination à vouloir mener cette étude. |
| Date: | 2017–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01620956&r=env |
| By: | Can Askan Mavi (UP1 UFR02 - Université Panthéon-Sorbonne - UFR d'Économie - UP1 - Université Panthéon-Sorbonne) |
| Abstract: | This paper aims to analyze the overlooked link between abrupt events and sustainability, through limit cycle analysis. We use the well known Calvo and Obstfeld (1988) framework in order to distinguish individual's and social planner's discount rate and show that individual discount rate could lead to a Hopf bifurcation, only if the economy is exposed to abrupt event risk. This result is in contrast with the literature which shows that individual discount rate does not have any effect on the optimum trajectory of aggregate consumption. More importantly, the existence of limit cycles implies that consumption and natural resource stock are exposed to cycles at the long run, meaning that the path of utility does not conform with the prominent Sustainable Development criterion. Lastly, we analyze the economic reasons behind limit cycles and show that protecting the environment makes limit cycles less likely to occur. |
| Date: | 2017–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01628682&r=env |
| By: | Dominique Bureau (CGDD-CEDD) |
| Abstract: | The concern for universal participation in the Paris Agreement has been costly in terms of ambition. In the absence of corrections to the trajectories envisioned for the 2030 horizon by national contributions, not only the carbon budget compatible with the objective of containing global warming below 2°C will be by far exceeded at this horizon, but the rupture to be made at that time and the emission reduction rates to be achieved beyond that point make the very feasibility of the 2°C objective problematic […]. |
| Keywords: | valeur d'option, négociation climatique |
| JEL: | Q50 Q54 Q56 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:fae:ppaper:2017.07&r=env |
| By: | Jerelyn Co (Ateneo de Manila University); Jason Allan Tan (Ateneo de Manila University); Ma. Regina Justina Estuar (Ateneo de Manila University); Kennedy Espina (Ateneo de Manila University) |
| Abstract: | Dengue remains to be a major public health concern in the Philippines, claiming hundreds of lives every year. Given limited data for deriving necessary epidemiological parameters in developing deterministic disease models, forecasting as a means in controlling and anticipating outbreaks remains a challenge. In this study, two time series models, namely Seasonal Autoregressive Integrated Moving Average and Support Vector Machine, were developed without the requirement for prior epidemiological parameters. Performances of the models in predicting dengue incidences in the Western Visayas Region of the Philippines were compared by measuring the Root Mean Square Error and Mean Average Error. Results showed that the models were both effective in forecasting Dengue incidences for epidemiological surveillance as validated by historical data. SARIMA model yielded average RMSE and MAE scores of 16.8187 and 11.4640, respectively. Meanwhile, SVM model achieved scores of 11.8723 and 7.7369, respectively. With the data and setup used, this study showed that SVM outperformed SARIMA in forecasting Dengue incidences. Furthermore, preliminary investigation of one-month lagged climate variables using Random Forest Regressor’s feature ranking yielded rain intensity and value as top possible dengue incidence climate predictors |
| Keywords: | SARIMA, SVM, Dengue Fever, Time Series Modeling, Feature importance |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:smo:opaper:22&r=env |
| By: | Hubert Stahn (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - ECM - Ecole Centrale de Marseille) |
| Abstract: | This paper explores the main differences between the Shapley Values of a set of taxa introduced by Haake et al. [4] and Fuchs and Jin [3], the latter having been found identical to the Fair Proportion Index (Redding and Mooers [10]). In line with Shapley [13], we identify the cooperative game basis for each of these two classes of phylogenetic games and use them (i) to construct simple formulas for these two Shapley values and (ii) to compare these different approaches. Using the set of weights of a phylogenetic tree as a parameter space, we then discuss the conditions under which these two values coincide and, if they are not the same, revisit Hartman's [5] convergence result. Finally, we compare the species ranking induced by these two values. Considering the Kendal and the Spearman rank correlation coefficient, simulations show that these rankings are strongly correlated. |
| Keywords: | biodiversity,phylogenetic trees,Shapley value,Fair Proportion index |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01630069&r=env |
| By: | Bibi, Chan; Audi, Marc; Ali, Amjad |
| Abstract: | This study has investigated the impact of gender inequality and environmental degradation on human well-being in the case of Pakistan from 1980 to 2014. Augmented Dickey-Fuller unit root test is used for stationarity of the variables. Autoregressive Distributed Lag model (ARDL) is used for co-integration among the variables of the model. The results show that gender inequality has a negative and significant impact on human well-being in Pakistan, while gender equality encourages human well-being. The calculated results show that there is positive but insignificant relationship with environmental degradation and human well-being in case of Pakistan. The estimated results show that economic misery has a negative and significant impact on human well-being in case of Pakistan. The estimated results show that economic growth has a positive and significant relationship with human well-being in Pakistan. On the basis of estimated results, it is concluded that gender equality, economic misery and economic growth are playing an important role in determining human well-being in Pakistan. Therefore, in order to improve human well-being, government must reduce gender inequality and economic misery while enhancing in parallel the economic growth. |
| Keywords: | Gender inequality, environmental degradation, Human Well-being |
| JEL: | J1 O10 Q0 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:83470&r=env |
| By: | Elisenda Jové-Llopis (Department of Economics – CREIP, Universitat Rovira i Virgili); Agustí Segarra-Blasco (Research Group of Industry and Territory, Universitat Rovira i Virgili) |
| Abstract: | This study investigates the effects of eco-strategies on firm performance in terms of sales growth in an extensive sample of 11,336 small and medium-sized enterprises (SMEs) located in 28 European countries. Our empirical results suggest that not all eco-strategies are positively related to better performance, at least not in the short term. We find that European companies using renewable energies, recycling or designing products that are easier to maintain, repair or reuse perform better. Those that aim to reduce water or energy pollution, however, seem to show a negative correlation to firm growth. Our results, also, indicate that high investment in eco-strategies improves firm growth, particularly in new members that joined the EU from 2004 onwards. Finally, we observe a U-shaped relationship between eco-strategies and firm growth, which indicates that a greater breadth of eco-strategies is associated with better firm performance. However, few European SMEs are able to either invest heavily or undertake multiple eco-strategies, thus leaving room for policy interventions. |
| Keywords: | eco-strategy, firm growth, Europe, SMEs |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2017-15&r=env |
| By: | Abdulkadri, Abdullahi |
| Abstract: | The Global Sustainable Development Goals (SDGs) Indicator Framework is endorsed by the United Nations Statistical Commission as the monitoring mechanism for the 169 targets and more than 230 indicators of the SDGs. Reporting of these indicators will pose a formidable challenge to the Caribbean given the statistical capacity of countries of the subregion. The results of an ECLAC survey show that only three of the eleven countries that participated reported having the capacity to produce at least 50 per cent of the indicators. The capacities of National Statistical Offices will need to be significantly enhanced to meet the data requirement of the SDGs. Addressing the legislation and policies issues relating to data collection, processing and dissemination will be a desirable first step in this direction. |
| Keywords: | OBJETIVOS DE DESARROLLO SOSTENIBLE, INDICADORES DEL DESARROLLO, SERVICIOS ESTADISTICOS, DESARROLLO DE CAPACIDAD, DESARROLLO SOSTENIBLE, ENCUESTAS, SUSTAINABLE DEVELOPMENT GOALS, DEVELOPMENT INDICATORS, STATISTICAL SERVICES, CAPACITY BUILDING, SUSTAINABLE DEVELOPMENT, SURVEYS |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col095:43115&r=env |
| By: | OECD |
| Abstract: | This paper analyses the reform undertaken by Iceland to avert a looming crisis and restore fish stocks to sustainable levels. The paper outlines the process involved in designing and implementing this reform. It also reflects on the challenges encountered and the environmental, economic and social impacts of the reform. It concludes by discussing some wider lessons learned for other governments seeking to tackle similar environmental problems. This country study draws on the 2017 OECD report The Political Economy of Biodiversity Policy Reform. |
| Date: | 2017–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaac:9-en&r=env |
| By: | Olga Chiappinelli; Karsten Neuhoff |
| Abstract: | In this paper we show that carbon pricing is subject to time-inconsistency and we investigate solutions to improve on the problem and restore the incentive for the private sector to invest in low-carbon innovation. We show that a superior price- investment equilibrium can be sustained in the long-term, if the policy-maker is enough forward looking and allowed to build reputation. In the short-term, time- inconsistency can be alleviated by complementing carbon pricing with project-based carbon price guarantees. |
| Keywords: | Carbon pricing, Time-inconsistency, Low-carbon innovation, Environmental regulation, Repeated games, Carbon contracts |
| JEL: | C73 L51 O31 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1710&r=env |
| By: | Audrey Berry (CIRED) |
| Abstract: | For households, taxing carbon raises the cost of the energy they use to heat their home and to travel. This paper studies the distributional impacts of the recently introduced French carbon tax and the design of compensation measures. Using a microsimulation model built on a representative sample of the French population from 2012, I simulate for each household the taxes levied on its consumption of energy for housing and transport. Without recycling, the carbon tax is regressive and increases fuel poverty. However, I show how compensation measures can offset these impacts. A flat cash transfer offsets tax regressivity by redistributing |
| Keywords: | Carbon tax, Distributional impacts, Fuel poverty, Revenue recycling, Microsimulation |
| JEL: | Q5 I3 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:fae:ppaper:2017.08&r=env |
| By: | OECD |
| Abstract: | This paper analyses the reform of Switzerland’s agricultural policy framework, which reoriented subsidies to better target policy objectives, including for biodiversity. The paper outline the process involved in designing and implementing the reform as well as its environmental and socio-economic impacts. It also highlights the challenges encountered and concludes by discussing the wider lessons for other governments seeking to tackle similar challenges. The country study draws on the 2017 OECD report The Political Economy of Biodiversity Policy Reform. |
| Date: | 2017–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaac:8-en&r=env |
| By: | Alfredo Marvão Pereira (Department of Economics, The College of William and Mary, Williamsburg VA 23187); Rui Manuel Pereira (Department of Economics, The College of William and Mary, Williamsburg VA 23187) |
| Abstract: | This article determines the budgetary, economic, distributional and environmental impact of permanently increasing the value-added tax on electricity in Portugal. The analysis is carried out in the context of a new multi-sector and multi-household dynamic general equilibrium model. Simulation results suggest that a permanent increase from 6% to 23% in the statutory VAT on electricity improves the public budget as well as the environment, but both gains have detrimental economic and distributional effects. As the economy in Portugal begins to recover in the aftermath of the Great Financial Crisis, and the public budgetary situation becomes less constraining, pressure is mounting for this VAT increase on electricity to be reversed. This mixed bag of results is an important element for the debate. Reverting to a tax of 6% on electricity is desirable, as it would improve economic performance and have positive distributional effects. The question, then, is how to compensate for the loss of tax revenue and, at the same time, protect the environment. To offset the adverse budgetary and environmental effects of a lower VAT, we propose to increase the tax on petroleum products. This proves to be a dominant strategy from all relevant perspectives – economic, distributional, and environmental. |
| Keywords: | Value-Added Tax on Electricity, Tax on Petroleum Products, Macroeconomic Effects, Distributional Effects, Environmental Effects, Portugal |
| JEL: | C68 E62 H23 Q43 Q48 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0090&r=env |
| By: | Nigar Hashimzade; Gareth Donald Myles |
| Abstract: | Corporations make significant direct contributions to environmental improvement and also indirect contributions, through expenditure on process and product innovation. We explore alternative motivations for these expenditures that look beyond the assertion that they are a consequence of business ethics. Two motives are explored: environmental improvement leading to reduced production costs, and publicized environmental expenditures boosting brand image. We analyze the equilibrium with environmental contributions and social welfare implications. These motives are then combined to determine whether environmental expenditures can justify public interest defence for the operation of a cartel. Using a variant of the Dixit-Stiglitz model we identify when reduced competition caused by a decrease in the number of active firms leads to greater environmental expenditures and higher welfare. However, allowing the operational firms to form a cartel and raise prices above Nash equilibrium levels always reduces environmental expenditures. Welfare falls, as a consequence, and the public interest defence fails. |
| Keywords: | environment, public interest, cartel |
| JEL: | L49 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6755&r=env |
| By: | Noth, Felix; Rehbein, Oliver |
| Abstract: | We investigate firm outcomes after a major flood in Germany in 2013. We robustly find that firms located in the disaster regions have significantly higher turnover, lower leverage, and higher cash in the period after 2013. We provide evidence that the effects stem from firms that already experienced a similar major disaster in 2002. Overall, our results document a positive net effect on firm performance in the direct aftermath of a natural disaster. |
| Keywords: | natural disasters,firm outcomes |
| JEL: | G21 Q54 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:252017&r=env |
| By: | - |
| Abstract: | El presente documento analiza los desafíos que se enfrentan los países que conforman la región SICA para la implementación de la Agenda 2030 en su dimensión social desde una perspectiva de integralidad e interdependencia de la Agenda. Con el objeto de contribuir al alcance de los Objetivos de Desarrollo Sostenible (ODS) acordados por los países miembros de las Naciones Unidas en 2015, además de identificar las principales brechas que deben cerrar los países de la región, se analizan en profundidad los medios de implementación con los que estos cuentan y se enfatiza la necesidad de comenzar una transición desde la lógica sectorial hacia un sistema integrado y articulado que pueda potenciar los esfuerzos realizados mediante políticas sociales intersectoriales e interinstitucionales. |
| Keywords: | OBJETIVOS DE DESARROLLO SOSTENIBLE, DESARROLLO ECONOMICO, DESARROLLO SOCIAL, DESARROLLO SOSTENIBLE, ESTRATEGIAS DEL DESARROLLO, LEYES Y REGLAMENTOS, PLANIFICACION DEL DESARROLLO, AGENDA 2030 PARA EL DESARROLLO SOSTENIBLE, SUSTAINABLE DEVELOPMENT GOALS, ECONOMIC DEVELOPMENT, SOCIAL DEVELOPMENT, SUSTAINABLE DEVELOPMENT, DEVELOPMENT STRATEGIES, LAWS AND REGULATIONS, DEVELOPMENT PLANNING, 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col094:42710&r=env |
| By: | Ricardo Marto; Chris Papageorgiou; Vladimir Klyuev |
| Abstract: | We present a dynamic small open economy model to explore the macroeconomic impact of natural disasters. In addition to permanent damages to public and private capital, the disaster causes temporary losses of productivity, inefficiencies during the reconstruction process, and damages to the sovereign's creditworthiness. We use the model to study the debt sustainability concerns that arise from the need to rebuild public infrastructure over the medium term and analyze the feasibility of ex ante policies, such as building adaptation infrastructure and fiscal buffers, and contrast these policies with the post-disaster support provided by donors. Investing in resilient infrastructure may prove useful, in particular if it is viewed as complementary to standard infrastructure, because it raises the marginal product of private capital, crowding in private investment, while helping withstand the impact of the natural disaster. In an application to Vanuatu, we find that donors should provide an additional 50% of pre-cyclone GDP in grants to be spent over the following 15 years to ensure public debt remains sustainable following Cyclone Pam. Helping the government build resilience on the other hand, reduces the risk of debt distress and at lower cost for donors. |
| Keywords: | Debt sustainability;Disaster aid;Foreign aid;Natural Disastes, Resilience, Adaptation, Small States, International Lending and Debt Problems, Infrastructures, Fiscal and Monetary Policy in Development |
| Date: | 2017–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:17/223&r=env |
| By: | Andor, Mark; Osberghaus, Daniel; Simora, Michael |
| Abstract: | In the aftermath of natural disasters, governments frequently provide financial aid for affected households. This policy can have adverse effects if individuals anticipate it and forgo private precaution measures. While theoretical literature unequivocally suggests this so called "charity hazard", empirical studies yield ambiguous results. Drawing on rich survey data from German homeowners, we analyze charity hazard for different flood precaution strategies, namely insurance uptake and non-financial protection measures, and different flood risk areas. Our results indicate a substantial charity hazard in the insurance market for individuals residing in flood-prone areas. In contrast, we find a positive correlation between governmental aid and non-financial protection measures. Moreover, our results suggest that insurance and non-financial protection measures are rather complements than substitutes. Finally, we provide suggestive evidence that status-quo bias might play an important role for insurance uptake. |
| Keywords: | Adaptation,Flood Protection,Flood Insurance,Objective Flood Risk,Charity Hazard |
| JEL: | Q54 C35 R22 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:17065&r=env |