|
on Environmental Economics |
|
Issue of 2018‒02‒19
forty-two papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Simplice Asongu (Yaoundé/Cameroun) |
| Abstract: | Motivated by sustainable development challenges in Sub-Saharan Africa, this study assesses the comparative persistence of environmental unsustainability in a sample of 44 countries in the sub-region for the period 2000 to 2012. The empirical evidence is based on Generalised Method of Moments. Of the six hypotheses tested, it is not feasible to assess the hypothesis on resource-wealth because of issues in degrees of freedom. As for the remaining hypotheses, the following findings are established. (i) Hypothesis 1 postulating that middle income countries have a lower level of persistence in carbon dioxide (CO2) emissions is valid for CO2 per capita emissions, CO2 emissions from electricity and heat production and CO2 emissions from liquid fuel consumption. (ii) Hypothesis 2 on the edge of French civil law countries is valid for CO2 emissions from liquid fuel consumption and CO2 intensity, but not for CO2 per capita emissions. (iii) Hypothesis 3 on the postulation that politically-unstable countries reflect more persistence is valid for CO2 per capita emissions. (iv) Hypothesis 5 on the propensity for landlocked countries to be associated with more persistence in CO2 emissions is valid for CO2 per capita emissions but not for CO2 emissions from liquid fuel consumption. (v) Hypothesis 6 maintaining that Christianity-dominated countries are more environmentally friendly with regard to CO2 emissions is valid for CO2 per capita emissions but not for CO2 emissions from liquid fuel consumption and CO2 intensity. Implications for policy and theory are discussed. |
| Keywords: | CO2 emissions; Sustainable development; Environment; Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:17/060&r=env |
| By: | van den Bremer, Ton; van der Ploeg, Frederick |
| Abstract: | Leading-order results from asymptotic analysis for the optimal price of carbon under uncertainty are derived from a macroeconomic continuous-time DSGE model with AK growth, energy use, adjustment costs, recursive utility and costs of global warming. We consider non-climatic productivity growth uncertainty, atmospheric carbon uncertainty, climate sensitivity uncertainty and climate damage uncertainty. Explicit expressions are derived that show the leading-order dependence of the optimal carbon price on these uncertainties, the various climate betas, risk aversion, intergenerational inequality aversion and convexity of the climate damage specification. Our solution allows for skewness and mean reversion in stochastic shocks to the climate sensitivity and damage coefficients. The resulting rule for the optimal risk-adjusted carbon price incorporates precautionary, risk-insurance and risk-exposure effects to deal with future economic and climatic risks. The stochastic processes are calibrated and used to estimate and interpret the impact of each source of uncertainty on the optimal risk-adjusted carbon price. |
| Keywords: | climate betas; Insurance; mean reversion; precaution; Skewness |
| JEL: | H21 Q51 Q54 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12642&r=env |
| By: | Eva Lyubich; Joseph S. Shapiro; Reed Walker |
| Abstract: | This paper provides the first estimates of within-industry heterogeneity in energy and CO2 productivity for the entire U.S. manufacturing sector. We measure energy and CO2 productivity as output per dollar energy input or per ton CO2 emitted. Three findings emerge. First, within narrowly defined industries, heterogeneity in energy and CO2 productivity across plants is enormous. Second, heterogeneity in energy and CO2 productivity exceeds heterogeneity in most other productivity measures, like labor or total factor productivity. Third, heterogeneity in energy and CO2 productivity has important implications for environmental policies targeting industries rather than plants, including technology standards and carbon border adjustments. |
| JEL: | F18 H23 Q56 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24228&r=env |
| By: | Chia-Lin Chang (Department of Applied economics, Department of Finance National Chung Hsing University, Taiwan.); Te-Ke Mai (Department of Economics National Tsing Hua University, Taiwan.); Michael McAleer (Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute Erasmus School of Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of Madrid, Spain And Institute of Advanced Sciences Yokohama National University, Japan.) |
| Abstract: | The purpose of the paper is to provide a clear mechanism for determining carbon emissions pricing in China as a guide to how carbon emissions might be mitigated to reduce fossil fuel pollution. The Chinese Government has promoted the development of clean energy, including hydroelectric power, wind power, and solar energy generation. In order to involve companies in carbon emissions control, a series of regional and provincial carbon markets have been established since 2013. Since China’s carbon market was established in 2013 and mainly run domestically, and not necessarily using market principles, there has been almost no research on China’s carbon price and volatility. This paper provides an introduction to China’s regional and provincial carbon markets, proposes how to establish a national market for pricing carbon emissions, discusses how and when these markets might be established, how they might perform, and the subsequent prices for China’s regional and national carbon markets. Power generation in manufacturing consumes more than other industries, with more than 40% of total coal consumption. Apart from manufacturing, the northern China heating system also relies on fossil fuels, mainly coal, which causes serious pollution. In order to understand the regional markets well, it is necessary to analyze the energy structure in these regions. Coal is the primary energy source in China, so that provinces that rely heavily on coal receive a greater number of carbon emissions permits from the Chinese Government. In order to establish a national carbon market for China, a detailed analysis of eight important regional markets will be presented. The four largest energy markets, namely Guangdong, Shanghai, Shenzhen and Hubei, traded around 82% of the total volume and 85% of the total value of the seven markets in 2017, as the industry structure of the western area is different from that of the eastern area. The China National Development and Reform Commission has proposed a national carbon market, which can attract investors and companies to participate in carbon emissions trading. This importantissue will be investigated in the paper. |
| Keywords: | Pricing chinese carbon emissions, National pricing policy, Energy, Volatility, Energy finance, Provincial decisions. |
| JEL: | C22 C58 G12 Q48 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:doicae:1803&r=env |
| By: | Zalejska Jonsson, Agnieszka (Department of Real Estate and Construction Management, Royal Institute of Technology) |
| Abstract: | The overarching aim of this study is to investigate the factors behind the relatively slow evolution of the green residential housing market in Sweden. The intention is to examine stated willingness to pay (WTP) for green and low energy apartments, and to explore which factors have a significant effect on stated WTP among apartment owners. A green building was defined as a building certified according to the environmental scheme and a low energy building as a building designed and constructed with high energy efficiency goals. Data for this study were collected through a survey conducted among occupants of comparable apartment buildings: two green and one conventional. The study applied a quasi-experimental method; survey responses regarding factors affecting purchase of apartment, stated WTP and environmental literacy have been analysed using descriptive statistics, the Mann–Whitney (rank sum) test and logistic models. Comments received from respondents have been used for further interpretation of results. Results indicate that environmental education has a significant effect on stated WTP. Occupants who declared higher WTP showed a higher level of environmental literacy and indicated that energy efficiency was one of the important factors that affected their decision to buy an apartment. It is concluded that growth in the green housing market in Sweden might be achieved if policymakers and developers engage in active education in the environmental labelling system. The demand for green buildings is more likely to increase when the difference between green and conventional buildings is easily understood and information is not only delivered by the estate agent, but is part of an environmental education programme. |
| Keywords: | Consumer; environmental education; housing market; stated WTP |
| JEL: | Q56 R21 |
| Date: | 2018–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:kthrec:2018_001&r=env |
| By: | Hongliang Zhang; Jianhong E. Mu; Bruce A. McCarl |
| Abstract: | This paper investigates how dryland wheat farm operators adapt to climate through the use of land leasing in the U.S. Pacific Northwest region. Using a farm-level dataset from the U.S. Census of Agriculture, we build a statistical relationship between climate and leased acreage for dryland wheat farms. We find that a warmer and wetter climate reduces leased dryland wheat farmland, suggesting that land leasing is a potential strategy for adaptation to future climate. Using climate projections from 20 global climate models, we predict that, by 2050, leased acreage for dryland wheat farms on average will decline by 23% and 29% relative to 2012 levels under the medium and high greenhouse gas emission scenarios, respectively. |
| Keywords: | Land Leasing, Climate, Climate Change Adaptation, Wheat |
| JEL: | Q15 Q54 C21 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:irn:wpaper:18-02&r=env |
| By: | Tischler, Benjamin |
| Abstract: | At EU level, new proposed legislation for a clean-energy policy is being adopted. New policies are currently being discussed regarding the increased reduction of CO2 emissions, as well as EU-wide energy consumption targets for the year 2030 and national energy efficiency targets and measures to be derived from them. But what happens when the proposed objectives contradict and undermine each other? A restrictive energy consumption target can become a major obstacle to achieving the overall energy and climate-policy objective of cost-effective decarbonization of the energy system. Economic policy instruments for increasing energy efficiency in the EU ETS sectors can make it more difficult to achieve decarbonization at minimal cost. Energy efficiency targets and the corresponding economic policy measures can however make a worth-while contribution in sectors not included in the EU ETS. Instruments for increasing energy efficiency should aim at improving technical energy efficiency. With that in mind, the conception of quantitative targets and tools must be improved. The macroeconomic indicators for "energy efficiency" and "energy intensity" used thus far are unsatisfactory as simple political objectives and lead to wrong conclusions regarding the success of the economic policy instruments being used. The indicators must be decisively improved, for example, by considering factors such as business cycle and economic growth, as well as the proportion of renewable energy or of energy-intensive and less energy-intensive sectors. Furthermore, a better database is necessary. |
| JEL: | Q52 Q58 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkpps:12018e&r=env |
| By: | Bruns, Stephan B.; Csereklyei, Zsuzsanna; Stern, David I. |
| Abstract: | We model the role of the ocean in climate change, using the concept of multicointegration. Surface temperature and radiative forcing cointegrate and the accumulated cointegration disequilibria represent the change in Earth system heat content, which is predominantly stored in the ocean. System heat content in turn cointegrates with surface temperature. Using a multicointegrating I(2) model, we find that the climate sensitivity is 2.8°C and the rate of adjustment to equilibrium is realistically slow. These results contrast strongly with those from I(1) cointegration models and are more consistent with global circulation models. We also estimate Earth system heat content as a latent variable for the full period, 1850-2014, and this predicted heat content cointegrates with available ocean heat content observations for 1940-2014. |
| JEL: | C32 Q54 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:336&r=env |
| By: | Jaebeum Cho (Cornell University); Alberto Isgut (isgut@un.org); Yusuke Tateno (tateno@un.org) |
| Abstract: | The 2030 Agenda for Sustainable Development is a laudable attempt to portray a comprehensive global vision towards progress in a plethora of socioeconomic and environmental issues that we face today. However, this holistic view of progress presents countries with substantial difficulties in implementation in that the 17 goals and 169 targets are inherently complex and intertwined. Recognizing these difficulties, we are utilizing cutting-edge methods from complexity science coupled with economic analysis to consider the Sustainable Development Goals (SDGs) as a complex system, in an attempt to identify the pathways Pakistan can take in implementing the broad spectrum of goals and targets. Ultimately, we seek to provide for a guidebook that Pakistan can complement with its national development plan, Vision 2025, in the early stages of implementation of the SDGs, fully regarding their unique situations and development paths. |
| URL: | http://d.repec.org/n?u=RePEc:unt:wpmpdd:wp/16/04&r=env |
| By: | Drupp, Moritz A.; Hänsel, Martin C. |
| Abstract: | We study how the scarcity of non-market goods, such as environmental amenities, affects the economic appraisal of climate policy. To this end, we perform a comprehensive analysis of the change in relative prices of non-market goods in the widespread climate-economy model DICE. We show that DICE already contains relative prices implicitly and that the impact of the scarcity of non-market goods on climate policy evaluation is therefore more pervasive than previously suggested. We calibrate DICE based on empirical evidence and propose a plausible range for relative price changes. The uncertainty is substantial, with relative price changes ranging from 1.3 to 9.6 percent in 2020. For our central calibration, the relative price change amounts to 4.4 percent in 2020. Neglecting relative prices leads to an underestimation of the social cost of carbon in 2020 of more than 40 percent. Accounting for these changes is equivalent to a decrease in pure time preference by more than a half percentage point. Our findings support initiatives to consider relative prices in governmental project appraisal and offer guidance for the evaluation of climate policy. |
| Keywords: | climate policy,discounting,non-market goods,social cost of carbon,substitutability |
| JEL: | Q01 Q54 H43 D61 D90 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cauewp:201801&r=env |
| By: | Martin L. Weitzman |
| Abstract: | The possibility of intertemporal banking and borrowing of tradeable permits is often viewed as tilting the various policy debates about optimal pollution control instruments toward favoring such time-flexible quantities. The present paper shows that this view is misleading, at least for the simplest dynamic extension of the original `prices vs. quantities' information structure. The model of this paper allows the firms to know and act upon the realization of uncertain future costs two full periods ahead of the regulators. For any given circumstance, the paper shows that either a fixed price or a fixed quantity is superior in expected welfare to time-flexible banking and borrowing. Furthermore, the standard original formula for the comparative advantage of prices over quantities contains sufficient information to completely characterize the regulatory role of intertemporal banking and borrowing. The logic and implications of these results are analyzed and discussed. |
| JEL: | Q50 Q51 Q52 Q54 Q58 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24218&r=env |
| By: | Hua Liao; Celio Andrade; Julio Lumbreras; Jing Tian |
| Abstract: | Cities contribute to most of the CO2 emissions. And the economic system at city level is much complex due to various linkaged sectors. This paper aims to analyze the economy-wide contribution of sectors and households to CO2 emissions in Beijing (China) by utilizing a semi-closed input-output model integrated with a modified hypothetical extraction method. Results show that, compared with 2005, in 2012 (1) within the entire economic system, interprovincial export caused the largest amount of CO2 emissions [135.50 million tons (Mt)] with the main contributions arising from manufacturing (42.12 Mt); transportation, storage, and post (TSP in short, 29.13 Mt); and urban households (23.57 Mt); (2) across the intermediate input-output system, real estate activities accounted for the largest amount of embodied CO2 intensity (0.07 kg per yuan) and more sectors outsourced CO2; (3) tracing the integrated sector network, CO2 linkages pointed to manufacturing and TSP dominating the internal linkages, manufacturing prominent in mixed linkages, secondary industry leading the net forward linkages, and tertiary industry dominant in terms of net backward linkages, helping control CO2 according to its origin; (4) CO2 emissions induced by household strikingly affected total CO2 emissions in Beijing, mainly coming from income-oriented affects, with a large rural-urban disparity and a similar sectoral distribution pattern. Finally, we propose suggestions on carbon reduction in terms of technological interlinkages, final demand and household participation. |
| Keywords: | CO2 emissions; Semi-closed input-output model; Modified hypothetical extraction method; City; Beijing |
| JEL: | Q54 Q40 |
| Date: | 2018–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:113&r=env |
| By: | Alban Kitous (European Commission - JRC); Jacques Despres (European Commission - JRC) |
| Abstract: | Climate change in Europe leads to a decrease of residential heating needs and an increase of residential cooling needs. The impact on cooling needs is higher than on heating, in each of the climatic European regions. The overall residential heating and cooling needs are expected to decrease by a quarter by the end of the century, due to climate change. This order of magnitude remains when accounting for a higher insulation level of buildings. |
| Keywords: | climate change, energy, heating, cooling |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc110191&r=env |
| By: | Quentin Couix (Centre d'Economie de la Sorbonne) |
| Abstract: | This paper proposes a historical and epistemological account of one of the key controversy between natural resources economics and ecological economics, lasting from early 1970s to the end of 1990s. It shows that the theoretical disagreement on the scope of the economy's dependence to natural resources, such as energy and minerals, has deep methodological roots. On one hand, Solow's and Stiglitz's works are built on a “model-based methodology”, where the model precedes and supports the conceptual foundations of the theory and in particular the assumption of “unbounded resources productivity”. On the other hand, Georgescu-Roegen's counter-assumption of “thermodynamic limits to production”, later revived by Daly, rest on a methodology of “interdisciplinary consistency” which considers thermodynamics as a relevant scientific referent for economic theory. While antagonistic, these two methodologies face similar issues regarding the conceptual foundations that arise from them, which is a source of confusion and of the difficult dialogue between paradigms |
| Keywords: | natural resources; thermodynamics; growth; sustainability; model; theory; methodology |
| JEL: | B22 B41 Q01 Q32 Q43 Q57 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:18001&r=env |
| By: | Mateo Cordier; Thomas Poitelon; Walter Hecq |
| Abstract: | For decades, industrial harbor expansion has been destroying coastal marine ecosystems. Many estuaries are sites for industrial harbors and critical fish nursery habitat. Considering fish population decreases and the global biodiversity crisis, restoring these habitats is justified and supported by international institutions. However, restoration programs can be prohibitively costly, particularly when considering the Polluter Pays Principle. While harbors destroy nurseries, at the same time they generate benefits for society and contribute to the public interest. This raises questions of who is responsible for environmental degradation and who can afford environmental restoration costs? One way to allocate restoration costs is in proportion of those who have benefitted from harbor activities. This paper addresses these questions by calculating burden-sharing scenarios with inputoutput matrix equations. These scenarios are based on a shared producer and consumer responsibility approach to distribute restoration costs among stakeholders that use, either directly or indirectly, harbor services. The scenarios are applied to the Seine estuary, France, and calculated as a function of sectorial value-added as well as direct and indirect economic linkages between economic sectors and harbor activities. Economic linkages with final consumers (e.g. households) are also included. The shared environmental responsibility calculation developed in this paper shares restoration costs for previously damaged marine habitats between a wide-range of economic agents, thereby preventing industrial harbors from bearing expensive restoration costs alone, and making restoration more likely. |
| Keywords: | input-output model; marine habitat destruction; Restoration cost; shared environmental responsibility; burden-sharing; environmental tax |
| JEL: | C50 C60 E10 L90 Q01 Q50 |
| Date: | 2018–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/265012&r=env |
| By: | Michel Beine (CREA, Université du Luxembourg); Lionel Jeusette (CREA, Université du Luxembourg) |
| Abstract: | Recent surveys of the literature devoted to climate change and migration emphasize the important diversity of outcomes and approaches of the empirical studies. In this paper, we carry out a meta-analysis in order to investigate the role of the various methodological choices of these empirical studies in finding some particular results concerning the role of climatic factors as drivers of human mobility. To that aim, we code 45 papers representative of the existing literature in terms of methodological approaches. The approaches are characterized by coding more than 80 variables capturing the methodology of the main dimensions of the methods. These dimensions include among others authors’ reputation, type of mobility, measures of mobility, type of data, context of the study, econometric methods and last but not least measures of the climatic factors. We look at the influence of these characteristics on different outcomes of the regressions: probability of finding any effect, finding a displacement effect, finding an increase in immobility, finding evidence in favour of a direct versus an indirect effect. Our results highlight the role of some main methodological choices, such as the frequency of the data on mobility, the level of development of the covered area, the particular measures of human mobility and of the climatic factors as well as the econometric methodology. |
| Keywords: | Climate change; Human mobility; Econometric regressions; Meta-analysis; Natural disasters. |
| JEL: | C83 F22 J61 Q54 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:18-05&r=env |
| By: | Jing Tian; Julio Lumbreras; Celio Andrade; Hua Liao |
| Abstract: | Purpose ¨C This paper aims to identify key sectors in carbon footprint responsibility, an introduced concept depicting CO2 responsibilities allocated through the supply chain containing sectoral activities and interactions. In detail, various key sectors could be identified according to comparative advantages in trade, sectoral linkage, and sectoral synergy within the supply chain. Design/methodology/approach ¨C A semi-closed IO model is employed to make household income-expenditure relationship endogenous through the supply chain where sectoral CO2 emissions are calculated and the production-based responsibility (PR) principle is evaluated. Thus, according to "carbon footprint responsibility", modified HEM is applied to decompose sectoral CO2 in terms of comparative advantages in trade, sectoral linkage and synergy. Finally, key sectors are identified via sectoral shares and associated decompositions in carbon footprint responsibility. Findings - Compared to 2005, in 2012: (1) the PR principle failed to track sectoral CO2 flow, and embodied CO2 in import and interprovincial export increased, with manufacturing contributing the most; (2) manufacturing should take more carbon responsibilities in the internal linkage, and tertiary sectors in the net forward and backward linkage, with sectors enjoying low carbonization in the mixed linkage; (3) inward net CO2 flows of manufacturing and service sectors were more complicated than their outward ones in terms of involved sectors and economic drivers; and (4) residential effects on CO2 emissions of traditional sectors increased, urban effects remained larger than rural ones, and manufacturing and tertiary sectors received the largest residential effects. Originality/value ¨C The value of paper involves: (1) household income-expenditure relationship got endogenous in intermediate supply and demand, corresponding to the rapid urbanization in megacities; (2) key sectors were observed to change flexibly according to real sectoral activities and interaction; and (3) the evaluation of the PR principle was completed ahead of employing a certain CO2 accounting principle at the city level. |
| Keywords: | Carbon responsibility, Carbon footprint, Key sector, Household, Semi-closed input-output model, Modified hypothetical extraction method |
| JEL: | Q54 Q40 |
| Date: | 2018–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:112&r=env |
| By: | Stuart, Sheila; Gény, Lydia Rosa; Abdulkadri, Abdullahi |
| Abstract: | This paper is focused on the economic empowerment and autonomy of women and girls as a strategy for accelerating gender equality through the implementation of the SDGs, which provides the framework for mainstreaming gender issues into all stages of national policies and programmes. In making this argument, the paper highlights some of the major challenges facing the Caribbean subregion in its efforts to achieve greater equality, particularly gender equality, and to promote sustainable development for all. |
| Date: | 2018–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col033:43232&r=env |
| By: | Lutz, Benjamin Johannes; Massier, Philipp; Sommerfeld, Katrin; Löschel, Andreas |
| Abstract: | Increasing energy efficiency is one of the main goals in current German energy and climate policies. We study the determinants of energy efficiency in the German manufacturing sector based on official firm-level production census data. By means of a stochastic frontier analysis, we estimate the cost-minimizing energy demand function at the two-digit industry level using firm-level heterogeneity. Apart from the identification of the determinants of the energy demand function, we also analyze potential drivers of energy efficiency. Our results suggest that there is still potential to increase energy efficiency in most industries of the German manufacturing sector. Furthermore, we find that in most industries exporting and innovating firms as well as those investing in environmental protection measures are more energy efficient than their counterparts. In contrast, firms which are regulated by the European Union Emissions Trading System are mostly less energy efficient than non-regulated firms. |
| Keywords: | Stochastic Frontier Analysis,Stochastic Demand Frontier,Energy Efficiency,Climate Policy,Manufacturing |
| JEL: | D22 D24 L60 Q41 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:99&r=env |
| By: | Hongliang Zhang; John M. Antle |
| Abstract: | We investigate climate change impacts on productivity and production risk on U. S. Pacific Northwest winter wheat farms. Using farm-level data from the Census of Agriculture, we use a partial-moment-based approach to estimate climate and irrigation influences on winter wheat yield and farm net return distributions. Mean precipitation, growing degree-days, and freezing degree-days are shown to have highly distinct seasonal effects on the first three moments of the farm-level yield and net return distributions. Irrigation substantially increases the certainty equivalent of irrigated farms by shifting the winter wheat yield distribution outwards, and by increasing mean net returns but also decreasing the skewness of the net return distribution and thus reducing downside risk. By the mid-21st century, climate-change projections from 20 global climate models downscaled to the study region reveal a range of possible positive and negative effects on the winter wheat yield and net return distributions. |
| Keywords: | Climate Change, Winter Wheat, Production Risk, Partial Moments |
| JEL: | C5 D8 Q1 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:irn:wpaper:18-01&r=env |
| By: | Mireille Chiroleu-Assouline (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics, ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech); Jean-Christophe Poudou (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - INRA Montpellier - Institut national de la recherche agronomique [Montpellier] - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Sébastien Roussel (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - INRA Montpellier - Institut national de la recherche agronomique [Montpellier] - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier) |
| Abstract: | To address the issue of potential information asymmetries inherent in the estimation of deforestation baselines required by the current Reducing Emissions from Deforestation and Forest Degradation+ (REDD+) scheme, we offer a theoretical analysis of an extended scheme relying on the theory of incentives. We compare two types of contracts: a deforestation-based contract and a policy-based contract. Each of them implies a dramatically different information rent/efficiency trade-off due to domestic implementation and transaction costs. If the contract is deforestation-based (resp. policy-based), information rents are awarded to countries with the ex ante lowest (resp. highest) intended deforestation. We show that a general contract can be offered to recipient countries in which the type of instrument proposed is endogenous, independent of the historical trend, unlike the current REDD+ mechanism. Dividing countries into two groups corresponding to the deforestation-based instrument and the policy-based instrument helps the donor country to obtain efficient deforestation and avoided deforestation levels. |
| Keywords: | Reducing Emissions from Deforestation and forest Degradation,Incentives,Performance,Conditionality,Contract,Deforestation,Hidden information |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01643656&r=env |
| By: | Björn Kauder; Niklas Potrafke; Heinrich Ursprung |
| Abstract: | Using a representative survey of German university students, we confirm that proclaimed support for environment protection policies depends on socio-cultural factors and political ideology. Unlike most related studies for other countries, we find that the environmental policy stance of German partisans does not follow the left-right cleavage. Only about 25% of the social-democratic partisans wholeheartedly support environment protection policies, whereas 50% of the green partisans, who, in Germany, also belong to the political left, do so; and when controlling for socio-cultural influences, social-democratic partisans become undistinguishable from Christian-conservative and market-oriented partisans. Focusing on behavioral influences, we find that some of the respondents’ psychological traits are not filtered through their political ideology but directly influence their proclaimed attitudes towards environment protection policies. We identify as important behavioral determinants the locus of control and psycho-logical traits that capture the respondents’ susceptibility to making use of expressive rhetoric. |
| Keywords: | Environment protection, political preferences, ideology, identity, expressive behavior. |
| JEL: | D72 P16 Q51 Q58 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ifowps:_254&r=env |
| By: | Fernando M. Aragón (Simon Fraser University); Francisco Oteiza (Institute for Fiscal Studies); Juan Pablo Rud (Department of Economics, Royal Holloway, University of London and Institute of Fiscal Studies) |
| Abstract: | This paper examines how farmers adapt, in the short-run, to extreme heat. Using a production function approach and micro-data from Peruvian households, we find that high temperatures induce farmers to increase the use of inputs, such as land and domestic labor. This reaction partially attenuates the negative effects of high temperatures on output. We interpret this change in inputs as an adaptive response in a context of subsistence farming, incomplete markets, and lack of other coping mechanisms. We use our estimates to simulate alternative climate change scenarios and show that accounting for adaptive responses is quantitatively important. |
| Keywords: | Climate Change, Agriculture, Adaptation |
| JEL: | O13 O12 Q12 Q15 Q51 Q54 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:sfu:sfudps:dp18-02&r=env |
| By: | Meunier Guy (INRA; ALISS; Ecole Polytechnique); Ponssard Jean-Pierre (Ecole Polytechnique) |
| Abstract: | The energy transition requires the deployment of significant programs in research and development. In absence of a long term commitment by governments on an international price of carbon various forms of national subsidies have been used. This paper analyzes the potential benefit of using subsidies conditional on success or failure of an R&D program, rather than a flat subsidy. The relationship between the state and the firm is formalized in the principal agent framework. Three potential sources of inefficiency are identified: conditions of observability of the outcome of the project, adverse selection regarding the probability of success and moral hazard. We shall show how subsidies that reward failure and subsidies that reward success mitigate these respective sources of inefficiency in a superior way as compared to flat subsidies. The gap between our second best policies and the first best is also identified. We bring together our analytical results and offer some guidance for the design of contractual investment programs such as the contractual instruments used in the Investment Program for the Future (Programme d’Investissements d’Avenir) launched in France in 2010 to promote R&D for the energy transition over the period 2010-2020. |
| Keywords: | green innovation, financing, public support, asymmetric information |
| Date: | 2017–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2017-55&r=env |
| By: | Löschel, Andreas; Lutz, Benjamin Johannes; Massier, Philipp |
| Abstract: | We analyze the drivers and barriers that influence investments increasing the energy efficiency of firms' production processes or buildings in the German manufacturing sector based on microdata. In particular, we shed light on the relationship between financial barriers (e. g. credit constraints), information and knowledge (e. g. energy management practices), salience of energy-related topics, and the investments in energy saving technologies. A better understanding of firms' investment behavior regarding energy saving technologies is crucial to design efficient policy measures, which are necessary to achieve the imposed ambitious climate and energy policy targets. We use data from 701 structured telephone interviews in combination with commercial and confidential firm-level data. Our results suggest that energy management practices have a statistically significant positive relationship with investment decisions on energy saving technologies for production processes and buildings. Credit constraints are a barrier to investments in the energy efficiency of firms' production processes. Furthermore, high energy cost shares of heating or cooling, high energy intensity, energy self-generation and structured internal decision making processes influence the investments in energy efficiency positively. |
| Keywords: | Energy efficiency,Credit constraints,Energy management,Manufacturing industry,Investment behavior |
| JEL: | D22 H23 Q41 Q48 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:98&r=env |
| By: | Buckley, P.; Llerena, D. |
| Abstract: | The aim of demand response is to make energy consumption more flexible during peak periods. Using a contextualised CPR framework, we study energy consumption choices. Subjects decide the consumption level of five activities during 10 periods. The total consumption of these activities is the CPR contribution, and payoffs depend on own consumption and the amount consumed by the group. In the nudge treatment, subjects are nudged towards the socially optimal level of consumption using injunctive norms. The average consumption observed in the nudge treatment is used to calculate the price implemented in the price treatment. The objective is to quantify the nudge via an equivalent price. The main hypotheses are: consumption choices will be lower in the treatment groups compared to the control groups; when the price level is fixed according to the nudge result, consumption choices in the price treatment will be equivalent to those in the nudge treatment. Across all 10 periods, consumption is significantly lower in the nudge treatment, and higher for control groups. In the price treatment, consumption remains between the two at or slightly above the target. We conclude that the nudge treatment performs as well as an equivalent price without the implied loss of welfare. When comparing decisions under the nudge and price treatments to the control groups, the consumption decisions are significantly different from period 2 for the nudge and, consistently different from period 7 for the price. We conclude that the nudge is understood and integrated into subjects' decision making quicker than an equivalent price. |
| Keywords: | COMMON POOL RESOURCE;DEMAND RESPONSE;LABORATORY EXPERIMENT;INCENTIVES;NUDGE;PRICE |
| JEL: | C91 C92 D62 D91 H21 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2018-01&r=env |
| By: | Randall Jackson (Regional Research Institute, West Virginia University); Amir B. Ferreira Neto (Regional Research Institute, West Virginia University); Elham Erfanian (Regional Research Institute, West Virginia University) |
| Abstract: | This paper estimates the economic and environmental impacts of introducing woody biomass processing (WBP) into a rural area in central Appalachia. WBP is among the most promising additions to energy generation portfolios for reducing import dependency while at the same time providing economic opportunity to stimulate regional economies, especially in rural regions where economic development options are often limited. We use an input-output framework to assess WBP under three different pathways, fast pyrolysis, ethanol and coal-biomass to liquids. We find that the proposed WBP will increase regional output by 0.5–1.3% of gross regional product; it will increase income by $17.32 to $51.31 million dollars each year, and regional employment by 218.1–1127.8 jobs, depending on the chosen pathway. Of these impacts, the direct portions are 63–77% of the total impact, depending on the chosen pathway. The economic analysis and the results from the accompanying environmental assessment show that only the ethanol pathway has both economic and environmental benefits. We conclude that because long-run economic development strategies in rural regions are limited and negative impacts do not alter dramatically the regional environmental profile, regional policymakers should include WBP among their development portfolio options. |
| Keywords: | woody biomass processing, input output analysis, life cycle assessment, central Appalachia, rural economic development |
| JEL: | R58 R15 Q51 |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:rri:wpaper:2016rp04&r=env |
| By: | Requate, Tilman; Camacho-Cuena, Eva; Ch'ng, Kean Siang; Waichman, Israel |
| Abstract: | We experimentally test the truth-telling mechanism proposed by Montero (2008) for eliciting firms' abatement costs. We compare this mechanism with two well-known alternative allocation mechanisms, grandfathering and pure auctioning. We conducted 27 treatments with a total of 623 participants, controlling for the allocation mechanism, the number of firms, and the true maximal emission levels. We find that, in line with the theoretical predictions, firms over-report their maximal emissions under grandfathering and under-report them under pure auctioning, while under Montero's mechanism firms almost always report their maximal emissions truthfully. However, in terms of efficiency, the difference between Montero's mechanism and pure auctioning disappears when there is more than one firm in the market. |
| Keywords: | mechanism design,environmental policy,permit trading,auctions,experiment |
| JEL: | C92 D44 L51 Q28 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cauewp:201802&r=env |
| By: | Jingwen Wu; Bingdong Hou; Ruoyu Ke; Yun-Fei Du; Ce Wang; Xiangzheng Li; Jiawei Cai; Tianqi Chen; Meixuan Teng; Jin Liu; Jin-Wei Wang; Hua Liao |
| Abstract: | Solid fuels are still widely used in rural China though the living standard has improved greatly. Energy poverty is an obvious indicator of poverty, which has serious effect on economic development, environment and health. In this paper, we conducted a detailed analysis on fuel choice and usage behavior of different end-use activities in rural residential energy consumption. Using 717 household observations from a micro survey data in two counties of Shandong and Hebei province in 2016, we find that biomass is the dominant fuel used for cooking among all energy sources despite of obvious trend of decrease in recent years, accounting for 44%. Clean energy used to cook increased markedly with a proportion of nearly 50%. Biomass is also the ordinary fuel used for water heating excerpt for solar energy. Almost 90% households rely on coal for space heating in winter, and one-third households have space heating less than 2 months. Ownerships of home appliances for basic needs is higher than that for hedonistic needs, and usage behaviors of some appliances are economical. Fuel accessibility of commercial energy has improved noticeably in rural, and the high proportion usage of biomass is affected by family income, using habits, local resources, environmental recognition, education and age. Since solid fuels are widely used in rural, it is important to cleanse biomass, develop new energy, and improve residents¡¯ cognition about the consequences of using solid fuels. |
| Keywords: | rural households; fuel choice; end-use; usage behaviors |
| JEL: | Q54 Q40 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:109&r=env |
| By: | Jin Liu; Bingdong Hou; Xiao-Wei Ma; Hua Liao |
| Abstract: | Indoor air pollution is mainly caused by solid fuel use for cooking in developing countries. Many previous studies focused on its health risks on the children and in specific local area. This paper investigates household energy usage and transition for cooking in rural China and the health effects on the elderly. A national large-scale dataset CHARLS (China Health and Retirement Longitudinal Study) covering 450 villages and communities is employed. Logit regressions were used to quantitatively estimate the effects, after controlling for some factors such as income, demographic and geographical variables. The results robustly show that compared to non-solid fuels, solid fuel use significantly increases the possibility of chronic lung diseases (30%), exacerbation of chronic lung diseases (95%), seizure of heart disease (1.80 times), and decreases self-evaluated health status of the elderly (1.38 times). Thus, it is urgent to improve clean energy access for cooking in rural China. |
| Keywords: | indoor air pollution; household solid fuel; health risks; elderly; rural; China |
| JEL: | Q54 Q40 |
| Date: | 2018–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:111&r=env |
| By: | Jaebeum Cho (Cornell University); Alberto Isgut (isgut@un.org); Yusuke Tateno (tateno@un.org) |
| Abstract: | The freedom accorded to governments on how to achieve the ambitious and holistic 2030 Agenda for Sustainable Development raises the critical issue of how countries should adapt the Sustainable Development Goals at the national level. This paper presents an analytical framework that merges methods from complexity science with economic analyses to address this issue of adaptation. The proposed framework 1) highlights the interlinkages, including complementarities, synergies and trade-offs across different Goals, 2) measures the country’s capacities to achieve the Goals, and 3) identifies optimal pathways for progress towards sustainable development. Using Bangladesh, Kazakhstan, and Fiji as examples, the derived pathways for progress are seen to align well with traditional development theory. However, the paths are reflective of the specific circumstances of each country, which in turn dictates their development paths. Overall, the framework provides a guidebook that may inform national deliberations on the adaptation by proposing pathways for progress that take into account interdependencies across different sectors as well as countries’ unique circumstances. |
| URL: | http://d.repec.org/n?u=RePEc:unt:wpmpdd:wp/16/03&r=env |
| By: | Cornejo Díaz, René |
| Abstract: | En este documento se aborda una descripción de la industria minera global y del Perú en las dos primeras secciones. Seguidamente, el documento analiza la situación de la infraestructura y los servicios de infraestructura en el país con el objetivo de identificar el estado actual de la infraestructura vial, ferrovial, portuaria y aérea, identificando brechas y potencialidades de mejora. En la quinta sección se establecen oportunidades de asociaciones público-privadas para el Perú. En la penúltima sección se presenta el estudio de caso de la empresa minera Buenaventura. Finalmente, se presentan unas conclusiones extensibles a otros países de la región. |
| Keywords: | INDUSTRIA MINERA, INFRAESTRUCTURA FISICA, LOGISTICA, DESARROLLO INDUSTRIAL, RECURSOS NATURALES, DESARROLLO SOSTENIBLE, ALIANZAS PUBLICO-PRIVADAS, ESTUDIOS DE CASOS, MINING INDUSTRY, PHYSICAL INFRASTRUCTURE, LOGISTICS, INDUSTRIAL DEVELOPMENT, NATURAL RESOURCES, SUSTAINABLE DEVELOPMENT, PUBLIC-PRIVATE PARTNERSHIPS, CASE STUDIES |
| Date: | 2018–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:43222&r=env |
| By: | Anton Bondarev; Alfred Greiner (University of Basel) |
| Abstract: | In this paper we develop an economic growth model that includes anthropogenicclimate change. We include a publicly funded research sector that creates new technologies and simultaneously expands the productivities of existing technologies. The environment is affected by R&D activities both negatively, through the increase of output from productivity growth, as well as positively as new technologies are less harmful for the environment. We find that there may exist two different steadystates of the economy, depending on the amount of research spending: one with less new technologies being developed and the other with more technologies. Thus, a lock-in effect may arise that, however, can be overcome by raising R&D spending sufficiently such that the steady-state becomes unique. We derive the combinations of fiscal policy instruments for which that can be achieved and we study the implications for the economy and for the environment. In particular, the double dividend hypothesis may hold only under some specific conditions. |
| Keywords: | Climate change, doubly-differentiated R&D, double dividend, fiscal policy instruments, technology lock-in |
| JEL: | C61 C62 O38 O44 Q54 Q58 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2018/03&r=env |
| By: | Kropp, Cordula |
| Abstract: | Sustainable innovations can help to find ways of addressing major challenges such as global warming and resource consumption. This article begins by clarifying the specific inconsistencies within the concept, before introducing the research on sustainability-oriented innovation processes. This research is geared in part towards sustainability innovations in organisations and in part towards overarching processes of societal transformation for sustainable development. The article concludes by discussing strategies for promoting sustainable innovation and drawing consequences for the sustainable rebuilding of infrastructure. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:stusoi:201802&r=env |
| By: | Francesco Pasimeni (European Commission, JRC , Directorate C7, Knowledge for Energy Union, PO Box 2, NL-1755 ZG Petten, Netherlands; SPRU, University of Sussex, UK); Alessandro Fiorini (European Commission, JRC , Directorate C7, Knowledge for Energy Union, PO Box 2, NL-1755 ZG Petten, Netherlands); Aliki Georgakaki (European Commission, JRC , Directorate C7, Knowledge for Energy Union, PO Box 2, NL-1755 ZG Petten, Netherlands) |
| Abstract: | Information on R&D expenditure of the private sector is very limited, both in term of availability and data quality, especially when interest focuses on Climate Change Mitigation Technologies (CCMTs). This has an impact on the robustness of quantitative analyses, and, consequently, on the insights deriving from them. This paper proposes a methodology to estimate R&D expenditure in firms simultaneously active in multiple technology sectors, with the focus on those contributing to the development of CCMTs. The methodological approach is applied to measure how the private sector invests in R&D dedicated to CCMTs, and how this differentiates among European countries. Further the paper proposes metrics to analyse the geographical distribution of the R&D expenditures in Multinational Corporations (MNCs) across subsidiaries located in Europe. Early findings are formulated into useful insights for stakeholders and policy makers. |
| Keywords: | R&D; Patent; Invention; Climate change mitigation technologies; Energy sector |
| JEL: | C81 O32 O34 O38 Q48 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2018-06&r=env |
| By: | World Bank |
| Keywords: | Information and Communication Technologies - ICT Economics Information and Communication Technologies - ICT Policy and Strategies Private Sector Development - Business Environment Science and Technology Development - Technology Innovation Urban Development - City Development Strategies |
| Date: | 2017–08 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:28113&r=env |
| By: | Upali Wickramasinghe (Senior International Consultant, FAO-Regional Office for Asia and the Pacific) |
| URL: | http://d.repec.org/n?u=RePEc:unt:wpmpdd:wp/16/07&r=env |
| By: | Halkos, George; Roditi, Kyriakoula; Matsiori, Steriani; Vafidis, Dimitrios |
| Abstract: | This study analyzes the small-scale fishery in Kalymnos Island (located in Eastern Mediterranean Sea) to evaluate fishing practices in this fishery. The métiers of this fishery are defined with a multivariate analysis approach for assessing the main fishery resources and fishing gear employed. The empirical findings show that longlines in this fishery practice 10 types of métiers. Some of these métiers, in terms of target species, gear and seasonality are also used in other small-scale Mediterranean fisheries. The main 6 type of métiers with fishing gear: set longlines, drifting longlines, handlines and squid jig-lines with target species P.pagrus, D.vulgaris, P.erythrinus, S.aurata, X.gladius, O.vulgaris, and L.vulgaris. The seasonal rotation of métiers is determined by the availability of different fish species rather than market price. Identified the métiers provides information for developing monitoring and management strategies for the small-scale fishery. The small-scale fishery constitutes an important social component of local coastal communities. |
| Keywords: | Landing; Small-scale fishery; Multivariate analysis; Métier; Longline. |
| JEL: | Q20 Q22 Q29 |
| Date: | 2018–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:84506&r=env |
| By: | Patrice Loisel (MISTEA - Mathématiques, Informatique et STatistique pour l'Environnement et l'Agronomie - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Bernard Elyakime (LEF - Laboratoire d'Economie Forestière - INRA - Institut National de la Recherche Agronomique - AgroParisTech) |
| Abstract: | Abstract : This paper explores the characteristics of an upstream-downstream moral hazard contract between two private initially non-associated producers in a spatialized and flow dependence, one upstream of the other, to provide an environmental public good. The performance of the payment function is studied in detail, in order to clarify how the moral hazard contract operates. After having drawn up and calculated the contract, we derive the incentive non-linear payment functions. The results of the downstream producer depend on the result of the upstream producer. Payments producers thus inherit this dependency structure : payment for the upstream contractor only depends on his results whereas payment for the downstream contractor depends on his own results and on those of the upstream contractor. In some cases, the behavior of the downstream payment function can lead to a possible non-acceptability of the payment function by contractors. To remedy the situation we add an acceptability constraint : a new type of bunching appears for the payment of the downstream producer. |
| Abstract: | Cet article étudie les caractéristiques d'un contrat de production d'un bien public environnemental avec aléa moral entre deux producteurs privés initialement non-associés mais dépendants par un flux physique, l'un étant en amont de l'autre. La performance de la fonction de paiement est étudiée en détail, afin de clarifier la façon dont le contrat avec aléa moral fonctionne. Après avoir présenté et calculé le contrat nous déduisons les fonctions de paiement non-linéaires incitatives. Les résultats du producteur en aval dépendent du résultat du producteur en amont. Les fonctions de paiement héritent donc de cette structure de dépendance : le paiement du producteur en amont ne dépend que de ses résultats alors que le paiement du producteur en aval dépend de ses propres résultats ainsi que de ceux du producteur en amont. Dans certains cas, le comportement de la fonction de paiement aval peut entraîner sa non-acceptabilité par les contractants. Pour y remédier nous proposons l'adjonction d'une contrainte d'acceptabilité : un bunching d'un nouveau type apparaît pour le paiement du producteur aval. |
| Keywords: | Public environmental policy,Environmental good,Partnership,Spatialized contract,ancillary statistics,Bunching |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01649804&r=env |
| By: | Eskander, Shaikh M.S.U.; Barbier, Edward B. |
| Abstract: | We develop an overlapping generation model of rural agricultural households to examine whether tenure security and subsistence needs influence the choice between unexploited topsoil and investment in children's human capital as the mode of transfer of wealth. A unique dataset from Bangladesh finds that tenure security is associated with greater topsoil conservation and lower human capital investment. Therefore, there exists a tradeoff between these two modes of transfer. We suggest that increased public expenditure on schooling, which substitutes private expenditure, may lower the pressure on land and soil resources. |
| Keywords: | Human capital; Soil conservation; Tenure security |
| JEL: | Q15 F3 G3 |
| Date: | 2017–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:69196&r=env |
| By: | Bingdong Hou; Xin Tang; Chunbo Ma; Li Liu; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology); Hua Liao |
| Abstract: | Unclean cooking fuel is widely used in the developing world, and it is the main indication of energy poverty in rural China. In this paper, we investigate the situation, transition, and determination of fuel choice in China's rural household cooking. Using the large scale micro-survey data of China Health and Retirement Longitudinal Study (CHARLS), we find that there is a big gap in using commercial cooking fuels between rural and urban households: 60% of the rural households adopt traditional biomass resource as their main fuel for cooking in 2011, while this figure is less than 5% in the urban. We also identify a significant spatial divide in fuel choice: in southeastern coastal areas, about 40% of the rural households prefer solid fuels, while this figure jumps to over 80% in northeastern areas. The longitudinal data also reveal a significant transition from traditional to modern fuels from 2008 to 2012. Moreover, the distance to the most commonly used farmer's market, education background, coal price and female labor participation are all influential in determining the households' choices. |
| Keywords: | cooking fuel; solid fuel; household; energy poverty; rural China |
| JEL: | Q54 Q40 |
| Date: | 2018–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:110&r=env |
| By: | Kevin Luo (Graduate School of Economics, Kobe University); Tomoko Kinugasa (Graduate School of Economics, Kobe University) |
| Abstract: | In this study, employing the synthetic control method (Abadie et al., 2003), we examine the short- and long-term effects of the 2008 Sichuan earthquake on saving behaviors. The results indicate that, in the short-run, the earthquake has caused drastic declines in household saving rates—from 24% to 7% and from 23% to 21% for rural and urban populations, respectively. However, household saving rates recovered to the baseline shortly after the shock, and they exactly match their counterfactual counterparts in the period ahead. The estimates imply that, at the aggregate level, the earthquake has no discernible long-run impact on the saving propensity of the affected population. |
| Keywords: | Natural disaster, Sichuan earthquake, Saving, Synthetic control method, long-term impact |
| JEL: | Q54 D81 E21 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1804&r=env |