|
on Environmental Economics |
|
Issue of 2019‒04‒15
fifty-two papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Booth, Pamela; Brown, Philip; Walsh, Patrick |
| Abstract: | Using a survey of New Zealand farmers, we explore the effect of drought intensity on future climate expectations and plans for land-use change, focusing on the window of experience farmers use in planning. Results suggest farmers reference the recent past rather than the historical record, indicating farmers routinely update environmental signals. Higher expectations of drought are also positively associated with land-conversion plans. Our findings suggest that while weather shocks may speed adaptation in expectation of climate change, the relatively short period of reference over which farmers compare drought may concurrently decelerate adaptation as drought becomes the “new normal”. |
| Keywords: | Environmental Economics and Policy, Farm Management |
| Date: | 2018–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar18:287269&r=all |
| By: | Dinda, Soumyananda |
| Abstract: | This study focuses on India’s climate change mitigation strategy through trade and how India gradually moves forward towards the goal of sustainable development path. The paper highlights trade performances of climate friendly goods and technology (CFGT) in India during 2002-20017 and suggests possible solution through trade channels that might mitigate climate change through disseminating and exchanging the low carbon and clean technologies, which improve energy efficiency and minimizes environmental impacts. The products associated with clean technologies which have relatively less adverse impact on the environment. This paper attempts to realize India’s CFGT export and import, and quantify trade opportunities of CFGT in India. With these it also identifies constrains and helps to widen capacity and strengthen its capability in the advancement of capturing new opportunities in production and trade in CFGT. India should adopt few policies to improve and raise CFGT production while trade ensures availability of technologies |
| Keywords: | Climate Change, Climate Mitigation, Energy Efficiency, India, CFGT, Trade, Climate Friendly Goods and Technology, Export and Import |
| JEL: | C21 C51 C54 O3 O53 Q27 Q37 Q5 Q52 Q56 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93031&r=all |
| By: | Shirley, James |
| Abstract: | This paper explores the potential contribution to climate change mitigation resulting from the adoption of the Climate-Smart Agriculture (CSA) mitigation scheme methodologies. CSA is an internationally recognized approach that helps guide the actions needed to transform and reorient agricultural systems, to effectively support sustainable development and ensure food security in a changing climate. CSA is based on principles developed in conjunction with the Intergovernmental Panel on Climate Change (IPCC), so its Mitigation Scheme framework of differentiated incentivization is readily transferable across IPCC regions, without the need for radical new policy initiatives. This methodology links with an emissions trading scheme (ETS), as an incentive compatible mechanism to improve environmental outcomes. In this case the NZETS trades carbon certificates based on farm systems that effectively measure, report and ultimately verify the land user’s contribution towards the country’s nationally determined contributions (NDCs). |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy |
| Date: | 2018–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar18:287270&r=all |
| By: | Humberto Llavador (Universitat Pompeu Fabra); John E. Roemer (Dept. of Political Science, Yale University); Joaquim Silvestre (University of California, Davis) |
| Abstract: | Carbon budgets are a useful way to frame the climate mitigation challenge and much easier to agree upon than the allocation of emissions. We propose a mechanism with countries agreeing on the global carbon budget, while the decision to emit is decentralized at the country level. The revenue is collected in a global fund and allocated according to endogenously defined weights proportional to the marginal cost of climate change. The proposal features a unanimous agreement of the national citizenries of the world and global Pareto e?iciency. We run a simulation in the spirit of the Paris Agreement, with zero emissions after 2055. At the Global Unanimity Equilibrium, permits are priced at 90$/tC, yielding 1.3 trillion dollars annually. Africa, India and the less developed countries in Asia are the only net recipients, while the US and China are the largest net contributors. |
| Keywords: | Unanimity equilibrium, Climate change, Carbon pricing, Integrated assessment models |
| JEL: | Q5 D5 D6 H0 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2172&r=all |
| By: | Philipp M. Richter; Marco Runkel; Robert C. Schmidt |
| Abstract: | The loss of international competitiveness of domestic industries remains a key obstacle to the implementation of effective carbon prices in a world without harmonized climate policies. We analyze countries’ non-cooperative choices of emissions taxes under imperfect competition and mobile polluting firms. In our general equilibrium setup with trade, wage effects prevent all firms from locating in the same country. While under local or no pollution countries achieve the first-best, under transboundary pollution taxes are inefficiently low and lower than under autarky where only the ‘standard’ free-riding incentive distorts emissions taxes. This effect is more pronounced when polluting firms are mobile. |
| Keywords: | strategic environmental policy, firm location, carbon leakage, general equilibrium |
| JEL: | F12 F18 H23 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7566&r=all |
| By: | Parminter, Terry; Proctor, Kate; Bowen, Tom |
| Abstract: | In 2018, the Manawatu Wanganui Regional Council (Horizons) began examining natural resource management in the region in preparation for a plan review. This includes the information provided by dairy farmers as part of their land-use consent applications. In this paper the authors describe the reductions in greenhouse gas emissions (GHG) emissions being achieved by dairy farmers in the Tararua District as a co-benefit from reducing nitrogen losses to water. The sample of 126 dairy farms came from a relatively high rainfall area (1000-2000mm/yr) and mixed soil types (mostly brown and allophanic soils). In 2012-13, the annual losses of nitrogen to water averaged 40 kgN/ha (ranging from 24-60 kgN/ha). The annual GHG emissions averaged 11.2 t/ha (ranging from 10-15 t/ha). There was a very poor relationship between individual farm nitrogen losses to water and their GHG emissions (R2 <0.1). To model the effect of management practices that reduce nitrogen losses to water, the farms were placed into five groups using cluster analysis. Five clusters of farms were modelled in Overseer®, to represent all the dairy farms in the catchment. Management mitigations were introduced sequentially to each cluster farm and the nitrogen losses to water calculated over an expected 20 year timeframe. When the changes in GHG emissions were compared with the expected reductions in nitrogen losses, a possible co-benefit became apparent. Across the representative dairy farms in the catchment, after introducing the management mitigations for improving water quality, the GHG percentage reductions were estimated to be around 64% of the percentage reductions in nitrogen losses to water. From these results, it appears likely that dairy farmers in the Tararua District will achieve significant reductions in GHG emissions from the adoption of management practices designed to reduce nitrate losses to water. |
| Keywords: | Farm Management |
| Date: | 2018–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar18:287271&r=all |
| By: | Jayasooriya, Sujith |
| Abstract: | Impact of globalization in terms of environmental degradation over trade liberalization is renowned strong theoretical underpinning in the literature. Nevertheless, testing Environmental Kuznets model of trade liberalization is not adequately estimated to provide pragmatic evidences for optimal environmental policy designs. Besides identifying the Environmental Kuznets Hypothesis (EKH); testing for (i) CO2 emission and economic growth (ii) CO2 emission and trade openness, (iii) changes of emissions over simulated trade openness under the experiential Environmental Kuznets Curve (EKC) was estimated using dynamic panel data estimation with Instrumental Variable-Generalized Methods of Moments. The paper used innovative approach to measure the scale effect after performing series of approximations of EKH relationships, a non-linear relationship between percentage changes of CO2 emission with respect to the simulated trade openness, are predicted using Monte Carlo simulation experiments. Data from WDI of World Bank was used to model the EKC relationships. The results provides evidences that the impacts are considered as the magnifier effect, as this experimentation shows that the increase of trade openness, under these economic situations need to increase 400% to reach the maximum % of CO2 emissions to decrease gradually. The South Asian Association for Regional Corporation (SAARC) countries cannot increase the trade openness for eight times from current level of trade openness to minimize the emissions, thus high emission rates with increase of trade openness can’t be avoided without incorporation of environmental policy instruments. This study also verified that when trade liberalization eliminates subsidies, inducing less environmental friendly effects in the production processes, both trade flows and quality of the environment improves. Finally, the study produced evidences for policymakers to consider the regulatory effect of the trade liberalization in the SAARC region. The paper recommends movements towards the free trade intimidate the optimal environmental standards. Thus, optimal trade openness is essential for amending the SAARC regional trade agreement for environmental effects with regulations for minimizing the environmental impacts and sharing the common benefits among partners for designing the open economic policies. |
| Keywords: | EKC, IV-GMM, Emissions, Trade Openness, SAARC |
| JEL: | F1 F14 F18 Q5 |
| Date: | 2019–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93203&r=all |
| By: | Francesco Aiello (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria); Paola Cardamone (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria); Lidia Mannarino (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria); Valeria Pupo (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria) |
| Abstract: | This paper investigates how family and non-family firms differ in terms of their capability to introduce environmental innovation, which is measured by green patents. The analysis is carried out using a large patenting data set related to the inventions produced by about 4200 Italian manufacturing firms over the period 2009–2017. The results show that family firms are less likely than non-family firms to implement innovations in green technologies. Moreover, the role played by the stock of knowledge and the environmental management system certification differs across firm type. |
| Keywords: | eco-innovation, green patent, family firms |
| JEL: | O31 C23 G34 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:201904&r=all |
| By: | Tipper, Adam |
| Abstract: | Environmental accounting has emerged as a global response to the shortcomings of the System of National Accounts (SNA) to reflect environmental considerations. Stats NZ is developing environmental-economic accounts to meet widespread needs around understanding the impacts and dependencies of the economy on the environment and develop statistics that show progress beyond that of GDP growth. This paper provides an overview of environmental-economic accounting, including its application to ecosystems and how it may be used to understand the stocks and flows of natural resources in New Zealand, its use in economic analysis, and Stats NZ’s work to date and future developments. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar18:287274&r=all |
| By: | Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Gravert, Christina (University of Copenhagen, Department of Economics); Johansson-Stenman, Olof (Department of Economics, School of Business, Economics and Law, Göteborg University); Kurz, Verena |
| Abstract: | We discuss the use of green nudges – nudges intended to reduce negative externalities – as an environmental policy instrument. A review of empirical studies reveals that green nudges can have a sizeable impact on behavior and the environment, but that the effects are context dependent. In the policy discussion, drawing on both the empirical overview and basic welfare-economic models, it is emphasized that while green nudges seem to have a large potential, they offer no panacea for solving environmental problems. Instead, they should be seen as a policy instrument among others in the regulator’s toolbox. In particular, we discuss the potential role of nudging when environmental externalities can be dealt with using optimal Pigovian taxes, and when they cannot. Nudging has a greater potential when such taxes are not available or feasible. |
| Keywords: | nudge; environmental policy; behavior |
| JEL: | D90 H21 H23 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0756&r=all |
| By: | Chort, Isabelle (Université de Pau et des pays de l’Adour); de la Rupelle, Maëlys (Paris School of Economics) |
| Abstract: | This paper uses state-level data on migration flows between Mexico and the U.S. from 1999 to 2011 to investigate the migration response to climate shocks and the mitigating impact of an agricultural cash-transfer program (PROCAMPO) and a disaster fund (Fonden). While lower than average precipitations increase undocumented migration, especially from the most agricultural states, Fonden amounts decrease the undocumented migration response to abnormally low precipitations during the dry season. Changes equalizing the distribution of PROCAMPO and favoring vulnerable producers in the non irrigated ejido sector mitigate the impact of droughts on migration, especially for a high initial level of inequality. |
| Keywords: | international migration, climate, public policies, weather variability, natural disasters, Mexico-U.S. migration, inequality |
| JEL: | F22 Q54 Q18 Q18 J61 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12227&r=all |
| By: | Thomas Douenne (Paris School of Economics) |
| Abstract: | This paper studies the role of preferences on the link between disasters and growth. An endogenous growth model with disasters is presented in which one can derive closed-form solutions with non-expected utility. The model distinguishes disaster risks and disaster strikes and highlights the numerous mechanisms through which they may affect growth. It is shown that separating aversion to risk from the elasticity of inter-temporal substitution bears critical qualitative implications that enable to better understand these mechanisms. In a calibration of the model, it is shown that for standard parameter values, the additional restriction imposed by the time-additive expected utility can also lead to substantial quantitative bias regarding optimal risk-mitigation policies and growth. The paper thus calls for a wider use of non-expected utility in the modeling of disasters, in particular with respect to environmental disasters and climate change. |
| Keywords: | Environmental disasters, Endogenous growth, Recursive utility, Precautionary savings |
| JEL: | E21 O4 Q54 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2019.05&r=all |
| By: | Stefano Ramelli (University of Zurich - Department of Banking and Finance); Alexander F. Wagner (University of Zurich - Department of Banking and Finance; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI); Swiss Finance Institute); Richard J. Zeckhauser (Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)); Alexandre Ziegler (University of Zurich - Department of Banking and Finance) |
| Abstract: | Donald Trump's 2016 election and the subsequent nomination of Scott Pruitt, a climate skeptic, to lead the Environmental Protection Agency drastically downshifted expectations on US climate change policy. Firms' stock-price reactions to these events reveal whether their climate strategies affected their valuations. As widely reported, firms in industries with high carbon intensity benefited, at least briefly. It might be expected that companies with "responsible" strategies on climate change would also have lost value, since they were paying for actions that seemed less urgent. In fact, investors actually rewarded such firms. The analysis shows that this observed climate responsibility premium results, at least in part, from the strategic behavior of long-horizon investors who looked into the future to assess the valuation of corporations. |
| Keywords: | Climate change, CSR, election surprise, ESG, event study, stock returns |
| JEL: | G14 G38 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp1863&r=all |
| By: | Sylvain Weber; Reyer Gerlagh; Nicole A. Mathys; Daniel Moran |
| Abstract: | The amount of CO2 embedded in trade has substantially increased over the last decades. We study the trends and some drivers of the carbon content of trade over the period 1995-2009. Our main findings are the following. First, the mix of traded goods tends to have higher emission intensity than the average mix of final demand. Second, dirty countries tend to specialize in emission-intensive sectors. This finding suggests that trade liberalization may increase global emissions. Third, the share of goods produced in emission-intensive countries is rising, consequently increasing global emissions. Finally, we find that coal abundance is an important driver of net CO2 exports, and abundance increases exports. These findings highlight the importance of considering trade when designing CO2 reduction strategies. They also suggest that, if left unattended, continued growth in global trade will increase – not decrease – global CO2 emissions. |
| Keywords: | international trade, embodied emissions, carbon leakage, multi-region input-output analysis, fossil fuels, Kyoto Protocol |
| JEL: | F18 Q43 Q54 C67 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7562&r=all |
| By: | Minhaj Mahmud; Yasuyuki Sawada; Eiji Yamada |
| Abstract: | This paper reports on the first attempt to measure the value of statistical life (VSL) in the context of mortality risk from air pollution in urban Bangladesh, using the contingent valuation (CV) method. The CV survey was conducted in 2013 in Dhaka and Chittagong, the two most densely populated cities in the country. We asked individuals willingness to pay (WTP) for mortality risk reduction from air quality improvement program and found that willingness to pay is correlated with the socio-economic characteristics, health status, and risk perception of the respondents, consistently with existing studies. The bootstrapped mean of VSL is ranged from 17,480-22,463 USD in purchasing power parity terms, which is equivalent to 9.78-12.57 times of GDP per capita of Bangladesh. Considering our study setting, the results we obtained may be regarded as a lower bound of VSL estimates in the context of environmental risk reductions in Bangladesh. |
| Keywords: | value of statistical life, willingness to pay, contingent valuation, air pollution, Bangladesh |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:190&r=all |
| By: | Adrien Fabre (Paris School of Economics and University Paris 1 Panthéon Sorbonne); Mouez Fodha (Paris School of Economics and University Paris 1 Panthéon Sorbonne); Francesco Ricci (CEE-M, Univervité de Montpellier, CNRS, INRA, SupAgro, Montpellier, France) |
| Abstract: | The production of energy from renewable sources is much more intensive in minerals than that from fossil resources. The scarcity of certain minerals limits the potential for substituting renewable energy for scarce fossil resources. However, minerals can be recycled, while fossils cannot. We develop an intertemporal model to study the dynamics of the optimal energy mix in the presence of mineral intensive renewable energy and fossil energy. We analyze energy production when both mineral and fossil resources are scarce, but minerals are recyclable. We show that the greater the recycling rate of minerals, the more the energy mix should rely on renewable energy, and the sooner should investment in renewable capacity take place. We confirm these results even in the presence of other better known factors that affect the optimal schedule of resource use: growth in the productivity in the renewable sector, imperfect substitution between the two sources of energy, convex extraction costs for mineral resources and pollution from the use of fossil resources. |
| Keywords: | Renewable and Non-Renewable Natural Resources, Mineral Resources, Recycling, Energy Transition |
| JEL: | Q3 Q2 Q42 Q54 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2019.06&r=all |
| By: | Zengkai Zhang (College of Management and Economics, Tianjin University, China China Academy of Energy, Environmental and Industrial Economics, China); ZhongXiang Zhang (Ma Yinchu School of Economics, Tianjin University, China China Academy of Energy, Environmental and Industrial Economics, China); Kunfu Zhu (University of International Business and Economics, Beijing, China) |
| Abstract: | A number of studies have compared national carbon abatement responsibility under different carbon accounting schemes. However, the difficulty of the shift among different national carbon accounting schemes has rarely been quantitatively evaluated in the literature. Spatial production fragmentation over the recent decades has led to geographical separation among the primary inputs supplying regions, carbon emitting regions, and final consuming regions. The purpose of this paper is to reveal the effects of spatial production fragmentation on the shift from production-based to consumption-based and income-based national carbon accounting. Based on both demand- and supply-driven input-output analytical frameworks, this paper analyses the allocation of carbon responsibility for embodied and enabled emissions along production chains over the period 1995-2009. It was found that as much as 25% of embodied emissions and 20% of enabled emissions crossed national borders more than once in 2009. The shift among different carbon accounting schemes is not only related to the magnitude of trade related emissions but also related to border-crossing frequency associated with emissions embodied in or enabled by international trade. The increasingly fragmented production networks complicate the shift from production-based to consumption-based or income-based accounting and weaken the effectiveness of consumption-based or income-based accounting. |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1901&r=all |
| By: | Brevik Wangsness, Paal (School of Economics and Business, Norwegian University of Life Sciences); Proost, Stef (Department of Economics-KULeuven); Løvold Rødseth , Kenneth (Institute of Transport Economics) |
| Abstract: | We observe a rapidly rising share of the passenger car fleet becoming electric as policy makers keep making the purchase and use of electric vehicles (EVs) more favorable in the pursuit of reducing pollution. The electrification of transport will make the transport and energy systems more intertwined: EV-friendly transport policies increase the demand for power, thus challenging the distribution grid’s capacity, while electricity policies immediately impact on the generalized costs of driving EVs. This paper develops a stylized economic model for passenger transport in the greater Oslo area where the agents’ endogenous choice of car ownership, transport pattern and EV home charging is determined jointly in equilibrium. If enough EV-owning agents charge during power peak hours, costly grid expansions may be needed. We examine how the distribution grid company can respond in order to mitigate these costs with different pricing schemes and how this in turn affects the transport equilibrium. We find that applying peak tariffs for the grid will help strike a better balance between investment costs and EV-owners’ disutility of charging during off-peak hours. |
| Keywords: | electric vehicles; climate policy; urban transport policy; transport modeling; electricity distribution costs |
| JEL: | H71 Q41 Q48 Q54 Q58 R41 R48 |
| Date: | 2019–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsseb:2019_001&r=all |
| By: | Chedrak Chembessi (GEOLAB - Laboratoire de Géographie Physique et Environnementale - UCA - Université Clermont Auvergne - UBP - Université Blaise Pascal - Clermont-Ferrand 2 - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société - UNILIM - Université de Limoges - CNRS - Centre National de la Recherche Scientifique, CRAD - Centre de recherche en aménagement et développement - Université Laval, GEOLAB-CE - Capital Environnemental - GEOLAB - Laboratoire de Géographie Physique et Environnementale - UCA - Université Clermont Auvergne - UBP - Université Blaise Pascal - Clermont-Ferrand 2 - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société - UNILIM - Université de Limoges - CNRS - Centre National de la Recherche Scientifique); Christophe Beaurain (GEOLAB - Laboratoire de Géographie Physique et Environnementale - UCA - Université Clermont Auvergne - UBP - Université Blaise Pascal - Clermont-Ferrand 2 - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société - UNILIM - Université de Limoges - CNRS - Centre National de la Recherche Scientifique, GEOLAB-CE - Capital Environnemental - GEOLAB - Laboratoire de Géographie Physique et Environnementale - UCA - Université Clermont Auvergne - UBP - Université Blaise Pascal - Clermont-Ferrand 2 - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société - UNILIM - Université de Limoges - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The emergence of new economics models which must respond to issues of ecological transition has carried some eco-innovation processes. Then, industrial and territorial ecology, characterized as one of these new economic models, through a systemic approach, is based on organizational, technological and social changes. Its implementation must aim to reduce natural resources consumption and design a new territorial development through various forms of competitiveness and attractiveness. Therefore, this article underlines the industrial ecology as innovation process within multi-scalar approaches : firms, network of firms and territories, and multi-level perspective. Data are from industrial synergies implemented in city of Dunkerque and harbor of La Rochelle in France. |
| Abstract: | Les enjeux de transition écologique ont fait émerger de nouveaux modèles économiques qui portent à travers eux des processus d'éco-innovation. L'écologie industrielle et territoriale (EIT) se positionne au cœur de ces modèles économiques comme un processus que l'on veut systémique, fondé sur des innovations organisationnelles, technologique et sociale. Sa mise en oeuvre devrait ainsi conduire à transcender les logiques consuméristes de ressources naturelles, d'une part ; et d'autre part aider à un redéveloppement territorial à travers diverses formes de compétitivité et d'attractivité. En s'appuyant sur des synergies industrielles à Dunkerque et au Port de La Rochelle, cet article propose une lecture à différentes échelles : entreprises, réseau d'entreprises et territoires de l'écologie industrielle comme dynamique d'innovations. |
| Keywords: | Actors Network,Innovations.,Innovations,Territories,Network of Actors,Industrial and Territorial Ecology,Réseau d'acteurs,Territoires,Réseau d’acteurs,Écologie Industrielle et Territoriale |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01952455&r=all |
| By: | Annalisa Marini (University of Exeter) |
| Abstract: | Drawing on the most recent advances of the panel VAR literature, we investigate the impact of weather on commodity prices. We first test our model against alternative models. Then, we use it to simulate scenarios to study the impact of weather on commodity price transmission. We propose a framework that can be generalized to assess the impact of weather on a variety of commodity markets. The results show that (i) while shocks to temperatures affect commodity prices, precipitations are less relevant; (ii) an increase in temperatures is likely to increase prices; (iii) the impact on prices is not only direct but it spills over to other exporting countries; (iv) simulating a scenario compatible with global warming we find that it is likely to lead to a substantial increase in commodity prices and spillover effects; (v) these effects are amplified if we account for a contemporaneous shock to the economy. We discuss implications for the future, which can be useful for policy implementation. |
| Keywords: | PVAR, Commodity Price Transmission, Spillovers, Climate Change |
| JEL: | F00 C3 C5 Q1 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:1902&r=all |
| By: | Mukherjee, Sacchidananda (National Institute of Public Finance and Policy) |
| Abstract: | In World Energy Outlook 2018, India's total primary energy demand (TPED) is ex-pected to grow from 898 million tonne of oil equivalent (Mtoe) in 2017 to 1465 Mtoe in 2030. India's growth in TPED during 2017 to 2030 is expected to be the single largest source of global growth in TPED. India's share in world's TPED will go up from 6.4 percent in 2017 to 9.1 percent in 2030. With rising demand for energy, India's contribution in world's energy-related total CO2 emission is expected to go up from 6.7 percent in 2017 to 10.6 percent in 2030. Though India's per capita CO2 emission is one-third of world's average, the rising contribution in CO2 emission is mostly attributable to high emission intensity of India's GDP. It is expected that India will be the single largest driver of global growth in total energy-related CO2 emission during 2017-2030. Achieving energy security is important for India to sustain high economic growth and socio-economic wellbeing of Indian populace. However, it would be important for India to reduce emission intensity of GDP and explore low carbon energy security path through inter-regional energy cooperation. Coal is the single largest source of India's total primary energy demand and it is expected to be so in 2030. Coal is predominantly used in India's power sector and it con-tributes 71 percent in India's total energy-related CO2 emission. Reducing dependence on coal in power sector could be the foremost priority in achieving low carbon energy secu-rity for India. Power sector contributes 53 percent of India's total energy-related CO2 emission in 2017 and it is expected to fall to 46 percent in 2030. India needs to explore options for electricity trade rather than high value primary energy sources for power gen-eration to reduce dependence on energy imports as well as greening up the power sector. Being net importer, 58 percent of India's trade imbalance is attributed to import of energy sources. Given the vast potential exists in non-hydro renewable power generation in In-dia, it would be important for India to explore electricity trade in the Asia-Pacific region by mobilizing finance to invest in inter-regional electricity generation and transmission infrastructure. India's objectives to achieve energy security and environment sustainability need to be integrated. This paper explores challenges in achieving India's low-carbon energy secu-rity and possible scope for Asia-Pacific energy cooperation thereof. |
| Keywords: | Energy security ; CO2 emission ; inter-regional energy cooperation ; India |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:19/259&r=all |
| By: | Jean-Pierre Amigues (TSE (INRA, IDEI)); Michel Moreaux (TSE (Université de Toulouse Capitole)); Nguyen Manh-Hung (TSE(INRA)) |
| Abstract: | It is well known that the price and consumption paths of most nonrenewable resources, including the fossil primary energies, do not follow the paths predicted by the standard Hotelling rule (Krautkraemer,1998, Gaudet, 2007). We develop a model in which a dedicated capital together with the fossil fuel are both required to produce useful energy. Starting from a state of the economy in which the fossil fuel is not yet exploited, we characterize the optimal path of the double transition: The first transition from the initial renewable energy regime to a mixed or full fossil fuel regime and later the second transition from the fossil fuel regime back to a renewable energy regime when the available stock of the fossil fuel becomes more and more rare. We show that, absent any technical progress, the useful energy price must first decrease, next be constant during the phase of maximum expansion of the fossil fuel energy consumption before entering the phase of decreasing use of the fossil energy. Only this third phase of decreasing fossil fuel consumption looks like a standard Hotelling path. |
| Keywords: | exhaustible resources, renewables, energy transition, Hotelling rule |
| JEL: | Q00 Q32 Q43 Q54 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2019.07&r=all |
| By: | Fabrice Ochou (Université Félix Houphouët-Boigny d’Abidjan-Cocody - Université Félix Houphouët-Boigny d’Abidjan-Cocody - Université Félix Houphouët-Boigny d’Abidjan-Cocody); Philippe Quirion (UMR CIRED - Centre International de Recherche sur l'Environnement et le Développement - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2019–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02080392&r=all |
| By: | Cyril Bourgeois (UMR CIRED - Centre International de Recherche sur l'Environnement et le Développement - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Louis-Gaëtan Giraudet (ENPC - École des Ponts ParisTech, UMR CIRED - Centre International de Recherche sur l'Environnement et le Développement - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Philippe Quirion (UMR CIRED - Centre International de Recherche sur l'Environnement et le Développement - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | As carbon taxes gain traction and grow tighter in OECD countries, the question of their recycling becomes crucial for political acceptance. Considering the impact of the French carbon tax in the residential sector, we examine the trade-offs between fuel poverty alleviation, energy savings and economic leverage for two revenue-recycling options-as a lump-sum payment or as a subsidy for energy efficiency improvement, each restricted to low-income households-defined as those belonging to the first two quantiles of the income distribution. We do so using Res-IRF, a highly detailed energy-economy model that interacts housing features (single vs. multi-family, energy efficiency, heating fuel) with key household characteristics (tenancy status, income of both owners and occupants). We find that the energy efficiency subsidy recycling is superior to the lump-sum payment in all respects; it even fully offsets the regressive effect of the carbon tax from 2025 onwards. No recycling, however, effectively addresses fuel poverty in private, rented housing. |
| Keywords: | carbon tax,revenue-recycling,building sector,fuel poverty,energy efficiency subsidies JEL codes: D63,H23,Q47 |
| Date: | 2019–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02073964&r=all |
| By: | Büchele, Richard; Kranzl, Lukas; Hummel, Marcus |
| Abstract: | In this work a method for integrated strategic heating and cooling planning on regional level is presented and applied for the case study city of Brasov. The overall methodology comprises the calculation of the cost-optimal combination of heat savings with either district heating or individual supply technologies for different building groups located in different areas according to the availability of a current district heating network. This optimal combination is calculated for different scenarios and framework conditions, and different indicators like total system costs, total CO2 emissions, share of renewables etc. are calculated and compared to analyse the economic efficiency as well as the CO2 reduction potentials of various options to save heat and supply heat in the buildings. The results of the assessment show that at least a certain amount of heat savings is cheaper than all assessed heat supply options for all building groups but that renewable supply options are not the most economical alternatives per se in the assessed case study under stated conditions. The presented integrated planning process reveals that a long term planning is essential to reach decarbonisation goals and that current framework conditions should be adapted to generate more favourable conditions for renewable heating systems. |
| Keywords: | District heating; Heat savings and supply; Heating and cooling planning; Regional level |
| JEL: | C60 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93235&r=all |
| By: | Agustina Laurito; Johanna Lacoe; Amy Ellen Schwartz; Patrick Sharkey; Ingrid Gould Ellen |
| Abstract: | Does school climate ameliorate or exacerbate the impact of neighborhood violent crime on test scores? |
| Keywords: | neighborhood violence, test scores, school climate and environment |
| JEL: | I |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:22946c6212374659afcb48ce0dc053e8&r=all |
| By: | Montserrat Guillén (Department of Econometrics and Riskcenter-IREA, University of Barcelona.); Mònica Serrano (Department of Economics and BEAT, University of Barcelona.); Francisca Toro (Department of Applied Economics, University of Oviedo, Spain.) |
| Abstract: | Recent behavioral literature shows that we can identify differences between women and men in diverse domains in a general context, such as empathy, social preferences and reaction towards competitiveness, risk aversion, etc. Regarding the environment, recent studies propose that women have more knowledge and concern about the climate change than men. In this context, however, there is little evidence to what extend these behavioral differences between women and men have been translated into consumption actions more environmental friendly. Within this approach, this paper evaluates different environmental footprints of consumption patterns of women and men. As a case study, we examine Spain during the period 2008-2013. Using data from Spanish input-output tables, environmental air accounts, and household expenditure surveys for the same period, the study give evidence that gender differences take a relevant and significant position according to Weighted Least Square regression. |
| Keywords: | Environmental impact, Greenhouse gases, Private Consumption, Gender, Multisectoral models, Econometric analysis, Spain. JEL classification: C81, D57, Q5. |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201906&r=all |
| By: | Gabriela Demarchi (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Subervie Julie (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Fernando Palha Leite (CENIBRA - Celulose Nipo-Brasileira SA); Jean-Paul Laclau (UMR Eco&Sols - Ecologie fonctionnelle et biogéochimie des sols et des agro-écosystèmes - IRD - Institut de Recherche pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement) |
| Abstract: | In a climate change context, changing temperature and precipitation pattern are expected to have strong impacts on Brazilian eucalyptus plantations. Implementing adaptive water-efficient management practices is thus becoming necessary to maintain high levels of productivity while preserving the water resources. This paper investigates the ability of eucalyptus farmers to modify their current silvicultural practices in order to adapt to drought in the near future. We ran a choice experiment in the state of Minas Gerais, among 80 eucalyptus producers, who were asked to choose from several management options associated with various financial supports. The results show that adaptation by reducing the length of the eucalyptus rotation proves to be by far the preferred option, despite the associated costs. On the contrary, reducing density appears to be the least chosen option by the respondents, which may suggest that they underestimate the benefits of this strategy. We moreover find a clear and relevant segmentation of farmers'choice behavior, the general preference for reducing the length of the eucalyptus rotation being driven by themost vulnerable farmers of the sample. |
| Keywords: | Brazil,water resources,drought,choice experiment,eucalyptus |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02086526&r=all |
| By: | Jang, Ho Geun (Tasmanian School of Business & Economics, University of Tasmania); Yamazaki, Satoshi (Tasmanian School of Business & Economics, University of Tasmania); Hoshino, Eriko (CSIRO Oceans and Atmosphere, Tasmania, Australia) |
| Abstract: | The management of small pelagic fisheries is notoriously difficult due to environmental regime changes that generate multi-decadal cyclic fluctuations in stock abundance. Lagged management responses to environmental factors can amplify the effects of fishing and may even result in stock collapse. In this paper, we develop an age-structured bioeconomic model to explore the effectiveness of alternative management approaches for cyclically fluctuating small pelagic fish stocks. The fishery outcomes are evaluated against the overall profit of the fishery and the intertemporal distribution of fishing profits. The model is parameterised for the Japanese sardine fishery, once the largest fishery in Japan, which has experienced a prolonged period of stock collapse over the last 100 years. The results show that the duration of fishery collapse is mostly determined by the extent of cyclic fluctuations in the recruitment of immature sardines, but that the effects of the fluctuations on the fishery are heightened by the cumulative impact of fishing. We further show that restricting fishing reduces the fishery’s overall profits, but smooths the intertemporal distribution of profits, resulting in greater intergenerational equity. This income smoothing effect is particularly pronounced when the stock exhibits high levels of cyclic fluctuations. |
| Keywords: | bioeconomic models, environmental fluctuations, Japan, small pelagic fisheries, intergenerational equity |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:tas:wpaper:29610&r=all |
| By: | Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Johansson-Stenman, Olof (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | While nudges are still mostly associated with affecting individual choices for their own long-run interest, i.e. dealing with internalities, they are increasingly used in order to reduce externalities, such as environmental consequences. While we are gaining increasing insights into when and how nudges work, much less attention has been given to the normative aspects of nudging as a policy instrument to deal with externalities. We investigate optimal prosocial nudging under a number of different settings in a world where a conventional Pigovian tax can be used to a varying extent. We find that nudges typically only play a limited role when optimal taxes can be implemented. What we denote encouraging moral nudges, i.e. nudges where people’s choices are affected by strengthening consumers’ moral norms for doing the right thing, are more likely to play a role even when the tax is optimal compared to purely cognitive nudges. In addition, if a nudge better can target the right consumers, then it might also be optimal to use even when an optimal tax can be implemented. We also present decision rules for the optimal size of a nudge when an optimal tax cannot be implemented. |
| Keywords: | nudge; environmental policy; behavior |
| JEL: | D90 H21 H23 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0757&r=all |
| By: | Juan David Urquijo Vanegas; Carlos Mateo Perilla Castañeda; Fabián Ricardo Martínez Cruz |
| Abstract: | Conocer el valor del desarrollo de la explotación de hidrocarburos para el sostenimiento de las finanzas de la economía colombiana es de vital importancia para entender cómo las técnicas de extracción no convencionales, como el fracking, pueden ser una alternativa para el crecimiento y complemento de la matriz energética del país. En este sentido, es conveniente evaluar en detalle las múltiples consecuencias económicas y ambientales que trae consigo la aplicación de tales técnicas, que pueden verse magnificadas en un contexto como el colombiano. Este documento se encarga de hacer una revisión histórica sobre la extracción de petróleo en Colombia en las últimas dos décadas enfocada, principalmente, en cómo el desarrollo se vería afectado por la implementación de las técnicas de fracturación hidráulica para la explotación de yacimientos no convencionales. El objetivo principal del artículo es dar a conocer cómo funciona esta técnica y los argumentos a favor y en contra de su implementación; se revisa la experiencia de Estados Unidos y se pretende predecir qué efectos se tendrán en materia social, económica y ambiental para el país. *** Knowing the value of the development of the hydrocarbons exploitation to sustain the finances of the Colombian economy is of vital importance to understand how non-conventional extraction techniques, such as Fracking, can be an alternative for growth and a complement the country's energy matrix. In this sense, it is convenient to evaluate in detail the multiple economic and environmental consequences brought about by the application of such techniques, which can be magnified in a context such as the Colombian one. This document reviews the history of oil extraction in Colombia over the last two decades, focusing mainly on how development would be affected by the implementation of hydraulic fracturing techniques for the exploitation of non-conventional oil deposits. The main objective of the article is to show how this technique works and the arguments for and against its implementation; it reviews the experience of the United States and aims to predict what effects will have in social, economic and environmental matters for the country. |
| Keywords: | fracking, fracturación hidráulica, petróleo, sostenibilidad, medio ambiente |
| JEL: | E23 E32 F20 L71 Q48 |
| Date: | 2019–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:col:000176:017222&r=all |
| By: | Michel, Pech; Kristell, Jegou |
| Abstract: | Facing budgetary restrictions, public environmental policies are turning to innovative schemes that meet objectives of results, a better adequacy of actions in the territories will allow access to new sources of financing, especially private ones. This is reflected at European level by a desire to move towards more contractualisation (CAP 2020). It is in this context that the payments for environmental services (PES) appear in France as an attempt to modernize the agri-environmental policy, aiming at looking for a "fairer" payment for the farmers but also seeking a greater efficiency environmental. At the same time, many innovative financing tools are being developed (crowdfunding platforms, local complementary currencies, etc.) to respond to a growing desire of local actors to become involved in environmental decisions and to reclaim the use of their investments in a more equitable economy. From this observation, we have been able to draw an empirical model of PES implementation based on a concrete case (Breton agribusiness) that works. On the other hand, if contract law allows a simple and flexible implementation of adequate agri-environmental actions, it implies: i) An upward collective logic around a territorial project ii) A match between explicit local supply and demand for environmental services (ES) iii) A regulator to organize the marketing of ES (place of negotiation, communication and information) iv) To assess the compatibility between private and public payments (WTO rules) |
| Keywords: | Environmental Economics and Policy |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ags:inrasl:287432&r=all |
| By: | Robert G. Chambers; Konstantinos Chatzimichael; Vangelis Tzouvelekas (Department of Economics, University of Crete, Greece) |
| Abstract: | We used data from a 6-year survey of 60 apiaries in Greece and economic modelling to assess at the field level the effects of neonicotinoid insecticides on honey production. Based on production function estimates, we found that sub-lethal concentrations of two widely used neonicotinoid insecticides (imidacloprid and thiamethoxam) detected in the nectar of flowers resulted in substantial losses in honey production for commercial beekeepers in our sample. |
| Keywords: | neonicotinoids, apiaries, Greece, damage |
| JEL: | Q12 Q20 Q22 |
| Date: | 2019–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:crt:wpaper:1901&r=all |
| By: | McGeary, Kerry Anne (Robert Wood Johnson Foundation); Dave, Dhaval M. (Bentley University); Lipton, Brandy (San Diego State University); Roeper, Timothy (New York University) |
| Abstract: | As evidence of the negative effects of environmental tobacco smoke (ETS) has mounted, an increasingly popular public policy response has been to impose restrictions on smoking through 100% smoke-free bans (comprehensive smoking bans). Yet sparse information exists regarding the impact these smoking bans at the state and local levels have on the health of children and infants. A rationale for expansion of smoke-free laws implicitly presumes that potential public health gains from reducing adult cigarette consumption and declines in adult ETS exposure extend to children. However, if smokers compensate by shifting their consumption of cigarettes from public venues that impose a comprehensive smoking ban to smoking at home, then these policies may have a harmful effect on children and infants. This study provides estimates of how comprehensive smoking bans impact the venue of smoking, and the health of children and infants. Using models that exploit state- and county-level changes to smoking ban legislation over time, estimates suggest that smoking bans have improved the health of both infants and children, mainly through implementation of more comprehensive bans. Further, we find no evidence of displacement among smokers (both smokers with and without children in the household), and actually find that the bans had a positive spillover effect in terms of reducing smoking inside the home – an effect which may further explain the improvement in infant and children's health. Our effect magnitudes imply that expanding comprehensive coverage from 60% (current level) to 100% of the population can prevent between approximately 1,110 – 1,750 low birthweight births among low-educated mothers, resulting in economic cost savings of about $71 – $111 million annually. Health improvements among older children add to these economic benefits. |
| Keywords: | smoking ban, infants, children, health, smoking restrictions, compensatory behaviors, smoke-free air laws, prenatal smoking, secondhand smoke, maternal smoking |
| JEL: | D1 I1 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12194&r=all |
| By: | Ujjayant Chakravorty; Manzoor H. Dar; Kyle Emerick |
| Abstract: | We use two randomized controlled trials in Bangladesh to study a simple water conservation technology for rice production called “Alternate Wetting and Drying (AWD)”. Despite proven results in agronomic trials, our first experiment shows that AWD only saves water and increases profits in villages where farmers pay a marginal price for water, but not when they pay fixed seasonal charges. The second RCT randomly distributed debit cards that can be used to pay volumetric prices for irrigation water. This low-cost, scalable intervention causes farmers to place more value on the water-saving technology. Demand for the technology becomes less price-sensitive. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7560&r=all |
| By: | Schatzki, Todd (Analysis Group, Inc.); Stavins, Robert N. (Harvard Kennedy School) |
| Abstract: | California’s Greenhouse Gas (GHG) cap-and-trade program is a key element of the suite of policies the State has adopted to achieve its climate policy goals. The passage of AB 398 (California Global Warming Solutions Act of 2006: market-based compliance mechanisms) extended the use of the cap-and-trade program for the 2021-2030 period, while also specifying modifications of the program’s “cost containment†structure and directing CARB to “[e]valuate and address concerns related to overallocation in [ARB’s] determination of the allowances available for years 2021 to 2030.†The changes being considered by CARB will not only affect the program’s stringency, but also its performance by affecting the ability of the “cost containment†structure to mitigate allowance price volatility and the risk of suddenly escalating allowance prices. We address key design issues that were identified by the legislature in AB 398 and have been identified by CARB in its “Preliminary Concepts†white paper, including: (1) Price levels for the Price Ceiling and Price Containment Points; (2) Allocation of allowances between the auction budgets, Price Containment Points, and Price Ceiling; (3) “Overallocation†of GHG allowances; and (4) the program’s administrative and operational rules, such as procedures for distributing allowances to the market from the Price Ceiling or Price Containment Points, procedures for using allowances once distributed, and banking rules. |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp18-025&r=all |
| By: | Clémence Alasseur (FiME Lab - Laboratoire de Finance des Marchés d'Energie - Université Paris-Dauphine - CREST - EDF R&D - EDF R&D - EDF - EDF, EDF R&D - EDF R&D - EDF - EDF); Emmanuel Gobet (CMAP - Centre de Mathématiques Appliquées - Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique); Isaque Pimentel (CMAP - Centre de Mathématiques Appliquées - Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique, EDF R&D - EDF R&D - EDF - EDF); Xavier Warin (EDF R&D - EDF R&D - EDF - EDF) |
| Abstract: | Power producers are interested in valuing their power plant production. By trading into forward contracts, we propose to reduce the contingency of the associated income considering the fixed costs and using an asymmetric risk criterion. In an asymptotic framework, we provide an optimal hedging strategy through a solution of a nonlinear partial differential equation. As a numerical experiment, we analyze the impact of the fixed costs structure on the hedging policy and the value of the assets. |
| Keywords: | Hedging,asymmetric risk,fully nonlinear PDE,cost management,power plant |
| Date: | 2019–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02077740&r=all |
| By: | Philipp Krueger (University of Geneva - Geneva Finance Research Institute (GFRI); Swiss Finance Institute); Zacharias Sautner (Frankfurt School of Finance & Management gemeinnützige GmbH; European Corporate Governance Institute (ECGI)); Laura T. Starks (University of Texas at Austin - Department of Finance) |
| Abstract: | According to our survey regarding climate-risk perceptions, institutional investors believe these risks have financial implications for their portfolio firms and that the risks have already begun to materialize, particularly regulatory risks. Many of the investors, especially the long-term, larger and ESG-oriented investors, consider risk management and engagement, rather than divestment, to be the better approach for addressing climate risks. Although the investors believe that some equity valuations do not fully reflect climate risks, their perceived overvaluations are not large. In addition, a widespread view exists that climate-risk disclosure needs improvement. |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp1858&r=all |
| By: | Robert F. Engle III; Stefano Giglio; Bryan T. Kelly; Heebum Lee; Johannes Stroebel |
| Abstract: | We propose and implement a procedure to dynamically hedge climate change risk. To create our hedge target, we extract innovations from climate news series that we construct through textual analysis of high-dimensional data on newspaper coverage of climate change. We then use a mimicking portfolio approach based on a large panel of equity returns to build climate change hedge portfolios. We discipline the exercise by using third-party ESG scores of firms to model their climate risk exposures. We show that this approach yields parsimonious and industry-balanced portfolios that perform well in hedging innovations in climate news both in-sample and out-of-sample. The resulting hedge portfolios outperform alternative hedging strategies based primarily on industry tilts. We discuss multiple directions for future research on financial approaches to managing climate risk. |
| JEL: | G12 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25734&r=all |
| By: | Büchele, Richard; Kranzl, Lukas; Hummel, Marcus |
| Abstract: | District heating in general is seen as an important opportunity to decarbonise the heating sector especially in urban areas and therefore important to reach European and global climate goals. In this case study we analyse possible future scenarios for the city of Brasov, Romania. Like in many other cities in Eastern Europe a district heating system exists in the city, however, facing severe challenges like old and inefficient infrastructure and loss of consumers due to unreliability of supply over the last decades. This work assesses the impact of different policies on the feasibility of renewable and efficient heating under various conditions and suggests favourable policy frameworks to ensure an economically and ecologically viable future heating system for the city. |
| Keywords: | District heating; heat savings and supply; policy assessment; Eastern Europe; Romania |
| JEL: | C60 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93225&r=all |
| By: | Eloi Laurent (Observatoire français des conjonctures économiques) |
| Abstract: | Le « grand débat national », décidé et organisé par le pouvoir exécutif, va connaître son épilogue dans les prochaines semaines. Engendré par la révolte des « gilets jaunes » contre l’iniquité fiscale, il était logique qu’il suscite une réflexion sur la réforme de la fiscalité carbone, suspendue en décembre 2018, qui se trouve au point d’intersection exact entre les deux thèmes les plus débattus en ligne par les Français : « la transition écologique » et « la fiscalité et les dépenses publiques ». Nous ajoutons aujourd’hui une dimension supplémentaire à ce débat en proposant d’instituer pour 2020 une contribution climat anti-précarité énergétique. C’est l’occasion d’éclairer pour les citoyens et les décideurs certaines des options de réforme en présence, avant, éventuellement, de trancher. Le Tableau 1 présente les caractéristiques des quatre propositions les plus abouties et détaillées présentées ces dernières semaines, dont la nôtre (il en existe bien d’autres). |
| Keywords: | Environnement; Fiscalité ; Justice sociale; Réchauffement climatique; Taxe carbone |
| JEL: | H23 Q52 Q58 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/45d1fg9ilm83hbikhi6ko1htqf&r=all |
| By: | Collins, Heather; Gray, Dave |
| Abstract: | This paper explores dairy farmers and science-policy ‘ways of knowing’ water quality. Based on case-study research undertaken in the Manawatu-Wanganui region, different ways of knowing water quality were evident. Some farmers believed more emphasis was placed upon science-policy ways of knowing above farmers’ ways of knowing. This belief contributed to farmers’ disregarding and disbelieving Horizons’ information and contributed to the strong farmer resistance to Horizons One Plan. This paper poses the question: how can multiple ways of knowing water quality be acknowledged so stakeholders can communicate and participate more effectively in policy making processes? |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar18:287275&r=all |
| By: | Chris McDonald; Ana I. Moreno-Monroy; Laura-Sofia Springare |
| Abstract: | This paper adapts the OECD Regional Development framework to places with an Indigenous population. It identifies the importance of flexibility in geographic scale for organising policies for Indigenous communities, development objectives that reflect the self-determined and informed choices of Indigenous peoples, and implementing strategies for development based on the identification of local assets. |
| Keywords: | culture, Indigenous peoples, place, regional and rural development, sustainable development goals, well-being |
| JEL: | R58 |
| Date: | 2019–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2019/01-en&r=all |
| By: | Giovanni Peri; Akira Sasahara |
| Abstract: | This paper examines the impact of temperature changes on rural-urban migration using a 56km×56km grid cell level dataset covering the whole world at 10-year frequency during the period 1970-2000. We find that rising temperatures reduce rural-urban migration in poor countries and increase such migration in middle-income countries. These asymmetric migration responses are consistent with a simple model where rural-urban earnings differentials and liquidity constraints interact to determine rural-to-urban migration flows. We also confirm these temperature effects using country-level observations constructed by aggregating the grid cell level data. We project that expected warming in the next century will encourage further urbanization in middle-income countries such as Argentina, but it will slow down urban transition in poor countries like Malawi and Niger. |
| JEL: | J61 O13 R23 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25728&r=all |
| By: | Raja Rajendra Timilsima (Research Institute for Future Design, Kochi University of Technology); Koji Kotani (School of Economics and Management, Kochi University of Technology); Yoshinori Nakagawa (School of Economics and Management, Kochi University of Technology); Tatsuyoshi Saijo (Research Institute for Humanity and Nature) |
| Abstract: | “Intergenerational sustainability dilemma (ISD)†is a situation where the current generation chooses actions to her benefit without considering future generations under current economic and political systems, compromising intergenerational sustainability (Kamijo et al., 2017, Shahrier et al., 2017). We institute a new mechanism to improve intergenerational sustainability called “intergenerational accountability (IA)†and examine its effectiveness through field experiments consisting of ISD games (ISDGs). In Baseline ISDG, a sequence of six generations, each composed of three members, is organized, and each generation is asked to choose whether to maintain intergenerational sustainability (sustainable option) or maximize their payoff by irreversibly imposing costs on future generations (unsustainable option) within a 10-minute deliberation. With IA, each generation is asked to provide the reasons of her decision as well as her advice to future generations that are passed to subsequent generations. Our results show that generations under IA choose a sustainable option much more often than under Baseline ISDG, giving positive reasons and advice for sustainable options to subsequent generations. Overall, one-way communication of reasons and advice in IA is identified to function as a social device to not only transfer a common image but also decrease social distance over generations for intergenerational sustainability. |
| Keywords: | Intergenerational sustainability dilemma, intergenerational accountability, field experiments |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2019-2&r=all |
| By: | Xavier Timbeau (Observatoire français des conjonctures économiques) |
| Abstract: | À l’apogée de la crise de la dette souveraine en zone euro, nous nous sommes engagés dans un examen annuel de la croissance : iAGS -independant Annual Growth Survey. Le projet a fait l’objet d’un premier débat à la fin de l’année 2011 et le premier rapport a été publié en novembre 2011. Notre objectif, en collaboration avec le groupe S & D au Parlement européen, a consisté à discuter et à remettre en question la contribution de la Commission européenne au Semestre européen. Concrètement, il s’agissait de pousser la Commission européenne vers une politique macroéconomique plus réaliste, c’est-à-dire moins axée sur la réduction à court terme de la dette publique, et plus consciente des conséquences sociales de la crise et du parti-pris d’austérité. Pendant 7 ans, nous avons plaidé contre une austérité brutale qui ne permettait pas de contrôler la dette publique, nous avons mis en garde contre le risque catastrophique de la déflation. Nous avons également alerté sur les conséquences sociales de la combinaison mortelle de la crise économique, de la flexibilité accrue du marché du travail et de l’austérité sur les inégalités, en particulier dans la partie basse de la répartition des revenus. Nous ne pouvons pas prétendre avoir changé à nous seuls les politiques de l’Union, mais au moins avoir eu une influence, bien qu’insuffisante et trop tardive pour éviter les cicatrices laissées par la crise. |
| Keywords: | Commission européenne; Croissance; Environnement; Gouvernance européenne; Inégalités; Soutenabilité |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/6batrh9vjl97vok8um8epdi8hp&r=all |
| By: | Benjamin Elsner (University College Dublin, School of Economics); Florian Wozny (Institute of Labor Economics (IZA)) |
| Abstract: | This paper studies the long-term effect of radiation on cognitive skills. We use regional variation in nuclear fallout caused by the Chernobyl disaster in 1986, which led to a permanent increase in radiation levels in most of Europe. To identify a causal effect, we exploit the fact that the degree of soil contamination depended on rainfall within a critical ten-day window after the disaster. Based on unique geo-coded survey data from Germany, we show that people who lived in highlycontaminated areas in 1986 perform significantly worse in standardized cognitive tests 25 years later. This effect is driven by the older cohorts in our sample (born before 1976), whereas we find no effect for people who were first exposed during early childhood. These results are consistent with radiation accelerating cognitive decline during older ages. Moreover, they suggest that radiation has negative effects even when people are first exposed as adults, and point to significant external costs of man-made sources of radiation. |
| Keywords: | Environment, Human Capital, Radioactivity, Cognitive Skills |
| JEL: | J24 Q53 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:duh:wpaper:1901&r=all |
| By: | Martine Guibert (LISST - Laboratoire Interdisciplinaire Solidarités, Sociétés, Territoires - EHESS - École des hautes études en sciences sociales - UT2J - Université Toulouse - Jean Jaurès - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville - CNRS - Centre National de la Recherche Scientifique); Marie Forget (EDYTEM - Environnements, Dynamiques et Territoires de la Montagne - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc - CNRS - Centre National de la Recherche Scientifique); Silvina Cecilia Carrizo (CREDAL - CREDAL - Centre de recherche et de documentation de l'Amérique latine - UMR 7169 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2018–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02081949&r=all |
| By: | Dinda, Soumyananda |
| Abstract: | This paper examines empirical relationships, analyses determinants of CFGT trade in the pre-crisis period and predict bilateral trade flows using the gravity model in Asia. Income level, geographical distance, and developmental position of both trading partners, and country characteristics, economic policy reforms and available infrastructure are important determinants of CFGT trade and its sub-categories. Through trade gap, this paper estimates the value of trade opportunity of CFGT in Asia, identifies potential trading partners, and also suggests CFGT trade among the trade partners. |
| Keywords: | Gravity model, potential trade opportunity, CFGT, CCT, EEL, WE, SPVS, SAARC, ASEAN, APTA, Asia |
| JEL: | C20 C5 C54 O3 O53 Q5 Q56 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93238&r=all |
| By: | Maxim, Maruf Rahman; Zander, Kerstin |
| Abstract: | This paper synthesises the simulation studies concerning green tax reform (GTR) and employment double dividend (EDD) in European and non-European countries. The studies included investigate the effect of GTR on employment. We compared the simulation results between European and non-European countries to understand the impact of study region and our findings are fivefold. First, the simulation results suggest that GTR-driven EDD is observed in both European and non-European countries, but the average effect on employment in European countries (0.67%) is significantly greater than in non-European countries (0.18%). Second, optimal tax and tax revenue recycling policies in European and non-European countries for EDD are not identical. Reducing employers’ social security contributions (SSC) has the potential to generate EDD in both countries. However, a reduction in value added tax has the highest average effect on employment in European countries (1.62%), which negatively affects employment in non-European countries (−0.02%). Third, a reduction in personal income tax as a tax recycling method creates a marginally average employment dividend in non-European countries (0.16%) but is counterproductive in European countries (−0.15%). Fourth, other taxes, which predominantly represent mixed taxes, exhibit the highest EDD potential in both European (1.01%) and non-European (0.46%) countries. Finally, employment dividend diminishes over time, but a weak quadratic pattern has been observed that reveals an accelerating effect on employment in the long term. These reflections should be considered before employing GTR in non-European countries in order to yield EDD. |
| Keywords: | Green Tax Reform, Double Dividend, Employment |
| JEL: | E24 H21 H23 |
| Date: | 2019–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93226&r=all |
| By: | King Yoong Lim; Pengfei Jia |
| Abstract: | This paper explores the effects of a government tax policy in a growth model with economic transition and toxic housing bubbles applied to China. Such a policy combines taxing entrepreneurs with a one-time redistribution to workers in the same period. Under the tax policy, we find that the welfare improvement for workers is non-monotonic. In particular, there exists an optimal tax at which social welfare is maximized. Moreover, we consider the welfare effects of setting the tax at its optimum. We show that the tax policy can be welfare-enhancing, compare to the case without active policies. The optimal tax may also yield a higher level of welfare than the case even without housing bubbles. Finally, we calibrate the model to China. Our quantitative results show that the optimal tax rate is about 23 percent, and social welfare is signicantly improved with such a tax policy. |
| Keywords: | China, Economic Transition, Housing Bubbles, Welfare. |
| JEL: | O18 P31 R21 R28 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbs:wpaper:2018/03&r=all |
| By: | Nina Buchmann; Erica M. Field; Rachel Glennerster; Reshmaan N. Hussam |
| Abstract: | The 1994 discovery of arsenic in groundwater in Bangladesh prompted a massive public health campaign that led 20% of the population to switch from backyard wells to less convenient drinking water sources that had a higher risk of fecal contamination. We find evidence of unintended health consequences by comparing mortality trends between households in the same village that did and did not have an incentive to abandon shallow tubewells. Post-campaign, households encouraged to switch water sources have 46% higher rates of child mortality than those not encouraged to switch. Switching away from arsenic-contaminated wells also increased adult mortality. |
| JEL: | C81 C93 O12 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25729&r=all |