|
on Environmental Economics |
|
Issue of 2022‒05‒23
forty-five papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Elverdin, Pablo; Glauber, Joseph W.; Laborde Debucquet, David; Piñeiro, Valeria |
| Abstract: | Achieving world food security is more complex nowadays. It is not only necessary to pay attention to the availability of food, but also to the way in which it is produced, paying special attention to the impact of the food production systems on climate change and natural resources sustainability. The challenge is to produce a diversified basket of nutritious food in sufficient quantity while reducing greenhouse gas emissions and minimizing the impact on natural resources. Accomplishing these diverse goals requires an integrated strategy that takes into account increased productivity and the environmental sustainability of food production systems with a focus on efficient use of land, water, fertilizers and energy. |
| Keywords: | WORLD; trade; environment; sustainability; food production; natural resources; greenhouse gas emissions; agriculture; environmental sustainability |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:prnote:135830&r= |
| By: | Mukherjee, Sacchidananda (National Institute of Public Finance and Policy) |
| Abstract: | According to India's Third Biennial Update Report to the United Nations Framework Convention on Climate Change, electricity production contributes half of India's total carbon dioxide (CO2) emission (without LULUCF) and 40 per cent of CO2e (CO2 equivalent) emission in 2016. Coal and lignite based thermal power sector is the predominant source of electricity generation in India and contributes 74 per cent in 2019-20. In COP26, India has committed to achieve net-zero (in CO2e emission) target by 2070. Therefore, any strategy to reduce total CO2e emission in India cannot spare emission reductions from coal and lignite based thermal power plants (TPPs). To accelerate achieving India's emission intensity reduction target to 45 per cent, we explore a design of carbon tax for coal and lignite based TPPs. Given the constraints involved to design a carbon tax based on Pigouvian tradition, we estimate a revenue neutral rate of tax on CO2e emission by converting taxes on coal and lignite. To make the proposed carbon tax system less disrupting for tax administrations, we propose adjustments of input tax credits with carbon tax liability. The proposed carbon tax will be incentive-compatible, as carbon efficient TPPs will face lower carbon tax burden. |
| Keywords: | Emissions of Green House Gases (GHGs) ; Carbon Tax ; Revenue Neutrality ; Thermal Power Generation ; Coal and Lignite ; India |
| JEL: | H23 Q54 Q4 P43 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:22/382&r= |
| By: | Billio, Monica; Costola, Michele; Hristova, Iva; Latino, Carmelo; Pelizzon, Loriana |
| Abstract: | The present paper proposes an overview of the existing literature covering several aspects related to environmental, social, and governance (ESG) factors. Specifically, we consider studies describing and evaluating ESG methodologies and those studying the impact of ESG on credit risk, debt and equity costs, or sovereign bonds. We further expand the topic of ESG research by including the strand of the literature focusing on the impact of climate change on financial stability, thus allowing us to also consider the most recent research on the impact of climate change on portfolio management. |
| Keywords: | environmental,social,and governance factors (ESG),credit risk,debt cost,equity cost,sovereign bonds,portfolio management |
| JEL: | M14 G24 G11 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:349&r= |
| By: | Unfried, Kerstin (University of Göttingen); Wang, Feicheng (University of Göttingen) |
| Abstract: | Plastic waste trade has grown considerably in the last decades and has caused severe environmental problems in recipient countries. As the largest recipient, China has permanently banned the imports of plastic waste since 2018. This paper examines the causal effect of plastic waste imports on air pollution by exploiting China's experience of importing plastic waste and the recent import ban. Combining data on plastic waste imports with PM2.5 data at the city level for the years 2000-2011, we find that plastic waste imports increased PM2.5 density significantly. This effect is linked to expanded production in the waste processing sector and an increased number of incineration. To evaluate the impact of the import ban on air quality, we employ daily data on air pollution between 2015 and 2020. Our difference-in-differences results show that affected cities, relative to other cities, experienced a significant improvement in air quality following the ban. These findings suggest potential environmental gains from banning plastic waste imports in other countries. |
| Keywords: | PM2.5, air pollution, waste import ban, plastic waste trade, China |
| JEL: | F18 F64 Q53 Q56 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15218&r= |
| By: | Ruhnau, Oliver; Schiele, Johanna |
| Abstract: | Electrolytic hydrogen complements renewable energy in many net-zero energy scenarios. In these long-term scenarios with full decarbonization, the “greenness” of hydrogen is without question. In current energy systems, however, the ramp-up of hydrogen production may cause additional emissions. To avoid this potential adverse effect, recently proposed EU regulation defines strict requirements for electrolytic hydrogen to qualify as green: electrolyzers must run on additional renewable generation, which is produced in a temporally and geographically congruent manner. Focusing on the temporal dimension, this paper argues in favor of a more flexible definition of green hydrogen, which keeps the additionality criterion on a yearly basis but allows for dispatch optimization on a market basis within that period. We develop a model that optimizes dispatch and investment of a wind-hydrogen system—including wind turbines, hydrogen electrolysis, and hydrogen storage—and apply the model to a German case study based on data from 2017-2021. Contrasting different regulatory conditions, we show that a flexible definition of green hydrogen can reduce costs without additional power sector emissions. By contrast, requiring simultaneity implies that a rational investor would build a much larger wind turbine, hydrogen electrolyzer, and hydrogen storage than needed. This leads to additional costs, underutilized resources, and a potential slow-down of green hydrogen deployment. We discuss that current trends in the energy transition are likely to amplify the economic and environmental benefits of a flexible definition of green hydrogen and recommend this as the way forward for a sustainable hydrogen policy. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:253267&r= |
| By: | Bhattacharjee, Arnab; Aravena, Claudia; Castillo, Natalia; Ehrlich, Marco; Taou, Nadia; Wagner, Thomas |
| Abstract: | Tropical rainforests play a critical role in the fight against climate change. However, record high levels of deforestation have been experienced in the Amazon which, together with land use change, has led to loss of biodiversity and sustainable livelihoods. Agroforestry and silvo-pastoral conservation programs are particularly promising in this context because of their potential to simultaneously offer sustainable forest cover and support local livelihoods. Together with sustainable animal husbandry, they are critical in addressing the twin challenges of food security and climate change. But empirical estimates of the effectiveness of planned agroforestry on deforestation are largely absent. We study the effects of an innovative and ambitious agroforestry program, part of the UN REDD initiative in Colombia, upon deforestation in the Amazon. Enrolment on the program is not random but based on matching and choice. Achieving reduced deforestation through planned agroforestry is challenging. When selected farms undergo 'treatment' under the program, they initially experience reduction in secondary vegetation in the medium run (5-20 years). Using a quasi-experimental difference-in-differences approach, and both traditional and new econometric methods, we estimate treatment, exposure and selection effects. The findings emphasize that agroforestry programs can stall deforestation and even promote permanent forest cover. However, this requires continuous upscaling with continued and very rapid expansion of the program, entailing substantial costs to society but also significant return. |
| Keywords: | Agroforestry programs, Selection, Treatment and Exposure effects, Difference-in-differences, Colombian Amazon, Deforestation |
| JEL: | C21 Q23 Q15 C55 Q56 C23 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:nsr:niesrd:537&r= |
| By: | Islam, Md Wasiul (Asian Development Bank Institute); Sarker, Tapan (Asian Development Bank Institute) |
| Abstract: | The geographic and strategic location of Bangladesh beside the Bay of Bengal has opened up multidimensional opportunities for the development of coastal and maritime tourism (CMT). Though various legal documents and research have already detected opportunities for CMT from the perspective of Bangladesh, there is scant evidence of any systematic research on the institutional arrangements influencing the prospect of the development and promotion of CMT in Bangladesh. The status of the sociocultural, economic, environmental, and institutional perspectives on the coastal and marine zones of Bangladesh warrants an in-depth study focusing on the institutional arrangements that can support sustainable CMT in Bangladesh. Therefore, we examine the institutional arrangements to identify the prospects and challenges involved in developing sustainable CMT in Bangladesh. In particular, we appraise the existing institutions that support sustainable CMT and suggest policy guidelines to develop sustainable CMT policy and practice in Bangladesh. We also consider how sustainable CMT can potentially influence the blue economy, which can enhance poverty reduction through new job creation, biodiversity conservation, environmental pollution control, and the promotion of the sustainable use of coastal and marine natural resources. We aim to draw some useful policy guidelines for policy makers to intensify their emphasis on sustainable CMT as an avenue to promote the blue economy and facilitate better living standards for coastal zone communities. |
| Keywords: | Coastal and maritime tourism; blue economy; sustainable development; institutions; natural resources; Bangladesh |
| JEL: | L83 Z32 Z39 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1293&r= |
| By: | Marc Fabel; Matthias Flückiger; Markus Ludwig; Helmut Rainer; Maria Waldinger; Sebastian Wichert |
| Abstract: | We study the impact of the “Fridays for Future” climate protest movement in Germany on citizen political behavior and explore possible mechanisms. Over the course of 2019, large crowds of young protesters, most below voting age, skipped school to demonstrate for rapid and far-reaching measures to mitigate climate change. Based on cell phone-based mobility data and hand-collected information on almost 4,000 climate protests, we first construct a novel county ×rally-specific measure of protest participation, allowing us to map out how engagement in the climate movement evolved spatially and temporally. Then, using a variety of empirical strategies to address the issue of nonrandom protest participation, we show that the local strength of the climate movement led to more Green Party votes in state-level and national-level elections during 2019 and thereafter. We provide evidence suggesting that three mechanisms were simultaneously at play: reverse intergenerational transmission of pro-environmental attitudes from children to parents, stronger climate-related social media presence by Green Party politicians, and increased coverage of environmental issues in local media. Together our results suggest that environmental protests by those too young to vote provides some of the impetus needed to push society towards overcoming the climate trap. |
| Keywords: | climate protest movement, citizen political behavior |
| JEL: | D72 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9742&r= |
| By: | Thomas Hagedorn (Institute of Transport Economics, Muenster); Jan Wessel (Institute of Transport Economics, Muenster) |
| Abstract: | Based on a discrete choice experiment with 306 individuals from Germany, we examine the impact of the emissions-per-Euro-spent indicator (g/€ indicator) on people's travel behavior. This indicator, which was motivated by Hagedorn and Sieg (2019), makes cheap, but emission-intensive travel alternatives appear particularly harmful for the environment. We find that the g/€ indicator induces people to be more likely to choose the travel alternative with the lower indicator value. This effect persists even if participants are informed about general CO2 emissions. We also find that the steering effect of the g/€ indicator is stronger than for other emission indicators, especially for the costs of offsetting emissions. Our results thereby indicate that the g/€ indicator could be used as an effective steering instrument for people to rethink traveling with cheap, but emission-intensive means of transport, especially with ultra-low cost carriers. |
| Keywords: | Environmental metrics, g/€ indicator, discrete choice experiment, travel decisions, carbon dioxide emissions |
| JEL: | C35 Q50 R40 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:mut:wpaper:35&r= |
| By: | Bård Harstad |
| Abstract: | Can trade agreements motivate environmental conservation? I first present a model whereby the government in the South expands its production capacity (e.g., deforest) before trading with the North. After deriving negative relationships between tariff reductions and conservation, I show how all negative results are reversed if countries can negotiate a contingent trade agreement (CTA), where default tariffs vary with changes in the production capacity (or forest cover). A calibration suggests that growth and liberalization can cause Brazil’s agricultural area to expand by 27%, but this expansion can be avoided if the EU and the US offer a CTA. |
| Keywords: | international trade, trade agreements, deforestation, environmental conservation |
| JEL: | F18 F13 Q37 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9596&r= |
| By: | Eskander, Shaikh; Fankhauser, Sam; Setzer, Joana |
| Abstract: | There is no country in the world that does not have at least one law or policy dealing with climate change. The most prolific countries have well over 20, and globally there are 1,800 such laws. Some of them are executive orders or policies issued by governments, others are legislative acts passed by parliament. The judiciary has been involved in 1,500 court cases that concern climate change (more than 1,100 of which were in the United States). We use Climate Change Laws of the World, a publicly accessible database, to analyze patterns and trends in climate change legislation and litigation over the past 30 years. The data reveal that global legislative activity peaked around 2009–14, well before the Paris Agreement. Accounting for effectiveness in implementation and the length of time laws have been in place, the United Kingdom and South Korea are the most comprehensive legislators among G20 countries and Spain within the Organization for Economic Cooperation and Development. Climate change legislation is less of a partisan issue than is commonly assumed: the number of climate laws passed by governments of the left, center, and right is roughly proportional to their time in office. We also find that legislative activity decreases in times of economic difficulty. Where courts have gotten involved, judges outside the United States have ruled in favor of enhanced climate protection in about half of the cases (US judges are more inclined to rule against climate protection). |
| Keywords: | climate change; laws; litigation; Grantham Foundation for the Protection of the Environment; and from the UK Economic and Social Research Council (ESRC) through its support of the Centre for Climate Change Economics and Policy (CCCEP). |
| JEL: | K32 Q54 Q58 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:114567&r= |
| By: | Rising, James A.; Taylor, Charlotte; Ives, Matthew C.; Ward, Robert E.t. |
| Abstract: | A large discrepancy exists between the dire impacts that most natural scientists project we could face from climate change and the modest estimates of damages calculated by mainstream economists. Economic assessments of climate change risks are intended to be comprehensive, covering the full range of physical impacts and their associated market and non-market costs, considering the greater vulnerability of poor people and the challenges of adaptation. Available estimates still fall significantly short of this goal, but alternative approaches that have been proposed attempt to address these gaps. This review seeks to provide a common basis for natural scientists, social scientists, and modellers to understand the research challenges involved in evaluating the economic risks of climate change. Focusing on the estimation processes embedded in economic integrated assessment models and the concerns raised in the literature, we summarise the frontiers of research relevant to improving quantitative damage estimates, representing the full complexity of the associated systems, and evaluating the impact of the various economic assumptions used to manage this complexity. |
| Keywords: | ES/R009708/1; rantham Research Institute on Climate Change and the Environment; at the London School of Economics; and the ESRC Centre for Climate Change Economics and Policy (CCCEP; UKRI block grant |
| JEL: | R14 J01 N0 |
| Date: | 2022–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:114941&r= |
| By: | Mirko Draca; Jiaqi Li; Sabrina Muller; Viet Nguyen-Tien; Capucine Riom; Anna Valero |
| Abstract: | The transition to net-zero will have far-reaching but unequal effects, as 'dirty' jobs disappear while new jobs aligned with or supportive of the net-zero objective - which we refer to as 'green' - are created. As governments worldwide increase their commitments to tackling climate change, there is a growing need to quantify and characterise the 'green economy', and to identify opportunities to be seized and challenges to be overcome in the transition to the net-zero economy of the future. To shed light on green jobs and inform policy and future research, we apply a granular analytical approach to quantify and describe green jobs in the UK and EU economies. |
| Keywords: | green jobs, green economy, climate change, UK and European economies, employment and wages, Green Growth |
| Date: | 2021–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepsps:39&r= |
| By: | Blazsek, Szabolcs; Escribano, Álvaro |
| Abstract: | Climate variables are known to be subject to abrupt changes when some threshold levels are surpassed. We use data for the last 798,000 years on global ice volume (Ice), atmospheric carbon dioxide level (CO2), and Antarctic land surface temperature (Temp) to model and measure those longrun nonlinear climate effects. The climate variables have very long and asymmetric cycles, created by periods of upward trends, followed by periods of downward trends driven by exogenous orbital variables. The exogenous orbital variables considered by the Milankovitch cycles are eccentricity of Earth's orbit, obliquity, and precession of the equinox. We show that our new score-driven threshold ice-age models improve the statistical inference and forecasting performance of competing ice-age models from the literature. The drawback of using our 1,000-year frequency observations, is that we cannot measure the nonlinear climate effects of humanity created during the last 250 years, which are known to have generated abrupt structural changes in the Earth's climate, due to unprecedented high levels of CO2 and Temp, and low levels of Ice volume. On the other hand, the advantage of using low-frequency data is that they allow us to obtain long-run forecasts on what would have occurred if humanity had not burned fossil fuels since the start of the Industrial Revolution. These long-run forecasts can serve as benchmarks for the long-run evaluation of the impact of humanity on climate variables. Without the impact of humanity on climate, we predict the existence of turning points in the evolution of the three climate variables for the next 5,000 years: an upward trend in global ice volume, and downward trends in atmospheric CO2 level and Antarctic land surface temperature. |
| Keywords: | Climate Change; Ice-Ages; Global Ice Volume; Atmospheric Co2 Level; Antarctic Land Surface Temperature; Dynamic Conditional Score Models; Generalized Autoregressive Score Models |
| JEL: | C32 C38 C51 C52 C53 Q54 |
| Date: | 2022–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:34757&r= |
| By: | Chapman, Gary; Hottenrott, Hanna |
| Abstract: | Green start-ups play a vital role in the needed transition towards more environmentally sustainable economies. Yet our understanding of why some founders start green ventures and others do not remains incomplete. We build on the cognitive and decision-making perspectives on start-ups proenvironmental engagement to shed light on the role of founders' personality traits - focusing on the 'Big 5' and risk tolerance - in explaining whether founders' start new ventures with environmentally friendly products. Our analysis of a large, representative, manufacturing and service sector sample of German start-ups illustrates the important role of founder personality traits. Specifically, openness and extraversion promote environmentally friendly products while neuroticism inhibits it. We discuss the implications of these insights. |
| Keywords: | emission reduction,environmentally friendly products,green innovation,Big Fivepersonality traits,sustainability |
| JEL: | G24 L26 O25 O31 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22009&r= |
| By: | Julien Lefevre (AgroParisTech, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Thomas Le Gallic (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Panagiotis Fragkos; Jean-François Mercure (University of Exeter, CAM - University of Cambridge [UK]); Yeliz Simsek (University of Exeter); Leonidas Paroussos |
| Abstract: | This paper analyses structural change in the economy as a key but largely unexplored aspect of global socioeconomic and climate change mitigation scenarios. Structural change can actually drive energy and land use as much as economic growth and influence mitigation opportunities and barriers. Conversely, stringent climate policy is bound to induce specific structural and socioeconomic transformations that are still insufficiently understood. We introduce Multi-Sectoral Integrated Assessment Models as main tools to capture the key drivers of structural change and we conduct a multi-model study to assess main structural effectschanges of the sectoral composition and intensity of trade of global and regional economiesin a baseline and 2°C policy scenario by 2050. First, the range of baseline projections across models, for which we identify the main drivers, illustrates the uncertainty on future economic pathways-in emerging economies especially-and inform on plausible alternative futures with implications for energy use and emissions. Second, in all models, climate policy in the 2°C scenario imposes only a second-order impact on the economic structure at the macrosectoral level-agriculture, manufacturing and services-compared to changes modelled in the baseline. However, this hides more radical changes for individual industries-within the energy sector especially. The study, which adopts a top-down framing of global structural change, represents a starting point to kick-start a conversation and propose a new research agenda seeking to improve understanding of the structural change effects in socioeconomic and mitigation scenarios, and better inform policy assessments. |
| Keywords: | Energy sector,Multi-sectoral macroeconomic modelling,Climate policy,Socio-economic pathways,Structural change |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03622209&r= |
| By: | Pia Andres; Ralf Martin; Penny Mealy; Esin Serin; Arjun Shah; Anna Valero |
| Abstract: | Seizing opportunities from the CCUS value chain can be part of an economy-wide, net-zero-aligned growth path in the UK. The UK has responded to the climate emergency facing the world with an economy-wide target to reach net-zero emissions by 2050. The current decade is critical to ensure coordinated investments in infrastructure, innovation and skills reorient the UK economy towards a net-zero-aligned growth path. As a technological solution for addressing some of the most challenging emissions, CCUS needs to be deployed urgently in the UK and globally, which implies a rapid growth trajectory for the demand for CCUS-related technologies, products and services. The Government's current stated ambition is to capture 10 million tonnes of carbon dioxide (MtCO2) a year by 2030. To meet net-zero, this needs to be ramped up significantly. There are projects already in early development stages across the UK that together could deliver double that capacity in the 2020s. An inconsistent policy environment, including two failed major demonstration competitions, has been the primary setback against CCUS development in the UK to date. Now is the time to make up for years of stalled progress in deploying this essential technology. What's more, fast, strategic action can unlock growth opportunities along the way. Focus should be on areas where the UK has or can build comparative advantage, crucially by capitalising on its existing capabilities in the oil and gas sector, to deliver significant emissions abatement while generating export opportunities and wider economic benefits from CCUS. |
| Keywords: | Technological change, Productivity, carbon capture, environment, clean growth |
| Date: | 2021–09–22 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepsps:38&r= |
| By: | Ekundayo P. Mesagan (Pan Atlantic University, Lagos, Nigeria.); Titilope C. Adewuyi (University of Lagos, Lagos, Nigeria.); Olugbenga Olaoye (Bells University of Technology, Nigeria) |
| Abstract: | This study employs the Pool Mean Group framework to investigate the impact of corporate finance and industrial performance on pollution in Africa between 1990 and 2020. The study, which focuses on 36 African nations, found that corporate financing insignificantly enhances environmental quality in the short run, while it significantly worsens the environment in the long run. Also, the result shows that industrial performance exerts a negative but insignificant impact on pollution in both the short- and long-run periods. Lastly, the interaction term between corporate finance and industrial performance has a negative and significant impact on pollution in both periods. With this striking result, the study recommends that efforts should be made to promote the growth of environmentally sound production plants in the continent through the removal of credit facilitation bottlenecks. |
| Keywords: | Corporate Finance, Industrial Performance, Pollution, Africa |
| JEL: | G3 L25 O14 Q53 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/026&r= |
| By: | Saudamini Das; Arup Mitra (Institute of Economic Growth, Delhi) |
| Abstract: | Poor households engage in multiple activities to maintain their consumption in face of economic hardships or exogenous shocks. In this paper, we try to examine the effectiveness of such livelihood diversification to increase or maintain the inter-temporal consumption level conditional to the climate change knowledge of the households. We use a cross sectional survey data of 1200 households from central and western parts of Odisha and estimate multiple regression models with and without the assumption of endogeneity of occupational diversification index. Results clearly establish that households perceiving climate change significantly are able to benefit from diversification and maintain or improve their consumption intake over time, whereas those with no significant climate knowledge, are not able to benefit from diversification. In India, offering avenues for diversification has been a prime government policy with a view to augmenting farmers’ income; however, such policies will have limited effects unless farmers are given the correct climate education to be able to choose the right activities which can increase their income and stabilise consumption. |
| Keywords: | Climate change, livelihood diversification, consumption mobility, Odisha,farmer’s income |
| JEL: | J24 Q12 Q54 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:awe:wpaper:425&r= |
| By: | Itay Goldstein; Alexandr Kopytov; Lin Shen; Haotian Xiang |
| Abstract: | We study how environmental, social and governance (ESG) investing reshapes information aggregation by prices. We develop a rational expectations equilibrium model in which traditional and green investors are informed about financial and ESG risks but have different preferences over them. Because of the preference heterogeneity, traditional and green investors trade in the opposite directions based on the same information. We show that the equilibrium price may not be uniquely determined. An increase in the fraction of green investors and an improvement in the ESG information quality can reduce price informativeness about the financial payoff and raise the cost of capital. |
| JEL: | G14 G32 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29839&r= |
| By: | Cascarano, Michele; Natoli, Filippo; Petrella, Andrea |
| Abstract: | Climate change has long run effects on the size and composition of a country's corporate sector. Using administrative data on the universe of Italian firms, we find that an increase in the incidence of very hot days over a multiyear period persistently reduces the growth rate of active firms in the market. This is due to a drop in firm entry and an increase in firm exit, with relocation playing a minor role. A firm-level investigation reveals a dichotomy between smaller firms, which suffer from high temperatures, and larger firms that successfully adapt, increasing production and net revenues. According to an average climatic scenario, the projected evolution of local temperatures will impact corporate demography further, also exacerbating the divergent effects across warmer and colder areas over the current decade. |
| Keywords: | climate change; temperatures; firm dynamics |
| JEL: | D22 Q54 R12 |
| Date: | 2022–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112868&r= |
| By: | Jérôme Texier; Julio Gonçalvès (CEREGE - Centre européen de recherche et d'enseignement des géosciences de l'environnement - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - CdF (institution) - Collège de France - INSU - CNRS - Institut national des sciences de l'Univers - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Agnès Rivière (GEOSCIENCES - Centre de Géosciences - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres, MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres, PSL - Université Paris sciences et lettres) |
| Abstract: | The quality of the water from a riverbank well field is the result of the mixing ratios between the surface water and the local and regional groundwater. The mixing ratio is controlled by the complex processes involved in the surface water–groundwater interactions. In addition, the drawdown of the groundwater level greatly determines the water head differences between the river water and groundwater, as well as the field flowpath inside the alluvial plain, which subsequently impacts the water origin in the well. In common view, groundwater flows from both sides of the valley towards the river, and the groundwater divide is located at the middle of the river. Here, we studied the standard case of a river connected with an alluvial aquifer exploited by a linear pumping field on one riverbank, and we proposed to determine the physical parameters controlling the occurrence of groundwater flow below the river from one bank to the other (cross-riverbank flow). For this purpose, a 2D saturated–unsaturated flow numerical model is used to analyze the groundwater flowpath below a streambed. The alternative scenarios of surface water–groundwater interactions considered here are based on variable regional gradient conditions, pumping conditions, streambed clogging and the aquifer thickness to the river width ratio (aspect ratio). Parameters such as the aspect ratio and the properties of the clogging layer play a crucial role in the occurrence of this flow, and its magnitude increases with the aquifer thickness and the streambed clogging. We demonstrate that for an aspect ratio below 0.2, cross-riverbank flow is negligible. Conversely, when the aspect ratio exceeds 0.7, 20% of the well water comes from the other bank and can even exceed the river contribution when the aspect ratio reaches 0.95. In this situation, contaminant transfers from the opposite riverbank should not be neglected even at low clogging. |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03629140&r= |
| By: | Bert Van Roosebeke (International Association of Deposit Insurers); Ryan Defina (International Association of Deposit Insurers) |
| Abstract: | Whereas research regarding the impact of climate change on the global financial system is ever growing, the impact of climate change and risks related therewith on deposit insurance has remained largely undealt with in literature. As global financial standard-setters have set the treatment of climate risks high on the agenda , this Policy Brief represents the first attempt to identify five core challenges that climate change may pose to the activity of deposit insurers and their ability to deliver on key objectives. The paper also classifies the challenges as to their risk-nature as well as to their directness, urgency and the feasibility of deposit insurers’ to respond to them. Given the novel nature of these issues as well as the high uncertainty and long time horizon inherent to them, the discussion here is by no means meant to be exhaustive. It is also recognised that the scale and degree to which climate change affects deposit insurers may vary significantly. This may be so due to differences in mandates or geographical exposure to climate risks. Nevertheless, the breath and scope of climate change-related risks as well as financial standard-setters’ omnipresent activities in the field make this topic of strategic interest to the deposit insurance community. The links between these challenges and the IADI Core Principles underscores the strategic urgency of this contemporary policy issue. |
| Keywords: | deposit insurance, bank resolution |
| JEL: | G21 G33 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:awl:polbri:5&r= |
| By: | Almatrudi, Sulaiman; Parvate, Kanaad; Rothchild, Daniel; Vijay, Upadhi |
| Abstract: | Passenger and heavy-duty vehicles make up 36% of California’s greenhouse gas (GHG) emissions. Reducing emissions from vehicular travel is therefore paramount for any path towards carbon neutrality. Efforts to reduce GHGs by encouraging mode shift or increasing vehicle efficiency are, and will continue to be, a critical part of decarbonizing the transportation sector. Emerging technologies are creating an opportunity to reduce GHGs. Human driving behaviors in congested traffic have been shown to create stop-and-go waves. When waves form, cars periodically slow down (sometimes to a stop) and then speed back up again; this repeated braking and accelerating leads to higher fuel consumption, and correspondingly increasingly GHG emissions. Flow smoothing, or the use of a specially designed adaptive cruise controllers to dissipate these waves, can reduce fuel consumption of all the cars on the road. By keeping all vehicles at a constant speed, flow smoothing can minimize system-wide GHG emissions. This report presents the results of flow-smoothing when used in simulation, discusses current work on implementing flow-smoothing in real world-highways, and presents policy discussions on how to support flow smoothing. |
| Keywords: | Engineering, Greenhouse gases, traffic flow, traffic congestion, autonomous intelligent cruise control, intelligent vehicles, fuel consumption, traffic simulation |
| Date: | 2022–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt52p684dp&r= |
| By: | Léa Tardieu (UMR TETIS - Territoires, Environnement, Télédétection et Information Spatiale - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - AgroParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jeoffrey Dehez (UR ETBX - Environnement, territoires et infrastructures - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Mai-Thi Ta (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2022–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03626446&r= |
| By: | Gustavo Bittencourt Machado (LADYSS - Laboratoire Dynamiques Sociales et Recomposition des Espaces - UP1 - Université Paris 1 Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique - UPC - Université Paris Cité) |
| Date: | 2022–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03649863&r= |
| By: | Frederik Noack; Christopher Costello |
| Abstract: | Credit markets and property rights are fundamental for modern economies, but they also have implications for the commons. Using a dynamic model of competitive resource extraction, we show that improving property right security unambiguously increases conservation incentives, but the effect of credit markets on resource extraction effort hinges on the security of property rights. We test these predictions using data on global fisheries, credit markets, and the largest-ever marine property rights assignment. We find that property right security reduces resource extraction, while credit market development increases resource extraction under insecure property rights but reduces resource extraction under secure property rights. |
| JEL: | H0 Q01 Q2 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29889&r= |
| By: | Patricia S. Mesquita (IPC-IG); Teophilo Folhes (IPC-IG); Luciana Vieira de Novais (IPC-IG); Louise Cavalcante (IPC-IG) |
| Keywords: | social protection; food and nutrition security; job creation |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:opager:474&r= |
| By: | Matteo Coronese; Davide Luzzati |
| Abstract: | Extreme natural hazards represent, together with crises and wars, the most disruptive phenomena for economic activity. Their economic impact has been shown to be remarkable, long-lasting, and growing over time, though the exact mechanisms at stake are challenging to isolate and quantify. As these trends are likely to endure as global warming becomes more severe, the need for appropriate modeling of both short and long-run impacts of natural disasters is becoming increasingly pressing. Building on a mounting number of empirical works, we here provide a critical review of the modeling approaches traditionally employed in the related literature. Although with notable exceptions, conventional methods are generally based on Input-Output or Computational General Equilibrium models. These approaches, while analytically sound, are structurally ill-suited to capture certain aspects of natural hazard consequences. Systemic responses to such extreme events are typically characterized by complex interactions among heterogeneous agents, adaptive behavior, and out-of-equilibrium dynamics. We here argue that complexity methods can represent a valid alternative to bridge this policy-relevant gap. In particular, Agent-Based Models offer a powerful toolkit to account for non-linear geographical and temporal interdependencies, the presence of hysteresis and path dependency, the impact of technology changes, and can be fruitfully employed as laboratories for adaptation and mitigation policies. |
| Keywords: | Natural disasters; Socio-economic networks; Complexity; Agent-based models. |
| Date: | 2022–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2022/13&r= |
| By: | Ibirénoyé Romaric Sodjahin (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - INSTITUT AGRO Agrocampus Ouest - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Fabienne Femenia (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - INSTITUT AGRO Agrocampus Ouest - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Obafemi Philippe Koutchade (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - INSTITUT AGRO Agrocampus Ouest - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); A. Carpentier (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - INSTITUT AGRO Agrocampus Ouest - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | Despite many benefits provided by diversified cropping systems, there is a dearth of empirical evidence on the economic relevance of their effects, mainly due to lack of information on the dynamics of farmers' crop acreages. Our article contributes to fill this gap and, thereby, to shed light on a pair of apparently contradictory facts. European farmers tend to stick to specialized crop acreages despite agronomic experiments tending to show that crop diversification could reduce chemical input uses while maintaining or even enhancing arable crop yield levels We provide estimates of the effects of previous crops and crop acreage diversity on yield and chemical input use levels based on a sample of 769 arable crop producers covering the Marne département in France from 2008 to 2014. Our farm level dataset combines cost accounting data, information on crop sequences as well as detailed soil and weather data. Our estimation approach relies on yield functions and input use models defined as systems of simultaneous equations. These models feature farm specific random parameters for accounting for unobserved heterogeneity across farms and farmers as well as for accommodating input use endogeneity in the considered empirical crop yield functions. We estimate pre crop and crop acreage diversity effects for four major crops in the area. Pre crops effects on yields are estimated relatively accurately and are generally consistent with the rankings provided by crop production experts. Estimated pre crop effects on input uses are small and insignificant from a statistical viewpoint despite our large sample, suggesting that pre crops don't impact much chemical input requirements or/and that farmers tend to downplay these effects when deciding their chemical input use levels. Our results also show that crop acreage diversity positively impacts yield levels and tend to induce reductions in pesticide uses, herbicide uses in particular. Overall, our results demonstrate statistically significant though economically limited effects of pre crops and crop acreage diversity on crop gross margins. They also suggest that policy measures aimed to foster crop diversification are unlikely to significantly reduce chemical input uses on major crops if they are not supplemented by measures specifically aimed to reduce the uses of these inputs. |
| Abstract: | Malgré les nombreux bénéfices qu'apportent les systèmes de culture diversifiés, on manque aujourd'hui de preuves empiriques sur la valeur économique de leurs effets agronomiques. Ceci est principalement dû à un manque d'informations sur la dynamique des assolements des agriculteurs. Notre article contribue à combler cette lacune : nous estimons les effets de précédents culturaux et de la diversification des cultures assolées sur les rendements et les utilisations d'intrants chimiques à partir d'un échantillon de 769 producteurs de grandes cultures dans la Marne observés entre 2008 et 2014. Notre ensemble de données combine des données de comptabilité analytique des exploitations, des informations sur les séquences de cultures obtenues à partir de données administratives ainsi que des données détaillées sur la qualité des sols et sur la météo. Notre approche d'estimation repose sur des fonctions de rendement et d'utilisations d'intrants sur les cultures définis comme des systèmes d'équations simultanées. Ces modèles comportent des paramètres aléatoires spécifiques à chaque exploitation pour tenir compte de l'hétérogénéité non observée des exploitations et des agriculteurs ainsi que de l'endogénéité des intrants dans les fonctions empiriques de rendement considérées. Nous estimons les effets précédents culturaux et diversification des assolements pour les quatre cultures principales de la région. Les effets des précédents culturaux sur les rendements sont estimés assez précisément et correspondent généralement aux classements fournis par les experts agronomes. Les effets estimés des précédents culturaux sur les utilisations d'intrants sont faibles et non significatifs d'un point de vue statistique malgré notre large échantillon, ce qui suggère que les agriculteurs ont tendance à peu en tenir compte lorsqu'ils décident de leurs niveaux d'utilisation d'intrants chimiques. Nos résultats montrent également que la diversité des cultures assolées, lorsqu'elle est décrite par un ensemble d'indicateurs approprié, a un impact positif sur les niveaux de rendement et tend à induire une réduction des utilisations de pesticides, des herbicides en particulier. Dans l'ensemble, nos résultats démontrent des effets statistiquement significatifs mais économiquement limités des précédents culturaux et de la diversification des assolements sur les marges brutes des cultures. Ils suggèrent également que les mesures politiques visant à encourager la diversification des cultures sont peu susceptibles de réduire de manière significative les utilisations d'intrants chimiques sur les principales cultures si elles ne sont pas complétées par des mesures visant spécifiquement à réduire ces utilisations d'intrants. |
| Keywords: | Crop rotation effects,Crop diversification,Endogeneity,Random parameter,SAEM algorithm,Effets des rotations culturales,Diversification des cultures,Endogénéité,Paramètres aléatoires,Algorithme SAEM |
| Date: | 2022–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03639951&r= |
| By: | International Monetary Fund |
| Abstract: | Activity returned to its pre-COVID level in 2021. Inflation remains well above the NBK’s 4–6 percent target band, and spillovers from sanctions on Russia will exacerbate price pressures and weaken economic growth in 2022. Kazakhstan benefits from strong fiscal and external buffers but risks to the outlook are elevated due to the uncertain impact on Kazakhstan of the sanctions on Russia and heightened domestic tensions since the January social unrest episode. In the medium term, non-oil growth under the baseline is expected to converge to about 4 percent. Sustainable growth will require greater economic diversification. Climate-related challenges are acute for Kazakhstan given its outsized hydrocarbon sector, high per-capita greenhouse gas emissions, and low domestic energy prices. |
| Date: | 2022–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2022/113&r= |
| By: | David Nortes Martínez (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - AgroParisTech - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro); Frédéric Grelot (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - AgroParisTech - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro); Pauline Bremond (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - AgroParisTech - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro); Stefano Farolfi (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - AgroParisTech - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro, Cirad-ES - Département Environnements et Sociétés - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement, CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro); Juliette Rouchier (LAMSADE - Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision - CNRS - Centre National de la Recherche Scientifique - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres) |
| Abstract: | Estimating flood damage, although crucial for assessing flood risk and for designing mitigation policies, continues to face numerous challenges, notably the assessment of indirect damage. It is widely accepted that damage other than direct damage can account for a significant proportion of total damage. Yet due to scarcer data sources and lack of knowledge on links within and between economic activities, indirect impacts have received less attention than direct impacts. Furthermore, attempts to grasp indirect damage through economic models have not gone below regional levels. Even though local communities can be devastated by flood events without this being reflected in regional accounts, few studies have been conducted from a microeconomic perspective at local level. What is more, the standard practices applied at this level of analysis tackle entities but ignore how they may be linked. This paper addresses these two challenges by building a novel agent-based model of a local agricultural production chain (a French cooperative wine-making system), utilized as a virtual laboratory for the ex ante estimation of flood impacts. We show how overlooking existing interactions between economic entities in production chains can result in either overestimation (double counting) or underestimation (wrong estimation of the consequences for the activity) of flood damage. Our results also reveal that considering interactions requires thorough characterization of their spatial configuration. Based on both the application of our method and the results obtained, we propose balanced recommendations for flood damage estimation at local level. |
| Date: | 2021–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03609616&r= |
| By: | Úbeda, Fernando; Forcadell, Francisco Javier; Aracil, Elisa; Mendez, Alvaro |
| Abstract: | The role of the financial sector is central in reducing income inequality – the goal of SDG 10 – by facilitating economic opportunities. However, institutional weaknesses may also undermine this effect. We argue that sustainable banking generates bidirectional trust to overcome institutional weaknesses, particularly the weak rule of law. Empirical evidence from 46 countries aggregating data of 1060 banks over 2010–2017 shows that sustainable banking lessens income inequality in weak rule of law settings. The results are robust after including the effects of bank digitalisation. This study has important implications for sustainable banking expansion into weak institutional environments and demonstrates banks’ efforts in their commitment to reducing inequality. |
| Keywords: | banks; ESG; inequality; institutions; rule of law; sustainable Development Goals |
| JEL: | F3 G3 |
| Date: | 2022–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:114881&r= |
| By: | Corentin Le Bot (UNIV-RENNES - Université de Rennes, CREM - Centre de recherche en économie et management - CNRS - Centre National de la Recherche Scientifique - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - UNICAEN - Université de Caen Normandie - NU - Normandie Université); Rozenn Perrigot (UNIV-RENNES - Université de Rennes, CREM - Centre de recherche en économie et management - CNRS - Centre National de la Recherche Scientifique - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - UNICAEN - Université de Caen Normandie - NU - Normandie Université, ESC Rennes School of Business - ESC Rennes School of Business); Frédérique Déjean (Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres, DRM MOST - DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Bruno Oxibar (Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres, DRM MOST - DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Although franchise chains are increasingly committed to environmental, social, and societal transitions, only a few researchers have focused on Corporate Social Responsibility (CSR) in the specific case of franchising. The aim of our paper is to discuss the specificities and challenges of CSR in franchising, explore how franchisors report on their sustainable practices, and emphasize subsequent directions for future research. In order to do so, we focus on the Corporate Social Disclosure (CSD) practices of twenty-two retail and service franchisors operating in the French market where regulations of non-financial information disclosures exist for large companies. Our findings show that these franchisors disclose rich and diversified information about their CSR activities. However, franchisors' disclosures can vary significantly, especially depending on their chain size and whether they are subject to reporting regulations. Our research contributes to the literature on CSR in franchise chains, as well as the practice. |
| Keywords: | Franchising,Corporate Social Responsibility,Sustainable Development,Corporate Social Disclosure,Environmental Social and Governance information. |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03574741&r= |
| By: | Mason, Michael |
| Abstract: | Water infrastructure is an active element of state-making in southern Iraq, although major failings in water governance have in recent years triggered violent protests. Informed by scholarship on state clientelism and the political ecology of infrastructure, I examine the conflict-affected trajectories affecting public water management in Basra governorate. The degraded water treatment network manifests a post-2003 political system structured by embedded clientelism and politically sanctioned corruption. However, broad categorisations of clientelism can miss context-laden political effects produced by the spatial and technological configurations of infrastructure. I consider the state effects of water infrastructure practices in Basra governorate–how water supply networks and treatment technologies project state (in)capacity by means of volumetric and qualitative control over water flows. The empirical focus is on compact water treatment units (CWTUs), which are the main technology of public water supply in Basra governorate. I undertake an analysis of the deployment and management of CWTUs, as experienced by local actors responsible for, or politically contesting, the workings of water infrastructure in Basra city. Clientelist practices targeting public procurement and maintenance contracts have disrupted and delayed the upgrading of water infrastructure; yet these practices were enabled by neoliberal state-building that promoted the privatisation of public resources. Shortfalls in state capacity to provide clean drinking water in Basra are compounded by the growing hydro-climatic unpredictability of water flows. |
| Keywords: | infrastructure; clientelism; state effects; water management; Iraq |
| JEL: | R14 J01 |
| Date: | 2022–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:114909&r= |
| By: | Alex Hollingsworth; Mike Huang; Ivan Rudik; Nicholas J. Sanders |
| Abstract: | We study how ambient lead exposure impacts learning in elementary school by leveraging a natural experiment where a large national automotive racing organization switched from leaded to unleaded fuel. We find increased levels and duration of exposure to lead negatively affect academic performance, shift the entire academic performance distribution, and negatively impact both younger and older children. The average treated student in our setting has an expected income reduction of $5,200 in present value terms. Avoiding said treatment has an effect size similar to improving teacher value added by one-fourth of a standard deviation, reducing class size by 5 students, or increasing school spending per pupil by $750. The marginal impacts of lead are larger in impoverished, non-white counties, and among students with greater duration of exposure, even after controlling for the total quantity of exposure. |
| Keywords: | education, air pollution, lead, test scores, children |
| JEL: | I14 I21 Q51 Q53 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9674&r= |
| By: | Berger, Eva M.; Bialek, Sylwia; Garnadt, Niklas; Grimm, Veronika; Other, Lars; Salzmann, Leonard; Schnitzer, Monika; Truger, Achim; Wieland, Volker |
| Abstract: | The Russian war of aggression against Ukraine since 24 February 2022 has intensified the discussion of Europe's reliance on energy imports from Russia. A ban on Russian imports of oil, natural gas and coal has already been imposed by the United States, while the United Kingdom plans to cease imports of oil and coal from Russia by the end of 2022. The German Federal Government is currently opposing an energy embargo against Russia. However, the Federal Ministry for Economic Affairs and Climate Action is working on a strategy to reduce energy imports from Russia. In this paper, the authors give an overview of the German and European reliance on energy imports from Russia with a focus on gas imports and discuss price effects, alternative suppliers of natural gas, and the potential for saving and replacing natural gas. They also provide an overview of estimates of the consequences on the economic outlook if the conflict intensifies. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:imfswp:166&r= |
| By: | Hitoshi Matsushima (Faculty of Economics, The University of Tokyo) |
| Abstract: | The world is interested in comprehensively considering what a good life is from multiple perspectives such as the environment, society, and economy. The well-being of individuals and society should not be evaluated solely by the distribution of commodities whose value is shown in the market. The world is rather sympathetic to the view that they should be evaluated by ways of maintenance of natural capital, social infrastructure, institutional capital, or generally "social common capital" (Uzawa, 1995, 2000; Uzawa, 2003, 2005), which are typically difficult to value in the market. For example, at the 2015 Summit, the United Nations adopted the 2030 Agenda for Sustainable Development to resolve global warming, equal society, free participation, and a sustainable economy. As an action plan for consistently achieving such developments, the "Sustainable Development Goals (SDGs)" consisting of 17 goals and 169 targets were presented (United Nations, 2015a). The SDGs aim to encourage citizens around the world to change their consciousness and take concrete actions on social common capital in order to realize a good life. An important part of the essence of social common capital is the so-called "commons", in which users cannot or should not be excluded (nonexcludability), but if the use limit is simply neglected, it will eventually be devastated and exhausted (competitiveness). (Bentham, 1789; Malthus, 1798; Mill, 1859; Hardin, 1968; Ostrom, 1990, 2010). Many modern issues that impede good living, such as the global environment, poverty, inequality, conflict, human rights issues, pandemics, and the abolition of nuclear weapons, can be seen as examples of common issues. In order to deal with the commons, we must change the way citizens' values and institutional systems are in the current capitalist society. This volume regards the realization of good living as a problem of social common capital, and presents a concrete institutional design for solving it. Furthermore, this volume presents "new capitalism" and "new socialism" as social systems required to solve the problems of the commons, and what role the two systems play in problem solving. In particular, new socialism is newly presented in this volume, which is more essential for the solution of the Commons problem. New socialism is defined as a decentralized mechanism that replaces the market, rather than centralized control and planning by the state. Its major feature is based on the famous slogan "work according to ability and receive according to need" (Marx, 1890/1971), which is used to be the future image of utopia, moral law, or communist society, but here not as a utopia but as a practical "incentive scheme" that is indispensable for a desirable decentralized mechanism. This volume considers the issue of climate change (warming) as an application and further deepens the understanding of the commons. |
| URL: | http://d.repec.org/n?u=RePEc:tky:jseres:2022cj304&r= |
| By: | Jakub Sokolowski; Marek Antosiewicz; Piotr Lewandowski |
| Abstract: | We estimate the macroeconomic and distributional effects that a ban on fuel imports from Russia would have in Poland. We simulate the embargo as a hike in oil, gas and coal prices, and evaluate the macroeconomic effects with a dynamic general equilibrium model. We soft-link it with a microsimulation model based on Household Budget Survey data to assess the impacts on various income groups. We find that the effects of an embargo on Russian fuels would be substantial but manageable. Depending on the severity of the price hikes, we expect Poland’s GDP to be lower by 0.2–3.3% by the end of 2022, and by 2.1–5.7% by 2025. Furthermore, depending on the price increases, high-income households would spend an additional 0.2–1.3% of their incomes on energy in 2022 and 0.7–1.6% in 2025, and low-income households would spend 0.3–4.7% more of their incomes on energy in 2022 and 2.6–4.8% in 2025. We suggest direct money transfers to less affluent households, and investments in alternative gas and oil supplies, energy efficiency, renewable energy and nuclear power as instruments that could ease the negative economic impacts of the embargo. |
| Keywords: | embargo; distributional effects; microsimulation; general equilibrium |
| JEL: | H23 P18 O15 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:report:rr012022&r= |
| By: | Stephen K. Dimnwobi (Nnamdi Azikiwe University Awka, Nigeria); Chekwube V. Madichie (Pan-Atlantic University, Lagos, Nigeria); Chukwunonso Ekesiobi (Chukwuemeka Odumegwu Ojukwu University, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | Financial sector performance is increasingly linked with the transition to renewable energy in the sustainability discourse of developing economies. This paper examines the nexus and implication(s) of financial development on renewable energy consumption in Nigeria (the largest and most populous economy in Africa). Specifically, this study utilised the broad based financial development index data to effectively address the multidimensional nature of financial development and the portion of renewable energy in total energy consumption as key variables, while other relevant pieces of information (growth rate of per capita GDP, foreign direct investment and consumer price index) were incorporated. The study employed a blend of the ADF test and Zivot-Andrew test to ascertain stationarity properties as well as the likelihood of structural breaks, while the ARDL was utilized to determine the long-run relationship(s) using data from 1981 to 2019. The study estimation finds, among other things, that financial development is critical for renewable energy consumption in Nigeria and recommends policies to promote better outcomes for the financial and energy sectors, respectively. |
| Keywords: | Financial development; Renewable energy consumption; Nigeria |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/024&r= |
| By: | Khalifany-Ash Shidiqi (Department of Economics, Universitas Muhammadiyah Yogyakarta, Faculty of Economics and Business, Indonesia & University of Barcelona, Faculty of Economics and Business, 690 Diagonal Av. 08034, Barcelona, Spain.); Antonio Di Paolo (AQR-IREA, University of Barcelona, Faculty of Economics and Business, 690 Diagonal Av. 08034, Barcelona, Spain.); Álvaro Choi (University of Barcelona, Faculty of Economics and Business, 690 Diagonal Av. 08034, Barcelona, Spain.) |
| Abstract: | Natural disasters are a significant threat to human development. In this paper, we analyze the effects of being exposed to a strong earthquake during school age on schooling outcomes. We merge geolocated data about the intensity of the shock at the district level with individual information from the Indonesia Family Life Survey. The identification strategy exploits variation in exposure to the natural shock by birth cohort and district of residence, considering as the treated group individuals who were residing in affected districts while they were in school age. Earthquake exposure reduces years of schooling by somewhat less than one year and negatively affects the probability of completing compulsory education but does not alter the chances of enrolling into post-compulsory education. Falsification analysis and several robustness checks corroborate the causal interpretation of our findings. The analysis of the potential mechanisms indicates that induced migration and casualties occurring at the family level as a consequence of the earthquake do not seem to play a relevant role. However, damages in educational infrastructures do represent a relevant channel through which natural disasters harm human capital formation. Part of the overall impact of the earthquake represents a delay in schooling progression, but a substantial share of its effect consists in a permanent loss of human capital among affected individuals. |
| Keywords: | Natural disasters, Earthquake, Schooling, Educational infrastructures. JEL classification: I25, I24, O15, Q54. |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:202206&r= |
| By: | Charlotte Bigard (AgroParisTech, MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Charlotte Michel; Maya Leroy (MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier, AgroParisTech) |
| Abstract: | La transition écologique suppose une modification de notre mode de fonctionnement. Toutefois, cette modification peut aller d'une légère évolution à une réelle mutation. C'est ce gradient des activités que nous proposons d'analyser à travers ce projet. Dans un contexte où la maritimisation de l'économie doit s'articuler avec un développement plus durable des activités en mer, la notion de transition écologique est sous le feu des projecteurs. C'est pourquoi, dans cette étude, nous nous intéressons en particulier au jeunes TPE/PME, créées à partir de 2008 et donc après l'essor du concept de transition écologique, dont l'activité est liée à la mer, et qui se disent "de la transition". Ce projet est un projet court (1 an), dont les résultats sont issus de l'analyse de 25 entreprises à travers des entretiens qualitatifs et un workshop. Nous avons notamment pu montrer que : -La transition est un leitmotiv affiché par les entrepreneurs mais les définitions sous-jacentes varient. -Selon les critères de l'Allier et Audet (2020) : les entreprises peuvent être groupées en 3 grands types : les entreprises « du régime », se revendiquant de la transition mais dont le fonctionnement est basé sur la recherche de gain économique avant tout ; les entreprises « ambivalentes », proposant une réflexion en lien avec la transition, mais dont les caractéristiques traduisent une faible performance écologique et les entreprises « de la transition », engagées dans un modèle économique ou dans une production faisant rupture avec le régime notamment au regard des enjeux écologiques. -Il est possible de définir des trajectoires de la transition pour chacun des objectifs environnementaux recensés, à savoir, l'énergie, les déchets, la biodiversité. Ces trajectoires peuvent être plus ou moins performantes d'un point de vue écologique. -Un certain nombre de limites organisationnelles et d'opportunités ont enfin été recensées et discutées. Enfin, nous mettons en avant l'intérêt de réunir des informations sur les 4 volets suivants : 1) communication, 2) vision de l'entrepreneur, 3) productions/services proposés, 4) actions menées par l'entreprise, pour pouvoir prétendre à une évaluation de la participation de chaque entreprise à la transition écologique. |
| Keywords: | entreprise,maritime,transition,transition écologique,performance écologique,mer,innovation |
| Date: | 2022–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03632459&r= |
| By: | Lana Friesen (School of Economics, University of Queensland, Brisbane, Australia); Ian A. MacKenzie (School of Economics, University of Queensland, Brisbane, Australia); Mai Phuong Nguyen (School of Economics, University of Queensland, Brisbane, Australia) |
| Abstract: | This article investigates how the existence of initially contestable property rights affects the efficiency of the Coase theorem. We design a two-stage experiment that incorporates a stage where property rights are initially allocated to participants followed by a stage that allows bargaining between participants. In stage one, participants endogenously choose their effort (and thus the probability) to appropriate the property rights before entering an unstructured bargaining game. We find the presence of costly appropriation activity to obtain the property rights makes it significantly less likely that the efficient outcome is reached. We introduce bargaining costs and find that allowing for symmetric bargaining costs has no impact on the likelihood of the efficient outcome being reached, whereas asymmetric bargaining costs between outcomes substantially reduces the likelihood of reaching an efficient outcome. |
| Keywords: | Coasean bargaining, transaction costs, experiment, property rights, contest |
| JEL: | C92 Q52 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:656&r= |
| By: | Roy, Devesh; Pradhan, Mamata; Boss, Ruchira; Rashid, Shahidur |
| Abstract: | The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization which came into being in 1997. It comprises seven member states: five from South Asia, namely, Bangladesh, Bhutan, India, Nepal, and Sri Lanka, and two from Southeast Asia, Myanmar and Thailand. BIMSTEC region is home to around 1.5 billion people, that is, nearly 22 percent of the global population with a combined gross domestic product (GDP) of US$2.7 trillion. |
| Keywords: | BANGLADESH; SOUTH ASIA; ASIA; BHUTAN; INDIA; NEPAL; SRI LANKA; MYANMAR; BURMA; SOUTHEAST ASIA; THAILAND; SOUTH EAST ASIA; trade; welfare; environment; poverty; food security; climate change; frameworks; partnerships |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:prnote:135882&r= |
| By: | Simona FRONE (Institute of National Economy – Romanian Academy); Andreea CONSTANTINESCU (Institute of National Economy – Romanian Academy) |
| Abstract: | Această lucrare de cercetare îÈ™i propune a fundamenta, din punct de vedere conceptual-teoretic, investiÈ›iile de mediu durabile È™i a analiza caracterul de transcendență, corespunzător investiÈ›iilor de mediu, conform orientărilor strategice de progres către dezvoltare durabilă în România È™i în UE. În acest scop, în fiecare capitol al lucrării s-au abordat, evidenÈ›iat È™i analizat următoarele aspecte: caracteristici privind conceptele È™i obiectivele actuale de reziliență climatică, la nivel european È™i naÈ›ional (Cap. 1);politici È™i instrumente actuale de finanÈ›are durabilă a investiÈ›iilor de mediu (Cap.2); evoluÈ›ia investiÈ›iilor de mediu în România È™i în Uniunea Europeană în perioada de după aderare (Cap.3); criteriile È™i necesarul de investiÈ›ii din România pentru realizarea obiectivelor de redresare È™i reziliență climatică, pe cazul particular al sectorului apelor (Cap.4);potenÈ›ialul pentru creÈ™terea eficienÈ›ei È™i a transcendenÈ›ei investiÈ›iilor de mediu din România (Concluzii È™i comentarii). |
| Keywords: | investiții de mediu; reziliență climatică; finanțare; transcendență; redresare. |
| JEL: | Q56 Q57 Q58 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ine:wpaper:9:y:2021&r= |