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on Environmental Economics |
| By: | Sen Zhang; Chun-Ping Chang (Shih Chien University); Donny Fajar Anugrah (Bank Indonesia); Yoga Affandi (Bank Indonesia) |
| Abstract: | We find that climate vulnerability reduces green investment in both climate change mitigation and climate change adaptation technologies. This finding holds up under a series of robustness tests and after taking into consideration the time lag effect, cross-sectional dependence, and endogenous problems. We further present that it is socioeconomic-related climate vulnerability that hinders green investment, whereas physical vulnerability does the opposite. Analyses of moderating channels show that the negative impact of climate vulnerability on green investment is more pronounced in countries with lower levels of adaptation readiness, economic development, and technical innovation. |
| Keywords: | climate vulnerability, green investment, green technologies, physical vulnerability |
| JEL: | Q54 Q55 Q56 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:idn:wpaper:wp122022&r=env |
| By: | Alexandru Petrea (Alexandru cel Bun Military Academy, Chisinau) |
| Abstract: | An energy revolution based on renewable sources and energy efficiency is needed not only to accelerate progress and economic development, but also to reduce the emissions that are rapidly warming and transforming our planet. The energy transition is not a one-size-fits-all process. It involves a combination of objectives, tools, policies, technologies, financing and resources. While the destination is common the path to the final goal depends on economic, social, ecological or security circumstances. However, the process must be fair, comprehensive and systemic so that no one is left behind, and international and regional policies and cooperation are essential to facilitate the exchange of experiences and best practices. The energy transition can no longer be limited to small transformative steps. It is time for it to become a transformational, system-overhaul effort based on the rapid expansion and deployment of all available technologies. This is the right time to reassess long-held assumptions and adopt the most appropriate policies and strategies at European Union level. European policies cover a wide range of areas, from trade and competition, to the environment and climate change, transport, energy, education and more. European energy policy aims to ensure the EU's energy security, promote a transition to a low-carbon economy and encourage the use of sustainable energy resources. This involves making decisions about the energy market, energy efficiency, the diversification of energy sources and the promotion of renewable energies. |
| Keywords: | energy security, green energy, energy trends, energy transformations |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0259&r=env |
| By: | Doina Muresan (Dimitrie Cantemir Christian University of Bucharest); Alexandru Petrea (Military Academy of the Armed Forces Alexandru Cel Bun, Republic of Moldova) |
| Abstract: | The predicted impact of climate change is becoming increasingly visible. Environmental and climate-related risks, including extreme weather events, water scarcity and failure to adapt to and mitigate climate change, are among the main risks facing the world. Policymakers, researchers and the public increasingly recognize the need to address climate-related security risks through cooperation and dialogue. Thus, the global energy sector is going through a deep and rapid transformation and failure to recognize megatrends would be harmful to the development of energy security strategies. |
| Keywords: | trends in energy, geo-economics, energy, security strategies |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:smo:scmowp:01265&r=env |
| By: | Shaymaa Al-Said Salem (Helwan University, Egypt); Dina Elkhattat (Ain Shams University, Egypt) |
| Abstract: | With the climate change challenges and risks they impose on the environment, corporate organizations' interest in environmental and sustainable development issues is no longer a strategic choice but rather an imperative. In this context, UAE paid great attention to environmental sustainability issues and reflected it in the "UAE Vision 2030." Moreover, the national banking sector in the UAE was keen to adopt environmental responsibility practices to support the state's efforts by reducing the negative risks of climate change. This qualitative study aimed to shed light on the concept of environmental responsibility, in line with appropriate theoretical approaches, such as Stakeholder Theory and the Environmental Responsibility Model, by applying a case study of Emirates NBD. The results showed that Emirates NBD's interest in applying the concept of sustainable environmental management as a strategic priority and integrating various stakeholders into environmental responsibility initiatives to rationalize energy consumption and reduce carbon emissions resulting from bank operations to face climate change challenges. In this regard, several initiatives have been implemented, in addition to the bank's partnerships with other local and international institutions. This study suggests that governments should encourage the banking sector to finance major environmental projects as part of their environmental responsibility practices. |
| Keywords: | Corporate Environmental Responsibility, Corporate Sustainability, Green Banks, Climate change |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:smo:scmowp:01256&r=env |
| By: | Jean Fouré; Rob Dellink; Elisa Lanzi; Filippo Pavanello |
| Abstract: | This paper presents a detailed economic modelling analysis of public finance in the transition towards carbon neutrality. It outlines results from a Net-Zero Emission Ambition scenario, which reflects the ambition to achieve net-zero carbon dioxide emissions globally by mid-century, using a broad and region-specific policy package that combines various policy instruments: carbon pricing, removal of fossil fuel support, regulations in the power sector, and other policies that stimulate investments by firms and households to reduce and decarbonise energy use. The analysis relies on the OECD global computable general equilibrium ENV-Linkages model. Results show that transitioning towards carbon neutrality is feasible when considering economic and fiscal consequences. The scenario achieves carbon neutrality while maintaining continued economic growth, despite a limited negative impact on global GDP and on public revenues. The fiscal effects reflect a trade-off between instruments that increase public revenues (carbon pricing) or reduce public expenditures (fossil fuel subsidies removal), on the one hand, and more costly instruments (subsidies) and indirect effects (tax base erosion and changes in fiscal and economic structure) on the other hand. |
| Keywords: | climate mitigation, computable general equilibrium models, net-zero, public budget |
| JEL: | H20 H23 H61 L68 Q43 Q54 C68 |
| Date: | 2023–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:214-en&r=env |
| By: | Schmid, Anna; Bravine, Esther |
| Keywords: | Environmental Economics and Policy, Crop Production/Industries |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334537&r=env |
| By: | Ramiro Losada, Albert Martínez Pastor |
| Abstract: | The main objective of this work is to carry out a first estimation on the amount of the greenhouse gas emissions of Spanish issuers of securities. It also carries out an initial exercise on the degree of alignment of their emission reduction goals with the objectives set out in the Paris Agreement and in the European Union. In addition we assess the extent to which the challenges deriving from climate change have been incorporated into business management, particularly in the area of corporate governance, the risks and opportunities identified and specific emission reduction goals set. This document forms part of the work carried out to fulfil the mandate established in Law 7/2021, of May 20, on climate change and ecological transition ( the "Clima Change Law"). Article 33 establishes that every two years the Bank of Spain, the CNMV and the General Directorate of Insurance must prepare a coordinated report within the AMCESFI (Spanish acronym for "Spain's Macroprudential Authority Financial Stability Council") on the degree of alignment with the climate goals of the Paris Agreement and with the regulations of the European Union and an assessment of the risk to the financial system deriving from climate change. |
| Keywords: | Climate change, securities issuers, Low-carbon transition, CHG emissions |
| JEL: | G11 G12 G32 G32 Q51 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:cnv:wpaper:dt_82en&r=env |
| By: | Enste, Dominik; Potthoff, Jennifer |
| Abstract: | Climate protection is one of the greatest challenges society and economy are currently facing. In addition to policy (Macro level) and individual consumers (Micro level) also companies (Meso level) are confronted with increasing pressure to act more ecologically sustainable. Besides ecological improvement in the production processes and value chains, corporate transformation to more ecological sustainability also demands a development towards the office model of the future, the "Green Office" which is realized by the triade of "green IT", "green building" and "green behavior". This requires employees who are willing to change and structures who enable change. In view of the fact that employees in offices are not yet financially incentivized to act ecologically sustainable in the work context the question arises as to whether behavioral-economic insights can be used to motivate employees towards more ecological choices in their work life. By an intelligent and effective use of green nudges employees can be supported by adopting climate-friendly choices with regard to the following fields of action: energy efficiency, sustainable mobility and resource use. Exemplary nudges are gamification elements such as team bicycle or energy-saving competitions, feedback on electricity or fuel consumption, carpool simplifications and default changes such as double-sided printing. If properly designed, green nudges can combine corporate climate protection, fun, team spirit and freedom of choice and can, for instance, achieve significant savings of 6.5 percent in electricity consumption. If all offices used in the top 7 cities (Cologne, Düsseldorf, Stuttgart, Frankfurt, Hamburg, Munich, Berlin) would save an average of 6.5 percent electricity through green nudges, assuming an annual electricity consumption of 70kWh per m2 office area, 419, 676 MWh, more than 176, 000 tons of CO2 and 167.87 million euros in electricity costs could be yearly saved in Germany. |
| Keywords: | environmental awareness, sustainability, nudging, company, Germany |
| JEL: | D22 D91 Q51 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkrep:262023&r=env |
| By: | Auffhammer, Maximilian |
| Abstract: | The Clean Air Act has authorized an array of fuel regulations to reduce the precursors to ambient ozone pollution, among other pollutants. With the emergence of stringent fuel regulations for the most pollution-intensive cities, and the opportunity for states to adopt fuel content regulations, the U.S. gasoline market has evolved over the past three decades to address local pollution. We have evaluated the pollutant concentration, emissions, and price impacts of Federal RFG, RVP, California RFG, and other boutique fuel rules. We find that California RFG continues to deliver large improvements in air quality, while the benefits from RFG, RVP and boutique fuels are either small or statistically insignificant. We note, that ex post impacts of reformulated fuels are smaller than those predicted by ex ante analyses. |
| Date: | 2023–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-23-20&r=env |
| By: | Timothy Neal (UNSW School of Economics) |
| Abstract: | The future impact of climate change on the world economy is a topic of great importance and uncertainty. Previous models predict only mild aggregate damages and that some countries will be unaffected or may even benefit. This article demonstrates that these results rely on the restrictive assumption that economies are unaffected by weather shocks in other countries, which leads to overly optimistic predictions of impacts from global weather shocks. Relaxing this assumption in existing models leads them to predict catastrophic economic impacts from significant climate change, where all countries are badly affected to different degrees. This article also outlines the difficulty in forming plausible predictions given that projections of future climate change produces weather draws that lie wholly outside historical experience. The results have fundamental implications for damage functions inside Integrated Assessment Models, and also explains the strong contrast between economics and the physical sciences when discussing severe climate change. |
| Keywords: | Environmental Economics, Economic Growth, World Economy, Trade, Forecasting |
| JEL: | C23 C51 C53 O44 Q54 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:swe:wpaper:2023-09&r=env |
| By: | T. IJAIYA , GAFAR. (DEVELOPMENT ECONOMICS, DEPARTMENT OF ECONOMICS); A. IJAIYA, TAHIR. (GRADUATE INTERN) |
| Abstract: | To understand any discussion on the issues of climatic change one much first be conversant with some of the key components of climatic change. These components are deforestation, desertification, droughts, freshwater usage, water pollution, greenhouse gas emission (carbon dioxide, methane, nitrous oxide and fluorinated gases), air pollution, water and refuse waste disposal, land use (e.g. agriculture, mining and bush burning), energy use (oil and industrial processes), and electricity production (see, World Bank, 2008). Out of all these components, the concentration of greenhouse gases (carbon dioxide, methane, nitrous oxide and fluorinated gases) is the main cause of climate change. For instance, in 2005, carbon dioxide, methane, nitrous oxide and fluorinated gases contributed 77 per cent, 14 per cent, 8 per cent, and 1 per cent emissions respectively in the world (World Resources Institute, cited in World Bank, 2008). And in 2004, 79.2 per cent of carbon dioxide emissions in sub-Saharan Africa were from solid fuel consumption, while South Asia and Europe had 32.7 and 27.5 per cents respectively. In Nigeria, the greenhouse gas emission was 0.3 per cent (World Bank, 2008). In the realisation of this and the need to address the issue of climate change, several climates and environmental conventions/conferences were held. Prominent among them were the Rio Earth Summit in 1992, the United Nations Framework Convention on Climate Change (UNFCCC) in 1992, the United Nations Convention to Combat Desertification (UNCCD) in 1994, the Kyoto Protocol in 1997, the Copenhagen Climate Change Conference in 2009, the Paris Agreement (COP21) in 2015, the Kigali Amendment in 2016, the Katowice Climate Change Conference (COP24) in 2018, and the United Nations Climate Change Conference (COP25) in 2019. A follow-up to these conventions/conferences were several initiatives such as the Great Green Wall in 2007, the African Climate Policy Centre in 2010, the Africa Climate Change Fund (ACCF) in 2014 and the Africa Adaptive Initiative in 2015 (see, CFR, nd; UPSC, nd; United Nations, 2015). |
| Date: | 2023–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:decilo:0030&r=env |
| By: | Johannes Brauer; Manuel Villavicencio; Johannes Trüby |
| Abstract: | Low-carbon hydrogen is expected to play a key role in the European energy transition. The production of hydrogen using electricity in an electrolysis process is a promising route. However, depending on the origin of the electricity, hydrogen production is associated with different carbon emissions and costs. While a strict coupling of renewable energies to electrolysers ensures the ‘greenness’ of the product, it likely leads to higher production costs. On the contrary, procuring electricity freely at power markets unleashes the flexibility of electrolysers, allowing them to benefit from price signals and possibly reducing production costs. However, the carbon intensity in both the power system and the resulting hydrogen product might rise. Consequently, there is a tradeoff between environmental integrity and economic viability which affects social welfare and the decarbonisation process. By applying an electricity market model, we assess the impact of various regulatory options for the operation of electrolyser systems on social welfare and carbon emissions. These options are based on the three dimensions proposed in the ongoing regulatory discussions: (1) the origin of the sourced electricity, (2) the temporal correlation of the production of hydrogen and renewable electricity and (3) their spatial correlation. For the case of Germany in 2030, we find that the most environmentally friendly regulation reduces CO2 emissions by 4.7 Mt and the best economic outcome results in 0.9 Billion EUR of welfare gains. While too stringent regulation on the spatial dimension is not recommended, the various advantages of relatively strict requirements in the temporal dimension (e.g., decline in CO2 emissions, financial exoneration of consumers, reduction in natural gas demand) exceed their comparably moderate economic disadvantages. Moreover, we find that with a progressing energy transition, the need for such regulation diminishes, as electricity from renewable energies represents both the best economic and the best environmental option, so that the observed trade-off disappears. |
| Keywords: | Electrolytic hydrogen, Regulation, Electricity market, Welfare |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2022/44&r=env |
| By: | Ricardo Crisóstomo |
| Abstract: | We develop a comprehensive framework to measure the impact of the climate transition on investments portfolios. Our analysis is enriched by including geographical, sectorial, company an ISIN-level data o assess transition risk. We find that investment funds suffer a moderate 5.7% loss upon materialization of a high transition risk scenario. However, the risk distribution is significantly left-skewed, with the worst 1% funds excperiencing an average loss of 21.3%. Imnterms of asst classes, equities are the worst performers (12.7%), followed by corporate bonds (5.6%) and government bonds (-4.8%). We discriminate among financial instruments by considering the carbon footprint of specific counterparties and the credit rating, duration, convexity and volatility of individual exposures. We find that sustainable funds are less exposed to transitions risk and perform better than the overall fund sector in the low-carbon transition, validating their choice as green investments |
| Keywords: | Climate change, Low-carbon transition, Asset allocation, Investment funds, NGFS scenarios |
| JEL: | G11 G12 G32 G17 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:cnv:wpaper:dt_81en&r=env |
| By: | Hasan, Iftekhar; Lee, Haekwon; Qiu, Buhui; Saunders, Anthony |
| Abstract: | Using lenders becoming members of the Task Force on Climate-Related Financial Disclosures (TCFD) as a plausible exogeneous shock, we examine whether and how lenders' commitment to transparent climate-related disclosures affects borrower firms' environmental performance. We find that client firms of TCFD-member lenders, relative to control firms, significantly improve their environmental performance after the TCFD launch. The effects are stronger for polluting firms. Moreover, TCFD-member lenders influence their borrowers' environmental performance via charging higher loan spread and reducing the number and amount of new loans issued to polluting firms. Finally, polluting clients of TCFD-member lenders experience tightened financial constraints subsequently. |
| Keywords: | Climate-related Disclosure Commitment, Credit Rationing, Borrower Environmental Performance |
| JEL: | G21 G30 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bofrdp:72023&r=env |
| By: | Emily Lydgate |
| Abstract: | This article examines a significant question in navigating trade and climate tension: how to recognise another country as having equivalent climate regulation. Such equivalence forms the foundation of many proposed models of so-called climate clubs. Establishing equivalence between distinct national climate regulation regimes poses a unique challenge that draws upon both trade and environmental international cooperation. Drawing on existing proposals, I examine prospects for country-based cooperation through three models: ETS-linking, benchmarking of shared methods and minimum standards, and benchmarking of outcome duties. The analysis concludes that all models necessitate some trade-offs between the goals of rigorous oversight of climate objectives, inclusivity, and WTO-compliance. Benchmarking of shared methods and minimum standards seems most feasible, and would provide a deeper level of integration between trade and climate cooperation, but necessitates a shift in how countries, particularly the EU, oversee regulatory compliance. |
| Keywords: | Climate Equivalence, Climate Clubs, Border Carbon Adjustment |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2022/64&r=env |
| By: | Håkan Nordström |
| Abstract: | The Paris Agreement calls on developed countries to take the lead in global efforts to stop climate change. The drawback with differentiated commitments is carbon leakage, that is, that emission- intensive industries migrate to countries with lower carbon prices. This risk has prompted the EU to introduce a Carbon Border Adjustment Mechanism as part of the “fit-for-55” agenda with the goal of reducing emissions by 55 percent by 2030. In practical terms, the CBAM will equalize the carbon price paid by domestic and foreign producers in the internal market. Other OECD countries are considering similar measures, which will primarily affect developing countries. The issue thus has a north-south dimension that may increase tensions in global trade and climate negotiations. This paper reviews the empirical evidence of carbon leakage from 1995 to 2018, finding that it has played a marginal role for global emissions. Yet, the perceived risk must be managed to allow the EU and other leading parties to lead the way to decarbonize the global economy without risking their own industrial base. The practical solution would be to negotiate new rules on trade-related climate measures that balance the interests of all parties, as proposed by the Secretary-General of the OECD. |
| Keywords: | Climate change, the European Union, carbon border adjustments, WTO, the Paris agreement, traderelated climate-measures |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2023/08&r=env |
| By: | Henri Casella; Jaime de Melo |
| Abstract: | The paper reports on evidence on how trade can help Africa adapt to Climate Change (CC) along three dimensions: (i) fast-onset events from short-lived extreme occurrences (floods, extreme temperatures); (ii) slow-onset events (rise in average temperatures and sea-level rise); (iii) trade facilitation policies.• Fast onset events. Trade reduces the amplitude of extreme events like a drought. But policy reactions to large shocks can increase the amplitude of the shock. During the South African drought of 2015-6, policies had spillovers in neighboring countries. Following the 2008-09 financial crisis, export restrictions by major crop exporters and reduction in tariffs by importers amplified the shock. Policy coordination is needed to control spillover effects.• Slow-onset events. Modelling efforts have concentrated on exploring the ‘margins’ of adjustment to CC: changes in production levels of existing crops; switches in crops; changes in land utilization; labor relocating to urban areas/migration; adjustments in the volume of trade at different scales (regional or international). All reviewed models show that enlarging the channels of adjustment mitigate the amplitude of the loss in welfare from expected CC over the 21st Century. Decomposing the welfare changes suggests two conclusions. First adjustments in crop selection and in bilateral trade partners contribute approximately equally to reducing the costs of adjustments. Second, the expected sharp increase in food prices resulting from warming is likely to hit SSA most strongly.• Trade facilitation. A functioning global trading system is a public good to become more valuable under CC. Free and unfettered access to global food (and other key) supplies must be ensured, especially for Africa. This requires a rapprochement between the trade and climate regimes. As an entry point, besides dealing with harmful subsidies (fossil fuels, fisheries), developed countries could conclude a plurilateral Environmental Goods Agreement (EGA) that would be a triple win for trade, for the environment, and for African agriculture that needs tariff-free access to climate-Adaptation related EGs (AEGs). The paper documents the magnitude of tariffs on Environmental Goods.The paper concludes that African countries could improve the functioning of the continental policy architecture by several measures. First by excluding AEGs from exclusion lists on the AfCFTA while simultaneously reducing their barriers to trade on AEGs and EPPs. Second, preserving the environment should be mainstreamed in the African trade architecture by including environmental provisions. |
| Keywords: | Climate change, adaptation, Africa, Environmental goods |
| JEL: | Q50 Q56 F18 F64 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2022/56&r=env |
| By: | Khuc, Quy Van; Tran, Duc-Trung |
| Abstract: | This paper introduces an advanced method that integrates contingent valuation and machine learning (CVML) to estimate residents’ demand for mitigating environmental pollutions and climate change. To be precise, CVML is an innovative hybrid machine-learning model, and it can leverage a limited amount of survey data for prediction and data enrichment purposes. The model comprises of two interconnected modules: Module I, an unsupervised learning algorithm, and Module II, a supervised learning algorithm. Module I is responsible for clustering the data (x^sur) into groups based on common characteristics, thereby grouping the corresponding dependent variable (y^sur) values as well. Take a survey on the topic of air pollution in Hanoi in 2019 as an example, we find that CVML can predict households’ willingness– to– pay for polluted air mitigation at a high degree of accuracy (i.e., over 90%). This finding suggests that CVML is a powerful and practical method that would be potentially widely applied in fields of environmental economics and sustainability science in years to come. |
| Date: | 2023–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:r35bz&r=env |
| By: | Arnita Rishanty (Bank Indonesia); Maxensius Tri Sambodo (Indonesian Institute of Sciences); Donni Fajar Anugrah (Bank Indonesia); Fathia Retno Puspita K. Wicaksono (Bank Indonesia) |
| Abstract: | The energy transition is an important process to tackle the climate crisis due to the rapid increase of carbon emissions. This study aims to measure to what extent the transition of energy- related CO2 emissions from several dimensions, namely the country’s energy mix, energy self-sufficiency, energy security, sustainability, and affordability. This study contributes to the conduct of quadrant analysis of transition matrix for ASEAN plus three countries to map the dynamics of the transition in those countries. This study makes a comparison, not only in Indonesia, but also between ASEAN plus three countries (Japan, China, and South Korea). We find that economic activity has the greatest influence on the increase in CO2 emissions and that the efficiency and diversity categories may run asymmetrically. Based on the discussion with experts, Indonesia has a huge potential of renewable energy, yet the utilization is considerably low. It is also indicated that transition risks are associated with financing problems, fossil subsidies, geography, huma n capacity, excess fossil energy capacity, and financial resilience of state enterprises. |
| Keywords: | Energy Transition, ASEAN, renewable energy, transition matrix |
| JEL: | Q4 Q2 O1 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:idn:wpaper:wp082022&r=env |
| By: | Daulagala, Chathuranga; Breen, James; Buckley, Cathal; Krol, Dominika |
| Keywords: | Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334539&r=env |
| By: | Oduntan, Oluwakemi; Obisesan, Adekemi Adebisola; Ayo-Bello, Taofeeq Ayodeji |
| Keywords: | Environmental Economics and Policy, Agricultural and Food Policy |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334534&r=env |
| By: | Senni, Chiara Colesanti; von Jagow, Adrian |
| Abstract: | This paper studies how reduced water availability affects hydroelectricity generation in Europe and the US. We build a novel dataset for the period 2015-2021 that matches information on hydropower plants with geospecific precipitation and water risk (a compound measure reflecting different aspects of water availability). The paper develops two complementary research designs. First, it uses a cross-sectional design that considers changes in hydroelectricity generation in 2021 - a low rainfall year - compared to its historical average. We find that plants located in riskier basins produced less electricity vis-a-vis the historical average compared to their counterparts located in less risky basins. Second, we use a panel design where we exploit changes in precipitation over time. Consistent with our cross-sectional results, we find a that an increase in precipitation is associated with higher levels of electricity generation. The empirical strategies adopted in this paper offer a framework that can be replicated for other sectors and environmental risks. The findings inform the design of the low-carbon transition and the management of environmental financial risks. |
| Keywords: | hydroelectricity generation; water-related risks; energy security; geospatial data |
| JEL: | C21 C23 Q20 Q25 Q42 Q51 |
| Date: | 2023–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:119255&r=env |
| By: | Clarisse Aujoux (IAP - Institut d'Astrophysique de Paris - INSU - CNRS - Institut national des sciences de l'Univers - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique); Kumiko Kotera (VUB - Vrije Universiteit Brussel, IAP - Institut d'Astrophysique de Paris - INSU - CNRS - Institut national des sciences de l'Univers - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique); Odile Blanchard (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | We present a pioneering estimate of the global yearly greenhouse gas emissions of a large-scale Astrophysics experiment over several decades: the Giant Array for Neutrino Detection (GRAND). The project aims at detecting ultra-high energy neutrinos with a 200, 000 radio antenna array over 200, 000 km as of the 2030s. With a fully transparent methodology based on open source data, we calculate the emissions related to three unavoidable sources: travel, digital technologies and hardware equipment. We find that these emission sources have a different impact depending on the stages of the experiment. Digital technologies and travel prevail for the small-scale prototyping phase (GRANDProto300), whereas hardware equipment (material production and transportation) and data transfer/storage largely outweigh the other emission sources in the large-scale phase (GRAND200k). In the mid-scale phase (GRAND10k), the three sources contribute equally. This study highlights the considerable carbon footprint of a large-scale astrophysics experiment, but also shows that there is room for improvement. We discuss various lines of actions that could be implemented. The GRAND project being still in its prototyping stage, our results provide guidance to the future collaborative practices and instrumental design in order to reduce its carbon footprint. |
| Keywords: | Greenhouse gas emission, Carbon footprint, Climate change, Large-scale astrophysics experiment, Radio-detection |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03228304&r=env |
| By: | Julia M. Puaschunder (Columbia University, Graduate School of Arts and Sciences, USA) |
| Abstract: | The article is designed to aid academics and practitioners envisioning the future of resilient leadership in the finance world. In the aftermath of substantial crises, resilience is key for survival. The system dynamics of resilience are associated with fast-paced decision making under uncertainty, which predestines resilience more to be housed in a muddling-through approach rather than slow-thinking optimality control. Given the nature of resilience to gravitate towards satisficing crisis management, the marriage of resilience with leadership offers to imbue invaluable efficiency and rationality in market survival. Resilience leadership draws attention to leadership features in resiliency, such as clear goal attainment and rational execution plan strategy. This article provides an overview of resilience leadership in finance by the contemporary governmental, corporate and global governance efforts of three cases: 1. The Green New Deals as governmental resilience finance leadership; 2. Socially Responsible Finance as a corporate and financial sector resilience endeavor as well as 3. climate justice redistribution pledges as an international sustainable development strategy. The new age of resilience leadership in finance captures monetary means as a source of politics, diplomacy and international aid. Our new resilience leadership features the contemporary societal impact of the current outpouring of rescue and recovery funds and a boom in socially responsible investments that integrate environmental, social, and governance criteria in portfolio choices imbuing sustainable value of finance for society. Climate change resilience in redistribution funds serves as additional resilience leadership example at the forefront of sustainable development. |
| Keywords: | Comparative Corporate Social Responsibility, Social Justice, Coronavirus, COVID-19, Creative destruction, Economic growth, Economics, Environmental financialization, European Green Deal, Finance, Global governance, Goals, Government spending, |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:smo:scmowp:01272&r=env |
| By: | Schreiner, Lena (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | This paper investigates the impact of financial frictions on sustainable economic growth in the global economy. We present a model of endogenous directed technical change including a public and private financial sector, allowing for an endogenous financing decision in terms of internal and different external financing of technical change. Capturing the dynamics between the ‘global North’, i.e., the developed economies, and the ‘global South’, i.e., the developing economies, we allow for technological development to occur through innovation or imitation and, hence, capturing technology diffusion processes in the global economy. Our findings substantiate the way in which the presence of financing costs and frictions in the financial markets—which are elevated with regards to sustainable innovation and in the developing world—cause the global economy to converge towards a non-sustainable growth path in the absence of policy intervention. This development can be addressed partially, but not fully, by sustainable public investment. However, to steer the economy to a fully sustainable growth path, an additional regulation or incentivization of private investors is necessary. Alternatively, a sufficiently high carbon price can be set. However, other than in the current reality, this carbon price would have to cover a large share of global emissions. |
| Keywords: | Sustainable innovation; sustainable finance; innovation finance; green growth; financing frictions; directed technical change; endogenous innovation |
| JEL: | N70 O11 O16 O19 O31 O33 O44 Q43 |
| Date: | 2023–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2023_003&r=env |
| By: | Cazzola, Pierpaolo; Murphy, Colin |
| Keywords: | Engineering, Social and Behavioral Sciences, low-carbon fuels, sustainable aviation fuel, maritime transportation, aviation |
| Date: | 2023–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt2fp404bj&r=env |
| By: | McCormack, Michele |
| Abstract: | Diffuse pollution from agriculture continues to be a significant threat to waterbodies. This study investigates the role of diverse farming objectives on a farmers’ openness to adopt a suite of mitigative measures that could have a positive effect on water quality. Based on a farmer survey, factor analysis was used to reduce a long list of potential farming objectives to three: Long Term Economic objectives (LTE), Short Term Economic objectives (STE) and Environmental objectives (ENV). The results indicate that farming objectives are a highly significant predictor of openness to adopt mitigation measures that have the potential to improve water quality. Our findings suggest that farmers with LTE and ENV objectives are more open to adopting many of the same mitigation measures while farmers with STE objectives are less open. |
| Keywords: | Environmental Economics and Policy, Farm Management |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334532&r=env |
| By: | Vozian, Katia; Costola, Michele |
| Abstract: | The European low-carbon transition began in the last few decades and is accelerating to achieve net-zero emissions by 2050. This paper examines how climate-related transition indicators of a large European corporate firm relate to its CDS-implied credit risk across various time horizons. Findings show that firms with higher GHG emissions have higher CDS spreads at all tenors, including the 30-year horizon, particularly after the 2015 Paris Agreement, and in prominent industries such as Electricity, Gas, and Mining. Results suggest that the European CDS market is currently pricing, to some extent, albeit small, the exposure to transition risk for a firm across different time horizons. However, it fails to account for a company's efforts to manage transition risks and its exposure to the EU Emissions Trading Scheme. CDS market participants seem to find challenging to risk-differentiate ETS-participating firms from other firms. |
| Keywords: | climate change, transition risk, credit risk, credit default swap, emissionstrading system (ETS), financial markets |
| JEL: | G1 E58 G32 Q51 D53 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:387&r=env |
| By: | Khuc, Quy Van; Nguyen, An Thinh; Ha, Truong Thu; Dang, Thao; Tien, Nguyen Dinh; Ha, Nguyen Thi Vinh; Thuy, Pham Thu; , Le Khanh Cuong; Do, Uyen; Nguyen, Hien |
| Abstract: | This study investigates Vietnamese citizens’ participation in plastic waste treatment and environment improvement. We developed and adopted a novel method (CVMM) that integrates the contingent valuation, mindsponge, and mindspongeconomics – a new type of economics to estimate and reasonate households’ financial contribution for improved plastic waste treatment in North Vietnam. CVMM analytics were used to explore 1103 observations surveyed during 2022-2023 in the North Vietnam. The empirical findings suggest that public-private partnership should be further expanded and/or strengthen to improve finance while stronger environment policy associated with environmental education should be taken to improve environmental literacy and build environmental culture, which ultimately help address plastic waste and environmental issues in the long run. |
| Date: | 2023–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:a5xmt&r=env |
| By: | Ro, Yoon Jae (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Minhee (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Soeun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 본 연구는 기후변화가 방글라데시에 미친 영향, 방글라데시의 기후변화 대응 정책 및 전략 분석, 국제사회 내 방글라데시 지원 현황과 특징 등에 대해 분석하였다. 해당 분석을 바탕으로 방글라데시는 해수면 상승, 자연 재해 빈도 증가 등 1차적 영향과 기후변화로 인한 농업 생산성 저하 및 이로 인한 이주 등 2차적 영향을 받는 것을 확인하였다. 또한 방글라데시 정부가 기후변화 대응을 위해 수해 대응역량 강화 및 수자원 개발 등을 우선하여 정책을 수립하고 있으며, 국제사회 역시 이러한 방글라데시 정책을 기후변화 ODA로 적극 지원하고 있음을 확인할 수 있었다. 향후 방글라데시 정부의 수요와 한국 ODA 경험 및 기술적 우위가 있는 수자원 분야의 협력 강화 및 기후변화 취약 계층에 대한 지원 등 다각적인 협력의 가능성을 제시하였다. Climate change poses one of the greatest threats to humanity and nature, with Bangladesh recognized as one of the most vulnerable countries due to its geographic location. The lives of Bangladeshi residents are directly or indirectly affected by frequent heat waves, droughts, and floods caused by climate change. Various statistics and studies show that Bangladesh’s vulnerability to climate change is not only affected by long-term changes such as a rise in global temperature and precipitation patterns but also by mid- to short-term changes such as sea-level rise and an increase in natural disasters. Bangladesh is considered one of the most vulnerable countries to flooding and rising sea levels, as it has the world’s largest delta area and more than 70% of its total land area is less than one meter above sea level. Extreme climate change and flooding are causing a decline in agricultural production in Bangladesh’s major agricultural areas, making it increasingly difficult to secure sufficient supplies of drinking water. Additionally, urban slumming due to excessive migration to inland cities by coastal residents who have lost their livelihoods is emerging as a new social problem. The Bangladesh government has presented various policy directions to address this situation. It has included climate change response strategies in its long-term economic development policies, such as Delta 2100 and PP2041. Development policies such as 8FYP and ADP focus on flood response capabilities and water resource management. Bangladesh has also established various national plans and initiatives related to climate change mitigation and adaptation to actively respond to the impacts of climate change that threaten the population. Furthermore, Bangladesh, as the chair of the Climate Vulnerable Countries Forum, is a leading voice in the international community for climate-vulnerable countries. In 2010, Bangladesh became the first least-developed country to establish a trust fund for the Climate Vulnerable Countries Forum, encouraging the international community to provide financial support for climate-vulnerable countries.(the rest omitted) |
| Keywords: | 경제안보; 경제협력; 방글라데시; 기후변화; 기후적응; 대응정책; Economic Security; Economic Cooperation; Bangladesh; Climate Change; Climate Adaptation; Response Policy |
| Date: | 2022–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepre:2022_006&r=env |
| By: | Ferry Syarifuddin (Bank Indonesia) |
| Abstract: | This study investigates the preferences of various Islamic Financing Instruments to promote green economy ransformation adopting ANPBOCR (Benefit, Opportunity, Cost, Risk) approach, with two groups of experts as the respondents, namely academicians and practitioners. The first finding shows, that ‘Benefit’ aspect is the most preferred, urgency to conduct green economy transformation. Among criteria in the benefit aspect, natural resource damage prevention and reduction are the primary issues which is in line with maqasid al-Syari’ah (objectives of Islamic law). Using standard formula, the second finding shows that Islamic Asset Management is the most preferred Islamic financial instrument to perform green economy transition. Meanwhile, the third finding shows that in the short-term, Islamic Asset Management is more preferred financial instrument. Whereas, Islamic corporate and investment banking is the most preferred and crucial for long-term when transforming economy to green. |
| Keywords: | Green Economy Transformation, Islamic Green Financing, ANP, BOCR |
| JEL: | Q56 Q58 G20 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:idn:wpaper:wp052022&r=env |
| By: | Tami Dinh (University of St. Gallen); Florian Eugster (University of St. Gallen and Swiss Finance Institute); Anna Husmann (University of St. Gallen) |
| Abstract: | Based on signaling theory, we examine the role of external reviews during the life-cycle of corporate green bonds. We focus on (1) whether investment greenness is related to external review upon issuing a green bond and (2) whether disclosure quality is positively associated with the assurance of green bond reports. Our results indicate that although companies with worse environmental performance are more likely to obtain at-issuance external reviews for their green bonds, their certified investments are more likely to be greener than those companies that did not obtain a review at issuance. This suggests that a more regulated form of external review may serve as a credible signal for green proceeds invested. In addition, we develop a disclosure index for green bond reports and show that post-issuance report assurance is associated with increased transparency. Our findings provide evidence that external reviews in the green bond issuance process are important governance factors to rule out potential greenwashing through the use of corporate green bonds. |
| Keywords: | Green Bonds, External Review, Assurance, Sustainable Investments, Disclosure Quality |
| JEL: | G23 M14 M41 M42 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2333&r=env |
| By: | Sato, Misato; Gostlow, Glen; Higham, Catherine; Setzer, Joana; Venmans, Frank |
| Abstract: | Communities and individuals are increasingly turning to courts to hold governments and high emitting corporations to account for the adverse consequences of climate change and are starting to find success. For defending corporations, rising climate litigation risk may exacerbate well-known physical and transition risks associated with climate change. Yet, little is known about the impacts of climate litigation against corporations. Here we provide the first robust evidence. We construct a comprehensive database of filings and decisions relating to 108 climate change lawsuits worldwide against US and European-listed corporations between 2005–2021. Our causal analysis estimates that a filing or an unfavourable court decision in a climate case reduced firm value by -0.41% on average, relative to expected values. The largest stock market responses were found for cases filed against Carbon Majors, reducing firm value by -0.57% following case filings and by -1.50% following unfavourable judgements. Larger market reactions are observed in “novel” cases involving a new form of legal argument or in a new jurisdiction. No statistically significant effect on firm value was found in filings against non-Carbon Majors. We conclude that lenders, financial regulators, and governments should consider climate litigation risk as a relevant financial risk in a warmer future. |
| Keywords: | regulation; spillovers; environment; energy; firms |
| JEL: | J1 R14 J01 |
| Date: | 2023–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:119260&r=env |
| By: | Joseph Abdelnour (ESSCA School of Management, France, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon); Nicolas Aubert (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, INSEEC - Institut des hautes études économiques et commerciales | School of Business and Economics); Walid Ben-Amar (University of Ottawa [Ottawa]) |
| Abstract: | This paper investigates the relationship between Employee Stock Ownership (ESO) and voluntary carbon disclosures. Given that previous research has shown the beneficial effects of ESO on work attitudes and corporate performance, we link ESO and board representation with the attributes of voluntary climate-related disclosures. We use three proxies to capture these attributes: corporate decisions to respond to the Carbon Disclosure Project (CDP) annual questionnaire; corporate decisions to make responses publicly available, and the quality of a firm's disclosures on climate-change-related risks and strategies to mitigate them. Our results show a positive association between ESO and decisions to both answer the CDP questionnaire, and make responses publicly available. In contrast, ESO does not seem to impact carbon disclosure quality. The findings contribute to the ongoing debate on the determinants of voluntary climate change disclosures, highlighting the importance of ESO to enhance the transparency of voluntary disclosures of climate change business impacts. |
| Keywords: | employee stock ownership, carbon disclosure, climate change, sustainability, carbon disclosure project |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-04094880&r=env |
| By: | Gözlügöl, Alperen Afðsin; Ringe, Wolf-Georg |
| Abstract: | An unfamiliar term in the not-too-distant past, "net zero" has become a headline-maker in the business and financial world with the growing importance of climate change. Succumbing to increasing pressure, companies and financial institutions around the world have come to adopt net-zero transition plans and targets, pledging to hit certain emission-reduction targets in a long-term period. Moreover, regulators around the world have started to require the disclosure or adoption of net-zero transition plans and targets. However, an unintended consequence of net-zero transition commitments has been the increased popularity of divestments. That is, many firms seeking to fulfill a net-zero plan are passing on carbon-intensive assets (i.e., oil, gas, and coal assets) to other firms that are likely to be non-committal to environmental goals or that operate under less pressure from investors, stakeholders, and regulators. Such divestments, technically mergers and acquisitions (M&A) transactions, present an ideal opportunity to improve a divesting firm's environmental record and reach ambitious net-zero goals, creating the impression that an emission reduction has occurred. However, the key is how acquiring firms handle these assets. If they continue operating as before, there will not be an overall improvement for the global climate. Worse, such assets can be operated by new owners in a way that causes more emissions. In any case, such divestments undermine the credibility and value of net-zero ambitions by allowing firms to reach targets by simply divesting assets. This article explores the reasons and motivations for divestments or, more broadly M&As of carbon-intensive assets and explains why the increased role of net-zero commitments can be undermined by those transactions. We provide some evidence to illustrate the landscape of such transactions and the concerns they give rise to. Lastly, we explore several policy options to address the problem. |
| Keywords: | Net-zero transition, climate change, divestments, mergers and acquisitions, net-zero plans and targets, regulatory arbitrage, net-zero arbitrage |
| JEL: | G18 K22 K32 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:386&r=env |
| By: | Yuwono, Bintang; Yowargana, Ping; Kranzl, Lukas; Haas, Reinhard; Dewi, Retno Gumilang; Siagian, Ucok Welo Risma; Kraxner, Florian |
| Abstract: | Energy system optimisation models (ESOMs) are widely used for policy analyses particularly on topics related to climate change mitigation and renewable energy transition. Using ESOM to investigate regions that potentially require significant expansion of grid infrastructure requires incorporation of grid expansion problem within the optimisation. This study presents the development of SELARU, a Mixed-Integer Linear Programming (MILP) model for spatially explicit long-term energy infrastructure planning. The model is used to investigate the case study of Indonesia using various spatial treatments to demonstrate the impact of detailed spatial depiction of grid expansion. Results reveal significant difference in renewable energy deployment trajectory (up to 315% increase in generation capacity) between high-resolution spatial depiction of grid expansion vis-à-vis non spatially explicit energy system optimisation. SELARU’s high-resolution energy system optimization modelling also provides detailed information on the geographical extent of grid expansion requirement, which provides more realistic insights on governance challenges of renewable energy transition. Careful consideration of spatial representation is crucial when ESOM is used to evaluate scenarios that concern technology selection such as renewable energy deployment or climate change mitigation. |
| Date: | 2023–05–16 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:aw4bd&r=env |
| By: | Julia M. Puaschunder (Columbia University, Graduate School of Arts and Sciences, USA) |
| Abstract: | In the aftermath of the 2008/09 World Financial Recession as well as after the COVID-19 external economic shock fallout, the stakeholder interest in integrating social considerations in corporate and finance market endeavors has risen steadily. The looming climate change crisis has exacerbated the call for sustainability in economics, finance and professional governance and leadership. In the USA and Europe, Green New Deals are governmental projects to imbue sustainability practices in corporate and financial sector activities. In the area of capital market supervision in the USA, the Securities and Exchange Commission has proposed mandatory disclosures regarding climate change risks in the wake of attention to Environmental, Social and Governance. In Europe, the European Sustainable Finance Taxonomy classifies industry’s CO2 emission levels in order to use transparency to curb environmentally-harmful activities for the sake of sustainability. Financial Social Responsibility continues to grow in qualitative and quantitative terms, foremost in Socially Responsible Investment. The corporate sector has responded to all these sustainability trends with the concept of ‘Pay for Sustainability’ as an executive compensation form that either lowers variable pay if sustainability is not implemented or provides executive bonuses for pro-active sustainability integration into corporate activities. This paper addresses contributions of behavioral economics for improving the acceptance and efficiency of ‘Pay for Sustainability’ remuneration schemes in three features: 1. Socio-psychological aspects of remuneration that heighten social status and social belonging imbuing meaning and purpose to work; 2. Temporal bundling strategies that help decision makers envision now and the future at the same time, which helps aligning short-term with long-term goals of corporations; 3. Prospect Theory’s insights that losses emotionally loom larger than gains, which provides valuable communication nudges for outlining the intangible emotional value of sustainability care. Overall, this article discusses the current state of ‘Pay for Sustainability’ remuneration and highlights positive affirmation and communication nudges to work with social status-enhancing behavioral communication features that boost the positive acceptance of and reaction to ‘Pay for Sustainability.’ |
| Keywords: | Corporate Social Responsibility, Behavioral Economics, Behavioral Insights, Board decision making, Economics, Environmental financialization, European Green Deal |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:smo:scmowp:01258&r=env |
| By: | Campiglio, Emanuele; Lamperti, Francesco; Terranova, Roberta |
| Abstract: | We develop a dynamic model where heterogeneous firms take investment decisions depending on their beliefs on future carbon prices. A policy-maker announces a forward-looking carbon price schedule but can decide to default on its plans if perceived transition risks are high. We show that weak policy commitment, especially when combined with ambitious mitigation announcements, can trap the economy into a vicious circle of credibility loss, carbon-intensive investments and increasing risk perceptions, ultimately leading to a failure of the transition. The presence of behavioural frictions and heterogeneity - both in capital investment choices and in the assessment of the policy-maker’s credibility - has strong non-linear effects on the transition dynamics and the emergence of ‘high-carbon traps’. We identify analytical conditions leading to a successful transition and provide a numerical application for the EU economy. |
| Keywords: | beliefs; behavioural macroeconomics; credibility; investment decision-making; heterogeneous expectations; low-carbon transition; policy uncertainty |
| JEL: | C63 D84 Q54 Q58 |
| Date: | 2023–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:119258&r=env |
| By: | Lundin, Erik (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Green parties are commonly seen as strong proponents of wind power. This paper presents an alternative view, examining data from the highly decentralized institutional setup in Sweden where approval of wind power applications is delegated to local governments. I demonstrate that the approval rate of land based wind power drops by 11 percentage points (from 49 % to 38 %) in municipalities where the Greens are in the ruling coalition, conditional on the share of Green seats in the local council. The association is identified using a twoway fixed-effects logit model with panel data on electoral outcomes from six election terms (2000-2020) in 290 municipalities, combined with detailed data on every application for wind power in Sweden. No statistically significant effect is found for any other of the main parties. A likely mechanism is that even if the Greens have relatively stronger preferences for climate policy than other parties, they are also relatively more concerned about local environmental disamenities caused by wind power. Since decision making is decentralized, local environmental concerns dominate preferences for climate policy, which should be especially pertinent in small municipalities. In line with this argument, I also show that the effect is inversely correlated with municipality population size. |
| Keywords: | Wind power; Decentralization; Negative externalities; Electricity market; Energy transition; Climate policy; Elections; Nimbyism; Green Party |
| JEL: | D62 D72 H73 P18 Q48 |
| Date: | 2023–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1464&r=env |
| By: | Sommer, Stephan; Konc, Théo; Drews, Stefan |
| Abstract: | The success of climate policies depends crucially on the dynamics of public support. Using unique longitudinal data from three surveys conducted between 2019 and 2022, we study the variations of public support for carbon pricing in Germany. The period includes two relevant events: the introduction and ramping up of carbon pricing in Germany and the exogenous increase in energy prices following the Russian invasion of Ukraine. Using panel methods, we show that support is very persistent over time and might have increased slightly more recently. However, people who experience high energy costs display a lower support. Regarding revenue use, we detect that social cushioning has become more popular after the introduction of carbon pricing. Our findings suggest that it is crucial to gather enough support before implementing climate policies. |
| Keywords: | Climate change mitigation, political economy, panel methods |
| JEL: | D12 H23 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:1017&r=env |
| By: | Nguyen, Chi; Latacz-Lohmann, Uwe |
| Keywords: | Financial Economics, Environmental Economics and Policy |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334544&r=env |
| By: | Fabio Santeramo; Monica Delsignore; Enrica Imbert |
| Abstract: | The bioenergy sector is becoming of increasing interest: the European Union is not an exception. Indeed, it is in need of solutions to face one of the worst energy crises of the last century. The sector’s growth faces numerous challenges. The main use of energy crops, as feedstock, generates stiff competition on the use of land for food and energy purposes. The production of bioenergy has relevant environmental implications in terms of greenhouse gas emissions. The social aspects related to the bioenergy sector are also potential obstacles to its development. These pressing issues for policymakers call for a better understanding on how national and international laws should regulate the growth of the bioenergy sector. Flying over the economic, environmental, social, and legislative aspects faced by the bioenergy sector, we conclude on threads, opportunities, and priorities that should be considered for its development and propose directions for future studies. |
| Keywords: | Bioenergy, European Union, impact, land use, law, sustainability |
| JEL: | K32 Q18 Q42 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2023/21&r=env |
| By: | Damien Dussaux; Andrea Leiter; Väinö Nurmi; Christoph Rheinberger |
| Abstract: | While fertility decline is a global phenomenon that has many causes, part of it can be explained by exposure to substances linked to reproductive toxicity that are produced and lead to human exposure through the environment and products. Authorities face challenges in regulating reprotoxic substances through actions such as bans and prohibitions, because of the difficulty in explicitly considering the economic benefits and costs of such regulations. Moreover, economic studies that show the value of reducing infertility caused by chemical exposure are not yet available.This paper is part of the series of large scale willingness to pay (WTP) studies resulting from the Surveys to elicit Willingness to pay to Avoid Chemicals related negative Health Effects (SWACHE) project that intends to improve the basis for doing cost benefit analyses of chemicals management options and environmental policies in general. The present paper details a stated preference survey estimating WTP to reduce the risk of infertility, filling an important gap in the valuation literature and addressing a need for applied benefits analysis for chemicals regulation. The SWACHE infertility survey was fielded in 10 countries: Australia, Canada, Chile, Germany, Japan, Poland, Portugal, Sweden, the United Kingdom and the United States. |
| Keywords: | chemicals regulation, economic valuation, health risk, health valuation, infertility, monetised benefits, morbidity valuation, non-market valuation, stated preferences, surveys, value of a statistical case, willingness-to-pay |
| JEL: | D61 J17 K32 Q51 Q53 Q58 I18 |
| Date: | 2023–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:215-en&r=env |
| By: | Hendrik Hansmeier; Sebastian Losacker; |
| Abstract: | Given that eco-innovations and the associated renewal of economic structures are pivotal in addressing environmental problems, economic geography research is increasingly focusing on their spatio-temporal dynamics. While green technological and industrial path developments in specific regions have received considerable attention, little effort has been made to derive general patterns of environmental inventive activities across regions. Drawing on unique data capturing both green incumbent and green start-up activities in the 401 German NUTS-3 regions over the period 1997-2018, this article aims to trace and compare the long-term green regional development. For this purpose, we introduce social sequence analysis methods to economic geography that allow us to understand the constitution of regional eco-innovation trajectories. The findings suggest that regions mainly display distinct trajectories. Yet, structural similarities emerge in the sense that regions of the same type occur in spatial proximity to each other and show persistent specialization patterns. These range from the simultaneous presence or absence of green incumbents and green start-ups to the dominance of just one of the two groups of actors. Only some regions manage to establish an above-average eco-innovation specialization over time. Since this greening originates from either green incumbent or green start-up specialization, green regional trajectories can be assumed to unfold mainly in a path dependent and less radical manner. In summary, this study provides important empirical and methodological impulses for further in-depth analyses to disentangle spatio-temporal phenomena in economic geography. |
| Keywords: | eco-innovation, green regional development, path dependency, regional transitions, social sequence analysis |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2313&r=env |
| By: | Damien Dussaux; Gildas Appéré; Alan Krupnick; Muriel Travers |
| Abstract: | Asthma is a non-communicable and non-curable lung disease that is associated with an array of environmental contaminants and chemicals. Many of these hazards are subject to regulation, or may be considered for regulation, in order to reduce exposures and prevent human health risks. However, the available information on willingness-to-pay (WTP) to avoid asthma or reduce its severity is scarce, incomplete and does not provide estimates compatible with welfare economic theory that can be used in cost-benefit analysis. This paper is part of the series of large scale willingness to pay (WTP) studies resulting from the Surveys to elicit Willingness to pay to Avoid Chemicals related negative Health Effects (SWACHE) project that intends to improve the basis for doing cost-benefit analyses of chemicals management options and environmental policies in general. The present paper offers values suitable for use in cost-benefit analyses of the WTP for reduced severity of asthma attacks in adults and children and in reduced probability of getting asthma for these two population groups, all in the context of reducing chemical exposures, and covering populations in seven OECD countries: Canada, Czech Republic, France, Poland, Sweden, the United Kingdom and the United States. The context for such WTP elicitations was a set of household products that contain fewer hazardous chemicals than what is currently available in supermarkets but are more expensive. |
| Keywords: | asthma, chemicals regulation, economic valuation, health risk, health valuation, monetised benefits, morbidity valuation, non-market valuation, stated preferences, surveys, value of a statistical case, willingness-to-pay |
| JEL: | D61 I18 J17 K32 Q51 Q53 Q58 |
| Date: | 2023–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:218-en&r=env |
| By: | Samira Gholami |
| Abstract: | The fashion industry has grown exponentially in recent years. On the other hand, this industry is one of the environmentally destructive industries and has faced many challenges. Respect for the environment has led to the emergence of a movement reflected in the concept of sustainable marketing. Since every organization must follow marketing strategies in line with society's expectations to succeed in its business, sustainable marketing is one of the most influential and comprehensive branches in this field. This study examines the positive impact of sustainable marketing on consumer purchasing decisions in fashion products in a review method. The results we mention below show that companies that pay attention to sustainability are increasing because consumers, aware of the concept of sustainability and creating a sense of social responsibility, prefer sustainable products. Key words: Sustainable marketing, social responsibility, environmental protection, consumer behavior, fashion |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:vor:issues:2022-43-05&r=env |
| By: | Madrigal, Roger; Alpízar, Francisco |
| Abstract: | El objetivo de este documento es revisar, identificar y analizar oportunidades para instrumentos fiscales en el sector de la gestión de residuos en Costa Rica, según las prioridades de la contribución determinada a nivel nacional actualizada, el plan de descarbonización y la recuperación verde pos-COVID-19. En particular, se busca, primero, analizar el contexto del sector de residuos del país, incluidos la gestión de los residuos, sus emisiones, las externalidades ambientales y sociales, los actores y normativas relevantes, y los avances del plan de acción del sector, entre otros aspectos; segundo, revisar la literatura sobre el uso y el impacto de los instrumentos fiscales en el sector de gestión residuos en diversos países, que provee lecciones que pueden ser útiles para la adaptación de instrumentos similares en el país; tercero, identificar oportunidades para la aplicación de instrumentos fiscales en dicho sector para la descarbonización y la recuperación verde en Costa Rica, y, por último, presentar un análisis preliminar de los efectos potenciales de algunos instrumentos fiscales para la gestión de residuos en la mitigación de emisiones, así como el costo y la recaudación fiscal en el país. |
| Keywords: | ADMINISTRACION DE DESPERDICIOS, PROTECCION AMBIENTAL, DESARROLLO SOSTENIBLE, POLITICA FISCAL, WASTE MANAGEMENT, ENVIRONMENTAL PROTECTION, SUSTAINABLE DEVELOPMENT, FISCAL POLICY |
| Date: | 2023–05–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:48861&r=env |
| By: | Susana Mourato; Giles Atkinson; Damien Dussaux; Chiara Sotis; Stavros Georgiou; Davide Contu |
| Abstract: | Exposure to chemicals has been shown to reduce IQ in children. In turn, a person’s IQ is likely to affect their educational achievements, which may then affect lifetime earnings, more generally, a person’s quality of life. At the same time, authorities face challenges in regulating chemical substances through actions such as bans and prohibitions, because of the difficulty in explicitly considering the economic benefits and costs of such regulations. Moreover, economic studies that show the value of reducing IQ loss caused by chemical exposure are not yet available.This paper is part of the series of large scale willingness to pay (WTP) studies resulting from the Surveys to elicit Willingness to pay to Avoid Chemicals related negative Health Effects (SWACHE) project that intends to improve the basis for doing cost benefit analyses of chemicals management options and environmental policies in general. The present paper details a stated preference survey estimating WTP to avoid IQ loss, filling an important gap in the valuation literature and addressing a need for applied benefits analysis for chemicals regulation. The SWACHE IQ loss survey was fielded in 11 countries: Australia, Canada, Denmark, Korea, Netherlands, Poland, Portugal, South Africa, Sweden, the United Kingdom and the United States. |
| Keywords: | chemicals regulation, economic valuation, health risk, health valuation, IQ, monetised benefits, morbidity valuation, non-market valuation, stated preferences, surveys, value of a statistical case, willingness-to-pay |
| JEL: | D61 I18 J17 K32 Q51 Q53 Q58 |
| Date: | 2023–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:219-en&r=env |
| By: | Ghauri, Pervez N. (Birmingham Business School); Oxelheim, Lars (Research Institute of Industrial Economics (IFN)); Randøy, Trond (Copenhagen Business School (CBS)) |
| Abstract: | The paper acknowledges the changed geopolitical map and the new adjacent political mindset and examines the current state of the relationship between MNEs and governments/central banks. The focus is on the implications of these changes for business policy in a sustainable finance perspective. Our analysis reveals that the increased tensions in the post-financial crisis of 2008/2009, the ultra-low interest rates during the Pandemic, and development in geopolitics post-Ukraine, contribute to reducing the assumptions for a well-functioning global value chain. These tensions all need to be addressed by careful adaptation of company strategies and government policies. Five corporate strategies for the reorganization are discussed. Moreover, on the positive side the reorganization of the global value chain provides an opportunity to meet the United Nations’ Sustainable Development Goals (SDGs) (United Nations, 2015). The reorganization calls for sustainable financial decisions that internalize environmental, social, and governance (ESG) considerations. The paper addresses this call and explores the implications for the practice of sustainable finance in a MNE that considers a reorganization of its global logistic chain because of increased frictions in crossing national borders. |
| Keywords: | Sustainable finance; ESG; Protectionism; Globalization; State aid; Investment patterns; Global value chain |
| JEL: | D25 E22 E24 E58 E62 F21 F23 L22 |
| Date: | 2023–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1465&r=env |
| By: | Y.-H. Henry Chen; Hossein Hosseini Jebeli; Craig Johnston; Sergey Paltsev; Marie-Christine Tremblay |
| Abstract: | This paper examines how border carbon adjustments (BCAs) may address the unintended consequences of uncoordinated global climate action, focusing on the economic implications for Canada. We investigate these implications under different BCA design features and by considering a coalition of countries and regions that adopt BCAs. We find that BCAs, in the form of import tariffs, reduce Canada’s carbon leakage to the rest of the world and improve its domestic and foreign competitiveness when Canada is part of a coalition of countries and regions that implement BCAs that includes the United States. We show that these results may change if Canada imposes BCAs on a different set of sectors than the rest of the coalition or includes export rebates and free emissions allowances to firms. When the United States is not part of the coalition, we show that Canada’s carbon leakage increases, domestic competitiveness dampens and foreign competitiveness improves. Compared with a case where no countries have BCAs, welfare improves in Canada if revenues from BCAs, in the form of import tariffs, are transferred to households. This finding holds regardless of the United States’ participation in the coalition. |
| Keywords: | Climate change; International topics; Trade integration |
| JEL: | C68 F1 H2 Q5 Q37 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:23-27&r=env |
| By: | Di Liberto, Yuri |
| Abstract: | What if I told you that they knew everything? And that they have known it for a very long time? On January 13 of this year, 2023, in the journal Science, perhaps the most important article to date on climate change was published. In political, social, and ethical terms, this article represents the equivalent of a nuclear bomb, despite the fact that (as is sadly obvious to expect) no one in mainstream news channels (and very few in academia) has mentioned it. |
| Keywords: | capital as power, climate, ExxonMobil, differential accumulation, sabotage |
| JEL: | P1 P18 Q4 Q5 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:270982&r=env |
| By: | Dietrich, Alexander M.; Müller, Gernot J.; Schoenle, Raphael |
| Abstract: | News drive expectations about the economy's future fundamentals. Climate change is big news: it will impact the economy profoundly but the effect will take some time to materialize in full. Climate-change expectations thus offer a unique opportunity to study the impact of news on the business cycle. We measure these expectations in a representative survey of US consumers. Respondents expect not much of an impact on GDP growth, but perceive a high probability of costly, rare disasters-suggesting they are salient of climate change. Furthermore, expectations vary systematically with socioeconomic characteristics, media consumption, various information treatments and over time. We calibrate a New Keynesian model with rare disasters to key results of the survey and find that shifts in climate change expectations operate like demand shocks and cause sizeable business cycle fluctuations. |
| Keywords: | Climate change, Disasters, Expectations, Survey, Monetary policy, Business Cycle, Natural rate of interest |
| JEL: | E43 E52 E58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuewef:158&r=env |
| By: | Khan, Haider |
| Abstract: | In this paper, I develop a part of what I have been calling an ecological global political economy approach. I motivate the discussion by focusing on the links between ecological crisis and income distribution. I have chosen the concrete context of Bangladesh, a country likely to be affected severely by global warming and climate change to illustrate through simulation the theoretical results. Using a fairly neutral and conservative assumption of uniform distribution of loss it can be shown axiomatically that inequality increases when effective income is considered leading to ecologically adjusted income distributions. The simulations presented here for Bangladesh demonstrate that both inequality and poverty measured by some popular indexes increase significantly under even this mild assumption and the assumption of moderate income loss. |
| Keywords: | Ecological Global Political Economy; Axioms of Inequality Comparisons; Axioms of Poverty Comparisons; Bangladesh; Equality of Misfortune Assumption: Adverse Health Effects of Ecological Damage; Resource Depletion; Inequality; Poverty |
| JEL: | I1 I14 I15 |
| Date: | 2023–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:117467&r=env |
| By: | Kang, Sung Jin (Department of Economics, Korea University); Park, Donghyun (Asian Development Bank) |
| Abstract: | The central objective of our paper is to assess the opportunities and challenges for trade for Asian economies during the low-carbon transition. To do so, we examine the green trade patterns of Asian Development Bank member economies in the Asia and Pacific region between 1990 and 2019 based on three widely used green industry classifications, namely US BLS GGS, OECD ENV-TECH, and OECD CLEG classifications. Our analysis yields three key findings. First, the share of green goods in the exports of Asian economies has consistently increased since the early 2010s. Second, the share of Asian economies in global green exports has grown rapidly in recent years. Third, manufacturing products, especially machinery and electric equipment, account for the largest share of green trade. In fact, since the early 2010s, the shares of Asian economies in world manufacturing green exports and imports have increased. However, the green imports share showed faster growth than the exports share. Finally, the pattern of green trade differs depending on green industry definition, pointing to a need for international consensus on defining green trade in order to measure and analyze green trade patterns more accurately. |
| Keywords: | low-carbon transition; green; trade; environment; Asia |
| JEL: | F18 |
| Date: | 2023–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0686&r=env |
| By: | Mr. Zamid Aligishiev; Cian Ruane; Azar Sultanov |
| Abstract: | This note is a user’s manual for the DIGNAD toolkit, an application aimed at facilitating the use of the DIGNAD model (Debt-Investment-Growth and Natural Disasters) by economists with no to little knowledge of MATLAB and Dynare via a user-friendly Excel-based interface. DIGNAD is a dynamic general equilibrium model of a small open economy developed at the International Monetary Fund. The model can help economists and policymakers with quantitative assessments and policy scenario analysis of the macrofiscal effects of natural disasters and adaptation infrastructure investments in low-income developing countries and emerging markets. DIGNAD is tailored to disaster-prone countries, which typically are small countries or low-income countries that are particularly exposed to large climate shocks—countries where shocks that can disrupt the entire economy are frequent. However, DIGNAD can be relevant also for larger countries that may potentially be exposed to extreme climatic disasters in the future. |
| Keywords: | natural disasters; adaptation; resilient infrastructure; public investment; public investment efficiency; debt sustainability |
| Date: | 2023–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imftnm:2023/003&r=env |
| By: | Damien Dussaux; Chris Dockins; Charles Griffiths; Nathalie Simon; Sandra Hoffmann |
| Abstract: | Compromised kidney function is associated with an array of environmental contaminants and chemicals, including heavy metals, certain organic solvents, and polycyclic aromatic hydrocarbons (PAHs), as well as food and waterborne pathogens. Many of these hazards are subject to regulation, or may be considered for regulation, in order to reduce exposures and prevent human health risks. However, valuation estimates for kidney effects that can be used in cost-benefit analyses are few, particularly willingness-to-pay estimates. In particular, there appears to be no willingness-to-pay (WTP) estimate available for reduced risk of chronic kidney disease and therefore no estimate for the Value of a Statistical Case (VSC) of chronic kidney disease.This paper is part of the series of large scale willingness to pay (WTP) studies resulting from the Surveys to elicit Willingness to pay to Avoid Chemicals related negative Health Effects (SWACHE) project that intends to improve the basis for doing cost benefit analyses of chemicals management options and environmental policies in general. The paper details a stated preference survey estimating WTP to reduce the risk of symptomatic chronic kidney disease, termed serious kidney disease in the survey instrument, filling an important gap in the valuation literature and addressing a need for applied benefits analysis for chemicals regulation. The SWACHE serious kidney impairment survey was fielded in 10 countries: Canada, Chile, China, Denmark, Germany, Italy, Norway, Türkiye, the United Kingdom and the United States. |
| Keywords: | chemicals regulation, economic valuation, health risk, health valuation, kidney disease, monetised benefits, morbidity valuation, non-market valuation, stated preferences, surveys, value of a statistical case, willingness-to-pay |
| JEL: | D61 J17 K32 Q51 Q53 Q58 I18 |
| Date: | 2023–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:216-en&r=env |
| By: | Amare, Mulubrhan; Balana, Bedru |
| Abstract: | This paper combines panel data from nationally representative household-level surveys in Nigeria with long-term satellite-based spatial data on temperature and precipitation using geo-referenced information related to households. It aims to quantify the impacts of climate change on agricultural productivity, income shares, crop mix, and input use decisions. We measure climate change in harmful degree days, growing degree days, and changes in precipitation using long-term (30 year) changes in temperature and precipitation anomalies during the crop calendars. We find that, controlling for other factors, a 15 percent (one standard deviation) increase in change in harmful degree days leads to a decrease in agricultural productivity of 5.22 percent on average. Similarly, precipitation change has resulted in a significant and negative impact on agricultural productivity. Our results further show that the change in harmful degree days decreases the income share from crops and nonfarm self-employment, while it increases the income share from livestock and wage employment. Examining possible transmission channels for this effect, we find that farmers change their crop mix and input use to respond to climate changes, for instance reducing fertilizer use and seed purchases as a response to increases in extreme heat. Based on our findings, we suggest policy interventions that incentivize adoption of climate-resilient agriculture, such as small-scale irrigation and livelihood diversification. We also propose targeted pro-poor interventions, such as low-cost financing options for improving smallholders’ access to climate-proof agricultural inputs and technologies, and policy measures to reduce the inequality of access to livelihood capital such as land and other productive assets. |
| Keywords: | NIGERIA; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; household surveys; data; spatial data; temperature; precipitation; climate change; agricultural productivity; income; crops; inputs; nonfarm income; livestock; policies; irrigation; diversification; finance |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2185&r=env |
| By: | Nettekoven, Zeynep Mualla |
| Abstract: | The automotive industry in the European Union (EU) and Germany faces major challenges including decarbonisation, digitalisation and global competition. While the automotive industry has a significant economic role in terms of income and employment, it has immense ecological damages. The green and digital transition make certain occupations redundant, causing job losses, while it generates new occupations in new economic activities. These put the industry in the center of socioecological transformation debate in Germany and the EU. The vertical industrial policy with a focus on energy and technology-intensive areas has become important in the EU and Germany due to these challenges. The industrial policy in the EU and Germany follows an ecological modernisation approach with a "sustainable competitiveness" motto, whereby electromobility transformation is perceived as the ultimate route on the way to decarbonisation, digitalisation and global competitiveness. Alternative approaches see this differently. The democratic conversion approach and the degrowth approach, while having differences, both perceive electromobility as only one part of a comprehensive mobility system transformation needed; they view a decline in private automobility and a more democratic transformation with labour and environmental stakeholders as essential in the face of climate crisis. |
| Keywords: | Automotive industry, electromobility, climate crisis, industrial policy, Germany, European Union |
| JEL: | L50 L62 Q50 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:2082023&r=env |
| By: | MARQUES SANTOS Anabela (European Commission - JRC); COAD Alexander |
| Abstract: | Transformative Innovation Policy (TIP) has an important role in the sudden transition that our economies require to face up to today's grand challenges (climate change, sustainable development goals). In the European Union (EU), Cohesion policy funds are one of the main financing instruments to support innovation and a fair transition. This paper focuses on TIP's monitoring and evaluation (M&E). To begin with, we discuss the various degrees of sophistication that can be found in monitoring and evaluation exercises (i.e. Storey's "6 steps to heaven" scale), ranging from interviews asking recipients whether they are happy to receive funding, to full-blown causal econometric analyses. We then provide a survey of causal inference techniques that reach the 6th step on this scale, and analyse the degree of sophistication of recent EU Cohesion project evaluations. We conclude that evaluation completed by EU Member States using causal inference techniques only represents 8% of the total evaluations conducted for period 2014-2020, and this percentage is even lower when we look at innovation or environmental-related programmes. We identify some gaps in the observed M&E of EU Member States and we provide some recommendations for how to set up M&E, contrasting traditional M&E with modern M&E, and highlighting the need for real-time data. In sum, we state that M&E needs improving, and we suggest how this might be done. |
| Keywords: | Innovation, Sustainability, Policy Monitoring and Evaluation |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:termod:202303&r=env |
| By: | Gronen, Maria Elisabeth; Sudermann, Yannick |
| Abstract: | In the past, both researchers and policymakers have often underlined the important role cities have to play in reaching the objectives of the Paris Agreement and the 17 Sustainable Development Goals (SDGs). Meanwhile, city networks have become increasingly active in approaching international institutions and getting their voices heard. Among them are the Urban7 Group - a recently founded group of city associations from G7 countries advocating for a stronger involvement of cities in G7 policymaking. The discussion about who has a voice in the G7 and what role cities can potentially play in it is significant. The G7, despite being somewhat contentious, remains a highly relevant forum both in terms of the negative contribution of its members to global sustainability crises (such as climate change) and their collective economic capability to address the crises. In the past, references to the role of cities were largely absent from G7 official documents; this changed during Germany's G7 presidency in 2022. Based on a document analysis and semi-structured interviews with ministry officials and city network representatives, this paper investigates how, in 2022, the Urban7 Group was involved in the G7 process, and which actors and contextual factors had an impact on the width and depth of this involvement. While the German presidency opted not to directly involve the Urban7 Group as an official G7 engagement group, the group nevertheless gained access to ministerial negotiations, in particular those of the new G7 track on urban development. The paper finds that this engagement was facilitated by pre-existing contacts with ministerial officials as well as changes in the delineation of ministries following the German federal election in late 2021 that led to changes in political leadership and the formation of a new ministry to take responsibility for urban development. The paper closes with critical reflections on the 2022 process, recommendations and potential avenues for future research. |
| Keywords: | sustainable urban development, urban sustainability, urban development policy, G7, Urban 7, city governance, club governance, multi-level governance, city diplomacy, city networks, Sustainable development goals |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:diedps:42023&r=env |
| By: | Kriek, Carel Johannes |
| Abstract: | Due to the extreme decimation of species worldwide, there is a need to conserve and protect more natural areas and biodiversity. A way to ensure species' survival across areas, is to rewild a protected area or nature reserve by reintroducing regionally extinct fauna and flora, or removing invasive species. In developing countries, these protected areas are generally underfunded and underdeveloped, and therefore may have limited capacity to conserve the wildlife, and/or rewild the park to its previous natural state. This study utilised a discrete choice experiment to determine the preferences and ‘appreciative value’ tourists place on different natural characteristics of the park, in the context of rewilding. This study analysed the responses of 288 tourists from Mokala National Park in the Northern Cape, South Africa, using online questionnaires. The respondent's preferences were drawn from the completed questionnaires by the tourists who have visited the park since its inception in 2007. The natural characteristics ranged from (1) reintroducing carnivores such as lions or cheetahs back into the park, (2) removing non-native species, whether threatened or non-threatened, and (3) boosting endangered species populations such as roan antelope, black rhino and tsessebe. A latent class model was created to identify heterogeneity in the preferences amongst the sampled population. It was determined that there is heterogeneity and that the sampled tourists had varying preferences to rewild the national park to its previous biological state. Respondents of the four classes, strongly preferred reintroducing cheetahs back into the park above a pride of lions. All classes had significant preference for boosting the numbers of endangered black rhinos compared to the status quo. Only 11.20% of the respondents wanted to completely rewild the park by removing the non-native species and reintroducing all the other species identified. Thus, 88.20% of respondents did not support removing the non-native species regardless of their status, either threatened (sable antelope) or non-threatened (impala, nyala and waterbuck). The results provide a basis that rewilding improvements could be initiated, and better park management policies could be implemented, to attract tourists and more successfully rewild the park . Yet, tourists had an affinity for more species diversity in the park above protecting the natural ecosystem. Further research can be done to expand on whether there is a preference for species based on their status, such as being endangered, iconic, carnivore, or megafauna. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cmpart:334753&r=env |
| By: | Donni Fajar Anugrah (Bank Indonesia); Arnita Rishanty (Bank Indonesia); Benny Tjahjono (Coventry University); Fathia Nisa (Bank Indonesia); Dian Rahmawati (Bank Indonesia) |
| Abstract: | The adoption of electric vehicles (EVs) has been suggested as a possible way to reduce excessive carbon emissions and conquering environmental major issues in Indonesia. Despite the advantages of being eco-friendly and providing environmental benefits, there are several barriers and reasons for why the adoption of EVs is still considerably limited in Indonesia. The transition process from existing ICE vehicle to EVs is often not easy to understand, as it involves complex technical, social, and economic facets. Yet, a further investigation on how EV transitions in Indonesia needs to be done. A multidimensional and multi-actor analysis of the EV landscape can help us better understand the dynamics of transition to EVs. In this paper, a multilevel perspective (MLP) framework is used to examine the current state of EV adoption in Indonesia and to interpret the prospects of a possible transition path to EVs. The study shows that a potential transition to EVs in Indonesia presents many socio-technical challenges to overcome including current policies, institutions, technological infrastructure, and social limitations. The insights from this review can be used for settings where policies and institutions are not developed enough to achieve a transition to EVs. |
| Keywords: | Electric Vehicle, Transition Path, Multi-Level Perspective, Indonesia |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:idn:wpaper:wp072022&r=env |
| By: | Yao, Guimin |
| Abstract: | Provided the key effects of oil price shocks on the business cycle, it raises great interests whether renewable energy promotion leads to a more sustainable economic growth for China, one of most important developing economies in the world. To answer this question, this paper examines key macroeconomic and oil indicators on the transition of renewable energy sector in China. We model these shocks as predetermined using a structural vector autoregressive model of Chinese economy and then examine the cumulative impacts on the transition process of renewable energy consumption and investment. Our results present significantly positive yet asymmetric impacts, with the effects cumulating to 2-5% in contraction and stable periods. It also presents first evidence of transition probability and duration for investment and consumption in renewable energy in China. All the evidence is important to the promotion of renewable energy sector in China. |
| Keywords: | Resource /Energy Economics and Policy, International Development |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334538&r=env |
| By: | Maseko, Sulinkhundla |
| Abstract: | Smallholder farmers in Zambia face serious challenges caused by climate change and by variability that threaten their livelihoods. To increase their resilience to climate change, farmers need to adopt various climate-smart agricultural technologies. However, their decisions on the types of technology often lack information about the beneficial effects of particular technologies. The overall objective of this study was to examine the effect of CSA technologies on the welfare of farmers in Zambia. The data used was from a household survey by Total Land Care Zambia as part of the Smallholder Productivity Promotion Programme. The dataset consisted of 407 sampled maize farmers from Northern and Luapula provinces in Northern Zambia, who were selected using a stratified random technique. The study used the propensity score matching technique to account for selection bias in technology adoption in estimating the welfare effects of manure and residue retention. The use of t-test confirmed the existence of systematic differences (selection bias) in the adoption of manure and residue retention. Between these technologies, adopters and non-adopters were statistically different in having received agribusiness training, location (province), legume cultivation, access to agricultural inputs, and access to a water source, household having a male head (gender), climate change awareness, extension access, use of a treadle pump and being involved in seed production. Empirical results, showed that manure adoption resulted in positive and significant gap in household maize yield (32% to 39.2% increase) between adopters and non-adopters at 5% level of significance. The maize income gap between the adopters of manure and non-adopters was positive, ranging from 21.8% to 22.3%. Overall, the adopters of manure who were comparable with non-adopters had a higher maize yield and income. On the impact of residue retention, v the results showed that the adoption of residue retention led to a positive gap in the household maize yield (ranging from 19.5% to 25.3%). The crop income (maize) was not significantly affected by residue retention adoption, with effect ranging from negative 3.95% to positive 5.1%. Overall, residue adoption increased farmers’ maize yield while the effect on income was smaller. These technologies were found to have positive effect on farmers welfare. Increase in yield reduces household food insecurity. However, the adoption rate of these technologies was low at 13.60% and 32.8% for manure and residue retention respectively. These findings point to the need for agricultural institutions to continue prioritising and promoting the adoption of manure and residue retention. This can be achieved by developing strategies that promotes and encourages farmer to attend agribusiness trainings, as it encourages farmers to adopt CSA technologies, and also ensures that smallholder farmers progress from practising subsistence farming to participating in markets to earn a better income. Furthermore, improving farmers’ market participation should be given a greater focus by distributing market information to all farmers so that they could reach markets and sell their produce, thus raising income. Agricultural institutions should ensure that farmers receive adequate extension contact, as this helps in increasing farmers’ chances of adopting technologies that improve production. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, Environmental Economics and Policy |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cmpart:334765&r=env |
| By: | Paola D'Orazio (Chair of Economics, Faculty of Economics and Business Administration, Technische Universitaet Chemnitz); Jessica Reale (Institute for Macroeconomics, Faculty of Economics and Management, Ruhr-Universitaet Bochum); Anh Duy Pham (Department of Computer Science, Hochschule Bonn-Rhein-Sieg) |
| Abstract: | Although climate-induced liquidity risks can cause significant disruptions and instabilities in the financial sector, they are frequently overlooked in current debates and policy discussions. This paper proposes a macro-financial agent-based integrated assessment model to investigate the transmission channels of climate risks to financial instability and study the emergence of liquidity crises through interbank market dynamics. Our simulations show that the financial system could experience serious funding and market liquidity shortages due to climate-induced liquidity crises. Our investigation contributes to our understanding of the impact - and possible solutions - to climate-induced liquidity crises, besides the issue of asset stranding related to transition risks usually considered in the existing studies. |
| Keywords: | Agent-Based Modeling, Climate Risks, Prudential Regulation, Interbank Market, Liquidity Crises |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:tch:wpaper:cep059&r=env |
| By: | Jahanshahi, Babak; Johnston, Brian; McVicar, Duncan; McGovern, Mark; O'Reilly, Dermot; Rowland, Neil; Vlachos, Stavros |
| Abstract: | There are growing concerns about the impact of pollution on maternal and infant health. In the UK in 2018, 36% of local authorities had levels of PM2.5 where exposure exceeded the annual level recommended by the World Health Organisation at the time. Using a population database of births in Northern Ireland linked to localised geographic information on pollution in mothers' postcodes (zip codes) of residence during pregnancy, we examine whether prenatal exposure to PM2.5 is associated with a comprehensive range of birth outcomes. Overall, we find little evidence that particulate matter is related to worse infant outcomes once we implement a fixed effects approach that accounts for time-invariant factors common to mothers. While reducing pollution remains an urgent public health priority, our results imply that improvements in short-run levels of prenatal PM2.5 exposure are unlikely to be sufficient by themselves to reduce disparities in birth outcomes. |
| Keywords: | Pollution, PM2.5, infant outcomes, sibling fixed-effects, birth weight |
| JEL: | I10 J10 Q53 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:qmsrps:202204&r=env |
| By: | Nikolai Cook, Anthony Heyes, Nicholas Rivers (Wilfrid Laurier University) |
| Abstract: | We observe 1.8 million university course grades for 88, 959 adults who learn and complete examinations in a much less polluted environment than previously studied. We use a within-student identification strategy and find robust evidence of a negative and causal effect of exam-day outdoor air pollution on course performance. The effect of pollution persists beyond the same-day effect. Female students are more sensitive than males, and effects greatest when engaged in unfamiliar tasks. We explore two mar- gins of adaptation, one infrastructural, one behavioral. Working in a new building, and particularly if it is high quality (LEED Gold), provides significant mitigation. Relocating to a floor above ground-level also offers partial protection. |
| Keywords: | air pollution, cognitive function, particulate matter, productivity |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:wlu:lcerpa:bm0137&r=env |
| By: | Bernard Hoekman; Filippo Santi; Joseph Francois |
| Abstract: | Using a large dataset covering more than 180 countries and spanning several decades, we employ a SDID estimator to identify the extent to which trade agreements incorporating non-trade provisions (labor standards, environmental protection and civil and political rights) are associated with improvements in corresponding non-trade performance indicators. We distinguish between binding (enforceable) and non-binding provisions in trade agreements, and also control for the allocation of official development assistance targeting these three non-trade policy areas. Overall, the results suggest that efforts made to date to include non-trade provisions in trade agreements have not resulted in consistent desired (better) non-trade outcomes. |
| Keywords: | Non-trade policy objectives, trade agreements, trade and environment, trade and human rights, trade and labour rights |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2022/73&r=env |
| By: | Beesch, Simon; Malanowski, Norbert; Nisser, Annerose |
| Abstract: | Die Sustainable Development Goals der Vereinten Nationen verbinden ökologische, soziale und ökonomische Ziele, die auf dem Weg zu einer nachhaltigen Gesellschaft verfolgt werden. Zugleich wird Querschnittsinnovationen, z. B. basierend auf Künstlicher Intelligenz, ein enormes Transformationspotential attestiert. Das Working Paper stellt am Beispiel der Energie- und Luftfahrtbranche dar, welche Rolle Künstliche Intelligenz bei der Erreichung der Nachhaltigkeitsziele künftig spielen wird und welche Auswirkungen auf Beschäftigung und Arbeitswelten dabei zu erwarten sind. |
| Keywords: | KI, Nachhaltigkeit, Vereinte Nationen, UN |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hbsfof:283&r=env |
| By: | Milan Ščasný; Iva Zvěřinová; Damien Dussaux |
| Abstract: | There is ample evidence that exposure to various chemicals can increase the probability of children to be born with low or very low birth weight. Infants born with very low birth weight have a higher risk of suffering from neurosensory problems, issues related to behavioural and social competencies, and learning disabilities than infants born with normal birth weight. Authorities face challenges in regulating chemical substances through actions such as bans and prohibitions, because of the difficulty in explicitly considering the economic benefits and costs of such regulations. Moreover, existing Values of a Statistical Case (VSC) of very low birth weight are rare and cannot be directly applied to the cost benefit analysis of chemical management options for a wide range of countries.This paper is part of the series of large scale willingness to pay (WTP) studies resulting from the Surveys to elicit Willingness to pay to Avoid Chemicals related negative Health Effects (SWACHE) project that intends to improve the basis for doing cost benefit analyses of chemicals management options and environmental policies in general. The present paper details a stated preference survey estimating WTP to reduce the risk of very low birth weight, filling an important gap in the valuation literature and addressing a need for applied benefits analysis for chemicals regulation. The SWACHE infertility survey was fielded in 9 countries: Canada, the Czech Republic, Italy, Mexico, the Netherlands, Switzerland, Türkiye, the United Kingdom, and the United States. |
| Keywords: | chemicals regulation, economic valuation, health risk, health valuation, monetised benefits, morbidity valuation, non-market valuation, stated preferences, surveys, value of a statistical case, very low birth weight, willingness-to-pay |
| JEL: | D61 I18 J17 K32 L51 Q53 Q58 |
| Date: | 2023–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:217-en&r=env |
| By: | António Afonso; João Tovar Jalles; Ana Venâncio |
| Abstract: | We assess notably how do extreme events affect the public sector efficiency of decentralized governance. Hence, we empirically link the public sector efficiency scores, to tax revenue and spending decentralization. First, we compute government spending efficiency scores via data envelopment analysis. Second, relying on panel data and impulse response approaches, we estimate the effect of decentralization on public sector efficiency and how extreme natural disasters mediate this relationship. The sample covers 36 OECD countries between 2006 and 2019. Our results show that tax revenue decentralization decreases public sector efficiency, while spending decentralization and a regional authority index are positively related to public sector efficiency, both for local projections and panel analysis. For instance, efficiency rises by 10 percent following a spending decentralization shock (reaching over 20 percent after 4 years). Nevertheless, in cases of natural disasters, spending decentralization reduces public sector efficiency. Specifically, in the presence of most extreme natural disasters, the improvement in public sector efficiency after a spending decentralization shock is smaller than in their absence. Moreover, extreme natural disasters also deteriorate the negative effect of tax revenue decentralization on public sector efficiency. These results suggest that sub-national discretionary spending and tax revenue responses might be less fruitful when such extreme events occur. |
| Keywords: | public sector efficiency, data envelopment analysis, local projections, revenue decentralization, spending decentralization, natural disasters, OECD |
| JEL: | C14 C23 E62 H11 H50 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10424&r=env |
| By: | Gabor, Daniela |
| Abstract: | The emerging green capitalist state in the Global North is a derisking state. The derisking state enlists private capital into achieving public policy priorities by tinkering with risk/returns on private investments in sovereign bonds, currency, social infrastructure (schools, roads, hospitals and houses, care homes and prisons, water plants and natural parks) and most recently, green industries. The concern with the production of investibility forges a state-capital relationship where capital dominates. Yet the specific architecture of regulatory, fiscal and monetary derisking interventions varies across polities, is activated at different speeds and with different degrees of coordination, contingent on specific macrofinancial constraints and vulnerable to political strains. Both in the EU and the US, derisking has emerged as the method to organise green industrial upgrading in the Green Deal Industrial Plan and the US Inflation Reduction Act, successfully generating elite support for taboo-breaking autonomous strategic visions, in contrast with the state-directed approach in the CHIPS Act that disciplines private capital into national security priorities for semiconductor manufacturing. In the EU, 'whatever it takes' derisking does not easily translate from monetary to fiscal and industrial policy, because it requires Member States to agree on relaxing the distinctly European macrofinancial constraints around the provision of state-aid. The institutional response to these constraints, the European Sovereignty Fund, reinforces the derisking imperative. Furthermore, the limited scope for disciplining (carbon) capital raises serious doubts about the overall suitability of derisking for governing decarbonisation. |
| Date: | 2023–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:hpbj2&r=env |
| By: | Kai Gehring; Matteo Grigoletto |
| Abstract: | Understanding behavioral aspects of collective decision-making is an important challenge for eco-nomics, and narratives are a crucial group-based mechanism that influences human decision-making. This paper introduces the Character-Role Narrative Framework as a tool to systematically analyze narratives, and applies it to study US climate change policy on Twitter over the 2010-2021 period. We build on the idea of the so-called drama triangle that suggests, within the context of a topic, the essence of a narrative is captured by its characters in one of three essential roles: hero, villain, and victim. We show how this intuitive framework can be easily integrated into an empirical pipeline and scaled up to large text corpora using supervised machine learning. In our application to US climate change policy narratives, we find strong changes in the frequency of simple and complex character-role narratives over time. Using contagiousness, popularity, and sparking conversation as three distinct dimensions of virality, we show that narratives that are simple, feature human characters and emphasize villains tend to be more viral. Focusing on Donald Trump as an example of a populist leader, we demonstrate that populism is linked to a higher share of such simple, human, and villain-focused narratives. |
| Keywords: | narrative economics, text-as-data, machine learning, large language models, climate change, virality, populism |
| JEL: | C80 D72 H10 P16 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10429&r=env |
| By: | Berger-Schmitz, Zola; George, Douglas; Hindal, Cameron; Perkins, Richard; Travaille, Maria |
| Abstract: | The past few years have witnessed a proliferation of corporate net zero emission targets. Despite their growing prominence, little is known about firms’ motives for, strategies toward, and response pathways of, net zero. This paper seeks to narrow the current gap in understanding through an analysis of 30 interview responses. We find evidence that net zero targets have been propelled by a combination of institutional and competitive pressures. Yet firms’ response to these pressures, in terms of the substantivity of their commitments, and strategic positioning in relation to net zero, has varied significantly. While identifying a role for firm-specific factors, we also draw attention to the importance of sectors in understanding variations in corporate responses. A further contribution of the paper is to map out different temporal trajectories of strategic positioning and offer insights into the factors which lead firms to remain static or change their position toward net zero over time. We conclude by discussing the implications of these findings, both for future scholarship, as well as the contribution of net zero commitments to public climate goals. |
| Keywords: | climate mitigation; greenwashing; net zero; sector; strategy; time; Wiley deal |
| JEL: | L81 |
| Date: | 2023–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118646&r=env |
| By: | Bernard Hoekman; Petros Mavroidis; Sunayana Sasmal |
| Abstract: | By prohibiting subsidies that support illegal, unregulated or unreported fishing activities and contribute to unsustainable depletion of marine resources, the 2022 Agreement on Fisheries Subsidies (AFS) is the first WTO treaty to recognize that a specific trade policy instrument can have adverse consequences for the global commons. We assess the AFS as such, and through the lens of the broader challenge confronting WTO members in determining how to address subsidy spillovers and adapt trade policy rules to protect the global commons. While the AFS is a step forward for the WTO, definitions of what constitutes a subsidy and the approach taken to ensure transparency are those that have been part of the WTO since 1995 and have become cause for contestation and calls for reform. We suggest ways in which birth defects can be addressed in the course of implementing and expanding the coverage of the agreement. |
| Keywords: | Subsidies, environmental spillovers, transparency, international cooperation, WTO |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2022/76&r=env |
| By: | Kai Gehring; Paul Schaudt |
| Abstract: | We provide novel evidence of how an innovative market-based solution using remote-sensing technology can mitigate conflict. Droughts are a major driver of conflict in Africa, particularly between nomadic pastoralists and sedentary farmers, and climate change is predicted to intensify this problem. The Index-Based Livestock Insurance (IBLI) scheme piloted in Kenya provides automated, preemptive payouts to pastoralists affected by droughts. Combining plausibly exogenous variation in rainfall and the staggered roll-out of IBLI in Kenya over the 2001-2020 period, we find that IBLI strongly reduces drought-induced conflict. One key mechanism is that insured pastoralists travel less far away from their ancestral homelands, reducing conflicts over scarce resources in contested areas. This suggests that market-based solutions are a promising pathway to mitigate conflict beyond difficult institutional reforms and raises the question of how governments can support the adoption of such schemes for underprivileged groups through subsidies or other campaigns. |
| Keywords: | conflict, conflict resolution, climate change, droughts, pastoralism, insurance, ICT, resources |
| JEL: | D74 G22 G52 O13 Q34 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10423&r=env |
| By: | Geoffrey Barrows; Raphael Calel; Martin Jégard; Hélène Ollivier |
| Abstract: | This paper presents a method for estimating treatment effects of regulations when treated and control firms compete on the output market. We develop a GMM estimator that recovers reduced-form parameters consistent with a model of differentiated product markets with multi-plant firms, and use these estimates to evaluate counterfactual revenues and emissions. Our procedure recovers unbiased estimates of treatment effects in Monte Carlo experiments, while difference-in-differences estimators and other popular methods do not. In an application, we find that the European carbon market reduced emissions at regulated plants without undermining revenues of regulated firms, relative to an unregulated counterfactual. |
| Keywords: | regulation, spillovers, environment, energy, firms |
| JEL: | Q48 L10 L50 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10438&r=env |
| By: | Arnita Rishanty (Bank Indonesia); Maxensius Tri Sambodo (Badan Riset dan Inovasi Nasional); Retno Puspita K. Wicaksono (Bank Indonesia) |
| Abstract: | Transition risks include market and reputational risks, if materialized, can result in loss of markets. This study pictures the dynamics of potential export market movement and transition as the consumer preference for green products grows globally. We find that the export market for Indonesia’s superior commodities increased due to past global growth and past increase in global demand for particular products, while still lacking in real product competitiveness. Under the scenario that illustrates the green agenda only arise mostly from developed countries and still limited from developing countries, it is estimated that the export market transition towards the new balance would find an equilibrium. Subsequently, this study exploratively discusses undergoing efforts in the exporting industry to make a green transition. We elaborate opportunities and challenges to circular economy adoption for the exporting industry. It is suggested for Indonesia' s trade diplomacy to not only maintaining market position in traditional markets, but also in seizing non-traditional markets, including markets that reject Indonesian products by improving the competitiveness of Indonesia's export products via circular economy adoption. |
| Keywords: | Circular economy, Markov Model, competitiveness, green taxonomy |
| JEL: | C5 O1 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:idn:wpaper:wp142022&r=env |
| By: | Nelo Magalhães (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 - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In this paper we shed light and analyze a very broad consensus that exists among economists regarding green investments. Beyond some divergences, mainstream and heterodox economists present green investments as a necessary and first condition to solve the ecological crisis. The main part of our research focuses on the pitfalls of what we call the Green Investment Paradigm. We highlight the reductionist, normative, ahistorical and depoliticizing vision, a consequence of a problem-solving framework. We finally discuss what is outside of the box and highlight some of the debates that need to be invested to contribute to a serious assessment of the causes of ecological crises. |
| Abstract: | Dans ce travail, nous montrons que, par-delà leurs divergences (sur les montants et les outils à mettre en œuvre), un très large consensus existe chez les économistes pour présenter les investissements verts comme une condition nécessaire et première pour résoudre la crise écologique. Nous expliquons d'abord ce qui rend ce « paradigme des investissements verts » (PIV) si puissant. Nous mettons ensuite en évidence différents écueils : la vision réductionniste, normative, anhistorique et dépolitisante qui l'accompagne, laquelle est la conséquence d'un cadrage de type problem-solving qui est indifférent aux enseignements de l'histoire et des sciences sociales. Nous évoquons, enfin, ce qui est hors-cadre du PIV et concluons sur quelques débats à investir pour penser les crises écologiques. |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03676456&r=env |
| By: | Ramiro Losada, Albert Martínez Pastor |
| Abstract: | : En este trabajo se lleva a cabo una primera estimación sobre la cuentía de las emisiones de gases de efecto invernadero de los emisores de valores españoles. También se realiza un primer ejercicio sobre el grado de alineación de sus metas de reducción de emisiones con los objetivos marcados en el Acuerdo de París y en la Unión Europea. Además, se hace una evaluación de la incorporación de los retos derivados del cambio climático en la gestión empresarial, en particular, en el ambito del gobierno corporativo , así como de la identificación de riesgos y oportunidades y del establecimiento de metas concretas de disminución de emisiones. este documento forma parte de los trabajos que se han realizado para dar cumplimiemto al mandato establecido en la Ley 7/2021, de 20 de mayo, de cambio climático y transición ecológica. En su artículo 33 establece que el Banco de España, la CNMV y la Dirección General de Seguros deben elaborar, cada dos años, un informe coordinado en el seno de la Autoridad Macroprudencial Consejo de Estabilidad Financiera (AMCESFI), sobre el grado de alineamiento con las metas climáticas del Acuerdo de París y con la normativa de la Unión Europea y la evaluación del riesgo derivado del cambio climático sobre el sistema financiero. |
| Keywords: | Cambio climático, emisores de valores españoles, proceso de descarbonización, sector de la energía |
| JEL: | G11 G12 G17 G32 Q51 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:cnv:docutr:dt_82es&r=env |
| By: | Mogge, Lukas |
| Abstract: | This paper provides novel evidence on how risk exposure shapes the demand for index-based weather insurance. The focus is on Mongolia, where index insurance is offered as a commercially marketed product to pastoralists threatened by extreme weather events that cause high livestock mortality. Using a two-way fixed effect model and country-wide district-level data spanning a period of five years, this paper shows that the demand for index insurance increases in areas exposed to adverse weather conditions occurring in the months preceding the end of the insurance sales period. The effect is neither driven by the receipt of insurance payouts nor by observing peers receiving payouts. I argue that these results can be best explained by insurance purchasers adapting their risk perception in response to recent weather risks. The findings of this paper point to a problem for policymakers as a period of mild weather conditions could cause households to lose interest in purchasing insurance, thus leading to underinvestment in insurance coverage. |
| Keywords: | Extreme weather events, index insurance, livestock, risk, Mongolia |
| JEL: | O12 O13 O14 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:1018&r=env |
| By: | Leogrande, Angelo; Costantiello, Alberto |
| Abstract: | In this article we analyze the impact of Labor Force Partecipation Rate-LFPR in the context of the Environmental, Social and Governance-ESG model at world level. We use data from the ESG dataset of the World Bank for the period 2011-2020. We use Panel Data with Fixed Effects, Panel Data with Random Effects, Pooled OLS, Dynamic Panel. We find that the level of LFPR is positively associated among others to “Ratio of Female to Male Labor Force Participation Rate” and “Life Expectancy at Birth”, and negatively associated among others, to “Unemployment” and “Agricultural Land”. Furthermore, we have applied a clusterization with the k-Means algorithm optimized with the Silhouette coefficient, and we found the presence of three clusters. Finally, we confront eight different machine learning algorithms to predict the value of LFPR. We find that the best predictor is the Linear Regression. Linear Regression predicts an increase in LFPR equal to 0.42% on average for the analyzed countries. |
| Keywords: | Analysis of Collective Decision-Making, General, Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behaviour, Bureaucracy, Administrative Processes in Public Organizations, Corruption, Positive Analysis of Policy Formulation, Implementation. |
| JEL: | D7 D70 D72 D73 D78 |
| Date: | 2023–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:117500&r=env |
| By: | Barrows, Geoffrey; Calel, Raphael; Jégard, Martin; Ollivier, Hélène |
| Abstract: | This paper presents a method for estimating treatment effects of regulations when treated and control firms compete on the output market. We develop a GMM estimator that recovers reduced-form parameters consistent with a model of differentiated product markets with multi-plant firms, and use these estimates to evaluate counterfactual revenues and emissions. Our procedure recovers unbiased estimates of treatment effects in Monte Carlo experiments, while difference-in-differences estimators and other popular methods do not. In an application, we find that the European carbon market reduced emissions at regulated plants without undermining revenues of regulated firms, relative to an unregulated counterfactual. |
| Keywords: | regulation; spillovers; environment; energy; firms |
| JEL: | Q48 L10 L50 |
| Date: | 2023–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:119259&r=env |
| By: | Barrows, Geoffrey; Calel, Raphael; Jégard, Martin; Ollivier, Hélène |
| Abstract: | This paper presents a method for estimating treatment effects of regulations when treated and control firms compete on the output market. We develop a GMM estimator that recovers reduced-form parameters consistent with a model of differentiated product markets with multi-plant firms, and use these estimates to evaluate counterfactual revenues and emissions. Our procedure recovers unbiased estimates of treatment effects in Monte Carlo experiments, while difference-in-differences estimators and other popular methods do not. In an application, we find that the European carbon market reduced emissions at regulated plants without undermining revenues of regulated firms, relative to an unregulated counterfactual. |
| Keywords: | regulation; spillovers; environment; energy; firms |
| JEL: | Q48 L10 L50 |
| Date: | 2023–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:119261&r=env |
| By: | Julia M. Puaschunder (Columbia University, USA) |
| Abstract: | Management Science offers the most extensive account of leadership theory and practice. Business Schools around the world teach and educate leadership skills and practical advice on how to be a successful leader. In the wealth of theoretical knowledge and practical insights on leadership, to this day, however, our understanding of followership is limited despite the facts that not everyone wants to lead on a constant basis and it is technically impossible for everyone to lead all time long. In fact, most of our lives we spend being led and following the crowd. This article addresses followership in the finance domain. The importance of attention to followership in finance is underlined by the personal gain opportunities through strategic finance followership. Guidelines on how to enhance wealth through wise followership in the finance sector are provided. The article also gives practical examples of finance followership in the global governance domain of contemporary climate change redistribution strategies. The paper ends with a future prospect and research avenues to explore followership in finance, management, business and governance research and teaching. |
| Keywords: | Corporate Social Responsibility, Behavioral Economics, Behavioral Insights, Economics, Environmental financialization, Finance, Followership |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0249&r=env |
| By: | Attila Havas (Institute of Economics, Centre for Economic and Regional Studies, AIT Austrian Institute of Technology, Center for Innovation Systems and Policy); Doris Schartinger (AIT Austrian Institute of Technology, Center for Innovation Systems and Policy); K. Matthias Weber (AIT Austrian Institute of Technology, Center for Innovation Systems and Policy, Université Gustave Eiffel, LISIS) |
| Abstract: | Goal-oriented transformative change processes – that is, system-transforming processes that are guided by the ambition to resolve current or expected future societal challenges of various kinds – can only start once possible goals are considered by key stakeholders and the relevant actors are committed to act. Hence, there is a need for widening the scope of the current, partial conceptual models to consider the co-evolutionary interactions between technology, economy, and society to understand these changes. This claim is based on our review of Innovation Studies, Social Innovation research, and Sustainability Transitions research. The paper discusses the key conceptual elements of each strand; offers a definition of goal-oriented transformative change and building blocks for a new, integrative framework to analyse it; proposes directions for future research and draw tentative governance and policy implications. |
| Keywords: | Innovation studies; Social innovation research; Sustainability transitions research; Focussed literature review; Goal-oriented transformative change; A new, integrative analytical framework |
| JEL: | B52 H12 L31 O30 O31 O33 O35 O38 O44 P11 Q01 Q50 Q54 Q55 Q58 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:2227&r=env |
| By: | To, Jenny |
| Abstract: | In recent years, global production of plastics has surged and is expected to increase further over the following years, with over a quarter being attributed to plastic packaging. Plastic packaging poses environmental risks due to the fossil fuels consumed in its production and the impact on eco-systems due to its inappropriate disposal. A large share of mismanaged plastic waste can be attributed to a few developing and emerging countries (DECs) in Asia. Their expected income and population growth, as well as associated increase in consumption and urbanisation, is expected to further strain inadequate waste management systems. In response, young ventures offering circular business models in packaging have emerged to tackle plastic packaging pollution. These ventures are embedded in an entrepreneurial ecosystem in which policies are, among others, determining enablers, and policy-makers have a key role in setting optimal framework conditions for circular business models in packaging to succeed. At the same time, policy agendas that address resource efficiency and the circular economy are on the rise in multiple DECs. For this reason, this paper addresses the question of the extent to which existing policies are supporting and enabling circular business models. This paper first discusses opportunities, risks, and challenges of existing circular business models in packaging in terms of waste hierarchy levels - reducing and dematerialising, reusing and refilling, replacing, and recycling - before examining the entrepreneurial ecosystems in which they operate. With a focus on policy as an enabler for circular business models in packaging, a holistic overview of possible policies in the circular packaging context is provided. Against this conceptual background, India is examined as a case-study. In recent years, multiple Indian start-ups have emerged, offering reusable packaging solutions or bio-based packaging alternatives, while other ventures seek to improve waste management and recycling. India's previously introduced policies, including the Plastic Waste Management Rules, Swacch Bharat Mission, extended producer responsibility and a ban on single-use plastic, are the first stepping stones towards an enabling ecosystem for circular business models in packaging. However, this paper points out further opportunities - so far, India's key policies have been addressing the downstream on the macro level. This study showed that macro-level policies need further enforcement and should be complemented by upstream policies. Meanwhile, meso-level and micro-level policies have been rather neglected. Policy-makers and development cooperation are encouraged to take action now, given the limited window of opportunity to establish a supporting framework for circular economies in development policy. |
| Keywords: | circular economy, plastic packaging, circular business models, India, plastic pollution |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:diedps:82023&r=env |
| By: | Onil Banerjee (RMGEO Consultants Inc); Martín Cicowiez (CEDLAS-IIE-FCE-UNLP); Juan Manuel Torres-Rojo (Universidad Iberoamericana- Centro Transdisciplinar Universitario para la Sustentabilidad); Renato Vargas (CHW Research); Mónica LopezConlon (Ecosystem Services Economics Unit - United Nations Environment Programme); Jacob Salcone (Ecosystem Services Economics Unit - United Nations Environment Programme); Bram Edens (Statistics Division, DESA); Elsa Marcela Begne De Larrea (Statistics Division, DESA); César Rodríguez-Ortega (Secretaría de Medio Ambiente y Recurso Naturales); José Eduardo de la Torre-Bárcena (Instituto Nacional de Estadística y Geografía (INEGI-México)); Vicente Díaz-Núñez (Instituto Nacional de Estadística y Geografía (INEGI-México)); Francisco Guillen-Martin (Instituto Nacional de Estadística y Geografía (INEGI-México)) |
| Abstract: | En este estudio se investigan los impactos, tanto económicos como aquellos sobre el capital natural y servicios ecosistémicos, de tres programas de conservación en México. Más precisamente, se analizan el programa de pago por servicios ambientales, el programa para reducir las emisiones en el sector agrícola, silvicultura y otros usos de la tierra, y el programa de unidades de manejo para la conservación de la vida silvestre. La estimación de los beneficios de estos programas es importante para justificar su financiamiento, en un contexto en el cual los recursos públicos son cada vez más escasos. Para tal fin, se aplica el Modelo Económico-Ambiental Integrado (IEEM por sus siglas en inglés) vinculado con la modelación espacial de alta resolución de cambios en uso y cobertura de suelos y servicios ecosistémicos (IEEM+ESM). Los resultados muestran que el impacto combinado de estos tres programas sobre el producto interno bruto acumulado hasta el año 2035 es de alrededor de US$856.9 millones de dólares, mientras que el impacto sobre la riqueza es aproximadamente US$492.3 millones de dólares. En conjunto, los tres programas considerados reducen la pobreza en 1, 800 individuos. IEEM+ESM permite cuantificar, además de los efectos puramente económicos, el aporte que realizan distintos servicios ecosistémicos como, por ejemplo, cultura y recreación, de abastecimiento de agua y de regulación. A modo de ejemplo, cuando se consideran los servicios ecosistémicos de regulación, el impacto conjunto de los tres programas sobre el producto interno bruto es 1.34 veces más elevado. Los resultados presentados en este estudio pueden ser de utilidad para la obtención de recursos que permitan la continuidad e, incluso, la ampliación de estos programas, considerando que contribuyen a la conservación de la biodiversidad y el capital natural, así como también al bienestar de la sociedad mexicana. |
| JEL: | O1 I31 I24 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:dls:wpaper:0315&r=env |
| By: | rAMDHANI, Ahsan Nur |
| Abstract: | Perubahan era industri baru yang menuntut peran industri dalam menjaga lingkungan dengan mengurangi limbah dan polusi, menyebabkan timbulnya green supply chain Management dalam penerapan strategi rantai pasok. Green supply chain management mengharuskan kegiatan-kegiatan industri untuk meningkatkan keseimbangan antara kinerja marketing dengan isu lingkungan yang melahirkan isu baru seperti penghematan penggunaan energi, dan pengurangan polusi dalam usaha peningkatan strategi kompetitif. Perusahaan merasakan perlunya memperbaiki jaringan kerja atau meningkatkan supply chain untuk reduksi limbah dan efisiensi operasi termasuk pada delivery produk dan jasa. Berdasarkan hal tersebut, maka tujuan dari green supply chain adalah untuk mempertimbangkan pengaruh lingkungan dari semua produk dan proses, termasuk pengaruh lingkungan yang berasal dari barang/produk dan proses mulai dari bahan baku sampai dengan produk jadi, dan final disposal produk tersebut. |
| Date: | 2023–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:s5nb2&r=env |
| By: | KHOHARI, AHMAD |
| Abstract: | Perubahan era industri baru yang menuntut peran industri dalam menjaga lingkungan dengan mengurangi limbah dan polusi, menyebabkan timbulnya green supply chain Management dalam penerapan strategi rantai pasok. Green supply chain management mengharuskan kegiatan-kegiatan industri untuk meningkatkan keseimbangan antara kinerja marketing dengan isu lingkungan yang melahirkan isu baru seperti penghematan penggunaan energi, dan pengurangan polusi dalam usaha peningkatan strategi kompetitif. Perusahaan merasakan perlunya memperbaiki jaringan kerja atau meningkatkan supply chain untuk reduksi limbah dan efisiensi operasi termasuk pada delivery produk dan jasa. Berdasarkan hal tersebut, maka tujuan dari green supply chain adalah untuk mempertimbangkan pengaruh lingkungan dari semua produk dan proses, termasuk pengaruh lingkungan yang berasal dari barang/produk dan proses mulai dari bahan baku sampai dengan produk jadi, dan final disposal produk tersebut. |
| Date: | 2023–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:xjuvh&r=env |
| By: | Heinz Welsch (University of Oldenburg, Department of Economics) |
| Abstract: | The literature on subjective well-being (SWB) and the environment has found robust evidence of positive net marginal SWB from pro-environmental behavior (PEB), that is, positive marginal SWB net of the associated costs in terms of money, time and effort (Finding 1). Accordingly, people could increase their SWB (utility) by behaving more pro-environmentally. In addition, net marginal SWB was found to be larger with respect to more costly than with respect to less costly PEBs (Finding 2). Finding 1 is at odds with rational choice theory’s demand that marginal utility be equalized with marginal costs, that is, net marginal utility be zero. The finding can be (and has been) explained by decision error, that is, a failure in forecasting the well-being consequences of an act of choice. This paper uses the rational-choice decision-error framework to show that if (i) observed levels of PEB are the result of rational choice and (ii) there is positive net marginal SWB at observed PEB levels due to decision error, then net marginal SWB from a PEB is increasing in its marginal costs. The ability of the rational-choice decision error framework to explain not only Finding 1 but Finding 2 provides empirical support for that framework. |
| Keywords: | pro-environmental behavior; subjective well-being; decision error; rational choice; affective forecasting |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:441&r=env |
| By: | Agrawal, Ashwini; Kim, Daniel |
| Abstract: | We show that the collapse of the municipal bond insurance industry plays an important, but previously overlooked, role in driving regional variation in U.S. drinking water pollution. Public water infrastructure has traditionally been financed using municipal debt partly backed by a small number of monoline insurers. Starting in the 1990's, some - but not all - of these insurers began insuring structured financial products unrelated to water infrastructure. After these products crashed in value in 2007, several bond insurers ceased to insure new debt issues. We show that municipalities that were previously more reliant on relationships with adversely affected insurers subsequently face higher borrowing costs. These municipalities then reduce their borrowing and scale back investments in water infrastructure, leading to increased water pollution. The data suggest that market failures in the municipal bond insurance industry explain 32% of the relative rise in U.S. drinking water pollution since 2007. |
| JEL: | G22 H41 H74 Q53 |
| Date: | 2021–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118888&r=env |
| By: | Poulad Moradi; Joachim Arts; Josu\'e Vel\'azquez-Mart\'inez |
| Abstract: | We study the effect of using high-resolution elevation data on the selection of the most fuel-efficient (greenest) path for different trucks in various urban environments. We adapt a variant of the Comprehensive Modal Emission Model (CMEM) to show that the optimal speed and the greenest path are slope dependent (dynamic). When there are no elevation changes in a road network, the most fuel-efficient path is the shortest path with a constant (static) optimal speed throughout. However, if the network is not flat, then the shortest path is not necessarily the greenest path, and the optimal driving speed is dynamic. We prove that the greenest path converges to an asymptotic greenest path as the payload approaches infinity and that this limiting path is attained for a finite load. In a set of extensive numerical experiments, we benchmark the CO2 emissions reduction of our dynamic speed and the greenest path policies against policies that ignore elevation data. We use the geo-spatial data of 25 major cities across 6 continents, such as Los Angeles, Mexico City, Johannesburg, Athens, Ankara, and Canberra. Our results show that, on average, traversing the greenest path with a dynamic optimal speed policy can reduce the CO2 emissions by 1.19% to 10.15% depending on the city and truck type for a moderate payload. They also demonstrate that the average CO2 reduction of the optimal dynamic speed policy is between 2% to 4% for most of the cities, regardless of the truck type. We confirm that disregarding elevation data yields sub-optimal paths that are significantly less CO2 efficient than the greenest paths. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2306.01687&r=env |
| By: | Dodlova, Marina (University of Passau); Carias, Michelle Escobar (Monash University); Grimm, Michael (University of Passau) |
| Abstract: | We assess the impact of the 2010 Haiti earthquake on children’s nutrition and education. We combine geo-coded shaking intensity data with four waves of the Haiti Demographic Health Survey, two administered before and two after the earthquake. We find lasting negative impacts of the earthquake on children's stunting and wasting as well as on school enrolment and attendance. A one standard deviation increase in shaking intensity raises infant stunting by 0.08 standard deviations and wasting by 0.04 standard deviations. Our estimates account for the millions in aid funds allocated by the World Bank to overcome the earthquake's aftermath. This aid mitigated but could not fully prevent the adverse effects on children's health and education. The results are robust to alternative specifications and different measures of exposure to the earthquake. Our results highlight the need for aid in poor areas affected by natural disasters to prevent infant malnutrition and poor education. Reduced children's health and education will have lasting private and social costs, which could easily exceed the necessary costs to counter these effects. |
| Keywords: | natural disasters, earthquake, nutrition, education, school attendance, Haiti |
| JEL: | I15 I25 Q54 O10 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16195&r=env |
| By: | Khuc, Quy Van; Dang, Thao; Nguyen, An Thinh; Nguyen, Mai Huong |
| Abstract: | Urban ecosystems are an integral part of our lives. The interaction between biodiversity-related concepts and humans' urban environment is becoming increasingly important as it not only enhance the quality of life and education of urban residents but also aid in the preservation and conservation of biodiversity... |
| Date: | 2023–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:wzdg7&r=env |
| By: | Oehmke, Martin; Opp, Marcus |
| Abstract: | We characterize necessary conditions for socially responsible investors to impact firm behavior in a setting in which firm production generates social costs and is subject to financing constraints. Impact requires a broad mandate, in that socially responsible investors need to internalize social costs irrespective of whether they are investors in a given firm. Impact is optimally achieved by enabling a scale increase for clean production. Socially responsible and financial investors are complementary: jointly they can achieve higher surplus than either investor type alone. When socially responsible capital is scarce, it should be allocated based on a social profitability index (SPI). This micro-founded ESG metric captures not only a firm's social status quo but also the counterfactual social costs produced in the absence of socially responsible investors. |
| Keywords: | socially responsible investing; ESG; SPI; capital allocation; sustainable investment; social ratings |
| JEL: | G31 G23 |
| Date: | 2021–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118891&r=env |
| By: | Anjara Lalaina Jocelyn Rakotoarisoa (ACRODMaths) |
| Abstract: | La question d'environnement et d'économie est un sujet qui, actuellement, figure parmi les centres des discussions les plus posées de notre ère. Dans les visions économiques du jadis, allant des mercantilistes jusqu'aux économistes modernes, la question environnementale n'avait pas encore eu cette place prépondérante. Toutefois, cette dimension a prôné sa place suite à la prise de conscience concernant les enjeux environnementaux. Le présent article tente de trouver un terrain conceptuel qui permettrait de mettre en évidence et d'une manière dynamique la relation entre la production et l'émission polluante qui, pragmatiquement, nuit au système environnemental. Les notions de fiscalité verte et de subventionnement vert, probablement des concepts nouveaux, sont au centre de cet exposé pour apporter des pistes de réflexion et des solutions pour l'arbitrage entre la production et la pollution. |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04093938&r=env |
| By: | Jimenez, Valeria |
| Abstract: | Although traditionally post-Keynesians tackle unemployment issues through the stimulation of aggregate demand, boosting demand indefinitely is no longer possible if we consider environmental constraints. In fact, according to several ecological economists, meeting the environmental targets of the Paris Agreement will involve a halt in economic growth or even degrowth. Within this context, important interventions in the labour market will be necessary to avoid rising unemployment. In this paper, we make use of a Kaleckian autonomous demand-led growth model to analyse the dynamic stability of the labour market in a zero-growth economy (ZGE) with productivity growth. In the model, net investment responds to deviations of capacity utilization from target utilization in the short run while in the long run it adjusts to firms' sales growth expectations determined by the growth rate in autonomous government expenditures. Hence, in the long run, the growth rate of the system is determined by the autonomous growth rate of government expenditures - set equal to zero - and the rate of capacity utilization converges towards the normal rate of capacity utilization. We examine the conditions under which the long-run convergence leads to a stable employment rate. In the basic model, we consider the feedback effects between productivity, distribution, and employment. However, the long-run conditions necessary for a stable employment rate are not met, suggesting, as already pointed out by ecological economists and several post-Keynesians, that policy interventions might be necessary for the stability of the labour market in a ZGE. Therefore, we consider whether the government can stabilize the labour market through a policy of working time reduction (WTR). Our findings suggest that a stable employment rate is possible in our model as long as the negative effect that labour productivity growth has on the employment rate is compensated for by the reduction in working hours. |
| Keywords: | zero-growth economies, socio-ecological transition, labour market stability, working time reduction |
| JEL: | E24 Q01 O44 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:2112023&r=env |
| By: | Ricardo Crisósotomo |
| Abstract: | : Este trabajo propone una metodología global para medir el impacto de la transición ecológica en las carteras de inversión. El análisis se enriquece incluyendo datos geofráficos y sectoriales, información individual de empresas y medidas de riesgo financiero para cada instrumento de la cartera. Se obtiene que los fondos de inversión sufren una pérdida moderada del 5, 7 % en un escenario de alto riesgo de transición. Sin embargo, la distribución del riesgo está significativamente sesgada a la izquierda, con el 1 % de los peores fondos experimentando una pérdida media del 21, 3 %. En cuanto a clases de activos, la renta variable es la que peor se comporta (-12, 7 %), seguida de los bonos corporativos (-5, 6 %) y los bonos del Estado (-4, 8 %). La pérdida obtenida para cada instrumento financiero se calcula teniendo en cuenta la huella de carbono de cada contraparte y la calificación crediticia, duración, convexidad y volatilidad de las exposiciones individuales. También se obtiene que los fondos sostenibles están menos expuestos al riesgo de transición y obtienen mejores resultados que el sector de fondos en la transición climática, respaldando su elección como inversiones verdes. |
| Keywords: | Cambio climático, transición a una economía baja en carbono, fondos de inversión, escenarios NGFS |
| JEL: | G11 G12 G17 G32 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:cnv:docutr:dt_81es&r=env |
| By: | Sefa Awaworyi Churchill; Yeti Nisha Madhoo; Shyam Nath |
| Abstract: | We examine if the financial performance of firms in India depends on the level of ethnic diversity in the state or district in which they operate. Thus, using data on 1, 199 listed firms in the materials, industrial and infirmation technology sectors in India, we examine the impact of ethnic diversity on various measures of firm financial performance. Based on indices of fractionalization calculated for 15 states and 74 districts in which these firms operate, we find evidence of negative effects of ethnic diversity on firm performance. These results are robust to endogeneity and alternative ways of measuring diversity. |
| Keywords: | Environmental governance; fiscal decentralization; atmospheric pollution; spillover effects; non-point source pollution; India |
| JEL: | J15 L25 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pas:asarcc:2022-01&r=env |
| By: | Quinn, Martin; Feeney, Orla |
| Abstract: | Successive Irish government policies followed a neoliberal approach and domestic waste services have been transformed to such an extent that in early 2021, one company was valued at over €1 billion. The last three decades has seen domestic waste services in the Ireland evolve from a public service to one delivered entirely by the private sector. The journey to this system has had many policy twists and the outcome of the journey is a domestic waste market, with some very large and profitable companies. This paper examines policy changes over time, outlining how Ireland's domestic waste services became financialized. |
| Keywords: | domestic waste policy, Ireland, financialization |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:qmsrps:271266&r=env |
| By: | Frondel, Manuel; Eßer, Jana; Sommer, Stephan |
| Abstract: | Die jüngste Verschärfung der nationalen Klimaschutzziele erfordert die Ergreifung zusätzlicher umweltund klimapolitischer Maßnahmen sowie eventuelle Nachbesserungen bei den bestehenden Maßnahmen, etwa einen beschleunigten Ausbau der erneuerbaren Energien. Dies führt unweigerlich zu höheren Lasten für die Bürgerinnen und Bürger. Damit einher gehen zahlreiche Fragen, etwa zu deren Präferenzen und Gerechtigkeitsvorstellungen bezüglich dieser Maßnahmen. Zur Beantwortung dieser Fragen wurde im Juni 2021 eine Erhebung unter rund 8.000 Mitgliedern des forsa-Haushaltspanels durchgeführt. Die Erhebung beinhaltete ein randomisiertes Kontrollexperiment, um herauszufinden, welche von zwei Finanzierungsalternativen die Befragten beim Ausbau der erneuerbaren Energien bevorzugen: die Finanzierung über die Stromrechnung, wie es über zwei Jahrzehnte der Fall war, oder durch den Staat. Das zentrale Ergebnis bezüglich der beiden zur Wahl gestellten Finanzierungsalternativen lautet: Die große Mehrheit der Befragten votiert dafür, dass der Ausbau der erneuerbaren Energien aus Steuermitteln des Staates finanziert wird. So halten 69, 7% der Befragten der Kontrollgruppe eine Finanzierung durch den Staat für die gerechtere Alternative. Mit der Abschaffung der EEG-Umlage zum 1. Juli 2022 und der gänzlichen Finanzierung der Kosten der Förderung der Erneuerbaren aus Steuermitteln hat die Politik den Präferenzen der Mehrheit der Befragten entsprochen. Allerdings konterkarieren die gerade sehr stark gestiegenen Stromerzeugungskosten die dämpfenden Effekte der Abschaffung der EEG-Umlage. Dadurch steigen die Strompreise für die Verbraucher aktuell massiv an, um 50 % und mehr gegenüber dem Jahr 2021. Deshalb sollte die Politik weitere Maßnahmen ergreifen, um die privaten Haushalte beim Strompreis substanziell zu entlasten, nicht zuletzt durch die Senkung der Stromsteuer auf den EU-Mindestsatz. Andernfalls könnten die stark gestiegenen Strompreise in Kombination mit den mit der Zeit wachsenden Belastungen durch die neu eingeführte CO2-Bepreisung fossiler Brenn- und Kraftstoffe eine hohe soziale Sprengkraft entfalten. |
| Keywords: | Randomisiertes Kontrollexperiment, Panelerhebung |
| JEL: | D12 C25 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwimat:149&r=env |
| By: | Gencer, Ebru |
| Abstract: | Im Jahr 2015 wurde das Sendai Rahmenwerk für Katastrophenvorsorge (Sendai Framework for Disaster Risk Reduction, SFDRR oder Sendai Rahmenwerk) auf der dritten Weltkonferenz der Vereinten Nationen (UN) zur Reduzierung von Katastrophenrisiken (Disaster Risk Reduction, DRR) im japanischen Sendai verabschiedet und anschließend von der UN-Generalversammlung gebilligt. Im Sendai Rahmenwerk werden sieben Zielsetzungen und vier Handlungsprioritäten festgelegt, um das Oberziel zu erreichen: "Die deutliche Verringerung des Katastrophenrisikos und der Verluste an Menschenleben, Existenzgrundlagen und Gesundheit sowie an wirtschaftlichen, physischen, sozialen, kulturellen und ökologischen Vermögenswerten von Menschen, Unternehmen, Gemeinwesen und Ländern" (UN 2015). |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:sefggs:12023&r=env |
| By: | Bruno Boidin (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Les politiques dites d'aide au développement s'inscrivent désormais dans un nouveau régime climatique. Pourtant, qu'elles soient impulsées par les acteurs locaux ou internationaux, elles n'ont pas encore pris la mesure de ce nouveau contexte. Certes, des organisations d'aide ont intégré petit à petit des critères d'impact environnemental ou climatique dans leurs décisions de financement ou d'intervention (par exemple l'AFD en France). Cependant, ce mouvement est encore timide alors que l'urgence climatique est bien réelle. |
| Date: | 2023–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04094559&r=env |
| By: | Fitch-Polse, Dillon T. PhD; Chen, Chen PhD; Wong, Stephen D. PhD |
| Abstract: | Bicycles and other forms of micromobility have been anecdotally used in past disasters to help save lives and improve community recovery. However, research and practice are scarce on this resilient transportation strategy, which limits its usefulness and possible benefits. To fill this gap, our paper investigates the potential role bicycles and micromobility in facilitating (or limiting) disaster response and recovery. Given the lack of exploration on the topic, we convened an online workshop where we conducted brainstorming and focus group discussions with disaster experts from various government agencies, not-for-profit organizations, academia, and policy groups. We present a synthesis of that discussion, along with a review of the existing literature. We conclude there is strong potential for bicycles and micromobility for different disaster phases, hazard types, and groups of people. However, multiple barriers exist related to implementation and safety, suggesting a need for future research and policy in the transportation and emergency management fields and practices. |
| Keywords: | Engineering |
| Date: | 2023–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt3ks9k4pr&r=env |
| By: | Sylvie Ferrari (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Félix Garnier (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Alain Alcouffe (LIRHE - Laboratoire Interdisciplinaire de recherche sur les Ressources Humaines et l'Emploi - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - CNRS - Centre National de la Recherche Scientifique); Cécile Batisse (UCA - Université Clermont Auvergne, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne) |
| Abstract: | Si le passage à l'Anthropocène révèle la capacité de l'homme à transformer l'ensemble du système terrestre, les théories économiques ont de tout temps, minimisé ce changement d'époque géologique, préférant focaliser leur attention sur la dynamique du système capitaliste ou la sacro-sainte croissance économique. Si des limites à la croissance sont bien mentionnées, elles restent cantonnées à des contraintes socio-techniques (pénurie de main d'œuvre, coût élevé du capital, prix des matières premières, faiblesse des investissements, absence de prise de risques des entrepreneurs…). Tout laisse à penser que les sociétés, par essence économiques, se seraient libérées des limites biophysiques. L'Anthropocène montre au contraire que ces limites imposent un réencastrement de l'économie dans l'environnement et dans le social. La question du temps, souvent réduite au court terme et à des questions de statique ou de dynamique dans la théorie économique, impose de penser l'avenir, sans pour autant reposer sur une extrapolation du passé. Dès lors, les théories économiques doivent proposer un corpus d'hypothèses et de concepts susceptibles de forger de nouveaux paradigmes, plus à même de se représenter les futurs possibles |
| Keywords: | Anthropocène, Capitalisme, Croissance, Décroissance, Dynamique des systèmes, Limites, Futurs |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04099238&r=env |
| By: | Kraemer-Eis, Helmut; Botsari, Antonia; Gvetadze, Salome; Lang, Frank; Torfs, Wouter |
| Abstract: | This working paper provides an overview of the main markets relevant to the EIF, thereby documenting the impact of the current inflationary environment, the war in Ukraine and the aftermath of the pandemic on the SME financing environment. The publication first discusses the general market environment and then covers the markets for SME equity and debt products. In addition, it focuses on a number of thematic policy areas that are of particular interest to the EIF, such as Inclusive Finance, Fintech and Green finance & investment. |
| Keywords: | SMEs, SME financing, private equity, bank guarantee, microfinance, financial technology, sustainable investment, Europe |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eifwps:202284&r=env |
| By: | de Haan Montes, Gabrielle; Gvetadze, Salome; Lottner, Felina; Milander, Henry; Pan, Xianxing; Tian, Chloe; Torfs, Wouter |
| Abstract: | This working paper contributes to the understanding of how Greentech ecosystems develop by considering the impact of EU countries' local financial market environment on the prevalence of Greentech investment deal activity. The empirical analysis demonstrates that the occurrence of IPOs in a country incentivises Greentech investors and entrepreneurs, and stimulates deal activity in earlier stages of the market. This suggests an important role for policy intervention at EU-level, as EU policymakers are best positioned to bridge the scale-up gap through the use of innovative financing instruments and thereby support the development of a European Greentech ecosystem. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eifwps:202286&r=env |
| By: | Naudé, Wim (RWTH Aachen University) |
| Abstract: | The Degrowth Movement calls for "degrowth" – a reduction in GDP in advanced economies – to avert an ecological crisis. This paper argues that the Degrowth Movement misses that the West is already in a state resembling degrowth – a Great Stagnation. This state of degrowth and its correlates, declining entrepreneurship, innovation, science, and research productivity, are described. It is concluded that the notion that a degrowth economy can generate the technological progress necessary to tackle ecological and social crises and challenges is far-fetched. Moreover, as economic stagnation has taught, the consequence of degrowth is a zero-sum society: redistribution, instead of production, becomes the basis of the economy. In such a context, more degrowth will only make problems worse. This paper concludes by discussing scenarios for moving beyond Degrowth. Whether collapse or unimaginable riches through breakthrough technological progress will be the future, these scenarios suggest that there is more to humanity's future than envisaged by the Degrowth Movement. |
| Keywords: | economic growth, Degrowth, ecology, sustainable development, collapse |
| JEL: | O40 O33 D01 D64 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16191&r=env |
| By: | Henrik Horn |
| Abstract: | State-to-state investment protection treaties, and the Energy Charter Treaty in particular, are alleged to dissuade host countries from regulating foreign-owned investment with adverse climate impact. This paper examines implications of treaty reforms that have been proposed as remedies for such regulatory chill. It finds that an increased carve-out, and reduced compensation in case of regulation, can address the stranded investment problem, but might not be accepted by both parties to the agreement. Disallowing investor-state dispute settlement (ISDS) solves the chill less effectively, but is more acceptable to both parties. Shortening of a sunset period applicable to unilateral withdrawal will tend to worsen the problem |
| Keywords: | Financial support from Torsten Söderberg Foundation is gratefully acknowledged |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2023/12&r=env |
| By: | Ashfield, A.; Jack, C.J.; Wallace, M. |
| Abstract: | Dairy farm businesses continue to face many challenges and in future years will have to make decisions that are critical in terms of the farming systems they choose to operate alongside giving consideration to adapting systems in order to maintain profitable and sustainable businesses going forward. In this context, there is a need to develop a model to explore a range of systems from both an industry and policy perspective. Farmers will require advice and guidance in relation to which systems or adaptations to systems will be best under a range of factors. This study developed a whole farm dairy model for Northern Ireland. This paper provides an overview of the model developed and an application looking at three different dairy systems and the effect of price changes on them. |
| Keywords: | International Development, Industrial Organization |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334561&r=env |