|
on Resource Economics |
|
Issue of 2024‒05‒13
three papers chosen by |
| By: | Sarah Nandnaba (Department of Economics, Ecole normale superieure (ENS) Paris-Saclay, 91190 Gif-sur-Yvette, France.); Abebe Hailemariam (Bankwest Curtin Economics Centre, Faculty of Business and law, Curtin University Perth, 6102, Australia); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Xin Sheng (Lord Ashcroft International Business School, Anglia Ruskin University, Chelmsford, United Kingdom.) |
| Abstract: | The paper empirically examines the role of Greenhouse Gases (GHGs) emissions on the oil consumption-growth nexus of sixteen OECD countries. Using a nonlinear local projection approach and a long historical dataset from 1890 to 2022, we find that the impact of oil consumption on economic growth is conditional on the categorization of the countries based on the level of GHGs emissions. More specifically, we find that economies under the high-emission category face a slowdown in growth, while those in low-emission group can benefit from a positive shock in oil consumption, especially in the post World War II era. The results have important policy implications for sustainable growth. |
| Keywords: | Oil consumption, economic growth, sustainability, climate change, greenhouse gases emissions, nonlinear local projection |
| JEL: | Q43 Q53 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202417&r=res |
| By: | Rodolphe Desbordes; Markus Eberhardt |
| Abstract: | The damage function used to assess the economic impact of secular changes in temperature is one of the most speculative components of integrated assessment models of climate change. Existing work informing this debate is based on pooled empirical models incorporating limited non-linearity and giving little regard to dynamics. We use aggregate and agricultural data for 151 countries over the past six decades to estimate dynamic heterogeneous models which (a) allow the weather-output nexus to differ freely across countries, (b) help distinguish short-run from long-run effects, and (c) account for unobserved time-varying heterogeneity. Overall, we find that, in low-income or high-temperature countries, a permanent 1?C rise in temperature is associated with a fall in income per capita of about 1.3% in the short-run and 8.5% in the long run. These long-run effects are substantially larger than those commonly suggested in the literature. |
| Keywords: | temperature, weather, climate change, economic development, economic growth |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:2024-01&r=res |
| By: | Feriga, Moustafa (World Bank); Lozano Gracia, Nancy (World Bank); Serneels, Pieter (University of East Anglia) |
| Abstract: | This paper identifies five areas where climate change may impact work and draws lessons for developing countries by reviewing the evidence. Firstly, demand for labor is unevenly affected, with agriculture, heat-exposed manufacturing, and the brown energy sector experiencing downturns, while other sectors may see a rise, resulting in an uncertain overall impact. Secondly, climate change impacts labor supply through absenteeism, shirking, and altering work-time patterns, depending on the activity and sector. Thirdly, productivity may decline, especially in heat-exposed industries, primarily due to health reasons. Fourthly, heightened earnings variability likely increases vulnerability among the self-employed. Fifthly, climate change can influence labor allocation and catalyze sectoral reallocation. Higher temperatures are also linked to increased migration. But caution is needed in interpreting these findings, as studies across these topics predominantly use fixed effect estimation and concentrate on short-term impacts, neglecting adaptation. Emerging research on adaptation indicates that workplace cooling is unappealing for firms with narrow profit margins, while coping strategies of farms and households have unclear optimality due to adoption barriers. Government responses remain understudied, with six potential areas identified: green jobs, green skills, labor-oriented adaptation, flexible work regulation, labor market integration, and social protection. The paper concludes by outlining future research directions. |
| Keywords: | climate change, labor, development |
| JEL: | Q54 J01 O1 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16914&r=res |