Search

This paper assesses the effects of public policies on the occurrence of natural disasters related to extreme rainfall. By using a unique and geolocated database on natural disasters in the state of Rio de Janeiro, Brazil, I test whether variables related to public policies - e.g. forest cover and urban infrastructure - affect the occurrence of natural disasters, conditional on the existence of extreme rainfall. Results point to a significant role for public policies in order to mitigate effects of extreme weather events. More specifically, results point to an important role for urban infrastructure, as proper sewage and waste collection, and forest cover in reducing the impacts of extreme rainfall. Moreover, I discuss how these heterogeneous effects have distributional consequences and can be linked to the Environmental Justice literature. Finally, this paper reinforces the idea that adaptation policies to disasters are essential in reducing local vulnerabilities and can yield distributional and fiscal benefits. [ABSTRACT FROM AUTHOR]

Abstract Various environmental footprint concepts have already been developed and applied in sustainability research. However, these analyses tend to remain restricted to historical observation samples. At least in comparison with related research activities in other environmental policy domains (like, e.g., climate policy), it seems that applications of integrated assessment tools represent rather seldom exceptions within the resource policy domain. Our paper is, therefore, intended to strengthen the related evidence base. We present recent projections from the dynamic Multi-Region Input-Output (MRIO) simulation model GINFORS (Global Inter-Industry Forecasting System), which provide an outlook on global development trends until the year 2050. Our detailed material footprint and climate policy assessment indicates that a global agreement on a policy mix will allow a clear turnaround towards climate protection and a sustainable use of natural resources without deteriorating economic performance. If the EU decides unilaterally to lead the way, then this turnaround could also be achieved for the EU while the EU would also benefit economically from this pioneering role. A third pathway towards a resource efficient and low-carbon Europe quantifies the environmental and economic impacts of a strong transitional change induced by European citizens' commitments to far-reaching sufficiency objectives. [ABSTRACT FROM AUTHOR]

Climate change economics is now four decades old. Much of what it has achieved as a field of academic enquiry can be linked back to issues of integrated assessment modelling. This paper shows that the standard approach is going through a major change in scope as of the last five years. The conventional focus on determining optimal mitigation paths based on modelling the social cost of carbon is being enlarged to embrace promising new waves of research. These are: (1) the economics of insurance against catastrophic risks; (2) the economics of trade and climate; and (3) the economics of climate change adaptation. The paper helps to bridge the gap between economics and climate policy by showing that the analytical toolkit of climate change economics has shifted towards more realistic representations of climatic policy. [ABSTRACT FROM AUTHOR]

Interaction between mitigation and adaptation is a key question for the design of climate policies. In this paper, we study how land use adaptation to climate change impacts land use competition in the agriculture, forest and other land use (AFOLU) sector and how a mitigation policy in agriculture might affect this competition. We use for this purpose two sector-specific bio-economic models of agriculture and forest combined with an econometric land use shares model to simulate the impacts of two climate change scenarios (A2 and B1, 2100 horizon), and a greenhouse gas emissions from agriculture policy consisting of a tax of between 0 and 200 €/tCO 2 equivalent. Our results show that both climate change scenarios lead to an increase in the area devoted to agriculture at the expense of forest which could have a negative impact on reducing greenhouse gas emissions responsible for climate change. The mitigation policy would curtail agricultural expansion, and thus could counteract the effects of land use adaptation to climate change. In other words, accounting for land use competition results in a reduction of the abatement costs of the mitigation policy in the agricultural sector. [ABSTRACT FROM AUTHOR]

This paper develops an Index of Sustainable Economic Welfare for Spain from 1970 to 2012 and seeks to update valuation approaches to a number of items. Two approaches have proven particularly controversial over recent decades; the costs of energy depletion and of climate change. The valuation implications in measuring present welfare have proven problematic, as both include future sustainability consequences arising from resource depletion and environmental impacts. This study includes a ‘ transition cost ’ approach to energy depletion, a modified approach to costs of climate change and water pollution, and removes the cost of ozone depletion. The results illustrate that while GDP per capita increased significantly, the ISEW per capita shows a widening gap. Household labour contributes strongly, but income distribution, energy depletion and costs of climate change limit improvement. Sensitivity analysis shows that accumulating climate change costs and escalating energy depletion costs have significant effects. Nevertheless, the new valuation approaches do not alter conclusions that welfare has shown little improvement. The ISEW provides a useful alternative to current indicators such as GDP subject to awareness of limitations. It is a measure of welfare that uses sustainability accounting methods when estimating costs, but is not an indicator of whether welfare is actually sustainable. [ABSTRACT FROM AUTHOR]

Abstract: This paper examines the economic impact of climate change on livestock production in Kenya. We estimate a Ricardian model of net livestock incomes and further estimate the marginal impacts of climate change. We also simulate the impact of different climate scenarios on livestock incomes. The Ricardian results show that livestock production in Kenya is highly sensitive to climate change and that there is a non-linear relationship between climate change and livestock productivity. The estimated marginal impacts suggest modest gains from rising temperatures and losses from increased precipitation. The predictions from atmospheric ocean general circulation models suggest that livestock farmers in Kenya are likely to incur heavy losses from global warming. The highest and lowest losses are predicted from the Hadley Centre Coupled model (HADCM) and Parallel Climate Model (PCM) respectively, based on the Intergovernmental Panel on Climate Change A2 Special Report on Emissions Scenarios. The paper concludes that in the long term, climate change is likely to lead to increased poverty, vulnerability and loss of livelihoods. Several policy interventions are recommended to counter this impact. [Copyright &y& Elsevier]

Abstract: When studying solutions to long-term environmental problems such as climate change, it is important to consider the role that technological change may play. Nonetheless, to date few economic models of environmental policy explicitly model the link between policy and technological change. There is a growing body of evidence that the incentives offered by prices and environmental regulations have a strong influence on both the creation and adoption of new technologies. In several recent papers, I have used patent data to examine the links between environmental policy and technological change. In addition, I have used the results of this research to calibrate the ENTICE model (for ENdogenous Technological change) of climate change, which links energy-related R&D to changes in the price of carbon. Drawing on my experiences from empirical studies on innovation and from modeling the climate change problem, in this paper I review some of the key lessons from recent empirical work using patents to study environmental innovation and diffusion, and discuss its implications for modeling climate change policy. I conclude by offering suggestions for future research. [Copyright &y& Elsevier]

Faced with a growing sense of urgency to combat climate change, environmental policy is increasingly turning to alternative policy instruments. One method for boosting green behaviour among individuals rooted in applied behavioural economics is loss framing - transforming existing messages so that they emphasise the potential negative consequences of an action or inaction on the environment. This paper provides a systematic review of the existing body of evidence on framing effects in pro-environmental decisions. Based on an analysis of 61 studies captured in 47 distinct papers we find that real behaviour has been largely neglected as an outcome variable, with preference in the literature given to the measurement of self-reporting constructs such as attitudes, willingness to pay and behavioural intentions. In support of the loss aversion hypothesis, loss framing was found to be more or equally effective in all studies examining behaviour and intentions, though gain framing was more successful where the choices taken required lower commitment, namely attitudes. We provide an analysis of other loss framing success factors and draw policy- and research implications. • Loss framing as a green nudge gaining increased traction in policy and research. • Empirical studies on gain- and loss framed environmental messages are reviewed. • Most studies focus on stated preferences at the expense of behaviour. • Loss framing found to be more effective in improving green intentions and behaviour. [ABSTRACT FROM AUTHOR]

“Ecosystem services” is a phrase with many meanings, yet very few studies have primarily focused on comparing different definitions of the term. Ecosystem services are now generally used in identifying an appropriately wide range of environmental variables for policy and management as well as better understanding the benefits provided by those aspects of the environment. A review of the dominant definitions of ecosystem services reveals the term is comprehensive in its scope and requires further specification for most purposes. Analysis further reveals that there are four main categories of conceptual definitions. The paper concludes that ecosystem services can be identified at various points along the spectrum of nature-human interaction depending on which specific definition is chosen and that the term was not created to identify a novel set of environmental objects or processes. [ABSTRACT FROM AUTHOR]

Abstract: This paper argues that it is countries' historical experience with democracy, the democratic capital stock, rather than current levels of democracy that determines current climate change policies. Empirical evidence using data starting as far back as year 1800 for 87 countries, which together are responsible for 93.7% of global carbon emissions, suggests that the democratic capital stock has an important and robust effect on climate change policies. A history of executive constraints is particularly important. The current level of democracy does not play a role once democratic capital has been accounted for. [ABSTRACT FROM AUTHOR]

Abstract: This paper analyzes the role of forest-based carbon sequestration in a unilateral EU27 emissions reduction policy under a Global Computable General Equilibrium (CGE) framework. Forestry mitigation is introduced into the model relying on carbon sequestration curves provided by a global forestry model. The structure of the original CGE is extended to consider land use change and timber supply effects, resulting from the use of forest sinks to reduce carbon emissions. Results show that afforestation and timber management could lead to substantially lower policy costs. By using forest-carbon sinks it is possible to achieve the 30% emissions reduction target with an additional European effort of only 0.2% of GDP compared with the cost of a 20% emissions reduction without forestry. Carbon price is also reduced, by approximately 30% in 2020. European forest-carbon sequestration may have, however, the perverse effect of increasing timber production in areas of the world which already have high deforestation rates. A sensitivity analysis on main parameters confirms the robustness of our results. [Copyright &y& Elsevier]

The purpose of this paper is to contribute towards moving the predominant situation of weak sustainable development (WSD) in the direction of strong sustainable development (SSD). More people – academics, politicians, bureaucrats and laymen alike – need to recognize SSD as an alternative to WSD. A joint discourse of WSD and SSD is suggested, called reflexive sustainable development. Here, advocates of WSD and SSD must argue for each specific case why their solution is better. This will expose, amongst other things, the ethical foundations which form part of resulting policy advice. Reflexive sustainable development is to be framed in discourse ethics, thereby remedying the power imbalance and allowing for substantial discussion. Reflexive sustainable development builds on a common theoretical base but will not lead to consensus in all matters. A family metaphor is introduced to inspire a discourse of both consensus and compromise. [Copyright &y& Elsevier]

Abstract: This paper considers the coordination of domestic markets for tradable emission permits where countries determine their own emission reduction targets, using a two-country model. Linking such schemes is beneficial to both countries but may cause the exporting country to decrease its emission reduction target and export more permits. This in turn would not only reduce the costs for both countries as less emissions have to be reduced, but it also lowers the environmental benefits of the importing country. One price instrument (tariff) and two quantity instruments (discount, quota) to prevent the exporting country from issuing more permits are examined. Each instrument restricts trade and alters the terms of trade for the two countries. The importing country (and regulator) prefers an import tariff and an import quota to a carbon discount. If the exporting country releases additional permits, the importing country should not try to keep total emissions constant, as that would be ineffective and maybe even counterproductive. Instead, the importing country should aim to keep the total import constant; this would impose costs on the exporting country that are independent of the policy instrument; an import quota would be the cheapest option for the importing country. An import quota would also stress the idea of supplementary of the flexible mechanism as it increases the share of emissions reduced domestically. Compliance and liability issues constrain the market further. However, both the importing and the exporting country would prefer that the permit seller is liable in case of non-compliance, as sellers'' liability would less constrain the market. [Copyright &y& Elsevier]