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This paper uses a quantile fixed-effect panel data approach to investigate how environmental policy stringency affects CO2 emissions in a set of 32 OECD countries from 1990 to 2015. This approach allows us to identify the asymmetric impact of policy stringency on emissions, considering the emission level recorded in each analysed country. More precisely, we posit that the effectiveness of environmental regulations and policies is influenced by the air pollution level. Our results show that an increase in policy stringency has a negative impact on emissions. As a new contribution, we show that environmental stringency has a more powerful impact in the countries with lower level of carbon emissions. This result is also recorded for the subset of EU member countries of the OECD. Moreover, we show that policy stringency measures only become effective after the implementation of the Kyoto agreement. Finally, the policy stringency effect is stronger for EU countries at high risk of missing the 20-20-20 target in terms of greenhouse gas emissions.JEL codes: Q43, Q56, F21

The global COVID-19 crisis has led to a reduction in productive and commercial activity, as well as in the use of transport, which has led to a notable decrease in pollution levels. The paralysis of economic activity requires the commitment of government policies to impose economic recovery laws based on sustainability. The aim of this paper is to briefly review the situation that COVID-19 has caused in the environment and sustainability. In addition, a critical view of it is provided, and possible solutions for a sustainable economic reconstruction are offered. The coronavirus is revealing the fragility of the current economic system, based on profit and continuous consumption of resources. This model generates many problems such as pollution, contribution to climate change, loss of biodiversity or unfair distribution of wealth. This must be an opportunity to redefine the social purpose of business and help generate a sustainable world through economic policies. For economic recovery, a plan oriented towards energy and ecological transition and based on the circular economy must be followed.

Air pollution has been shown to have adverse effects on many health outcomes including respiratory effects, cardiovascular effects, and mortality. However, evidence on the effects of prenatal exposure is still limited. We investigate the causal impact of prenatal exposure to air pollution on neonatal health in Italy in the 2000s. We exploit variation in rainfall shocks to instrument for non-random air pollution exposure. Our empirical setting combines detailed information on mother's residential location from birth certificates with PM10 concentrations from air pollution monitors. Ten additional units in the average PM10 level (approximately one standard deviation) would decrease birth weight by about 0.5% and gestational age by 0.16%; it would increase the prevalence of low birth weight by 22% and of preterm birth by 16%. The effects are stronger in magnitude for third trimester exposure and for less educated mothers. These findings suggest that the health impacts of air pollution on newborns are unequally distributed in the population.

Measuring efficiency in the presence of undesirable outputs could be difficult depending on how to treat these outputs; thus, undesirable outputs modelling has been an exciting subject of several studies in the Data envelopment analysis (DEA) literature in the last two decades. The present study aims to illustrate a thorough overlook of studies in which DEA has applied for measuring efficiency with undesirable outputs. Fifty-eight articles were published from 2000 to 2020 have been systematically reviewed through PRISMA protocol. The results indicated that "Journal of Cleaner Production" ranked first with six published articles, and Chinese scholars have the most contributions to this field, with twenty-third articles. Also, almost a quarter of the published articles' scope was related to agricultural pollution, and thirteen articles were published in 2016, the highest number of published articles annually. Taken together, the theoretical and empirical implications of research in the field of Green Productivity are discussed, and some policies were recommended.

The maximum entropy bootstrap for time series is applied in this study to investigate the nexus between carbon emissions from electricity generation and the gross domestic product, using a bivariate framework for eight Middle Eastern countries between 1995 and 2017. The sample under study includes oil-producing countries such as Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates. As the electricity generation in these economies relies mainly on oil and gas, finding out the existence and direction of the relationship between the two considered variables has remarkable implications for policymakers and governments in these countries to achieve both higher economic growth and environmental protection. As expected, this nexus is validated for all countries in the sample but not in all models, time periods, and lags. Therefore, policymakers can set appropriate electricity conservation policies based on these varied empirical findings to boost economic growth with minimum environmental degradation.

Analyzing the potential for green development and its influencing factors is an important part of the energy savings and low-carbon economic growth of China&rsquo, s iron and steel industry (ISI). Many studies have concentrated on improving the ISI&rsquo, s energy use and pollution control efficiencies, analyzing the influencing factors from the perspectives of regions and firms. However, no study has focused on measuring the provincial green development efficiency (GDE) in the ISI. The selected driving forces of the GDE do not consider regional or industrial characteristics. In this study, based on provincial panel data for 2006&ndash, 2015 in China, the GDE of the Chinese ISI was evaluated using the super-slack-based measure (super-SBM) model. China&rsquo, s 28 provinces were divided into different groups through cluster analysis. Then, a Tobit model was constructed to explore the factors influencing the GDE. The key results show the following: (1) The GDE values decline, fluctuating from 0.628 in 2006 to 0.571 in 2015, decreasing by 1.1% annually. Among the provinces, wide differences exist in the GDE values for the ISI, with the highest average GDE value being observed in Beijing and the lowest in Shanxi. (2) The provinces with high R&amp, D expenditure inputs and high GDE values are mostly located in the eastern region, while the provinces with low R&amp, D expenditure inputs and low GDE values are located in the central and western regions. (3) The export demand, property structure, and capital investment have significant positive effects on the ISI&rsquo, s GDE in the eastern and western regions, while the energy consumption structure and industry scale have negative impacts on the improvement of the GDE in the central region. (4) Specific policy recommendations for sustainable development in the ISI mainly include further strengthening investment in R&amp, D, expanding exports, adjusting energy consumption structures, and deepening the reform of stated-own enterprises.

International audience; In the late 1960s, new environmental policies emerged which attempted to reach predetermined pollution standards in a cost-effective way: i.e., the ‘standard-and-tax’ approach proposed by William J. Baumol and Wallace E. Oates and the permits market approach proposed by John Dales. This paper describes the early history of the two approaches, and compares them. Although they flow from different traditions, namely Pigovian versus Coasean, and are often contrasted in the literature, these cost-effective solutions emerged at the same time and for the same reasons. First, they both tried to promote incentives-based policies against traditional regulations; second, they criticized the optimal Pigovian tax, which raised the contentious issue of measuring pollution damage. More broadly, they emerged as a kind of pragmatic compromise, fed by a common attempt to move toward more practical policies: reaching efficiency without optimality, while relying on standards whose setting is a matter for political decision.

Understanding the distributional impacts of market-based climate policies is crucial to design economically efficient climate change mitigation policies that are socially acceptable and avoid adverse impacts on the poor. Empirical studies that examine the distributional impacts of carbon pricing and fossil fuel subsidy reforms in different countries arrive at ambiguous results. To systematically determine the sources of variation between these outcomes, we apply an ordered probit meta-analysis framework. Based on a comprehensive, systematic and transparent screening of the literature, our sample comprises 53 empirical studies containing 183 effects in 39 countries. Results indicate a significantly increased likelihood of progressive distributional outcomes for studies on lower income countries and transport sector policies. The same applies to study designs that consider indirect effects, demand-side adjustments of consumers or lifetime income proxies.

Producción Científica, We analyze an endogenous growth model considering agents with an isoelastic utility. Preferences are characterized by a utility affected by a negative externality, and a level of impatience which decays with the time distance from the present. Agents who cannot commit the actions of their future selves, play a game against them. The stationary equilibrium of this game defines a balanced growth path with a slower growth when played by subsequent central planners than when played by decision makers in the market economy. First, we prove that the fast growing market economy implies higher welfare if the negative externality is small, while the centralized economy is welfare improving above a given threshold for the externality (obtained for a specific family of non-constant discount functions). Secondly, we observe that this threshold increases with the elasticity of intertemporal substitution in consumption. Therefore, the greater this elasticity the more likely it is that the externality lies below this threshold, where policy interventions would not be adequate. Finally, as one would expect, the range of values of the externality for which the market equilibrium provides higher welfare widens the more different from constant discounting time preferences are, due either to a wider range of variation for the instantaneous discount rates or because these decay more slowly., Ministerio de Economía y Competitividad ECO2014-52343-P y Fondos FEDER, Ministerio de Economía y Competitividad ECO2017- 82227-P y Fondos FEDER, Consejería de Educación, Junta de Castilla y León VA024P17 y fondos FEDER, Consejería de Educación, Junta de Castilla y León VA105G18 y fondos FEDER

Producción Científica, We analyze the effect of non-constant discounting on economic growth and social welfare in an endogenous growth model with pollution externalities. For time-consistent agents, who play a game against their future selves, the balanced growth equilibrium is compared to the case of standard exponential discounting. A decaying instantaneous discount rate leads to slower growth in a centralized economy, while its effect for a competitive economy is ambiguous. Interestingly, when comparing the planned and the competitive equilibria, the assumption of non-constant discounting may imply greater social welfare in the market equilibrium under two conditions. First, the pollution externality on utility must be large with respect to the externality on production, so that the central planner slows down growth below the growth rate in the market economy. Secondly, individuals’ degree of impatience should decrease sharply with the time distance from the present. Concerning policy implications, we observe that under log-utility policies may not be necessary, while for an isoelastic utility with an elasticity lower than one, introducing policy instruments is less effective than under constant discounting., Ministerio de Economía y Competitividad ECO2014-52343-P y Fondos FEDER, Ministerio de Economía y Competitividad ECO2017- 82227-P y Fondos FEDER, Consejería de Educación, Junta de Castilla y León VA024P17 y fondos FEDER, Consejería de Educación, Junta de Castilla y León VA105G18 y fondos FEDER

Comparisons of emissions and external environmental costs between transport modes usually focus on a distance-based approach. Emissions, and consequently the external costs of transport modes, are measured either per kilometer or passenger kilometer. For travel purposes such as holiday or leisure, however, this approach is not appropriate, as destinations are determined endogenously and thus distances vary across transport modes. In this study, we present a novel methodology to correctly and accurately measure leisure emissions and external costs. The new metric is called &ldquo, full-price emissions&rdquo, Full-price emissions calculate the ratio of a transport mode&rsquo, s emissions or external costs and its full price. The results show that the relative climate damage imposed by aircraft, calculated according to full-price emissions, is approximately four times larger than distance-based approaches reveal. We further observe that, in contrast to distance-based emission comparisons, environmental costs of petrol cars are lower than that of diesel cars. Additionally, full-price emissions display unintended substitution effects of environmental policies that can contribute to climate damage.

This paper quantifies behavioural responses to changes in the jurisdiction of a congestion charge, with a successive focus on (i) an extension and (ii) a reduction in the size of the charging zone. We exploit the unanticipated nature of both the implementation and removal of London’s Western Expansion Zone (WEZ) as quasi-natural experiments to test whether individual responses to policies are asymmetric. We use the UK Department of Transport Annual Average Daily Flow (AADF) data, which records traffic flows for seven transport modes (including cars, buses, bicycles, heavy and light goods vehicles). Using a difference-in-differences approach, we find that the introduction of the WEZ led to a 4.9% decline in road traffic flows in the new congestion charge area. These results are robust to different model specifications. HGVs traffic did not significantly change post-WEZ, which indicates that their road demand is price inelastic. The removal of the WEZ led to no significant variations in traffic. This result indicates asymmetry in behaviour with persistent changes in post-intervention traffic demand levels.

Environmental policies are a significant cornerstone of a developed economy, but the question that arises is whether such policies lead to a sustainable growth path. It is clear that the energy sector plays a pivotal role in environmental policies, and although the current literature has focused on examining the link between energy consumption and economic growth through an abundance of studies, it does not explicitly consider the role of institutional or governance quality variables in the process. Both globalization and democracy are important drivers of sustainability, while environmentalism is essential for the objective of gaining a “better world.” Governance quality is expected to be the key, not only for economic purposes but also for the efficiency of environmental policies. To that end, the analysis in this paper explores the link between governance quality and energy efficiency for the EU-28 countries, spanning the period 1995 to 2014. The findings document that there is a nexus between energy efficiency and income they move together: the most efficient countries are in the group with higher GDP per capita. Furthermore, the results show that governance quality is an important driver of energy efficiency and, hence, of environmental policies.

The paper investigates the relationship between economic growth and environmental quality in the context of the Kuznets curve, which foresees that growth, while initially causing negative externalities for the environment, eventually can be seen also as the solution to environmental degradation. The novelty of the paper is to analyze the role of environmental policies, and in particular the use of market-based and non-market instruments to challenge the pollution plague and mitigate climate change. The results of fixed effects estimates on a sample of 32 countries observed for the period 1992&ndash, 2012 show the existence of an inverted U-shaped relationship between per capita gross domestic product (GDP) and per-capita CO2 emissions for the quadratic specification, as well as of an N-shaped pattern for the cubic specification. Most importantly, the stringency indexes, i.e., the proxies used to account for environmental regulation, exhibit negative and strongly significant coefficients, suggesting that the policies are effective in reducing environmental damages associated with economic growth.

An estimated 150 million tonnes of plastics have accumulated in the world's oceans and the problem increases, as waste management and recycling systems are unable to cope with the rising plastic production. Marine plastic pollution has consequences on the global ecosystem, coastal communities, industries including tourism, shipping and fishing and its impacts on food security and human health remain unknown. Negative effects span borders of national jurisdiction and a solution to the problem requires international cooperation. Policies to prevent plastic pollution have been implemented on local, national, regional and international levels. However, efforts to adequately address the problem have failed so far. When faced with such transboundary problems that threaten global public goods in the past, states have formed international regimes through negotiating legally binding treaties to effectively cope with the issue. This thesis examines factors for success and failure of international regimes for the protection of global public goods and investigates two cases of one successful and one unsuccessful international regime to cope with transboundary pollution problems. Results of the analysis of the successful Montreal Protocol show that an advantageous cost-benefit analysis, active leadership of actors pushing for an agreement, support by non-state actors on the domestic level, as well as perceived urgency for action were success factors. The treaty design constituted a necessary condition for success by using the following treaty elements: a) common but differentiated responsibilities, b) trade restrictions, c) financial mechanism, and d) adjustments and amendments. Findings from the Kyoto Protocol case study indicate reasons for failure, namely the disadvantageous cost-benefit analysis, perceived unfairness due to the exemption of developing countries from costs, domestic compliance incapacity, as well as inadequate targets to address the problem. The treaty design was a necessary condition for failure of the regime by including: a) one-sided responsibility, b) an inadequate scope to deal with the problem, as well as mechanisms that allowed for loopholes and complicated monitoring, c) rigidity incentivising short-term policies and preventing innovation, as well as d) lack of compliance and enforcement mechanisms. This thesis demonstrates that treaty design is significant for setting incentives for participation and compliance, as well as for deterring non-compliance. The treaty design of a successful international agreement to eliminate marine plastic pollution would require the use of: a) the principle of common but differentiated responsibilities, b) an adequate scope to address the problem by including land- and sea-based sources, as well as chemical additives and all stages of the life-cycle of plastics, c) issue-linkage to international plastics trade, d) a financial mechanism to support developing countries, e) flexibility to adapt to changes, f) effective reporting, monitoring and review procedures, and g) enforcement through incentivising compliance and deterring non-compliance. This research demonstrates that treaty design is a key determinant for success of international regimes. This thesis contributes to research by reviewing academic literature on the emergence and maintenance of international regimes, mapping the problem of marine plastic pollution and identifying treaty elements that will contribute to success of a legally binding mechanism on the global scale to adequately address marine plastic pollution. Implications go beyond the topic of marine plastic pollution and global environmental problems, and can also be useful for academics, policymakers, and civil society actors in other areas of international law and global governance.

Günümüzün önde gelen çevre sorunlarından biri haline gelen sera gazı salımı, özellikle sanayi devrimi ile birlikte hızla sanayileşen ülkeler başta olmak üzere dünya genelinde artmıştır. Sanayileşme sürecinin bir diğer yansıması da doğada sınırlı olan kaynakların aşırı kullanımıdır. Bu iki önemli durum, çevre kirliliği, küresel ısınma, iklim değişikliği, doğal kaynakların yetersizliği gibi hem şimdiki nesiller hem de gelecek nesiller için birçok tehlikeyi beraberinde getirmektedir. Bu ve benzeri tehlikeleri önlemek adına gerekli tedbirler alınmazsa dünyayı tehdit eden kalıcı değişikliklerin meydana gelmesi kuvvetle muhtemel olduğundan, ülkeler doğal kaynakların korunması ve sürdürülebilir kalkınmanın gerçekleştirilmesine yönelik çevre politikalarına yoğunlaşmıştır. Bu kapsamda özellikle son yıllarda ülkeler belirledikleri çevre politikalarıyla tutarlı olacak politika araçlarına da eğilim göstermektedir. Bu politika araçlarından biri olan karbon vergisi gerek ulusal gerekse uluslararası çalışmalarda da dikkat çeken konu başlıkları arasında yer almaktadır. Ancak dünyada bazı ülkelerde uygulanmakta olan karbon vergisi Türkiye'de henüz uygulanmamaktadır. Bu çalışmada sürdürülebilir kalkınmadan bahsedilmiş ve karbon vergisi kapsamlı bir şekilde ele alınmıştır. Bu doğrultuda çalışmanın amacı sürdürülebilir kalkınmanın gerçekleştirilmesi sürecinde karbon vergisini Türkiye açısından yeni bir politika aracı önerisi olarak sunmak ve karbon vergisinin Türkiye'de uygulanabilirliğini tartışmaktır. Çalışma sonucunda iklim değişikliği ile mücadele ve sürdürülebilir kalkınmanın gerçekleştirilmesi sürecinde Türkiye'nin mevcut politika araçlarının yönlendirici ve denetleyici yönünün zayıf olduğu belirlenmiş, bu kapsamda denetim mekanizmalarını yoğunlaştırmak koşuluyla yeni bir iktisadi araca ihtiyaç olduğu tespit edilmiştir. Greenhouse gas emissions, which have become one of today's leading environmental problems, have increased worldwide, especially in the industrialized countries, with the industrial revolution. Another reflection of the industrialization process is the excessive use of resources limited in nature. These two important conditions, such as environmental pollution, global warming, climate change, lack of natural resources, bring many dangers for both the present generations and future generations. Countries are focused on environmental policies to protect natural resources and achieve sustainable development, as it is highly likely that permanent changes that threaten the world will occur if necessary measures are not taken to prevent these and other hazards. In this context, especially in recent years, countries tend to have policy instruments that are consistent with their environmental policies. Carbon tax, which is one of these policy instruments, is one of the notable topics in both national and international studies. However, the carbon tax being implemented in some countries in the world have not yet implemented in Turkey.In this study, sustainable development is mentioned and carbon tax is handled comprehensively. In this regard, the purpose of a carbon tax in the process of carrying out the work in terms of sustainable development as a proposal to offer Turkey a new policy tool and to discuss the feasibility of carbon taxes in Turkey. Combating climate change in operating results and sustainable development in the process of realization of the Turkey determined that the existing policy instruments routers and controllers is poor direction, provided to intensify control mechanisms in this regard has been determined that the need for a new economic tools. 117

Bu çalışmada, Türkiye'deki çevre politikaları çevresel olarak genişletilmiş girdi-çıktı analizi (ÇGGÇA) kullanan bir yaklaşımla incelenmiştir. Bu amaçla, Türkiye'nin yurtiçi ve ithalat girdi-çıktı tabloları ve ürün gruplarına göre yurtiçi üretim ve ithalat değerlerinden hesaplanan farklı ağırlıklar yardımıyla sektörel ayrıştırılması yapılan ülke girdi-çıktı tablosu ve bu ayrıştırılmış tabloya göre sektörel ayarlanması yapılan hava emisyon hesapları kullanılarak Türkiye'nin nihai tüketim, yatırım (gayrisafi sermaye oluşumu), ihracat ve ithalat bileşenleri için de ayrı ayrı olmak üzere toplam tüketim temelli emisyon envanteri (TTE) oluşturulmuştur. İlk olarak, tüketim temelli emisyon envanterindeki tüm değerlerin toplamına eşit olan Türkiye'nin emisyon sorumluluğu hesaplanıp ülkenin toplam emisyonlarıyla karşılaştırılmış, Türkiye'nin emisyon sorumluluğunun toplam emisyonlarından %2,4 oranında daha yüksek olduğu bulunmuştur. İkinci olarak, hava emisyon hesapları ve hesaplanan emisyon envanterleri kullanılarak kritik ürün grupları belirlenmiş ve Türkiye'nin Niyet Edilen Ulusal Olarak Belirlenmiş Katkı (NUBK) dokümanı her bir kritik ürün grubu için incelenmiştir. Bu dokümanın, çoğu emisyon kaynaklarını dikkate almasına rağmen Türkiye'nin 2012 yılındaki en büyük endüstrisi ve tüketim temelli emisyonlarda en büyük paya sahip olan inşaat sektörünü ve onun üretim zincirlerinde önemli payı olan diğer metalik olmayan mineral ürünleri imalatı ürünlerini içermediği bulunmuştur. In this study, the environmental policies in Turkey are examined with an approach that employs an environmentally extended input-output analysis (EEIOA). To this end, Turkey's consumption-based emission inventory (CBI) with a decomposition of final demand components that are final consumption, investment (gross capital formation), exports and imports is created using Turkey's input-output table that is disaggregated with the help of its domestic and import decompositions and different weights calculated from Turkey's domestic outputs and imports by product group and air emission accounts that is adjusted to the disaggregated table. Firstly, Turkey's emission responsibility which equals to the sum of the elements of the consumption-based inventory is calculated and compared with its total emissions and it is found that Turkey's emissions responsibility is 2,4% larger than its own production-based emissions. Then, some critical product groups are determined with the help of both air emission accounts and calculated consumption-based inventories and the implications of Turkey's Intended Nationally Determined Contribution (INDC) is examined for each critical product group. It is found that although Turkey's INDC considers many important emission sources that contribute a large part of its total emissions, it misses the products of manufacture of other non-metallic minerals that have an important share in the supply chains of construction sector, the largest industry and the one that is the largest in Turkey's CBI in 2012. 59

Sürdürülebilir Kalkınma paradigmasının 1980'li yıllar itibariyle kalkınma literatürü içinde yer almaya başlaması, büyüme merkezli kalkınma yaklaşımlarının çevresel tahribatlar konusunda da eleştiriler gördüğü ve yeni kalkınma yaklaşımları arayışlarına girildiği 1970'li yıllardaki sürecin yansıması ile olmuştur. Sürdürülebilir kalkınma yaklaşımını kabul ederek ilgili uluslararası etkinliklere katılan ve sözleşmelere taraf olan ülkeler, bu yaklaşımın hedefleri doğrultusunda politikalar geliştirme yükümlülüğüne girmiştir. Bu çalışma, sürdürülebilir kalkınma yaklaşımının çevre boyutunu ele almakta olup, Türkiye'nin çevre politikalarını ve bu örnek üzerinden, küresel çevresel tehditler karşısında sürdürülebilir kalkınma yaklaşımının çevre boyutunu, çevre koruma-ekonomik kalkınma bağlamında incelemektedir. The paradigm of Sustainable Development took its place in the development literatüre as of the 1980s, and was reflected in the process of the 1970s, when growth-centered development approaches were criticized for environmental destruction and the search for new development approaches was sought. By accepting a sustainable development approach, countries that participate in relevant international events and are parties to contracts have become obliged to develop policies in line with the objectives of this approach. This study of the sustainable development approach is to address the environmental dimension of Turkey's environmental policy and through this example, the environmentall dimension of sustainable development approach in the face of global environmental threats, examines the environmental-economic development. 202

1990'lı yıllarda en çok tartışılan konuların başında gelen dış ticaret ve çevre arasındaki çelişkili ilişki günümüzde hala birçok araştırmanın konusu olmaya devam etmektedir. Yaşanılan çevresel sorunlarda dış ticarette dâhil tüm ekonomik faaliyetlerin önemli bir rolü vardır. Dış ticaretin serbestleşmesi ile ülkelerin ekonomik büyümeleri artmakta bu sebeple çevre kirliliği de artmaktadır. Havadaki karbondioksit emisyonunun giderek yükselmesi; küresel ısınmanın artmasına, biyolojik çeşitliliğin ve doğal kaynakların azalmasına sebep olmaktadır. Çevre sorununa neden olan ülkelerin başında OECD ülkeleri gelmektedir. Günümüzde sanayileşmiş OECD ülkelerinde çevre farkındalığı artmakta ve uluslararası çevre sözleşmelerine taraf olmaktadırlar. Bu nedenle OECD ülkelerinde çevre sorununa neden olan faaliyetlerin azaltılması ve çevre dostu teknolojilerin yaygın kullanılması hedeflenmektedir. Bu durumda da ülkelerin üretici tarafı, ek bir maliyete maruz kalmaktadır.Bu çalışmada dış ticaretin serbestleşmesi ile kirletici potansiyele sahip yatırımcıların rekabet avantajı elde etmek için gelişmiş ülkelerden gelişmekte olan ülkelere doğru kayacağını ve uygulanan çevre politikaları ve performanslarının arttıkça doğrudan yabancı yatırımları negatif yönde etkileyeceğini ifade eden kirlilik cennetleri hipotezinin öngörüleri 27 OECD ülkesi için test edilmiştir. Çalışma 2002-2012 dönemini kapsayan doğrudan yabancı yatırımları etkileyen GSYİH büyüme rakamları, çevrenin sürdürülebilirliği, niteliği ve performansını niteleyen endeks verileri yıllık olarak panel veri analizi ile test edilmiştir. 27 OECD ülkesinde test edilen kirlilik cennetleri hipotezi elde edilen bulgulara göre reddedilmiştir. Anahtar Kelimeler: Doğrudan Yabancı Yatırımlar, Çevresel Performans Endeksi, Çevre Politikalarının Sıkılığı Endeksi, Kirlilik Cennetleri Hipotezi, Panel Veri Analizi. Contradictory relationship between external trade and enviroment has continues to be subject of many research since 1990. All economic activities including external trade play a role in the formation of environmantal problems. With liberalization of foreign trade, economical growth of countries is increasing. Thus, environmental pollution is increasing day to day.Increasing emissions of carbon dioxide in air cause increasing global warming, decreasing biodiversty and natural resources. OECD countries are at the top of the countries that cause environmental problems. In today's industrialized OECD countries' enviromental awareness goes up and they accept international environmental commitments. For this reason, it is aimed to reduce the activities causing environmental problems in OECD countries and to use environmentally friendly technologies widely. In the case too, the producer side of country is exposed to an additional cost.In this study, pollution haven hypothesis which expresses that foreign investors will move towards developing countries for competitive advantage and that as the environmental policies and performances applied increase, direct foreign investments will affect the negative direction is tested for 27 OECD countries. Study GDP growth figures affecting foreign directinvestments coveringthe period 2002-2012, annual index data qualifying the sustainability, quality and performance of the region were tested by panel data analysis. The pollution haven hypothesis tested in 27 OECD countries was rejected according to the findings obtained.Key words: Direct Foreign Investments, Environmental Performance Index, Environmental Policies Stringency Index, Pollution Haven Hypothesis, Panel Data Analysis. 80

This paper proposes a Generalized Nash Game problem (GNEP) to study the possible cement production relocation from countries subject to environmental regulation to areas where environmental policies are not applied or are more lenient. This phenomenon takes the name of “carbon leakage” effect. This analysis is based on an oligopolistic partial equilibrium model with a detailed technological representation of the cement market. An existence result for this GNEP is also provided.

To analyse the impact of the environmental policies, we start by reviewing the literature on the environment, technological knowledge and economic growth. Then, we build a general equilibrium endogenous growth model where final goods are produced either in the skilled-labour intensive Clean sector or in the unskilled-labour intensive Unclean sector. By solving numerically transitional dynamics towards the unique and stable steady state, we observe that environmental policies encourage scale-invariant technological-knowledge bias. This, in turn, promotes environmental quality, the skill premium and economic growth. Moreover, the impact of population growth on the steady-state growth rate is higher under strong households’ environmental conscientiousness with future generations. Key words: (Un)Clean sector, Environmental policies, Environmental conscientiousness, Growth, Wages.JEL: C63, J31, O13, O31, Q55, Q58.

In this paper the dynamical effects of public environmental policies are investigated in a Cournot duopoly with heterogeneous expectations in a context of limited rationality. It is shown that the introduction of upper limits to emissions always tends to destabilise and generate a chaotic market dynamics. By contrast the role played by the cost of the abatement technology is more complicated, although in most cases higher costs imply a higher likelihood of stability loss, in some cases increases of such costs when their level is sufficiently low tends to stabilise and in such cases if the market is stable either a decrease or an increase of such costs may lead to a stability loss. The policy implications of these results suggest caution in the use of environmental policies from a market stability point of view.

The European-Union Emissions Trading System (EU-ETS) is a cap and trade scheme that requires the industries participating in the program to obtain allowances to cover their carbon emissions. Energy Intensive Industries claim that this system puts their European plants at an economics disadvantage compared to facilities located outside the EU. As a direct consequence, industries may relocate their production activities in unregulated countries, leading to the so-called carbon leakage effect. In order to curb this effect, several policies have been devised, including grandfathering of CO2 allowances and border tax adjustment. This paper investigates the impact of these two policies on the cement sector, with a particular focus on the Italian market, particularly prone to carbon leakage. The analysis is based on an oligopolistic partial equilibrium model with a detailed technological representation of the market. The model is a Generalized Nash Equilibrium Problem that accounts for the interactions of cement companies. Simulations show that neither the grandfathering nor the border tax adjustment fully solve the carbon leakage problem because cement companies modify their cement and clinker trade strategies according to the measure applied in order to avoid or reduce their carbon costs.

Türkiye, iklim değişikliğine neden olan sera gazı emisyonlarında tarihsel sorumluluğu düşük ancak toplam sera gazı emisyonları hızla artan bir ülke durumundadır. Bu nedenle sera gazı emisyonlarının ana sürükleyicileri olan fosil yakıt kullanımının ve endüstriyel süreçlerin kontrol altına alınması ve uluslararası iklim politikalarına katkıda bulunulması gerekmektedir. Son yıllarda emisyon azaltımı için kullanılan en etkili ve önemli araçlar karbon vergisi ve emisyon ticareti uygulamasıdır. Özellikle uluslararası literatürde bu konu ile ilgili önemli sayıda çalışma yapılmış olmasına rağmen Türkiye'de halen bu konu ile ilgili yeterli araştırma yoktur. Bu çalışmanın amacı, Türkiye'de 10. Kalkınma Planında öngörülen ekonomik büyüme hedefi ve Paris Konferans'ında taahhüt edilen karbondioksit salınım hedefi ile uyumlu bir politika önerisi paketi geliştirmektir. Bu politika önerisi ile bir yandan karbondioksit salınımları azaltılırken ekonomideki küçülmenin en aza indirilmesi amaçlanmaktadır. Politika önerisi, salınım azaltımı için karbon vergisini bir politika aracı olarak belirlemekte ve bu verginin alternatif olarak tüm kirleten endüstrilere veya seçilmiş en kirli üç endüstriye uygulanmasını öngörmektedir. Bu ikisini tamamlayıcı olarak da elektrik üretiminde kullanılan doğalgazın biyo-yakıtlar ile ikame edilmesi diğer bir alternatif olarak önerilmektedir. Çevresel hedef tutturulurken elde edilen karbon vergisi geliri ise ekonomik daralmayı önlemek amacıyla ekonomiye geri enjekte edilmektedir. Bu enjeksiyon ise ya hanehalkları veya firmalar üzerinden yapılmakta ve ekonomide büyüme sağlanmaktadır. Bulgular karbon vergisi uygulamasının toplam sera gazı emisyonlarını azaltmakta etkili olduğu ama tüm endüstrilere uygulanmasındansa seçilmiş en kirli endüstriler üzerine uygulanmasının daha düşük bir ekonomik küçülme yaratacağı yönündedir. Ayrıca enerji tüketiminde biyo-yakıtlara yönelmek de kısa vadede hem çevresel hem ekonomik pozitif getiriler üretecektir. Sera gazı emisyonlarının azaltımı için uygulanan karbon vergisinden toplanan kaynağın ekonomiye, firmalara bir transfer olarak geri döndürülmesinin ise hanehalklarına verilecek transfere göre daha etkili olacağı tespit edilmiştir. Turkey is a country with lower historical responsibility in greenhouse gas emissions that cause global climate change however her total emission growth rate is quite high. For this reason, use of fossil fuels and industrial processes which are the main factors behind greenhouse gas emissions should be controlled and contribution should be given to international policies implemented for the same purpose. In recent years, the most efficient policies used to reduce emissions are carbon taxing and emission trade. There have been many academic works in the international literature that focus on the issue however especially in Turkey this literature is quite limited and insufficient. This study aims at developing a policy package that is in line with the economic growth targeted in the 10th Development Plan of Turkey and with greenhouse gas emission reduction commitment given in Paris Conference. With this policy package it is aimed to reduce greenhouse gas emissions while minimizing the economic contraction. Policy package suggests carbon taxing as a policy instrument to reduce emissions and this tax is either applied on all industries depending on their emission share or on the most polluting three industries. To complement this, natural gas used in electricity production is partly substituted with bio-fuels as an alternative mode for reaching the policy goals. Carbon tax collected to reach environmental goal is reinjected in the economy to create growth. This injection is made either through households or firms. Findings suggest that carbon tax policy is an efficient instrument to reach the goal however the economic contraction would be lower if the tax is applied on the selected most polluting three industries rather than on all industries depending on their share in total emissions. In addition, energy substitution with bio-fuels would create both environmental and economic positive impacts. The financial resources obtained through carbon taxing would be more efficient in creating economic growth if these are injected to the economy through firms rather than households. 176

This paper explores the nature and the key empirical regularities of green employment in US local labor markets between 2006 and 2014. We construct a new measure of green employment based on the task content of occupations. Descriptive analysis reveals the following: 1. the share of green employment oscillates between 2 and 3 percent, and its trend is strongly pro-cyclical; 2. green jobs yield a 4 percent wage premium; 3. despite moderate catching-up across areas, green jobs remain more geographically concentrated than similar non-green jobs; and 4. the top green areas are mostly high-tech. As regards the drivers, changes in environmental regulation are a secondary force compared to the local endowment of green knowledge and resilience in the face of the great recession. To assess the impact of moving to greener activities, we estimate that one additional green job is associated with 4.2 (2.4 in the crisis period) new jobs in non-tradable activities in the local economies.

This paper analyzes the determinants of individual attitudes towards environmental action by means of an original PLSPM model of Environmental Awareness-Social Capital-Action (EASCA). Estimates build on survey data on 34.612 individuals from 42 different countries, as provided in the fifth wave of the World Value Survey (2005-2009). Besides the benchmark global estimates, we perform subsample analysis for developed and developing countries, as well as country analyses for four major economies: China, India, Germany and the United States. Doing so allows us to underline structural differences between countries or main groups of countries. In particular, we find that environmental awareness and trust in not-for profit organizations are the main determinants of individual action in support of environmentally friendly policies. The quality of environmental policymaking should improve if these cultural differences are better understood and taken into account.

İnsanoğlu varoluşundan bu yana çevreyi etkileyerek yaşamını sürdürmüş, 18. Yüzyılda gerçekleştirilen Sanayi Devrimi ile birlikte insan kaynaklı çevresel etki boyut değiştirmeye başlamıştır. Sanayi Devrimi' nin getirdiği hızlı üretim ve tüketim kalıpları ile birlikte ortaya çıkan çevre sorunları 1970' li yıllara kadar hissedilir düzeylere ulaşmamış, 1970' li yıllarla beraber ozon tabakasının delinmesi gibi olgularla kendini göstermeye başlamıştır. Bu süreci takiben 1987 yılında yayınlanan `Brundtland Raporu` ile birlikte gündeme gelen `sürdürülebilir kalkınma` yaklaşımıyla çevre sorunlarının çözüme ulaştırılması amaçlanmıştır. Bu çalışmada, sürdürülebilir kalkınma bağlamında çevre ve çevre sorunlarının önemi vurgulanmış, Türkiye ve AB ülkelerinin sürdürülebilir kalkınmanın çevre boyutuna ağırlık verilerek karşılaştırması yapılmaya çalışılmıştır. Yapılan karşılaştırma ile birlikte Türkiye' nin sürdürülebilir kalkınmada AB ülkelerinin gerisinde olduğu sonucuna varılmıştır. Bununla birlikte, AB ülkelerinin de tam olarak sürdürülebilir kalkınmayı gerçekleştiremediği anlaşılmış ve son yıllarda Türkiye ve AB ülkelerinin sürdürülebilir kalkınma için çaba sarf ettiği gözlenmiştir. Throughout the history, humankind has affected its environment, and following Industrial Revolution, the size of this effect increased dramatically. Even though the environmental problems caused by the rapid production and consumption patterns that have arisen with the Industrial Revolution have not reached critical levels until the 1970s, the ozone layer depletion in 1970s revealed the emergency of these problems. Thus, the `Brundtland Report` was published in 1987 to solve the environmental problems through `sustainable development` approach. In this study, we focus on the environment and environmental problems in the context of sustainable development and we have compared the environment sustainable development with environmently parameters of Turkey and EU. With the comparative analyze, we have observed that Turkey has disadvantages in contrast with the EU countries. In addition, it has also observed EU countries have not accurately execute the sustainable development and Turkey and EU countries have been made progress in recent years. 242

Over the last years the European Union (EU) has implemented ambitious climate and energy targets for 2020, i.e. the 2020 Climate and Energy Package (Package), to become a highly efficient, low carbon economy. The Package assigns binding renewable energy sources (RES) target for each EU member countries. Indeed costs to reach Package's targets vary among EU countries, given heterogeneity among regions and different instruments implemented to spur RES deployment. The aim of our paper is to provide a policy tool for EU policy makers in the negotiation process that assigns achievable quantitative targets according to which countries are not inclined to deviate from the agreement. We compute potential extra costs that may arise when some EU countries fail to reach the assigned objective within the Package with reference to RES target. More generally, our simulation model is an instrument that allows EU policy makers to assess incentives that countries might have to participate or not to the environmental agreements. Our analysis shows that partial participation to the Package produces inefficiencies by rising costs for other participating countries to the environmental agreement. Finally, we propose a new policy mechanism based on progressive sanctions for countries that do not meet their national targets, which are proportional to the monetary value of the penalty they impose to the rest of the EU countries with their opportunistic behavior.

In this paper, we present a distributional impact analysis of climate change policies envisaged or implemented to reduce greenhouse gas emissions in Senegal. We consider policies implemented in developed countries and their impact on a developing country. Moreover, we simulate the diminishing productivity of agricultural land as a potential result of climate change (CC) for Senegal. This country is exposed to the direct consequences of CC and is vulnerable to changes in world prices of energy, given its lack of substitution capacity. Past researches have shown that countries with this profile will bear the greatest burden of CC and its mitigation policies. Our results reveal slight increases in poverty when the world price of fossil fuels increases and the negative impact is further amplified with decreases in land productivity. However, subsidizing electricity consumption to protect consumers from world price increases in fossil fuels is shown to provide a weak cushion to poverty increase. © 2013 by the authors., SCOPUS: ar.j, info:eu-repo/semantics/published

"The transport sector needs to go through an extended process of decarbonisation to counter the threat of climate change. Unfortunately, the International Energy Agency forecasts an enormous growth in the number of cars and greenhouse gas emissions by 2050. Two issues can thus be identified: (1) the need for a new methodology that could evaluate the policy performances ex-ante and (2) the need for more effective policies. To help address these issues, we developed an Agent-Based Model called Mobility USA aimed at: (1) testing whether this could be an effective approach in analysing ex-ante policy implementation in the transport sector; and (2) evaluating the effects of alternative policy scenarios on commuting behaviours in the USA. Particularly, we tested the effects of two sets of policies, namely market-based and preference-change ones. The model results suggest that this type of agent-based approach will provide a useful tool for testing policy interventions and their effectiveness."

This Systematic Country Diagnostic (SCD) is designed to assess the key constraints and opportunities facing Mozambique as it strives to sustain robust growth and macroeconomic stability while accelerating poverty reduction and promoting greater economic inclusiveness. The SCD is organized into six chapters. Chapter two describes the evolution of poverty and inequality, explores their regional and demographic dimensions, and identifies strategies for accelerating poverty reduction. Chapter three analyzes key economic constraints and opportunities, identifying the drivers of recent growth, describing developments in the real sector and assessing emerging challenges associated with the rise of the extractive industries. Chapter four examines the inclusiveness of growth, presenting an in-depth analysis of the labor market, the social sectors and the ongoing urbanization process. Chapter five discusses fiscal, institutional, political, social and environmental risks to the sustainability of growth and poverty reduction. Chapter six completes the analysis by identifying a set of priority objectives for accelerating progress on the World Bank’s twin goals of eliminating extreme poverty and promoting shared prosperity.

This paper examines the effect of air pollution on labor supply in Lima, Peru. It focuses on fine particulate matter (PM2.5), an important pollutant for health according to the medical literature, and shows that moderate levels of pollution reduce hours worked for working adults. The research design takes advantage of rich household panel data in labor outcomes to address omitted variables and allows investigation of whether the response to air pollution is non-linear. The analysis finds that the effect of moderate pollution levels on hours worked is concentrated among households with susceptible dependents, that is small children and elderly adults, while the highest concentrations affect all households. This suggests that caregiving is likely a mechanism linking air pollution to labor supply at moderate levels. Further evidence of this mechanism is provided using DHS data on children morbidity for the same time period. Finally, no evidence is found of intra-household attenuation behavior. For instance, there is no re-allocation of labor across household members, and earnings decrease with air pollution.

Bleak short-term economic outlook raises the risk that social and environmental achievements may not be sustained. The changed economic circumstances have exposed shortcomings in Brazil’s development model, epitomized by the struggle to achieve a sustainable fiscal policy. Against this background, some Brazilians are now asking whether the gains of the past decade might have been an illusion, created by the commodity boom, but unsustainable in today’s less forgiving international environment. Brazil thus finds itself at an important juncture and, to a certain extent, the policy course set today will determine whether the country can sustain the gains of the past and return to a path of solid, inclusive and environmentally sustainable growth. This Systematic Country Diagnostic offers a contribution to the debate about Brazil’s future development.

Çevre politikası araçları ve kaynak kullanımına ilişkin akademik literatüre katkıda bulunmayı hedefleyen bu tezde deneysel yöntemler izlenmektedir. Bu amaçla, Türkiye'deki küçük ölçekli balıkçılıkla uğraşan toplulukların üyeleriyle çerçevelenmiş saha deneyleri yapılmış ve çevre politikası araçlarının etkin olabilmesi için bu araçların davranışsal etkilerinin de incelenmesi gerekliliği vurgulanmıştır. Çerçevelenmiş saha deneyleri, ceza, piyasa ve iletişim koşulları altında kaynak kullanımının nasıl değiştiğini incelemektedir. Deneylerde baz, ceza, piyasa ve iletişim koşulları için 12'şer oturum düzenlenmiş, her oturumda ise beşer katılımcı yer almıştır. Çalışmada iletişim ve ceza koşullarının kaynak kullanımını azaltmada etkili olduğu görülmüştür. Elde edilen sonuçlar, bir yandan da ceza ve piyasa koşulları arasında bir çerçeveleme farkı olduğunu göstermektedir. Kaynak kullanımı, bir ekonomik teşvik ceza olarak çerçevelendiğinde, aynı teşviğin piyasa diliyle çerçevelenmesine kıyasla daha düşük seviyede olmaktadır. Bu bulgu ise, kurumsal bağlamın bireylerin davranışı üzerindeki etkisini ve aynı büyüklükte bir ekonomik teşviğin farklı kurumsal bağlamlarda farklı performans gösterebileceğini ortaya çıkarmaktadır. Sonuçlar ayrıca piyasa temelli muhakemenin, kaynak kullanımında beklenmedik sonuçlara yol açabileceği hipotezini de destekler niteliktedir. Bunlar dikkate alınmadığında, çevre politikaları geri tepebilir. The aim of this dissertation is to contribute to the vast literature on environmental policy instruments and resource use dilemmas via an experimental approach. Based on framed field experiments conducted with members of small-scale fishing communities in Turkey, the study focused on the effects of different policy interventions on cooperation, and demonstrated that analyzing the behavioral impact of environmental policy instruments is crucial to ensure effectiveness. The framed field experiments were used to evaluate the effects of an external fine, a market-like incentive, and a communication condition in a resource use dilemma. The experiments involved twelve sessions for each treatment (baseline, fine, market and communication treatments), with five participants per session. Both communication and a symbolic (low) fine were found to be effective in reducing extraction. The findings further imply that there is a framing effect between the fine and market conditions. When the economic incentive was framed as a fine as opposed to a market-like mechanism, it reduced extraction more. This implies that institutional context matters to individual behavior, and that the same level of economic incentive may perform differently if the institutional context is changed. This finding also supports the hypothesis that market reasoning may lead to unintended outcomes in resource use dilemmas. If this is not taken into account, environmental policies may backfire. 337

Bu tezde, üç oyuncu arasındaki karbon salınımlarının düzenlenmesi, tekrarlı bir oyun olarak modellenmektedir. Karbon emisyonu sağlayan iki ülkeyi ve ülkeler üzerinde cezalar empoze ederek karbon emisyon seviyesinin kontrolünden sorumlu olan bağımsız bir regülatörü, bu stratejik ilişkide faal olan oyuncular olarak tanımlıyoruz. Bu çalışmamızda, sıfır-determinantlı stratejileri kullanan regülatör, ülkelerin beklenen kazançları arasında doğrusal bir ilişki kurmak ve elde etmek için tek taraflı bir avantaj kazanır. Regülatör, sosyal bir planlayıcı olarak, uzun vadeli kazancını sabit bir değere ayarlayabilir. Analizimize, regülatör için en iyi sıfır-determinantlı kazancı veren optimal sıfır-determinantlı stratejiyi bulmak için bir yöntem önererek devam etmekteyiz. Ayrıca, regülatöre basit bir sıfır-determinantlı stratejiyi kolayca belirlemesi ve optimal bir sıfır-determinant kazancı elde etmesini sağlaması amacıyla ülkeler için kolay anlaşılır ve sade bir maliyet yapısı önermekteyiz.Anahtar Kelimeler: Sıfır-determinantlı stratejiler, Karbon salımmı, Tekrarlı oyunlar In this thesis, the regulation of carbon emissions between three players is modeled as an iterated game. We let the participants be two countries providing carbon emissions and an independent regulator responsible for controlling the carbon emission levels by imposing punishments on countries. In our setting, using a zero-determinant (ZD) strategy, the regulator gains a unilateral advantage to enforce a linear relation between the expected payoffs of countries. The regulator can also set his long-run payoff to a fixed value as a social planner. We continue our analysis by proposing a method to find the optimal ZD strategy for the regulator. Furthermore, we propose an intuitive and simple cost structure for the countries in order to enable the regulator to employ an uncomplicated ZD strategy and attain a maximal ZD payoff.Keywords: Zero-determinant strategies, Carbon emissions, Iterated games 45

Sanayi devrimi sonrasında artan üretim ve tüketim sürecinde ve ülkelerin kalkınma yarışında çevre sınırsız bir kaynak olarak görülmüştür. Özellikle İkinci Dünya Savaşı'ndan sonraki süreçte ülkelerin kalkınmalarında sanayileşmeyi amaç edinmeleri ve ekonomik büyüme üzerinde şekillenen kalkınma politikalarında çevre korumaya önem verilmemiştir. Bölgesel olmaktan çıkıp gezegen sorunu haline gelen çevre sorunları ülkelerin uyguladığı kalkınma politikaları sonucunda ortaya çıkmıştır. Çevrenin kaynak olarak kullanılması küresel ısınma, iklim değişikliği, ormansızlaşma, biyolojik çeşitliliğin azalması gibi küresel çevre sorunlarına neden olmuştur.Çevre sorunlarının uluslararası alanda tartışılmaya başlaması ve kaynakların sınırlı olması yeni bir kalkınma anlayışını gerekli kılmıştır. İlk kez Brundtland raporunda yer alan sürdürülebilir kalkınma, ekonomi ve doğal kaynaklar arasında denge kurmayı ve gelecek nesillerin ihtiyaçlarını karşılayabilme yeteneğini ortadan kaldırmadan şimdiki neslin ihtiyaçlarını karşılamak olarak tanımlanmıştır.Bu çalışmada kalkınmanın sürdürülebilir kalkınmaya dönüşme süreci ele alınarak, kalkınma politikaları ve çevre ilişkisine yer verilmiştir. Uygulanan politikaların çevreye olan etkileri ve Türkiye'de çevre politikaları değerlendirilmektedir.Anahtar Kelimeler: Kalkınma, Sürdürülebilir Kalkınma, Çevre, Türkiye‟de Çevre Politikaları In the process of increased production and consumption after the Industrial Revolution, and Countries in development race, the environment was seen as an unlimited resource. Especially after the Second World War, in the development of the countries, the importance of protecting the environment in development policies was not given due to the purpose of industrialization. Environmental problems that have become a planet problem the result of development policies implemented by the countries. The result of using the environmental as a source arose global environmental problems such as global warming, climate change, deforestation, and the reduction of biological diversity. The debate of environmental issues on the international scene and the limited availability of natural resources revealed a new concept of development. Sustainable development in the Brundtland report for the first time was defined as balancing the economy and natural resources and meeting the needs of the present generation without abolishing the ability to meet the needs of future generations. In this study, the process of development into sustainable development was considered, and development policies and environmental relations were investigated. The environmental impacts of the policies implemented and the environmental policies in Turkey are evaluated.Key Words: Development, Sustainable Development, Environment, Environmental Policies in Turkey 114

The objective of the Country Environmental Analysis (CEA) is to assess the adequacy and performance of the policy, legal, and institutional framework for environmental management in Ukraine, in light of the decentralization process of environmental governance and wider reform objectives, and to provide recommendations to government to address the key gaps identified. Ukraine is the second largest country in Europe and has a population of 43 million, the majority of whom live in urban areas. It is a lower middle income country, with the services, industry and agriculture sectors being main contributors to the country’s Gross Domestic Product (GDP). Ukraine faces a number of environmental challenges, as identified in its National Environmental Strategy 2020 (NES). Key among these are: air pollution; quality of water resources and land degradation; solid waste management; biodiversity loss; human health issues associated with environmental risk factors; in addition to climate change. The scope of Ukrainian environmental legislation is quite broad and comprehensive (more than 300 legal acts) and covers most areas of environmental protection and natural resources management. However, the environmental legislation faces a number of weaknesses:The environmental legislation is largely declaratory in nature and does not have all the essential enforcement mechanisms for the implementation of legal acts and international agreements; Many of the acts are not coordinated with each other; and Legislation undergoes limited analysis of its impact—for example, no in-depth analysis such as Regulatory Impact Analysis is conducted for proposed pieces of legislation.

Bu çalışmada, karbon emisyonu vergisi gibi çevre politikasının işgücü piyasasına etkileri, teknolojinin içsel olduğu varsayımına dayalı bir model çerçevesinde incelenmiştir. Bu modelde, çevre politikasının işgücü piyasası üzerinde oldukça pozitif ve yapıcı etkileri olduğu sonucuna ulaşılmıştır. Model içerisinde, hem işgücü talebinin hem de ücretin arttığı varsayılmaktadır. Serbest piyasa koşullarında işgücü ücreti, modelde tahmin edildiği gibi, açıkça optimal ücret altındadır. Optimal piyasa koşullarında işgücü ücreti artan getiri oranına sahiptir. Model içerisinde temiz teknoloji ve nitelikli işgücü giderek artmaktadır, dolayısıyla işgücü ücretinin de artmakta olduğunu görmekteyiz. Geleneksel ekonomi anlayışıyla çelişen ve işgücü arzıyla işgücü ücreti arasında pozitif ilişki olduğunu savunan optimal ekonomi anlayışının kilit özelliği, temiz teknoloji ve vasıflı işçi arasındaki ilişkidir. Ayrıca, üretim fonksiyonunu Cobb-Douglas şeklinden sabit ikame esneklikli üretim fonksiyonu (CES) formuna değiştirsek dahi; üretim faktörleri arasındaki ikame esnekliğini dikkate almaksızın nitelikli işgücü ücretinin, enerji tasarruflu ekonomide aynı şekilde arttığını görüyoruz. Temiz enerji düzeyini arttırarak her iki işgücünün ücret düzeyini arttırabiliriz. Sonuç olarak temiz enerji üretimi, üretim faktörleri arasındaki ikame esnekliğini dikkate almaksızın ekonominin tamamına fayda sağlamaktadır.Anahtar Kelimeler: Çevre Ekonomisi, İçsel Teknoloji Değişikliği, İklim Değişikliği, İşgücü Piyasası. This thesis examines the effect of environmental policy, i. e. tax on carbon emission, on the labor market as assessed in a directed technology change environment. Considerably positive and constructive effect on the labor market is demonstrated by this model, as are increases in both demand and wage of labor. Labor wage in free market is clearly less than the optimal wage, as predicted in the model. Labor wage has an increasing rate of return in optimal market. Clean technology and skilled labor are increasing as a result of the model, at the same time we see that labor wage is also increasing. The relation between clean technology and skilled labor is the key property of the optimal economy which makes the relation between supply of labor and their wage positive which is at odds with traditional economics. It is also interesting to notice that even if we change the production function from Cobb-Douglas to CES form we get similar results, regardless of the elasticity of substitution between factors the skill premium is increasing in the energy saving technology. Increases in the level of clean energy resulted in increases in wages and labor. Clean energy is benefiting the whole economy regardless of the elasticity of substitution between input factors.Keywords: Climate Change, Directed Technology Change, Environmental Economics, Labor Market. 47

The effects of four environmental policy options for the reduction of pollution emissions, i.e. taxes, emission standards, auctioned permits and freely allocated permits, are analyzed. The setup is a real option model where the amount of emissions is determined by solving the firm's profit maximization problem under each policy instrument. The regulator solves an optimal stopping problem in order to find the critical threshold for policy adoptions taking into account revenues from taxes and auctioned permits and government spending. In this framework we find the ranking of the alternative policy options in terms of their adoption lag and social welfare. We show that when the output demand is elastic, emission standards are preferred to freely allocated permits. Taxes and auctioned permits are always equivalent in terms of their adoption lag and social welfare, and also equivalent to emission standards when the regulator redistributes revenues.

Orbay, Benan Zeki (Dogus Author) In this paper, we use a game theoretic model to analyze the trade-off between the attractiveness of FDI and the environmental damage caused by production under asymmetric information. In the first stage, the domestic developing country reveals the level of import tariff and pollution tax under information uncertainty about the environmental damage that the foreign firm can cause. The foreign firm from a developed country decides where to locate afterwards with complete information about its own damage. Results show that the developing country can be better off encouraging FDI if and only if the marginal damage of pollution is sufficiently low. The optimal level of pollution taxes attracting FDI is higher than the marginal damage of pollution. However, the optimal pollution tax without FDI can be lower than the marginal damage of pollution with sufficiently high demand in the developing country.

In most cases, pro-environmental behavior does not maximize individual interests, but mainly benefits other people or the environment. We propose that although acting on the basis of egoistic considerations may result in pro-environmental behavior, altruistic and biospheric considerations provide the most stable basis for pro-environmental behavior. We present two strategies to promote stable pro-environmental behavior. The first way is increasing the saliency of altruistic and biospheric values in specific situations, thereby reducing the relative strength of egoistic values. The second way is making the often "anti-environmental" egoistic values compatible with "pro-environmental" altruistic and biospheric values. We explain these options and translate it to possible interventions, policy implications, and follow-up research to promote "green" behavior.

In support of the Climate Change and Low Carbon Green Growth Program of Romania (LCGGP), the World Bank has prepared the current report with the aim of helping the Romanian Government to operationalize the strategic path chosen by the country for implementing its National Climate Change and Low Carbon Green Growth Strategy 2016-20302 (NSCC) and the associated 2016-2020 Action Plan for Climate Change (APCC). This includes some relevant institutional arrangements and Monitoring and Evaluation (M&E) activities for existing Climate Change (CC) related policies and measures, notably those derived from the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, plus the requirements for European Union (EU) Member States regarding the monitoring and evaluation of the EU-level climate and energy package and the Europe 2020 goals for a smart, sustainable and inclusive growth. It was recommended that the Romanian government should build upon current obligations for M&E of public policies, whilst recognizing that the M&E system initially established for the NSCC and APCC for Romania must not be considered as static, but rather as an on-going continuum that will evolve, expand and improve over time. The report highlights some key weaknesses in institutional capacity for CC-related M&E and identifies several sector-specific examples of areas for improvement. The report usefully reviews international good practices for the M&E of CC strategies and action plans under the headings of General good practice; Green Growth good practices; Special considerations for CC adaptation (including the selection of indicators), and; European examples (including short case studies on relevant M&E practices from Germany and France). In order to facilitate the necessary learning processes for policy-makers and other key stakeholders it is recommended that the Romanian government adopts a “theory-based” approach (in conjunction with the OECD DAC criteria) as the evaluation framework for the NSCC and APCC. The theory-based approach follows an iterative process of design, evaluation, and redesign based on lessons learned about whether specific interventions are successful or not, why they succeeded or failed and how they can be improved. The report concludes with numerous additional practical recommendations for development of a simple, affordable and cost effective M&E system for the NSCC and APCC. These recommendations are grouped into four categories: (i) general recommendations; (ii) recommendations for improving institutional arrangements; (iii) recommendations for developing a solid evaluation framework; and (iv) recommendations for reporting. Finally, to ensure a robust framework, the M&E and Reporting system should clearly define goals, indicators, responsibilities and communication strategies. It should facilitate continuous learning by policy-makers and other key stakeholders in order to underpin the long-term development of the knowledge and understanding needed to better design, implement and deliver future CC strategies and action plans for Romania.

The extractive industries (EI) sector occupies an outsize space in the economies of many developing countries. Economists, public finance professionals, and policy makers working in such countries are frequently confronted with issues that require an in-depth understanding of the sector. The objective of this volume is to provide a concise overview of EI-related topics these professionals are likely to encounter. The volume provides an overview of issues central to EI economics; discusses key components of the sector’s governance, policy, and institutional frameworks; and identifies the public sector’s EI-related financing obligations. Its discussion of EI economics covers the valuation of subsoil assets, the economic interpretation of ore, and the structure of energy and mineral markets. The volume maps the responsibilities of relevant government entities and outlines the characteristics of the EI sector’s legal and regulatory frameworks. Specific key functions of the sector are briefly discussed, as are the financial structures that underpin environmental and social safeguards; investment of public revenues generated from oil, gas, or minerals; as well as extractive-based economic diversification. The authors hope that decision makers in ministries of finance, international organizations, and other relevant entities will find the study useful to their understanding and analysis of the EI sector.

Effective environmental and social risk management in development policy financing (DPF) is central to achieving the World Bank’s goals of ending extreme poverty and promoting shared prosperity in a sustainable manner. If the World Bank is supporting far-reaching member country reforms that are intended to contribute to the twin goals, then it should seek to understand the impact of those reforms on the poor. It should also ensure that the country’s natural capital and long-term growth prospects will not be undermined. The objective of this learning product is therefore to assess the application of the elements of the World Bank operational policy (OP 8.60) governing DPF related to the implementation of the environmental and social risk management requirements of the policy, and identify lessons learned and good practices. The focus of the study is on Bank actions, policies, procedures, and guidance for environmental and social risk management, based largely on a desk-based portfolio review of a large, random sample of development policy operations (DPOs), complemented by assessment of other relevant documents, and interviews with key stakeholders. This approach requires the Bank to determine whether specific policies supported by a DPO are likely to have significant poverty and social or environmental effects. The Bank emphasized the potential of OP 8.60 to promote positive environmental and social development from the time the policy was approved in 2004.

Costa Rica stands out for being among the most politically stable, progressive, prosperous, and environmentally conscious nations in the Latin America and the Caribbean region. Its development model has brought important economic, social, and environmental dividends, with sustained growth, upward mobility for a large share of the population, important gains in social indicators, and significant achievements in reforestation and conservation. However, there are a number of development challenges that need to be addressed to maintain the country’s successful development path. This Systematic Country Diagnostic takes stock of the poverty, inequality, and growth trends, addressing the following questions: To what extent has the Costa Rican development model been inclusive? What has driven growth in Costa Rica in recent years, and what are the bottlenecks that need to be addressed? How sustainable is the development model of Costa Rica economically, socially, and environmentally?

During the past decade, Georgia’s pursuit of economic reforms led to impressive economic growth, capital inflow, and investments. It helped improve the business environment and infrastructure, strengthened public finances, and liberalized trade. Georgia achieved most of the human development targets of the Millennium Development Goals (MDGs). This progress did not result, however, in improved environmental governance or better management of natural resources. Nowadays, environmental policies are receiving increasing attention from Georgian policy and decision makers, recognizing that sustainable development is about a profound change of policies that drive systemic transformation of production, consumption, and behavioral patterns. The list of the country’s environmental challenges is long. Current policies and instruments lack the rigor to effectively reduce pressures on natural assets and protect public health from poor environmental quality. Georgia does not have a comprehensive assessment of the cost of inaction to environmental degradation linking it to economic growth, poverty, and shared prosperity. This is a central issue on which the Country Environmental Analysis (CEA) is focused. The main objective of the CEA is to assist the government, civil society, and development partners of Georgia in identifying and analyzing critical environmental constraints to sustainable growth and shared prosperity. Georgia’s Country Partnership Strategy for 2014-2017 points to lagging public policies on protecting the environment and natural resources, against impressive economic growth. It further highlights several areas needing attention, such as air and water quality, waste management, land and landscape management, and nature resource use and protection.