Designing an effective small farmers scheme in France

The 2014 CAP introduced the Small Farmers Scheme (SFS), offering small farms the option of an unconditional annual lump-sum payment per farm replacing the standard first pillar direct payments. This paper assesses the acceptability in France of an extended version of the 2014 SFS for the post-2020 CAP: it includes conditions on farmers' environmental efforts and on salaried employment. The results of a discrete choice experiment conducted at the scale of France with 608 farmers receiving less than 15,000€ in first pillar payments show that an SFS with an environmental certification prerequisite is attractive to French small farmers, notably in the market gardening sector. We provide simula..

Environmental Economics

A biodiversity-employment framework to protect biodiversity

Protecting biodiversity matters for the sustainability transition, but nothing yet seems to be able to halt the rate of biodiversity loss. The promotion of green jobs fuels questionable ideas, among which that there are green vs non-green jobs, and that the latter can be progressively replaced by green jobs. The option of developing jobs that could act to offset environmental damage is also attractive. Based on a social-ecological approach and the "strong sustainability" paradigm, the paper develops and tests a three-dimensional framework to highlight the complex and multifaceted relationship between employment growth and biodiversity enhancement. Three case studies are investigated using fi..

Environmental Economics

Structural Transformation Options of the Saudi Economy Under Constraint of Depressed World Oil Prices

We implement the hybrid (energy-economy) recursive-dynamic multisector IMACLIM model with important adaptations to Saudi macroeconomics. We design two scenarios reflecting both the Saudi Vision 2030 economic development program and Nationally Determined Contribution (NDC) to greenhouse gas mitigation: Continuity of previous plans to expand energy-intensive activities under maintained energy-pricing policies, versus Transformation by economic diversification away from hydrocarbon-related activities and fiscal and energypricing reforms. We show that, compared to Continuity, Transformation improves activity, employment and public budget outlooks, while considerably abating the energy intensity ..

Environmental Economics

Labelling and Information Schemes for the Circular Economy

Circular Economy Labels and Information Schemes (CELIS) compose the group of labels, certifications, standards of information schemes that fully or partially address one or more resource efficiency or circular economy elements. CELIS can play an important role in fostering circular economy activities. They can empower market actors to distinguish and discriminate products based on environmental performance, which stimulates market development and innovation in resource efficient products and services. Information systems also enable better supply chain management and allow firms to identify environmental impacts and risks in their supply chains.This paper provides an overview of the current ..

Environmental Economics

Modulated fees for Extended Producer Responsibility schemes (EPR)

One of the key objectives of Extended Producer Responsibility (EPR) is to instigate design for the environment. In collective EPR schemes, the fee schedule set by Producer Responsibility Organisations (PROs) is typically quite simple and provides weak incentives for design change by producers. Fee modulation, changing fees paid by producers in a collective EPR scheme based on product design, can provide producers with stronger design incentives, but adds complexity to the system. The paper defines a classification for fee modulation (by criteria and methodology) and discusses potential challenges and opportunities. It concludes with key policy insights that can further stimulate this emergin..

Environmental Economics

Ausgestaltung der Ökoregelungen in Deutschland – Stellungnahmen für das BMEL : Band 1 – Abschätzung potenzieller ökologischer und ökonomischer Effekte auf Basis der Erstentwürfe

With the current reform of the Common agricultural policy (CAP), the EU aims to increase in particular the contribution of the agricultural sector to the protection of the climate, the environment and biodiversity in addition to income support. Therefore, the income support of the first pillar will be linked to compliance with 'extended conditionalities' and supplementary Eco-schemes will be introduced in the CAP’s first pillar from 01.01.2023 on. Farmers will receive additional payments if they participate voluntarily in the Eco-schemes. Furthermore, the EU wants to increase the flexibility of the agricultural policy and tailor it better to the needs of the different member states. For th..

Environmental Economics

Ausgestaltung der Ökoregelungen in Deutschland – Stellungnahmen für das BMEL : Band 2 – Schätzung der Inanspruchnahme der Regelun-gen auf Basis des Kabinettsentwurfes des GAPDZG

With the current reform of the Common agricultural policy (CAP), the EU aims to increase in particular the contribution of the agricultural sector to the protection of the climate, the environment and biodiversity in addition to income support. Therefore, the income support of the first pillar will be linked to compliance with 'extended conditionalities' and supplementary Eco-schemes will be introduced in the CAP’s first pillar from 01.01.2023 on. Farmers will receive additional payments if they participate voluntarily in the Eco-schemes. Furthermore, the EU wants to increase the flexibility of the agricultural policy and tailor it better to the needs of the different member states. For th..

Environmental Economics

Ausgestaltung der Ökoregelungen in Deutschland – Stellungnahmen für das BMEL : Band 3 – Erste Schätzung des Budgetbedarfes auf Basis der im GAPDZG festgelegten Ökoregelungen

With the current reform of the Common agricultural policy (CAP), the EU aims to increase in particular the contribution of the agricultural sector to the protection of the climate, the environment and biodiversity in addition to income support. Therefore, the income support of the first pillar will be linked to compliance with 'extended conditionalities' and supplementary Eco-schemes will be introduced in the CAP’s first pillar from 01.01.2023 on. Farmers will receive additional payments if they participate voluntarily in the Eco-schemes. Furthermore, the EU wants to increase the flexibility of the agricultural policy and tailor it better to the needs of the different member states. For th..

Environmental Economics

Ausgestaltung der Ökoregelungen in Deutschland – Stellungnahmen für das BMEL : Band 4 – Zweite Schätzung des Budgetbedarfes auf Basis der im GAPDZG festgelegten Ökoregelungen in Abhän-gigkeit von verschiedenen Optionen zur Ausgestaltung ; 2. überarb. Aufl.

With the current reform of the Common agricultural policy (CAP), the EU aims to increase in particular the contribution of the agricultural sector to the protection of the climate, the environment and biodiversity in addition to income support. Therefore, the income support of the first pillar will be linked to compliance with 'extended conditionalities' and supplementary Eco-schemes will be introduced in the CAP’s first pillar from 01.01.2023 on. Farmers will receive additional payments if they participate voluntarily in the Eco-schemes. Furthermore, the EU wants to increase the flexibility of the agricultural policy and tailor it better to the needs of the different member states. For th..

Environmental Economics

Ausgestaltung der Ökoregelungen in Deutschland – Stellungnahmen für das BMEL : Band 4 – Zweite Schätzung des Budgetbedarfes auf Basis der im GAPDZG festgelegten Ökoregelungen in Abhängigkeit von verschiedenen Optionen zur Ausgestaltung

With the current reform of the Common agricultural policy (CAP), the EU aims to increase in particular the contribution of the agricultural sector to the protection of the climate, the environment and biodiversity in addition to income support. Therefore, the income support of the first pillar will be linked to compliance with 'extended conditionalities' and supplementary Eco-schemes will be introduced in the CAP’s first pillar from 01.01.2023 on. Farmers will receive additional payments if they participate voluntarily in the Eco-schemes. Furthermore, the EU wants to increase the flexibility of the agricultural policy and tailor it better to the needs of the different member states. For th..

Environmental Economics

Sustainability impact assessments of free trade agreements: A critical review

Trade negotiations are frequently accompanied by sustainability impact assessment (SIA) to evaluate the potential economic, environmental, social and human rights effects of a possible agreement. SIAs can help promote environmental protection, and support the better integration of women, vulnerable populations, and small businesses into the global economy, as well as address growing concerns from civil society. They provide a critical opportunity for dialogue among stakeholders and trade policy makers, and thereby help to rebuild confidence in the trading system. However, SIA approaches ‒ including economic modelling, qualitative causal chain analysis and stakeholder consultations ‒ each..

Environmental Economics

Heard the News ? Environmental Policy and Clean Investments

We build a novel news-based index of US environmental policy and examine how it relates to clean investments. Extracting text from ten leading US newspapers over the last four decades, we use text-mining techniques to develop a granular index measuring the salience of US environmental policy (EnvP) over the 1981-2019 period. We develop further a set of additional measures, namely an index of sentiment on environmental policy, as well as various topic-specic indices. We validate our index by showing that it correctly captures trends and peaks in the evolution of US environmental policy and that it has a meaningful association with clean investments, in line with environmental regulations supp..

Environmental Economics

Financing Energy Innovation: Internal Finance and the Direction of Technical Change

Achieving the goals of the Paris Agreement and of climate neutrality by 2050 in the European Union will require mobilizing financial investments towards clean energy innovation. This study examines the role of internal finance (cash flows and cash holdings) and financing constraints for innovation in energy technologies. We construct a dataset for 1,300 European firms combining balance-sheet information and patenting activities in renewable (REN) and fossil-fuel (FF) technologies and estimate the sensitivity of patenting activities to firm’s internal finance. We use count estimation techniques and control for a large set of firm-specific characteristics and market developments in REN and F..

Environmental Economics

Cost-effective reduction of fossil energy use in the European transport sector: An assessment of the Fit for 55 Package

This paper surveys climate and energy policy in the EU transport sector covering the road, aviation, and shipping sectors. We summarise current policies, focusing on the Fit for 55 Package, and categorise them according to their targeted decision stage (consumption, investment, or research) and the type of instrument being used (e.g. cap-and-trade, tax, mandate, performance standard, or subsidy). Next, we analyse the cost-efficiency of the different policies and instruments. We find that they address a range of market inefficiencies, but that there are still a number of aspects that can further improve the cost-effectiveness of current EU climate policies in the transport sector. For example..

Environmental Economics

A sound environment: health effects of traffic noise mitigation

This study investigates the health effects of a nationwide program that provided noise mitigation to dwellings. The analysis uses hospitalization records and a difference-in- differences model that compares residents in treated homes to those with similar at- tributes in untreated homes. Results show that noise mitigation measures lower the risk of cardiovascular diseases by 10% after seven years, with effects driven by reduced risk of hypertension. Health effects are larger among the population exposed to higher baseline noise levels. These findings suggest that implementing similar noise mitigation measures will produce meaningful health benefits.

Environmental Economics

Carbon leakage and agriculture: A literature review on emissions mitigation policies

The risks of carbon leakage associated with climate policies in the agricultural sector remains under-researched. Studies to date suggest that carbon pricing policies implemented by a single country, or small group of countries, reduce global emissions but also affect the international competitiveness of these countries’ agricultural sectors and induce carbon leakage. While carbon leakage can be prevented with trade-related measures that adjust emissions prices at the border, such measures applied in developed countries could potentially lead to significant welfare losses for developing countries that heavily rely on agricultural exports. That said, important caveats apply to the reviewed ..

Environmental Economics

Global assessment of the carbon leakage implications of carbon taxes on agricultural emissions

Carbon leakage arises when emission reductions in countries applying a carbon tax are offset, partially or completely, by emission increases in countries that do not apply the tax or any other greenhouse gas (GHG) mitigation policies. Analysis using the MAGNET computable general equilibrium model indicates that a carbon tax always lowers global GHG emissions from agriculture, even when it is applied in a small group of countries, provided that producers facing the tax can make use of GHG abatement technologies. This suggests that mitigation policies should be considered in conjunction with investments in research and development on abatement practices and technologies. When a small number of..

Environmental Economics

Developing consumption-based emissions indicators from Agriculture, Forestry and Land-use (AFOLU) activities

Understanding consumption-based emissions from Agriculture, Forestry and Land-use (AFOLU) activities is important in developing climate policy for the sector. This paper proposes a new methodology to construct indicators – CBAFOLU indicators ‒ to provide estimates of greenhouse gas (GHG) emissions arising from AFOLU activities (including fisheries) in the global supply chain of finished products. The CBAFOLU indicators identify the countries where emissions are generated and the countries where the goods that “embody” these emissions are eventually consumed. CBAFOLU indicators are provided for bilateral flows of emissions for 65 countries over 2005-15. The indicators also break down ..

Environmental Economics

Understanding countries’ net-zero emissions targets

This paper analyses net-zero emissions targets adopted in law, proposed in legislation, or reflected in policy documents in 51 countries and the EU to better understand their characteristics, similarities and differences. It examines countries’ experiences with translating net-zero targets into near-term plans and analyses four case studies to show how countries develop and implement different pathways to net-zero. This paper also explores the potential role and associated risks, both for individual countries and globally, of using international carbon markets to help achieve countries’ net-zero targets. The paper concludes that countries are adopting diverse approaches to their net-zero..

Environmental Economics

Understanding reporting and review under Articles 6 and 13 of the Paris Agreement

Reporting and review requirements under the Paris Agreement include provisions under Article 13 relating to the implementation and achievement of Parties’ Nationally Determined Contributions (NDCs). Draft texts relating to Article 6.2 relating to Parties’ use of cooperative approaches also include provisions on reporting and review. This document identifies and analyses issues related to the interplay of relevant reporting and review requirements under both Article 13 and Article 6 of the Paris Agreement, as it is important to improve complementarity and ensure consistency between the two sets of reporting and review provisions, as well as to meet the already-agreed principles governing ..

Environmental Economics

Enjeux climat : réussir la transition en Afrique

L’Afrique possède de nombreux atouts pour maintenir une empreinte carbone faible tout en assurant son décollage économique. Une trajectoire de transition juste, conciliant les impératifs socio-économiques et climatiques, est possible. Elle nécessitera cependant un engagement fort des parties prenantes, africaines et internationales, en faveur des questions climatiques. Une mobilisation technique et financière accrue des États africains, des bailleurs de fonds et des banques publiques de développement africains et internationaux, et de tous les acteurs financiers du continent, permettra de financer et d’accompagner l’innovation climatique en plein essor sur le continent.

Environmental Economics

Carbon Pricing and Power Sector Decarbonisation: Evidence from the UK

Decreasing greenhouse gas emissions from electricity generation is crucial to tackle climate change. Empirically, however, little is known about the effectiveness of existing economic instruments in the power sector. This paper examines the impact of the UK Carbon Price Support (CPS), a carbon tax implemented in the UK power sector in 2013. Relative to a synthetic control unit built from other European countries, I find that emissions from the UK power sector declined by 20 to 26 percent per year on average between 2013 and 2017. The tax operated via three mechanisms: a decrease in emissions at the intensive margin; the closure of some high-emission plants at the extensive margin; and a high..

Environmental Economics

North Dakota Lignite Energy Industry Workforce

Environmental Economics

Preventing single-use plastic waste: Implications of different policy approaches

Single-use plastics constitute approximately half of global plastic waste generation. Their use in consumer goods and packaging has been the focus of recent waste prevention policy due to the importance of the volumes of waste generated and the frequency with which these materials are littered. To address several externalities that emerge across the life-cycle of single-use plastics, multiple policies can be combined to constitute an effective policy mix. In several markets, market-based policy instruments and policy bans have helped to curb waste generation and littering of single-use plastics. However, the effectiveness of these interventions depends to an important extent on whether envir..

Environmental Economics

Greening international aviation post COVID-19: What role for kerosene taxes?

This paper discusses the contribution that kerosene taxes could make to decarbonising international air travel post COVID-19. Reaching climate neutrality by mid-century requires that all sectors, including aviation, cut emissions strongly. The paper argues that clarity on decarbonisation targets, including through carbon price signals in the form of kerosene taxes, will support an orderly transition in aviation. A gradually increasing tax on kerosene can strengthen the incentives for investment and innovation in clean aviation technologies. Taxing kerosene would also provide implementing countries with tax revenues that could be used to support clean investment and innovation, while addressi..

Environmental Economics

With a little help from my friends: Debt renegotiation and climate change

The economic crisis from the Covid-19 pandemic has generated a fall in tax revenues and an increase in the need for public spending in most economies throughout the world. This situation has led to a substantial increase in the sovereign debt levels and has dramatically reduced the fiscal space of governments. For upper- middle-income countries (UMICs), current access to financing is limited and this can potentially limit the space for climate action in the short and medium run. However, delaying climate action can generate a negative signal on fiscal sustainability due to the physical and transition risks of climate change. Unsustainable production practices will result in a deterioration o..

Environmental Economics

Developing Countries’ Macroeconomic Exposure to the Low-carbon Transition

This paper aims at providing estimates of countries’ macroeconomic exposures to the low-carbon transition. We develop a method to evaluate countries’ external, fiscal and socio-economic exposure, and, considering their capacity to adapt their productive structure, we analyse countries’ vulnerabilities and risks in these different dimensions.

Environmental Economics

Preferences For The Far Future

Both research and anecdotal evidence suggest that people care about long-run environmental outcomes, but often fail to act sustainably, endangering environmental stability. For a large population sample, we show that people substantially value the environment intrinsically, i.e., even after their own and their kin’s lifespan. Willingness-to-pay for very long-run environmental benefits not experienced by the respondent is similar to that of short-run benefits, experienced by the respondent. However, adding a cooperation problem through uncertainty about other people’s preferences significantly decreases participants’ willingness-to-pay for both time frames, with respondents being pessim..

Environmental Economics

Irrigation Organizations: Water Storage and Delivery Infrastructure

In 2018, 40 percent of all water applied to irrigated cropland came from an off-farm water source. Irrigation districts, ditch companies, acequias, and other water delivery organizations use infrastructure such as canals, reservoirs, and turnouts to transport, store, and deliver off-farm water to farms and ranches. This infrastructure is a critical part of an organization’s ability to meet the water needs of irrigated agriculture. The U.S. Department of Agriculture’s 2019 Survey of Irrigation Organizations is a nationally representative review of the water management organizations that deliver water to farms or influence on-farm groundwater use. This report leverages these survey data to..

Environmental Economics

Modelling Cycles in Climate Series: the Fractional Sinusoidal Waveform Process

The paper proposes a novel model for time series displaying persistent stationary cycles, the fractional sinusoidal waveform process. The underlying idea is to allow the parameters that regulate the amplitude and phase to evolve according to fractional noise processes. Its advantages with respect to popular alternative specifications, such as the Gegenbauer process, are twofold: the autocovariance function is available in closed form, which opens the way to exact maximum likelihood estimation; secondly the model encompasses deterministic cycles, so that discrete spectra arise as a limiting case. A generalization of the process, featuring multiple components, an additive `red noise' component..

Environmental Economics