{"title":"Integrated Assessment of Climate Catastrophes with Endogenous Uncertainty: Does the Risk of Ice Sheet Collapse Justify Precautionary Mitigation?","authors":"Delavane Diaz","doi":"10.2139/ssrn.2628601","DOIUrl":"https://doi.org/10.2139/ssrn.2628601","url":null,"abstract":"Greenhouse gas policies confront the trade-off between the costs of reducing emissions and the benefits of avoided climate change. The risk of uncertain and potentially irreversible catastrophes is an important issue related to the latter, and one that has not yet been well incorporated into economic models for climate change policy analysis. This paper demonstrates a multistage stochastic programming framework for catastrophe modeling with endogenous uncertainty, applied to a benchmark integrated assessment model. This study moves beyond recent catastrophe or tipping point studies with arbitrary risk, instead investigating the specific threat of the uncertain collapse of the West Antarctic Ice Sheet (WAIS), characterized in accordance with recent expert elicitations, empirical results, and physical relationships. The stochastic DICE-WAIS model introduced here informs risk management strategies that balance uncertain future climate change impacts with the costs of mitigation investments today. This work finds that accounting for the consequences of the possible WAIS collapse in a stochastic setting with endogenous uncertainty leads to more stringent climate policy recommendations (increasing the CO2 control rate by an additional 4% of global emissions and raising the social cost of carbon by $10), reflecting the need to hedge against uncertainties with downside risk as well as pursue precautionary mitigation.","PeriodicalId":110280,"journal":{"name":"FEEM: Climate Change & Sustainable Development (Topic)","volume":"63 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123801642","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Rise and Fall of the Great Fish Pact Under Endogenous Risk of Stock Collapse","authors":"Adam N. Walker, H. Weikard, A. Richter","doi":"10.2139/ssrn.2622409","DOIUrl":"https://doi.org/10.2139/ssrn.2622409","url":null,"abstract":"Risk of stock collapse is a genuine motivation for cooperative fisheries management. We analyse the effect of an endogenously determined risk of stock collapse on the incentives to cooperate in a Great Fish War model. We establish that equilibrium harvest strategies are non-linear in stock and find that Grand Coalitions can be stable for any number of players if free-riding results in a total depletion of the fish stock. The results thus show conditions under which a Great Fish War becomes a Great Fish Pact. However, this conclusion no longer holds upon dropping the standard assumption that payoffs are evaluated in steady states. If payoffs in the transition between steady states are included, the increased incentives to deviate offset the increased benefits from cooperation due to the presence of endogenous risk and the Great Fish Pact returns to being a Great Fish War.","PeriodicalId":110280,"journal":{"name":"FEEM: Climate Change & Sustainable Development (Topic)","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-06-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114529773","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Greening Up or Not? The Determinants Political Parties’ Environmental Concern: An Empirical Analysis Based on European Data (1970-2008)","authors":"Benjamin Michallet, G. Gaeta, F. Facchini","doi":"10.2139/ssrn.2596575","DOIUrl":"https://doi.org/10.2139/ssrn.2596575","url":null,"abstract":"Why do parties offer environmental policies in their political programs? While a number of papers examine the determinants of citizens’ pro-environmental behaviour, we know little about the extent to which political parties adjust their platform towards environmentalism. We investigate this process through data provided by the Manifesto Project Dataset (CMP) for 20 European countries over the period 1970-2008. Following the literature on public concern towards environment, we examine economic, environmental and political determinants. Our findings provide evidence that political parties’ environmental concern is strongly correlated with their political ideology and with country-level economic conditions.","PeriodicalId":110280,"journal":{"name":"FEEM: Climate Change & Sustainable Development (Topic)","volume":"148 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127241740","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Passive Use Value of the Mediterranean Forest","authors":"Vladimir Otrachshenkoy","doi":"10.2139/ssrn.2511284","DOIUrl":"https://doi.org/10.2139/ssrn.2511284","url":null,"abstract":"In this study we estimate the passive use value of forest in different ecological zones in the Mediterranean region. We estimate these values for forests using meta-analysis. These estimates are used to reveal the annual monetary values per hectare for each country. The total annual amount of passive use value of the Mediterranean forest is about one billion international dollars. The estimated passive use value of the forest from this study can be used to account for the social welfare loss caused by fire, insects, diseases, biotic agents, and abiotic factors.","PeriodicalId":110280,"journal":{"name":"FEEM: Climate Change & Sustainable Development (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130802755","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Energy Poverty Alleviation and Climate Change Mitigation: Is There a Trade Off?","authors":"Shoibal Chakravarty, M. Tavoni","doi":"10.2139/ssrn.2245631","DOIUrl":"https://doi.org/10.2139/ssrn.2245631","url":null,"abstract":"Energy poverty alleviation has become an important political issue in the most recent years. Several initiatives and policies have been proposed to deal with poor access to modern sources of energy in many developing countries. Given the large number of people lacking basic energy services, an important question is whether providing universal access to modern energy could significantly increase CO2 emissions. This paper provides one of the few formal assessments of this problem by means of a simple but robust model of current and future energy consumption. The model allows mapping energy consumption globally for different classes of energy use, quantifying current and future imbalances in the distribution of energy consumption. Our results indicate that an energy poverty eradication policy to be met by 2030 would increase global final energy consumption by about 7% (or 19EJ). This is the same quantity of energy which would be added between now and 2030 by individuals with energy consumption above current European standards. The additional energy infrastructure needed to eradicate energy poverty would produce 16-131 GtCO2 over the 21st century and contribute at most 0.1C of additional warming.","PeriodicalId":110280,"journal":{"name":"FEEM: Climate Change & Sustainable Development (Topic)","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132903506","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
C. Carraro, L. Campagnolo, F. Eboli, E. Lanzi, R. Parrado, E. Portale
{"title":"Quantifying Sustainability: A New Approach and World Ranking","authors":"C. Carraro, L. Campagnolo, F. Eboli, E. Lanzi, R. Parrado, E. Portale","doi":"10.2139/ssrn.2200903","DOIUrl":"https://doi.org/10.2139/ssrn.2200903","url":null,"abstract":"This paper proposes a new tool to assess sustainability and make the concept of sustainable development operational. It considers its multi-dimensional structure combining the information deriving from a selection of relevant sustainability indicators belonging to economic, social and environmental pillars. It reproduces the dynamics of these indicators over time and countries. Then, it aggregates these indicators using a new approach based on Choquet’s integrals. The main novelties of this approach are indeed: (i) the modelling framework, a recursive-dynamic computable general equilibrium used to calculate the evolution of all indicators over time throughout the world, and (ii) the aggregation methodology to reconcile them in one aggregate index to measure overall sustainability. The former allows capturing the sector and regional interactions and higher-order effects driven by background assumptions on relevant variables to depict future scenarios. The latter makes it possible to compare sustainability performances, under alternative scenarios, across countries and over time. Main results show that the current sustainability at world level differs from what the traditional measure of well-being, the GDP, depicts, highlighting the trade-offs among different components of sustainability. Moreover, in the next decade a slight decrease in world sustainability may occur, in spite of an expected increase in world domestic product. Finally, dedicated policies increase overall sustainability, showing that social and environmental benefits may be greater than the correlated economic costs.","PeriodicalId":110280,"journal":{"name":"FEEM: Climate Change & Sustainable Development (Topic)","volume":"57 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132777946","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Bioenergy and CO2 Sequestration: Climate Policies Beyond Technological Constraints","authors":"Ruben Bibas, Aurélie Méjean","doi":"10.2139/ssrn.2192031","DOIUrl":"https://doi.org/10.2139/ssrn.2192031","url":null,"abstract":"This paper examines the role of electricity production from biomass with and without carbon capture and storage in sustaining low CO2 emission pathways to 2100. It quantifies the effect of the availability of biomass resources and technologies within a general equilibrium framework. Biomass-fed integrated gasification combined cycle technology is introduced into the electricity module of IMACLIM-R, a hybrid general equilibrium model. We assess the robustness of this technology, with and without carbon capture and storage, as a way of reaching the 550 ppm stabilization target. The impact of a uniform CO2 tax on energy prices and world GDP is examined, together with the structure of the electricity mix. The influence of additional climate mitigation policies, such as alternative recycling of tax revenues and infrastructure policies is also discussed.","PeriodicalId":110280,"journal":{"name":"FEEM: Climate Change & Sustainable Development (Topic)","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131299533","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
G. Fiorese, M. Catenacci, Elena Verdolini, V. Bosetti
{"title":"Advanced Biofuels: Future Perspectives from an Expert Elicitation Survey","authors":"G. Fiorese, M. Catenacci, Elena Verdolini, V. Bosetti","doi":"10.2139/ssrn.2162834","DOIUrl":"https://doi.org/10.2139/ssrn.2162834","url":null,"abstract":"This paper illustrates the main results of an expert elicitation survey on advanced (second and third generation) biofuel technologies. The survey focuses on eliciting probabilistic information on the future costs of advanced biofuels and on the potential role of Research, Development and Demonstration (RD&D) efforts in reducing these costs and in supporting the deployment of biofuels in Organisation for Economic Co-operation and Development (OECD) and non-OECD countries. Fifteen leading experts from different EU member states provide insights on the future potential of advanced biofuel technologies both in terms of costs and diffusion. This information results in a number of policy recommendations with respect to public RD&D strategies and is an important contribution to the integrated assessment modelling community.","PeriodicalId":110280,"journal":{"name":"FEEM: Climate Change & Sustainable Development (Topic)","volume":"137 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132203189","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Economic Growth and the Environment with Clean and Dirty Consumption","authors":"C. Orecchia, M. Tessitore","doi":"10.2139/ssrn.1915838","DOIUrl":"https://doi.org/10.2139/ssrn.1915838","url":null,"abstract":"This paper aims to verify the existence of the Environmental Kuznets Curve (EKC) or inverted U-shaped relationship between economic growth and environmental degradation in the context of endogenous growth. An important feature of this study is that the EKC is examined in the presence of pollution as a by product of consumption activities; also, pollution is a stock variable rather than a flow and tends to accumulate over time. In order to highlight the role of consumption on the environment, consumers do not consider directly pollution in the maximization problem and are assumed to choose between two different consumption types, characterized by a different impact on the environment (i.e. dirty and clean consumption). We find that substitution of dirty consumption with clean consumption alone is not sufficient to reduce environmental pollution. The result depends on the product differentiation and the cost to achieve it. From a social welfare perspective, more environmental awareness is unambiguously desirable when it generates less pollution. However, it could be that more environmental awareness leads to a lower level of social welfare depending on the costs of product differentiation and social marginal damage of pollution.","PeriodicalId":110280,"journal":{"name":"FEEM: Climate Change & Sustainable Development (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128956920","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Mantovani, G. Kirchsteiger, A. Mauleon, Vincent Vannetelbosch
{"title":"Myopic or Farsighted? An Experiment on Network Formation","authors":"M. Mantovani, G. Kirchsteiger, A. Mauleon, Vincent Vannetelbosch","doi":"10.2139/ssrn.1871709","DOIUrl":"https://doi.org/10.2139/ssrn.1871709","url":null,"abstract":"Pairwise stability (Jackson and Wolinsky, 1996) is the standard stability concept in network formation. It assumes myopic behavior of the agents in the sense that they do not forecast how others might react to their actions. Assuming that agents are farsighted, related stability concepts have been proposed. We design a simple network formation experiment to test these theories. Our results provide support for farsighted stability and strongly reject the idea of myopic behavior.","PeriodicalId":110280,"journal":{"name":"FEEM: Climate Change & Sustainable Development (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129806001","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}