{"title":"Could the environment be a normal good for you and an inferior good for me? A theory of context-dependent substitutability and needs","authors":"Marion Dupoux , Vincent Martinet","doi":"10.1016/j.reseneeco.2022.101316","DOIUrl":"10.1016/j.reseneeco.2022.101316","url":null,"abstract":"<div><p>Theoretical models often assume the environment to be a normal good, irrespective of one’s income. However, a priori, nothing prohibits an environmental good from being normal for some individuals and inferior for others. We develop a conceptual framework in which private consumption and an environmental public good act as substitutes or complements for satisfying different needs. Subsequently, the environment can switch between normal and inferior depending on one’s income and environment and corresponding prevalent needs. If the environment is inferior for some range of income, then the willingness to pay for environmental preservation becomes non-monotonic with respect to income. We discuss the relevance of our framework in the context of (income-adjusted) unit benefit transfers, dual-rate discounting and the Environmental Kuznets curve.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765522000331/pdfft?md5=7a3e53d18f8804ab32d58bde633f4c58&pid=1-s2.0-S0928765522000331-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42808865","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Corporate social responsibility, social optimum, and the environment-growth tradeoff","authors":"Juin-Jen Chang , Jhy-Hwa Chen , Ming-Fang Tsai","doi":"10.1016/j.reseneeco.2022.101311","DOIUrl":"10.1016/j.reseneeco.2022.101311","url":null,"abstract":"<div><p>This paper examines the implications of environmental corporate social responsibility<span> (CSR) for the environment-growth tradeoff and social optimum in a dynamic general equilibrium growth model. We show that environmental CSR activity loosens the tradeoff between the environment and growth, but it cannot achieve the social optimum. Firm participation in environmental CSR induces the perceived CSR of green consumers and increases their willingness to pay. Because the environmental CSR promotes more consumption and increases growth, the environment-growth tradeoff loosens up in the competitive equilibrium. However, to translate the CSR perceived benefits into their profits, firms need some degree of monopoly power to set their prices to capture the stronger demand. CSR is thus promoted as a marketing strategy to help companies achieve their competitive advantage, and becomes a way of product differentiation in the environment of monopolistic competition. Since monopoly power serves as a catalyst, CSR alone cannot achieve the first-best optimum in terms of the environment and growth by fully removing the distortions caused by market imperfection.</span></p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48491294","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Lorenzo Montrone , Jan Christoph Steckel , Matthias Kalkuhl
{"title":"The type of power capacity matters for economic development – Evidence from a global panel","authors":"Lorenzo Montrone , Jan Christoph Steckel , Matthias Kalkuhl","doi":"10.1016/j.reseneeco.2022.101313","DOIUrl":"10.1016/j.reseneeco.2022.101313","url":null,"abstract":"<div><p>We examine the relationship between different types of power investments and regional economic dynamics. We construct a novel panel dataset combining data on regional GDP and power capacity additions for different technologies between 1960 and 2015, which covers 65% of the global power capacity that has been installed in this period. We use an event study design to identify the effect of power capacity addition on GDP per capita, exploiting the fact that the exact amount of power capacity coming online each year is determined by random construction delays. We find evidence that GDP per capita increases by 0.2% in the 6 years around the coming online of 100 MW coal-fired power capacity. We find similar effects for hydropower capacity, but not for any other type of power capacity. The positive effects are regionally bounded and stronger for projects on new sites (green-field). The magnitude of this effect might not be comparable to the total external costs of building new coal-fired power capacity, yet our results help to explain why policymakers favor coal investments for spurring regional growth.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765522000306/pdfft?md5=55674c56ec6b1c350bfccf83aa2e39d3&pid=1-s2.0-S0928765522000306-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44652558","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Non-monetary incentives for sustainable biomass harvest: An experimental approach","authors":"May Attallah , Jens Abildtrup , Anne Stenger","doi":"10.1016/j.reseneeco.2022.101317","DOIUrl":"10.1016/j.reseneeco.2022.101317","url":null,"abstract":"<div><p>In this article, we use a contextualized lab experiment to test the effect of non-monetary incentives that can guide harvest professionals into adopting new sustainable harvesting practices. First, we test the effect of signing a declaration that commits wood buyers who voluntarily sign it to act in a sustainable manner. Second, we test the effect of priming by activating a concept of sustainability on subjects’ behaviour. Our results provide evidence that presenting a declaration to sign is effective in inducing subjects to act in a sustainable manner when personal and collective interests are not aligned and there are financial incentives to make decisions that are against environmental sustainability. However, sustainability priming does not have a significant impact on subjects’ behaviour. From a public policy point of view, a declaration is an effective tool and easy to implement by institutions aiming at fostering pro-environmental behaviour.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47465911","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"An economic model of vehicle-to-grid: Impacts on the electricity market and consumer cost of electric vehicles","authors":"Mads Greaker , Cathrine Hagem , Stef Proost","doi":"10.1016/j.reseneeco.2022.101310","DOIUrl":"10.1016/j.reseneeco.2022.101310","url":null,"abstract":"<div><p>Higher battery storage capacity in electric vehicles (EV) implies less need for inconvenient recharging during long trips and increases the potential gains from vehicle-to-grid (V2G) electricity supply. We present an analytical model for the intertwinement of the consumers’ choice of battery capacity and the electricity market. We show that V2G increases the consumers’ choice of battery capacity, and it may reduce the cost of owning an EV vis-à-vis a traditional car. Furthermore, V2G alleviates the capacity pressure on peak hours, and thereby reduces the need for investment in generating capacity, saving social costs. Moreover, V2G may make the difference in electricity prices between peak and off-peak hours smaller, potentially increasing social surplus further. Based on a future scenario for the Belgian electricity market, we provide a numerical illustration indicating that the savings might be substantial.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46468764","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Catching up and falling behind: Cross-country evidence on the impact of the EU ETS on firm productivity","authors":"Nicolas Koch , Michael Themann","doi":"10.1016/j.reseneeco.2022.101315","DOIUrl":"https://doi.org/10.1016/j.reseneeco.2022.101315","url":null,"abstract":"<div><p>This paper identifies the impact of the European Union Emissions Trading System<span> (EU ETS) on firm productivity. We estimate a stylized version of the neo-Schumpeterian productivity model to differentiate dynamic forces of productivity convergence from the policy effect of the EU ETS depending on the level of firms’ technological advancement. The identification is based on a difference-in-differences approach exploiting the incomplete participation requirements of the EU ETS and the rich panel structure of a representative dataset for firm-level total factor productivity (TFP) in eight EU countries from 2002 to 2012. We show that the policy effect on TFP is nonlinear in the distance to the technological frontier within the industry. The EU ETS spurs productivity among firms close to the frontier but slows down catch-up growth among laggard firms.</span></p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91733708","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pedro Naso , Ozgun Haznedar , Bruno Lanz , Tim Swanson
{"title":"A macroeconomic approach to global land use policy","authors":"Pedro Naso , Ozgun Haznedar , Bruno Lanz , Tim Swanson","doi":"10.1016/j.reseneeco.2022.101302","DOIUrl":"10.1016/j.reseneeco.2022.101302","url":null,"abstract":"<div><p>It is important to dedicate substantial parts of the global land supply to public good uses in the 21st century, for purposes of climate change management and biodiversity provision. But will it also be possible to meet the food requirements of 12 billion people while doing so? Using a macroeconomic model (MAVA), we demonstrate that it may be possible to provide both for food requirements and environmental services in the long run. We first show that it may be possible to provide for food requirements with very substantial constraints on the amount of land used in agriculture with relatively minor welfare losses. We then show that global policies that re-allocate labour across sectors may have the capacity for directing the economy toward reduced reliance on land in agriculture. Focusing on land management, research and development, and fertility choices may be the best way to meet these combined goals.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42992214","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The economics of climate change with endogenous preferences","authors":"Linus Mattauch , Cameron Hepburn , Fiona Spuler , Nicholas Stern","doi":"10.1016/j.reseneeco.2022.101312","DOIUrl":"10.1016/j.reseneeco.2022.101312","url":null,"abstract":"<div><p>Avoiding unmanageable climate change implies that global greenhouse gas emissions<span> must be reduced rapidly. Carbon prices and technological development are essential to deliver such reductions. Changes in preferences, however, are rarely considered, even though other major socioeconomic transitions – such as those from reducing smoking and drink-driving – have succeeded partly because preferences have changed. This article examines the impact of climate policy-induced changes in consumers’ preferences. We show that low-carbon policies could be better designed if it is recognised that preferences can be endogenous to such policies. For instance, carbon taxes must be adjusted, if they crowd-in or -out social preferences, to achieve a given target. Further, when the urban built environment changes mobility preferences, the value of low-carbon infrastructure investments can be underestimated if such effects are ignored. Third, policy-induced changes in preferences for active travel and plant-based diets could increase the net benefits of the transition to zero emissions.</span></p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43013254","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Lesly Cassin , Paolo Melindi-Ghidi , Fabien Prieur
{"title":"Confronting climate change: Adaptation vs. migration in Small Island Developing States","authors":"Lesly Cassin , Paolo Melindi-Ghidi , Fabien Prieur","doi":"10.1016/j.reseneeco.2022.101301","DOIUrl":"10.1016/j.reseneeco.2022.101301","url":null,"abstract":"<div><p>This paper examines the adaptation policy of Small Island Developing States (SIDS) facing climate change. We consider a dynamic economy with the following ingredients: <em>(i)</em> natural capital is an input in local production that is degraded as a result of climate change; <em>(ii)</em> the government has two instruments to cope with climate-related damages: it can adjust the population size thanks to migration policies and/or it can undertake adaptation measures in order to slow the degradation of natural assets; <em>(iii)</em><span><span><span> expatriates send remittances back home. We identify two critical conditions on the fundamentals of the economy that helps understand the features of the </span>optimal policy. We especially show that in most situations, the migration policy is a valuable instrument. Calibrating the model for Caribbean SIDS, we find that the optimal policy of the Caribbean region displays heterogeneity, that is explained by the different </span>degradation rate, population size, and endowment in natural capital. We also highlight that the higher the climate damages, the higher the incentives to conduct an active adaptation policy, combining conventional adaptation actions and migration.</span></p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49320566","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"One or two non-fossil technologies in the decarbonized transport sector?","authors":"Gøril L. Andreassen , Knut Einar Rosendahl","doi":"10.1016/j.reseneeco.2022.101314","DOIUrl":"10.1016/j.reseneeco.2022.101314","url":null,"abstract":"<div><p>What factors determine whether policymakers should promote one or more technologies in a decarbonized road transport sector, and what policies should governments choose? We investigate these questions theoretically and numerically through a static, partial equilibrium model for the road transport market. We find that one important factor is how close substitutes the two vehicle technologies are. Further, the number of vehicles of one technology depends on the number of vehicles of the other technology, both in the market and in the first-best solution. The first-best policy involves a subsidy of the markup on charging and filling, where the markup is higher the more utility increases with the number of stations. However, as there are several possible market equilibria, additional policies may be needed to avoid an unwanted lock-in.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765522000318/pdfft?md5=cb96cc30fd852dcd36f87c08c0287d07&pid=1-s2.0-S0928765522000318-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45126280","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}