In contrast with what we perceive is the conventional wisdom about setting a second-best emissions tax to control a uniformly mixed pollutant under uncertainty, we demonstrate that setting a uniform tax equal to expected marginal damage is not generally efficient under incomplete information about firms’ abatement costs and damages from pollution.
China's rapid economic growth has been accompanied by a high level of environmental degradation. One of the major sources of health and ecosystem damages is sulfur dioxide (SO2). Reducing SO2 emissions is a priority of China's environmental authorities, and the 11th Five-Year Plan (2006–2010) includes the target of reducing total SO2 emissions by 10 percent from the 2005 level.
Are demand elasticities affected by politically determined tax levels? Simultaneous estimates of gasoline demand and price
Raising the price of fossil fuels is a key component of any effective policy to deal with climate change. Just how effective such policies are is decided by the price elasticities of demand.
This study will review the past studies of the cost of land degradation in Ethiopia, assess the major methodological and conceptual issues and problems existing in the different approaches, compare the findings across these studies considering the relative merits of the different approaches, and draw implications for policies and programs, as well as for future research related to land management in Ethiopia.
Determinants of farmer's choice of adaptation methods to climate change in the Nile Basin of Ethiopia
This study identifies the major methods used by farmers to adapt to climate change in the Nile Basin of Ethiopia, the factors that affect their choice of method, and the barriers to adaptation.
Benefits of Organic Agriculture as a Climate Change Adaptation and Mitigation Strategy for Developing Countries
Organic agriculture (OA) is a concrete and promising strategy for adaptation to climate change and variability for rural communities has additional potential as a mitigation strategy.
The Economics of Climate Change: Putting a Price on Carbon
Innovation and diffusion of Environmental Technology: Industrial NOX abatement in Sweden under Refunded Emission Payments
In this paper we study the process of technical change in the case of pollution abatement from large stationary sources that have been regulated by a very forceful refunded emission payment policy.
Read María A. Naranjo' opinion article (Estrategias de adaptación al cambio climático en Costa Rica) in "La Nación" (January 28th), related to the EfD Central America Project "Small Farmers' Determinants of Private Adaptation to Climate Change Strategies" (Spanish only).
El caso de los productores de café en Costa Rica
This paper attempts to bring some central insights from behavioural economics into the economics of climate change.
Comments on Simon Dietz and Nicholas Stern's Why Economic Analysis Supports Strong Action on Climate Change: A Response to the Stern Review's Critics
When the Stern Review challenged the conventional wisdom and called for strong and immediate action on climate change, reactions were initially fierce. However, the ensuing debate has shown a new consensus in the making.
Climate change is likely to exacerbate the dry conditions already experienced in southern Africa. When rainfall does come, it is likely to be in bursts of greater intensity, leading to erosion and flood damage. However, these predictions have had very little influence on policy in southern African countries.
India has been running large-scale interventions in the energy sector over the last decades. Still, there is a dearth of reliable and readily available price and income elasticities of demand to base these on, especially for domestic use of traditional fuels.
“Co-benefits” of Greenhouse Gas Mitigation Policies in China: An Integrated Top-Down and Bottom-Up Modeling Analysis
This paper describes an integrated modeling approach to combine a top-down, recursive CGE model with a bottom-up, electricity-sector model to simulate two categories of policies.
The Co-Benefits of Mitigating the Global Greenhouse Gases in China – An Integrated Top-Down and Bottom-Up Modeling Analysis
Many greenhouse gas mitigation policies that shift fossil fuel use are accompanied by some hidden environmental benefits, so called “co-benefits” or “ancillary benefits.”
Raising the price of fossil fuels is a key component of any effective policy to deal with climate change. Just how effective such policies are is decided by the price elasticities of demand. Many papers have studied this without recognising that not only is there a demand side response: quantities are decided by the price but also there is a reverse causality: the level of consumtion affects the political acceptability of the taxes which are the main component of the final price. Thus prices affect consumption levels, in turn, have an affect on taxes and thus consumer prices. This paper estimates these functions simultaneously to show that there is indeed an effect on the demand elasticity.
The Stern Review (2006) has come to symbolize something of a dividing line in the evolution of the common appreciation of the climate problem. It is fair to say that during the last decade there has been a gradual but uneven increase in the perceived gravity of anthropogenic climate change, both among scientists and, with some time lag, the general public.
The paper analyzes the adoption of various environmental management systems (EMS) by industrial firms in Central and Eastern Europe approximately eight years after economic transitions began.
The regulation of industrial pollution is difficult in a rapidly industrialising, low-income setting. This study looks at the efforts to regulate chemical plants in Ankleshwar, the largest chemical estate in Asia.
We use firm-level data to study the adoption of Environmental Management Practices (EMPs) in the most polluting industrial sectors in Bulgaria, Hungary, Lithuania, Poland, Romania, and Slovakia during the 1990 – 1998 period when these countries were in a transition away from a centrally planned economy.
In January 2018, the South African city of Cape Town came within three months of running out of municipal water, following the worst drought in over a century. ‘Day Zero’ was the day when water managers would initiate emergency rationing measures, shutting off water to homes and businesses outside of the central city.
Researchers at EfD-Kenya have found new evidence that nutritional poverty is linked with climate change and variability. ‘In Kenya and other African countries, a majority of farmers depend on rainfall that is increasingly unpredictable,’ said Dr Richard Mulwa, Senior Research Associate at EfD-Kenya and one of the lead investigators in the study. ‘Also, increasing temperature reduces food production. Therefore, it is critical for these farmers to change their farming practices in response to climate change’.
Central America has more than 2.3 million families depending on agriculture and natural resources for their livelihoods, making them vulnerable to climate change risks such as rising temperatures, extreme events such as drought and flooding, and also crop diseases. Researchers associated with the Swedish-based Environment for Development (EfD) initiative are running an ecosystems-based adaptation project in Guatemala, Honduras, and Costa Rica that supports smallholder farming communities in adapting to changing conditions. This project scales up the needs and opportunities of smallholders to promote changes in public policies at a regional level.
A recent study in Kenya shows that climate change and variability will increase food insecurity and that different food crops will respond differently to climate change variables. The study also highlights the different factors influencing food insecurity in a changing climate. This is important information for farmers as well as the government.
Ethiopia aims to build a green economy and to follow a growth path that fosters sustainable development. Through the development of its Climate-Resilient Green Economy (CRGE) strategy, which is based on carbon-neutral growth, it envisions attaining middle-income status by 2025. Improving the productivity of the agricultural sector, protecting forests, expanding the coverage of electric power from renewable sources of energy and transitioning into modern and energy-efficient technologies are the main pillars of Ethiopia’s CRGE strategy.
How can charging money for something that was free be a good idea for poor farmers? It turns out that pricing irrigation water will help improve Ethiopian farmers’ efficiency in water use, increase agricultural and food production, and make the population less vulnerable to climate change. One unique contribution of environmental economists is that they collect data from the field and then calculate what natural resources are really worth.
People in Central America’s rural areas will face a 20 percent decline of drinking water availability by 2050, estimates show. EfD researchers are now collecting information from 8 000 households in Nicaragua, Guatemala and Costa Rica. The primary aim is to map capabilities and obstacles for communities to adapt, and to provide community leaders tools and skills to respond to drier scenarios. EfD findings also support governmental adaptation policies.
The South African node of the EfD network, the Environmental Economics Policy Research Unit at the University of Cape Town is working towards influencing South African policy in four key areas: climate change, biodiversity conservation, marine fisheries, and energy. One of the recent studies identified mixed farming as a crucial strategy to adapt to climate change, particularly for small farmers.
Climate change poses a threat to reliable supplies of drinking water in rural areas. EfD Central America (CATIE) is working with rural communities in Costa Rica, Guatemala and Nicaragua to develop solutions.
A plan to reduce automobile traffic in Beijing was in the hands of the city’s mayor in late 2013. EfD China played a major role in figuring out what strategies would – and would not – be likely to reduce the pollution and congestion that Beijing residents have been facing as a result of economic growth.
On Wednesday 23 October, EPRU hosted the EfD Policy day at Commodore Hotel, Cape Town, South Africa. The policy day brought together policy makers from various governmental levels, practitioners, NGOs, international and national researchers.
EfD-Kenya fellows Wilfred Nyangena and Geophrey Sikei, were engaged in the review and synthesis of literature on climate change research in the COMESA region and how it has influenced policy.
EfD researchers show that the Payments for Ecosystem Services program has no positive nor negative effects on people's income or jobs. And in the first three years of its implementation, the program had no effect on the deforestation rate. However, in the following five years, the program did slow down deforestation.
Ethiopia risking average income cut of 30 percent The impacts of climate change on agricultural productivity may reduce the Ethiopian average income by as much as 30 percent within the next 50 years. This and other EfD findings on how climate change is hitting Africa, and in particular Ethiopia, were presented to 60 workshop participants from government, NGOs and multilateral organizations assembled in Addis Abeba. Strategies for adaptation, mitigation and a stronger position in international climate negotiations were discussed.
ICAP Training Course in Costa Rica. From 19-28 March 2012. Applications deadline extended to 20 December 2011 (previously 15 December 2011).
A highly selected interdisciplinary group of experts working on water and climate change in Latin America and the Caribbean met in Panama City, Panama from Thursday, September 29th to Saturday, October 1st, 2011.
Project will conduct socioeconomic studies of the links between water and climate change in Latin America and the Caribbean
The project seeks to promote capacity building for research, analysis and evaluation of the impacts of climate change and water, using the tools of environmental economics.
Arranca proyecto de estudios socioeconómicos de los vínculos entre agua y cambio climático en América Latina y el Caribe
Con el proyecto se busca promover la creación de capacidad de investigación, análisis y la evaluación del impacto del cambio climático y agua, utilizando las herramientas de la economía ambiental
The IPBES (Intergovernmental Platform on Biodiversity and Ecosystem Services) will work to build capacity for and strengthen the use of science in policy making by linking the scientific community and policy makers. The workshop and assessments will take place in Tokyo, Japan from the 25 to 27 of July 2011.
EfD-CA at CATIE takes advantage of research synergies in institutional aspects of climate change, biodiversity, and water.
Beijing is the world´s most congested city as measured by average vehicle speed. It is also one of the most air polluted cities, with a substantial part of the emissions coming from vehicles. To find effective policy instruments to address these serious urban challenges, Environment for Development in China/the Environmental Economics Program in China (EEPC) and Beijing Transportation Research Center are collaborating in a research program.
“To do high-quality research, you need to find out what policy makers need and nurture the interaction,” says Maria Angelica Naranjo, EfD researcher in Central America. Her research colleagues Roger Madrigal and Francisco Alpízar are exploring why some Costa Rican communities are successful in drinking water management while others are not. Policy makers and local communities are already using some of the researchers’ recommendations to bring change.