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Rolling the Dice in the Corridors of Power: William Nordhaus's Impacts on Climate Change Policy Climate Change Economics (IF 1.271) Pub Date : 2020-10-01 JOSEPH E. ALDY, ROBERT N. STAVINS
The seminal contributions of William Nordhaus to scholarship on the long-run macroeconomics of global climate change are clear. Much more challenging to identify are the impacts of Nordhaus and his research on public policy in this domain. We examine three conceptually distinct pathways for that influence: his personal participation in the policy world; his research’s direct contribution to the formulation
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U.S. HOUSEHOLD PREFERENCES FOR CLIMATE AMENITIES: DEMOGRAPHIC ANALYSIS AND ROBUSTNESS TESTING Climate Change Economics (IF 1.271) Pub Date : 2020-09-15 JARED C. CARBONE, SUL-KI LEE, YUZHOU SHEN
We estimate household demand for climate amenities in the United States with two main objectives in mind: (i) to estimate model parameters with the demographic detail needed to inform climate-induced migration responses in regional population projections for use in climate impact analysis; (ii) to study the robustness of estimates from the existing literature. With respect to the former goal, we find
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Selfish Bureaucrats and Policy Heterogeneity in Nordhaus' dice Climate Change Economics (IF 1.271) Pub Date : 2020-09-09 Richard S. J. Tol
Nordhaus’ seminal DICE model assesses first-best climate policy, a useful but unrealistic yardstick. I propose a measure of policy inefficacy if carbon prices are heterogeneous and use observed prices to recalibrate the DICE model. I introduce a model of climate policy with selfish bureaucrats, and calibrate it to carbon dioxide emissions in the European Union and the policy models used by the IPCC
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Impacts of mechanisms to promote participation in climate mitigation: border carbon adjustments vs uniform tariff measures Climate Change Economics (IF 1.271) Pub Date : 2020-07-20 KUN ZHANG, QIAO-MEI LIANG, LI-JING LIU, MEI-MEI XUE, BI-YING YU, CE WANG, RONG HAN, YUN-FEI DU, YUN-FEI YAO, JUN-JIE CHANG, JINXIAO TAN, HUA LIAO, YI-MING WEI
Because free-riding behavior is an inherent characteristic of climate change, how to protect the economic benefits of the emission reduction regions and prompt the noncooperative region to join the...
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ANALYSIS OF THE IMPACTS OF THE NDC SCENARIO ON ENERGY AND INDUSTRIAL STRUCTURE IN MAJOR COUNTRIES Climate Change Economics (IF 1.271) Pub Date : 2020-06-18 LIU CHANGXIN, WU JING, WANG ZHENG, WU LEYING
The IAM model EMRICES was adopted to analyze the energy and industrial structure trends of the major countries in the world. In the aspect of energy consumption, the energy varieties are subdivided...
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EXCESS VULNERABILITY FROM SUBSIDIZED FLOOD INSURANCE: HOUSING MARKET ADAPTATION WHEN PREMIUMS EQUAL EXPECTED FLOOD DAMAGE Climate Change Economics (IF 1.271) Pub Date : 2020-06-08 SCOTT J. COLBY, KATHERINE Y. ZIPP
We calculate there are 8.1% more houses in Allegheny County, PA (Pittsburgh) due to flood insurance subsidies. Conversely, if/when National Flood Insurance Program (NFIP) premiums rise by 50% to eq...
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COMPARATIVE ANALYSIS OF EMISSION REDUCTION TARGETS TOWARD INDC IMPLEMENTATION IN MALAYSIA, INDONESIA AND THAILAND BY 2050 Climate Change Economics (IF 1.271) Pub Date : 2020-05-01 ABUL QUASEM AL-AMIN, MD. SUJAHANGIR KABIR SARKAR, ADEEL AHMED, BRENT DOBERSTEIN
Global warming is becoming increasingly evident as greenhouse gas emissions increase worldwide and affect the environment, health and economy. Many Southeast Asian countries face this reality and hence they are concerned about setting and achieving an effective emission reduction strategy. As such, this study analyzes and compares emission reduction targets on selected Southeast Asian countries, including
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WEATHER AT DIFFERENT GROWTH STAGES, MULTIPLE PRACTICES AND RISK EXPOSURES: PANEL DATA EVIDENCE FROM ETHIOPIA Climate Change Economics (IF 1.271) Pub Date : 2020-05-01 HAILEMARIAM TEKLEWOLD, ALEMU MEKONNEN
This study investigates the effects of combinations of climate smart agricultural practices on risk exposure and cost of risk. We do this by examining the different risk components — mean, variance, skewness, and kurtosis — in a multinomial treatment effects framework by controlling weather variables for key stages of crop growth. We found that adoption of combinations of practices is widely viewed
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The impacts of the EU ETS on Norwegian plants' environmental and economic performance Climate Change Economics (IF 1.271) Pub Date : 2020-02-01 MARIT KLEMETSEN, KNUT EINAR ROSENDAHL, ANJA LUND JAKOBSEN
This paper examines the impacts of the EU Emissions Trading System (ETS) on the envi- ronmental and economic performance of Norwegian plants. The EU ETS is regarded as the cornerstone climate policy both in the EU and in Norway, but there has been considerable de- bate regarding its eects due to low quota prices and substantial allocation of free allowances to the manufacturing industry. Both quota
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Global market and economic welfare implications of changes in agricultural yields due to climate change Climate Change Economics (IF 1.271) Pub Date : 2020-02-01 KATHERINE CALVIN, BRYAN K. MIGNONE, HAROON S. KHESHGI, ABIGAIL C. SNYDER, PRALIT PATEL, MARSHALL WISE, LEON E. CLARKE, JAE EDMONDS
The economic welfare effects of climate change on global agriculture will be mediated by several complex biophysical and economic processes. For a given emissions scenario, these include: (1) the r...
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The critical role of conversion cost and comparative advantage in modeling agricultural land use change Climate Change Economics (IF 1.271) Pub Date : 2020-02-01 XIN ZHAO, KATHERINE V. CALVIN, MARSHALL A. WISE
The difference in land use modeling approaches is an important uncertain factor in evaluating future climate scenarios in global economic models. We compare five widely used land use modeling appro...
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Corn Yield Dynamics and Weather Shocks: Climate Change Implications for the U.S. Corn Belt Climate Change Economics (IF 1.271) Pub Date : 2019-12-26 JONATHAN McFADDEN, JOHN MIRANOWSKI
Unmitigated climate change is projected to reduce average U.S. corn yields. Many of these projections rely on stable model coefficients, which may not hold in practice. We investigate the assumption of spatio-temporal stability of weather coefficients in regressions of U.S. Corn Belt yields during 1950–2014 and examine their implications for climate change projections. We reject the null hypothesis
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Evaluating Carbon Capture and Storage in a Climate Model with Endogenous Technical Change Climate Change Economics (IF 1.271) Pub Date : 2019-12-19 TUNÇ DURMAZ, FRED SCHROYEN
We assess the extent to which Carbon Capture and Storage (CCS) and RD and a fossil energy regime where CCS is part of a long-term solution and is further developed at about the same rate as fossil energy technology. Our computations show that for current estimates of the marginal cost of CCS, the renewable energy regime clearly dominates the fossil fuel energy regime.
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The potential impact of climate change on agriculture in West Africa: A bio-economic modeling approach Climate Change Economics (IF 1.271) Pub Date : 2019-11-01 BORIS O. K. LOKONON, AKLESSO Y. G. EGBENDEWE, NAGA COULIBALY, CALVIN ATEWAMBA
This paper investigates the impact of climate change on agriculture in the Economic Community of West African States (ECOWAS). To that end, a bio-economic model is built and calibrated on 2004 base year dataset and the potential impact is evaluated on land use and crop production under two representative concentration pathways coupled with three socio-economic scenarios. The findings suggest that land
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A Critical Review of Cost-Benefit Analysis for Climate Change Adaptation in Cities Climate Change Economics (IF 1.271) Pub Date : 2019-11-01 AMBIKA MARKANDAY, IBON GALARRAGA, ANIL MARKANDYA
This study systematically reviews the scientific literature (n=56) on cost-benefit analysis (CBA) of adaptation measures in cities and similar urban environments. The review is conducted to assess ...
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Does harmful climate increase or decrease migration? Evidence from Rural Households in Nigeria Climate Change Economics (IF 1.271) Pub Date : 2019-11-01 CRISTINA CATTANEO, EMANUELE MASSETTI
This paper analyzes whether migration is an adaptation strategy that households employ to cope with climate in Nigeria. We estimate our model using the cross-sectional variation in climate and long...
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The Economic, Energy, and Emissions Impacts of Climate Policy in South Korea Climate Change Economics (IF 1.271) Pub Date : 2019-08-01 NIVEN WINCHESTER, JOHN M. REILLY
Using an economy-wide model, we evaluate the impact of policies to meet South Korea’s Paris pledge to reduce greenhouse gas (GHG) emissions by 37% relative those under business as usual (BAU) in 20...
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Evaluating India's Climate Targets: The Implications of Economy-wide and Sector Specific Policies Climate Change Economics (IF 1.271) Pub Date : 2019-08-01 ARUN SINGH, NIVEN WINCHESTER, VALERIE J. KARPLUS
We employ a numerical economy-wide model of India with energy sector detail to evaluate the impact of achieving India’s commitments to the Paris Climate Agreement. We simulate targets for reducing ...
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Factors Influencing Rice Farmers' Adaptation Strategies to Climate Change and Extreme Weather Event Impacts in Bangladesh Climate Change Economics (IF 1.271) Pub Date : 2019-08-01 KHADIYA AKTAR MAYA, MD. ABDUR RASHID SARKER, JEFF GOW
Introduction: Climate change has emerged as a major threat to Bangladesh. Higher and fluctuating temperatures and changes in rainfall caused by climate change and extreme weather events have reduced crop production. A better understanding of the local dimensions of vulnerability is therefore essential to develop appropriate adaptation measures that can alleviate these adverse impacts. Purpose and methods:
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Climate clubs vs. single coalitions: The ambition of international environmental agreements Climate Change Economics (IF 1.271) Pub Date : 2019-08-01 ACHIM HAGEN, KLAUS EISENACK
We investigate whether global cooperation on emissions abatement can be improved if asymmetric countries agree to sign one out of several environmental agreements. The analysis is based on a two-stage game theoretical model. Conditions for stable coalitions and the resulting global emissions are determined. We allow for multiple coalitions with all countries being different, and analyze the effects
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Effects of Changes in Climatic Conditions on New Mexico Pecan Production, Price, and Cash Receipts Climate Change Economics (IF 1.271) Pub Date : 2019-05-01 JEE W. HWANG, OKMYUNG BIN
This study estimates the effects of changes in climatic conditions on local pecan production, price, and cash receipts in New Mexico, USA, for the period from 1964 to 2014. Our primary measures for...
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Crop Diversification as Climate Change Adaptation: How do Bangladeshi Farmers Perform? Climate Change Economics (IF 1.271) Pub Date : 2019-05-01 SHAIKH MONIRUZZAMAN
This research is based on the theoretical framework of risk in rural agricultural economy where farmers consider climate change as idiosyncratic risk of production. Under the inter-temporal household consumption smoothing model, this paper considers crop diversification as an ex ante measure to tackle permanent income shock from climate change. This paper examines empirically whether crop diversity
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Cost and benefits of climate change in Switzerland Climate Change Economics (IF 1.271) Pub Date : 2019-05-01 FRANK VÖHRINGER, MARC VIELLE, PHILIPPE THALMANN, ANITA FREHNER, WOLFGANG KNOKE, DARIO STOCKER, BORIS THURM
Understanding the economic magnitude of climate change (CC) impacts is a prerequisite for developing adequate adaptation strategies. In Switzerland, despite new climate scenarios and impact studies, only few impacts have been monetized. Our objective is to assess costs and opportunities of CC for Switzerland by 2060, while enhancing the assessment methods. Using inputs from bottom-up impact studies
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The Effect of Domestic Air Pollution Mitigation and Fracking on Retirements of Coal Power Plants Climate Change Economics (IF 1.271) Pub Date : 2019-05-01 JOSEPH G. SCHIAVO, ROBERT MENDELSOHN
This paper quantifies the magnitude of multiple potential causes of coal-fired power plant retirements since 1997. The paper finds that although the low natural gas prices from fracking have increased retirements, the foremost cause of retirements has been the tightening of criteria air pollutant regulations. These pollution regulations encouraged significant mitigation investments to reduce sulfur
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Economic Impacts of Migration and Brain Drain after Major Catastrophe: The Case of Hurricane Katrina Climate Change Economics (IF 1.271) Pub Date : 2019-02-01 QIN FAN, MERI DAVLASHERIDZE
We develop a county-level recursive dynamic computable general equilibrium (CGE) model of Orleans Parish (OP) to examine local economic impacts of migration and brain drain after Hurricane Katrina. To incorporate hurricane-induced brain drain in the CGE model, we use a reduced-form model to estimate the change in the share of college graduates caused by hurricane-induced damages. Calibrating the model
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Using a carbon tax to meet US international climate pledges Climate Change Economics (IF 1.271) Pub Date : 2019-02-01 YUNGUANG CHEN, MARC A. C. HAFSTEAD
The United States recently ratified the Paris Agreement, under the UN Framework Convention on Climate Change (UNFCCC), in which it pledged to reduce greenhouse gas emissions by 26–28 percent, relative to 2005, by 2025. In the absence of policy efforts beyond those currently in place or already proposed by the Obama administration, the United States would likely fall well short of its promises. However
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The Critical Role of Markets in Climate Change Adaptation Climate Change Economics (IF 1.271) Pub Date : 2019-02-01 SARAH E. ANDERSON, TERRY L. ANDERSON, ALICE C. HILL, MATTHEW E. KAHN, HOWARD KUNREUTHER, GARY D. LIBECAP, HARI MANTRIPRAGADA, PIERRE MÉREL, ANDREW J. PLANTINGA, V. KERRY SMITH
Markets, especially land markets, can facilitate climate change adaptation through price signals. A review of research reveals that urban, coastal, and agricultural land markets provide effective signals of the emerging costs of climate change. These signals encourage adjustments by both private owners and policy officials in taking preemptive action to reduce costs. In agriculture, they promote consideration
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Sectoral targets to address competitiveness - A CGE analysis with focus on the global steel sector Climate Change Economics (IF 1.271) Pub Date : 2019-02-01 VICKI DUSCHA, EVERETT B. PETERSON, JOACHIM SCHLEICH, KATJA SCHUMACHER
In the wake of the Paris Climate Agreement, countries may employ sectoral approaches. These allow for efficiency gains while at the same time addressing the concerns of competitiveness and carbon leakage. Applying a multi-country, multi-sector dynamic CGE model, this paper explores the role of sector emission targets for the steel sector in an international agreement, their interaction with emissions
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The impact of climate variability on drought management: Evidence from Japanese river basins Climate Change Economics (IF 1.271) Pub Date : 2018-11-01 KAORI TEMBATA, KENJI TAKEUCHI
This study examines the effect of climate variability on water resource management during droughts. We use data from local droughts in Japan over three decades to investigate how variability in precipitation and temperature affects water restrictions implemented by drought coordination councils. We find that climate variability is significantly related to water restrictions in terms of both intensity
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Environmental consumption taxes on animal food products to mitigate greenhouse gas emissions from the European Union Climate Change Economics (IF 1.271) Pub Date : 2018-11-01 TORBJÖRN JANSSON, SARAH SÄLL
Livestock cause around 10% of total greenhouse gas (GHG) emissions in the European Union. Despite the large quantities, no economic policy is in place to reduce emissions from the sector. In this p...
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Warming and Income Growth in the United States: A Heterogeneous, Common Factor Dynamic Panel Analysis Climate Change Economics (IF 1.271) Pub Date : 2018-11-01 BRANTLEY LIDDLE
This paper analyzes whether temperature changes influence economic growth in the contiguous 48 US states by employing panel methods that address both heterogeneity and cross-sectional dependence. U...
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The Aggregation Dilemma in Climate Change Policy Evaluation Climate Change Economics (IF 1.271) Pub Date : 2018-08-01 INGMAR SCHUMACHER
The results in this paper show that a policy maker who ignores regional data and instead relies on aggregated integrated assessment models will strongly underestimate the carbon price and thus the required climate policy. Using a stylized theoretical model we show that, under the mild and widely-accepted assumptions of asymmetric climate change impacts and declining marginal utility, an Aggregation
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