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- AUTHOR INDEX Volume 14 (2023)
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Abstract: Climate Change Economics, Volume 14, Issue 04, November 2023.
Citation: Climate Change Economics
PubDate: 2023-11-02T07:00:00Z
DOI: 10.1142/S2010007823990014
Issue No: Vol. 14, No. 04 (2023)
- ADOPTION OF ENERGY-EFFICIENT AIR CONDITIONERS AND THE PRINCIPAL-AGENT
PROBLEM: EVIDENCE FROM CHINA-
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Authors: XIAO-BING ZHANG, CHANG SU, WENJI ZHOU, PING QIN
Abstract: Climate Change Economics, Ahead of Print.
As an important measure for households’ adaptation to climate change, air conditioning is becoming more and more prevailing in developing countries, which implies a larger demand for electricity and highlights the role of energy-efficient air conditioners (ACs) in energy saving. Using household-level data from China, this paper investigates the determinants of households’ adoption of energy-efficient ACs, with a focus on the role of the split-incentive (principal-agent) problem between homeowners and renters in the adoption of energy-efficient ACs. The results show that the principal-agent (PA) problem does exist in the adoption of energy-efficient ACs in Chinese households, with renter-occupied dwellings being about 10.2% more likely to have low energy-efficient ACs installed in dwellings, compared to homeowner-occupied dwellings. Moreover, the increased energy consumption and carbon emissions due to the PA problem in AC investment are calculated based on the estimated agency effect.
Citation: Climate Change Economics
PubDate: 2023-11-23T08:00:00Z
DOI: 10.1142/S2010007823500252
- THE POLICY EFFECT OF CARBON EMISSIONS TRADING ON GREEN TECHNOLOGY
INNOVATION — EVIDENCE FROM MANUFACTURING ENTERPRISES IN CHINA-
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Authors: JIANG DU, MIAO ZENG, XIN DENG
Abstract: Climate Change Economics, Ahead of Print.
Based on the panel data of listed Chinese manufacturing enterprises from 2007 to 2019, this study uses the difference-in-differences-based propensity score matching method (PSM-DID) to explore the policy effect of carbon emissions trading on green technology innovation in manufacturing from the perspective of independent innovation of enterprises. The conclusions of this study show that: (1) Carbon emissions trading has significantly improved the level of green technology innovation of manufacturing enterprises; (2) the policy effect of carbon emissions trading on the green patent application is more than twice as much as on green utility model patent application. Compared with green utility model patent, the pilot policy of carbon emissions trading has a more significant and greater policy effect on the green invention patent application; (3) the private enterprises are more sensitive to the pilot policy of carbon emissions trading than state-owned enterprises (SOEs). The carbon emissions trading in China effectively promotes low-carbon and green development of enterprises.
Citation: Climate Change Economics
PubDate: 2023-11-11T08:00:00Z
DOI: 10.1142/S2010007823400067
- INTRODUCTION TO THE SPECIAL ISSUE ON REACHING NET ZERO BY 2050
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Authors: Robert Mendelsohn, David Maddison, Daigee Shaw
Abstract: Climate Change Economics, Ahead of Print.
Citation: Climate Change Economics
PubDate: 2023-09-30T07:00:00Z
DOI: 10.1142/S201000782303001X
- A RICARDIAN ANALYSIS OF CLIMATE CHANGE IMPACTS ON JAPAN’s AGRICULTURE:
ACCOUNTING FOR SOLAR RADIATION-
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Authors: IORI OKAMURA, STEVEN VAN PASSEL, CHARLOTTE FABRI, TETSUJI SENDA
Abstract: Climate Change Economics, Ahead of Print.
This study evaluates the effects of climate change on the net revenue of farmers in Japan. We adopted the Ricardian model, which implicitly accounts for farmers’ full adaptation. The main findings of this study are as follows. First, the Ricardian regression shows that changes in temperature significantly impact farmers’ net revenue. In contrast, changes in precipitation have limited effects on farmers’ net revenue. The results of future predictions showed that the effects of climate change are positive across the country, with varying degrees between north and south. These results are more optimistic than those in the existing literature, which frequently reveal negative climate change impacts in southern Japan. However, it should be noted that this model assumes full adaptation and does not consider the transition costs of farmers, and understanding the actual adaptive measures is an important remaining issue.
Citation: Climate Change Economics
PubDate: 2023-09-29T07:00:00Z
DOI: 10.1142/S2010007823500227
- UNDERSTANDING THE CARBON INTENSITY OF SOUTH KOREA’S EXPORTS: A
MULTIPLICATIVE STRUCTURAL DECOMPOSITION ANALYSIS-
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Authors: TAE-JIN KIM, NIKOLAS TROMP
Abstract: Climate Change Economics, Ahead of Print.
Despite the large and growing role of exports in Korea’s carbon emissions, they have been largely overlooked in Korea’s carbon neutrality strategy. With this in mind, we analyze Korea’s aggregate emission intensity of exports (AEIE), an indicator of the environmental efficiency of exports, which decreased from 1.37[math]Kt/$M to 0.74[math]Kt/$M during 2000–2014. Using the multi-regional input-output model and two-stage multiplicative structural decomposition analysis (MSDA), we uncover drivers of changes in the AEIE. Analysis of bilateral AEIE shows that exports to developed countries had a large impact on the decline while exports to developing countries have risen in importance. MSDA shows that the carbon intensity effect contributed most to the decline but that trade in intermediate goods and trade in final goods were also important. At the sectoral level, manufacturers of basic metals, electricity, gas, steam and air conditioning supply and transportation sectors were shown to be important drivers of the decline in the AEIE. As the first study to analyze the drivers of Korea’s AEIE, this paper suggests various abatement policies to help achieve the goal of carbon neutrality by 2050.
Citation: Climate Change Economics
PubDate: 2023-09-26T07:00:00Z
DOI: 10.1142/S2010007823500239
- EAST ASIA CLIMATE CLUB: PATHWAY TOWARD 2050 NET-ZERO
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Authors: DAIGEE SHAW, YU-HSUAN FU, YA-QI CHEN
Abstract: Climate Change Economics, Ahead of Print.
Four major and closely related economies in East Asia, i.e., China, Japan, South Korea, and Taiwan, have committed and pledged their pathway and strategies to achieve a net-zero target in the last three years. However, the net-zero pathway and strategy developed by the governments in East Asia and most countries need to be more proactive in many ways. We define four scenarios such as the business-as-usual scenario (BAU), the government pledge scenario (GOV), the East Asia climate club scenario without forming a green club fund (CLUB without the fund), and the East Asia climate club scenario (CLUB). This study first aims to apply the E3ME-FTT model to assess the net-zero pathway and strategies the governments of these four economies have already pledged under the GOV scenario. The results show that, with current pledges, we cannot achieve the net-zero target and will cause a lot of carbon debt. Then, we assess the effectiveness of forming a climate club that the four economies commit to applying four common policy instruments and programs to meet the 2050 net-zero target under the CLUB scenario. The results suggest that creating the East Asia climate club can be an excellent program to facilitate international cooperation on climate change and help to transform it into a green economy in East Asia. It can help reduce CO2 emissions, though not yet meeting the 2050 net-zero target, and have a higher positive impact on GDP. All club members would benefit both environmentally and economically. These economies with stricter environmental regulations will become more closely related as a kind of friend-shoring. As a result, the green trades between these economies increase. To fully reach the target, the four economies must formulate additional net-zero strategies across sectors based on their unique situation and invest more in emission reduction and carbon removal R&D to enhance their capacity and lower costs.
Citation: Climate Change Economics
PubDate: 2023-09-22T07:00:00Z
DOI: 10.1142/S2010007823400055
- DROUGHT AND HOTTER TEMPERATURE IMPACTS ON SUICIDE: EVIDENCE FROM THE
MURRAY–DARLING BASIN, AUSTRALIA-
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Authors: YING Xu, SARAH ANN WHEELER, ALEC ZUO
Abstract: Climate Change Economics, Ahead of Print.
The Murray–Darling Basin (MDB) is Australia’s prime agricultural region, where drought and hotter weather pose a significant threat to rural residents’ mental health – hence increasing their potential suicide risk. We investigate the impact of drought and hotter temperatures on monthly suicide within local areas in the MDB, from 2006–2016. Using Poisson fixed-effects regression modeling, we found that extreme drought and hotter temperatures were associated with increased total suicide rates. The effects of extreme drought and temperature on suicide were heterogeneous across gender and age groups, with younger men more vulnerable. Areas with higher percentages of Indigenous and farmer populations were identified as hot spots, and were vulnerable to increased temperatures and extreme drought. Green space coverage (and to some extent higher incomes) moderated the drought and suicide relationship. Providing targeted interventions in vulnerable groups and hot spot areas is warranted to reduce the suicide effect of climate change.
Citation: Climate Change Economics
PubDate: 2023-09-15T07:00:00Z
DOI: 10.1142/S2010007823500240
- IS SOLAR AND BIOGAS A BETTER CHOICE THAN ELECTRICITY AND DIESEL'
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Authors: NADEEM AKMAL, MUHAMMAD QASIM, HASSNAIN SHAH, SUMIA BINT ZAMAN, WAQAS FAROOQ, NAJID AHMAD
Abstract: Climate Change Economics, Ahead of Print.
This study measures the cost-effectiveness of alternate energy sources for irrigation in Pakistan. Primary data has been collected from eight districts of three provinces of Pakistan. Overall, 223 farmers were personally interviewed out of which, 58 farmers were using electric tube-well, 95 diesel tube-well, and 35 each for solar and biogas-operated tube-wells. The cost of extracting one cubic meter of water through electricity, diesel, subsidized electricity, biogas, and solar was $0.180, $0.013, $0.011, $0.010, and $0.005, respectively. The paper concludes that water pumping using alternative energy sources is cost-effective. Major constraints to adopting solar-powered water pumping systems were the high upfront cost, the lack of awareness, and the lack of available spare parts. The constraints to adopting biogas were difficulty operating and managing through winter.
Citation: Climate Change Economics
PubDate: 2023-08-08T07:00:00Z
DOI: 10.1142/S2010007823500215
- NET ZERO EMISSIONS OF GREENHOUSE GASES BY 2050: ACHIEVABLE AND AT WHAT
COST'-
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Authors: JENNIFER MORRIS, Y.-H. HENRY CHEN, ANGELO GURGEL, JOHN REILLY, ANDREI SOKOLOV
Abstract: Climate Change Economics, Ahead of Print.
About 140 countries have announced or are considering net zero targets. To explore the implications of such targets, we apply an integrated earth system–economic model to investigate illustrative net zero emissions scenarios. Given the technologies as characterized in our modeling framework, we find that with net zero targets afforestation in earlier years and biomass energy with carbon capture and storage (BECCS) technology in later years are important negative emissions technologies, allowing continued emissions from hard-to-reduce sectors and sources. With the entire world achieving net zero by 2050 a very rapid scale-up of BECCS is required, increasing mitigation costs through mid-century substantially, compared with a scenario where some countries achieve net zero by 2050 while others continue some emissions in the latter half of the century. The scenarios slightly overshoot 1.5∘C at mid-century but are at or below 1.5∘C by 2100 with median climate response. Accounting for climate uncertainty, global achievement of net zero by 2050 essentially guarantees that the 1.5∘C target will be achieved, compared to having a 50–50 chance in the scenario without net zero. This indicates a tradeoff between policy costs and likelihood of achieving 1.5∘C.
Citation: Climate Change Economics
PubDate: 2023-07-13T07:00:00Z
DOI: 10.1142/S201000782340002X
- COSTS AND BENEFITS OF THE PARIS CLIMATE TARGETS
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Authors: RICHARD S. J. TOL
Abstract: Climate Change Economics, Ahead of Print.
The temperature targets in the Paris Agreement cannot be met without very rapid reduction of greenhouse gas emissions and removal of carbon dioxide from the atmosphere. The latter requires large, perhaps prohibitively large subsidies. The central estimate of the costs of climate policy, unrealistically assuming least-cost implementation, is 3.8–5.6% of GDP in 2100. The central estimate of the benefits of climate policy, unrealistically assuming high no-policy emissions and constant vulnerability, is 2.8–3.2% of GDP. The uncertainty about the benefits is larger than the uncertainty about the costs. The Paris targets do not pass the cost-benefit test unless risk aversion is high and discount rate low.
Citation: Climate Change Economics
PubDate: 2023-06-30T07:00:00Z
DOI: 10.1142/S2010007823400031
- EFFECTS OF CLIMATE CHANGE ON FOOD CROP PRODUCTION IN BENIN
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Authors: GBETONDJI MELAINE ARMEL NONVIDE, ARMAND FRÉJUIS AKPA
Abstract: Climate Change Economics, Ahead of Print.
Climate change becomes a serious threat to all humanity and in particular developing countries where people are more vulnerable because they depend on agriculture for their livelihood. In this study, we analyzed the effects of climatic variables on maize, rice and sorghum yields for 76 of the 77 municipalities in Benin over the period from 1995 to 2019. Using a production function, we specified a panel data model. Estimation of the pooled model and the fixed effect model showed that both precipitation and temperature variation were negatively correlated with production for the full sample and in northern and southern Benin, indicating the robustness of the results. Policies to promote adaptation strategies by facilitating farmers’ access to adaptation strategies need to be strengthened.
Citation: Climate Change Economics
PubDate: 2023-06-19T07:00:00Z
DOI: 10.1142/S2010007823500203
- ANALYZING THE LONG-RUN AND SHORT-RUN IMPACTS OF CLIMATE CHANGE ON WHEAT
AND MAIZE YIELD IN WESTERN HIMALAYAN REGION OF INDIA-
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Authors: TAHIR FAZAL CHOUDHARY, MEENAKSHI GUPTA
Abstract: Climate Change Economics, Ahead of Print.
This study attempts to analyze the impact of climate change on the productivity of agricultural crops (wheat and maize), in the western Himalayan region of India for the period 1998–2019. The study implies second-generation panel estimation techniques. The Panel Autoregressive Distributed Lags (ARDL) method is used to analyze the long-and short-run effect of climatic variables i.e., average temperature, temperature range, and average precipitation on the yield of wheat and maize. The finding of the Panel ARDL shows that the average temperature of kharif season negatively affects the maize yield both in long run and short run, whereas the average temperature of rabi season has a negatively significant effect on wheat yield in long run and positively significant effect on wheat yield in short run. The average precipitation of rabi season has a positively significant effect on wheat yield both in long run and short run. The study recommends the development of advanced irrigation system, and the implementation of the insurance scheme by the Government and to adopt climate-smart farming techniques.
Citation: Climate Change Economics
PubDate: 2023-06-10T07:00:00Z
DOI: 10.1142/S2010007823500197
- TEMPERATURE AND ENERGY SECURITY: WILL FOREST BIOMASS HELP IN THE
FUTURE'-
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Authors: ALICE FAVERO, JONGHYUN YOO, ADAM DAIGNEAULT, JUSTIN BAKER
Abstract: Climate Change Economics, Ahead of Print.
Despite the numerous technical, logistical, and policy challenges associated with the use of bioenergy to mitigate climate change, the latest IPCC report identifies bioenergy as a high-value and large-scale mitigation option to support the transition to a cleaner energy system. This paper links a climate-economic-energy model and a land model to measure the net mitigation effect of using forest biomass for electricity generation and corresponding implications on global temperature. Through the soft-link, the energy model provides to the land model the cost-effective regional consumption of forest biomass under nine carbon price scenarios and measures the effects of its use on fossil fuel emissions and carbon sequestered in carbon capture and storage (CCS). The land model provides the dynamic supply of forest biomass and measures the change in land management/use under each demand scenario and corresponding changes in carbon sequestered in forests. Results suggest that forest biomass should be part of global mitigation efforts despite the expected small share of electricity sourced from it. The net climate benefits of forest biomass energy vary across scenarios and temporally — in most scenarios increased biomass demand results in near term reductions in global forest carbon stocks, but at carbon prices starting at $40/tCO2e or greater, results show positive net sequestration by 2030. This increased sequestration, coupled with energy emissions displacement and bioenergy with carbon capture and storage (BECCS) implies substantial long-term mitigation potential for forest biomass energy. Our results suggest that high forest biomass demand pathways could also help reduce the magnitude of future temperature growth. Further, we explore the regional effects on energy security of using forest biomass. Results show that its use can have potential large effects on trade dynamics and regional energy security issues, with 4 of the 17 global regions found to be net exporters of forest biomass.
Citation: Climate Change Economics
PubDate: 2023-06-01T07:00:00Z
DOI: 10.1142/S2010007823500185
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