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You searched for: Publishing Institution Centre for International Environmental Studies, The Graduate Institute (IHEID) Remove constraint Publishing Institution: Centre for International Environmental Studies, The Graduate Institute (IHEID) Publication Year within 10 Years Remove constraint Publication Year: within 10 Years Topic Climate Change Remove constraint Topic: Climate Change
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  • Author: Laura Nowzohour
  • Publication Date: 05-2021
  • Content Type: Research Paper
  • Institution: Centre for International Environmental Studies, The Graduate Institute (IHEID)
  • Abstract: Adjustment costs are a central bottleneck of the real-world economic transition essential for achieving the sizeable reduction of greenhouse gas (GHG) emissions set out by policy makers. Could these costs derail the transition process to green growth, and if so, how should policy makers take this into account? I study this issue using the model of directed technical change in Acemoglu, Aghion, Bursztyn, and Hemous (2012), AABH, augmented by a friction on the choice of scientists developing better technologies. My results show that such frictions, even minor, materially affect the outcome. In particular, the risk of reaching an environmental disaster is higher than in the baseline AABH model. Fortunately, policy can address the problem. Specifically, a higher carbon tax ensures a disaster-free transition. In this case, the re-allocation of research activity to the clean sector happens over a longer but more realistic time horizon, namely around 15 instead of 5 years. An important policy implication is that optimal policies do not act over a substantially longer time horizon but must be more aggressive today in order to be effective. In turn, this implies that what may appear as a policy failure in the short-run | a slow transition albeit aggressive policy | actually re ects the efficient policy response to existing frictions in the economy. Furthermore, the risk of getting environmental policy wrong is highly asymmetric and `robust policy' implies erring on the side of stringency.
  • Topic: Climate Change, Economics, Environment, Economic Growth, Green Technology, Economic Policy, Renewable Energy, Sustainability
  • Political Geography: Global Focus
  • Author: François Cohen, Giulia Valacchi
  • Publication Date: 11-2020
  • Content Type: Research Paper
  • Institution: Centre for International Environmental Studies, The Graduate Institute (IHEID)
  • Abstract: Climate policy will predominantly affect industries that primarily rely on fossil fuels, such as steelmaking. Within these industries, exposure may be different by country according to the energy-intensity of national plants. We estimate the effect of coal prices on steel plant location worldwide and production preferences for BOF, a polluting technology, and EAF, a greener one. A 1% increase in national coal prices reduces BOF installed capacity by around 0.37%, while it has no statistically significant impact on EAF capacity. We simulate the implementation of a stringent European carbon market with no border adjustment and find a non-negligible shift in steel production outside Europe, with a concomitant impact on the technologies employed to produce steel. If applied worldwide, the same policy would primarily affect production in Asia, which relies on BOF and currently benefits from lower coal prices than those expected to emerge in the future.
  • Topic: Climate Change, Natural Resources, Green Technology, Fossil Fuels, Coal, Price
  • Political Geography: Europe
  • Author: Mihnea-George Filip
  • Publication Date: 10-2020
  • Content Type: Policy Brief
  • Institution: Centre for International Environmental Studies, The Graduate Institute (IHEID)
  • Abstract: Mobilizing private investments for the renewable energy transition requires credible policy support over the long-term. This Policy Brief discusses how Romania’s abrupt policy changes and inconsistent policy signals over the last decade have deterred private investments in the renewable energy sector. The example of Romania provides key policy lessons for other countries engaged in the energy transition. Romania has one of the highest renewable energy potentials in Europe (up to 71 GW), which is approximately six times higher than the country’s current renewable deployment (IRENA 2017). As shown in Figure 1, wind and solar PV energy experienced a significant boom between 2009 and 2013 followed by a more or less complete stagnation since 2014.
  • Topic: Climate Change, Environment, Green Technology, Investment, Economic Policy, Renewable Energy, Fossil Fuels
  • Political Geography: Eastern Europe, Romania
  • Author: Susanna B. Hecht
  • Publication Date: 12-2019
  • Content Type: Policy Brief
  • Institution: Centre for International Environmental Studies, The Graduate Institute (IHEID)
  • Abstract: The dramatic Amazon fires images of Au-gust 2019 triggered a geopolitical outcry. Brazilian President Bolsonaro, however, unflinchingly continues to support his destructive model of Amazonian development. This article recalls the extent of the disaster and delves into the reasons behind such disdain for environmental concerns.
  • Topic: Agriculture, Climate Change, Development, Environment
  • Political Geography: Brazil, Latin America
  • Author: Pedro Naso
  • Publication Date: 09-2019
  • Content Type: Research Paper
  • Institution: Centre for International Environmental Studies, The Graduate Institute (IHEID)
  • Abstract: I study the economic motivations behind a reduction in the discretionary power of environmental regulators, and the impact that such reduction has on perceived corruption in South Africa. I examine the transition from the Air Pollution Protection Act of 1965 to the Air Quality Act of 2005, a change from full to partial delegation of regulation. By constructing a principal-agent model, I argue that this transition might have occurred because of an increase in the dispersion of rent-seeking motivations of public agents. This happens because, from the principal’s perspective, the possible harm— loose pollution control and misappropriation of environmental fines— generated by corrupt agents is greater than the potential benefits brought by diligent agents. In my empirical analysis, I use diff-indiffs models for a two-period panel with 191 South African firms to show that the regulatory change decreased treated firms’ perceived corruption, but did not improve other institutional quality measures.
  • Topic: Climate Change, Economics, Environment, Regulation, Pollution
  • Political Geography: Africa, South Africa
  • Author: Pedro Naso
  • Publication Date: 12-2019
  • Content Type: Research Paper
  • Institution: Centre for International Environmental Studies, The Graduate Institute (IHEID)
  • Abstract: Since the second half of the 20th century, with the contributions of Coase, Williamson and North, the economic literature has emphasised the role of institutions in explaining differences in economic performance. According to the most diffused view, countries with good institutions will invest more in physical and human capital, will use productive factors in a more efficient way, and will achieve greater income level. But what are good institutions? And how should governments implement them? Answers to these questions have proven to be difficult mainly because of two characteristics of institutions: (i) institutional functioning is complex: the way institutions affect economic agents’ incentives is dependent on these agents’ individual preferences and the way they interact, which are difficult to predict; and (ii) they are context specific – the same institution in different contexts might result in a different economic outcome.
  • Topic: Climate Change, Economics, Environment, Regulation, Economic Policy
  • Political Geography: Africa, South Africa, Sierra Leone
  • Author: Tim Flannery
  • Publication Date: 03-2018
  • Content Type: Research Paper
  • Institution: Centre for International Environmental Studies, The Graduate Institute (IHEID)
  • Abstract: It is no longer possible to achieve the goals of the Paris Climate Agreement – of keeping average global temperatures to ‘well below 2C above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5C1 - without removing large volumes of CO2 from the atmosphere.2 This will involve the development and deployment of carbon negative technologies at the gigatonne scale. Because developmental pathways for such technologies are likely to be decades-long, it is necessary that largescale investment begin now, if we hope to have mature technologies operating at the appropriate scale by 2050.
  • Topic: Climate Change, Environment, Industrial Policy, Capitalism, Economic Growth, Global Warming
  • Political Geography: Global Focus