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Begin New Search Publishing Institution Centre for International Environmental Studies, The Graduate Institute (IHEID)

1. Protected areas, indigenous communities, deforestation and the role of institutions: evidence for the lowlands of Bolivia

Author:
Pedro Cayul
Publication Date:
03-2024
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Protected areas and indigenous communities play a crucial role in controlling deforestation, which is responsible for carbon emissions related to land use and land use change, contributing to global warming and climate change. However, the effectiveness of protected areas is conditioned by their administration and the quality of the institutions in their countries. In this paper, I will analyze the effectiveness of protected areas (Both at the national and sub-national levels) and indigenous territories and the institutions' role in the case of Bolivia's lowlands. I computed deforestation rates for four different periods between 1986 and 2021 to test the impact of institutions on different types of protected areas by using satellite images at 30m resolution and combining them with official data on protected areas and indigenous communities, which includes specific locations and dates of creation. Using a spatial regression discontinuity design, the results show that protected areas at the national level are the most effective in controlling deforestation, particularly after the creation of institutions taking care of them. Departmental protected areas have some impact on preventing deforestation, while municipal ones have no influence. For indigenous communities, there was a significant effect on reducing deforestation with the first reservations created, but the effect wears off over time. Regarding mechanism, being close to cities and routes is a threat for indigenous communities and departmental PAs, while it is an advantage for national PAs. Finally, protected areas and indigenous communities show, in general, greater levels of deforestation when they are exposed to cattle ranching settlements, mines, and oil wells.
Topic:
Environment, Institutions, Mining, Indigenous, Deforestation, and Protection
Political Geography:
South America and Bolivia

2. Redressing environmental harm? A 'corporate sovereignty' problem

Author:
Stefano Porfido
Publication Date:
05-2023
Content Type:
Special Report
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
The transition towards a low-carbon economy is an epoch-defining goal. However, this transition develops following traditional patterns of business that are intrinsically environmentally harmful as they rest upon profit-oriented strategies of commodifying natural resources. By taking the anthropological notion of "corporate sovereignty", this contribution discusses the unsustainability of private corporates' property a-like structures of power over natural resources and frames them within forms of economic governmentality. The paper concludes by stressing the need for a cultural change to occur to back the transition towards a novel model of sustainable business, i.e. of "business within the Heart's limits".
Topic:
Environment, Government, Natural Resources, Business, Institutions, Sustainability, Carbon Emissions, Corporations, and Green Transition
Political Geography:
Global Focus

3. Does environmental policy uncertainty hinder investments towards a low-carbon economy?

Author:
Joëlle Noailly, Laura Nowzohour, and Matthias Van Den Heuvel
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We use machine learning algorithms to construct a novel news-based index of US environmental and climate policy uncertainty (EnvPU) available on a monthly basis over the 1990-2019 period. We find that the EnvPU index spikes during the environmental spending disputes of the 1995-1996 government shutdown, in the early 2010s due the failure of the national cap-and-trade climate bill and during the Trump presidency. We examine how elevated levels of environmental policy uncertainty relate to investments in the low-carbon economy. In firm-level estimations, we find that a rise in the EnvPU index is associated with a reduced probability for cleantech startups to receive venture capital (VC) funding. In financial markets, a rise in our EnvPU index is associated with higher stock volatility for firms with above-average green revenue shares. At the macro level, shocks in our index lead to declines in the number of cleantech VC deals and higher volatility of the main benchmark clean energy exchange-traded fund. Overall, our results are consistent with the notion that policy uncertainty has adverse effects on investments for the low-carbon economy hindering progress to address the urgency of climate action.
Topic:
Environment, Finance, Economy, Investment, Institutions, and Decarbonization
Political Geography:
Global Focus

4. Cumulative Climate Shocks and Migratory Flows: Evidence from Sub-Saharan Africa

Author:
Salvatore Di Falco, Anna B. Kis, and Martina Viarengo
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We re-examine the effects of negative weather anomalies during the growing season on the decision to migrate in rural households in five sub-Saharan African countries. To this end we combine a multi-country household panel dataset with high-resolution gridded precipitation data. We find that while the effect of recent adverse weather shocks is on average modest, the cumulative effect of a persistent exposure to droughts over several years leads to a significant increase in the probability to migrate. The results show that more frequent adverse shocks can have more significant and long-lasting consequences in challenging economic environments.
Topic:
Climate Change, Migration, Urban, Rural, and Economic Development
Political Geography:
Sub-Saharan Africa

5. Cumulative climate shocks and migratory flows: evidence from Sub-Saharan Africa

Author:
Salvatore Di Falco, Anna B. Kis, and Martina Viarengo
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We re-examine the effects of negative weather anomalies during the growing season on the decision to migrate in rural households in five sub-Saharan African countries. To this end we combine a multi-country household panel dataset with high-resolution gridded precipitation data. We find that while the effect of recent adverse weather shocks is on average modest, the cumulative effect of a persistent exposure to droughts over several years leads to a significant increase in the probability to migrate. The results show that more frequent adverse shocks can have more significant and long-lasting consequences in challenging economic environments.
Topic:
Climate Change, Environment, Migration, and Drought
Political Geography:
Africa and Sub-Saharan Africa

6. Crime, inequality and subsidized housing: evidence from South Africa

Author:
Roxana Elena Manea, Patrizio Piraino, and Martina Viarengo
Publication Date:
04-2021
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We study the relationship between housing inequality and crime in South Africa. We create a novel panel dataset combining information on crimes at the police station level with census data. We find that housing inequality explains a significant share of the variation in both property and violent crimes, net of spillover effects, time and district fixed effects. An increase of one standard deviation in housing inequality explains between 9 and 13 percent of crime increases. Additionally, we suggest that a prominent post-apartheid housing program for low-income South Africans helped to reduce inequality and violent crimes. Together, these findings suggest the important role that equality in housing conditions can play in the reduction of crime in an emerging economy context.
Topic:
Apartheid, Crime, Economics, Law, Inequality, Violence, and Legal Sector
Political Geography:
Africa and South Africa

7. Can adjustment costs in research derail the transition to green growth?

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, and Sustainability
Political Geography:
Global Focus

8. Introducing MACEDA: new micro-data on an indigenous self-determination conflict

Author:
Pedro Cayul, Alejandro Corvalán, Dany Jaimovich, and Matteo Pazzona
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This article introduces MACEDA, a micro-level data set on the self-determination (SD) conflict between the Chilean state and the indigenous Mapuche. Although SD disputes are one of the most common conflicts in the world, and indigenous movements represent about 40% of all SD movements, this is the first micro-data focused on an indigenous SD conflict. MACEDA covers the period 1990-2016, including more than 2,600 events collected from local media. As indigenous conflicts are much less violent in terms of casualties, we take a flexible definition of conflict, based on its constituent events, and we discuss the comparability and generalization of our approach. To illustrate the usefulness of these micro-data in the analysis of conflict-related theories, we present a descriptive empirical analysis on the strategies of indigenous resistance, and we discuss how the data can be used in the causal analysis of conflicts.
Topic:
War, Conflict, Peace, Indigenous, Data, and Self-Determination
Political Geography:
South America and Chile

9. Can adjustment costs in research derail the transition to green growth ?

Author:
Laura Nowzohour
Publication Date:
06-2021
Content Type:
Working 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. Details
Topic:
Environment, Sustainable Development Goals, Economic Growth, Sustainability, Anthropocene, and Green Transition
Political Geography:
Global Focus

10. Crime, inequality and subsidized housing: evidence from South Africa

Author:
Roxana Elena Manea, Patrizio Piraino, and Martina Viarengo
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We study the relationship between housing inequality and crime in South Africa. We create a novel panel dataset combining information on crimes at the police station level with census data. We find that housing inequality explains a significant share of the variation in both property and violent crimes, net of spillover effects, time and district fixed effects. An increase of one standard deviation in housing inequality explains between 9 and 13 percent of crime increases. Additionally, we suggest that a prominent post-apartheid housing program for low-income South Africans helped to reduce inequality and violent crimes. Together, these findings suggest the important role that equality in housing conditions can play in the reduction of crime in an emerging economy context.
Topic:
Crime, Development, Inequality, and Housing
Political Geography:
Africa and South Africa

11. Financing energy innovation: internal finance and the direction of technical change

Author:
Joëlle Noailly and Roger Smeets
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Achieving the goals of the Paris Agreement and of climate neutrality by 2050 in the European Union will require mobilizing financial investments towards clean energy innovation. This study examines the role of internal finance (cash flows and cash holdings) and financing constraints for innovation in energy technologies. We construct a dataset for 1,300 Europeans combining balance-sheet information and patenting activities in renewable (REN) and fossil-fuel (FF) technologies and estimate the sensitivity of patenting activities to's internal finance. We use count estimation techniques and control for a large set of-specific characteristics and market developments in REN and FF technologies. We find that patenting activities ofs specialized in REN innovation are significantly more sensitive to a shock in cash flows thans specializing in FF innovation. Hence, our results emphasize that innovatives in clean energy may be particularly vulnerable to financing constraints. We discuss the implications of these results for energy transition policies aiming to redirect finance towards clean energy R&D.
Topic:
Environment, Science and Technology, European Union, Finance, Sustainable Development Goals, Innovation, and Energy
Political Geography:
Europe

12. Food security in the long-run: a macroeconomic approach to land use policy

Author:
Pedro Naso, Ozgun Haznedar, Bruno Lanz, and Timothy M. Swanson
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
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 security and environmental services in the long run. We first show that it may be possible to provide for food security with very substantial constraints on the amount of land used in agriculture with relatively minor welfare losses. We then show that global policies that reallocate labour across sectors of the economy may have the capacity for directing the economy toward reduced reliance on land in agriculture. Focusing on education, research and development, and fertility costs may be the best way to meet these combined goals. Details
Topic:
Development, Food Security, Macroeconomics, and Land
Political Geography:
Global Focus

13. Heard the news ? Environmental policy and clean investments

Author:
Joëlle Noailly, Laura Nowzohour, and Matthias Van Den Heuvel
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We build a novel news-based index of US environmental policy and examine how it relates to clean investments. Extracting text from ten leading US newspapers over the last four decades, we use text-mining techniques to develop a granular index measuring the salience of US environmental policy (EnvP) over the 1981-2019 period. We develop further a set of additional measures, namely an index of sentiment on environmental policy, as well as various topic-specific indices. We validate our index by showing that it correctly captures trends and peaks in the evolution of US environmental policy and that it has a meaningful association with clean investments, in line with environmental regulations supporting growing opportunities for clean markets. In firm-level estimations, we find that the salience of environmental policy in newspapers is associated with a greater probability of cleantech startups receiving venture capital (VC) funding and reduced stock returns for high-emissions firms most exposed to environmental regulations. At the aggregate level, we find in VAR models that a shock in our news-based index of renewable energy policy is associated with an increase in the number of clean energy VC deals and in the assets under management of the main benchmark clean energy exchange-traded fund. Overall, our EnvP index provides a lot of substantial information on environmental policy and can help assist the policy and financial community in understanding how these regulations are perceived by investors | providing many avenues for future research.
Topic:
Environment, Investment, Mining, and Carbon Emissions
Political Geography:
North America and United States of America

14. Heterogeneous impacts of school fee elimination in Tanzania: gender and colonial infrastructure

Author:
Roxana Elena Manea and Pedro Naso
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
In this study, we investigate the impacts of the 2002 elimination of primary school fees in Mainland Tanzania. We explore how the magnitude of these effects depends on gender and the size of early investments in the educational infrastructure of Tanganyika. We use the 2002 and 2012 census waves as well as historical information on the location of schools in the late 1940s, and conduct a difference-in-differences analysis. We find that exposure to an average of 1.7 years of free primary education has reduced the proportion of people who have never attended primary education by 6.8 percentage points. The benefits of fee removal have been significantly larger for females compared to males, and females from districts where the size of investments in education was relatively larger during colonial rule have been the greatest beneficiaries.
Topic:
Education, Infrastructure, Colonialism, Gender, and Schools
Political Geography:
Africa and Tanzania

15. School feeding programmes, education and food security in rural Malawi

Author:
Roxana Elena Manea
Publication Date:
05-2021
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Existing investigations of the impact of school feeding programmes on educational out- comes have provided mixed evidence of success. In this chapter, I investigate a potential explanation for this lack of consensus in the literature. I argue that the prevailing food security situation at the time and place of the programme's evaluation plays a major role. I study the case of rural Malawi. I use an instrumental variable approach and propensity score matching to estimate the impact of school feeding on primary school enrolment and retention rates. I focus on villages with overlapping characteristics. I estimate that school feeding has increased enrolments by 7 percentage points on average, but the im- pact on retention rates has been relatively limited. However, when I distinguish between food-secure and food-insecure areas, not only do I finnd a larger impact on enrolments in food-insecure areas, but I also uncover a significant increase of around 2 percentage points in the retention rate of students in these same areas. Across the board, impacts are not significant in food-secure areas. I conclude that school feeding programmes bear an impact on education as long as they also intervene to relax a binding food constraint.
Topic:
Development, Education, Government, Food, Food Security, and Nutrition
Political Geography:
Malawi

16. Heterogeneous impacts of school fee elimination in Tanzania: gender and colonial infrastructure

Author:
Roxana Elena Manea and Pedro Naso
Publication Date:
05-2021
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
In this study, we investigate the impacts of the 2002 elimination of primary school fees in Mainland Tanzania. We explore how the magnitude of these effects depends on gender and the size of early investments in the educational infrastructure of Tanganyika. We use the 2002 and 2012 census waves as well as historical information on the location of schools in the late 1940s, and conduct a difference-in-differences analysis. We find that exposure to an average of 1.7 years of free primary education has reduced the proportion of people who have never attended primary education by 6.8 percentage points. The benefits of fee removal have been significantly larger for females compared to males, and females from districts where the size of investments in education was relatively larger during colonial rule have been the greatest beneficiaries.
Topic:
Education, Gender Issues, Post Colonialism, Infrastructure, Women, and Colonialism
Political Geography:
Africa and Tanzania

17. What do investors in electric vehicles technologies want?

Author:
Bettina Kast, Eva Bortolotti, and Joëlle Noailly
Publication Date:
09-2020
Content Type:
Policy Brief
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
With 25% of worldwide emissions due to road transport, the deployment of electric vehicles (EVs), full battery electric vehicles and plug-in hybrid electric vehicles – presents many promises to mitigate climate change. Despite its rapid growth, the market share of EVs vehicle remains low in Europe. Norway leads the EV market with 10% of total vehicle stock, followed by Iceland (3.3%), the Netherlands (1.9%) and Sweden (1.6%) (IEA, 2019). This Policy Brief presents the results of a survey among European clean tech investors examining which policy instruments and design can best mobilize private investments to advance e-mobility technologies.
Topic:
Environment, Science and Technology, Green Technology, Private Sector, Transportation, and Ecology
Political Geography:
Europe, Norway, and Netherlands

18. What drives them to invest in the sustainable mobility transition ? Evidence from a conjoint experiment on European investors' policy preferences

Author:
Eva Bortolotti
Publication Date:
10-2020
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Substantial private investment is required if public policy objectives aim to increase the market share of Electric Vehicles (EVs) and prevent locking-in emissions-intensive development pathways. To maximize the effectiveness of future policies and successfully attract private capital, policy makers need to gain a better understanding of how investors behave, and of how policy design can drive investments decisions. This paper leverages an adaptive conjoint analysis (ACA) method to investigate the policy preferences of 41 European investors affiliated with different investment institutions. Findings reveal that investors' characteristics as institution type and size of assets under management affect investors' preferences over different e-mobility policy attributes. Furthermore, this study shows that behavioral factors, namely investors' a-priori beliefs on the impacts of climate change and the COVID-19 crisis, play a role in determining investors' policy preferences. By providing an analysis of investors' behavior, this research can support policymakers to design more effective policy instruments to attract investments in electric mobility during and after the COVID-19 crisis.
Topic:
Environment, Green Technology, Investment, Private Sector, COVID-19, Ecology, Motor Vehicles, and Cars
Political Geography:
Europe

19. The heterogeneous impact of coal prices on the location of cleaner and dirtier steel plants

Author:
François Cohen and 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, and Price
Political Geography:
Europe

20. Policy uncertainty and renewable energy investments in Romania

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, and Fossil Fuels
Political Geography:
Eastern Europe and Romania

21. Darkness at noon: deforestation in the new authoritarian era

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, and Environment
Political Geography:
Brazil and Latin America

22. Environmental regulation in a transitional political system: delegation of regulation and perceived corruption in South Africa

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, and Pollution
Political Geography:
Africa and South Africa

23. Food security and land use in the 21st century: the return of Malthusianism

Author:
Timothy M. Swanson
Publication Date:
12-2019
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
The coming century is set to pose many important problems regarding population, food requirements and land use. In many ways, the problem facing us is a stark reminder of Malthus’ predictions regarding the importance of resource constraints in the face of population growth. Despite questions concerning the core of the problems to be solved, there is little issue concerning the manifestations of these problems. First, we are seeing the culmination of a long-term process of human population growth, which commenced in earnest about 250 years previously (about the time of Malthus) and escalated thereafter, continuing to this day. A global population that was only about a million individuals in 1750, escalated to about two billion individuals in 1950, and has since increased to approximately seven billion.
Topic:
Agriculture, Food, Population, Food Security, Land Rights, and Population Growth
Political Geography:
United Nations and Global Focus

24. Impacts of legal and regulatory institutions on economic development

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, and Economic Policy
Political Geography:
Africa, South Africa, and Sierra Leone

25. Land grabs, big business and large-scale damages

Author:
Christophe Gironde
Publication Date:
12-2019
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
The history of the world is a story of lands conquered by violence. Today, money has replaced weapons. Lands are bought. In very large quantities. The current wave of land grabbing is a phenomenon of hard conquest and a dramatic one for local populations and the environment.
Topic:
Environment, Land Law, Violence, Money, Land Rights, and Land
Political Geography:
South Asia

26. Do financing constraints matter for the direction of technical change in energy R&D?

Author:
Joëlle Noailly and Roger Smeets
Publication Date:
03-2018
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
The objective of this study is to examine the impact of firms' financing constraints on innovation activities in renewable (REN) versus fossil-fuel (FF) technologies. Our empirical methodology relies on the construction of a firm-level dataset for 1,300 European firms over the 1995-2009 period combining balance-sheet information linked with patenting activities in REN and FF technologies. We estimate the importance of the different types of financing (e.g. cash flow, long-term debt, and stock issues) on firms' patenting activities for the different samples of firms. We use count estimation techniques commonly used for models with patent data and control for a large set of firm-specific controls and market developments in REN and FF technologies. We find evidence for a positive impact of internal finance on patenting activities for the sample of firms specialized in REN innovation, while we find no evidence of this link for other firms, such as firms conducting FF innovation or large mixed firms conducting both REN and FF innovation. Hence, financing constraints matter for firms specialized in REN innovation but not for other firms. Our results have important implications for policymaking as the results emphasize that small innovative newcomers in the field of renewable energy are particularly vulnerable to financing constraints.
Topic:
Environment, Sustainable Development Goals, Green Technology, Renewable Energy, and R&D
Political Geography:
Global Focus

27. Taking stock of international law responses to resource wars

Author:
Lys Kulamadayil
Publication Date:
03-2018
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
In the last 20 years, a significant body of literature has evolved around the phenomenon of resource wars. The term “resource war” is used to describe different linkages between natural resources and conflict. It refers to: (1) conflicts that are fought over access and control of scare, or valuable resources; (2) conflicts sustained through the trade with resources; (3) conflicts that involve the looting of the natural resources by an occupying power, and finally; (4) conflicts where the destruction of the environment or of industrial facilities serving resource exploitation is used as a strategy of warfare. Resource wars certainly have diverse legal implications, yet international law norms have primarily developed in response to the following sets of issues.
Topic:
Conflict Resolution, War, Natural Resources, Conflict, and Law of Armed Conflict
Political Geography:
United States and Sierra Leone

28. The new US tax credits and carbon negative technologies

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, and Global Warming
Political Geography:
Global Focus

29. The perils of development aid in resource-rich countries

Author:
Chiara Ravetti
Publication Date:
03-2018
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
The emergence of China and other new donors offering foreign assistance to mineraland land-rich African countries has spurred a renewed interest in the relationship between international aid and natural resources (Dreher and Fuchs, 2015; Dreher et al., 2018). Many low-income countries with valuable natural resources have historically received large amounts of aid from OECD donors (Fig. 1). Poor countries endowed with abundant fossil fuels or mineral reserves can have difficulties in converting their resource wealth into other forms of physical or human capital, because these subsoil assets take time to be managed, extracted and traded. Foreign aid can thus provide a complementary source of immediate liquidity for development. On the other hand, the provision of external finances has the potential to hinder political accountability, and ultimately economic development especially in countries with weak institutions.h countries
Topic:
Development, Humanitarian Aid, Foreign Aid, and Development Aid
Political Geography:
Global Focus

30. Can there be benefits from competing legal regimes?: the impact of legal pluralism in post-conflict Sierra Leone

Author:
Pedro Naso, Erwin Bulte, and Tim Swanson
Publication Date:
10-2017
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We investigate the impact of competition between legal regimes on the number of authoritative acts and amount of fines occurring in rural Sierra Leone. We model state and traditional legal systems as competing authorities with a potential for overlap in their jurisdictions. We are interested in the sign and magnitude of the legal pluralism externality in this region of overlapping authority. We then test the model and estimate the size of the externality coefficient in the context of post-conflict Sierra Leone. Our results show a negative externality between regimes for civil disputes—that is, an increase in the cost of apprehending a person. We also show that there is a reduction in the amount of fines per dispute collected in this shared space. Overall, this indicates that a potential benefit to the local people from multiple competing regimes is a reduction in expected authoritative expropriation.
Topic:
Civil War, Post-Conflict, and Legal Dualism
Political Geography:
Africa and Sierra Leone

31. The Porter Hypothesis Goes to China: Spatial Development, Environmental Regulation and Productivity

Author:
Pedro Naso, Yi Huang, and Tim Swanson
Publication Date:
10-2017
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We examine the relationship between environmental regulation and competitiveness in China. Exploiting exogenous changes in national pollution standards for three industries—ammonia, paper and cement—we test whether environmental regulation increases industry productivity. Our results show that the strong version of the Porter hypothesis does not hold, but that regulation might reallocate productivity spatially. We show that regulated industries that are located in newly developing cities see an increase in their productivity as compared to the same industries in other cities. This means that environmental regulation is more likely to drive the spatial distribution of productivity changes than it is to drive the pace and direction of technological change.
Topic:
Development, Environment, Science and Technology, Regulation, Productivity, and Competition
Political Geography:
China and Asia

32. The Impact of Energy Prices on Product Innovation: Evidence from the UK Refrigerator Market

Author:
François Cohen, Matthieu Glachant, and Marie Söderberg
Publication Date:
01-2017
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper uses product-level data from the UK refrigerator market to evaluate the impact of electricity prices on product innovation. Our best estimate is that a 10% increase in the electricity price reduces the average energy consumption of commercialized refrigerator models by 2%. A large share of this reduction is explained by a reduction of freezing space. We also show that the exit of energy-inefficient products contributes more to energy reduction than the launch of new energy-efficient models. These findings suggest that innovation – the development of better technologies embodied in new products – does not respond strongly to energy price variations.
Topic:
Innovation, Electricity, Efficiency, and Energy
Political Geography:
United Kingdom and Europe

33. How Does Environmental Regulation Shape Economic Development? A Tax Competition Model of China

Author:
Pedro Naso and Tim Swanson
Publication Date:
10-2017
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We propose a novel theoretical framework to study how environmental regulation shapes economic development in a developing country such as China. We develop a dynamic tax competition model in which local governments, located in development zones, use variation in taxes to attract workers to their jurisdictions. Their objective is to maximize tax revenue less local health costs that are proportional to local pollution. Our main result is that competition generates a reallocation of productive factors when national regulation is introduced. Local governments in more productive regions set greater production taxes than in other regions. This makes workers and output to shift from more to less developed regions of the country.
Topic:
Environment, Regulation, Tax Systems, Economic Development, and Competition
Political Geography:
China and Asia

34. Follow-the-Leader? Measuring the Internalisation of Law

Author:
Shaun Larcom, Luca Panzone, and Tim Swanson
Publication Date:
01-2017
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Expressive law is said to induce compliance with stated principles without a price on noncompliance. We empirically assess this proposition, by attempting to dis-entangle the impacts of a legal change (a 5p charge on use of plastic bags), on individual choices. We do so by measuring both behaviours and attitudes across the first two months of the legal change, and by comparing the impacts across neighboring jurisdictions both with and without the change. Using mediation analysis, we find that the self-reported change in internal motivation explains only about 10% of the change in behaviour. Interestingly, we find that the scale of the sanction (charge) is both irrelevant (because jurisdictions without sanctions still exhibit changed behaviour) and important (because the size of the sanction signals the reasonableness of the law).
Topic:
Law, Behavior, and Internalization of Law
Political Geography:
Global Focus

35. Driven up the wall? Role of environmental regulation in innovation along the automotive global value chain

Author:
Suchita Srinivasan
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Are environmental regulations imposed on downstream firms effective in spurring innovation in clean technologies by upstream firms? We use a novel firm-level dataset of global scope to study whether environmental regulations have percolated up the automotive global value chain, and led to innovation (measured by patenting in abatement technologies) by suppliers at different levels of the chain. Using a Poisson estimation methodology, we find that suppliers worldwide have responded to increasingly stringent emission standards imposed on automobile manufacturers (also known as original equipment manufacturers, or OEMs) by undertaking more innovation in clean abatement technologies; additionally, we find that the smaller the gap between the average environmental regulation suppliers face from the OEMs, and that in the country where the firm is located, the more the firm innovates. In addition, we provide evidence of a spread of these positive effects of regulation on innovation, with suppliers at different upstream levels responding positively to the downstream standards. This paper has important policy implications for the design of environmental policy instruments to induce innovation in clean technologies by firms along the value chain.
Topic:
Environment, Regulation, Global Value Chains, Patents, and Automotive Industry
Political Geography:
Global Focus

36. Discrimination and Favouritism Among Workers: Union Membership and Ethnic Identity

Author:
Chiara Ravetti, Mare Sarr, Tim Swanson, and Daniel Munene
Publication Date:
10-2017
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper analyses how labour institutions and ethnic identity shape favouritism and discrimination among workers. We conduct an experiment with union and non-union South African mineworkers from various ethnicities. We examine in-group and out-group behaviour, emphasizing the relative ranking of these groups and their interaction. We find that unions create both in-group and out-group favouritism towards co-ethnic members and members of ethnic majorities. This favouritism is however undermined by unionised subcontract workers who experience precarious conditions. Furthermore, union members discriminate against non-unionised ethnic minorities. Finally, non-union members (primarily subcontract workers) discriminate against union members, particularly after negative shocks.
Topic:
Ethnicity, Discrimination, Mining, Labor Market, and Trade Unions
Political Geography:
Africa and South Africa

37. Transfer of Improved Varieties in Informal Markets and the Diffusion of Embedded Innovation: Experimentation with Genetic Resources in Uganda

Author:
Bozzola Martina, Tim Swanson, and Helena Ting
Publication Date:
01-2016
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We look at the diffusion of seed technology among Ugandan farmers. We present a targetinput model to conceptualize the adoption decisions of a new technology in which the best use of inputs is unknown. In this framework, there is path dependency in the adoption process. We show that the group of innovators is well-defined but too small to overcome the system’s inertia. We find little evidence that seed policy reforms implemented in Uganda in the past 20 years boosted agricultural productivity, largely on account of a lack of local experimentation and inadequate use and diffusion of new seed varieties.
Topic:
Markets, Farmers, Peer Effects, and Seeds
Political Geography:
Uganda and Africa

38. The Impact of Green Innovation on Energy Intensity: An Empirical Analysis for 14 Industrial Sectors in OECD Countries

Author:
Jules-Daniel Wurlod and Joëlle Noailly
Publication Date:
03-2016
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper analyses the impact of green innovation on energy intensity in a set of 14 industrial sectors in 17 OECD countries over the 1975-2005 period. We create a stock of green patents for each industrial sector and estimates a translog cost function to measure the impact of green innovation on energy intensity, next to other factors such as input substitution and autonomous technical change. We find that green innovation has contributed to the decline in energy intensity in the majority of sectors: the median elasticity of energy intensity with respect to green patenting is estimated at -0.03 in our sample. Hence, a 1% increase in green patenting activities in a given sector is associated with a 0.03% decline in energy intensity. The magnitude of the effect is larger in energy-intensive sectors and in more recent years. We also find that the impact of an additional green patent on energy intensity is larger than an average non-green patent. Our results are robust to alternative definitions of patents.
Topic:
Science and Technology, Green Technology, Innovation, Industry, Patents, OECD, and Energy
Political Geography:
Global Focus

39. Environmental Regulations and Competitiveness: Evidence based on Chinese firm data

Author:
Ankai Xu
Publication Date:
01-2016
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper provides empirical evidence in support of the Porter hypothesis that tighter environmental regulations can increase productivity under certain circumstances. It builds on a theoretical model in which environmental regulations induce firms to adopt more efficient technologies. Using Chinese firm-level data covering a ten-year period, the empirical study examines the effects of two specific policy instruments - the pollution levy and regulatory standards - on firm productivity. It finds a bell-shaped relationship between pollution levies and the total factor productivity of firms, indicating that an increase in the pollution levy rate can be associated with higher productivity. In addition, the study investigates the effect of pollution emission standards on firm productivity and identifies an initial negative effect which diminishes after a period of two to three years.
Topic:
Environment, Regulation, Innovation, and Productivity
Political Geography:
China and Asia

40. Why Give Aid to Resource-Rich Autocrats?

Author:
Mare Sarr, Chiara Ravetti, and Tim Swanson
Publication Date:
11-2015
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Why give aid to resource-rich autocrats? We find that the interaction between natural resources and most forms of international aid results in enhanced political instability in most autocratic countries. Interestingly, some types of government aid (notably humanitarian aid) do not have this effect, indicating that the impact of aid varies with its form. Furthermore, we find that only aid structured in the form of loans (rather than grants) is more likely to flow toward resource-rich autocracies. This combination of loans with any political instability they may induce, can create speculative rights (for the donor) in the resource-riches of the recipient country. This potential claim on resources provides one important strategic reason to give aid to resource-rich autocrats. Aid can act as a form of foreign intervention in the pursuit of regime change, and claims on resources.
Topic:
Foreign Aid, Economic Growth, Dictatorship, Autocracy, Resource Management, and Looting
Political Geography:
Global Focus

41. Using discrete choice experiments to regulate the provision of water services: Do status quo choices reflect preferences?

Author:
Bruno Lanz and Allan Provins
Publication Date:
02-2015
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Discrete choice experiments (DCE) are increasingly used to quantify the demand for improvements to services provided by regulated utility companies and inform price controls. This form of preference elicitation, however, often reveals a high frequency of status quo (SQ) choices. This may signal an unwillingness of respondents to evaluate the proposed trade-offs in service levels, questioning the welfare theoretic interpretation of observed choices and the validity of the approach for regulatory purposes. Using the methodology for DCE in the regulation of water and sewerage services in England and Wales, our paper contributes to the understanding of SQ choices in several novel dimensions. First, we control for the perception of the SQ and the importance of attributes in day-to-day activities. Second, we use a split sample design to vary both the description of the SQ and the survey administration mode (online vs. in-person). Third, the service attributes can both improve or deteriorate, so that the SQ is not necessarily the least-cost option. Fourth, we examine SQ choices in individual choice tasks and across all tasks so as to identify the determinants of serial SQ choices. Our results suggest that individual SQ choices mostly reflect preferences and thus represent important information for the regulator. However, serial SQ choices are mainly driven by cognitive and/or contextual factors, and these responses should be analysed as part of standard validity tests.
Topic:
Regulation, Economy, Decision-Making, Utilities, Cost-Benefit Analysis, and Status Quo
Political Geography:
Global Focus

42. The value of air quality in Chinese cities: Evidence from labor and property market outcomes

Author:
Xuan Huang and Bruno Lanz
Publication Date:
11-2015
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Using a dual-market sorting model of workers’ location decisions, this paper studies the capitalization of air pollution in wages and property prices across Chinese cities. We exploit quasi-experimental variations in particulate matter (PM10) concentration induced by a policy subsidizing coal-based winter heating in northern China, specifying a regression discontinuity design based on cities’ location relative to the policy boundary. We estimate that the elasticity of wages and house prices with respect to PM10 concentration is 0.41 and -0.71 respectively. Our results are robust to the use of an alternative source of exogenous variation in PM10 concentration (sandstorms), supporting the view that the local effect we measure provides policy-relevant information on the value of air quality improvements in China.
Topic:
Housing, Labor Market, Air Pollution, and Public Goods
Political Geography:
China and Asia

43. Emissions Trading in the Presence of Price-Regulated Polluting Firms: How Costly Are Free Allowances?

Author:
Bruno Lanz and Sebastian Rausch
Publication Date:
01-2015
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We study whether to auction or to freely distribute emissions allowances when some firms participating in emissions trading are subject to price regulation. We show that free allowances allocated to price-regulated firms effectively act as a subsidy to output, distort consumer choices, and generally induce higher output and emissions by price-regulated firms. This provides a cost-effectiveness argument for an auction-based allocation of allowances (or equivalently an emissions tax). For real-world economies such as the Unites States, in which about 20 percent of total carbon dioxide emissions are generated by price-regulated electricity producers, our quantitative analysis suggests that free allowances increase economy-wide welfare costs of the policy by 40-80 percent relative to an auction. Given large disparities in regional welfare impacts, we show that the inefficiencies are mainly driven by the emissions intensity of electricity producers in regions with a high degree of price regulation.
Topic:
Climate Change, Regulation, Electricity, Pollution, and Price
Political Geography:
Global Focus

44. Chasing After the Frontier in Agricultural Productivity

Author:
Jules-Daniel Wurlod and Derek Eaton
Publication Date:
11-2015
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper explores international productivity patterns in agriculture. We test whether countries higher productivity growth has been experienced by countries that were initially further from the technological frontier. Based on a panel of 84 countries at various levels of development, we find support for convergence among OECD countries but divergence in our sample at large over the period 1960-2010. We then test whether technological catch-up is conditional on absorptive capacities and domestic investments in R&D. While agricultural research intensity has a significant effect on labor productivity growth, the size of this effect decreases the further the country is from the frontier. We calculate a threshold level for the effectiveness of research intensity: increased R&D contributes to catching up to the frontier for those countries with a distance to the frontier less than 22. We also test for additional factors affecting productivity growth, and find that secondary education plays a strong role in less developed countries, while trade openness appears to have had a positive effect on productivity in middle income countries. On the other hand, there is little evidence of much effect, either positive or negative from IPR protection. Of perhaps greater interest is the apparent impact of economic growth outside of agriculture in driving agricultural productivity improvements.
Topic:
Agriculture, Education, Productivity, Research and Development, and Convergence
Political Geography:
Global Focus

45. Avertive expenditures, endogenous quality perception, and the demand for non-market goods: An instrumental variable approach

Author:
Bruno Lanz
Publication Date:
08-2015
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
In response to the perceived quality of a non-market good, households may choose to incur avertive expenditures as a substitute to its aggregate provision, thereby revealing an (inverse) demand function. When unobserved heterogeneity affects both perceived quality and avertive behavior, identification is plagued by a problem of endogeneity. In this paper, I propose to use a first stage model of perceived quality as a function of objective quality to address the endogeneity problem. The exclusion restriction is theoretically motivated, and requires people to have well-formed perceptions of the quality of the good. Moreover, the first stage quantifies the relationship between perceived and objective quality measures, so that this approach can provide micro-consistent marginal willingness to pay estimates for changes in the policy-relevant objective level of provision. As an illustration, I employ data on avertive expenditures for two qualitative aspects of household tap water supply: water hardness and aesthetic quality in terms of taste and odor.
Topic:
Water, Regulation, and Public Goods
Political Geography:
Global Focus

46. Resistance to the Regulation of Common Resources in Rural Tunisia

Author:
Xiaoying Liu, Mare Sarr, and Timothy M. Swanson
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We examine the effect of the introduction of uniform water-charging for aquifer management and provide evidence using a survey-based choice experiment of agricultural water users in rural Tunisia. Theoretically, we show that the implementation of the proposed second-best regulation would result both in efficiency gains and in distributional effects in favour of small landholders. Empirically, we find that resistance to the introduction of an effective water-charging regime is greatest amongst the largest landholders. Resistance to the regulation of common resources may be rooted in the manner in which heterogeneity might determine the distributional impact of different management regimes.
Topic:
Natural Resources, Water, and Regulation
Political Geography:
North Africa and Tunisia

47. Multinational Firms and the Internationalization of Green R&D: A Review of the Evidence and Policy Implications

Author:
Joëlle Noailly and David Ryfisch
Publication Date:
12-2014
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper presents novel empirical evidence on the internationalization of green R&D by multinational firms (MNCs), as measured by patents data. Using data on inventors’ addresses for the set of 1,200 MNCs firms patenting in green technologies over the 2004-2009 period, we find that about 17% of green patents result from MNCs R&D investments conducted outside their home countries. MNCs tend to locate their foreign green R&D activities in other OECD markets and in China, in particular in lightings and solar technologies. The empirical analysis reveals that the probability of conducting green R&D abroad increases with the host country’s stringency of environmental regulation, market size and (green) R&D intensity. Also, relatively lower wages for scientists and engineers, and stronger protection for intellectual property rights in the host country increase the likelihood for MNCs to offshore green R&D. The paper concludes by discussing the policy implications of this changing global innovation landscape.
Topic:
Green Technology, Multinational Corporations, and Research and Development
Political Geography:
Global Focus

48. Estimating the demand for tap water quality: Avertive expenditures on substitutes for hardness and aesthetic quality

Author:
Bruno Lanz and Allan Provins
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper uses avertive expenditures to estimate the demand for qualitative aspects of tap water supply. We focus on two characteristics that are of importance for water consumers: water hardness and aesthetic quality in terms of taste, smell and appearance. To elicit expenditures on substitute products, we survey more than 4,500 households in England and Wales. For water hardness, around 14% of households employ at least one water softener device, with mean and median yearly expenditure around £95 and £50 respectively. Substitutes for the aesthetic quality of tap water mainly include bottled water, water filter devices, or adding squash or cordial before drinking. Overall 39% of respondents report at least one such behaviour, with mean and median yearly expenditure around £92 and £60 respectively. These are substantial amounts given a yearly average household bill of £186 for water services. Matching household data to highly disaggregated records on regional water hardness, our econometric analysis suggests that a 10% reduction in water hardness is associated with a £1.50 reduction in avertive expenditures. We also exploit geographic variation in the aesthetic characteristics of tap water, and correlate self-reported quality ratings to expenditures. We find that a one-fifth increase in the rating of water taste is associated with a £19 reduction in yearly expenditures.
Topic:
Water, Economy, Demand, and Spending
Political Geography:
Global Focus

49. Documenting Legal Dissonance: Legal Pluralism in Papua New Guinea

Author:
Shaun Larcom and Timothy Swanson
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We examine the case of payback killings and similar retributive sanctions in the context of a transplant regime such as that existing in Papua New Guinea. This is a post-colonial regime with multiple overlaid legal systems, with significant negative interaction existing between the different regimes. We explain how multiple regimes can co-exist in the context of negative externalities. To explain such an outcome, we provide a simple model for considering the interaction between legal regimes within a single jurisdiction. We demonstrate that, even when the fundamental relationship between such regimes is to behave as substitutes for one another, the existence of negative externalities between the enforcement technologies can result in the withdrawal of enforcement efforts. We term this phenomenon legal dissonance – the situation in which legal regimes interact negatively in their production technologies. This model is then applied to the post-colonial state of Papua New Guinea where we use survey data to identify significant negative production externalities in the enforcement of informal law. We suggest that disorder may be the outcome of too much law.
Topic:
Law Enforcement, Law, Norms, and Pluralism
Political Geography:
Papua New Guinea

50. Directing Technical Change from Fossil-Fuel to Renewable Energy Innovation: An Application Using Firm-Level Patent Data

Author:
Joëlle Noailly and Roger Smeets
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper investigates the determinants of directed technical change at the firm level in the electricity generation sector. We use firm-level data on patents filed in renewable (REN) and fossil fuel (FF) technologies by 5,261 European firms over the period 1978-2006. We investigate how energy prices, market size and knowledge stocks affect firms’ incentives to innovate in one technology relative to another and how these factors may thereby induce a shift from FF to REN technology in the electricity generation sector. We separately study small specialized firms, which innovate in only one type of technology during our sample period, and large mixed firms, which innovate in both technologies. We also separate the extensive margin innovation decision (i.e. whether to conduct innovation) from the intensive margin decision (i.e. how much to innovate). Overall, we find that all three factors - energy prices, market sizes and past knowledge stocks - matter to redirect innovation towards REN and away from FF technologies. Yet, we find that these factors have a larger impact on closing the technology gap through the entry (and exit) of small specialized firms, rather than through large mixed firms’ innovation. An implication of our results is that firm dynamics are of direct policy interest to induce the replacement of FF by REN technologies in the electricity generation sector.
Topic:
Innovation, Renewable Energy, Fossil Fuels, Patents, and Firm Dynamics
Political Geography:
Global Focus