Template-type: ReDIF-Paper 1.0
Author-Name: R. J. Nicholls
Author-Workplace-Name: University of Southampton
Author-Name: S. Hanson
Author-Workplace-Name: University of Southampton
Author-Name: Celine Herweijer
Author-Workplace-Name: Risk Managment Solutions Limited
Author-Name: Nicola Patmore
Author-Workplace-Name: Risk Managment Solutions Limited
Author-Name: Stéphane Hallegatte
Author-Workplace-Name: Centre International de Recherche sur l'Environnement et le Développement
Author-Name: Jan Corfee-Morlot
Author-Workplace-Name: OECD
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Author-Name: Robert Muir-Wood
Author-Workplace-Name: Risk Managment Solutions Limited
Title: Ranking Port Cities with High Exposure and Vulnerability to Climate Extremes: Exposure Estimates
Abstract: This global screening study makes a first estimate of the exposure of the world's large port cities to coastal flooding due to storm surge and damage due to high winds. This assessment also investigates how climate change is likely to impact each port city's exposure to coastal flooding by the 2070s, alongside subsidence and population growth and urbanisation. The study provides a much more comprehensive analysis than earlier assessments, focusing on the 136 port cities around the world that have more than one million inhabitants in 2005. The analysis demonstrates that a large number of people are already exposed to coastal flooding in large port cities. Across all cities, about 40 million people (0.6% of the global population or roughly 1 in 10 of the total port city population in the cities considered here) are exposed to a 1 in 100 year coastal flood event. For present-day conditions (2005), the top ten cities in terms of exposed population are estimated to be Mumbai, Guangzhou, Shanghai, Miami, Ho Chi Minh City, Kolkata, Greater New York, Osaka-Kobe, Alexandria and New Orleans; almost equally split between developed and developing countries. When assets are considered, the current distribution becomes more heavily weighted towards developed countries, as the wealth of the cities becomes important. The top 10 cities in terms of assets exposed are Miami, Greater New York, New Orleans, Osaka-Kobe, Tokyo, Amsterdam, Rotterdam, Nagoya, Tampa-St Petersburg and Virginia Beach. These cities contain 60% of the total exposure, but are from only three (wealthy) countries: USA, Japan and the Netherlands. The total value of assets exposed in 2005 is across all cities considered here is estimated to be US$3,000 billion; corresponding to around 5% of global GDP in 2005 (both measured in international USD)...<BR>Cette étude globale propose une première estimation de l'exposition des grandes villes portuaires aux inondations côtières, dues aux marées de tempête, et aux vents forts. Elle s'intéresse en particulier aux effets du changement climatique sur l'exposition de chacune de ces villes à l'horizon des années 2070. Cette évaluation comprend les 136 villes côtières qui ont plus d'un million d'habitants dans le monde en 2005. Elle est donc beaucoup plus exhaustive que les estimations disponibles jusqu'à présent. Cette analyse montre que la population des villes portuaires exposée aux inondations côtières est déjà très importante. Dans les villes considérées par cette étude, environ 40 millions de personnes (soit 0.6% de la population mondiale et environ un habitant sur dix de ces villes) sont exposés à l?inondation centennale (celle dont la probabilité annuelle est de 1% et le temps de retour 100 ans). Dans les conditions présentes (en 2005), les dix villes les plus exposées en termes de population sont Bombay, Canton, Shanghai, Miami, Ho Chi Minh Ville, Calcutta, l?agglomération New-yorkaise, Osaka- Kobe, Alexandrie et la Nouvelle Orléans. Ces villes sont également réparties entre pays développés et pays en développement. Quand on s'intéresse au patrimoine exposé, les pays développé deviennent beaucoup plus représentés, car le niveau de vie est alors un facteur essentiel. Les dix villes les plus exposées en terme de patrimoine sont Miami, l'agglomération New-yorkaise, la Nouvelle Orléans, Osaka-Kobe, Tokyo, Amsterdam, Rotterdam, Nagoya, Tampa-Saint-Petersbourg, et Virginia Beach. Ces villes représentent 60% de l'exposition totale, mais sont dans seulement trois pays riches : les USA, le Japon et la Hollande. La valeur totale du patrimoine exposé en 2005 est estimée à 3.000 milliards de dollars américains, ce qui correspond à environ 5% du PIB annuel mondial...
Classification-JEL: Q01; Q54; Q56; Q58
Keywords: climate change, coastal zones, environment & development, flood management, global warming, natural disasters, public policy, sustainable development
Creation-Date: 2008-11-19
Number: 1
Handle: RePEc:oec:envaaa:1-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Pascale Scapecchi
Author-Workplace-Name: OECD
Title: The Health Costs of Inaction with Respect to Air Pollution
Abstract: How much does the environment affect human health? Is air pollution shortening our lives and those of our children? These questions are fundamental to environmental policies. Air pollution is a major environmental health threat in OECD countries, contributing to a number of illnesses, such as asthma, cancer and premature deaths. Despite national and international interventions and decreases in major emissions, the health impacts of air pollution are not likely to decrease in the years ahead, unless appropriate action is taken. This report presents estimates of the costs and benefits of environmental policies aiming at reducing air pollution and provides policy recommendations in order to better address environmental health issues.<BR>Dans quelle mesure l'environnement influe-t-il sur la santé humaine ? La pollution de l'air va-t-elle restreindre notre espérance de vie et celle de nos enfants ? Ces questions sont fondamentales pour les politiques environnementales. Dans les pays de l'OCDE, la pollution atmosphérique constitue une menace pour la santé, puisqu'elle joue un rôle dans nombre d'affections, telles que l'asthme, certains cancers et de décès prématurés. En dépit des actions engagées à l'échelle nationale et internationale et de la baisse des principales émissions, il est peu probable que les effets de la pollution de l'air sur la santé diminuent dans les années à venir à moins que ne soient prises les mesures qui s'imposent. Ce rapport présente des estimations des coûts et bénéfices de politiques environnementales visant à réduire la pollution atmosphérique et propose des recommandations politiques afin de mieux traiter les questions de santé environnementale.
Classification-JEL: D61; D62; H43; I18; Q51; Q53
Creation-Date: 2008-06-06
Number: 2
Handle: RePEc:oec:envaaa:2-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Stéphane Hallegatte
Author-Workplace-Name: Centre International de Recherche sur l'Environnement et le Développement
Author-Name: Nicola Patmore
Author-Workplace-Name: Risk Managment Solutions Limited
Author-Name: Olivier Mestre
Author-Workplace-Name: Ecole Nationale de la Météorologie, Météo France
Author-Name: Patrice Dumas
Author-Workplace-Name: Centre International de Recherche sur l'Environnement et le Développement
Author-Name: Jan Corfee-Morlot
Author-Workplace-Name: OECD
Author-Name: Celine Herweijer
Author-Workplace-Name: Risk Managment Solutions Limited
Author-Name: Robert Muir-Wood
Author-Workplace-Name: Risk Managment Solutions Limited
Title: Assessing Climate Change Impacts, Sea Level Rise and Storm Surge Risk in Port Cities: A Case Study on Copenhagen
Abstract: This study illustrates a methodology to assess economic impacts of climate change at city scale, focusing on sea level rise and storm surge. It is based on a statistical analysis of past storm surges in the studied city, matched to a geographical-information analysis of the population and asset exposure in the city, for various sea levels and storm surge characteristics. An assessment of direct losses in case of storm surge (i.e. of the damages to buildings and building content) can then be computed and the corresponding indirect losses – in the form of production and job losses, reconstruction duration, amongst other loses – deduced, allowing a risk analysis of the effectiveness of coastal flood protections, including risk changes due to climate change and sea level rise. This methodology is applied in the city of Copenhagen, capital of Denmark, which is potentially vulnerable to the effects of variability in sea level, as a low lying city....
Classification-JEL: E20; O18; Q01; Q54; Q58; R10
Keywords: CIS, climate change, global warming, government policy, natural disasters, sustainable development
Creation-Date: 2008-10-08
Number: 3
Handle: RePEc:oec:envaaa:3-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Stéphane Hallegatte
Author-Workplace-Name: Centre International de Recherche sur l'Environnement et le Développement
Author-Name: Fanny Henriet
Author-Workplace-Name: OECD
Author-Name: Jan Corfee-Morlot
Author-Workplace-Name: OECD
Title: The Economics of Climate Change Impacts and Policy Benefits at City Scale: A Conceptual Framework
Abstract: Climate change has become a priority issue in global environmental governance and cities are important players. For over three decades, the OECD has been actively supporting member and non-member countries to design environmental policies that are both economically efficient and effective at achieving their environmental objectives.1 Through peer reviews of policy implementation, the OECD helps governments to improve their collective and individual environmental performance, through sound economic and policy analysis and dialogue on how to establish and to achieve climate change goals. Climate change has been on the agenda since the late 1980s at the OECD, where we provide a forum for countries to, discuss and develop a shared understanding of the key policy challenges as well as to assess performance and identify good practice in the design and implementation of climate policies. Today the OECD is actively working with governments to highlight the role of cities to deliver cost-effective policy responses to climate change. A number of projects at the OECD are advancing the understanding of the roles that cities can play to respond to efficiently and effectively to climate change. This report is one in a series under the OECD Environment Directorate’s project on Cities and Climate Change. The project aims to explore the city-scale risks of climate change and the local benefits of both adaptation policies and (global) mitigation strategies.
Classification-JEL: Q01; Q51; Q54; Q56; Q58; R00
Keywords: climate change, general macroeconomics, global warming, government policy, natural disasters, regional economics, regional, urban and rural analyses, sustainable development
Creation-Date: 2008-12-10
Number: 4
Handle: RePEc:oec:envaaa:4-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Olof Drakenberg
Author-Workplace-Name: University of Gothenburg
Author-Name: Sandra Paulsen
Author-Workplace-Name: Environmental Protection Agency
Author-Name: Jessica Andersson
Author-Workplace-Name: International Development Cooperation Agency
Author-Name: Emelie Dahlberg
Author-Workplace-Name: University of Gothenburg
Author-Name: Kristoffer Darin Mattsson
Author-Workplace-Name: University of Gothenburg
Author-Name: Elisabeth Wikstrom
Author-Workplace-Name: Environmental Protection Agency
Title: Greening Development Planning: A Review of Country Case Studies for Making the Economic Case for Improved Management of Environment and Natural Resources
Abstract: Different approaches to making the economic case for improved management of natural capital in national planning are reviewed in this report. In many low-income countries natural resources sectors (agriculture, mining, forestry, fishery, nature-based tourism) are identified as the engines of economic growth. However, a majority of the ecosystems on which human well-being depends are being degraded. The difficulties in providing economic and policy-relevant information about sustainable economic management of natural capital are often seen as an important reason for inadequate integration of the environment in macroeconomic and sector polices. The report concludes that the analysed country studies (Lao People's Democratic Republic, Mozambique, Peru, Tajikistan and Uganda) mainly relied on existing domestic or international analytical work, used relatively basic calculations/data (such as the market value of fisheries, the value of timber sold etc.) and often formed part of a broader analytical effort.<BR>Ce rapport examine différentes approches pour défendre du point de vue économique l’amélioration de la gestion du capital naturel dans le cadre de la planification du développement national. Dans beaucoup de pays à faible revenu, les secteurs fondés sur les ressources naturelles (agriculture, activités extractives, foresterie, pêche, tourisme de nature) sont les moteurs de la croissance économique. Pourtant, la majorité des écosystèmes dont dépend le bien-être humain subissent des dégradations. On considère souvent que si l’environnement n’est pas convenablement pris en compte dans les politiques macro-économiques et sectorielles, c’est en grande partie parce qu’il est difficile de produire des informations économiques utiles à l’action des pouvoirs publics sur la gestion économique durable du capital naturel. Les études de cas par pays analysées pour ce rapport (qui concernent le Mozambique, l’Ouganda, le Pérou, la République démocratique populaire lao et le Tadjikistan) reposent principalement sur des travaux analytiques menés précédemment au niveau national ou international, font appel à des calculs et des données relativement simples (comme la valeur marchande des pêcheries, la valeur des ventes de bois, etc.) et s’inscrivent souvent dans une démarche analytique plus vaste.
Classification-JEL: O13; O19; O29; Q1; Q56; Q58
Keywords: coopération pour le développement, development co-operation, développement durable, environmental economics, gestion des ressources naturelles, government policy, natural resources management, politique gouvernementale (énergie), sustainable development, économie de l'environnement
Creation-Date: 2009-01-26
Number: 5
Handle: RePEc:oec:envaaa:5-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Kelly de Bruin
Author-Workplace-Name: Wageningen University
Author-Name: Rob Dellink
Author-Workplace-Name: OECD
Author-Name: Shardul Agrawala
Author-Workplace-Name: OECD
Title: Economic Aspects of Adaptation to Climate Change: Integrated Assessment Modelling of Adaptation Costs and Benefits
Abstract: The present report seeks to inform critical questions with regard to policy mixes of investments in adaptation and mitigation, and how they might vary over time. This is facilitated here by examining adaptation within global Integrated Assessment Modelling frameworks. None of the existing Integrated Assessment Models (IAMs) captures adaptation satisfactorily. Many models do not specify the damages from climate change, and those that do mostly assume implicitly that adaptation is set at an “optimal” level that minimizes the sum total of the costs of adaptation and the residual climate damages that might occur. This report develops and applies a framework for the explicit incorporation of adaptation in Integrated Assessment Models (IAMs). It provides a consistent framework to investigate “optimal” balances between investments in mitigating climate change, investments in adapting to climate change and accepting (future) climate change damages. By including adaptation into IAMs these already powerful tools for policy analysis are further improved and the interactions between mitigation and adaptation can be analysed in more detail. To demonstrate the approach a framework for incorporating adaptation as a policy variable was developed for two IAMs– the global Dynamic Integrated model for Climate and the Economy (DICE) and its regional counterpart, the Regional Integrated model for Climate and the Economy (RICE). These modified models – AD-DICE and AD-RICE – are calibrated and then used in a number of policy simulations to examine the distribution of adaptation costs and the interactions between adaptation and mitigation. Using the limited information available in current models, and calibrating to a specific damage level, so-called adaptation cost curves are estimated for the world. Adaptation cost curves are also estimated for different regions, although given the limited information available to calibrate the regional curves these should be considered as rough approximations of the actual adaptation potential in the different regions. These adaptation cost curves reflect how different adaptation levels will provide a wedge between gross damages (i.e. damages that would occur in the absence of adaptation) and residual damages. The analysis presented suggests that a good adaptation policy matters especially when suboptimal mitigation policies are implemented. Similarly, a good mitigation strategy is more important when optimal adaptation levels are unattainable. The rationale for this result is that both policy control options can compensate to some extent for deviations from the efficient outcome caused by non-optimality of the other control option. It should be noted, however, that in many cases there are limits to adaptation with regard to the magnitude and rate of climate change. The higher the current value of damages, the more important mitigation is as a policy option in comparison to adaptation. The comparison between adaptation and mitigation therefore depends crucially on the assumptions in the model, and especially on the discount rate and the level of future damages. The policy simulations also suggest that to combat climate change in an efficient way, short term optimal policies would consist of a mixture of substantial investments in adaptation measures, coupled with investments in mitigation, even though the latter will only decrease damages in the longer term. The costs of inaction are high, and thus it is more important to start acting on mitigation and adaptation even when there is limited information on which to base the policies, than to ignore the problems climate change already poses. Ongoing increases in expected damages over time imply that adaptation is not an option that should be considered only for the coming decades, but it will be necessary to keep investing in adaptation options, as both the challenges and benefits of adaptation increase. The results of these policy simulations confirm the findings of the Intergovernmental Panel on Climate Change (IPCC) on the relationship between adaptation and mitigation as described in the Synthesis Report of the Fourth Assessment Report. The framework developed in this report opens the door for further simulations that examine adaptation cost issues within other, more complex IAMs. The model additions investigated in this report can also shed light on how the next generation of IAMs will look. These tools can also be further strengthened by the incorporation of more detailed regional knowledge on the impacts of climate change and of adaptation options.<BR>Le présent rapport entend apporter un éclairage sur certaines problématiques essentielles concernant les politiques qui associent investissements dans l’adaptation et investissements dans l’atténuation et leur évolution possible dans le temps. Un tel objectif suppose d’analyser l’adaptation dans le cadre de modèles d’évaluation intégrée. Aucun modèle d’évaluation intégrée ne rend compte de manière satisfaisante de l’adaptation. Bon nombre d’entre eux ne tiennent pas compte des dommages causés par le changement climatique et ceux qui le font partent implicitement de l’hypothèse que l’adaptation est fixée à un niveau « optimal » qui réduit au minimum le montant total représenté par les coûts d’adaptation et les dommages climatiques résiduels risquant d’apparaître. Dans ce rapport, un cadre permettant d’inclure explicitement l’adaptation dans les modèles d’évaluation intégrée a été créé et appliqué. On dispose ainsi d’un cadre cohérent pour examiner les compromis « optimaux » entre l’atténuation du changement climatique, l’adaptation au changement climatique et l’acceptation des (futurs) dommages induits par ce changement. Inclure l’adaptation dans les modèles d’évaluation intégrée permet d’améliorer ces instruments, déjà performants, d’analyse des politiques et d’examiner de manière plus précise les interactions entre adaptation et atténuation. Plus précisément, pour les besoins de ce rapport, un cadre a été mis au point pour inclure l’adaptation parmi les variables de politique publique dans deux modèles d’évaluation intégrée – le Dynamic Integrated model for Climate and the Economy (DICE), qui est un modèle mondial, et son équivalent régional, le Regional Integrated model of Climate and the Economy (RICE). Les modèles modifiés – AD-DICE et AD-RICE – ont été calibrés et utilisés dans plusieurs simulations de politiques pour examiner la composition des coûts de l’adaptation au changement climatique et les interactions entre adaptation et atténuation. Les courbes des coûts d’adaptation ont été estimées à l’échelle mondiale à partir des quelques informations disponibles dans les modèles actuels et après calibrage en fonction d’un niveau de dommages donné. Les mêmes courbes ont été estimées pour différentes régions mais doivent être considérées comme des évaluations approximatives du potentiel réel d’adaptation dans ces régions, compte tenu de la rareté des informations disponibles pour effectuer le calibrage. Ces courbes montrent l’écart que différents niveaux d’adaptation induisent entre les dommages bruts (ceux qui seraient subis en l’absence de mesures d’adaptation) et les dommages résiduels. L’analyse présentée démontre qu’il importe de mettre en place une bonne politique d’adaptation, en particulier lorsque les stratégies d’atténuation sont d’une efficacité insuffisante. De même, la mise en place d’une bonne stratégie d’atténuation est d’autant plus importante que les niveaux d’adaptation optimaux sont impossibles à atteindre. Ce résultat s’explique par le fait que l’une et l’autre de ces options peuvent, dans une certaine mesure, compenser les écarts par rapport au résultat efficient liés à l’insuffisance de l’autre option. Plus la valeur actuelle des dommages est élevée, moins l’adaptation occupe une place importante par rapport à l’atténuation. L’intérêt relatif des deux stratégies dépend beaucoup des hypothèses retenues dans le modèle, en particulier en ce qui concerne le taux d’actualisation et le niveau des futurs dommages. Les simulations de politiques montrent également que pour, lutter de manière efficiente contre le changement climatique, les politiques de court terme devraient associer des investissements substantiels dans des mesures d’adaptation et des investissements dans des mesures d’atténuation, même si la réduction des dommages induite par les mesures d’atténuation ne concerne que des périodes ultérieures. Le coût de l’inaction étant élevé, il vaut mieux agir même lorsque l’on dispose de peu d’informations à l’appui de l’élaboration des politiques qu’ignorer les problèmes qu’entraîne déjà le changement climatique. Les dommages attendus augmentant continûment au fil du temps, il convient de ne pas considérer que l’adaptation est une option à n’envisager que dans les décennies à venir et, au contraire, de continuer à investir dans les mesures d’adaptation puisque les bénéfices de ces mesures et les problèmes qu’elles posent augmentent. Les résultats de ces simulations de politique confirment les conclusions du Groupe d’experts intergouvernemental sur l’évolution du climat (GIEC) sur la relation entre l’adaptation et l’atténuation décrite dans le Résumé du Quatrième Rapport d’évaluation. Le cadre élaboré dans le présent rapport ouvre la voie à d’autres simulations, qui feront appel à des modèles d’évaluation intégrée plus complexes pour examiner les questions en lien avec les coûts de l’adaptation. Les modèles modifiés utilisés peuvent également fournir des informations sur ce que sera la prochaine génération de modèles d’évaluation intégrée. Ces outils peuvent aussi être renforcés en intégrant des connaissances régionales plus approfondies sur les effets du changement climatique et les options d’adaptation.
Classification-JEL: Q25; Q28
Keywords: adaptation, adaptation, changement climatique, climate change, integrated assessment modelling, modèle d’évaluation intégrée
Creation-Date: 2009-03-24
Number: 6
Handle: RePEc:oec:envaaa:6-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Nelly Petkova
Author-Workplace-Name: OECD
Title: Integrating Public Environmental Expenditure within Multi-year Budgetary Frameworks
Abstract: Medium-term approaches to budgeting are now common in OECD countries and are being adopted increasingly by developing countries. This reflects a realisation that the annual approach to budget making actually undermines budgetary performance, contributing to fiscal instability and, perhaps even more fundamentally, to resource misallocation and the inefficient and ineffective use of resources. The purpose of this study has been to analyse how multi-year budgetary processes work in practice in both high income OECD countries and in aid-receiving countries, with a view to identifying the opportunities for, and limits to, financing environmental management. It also provides suggestions to the donor community on how to make better use of multi-year budgeting when providing general support to the budgets of developing countries in order to ensure that environment is included in this process. In this context, the report may be of interest to various audiences. On the one hand, representatives of the ministries of environment and other relevant government agencies with responsibilities for environmental and natural resource management who struggle to prepare medium-term budgets may find this analysis useful. On the other hand, the report is targeted at experts from the ministries of finance and economy who are charged with assessing environmental programmes and taking decisions for their financing. The third target group are those donors who even if they are moving to direct budget support, may still be concerned that the environment sector is adequately funded.<BR>La budgétisation à moyen terme est désormais courante dans les pays de l’OCDE, et les pays en développement y ont de plus en plus recours. On s’est rendu compte, en effet, que la budgétisation annuelle nuisait en réalité à l’exécution du budget, favorisant l’instabilité budgétaire et, de manière peutêtre encore plus fondamentale, une mauvaise allocation et une utilisation inefficace des ressources. La présente étude a pour objet de voir comment la budgétisation pluriannuelle fonctionne concrètement dans les pays de l’OCDE à revenu élevé et dans les pays qui bénéficient d’une aide, afin de déterminer les possibilités et les limites en matière de financement de la gestion environnementale. La communauté des donateurs y trouvera également des propositions quant aux moyens de mieux exploiter la budgétisation pluriannuelle, lors du versement d’une aide budgétaire générale aux pays en développement, pour que l’environnement soit pris en compte dans ce processus. Par conséquent, l’étude est susceptible d’intéresser des publics divers. Tout d’abord, les fonctionnaires chargés d’établir les budgets à moyen terme dans les ministères de l’environnement et autres organismes publics jouant un rôle dans la gestion de l’environnement et des ressources naturelles y trouveront sans doute des informations utiles. Ensuite, l’étude est destinée aux experts des ministères de l’économie et des finances qui s’occupent d’évaluer les programmes de protection de l’environnement et de se prononcer sur leur financement. Enfin, le troisième public visé est celui des donateurs qui, bien que s’orientant vers l’aide budgétaire directe, continuent de veiller à ce que le secteur de l’environnement perçoive un financement suffisant.
Classification-JEL: E61; H61; O13; O19; Q01; Q56; Q57
Keywords: aide budgétaire directe, budget systems, cadres de dépenses à moyen terme, coopération pour le développement, development cooperation, direct budget support, environmental investment programmes, environmental management, environmental public expenditure management, gestion des dépenses publiques de protection de l’environnement, gestion environnementale, medium-term budgeting, medium-term expenditure frameworks, programmes d’investissement en matière d’environnement
Creation-Date: 2009-05-14
Number: 7
Handle: RePEc:oec:envaaa:7-EN

Template-type: ReDIF-Paper 1.0
Author-Name: OECD
Title: Assessing Environmental Management Capacity: Towards a Common Reference Framework
Abstract: The Paris Declaration on Aid Effectiveness calls upon donor and partner countries to enhance the effectiveness and efficiency of country systems in a way that guarantees ownership and sustainable results. Within this context, the current paper provides a synthesis of major elements and approaches of institutional assessment that may be applied to environmental management. It suggests that while a large number of diagnostic tools are in use, their level of elaboration is not sufficient for systemic sector-specific capacity assessments that would match partners’ and donors’ needs. In order to facilitate the improvement of these tools, the paper provides an inventory of core functions for environmental management. This inventory may be used by those involved in capacity assessments to consider more amply specifics of the environmental sector. Each function will need to be associated with benchmarks reflecting the multifaceted nature of institutional capacity. The evolving approaches to environmental management, as well as changes in the international and country context, impose the need to regularly update both the list of functions and complementary benchmarks.<BR>Afin de répondre aux engagements articulés dans la Déclaration de Paris sur l'efficacité de l'aide ainsi qu’aux priorités actuelles en matière de renforcement des capacités, les pays donateurs et partenaires doivent améliorer les performances des systèmes nationaux en garantissant une gestion au niveau local et des résultats durables. La présente étude offre une synthèse des principaux éléments et méthodes de diagnostic institutionnel pouvant être utilisés pour les systèmes de la gestion environnementale. Bien que les outils de diagnostic employés soient nombreux, leur degré d’élaboration demeure insuffisant pour permettre de procéder à des évaluations systémiques des capacités répondant aux modèles contemporains de partenariats entre les donneurs et les bénéficiaires de l’aide. Pour faciliter l’amélioration de ces outils, l’étude recense les fonctions essentielles des autorités publiques en matière de gestion environnementale. Ce recensement peut servir de point de départ à une analyse plus approfondie des capacités. Il sera nécessaire d’associer chaque fonction aux critères spécifiques et, si possible, aux étalons de référence internationaux susceptibles de mieux rendre compte de la nature pluridimensionnelle des capacités institutionnelles. Toutefois, le caractère évolutif des méthodes de gestion environnementale exige que ces fonctions et les éventuels critères d’analyse soient régulièrement mis à jour et affinés en fonction des changements sur le plan national et international.
Classification-JEL: O13; O17; Q01; Q56; Q58
Keywords: capacity assessment and development, coopération pour le développement, development co-operation, environmental management, environmental policy implementation, fonction publique, gestion des ressources naturelles, gestion environnementale, government functions, mise en oeuvre des politiques d'environnement, natural resources, évaluation et renforcement des capacités
Creation-Date: 2009-05-14
Number: 8
Handle: RePEc:oec:envaaa:8-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Richard G. Newell
Author-Workplace-Name: Energy Information Agency
Title: Literature Review of Recent Trends and Future Prospects for Innovation in Climate Change Mitigation
Abstract: The international discussion about global climate change now revolves around what the necessary set of policies and technologies will be needed to realize reduction goals. Stabilizing atmospheric carbon dioxide (CO2) concentrations at 450 to 550 parts per million will require policy changes along with innovation and large-scale adoption of GHG-reducing technologies throughout the global energy system. Innovations will need to be supported by international cooperation and behavioral changes to further realize the benefits of technological advances. Much discussion has therefore focused on policies that target technology directly, including research and development (R&D) activities and technology-specific incentives, as well as policies and agreements that increase diffusion and adoption. This paper reviews the recent literature on trends and prospects for innovation in climate change mitigation, to identify the most important international and domestic actions necessary to technologically alter energy systems in a direction that can achieve GHG stabilization targets while also meeting other societal goals. It provides an overview of key technical issues associated with the development, diffusion, and adoption of technologies that mitigate climate change. It examines the role of environment and innovation policy measures to encourage innovation, and it outlines the conditions that trigger these advances. The review highlights that establishing a GHG emission price is essential from a technology perspective. Such a price should be coupled with public R&D support. The review discusses policy features that impact on environmentally oriented R&D, the diffusion of environmental innovations, their deployment in developing countries. In particular, the paper outlines the positive role of international technology-oriented agreements as part of the architecture of an international climate change policy.<BR>Le débat international au sujet du changement climatique porte maintenant sur les politiques et les technologies qui devront être mises en œuvre pour atteindre les objectifs de réduction des émissions. Pour stabiliser les émissions de dioxyde de carbone dans l’atmosphère entre 450 et 550 particules par million, il faut de nouvelles politiques mais aussi des innovations et l’utilisation à grande échelle, dans l’ensemble du système énergétique global, de technologies qui réduisent les gaz à effet de serre. L’innovation devra être encouragée par la coopération internationale et des changements de comportements, pour que les bénéfices des avancées technologiques se matérialisent. Aussi, une part importante du débat a porté sur les politiques qui soutiennent directement le développement technologique, notamment les activités de recherche et développement (R&D) et les incitations spécifiques, mais aussi sur les politiques et les arrangements qui encouragent la diffusion et l’utilisation des technologies. Ce document analyse la littérature récente sur les tendances récentes et à venir relatives à l’innovation pour lutter contre le changement climatique. L’objectif est d’identifier les actions prioritaires, au niveau national et international, pour changer les systèmes énergétiques d’un point de vue technologique, selon une trajectoire qui permettra d’atteindre les objectifs de stabilisation des gaz à effet de serre tout en atteignant aussi d’autres objectifs sociétaux. Le papier présente une synthèse des principales questions techniques liées au développement, à la diffusion et à l’utilisation des technologies qui contribuent à la lutte contre le changement climatique. Il analyse le rôle des politiques d’environnement et d’innovation pour soutenir l’innovation et il met en évidence les conditions qui stimulent le progrès technologique. L’analyse souligne que, d’un point de vue technologique, il est essentiel de fixer un prix pour les émissions de gaz à effet de serre. Ce prix doit être accompagné d’une politique de soutien à la R&D. Le papier présente les attributs des politiques qui ont un impact sur la R&D liée à l’environnement, sur la diffusion des innovations environnementales et leur utilisation dans les pays en développement. En particulier, le papier souligne le rôle positif des accords internationaux qui portent sur les technologies dans le cadre de l’ensemble des politiques internationales de lutte contre le changement climatique.
Classification-JEL: O33; O34; O38; Q55; Q58
Keywords: climate change, environment & development, government policy, green technologies, sustainable development
Creation-Date: 2009-12-17
Number: 9
Handle: RePEc:oec:envaaa:9-EN

Template-type: ReDIF-Paper 1.0
Author-Name: David Popp
Author-Workplace-Name: University of Syracuse
Title: Policies for the Development and Transfer of Eco-Innovations: Lessons from the Literature
Abstract: Along with the recent success of economic growth in the developing world comes more pollution. Reducing these emissions while still enabling these countries to grow requires the use of new technologies in these countries. In most cases, these technologies are first created in high-income countries. Thus, the challenge for environmental policy is to encourage the transfer of these environmentally-friendly technologies to the developing world. This paper reviews the economic literature on both the creation and transfer of environmental technologies, with an emphasis on how the development of new technologies in leading economies can lead to environmental improvements in developing countries. I begin by discussing the incentives for environmentally-friendly innovation, which occurs primarily in developed countries. I then review the literature on the transfer of these technologies to the developing world. A key point is that technology diffusion is gradual. Early adoption of policy by developed countries leads to the development of new technologies that make it easier for developing countries to reduce pollution as well. Globalization also plays an important role in moving clean technologies to developing countries. Since clean technologies are first developed in the world’s leading economies, international trade and foreign investments provide access to these technologies. Finally, the absorptive capacity of nations is important. The technological skills of the local workforce enable a country to learn from, and build upon, technologies brought in from abroad. I conclude by discussing the implication of these lessons for policy, focusing on three examples pertaining to climate change: the Clean Development Mechanism, the role of intellectual property, and government-sponsored R&D.<BR>La croissance économique récente dans les pays en développement s’accompagne d’un accroissement de la pollution. Pour réduire ces émissions tout en se développant, ces pays devront utiliser de nouvelles technologies. Le plus souvent, ces technologies émaneront de pays développés. Ainsi, un défi des politiques environnementales est d’encourager le transfert de technologies propres vers les pays en développement. Cet article passe en revue la littérature économique sur la création et le transfert des technologies environnementales. Il met l’accent sur les liens entre le développement de ces technologies dans les pays développés et l’amélioration de la performance environnementale des pays en développement. Je commence par discuter les incitations à l’innovation favorable à l’environnement, qui se situe essentiellement dans les pays développés. Ensuite, j’analyse la littérature qui traite du transfert de ces technologies vers les pays en développement. Un résultat majeur est que la diffusion de ces technologies est graduelle. Lorsque les pays développés adoptent une politique environnementale, cela peut induire le développement de nouvelles technologies qui vont rendre plus facile la réduction des pollutions dans les pays en développement. La mondialisation joue un rôle important dans le transfert de technologies vers les pays en développement. Dans la mesure où les technologies propres émanent d’abord des pays développés, le commerce international et les investissements internationaux donnent accès à ces technologies. Enfin, la capacité d’une économie à absorber le progrès technique est un facteur important. Les compétences technologiques de la main-d’œuvre locale permettent à un pays d’apprendre et d’exploiter des technologies importées de l’étranger. En guise de conclusion, je discute les conséquences de ces résultats pour les politiques publiques, en me focalisant sur trois exemples dans le domaine de la lutte contre le changement climatique : le mécanisme de développement propre, le rôle de la propriété intellectuelle et l’aide publique à la R&D.
Keywords: changement climatique, Clean Development Mechanism, climate change, eco-innovation, environment & development, environnement et développement, government policy, green technologies, intellectual property, mécanisme de développement propre, politiques publiques, propriété intellectuelle, technologies propres, éco-innovation
Creation-Date: 2009-12-17
Number: 10
Handle: RePEc:oec:envaaa:10-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Katia Karousakis
Author-Workplace-Name: OECD
Title: Promoting Biodiversity Co-Benefits in REDD
Abstract: This report examines how biodiversity co-benefits in REDD (Reducing Emissions from Deforestation and Forest Degradation) can be enhanced, both at the design and implementation level. It discusses potential biodiversity implications of different REDD design options that have been put forward in the international climate change negotiations and proceeds by examining how the creation of additional biodiversity-specific incentives could be used to complement a REDD mechanism, so as to target biodiversity benefits directly.<BR>Le présent rapport examine les moyens de renforcer les avantages connexes pouvant être tirés de la REDD (réduction des émissions liées à la déforestation et à la dégradation des forêts) sur le plan de la biodiversité, tant au niveau de la conception qu’à celui de la mise en oeuvre. Il analyse les répercussions potentielles sur la biodiversité des différents dispositifs de REDD envisageables qui ont été avancés dans les négociations internationales sur le changement climatique et poursuit en examinant comment compléter la REDD en créant des incitations supplémentaires spécifiquement axées sur la biodiversité, de manière à cibler directement les avantages liés à celle-ci.
Classification-JEL: Q23; Q57
Keywords: analyse coûts-avantages, biodiversity conservation, changement climatique, climate change, conservation de la biodiversité, cost-benefit analysis, deforestation, déforestation, environmental economics, économie de l'environnement
Creation-Date: 2009-11-27
Number: 11
Handle: RePEc:oec:envaaa:11-EN

Template-type: ReDIF-Paper 1.0
Author-Name: David Ockwell
Author-Workplace-Name: University of Sussex
Author-Name: Jim Watson
Author-Workplace-Name: University of Sussex
Author-Name: Alexandra Mallett
Author-Workplace-Name: University of Sussex
Author-Name: Ruediger Haum
Author-Workplace-Name: University of Sussex
Author-Name: Gordon MacKerron
Author-Workplace-Name: University of Sussex
Author-Name: Anne-Marie Verbeken
Author-Workplace-Name: University of Sussex
Title: Enhancing Developing Country Access to Eco-Innovation: The Case of Technology Transfer and Climate Change in a Post-2012 Policy Framework
Abstract: The deployment of eco-innovations in developing countries is a key driver of their contribution to efficiently addressing global environmental challenges. It is also a key driver of markets for eco-innovation and sustainable economic development. This report explores the barriers developing countries face in accessing markets for eco-innovation. It outlines the key considerations policy needs to address to overcome these barriers and discusses the extent to which selected existing policy mechanisms and organisation have achieved this. The key finding of the report is that the majority of existing policy mechanisms fails to recognise the critical importance of developing indigenous eco-innovation capabilities amongst developing country firms. Indigenous eco-innovation capabilities are essential to facilitating both the diffusion of existing ecoinnovations within developing countries and sustainable economic development based on the adoption, adaption and development of environmentally sound technologies that fit with the bespoke conditions faced by developing countries. Building up eco-innovation capabilities in developing countries requires a shift away from the current focus on large project based approaches which emphasise the transfer of the hardware aspects of clean technologies, towards approaches that emphasise flows of codified knowledge (know-how and know-why) and tacit knowledge. Policy also needs to be improved to better respond to the context-specific technological and cultural requirements which vary inter- and intra-nationally.<BR>La diffusion des éco-innovations dans les pays en développement est un facteur clé de la contribution de ces pays à une lutte effective contre les grands enjeux environnementaux. C’est aussi un déterminant essentiel des marchés pour l’éco-innovation et le développement durable. Le présent rapport identifie les barrières auxquels les pays en développement sont confrontés pour accéder aux éco-innovations. Il souligne les enjeux clés que les politiques publiques doivent prendre en compte pour contourner ces barrières. Il évalue la réussite dans ce domaine de certains des mécanismes et organisations existants. La principale conclusion de ce rapport est que la majorité des mécanismes existants n’accordent pas suffisamment d’importance au développement des capacités locales à innover dans le domaine de l’environnement. Ces capacités, dans les pays concernés, contribuent de manière décisive à la fois à la diffusion des éco-innovations dans les pays en développement et à un développement durable fondé sur l’adoption, l’adaptation et le développement de technologies favorables à l’environnement qui soient adaptées aux contextes particuliers des pays en développement. Renforcer la capacité à innover dans les pays en développement suppose de renoncer partiellement à la priorité accordée actuellement au soutien aux grands projets ; cette priorité met l’accent sur le transfert des aspects purement technologiques. Le rapport plaide pour des approches qui mettent l’accent sur les flux de connaissance codifiés (pourquoi, comment) et tacites. Il convient également d’améliorer les politiques publiques de sorte qu’elles prennent mieux en compte les besoins technologiques et culturels propres aux contextes et qui varient au sein d’un même pays et entre les pays.
Classification-JEL: O19; O31; O33; O34; O38; Q54; Q55; Q56; Q58
Keywords: absorptive capabilities, eco-innovation, green technologies, innovation capabilities, multilateral environmental agreements, technology transfer
Creation-Date: 2010-05-18
Number: 12
Handle: RePEc:oec:envaaa:12-EN

Template-type: ReDIF-Paper 1.0
Author-Name: OECD
Title: Linkages between Environmental Policy and Competitiveness
Abstract: Debates exist between those who claim that environmental policy will impose additional burdens and costs on industries, thus impairing their competitiveness, and those who claim that improved environmental performance can spur competitiveness. These arguments often surface when new environmental policy regulation are considered, e.g. when the REACH Directive was introduced in Europe, or when a government is considering the introduction of a carbon tax. The report develops a conceptual framework to shed some light on this difficult debate. Competitiveness impacts of environmental policies may derive from the policy itself, or from the improvements of the environmental performance that derives from the policy. These impacts can be analysed at either firm or industry levels; they may differ over the short and long term. Globalisation, with the increasing role of MNEs and mobile capital and labour, is adding more complexity.This framework is used to decipher some of the messages that come out of empirical studies on these issues. Empirical evidence is mixed, and the paper identifies methodological and substantive reasons why empirical research fails to determine the relationship between environmental policy and competitiveness.Lessons derive from this literature review. Typically, even when implementing the environmental policy is clearly in the overall interest of society, the costs and benefits of the policy are unlikely to be equally shared among economic agents. While some win, individual firms or industries may stand to lose. Policy design should make sure that the adverse competitiveness impacts are not unnecessarily large, for example by paying attention to predictability, transition periods, and transaction costs. Specific measures to support the losers in their adjustment can also be developed. Sometimes measures to mitigate the adverse competitiveness impacts of an environmental policy are necessary to achieve political support for the policy. In those instances, the planned measures should be carefully analysed from several angles to ensure that they do not inadvertently hurt the efficiency and effectiveness of the original policy. More work is required to further explore these issues, which are consequential for the design, the implementation and the enforcement of environmental policies.<BR>Il y a souvent débat entre ceux qui pensent que les politiques environnementales vont imposer des charges supplémentaires aux entreprises et ainsi détériorer leur compétitivité, et d’autres qui pensent qu’une meilleure performance environnementale est un facteur de compétitivité. Ces débats affleurent en particulier quand de nouvelles réglementations environnementales sont débattues, par exemple lorsque la directive REACH a été mise en œuvre en Europe, ou quand des gouvernements réfléchissent à l’introduction d’une taxe carbone. Dans ce rapport, un cadre conceptuel est proposé, pour tirer des enseignements de ces débats. Les impacts d’une politique environnementale sur la compétitivité peuvent découler de la politique elle-même, ou des conséquences de la politique sur les performances environnementales. Ces impacts se mesurent au niveau des firmes ou des secteurs économiques ; ils peuvent être différents à court ou à long terme. La globalisation rend ces mécanismes encore plus complexes, avec le rôle accru des multinationales et la mobilité du capital et de l’emploi. Le cadre conceptuel est utilisé pour donner un sens aux résultats des études empiriques sur ces thèmes. Ces résultats sont ambigus et le rapport propose des raisons à la fois méthodologiques et de fond qui expliquent pourquoi les recherches empiriques ne parviennent pas à comprendre la relation entre les politiques environnementales et la compétitivité. L’analyse des sources documentaires fait ressortir quelques messages. Par exemple, même quand une politique environnementale a des effets positifs clairs sur l’ensemble de la collectivité, il est probable que les coûts et les bénéfices de cette politique soient inégalement répartis entre les agents économiques. Il se peut que certaines entreprises ou certains secteurs gagnent alors que d’autres perdent. La politique doit être conçue de sorte que les coûts ne soient pas indûment élevés, par exemple en annonçant à l’avance, en prévoyant des périodes de transition, et en étant attentifs aux coûts de transaction. Il est possible de prévoir des mesures dédiées aux perdants afin d’accompagner leurs ajustements. Dans certains cas, des mesures qui limitent les impacts négatifs d’une politique sur la compétitivité sont utiles pour susciter une adhésion à cette politique. Dans ces cas, les mesures envisagées doivent être analysées sous différents angles pour s’assurer qu’elles ne restreignent pas l’efficacité et l’efficience du projet initial. Des travaux complémentaires sont nécessaires pour étudier ces sujets qui sont importants pour la conception, la mise en œuvre et le respect des politiques environnementales.
Classification-JEL: O31; O33; O38
Keywords: circuits d’approvisionnement, competitiveness, compétitivité, eco-innovation, efficacité en ressources, environmental policy, globalisation, hypothèse de Porter, mondialisation, pollution haven, Porter hypothesis, resource efficiency, supply chain, éco-innovation
Creation-Date: 2010-01-11
Number: 13
Handle: RePEc:oec:envaaa:13-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jan Corfee-Morlot
Author-Workplace-Name: OECD
Author-Name: Lamia Kamal-Chaoui
Author-Workplace-Name: OECD
Author-Name: Michael G. Donovan
Author-Workplace-Name: OECD
Author-Name: Ian Cochran
Author-Workplace-Name: OECD
Author-Name: Alexis Robert
Author-Workplace-Name: OECD
Author-Name: Pierre-Jonathan Teasdale
Title: Cities, Climate Change and Multilevel Governance
Abstract: Cities represent a challenge and an opportunity for climate change policy. As the hubs of economic activity, cities generate the bulk of GHG emissions and are thus important to mitigation strategies. Urban planning will shape future trends and the concentration of population, socio-economic activity, poverty and infrastructure in urban areas translates into particular vulnerability to increased climate hazards. City governments and urban stakeholders will therefore be essential in the design and delivery of cost-effective adaptation policies. Further, by empowering local governments, national policies could leverage existing local experiments, accelerate policy responses, foster resource mobilization and engage local stakeholders. This paper presents a framework for multilevel governance, showing that advancing governance of climate change across all levels of government and relevant stakeholders is crucial to avoid policy gaps between local action plans and national policy frameworks (vertical integration) and to encourage cross-scale learning between relevant departments or institutions in local and regional governments (horizontal dimension). Vertical and horizontal integration allows two-way benefits: locally-led or bottom-up where local initiatives influence national action and nationally-led or top-down where enabling frameworks empower local players. The most promising frameworks combine the two into hybrid models of policy dialogue where the lessons learnt are used to modify and fine-tune enabling frameworks and disseminated horizontally, achieving more efficient local implementation of climate strategies.
Classification-JEL: Q51; Q54; Q56; Q58; R00
Keywords: competitiveness, eco-innovation, environmental policy, globalisation, supply chain
Creation-Date: 2009-12-02
Number: 14
Handle: RePEc:oec:envaaa:14-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Shardul Agrawala
Author-Workplace-Name: OECD
Author-Name: Maëlis Carraro
Author-Workplace-Name: OECD
Title: Assessing the Role of Microfinance in Fostering Adaptation to Climate Change
Abstract: Much of the current policy debate on adaptation to climate change has focussed on estimation of adaptation costs, ways to raise and to scale-up funding for adaptation, and the design of the international institutional architecture for adaptation financing. There is however little or no emphasis so far on actual delivery mechanisms to channel these resources at the sub-national level, particularly to target the poor who are also often the most vulnerable to the impacts of climate change. It is in this context that microfinance merits a closer look. This paper offers the first empirical assessment of the linkages between microfinance supported activities and adaptation to climate change. Specifically, the lending portfolios of the 22 leading microfinance institutions in two climate vulnerable countries – Bangladesh and Nepal - are analysed to assess the synergies and potential conflicts between microfinance and adaptation. The two countries had also been previously examined as part of an earlier OECD report on the links between macro-level Official Development Assistance and adaptation. This analysis provides a complementary “bottom-up” perspective on financing for adaptation. Insights from this analysis also have implications for OECD countries. This is because microfinance is also being increasingly tapped to reduce the vulnerability of the poor in domestic OECD contexts as well and may therefore have the potential to contribute to adaptation. The paper identifies areas of opportunity where microfinance could be harnessed to play a greater role in fostering adaptation, as well as its limitations in this context. It also explores the linkage between the top-down macro-financing for adaptation through international financial mechanisms and the bottom-up activities that can be implemented through microfinance.<BR>Une bonne partie du débat sur l’adaptation s’est concentrée sur l’estimation des coûts de l’adaptation, sur les moyens de mobiliser et d’intensifier les ressources financières nécessaires, et sur la conception d’une architecture institutionnelle internationale pour le financement de l’adaptation. Or, les mécanismes existants d’acheminement de ces ressources au niveau infranational, en particulier ceux ciblant les populations démunies qui sont souvent les plus vulnérables aux impacts du changement climatique, n’ont jusqu’à présent guère retenu l’attention. C’est dans ce contexte que la microfinance mérite d’être examinée de plus près. Le présent rapport offre la première évaluation empirique des liens entre les activités soutenues par la microfinance et l’adaptation au changement climatique. Il comporte une analyse des portefeuilles des 22 institutions principales de microfinance dans deux pays vulnérables au changement climatique – le Bangladesh et le Népal – qui doit permettre d’évaluer les synergies et les conflits éventuels entre la microfinance et l’adaptation. Ces deux pays ont déjà fait l’objet d’un examen préalable dans le cadre d’un autre rapport de l’OCDE sur les liens entre l’aide publique au développement au niveau macro-économique et l’adaptation. La présente analyse aborde le financement de l’adaptation selon une perspective « ascendante » complémentaire. Les pays de l’OCDE peuvent également bénéficier des éclaircissements apportés par cette analyse. En effet, la microfinance est également de plus en plus utilisée pour réduire la vulnérabilité des populations démunies dans le contexte national des pays de l’OCDE et pourrait donc être exploiter pour promouvoir l’adaptation. Ce rapport identifie également les domaines dans lesquels la microfinance pourrait être mise à profit pour jouer un rôle plus important dans l’adaptation, ainsi que les limites de ce mode de financement dans ce contexte. Enfin, il examine le lien entre l’approche « descendante » du macrofinancement de l’adaptation au moyen d’instruments financiers internationaux, et les activités ascendantes mises en oeuvre par le biais de la microfinance.
Classification-JEL: Q54; Q56; R51
Creation-Date: 2010-02-12
Number: 15
Handle: RePEc:oec:envaaa:15-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Margarita Kalamova
Author-Workplace-Name: OECD
Title: Environmental Policy Design Characteristics and Technological Innovation: Evidence from Patent Data
Abstract: This paper focuses on the issue of innovation and technology transfer in the areas of air pollution abatement, wastewater effluent treatment, solid waste management, and climate change mitigation. The paper describes the trends in innovative activity related to selected areas of pollution abatement and control technologies and their transfer internationally. It also discusses characteristics of environmental policy regimes that are amenable to encouraging innovation of environmental technologies, and provides empirical evidence on the role of various determinants (including general characteristics of countries' environmental policy regimes) in encouraging innovation.<BR>Ce document se concentre sur la question du transfert d’innovation et de technologie dans les domaines de la réduction de pollution atmosphérique, du traitement d’effluent d’eau usagée, de la gestion de déchets solides, et de l’atténuation de changement climatique. Il décrit les tendances dans l’activité innovatrice relative aux technologies de réduction de la pollution et de leur transfert international. Il identifie également les caractéristiques des régimes de politique environnementale favorables à l’innovation environnementale, et établit le lien empirique sur le rôle des diverses causes déterminantes (y compris les caractéristiques générales de la politique environnementale des pays) dans l’innovation environnementale.
Classification-JEL: O31; O33; Q55; Q56; Q58
Keywords: environmental policy, innovation, innovation, politique environnementale, technologie, technology
Creation-Date: 2010-03-16
Number: 16
Handle: RePEc:oec:envaaa:16-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Keith Maskus
Author-Workplace-Name: University of Colorado-Boulder
Title: Differentiated Intellectual Property Regimes for Environmental and Climate Technologies
Abstract: Prior to the Copenhagen meeting on developing a new framework for climate-change policy there were sharp differences between the positions of developed and developing countries regarding the role of intellectual property rights (IPRs) in fostering international technology transfer (ITT). Expanding effective ITT is central to meeting needs for acquiring and adapting environmentally sound technologies (ESTs) in poor nations. Policymakers in developed economies generally view IPRs, particularly patents and trade secrets, as positive and critical inducements to ITT, while those in developing countries often describe them as sources of market power that impede access to new technology. This report reviews the economic logic of these positions and reviews available empirical evidence. The relationships among IPRs, innovation, ITT and local adaptation are complex and neither of the basic views described captures them well. Policy should be based on a more nuanced view. In that regard, to date there is little systematic evidence that patents and other IPRs restrict access to ESTs, which largely exist in sectors based on mature technologies in which there are numerous substitutes among global competitors. This situation may change as new technologies based on biotechnologies and synthetic fuels, which are likely to be more dependent on patent protection, become more prominent. At present, however, there is little evidence to support significant limitations on the issuance and use of IPRs in this area. In particular, it is unlikely that an international agreement on a compulsory licensing regime could achieve significant ITT benefits, while it may raise considerable costs. However, there may be scope for beneficial differentiation in patent rights, which is the primary subject of the report. Among these elements include ex ante extensions of patent terms tied to licensing commitments, expedited patent examinations in ESTs, investments in patent transparency and landscaping efforts, and facilitation of voluntary patent pools. The report argues that such changes are unlikely to achieve significant gains in innovation and ITT unless they are accompanied by broader policy approaches, including publicly financed fiscal supports for local technology needs and adaptation. Perhaps most important are finding means to raise the global costs of using carbon-based energy resources and improving the climate for investments in poor countries.<BR>Avant le Sommet de Copenhague sur l’élaboration d’un nouveau cadre d’action pour la lutte contre le changement climatique, pays développés et pays en développement nourrissaient des conceptions divergentes quant à l’incidence des droits de propriété intellectuelle (DPI) sur la promotion du transfert international de technologies. Or, pour répondre aux besoins d’acquisition et d’adaptation de technologies écologiquement rationnelles dans les pays pauvres, il est indispensable d’accroître l’efficacité de ces transferts. Les décideurs des pays développés considèrent généralement les DPI, en particulier les brevets et les secrets de fabrique, comme des incitations positives essentielles pour le transfert international de technologies, tandis que ceux des pays en développement les présentent souvent comme des sources de pouvoir de marché qui les empêchent d’accéder aux nouvelles technologies. Le présent rapport examine la logique économique de ces positions et passe en revue les données empiriques disponibles. Entre les DPI, l’innovation, le transfert international de technologies et l’adaptation locale, il existe une relation complexe dont aucune des deux conceptions très générales évoquées précédemment ne rend véritablement compte. Les politiques publiques doivent se fonder sur un point de vue plus nuancé. A ce jour, on ne dispose guère d’éléments solides attestant que les brevets et autres DPI restreignent l’accès aux technologies écologiquement rationnelles, car ces droits concernent essentiellement des secteurs basés sur des technologies matures pour lesquelles la concurrence mondiale offre de nombreux produits de substitution. La donne pourrait changer au fur et à mesure de la montée en puissance de nouvelles technologies faisant appel aux biotechnologies et aux carburants de synthèse, qui risquent d’être davantage protégés par des brevets. Pour l’heure toutefois, il n’y a guère d’arguments incitant à limiter notablement l’attribution et l’utilisation des DPI dans ce domaine. En particulier, un accord international sur un régime de licences obligatoires ne serait probablement pas très efficace en termes de transfert international de technologies, alors qu’il risquerait d’imposer des coûts considérables. En revanche, il serait possible d’apporter diverses modifications aux conditions attachées aux brevets, ce qui constitue le principal thème de ce rapport. Parmi les possibilités figurent la prolongation ex ante de la durée de validité du brevet assortie d’engagements en matière d’octroi de licences, l’examen accéléré des demandes de brevets visant les technologies écologiquement rationnelles, les investissements dans les efforts de transparence et de cartographie des brevets, les incitations à créer des communautés volontaires de brevets. D’après le rapport, des changements de ce type ne sauraient procurer des avantages significatifs en termes d’innovation et de transfert international de technologies s’ils ne s’accompagnent pas de stratégies publiques plus larges, comprenant des aides publiques pour répondre aux besoins en technologies et assurer leur adaptation à l’échelle locale. Mais l’essentiel est peut-être de trouver les moyens d’augmenter le coût d’utilisation des ressources énergétiques à base de carbone et d’améliorer le climat de l’investissement dans les pays pauvres.
Classification-JEL: O31; O34; Q27; Q56
Keywords: changement climatique, climate change, droit de propriété intellectuelle, environment, environnement, innovation, innovation, intellectual property rights, technologies, technology
Creation-Date: 2010-05-05
Number: 17
Handle: RePEc:oec:envaaa:17-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Eugene Mazur
Author-Workplace-Name: OECD
Title: Outcome Performance Measures of Environmental Compliance Assurance: Current Practices, Constraints and Ways Forward
Abstract: This report analyses the experience of ten OECD countries in the design and implementation of quantitative indicators used to assess the outcomes of environmental enforcement authorities’ efforts to ensure compliance with pollution prevention and control regulations. To respond to the growing demand for results-oriented work methods and the need for performance management and accountability at the time of severe budget constraints, more and more environmental enforcement authorities are working to develop indicators to characterise improvements in behaviour of the regulated community (intermediate outcomes) or environmental conditions (final outcomes) stemming from their activities. The report considers six types of intermediate and final outcome performance measures, including compliance rates and indicators of improved environmental management practices and reduced risk. Based on the OECD criteria for the evaluation of environmental indicators – measurability, analytical soundness and policy relevance – the paper identifies key challenges for developing and using specific categories of compliance assurance outcome indicators and suggests several ways to improve their effectiveness. The review of a “toolbox” of existing outcome indicators and the analysis of their respective strengths and weaknesses suggests that it is not possible to identify a “best practice” approach or a universal optimal set of indicators. The functionality of individual outcome measures ultimately depends on their purpose (e.g. internal performance assessment or external accountability) and suitability for joint analysis with the enforcement authority’s resource (input) and activity (output) indicators. The report identifies several issues for further analysis.
Classification-JEL: K32; K42; M48; O57; Q56
Keywords: compliance and enforcement, compliance assurance, environmental authorities, environmental inspections, environmental regulations, outcome indicators, performance measurement
Creation-Date: 2010-06-10
Number: 18
Handle: RePEc:oec:envaaa:18-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Pierre Guigon
Title: Voluntary Carbon Markets: How can they Serve Climate Policies?
Abstract: In this paper, we aim to examine how voluntary carbon markets can provide a valuable contribution to strengthening domestic and international climate policies. Voluntary markets are defined as small and unregulated segments of an established carbon market that are driven by voluntary offsetting of GHG emissions.<BR>Ce document vise à examiner comment les marchés volontaires du carbone peuvent contribuer utilement à renforcer les politiques climatiques nationales et internationales. Il s’agit de petits segments non réglementés d’un marché du carbone bien établi qui reposent sur la compensation volontaire des émissions de GES.
Classification-JEL: Q54; Q58
Keywords: changement climatique, climate change, emissions trading systems, système d’échange de droits d’émissions
Creation-Date: 2010-08-03
Number: 19
Handle: RePEc:oec:envaaa:19-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Rob Dellink
Author-Workplace-Name: OECD
Author-Name: Stéphanie Jamet
Author-Workplace-Name: OECD
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Author-Name: Romain Duval
Author-Workplace-Name: OECD
Title: Towards Global Carbon Pricing: Direct and Indirect Linking of Carbon Markets
Abstract: Emissions trading systems (ETS) can play a major role in a cost-effective climate policy framework. Both direct linking of ETSs and indirect linking through a common crediting mechanism can reduce costs of action. We use a global recursive-dynamic computable general equilibrium model to assess the effects of direct and indirect linking of ETS systems across world regions. Linking of domestic Annex I ETSs leads to moderate aggregate cost savings, as differences in domestic permit prices are limited. However, the economy of the main seller, Russia, is negatively affected by the real exchange rate appreciation that is induced by the large export of permits. The cost-saving potential for developed countries of well-functioning crediting mechanisms appears to be very large. Even limited use of credits would nearly halve mitigation costs; cost savings would be largest for carbon-intensive economies. However, one open issue is whether these gains can be fully reaped in reality, given that direct linking and the use of crediting mechanisms both raise complex system design and implementation issues. The analysis in this paper shows, however, that the potential gains to be reaped are so large, that substantial efforts in this domain are warranted.<BR>Les systèmes d’échange de droits d’émission peuvent jouer un rôle considérable dans le cadre d’une politique climatique efficace par rapport aux coûts. Le couplage direct de ces systèmes, aussi bien qu’indirect à travers un mécanisme commun d’attribution de crédits, peut réduire les coûts de l’action. Nous utilisons un modèle mondial dynamique récursif d’équilibre général calculable pour évaluer les effets du couplage direct et indirect des systèmes d’échange de droits d’émission dans les différentes régions du monde. Le couplage des systèmes d’échange nationaux des pays visés à l’annexe I entraîne de faibles économies dans l’ensemble, car les différences de prix entre permis nationaux sont limitées. Cela étant, l’économie du principal vendeur - la Russie - est mise à mal par l’appréciation du taux de change réel due aux fortes exportations de permis. Les économies que pourraient réaliser les pays développés grâce à des mécanismes efficaces d’attribution de crédits d’émission semblent très importantes. Un recours même limité à ces crédits permettrait en gros de réduire de moitié les coûts de l’atténuation ; les économies à forte intensité de carbone sont celles qui feraient le plus d’économies. Il reste à savoir cependant si, concrètement, ces avantages pourraient être exploités en totalité, compte tenu des problèmes complexes de conception et de mise en oeuvre que posent tant le couplage direct que les mécanismes d’attribution de crédits. L’analyse présentée dans ce rapport montre toutefois que les avantages à en tirer peuvent être si grands qu’il se justifie de déployer des efforts considérables dans ce domaine.
Classification-JEL: H23; O41; Q54
Keywords: climate mitigation policy, emissions trading systems, general equilibrium models, modèles d’équilibre général, Politique d’atténuation du changement climatique, système d’échange de droits d’émissions
Creation-Date: 2010-08-04
Number: 20
Handle: RePEc:oec:envaaa:20-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Anja Kollmuss
Author-Workplace-Name: Stockholm Environment Institute
Author-Name: Michael Lazarus
Author-Workplace-Name: Stockholm Environment Institute
Title: Buying and Cancelling Allowances as an Alternative to Offsets for the Voluntary Market: A Preliminary Review of Issues and Options
Abstract: In recent years, businesses, local governments and individuals have set goals for reducing their emissions of greenhouse gases. In addition to directly reducing their own emissions, many of these entities have purchased carbon offsets to help achieve their mitigation goals. Yet establishing offset quality can be difficult, due to issues such as additionality, measurement, leakage, permanence, and verification. This paper explores scenarios under which, as an alternative to offsets, voluntary buyers could instead buy and cancel allowances from compliance markets. The purchase and cancellation of allowances reduces the available allowances in a cap-and-trade system, “tightening the cap” and, in principle, reducing the emissions that can be produced by covered sources. By this logic, purchasing and cancelling an allowance compels covered sources to achieve additional mitigation. Opportunities for voluntary buyers to purchase and cancel tradable compliance units currently exist in several markets, but in small quantities. If the practice of cancelling allowances remains limited to individuals and voluntary corporate buyers, it is likely to remain small and is unlikely to send a strong price signal. In the medium and long-term this might change if large numbers of sub-national actors came into play and chose to cancel allowances.<BR>Depuis quelques années, des entreprises, des collectivités locales et des particuliers s’attachent à ramener leurs émissions de gaz à effet de serre à un niveau donné. Indépendamment de la réduction directe des quantités qu’elles émettent, beaucoup de ces entités ont acquis des crédits de compensation carbone pour contribuer à la réalisation de leurs objectifs d’atténuation. Toutefois, la réalité de la compensation peut être difficile à établir, compte tenu des problèmes d’additionnalité, de mesure, de fuite, de permanence et de vérification. Ce document porte sur des scénarios selon lesquels, à la place des formules de compensation, les acteurs volontaires pourraient acheter des quotas sur le marché réglementé du carbone puis les annuler. L’achat et l’annulation de quotas reviennent à diminuer les quotas disponibles dans un système de plafonnement et d’échange, puisqu’il s’agit d’« abaisser le plafond » et, en principe, de réduire les émissions susceptibles d’être produites par les sources prises en compte. Logiquement, l’achat et l’annulation d’un quota obligent les sources en question à aller plus loin dans l’atténuation. Des possibilités d’achat et d’annulation d’unités négociables s’offrent actuellement aux acquéreurs volontaires sur plusieurs marchés, mais les quantités sont peu importantes. Si la pratique de l’annulation de quotas demeure limitée à des acteurs isolés et à des entreprises volontaires, elle n’a guère de chances d’envoyer un signal de prix fort. À moyen et long termes, la situation pourra évoluer si un grand nombre de collectivités infranationales entrent en jeu et décident d’annuler des quotas.
Classification-JEL: Q54; Q58
Keywords: changement climatique, climate change, emissions trading systems, système d’échange de droits d’émissions
Creation-Date: 2010-08-04
Number: 21
Handle: RePEc:oec:envaaa:21-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Rob Dellink
Author-Workplace-Name: OECD
Author-Name: Gregory Briner
Author-Workplace-Name: OECD
Author-Name: Christa Clapp
Author-Workplace-Name: OECD
Title: Costs, Revenues, and Effectiveness of the Copenhagen Accord Emission Pledges for 2020
Abstract: Tackling the problem of global climate change requires a high level of international cooperation. Many countries have pledged targets or actions to reduce greenhouse gas emissions in the Appendices to the Copenhagen Accord. This analysis examines the costs and effectiveness of these pledges, using the OECD’s ENV-Linkages computable general equilibrium model. Several scenarios are analysed to evaluate the impacts of the range of pledges, the use of offsets, and linking emission trading systems. The results show that while the emission targets currently pledged by a wide range of countries under the Accord are an important and welcome start to a global solution, the pledges are not ambitious enough to put us on a pathway to limit average global temperature increase to below 2°C. This paper also analyses the economic impacts of the pledges, and estimates the costs of action at around 0.3% of GDP for both Annex I and non- Annex I countries and 0.5-0.6% of global real income (not taking into consideration the economic benefits from avoided damages from climate change). Furthermore, the analysis reveals that the potential for increased fiscal revenue or proceeds are substantial and for the Annex I group of countries can exceed 1% of GDP (or 400 billion USD) if mitigation actions are achieved through market instruments such as carbon taxes or cap-and-trade emission schemes with auctioned emission allowances.<BR>Pour parer au changement climatique planétaire, une coopération internationale poussée s’impose. Beaucoup de pays se sont engagés à réaliser des objectifs ou à mettre en oeuvre des actions de réduction des émissions de gaz à effet de serre dans les appendices à l’Accord de Copenhague. La présente analyse vise à examiner les coûts et l’efficacité de ces engagements au moyen du modèle d’équilibre général calculable ENV-Linkages de l’OCDE. Elle porte sur plusieurs scénarios, de manière à évaluer les incidences qu’entraînent les divers engagements pris, l’utilisation de formules de compensation, ainsi que les liens entre les systèmes d’échange de droits d’émission. Les résultats montrent que si les objectifs d’émission actuellement annoncés par un large éventail de pays dans le cadre de l’Accord sont un premier pas important et fort apprécié dans le sens d’une solution mondiale, les engagements ne sont pas suffisamment ambitieux pour nous placer sur une trajectoire permettant de maintenir l’élévation moyenne de la température du globe au-dessous de 2°C. Ce document concerne aussi les répercussions économiques des engagements, les coûts de l’action étant estimés à 0.3 % environ du PIB, que les pays soient visés ou non à l’Annexe I, et à 0.5-0.6 % du revenu réel mondial (compte non tenu des avantages économiques liés aux atteintes évitées du changement climatique). Par ailleurs, l’analyse fait ressortir des perspectives non négligeables d’augmentation des recettes budgétaires qui, pour les pays de l’Annexe I, pourraient représenter plus de 1 % du PIB (400 milliards USD) si les mesures d’atténuation passent par des instruments de type marché tels que les taxes carbone ou les systèmes de plafonnement et d’échange dans lesquels des quotas d’émission sont attribués par voie d’enchères.
Classification-JEL: F53; H23; H87; Q54; Q58
Keywords: Accord de Copenhague, atténuation des émissions de gaz à effet de serre, changement climatique, climate change, computable general equilibrium model, Copenhagen accord, greenhouse gas mitigation, modèle d'équilibre général calculable
Creation-Date: 2010-08-04
Number: 22
Handle: RePEc:oec:envaaa:22-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Shardul Agrawala
Author-Workplace-Name: OECD
Author-Name: Francesco Bosello
Author-Workplace-Name: Fondazione Eni Enrico Mattei (FEEM)
Author-Name: Carlo Carraro
Author-Workplace-Name: Fondazione Eni Enrico Mattei (FEEM)
Author-Name: Kelly de Bruin
Author-Workplace-Name: Wageningen University
Author-Name: Enrica De Cian
Author-Workplace-Name: Fondazione Eni Enrico Mattei (FEEM)
Author-Name: Rob Dellink
Author-Workplace-Name: OECD
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Title: Plan or React? Analysis of Adaptation Costs and Benefits Using Integrated Assessment Models
Abstract: Financing for adaptation is a core element in the ongoing international negotiations on climate change. This has motivated a number of recent global estimates of adaptation costs. While important from an agenda setting perspective, many of these estimates nevertheless have a number of limitations. They are typically static (i.e. estimated for one specific year), do not differentiate between investments in various types of adaptation or quantify the resulting benefits, and are delinked from policies and investments in greenhouse gas mitigation.<BR>Le financement de l’adaptation est un élément essentiel dans les négociations internationales qui se poursuivent concernant le changement climatique. C’est ce qui explique pourquoi un certain nombre d’estimations des coûts de l’adaptation au niveau mondial ont été établies récemment. En dépit de leur importance pour la définition de programmes d’action, beaucoup d’entre elles présentent toutefois plusieurs carences. Elles sont généralement statiques (c’est-à-dire calculées pour une année précise), elles ne font pas de différence entre les investissements en fonction du type de solution d’adaptation ou ne chiffrent pas les avantages qui en découlent, comme elles ne se rattachent pas non plus à des politiques ou à des investissements visant l’atténuation des émissions de gaz à effet de serre.
Classification-JEL: Q50; Q54; Q59
Keywords: adaptation, adaptation, adaptive capacity, capacité d’adaptation, changement climatique, climate change, integrated assessment modelling, modélisation de l’évaluation intégrée
Creation-Date: 2010-08-10
Number: 23
Handle: RePEc:oec:envaaa:23-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Shardul Agrawala
Author-Workplace-Name: OECD
Author-Name: Arnoldo Matus Kramer
Author-Workplace-Name: OECD
Author-Name: Guillaume Prudent-Richard
Author-Workplace-Name: AECOM
Author-Name: Marcus Sainsbury
Author-Workplace-Name: AECOM
Title: Incorporating Climate Change Impacts and Adaptation in Environmental Impact Assessments: Opportunities and Challenges
Abstract: National governments and development agencies have invested considerable effort in recent years to develop methodologies and tools to screen their projects for the risks posed by climate change. However, these tools have largely been developed by the climate change community and their application within actual project settings remains quite limited. An alternate and complementary approach would be to examine the feasibility of incorporating consideration of climate change impacts and adaptation within existing modalities for project design, approval, and implementation. Environmental Impact Assessments (EIA) are particularly relevant in this context.<BR>Les administrations nationales et les agences de développement ont consacré un effort considérable ces dernières années à la conception de méthodologies et d’outils d’évaluation de leurs projets du point de vue des risques posés par le changement climatique. Une bonne part de ces instruments ont toutefois été élaborés au sein de la communauté des spécialistes du climat mais sont encore rarement appliqués à des projets concrets. Une autre approche, complémentaire, serait d’étudier la faisabilité de la prise en compte des incidences du changement climatique et de l’adaptation à ce changement dans les modalités existantes de conception, d’approbation et de mise en oeuvre des projets. Les études d’impact sur l’environnement (EIE) sont particulièrement intéressantes à cet égard.
Classification-JEL: Q51; Q54; Q58
Keywords: adaptation, adaptation, changement climatique, climate change, environmental impact assessment (EIA), risk assessment, étude d’impact sur l’environnement (EIE), évalutation des risques
Creation-Date: 2011-11-29
Number: 24
Handle: RePEc:oec:envaaa:24-EN

Template-type: ReDIF-Paper 1.0
Author-Name: George Matheson
Author-Workplace-Name: Marbek Resource Consultants
Author-Name: Laurie Giroux
Author-Workplace-Name: Marbek Resource Consultants
Title: Capacity Development for Environmental Management and Governance in the Energy Sector in Developing Countries
Abstract: The relationships between energy, the environment, and development are deep and complex. The International Energy Agency has noted that energy is deeply implicated in each of the economic, social and environmental dimensions of human development. Energy services provide an essential input to economic activity, contribute to social development, and help meet basic human needs. But energy production and use also has significant environmental implications that must be managed if countries are to meet their long term sustainable development goals. The purpose of this paper is to highlight the importance of environmental management and governance in the energy sector; to present environmental goals, requirements, entry points, and strategies/approaches to capacity development for the environment (CDE) in this sector; and to discuss implications for donors. The focus is on CDE in a developing country context. The paper recognises that CDE must be seen as part of an endogenous process of change, and that it must operate at multiple levels: the enabling environment, the organisation, and the individual. The paper argues that capacity development is not an end in itself; instead, defined environmental goals should be the basis for determining capacity requirements, which in turn should be the basis for defining capacity development priorities. Based on this, the paper further argues that CDE should focus on sustainable energy sources of relevance to the majority of the population, and on increased efficiency of energy use. The paper links these concepts to the country systems approach to development assistance advocated in the Paris Declaration on Aid Effectiveness, and discusses some of the challenges donors face in providing CDE assistance that responds to these concepts and principles.
Classification-JEL: H23; O13; O17; O19; O29; O33; Q01; Q4; Q5
Keywords: capacity development, country systems, developing countries, energy efficiency, energy sector, environmental governance, environmental management, renewable energy, sustainable energy
Creation-Date: 2011-02-10
Number: 25
Handle: RePEc:oec:envaaa:25-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Constance L. Neely
Title: Capacity Development for Environmental Management in the Agricultural Sector in Developing Countries
Abstract: The relationships between agriculture, the environment, and development are deep and complex. By 2050 a 70 per cent increase in production will be needed to feed an additional 2.7 billion people on an already degraded natural resource base. In light of this and amid the realities of climate change, the agricultural sector is now coming to terms with its potential role for contributing to – rather than diminishing - environmental, institutional, social and economic resilience. The purpose of this paper is to highlight the importance of environmental management and governance in the agricultural sector; to present environmental goals, requirements, entry points, and strategies/approaches to capacity development for the environment (CDE) in this sector; and to discuss implications for donors. The focus is on CDE in a developing country context. The paper recognises that CDE must be seen as part of an endogenous process of change, and that it must operate at multiple levels: the enabling environment, the organisation, and the individual. The paper argues that CDE should focus on the sustainable production and provision of sufficient, safe, and nutritious food that simultaneously builds and reinforces ecosystem resilience, leading to equitable and economically viable livelihoods at an adequate scale. The paper links these concepts to the country systems approach to development assistance advocated in the Paris Declaration on Aid Effectiveness.
Classification-JEL: O20; Q1; Q2; Q56
Keywords: agricultural sector, capacity development, developing countries, environmental governance, environmental management, sustainable agriculture
Creation-Date: 2011-02-10
Number: 26
Handle: RePEc:oec:envaaa:26-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Stéphane Hallegatte
Author-Workplace-Name: Centre International de Recherche sur l'Environnement et le Développement
Author-Name: Nicola Ranger
Author-Workplace-Name: Grantham Research Institute for Climate Change
Author-Name: Sumana Bhattacharya
Author-Workplace-Name: NATCOM PMC, MoEF
Author-Name: Murthy Bachu
Author-Workplace-Name: RMS
Author-Name: Satya Priya
Author-Workplace-Name: RMS
Author-Name: K. Dhore
Author-Workplace-Name: RMS
Author-Name: Farhat Rafique
Author-Workplace-Name: RMS
Author-Name: P. Mathur
Author-Workplace-Name: RMS
Author-Name: Nicolas Naville
Author-Workplace-Name: Centre International de Recherche sur l'Environnement et le Développement
Author-Name: Fanny Henriet
Author-Workplace-Name: Centre International de Recherche sur l'Environnement et le Développement
Author-Name: Anand Patwardhan
Author-Workplace-Name: Indian Institute of Technology
Author-Name: K. Narayanan
Author-Workplace-Name: Indian Institute of Technology
Author-Name: Subimal Ghosh
Author-Workplace-Name: Indian Institute of Technology
Author-Name: Subhankar Karmakar
Author-Workplace-Name: Indian Institute of Technology
Author-Name: Unmesh Patnaik
Author-Workplace-Name: Indian Institute of Technology
Author-Name: Abhijat Abhayankar
Author-Workplace-Name: Indian Institute of Technology
Author-Name: Sanjib Pohit
Author-Workplace-Name: National Council of Applied Economic Research
Author-Name: Jan Corfee-Morlot
Author-Workplace-Name: OECD
Author-Name: Celine Herweijer
Author-Workplace-Name: Risk Managment Solutions Limited
Title: Flood Risks, Climate Change Impacts and Adaptation Benefits in Mumbai: An Initial Assessment of Socio-Economic Consequences of Present and Climate Change Induced Flood Risks and of Possible Adaptation Options
Abstract: Managing risks from extreme events will be a crucial component of climate change adaptation. In this study, we demonstrate an approach to assess future risks and quantify the benefits of adaptation options at a city-scale, with application to flood risk in Mumbai. In 2005, Mumbai experienced unprecedented flooding, causing direct economic damages estimated at almost two billion USD and 500 fatalities. Our findings suggest that by the 2080s, in a SRES A2 scenario, an ‘upper bound’ climate scenario could see the likelihood of a 2005-like event more than double. We estimate that total losses (direct plus indirect) associated with a 1-in-100 year event could triple compared with current situation (to $690 – $1890 million USD), due to climate change alone. Continued rapid urbanisation could further increase the risk level. Moreover, a survey on the consequences of the 2005 floods on the marginalized population reveals the special vulnerability of the poorest, which is not apparent when looking only through a window of quantitative analysis and aggregate figures. For instance, the survey suggests that total losses to the marginalized population from the 2005 floods could lie around $250 million, which represents a limited share of total losses but a large shock for poor households. The analysis also demonstrates that adaptation could significantly reduce future losses; for example, estimates suggest that by improving the drainage system in Mumbai, losses associated with a 1-in-100 year flood event today could be reduced by as much as 70%. We show that assessing the indirect costs of extreme events is an important component of an adaptation assessment, both in ensuring the analysis captures the full economic benefits of adaptation and also identifying options that can help to manage indirect risks of disasters. For example, we show that by extending insurance to 100% penetration, the indirect effects of flooding could be almost halved. As shown by the survey, the marginalized population has little access to financial support in disaster aftermaths, and targeting this population could make the benefits of such measures even larger. While this study explores only the upper-bound climate scenario and is insufficient to design an adaptation strategy, it does demonstrate the value of risk-assessment as an important quantitative tool in developing city-scale adaptation strategies. We conclude with a discussion of sources of uncertainty, and of risk-based tools that could be linked with decision-making approaches to inform adaptation plans that are robust to climate change.<BR>hangement climatique. Dans cette étude, nous décrivons une méthode permettant d’évaluer les risques futurs et de quantifier les avantages de solutions d’adaptation à l’échelle urbaine, puis nous l’appliquons à l’estimation des risques d’inondation à Mumbai (Bombay). En 2005, une inondation sans précédent frappait la ville de Mumbai, faisant 500 victimes et occasionnant des dommages économiques directs estimés à près de deux milliards de dollars. Nos résultats suggèrent que, d’ici les années 2080, en appliquant le scénario SRES A2 et en sélectionnant un scénario climatique dans le haut de la fourchette, la probabilité d’un événement tel que celui de 2005 pourrait plus que doubler. Selon nos estimations, les pertes totales (directes et indirectes) causées par une catastrophe centennale pourraient tripler par rapport à leur niveau actuel (pour atteindre 690 à 1890 millions de dollars), du seul fait du changement climatique. L’urbanisation rapide et continue pourrait accroître d’autant plus le niveau de risque. D’autre part, l’étude que nous avons faite des conséquences des inondations de 2005 sur les populations marginalisées met en lumière la vulnérabilité particulière des plus démunis, qui n’est pas apparente lorsqu’on se limite aux analyses quantitatives et aux chiffres globaux. Par exemple, selon notre étude, le total des pertes subies lors des inondations de 2005 par les personnes marginalisées avoisinerait 250 millions de dollars, une faible part du total des dommages, mais un désastre considérable pour les foyers pauvres. Notre analyse montre également que l’adaptation pourrait substantiellement réduire les dommages futurs : nous estimons ainsi que les dommages causés par une inondation centennale pourraient être réduits de 70 % si l’on améliore le réseau d’assainissement de Mumbai. Quand on procède à une évaluation de l’adaptation, il importe d’estimer les coûts indirects des événements extrêmes car on peut ainsi à la fois intégrer à l’analyse l’ensemble des avantages économiques de l’adaptation et identifier des options de gestion des risques indirects liés aux catastrophes. Par exemple, nous montrons que si 100 % des habitants étaient en mesure de souscrire une assurance, les effets indirects des inondations pourraient être réduits de près de la moitié. Comme l’indique notre étude, la population marginalisée a peu accès aux aides financières après les catastrophes : les avantages de telles mesures pourraient donc être encore plus élevés si cette population était ciblée en priorité. Notre étude se limite à un scénario climatique dans le haut de la fourchette et ne suffit pas à élaborer une stratégie d’adaptation à part entière. Néanmoins, elle démontre la valeur des évaluations des risques, outils de mesure importants quand il s’agit de concevoir des stratégies d’adaptation à l’échelle urbaine. Nous concluons par un examen des sources d’incertitude ainsi que des outils fondés sur les risques qui, associés à des processus décisionnels, permettraient de formuler des plans d’adaptation durable au changement climatique.
Classification-JEL: E20; O18; Q01; Q54; R11; R52
Keywords: action publique, adaptation, adaptation, aménagement urbain, assurance, catastrophes naturelles, changement climatique, climate change, développement durable, flood management, gestion des inondations, global warming, government policy, insurance, natural disasters, réchauffement climatique, sustainable development, urban planning
Creation-Date: 2010-11-22
Number: 27
Handle: RePEc:oec:envaaa:27-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ivana Capozza
Author-Workplace-Name: OECD
Title: Greening Growth in Japan
Abstract: A decade of sluggish economic growth, concluding with the sharpest recession since the Second World War, has underlined the need for Japan to develop a new growth model. Such a model should restore public finances and long-term growth while preserving environmental quality and ensuring a sustainable use of natural resources. This paper assesses Japan’s progress in moving towards such an environmentally friendly growth pattern. It summarises Japan’s achievements and challenges in decoupling environmental pressures from economic performance. It analyses the use of market-based instruments, such as environmentally related taxes and charges and emissions trading schemes, to meet environmental and economic objectives, as well as steps taken to remove environmentally harmful subsidies. The level of integration of environmental concerns in Japan’s response to the economic crisis and in its long-term growth strategy is also analysed, particularly the policy mix used to take advantage of the growth and jobs opportunities arising from eco-innovation and the environmental goods and services sector. This Working Paper relates to the 2010 OECD Environmental Performance Review of Japan (www.oecd.org/env/countryreviews/japan).<BR>Après une décennie marquée par une croissance économique très faible, s’achevant en outre par la récession la plus brutale qui se soit produite depuis la Seconde Guerre mondiale, il apparaît nécessaire que le Japon mette en oeuvre un nouveau modèle de croissance propre à restaurer les finances publiques et à revigorer la croissance à long terme, tout en préservant la qualité de l’environnement et en veillant à utiliser les ressources naturelles de manière durable. Ce rapport évalue les progrès accomplis par le Japon vers une croissance respectueuse de l’environnement de cet ordre. Il récapitule les réalisations du Japon et les défis que le pays doit relever afin de découpler les pressions exercées sur l’environnement des performances économiques. De plus, il analyse comment sont utilisés les instruments économiques, notamment les taxes ou redevances liées à l’environnement et les systèmes d’échange de permis d’émission, pour atteindre des objectifs environnementaux et économiques, ainsi que les mesures prises en vue d’éliminer les subventions dommageables pour l’environnement. Par ailleurs, le rapport examine dans quelle mesure la riposte du Japon à la crise économique et sa stratégie de croissance à long terme tiennent compte des préoccupations environnementales, en s’attachant tout particulièrement à l’étude de la panoplie de politiques et mesures appliquées pour tirer parti des possibilités de croissance et d’emploi dont l’écoinnovation et le secteur des biens et services environnementaux sont porteurs. Ce document de travail se rapporte à l’Examen environnemental de l'OCDE du Japon, 2010 (www.oecd.org/env/examenspays/japon).
Classification-JEL: H23; O33; O38; O44; Q52; Q54; Q55; Q58
Keywords: accords volontaires, changement climatique, climate change, dépenses de lutte contre la pollution, eco-innovation, economic instruments for environmental policy, environmentally harmful subsidies, environmentally-related taxes, green growth strategy, instruments économiques au service de la politique d’environnement, Japan, Japon, objectifs de performance, performance targets, pollution abatement and control expenditure, stratégie pour une croissance verte, subventions dommageables pour l’environnement, taxes liées à l'environnement, voluntary agreements, éco-innovation
Creation-Date: 2011-03-18
Number: 28
Handle: RePEc:oec:envaaa:28-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Christa Clapp
Author-Workplace-Name: OECD
Author-Name: Alexia Leseur
Author-Workplace-Name: CDC Climat Research
Author-Name: Oliver Sartor
Author-Workplace-Name: CDC Climat Research
Author-Name: Gregory Briner
Author-Workplace-Name: OECD
Author-Name: Jan Corfee-Morlot
Author-Workplace-Name: OECD
Title: Cities and Carbon Market Finance: Taking Stock of Cities' Experience With Clean Development Mechanism (CDM) and Joint Implementation (JI)
Abstract: The importance of cities in climate policy stems from the simple reality that they house the majority of the world’s population, two-thirds of world energy use and over 70% of global energy use emissions. At the international level, global carbon markets have become an important new source of financing for mitigation projects and programmes. Yet to date, the participation of urban authorities and of urban mitigation projects in the global carbon market remains extremely limited. The under-representation of urban carbon projects can be linked both to the difficulties to implement urban mitigation projects and to the difficulties for cities to access the carbon market. This paper reviews 10 in–depth case studies of urban projects proposed and operating within the realm of Joint Implementation (JI) and the Clean Development Mechanism (CDM) of the Kyoto Protocol. It explores the drivers of success for projects, examining in particular: types of projects that have been successful and their profitability; leadership and other roles of various actors in project initiation development and operation (i.e. local, regional and national governments as well as international, private sector or other non-governmental organisations); the role of local cobenefits; and project financial structure and risk management approaches. This paper also considers how these lessons learned may inform decisions in the future about how to best tap the potential for carbon markets to offer increased levels of financial support for urban mitigation projects or programmes.<BR>La place accordée aux villes dans la politique climatique découle d’un constat simple : elles abritent la majorité de la population mondiale, consomment les deux tiers de l’énergie mondiale et produisent plus de 70 % des émissions mondiales liées à cette consommation. Au niveau international, les marchés mondiaux du carbone sont devenus une nouvelle source importante de financement pour les projets et les programmes d’atténuation. Pourtant, à ce jour, la participation des autorités urbaines et des projets urbains d’atténuation au marché mondial du carbone reste encore extrêmement limitée. La sous-représentation des projets urbains dans le domaine du carbone est à mettre en rapport avec les difficultés inhérentes à la mise en oeuvre de projets urbains d’atténuation et avec les obstacles rencontrés par les villes pour accéder au marché du carbone. Ce rapport examine dix études de cas approfondies portant sur des projets urbains, envisagés ou existants, dans le domaine de la mise en oeuvre conjointe (MOC) ou du mécanisme pour un développement propre (MDP) du Protocole de Kyoto. Il explore les facteurs de succès des projets, en examinant plus particulièrement les types de projets qui ont réussi et leur rentabilité ; le rôle moteur des autorités et celui des différents acteurs dans le lancement des projets, leur développement et leur fonctionnement (autorités locales, régionales et nationales, et organisations internationales, non gouvernementales et du secteur privé) ; les avantages connexes locaux ; et les approches en matière de structure financière des projets et de gestion des risques. Cette étude envisage aussi comment les enseignements tirés de ces expériences pourront à l’avenir éclairer les décisions futures sur les moyens de mobiliser au mieux le potentiel des marchés du carbone au service de l’accroissement du soutien financier aux projets ou programmes urbains d’atténuation.
Classification-JEL: F30; F53; G15; H87
Keywords: atténuation des émissions de gaz à effet de serre, carbon finance, changement climatique, cities, climate change, finance carbone, greenhouse gas mitigation, Kyoto protocol, Protocole de Kyoto, villes
Creation-Date: 2010-11-19
Number: 29
Handle: RePEc:oec:envaaa:29-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Author-Name: Fleur Watson
Author-Workplace-Name: OECD
Author-Name: Christopher Kaminker
Author-Workplace-Name: OECD
Title: Climate Policy and Technological Innovation and Transfer: An Overview of Trends and Recent Empirical Results
Abstract: Technological innovation can lower the cost of achieving environmental objectives. As such, understanding the linkages between environmental policy and technological innovation in achieving environmental objectives is important. This is particularly true in the area of climate change, where the economic costs of slowing the rate of change are affected to a great extent by the rate of innovation. This paper provides evidence on the generation and international diffusion of selected climate change mitigation technologies (CCMTs) and their respective links to key policies. The data covers a selection of technology fields (renewable energy and ‘clean’ coal) and all countries over the last 30-35 years.<BR>L’innovation technologique peut abaisser le coût de la réalisation des objectifs environnementaux. A ce titre, il importe de comprendre les liens entre politique de l’environnement et innovation technologique dans la mise en oeuvre des objectifs, notamment dans le domaine du changement climatique, où le taux d’innovation a une forte incidence sur les coûts économiques du ralentissement du phénomène. Le présent ouvrage fournit des données sur la création et la diffusion internationale de certaines technologies d’atténuation du changement climatique, et sur leurs liens avec les principales initiatives des pouvoirs publics. Les données portent sur un éventail de domaines technologiques (énergies renouvelables et charbon propre) et, pour tous les pays, sur les 30 à 35 dernières années.
Classification-JEL: O31; O33; Q42; Q54; Q55
Keywords: changement climatique, climate change, environmental policy, innovation, innovation, politique environnementale, technology transfer, transfert de technologie
Creation-Date: 2010-12-15
Number: 30
Handle: RePEc:oec:envaaa:30-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Nelly Petkova
Author-Workplace-Name: OECD
Author-Name: Rafal Stanek
Author-Workplace-Name: SST-Consult
Author-Name: Angela Bularga
Author-Workplace-Name: OECD
Title: Medium-term Management of Green Budget: The Case of Ukraine
Abstract: The purpose of this study is to examine the medium-term budget planning process in Ukraine and the extent to which this approach is used within the environmental sector. It aims to assist the Ukrainian government to integrate environmental programmes more effectively into overall programming, financial planning and budgeting practices which could result into more adequate and predictable allocations to the environment sector. The study also seeks to analyse the implications of the progressive shift in aid modalities towards sectoral and general budget support. This report was prepared within the framework of the OECD Task Force for the Implementation of the Environmental Action Programme for Central and Eastern Europe, Caucasus and Central Asia. The report also builds upon work that started within the OECD Task Team on Governance and Capacity Development for Natural Resource and Environmental Management, a joint Task Team of the OECD Development Assistance and Environmental Policy Committees. In addition, the report contributes to the debate on Green Growth, demonstrating the need for more adequate and well-costed environmental budgets, in the context of medium-term expenditure frameworks, as a means of promoting structural changes as part of the transition to green economy.
Classification-JEL: E61; H61; O13; O19; O52; P28; Q01; Q56; Q57
Keywords: budget systems, Caucasus and Central Asia (EECCA), development cooperation, direct budget support, Eastern Europe, environmental investment programmes, environmental management, environmental public expenditure management, medium-term budgeting, medium-term expenditure frameworks, Ukraine
Creation-Date: 2011-03-28
Number: 31
Handle: RePEc:oec:envaaa:31-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Author-Name: Anne Saint-Martin
Author-Workplace-Name: OECD
Author-Name: Thomas Manfredi
Author-Workplace-Name: OECD
Title: Employment Impacts of Climate Change Mitigation Policies in OECD: A General-Equilibrium Perspective
Abstract: Using a computable general equilibrium, this paper quantifies the GDP and employment effects of an illustrative greenhouse gas emissions reduction policy. The paper first analyses the direct negative economic effects of the emissions restrictions on GDP and examines labour sectoral reallocations in a framework where labour markets are perfectly flexible. The model is then modified to incorporate labour market imperfections in OECD countries that could generate unemployment, namely, short-run rigidities in real wage adjustment. It is shown that imperfect wage adjustment increases the cost of mitigation policy since unemployment increases in the short-run, but that the carbon tax revenue generated can be recycled so as offset some or all of this effect, notably when it is used to reduce wage-taxes. Thus, taking realistic labour market imperfections into account in a CGE model affects the GDP costs of mitigation policy in two ways: first by introducing extra costs due to the increased unemployment that such policy may entail; second by creating the possibility of a double dividend effect when carbon taxes are recycled so as to reduce distorting taxes on labour income..<BR>A l’aide d’un modèle d’équilibre général calculable ce papier cherche à quantifier les effets sur l’emploi et le PIB d’une politique d’atténuation du changement climatique. Dans un premier temps, le papier analyse les effets négatifs directs sur le PIB d’une politique de réduction des émissions et examine les réallocations sectorielles de l’emploi, dans un cadre où les marchés du travail sont considérés comme parfaitement flexibles. Dans un second temps une hypothèse d’imperfection du marché du travail dans les pays de l’OCDE est adoptée, cette hypothèse peut créer du chômage en raison de rigidité dans l’ajustement des salaires réels. Dans un tel cas, il est montré que les recettes fiscales associées à une taxe carbone peuvent permettre de mettre en place des politiques d’emploi actives, telles des réductions des impôts sur les salaires, qui peuvent à court-terme contrecarrer l’effet négatif de la politique d’atténuation du changement climatique. Ainsi, la prise en compte dans un modèle EGC d’une imperfection du marché du travail altère la perception des effets sur le PIB des politiques de changement climatique de deux façons : premièrement en soulignant les coûts supplémentaires qu’une telle politique peut entraîner en termes d’emplois et secondement en créant des conditions favorables à l’apparition d’un phénomène de double-dividende associée à des politiques adéquates d’utilisation des recettes fiscales liées aux taxes carbones.
Classification-JEL: D58; E24; H23; Q54
Keywords: carbon pricing, CGE model, chômage, climate change mitigation policy, modèle EGC, Politique d’atténuation du changement climatique, unemployment, valeur du carbone
Creation-Date: 2011-12-12
Number: 32
Handle: RePEc:oec:envaaa:32-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Margarita Kalamova
Author-Workplace-Name: OECD
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Title: Environmental Policy Stringency and Foreign Direct Investment
Abstract: This paper examines empirically whether countries with relatively more lax environmental regimes have a comparative advantage in their competition for foreign direct investment. It seeks to contribute to the literature in several important ways. First, we use a measure of environmental stringency which is based on managers’ perceptions of the stringency in a given country and which gives us the opportunity to analyse a broad sample of both source and host countries. Second, an important strength of the technical analysis is the non-linear modeling of the impact of policy stringency on FDI. Third, we use a ‘state-of-theart’ FDI modelling strategy, which allows us to differentiate between different models of production fragmentation. Support is found for the effect of relative environmental policy stringency on foreign direct investment patterns. However, the effect is relatively small in comparison with other factors, including more general regulatory quality. Moreover, the relationship appears to be non-linear with the effects of increased relative environmental policy stringency in the host country decreasing after a certain threshold.
Classification-JEL: F18; F21; Q56
Keywords: environmental policies, foreign direct investment, governance, knowledge-capital model, pollution haven
Creation-Date: 2011-07-01
Number: 33
Handle: RePEc:oec:envaaa:33-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Eugene Mazur
Author-Workplace-Name: OECD
Title: Environmental Enforcement in Decentralised Governance Systems: Toward a Nationwide Level Playing Field
Abstract: This report analyses approaches to managing environmental compliance monitoring and enforcement in several OECD countries with decentralised systems of environmental governance. It focuses principally on strategies and instruments for promoting consistency in the implementation of national environmental law. The report reviews in detail the experience of Spain, Sweden, Switzerland and the United States and draws on examples from several other countries. Three programmatic elements of environmental enforcement are key to ensuring its consistency: the targeting of compliance monitoring; the selection of an enforcement instrument and the timeliness of noncompliance response; and the size of monetary penalties for non-compliance. Accurate and complete information on the performance of sub-national and local competent authorities is an important prerequisite for the evaluation of nationwide consistency of enforcement. To address these issues, OECD countries employ a range of mechanisms of institutional interaction: “vertical” (between different administrative levels) as well as “horizontal” (between competent authorities at the same level). The report presents multiple examples of the application of each mechanism in different decentralised systems. It analyses these good practices and suggests several ways to use them to ensure consistency in the implementation of the main elements of enforcement programmes.
Classification-JEL: K32; K42; M48; O57; Q58
Keywords: compliance assurance, decentralised governance, environmental authorities, environmental enforcement
Creation-Date: 2011-05-31
Number: 34
Handle: RePEc:oec:envaaa:34-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alistair Hunt
Author-Workplace-Name: University of Bath
Title: Policy Interventions to Address Health Impacts Associated with Air Pollution, Unsafe Water Supply and Sanitation, and Hazardous Chemicals
Abstract: The purpose of the paper is to review the recent empirical literature relating to the quantification and valuation of the human health impacts of air pollution, hazardous chemicals, and unsafe water and sanitation, and their use in cost-benefit analysis, as an input to environmental policy decision-making. For each of these three environmental hazards, the nature and range of these health impacts are identified. The extent to which these impacts can, and have been, quantified and valued in monetary terms, is described. The use of this data in public policy-centred CBA is evaluated.The health impacts associated with particulates and low-level ozone, and quantified on the basis of epidemiological evidence, ranges from minor respiratory conditions to cardio-pulmonary related mortality. CBA that includes these impacts is an established feature of air quality regulation formulation in North America and Europe. Indeed, reduced mortality impacts have dominated the benefits included in many recent appraisals of such policy development, though the robust valuation of these impacts is still evolving.Heavy metals are associated with a variety of cancer impacts as well as on neurological development, renal dysfunction and a number of other impacts. These impacts are increasing being quantified and valued, in response to the requirement for more rigour arising from regulatory agencies in OECD countries. Increasingly sophisticated approaches to deal with the current attendant uncertainties are also being utilised.The health risks from unsafe water and sanitation derive from faecal contamination, bacteria and viruses and include gastroenteritis, diarrhoea amongst others. OECD countries use of quantified information relating to these risks in CBA is currently in the context of wastewater management, where benefit-cost ratios are sometimes found to be less than one. In contrast, in developing countries, health risks are included in the appraisal of water supply investments. In these countries, health risks are significant but generally not as important as time savings in the benefits side of the CBA, though the quantification and monetisation of health risks is often rather partial.
Classification-JEL: D4; Q25; Q51; Q52; Q53
Keywords: environment, health, meta-analysis, policy implication, transport, value of statistical life
Creation-Date: 2011-06-21
Number: 35
Handle: RePEc:oec:envaaa:35-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Anne Hammill
Author-Workplace-Name: International Institute for Sustainable Development
Author-Name: Thomas Tanner
Author-Workplace-Name: Institute of Development Studies
Title: Harmonising Climate Risk Management: Adaptation Screening and Assessment Tools for Development Co-operation
Abstract: Development planners and project managers have used a wide variety of tools to manage a broad range of environmental risks, including those posed by climate variability, for a long time. Some of these tools have also now been modified to take into account the risks posed by climate change. At the same time, there has been a recent emphasis in developing more dedicated tools which have an explicit focus on screening for climate change risks and for facilitating adaptation. The purpose of this paper is to analyse this latter set of tools targeted to screen climate change risks. The paper focuses on the need to consider the experiences of users as well as developers, and to investigate the extent to which tools are meeting user needs and if opportunities may exist for streamlining the tools landscape. This analysis is therefore an effort to contribute to the alignment and harmonisation priorities of the Paris Declaration on Aid Effectiveness of March 2005 and the follow-up Accra Agenda for Action of September 2008. While a “one-size-fits-all” approach or methodology may not be appropriate, there may be opportunities to provide common guidance on specific topics, such as categorisation and risk management frameworks, and to clarify the diverse terminology. In an effort to improve the use of screening and assessment tools, the paper recommends that the development community increase partner country ownership of risk screening and assessment tools/processes, narrow the gap between process guidance tools and data and information provision tools, supply guidance for users in moving from analysis to action and collaborate to prepare harmonised guidelines. While this analysis is limited to tools which have an explicit focus on climate change and adaptation, future work should also consider existing risk analysis tools which are practically used in development planning and modified for applications to adaptation.<BR>Les responsables de la planification du développement et les gestionnaires de projets utilisent depuis longtemps une batterie d’instruments très divers pour gérer un large éventail de risques environnementaux, dont fait partie la variabilité du climat. Certains de ces outils ont été modifiés dernièrement pour prendre en considération également les risques que présente le changement climatique. Parallèlement, des activités ont été consacrées récemment à la mise au point d’outils plus spécialisés, spécifiquement conçus pour mettre en évidence les risques qui tiennent au changement climatique et faciliter l’adaptation. Le présent article a pour objet d’analyser ces derniers outils axés sur le dépistage des risques relevant du changement climatique. Il insiste sur la nécessité de prendre en considération les expériences des utilisateurs et des promoteurs, et de déterminer dans quelle mesure les outils répondent aux besoins des utilisateurs et s’il est possible de rationaliser l’arsenal existant. Il vise ainsi à apporter des éléments à la réalisation des objectifs d’alignement et d’harmonisation énoncés dans la Déclaration de Paris sur l’efficacité de l’aide de mars 2005 et le Programme d’action d’Accra de septembre 2008 qui lui a fait suite. Il ne s’agit pas nécessairement de rechercher une approche ou une méthode universelle, mais il est peut-être envisageable de fournir des pistes communes sur des questions précises, comme les systèmes de classification et les cadres de gestion des risques, et de mettre de l’ordre dans la terminologie. Dans l’optique d’améliorer l’utilisation des instruments de dépistage et d’évaluation, l’article recommande que les acteurs du développement intensifient l’appropriation par les pays partenaires des outils et processus qui s’y rapportent, comblent le fossé entre outils d’orientation des processus et outils de fourniture de données et d’informations, et collaborent pour élaborer des lignes directrices harmonisées. La présente analyse est limitée aux outils spécifiquement axés sur le changement climatique et l’adaptation, mais les travaux futurs devraient s’intéresser également aux outils existants d’analyse des risques qui ont cours dans la planification du développement et qui sont modifiés pour être appliqués à l’adaptation.
Classification-JEL: O19; O21; O22; O29; Q01; Q54
Keywords: adaptation, adaptation, climate risk screening, coopération pour le développement, development, development co-operation, dépistage du risque climatique, développement, intégration, mainstreaming
Creation-Date: 2011-07-29
Number: 36
Handle: RePEc:oec:envaaa:36-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Margarita Kalamova
Author-Workplace-Name: OECD
Author-Name: Christopher Kaminker
Author-Workplace-Name: OECD
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Title: Sources of Finance, Investment Policies and Plant Entry in the Renewable Energy Sector
Abstract: This report looks specifically at the full array of public policies promoting investment in the renewable energy sector, and discusses their impact on plant entry into the market, with the support of case studies focusing on Germany, the U.S.A. and Australia. It examines differing risk/return expectations across stages of the investment continuum (from R&D through to mergers and acquisitions) and the financial structures that are employed at each stage. Although transparency, predictability and longevity of government programmes are necessary if investors are to initiate a project in clean energy, predictability should not be mistaken for permanence. In the case where policies target investment in physical capital, it is important to ‘sunset’ many of the policies discussed in this report. It is the nature of entrepreneurship that not all investments in new activities will pay off and not all promotion efforts will be successful. Against such a backdrop, public investment policy will also frequently meet with failure. Combining continuous assessment with policy predictability is a delicate balancing act. Clear criteria for policy evaluation are required, and ideally the criteria for success should depend on productivity.<BR>Ce rapport s’intéresse plus particulièrement à l’éventail complet des politiques publiques encourageant l’investissement dans le secteur des énergies renouvelables, et analyse leurs effets sur l’entrée de nouvelles entreprises sur le marché, en s’appuyant sur des études de cas réalisées en Allemagne, aux États-Unis et en Australie. Il étudie les différentes attentes en termes de risque/rendement au cours des différentes phases du processus d’investissement (de la R-D jusqu’aux fusions-acquisitions), et les structures financières correspondantes. Bien que la transparence, la prévisibilité et la longévité des programmes publics soient nécessaires pour que les investisseurs se lancent dans les énergies propres, il ne faut pas confondre prévisibilité et permanence. Quand les politiques publiques ciblent l’investissement dans le capital physique, de nombreuses mesures examinées dans ce rapport doivent être mises de côté. Les entrepreneurs savent pertinemment que la totalité des investissements consacrés à de nouvelles activités, y compris les efforts de promotion, ne sont pas toujours fructueux. Dans ce contexte, les politiques d’investissement public se soldent souvent par un échec. Concilier évaluation continue et prévisibilité des politiques est un exercice d’équilibre délicat, qui doit reposer sur des critères d’évaluation clairement définis, dont le principal devrait idéalement être celui de productivité.
Classification-JEL: G24; G32; G38; Q42; Q54; Q58
Keywords: asset finance, capital-risque, changement climatique, climate change, environmental policy, financement d'actifs, financial risk, investment policy, politique de l’environnement, politiques d’investissement, renewable energy sources, risque en capital, venture capital, énergies renouvelables
Creation-Date: 2011-07-29
Number: 37
Handle: RePEc:oec:envaaa:37-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Nicolina Lamhauge
Author-Workplace-Name: OECD
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Author-Name: Shardul Agrawala
Author-Workplace-Name: OECD
Title: Monitoring and Evaluation for Adaptation: Lessons from Development Co-operation Agencies
Abstract: In the context of scaled up funding for climate change adaptation, it is more important than ever to ensure the effectiveness, equity and efficiency of adaptation interventions. Robust monitoring and evaluation (M&E) is an essential part of this, both to ensure that the prospective benefits of interventions are being realised and to help improve the design of future interventions. This paper is the first empirical assessment of M&E frameworks used by development co-operation agencies for projects and programmes with adaptation-specific or adaptation-related components. It has analysed 106 project documents across six bilateral development agencies. Based on this, it identifies the characteristics of M&E for adaptation and shares lessons learned on the choice and use of indicators for adaptation. This analysis has found that Result Based Management, the Logical Framework Approach and the accompanying logframe are the most common M&E approaches used for adaptation. In applying these approaches, the long-term perspective of most adaptation initiatives means that it is particularly important to clearly differentiate between outcomes, outputs and activities. In addition, M&E frameworks for adaptation should combine qualitative, quantitative and binary indicators. The baselines for these indicators should include the effects of future climate change, particularly for projects with long-term implications, such as investments in infrastructure. Significant challenges remain in relation to dealing with shifting baselines, attribution and time lags between interventions and outcomes.<BR>De plus en plus de fonds étant alloués à l’adaptation au changement climatique, il est plus que jamais capital de veiller à l’efficacité, à l’équité et à l’efficience des actions menées dans ce cadre. Un système de suivi et d’évaluation rigoureux s’impose, à la fois pour garantir que les avantages attendus de ces actions se concrétiseront et pour mieux préparer les actions à mener dans l’avenir. Le présent document est la première étude empirique des cadres de suivi et d’évaluation appliqués par les agences de coopération pour le développement à des projets et des programmes portant intégralement ou partiellement sur l’adaptation. Cent-six documents de projets de six agences bilatérales de développement ont été analysés. Cela a permis d’identifier les caractéristiques des systèmes de suivi et d’évaluation appliqués à l’adaptation et d’en tirer des enseignements concernant le choix des indicateurs et leur utilisation. D’après cette analyse, les deux approches de suivi et d’évaluation les plus employées sont en l’occurrence la gestion axée sur les résultats et la méthode du cadre logique et la matrice qui s’y rapporte. La plupart des initiatives d’adaptation s’inscrivant dans le long terme, il est particulièrement important de bien différencier les résultats, les produits et les activités lorsque l’on applique ces approches. En outre, les systèmes de suivi et d’évaluation appliqués à l’adaptation doivent associer des indicateurs qualitatifs, quantitatifs et binaires. Pour ces indicateurs, les références doivent intégrer les effets des changements climatiques futurs, notamment dans le cas des projets qui ont des implications à long terme (investissements dans les infrastructures, par exemple). La prise en charge des variations des références, de l’attribution des résultats et des décalages temporels entre actions et résultats pose encore des problèmes importants.
Classification-JEL: H43; O22; Q54
Keywords: adaptation au changement climatique, climate change adaptation, coopération pour le développement, development co-operation, monitoring and evaluation, suivi et évaluation
Creation-Date: 2012-04-05
Number: 38
Handle: RePEc:oec:envaaa:38-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Shardul Agrawala
Author-Workplace-Name: OECD
Author-Name: Maëlis Carraro
Author-Workplace-Name: OECD
Author-Name: Nicholas Kingsmill
Author-Workplace-Name: OECD
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Author-Name: Michael Mullan
Author-Workplace-Name: OECD
Author-Name: Guillaume Prudent-Richard
Author-Workplace-Name: AECOM
Title: Private Sector Engagement in Adaptation to Climate Change: Approaches to Managing Climate Risks
Abstract: There is growing international interest in the planning, financing and implementation of adaptation to climate change. However, the discussion to date has primarily focused on the public sector’s role, with the private sector viewed primarily as a source of funding or financing. Relatively little attention has been paid to how the private sector is responding to the risks and opportunities from climate change. In this context, this analysis aims to contribute to a deeper understanding of private sector’s role. This paper examines the private sector’s progress in adapting to climate change by considering information from sixteen case studies, drawn from a range of industries across the private sector. This is complemented by a high-level analysis of broader private sector adaptation based on responses to the 2009 Carbon Disclosure Project questionnaire. The case studies provide insight into companies’ awareness of potential climate risks and vulnerabilities, their progress in assessing specific impacts on their businesses and possible ways to respond to them, and their implementation of adaptation measures and strategies to manage these risks. The analysis also examines how companies are taking advantage of new business opportunities arising from climate change. The paper explores companies’ motivations for implementing adaptation measures, and establishes common factors which can affect companies’ capacities to adapt, their incentives for action, and their perspectives on the need to adapt. The analysis considers how these factors can both encourage and impede adaptation, and assesses potential public sector roles for eliminating barriers to action, encouraging engagement and incentivising private sector investment in adaptation.
Classification-JEL: M19; Q54; Q58
Keywords: adaptation, adaptation, changement climatique, climate change, gestion des risques, private sector, risk management, secteur privé
Creation-Date: 2011-11-30
Number: 39
Handle: RePEc:oec:envaaa:39-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Shardul Agrawala
Author-Workplace-Name: OECD
Author-Name: Cécile Bordier
Author-Workplace-Name: OECD
Author-Name: Victoria Schreitter
Author-Workplace-Name: OECD
Author-Name: Valerie Karplus
Author-Workplace-Name: Massachusetts Institute of Technology
Title: Adaptation and Innovation: An Analysis of Crop Biotechnology Patent Data
Abstract: Innovation in technologies that promote mitigation and adaptation will be critical for tackling climate change. It can decrease the costs of policy measures and provide new opportunities for the private sector. However, most discussions of innovation have focused on mitigation, while little attention has been paid to innovation for adaptation. This paper uses agricultural crop biotechnology as a case study of innovative activity. The agricultural sector is considered to be particularly vulnerable to climate change, in addition to facing the pressures of meeting the demands of a rising world population. Innovation in plant breeding to develop crop varieties that are more resilient to climate change impacts is one of several possible adaptation options for agriculture. This paper neither advocates nor discourages the use of biotechnology, but focuses on providing estimates of the level and trends of innovation in this field.
Classification-JEL: O39; Q16; Q54
Keywords: adaptation, adaptation, agriculture, agriculture, biotechnologie, biotechnology, brevets, changement climatique, climate change, innovation, innovation, patents
Creation-Date: 2012-03-26
Number: 40
Handle: RePEc:oec:envaaa:40-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Author-Name: Cuauhtemoc Rebolledo
Author-Workplace-Name: OECD
Author-Name: Rob Dellink
Author-Workplace-Name: OECD
Title: An Economic Projection to 2050: The OECD "ENV-Linkages" Model Baseline
Abstract: This document describes economic baseline projections to 2050 for several world regions. It describes how socio-economic drivers are used to create a consistent projection of economic activity for the coming decades, applying the general framework of “conditional convergence”. This economic baseline is created using the ENV-Linkages model version 3. This baseline is used for modelling analysis with the ENVLinkages model as carried out for the OECD Environmental Outlook to 2050 (to be released in Spring 2012). Specific attention is given in this paper to projections for the energy system as part of the economy, to allow detailed links between economic activity and environmental pressures, including emissions of greenhouse gases (GHGs).<BR>Ce document décrit les projections économiques mondiales d’un scénario de référence à l’horizon 2050. Il explique comment les différents déterminants socio-économiques sont combinés entre eux pour créer une projection cohérente de l’activité économique pour les décennies à venir, sur la base d’un cadre d’analyse fondé sur la « convergence conditionnelle ». Ce scénario économique de référence est obtenu au moyen de simulations du modèle ENV-linkages (version 3). Ce compte central est utilisé comme point de référence des exercices de simulations numériques proposées dans les « Perspective de l’Environnement de l’OCDE à l’horizon 2050 » (à paraître au printemps 2012). Une attention particulière aux projections énergétiques est entreprise, dans la mesure où celles-ci sont des éléments centraux de l’interaction entre activité économique et pression sur l’environnement, au travers notamment des émissions de gaz à effets de serre.
Classification-JEL: D58; H23; O54; Q56
Keywords: changement climatique, climate change, general equilibrium models, long-term scenarios, modèle d'équilibre général calculable, scénarios de long-terme
Creation-Date: 2011-12-15
Number: 41
Handle: RePEc:oec:envaaa:41-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Author-Name: Nadja Kahrobaie
Title: International Technology Agreements for Climate Change: Analysis Based on Co-Invention Data
Abstract: This paper examines the effect of multilateral energy technology initiatives, so called "Implementing Agreements", on international research collaboration in seven important climate change mitigation technologies. The analysis is conducted using patent data on 33 OECD countries during the period 1970- 2009. We find that co-invention is significantly affected by the membership in the Implementing Agreement. Extending adherence to other countries would increase co-invention by about 90% in the case of wind and fuel cells, and even more in the case of biofuels, solar PV and CCS. Given the urgency to develop effective international mechanisms to mitigate climate change, these results are encouraging and the topic is an important area for further policy research.<BR>À partir des données sur les brevets de 33 pays de l’OCDE pour la période 1970-2009, ce document analyse la manière dont les initiatives multilatérales de technologies énergétiques, dits « accords de mise en oeuvre », influencent la collaboration internationale dans sept grands domaines de la recherche sur les technologies d’atténuation climatique. Le constat est que l’identité des acteurs associés à l’accord de mise en oeuvre est un facteur déterminant de co-invention. Extension de l'adhésion à d'autres pays augmenterait co-invention d'environ 90% dans le cas de l'éolien et de piles à combustible, et encore plus dans les cas de biocarburants, solaire photovoltaïque, et CSC. Vu l’urgence de disposer de cadres internationaux efficaces pour atténuer les changements climatiques, il s’agit de résultats encourageants et d’une question importante pour la suite des travaux de recherche sur les politiques.
Classification-JEL: O31; O38; Q42; Q48; Q54; Q55; Q56; Q58
Keywords: Accords sur les technologies, climate policy, innovation, innovation, politique climatique, technologies, technology, Technology Agreements
Creation-Date: 2012-02-20
Number: 42
Handle: RePEc:oec:envaaa:42-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jérôme Silva
Author-Workplace-Name: OECD
Author-Name: Femke de Keulenaer
Author-Workplace-Name: Gallup Europe
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Title: Environmental Quality and Life Satisfaction: Evidence Based on Micro-Data
Abstract: Environmental conditions are likely to have an effect on people’s sense of life satisfaction, both directly and indirectly. In recent years there has been a burgeoning literature assessing the relationship between measures of environmental quality and subjective well-being. This type of studies can be a useful input into the setting of policy priorities. In this paper, the effects of individual and contextual factors on satisfaction with environmental quality and life satisfaction are assessed, using micro-data from a broad cross-section of OECD and non-OECD countries collected in the framework of the Gallup World Poll. In the analysis it is found that actual and perceived environmental quality has a significant effect on life satisfaction, with the magnitude being approximately half that of self-reported health status.<BR>Les conditions environnementales peuvent affecter, directement et indirectement, la satisfaction individuelle. Durant les dernières années s’est développée une littérature économique explorant les relations entre mesures de la qualité de l’environnement et mesures du bien-être subjectif des populations. Les travaux de ce type peuvent être utiles dans l’élaboration des priorités politiques. Nous explorons dans cet article les effets des facteurs individuels et contextuels sur la satisfaction par rapport à la qualité de l’environnement et au bien être subjectif, en utilisant des données individuelles collectées par Gallup au sein d’un large panel de pays membres et non-membres de l’OCDE. L’analyse montre que la qualité de l’environnement a un effet significatif sur la satisfaction individuelle, dont la magnitude est d’environ la moitié de celle de l’effet de la santé subjective.
Classification-JEL: D60; Q51; Q53
Keywords: air pollution, bien-être subjectif, life satisfaction, local environmental quality, pollution de l’air, qualité de l’environnement, satisfaction individuelle, subjective well-being
Creation-Date: 2012-03-20
Number: 44
Handle: RePEc:oec:envaaa:44-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Title: The Determinants of Invention in Electricity Generation Technologies: A Patent Data Analysis
Abstract: This paper analyses the determinants of invention in efficiency-enhancing electricity generation technologies that have the potential to facilitate climate change mitigation efforts, including fossil fuelbased technologies aimed at reducing carbon emissions, renewables and nuclear technologies. The evolution of inventive activity in these technologies is analysed by considering patent data for 11 OECD countries over the period 1978-2008. The analysis considers various drivers of inventive activity, including R&D expenditures and electricity consumption, but pay particular attention to the role of fossil fuel prices because they suggest the impact that price mechanisms such as emissions trading and carbon taxes are likely to have on invention in the electricity generation sector. The results show that the effect of fossil fuel prices varies according to the different types of technologies. As fossil fuel prices increase, inventive activity in renewable energy technologies increases while the effect of on fossil fuel-based technologies is positive but with decreasing increments. The results show that there is no effect of fossil fuel prices on patenting activity in nuclear energy technologies. These results illustrate that there may be a price-induced switching between renewable and fossil fuel-based technologies. As fossil fuel prices rise, an efficiency effect encourages inventive activity in both fossil fuelbased and renewable technologies. As fossil fuel prices increase further, invention in fossil fuel-based technologies starts declining suggesting that a substitution effect drives away innovation from fossil fuelbased towards renewable energy technologies.
Classification-JEL: Q4; Q54; Q55
Keywords: climate change, energy, innovation, patents
Creation-Date: 2012-09-14
Number: 45
Handle: RePEc:oec:envaaa:45-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Christopher Kennedy
Author-Workplace-Name: OECD
Author-Name: Jan Corfee-Morlot
Author-Workplace-Name: OECD
Title: Mobilising Investment in Low Carbon, Climate Resilient Infrastructure
Abstract: This paper addresses several broad issues for governments aiming to encourage private sector investment in low-carbon climate resilient (LCR) infrastructure, in both developed and developing world contexts. LCR infrastructure is defined, recognizing the interdependencies between infrastructure systems, and the opportunities to tackle climate change adaptation and mitigation simultaneously in national strategic infrastructure plans. Review of the performance of OECD countries in reducing greenhouse gas emissions related to three categories of gross fixed capital formation is mixed. Half of the countries analysed achieved decoupling of emissions from capital formation in the residential building sector, but only two in the transportation sector and nine in power and industry. The paper reviews future global infrastructure needs under low carbon and business-as–usual scenarios. Although cost estimates are incomplete, the technical interdependency and financial tradeoffs between infrastructure systems suggests the potential to generate virtuous cycles of low carbon growth. Governments can encourage private investment in LCR infrastructure by improving the risk-return profile of projects. The paper provides a ranking of the most significant risks in financing LCR projects showing that policy (or sovereign) risks rank amongst the highest. The potential to finance LCR infrastructure in low income nations is challenging due to basic banking services, lack of non-bank financial services, weak risk management capacity and limited availability of long term funding. Drawing on OECD?s work on the water sector, the paper reviews financing mechanisms that help to increase access to commercial banks, bond finance, project finance and equity finance in developing countries. Green bonds are an example of a financing mechanism with strong potential for LCR infrastructure in developed countries, but supportive government policies are required. The paper concludes by considering governance arrangements that can enable and secure private engagement in LCR infrastructure investment, including public private partnerships (PPPs). Where governments have opted to use PPPs, government PPP units may be suitable administrative units for managing delivery of LCR performance as an integral part of the infrastructure project.<BR>Le présent document évoque plusieurs des grandes questions qui se posent aux pays désireux d'encourager l'investissement privé dans les infrastructures à bas carbone et résilientes au changement climatique (low-carbon climate resilient, LCR), tant dans les pays développés que dans les pays en développement. Dans sa définition des infrastructures LCR, le document note l'existence d'interdépendances entre les systèmes d'infrastructures, et rappelle que la planification stratégique nationale en matière d'infrastructures peut être l'occasion de poursuivre à la fois les objectifs d'adaptation et d'atténuation de la politique climatique. L'examen des performances des pays de l'OCDE en matière de réduction des émissions de gaz à effet de serre liées à trois catégories de formation brute de capital fixe fait apparaître un tableau mitigé. Si la moitié des pays examinés a réussi à découpler les émissions de la formation de capital dans le secteur de la construction résidentielle, seuls deux y sont parvenus dans le secteur des transports, et neuf dans ceux de l'énergie et de l'industrie. Le document analyse l'évolution future des besoins mondiaux en infrastructures selon un scénario bas carbone et selon un scenario de politiques inchangées. Les estimations de coûts sont incomplètes, mais des cycles vertueux de croissance sobre en carbone semblent possibles, compte tenu de l'interdépendance entre les systèmes d'infrastructures, tant d'un point de vue technique qu'en termes d'arbitrages financiers. Pour encourager l'investissement privé dans les infrastructures LCR, les gouvernements peuvent améliorer le rapport rendement-risque des projets. Le document classe les principaux risques qui pèsent sur le financement de projets d'infrastructures LCR. Parmi les plus importants figurent les risques stratégiques (ou souverains). Dans les pays à faible revenu, plusieurs facteurs compromettent les possibilités de financer les infrastructures LCR : services bancaires rudimentaires, absence de services financiers non bancaires, faibles capacités de gestion des risques et sources de financement à long terme insuffisantes. À partir des travaux de l'OCDE sur le secteur de l'eau, ce document présente des mécanismes de financement qui contribuent à améliorer l'accès aux banques commerciales, au financement obligataire, au financement de projets et au financement sur fonds propres dans les pays en développement. Parmi ces mécanismes de financement, les obligations vertes offrent des perspectives intéressantes pour financer les infrastructures LCR dans les pays développés, mais nécessitent des mesures de soutien public. En conclusion, le document évoque les systèmes de gouvernance susceptibles d'assurer l'implication du secteur privé dans les investissements relatifs aux infrastructures LCR. Malgré les risques et les complexités supplémentaires liés aux partenariats public-privé (PPP), en particulier avec les nouvelles technologies, le recours à ce dernier type de dispositif peut apparaître comme une option prometteuse pour les pouvoirs publics désireux de favoriser ces investissements. Des organismes publics spécialisés dans les PPP pourraient constituer des unités administratives adaptées pour gérer la fourniture d'infrastructures LCR.
Classification-JEL: G; O
Keywords: changement climatique, climate change, croissance bas carbone, development, développement, finance, finance, formation brute de capital fixe, gross fixed capital formation, infrastructure, infrastructure, investissement privé, low-carbon growth, partenariats public-privé, politiques publiques, private investment, public private partnerships, risk, risque
Creation-Date: 2012-11-23
Number: 46
Handle: RePEc:oec:envaaa:46-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Eugene Mazur
Author-Workplace-Name: OECD
Title: Green Transformation of Small Businesses: Achieving and Going Beyond Environmental Requirements
Abstract: This report aims to help environmental and other competent authorities in OECD countries to promote green business practices among small and medium-sized enterprises (SMEs). It analyses different ways to establish environmental regulatory requirements for facilities with low environmental risk (most of which are SMEs). It also examines how to design and apply information and market-based tools to promote compliance with such requirements and adoption of cleaner technologies and good environmental management practices. The report suggests several ways to increase the effectiveness of these promotion tools with respect to the SME community. The report addresses the roles of environmental authorities, local governments, business organisations and financial institutions in the greening of small businesses. It reviews in detail the experience of France, Ireland, Korea, the Netherlands and the UK (England and Wales and Scotland) and draws on examples of several other countries.
Classification-JEL: K32; K42; L53; M48; O44; O57; Q58
Keywords: environmental authorities, environmental compliance, green growth, SMEs
Creation-Date: 2012-09-20
Number: 47
Handle: RePEc:oec:envaaa:47-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jan Corfee-Morlot
Author-Workplace-Name: OECD
Author-Name: Virginie Marchal
Author-Workplace-Name: OECD
Author-Name: Céline Kauffmann
Author-Workplace-Name: OECD
Author-Name: Christopher Kennedy
Author-Workplace-Name: OECD
Author-Name: Fiona Stewart
Author-Workplace-Name: OECD
Author-Name: Christopher Kaminker
Author-Workplace-Name: OECD
Author-Name: Geraldine Ang
Author-Workplace-Name: OECD
Title: Towards a Green Investment Policy Framework: The Case of Low-Carbon, Climate-Resilient Infrastructure
Abstract: Achieving low-carbon, climate-resilient (LCR) development is a policy goal of many governments today, and investment in built-infrastructure – in the energy, transport, water and building sectors – is a central part of the challenge. In the face of growing infrastructure needs and fiscal constraints, such transformational change will require large-scale private sector engagement. However, there is little policy experience on how to integrate climate and other environmental policy goals into investment policy frameworks and infrastructure planning. While many studies focus on the role of environmental and climate change policies to support a transition to a low-carbon, climate-resilient (LCR) economy, this paper suggests that other factors play a critical role to achieve this transition. It starts from the premise that climate change policies and their effectiveness cannot be studied in isolation, but need to be considered in a broader national policy context, one that has the enabling environment for investment and development at its centre. This report aims to advise governments on how to create and improve domestic enabling conditions to shift and scale-up private sector investments in green infrastructure, to finance a transition to a LCR economy and greener growth. This report advances a “green investment policy framework” taking infrastructure investment as a starting point and looking only at climate change mitigation and adaptation. It highlights the significant opportunities and many challenges that exist today in both developed and developing countries to transition to LCR development through investment in both renovated and in new infrastructure. The report suggests it is possible to generate multiple local development benefits from LCR infrastructure investment. It presents a five-point policy framework to guide domestic reforms that can steer use of limited public funds while also enabling and incentivising private investment to support a transition across relevant infrastructure sectors to simultaneously deliver climate change and local development goals.<BR>La mise en oeuvre d’un développement sobre en carbone et résilient au changement climatique constitue aujourd’hui l’un des objectifs de nombreux gouvernements, et les investissements consacrés aux infrastructures bâties – dans les secteurs de l’énergie, des transports, de l’eau et du bâtiment – représentent une part essentielle du défi à relever. Compte tenu de l’augmentation des besoins en infrastructures et des contraintes budgétaires, ces changements nécessiteront une mobilisation à grande échelle du secteur privé. Or les pouvoirs publics ne possèdent guère d’expérience sur la manière d’intégrer les objectifs climatiques ou relatifs à d’autres questions environnementales dans les cadres d’action pour l’investissement et la planification des infrastructures. Alors que de nombreuses études mettent en avant le rôle des politiques environnementales et climatiques dans la transition vers une économie sobre en carbone et résiliente au changement climatique, le présent document tend à démontrer que d’autres facteurs ont également un rôle décisif à jouer dans cette évolution. Il part du principe que les politiques climatiques et leur efficacité ne peuvent être étudiées isolément, mais doivent être envisagées dans un contexte de politique nationale plus large, en mettant l’accent sur les moyens de favoriser l’investissement et le développement. Ce rapport vise à conseiller les gouvernements sur la manière de créer ou d’améliorer les conditions permettant, au niveau national, d’orienter et d’accroître les investissements du secteur privé dans les infrastructures vertes, ainsi que de financer le passage à une économie sobre en carbone et résiliente au changement climatique et à une croissance plus verte. Ce rapport propose un « cadre d’action pour l’investissement vert » à partir d’une réflexion sur l’investissement dans les infrastructures, considéré exclusivement du point de vue de l’atténuation du changement climatique et de l’adaptation à ses effets. Il met en évidence les opportunités notables et les nombreuses difficultés que suscite aujourd’hui, dans les pays développés et en développement, la mise en oeuvre d’un développement sobre en carbone et résilient au changement climatique par le biais de l’investissement dans la rénovation ou la construction d’infrastructures. Ce rapport suggère qu’il est possible de dégager de multiples avantages, en termes de développement local, de l’investissement dans des infrastructures à bas carbone et résilientes au changement climatique (BRC). Il propose un cadre d’action en cinq points afin de contribuer à définir des réformes nationales susceptibles d’orienter l’utilisation de fonds publics limités tout en encourageant le secteur privé à soutenir la transition par des investissements dans les secteurs d’infrastructures appropriés, de façon à répondre simultanément aux objectifs climatiques et de développement local.
Classification-JEL: G11; G18; O44; Q01; Q54
Keywords: climate change, development, finance, infrastructure, policy, private investment, risk
Creation-Date: 2012-11-12
Number: 48
Handle: RePEc:oec:envaaa:48-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jason Shogren
Author-Workplace-Name: University of Wyoming
Title: Behavioural Economics and Environmental Incentives
Abstract: This review aims to improve our understanding of the implications of the insights from behavioural economics for environmental policy design. The review focuses on the question of incentive design in two broad areas — risk, conflict and cooperation; and mechanism design. A number of lessons for policy design emerge from the literature and are highlighted in the paper.<BR>Cet examen vise à améliorer notre compréhension des implications des perspectives de l'économie comportementale pour la conception de la politique environnementale. L'examen porte sur la question de la conception d'incitation dans deux grandes zones: (A) le risque, les conflits et la coopération et (B) la conception du mécanisme. Des leçons émergent de la littérature pour la conception des politiques et sont mis en évidence dans le document.
Classification-JEL: D70; H30; H41; Q28; Q58
Keywords: behavioural economics, conception du mécanisme, environmental policy, institutions, institutions, mechanism design, politique environnementale, économie comportementale
Creation-Date: 2012-11-07
Number: 49
Handle: RePEc:oec:envaaa:49-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Jérôme Silva
Author-Workplace-Name: OECD
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Title: Climate Mitigation and Adaptation in Africa: Evidence from Patent Data
Abstract: This paper presents comparative data on innovation in selected climate change mitigation and adaptation technologies in the context of Africa. Such analysis informs policy aimed at encouraging international technology transfer and development of domestic innovation capacities. We present detailed analysis of the role of Africa in development of these technologies (invention), and then move on to examine Africa as a technology market (as reflected in patenting). In addition, we briefly touch upon the question of cross-border technology development (co-invention) in Africa. Despite Africa’s generally low volume of inventive activity in these fields in comparison with other countries, inventive activity is disproportionately directed towards mitigation and adaptation technologies. In addition, the rate of international co-invention for most mitigation and adaptation technologies is much higher in Africa than in the rest of the world. And finally, rates of protection of climate technologies at African intellectual property offices are high relative to other technologies. Nonetheless, it must be emphasized that a relatively small number of inventions are protected in Africa, providing evidence that IP is not a barrier to technology transfer and diffusion.<BR>Ce rapport livre des données comparatives sur l’innovation concernant certaines technologies d’atténuation du changement climatique et d’adaptation à ses effets dans le contexte de l’Afrique. L’analyse de ces données éclaire l’élaboration des politiques visant à encourager les transferts internationaux de technologies et le renforcement des capacités nationales d’innovation. Nous proposons une analyse détaillée du rôle de l’Afrique dans la mise au point de ces technologies (invention), avant d’étudier le marché technologique qu’elle représente (à l’aune des dépôts de brevets). Nous abordons en outre brièvement la question du développement de technologies au niveau international (co-invention) en Afrique. Si l’activité inventive des pays africains dans ces domaines est généralement faible par rapport à d’autres pays, les technologies d’atténuation et d’adaptation y tiennent toutefois une place primordiale. Qui plus est, la co-invention internationale concernant la plupart de ces technologies est bien plus fréquente en Afrique que dans le reste du monde. Enfin, les offices africains de la propriété intellectuelle délivrent davantage de brevets aux technologies climatiques qu’aux autres technologies. Soulignons cependant que les inventions protégées sont relativement peu nombreuses en Afrique, et que la propriété intellectuelle n’y dresse donc pas d’obstacle au transfert et à la diffusion des technologies
Classification-JEL: O31; O33; O38; O55; Q42; Q48; Q54; Q55; Q56; Q58
Keywords: brevets, climate policy, diffusion des technologies, innovation, innovation, patents, politique climatique, technology diffusion, technology transfer, transferts de technologie
Creation-Date: 2012-11-16
Number: 50
Handle: RePEc:oec:envaaa:50-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Zack Brown
Author-Workplace-Name: OECD
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Laura Vong
Author-Workplace-Name: OECD
Author-Name: Francis Barascud
Author-Workplace-Name: OECD
Title: Testing the Effect of Defaults on the Thermostat Settings of OECD Employees
Abstract: Default options have been shown to affect behaviour in a variety of economic choice tasks, including health care and retirement savings. Less research has tested whether defaults affect behaviour in the domain of energy efficiency. This study uses data from a randomized controlled experiment in which the default settings on office thermostats in an OECD office building were manipulated during the winter heating season, and employees’ chosen thermostat setting observed over a 6 week period. Using difference-in-differences, panel, and censored regression models (to control for maximum allowable thermostat settings), we find that a 1°C decrease in the default caused a reduction in the chosen setting by 0.38°C on average. Sixty-five percent of this effect could be attributed to office occupant behaviour (p-value=0.044). The difference-in-differences model shows that small decreases in the default (1°) led to a greater reduction in chosen settings than large decreases (2°). We also find that office occupants who are more apt to adjust their thermostats prior to the intervention were less susceptible to the default. We find no evidence that offices with multiple occupants displayed different patterns in thermostat choices than single-occupant offices. We conclude that this kind of intervention can increase building-level energy efficiency, and discuss potential explanations and broader policy implications of our findings.<BR>Il a été démontré que les options par défaut influaient sur le comportement dans diverses situations de choix économique, portant par exemple sur le système de santé ou le régime de retraite. Cependant, l’incidence des options par défaut sur le comportement dans le domaine de l’efficacité énergétique a fait l’objet de travaux de recherche moins nombreux. Pour cette étude, des données ont été recueillies dans le cadre d’une expérience aléatoire contrôlée ayant consisté à manipuler le réglage par défaut des thermostats installés dans les bureaux d’un bâtiment de l'OCDE pendant la période de chauffage hivernale, et à observer le réglage choisi par les salariés sur une période de 6 semaines. Des modèles fondés sur la méthode des « différences de différences », des données de panel et une analyse de régression censurée (prenant en compte les réglages thermostatiques maximum admissibles) permettent de constater qu’une baisse de la température par défaut de 1°C se traduit par une réduction de 0.38°C en moyenne de la température choisie. Soixante-cinq pour cent de cet effet pourrait être attribué au comportement de l’occupant du bureau (valeur-p=0.044). Le modèle de « différences de différences » montre qu’une légère baisse de la température par défaut (1°) entraîne une plus forte réduction de la température choisie qu’une baisse importante (2°). Nous constatons aussi que les occupants des bureaux les plus enclins à ajuster leur thermostat avant l’intervention ont été moins sensibles au réglage par défaut. Nous ne trouvons pas de différence quant aux choix de température entre les bureaux occupés par plusieurs personnes et les bureaux individuels. Nous concluons que ce type d’intervention peut accroître l’efficacité énergétique au niveau des bâtiments, et examinons les explications possibles et les enseignements plus généraux qui peuvent être tirés de nos résultats pour l’élaboration des politiques publiques.
Classification-JEL: B5; C1; C9; H3; Q4
Keywords: behavioural economics, energy efficiency, field experiments
Creation-Date: 2012-12-05
Number: 51
Handle: RePEc:oec:envaaa:51-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ivana Capozza
Author-Workplace-Name: OECD
Author-Name: Joseph Curtin
Author-Workplace-Name: Institute of International and European Affairs
Title: Towards Consistent and Effective Carbon Pricing in Germany?
Abstract: Germany committed itself to challenging greenhouse gas (GHG) emission reduction targets to 2020 and beyond. It has implemented a composite mix of policy measures to achieve its climate change mitigation goals, including a range of market-based instruments. These measures have helped reduce domestic GHG emissions, as well as achieve other policy objectives. However, they have generated multiple (explicit and implicit) carbon prices, which can reduce the overall cost-effectiveness of climate change mitigation policy. This paper examines the carbon prices that have emerged from the implementation of three key market-based instruments in Germany: energy taxes, vehicle taxes and the EU Emissions Trading System. It also reviews the use of feed-in tariffs to promote electricity generation from renewable sources, with a focus on the implied GHG abatement costs and the interactions with other environmental policy instruments. This Working Paper relates to the 2012 OECD Environmental Performance Review of Germany: http://www.oecd.org/environment/environmentalcountryreviews/oecdenvironmentalperformancereviewsge rmany2012.htm<BR>L’Allemagne s’est engagée à respecter des objectifs ambitieux de réduction des émissions de gaz à effet de serre (GES) en 2020 et ultérieurement. Elle met en oeuvre tout un éventail de mesures pour atteindre ses objectifs d’atténuation du changement climatique, et notamment divers instruments économiques. Ces mesures ont contribué à réduire les émissions nationales de GES, et à atteindre d’autres objectifs. Cependant, il en découle plusieurs prix du carbone (explicites et implicites), qui risquent de nuire à l’efficacité globale par rapport aux coûts de son action. Le présent rapport examine les prix du carbone qui se dégagent de l’application de trois instruments économiques clés en Allemagne : les taxes sur l’énergie, les taxes sur les véhicules et le système d'échange de quotas d'émission de l’UE. Il aborde aussi le recours aux tarifs d’achat pour encourager la production d’électricité moyennant des sources renouvelables, en mettant l’accent sur les coûts implicites de réduction des émissions de GES et les interactions avec d’autres instruments de la politique d’environnement. Ce document de travail se rapporte à l’Examen environnemental de l'OCDE de l’Allemagne, 2012 : http://www.oecd.org/fr/environnement/examensenvironnementauxparpays/examensenvironnementaux delocdeallemagne2012.htm
Classification-JEL: H23; Q48; Q52; Q54; Q58
Keywords: Allemagne, carbon price, emissions trading systems, environmentally harmful subsidies, environmentally related taxes, Germany, prix du carbone, subventions dommageables pour l’environnement, système d’échange de droits d’émissions, taxes liées à l'environnement
Creation-Date: 2012-12-14
Number: 52
Handle: RePEc:oec:envaaa:52-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Title: Environmental Innovation in Germany
Abstract: This paper reviews the recent experience of Germany in encouraging innovation to reduce negative environmental impacts of economic activity. The essence of the German approach to policy-induced environmental innovation is discussed in the context of changing policy objectives, and illustrated with selected examples from waste management, renewable energy and transportation. The paper covers environmental and general innovation policies and the cross-cutting issue of policy co-ordination. Particular attention is paid to analysis of policies to promote renewable energy, including feed-in tariffs, and policies to promote advanced transportation.<BR>Ce document analyse le bilan de l’action menée dans un passé récent en Allemagne pour encourager une innovation tournée vers la réduction des effets négatifs de l’activité économique sur l’environnement. La nature profonde de l’approche de l’Allemagne, qui mise sur le développement d’innovations environnementales sous l’impulsion des politiques publiques, est examinée dans le contexte de l’évolution des objectifs de l’action publique, et illustrée par plusieurs exemples portant sur la gestion des déchets, les énergies renouvelables et les transports. Ce document aborde les politiques en faveur de l’innovation environnementale et de l’innovation en général, de même que la question transversale de la coordination des politiques. Une attention particulière est portée à l’analyse des mesures visant à promouvoir les énergies renouvelables – dont les tarifs de rachat – et des mesures visant à promouvoir les technologies avancées de transport.
Classification-JEL: H23; O31; O33; O38; O52; Q42; Q48; Q53; Q54; Q55; Q58; R48
Keywords: coordination des politiques, eco-innovation, environmental policy, innovation, innovation, policy coordination, politique environnementale, technologie, technology, éco-innovation
Creation-Date: 2012-12-12
Number: 53
Handle: RePEc:oec:envaaa:53-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Michael Mullan
Author-Workplace-Name: OECD
Author-Name: Nicholas Kingsmill
Author-Workplace-Name: OECD
Author-Name: Arnoldo Matus Kramer
Author-Workplace-Name: OECD
Author-Name: Shardul Agrawala
Author-Workplace-Name: OECD
Title: National Adaptation Planning: Lessons from OECD Countries
Abstract: Since the first OECD country published its national adaptation strategy in 2005, there has been a marked increase in national planning for climate change adaptation. This paper provides an overview of national adaptation planning activity across OECD countries and identifies some of the emerging lessons that have been learnt from their experiences. The analysis draws on three main sources of information: a survey of countries’ national communications to the UN Framework Convention on Climate Change (UNFCCC); three country case studies (Mexico, England and the United States); and the results of a Policy Forum on Adaptation hosted by the OECD in 2012. It finds that twenty-six OECD countries have developed or are currently developing strategic frameworks for national adaptation and seventeen of those countries have also produced or are working on detailed national adaptation plans. Countries have made significant investments in building an increasingly sophisticated evidence base to support adaptation, and to build adaptive capacity. National governments have commonly established policies to mainstream adaptation into government operations and regulatory systems, and established co-ordination mechanisms to ensure action across government. Local and regional governments have also played significant roles in adaptation efforts, though less progress has been made in establishing systematic approaches to co-ordination between national and subnational governments. The development of strategies and plans has occurred recently, with implementation still at an early stage. Nonetheless, the case studies and OECD workshop revealed three key challenges faced by countries as they have started to implement their strategies and plans: overcoming climate information shortcomings and associated capacity constraints; securing adequate financing; and measuring the success of adaptation interventions. Action to address these constraints will be vital to ensuring that progress in planning translates into improvements in outcomes.
Classification-JEL: H10; H12; Q54; Q58
Keywords: adaptation, climate change, national planning, risk management
Creation-Date: 2013-04-10
Number: 54
Handle: RePEc:oec:envaaa:54-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Arjan Ruijs
Author-Workplace-Name: PBL Netherlands Environmental Assessment Agency
Author-Name: Herman R. J. Vollebergh
Author-Workplace-Name: PBL Netherlands Environmental Assessment Agency
Title: Lessons from 15 Years of Experience with the Dutch Tax Allowance for Energy Investments for Firms
Abstract: Since 1997, the Netherlands has had a tax allowance scheme that was introduced to promote investments in energy-saving technologies and sustainable energy production. This so-called Energy Investment Tax Allowance (EIA in Dutch) reduces up-front investment costs for firms investing in the newest energy-saving and sustainable energy technologies. The basic design of the EIA has remained the same over the past 15 years. Firms investing in technologies listed in the annually updated ‘Energy List’ may deduct some of the investment costs from their taxable profits in the year of the investment. Compared to investments in conventional reference technologies, the EIA decreases the payback period and reduces the need of financing the investments in energy-saving technologies. The EIA may also reduce search costs made by investors to find particular technologies, because entry on the Energy List equals eligibility for the subsidy. The Energy List contains generic technologies that meet a certain energy-saving standard or a selection of novel, but proven, technologies with a higher energy-saving potential than conventional technologies. Therefore, the list itself is also likely to have an attention value that may contribute to reduce information failures in the market for technology adoption. Over the past 15 years, the EIA has been affected by a number of changes, mainly due to exogenous factors, such as interactions with other policy instruments, rising oil and gas prices, and the economic crisis since 2007. Despite this turbulence and changes in government focus, the EIA remains part of the Dutch energy policy mix. Its flexibility allowed for adaptations where necessary and its role as a subsidy for technology adoption is likely to also have contributed to its legitimacy.<BR>Depuis 1997, les Pays-Bas ont en vigueur un mécanisme de déduction fiscale qui a été adopté pour encourager les investissements dans les technologies d’économie d’énergie et dans la production durable d’énergie. Appelé Energy Investment Tax Allowance (déduction fiscale au titre des investissements énergétiques, EIA en néerlandais), ce dispositif permet de réduire la mise de fonds initiale des entreprises qui investissent dans les technologies les plus récentes d’économie d’énergie ou de l’énergie durable. Le principe fondamental de l’EIA est resté le même pendant les 15 dernières années : les entreprises qui investissent dans les technologies inscrites dans la Liste des technologies de l’énergie – l’‘Energy List’ –, mise à jour tous les ans, peuvent déduire une partie de leurs coûts d’investissement de leurs bénéfices imposables de l’année où l’investissement est effectué. Grâce à l’EIA, les investissements dans les technologies d’économie d’énergie ont un temps de retour et des besoins de financement inférieurs à ceux des investissements dans des technologies conventionnelles de référence. L’EIA permet aussi aux investisseurs d’alléger les dépenses à engager pour trouver telle ou telle technologie, car l’inscription dans la Liste des technologies de l’énergie ouvre droit au subventionnement. Dans cette liste figurent des technologies génériques qui respectent une norme d’économie d’énergie donnée ainsi qu’une sélection de technologies nouvelles, mais éprouvées, dont le potentiel d’économie d’énergie est supérieur à celui des technologies conventionnelles. La liste proprement dite a donc une valeur informative dès lors qu’elle peut contribuer à combler des lacunes d’information sur le marché des technologies. Au cours des 15 dernières années, l’EIA a fait l’objet de plusieurs modifications, découlant surtout de facteurs exogènes tels que des interactions avec d’autres instruments d’action, la hausse des prix du pétrole et du gaz, ou la crise économique depuis 2007. Malgré cette instabilité et les changements de priorités des pouvoirs publics, l’EIA continue de faire partie de l’arsenal de mesures de politique énergétique des Pays-Bas. Sa souplesse a permis les adaptations nécessaires, et son rôle de subvention à l’adoption de technologies a sans doute aussi contribué à sa légitimité.
Classification-JEL: H23; H25; H32; O33; Q48
Keywords: avantage fiscal, environment, environnement, investissement, investment, policy evaluation, tax, tax preference, taxe, évaluation des politiques
Creation-Date: 2013-04-19
Number: 55
Handle: RePEc:oec:envaaa:55-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Geraldine Ang
Author-Workplace-Name: OECD
Author-Name: Virginie Marchal
Author-Workplace-Name: OECD
Title: Mobilising Private Investment in Sustainable Transport: The Case of Land-Based Passenger Transport Infrastructure
Abstract: Transport infrastructure is a pillar of economic development and a key contributor to climate change. Globally, transport-related greenhouse gas emissions are expected to double by 2050 in the absence of new policies. There is an urgent need to scale-up and shift transport infrastructure investments towards lowcarbon, climate-resilient transport options and help achieving the environmental, social and economic benefits associated with sustainable transport infrastructure. Given the extent of investment required to meet escalating global transportation infrastructure needs, and the growing strains on public finances, mobilising private investment at pace and at scale will be necessary to facilitate the transition to a greener growth. Investment barriers, however, often limit private investment in sustainable transport infrastructure projects, due to the relatively less attractive risk-return profile of such projects compared to fossil fuelbased alternatives. In part, this can be attributed to market failures and government policies that fall short of accounting for the full costs of carbon-intensive road transport and the benefits of sustainable transport modes.
Classification-JEL: G18; L92; O18; Q01; Q50; R40
Keywords: climate change, climate finance, development, infrastructure, private investment, transport, transport policies, urban planning
Creation-Date: 2013-05-21
Number: 56
Handle: RePEc:oec:envaaa:56-EN

Template-type: ReDIF-Paper 1.0
Author-Name: David Benatia
Author-Workplace-Name: University of Montreal
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Title: Effectiveness of Policies and Strategies to Increase the Capacity Utilisation of Intermittent Renewable Power Plants
Abstract: Intermittent renewable energy sources, such as wind and solar, will become increasingly important in the electricity supply mix if ambitious renewable energy targets are to be met. This paper presents evidence on the effectiveness of different strategies and measures to increase the capacity utilisation of wind and other intermittent renewable energy plants. As countries progress towards more ambitious renewables penetration objectives, it is essential that the installed capacity does not end up idle and the investment ‘wasted’. The analysis is based on data for 31 OECD countries over the period 1990- 2009. Wind speed, dispatchable power, transmission capacity and energy storage are found to have positive and significant impacts on capacity utilisation. For example, if domestic grids are poorly refurbished European countries will have to invest an additional USD 38 billion worth of investment in wind power generating capacity by 2020 in order to meet the EU renewables objectives. Cross-border electricity trade is also found to have a positive impact on wind power plant capacity utilisation, albeit only at the high end of historic levels of penetration. Up to USD 25 billion worth of investment in wind power capacity by 2020 could be avoided – while still meeting the objectives – if electricity trade within the European Union is enhanced.<BR>Les énergies renouvelables intermittentes telles que l’éolien et le solaire doivent occuper une place de plus en plus importante dans le parc électrique pour que les ambitieux objectifs qui les concernent soient atteints. Ce rapport apporte des éléments d’information sur l’efficacité de diverses stratégies et mesures destinées à améliorer le coefficient d’utilisation des centrales exploitant l’énergie éolienne ou d’autres énergies renouvelables intermittentes. À l’heure où les pays tendent vers des objectifs de pénétration des énergies renouvelables plus ambitieux, il importe que la puissance installée ne soit pas inemployée ni les investissements « gaspillés ». L’analyse s’appuie sur des données de 31 pays de l’OCDE entre 1990 et 2009. Elle montre que la vitesse du vent, la puissance « dispatchable », les capacités de transport et le stockage de l’énergie ont un impact positif substantiel sur le coefficient d’utilisation des centrales éoliennes. Par exemple, s’ils ne rénovent pas suffisamment leurs réseaux nationaux, les pays européens devront investir 38 milliards USD de plus dans ces centrales d’ici 2020 pour atteindre les objectifs de l’Union européenne concernant les énergies renouvelables. Les échanges internationaux d’électricité ont également un effet positif sur le coefficient d’utilisation des centrales éoliennes, même si cet effet n’est sensible qu’au-delà du taux de pénétration maximum atteint jusqu’à présent. Si les échanges d’électricité au sein de l’Union européenne étaient renforcés, il serait possible d’économiser jusqu’à 25 milliards USD d’investissement dans la puissance éolienne installée d’ici 2020 – tout en satisfaisant aux objectifs fixés.
Classification-JEL: Q4; Q42; Q48
Keywords: electricity trade, grid integration, intermittence, intermittency, intégration au réseau, renewable energy, wind power, échanges d’électricité, énergie renouvelable, énergie éolienne
Creation-Date: 2013-05-14
Number: 57
Handle: RePEc:oec:envaaa:57-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Author-Name: Damian Mullaly
Author-Workplace-Name: The Treasury
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Author-Name: Rob Dellink
Author-Workplace-Name: OECD
Title: Addressing Competitiveness and Carbon Leakage Impacts Arising from Multiple Carbon Markets: A Modelling Assessment
Abstract: Competitiveness and carbon leakage issues have been some of the main concerns in the implementation and discussions of climate policies. These concerns are particularly important in the presence of multiple carbon markets since differences in climate change policy approaches may have impacts on the relative competitiveness of domestic sectors in countries with more stringent policies, and on the environmental effectiveness through carbon leakage. This paper examines the macroeconomic and sectoral competitiveness and carbon leakage impacts associated with a range of stylised mitigation policy scenarios. The scenarios reflect different depictions of carbon markets in terms of their level of linkages, their coverage (i.e. number of countries participating, types of gases and sectors) and the stringency of the carbon pricing policy across countries. The paper also investigates some policies to address competitiveness and carbon leakage issues. The analysis considers border carbon adjustments (BCAs) as well as direct and indirect (offset-based) linking of carbon markets. The results show that in presence of multiple carbon markets, competitiveness can decrease in countries that undertake climate policies, also leading to carbon leakage. The negative sectoral competitiveness and leakage effects can be reduced when more countries act, more emission sources are covered, and when the climate mitigation policy is harmonised across countries. The results also show that response policies, such as BCAs and linking of carbon markets, can address some, but not all, of the competitiveness and carbon leakage issues. While BCAs are more effective in addressing domestic competitiveness concerns than linking instruments, the latter are better in preserving the welfare of countries that are not undertaking a climate policy.
Classification-JEL: D58; H25; Q54
Keywords: border tax adjustment, climate change, competitiveness, computable general equilibrium model, mitigation
Creation-Date: 2013-09-11
Number: 58
Handle: RePEc:oec:envaaa:58-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Frank J. Convery
Author-Workplace-Name: University College, Dublin
Author-Name: Louise Dunne
Author-Workplace-Name: University College, Dublin
Author-Name: Deirdre Joyce
Author-Workplace-Name: University College, Dublin
Title: Ireland's Carbon Tax and the Fiscal Crisis: Issues in Fiscal Adjustment, Environmental Effectiveness, Competitiveness, Leakage and Equity Implications
Abstract: Beginning in late 2008, Ireland experienced a fiscal crisis. This resulted in November 2010 in agreement between the Irish government and the European Central Bank, the European Commission and the International Monetary Fund (IMF) – known collectively as ‘the Troika’ – whereby the latter provided substantial financial support, on condition that a number of revenue raising and expenditure reduction targets were met. Also in 2010, a carbon tax at a rate of EUR 15 per tonne of CO2 was introduced, covering most CO2 emissions from the non-traded sectors (mainly transport, heat in buildings and heat and process emissions by small enterprises). This paper describes the features of the tax, recounts the story of its interplay between fiscal adjustment and helping meet the obligations to raise taxes, and implications for competitiveness and carbon leakage, environmental effectiveness and equity issues, and draws some conclusions regarding why it happened, and provides some tentative insights for other countries in a similar situation. The circumstances that resulted in a carbon tax being proposed and subsequently introduced in Ireland include: Leadership by the Green Party; limited public opposition; Government need for the income; supports the Green Economy; support from the academic and wider policy population; exemptions for large emitters (many in EU ETS) and agriculture; effective engagement and good planning...<BR>L’Irlande a connu fin 2008 une crise budgétaire qui a conduit son gouvernement à conclure, en novembre 2010, un accord avec la Banque centrale européenne, la Commission européenne et le Fonds monétaire international (FMI) – collectivement dénommés la « Troïka » – dans lequel ce dernier s’engage à lui apporter une aide financière conséquente, sous réserve qu’elle remplisse un certain nombre d’objectifs en matière de prélèvements fiscaux et de réduction des dépenses. En 2010 a été également mise en place une taxe carbone de 15 EUR par tonne de CO2, couvrant la plupart des émissions de CO2 des secteurs hors SCEQE (transport, chauffage des bâtiments et chauffage et procédés des petites entreprises, principalement). Ce rapport décrit les caractéristiques de cette taxe, relate ses interactions avec le rééquilibrage budgétaire et les obligations de prélèvements fiscaux, examine ses conséquences pour la compétitivité et le transfert d’émissions de carbone, son efficacité environnementale et les questions d’équité, et tire certaines conclusions sur les raisons qui ont poussé l’Irlande à faire ce choix, en proposant plusieurs enseignements qui pourraient se révéler utiles aux pays confrontés à une situation analogue. La taxe carbone a été proposée puis mise en oeuvre en Irlande dans un contexte bien particulier caractérisé par : le rôle moteur du Green Party ; la faible opposition du public ; un État en quête de recettes ; la promotion de l’Économie verte ; le soutien des milieux universitaires et des responsables publics en général ; l’exonération des grands émetteurs (inclus pour beaucoup dans le SCEQE) et de l’agriculture ; un réel engagement et une bonne planification...
Classification-JEL: P48; Q38; Q48; Q58
Keywords: ajustement budgétaire, carbon tax, enseignements pour l’action, fiscal adjustment, policy lessons, taxe carbone
Creation-Date: 2013-10-03
Number: 59
Handle: RePEc:oec:envaaa:59-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Lucy Wilson
Author-Workplace-Name: World Conservation Monitoring Centre
Author-Name: Cristina Secades
Author-Workplace-Name: World Conservation Monitoring Centre
Author-Name: Ulf Narloff
Author-Workplace-Name: World Conservation Monitoring Centre
Author-Name: Nadine Bowles-Newark
Author-Workplace-Name: World Conservation Monitoring Centre
Author-Name: Abisha Mapendembe
Author-Workplace-Name: World Conservation Monitoring Centre
Author-Name: Hollie Booth
Author-Workplace-Name: World Conservation Monitoring Centre
Author-Name: Claire Brown
Author-Workplace-Name: World Conservation Monitoring Centre
Author-Name: Megan Tierney
Author-Workplace-Name: World Conservation Monitoring Centre
Title: The Role of National Ecosystem Assessments in Influencing Policy Making
Abstract: An ecosystem assessment is a social process through which the findings of science concerning the causes of ecosystem change, their consequences for human well-bring, and the management and policy options are evaluated. Ecosystem assessments can play an important role in synthesising and communicating complex information and can both inform and influence decision-making processes. This paper draws insights from experience with National Ecosystem Assessments (NEAs) recently undertaken in the UK, Japan, Spain, and Portugal, as well as other ecosystem assessments undertaken at regional and international geographical scales, and highlights lessons learned so that the impact of NEAs on policy can be enhanced. The paper concludes by identifying key issues needed to develop practical guidance for successful ecosystem assessments.<BR>Une évaluation des écosystèmes est un processus social visant à estimer les résultats de la recherche scientifique sur les causes des changements subis par les écosystèmes, leurs conséquences pour le bien-être humain, ainsi que les lignes d’action ou options de gestion possibles. En synthétisant et en véhiculant des informations complexes, les évaluations des écosystèmes peuvent à la fois éclairer et influencer les processus de décision. Ce document tire parti de l’expérience acquise dans le cadre des évaluations nationales des écosystèmes récemment réalisées au Royaume Uni, au Japon, en Espagne et au Portugal, ainsi que d’autres évaluations des écosystèmes entreprises à l’échelle régionale et internationale, et présente les enseignements qui s’en dégagent de façon à renforcer l’impact des évaluations nationales des écosystèmes sur l’action des pouvoirs publics. En conclusion, le document expose les principaux problèmes à résoudre pour élaborer un guide pratique pour la bonne évaluation des écosystèmes.
Classification-JEL: Q01; Q28; Q57
Keywords: biodiversity conservation, développement durable, ecological economics, ecosystem services, government policy, politiques publiques, préservation de la biodiversité, renewable resources and conservation, ressources renouvelables et leur conservation, services écosystémiques, sustainable development, économie de l’écologie
Creation-Date: 2014-10-07
Number: 60
Handle: RePEc:oec:envaaa:60-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Helena Garcia Romero
Author-Workplace-Name: Fedesarrollo
Author-Name: Laura Calderon Etter
Author-Workplace-Name: Fedesarrollo
Title: The Political Economy of Fuel Subsidies in Colombia
Abstract: Colombia has made progress towards eliminating fuel and diesel subsidies and reducing discretionary spaces allowing for artificially low fuel prices, but challenges remain. Colombia has provided explicit and implicit subsidies to gasoline and diesel since 1983, costing the government up to 1.6% of GDP. This paper discusses the political economy of fuel subsidies in the country to understand why reform has been so slow. It focuses on the groups benefitting from the subsidies and their political participation, as well as other economic impacts that have limited the political will to eliminate them. The Colombian case serves as an example of the difficulty of fully eliminating fuel subsidies once they are already established.<BR>La Colombie a fait des progrès pour éliminer les subventions accordées aux carburants et au gazole et réduire les possibilités de faire baisser artificiellement les prix des carburants, mais certaines difficultés demeurent. La Colombie applique depuis 1983 des subventions explicites et implicites à l’essence et au gazole, représentant jusqu’à 1.6 % de son PIB. On trouvera dans le présent rapport une analyse de l’économie politique des subventions aux carburants qui permettra de mieux comprendre la lenteur de la réforme dans ce pays. Le rapport s’intéresse aux groupes qui bénéficient de ces subventions et à leur participation politique, ainsi qu’aux autres impacts économiques qui ont entamé la volonté politique de les supprimer. L’exemple de la Colombie illustre la difficulté d’éliminer complètement les subventions aux carburants une fois établies.
Classification-JEL: H23; O13; Q48
Keywords: Colombia, Colombie, fossil-fuel subsidies, political economy, économie politique
Creation-Date: 2013-12-10
Number: 61
Handle: RePEc:oec:envaaa:61-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Guillaume Gruère
Author-Workplace-Name: OECD
Title: A Characterisation of Environmental Labelling and Information Schemes
Abstract: This report provides a comprehensive overview of the international landscape of environmental labelling and information schemes (ELIS), defined as policies and initiatives that aim to provide information about one or more aspects of the environmental performance of a product or service to external users. First, a review of initiatives and actors is used to build an institutional map of the diversity of schemes. Second, the universe of ELIS is dissected, based on a list of identified characteristics affecting the modes of communication of such schemes and the nature of the standards on which they are based. Lastly, the growth in ELIS is analysed by these identified characteristics, using a dataset of 544 ELIS introduced between 1970 and 2012 covering 197 countries. Results from this analysis support the rapid in the number of ELIS, especially in the late 1990s and between 2007 and 2010. At the same time, these figures suggest that this growth might have slowed since 2010. The analysis also shows both the diversity and unequal growth of ELIS according to different characteristics. The growth in ELIS appears to be driven by the combination of an increase in the number of “traditional” ELIS, such as single-issue environmental seals, and the emergence of “more recent” types of ELIS, including quantitative reports. This combination highlights the tension between increased competition among similar ELIS, and the emergence of new schemes potentially less exposed to direct competition but facing larger entry challenges. The dataset also shows that the multiplicity of ELIS may not be present for all types of products and environmental areas in all countries. These findings provide a contextual basis to look at evidence on the potential implications of having a multiplicity of schemes, and analyse the current and possible need for policy responses to identified challenges.<BR>Le présent rapport offre une vue d’ensemble sur le paysage des dispositifs d’éco-étiquetage et d’information (DEEI), définis comme étant les politiques et initiatives visant à fournir des informations sur un ou plusieurs aspects des performances environnementales d’un produit ou service à l’intention d’utilisateurs externes. Dans une première partie, on établit une cartographie institutionnelle de la variété des dispositifs, par un examen structurel des initiatives et des acteurs mettant en évidence leurs rôles et leurs interactions. Deuxièmement, on analyse l’univers des DEEI, sur la base d’un ensemble de caractéristiques déterminées concernant les modes de communication de ces dispositifs et la nature des normes sur lesquelles ils reposent. Enfin, on décompose la croissance des DEEI suivant les caractéristiques indiquées, au moyen d’un ensemble de données mondial couvrant 544 DEEI introduits entre 1970 et 2012 et couvrant 197 pays. Les résultats de cette analyse confirment l’augmentation rapide notamment à la fin de la décennie 1990 et entre 2007 et 2010. En même temps, ces chiffres indiquent peut-être une moindre croissance depuis 2010. L’analyse montre aussi à la fois la diversité et la répartition inégale des DEEI en fonction des différentes caractéristiques. Elle souligne en particulier que la croissance du nombre des DEEI semble être due d’une part à celle des grandes catégories de DEEI classiques, telle que les marques environnementales à attribut unique, et d’autre part de l’apparition et l’accélération de l’introduction de nouveaux DEEI, comme les rapports quantitatifs environnementaux. Cette combinaison met en lumière la tension entre la compétition croissante parmi les DEEI similaires, et l'apparition de nouveaux dispositifs moins exposés à la compétition mais qui sont confrontés à des contraintes plus importantes d'entrée sur le marché. Il ressort enfin de l’ensemble de données qu’il n’y a pas toujours une multiplicité de DEEI pour tous les types de produits et de domaines dans tous les pays. Ces résultats proposent un survol contextuel pour examiner les effets de la multiplication des dispositifs sur leur efficacité environnementale et leur impact sur les échanges commerciaux, et analyser de manière plus détaillée les réponses politiques observées et envisagées aux problèmes identifiés.
Classification-JEL: L15; Q56; Q58
Keywords: eco-label, eco-label, empreintes environnementales des produits, environmental reporting, information policy approaches, institutional interactions, interactions institutionnelles, politique d’approches informationnelles, product environmental footprints, rapports environnementaux
Creation-Date: 2013-10-03
Number: 62
Handle: RePEc:oec:envaaa:62-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Kathryn Harrison
Author-Workplace-Name: University of British Columbia
Title: The Political Economy of British Columbia's Carbon Tax
Abstract: In July 2008, the Canadian province of British Columbia (BC) launched North America’s first revenue-neutral carbon tax reform. The tax, which applied to all combustion sources of all fossil fuels, was introduced at a rate of CAD 10 per tonne of CO2, with a schedule for annual increases of CAD 5 per tonne of CO2 until the tax reached CAD 30 per tonne of CO2 in 2012. Tax revenues were fully recycled via a combination of corporate and income tax cuts, phased in over time. This paper reviews the political economy of the BC tax in three distinct periods – its origins, its survival in the face of political backlash, and its longer-term prospects...<BR>En juillet 2008, la province canadienne de Colombie-Britannique a été la première collectivité d’Amérique du Nord à procéder à une réforme fiscale sans incidence sur les recettes impliquant la mise en place d’une taxe carbone. Le montant de cette taxe frappant l’ensemble des sources de combustion et des énergies fossiles a été fixé dans un premier temps à 10 CAD par tonne de CO2, mais il était prévu dès le départ qu’il augmenterait chaque année de 5 CAD pour atteindre 30 CAD par tonne de CO2 en 2012. Le produit de la taxe carbone a été intégralement recyclé sous forme de baisses progressives de l’impôt sur les sociétés et de l’impôt sur le revenu. Le présent document examine l’économie politique de la taxe instaurée par la Colombie-Britannique en distinguant trois phases : les origines de la taxe, son maintien sur fond de réactions politiques négatives et ses perspectives à plus long terme...
Classification-JEL: F18; H23; P48; Q38; Q48; Q5; Q58
Keywords: carbon tax, policy lessons, political economy, taxe carbone, économie politique
Creation-Date: 2013-10-08
Number: 63
Handle: RePEc:oec:envaaa:63-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Author-Name: Bertrand Magné
Author-Workplace-Name: OECD
Author-Name: Laura Cozzi
Author-Workplace-Name: International Energy Agency
Title: Economic Implications of the IEA Efficient World Scenario
Abstract: In its 2012 edition of the World Energy Outlook, the International Energy Agency (IEA) produced an Efficient World Scenario (IEA, 2012) to assess how implementing only economically viable energy efficiency measures would affect energy markets, investment and greenhouse emissions (GHG). The IEA analysis found that in order to halve global primary energy demand over 2010-2035, additional investments of USD 11.8 trillion in more efficient end-use technologies would be necessary. Using the OECD ENV-Linkages macro-economic model, this report simulates the economic and environmental impacts which the IEA Efficient World Scenario implies...<BR>Dans son Edition 2012 du « World Energy Outlook », l’Agence Internationale de l’Énergie a élaborée un Scénario pour un monde plus efficace (IEA, 2012) visant à déterminer comment des mesures d’efficacité énergétiques viable affecteront les marchés de l’énergie, les investissements et les émissions de gaz à effet de serre (GES). L’analyse de l’IEA indique que pour diminuer de moitié la demande d’énergie primaire sur l’horizon 2010-2035, près de 11.8 trillions USD d’investissement supplémentaires dans les technologies plus efficace en énergie sont nécessaires. Utilisant le modèle ENV-Linkages de l’OCDE, ce rapport détaille les conséquences économiques et environnementales du Scénario pour un monde plus efficace.
Classification-JEL: D58; E2; Q43; Q54
Keywords: climate change policy, computable general equilibrium, efficacité énergétique, energy efficiency, macroeconomic, macroéconomique, politique du changement climatique, équilibre général calculable
Creation-Date: 2014-06-11
Number: 64
Handle: RePEc:oec:envaaa:64-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Author-Name: Rob Dellink
Author-Workplace-Name: OECD
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Title: An Overview of the OECD ENV-Linkages Model: Version 3
Abstract: This document provides a detailed technical description of the ENV-Linkages model. The OECD ENV-Linkages Computable General Equilibrium (CGE) model is an economic model that describes how economic activities are inter-linked across several macroeconomic sectors and regions. It links economic activity to environmental pressure, specifically to emissions of greenhouse gases (GHGs). The links between economic activities and emissions are projected for several decades into the future, and thus shed light on the impacts of environmental policies for the medium- and long-term future. In this paper specific attention is given to the equations that form the core of the model. The version of the model presented here is used for analysis carried out for the OECD Environmental Outlook to 2050 (OECD, 2012). An updated version of the model is expected to play a key role in the new CIRCLE project (OECD, 2013).<BR>Ce manuel donne une description détaillée du modèle ENV-Linkages. Le modèle ENV-Linkages de l’OECD est un modèle d’Équilibre Général Calculable (MEGC) qui décrit les relations économiques entre secteurs d’activité, pays et agents économiques. Le modèle associe les émissions de gaz à effet de serre aux différentes activités économiques reproduites. Les liens entre les émissions et les activités économiques sont projetés à un horizon de plusieurs décennies, mettant ainsi en avant les impacts à moyen et long terme des politiques environnementales. L’attention est portée dans ce document sur une description technique des équations sous-jacentes du modèle. La version du modèle présentée est celle utilisée dans les Perspectives de l’environnement à l’horizon 2050 (OECD, 2012). Une version mise à jour du modèle jouera un rôle essentiel dans le nouveau projet CIRCLE (OCDE, 2013).
Classification-JEL: D58; H23; O41; Q54; Q56
Keywords: changement climatique, climate change, general equilibrium models, long-term scenarios, scénarios de long-terme, équilibre général calculable
Creation-Date: 2014-06-11
Number: 65
Handle: RePEc:oec:envaaa:65-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ian Sue Wing
Author-Workplace-Name: Boston University
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Title: Integrated Assessment of Climate Change Impacts: Conceptual Frameworks, Modelling Approaches and Research Needs
Abstract: This paper presents a framework to include feedbacks from climate impacts on the economy in integrated assessment models. The proposed framework uses a production function approach, which links climate impacts to key variables and parameters used in the specification of economic activity. The key endpoints within climate impact categories are linked to the relevant connections for a range of sectors in the economy. The paper pays particular attention to the challenges of distinguishing between damages and the costs of adapting to climate change. The paper also reviews existing studies and available data that can be used to establish linkages between climate impacts and key variables within economic models. There is considerable heterogeneity across the timing and geographic distribution of changes in climatic variables, the consequent changes in key physical and biogeochemical “endpoints” that might occur over time and space, and the magnitude of the resulting damages that these effects are likely to impose on the range of sectors in the economy. The review underlines the uncertainty involved in each of these dimensions and the research needs for the future.<BR>Le présent document expose une méthodologie visant à inclure, de façon systématique, les effets économiques consécutifs aux impacts du changement climatique dans les modèles d'évaluation intégrée. La méthode proposée se fonde sur le concept de la fonction de production, en reliant les différents impacts environnementaux associé au changement climatiques à leurs effets sur les variables et les paramètres clés des modèles utilisées pour décrire les mécanismes et interactions économiques. Il s’agit d’associer les principaux impacts environnementaux aux différentes activités économiques qu’ils sont appelés à impacter. Le document accorde une attention particulière à la difficulté de distinguer les coûts de l'adaptation au changement climatique des dégâts dus à ce changement. Le document passe également en revue les études existantes ainsi que les données disponibles qui peuvent être utilisées pour établir des liens entre les impacts climatiques et les variables clés dans les modèles économiques. Cette revue de littérature souligne les très fortes disparités spatiales et chronologiques des modifications environnementales dues au changement climatique, et par conséquent une forte hétérogénéité que ces impacts physiques et biogéochimiques sont susceptibles de poser à l'ensemble des secteurs de l'économie, tant dans leur amplitude que sur le plan géographique ou temporel. L’analyse souligne l'incertitude liée à chacune de ces dimensions et les besoins de la recherche pour l'avenir.
Classification-JEL: Q50; Q54; Q59
Keywords: adaptation, adaptation, changement climatique, climate change, integrated assessment modelling, modélisation de l’évaluation intégrée
Creation-Date: 2014-06-11
Number: 66
Handle: RePEc:oec:envaaa:66-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Miguel Cárdenas Rodríguez
Author-Workplace-Name: OECD
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Author-Name: Jérôme Silva
Author-Workplace-Name: OECD
Author-Name: Antoine Ferey
Author-Workplace-Name: ENSAE-ParisTech
Title: Inducing Private Finance for Renewable Energy Projects: Evidence from Micro-Data
Abstract: This paper analyses the effects of government policies on flows of private finance for investment in renewable energy (inducement effect). It also examines whether direct provision of public finance for a project increases the volume of private finance raised (“crowding in” effect). A unique dataset of financial transactions for renewable energy projects with worldwide coverage is constructed using the Bloomberg New Energy Finance database. The analysis covers 87 countries, six renewable energy sectors (wind, solar, biomass, small hydropower, marine and geothermal) and the 2000-2011 time-span. Main findings are that, in contrast to quota-based schemes, price-based support schemes are positively correlated with investors’ ability to raise private finance. The paper suggests that, rather than the type of instrument (price vs. quota), it is the specific design of such schemes that is key to providing a predictable signal and an effective incentive to attract private investors. It is also found that public finance supports precisely those projects that have had difficulty raising private finance (co-financed projects), where neither quota-based measures nor price-based support schemes have a significant effect on private finance flows. This raises the concern that in the absence of well-designed policies which incentivise private finance investment, governments wishing to secure project completion have no other choice than to support projects directly through the use of public finance.<BR>Ce document porte sur l’analyse des effets des politiques publiques sur les flux financiers privés affectés à l'investissement dans les énergies renouvelables (effet d'induction). Il examine également si l’apport direct de fonds publics à un projet renforce la probabilité d'obtention de financements privés (effet d'attraction). Cette analyse est fondée sur une base de données sans équivalent sur les financements d'actifs (c'est-à-dire sur les opérations d'investissement réalisées dans des projets d'énergie renouvelable) construite à partir de la base de données Bloomberg sur le financement des énergies nouvelles (BNEF, Bloomberg New Energy Finance), couvrant tous les pays. Les principaux résultats indiquent que contrairement aux systèmes fondés sur des quotas, les dispositifs de soutien fondés sur les prix sont corrélés positivement avec la capacité des investisseurs à obtenir des financements privés. Notre analyse suggère que, davantage que le type de dispositif utilisé (instrument fondé sur les prix ou système de quotas), c'est la conception spécifique de ces dispositifs qui est déterminante pour donner des signaux prévisibles et des incitations efficaces attirant les investisseurs privés. L’analyse conclue également que les financements publics sont précisément affectés aux projets qui ont eu des difficultés à attirer des fonds privés (projets cofinancés), très probablement parce qu'ils ne sont pas économiquement viables en l'absence d'un tel soutien. Cela laisse à penser qu'en l'absence de politiques publiques judicieusement conçues, permettant d'attirer des investissements financiers privés, les gouvernements souhaitant garantir l'achèvement d'un projet n'aient pas d'autre choix que de soutenir directement ledit projet à travers des financements publics.
Classification-JEL: G3; H23; L94; O3; Q42; Q48; Q54; Q55; Q58
Keywords: choix des instruments d'action, finance, financement d'actifs, innovation induite, investissement, investment, policy instrument choice, renewable energy, technology deployment, énergie renouvelable
Creation-Date: 2014-10-16
Number: 67
Handle: RePEc:oec:envaaa:67-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Zachary S. Brown
Author-Workplace-Name: North Carolina State University
Title: Greening Household Behaviour: Cross-domain Comparisons in Environmental Attitudes and Behaviours Using Spatial Effects
Abstract: Discussions of the importance of public attitudes in shaping policy often lack clear evidence on causal relations between stated attitudes and observed behaviours. The 2011 OECD Survey of over 12,000 households allows analysing households’ environmental attitudes and behaviours in five different domains (electricity, food, transport, waste and water). Using econometric analysis, we investigate the relationship between stated environmental attitudes and indicators of civic engagement, such as voting in local elections, charity membership and membership in environmental organisations...<BR>La réflexion sur le rôle des attitudes du public dans l’élaboration des politiques manque souvent d’éléments probants au sujet du lien de causalité existant entre les attitudes déclarées et les comportements observés. L’enquête réalisée par l’OCDE en 2011 auprès de plus de 12 000 ménages permet d’analyser leurs attitudes et comportements environnementaux dans cinq domaines distincts (électricité, alimentation, transports, déchets et eau). Sur la base d’une analyse économétrique, on étudie ce qui lie les attitudes environnementales déclarées à différentes formes d’engagement civique, telles que voter aux élections locales, s’impliquer au sein d’une oeuvre caritative et être membre d’une association de défense de l’environnement.
Classification-JEL: C51; D10; D11; D12; D64; D71; H89; Q50; Q58
Keywords: attitudes envers l'environnement, behavioural economics, civic engagement, engagement civique, enquête auprès des ménages, environmental attitudes, GIS, household survey, SIG, économie comportementale
Creation-Date: 2014-12-10
Number: 68
Handle: RePEc:oec:envaaa:68-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Randy Caruso
Author-Workplace-Name: OECD
Author-Name: Raphaël Jachnik
Author-Workplace-Name: OECD
Title: Exploring Potential Data Sources for Estimating Private Climate Finance
Abstract: The paper reviews a number of commercial and public data sources to examine their potential for increasing coverage and understanding of the volume and characteristics of private climate finance beyond renewable energy projects. Such information is needed to assess progress towards the global transition to low-carbon, climate-resilient economies, as well towards the fulfilment of international commitments by developed countries under the United Nations Framework Convention on Climate Change. The data sources investigated in this analysis are evaluated across four areas relating to their: (i) use of sectoral classification systems; (ii) coverage of private finance transactions and instruments; (iii) definitions and methods for categorising finance as private and identifying its geographic origin; and (iv) data access restrictions and methodological transparency. To provide a frame of reference, the paper distils corresponding definitions and methodologies used by key known data sources for tracking climatespecific finance as well as investments and finance more broadly...
Classification-JEL: C81; F21; F53; G39; O16; O19; Q56
Creation-Date: 2014-07-08
Number: 69
Handle: RePEc:oec:envaaa:69-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Rana Roy
Title: Environmental and Related Social Costs of the Tax Treatment of Company Cars and Commuting Expenses
Abstract: This paper builds upon a recent OECD paper on the personal tax treatment of company cars and commuting expenses in OECD member-countries and aims to arrive at a better understanding of the environmental and related social costs of the tax treatment described therein. The paper begins with an analysis of the larger transport market, which is the primary storehouse of evidence on the nature and extent of the environmental impacts of the various transport modes, the relative importance of the proximate and underlying determinants of these impacts, and the elasticities and functional relationships at work. Non-linearities in the relevant elasticities and functional relationships mean that the tax treatment of company cars may have a greater or lesser impact than is suggested by the size of the company car market. And distortions in relative prices between competing modes in the larger transport market mean that subsidies can have very different impacts depending on the mode in question. The further analysis of the interaction of the current tax treatment of company cars and commuting expenses with the transport market yields several findings. The current under-taxation of company cars is likely to result in a disproportionately large increase in total distance driven, composed of both an increase in the number of cars in use and an increase in distance driven per car. In turn, this is likely to result in disproportionately large impacts on most relevant environmental and related social costs. And a favourable tax treatment of commuting expenses generally, and of employer-paid parking in particular, is likely to impact on the choice of transport mode in favour of the car relative to public transport and non-motorised modes. In turn, this is likely to impact on most relevant environmental and related social costs. An Annex to this paper provides, for the OECD group of countries as a whole, some indicative estimates of the main relevant impacts of the under-taxation of company cars as well as an indicative estimate of its overall social cost. The largest quantified cost elements are additional congestion costs; additional local air pollution costs; and additional traffic accident costs. The overall social cost attributable to the current under-taxation of company cars is estimated at circa EUR 116 billion per year.<BR>Ce document fait fond sur une récente étude de l’OCDE sur le traitement des voitures de société et des frais de déplacement domicile-travail dans le cadre de l’impôt sur le revenu des personnes physiques dans les pays membres de l’OCDE. Il vise à mieux cerner les coûts environnementaux et les coûts sociaux connexes de ce traitement. Le document s’ouvre sur une analyse du marché des transports en général, qui offre le principal gisement d’informations sur la nature et l’ampleur des incidences environnementales des différents modes de transport, sur l’importance relative des déterminants immédiats et sous-jacents de ces incidences, ainsi que sur les élasticités et les relations fonctionnelles qui entrent en jeu. Si ces élasticités et relations ne sont pas linéaires, l’impact du traitement fiscal des voitures de société peut être plus fort ou plus faible que ne le laisse penser la taille du marché de ces voitures. En outre, en présence de distorsions affectant les prix relatifs des modes concurrents sur le marché des transports en général, les subventions peuvent avoir des répercussions très différentes selon le mode considéré. Une analyse plus poussée de l’interaction du traitement fiscal actuel des voitures de société et des frais de déplacement domicile-travail avec le marché des transports permet de faire plusieurs constatations. La situation actuelle de sous-imposition de ces voitures est de nature à déboucher sur une hausse disproportionnée de la distance totale qu’elles parcourent, sous l’effet aussi bien de la multiplication des voitures de société en circulation que de l’augmentation de la distance parcourue par chacune. Cette évolution risque elle-même de se répercuter de façon disproportionnée sur la plupart des coûts environnementaux et coûts sociaux connexes. Par ailleurs, un traitement fiscal favorable des frais de déplacement domicile-travail en général, et de la mise à disposition d’une place de stationnement gratuite par l’employeur en particulier, est susceptible de faire pencher le choix du mode de transport en faveur de la voiture plutôt que vers les transports publics et les modes non motorisés, avec là encore des répercussions sur la plupart des coûts environnementaux et coûts sociaux connexes. L’annexe du document présente, pour les pays de l’OCDE pris dans leur ensemble, des estimations indicatives des plus importantes incidences de la sous-imposition des voitures de société, ainsi que des estimations indicatives de son coût social global. Les principaux éléments quantifiés sont les coûts du surcroît de congestion, du surcroît de pollution atmosphérique locale et du surcroît d’accidents de la circulation. Le coût social global attribuable à la sous-imposition des voitures de société est estimé à environ 116 milliards EUR par an.
Classification-JEL: H20; H30; Q51; R41
Keywords: avantage fiscal, company cars, comportement induit par la fiscalité, coûts environnementaux, environmental effects, tax benefit, tax induced behaviour, vehicles, voitures de société
Creation-Date: 2014-09-30
Number: 70
Handle: RePEc:oec:envaaa:70-EN

Template-type: ReDIF-Paper 1.0
Author-Name: James Greene
Author-Workplace-Name: OECD
Author-Name: Nils Axel Braathen
Author-Workplace-Name: OECD
Title: Tax Preferences for Environmental Goals: Use, Limitations and Preferred Practices
Abstract: This paper reviews the use of tax preferences to achieve environmental policy objectives. Tax preferences involve using the tax system to adjust relative prices with a view to influencing producer or consumer behaviour in favour of goods or services that are considered to be environmentally beneficial. They take various forms, typically a partial or total exemption from a specified tax. Because tax preferences help to avoid or reduce costs for businesses or consumers, there are often pressures on governments to favour them over other instruments. As a result, they are sometimes used inappropriately, typically to address negative externalities for which they are not well suited. The paper suggests that the comparative advantage of tax preferences is in providing support for positive externalities, that is situations in which a subsidy would help to deliver more social benefits than would otherwise be the case. When designing tax preferences, care must be taken to ensure that they do not encourage technological lock-in, provide perverse incentives for environmentally harmful activities (the rebound effect), or reward producers or consumers for actions they would have taken anyway. Since tax preferences are a form of subsidy, they should be subject to the same degree of scrutiny and oversight as other forms of public expenditure.<BR>Ce document examine la question du recours aux avantages fiscaux pour atteindre les objectifs de la politique de l’environnement. Les avantages fiscaux consistent à utiliser le système fiscal pour ajuster les prix relatifs afin d’influencer le comportement des producteurs ou des consommateurs en faveur de biens ou de services considérés comme bénéfiques pour l’environnement. Ils prennent diverses formes, le plus souvent une exemption totale ou partielle d’une taxe particulière. Étant donné que les avantages fiscaux contribuent à éviter ou réduire les coûts pour les entreprises ou les consommateurs, des pressions sont souvent exercées sur les pouvoirs publics pour qu’ils les préfèrent à d’autres instruments. Aussi sont-ils parfois utilisés à mauvais escient, généralement pour traiter des externalités négatives pour lesquelles ils sont mal adaptés. Ce document tend à montrer que l’avantage comparatif de ces instruments réside dans le soutien qu’ils apportent aux externalités positives, à savoir les situations dans lesquelles une subvention aiderait à procurer plus d’avantages pour la collectivité que ce ne serait le cas autrement. Pour concevoir des avantages fiscaux, il faut veiller à ce qu’ils n’encouragent pas le verrouillage technologique, ne créent pas d’incitations perverses en faveur d’activités dommageables pour l’environnement (effet rebond), ou ne récompensent pas les producteurs ou les consommateurs pour des actions qu’ils auraient entreprises de toute façon. Étant donné que les avantages fiscaux sont une forme de subvention, il convient de les surveiller d’aussi près que les autres formes de dépenses publiques.
Classification-JEL: H20; H23; H25; H30; Q58
Keywords: avantages fiscaux motivés par des considérations environnementales, comportement influencé par l’impôt, effets environnementaux, environmental effects, environmentally motivated tax preferences, tax induced behaviour
Creation-Date: 2014-10-07
Number: 71
Handle: RePEc:oec:envaaa:71-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ian Cochran
Author-Workplace-Name: CDC Climat Research
Author-Name: Romain Hubert
Author-Workplace-Name: CDC Climat Research
Author-Name: Virginie Marchal
Author-Workplace-Name: OECD
Author-Name: Robert Youngman
Author-Workplace-Name: OECD
Title: Public Financial Institutions and the Low-carbon Transition: Five Case Studies on Low-Carbon Infrastructure and Project Investment
Abstract: Public financial institutions (PFIs) are well-positioned to act as a key leverage point for governments’ efforts to mobilise private investment in low-carbon projects and infrastructure. The study identifies the tools, instruments and approaches used by five PFIs to directly support and scale-up domestic private sector investment in sustainable transport, energy-efficiency and renewable energy in OECD countries. Between 2010-2012, these five institutions – Group Caisse des Dépôts in France, KfW Bankengruppe in Germany, the UK Green Investment Bank, the European Investment Bank, and the European Bank for Reconstruction and Development – have provided over 100 billion euros of equity investment and financing for energy efficiency, renewable energy and sustainable transport projects. They use both traditional and innovative approaches to link low-carbon projects with finance through enhancing access to capital; facilitating risk reduction and sharing; improving the capacity of market actors; and shaping broader market practices and conditions.<BR>Les institutions financières publiques (IFP) sont particulièrement bien placées pour compléter les efforts des pouvoirs publics visant à mobiliser les investissements privés dans des projets et des infrastructures sobres en carbone. Cette étude identifie les outils, instruments et méthodes dont se servent cinq IFP pour financer et / ou accroître les investissements du secteur privé au niveau national dans les transports durables, l’efficacité énergétique et l’énergie renouvelable dans des pays membres de l’OCDE. De 2010 à 2012, ces cinq institutions – le Groupe Caisse des Dépôts en France, la KfW Bankengruppe en Allemagne, l’UK Green Investment Bank, la Banque européenne d’investissement, et la Banque européenne pour la reconstruction et le développement – ont apporté un total de plus de 100 milliards EUR d’investissements en fonds propres et de financement en faveur de projets d’efficacité énergétique, d’énergies renouvelables et de transports durables. Elles font appel à des méthodes à la fois traditionnelles et nouvelles pour lier des projets aux moyens de financement, en améliorant l’accès aux capitaux ; en facilitant la réduction et le partage des risques ; en renforçant les capacités des acteurs de marché et, dans un cadre plus large, en mettant en place des pratiques et des conditions de marché.
Classification-JEL: G11; G18; G23; G28; O44; Q01; Q54
Keywords: bas carbone, changement climatique, climate change, climate finance, efficacité énergétique, energy efficiency, finance climat, infrastructure, infrastructure, institutions financières publiques, investissement, investment, low-carbon, public financial institutions, renewable energy, énergie renouvelable
Creation-Date: 2014-11-06
Number: 72
Handle: RePEc:oec:envaaa:72-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Céline Nauges
Author-Workplace-Name: University of Queensland
Title: Greening Household Behaviour and Water
Abstract: This report focuses on households’ behaviour in relation to water use. It presents the results of follow-up analysis of the 2011 OECD Survey on Environmental Policy and Individual Behaviour Change (EPIC) where econometric techniques are applied. This report complements the overview of the survey data provided in the publication OECD (2014). The analysis shows that households whose bill depends on actual water use are unambiguously more likely to exhibit pro-environmental behaviours in terms of water use, including undertaking water-saving behaviours, purchasing water-efficient devices, and taking water efficiency into account when purchasing such equipment. The results also confirm that the effect of social norms, attitudes, and opinions about the environment in general do matter in explaining households’ behaviour and investment decisions. The main policy recommendations that can be derived from this study are: to charge households for water based on their actual water use and to pursue individuals’ sensitisation to environmental issues by promoting water-conservation behaviours through campaigns and advertising, primarily targeting male and young adults.<BR>Ce rapport est consacré au comportement des ménages en matière de consommation d’eau. Il présente les résultats de travaux d’analyse qui s’inscrivent dans le prolongement de l’enquête sur la politique de l’environnement et le comportement individuel (EPIC) réalisée par l’OCDE en 2011, et qui ont donné lieu à l’application de techniques économétriques. Ce rapport complète la synthèse des données de l’enquête présentée dans l’ouvrage OCDE (2014). L’analyse des résultats de l’enquête montre que les ménages dont les factures dépendent de leur consommation réelle ont nettement plus de chances de faire preuve d’un comportement soucieux de l’environnement, en décidant de faire des économies, en investissant dans des appareils à faible consommation d’eau et en prenant en compte la consommation d’eau lors de l’achat d’appareils. Les résultats confirment également que les normes sociales, les attitudes et les opinions relatives à l’environnement en général ont leur importance dans l’explication du comportement des ménages et de leurs décisions d’investissement. Les principales recommandations d’action que l’on peut tirer de l’étude sont les suivantes : faire payer aux ménages leur consommation réelle et continuer de sensibiliser les individus aux questions d’environnement en encourageant les comportements économes en eau par des campagnes publicitaires et autres, ciblant surtout les hommes et les jeunes adultes.
Classification-JEL: C51; D11; D12; Q25; Q58
Keywords: attitudes envers l'environnement, comportement d'économie d'eau, eau du robinet, enquête auprès des ménages, environmental attitudes, household survey, investissement dans des dispositifs économes en eau, investment in water-efficient devices, labelling, qualité de l'eau, tap water, water quality, water-saving behaviour, étiquetage
Creation-Date: 2014-12-10
Number: 73
Handle: RePEc:oec:envaaa:73-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ayesha Dinshaw
Author-Workplace-Name: World Resources Institute
Author-Name: Susannah Fisher
Author-Workplace-Name: International Institute for Environment and Development
Author-Name: Heather McGray
Author-Workplace-Name: World Resources Institute
Author-Name: Neha Rai
Author-Workplace-Name: International Institute for Environment and Development
Author-Name: Johan Schaar
Author-Workplace-Name: World Resources Institute
Title: Monitoring and Evaluation of Climate Change Adaptation: Methodological Approaches
Abstract: This paper explores methodological approaches that can be used to monitor and evaluate climate change adaptation initiatives at the projects and programme levels. It examines approaches that have been used in other areas of development practice to see what lessons have been learned that can inform the development of monitoring and evaluation frameworks targeted at adaptation. The paper focuses on three methodological challenges related to monitoring and evaluation that are particularly relevant for adaptation: i) assessing attribution, ii) establishing baselines and targets, and iii) dealing with long time horizons. The paper also considers the importance of on-going learning in evaluation and the benefit of applying a comprehensive approach to monitoring and evaluation, building on tested practices from participatory methods and social sciences techniques.<BR>Ce rapport analyse les approches méthodologiques utilisables pour suivre et évaluer les initiatives d’adaptation au changement climatique mises en oeuvre au niveau des projets ou des programmes. Il examine les approches adoptées dans d’autres domaines d’action en faveur du développement afin de cerner, parmi les enseignements qui en ont été tirés, ceux qui pourraient éclairer l’élaboration de cadres de suivi et d’évaluation visant l’adaptation. Le rapport met l’accent sur trois enjeux méthodologiques du suivi et de l’évaluation qui s’avèrent particulièrement intéressants du point de vue de l’adaptation : i) évaluer l’attribution, ii) établir des niveaux de référence et des objectifs, et iii) travailler avec des horizons temporels lointains. Il aborde également l’importance que revêt l’apprentissage continu dans l’évaluation, ainsi que l’avantage que présente une approche globale du suivi et de l’évaluation, fondée sur des pratiques éprouvées qui relèvent de méthodes participatives et de techniques des sciences sociales.
Classification-JEL: H43; O22; Q54
Keywords: adaptation au changement climatique, apprentissage, climate change adaptation, learning, monitoring and evaluation, suivi et évaluation
Creation-Date: 2014-12-02
Number: 74
Handle: RePEc:oec:envaaa:74-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Katrin Millock
Author-Workplace-Name: Centre national de la recherche scientifique
Title: Greening Household Behaviour and Food
Abstract: This report focuses on households’ behaviour in relation to food consumption. It presents the results of follow-up econometric analysis of the 2011 OECD Survey on Environmental Policy and Individual Behaviour Change (EPIC). This report complements the overview of the survey data provided in the publication OECD (2014). It studies expenditure and willingness-to-pay (WTP) for organic food and food labelled as taking animal welfare into account...<BR>Ce rapport est consacré au comportement des ménages en matière d’alimentation. Il présente les résultats de travaux d’analyse économétrique qui s’inscrivent dans le prolongement de l’enquête sur la politique de l’environnement et le comportement individuel (EPIC) réalisée par l’OCDE en 2011. Ce rapport complète la synthèse des données de l’enquête présentée dans l’ouvrage OCDE (2014). Il est centré sur l’étude des dépenses réalisées et du consentement à payer (CAP) pour acquérir des aliments biologiques ou étiquetés comme respectant le bien-être des animaux.
Classification-JEL: C51; D11; D12; Q18; Q58
Keywords: animal welfare, attitudes, attitudes, behaviour, bien-être animal, comportement, consentement à payer (CAP), enquête auprès des ménages, fruits et légumes biologiques, household survey, labelling, organic fruits and vegetables, willingness-to-pay, étiquetage
Creation-Date: 2014-12-10
Number: 75
Handle: RePEc:oec:envaaa:75-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ruslana Rachel Palatnik
Author-Workplace-Name: University of Haifa
Author-Name: Sharon Brody
Author-Workplace-Name: University of Haifa
Author-Name: Ofira Ayalon
Author-Workplace-Name: University of Haifa
Author-Name: Mordechai Shechter
Author-Workplace-Name: University of Haifa
Title: Greening Household Behaviour and Waste
Abstract: This report focusses on the determinants of household waste generation, the separation of recyclables and waste prevention behaviours. It presents the econometric results of follow-up analysis of the 2011 OECD Survey on Environmental Policy and Individual Behaviour Change (EPIC). This report complements the overview of the survey data provided in the publication « Greening Household Behaviour: Overview from the 2011 Survey - Revised edition » (2014)...<BR>Ce rapport est consacré aux déterminants de la production de déchets ménagers, du tri des déchets recyclables et des comportements de prévention de la production de déchets. Il présente les résultats de travaux d’analyse économétrique qui s’inscrivent dans le prolongement de l’enquête sur la politique de l’environnement et le comportement individuel (EPIC) réalisée par l’OCDE en 2011. Ce rapport complète la synthèse des données de l’enquête présentée dans l’ouvrage « Vers des comportements plus environnementaux : Vue d'ensemble de l'enquête 2011 » (2014).
Classification-JEL: C51; D11; D12; H23; Q53; Q58
Keywords: enquête auprès des ménages, household survey, pay-as-you-throw pricing, production de déchets, prévention de la production de déchets, recyclage, recycling, redevances unitaires incitatives (PAYT), waste generation, waste prevention
Creation-Date: 2014-12-10
Number: 76
Handle: RePEc:oec:envaaa:76-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ilka Ehreke
Author-Workplace-Name: Institute for Transport Planning and Systems (IVT)
Author-Name: Boris Jaeggi
Author-Workplace-Name: Institute for Transport Planning and Systems (IVT)
Author-Name: Kay W. Axhausen
Author-Workplace-Name: Institute for Transport Planning and Systems (IVT)
Title: Greening Household Behaviour and Transport
Abstract: This report focuses on personal transport choices. It presents the results of follow-up analysis of the 2011 OECD Survey on Environmental Policy and Individual Behaviour Change (EPIC) survey where econometric techniques are applied. The report complements the overview of the survey data provided in the publication OECD (2014). The objective of the analysis is to understand the determinants of household choices in the following areas: the use of alternative modes of transportation car ownership, willingness-to-pay for an electric vehicles and the relative importance of environmental factors when buying a car. The results indicate that the choice of non-motorized modes of transportation is strongly correlated with the proximity of the destination and that attitudinal variables play only a minor role. The same is true for the use of public transport. Households that say that they trust information about environmental impact of products, are better educated about impact of private transport and are in favour of government actions to reduce CO2, tend to have a higher willingness to pay for electric vehicles.<BR>Ce rapport porte sur le choix du mode de transport personnel. Il présente les résultats de travaux d’analyse qui s’inscrivent dans le prolongement de l’enquête sur la politique de l’environnement et le comportement individuel (EPIC) réalisée par l’OCDE en 2011, et qui ont donné lieu à l’application de techniques économétriques. Ce rapport complète la synthèse des données de l’enquête présentée dans l’ouvrage OCDE (2014). L’analyse vise à cerner les déterminants des choix effectués par les ménages concernant les aspects suivants : utilisation de moyens de déplacement alternatifs, motorisation, consentement à payer pour acquérir un véhicule électrique et importance relative des facteurs environnementaux lors de l’achat d’une voiture. Il en ressort que le recours à des modes de transport non motorisés est étroitement lié à la proximité de la destination et que les variables comportementales ne jouent qu’un rôle mineur. Il en va de même en ce qui concerne l’utilisation des transports publics. On relève généralement un consentement à payer pour acquérir un véhicule électrique supérieur chez les ménages qui déclarent faire confiance aux informations ayant trait à l’impact environnemental des produits, qui sont mieux sensibilisés aux répercussions du transport privé et qui sont favorables aux mesures prises par les pouvoirs publics afin de réduire les émissions de CO2.
Classification-JEL: C51; D11; D12; R41; R48
Creation-Date: 2014-12-11
Number: 77
Handle: RePEc:oec:envaaa:77-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Bengt Kriström
Author-Workplace-Name: Umea-SLU University
Author-Name: Chandra Kiran
Author-Workplace-Name: Umea-SLU University
Title: Greening Household Behaviour and Energy
Abstract: This report focuses on demand for renewable energy and energy efficiency. It presents the results of follow-up of econometric analysis of the 2011 OECD Survey on Environmental Policy and Individual Behaviour Change (EPIC). The report complements the overview of the survey data provided in the 2014 OECD publication “Greening Household Behaviour: Overview from the 2011 Survey”...<BR>Ce rapport porte sur la demande d’énergie renouvelable et d’efficacité énergétique. Il présente les résultats de travaux d’analyse économétrique qui s’inscrivent dans le prolongement de l’enquête sur la politique de l’environnement et le comportement individuel (EPIC) réalisée par l’OCDE en 2011. Ce rapport complète la synthèse des données de l’enquête présentée dans l’ouvrage « Vers des comportements plus environnementaux: vue d'ensemble de l'enquête 2011 », OCDE (2014).
Creation-Date: 2014-12-16
Number: 78
Handle: RePEc:oec:envaaa:78-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ysé Serret
Author-Workplace-Name: OECD
Author-Name: Zachary S. Brown
Author-Workplace-Name: North Carolina State University
Title: Greening Household Behaviour: Overview of Results from Econometric Analysis and Policy Implications
Abstract: The second round of the OECD Survey on Environmental Policy for Individual Behaviour Change (EPIC) was implemented in 2011. A publication providing an overview of the survey data from over 12 000 households in eleven countries (Australia, Canada, Chile, France, Israel, Japan, Korea, the Netherlands, Spain, Sweden and Switzerland) is available.1 Follow-up econometric analyses were conducted in each of the thematic areas covered (energy, food, transport, waste and water), as well as on cross-domain comparisons in environmental attitudes and behaviours.2 This report presents a synthesis of main results from econometric analysis using the data from the 2011 EPIC survey, as well as policy implications.<BR>La deuxième édition de l'enquête de l'OCDE sur la politique de l'environnement et le comportement individuel (EPIC) a été réalisée en 2011. Une publication offrant une première vue d’ensemble des données recueillies auprès de plus de 12 000 ménages dans onze pays (Australie, Canada, Chili, Corée, Espagne, France, Israël, Japon, Pays-Bas, Suède et Suisse) est disponible.3 Des analyses économétriques complémentaires ont ensuite été effectuées dans chacun des domaines thématiques considérés (énergie, alimentation, transports, déchets et eau). Les attitudes et les comportements vis-à-vis de l’environnement ont par ailleurs fait l’objet de comparaisons transversales.4 Ce rapport présente une synthèse des principaux résultats des analyses économétriques réalisées à partir des données de l'enquête de 2011 ainsi que les implications pour les politiques publiques.
Creation-Date: 2014-12-12
Number: 79
Handle: RePEc:oec:envaaa:79-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Miguel Cárdenas Rodríguez
Author-Workplace-Name: OECD
Author-Name: Raphaël Jachnik
Author-Workplace-Name: OECD
Author-Name: Jérôme Silva
Author-Workplace-Name: OECD
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Title: Public Interventions and Private Climate Finance Flows: Empirical Evidence from Renewable Energy Financing
Abstract: This study uses a unique dataset of investment flows to analyse the role of two categories of public interventions (finance and policies) in mobilising flows of private climate finance worldwide and in the more specific context of flows to and in developing countries. The objectives are threefold. First, the paper presents ‘observed’ ratios of total private to public finance in selected climate-related sectors. Second, it seeks to understand the determinants of private climate finance flows by analysing the role of key public finance (bilateral, domestic and multilateral) and public policy instruments (feed-in tariffs, renewable energy quotas, the Clean Development Mechanism), while taking into account a number of market and country conditions. For reasons of data availability, the focus of this econometric analysis is on a subset of six renewable energy sectors (wind, solar, biomass, small hydro, marine and geothermal). Finally, the paper assesses the likely mobilisation impact of past public interventions in these six sectors, and draws a comparison with approaches that ignore the role of policy as well as country and market conditions. Results suggest that both public finance and public policies have played an important role in private finance mobilisation globally. In the context of finance to and in developing countries, the results highlight the currently untapped potential of domestic public policies to increase mobilisation. The methodology proposed in this report is an initial attempt to estimate private climate finance mobilisation empirically. It should be seen as a first step towards developing more comprehensive methodologies for analysing and estimating private finance mobilisation in the global climate policy context.
Classification-JEL: G3; H23; L94; O3; Q42; Q48; Q54; Q55; Q58
Keywords: climate change, estimation, investment, leverage, mobilisation, private finance, public interventions, renewable energy
Creation-Date: 2015-02-03
Number: 80
Handle: RePEc:oec:envaaa:80-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Julie Poirier
Author-Workplace-Name: ENSAE-ParisTech
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Jérôme Silva
Author-Workplace-Name: OECD
Title: The Benefits of International Co-authorship in Scientific Papers: The Case of Wind Energy Technologies
Abstract: This paper presents an analysis of the effect of international co-authorship of scientific publications on patenting in wind energy technologies. It is found that the number of scientific publications co-authored by researchers in OECD countries has a positive and very significant impact on the number of wind energy innovations patented in OECD countries. However, non-OECD countries produce a greater number of patent filings when their researchers collaborate with OECD countries. This suggests that there exist knowledge spillovers between OECD and non-OECD countries that particularly benefit non-OECD countries. This empirical finding is important because it strengthens the case for international research cooperation between OECD and non-OECD countries in the area of climate mitigation.<BR>On trouvera dans le présent document une analyse de l’incidence que le co-autorat international de publications scientifiques a sur le brevetage des technologies éoliennes. Il apparaît que le nombre de publications scientifiques rédigées conjointement par des chercheurs de la région OCDE a un impact positif et très significatif sur le nombre des innovations brevetées par les pays membres dans le domaine de l’énergie éolienne. Toutefois, on observe également que les pays non membres sont à l’origine d’un plus grand nombre de demandes de brevets lorsque les chercheurs de ces pays collaborent avec des homologues de pays de l’OCDE. Cela laisse penser qu’un transfert indirect de connaissances s’opère entre les pays membres et non membres de l’OCDE, principalement pour le bénéfice de ces derniers. Cette constatation empirique est importante car elle apporte un argument supplémentaire en faveur de la coopération entre chercheurs des pays membres et non membres de l’OCDE dans le domaine de l’atténuation du changement climatique.
Classification-JEL: O3; O31; O38; Q4; Q42; Q48; Q55
Keywords: atténuation du changement climatique, climate change mitigation, collaboration scientifique, diffusion des connaissances., innovation, innovation, knowledge spillovers, scientific collaboration
Creation-Date: 2015-02-10
Number: 81
Handle: RePEc:oec:envaaa:81-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Antoine Dechezleprêtre
Author-Workplace-Name: London School of Economics
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Title: Invention and International Diffusion of Water Conservation and Availability Technologies: Evidence from Patent Data
Abstract: This paper identifies over 50 000 patents filed worldwide in various water-related adaptation technologies between 1990 and 2010, distinguishing between those related to water availability (supply) and water conservation (demand) technologies. The paper then analyses the innovation activity – including inventive activity by country and technology, international collaboration in technology development, and international diffusion of such water-related technologies. The results suggest that although innovation activity in water-related technologies has been increasing over the last two decades, this growth has been disproportionately concentrated on supply-side technologies. Moreover, most innovation worldwide occurs in countries with low or moderate vulnerability towards water scarcity. While this is a reflection of the fact that most developed economies do not face severe water stress, this result highlights the importance of international technology transfer and policies that facilitate broad diffusion of these technologies in water-stressed countries.<BR>Ce document identifie plus de 50 000 brevets déposés dans le monde entier entre 1990 et 2010 sur diverses technologies d’adaptation dans le domaine de l’eau, en distinguant entre les technologies concernant l’accès à l’eau (offre) et celles qui se rapportent à la conservation de l’eau (demande). Il analyse ensuite les activités d’innovation – en particulier les activités d’invention par pays et technologies, la collaboration internationale dans le développement des technologies et la diffusion internationale des technologies dans le domaine de l’eau. Bien que l’activité d’innovation dans le domaine des technologies hydriques ait augmenté pendant les deux dernières décennies, cette augmentation a porté de façon disproportionnée sur les technologies du côté de l’offre. Dans la majorité l’innovation a lieu dans des pays peu ou modérément vulnérables au risque de pénurie des ressources en eau. Cette situation, qui reflète certainement le fait que la plupart des pays les plus développés ne sont pas confrontés à un grave déficit hydrique, souligne l’importance des transferts internationaux de technologies et des politiques susceptibles de faciliter une large diffusion de ces technologies dans les pays déficitaires en eau.
Classification-JEL: O3; O31; O38; Q25; Q28; Q55
Keywords: adaptation au changement climatique, climate change adaptation, innovation, innovation, rareté de l'eau, water scarcity
Creation-Date: 2015-02-10
Number: 82
Handle: RePEc:oec:envaaa:82-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Raphaël Jachnik
Author-Workplace-Name: OECD
Author-Name: Randy Caruso
Author-Workplace-Name: OECD
Author-Name: Aman Srivastava
Author-Workplace-Name: World Resources Institute
Title: Estimating Mobilised Private Climate Finance: Methodological Approaches, Options and Trade-offs
Abstract: Quantifying the effect of public interventions aimed at mobilising private finance for climate activities is technically complex and challenging. As a step towards addressing this complexity, the report presents a framework of key decision points for estimating publicly mobilised private finance. This framework outlines different methodological options and choices needed to make these estimates. It assesses trade-offs and implications of these choices in terms of their accuracy, the incentives they provide, their potential to be standardised across entities, and their practicality (data availability, expertise and resource demands). The report further identifies and suggests practical options available in the short-term for estimating mobilised private finance, while underlining the need to provide transparency about underlying definitions, assumptions and limitations. It also recommends longer-term actions to improve these methods, including the need to converge on definitions, to build data systems and to improve and standardise estimation methods. The primary objective of this report is to inform the development of methods to measure in a transparent manner progress towards the fulfilment of the financial commitments made by developed countries in the context of international negotiations under the United Nations Framework Convention on Climate Change. It also aims to encourage careful examination of the links between public interventions and private climate finance. This is to ensure that methods to estimate mobilisation help encourage the efficiency and effectiveness of public interventions aimed at mobilising such finance.
Classification-JEL: F21; F53; G2; O16; O19; Q54; Q56
Keywords: climate change, estimation, measurement, mobilisation, private finance, public interventions
Creation-Date: 2015-02-19
Number: 83
Handle: RePEc:oec:envaaa:83-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Kees Vringer
Author-Workplace-Name: Netherlands Environmental Assessment Agency
Author-Name: Herman R. J. Vollebergh
Author-Workplace-Name: Tilburg University
Author-Name: Daan van Soest
Author-Workplace-Name: VU University Amsterdam
Author-Name: Eline van der Heijden
Author-Workplace-Name: Tilburg University
Author-Name: Frank Dietz
Author-Workplace-Name: Netherlands Environmental Assessment Agency
Title: Sustainable consumption dilemmas
Abstract: Consumers only occasionally choose to buy sustainable products. At the same time these consumers say in surveys that sustainability is important to them, and that the government should promote sustainable consumption. Most likely, a social dilemma is at play here. Everyone would be better off if we all consume sustainably; but because of the higher prices for sustainable products, there is an incentive for each individual to leave sustainability efforts to others. Government measures to promote sustainable consumption would resolve the social dilemma. But do consumers really want to increase sustainability? This study takes a closer look at public support for sustainable consumption and the associated dilemmas, with the help of a behavioural economics experiment of group decisions. In the experiment, participants had to decide whether they were willing to buy more sustainable varieties of meat or chocolate instead of less sustainable conventional varieties. They actually had to buy the product agreed upon for one week. The results show that a large number of participants, who did not usually buy sustainable products, were willing to commit to buying sustainable products. This gap may partially be explained by ‘conditional cooperation’ phenomena. In addition participants appear insensitive to the size of the collective benefit. However, the participants in our experiment seem to have difficulties to force others to buy sustainable products. They seem to be caught in a moral dilemma in which they weigh the feel-good effect of contributing to a collective good against the higher individual costs of buying sustainable products and forcing others to do so. Also we found that the preference of the participants for, or dislike of, a measure beforehand did not say much about their appreciation of the measure afterwards. Based on the results we draw the following policy conclusions. Since consumers do not always act in accordance with their values, the presently low market shares of sustainable products do not adequately reflect consumer support for government policy to promote sustainable consumption. To stimulate consumption of sustainable products, it may be useful to emphasize the feel-good effect (‘warm glow’) of individual contributions to sustainability. Furthermore, the government could make use of the fact that most consumers are ‘conditionally cooperative’, e.g. by convincing individual consumers that enough others are switching to sustainable products, too. In this context, it appears that consumers prefer ‘soft’ incentive measures (e.g. subsidies) over ‘hard’ restrictive regulations, even if their individual financial benefit from the former will be smaller. The freedom of choice is apparently worth it. However, rules and regulations, even in the form of bans of less sustainable product varieties, can be acceptable and more effective – as long as the government takes the lead in setting up these rules and regulations.<BR>Les consommateurs ne choisissent qu’occasionnellement d’acheter des produits durables. Or quand on les interroge, ces mêmes consommateurs déclarent que la durabilité est importante pour eux et que les pouvoirs publics devraient promouvoir la consommation durable. Selon toute vraisemblance, un dilemme social est ici à l’oeuvre. Chaque individu gagnerait à ce que nous consommions tous des produits durables, mais le prix plus élevé de ces produits l’incite à laisser cet effort aux autres. L’adoption par les pouvoirs publics de mesures visant à promouvoir la consommation durable résoudrait le dilemme social, mais les consommateurs souhaitent-ils réellement promouvoir la durabilité ? Cette étude examine l’intérêt des individus pour la consommation durable et les dilemmes que cela engendre, en s’appuyant sur une expérience d’économie comportementale appliquée à des décisions de groupe. Dans cette expérience, les participants devaient décider s’ils étaient prêts à acheter de la viande biologique ou du chocolat équitable au lieu de versions classiques (moins durables) de ces produits, et devaient effectuer les achats décidés durant une semaine. Les résultats montrent qu’un grand nombre de participants, qui n’achètent habituellement pas de produits durables, étaient prêts à s’engager à le faire. Ce contraste peut en partie s’expliquer par un phénomène de « coopération conditionnelle ». En outre, les participants paraissent insensibles à l’ampleur du gain collectif généré. Toutefois, les participants de notre expérience semblent éprouver des difficultés à obliger les autres à acheter des produits durables. Ils semblent être confrontés à un dilemme moral, dans lequel ils doivent mettre en balance la sensation de bien-être que provoque la contribution à un bien collectif et les coûts individuels plus élevés que supposent l’achat de produits durables et le fait d’obliger les autres à agir de même. Nous avons aussi constaté que la préférence des participants pour une mesure ou leur rejet de celle-ci a priori n’en disaient pas beaucoup sur leur appréciation de la mesure a posteriori. À partir des résultats de cette expérience, nous avons tiré les conclusions suivantes. Puisque les consommateurs n’agissent pas toujours conformément à leurs valeurs, la part de marché des produits durables, qui est actuellement faible, ne reflète pas correctement le soutien des consommateurs aux mesures prises par les pouvoirs publics pour promouvoir la consommation durable. Afin de stimuler la consommation de produits durables, il pourrait s’avérer utile de jouer sur la sensation de bien-être (le « chaud au coeur ») que suscite une contribution individuelle au développement durable. En outre, les pouvoirs publics pourraient s’appuyer sur la « coopération conditionnelle » qui caractérise la plupart des consommateurs, par exemple en persuadant chaque individu qu’un nombre suffisant (important) de consommateurs change aussi ses habitudes de consommation au profit de la consommation durable. Dans ce contexte, il apparaît que les consommateurs préfèrent les mesures incitatives « douces » (comme les subventions) aux règlementations restrictives, mesures « dures », même s’ils y perdent sur le plan financier. C’est le prix à payer pour le libre-choix. Toutefois, les règlementations, même sous la forme d’interdiction des versions les moins durables d’un produit, peuvent être acceptées et s’avérer plus efficaces, tant qu’elles restent à l’initiative des pouvoirs publics.
Classification-JEL: D11; D12
Keywords: conditional cooperation, consommation durable, coopération conditionnelle, household economics, sustainable consumption, économie des ménages
Creation-Date: 2015-03-16
Number: 84
Handle: RePEc:oec:envaaa:84-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Zachary S. Brown
Author-Workplace-Name: OECD
Author-Name: Bastien Alvarez
Author-Workplace-Name: University of Toulouse
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Title: Tender instruments: programme participation and impact in australian conservation tenders, grants and volunteer organisations
Abstract: A striking variety of policy instruments are used in Victoria, Australia to achieve conservation objectives. These include highly active voluntary programmes, a variety of conservation grants, and a reverse auction for the provision of ecosystem services, known as EcoTender. An open question regarding such payments for ecosystem services (i.e. grants and tenders) is whether they achieve ‘additionality.’ That is, do they lead to conservation above the status quo? Critics of these instruments allege that the majority of funds for such programmes are merely paying individuals for conservation work they are already doing. A related concern is that monetary incentives for conservation may skew landowners’ motives more towards monetary concerns, and erode nature conservation values. The practical implication of this ‘moral crowding out’ is that, if funding is ever suspended for conservation grants or EcoTenders, then conservation may decline below its original, pre-programme level. To investigate both of these concerns, a telephone survey was conducted with 266 farmers in Victoria. Analysis of the data suggests that there is a strong correlation between stated levels of own-property conservation effort and activity in local volunteer groups, as well as having received a conservation grant or tender. However, this does not address the additionality question, because landowners already engaged in such efforts may be more likely to be awarded grants or tenders. This presents an endogeneity problem. While panel data are ultimately necessary to answer this question definitively, application of instrumental variables methods provides some insight. The methods imply that grants and tenders may achieve ‘additionality’ only when they reach those otherwise uninvolved with conservation programmes, in particular those not volunteering. This suggests that conservation tenders can improve their cost-effectiveness by increasing participation among those not already volunteering in other conservation programmes. Meanwhile, there is fairly strong evidence in the data for the potential for moral-crowding-out; tender or grant receipt appears to shift stated motivations towards more monetary concerns. However, the practical implications of this finding – that is, whether this erosion of attitudes translates in blunted conservation efforts – remain unknown.<BR>Des instruments d’une étonnante diversité sont utilisés dans l’État de Victoria, en Australie, pour atteindre les objectifs de protection de l’environnement. Il existe ainsi des programmes volontaires très actifs, tout un éventail de subventions et un système d’enchères inversées appliqué à la fourniture de services écosystémiques, appelé EcoTender. Toutefois, une question se pose au sujet de ces mécanismes (subventions et appels d’offres) : répondent-ils au critère d’« additionnalité » ? Autrement dit, la protection qu’ils assurent est-elle supérieure à celle qui existe dans le statu quo ? D’après leurs détracteurs, les fonds versés en application de ces instruments ne font que rétribuer, dans leur majeure partie, des activités de protection de l’environnement que leurs bénéficiaires exercent déjà. De même, on peut craindre que les incitations pécuniaires ne faussent les motivations des propriétaires fonciers et que les mobiles financiers ne prennent le pas sur la portée morale de la sauvegarde de la nature. Concrètement, cette « éviction de la motivation morale » a pour effet que, si le financement des subventions ou d’EcoTender est interrompu à un moment ou un autre, la protection risque de descendre en dessous du niveau où elle s’établissait avant le recours à ces instruments. Pour évaluer le bien-fondé de ce scepticisme, une enquête téléphonique a été menée auprès de 266 agriculteurs du Victoria. L’analyse des données indique qu’il existe une forte corrélation entre, d’une part, le niveau qu’un propriétaire attribue aux activités de protection qu’il mène sur sa propriété même et, d’autre part, ses activités bénévoles dans les associations locales et le fait qu’il ait bénéficié d’une subvention ou ait remporté un appel d’offres. Néanmoins, cela ne répond pas à la question de l’additionnalité, dans la mesure où les propriétaires fonciers qui protègent déjà le milieu sont peut-être plus susceptibles de recevoir des subventions ou de gagner un appel d’offres. Nous rencontrons ici un problème d’endogénéité. Des données de panel sont en dernière analyse nécessaires pour trancher la question, mais le recours à la méthode des variables instrumentales apporte un éclairage. Dans ce cas, on suppose que les subventions et les appels d’offres ne remplissent le critère d’additionnalité que s’ils bénéficient à ceux qui ne participent pas à des programmes de protection de l’environnement dans un autre cadre, en particulier à ceux qui ne font pas de bénévolat. Il en ressort que les appels d’offres écologiques peuvent présenter un meilleur rapport coût-efficacité si des candidats n’étant pas déjà bénévoles dans des programmes de protection de l’environnement sont plus nombreux à y participer. Cependant, les données semblent attester assez nettement qu’il existe un risque d’éviction de la motivation morale : se voir attribuer un marché ou une subvention fait pencher les motivations déclarées du côté de l’intérêt pécuniaire. Les conséquences concrètes de cette observation (les activités spontanées de protection, sur le terrain, s’en trouvent-t-elles diminuées ?) restent toutefois inconnues.
Classification-JEL: Q55; Q57; Q58
Keywords: additionality, additionalité, conservation grants, financement des subventions, instruments d’appel d’offres, tender instruments
Creation-Date: 2015-03-16
Number: 85
Handle: RePEc:oec:envaaa:85-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Olivier Durand-Lasserve
Author-Workplace-Name: OECD
Author-Name: Lorenza Campagnolo
Author-Workplace-Name: University of Venice
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Author-Name: Rob Dellink
Author-Workplace-Name: OECD
Title: Modelling of distributional impacts of energy subsidy reforms: an illustration with Indonesia
Abstract: This report develops an analytical framework that assesses the macroeconomic, environmental and distributional consequences of energy subsidy reforms. The framework is applied to the case of Indonesia to study the consequences in this country of a gradual phase out of all energy consumption subsidies between 2012 and 2020. The energy subsidy estimates used as inputs to this modelling analysis are those calculated by the International Energy Agency, using a synthetic indicator known as “price gaps”. The analysis relies on simulations made with an extended version of the OECD’s ENV-Linkages model. The phase out of energy consumption subsidies was simulated under three stylised redistribution schemes: direct payment on a per household basis, support to labour incomes, and subsidies on food products. The modelling results in this report indicate that if Indonesia were to remove its fossil fuel and electricity consumption subsidies, it would record real GDP gains of 0.4% to 0.7% in 2020, according to the redistribution scheme envisaged. The redistribution through direct payment on a per household basis performs best in terms of GDP gains. The aggregate gains for consumers in terms of welfare are higher, ranging from 0.8% to 1.6% in 2020. Both GDP and welfare gains arise from a more efficient allocation of resources across sectors resulting from phasing out energy subsidies. Meanwhile, a redistribution scheme through food subsidies tends to create other inefficiencies. The simulations show that the redistribution scheme ultimately matters in determining the overall distributional performance of the reform. Cash transfers, and to a lesser extent food subsidies, can make the reform more attractive for poorer households and reduce poverty. Mechanisms that compensate households via payments proportional to labour income are, on the contrary, more beneficial to higher income households and increase poverty. This is because households with informal labour earnings, which are not eligible for these payments, are more represented among the poor. The analysis also shows that phasing out energy subsidies is projected to reduce Indonesian CO2 emissions from fuel combustion by 10.8% to 12.6% and GHG emissions by 7.9% to 8.3%, in 2020 in the various scenarios, with respect to the baseline. These emission reductions exclude emissions from deforestation, which are large but highly uncertain and for which the model cannot make reliable projections.<BR>Ce rapport élabore un cadre analytique qui évalue les effets macroéconomiques, environnementaux et redistributifs des réformes des subventions énergétiques. Il applique ce cadre au cas de l’Indonésie afin d’étudier les conséquences dans ce pays d’une suppression progressive de toutes les subventions à la consommation d’énergie entre 2012 et 2020. Les estimations des subventions à l’énergie sur lesquelles se base cette analyse par modélisation sont celles calculées par l’Agence internationale de l’énergie, à l’aide d’un indicateur synthétique appelé « différentiel de prix ». L’analyse repose sur des simulations réalisées avec une version enrichie du modèle ENV-Linkages de l’OCDE, modèle dynamique d’équilibre général calculable (EGC) mondial. La suppression des subventions à la consommation d’énergie a été simulée en retenant trois types de dispositifs de redistribution : un paiement direct au niveau des ménages, un soutien aux revenus du travail et des subventions aux produits alimentaires. Les résultats de la modélisation réalisée dans ce rapport indiquent que si l’Indonésie venait à supprimer ses subventions à la consommation des combustibles fossiles et d’électricité, elle enregistrerait des gains de PIB réel de 0.4 % à 0.7 % en 2020, selon le dispositif de redistribution retenu. La redistribution sous forme de paiements directs au niveau des ménages donne les meilleurs résultats en termes de gains de PIB. Le gain global pour les consommateurs en termes de bien-être est plus élevé, allant de 0.8 % à 1.6 % en 2020. Les gains en matière de PIB et de bien-être sont obtenus grâce à une répartition des ressources entre les secteurs de façon plus efficiente à la suite de l’élimination des subventions énergétiques. Dans l’intervalle, un dispositif de redistribution sous forme de subventions alimentaires tend à créer d’autres inefficacités, qui compensent en partie les avantages macroéconomiques de la suppression des subventions à la consommation d’énergie. Les simulations montrent aussi qu’à terme, le dispositif de redistribution joue un rôle en déterminant l’effet redistributif global de la réforme. Les transferts monétaires, et dans une moindre mesure les subventions alimentaires, peuvent rendre la réforme plus profitable pour les ménages pauvres et faire reculer la pauvreté. À l’inverse, les mécanismes qui compensent les ménages à l’aide de paiements proportionnels aux revenus du travail bénéficient davantage aux ménages à revenu élevé et accroissent la pauvreté. En effet, les ménages qui reçoivent des revenus du travail dans le secteur informel et qui ne peuvent prétendre à ces paiements, sont plus nombreux chez les pauvres. L’analyse montre aussi que d’après les prévisions, la suppression des subventions énergétiques en Indonésie devrait réduire les émissions de CO2 dues à la combustion des énergies fossiles de 10.8 % à 12.6 % et les émissions de GES de 7.9 % à 8.3 % en 2020 selon les différents scénarios, par rapport au scénario de référence. Ces réductions d’émissions ne tiennent pas compte des émissions dues à la déforestation, qui sont élevées mais restent très mal connues, et au sujet desquelles le modèle ne peut pas faire de projections fiables.
Classification-JEL: C68; H23; O53
Keywords: computable and other applied general equilibrium models, distributional impact, effets distributifs, fossil fuel subsidy reforms, households’ heterogeneity, hétérogénéité des ménages, Indonesia, Indonésie, modèle d’équilibre général calculable, réforme des subventions aux énergies fossiles
Creation-Date: 2015-03-27
Number: 86
Handle: RePEc:oec:envaaa:86-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Johanna Arlinghaus
Author-Workplace-Name: OECD
Title: Impacts of Carbon Prices on Indicators of Competitiveness: A Review of Empirical Findings
Abstract: Concerns around potential losses of competitiveness as a result of unilateral action on carbon pricing are often central for policy makers contemplating the introduction of such instruments. This paper is a review of literature on ex post empirical evaluations of the impacts of carbon prices on indicators of competitiveness as employed in the literature, including employment, output or exports, at different levels of aggregation.<BR>Le risque que des mesures unilatérales de tarification du carbone induisent des pertes de compétitivité constitue souvent un sujet d’inquiétude majeur pour les responsables publics qui envisagent de mettre en place de tels instruments. Ce document passe en revue les travaux consacrés aux évaluations empiriques ex post des effets des prix du carbone sur les indicateurs de la compétitivité communément utilisés, dont l’emploi, la production ou les exportations, à différents niveaux d’agrégation.
Classification-JEL: H23; H32; Q54; Q58
Keywords: carbon tax, competitiveness, emissions trading, environmental taxes, policy evaluation
Creation-Date: 2015-03-27
Number: 87
Handle: RePEc:oec:envaaa:87-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Florens Flues
Author-Workplace-Name: OECD
Author-Name: Benjamin Johannes Lutz
Author-Workplace-Name: Centre for European Economic Research
Title: Competitiveness Impacts of the German Electricity Tax
Abstract: Proposals to increase environmentally related taxes are often challenged on competitiveness grounds. The concern is that value creation in certain sectors might decline domestically if a country introduces environmentally related taxes unilaterally. Furthermore, environmental goals might not be reached if pollution shifts abroad. A competing view argues that properly implemented environmentally related taxes foster innovation, thereby boosting productivity and competitiveness. Empirical research is needed to gain insight into the strength of these various effects. This paper provides evidence on the short-term competitiveness impacts of the German electricity tax introduced unilaterally in 1999. Germany’s manufacturing sector uses significant amounts of electricity, and to counteract potential negative effects on competitiveness, relief was provided: firms using more electricity than specified thresholds benefitted from reduced electricity tax rates. The tax reduction amounted up to EUR 14.6 per megawatt hour, about 80% of the full tax rate. When measured as an effective rate on the carbon content in the average unit of electricity, the electricity tax translates into EUR 44.4 per tonne of carbon dioxide, indicating the magnitude of the tax. The econometric analysis – a regression discontinuity design – shows no robust effects in either direction of the reduced electricity tax rates on firms’ competitiveness. Firms subject to the full tax rates, but otherwise similar to firms facing reduced rates, did not perform worse in terms of turnover, exports, value added, investment and employment. The analysis questions the relevance of the tax reduction for competitiveness reasons and suggests that it could be gradually removed. The energy use threshold, above which a reduced tax rate applies, could be raised over time and competitiveness impacts monitored.
Classification-JEL: D22; H21; H23; Q41; Q48
Keywords: competitiveness impacts, environmental taxation, tax expenditure
Creation-Date: 2015-05-12
Number: 88
Handle: RePEc:oec:envaaa:88-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Mauro Migotto
Author-Workplace-Name: OECD
Title: Measuring environmental innovation using patent data
Abstract: This paper refines indicators to measure innovation in environment-related technologies, drawing on recent methodological advances that allow a more accurate assessment of environment-related innovation in a broader range of countries and covering a greater variety of the relevant technologies. Three indicators are discussed in the paper: an indicator of technology development (a measure of inventive activity) in over 80 specific environmental technologies; an indicator of international collaboration in technology development (a measure of co-invention); and an indicator of technology diffusion (a measure of market protection). These indicators provide a range of tools for assessing innovative performance in country and policy studies. The indicators are based on patent data because they have a number of attractive properties compared to other alternatives: they are widely available, quantitative, commensurable, output-oriented and capable of being disaggregated – an important advantage when analysing environmental technologies. At the same time, not all innovations or inventions are patented, and measuring the number of patents by itself does not provide an indication of their relative importance and impact. Techniques have been developed to overcome these limitations, yet it is important to carefully interpret patent-based indicators.
Classification-JEL: O3; O31; O34; O38; Q2; Q4; Q5
Keywords: environmental technologies, indicators, innovation
Creation-Date: 2015-06-26
Number: 89
Handle: RePEc:oec:envaaa:89-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Christina Van Winkle
Author-Workplace-Name: OECD
Author-Name: Katia Karousakis
Author-Workplace-Name: OECD
Author-Name: Rosalind Bark
Author-Name: Martijn van der Heide
Author-Workplace-Name: LEI-WUR
Title: Biodiversity Policy Response Indicators
Abstract: This paper reviews a number of OECD data sources to examine their potential for establishing indicators which can contribute to monitoring progress towards two of the 2011-2020 Aichi Biodiversity Targets under the Convention on Biological Diversity (CBD), namely Target 3 on Incentives and Target 20 on Resource Mobilisation. Aichi Target 3 refers to the need to eliminate, phase out, or reform incentives, including subsidies, harmful to biodiversity and to develop and apply positive incentives for the conservation and sustainable use of biodiversity. Aichi Target 20 refers to the need to substantially increase the mobilisation of financial resources from all sources to effectively implement the Strategic Plan for Biodiversity 2011-2020. The objectives of this work were twofold, namely to (a) identify the indicator needs to monitor progress towards these two targets, and (b) examine to what extent existing relevant OECD datasets and monitoring systems can be used for these purposes, including the types of modifications to data collection methodology or classification that may be useful to better align the data sources with the indicator needs. Within this context, six data sources are reviewed and assessed, and gaps and data limitations as they pertain to the reporting purposes of the CBD are highlighted. Given the caveats that are raised, as well as the upcoming need to assess progress on the achievement of the Aichi Targets in 2020, the analysis here aims to provide policy-makers and negotiators with the information needed to consider whether existing OECD datasets could be used and built upon so as to further develop indicators that are useful for the CBD.
Classification-JEL: Q18; Q22; Q56; Q57; Q58
Keywords: agricultural policy, biodiversity conservation, ecological economics, ecosystem services, environment & development, government policy
Creation-Date: 2015-07-31
Number: 90
Handle: RePEc:oec:envaaa:90-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Renaud Coulomb
Author-Workplace-Name: Grantham Research Institute on Climate Change and the Environment
Author-Name: Simon Dietz
Author-Workplace-Name: Grantham Research Institute on Climate Change and the Environment
Author-Name: Maria Godunova
Author-Workplace-Name: Grantham Research Institute on Climate Change and the Environment
Author-Name: Thomas Bligaard Nielsen
Author-Workplace-Name: Grantham Research Institute on Climate Change and the Environment
Title: Critical Minerals Today and in 2030: An Analysis for OECD Countries
Abstract: Raw materials are essential for the global economy and future development depends on their continued supply. Like fossil fuels, minerals are non-renewable. In general, their deposits in the Earth’s crust are also geographically clustered, making security of supply a potential risk. In many cases, the exhaustion of economically competitive minerals deposits in industrialized countries has made supplies increasingly dependent on the political stability of mineral-rich emerging economies. At the same time, increasing demand from these emerging markets, new technologies that require large amounts of rare minerals , low substitutability in applications and low rates of recycling have made economies more vulnerable to potential supply disruptions. Consequently policy-makers in several OECD countries and regions have developed reports that assess the vulnerability of their respective economies to disruptions in the supply of minerals. A common aim of many of these studies is the identification of a list of so-called ‘critical minerals’, defined as minerals for which the risk of disruptions in supply is relatively high and for which supply disruptions will be associated with large economic impacts.<BR>Les matières premières sont essentielles pour l'économie mondiale et le développement futur dépend de leur approvisionnement continu. Comme les combustibles fossiles, les minerais ne sont pas renouvelables. Par ailleurs, leurs dépôts dans la croûte terrestre sont, en général, regroupés géographiquement, faisant ainsi de la sécurité de l'approvisionnement un risque potentiel. Dans de nombreux cas en effet, pour ce qui est des pays industrialisés, l'épuisement des réserves en minerais économiquement compétitifs a rendu l'approvisionnement en matières premières une activité de plus en plus dépendante de la stabilité politique des pays émergents riches en minerais. Dans le même temps, la demande croissante de ces marchés émergents, mais aussi les nouvelles technologies qui nécessitent de grandes quantités de minerais rares, ainsi qu’une faible substituabilité dans leurs applications concrètes et des taux de recyclage faibles, ont rendu les économies plus vulnérables aux éventuelles ruptures d'approvisionnement. Par conséquent les décideurs dans plusieurs pays et régions de l'OCDE ont commandé des rapports qui évaluent la vulnérabilité de leurs économies respectives face à des perturbations dans l'approvisionnement en minerais. L’objectif commun d'un grand nombre de ces études est l'identification d'une liste de soi-disant «minerais critiques», définis comme les minerais pour lesquels le risque de perturbations de l'approvisionnement est relativement élevé et pour lesquels les ruptures en approvisionnement seront associées à de grands impacts économiques.
Classification-JEL: F69; O13; Q32; Q37
Keywords: recyclage, recycling
Creation-Date: 2015-09-08
Number: 91
Handle: RePEc:oec:envaaa:91-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Stephen Smith
Author-Workplace-Name: University College London
Author-Name: Nils Axel Braathen
Author-Workplace-Name: OECD
Title: Monetary Carbon Values in Policy Appraisal: An Overview of Current Practice and Key Issues
Abstract: Cost-benefit analyses and other quantitative appraisals are used in many countries to support decision-making in different areas of public policy, including many investment projects in sectors such as transport and energy. These decisions can have significant effects – either negative or positive – on future emissions of carbon dioxide and other greenhouse gases and it is important whether, and how, countries incorporate estimates of the marginal value of changes in carbon dioxide emissions into these analyses. This paper discusses the range of approaches which can be employed to value changes in carbon emissions in policy appraisals, setting out the key issues in the choice of valuation principles, and presents some case studies and a survey of current practice in OECD countries.<BR>Les analyses coûts-avantages et d’autres évaluations quantitatives sont utilisées dans de nombreux pays pour étayer la prise de décisions dans différents domaines d’action publique, par exemple dans nombre de projets d’investissement dans les transports ou l’énergie. Ce sont des décisions qui peuvent avoir une influence notable –défavorable ou favorable – sur les émissions futures de dioxyde de carbone et d’autres gaz à effet de serre, c’est pourquoi il importe de savoir si des pays introduisent dans ces analyses des estimations de la valeur marginale des variations des émissions de dioxyde de carbone et comment ils procèdent à cet effet. Ce rapport examine les différentes approches possibles pour attacher des valeurs aux variations des émissions de carbone dans le cadre de l’évaluation des politiques, en signalant les grands problèmes que pose le choix des principes d’évaluation, et il présente quelques études de cas ainsi qu’une enquête sur les pratiques actuelles en la matière dans les pays de l’OCDE.
Classification-JEL: H43; Q51; Q54; Q58
Keywords: analyse coûts-avantages, climate change policy, cost-benefit analysis, évaluation des politiques
Creation-Date: 2015-09-23
Number: 92
Handle: RePEc:oec:envaaa:92-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Anil Markandya
Author-Workplace-Name: Basque Center for Climate Change
Title: The Economic Feedbacks of Loss of Biodiversity and Ecosystems Services
Abstract: The topic of biodiversity loss has been the subject of a vast and growing scientific and economic literature. Species are estimated to be going extinct at rates 100 to 1000 times faster than in geological times. Globally, terrestrial biodiversity is projected to decrease by a further 10% by 2050. As with biodiversity, the planet has also experienced major losses in the services derived from ecosystems. During the last century, for example, the planet has lost 50% of its wetlands, 40% of its forests and 35% of its mangroves. Around 60% of global ecosystem services have been degraded in just 50 years. While there is a large and growing literature on the values associated with the services that ecosystems provide, much less has been done in analysing the causality in the other direction – i.e. in assessing the linkages from changes in ecosystem services to the functioning of the economy. This report contributes to an effort to identify environmental pressures under different structural and environmental policy assumptions and the associated damages that will result under different economic scenarios to 2050. Based on these it aims, inter alia, to examine how the environmental pressures may affect economic growth paths. This report contributes to that goal by looking at the consequences of the loss of biodiversity and ecosystem services. It does so by reviewing the main findings in the literature and key issues involved in the valuation of biodiversity and ecosystems services, as well as key issues involved in linking loss of biodiversity and ecosystems services to economic activity. The report finishes by identifying the main opportunities and obstacles in including biodiversity and eco-system services into a dynamic general equilibrium framework.<BR>La perte de biodiversité fait l’objet d’un riche corpus d’ouvrages scientifiques et économiques, qui ne cesse de s’étoffer. On estime que le rythme d’extinction des espèces est aujourd’hui 100 à 1 000 fois supérieur à celui des époques géologiques. À l’échelle mondiale, la biodiversité terrestre devrait, selon les projections, reculer encore de 10 % d’ici 2050. Comme pour la biodiversité, la planète enregistre également d’importantes pertes au niveau des services dérivés des écosystèmes. Au cours du dernier siècle, par exemple, elle a perdu 50 % de ses zones humides, 40 % de ses forêts et 35 % de ses mangroves. Environ 60 % des services écosystémiques mondiaux se sont dégradés en 50 ans à peine. S’il existe un nombre imposant et croissant de travaux publiés sur les valeurs associées aux services fournis par les écosystèmes, l'analyse des relations de cause à effet dans l'autre direction, c'est-à-dire à l'évaluation des conséquences des changements intervenant dans les services écosystémiques sur le fonctionnement de l’économie, a beaucoup moins retenu l’attention. Le présent rapport s’inscrit dans un effort visant à identifier les pressions environnementales sur la base de différentes hypothèses relatives aux politiques structurelles et environnementales, ainsi que les dommages attendus d’ici 2050 selon différents scénarios économiques. Il s’agit notamment d’analyser comment ces pressions sont susceptibles de peser sur les trajectoires de croissance économique. Ce rapport contribue à cette analyse en s’intéressant aux conséquences des pertes de biodiversité et de services écosystémiques. Pour ce faire, il passe en revue les principaux constats présentés dans la littérature, les difficultés fondamentales posées par l’évaluation de la biodiversité et des services écosystémiques, ainsi que les grands problèmes liés à la détermination des liens entre, d’une part, la biodiversité et les services écosystémiques et, d’autre part, l’activité économique. Pour terminer, le rapport repère les principales possibilités et difficultés d’intégration de la biodiversité et des services écosystémiques dans un cadre d’équilibre général dynamique.
Classification-JEL: O44; Q22; Q57
Keywords: biodiversity, biodiversité, ecosystem services, écosystèmes
Creation-Date: 2015-11-19
Number: 93
Handle: RePEc:oec:envaaa:93-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Elisabete A. Silva
Author-Workplace-Name: University of Cambridge
Author-Name: Ransford A. Acheampong
Author-Workplace-Name: University of Cambridge
Title: Developing an Inventory and Typology of Land-Use Planning Systems and Policy Instruments in OECD Countries
Abstract: This report provides an overview of spatial and land-use planning systems in OECD countries1 focusing on: (i) the governance systems across countries, (ii) the institutional and legal frameworks for spatial planning, and (iii) the various policy instruments used at different levels of territorial governance to articulate spatial development objectives, manage physical development and protect the environment. The report draws on available academic literature and policy documents. The analysis shows a strong relationship between governance models and authority and competences for spatial planning. Spatial plans at various spatial scales are used to create the preconditions for harmonising socio-economic development goals with environmental protection imperatives. Environmental assessment constitutes another key regulatory instrument. National plans, programmes, regional development and land-use plans as well as sector plans and policies are subjected to Strategic Environmental Assessment. Individual projects resulting from these policy instruments are subjected to Environmental Impact Assessment in most countries. In all countries, environmentally-related permits work together with environmental assessments to ensure that environmental considerations are taken into account in the siting of industrial installations and mega-infrastructure projects that would have significant impacts on the environment. The main challenges associated with environmental assessment in most countries include the political nature of the assessment process, the cost (time and money) of assessment particularly to businesses, limited consultation periods, limited technical capacity of institutions, the endeavour for independence and quality of the assessment and the absence of robust legislative frameworks.<BR>Ce rapport propose un tour d’horizon des systèmes d’aménagement de l’espace et d’urbanisme dans les pays de l’OCDE2, qui met l’accent sur : (i) les systèmes de gouvernance des différents pays, (ii) les cadres institutionnels et juridiques de l’aménagement de l’espace, et (iii) les divers instruments employés aux différents échelons de gouvernance territoriale pour définir les objectifs de développement territorial, gérer le milieu physique et protéger l’environnement. Le rapport fait fond sur les travaux universitaires publiés et les documents d’orientation disponibles. L’analyse montre un lien étroit entre les modèles de gouvernance et l’autorité et les compétences en matière d’aménagement de l’espace. Les plans d’aménagement sont appliqués aux niveaux national et infranational pour intégrer les considérations sociales, économiques et environnementales dans les décisions d’allocation des ressources foncières et de répartition des activités. L’évaluation environnementale constitue un autre instrument réglementaire essentiel. Les plans et programmes nationaux, les plans régionaux d’aménagement et d’urbanisme ainsi que les politiques et plans sectoriels sont soumis à une évaluation environnementale stratégique. Les différents projets qui résultent de ces instruments font quant à eux l’objet d’une étude d’impact sur l’environnement dans la plupart des pays. Tous les pays ont couplé les autorisations liées à l’environnement à des évaluations environnementales, afin de faire en sorte que les considérations d’environnement entrent en ligne de compte dans le choix du site d’implantation des installations industrielles et des grandes infrastructures susceptibles d’avoir des incidences significatives sur l’environnement. Dans la plupart des pays, les difficultés que soulève l’évaluation environnementale tiennent surtout à la nature politique du processus d’évaluation, aux coûts qu’il induit (en temps et en argent), notamment pour les entreprises, à la brièveté des périodes de consultation, aux capacités techniques limitées des institutions et à l’absence de cadres législatifs solides.
Classification-JEL: Q58; R50; R52; R58
Keywords: environmental impact assessment (EIA), governance, land use, urbanisme
Creation-Date: 2015-12-03
Number: 94
Handle: RePEc:oec:envaaa:94-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Zachary S. Brown
Author-Workplace-Name: North Carolina State University
Author-Name: Walid Oueslati
Author-Workplace-Name: OECD
Author-Name: Jérôme Silva
Author-Workplace-Name: OECD
Title: Exploring the Effect of Urban Structure on Individual Well-Being
Abstract: Building on the OECD’s Better Life Initiative and new work using geospatial analysis, this paper investigates how reported life satisfaction relates to some of the urban structure indicators. To this end, it merges OECD household survey data with urban structure data from OECD’s Metropolitan Database, which includes a number of city-level indicators such as population and road density, as well as localised measures of land-use. The merged data permit analysis for five countries: France, Japan, the Netherlands, Spain and Sweden. The findings from this analysis provide some evidence of a trade-off between home size and distance to the city centre, although the statistical power of this effect is relatively weak. Interestingly, regression analysis suggests that overall city-level compactness has a clear negative relationship with life satisfaction, regardless of whether individuals live in the urban core or in peri-urban areas. Land-use fragmentation is also found to have a negative relationship with individuals’ life satisfaction. These general patterns are for the most part robust to various statistical tests. They also hold when econometric analysis is conducted at the country level. Residents of cities with greater levels of centralisation – i.e. a greater share of the population living in the city centre – exhibit measurably lower levels of life satisfaction. A naïve interpretation of this result would suggest that anti-sprawl policies do not in fact improve overall welfare. This study does not support this conclusion. It does, however, give cause for consideration before accepting ‘win-win’ arguments for ‘smart growth,’ often brought forward to support increasingly concentrated, high-density development. The evidence presented here suggests that such policies are not without their welfare trade-offs, and that there will be winners and losers from their implementation. While high-density policies can clearly make a positive contribution to reducing local and global environmental externalities, many of these benefits are deferred and may largely accrue to future generations. A key general lesson from this study is that compensation of the losers may improve the equity effects of these policies, as well as prove more expeditious from a political economy perspective. One of the simplest approaches to compensation would be to balance pecuniary incentives for smart growth, such as higher development taxes or fees, with compensatory policies, such as subsidies or tax or fee offsets in other domains. The main policy conclusion from this study is that smart growth policies should include distributional analysis and recommendations for addressing concerns about inequalities flowing from the scoping and implementation of policies.<BR>En s’appuyant sur l’initiative du Vivre mieux de l’OCDE et sur les nouveaux travaux fondés sur des analyses géospatiales, ce rapport étudie les relations entre le niveau de satisfaction déclaré par les ménages et certains des indicateurs de structure urbaine. Pour ce faire, il croise les données d’enquête ménages de l’OCDE et les données sur la structure urbaine tirées de la base de données métropolitaines de l’OCDE, qui réunit plusieurs indicateurs urbains tels que les densités démographique et routière, et des mesures localisées de l’occupation des sols. Ce travail a permis de produire des analyses pour cinq pays : l’Espagne, la France, le Japon, les Pays-Bas et la Suède. Les résultats de ces analyses confirment qu’il existe une relation inverse entre la taille des logements et l’éloignement du centre-ville, même si la significativité statistique de cet effet est relativement faible. Notons aussi que l’analyse empirique révèle l’existence d’une corrélation négative incontestable entre la compacité urbaine et la satisfaction à l’égard de la vie, que l’on habite au coeur des villes ou en périphérie. Même constat en ce qui concerne la fragmentation urbaine. Ces schémas généraux sont pour la plupart validés par différents tests statistiques et confirmés à l’échelle de chaque pays. Les habitants des villes dont le niveau de centralisation est plus élevé – en d’autres termes, les villes où la part de la population vivant dans le centre est supérieure – affichent un niveau de satisfaction à l’égard de la vie bien plus faible. Une interprétation naïve de ce résultat consisterait à dire que les mesures visant à lutter contre l’étalement urbain n’améliorent pas le bien-être global. Le présent rapport ne soutient pas cette conclusion. En effet, ce constat empirique révèle plutôt qu’il est nécessaire d’arrêter de retenir les arguments « gagnant-gagnant » en faveur de la « croissance intelligente », souvent mis en avant pour soutenir un développement urbain favorable à une concentration et une densité de plus en plus fortes. Les constatations présentées dans le présent document font apparaître que ces politiques ne présentent pas que des avantages en termes de bien-être, et que leur mise en oeuvre profitera à certains individus au détriment des autres. Si les politiques en faveur d’une haute densité urbaine peuvent avoir un impact positif en réduisant les externalités environnementales à l’échelle locale et mondiale, nombre de leurs avantages sont différés dans le temps et ne profiteront sans doute en grande partie qu’aux générations futures. L’un des enseignements essentiels à tirer de cette étude tient au fait que l’on pourrait améliorer l’équité des politiques urbaines en offrant une compensation aux individus lésés par ces mesures. L’une des méthodes les plus simples consisterait à équilibrer les incitations pécuniaires en faveur d’une croissance intelligente en introduisant des dispositifs compensatoires tels que des subventions, des taxes ou des redevances dans d’autres domaines. Ce n’est qu’un exemple parmi tout un éventail de mesures possibles. Enfin, la conclusion principale à tirer sur le plan de l’action publique consiste à dire que les mesures en faveur d’une croissance intelligente devraient comporter une analyse des effets redistributifs ainsi que des recommandations pour faire face aux problèmes d’inégalités lors de leur cadrage et de leur mise en oeuvre.
Classification-JEL: I31; Q51; Q56; R13; R14
Keywords: compactness, land use, life satisfaction, satisfaction de la vie
Creation-Date: 2015-12-03
Number: 95
Handle: RePEc:oec:envaaa:95-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Miguel Cárdenas Rodríguez
Author-Workplace-Name: OECD
Author-Name: Laura Dupont-Courtade
Author-Workplace-Name: OECD
Author-Name: Walid Oueslati
Author-Workplace-Name: OECD
Title: Air Pollution and Urban Structure Linkages: Evidence from European Cities
Abstract: This paper investigates the relationship between local air pollution and urban structure with an emphasis on urban fragmentation. Using a unique dataset of 249 Large Urban Zones (LUZ) across Europe, a Bayesian Model Averaging selection method is employed to empirically identify the determinants of within-LUZ concentration of three air pollutants: NO2, PM10 and SO2 for the year 2006. Several indices of land use are considered among possible determinants. These are supplemented by a dataset on various economic, demographic and meteorological variables that can explain the variation of air pollution. The results of this econometric analysis support the hypothesis that urban structure has significant effects on pollution concentration. In particular, they suggest that fragmented urban areas experience higher concentrations of NO2 and PM10 and that densely populated urban areas suffer from higher SO2 concentration. The findings suggest that policies favouring continuous urban areas may result in environmental improvements.<BR>Ce rapport s’intéresse à la relation entre la pollution atmosphérique locale et la structure des villes en s’attachant plus particulièrement à la fragmentation urbaine. On applique une méthode d'analyse bayésienne des modèles pour identifier, à partir d’un ensemble de données unique couvrant 249 zones urbaines élargies (LUZ) d’Europe, les facteurs qui déterminent les concentrations de trois polluants atmosphériques (NO2, PM10 et SO2) dans ces zones, pour l’année 2006. Plusieurs indices d’occupation des sols figurent parmi les possibles déterminants. Ils sont complétés par un ensemble de données sur différentes variables économiques, démographiques et météorologiques qui pourraient expliquer les variations de la pollution atmosphérique. Les résultats de cette analyse économétrique confirment l’hypothèse selon laquelle la structure du tissu urbain a des effets importants sur les concentrations de polluants. En particulier, les résultats indiquent des concentrations plus élevées de NO2 et de PM10 dans les espaces urbains fragmentés et des concentrations plus élevées de SO2 dans les zones urbaines densément peuplées. Ces résultats donnent à penser que la mise en oeuvre de politiques favorisant la continuité de l’espace urbain pourrait être bénéfique pour l’environnement.
Classification-JEL: Q52; Q58; R52
Keywords: air pollution, Bayesian model averaging, fragmentation, pollution atmosphérique, urban sprawl, étalement urbain
Creation-Date: 2015-12-03
Number: 96
Handle: RePEc:oec:envaaa:96-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Giles Atkinson
Author-Workplace-Name: London School of Economics
Author-Name: Susana Mourato
Author-Workplace-Name: London School of Economics
Title: Cost-Benefit Analysis and the Environment
Abstract: While the basic principles of cost-benefit analysis (CBA) are long-standing, the challenges entailed in applying these principles are constantly evolving. This paper reviews recent developments in environmental CBA since the publication of an OECD volume on this topic by Pearce et al. (2006). The character and direction of these developments also evolves over time and the current review reflects this process.<BR>Si les principes fondamentaux de l’analyse coûts-bénéfices (ACB) sont établis depuis longtemps, les problèmes liés à l’application de ces principes, en revanche, évoluent constamment. Ce document examine les récents développements en matière d’ACB environnementale intervenus depuis la publication par l'OCDE d’un ouvrage de Pearce et al. (2006) sur ce sujet. La nature et le sens de ces développements évoluent aussi dans le temps, et la présente étude prend en compte ce processus.
Classification-JEL: H43; Q51; Q53; Q54; Q58
Keywords: analyse coûts-avantages, cost-benefit analysis, environmental policy, politique environnementale, évaluation des politiques
Creation-Date: 2015-12-03
Number: 97
Handle: RePEc:oec:envaaa:97-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Raphaël Jachnik
Author-Workplace-Name: OECD
Author-Name: Victor Raynaud
Author-Workplace-Name: OECD
Title: Sector-level approach to estimating mobilised private climate finance: The case of renewable energy
Abstract: In order to help address climate finance-related information needs under the UNFCCC, this paper explores the extent to which currently-available secondary data make it possible to estimate private finance mobilised by developed countries for climate action in developing countries. This is done by testing the implementation of two approaches: the first one based on an analysis of an investment-related commercial database, and the second one based on the use of publicly-available private finance leverage ratios. Due to data constraints, the focus is on renewable energy as a sub-set of climate mitigation activities. Volumes of private finance estimated as mobilised under the first approach are very partial, due to limitations of the database used, while the second approach results in highly inaccurate extrapolations due to a current lack of empirically-robust publicly-available private finance leverage ratios. These findings highlight the need for improved primary data collection, in particular by public climate finance providers on private co-finance, building upon the recent progress already achieved by a number of bilateral and multilateral development finance institutions. Further, very careful and transparent use should be made of leverage ratios, as they are highly sensitive to both the underlying calculation methods (e.g. in terms of attribution of mobilised private finance among public actors involved), as well as to core characteristics of public finance that result from varying mandates of development agencies and institutions. In any case, amounts of private finance mobilised by public actors and interventions (and ratios that can be calculated on such basis) should not necessarily be interpreted as reflecting their respective abilities to achieve effective and transformational climate action, which requires monitoring of impacts over time.<BR>Afin d’aider à répondre aux besoins d’informations concernant le financement climatique dans le cadre de la CNUCC, ce document explore dans quelle mesure les données secondaires actuellement disponibles rendent possible l’estimation des financements privés mobilisés par les pays développés pour l’action climatique dans les pays en développement. Deux approches sont testées dans ce but : la première faisant usage d’une base de données commerciale de flux d’investissements, et la seconde de ratios d’effet de levier de finance privée rendus publics. Compte tenu des données disponibles, l’étude se concentre sur les énergies renouvelables en tant que sous-ensemble des activités d’atténuation au changement climatique. Les volumes de financement privé estimés comme mobilisés par la première approche sont très partiels du fait des limitations inhérentes à la base de données utilisée, tandis que les extrapolations résultant de la seconde approche sont très inexactes compte tenu du manque actuel de ratios d’effet de levier de finance privée fiables. Ces constats soulignent un besoin de collecte de meilleures données primaires, en particulier par les bailleurs de fonds publics concernant le co-financement privé, en poursuivant les progrès récent déjà réalisés par un certain nombre d’institutions bilatérales et multilatérales de développement. De plus, une utilisation prudente et transparente des ratios d’effet de levier est nécessaire compte tenu de leur grande sensibilité à la méthode de calcul sous-jacente (ex. attribution du financement privé mobilisé entre acteurs publics concernés) et aux caractéristiques clés de la finance publique découlant des différents mandats des agences et institutions de développement. Dans tous les cas, les montants de financement privé mobilisés par les acteurs et interventions publics (ainsi que les ratios pouvant être calculés sur cette base) ne doivent pas être nécessairement interprétés comme reflétant leurs capacités respectives à atteindre des résultats efficaces et transformationnels en termes d’action climatique, ce qui nécessite un suivi des impacts dans le temps.
Classification-JEL: F21; F53; G2; O16; O19; Q42; Q54; Q56
Keywords: changement climatique, climate change, financement privé, leverage, mobilisation, mobilisation, private finance, public interventions, renewable energy, énergie renouvelable
Creation-Date: 2015-12-18
Number: 98
Handle: RePEc:oec:envaaa:98-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alistair Hunt
Author-Workplace-Name: University of Bath
Author-Name: Julia Ferguson
Author-Workplace-Name: University of Cranfield
Author-Name: Fintan Hurley
Author-Workplace-Name: Institute of Occupational Medicine
Author-Name: Alison Searl
Author-Workplace-Name: Institute of Occupational Medicine
Title: Social Costs of Morbidity Impacts of Air Pollution
Abstract: Outdoor air pollution is a major determinant of health worldwide. The greatest public health effects are from increased mortality in adults. However, both PM and O3 also cause a wide range of other, less serious, health outcomes; and there are effects on mortality and morbidity of other pollutants also, e.g. nitrogen dioxide (NO2) and sulphur dioxide (SO2). These adverse health effects have economic consequences; OECD (2014) suggests that the social costs of the health impact of outdoor air pollution in OECD countries, China and India was approximately USD 1.7 trillion and USD 1.9 trillion, respectively, in 2010. However, the study highlights that though the social costs of premature mortality account for the majority of these totals, the social costs of morbidity remain poorly estimated. The objective of this paper is to inform the development of improved estimates of the social costs of human morbidity impacts resulting from outdoor air pollution in two components; namely to develop a core set of pollutant-health end-points to be covered when estimating the costs of morbidity, and to review current estimates of the cost of morbidity from air pollution.
Classification-JEL: I18; Q53; Q58
Keywords: air quality regulation, health impact assessment, non-market valuation
Creation-Date: 2016-01-28
Number: 99
Handle: RePEc:oec:envaaa:99-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Walid Oueslati
Author-Workplace-Name: OECD
Author-Name: Vera Zipperer
Author-Workplace-Name: DIW Berlin
Author-Name: Damien Rousselière
Author-Workplace-Name: University of Angers
Author-Name: Alexandros Dimitropoulos
Author-Workplace-Name: OECD
Title: Exploring the relationship between environmentally related taxes and inequality in income sources: An empirical cross-country analysis
Abstract: This paper presents the first empirical analysis of the macroeconomic relationship between environmentally related taxes and inequality in income sources. The analysis also investigates whether this relationship differs between countries which have implemented environmental tax reforms (ETRs) and ones which have not. Following earlier empirical literature, income inequality is measured by the disposable-income-based Gini coefficient. The analysis is based on a panel of all 34 OECD countries spanning the period from 1995 to 2011. Information about the implementation of ETRS in the examined period is collected through a review of relevant academic and policy literature. Empirical results from econometric models reveal that, on average, there is no statistically significant relationship between the overall share of environmentally related tax revenues in GDP and inequality in income sources. However, the relationship varies with the taxed activity under consideration and the existence of an explicit mechanism to redistribute environmentally related tax revenues. In countries where such mechanisms are absent, energy tax revenues (% of GDP) are shown to have a positive, although modest, relationship with income inequality. In contrast, in countries where energy tax revenues are, at least partially, used to reduce tax burden on income and labour, there is a negative relationship between energy taxes and inequality in income sources. On the contrary, no significant relationship is identified between motor vehicle and other transport tax revenues and income inequality, while revenues from other environmentally related taxes, such as waste and air pollution taxes, are negatively associated with income inequality, regardless of the existence of an explicit revenue recycling mechanism.<BR>Ce rapport présente la première analyse empirique des effets macroéconomiques des taxes liées à l’environnement sur les inégalités de revenus, ainsi que du rôle que des réformes spécifiques de la fiscalité environnementale peuvent jouer dans l’atténuation de ces effets. Les inégalités de revenus sont ici mesurées par le coefficient de Gini fondé sur le revenu disponible. Cette analyse empirique utilise un nouvel indicateur des réformes fiscales environnementales (RFEs) élaboré sur la base de l’information qualitative recueillie par une étude de la littérature. Contrairement aux études empiriques antérieures, ce document explore l’effet des taxes liées à l’environnement et des RFEs sur les sources de revenus des ménages, plutôt que sur les utilisations de ce revenu. Cette analyse repose sur un panel composé des 34 pays de l’OCDE et couvre la période comprise entre 1995 et 2011. Elle montre que la part générale des recettes tirées des taxes liées à l’environnement dans le produit intérieur brut (PIB) présente une corrélation positive avec les inégalités de revenus. Cependant, cet effet varie selon l’activité assujettie. Alors que l’on a démontré que les recettes issues des taxes sur l’énergie affichent une relation positive avec les inégalités de revenus, aucun effet tranché ne se dessine pour les recettes produites par les taxes sur les véhicules à moteur et les transports. En revanche, les recettes générées par les autres taxes liées à l’environnement, comme celles perçues sur les déchets et sur la pollution atmosphérique, affichent une relation négative avec les inégalités de revenus. Les RFEs examinées jouent un rôle important dans l’atténuation des impacts négatifs des taxes liées à l’environnement (principalement celles sur l’énergie). On constate en particulier qu’elles annulent complètement ces impacts. Ce constat vient étayer l’argument selon lequel les effets distributifs des taxes liées à l’environnement ne devraient pas être considérés comme des obstacles insurmontables au recours à ces taxes dans ce champ de l’action publique, car des RFE conçues avec soin et bien ciblées peuvent atténuer les effets éventuels de ces taxes sur les inégalités de revenus.
Classification-JEL: E62; H23; Q48; Q52
Keywords: coefficient de Gini, Energy tax, environmental tax reform, Gini coefficient, income inequality, inégalités de revenu, Réformes fiscales environnementales, Taxe sur l’énergie
Creation-Date: 2016-03-01
Number: 100
Handle: RePEc:oec:envaaa:100-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Anil Markandya
Author-Workplace-Name: Basque Center for Climate Change
Title: Cost benefit analysis and the environment: How to best cover impacts on biodiversity and ecosystem services
Abstract: There are now a large number of valuation studies on the benefits of biodiversity and on ecosystem services, the services provided by different ecosystems (ESS). Both ideas have been used to elicit values from nature but in recent years the research community has focussed on ESS as the main organising framework, with some additional use of the biodiversity concept to value entities that have intrinsic value and are of an extraordinary nature. Estimates are available for the services from most habitats, by type of ecosystem service, usually expressed in USD per hectare per year. Coverage varies by habitat and region, as does the quality of the assessment, but it is possible now to carry out an estimation of changes in values for a number of ecosystem services a result of the introduction of a new policy or of a physical investment that modifies the ecosystem. While this is a positive development, there remain some issues to be resolved. One is the possibility of double-counting of services when using the standard categories of provisioning, regulating/supporting and cultural ESS. Regulating and supporting services are the basis of the provisioning services and so value estimates for the two cannot always be added up. For example, air pollution absorption is often valued using the cost of alternative ways of reducing the pollutants from the atmosphere while recreation is often valued in terms of willingness-to-pay (WTP) through stated preference methods.
Classification-JEL: H43; Q51; Q54; Q57; Q58
Keywords: biodiversity, cost-benefit analysis, ecosystem services, environmental policy
Creation-Date: 2016-03-09
Number: 101
Handle: RePEc:oec:envaaa:101-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alex Bowen
Author-Workplace-Name: Grantham Research Institute on Climate Change and the Environment
Title: Long-Term Productivity Growth and the Environment
Abstract: The natural environment provides crucial inputs and services for economic development, but its role for productivity growth is insufficiently explored. Environmental scarcities can pose a drag on productivity growth and a risk for its sustainability. At the same time productivity growth is often seen as the solution to environmental challenges. Methodological problems abound, overall the literature suggests that environmental issues are a potentially important risk factor. Theoretical models tend to focus the role of resource-augmenting technical progress in the long run, in light of environmental constraints. Macroeconomic studies suggest the contribution of the natural environment to productivity growth has been modest overall. Microeconomic studies focus on partial equilibrium impacts, which in many cases have been found larger than expected. Finally, case-studies of historical civilisation collapses suggest the risks may be significant.<BR>Le milieu naturel fournit des ressources et des services cruciaux pour le développement économique, mais son rôle dans la croissance de la productivité n’est pas suffisamment étudié. Les pénuries de ressources environnementales peuvent engendrer un frein à la croissance de la productivité et un risque pour sa pérennité. Dans le même temps, la croissance de la productivité est souvent considérée comme la solution aux défis environnementaux. Les problèmes méthodologiques abondent, mais dans l'ensemble, les rapports suggèrent que les questions environnementales sont un facteur de risque potentiellement important. Les modèles théoriques ont tendance à se concentrer sur l’impact du progrès technique et l’augmentation des ressources dans le long terme, à la lumière des contraintes environnementales. Les études macroéconomiques suggèrent que la contribution de l'environnement naturel dans la croissance de la productivité a été globalement modeste. Les études microéconomiques quant à elles se concentrent sur les impacts d'équilibre partiel, qui dans de nombreux cas se sont révélés plus importants que prévus. Enfin, des études de cas sur l'effondrement des civilisations historiques suggèrent que les risques peuvent être importants.
Classification-JEL: O13; O44; Q56
Keywords: croissance de la productivité, durabilité, environment, environmental services, environnement, natural resource scarcity, productivity growth, rareté des ressources naturelles, services environnementaux, sustainability
Creation-Date: 2016-04-12
Number: 102
Handle: RePEc:oec:envaaa:102-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Massimiliano Mazzanti
Author-Workplace-Name: University of Ferrara and SEEDS
Author-Name: Davide Antonioli
Author-Workplace-Name: University of Ferrara and SEEDS
Author-Name: Claudia Ghisetti
Author-Workplace-Name: University of Ferrara and SEEDS
Author-Name: Francesco Nicolli
Author-Workplace-Name: University of Ferrara and SEEDS
Title: Firm Surveys relating Environmental Policies, Environmental Performance and Innovation: Design Challenges and insights from Empirical Application
Abstract: This report provides a review of recent firm-level and plant-level surveys containing questions on environmental policies, innovation practices or performance which are relevant for environmental policy analysis and assessment. We specifically focus on the core element that relates environmental policies to environmental and economic performance, namely the adoption of innovative practices and environmental innovations by firms. The study gives an overview of the main literature exploiting surveys, with the aim of discussing main themes and their core limitations to propose advancements for future research. The report provides technical details on surveyed questionnaire implementation, by focusing on to the intrinsic trade-off in the design of alternative questions. It also discusses how environmental policy and its stringency have been measured in previous literature. Finally, it provides suggestions on how to implement a multi-country survey and on other ways to better harness firm-level data in the analysis of effects of environmental policies on business behaviour.
Classification-JEL: C8; D22; Q52; Q55; Q58
Keywords: environmental innovation, environmental policies, firm behaviour, firm surveys, innovation
Creation-Date: 2016-04-12
Number: 103
Handle: RePEc:oec:envaaa:103-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Author-Name: Shunsuke Managi
Author-Workplace-Name: Kyushu University
Author-Name: Miguel Cárdenas Rodríguez
Author-Workplace-Name: OECD
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Hidemichi Fujii
Author-Workplace-Name: Nagasaki University
Author-Name: Martin Souchier
Author-Workplace-Name: École Polytechnique
Title: Environmental Policy Design, Innovation And Efficiency Gains In Electricity Generation
Abstract: This paper explores the relationship between environmental regulation, innovation, and competitiveness, drawing upon a unique dataset on environmental regulations directed at combustion plants, a global dataset of power plants, and a global dataset of ‘environmental’ patents. The analysis is conducted in two stages. First, a nonparametric frontier analysis is implemented to estimate efficiency scores, including a measure of technological innovation based on patent stocks. Second, econometric methods are applied to analyse the role of policy stringency and policy design on efficiency. Our estimation sample covers thermal power plant sectors in 20 countries from 1990 to 2009. The results show that the stringency of environmental regulations is a significant determinant of productive efficiency with respect to pollutant emissions as well as fuel use. However, these effects turn negative once the level of stringency leaps over a certain threshold. In addition, the paper concludes that the positive effect of regulatory stringency can be diminished by a negative effect of regulatory differentiation with measures which are differentiated across plant size and age having negative consequences, and these effects are increasing over time. This finding is important given the prevalence of size- and vintage-differentiated policies in many countries. Finally, it is found that integrated approaches to environmental innovation are more likely to bring about efficiency improvements than end-of-pipe technologies.<BR>Cet article étudie les relations entre réglementation environnementale, innovation et efficacité, en s’appuyant sur un ensemble de données mondiales sur les inventions « environnementales » brevetées et sur les centrales électriques, ainsi que sur un jeu unique de données sur la réglementation environnementale applicable aux installations de combustion. Cette étude comporte deux étapes. Dans un premier temps, des scores d’efficience sont estimés à l’aide d’une analyse non-paramétrique de la frontière efficiente de production, en utilisant notamment des indicateurs d’innovation comme les stocks de brevets. Ensuite, l’impact des politiques environnementales sur ces scores d’efficience est analysé économétriquement. Notre analyse couvre le secteur des centrales thermiques dans 20 pays entre 1990 et 2009. Les résultats montrent que des politiques environnementales contraignantes ont un effet positif sur l’efficacité de la production tant concernant l’émission de polluants que la consommation de carburant. Néanmoins, cet effet devient négatif lorsque la contrainte réglementaire dépasse un certain seuil. Par ailleurs, l’effet positif d’une réglementation contraignante peut être atténué lorsque celle-ci est différentiée en fonction de l’âge ou de la taille de la centrale. Les conséquences négatives d’une telle différentiation se font alors souvent sentir à long terme. Compte tenu de la prédominance d’une telle approche dans de nombreux pays, ce constat invite à une refonte des politiques environnementales en matière de limitation des émissions polluantes. Enfin, il est également constaté que des innovations environnementales intégrées (modifiant l’ensemble de la chaine de production) ont un impact plus important sur l’efficacité de la production que les innovations de fin de processus.
Classification-JEL: O33; Q48; Q55
Keywords: différentiation de la réglementation, directional distance function, efficience productive, environmental innovation, fonction de distance directionnelle, innovation environnementale, policy design, productive efficiency, regulatory differentiation, élaboration des politiques
Creation-Date: 2016-04-14
Number: 104
Handle: RePEc:oec:envaaa:104-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Mikaël Klintman
Author-Workplace-Name: Lund University
Title: A Review of Public Policies relating to the Use of Environmental Labelling and Information Schemes (ELIS)
Abstract: This report provides a brief review of how national government policies and guidelines apply to or regulate the use of environmental labelling and information schemes (ELIS) in selected OECD countries. The report reviews definitions relevant to environmental claims and identifies four types of potentially false or misleading environmental claims. The report also reviews countries’ different approaches to guidance and regulations relating to such claims, as well as approaches to monitoring and enforcement of compliance with rules and guidance. Examples of court action relating to the use of consumer protection laws for environmental claims in several countries are described. Based on the reports available, it is not possible to assess to what extent the enforcement processes have been effective in improving the overall quality of environmental claims. The report also notes the extensive similarities in how different national guidelines categorise misleading environmental claims, perhaps beacuase many of the guidelines are derived in part from the International Organization for Standardization’s (ISO) 14020 series of internationally-agreed standards. Moreover the report acknowledges that several attempts have been made towards harmonisation across countries concerning environmental criteria, mainly concerning eco-labelling schemes and organic agriculture standards. There appear to be strong incentives for this type of cross-country certification, including reduced administrative costs and a potential for increased trade of environmentally-certified goods. This makes further harmonisation of criteria for self-reported environmental claims a real possibility. The ongoing pursuit of harmonisation regionally, or bilaterally, might be a first step forward in such a process.<BR>Le présent rapport décrit brièvement la façon dont les politiques publiques et les directives nationales encadrent et réglementent l’utilisation des dispositifs d'éco-étiquetage et d'information environnementale (DEIE) dans certains pays de l’OCDE. Le rapport s’intéresse pour commencer à la façon dont les directives et réglementations abordent la terminologie des allégations environnementales. Il distingue quatre grands types d’allégations environnementales potentiellement inexactes ou trompeuses, et examine les directives et réglementations mises en place par les différents pays dans ce contexte. Le rapport decrit aussi les mesures appliquées par les autorités dans différents pays pour contrôler la validité des allégations écologiques d’entitées privées. Des exemples d’actions en justice engagées dans plusieurs pays autour d’allégations environnementales sont décrits. Pourtant, les rapports dont on dispose ne permettent pas d’évaluer dans quelle mesure les procédures de vérification ont permis d’améliorer la qualité générale des allégations environnementales. Le rapport note en outre que les directives nationales présentent de nombreuses similitudes. Ces similitudes tiennent sans doute au fait que les directives gouvernementales s’inspirent souvent de la série de normes ISO 14020 de l’Organisation Internationale de Normalisation. Le rapport évoque aussi plusieurs tentatives d’harmonisation des critères environnementaux entre pays. Il existe, semble-t-il, d’importantes incitations en faveur de ce type de certification internationale, notamment la possibilité de bénéficier de coûts administratifs réduits et de développer les échanges de produits certifiés. Il devient donc réellement possible d’harmoniser également les critères applicables aux autodéclarations environnementales. Les efforts déployés pour poursuivre l’harmonisation régionale, ou bilatérale, pourrait marquer un premier pas dans cette direction.
Classification-JEL: F18; L15; Q56; Q58
Keywords: Allégations environnementales, Eco-labels, Ecolabels, empreintes environnementales des produits, Environmental claims, environmental reporting, information policy approaches, politique d’approches informationnelles, product environmental footprints, rapports environnementaux
Creation-Date: 2016-04-23
Number: 105
Handle: RePEc:oec:envaaa:105-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Andrew Prag
Author-Workplace-Name: OECD
Author-Name: Thomas Lyon
Author-Workplace-Name: University of Michigan
Author-Name: Aimée Russillo
Author-Workplace-Name: Liseed Consulting
Title: Multiplication of Environmental Labelling and Information Schemes (ELIS): Implications for Environment and Trade
Abstract: This report explores potential effects of the recent rapid growth in Environmental Labelling Information Schemes (ELIS) around the world, with a focus on the implications of ELIS multiplication for environmental effectiveness and international trade. As empirical work on the environmental effects of ELIS multiplication is just beginning to appear, insights from the theoretical literature on label competition are presented. Modelling suggests that competition between labels may reduce environmental performance relative to a single label with strict environmental goals, though stylised modelling may not accurately reflect the complex real-world interactions of schemes. The analysis is complemented with an overview of empirical studies on environmental effects, including evidence that label competition has led to market-driven convergence of standards in some sectors, such as forest certification. However, it is important that convergence leads to more holistic and streamlined ELIS rather than acting as a weakening influence on the stringency and quality of standards or how schemes are implemented, to maximise environmental effectiveness. Multiplication of ELIS could have implications for the ways that labelling schemes interact with international trade, particularly in terms of market access and international competitiveness. Although difficult to demonstrate empirically, the conditions that could lead to such effects are described conceptually in the report, noting particularities of certain types of schemes such as quantitative footprints. The report also documents a range of ways that government and non-government bodies have responded to ELIS multiplication, such as mutual recognition of schemes and creation of “focal” schemes or standards that can lead to market convergence. Such responses could also alter trade effects of ELIS under certain conditions, for example if a particular voluntary scheme becomes sufficiently dominant in a country to be perceived as a “de facto” market entry requirement by suppliers in other countries.<BR>L’objet du présent document est d’étudier les retombées potentielles de la multiplication des dispositifs d’éco-étiquetage et d’information environnementale (DEIE) observée depuis peu dans le monde, en particulier du point de vue de l’efficacité environnementale et du commerce international. Comme il y a peu d’études empiriques sur la multiplication des DEIE, les résultats des travaux de modélisation théoriques concernant la mise en concurrence des dispositifs sont présentés. D’après les exercices de modélisation théorique, la concurrence entre labels peut réduire la performance environnementale par rapport à un label unique visant des objectifs strictement environnementaux. Cependant, le caractère simplifié des modèles employés et la complexité du paysage dans lequel évoluent les DEIE limitent certainement l’intérêt de la modélisation pour la définition de l’action à mener. L’analyse est complétée par une revue d’études empiriques sur l’efficacité environnementale des DEIE. La concurrence entre labels semble entraîner sur la durée une uniformisation et une convergence des normes tirée par le marché, par exemple, dans le secteur de la certification forestière. Pour que les bienfaits écologiques soient optimaux, il importe que la convergence ne mène pas à l’abaissement du niveau d’exigence et de la qualité des normes utilisées. La multiplication des DEIE pourrait influer sur leur lien avec le commerce international, en particulier en ce qui concerne l’accès au marché et la compétitivité internationale. Bien que ces effets soient difficiles à démontrer à partir de données empiriques, le rapport décrit les conditions en principe susceptibles de conduire à ces effets. Les particularités de certains types de dispositif dans ce regard sont notés, comme par exemple les labels « enceintes ». Le rapport s’intéresse également aux actions prise par les acteurs gouvernementaux et non gouvernementaux pour rendre le marché des DEIE cohérent et prévisible. Ces actions comprennent, par exemple, des accords de reconnaissance mutuelle ou la création de normes ou labels de « référence ». Ces actions peuvent également mener une influence sur le commerce international, par exemple si un dispositif d’application facultative gagne un part de marché qui semble constituer un critère de facto d’entrée sur le marché.
Classification-JEL: F18; L15; Q56; Q58
Keywords: Eco-labels, Ecolabels, empreintes environnementales des produits, environmental reporting, information policy approaches, politique d’approches informationnelles, product environmental footprints, rapports environnementaux, trade and environment
Creation-Date: 2016-04-25
Number: 106
Handle: RePEc:oec:envaaa:106-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jeff Manuel
Author-Workplace-Name: South African National Biodiversity Institute (SANBI)
Author-Name: Kristal Maze
Author-Workplace-Name: South African National Biodiversity Institute (SANBI)
Author-Name: Mandy Driver
Author-Workplace-Name: South African National Biodiversity Institute (SANBI)
Author-Name: Anthea Stephens
Author-Workplace-Name: South African National Biodiversity Institute (SANBI)
Author-Name: Emily Botts
Author-Workplace-Name: South African National Biodiversity Institute (SANBI)
Author-Name: Azisa Parker
Author-Workplace-Name: South African National Biodiversity Institute (SANBI)
Author-Name: Mahlodi Tau
Author-Workplace-Name: South African National Biodiversity Institute (SANBI)
Author-Name: John Dini
Author-Workplace-Name: South African National Biodiversity Institute (SANBI)
Author-Name: Stephen Holness
Author-Workplace-Name: South African National Biodiversity Institute (SANBI)
Author-Name: Jeanne Nel
Author-Workplace-Name: South African National Biodiversity Institute (SANBI)
Title: Key Ingredients, Challenges and Lessons from Biodiversity Mainstreaming in South Africa: People, Products, Process
Abstract: This paper provides an in-depth review of experiences and insights from mainstreaming biodiversity and development in South Africa. More specifically, it describes how biodiversity considerations have been mainstreamed in five key sectors/areas, namely: land use planning, mining, water, infrastructure, and the agricultural sector. It discusses the types of barriers and challenges that have been encountered, the key ingredients and lessons learned to help ensure more effective biodiversity mainstreaming, and the role of development co-operation in supporting in mainstreaming in South Africa. Examples of the key elements of success include good science, the ability to harness windows of opportunity, and ensuring genuine links to development objectives.<BR>Ce document présente un tour d'horizon détaillé des expériences et des éclairages apportés par l'intégration transversale de la biodiversité et du développement en Afrique du Sud. Plus précisément, il décrit la façon dont les considérations de biodiversité ont été systématiquement prises en compte dans cinq secteurs ou domaines clés, à savoir : l'aménagement de l'espace, l'exploitation minière, l'eau, les infrastructures et le secteur agricole. Il examine les types d'obstacles rencontrés et de défis relevés, les principaux ingrédients et enseignements susceptibles de favoriser une transversalisation plus efficace de la biodiversité, ainsi que l'appui pouvant être apporté par la coopération pour le développement à l'intégration transversale en Afrique du Sud. Parmi les principaux facteurs de réussite cités en exemple figurent une bonne base scientifique, l'aptitude à tirer parti des occasions propices et l'instauration de liens véritables avec les objectifs de développement.
Classification-JEL: F3; Q1; Q56; Q57
Keywords: biodiversity conservation, conservation de la biodiversité, développement durable, ecological economics, ecosystem services, Finances infranationales, international finance, services écosystémiques, sustainable development, économie de l’écologie
Creation-Date: 2016-05-03
Number: 107
Handle: RePEc:oec:envaaa:107-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Anna Alberini
Author-Workplace-Name: University of Maryland
Author-Name: Andrea Bigano
Author-Workplace-Name: Fondazione Eni Enrico Mattei (FEEM)
Author-Name: Jessica Post
Author-Workplace-Name: University of Maryland
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Title: Approaches and issues in valuing the costs of inaction of air pollution on human health
Abstract: This paper presents a review of existing approaches to estimate the costs of inaction, as well as the benefits of policy action, for air pollution. It focuses primarily on health impacts from air pollution. The paper presents the “impact pathway approach”, which includes various steps in the analysis of the costs of air pollution. These include quantifying emissions, calculating the concentrations of the pollutants, applying epidemiologic studies to calculate the physical health effects and applying valuation methods to calculate the economic costs of the health impacts. The report also reviews applications of the impact pathway approach to applied economic studies that aim at calculating the macroeconomic costs of air pollution. It proposes possible approaches for including the feedbacks from the health impacts of air pollution in an applied economic framework. While ideally this requires serious modifications of the modelling frameworks and an improvement of the available empirical results, some impacts, such as changes in health expenditures and labour productivity, can easily been incorporated, following the literature on the economic costs of the health impacts of climate change.<BR>Ce document présente une revue des études existantes qui estiment les coûts de l'inaction, ainsi que les effets bénéfiques de l'action politique, relatif à la pollution de l'air. Il se concentre principalement sur les impacts de la pollution atmosphérique sur la santé. Le document présente l'approche qui se base sur une "analyse de voies d'impact” et ses différentes étapes. Il s’agit notamment de quantifier les émissions, de calculer des concentrations de polluants, d’appliquer les résultats des études épidémiologiques pour calculer les effets sur la santé physique et des méthodes d'évaluation pour calculer les coûts économiques des impacts sur la santé. Le rapport passe également en revue les applications de l'analyse de voies d'impact dans les études économiques appliquées qui calculent les coûts macroéconomiques de la pollution de l'air. Il propose des stratégies possibles pour inclure une évaluation des impacts de la pollution de l'air sur la santé dans un modèle économique appliquée. Bien qu'idéalement cela nécessite des modifications importantes des cadres de modélisation et une plus grande disponibilité des résultats empiriques, certains impacts tels que les changements de dépenses de santé et de productivité du travail peuvent facilement être incorporés en se basant sur la littérature sur les coûts économiques des impacts sur la santé liés au changement climatique.
Classification-JEL: C68; O44; Q15; Q25
Keywords: CGE model, economic growth, water scarcity, water use
Creation-Date: 2016-06-07
Number: 108
Handle: RePEc:oec:envaaa:108-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Thomas W. Hertel
Author-Workplace-Name: Purdue University
Author-Name: Jing Liu
Author-Workplace-Name: Purdue University
Title: Implications of water scarcity for economic growth
Abstract: Global freshwater demand is projected to increase substantially in the coming decades, making water one of the most fiercely contested resources on the planet. Water is linked to many economic activities, and there are complex channels through which water affects economic growth. The purpose of this report is to provide background information useful for a quantitative global assessment of the impact of water scarcity on growth using a multi-region, recursive-dynamic, Computable General Equilibrium (CGE) model. The paper provides a detailed review of the literature on water, water scarcity, sectoral activity and economic growth, and identifies the possibilities and bottlenecks in incorporating water use into a CGE framework. It covers agricultural water consumption, with special attention to irrigation, water use in energy production, and demands for water by households, industry and services. Finally, it discusses water supply and allocation. Based on the evidence assembled, there appear to have been relatively few instances in which water scarcity has significantly slowed the long term rate of national economic growth. Furthermore, in reviewing the literature on water demand, the ample opportunities for conserving water across the board are striking, including in the electric power sector, the production of industrial steam, residential consumption, and irrigated agriculture. In our opinion, the main reason why such substitution has not been more widespread to date is due to the absence of economic incentives for conservation. The presence of large inter-sectoral distortion heightens the need for general equilibrium analysis. But implementation of a global CGE model with detailed representation of water demand and supply will be a significant undertaking. It is essential to break out water from the other inputs in the CGE model, treat water as both an input and an output, and add sectoral detail, with special attention to crop irrigation. Furthermore, there are challenges in assigning appropriate values to water and specifying allocation rules for dealing with water scarcity.<BR>La demande mondiale d’eau douce devrait augmenter de manière substantielles dans les prochaines décennies, faisant de l’eau l’une des ressources les plus disputées de la planète. L’eau est liée à toutes les activités économiques et affecte la croissance par de multiples canaux. Le but de ce rapport est de donner les éléments de fond qui sont utiles à la mise en place d’une évaluation globale de l’impact de la rareté en eau sur la croissance économique dans un modèle d’équilibre général calculable (EGC) multi-périodes et multi-régions. Ce papier fournit une revue détaillée de la littérature sur l’eau, la rareté en eau, l’activité sectorielle et la croissance économique; et identifie les possibilités et les goulots d’étranglement en incorporant l’utilisation de l’eau dans le cadre d’un EGC. Il couvre la consommation d’eau pour l’agriculture, avec une attention particulière pour l’irrigation, ainsi que l’utilisation de l’eau pour la production d’énergie, et la demande d’eau des ménages, de l’industrie et des services. Enfin, il discute du problème de la fourniture d’eau et de son allocation. Sur la base des éléments rassemblés, il semble qu’il y ait eu relativement peu d’exemples où la rareté en eau ait ralenti significativement le taux de croissance économique de long terme. De plus, en considérant la littérature sur la demande en eau, il est frappant de voir les grandes opportunités qui existent pour économiser l’eau, notamment dans les secteurs de la production d’électricité, de vapeur pour l’industrie, dans la consommation résidentielle et l’agriculture irriguée. Selon nous, la principale raison pour laquelle une telle substitution ne s’est pas diffusée jusqu’à présent est liée à l’absence d’incitations économiques à utiliser moins d’eau. L’existence de larges distorsions entre les secteurs rend hautement nécessaire une analyse d’équilibre général. Mais la mise en place d’un modèle EGC mondial avec une représentation détaillée de l’offre et de la demande d’eau sera une entreprise importante. Il est essentiel de séparer l’eau des autres inputs de l’EGC, de traiter l’eau à la fois comme un input et un output, et d’ajouter du détail sectoriel, avec une attention spécifique portée sur les cultures irriguées. De plus, il y a des défis à relever pour donner à l’eau une valeur dans le modèle et pour spécifier les règles d’allocation en cas de rareté.
Classification-JEL: C68; O44; Q15; Q25
Keywords: CGE model, croissance économique, demande d’eau, economic growth, modèle EGC, rareté en eau, water scarcity, water use
Creation-Date: 2016-08-09
Number: 109
Handle: RePEc:oec:envaaa:109-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Julien Salanié
Author-Workplace-Name: Jean Monnet University, Saint-Etienne
Author-Name: Thomas Coisnon
Author-Workplace-Name: AgroCampus Ouest
Title: Environmental Zoning and Urban Development: Natural Regional Parks in France
Abstract: This study provides an empirical analysis of the effects of environmental zoning on urban development. It focuses on the case of Natural Regional Parks (NRPs) in France. Of the environmental zoning instruments used in France, NRPs extend over the widest physical area. The analysis uses a quasi-experimental empirical approach (difference-in-differences) to evaluate the effects of NRPs on urban development at the municipality level. Three potential side-effects of NRPs on urban development in the regulated area are investigated. First, the long-term effects of environmental zoning on housing and population flows are analysed using French National Census data in the period from 1968-2011. Second, annual data on building permits granted in the period from 2003-2012 are used to estimate the short-term effects of NRPs on housing supply. Finally, the effects of NRPs on land-use in the regulated area using high-resolution geospatial data are evaluated. The results of the empirical analysis reveal that NRPs have had heterogeneous effects on urban development in regulated areas. Compared to development in neighbouring areas, some NRPs have discouraged urban development in the regulated area, in line with their intended objectives. However, in other cases NRPs have actually favoured urban development. In most cases, however, the policy had no significant effect on urban development within the regulated area.
Classification-JEL: Q24; Q26; R14
Keywords: Environmental zoning, Natural regional parks, urban development
Creation-Date: 2016-08-25
Number: 110
Handle: RePEc:oec:envaaa:110-EN

Template-type: ReDIF-Paper 1.0
Author-Name: David Benatia
Author-Name: Tomasz Koźluk
Title: The Determinants of Entry in The Electricity Generation Sector in OECD Countries: A Focus on Renewable Energy
Abstract: Ease of entry is crucial to well-functioning electricity markets. This paper investigates the patterns of entry in the generation segment of the electricity industry of OECD countries and seeks to provide an understanding of their key determinants. It aims to derive implications for the design of policies aimed at spurring competition under significant renewable policy objectives. The analysis focuses on investments in renewable-based electricity generation in all OECD countries over the period 1990-2007. Hypotheses drawn from the literature are tested empirically with using a panel data set based on UDI’s World Electric Power Plant Database. Findings suggest that the likelihood and the volume of entry in renewable-based power generation technologies are significantly affected by industry regulation, renewable support policies, local structural industry characteristics, such as concentration, sectoral expansion and the share of renewable-based capacity already present in the host country. Finally, micro-level factors such as the size of the (parent) firm, its experience with renewables, and whether it is a utility company, are found to significantly affect firm-level investment and entry decisions.<BR>La facilité d’entrée sur les marchés de l’électricité est cruciale pour leur bon fonctionnement. Ce rapport étudie les schémas d’entrée dans le segment « production » du secteur de l’électricité dans les pays de l’OCDE, et s’efforce d’en élucider les principaux déterminants. Il vise à en tirer les conséquences pour la conception de politiques destinées à stimuler la concurrence en tenant compte d’objectifs ambitieux concernant les énergies renouvelables. L’analyse s’intéresse principalement aux investissements dans les moyens de production électrique renouvelables de tous les pays de l’OCDE sur la période 1990-2007. Des hypothèses tirées d’une revue de la littérature sont testées empiriquement en appliquant divers modèles économétriques à des jeux de données de panel provenant, pour l’essentiel, de la base de données World Electric Power Plant Database de l’Utility Data Institute (UDI). Les résultats obtenus permettent de conclure que de nombreux facteurs affectent la probabilité d’entrée sur le marché et le volume de ces entrées dans la production d’électricité renouvelable au niveau régional, notamment la réglementation du secteur, les politiques de soutien aux renouvelables, l’innovation, l’expansion sectorielle et la part de puissance installée reposant sur les renouvelables dans le pays concerné. Enfin, il apparaît que certains facteurs au niveau microéconomique, par exemple la taille de l’entreprise, son expérience dans le domaine des énergies renouvelables ou le fait qu’elle soit ou non une compagnie d’électricité, exercent une influence considérable sur les investissements au niveau des entreprises et les décisions d’entrée.
Classification-JEL: Q40; L10; L94
Keywords: competition, Electricity generation, electricity market liberalisation, energy policy, market entry, market structure, regulation, renewable energy
Creation-Date: 2016-12-15
Number: 111
Handle: RePEc:oec:envaaa:111-EN

Template-type: ReDIF-Paper 1.0
Author-Name: JunJie Wu
Author-Workplace-Name: Oregon State University
Author-Name: Walid Oueslati
Author-Name: Jialing Yu
Author-Workplace-Name: Oregon State University
Title: Causes and Consequences of Open Space in U.S. Urban Areas
Abstract: The provision of open space is at the heart of a complex arbitration of local public finance and urban quality of life. The amount of open space varies substantially across urban areas. This variation raises some natural questions: What determines the amount of open space in an urban area? How does the amount of open space affect housing prices and local tax revenues? How can we assess whether the amount of open space in urban areas is socially optimal? This paper conducts theoretical and empirical analysis to address these issues. The theoretical analysis reveals that price elasticities of housing demand and supply, economies of scale in providing public services, and capitalized and non-capitalized values of environmental benefits from open space are key parameters affecting the optimal amount of open space. The effects of these parameters are tested on the basis of a sample of U.S. urban areas. Empirical results suggest that a significant share of U.S. urban areas has too little open space, in the sense that additional open space conservation could increase land values and social welfare.<BR>L’offre des espaces ouverts en milieu urbain est au coeur d’un complexe arbitrage entre les finances publiques locales et la qualité de la vie. Les surfaces dédiées aux espaces ouverts varient considérablement à travers les aires urbaines. Cette variabilité soulève naturellement plusieurs questions : quels sont les déterminants de cette offre ? Comment la mise en place des espaces verts affecte les prix des logements et les recettes fiscales locales ? Comment peut-on évaluer si l’offre des espaces verts est socialement optimale ? Ce papier conduit des analyses théorique et empirique pour répondre à ces questions. L’analyse théorique révèle que les élasticités prix de l’offre et de demande des logements, les économies d’échelle liées aux services publics, ainsi que les valeurs, capitalisée ou non, des bénéfices environnementaux sont les facteurs clés pour déterminer le niveau optimal des espaces ouverts. Les effets de ces paramètres ont été empiriquement testés sur la base d’un échantillon d’aires urbaines américaines. Les résultats empiriques suggèrent qu’une part significative des aires urbaines américaine dispose de peu d’espaces ouverts. Ainsi une offre supplémentaire peut accroître la valeur des terres et le bien-être social.
Classification-JEL: H4; Q2; R3
Keywords: environmental amenities, land values, local public finances, Open space conservation
Creation-Date: 2016-12-20
Number: 112
Handle: RePEc:oec:envaaa:112-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alexandros Dimitropoulos
Author-Workplace-Name: OECD
Author-Name: Walid Oueslati
Author-Workplace-Name: OECD
Author-Name: Christina Sintek
Author-Workplace-Name: OECD
Title: The Rebound Effect in Road Transport: A Meta-analysis of Empirical Studies
Abstract: The rebound effect is the phenomenon underlying the disproportionality between energy efficiency improvements and observed energy savings. This paper presents a meta-analysis of 76 primary studies and 1138 estimates of the direct rebound effect in road transport to synthesise past work and inform ongoing discussions about the determinants and magnitude of the rebound effect. The magnitude of rebound effect estimates varies with the time horizon considered. On average, the direct rebound effect is around 12% in the short run and 32% in the long run. Indirect and macroeconomic effects would come on top of these estimates. Heterogeneity in rebound effect estimates can mainly be explained by variation in the time horizon considered, the elasticity measure used and the econometric approach employed in primary studies, and by macro-level economic factors, such as real income and gasoline prices. In addition to identifying the factors responsible for the variation in rebound effect estimates, the meta-regression model developed in this paper can serve as a relevant tool to assist policy analysis in contexts where rebound effect estimates are missing.<BR>L'effet de rebond est un phénomène qui sous-tend la disproportionnalité entre les améliorations de l'efficacité énergétique et les économies d'énergie observées. Ce papier présente une méta-analyse de 76 études primaires et 1138 estimations de l'effet de rebond direct dans le transport routier pour synthétiser les travaux passés et informer les discussions en cours sur les déterminants et l'ampleur de l'effet de rebond. L'ampleur des estimations de l'effet de rebond varie selon l'horizon temporel considéré. En moyenne, l'effet de rebond est d'environ 12% à court terme et 32% à long terme. Les effets indirects et macroéconomiques viendront s'ajouter à ces estimations. L'hétérogénéité des estimations de l'effet de rebond s'explique principalement par la variation de l'horizon temporel considéré, la mesure d'élasticité utilisée et l'approche économétrique déployée dans les études primaires, ainsi que par des facteurs macroéconomiques tels que le revenu réel et les prix de l'essence. En plus de l'identification des facteurs responsables de la variation des estimations des effets de rebond, la méta-régression, développée dans ce papier, fournit un outil pertinent pour analyser les politiques en vigueurs dans les contextes où les estimations de l'effet rebond sont manquantes.
Classification-JEL: D12; R48; Q48; Q58; R41; Q41
Keywords: fuel efficiency, gasoline price, meta-analysis, Rebound effect, road transport
Creation-Date: 2016-12-20
Number: 113
Handle: RePEc:oec:envaaa:113-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Pierre Strosser
Author-Workplace-Name: ACTeon
Author-Name: Gloria De Paoli
Author-Workplace-Name: ACTeon
Author-Name: Tatiana Efimova
Author-Workplace-Name: OECD
Title: The Potential Benefits of Transboundary Co-operation in Georgia and Azerbaijan: Kura River Basin
Abstract: This study was one of the first attempts to evaluate and quantify the benefits of transboundary co-operation between Georgia and Azerbaijan. A specific framework for inventorying these benefits, taking into account all the different dimensions of transboundary water management, was built and applied to the major transboundary water bodies. Though a thorough assessment of the costs and benefits of transboundary co-operation in the two selected cases was not possible due to the lack of some quantitative and economic data, the assessment results highlighted the importance of promoting the integration of economic thinking in transboundary water management. The present and future prospects for transboundary co-operation on water management are still very positive: the two countries are working on a Transboundary Agreement, which will provide the necessary regulatory framework for co-operation and, most importantly, will set up a Joint Commission on Sustainable Use and Protection of the Kura River Basin. The outcomes of this study allowed for the identification of priorities for future work on transboundary co-operation between Georgia and Azerbaijan, and namely, support to developing guidelines on mechanisms to update databases, but also on new tools and systems.
Classification-JEL: D78; Q15; Q25; Q28
Keywords: benefits of water cooperation, economic instruments, river basin, trans-boundary water management, water policy
Creation-Date: 2017-01-24
Number: 114
Handle: RePEc:oec:envaaa:114-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Meleesa Naughton
Author-Name: Nicole DeSantis
Author-Name: Alexandre Martoussevitch
Author-Workplace-Name: OECD
Title: Managing multi-purpose water infrastructure: A review of international experience
Abstract: In this paper, the term multi-purpose water infrastructure (MPWI) encompasses all man-made water systems, including dams, dykes, reservoirs and associated irrigation canals and water supply networks, which may be used for more than one purpose (for economic, social and environmental activities). While MPWI plays a significant role in the socio-economic development and ensuring water, food and energy security of many countries (not least in water-stressed Central Asia), many MPWI projects face various challenges. These including unsustainability of business models for financing, operation and maintenance, lower-than-expected performance or the emergence of unforeseen risks and negative externalities. This paper explores the complexity in designing, financing, regulating and managing MPWI projects, with the objective to inform policy and decision-making. It attempts to identify key issues related to managing MPWI, lessons learned from international experience and possible solutions to the challenges. It examines several principles, approaches and instruments to enhance the sustainability of MPWI, drawing on international experience. Finally, the paper identifies knowledge and experience gaps, needs for further research and possible areas of future work.
Classification-JEL: D62; Q15; Q18; Q25
Keywords: externalities, multi-purpose water infrastructure, nexus, water management
Creation-Date: 2017-02-18
Number: 115
Handle: RePEc:oec:envaaa:115-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Anna Alberini
Author-Workplace-Name: University of Maryland
Title: Measuring the economic value of the effects of chemicals on ecological systems and human health
Abstract: This paper reviews and discusses the existing methods for placing a value on the effects of chemicals on human health and the environment. It surveys both methods and non-market methods, discussing their advantage and limitations. For example, when valuing non-fatal illnesses, the cost-of-illness approaches captures labour income lost to illness and medical expenditures undertaken to mitigate the illness, but fails to account for the value of the disutility of the illnesses. The paper also discusses mortality risk valuation, and the widely used metric termed the Value of a Statistical Life, the difficulties associated with estimating it, and the appropriateness of any adjustments for futurity, age, and the nature of the risk itself. Finally, the paper takes up the issue whether the source of the health risks (e.g., chemicals versus other forms of pollution versus others) affects how much the public values reducing those risks.
Classification-JEL: D61; J17; K32; Q51; Q53; Q57; Q58
Keywords: economic valuation, monetised benefits, non-market valuation, regulation of chemicals, toxics
Creation-Date: 2017-03-02
Number: 116
Handle: RePEc:oec:envaaa:116-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Weihsueh A. Chiu
Author-Workplace-Name: Texas A&M University
Title: Chemical risk assessment and translation to socio-economic assessments
Abstract: The purpose of this working paper is to review existing chemical risk assessment methods in the context of supporting socio-economic cost-benefit analysis, focusing on more “typical” risk assessments that may not have strong epidemiologic data and/or were not originally designed to support socio-economic analyses. A number of case studies of such “typical” chemical risk assessments were reviewed with respect to their suitability for supporting socio-economic analyses.
Classification-JEL: I18; Q51; Q53; Q57; Q58
Keywords: causal inference, cost-benefit analysis, dose-response, environmental policy, population health, risk assessment, uncertainty, viarability
Creation-Date: 2017-03-14
Number: 117
Handle: RePEc:oec:envaaa:117-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Susan E. Dudley
Author-Workplace-Name: George Washington University
Title: Retrospective evaluation of chemical regulations
Abstract: OECD countries rely on regulatory tools to manage potential risks from exposure to targeted chemicals. Ex-ante regulatory impact assessment has a long tradition in many OECD countries, with established analytical steps and oversight as well as opportunities for public engagement to hold governments accountable for conducting analysis before regulations are issued. But ex-ante analyses necessarily depend on unverifiable assumptions and models of how the world would look absent the regulation, and how responses to regulatory requirements will alter those conditions. In essence, ex-ante analyses are hypotheses of the effects of regulatory actions. Better ex-post regulatory evaluation would allow agencies and others to test those hypotheses against actual outcomes. This would not only inform decisions related to the cost-effectiveness of existing policy, but would provide feedback that would improve future ex-ante analyses and future policies. However, ex-post analysis also poses challenges, especially when it comes to chemical risks. Once a regulation is in place, it is not always obvious what the world would have looked like without it. Measuring opportunity costs is not easy, and measuring regulatory benefits is often harder. Furthermore, once a regulation is in place, neither regulators nor regulatory entities have strong incentives for examining its actual impact. As a result of these methodological and incentive challenges, while ex-post evaluation has a long tradition in other areas (particularly in programmes financed through the fiscal budget), it has received little attention (and even fewer resources) in the regulatory arena, despite government guidelines requiring it. This paper attempts to address these challenges to evaluating regulatory outcomes and learning from those evaluations. Drawing on experience in OECD countries, it reviews the practices used to understand the likely impacts of regulations aimed at reducing chemical risks both before and after they are issued. It examines why efforts at retrospective review have lagged behind prospective regulatory analysis, and offers recommendations for addressing methodological and incentive challenges to better evaluation.
Classification-JEL: D78; D81; Q5; Q51; Q52; Q58
Keywords: benefit-cost analysis, chemical risk, environmental impact analysis, evaluation, regulations, regulatory impact analysis, retrospective review
Creation-Date: 2017-03-14
Number: 118
Handle: RePEc:oec:envaaa:118-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ståle Navrud
Title: Possibilities and challenges in transfer and generalisation of monetary estimates for environmental and health benefits of regulating chemicals
Abstract: This paper reviews and discusses existing methodologies for transferring and extrapolating the economic value of health and environmental impacts across chemicals, and identifies challenges with such value transfer and when it can be suitable. The value transfer methodologies describes can be used to estimate the economic benefits of chemical management regulatory frameworks as a whole, as well as in cost-benefit analyses (CBAs) of risk management measures for individual chemicals. For economic valuation of mortality risks from chemicals, the OECD database of Stated Preference (SP) studies of Value of Statistical Life (VSL) , which should be continuously updated with new valuation studies, has a sufficient number of primary studies internationally to conduct value transfer using meta-analytic regressions. However, the empirical evidence on acute and chronic morbidity endpoints, especially concerning all costs components of chronic illnesses, seems to be scarce. The same is true for chemical-related environmental impacts, especially related to ecosystem services, for the multitude of chemicals. Thus, the main methodological and informational challenge for valid value transfer of environmental and health impacts from chemical regulations seems to be new primary valuation studies of morbidity and ecosystem services impacts caused by exposure to (groups of) chemicals. These new primary valuation studies should be designed with value transfer in mind, and cover several countries, in order to extrapolate and generalise the economic values to evaluate international chemical regulations in CBAs. These new primary studies should ideally cover all relevant scales of the impacts, in order to develop generalised adjustment factors for differences in scale of the impacts between the study sites and the policy site. This would improve the spatial transfer of values. The same is true for the combination of Geographical Information System (GIS) data with existing primary studies of impacts at different scales. Furthermore, these new primary studies should be repeated over time in order to provide more information about how values for the relevant impacts change over time; as preferences, scarcity of the public good and the real income of the affected population change. This would improve temporal transfer.
Classification-JEL: J17; Q51; Q53; Q57
Keywords: benefit transfer, chemicals regulations, exosystem services, health benefits, value transfer
Creation-Date: 2017-03-13
Number: 119
Handle: RePEc:oec:envaaa:119-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Gisela Campillo
Author-Name: Michael Mullan
Author-Name: Lola Vallejo
Title: Climate Change Adaptation and Financial Protection: Synthesis of Key Findings from Colombia and Senegal
Abstract: Developing countries are disproportionately affected by the rising trend of losses from climate-related extreme events. These losses are projected to continue to increase in future, driven by climate change and the accumulation of people and assets in high-risk areas. Effective climate change policies are needed to reduce the accumulation of risk, combined with instruments and tools to help retain, share or transfer financial losses if an extreme event occurs. These tools and instruments, collectively known as financial protection, can help people cope with the impacts of climate-related disasters, reduce costs of recovery and reconstruction, and encourage risk reduction. Linking financial protection and climate adaptation in development planning and policy has the potential to increase the resilience of affected communities.This paper uses case studies of Colombia and Senegal to examine how countries are using financial protection as part of their approaches to managing climate risks. The paper identifies emerging
Classification-JEL: F35; G22; H84; O19; Q54
Keywords: adaptation, climate change, insurance, risk management
Creation-Date: 2017-04-07
Number: 120
Handle: RePEc:oec:envaaa:120-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Lola Vallejo
Author-Name: Michael Mullan
Title: Climate-resilient infrastructure: Getting the policies right
Abstract: Climate change will affect all types of infrastructure, including energy, transport and water. Rising temperatures, increased flood risk and other potential hazards will threaten the reliable and efficient operation of these networks, with potentially large economic and social impacts. Decisions made now about the design, location and operation of infrastructure will determine how resilient they will be to a changing climate.This paper provides a framework for action aimed at national policymakers in OECD countries to help them ensure new and existing infrastructure is resilient to climate change. It examines national governments’ action in OECD countries, and provides recent insights from professional and industry associations, development banks and other financial institutions on how to make infrastructure more resilient to climate change.
Classification-JEL: H54; O18; Q54
Keywords: adaptation, climate change, infrastructure, risk management
Creation-Date: 2017-04-25
Number: 121
Handle: RePEc:oec:envaaa:121-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ioannis Tikoudis
Author-Name: Walid Oueslati
Author-Workplace-Name: OECD
Title: Multi-objective local environmental simulator (MOLES 1.0): Model specification, algorithm design and policy applications
Abstract: This paper describes MOLES 1.0, an integrated land-use and transport model developed with Object-Oriented Programming principles in order to combine selected characteristics from Spatial Computable General Equilibrium and microsimulation models.
Classification-JEL: C60; C68; D58; D62; H70; R00; R13; R14; R40; R52
Keywords: air pollution, greenhouse gas emissions, land-use model, microsimulation, spatial general equilibrium, transport model
Creation-Date: 2017-05-04
Number: 122
Handle: RePEc:oec:envaaa:122-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Geraldine Ang
Author-Workplace-Name: OECD
Author-Name: Dirk Röttgers
Author-Workplace-Name: OECD
Author-Name: Pralhad Burli
Author-Workplace-Name: Montclair State University
Title: The empirics of enabling investment and innovation in renewable energy
Abstract: This working paper undertakes econometric analysis to assess the impacts of climate mitigation policies and the quality of the investment environment on investment and innovation in renewable power in OECD and G20 countries. It also assesses how countries’ investment environments interact with climate mitigation policies to influence investment and patent activity in renewable power. The paper gathered and tested data across OECD and G20 countries on more than 70 explanatory variables, which were analysed using two Poisson-family regression models: one to investigate determinants of investment flows in renewable power from 2000 until 2014; and one to investigate determinants of patent counts in renewable-power technologies from 2000 until 2012. Results of the econometric analysis are consistent with the main hypothesis in this paper that beyond setting climate mitigation policies, policy makers need to strengthen the general investment environment and align it with climate mitigation policies in order to mobilise investment and innovation in renewable power across OECD and G20 countries.
Classification-JEL: F30; H23; L94; O3; Q42; Q48; Q54; Q55; Q58
Keywords: climate change, climate finance, estimation, public intervention, regression
Creation-Date: 2017-05-31
Number: 123
Handle: RePEc:oec:envaaa:123-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Rana Roy
Author-Name: Nils Axel Braathen
Title: The Rising Cost of Ambient Air Pollution thus far in the 21st Century: Results from the BRIICS and the OECD Countries
Abstract: This paper presents updated results for the cost of ambient air pollution in 41 countries: the 6 major emerging economies known as the BRIICS – Brazil, Russia, India, Indonesia, China and South Africa – and the 35 member-countries of the OECD. It draws on the epidemiological evidence base assembled in the Global Burden of Disease Study 2015, in order to detail results for mortalities from ambient air pollution (AAP) – ambient particulate matter pollution (APMP) and ambient ozone pollution (AOP) – in each of these 41 countries, at successive five-year intervals from 2000 to 2015.
Classification-JEL: D61; Q51; Q53
Keywords: Air pollution, Cost-Benefit Analysis, Mortality, Value of Statistical Life
Creation-Date: 2017-07-19
Number: 124
Handle: RePEc:oec:envaaa:124-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Lauren McNicoll
Author-Workplace-Name: OECD
Author-Name: Raphaël Jachnik
Author-Workplace-Name: OECD
Author-Name: Gaylor Montmasson-Clair
Author-Workplace-Name: Trade & Industrial Policy Strategies (TIPS)
Author-Name: Shakespear Mudombi
Author-Workplace-Name: Trade & Industrial Policy Strategies (TIPS)
Title: Estimating Publicly-Mobilised Private Finance for Climate Action: A South African Case Study
Abstract: This study estimates and analyses publicly-mobilised private finance for climate action in South Africa, between 2010 and 2015. The mobilisation effect of public climate finance on private finance is first estimated through an analysis and attribution of project-level co-finance data. A pilot-methodology (the investor perspective) then expands the analysis to also incorporate the mobilisation effect of financial support provided by South African policies in two sectors: renewable energy and energy efficiency. Results suggest that, in the South African context, domestic public actors play the major mobilisation role by providing support through targeted policies, and to a lesser extent by committing project-level co-finance.
Classification-JEL: C81; F30; G3; H23; O16; O19; Q42; Q54
Keywords: climate change, climate finance, databases, estimation, investment, measurement, private finance, public intervention, reporting
Creation-Date: 2017-09-01
Number: 125
Handle: RePEc:oec:envaaa:125-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alexander Mackie
Author-Workplace-Name: OECD
Author-Name: Sarah Sentier
Author-Workplace-Name: OECD
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Myriam Linster
Author-Workplace-Name: OECD
Title: Indicators on Terrestrial and Marine Protected Areas: Methodology and Results for OECD and G20 countries
Abstract: This paper details a methodology for calculating the extent of terrestrial and marine protected areas recorded in the World Database on Protected Areas by country, type and IUCN management categories. The method allows the data on protected areas to be summarised in a harmonised and more detailed way than is currently available, without requiring any additional reporting by countries. When used in combination with other information about protected areas, this new indicator can help better understand the extent and focus of countries’ conservation efforts.
Classification-JEL: Q24; Q28; Q57; Q58; R14; R52
Keywords: biodiversity, ecosystems, nature conservation, nature protection, protected areas
Creation-Date: 2017-11-21
Number: 126
Handle: RePEc:oec:envaaa:126-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Nicholas Rivers
Author-Workplace-Name: University of Ottawa
Title: Leveraging the Smart Grid: The Effect of Real-Time Information on Consumer Decisions
Abstract: This report reviews the literature on the impact of real-time information provision on consumer decision-making. In addition, it describes the results of a study in which about 7000 households in Ontario, Canada were provided with in-home displays linked to smart meters that provided real-time feedback on electricity consumption. The results show that electricity consumption declines by about 3% as a result of information feedback, that the reduction in demand is sustained for at least five months, and that it is highly correlated with outdoor temperature.
Classification-JEL: D12; L94; Q41; Q48
Keywords: Electricity demand, energy conservation, information provision, time-of-use pricing
Creation-Date: 2018-03-01
Number: 127
Handle: RePEc:oec:envaaa:127-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Silke Gabbert
Author-Workplace-Name: Wageningen University
Title: Economic assessment and valuations of environmental and health impacts caused by Perfluorooctanoic acid (PFOA) and its salts
Abstract: Perfluorooctanoic acid (PFOA) is being used in fluoropolymer production, as surface treatment agents and for the manufacture of side-chain fluorinated polymers. However, there is evidence that PFOA and its salts have a number of hazardous properties that may cause harm to human health and the environment. This report evaluates existing economic assessments and valuations of impacts arising from PFOA and its salts.
Classification-JEL: D61; D62; D83; I18; L51; Q51; Q52
Keywords: Cost-benefit analysis, environmental health valuation, non-market valuation, PBT, PFOA, regulatory impact assessment
Creation-Date: 2018-03-22
Number: 128
Handle: RePEc:oec:envaaa:128-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Andrew Prag
Author-Workplace-Name: International Energy Agency
Author-Name: Dirk Röttgers
Author-Workplace-Name: OECD
Author-Name: Ivo Scherrer
Author-Workplace-Name: OECD
Title: State-Owned Enterprises and the Low-Carbon Transition
Abstract: This paper explores the role of state-owned enterprises (SOEs) in the low-carbon transition in OECD and G20 countries. It tracks GHG emissions and energy investments by SOEs and analyses the impact of SOEs on investments in renewable electricity. A descriptive analysis of SOEs’ role in the electricity sector shows the continued importance of SOEs, including prominent investments in both renewables and fossil-fuel-based electricity generation..
Classification-JEL: F30; H23; L41; L94; Q42; Q48; Q54; Q58
Keywords: China, climate change, climate finance, decarbonisation, estimation, investment, low-carbon transition, market power, public intervention, regression, renewable energy, SOEs, state-owned enterprises
Creation-Date: 2018-04-18
Number: 129
Handle: RePEc:oec:envaaa:129-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Andrew McCarthy
Author-Workplace-Name: OECD
Author-Name: Rob Dellink
Author-Workplace-Name: OECD
Author-Name: Ruben Bibas
Author-Workplace-Name: OECD
Title: The Macroeconomics of the Circular Economy Transition: A Critical Review of Modelling Approaches
Abstract: This paper reviews the existing literature on modelling the macroeconomic consequences of the transition to a circular economy. It provides insights into the current state of the art on modelling policies to improve resource efficiency and the transition to a circular economy by examining 24 modelling-based assessments of a circular economy transition.
Classification-JEL: C68; O13; Q53
Keywords: Circular economy, general equilibrium model, natural resources, raw materials, resource efficiency
Creation-Date: 2018-04-18
Number: 130
Handle: RePEc:oec:envaaa:130-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alistair Hunt
Author-Workplace-Name: University of Bath
Author-Name: Nick Dale
Author-Workplace-Name: University of Bath
Title: Economic valuation in 1-Methyl-2-pyrrolidone (NMP) regulation
Abstract: This paper gives an overview of economic assessments of the benefits of the control of 1-Methyl-2-pyrrolidone (NMP), an organic solvent, used in a number of sectors. Health risks associated with the manufacture of NMP include the risk of stillbirth and developmental retardation to pregnant workers, as well as a variety of chronic and acute effects, including respiratory effects.
Classification-JEL: Q51; Q52; Q53
Keywords: 1-Methyl-2-pyrrolidone (NMP), Cost-benefit analysis, environmental health valuation, non-market valuation, regulatory impact assessment
Creation-Date: 2018-06-06
Number: 131
Handle: RePEc:oec:envaaa:131-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Richard Dubourg
Author-Workplace-Name: The Economics Interface Limited
Title: Economic assessments of the benefits of regulating mercury: A review
Abstract: This paper gives an overview of economic assessments of the benefits of the control of emissions of mercury compounds, discusses their completeness from a social cost point of view, and discusses the relative magnitudes of the values attached to mercury compounds in different contexts. The majority of the assessments have been conducted in the context of coal-fired electricity generation and the valuation of human health impacts linked to ingestion of methylmercury.
Classification-JEL: Q51; Q53; Q58
Keywords: benefits, impacts, Mercury, policy, valuation
Creation-Date: 2018-06-06
Number: 132
Handle: RePEc:oec:envaaa:132-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Mike Holland
Author-Workplace-Name: Ecometrics Research and Consulting
Title: Socio-economic assessment of phthalates
Abstract: This paper gives an overview of economic assessments of the benefits of the control of exposure to phthalates, a group of chemicals with numerous uses, most importantly, as a plasticiser to make rigid plastics like PVC flexible. There is significant concern that these substances can act as endocrine disrupting chemicals (EDCs), affecting both human health and ecosystems.
Classification-JEL: Q51; Q53; Q58
Keywords: chemical pollution, endocrine disrupting chemicals, health effects, Phthalates, socio-economic assessment, valuation
Creation-Date: 2018-06-06
Number: 133
Handle: RePEc:oec:envaaa:133-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alistair Hunt
Author-Workplace-Name: University of Bath
Author-Name: Nick Dale
Author-Workplace-Name: University of Bath
Title: Economic valuation in formaldehyde regulation
Abstract: This paper gives an overview of economic assessments of the benefits of the control of formaldehyde and reflects on developments in its risk management and regulation. Formaldehyde is used in the manufacture of resins, as a disinfectant and fixative and as a preservative in consumer products. Formaldehyde exposure can be harmful to human health.
Classification-JEL: Q51; Q52; Q53
Keywords: Cost-benefit analysis, environmental health valuation, formaldehyde, non-market valuation, regulatory impact assessment
Creation-Date: 2018-06-06
Number: 134
Handle: RePEc:oec:envaaa:134-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Andrew McCarthy
Author-Workplace-Name: OECD
Author-Name: Peter Börkey
Author-Workplace-Name: OECD
Title: Mapping support for primary and secondary metal production
Abstract: Public support for metal extraction and processing has received little attention relative to that for the agriculture, energy, or fisheries sectors. That is perhaps surprising given the potentially environmental harmful character of metal extraction and processing, and the emerging interest in transitioning to a more resource efficient and circular economy. This report addresses this knowledge gap by mapping out the most common forms of support provided for primary metals (produced from mineral ores) and secondary metals (produced from scrap).
Classification-JEL: H23; L72; Q53
Keywords: Circular economy, primary metals, secondary metals
Creation-Date: 2018-10-16
Number: 135
Handle: RePEc:oec:envaaa:135-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ståle Navrud
Author-Workplace-Name: Norwegian University of Life Sciences
Title: Assessing the economic valuation of the benefits of regulating chemicals: Lessons learned from five case studies
Abstract: This paper reviews and compares five case studies on quantification and economic valuation of benefits in cost-benefit analyses (CBAs) of regulating phthalates, mercury, PFOA (perfluoro-octanic acid) and its salts, NMP (1 methyl-2-pyrroloidine) and formaldehyde. The case studies had all been carried out as part of the SACAME project, and the purpose of the present paper is to draw out cross-cutting findings from these studies.
Classification-JEL: D61; J17; Q51; Q53; Q57
Keywords: Chemicals regulations, cost-benefit analysis, damage function, ecosystem services, health benefits, impact pathway
Creation-Date: 2018-10-22
Number: 136
Handle: RePEc:oec:envaaa:136-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Author-Name: Ruben Bibas
Author-Workplace-Name: OECD
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Title: Impacts of Green Growth Policies on Labour Markets and Wage Income Distribution: A General Equilibrium Application to Climate and Energy Policies
Abstract: This paper explores the consequences on the labour markets of structural changes induced by decarbonisation policies. These policies are likely going to have consequences on labour-income distribution given i) existing rigidities in the labour markets, and ii) their different impacts on sectors and on job categories. These policies are analysed in a general equilibrium modelling framework, which includes interlinkages between different sectors and regions as well as five different categories of workers.
Classification-JEL: D58; J4; Q43; Q52; Q54
Keywords: Climate change mitigation policies, Computable general equilibrium model, Employment & Redistributive Effects, Energy efficiency, Labour markets by occupation
Creation-Date: 2018-11-21
Number: 137
Handle: RePEc:oec:envaaa:137-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Dirk Röttgers
Author-Workplace-Name: OECD
Author-Name: Aayush Tandon
Author-Workplace-Name: OECD
Author-Name: Christopher Kaminker
Author-Workplace-Name: University of Oxford
Title: OECD Progress Update on Approaches to Mobilising Institutional Investment for Sustainable Infrastructure
Abstract: The large need for investments in sustainable infrastructure will require investments from the private sector, including institutional investors. This working paper contributes to scaling up investments by analysing public project-level interventions for projects involving institutional investors. It presents findings from an updated database on institutional investments in environmentally sustainable infrastructure with project-level intervention by the public sector.
Classification-JEL: F65; H23; P18; P45; Q42; Q48; Q54; Q58
Keywords: climate change, finance, financial instruments, financial sector, infrastructure, Institutional investors, sustainable
Creation-Date: 2018-11-30
Number: 138
Handle: RePEc:oec:envaaa:138-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Dirk Röttgers
Author-Workplace-Name: OECD
Author-Name: Brilé Anderson
Author-Workplace-Name: OECD
Title: Power struggle: Decarbonising the electricity sector
Abstract: This report investigates the effects of select climate policies, non-climate policies, as well as political economy factors on the decarbonisation of electricity in OECD countries from 2000 to 2015. Effects are analysed on the three phases of decarbonisation: (1) increasing the share of renewables installed, (2) increasing the use of renewables in generation, and (3) reducing the emissions from electricity.
Classification-JEL: H23; L94; P16; P18; P48; Q42; Q48; Q54; Q55; Q58
Keywords: climate change, Decarbonisation, electricity, political economy, regression analysis
Creation-Date: 2018-11-28
Number: 139
Handle: RePEc:oec:envaaa:139-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Mariana Mirabile
Author-Workplace-Name: OECD
Author-Name: Jennifer Calder
Author-Workplace-Name: OECD
Title: Clean power for a cool planet: Electricity infrastructure plans and the Paris Agreement
Abstract: Meeting the temperature goals of the Paris Agreement requires a transformational change in our infrastructure systems. Given the long lifetime of infrastructure, there is an urgency to build more of the right type of it. The failure to do so will lock-in emissions for decades to come, or create stranded assets. This working paper aims to shed light on the extent to which current electricity generation projects under construction at the global level - the "pipeline" - are consistent with what a low-carbon transition requires.
Classification-JEL: L94; O13; P48; Q4
Keywords: Coal, Electricity Sector, Environment, Gas, Just transition, Political economy, Renewable energy
Creation-Date: 2018-12-03
Number: 140
Handle: RePEc:oec:envaaa:140-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Katia Karousakis
Author-Workplace-Name: OECD
Title: Evaluating the effectiveness of policy instruments for biodiversity: Impact evaluation, cost-effectiveness analysis and other approaches
Abstract: This report provides an overview of methodologies to evaluate the effectiveness of policy instruments for biodiversity, covering impact evaluation, cost-effectiveness analysis and other more commonly used approaches. It then provides an inventory of biodiversity-relevant impact evaluation studies, across both terrestrial and marine ecosystems. The report concludes with lessons learned, policy insights and suggestions for further work.
Classification-JEL: D04; D61; Q20; Q57
Keywords: Allocative Efficiency, Biodiversity Conservation, Cost–Benefit Analysis, Microeconomic Policy: Formulation, Implementation, and Evaluation, Ecological Economics: Ecosystem Services
Creation-Date: 2018-12-13
Number: 141
Handle: RePEc:oec:envaaa:141-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Mark Hilton
Author-Workplace-Name: Eunomia
Author-Name: Chris Sherrington
Author-Workplace-Name: Eunomia
Author-Name: Andrew McCarthy
Author-Workplace-Name: OECD
Author-Name: Peter Börkey
Author-Workplace-Name: OECD
Title: Extended Producer Responsibility (EPR) and the Impact of Online Sales
Abstract: Extended producer responsibility or product stewardship is a policy approach that aims to increase waste recovery and recycling. Extended producer responsibility (EPR) systems aim to make producers responsible for the environmental impacts of their products throughout the product chain, from design to the end-of-life phase. This report focuses on free-riding of producers or retailers, which the fast expansion of online sales in recent years has been exacerbating. Online sales are creating new free-riding opportunities as consumers are able to buy more easily from sellers in other countries. These sellers often have no physical, legal entity in the country where the consumer resides, and are not registered with national or local EPR schemes.
Classification-JEL: Q53; Q58
Keywords: circular economy, Extended producer responsibility, free-riding, product stewardship, resource efficiency, waste management
Creation-Date: 2019-01-23
Number: 142
Handle: RePEc:oec:envaaa:142-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Elisabetta Cornago
Author-Workplace-Name: OECD
Author-Name: Alexandros Dimitropoulos
Author-Workplace-Name: OECD
Author-Name: Walid Oueslati
Author-Workplace-Name: OECD
Title: Evaluating the Impact of Urban Road Pricing on the Use of Green Transport Modes: The Case of Milan
Abstract: The purpose of this study is to investigate the effect of congestion pricing on the demand for clean transport modes. To this end, it draws on an empirical analysis of the effect of Milan’s congestion charge on the use of bike sharing. The analysis indicates that congestion pricing increases daily bike-sharing use by at least 5% in the short term. Extending the schedule of the congestion charge in the early evening increases bike-sharing use in the affected time window by 12%. The impact of the policy on bike-sharing use mainly occurs through the reduction of road traffic congestion, which makes cycling safer and more pleasant. The findings of the study indicate that policies aiming to reduce car use also have positive repercussions on the uptake of green mobility options. Relying solely on direct incentives for cycling, which often involve infrastructure projects, is likely insufficient to remove barriers to bike use.
Classification-JEL: Q58; R41; R48
Keywords: bike sharing, Congestion pricing, sustainable mobility, urban road pricing
Creation-Date: 2019-02-11
Number: 143
Handle: RePEc:oec:envaaa:143-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Daniel Coysh
Author-Name: Nick Johnstone
Author-Workplace-Name: OECD
Author-Name: Tomasz Koźluk
Author-Workplace-Name: OECD
Author-Name: Daniel Nachtigall
Author-Workplace-Name: OECD
Author-Name: Miguel Cárdenas Rodríguez
Author-Workplace-Name: OECD
Title: Vintage differentiated regulations and plant survival: Evidence from coal-fired plants
Abstract: This paper assesses the effect of environmental regulations on plant survival and emissions using data on the extent of vintage differentiation of regulations (VDR5) regarding air pollution emission limit values for existing and new coal-fired power plants. Focussing on NOx and SOx emissions, the paper applies survival analysis techniques on a sample of generating units across 31 OECD and non-member countries between 1962 and 2012.
Classification-JEL: Q50; Q53; Q58; Q48
Keywords: air pollution, coal powered plants, emission limit values, environmental policies, exit, Vintage differentiated regulation
Creation-Date: 2019-03-05
Number: 144
Handle: RePEc:oec:envaaa:144-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Antonio Russo
Author-Workplace-Name: ETH Zurich
Author-Name: Jos van Ommeren
Author-Workplace-Name: VU University Amsterdam
Author-Name: Alexandros Dimitropoulos
Author-Workplace-Name: OECD
Title: The Environmental and Welfare Implications of Parking Policies
Abstract: Parking policies have significant environmental and economic implications, which have often been left unconsidered. This paper reviews the relevant literature to provide a deeper understanding of the main environmental and economic consequences of common parking policies, and suggest policy options to protect the environment and increase social welfare.
Classification-JEL: Q58; R48; R52
Keywords: employer-provided parking, environmental impact, Parking pricing, parking requirement, welfare effect
Creation-Date: 2019-03-07
Number: 145
Handle: RePEc:oec:envaaa:145-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Raphaël Jachnik
Author-Workplace-Name: OECD
Author-Name: Mariana Mirabile
Author-Workplace-Name: OECD
Author-Name: Alexander Dobrinevski
Author-Workplace-Name: OECD
Title: Tracking finance flows towards assessing their consistency with climate objectives
Abstract: Achieving a low-greenhouse gas (GHG) development requires making finance flows consistent with this objective. In order to measure progress to date as well as inform future public action in this area, this paper calls for further efforts to track gross primary investments flows in new infrastructure and equipment and the refurbishment of such assets, as well underlying sources of finance. The proposed scope focuses on tangible fixed assets with a direct and significant impact on GHG emissions.
Classification-JEL: E01; E22; G21; G23; H54; Q54; Q56
Keywords: climate change, data, finance flows, investment, low-greenhouse gas development, measurement, tracking
Creation-Date: 2019-03-19
Number: 146
Handle: RePEc:oec:envaaa:146-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Daniel Nachtigall
Title: Improving economic efficiency and climate mitigation outcomes through international co-ordination on carbon pricing
Abstract: This paper presents the potential benefits and challenges of enhanced international co-ordination on carbon pricing and outlines the different types and levels of co-ordination that are available for national and sub-national governments. These levels include, inter alia, facilitating new pricing schemes, phasing out inefficient fossil fuel subsidies, sectoral approaches, co-ordination on minimum carbon prices and carbon pricing clubs. Jurisdictions may want to adopt several of these options simultaneously and may co-ordinate at multiple levels of government or across countries and sectors. This creates a bottom-up ‘web of carbon pricing schemes’, which can be an important element in delivering the Nationally Determined Contributions of the Paris Agreement and which has the potential to support greater levels of climate action and ambition.
Classification-JEL: H23; Q54; Q56; Q58
Keywords: Carbon clubs, Carbon markets, Carbon pricing, International co-operation, Sectoral agreements
Creation-Date: 2019-05-22
Number: 147
Handle: RePEc:oec:envaaa:147-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Elisa Lanzi
Author-Name: Rob Dellink
Title: Economic interactions between climate change and outdoor air pollution
Abstract: Climate change and outdoor air pollution are two of the most challenging environmental issues that modern society faces. These challenges are strongly linked through their emission sources, the sectors they affect and the policies that can be implemented to reduce emissions. They also interact in the way they affect economic growth in the coming decades, although this aspect has been neglected in the literature. This paper presents the first global analysis of the joint economic consequences of climate change and outdoor air pollution to 2060, in the absence of new policies to address these challenges. A common methodology and a consistent modelling framework is used to specify the main economic interaction effects. While this paper provides a useful framework to analyse the interactions between two environmental issues in the economic system, the results need to be interpreted carefully, because of limited data availability.
Classification-JEL: C68; Q54; Q53
Keywords: air pollution, climate change, computable general equilibrium models
Creation-Date: 2019-07-03
Number: 148
Handle: RePEc:oec:envaaa:148-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Emma Watkins
Author-Name: Jean-Pierre Schweitzer
Author-Name: Eeva Leinala
Author-Name: Peter Börkey
Title: Policy approaches to incentivise sustainable plastic design
Abstract: Plastics are an important material in the economy but present a challenge for waste management, resource efficiency and the environment. Low rates of recycling and high rates of environmental leakage represent key sustainability challenges for plastics as well as product designers and producers. The chemical composition of plastics, including their additives, create physical and toxicological barriers to ‘closing the loop’ on the material, and creates risks such as low quality secondary materials or ecological exposure to hazardous chemicals. A range of policy instruments can be applied to improve the sustainability of plastics, including regulations, market-based instruments, information and voluntary tools. The report reviews the current use of instruments in each of these categories, provides a number of good practice examples, such as product taxes and charges, eco-design standards, extended producer responsibility and environmental product labels, as well as discussing opportunities for their future applications.
Classification-JEL: Q55; Q58
Keywords: circular economy, plastics, policy instruments, resource efficiency
Creation-Date: 2019-07-19
Number: 149
Handle: RePEc:oec:envaaa:149-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jonas Teusch
Author-Workplace-Name: OECD
Author-Name: Nils Axel Braathen
Author-Workplace-Name: OECD
Title: Are environmental tax policies beneficial?: Learning from programme evaluation studies
Abstract: This paper provides a concrete example of how policy analysts can use empirical programme evaluation studies to perform ex-post assessments of environmentally related tax policies. A number of studies credibly identify causal effects of environmentally related tax policies, but do not necessarily provide all the information needed to fully inform the policy-making process. This paper argues that cost-benefit analysis (CBA) could enrich ex-post assessments of environmentally related tax policies, given that CBA provides decision makers with a broader perspective of social costs and benefits and allows the identification of potential trade-offs among policy objectives.
Classification-JEL: D61; D62; H23; H31
Keywords: Bonus/malus policies, Cost-benefit analysis, Environmental Taxes, Feebates, Quantitative Policy Evaluation, Vehicle Purchase Taxes
Creation-Date: 2019-08-12
Number: 150
Handle: RePEc:oec:envaaa:150-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Nils Axel Braathen
Author-Workplace-Name: OECD
Title: Flexibility mechanisms in environmental regulations: Their use and impacts
Abstract: Based on an in-depth literature review and responses to a survey among OECD member countries, this paper discusses the use of flexibility mechanisms in environmental regulations. Such mechanisms can provide flexibility as to how a given environmental improvement is achieved, regarding where environmental improvements take place, when they take place, as regards who is to achieve the improvements, and for which pollutants the emission reductions are to be achieved.The literature on these issues is limited, but it is clear that some such mechanisms can have important environmental and economic impacts. In certain cases, flexibility mechanisms which have provided important benefits in terms of cost reductions have proven to also shift pollution to areas where the negative health impacts are larger. Hence, it will be useful to carefully assess the related social costs and benefits of both existing and new flexibility mechanisms.
Classification-JEL: Q51; Q53; Q58
Keywords: air pollution, emission trading, environmental regulations, flexibility mechanisms, government policy, valuation of environmental externalities
Creation-Date: 2019-08-16
Number: 151
Handle: RePEc:oec:envaaa:151-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jane Ellis
Author-Workplace-Name: OECD
Author-Name: Daniel Nachtigall
Author-Workplace-Name: OECD
Author-Name: Frank Venmans
Author-Workplace-Name: University of Mons
Title: Carbon pricing and competitiveness: Are they at odds?
Abstract: This paper reviews ex-post empirical assessments on the impact of carbon pricing on competitiveness in OECD and G20 countries in the electricity and industrial sectors. Most of these assessments find no statistically significant effects of carbon pricing or energy prices on different dimensions of competitiveness, including net imports, foreign direct investments, turnover, value added, employment, profits, productivity, and innovation. When statistically significant results have been found, the magnitude of such effects tends to be small - either positive or negative. Thus, concerns about negative short-term effects of carbon pricing on firms’ or sectors’ international competitiveness have not come to pass, at least to date. These findings are in part because carbon price levels have been low and because of exemptions to carbon taxes for industry, or generous levels of free allowances to firms covered by emissions trading schemes.
Classification-JEL: H23; Q54; Q56; Q58
Keywords: carbon markets, carbon pricing, competitiveness, environmental regulation
Creation-Date: 2019-11-21
Number: 152
Handle: RePEc:oec:envaaa:152-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Lisa Ryan
Author-Workplace-Name: University College, Dublin
Author-Name: Ivan Petrov
Author-Workplace-Name: University College, Dublin
Author-Name: Andrew Kelly
Author-Workplace-Name: EnvEcon Decision Support
Author-Name: Yulu Guo
Author-Workplace-Name: University College, Dublin
Author-Name: Sarah La Monaca
Author-Workplace-Name: Columbia University
Title: An assessment of the social costs and benefits of vehicle tax reform in Ireland
Abstract: This paper presents the results of an ex post evaluation of the impacts of a vehicle tax reform in Ireland, by carrying out a full social cost benefit analysis of a vehicle tax reform that began in Ireland in 2008 and shows that whilst successful in improving the fuel economy of new passenger cars, it may also have caused unintended effects, such as an increased proliferation of diesel vehicles in the passenger car fleet. These outcomes have mitigated the overall benefits. In addition to quantifying the scale of the various effects and outcomes, this paper clearly demonstrates the importance of broad scope policy design.
Classification-JEL: D61; H23; Q51; Q53; R48
Keywords: benefit-cost analysis, economic policy instruments, environmental economics, environmental tax reform, vehicle taxation
Creation-Date: 2019-12-20
Number: 153
Handle: RePEc:oec:envaaa:153-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Damien Dussaux
Title: The joint effects of energy prices and carbon taxes on environmental and economic performance: Evidence from the French manufacturing sector
Abstract: The paper estimates the effect of energy prices and carbon taxation on firms’ environmental and economic performance. The analysis uses data on 8 000 firms that are representative of the French manufacturing sector and observed during 2001-2016. This paper also measures the causal impact of the carbon tax over the period 2014-2018 and simulates the effect of further increasing the carbon tax rate from €45 to €86 per tonne of CO2.
Classification-JEL: Q52; Q54; Q58
Keywords: carbon emissions reductions, carbon taxation, competitiveness, energy prices, firm performance
Creation-Date: 2020-02-04
Number: 154
Handle: RePEc:oec:envaaa:154-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Megha Sud
Title: Managing the biodiversity impacts of fertiliser and pesticide use: Overview and insights from trends and policies across selected OECD countries
Abstract: This paper reviews the impacts and costs of pesticide and fertiliser pollution as well as the policy responses to counter these in selected OECD countries. More specifically, the paper begins with an overview of the main biodiversity and health impacts of excess pesticide and fertiliser. In economic terms, nitrogen pollution, for example, has been estimated to cost the European Union between EUR 70 billion and EUR 320 billion per year. The paper also provides an overview of the trends in both pesticide sales (per 1000 ha of agricultural land area), and pesticide use (in tonnes of active ingredients), as well as soil nutrient balances in OECD countries before reviewing policy instruments available to promote more sustainable fertiliser and pesticide use. Case studies of specific policy responses used to address adverse impacts of pesticides including in Denmark and France are presented along with case studies of policies to counter nutrient pollution in Denmark, Japan and the United States. Based on the literature review and case studies, the paper concludes with policy insights and recommendations.
Classification-JEL: Q24; Q57; Q58; H23
Keywords: agricultural policy, biodiversity conservation, ecological economics, ecosystem services, environment & development, government policy
Creation-Date: 2020-03-13
Number: 155
Handle: RePEc:oec:envaaa:155-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Enrico Botta
Author-Workplace-Name: OECD
Author-Name: Sho Yamasaki
Author-Workplace-Name: OECD
Title: Policies, regulatory framework and enforcement for air quality management: The case of Japan
Abstract: The pollution intensity of the Japanese economy, measured as emissions per dollar of GDP, is among the lowest within OECD countries. However, air pollution remains a significant issue. Almost 80% of the Japanese residents were exposed to an annual concentration of PM2.5 above the WHO guideline while the attainment rate of the domestic air quality standard for photochemical oxidants is below 1%. The analysis of the regulatory and enforcement framework for air quality management in Japan identifies best practises and key remaining challenges, including a limited understanding of the generation mechanism of ozone pollution and the need to strengthen cooperation among Prefectures. This paper complements two case studies on air quality policies in China and Korea, and a third case study on international regulatory cooperation on air quality in North America, Europe and North-East Asia.
Keywords: air pollution, Japan, monitoring and enforcement, regulatory policy
Creation-Date: 2020-03-13
Number: 156
Handle: RePEc:oec:envaaa:156-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Chan Yang
Author-Workplace-Name: OECD
Title: Policies, regulatory framework and enforcement for air quality management: The case of China
Abstract: Four decades of rapid economic expansion in China has generated enormous pressure on the environment, natural resources and public health. Alarming smog outbreaks during the 2010-13 period prompted the government to introduce a number of reforms to control air pollution, including a re-organisation of environmental institutions, improving the coordination and integrity of enforcement actions across levels of government, and the rolling out of a permit system for all stationary pollution sources. This paper reviews these recent developments, and discusses key remaining challenges. The paper complements two case studies on air quality policies in Korea and Japan, and a third case study on international regulatory cooperation on air quality in North America, Europe and North-East Asia.
Classification-JEL: Q52; Q53; Q58
Keywords: air pollution, China, monitoring and enforcement, regulatory policy
Creation-Date: 2020-03-13
Number: 157
Handle: RePEc:oec:envaaa:157-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Daniel Trnka
Author-Workplace-Name: OECD
Title: Policies, regulatory framework and enforcement for air quality management: The case of Korea
Abstract: During past years, Korea figured among the OECD countries with the highest share of population exposed to excessive PM2.5 (atmospheric particulate matter that have a diameter of less than 2.5 micrometres) concentrations and PM2.5 concentration level in Seoul is about two times higher than the WHO’s guidelines or the levels of other major cities in developed countries. A number of countermeasures have been recently introduced to address such challenges, including a tightening of air quality standards and increasing local inspection and enforcement capacity. This paper reviews these recent reforms, and discusses possible further improvements. This paper complements two case studies on air quality policies in China and Japan, and a third case study on international regulatory co-operation on air quality in North America, Europe and North-East Asia.
Keywords: air pollution, Korea, monitoring and enforcement, regulatory policy
Creation-Date: 2020-03-13
Number: 158
Handle: RePEc:oec:envaaa:158-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alexander Dobrinevski
Author-Workplace-Name: OECD
Author-Name: Raphaël Jachnik
Author-Workplace-Name: OECD
Title: Exploring options to measure the climate consistency of real economy investments: The manufacturing industries of Norway
Abstract: This paper presents results from a first pilot study to measure the consistency of real economy investments with climate change mitigation objectives. The analysis focuses on investments in infrastructure and equipment in the manufacturing industries in Norway between 2010 and 2017, estimated at USD 2.5 billion per year on average. The consistency or inconsistency of these investments is then measured at subsector level based on two readily available reference points: the European Union Taxonomy for Sustainable Activities, and a 2°C scenario for the Nordic region from the International Energy Agency. The analysis further identifies sources of financing in these subsectors and discusses future investment and financing challenges, in light of more ambitious forward-looking decarbonisation targets and needs. Finally, the study draws methodological conclusions and calls for further pilot studies in order to improve and scale up such analysis at international level, including in terms of using different or complementary reference points specifically aligned to the temperature goal of the Paris Agreement.
Classification-JEL: E01; E22; F31; G32; L60; H54; Q54; Q56
Keywords: capital expenditure, climate change, emissions, energy efficiency, finance, investment, low-greenhouse gas development, manufacturing, measurement, scenarios, taxonomy, tracking
Creation-Date: 2020-03-17
Number: 159
Handle: RePEc:oec:envaaa:159-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Aimée Aguilar Jaber
Author-Workplace-Name: OECD
Author-Name: Brilé Anderson
Author-Workplace-Name: OECD
Author-Name: Daniel Nachtigall
Author-Workplace-Name: OECD
Author-Name: Fatoumata Ngom
Author-Workplace-Name: OECD
Title: Long-term low emissions development strategies: Cross-country experience
Abstract: The Paris Agreement invites signatory countries to formulate and communicate long-term low greenhouse gas emission development strategies (LT-LEDS). This report compares the experience of three developed countries that have communicated LT-LEDS within the framework of the United Nations Framework Convention on Climate Change (UNFCCC): France (Stratégie National Bas-Carbone), Germany (Klimaschutzplan 2050) and the United Kingdom (Clean Growth Strategy). The report analyses the three stages of the LT-LEDS process in detail: a) the institutional and technical process to create the LT-LEDS; b) the document strategy resulting from the process; and c) the design of specific mechanisms to facilitate implementation of the LT-LEDS. While LT-LEDS will reflect countries own "common but differentiated responsibilities and respective capabilities, in the light of different national circumstances", it is hoped that the lessons and messages included in this report can be useful to other developed and developing countries interested in creating and implementing LT-LEDS.
Classification-JEL: H23; O44; Q01; Q52; Q54; Q56; Q58; R11
Keywords: Climate Change, LT-LEDS, Paris Agreement, UNFCCC
Creation-Date: 2020-04-02
Number: 160
Handle: RePEc:oec:envaaa:160-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Xavier Leflaive
Author-Workplace-Name: OECD
Author-Name: Ben Krieble
Author-Workplace-Name: OECD
Author-Name: Harry Smythe
Author-Workplace-Name: OECD
Title: Trends in water-related technological innovation: Insights from patent data
Abstract: Innovation has a role to play to mitigate water-related risks and to support the provision of water services on which our well-being and sustainable development depend. Water-related innovation originate in a wide range of countries, with different levels of ambition. They disseminate at different scales globally.This paper uses patent data to document trends in the invention of technologies to promote water security since 1990, focusing on the countries in which inventions are developed, where they might be commercialised, and in which subsectors they originate. The water-related technologies identified in the paper can be clustered into three categories: i) water pollution abatement; ii) demand-side; and iii) supply-side. The paper describes a number of important trends that can inform a broader discussion on the factors that might hinder, or enhance, inventive activity to promote water security.
Classification-JEL: O13; O31; O38; Q25; Q55
Keywords: droughts, floods, green tech, innovation, patent, water pollution
Creation-Date: 2020-04-07
Number: 161
Handle: RePEc:oec:envaaa:161-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Frithjof Laubinger
Author-Workplace-Name: OECD
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Title: Labour market consequences of a transition to a circular economy: A review paper
Abstract: Resource efficiency and circular economy policies aim at reducing resource intensity and use throughout the economy, thereby decreasing environmental impacts. Besides the environmental benefits expected from these policies, potential employment benefits are often emphasised, which would follow the anticipated structural changes in the economy from material-intensive to more labour-intensive activities. However, the size of the employment effect is still unclear and difficult to quantify. To date, the quantitative literature on the employment impacts of the circular economy is still scarce. This study is the first of its kind to review the available studies on this increasingly important policy issue.
Classification-JEL: Q52; Q53; O14; J4; C68
Keywords: circular economy, employment & redistributive effects, labour markets, macro-economic modelling, natural resources, resource efficiency
Creation-Date: 2020-05-15
Number: 162
Handle: RePEc:oec:envaaa:162-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alexander Dobrinevski
Author-Workplace-Name: OECD
Author-Name: Raphaël Jachnik
Author-Workplace-Name: OECD
Title: Exploring options to measure the climate consistency of real economy investments: The transport sector in Latvia
Abstract: Mitigating climate change requires aligning real economy investments with climate objectives. This pilot study measures the climate consistency of investments in transport infrastructure and vehicles in Latvia between 2008 and 2018, estimated at EUR 1.5 billion per year on average. To do so, three complementary mitigation-related reference points are used. Applying the criteria defined by the European Union Taxonomy for Sustainable Activities results in 4.2% of investments assessed as making a substantial contribution to climate change mitigation. Comparing actual greenhouse gas trajectories for each transport mode to a 2°C scenario from the International Energy Agency’s for the European Union and to projections from Latvia’s 5th National Communication to the UNFCCC, indicates 32% climate-consistent and up to 9% climate-inconsistent investments. The majority of investments volumes could at this stage not be characterised due to limitations relating to the granularity or coverage of the reference points. Comparing current trends to 2030 and 2050 decarbonisation targets nevertheless highlights future investment and financing challenges, especially for road transport. The methodology piloted in this study can be replicated and scaled up across countries and sectors, using different or complementary reference points specifically aligned to the temperature goal of the Paris Agreement.
Classification-JEL: Q54; Q56; H54; E01; E22; G31; G32; L91
Keywords: capital expenditure, climate change, emissions, energy efficiency, finance, investment, Latvia, low-greenhouse gas development, measurement, scenarios, taxonomy, tracking, transport
Creation-Date: 2020-05-20
Number: 163
Handle: RePEc:oec:envaaa:163-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Shardul Agrawala
Author-Workplace-Name: OECD
Author-Name: Damien Dussaux
Author-Workplace-Name: OECD
Author-Name: Norbert Monti
Author-Workplace-Name: OECD
Title: What policies for greening the crisis response and economic recovery?: Lessons learned from past green stimulus measures and implications for the COVID-19 crisis
Abstract: This paper evaluates green stimulus packages that were introduced in response to the global financial crisis (GFC) of 2007-08 and draws lessons relevant for greening the recovery from the Coronavirus (COVID-19) crisis. The paper underscores the importance of building in policy evaluation mechanisms into green stimulus measures. It also provides evidence that the implementation of sufficiently large, timely and properly designed green stimulus measures can generate economic growth, create jobs and bring about environmental benefits. However, there are also trade-offs between competing economic, environmental and social policy objectives, which underscores the importance of proper policy design.
Classification-JEL: Q58; E61; E62; E65; O44
Keywords: environmental policy, green growth, policy design, policy evaluation, stimulus package
Creation-Date: 2020-05-28
Number: 164
Handle: RePEc:oec:envaaa:164-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Rob Dellink
Author-Workplace-Name: OECD
Title: The consequences of a more resource efficient and circular economy for international trade patterns: A modelling assessment
Abstract: This report investigates the effects of a resource efficiency and circular economy (RE-CE) transition on international trade flows, using the OECD’s ENV-Linkages model. A global RE-CE policy package will cause secondary materials to become cheaper, while primary materials become more expensive to produce. By 2040, primary non-ferrous metals are projected to decline by 35-50%, primary iron & steel by 15% and primary non-metallic minerals by around 10%. Regional shifts in production and trade-related effects (shifts in the regional sourcing of the primary materials by the materials processing sectors) account for roughly one-third of the total reduction in materials use. The other two thirds of materials use reduction come from scale effects (reduced economic activity) and efficiency effects (reduced materials use per unit of output of the processed commodities).
Classification-JEL: C68; F18; O14; Q53; O44
Keywords: circular economy, general equilibrium model, resource efficiency, trade and environment
Creation-Date: 2020-06-12
Number: 165
Handle: RePEc:oec:envaaa:165-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Xavier Leflaive
Author-Workplace-Name: OECD
Author-Name: Marit Hjort
Author-Workplace-Name: OECD
Title: Addressing the social consequences of tariffs for water supply and sanitation
Abstract: Where they exist, tariffs for water supply and sanitation services face a tension between different policy objectives, such as ensuring the financial sustainability of service provision and ensuring access to all, including vulnerable and poor social groups. Governments (local and national) resort to a range of measures to reconcile these objectives and address social consequences of tariffs: tariff levels and structures, nudging, budgetary transfers, targeted social measures. The paper revisits most common practices and discusses their pros and cons, and requisites to make them work. It provides up-to-date analyses on a series of related issues, such as definitions of affordability, principle for cost recovery, benefits and costs of metering, elasticity of domestic water use to prices, fiscal transfers to water services. The paper is informed by recent academic research, data on selected countries, and interactions with OECD bodies.
Classification-JEL: D12; D63; H4; H23; H53; H54; L95; L98; Q53; Q58
Creation-Date: 2020-06-30
Number: 166
Handle: RePEc:oec:envaaa:166-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Author-Name: Eleonora Mavroeidi
Author-Workplace-Name: OECD
Title: The jobs potential of a transition towards a resource efficient and circular economy
Abstract: This paper examines the consequences of a policy-driven transition towards a more resource-efficient and circular economy on employment levels across countries and sectors during the period 2018-2040. The analysis relies on simulations with ENV-Linkages, the global structural computable general equilibrium model of the OECD Environment Directorate. The results suggest that the overall reallocation of jobs due to a fiscal policy package promoting resource efficiency and the transition to a circular economy is limited to 18 million jobs in 2040 and net job creations are marginal, with 1.8 million of jobs.
Classification-JEL: Q53; Q52; O44; C68
Keywords: circular economy, employment and environment, general equilibrium model, resource efficiency
Creation-Date: 2020-08-28
Number: 167
Handle: RePEc:oec:envaaa:167-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Assia Elgouacem
Title: Designing fossil fuel subsidy reforms in OECD and G20 countries: A robust sequential approach methodology
Abstract: Reform of support for fossil fuels is often identified as a priority for a country’s fiscal consolidation efforts and for climate action to align financial flows with low-carbon pathways. Its implementation, however, remains elusive for many countries as they face seemingly irreconcilable policy agendas of economic growth and sustainability coupled with potential political backlash against austerity and rising costs. This paper provides a sequential approach that may assist in providing support for the analysis to a well-informed reform process. Deploying the suggested tools can help policy makers to identify the most distorting government support measures and alternative or complementary policies that deliver the sought-after objectives more efficiently and effectively. The work presented here draws on the OECD’s longstanding experience and tradition in measuring and tracking support measures for fossil fuels, primarily in its Inventory of Support Measures for Fossil Fuels (Inventory hereafter) and accompanying reports.
Classification-JEL: H23; E64; Q38; Q54; Q58
Keywords: coal, energy, fossil fuel subsidies, fossil fuel subsidy reform, fossil fuels, gas, government support, oil, reform, subsidies, tax expenditures, tax incentives
Creation-Date: 2020-10-23
Number: 168
Handle: RePEc:oec:envaaa:168-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ruben Bibas
Author-Workplace-Name: OECD
Author-Name: Jean Chateau
Author-Workplace-Name: OECD
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Title: Policy scenarios for a transition to a more resource efficient and circular economy
Abstract: Global materials use is expected to grow in the coming decades in the absence of new policies, bearing substantial negative impacts for the environment. This report analyses the mechanisms through which resource efficiency and circular economy policies can achieve a decoupling between economic growth and material use. Using the OECD’s ENV-Linkages model, the report examines the economic and environmental impacts of a global material fiscal reform, which implements taxes on primary metal and mineral resources, and uses the revenue of these taxes to finance subsidies to recycled goods and to secondary metal production.
Classification-JEL: C68; F18; O13; O44; Q53
Keywords: circular economy, general equilibrium model, resource efficiency, trade and environment
Creation-Date: 2021-03-10
Number: 169
Handle: RePEc:oec:envaaa:169-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Arlan Brucal
Author-Workplace-Name: London School of Economics
Author-Name: Antoine Dechezleprêtre
Author-Workplace-Name: OECD
Title: Assessing the impact of energy prices on plant-level environmental and economic performance: Evidence from Indonesian manufacturers
Abstract: This paper provides an empirical analysis of the impact of energy price increases – induced notably by the removal of fossil fuel subsidies – on the joint environmental and economic performance of Indonesian plants in the manufacturing industry for the period 1980-2015. The paper shows that a 10% increase in energy prices causes a a reduction in energy use by 5.2% and a reduction in CO2 emissions by 5.8% on average, with more energy-intensive sectors responding more to the shocks. At the same time, energy price increases increase the probability of plant exit and reduce employment of large and energy intensive plants, but the estimated effect is very small (-0.2% for a 10% increase in energy prices). Morevoer, energy price changes have no significant influence on net job creation at the industry-wide level, suggesting that jobs are not lost but reallocated from energy-intensive to energy-efficient firms. Overall, the empirical evidence demonstrates that environmental fiscal reforms in emerging economies like Indonesia can bring about large environmental benefits with little to no effect on employment.
Classification-JEL: Q54; Q58; Q52
Keywords: carbon emissions reductions, competitiveness, energy price, firm performance, fossil fuel subsidy reform
Creation-Date: 2021-03-25
Number: 170
Handle: RePEc:oec:envaaa:170-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Hannah Leckie
Author-Workplace-Name: OECD
Author-Name: Harry Smythe
Author-Workplace-Name: OECD
Author-Name: Xavier Leflaive
Author-Workplace-Name: OECD
Title: Financing water security for sustainable growth in Asia and the Pacific
Abstract: The Asia Water Development Outlook – a flagship publication by the Asian Development Bank - monitors progress in water security in the Asia Pacific region. For the first time, the 2020 edition documents financing flows that contribute to – or that are needed to enhance – water security in the region.Working in close collaboration with the Asian Development Bank and partners, the OECD endeavoured to characterise funding needs and financing flows for water security in the region. The approach and methodology derive from a similar endeavour covering the European region, but were adjusted to reflect the distinctive features of the region, in terms of the state of play, policy, and data availability.This paper compiles available data and analyses, and derives policy messages, for countries in the region and their partners (including development finance institutions). It characterises an enabling environment that can facilitate and expedite financing for water security commensurate with the challenges and distinctive opportunities in the region.
Classification-JEL: H23; H41; H54; L95; L98; Q25; Q53; Q54; Q58
Keywords: Asia, flood protection, infrastructure finance, irrigation, Pacific, sanitation, wastewater, water security, water supply
Creation-Date: 2021-03-26
Number: 171
Handle: RePEc:oec:envaaa:171-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Raphaël Jachnik
Author-Name: Alexander Dobrinevski
Title: Measuring the alignment of real economy investments with climate mitigation objectives: The United Kingdom’s buildings sector
Abstract: This paper explores data and methods to assess the alignment or misalignment with climate mitigation objectives of investments in the construction and refurbishment of residential and non-residential buildings. It takes the United Kingdom (UK) as a case study, where such investments reached GBP 162 billion (EUR 184 billion) in 2019 or 39% of UK gross fixed capital formation. The analysis trials different reference points that lead to varying results and each currently come with limitations in terms of coverage or granularity. Sector-level greenhouse gas (GHG) trajectories indicate that, in aggregate, investments in UK buildings have been insufficient, delayed or not aligned enough with caps set by UK Carbon Budgets, but such trajectories currently lack disaggregation for a more granular and insightful matching with investment data. Energy performance certificates (EPCs) allow for asset-level analyses: for instance, 79% of 2010-2019 investments in new built residential were in relatively energy efficient buildings but only 1% were consistent with more demanding recommendations towards the UK’s objective of reaching net-zero GHG in 2050. The coverage and reliability of EPCs, however, needs to be improved for older buildings, whose deep retrofitting is a major financing challenge. Applying Climate Bonds Initiative criteria for low-carbon buildings identifies investments eligible for green bond financing, but such criteria have partial sectoral coverage and are based on currently most efficient buildings within the existing stock, which makes them relatively easy to meet for investments in new built.Producing more complete and policy relevant assessments of aligned and misaligned investments at national and sectoral levels requires the availability of and access to comparable and granular data on decarbonisation targets and pathways consistent with the Paris Agreement temperature goals, GHG performance of assets, corporate and household investments, as well as underlying sources of financing.
Classification-JEL: E01; E22; G31; G32; H54; Q56; Q54; R31; R33
Keywords: buildings, capital expenditure, climate change, emissions, energy efficiency, finance, investment, low-greenhouse gas development, measurement, scenarios, taxonomy, tracking, United Kingdom
Creation-Date: 2021-03-29
Number: 172
Handle: RePEc:oec:envaaa:172-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Daniel Nachtigall
Author-Workplace-Name: OECD
Author-Name: Jane Ellis
Author-Workplace-Name: OECD
Author-Name: Sonja Peterson
Author-Workplace-Name: Kiel Institute for the World Economy
Author-Name: Sneha Thube
Author-Workplace-Name: Kiel Institute for the World Economy
Title: The economic and environmental benefits from international co-ordination on carbon pricing: Insights from economic modelling studies
Abstract: This paper assesses quantitative estimates based on economic modelling studies of the economic and environmental benefits from different forms of international co-ordination on carbon pricing. Forms of international co-ordination include: harmonising carbon prices (e.g. through linking carbon markets), extending the coverage of pricing schemes, phasing out fossil fuel subsidies, developing international sectoral agreements, and establishing co-ordination mechanisms to mitigate carbon leakage. All forms of international co-operation on carbon pricing can deliver benefits, both economic (e.g. lower mitigation costs) and/or environmental (e.g. reducing GHG emissions and carbon leakage). Benefits tend to be higher with broader participation of countries, broader coverage of emissions and sectors and more ambitious policy goals. Most, but not all, countries gain economic benefits from international co-operation, and these benefits vary significantly across countries and regions. Complementary measures outside co-operation on carbon pricing (e.g. technology transfers) could ensure that co-operation provides economic benefits for all countries.
Classification-JEL: F18; H23; Q54; Q56; Q58
Keywords: Border carbon adjustment, Climate change mitigation, Climate-economy-modelling, Fossil fuel subsidy reforms, Harmonising carbon prices, International Co-operation, Sectoral agreements
Creation-Date: 2021-04-01
Number: 173
Handle: RePEc:oec:envaaa:173-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Richard Juřík
Author-Workplace-Name: Ministry of the Environment of the Czech Republic
Author-Name: Nils Axel Braathen
Author-Workplace-Name: OECD
Title: Assessment of the air pollution tax and emission concentration limits in the Czech Republic
Abstract: This paper assesses the design of the air pollution tax in conjunction with a stringency analysis of the emission concentration limits in the Czech Republic. The analysis draws upon a detailed database containing environmental reporting by industrial stationary sources. The assessment of the emission concentration limits focuses on analysing the shift of the statutory limits between 2013 and 2017 and the corresponding real-life measured concentration on individual source basis. It provides an assessment of stringency of the air protection instrument and also of the vintage differentiation applied in the form of transitional schemes. The stringency analysis of the emission concentration limits stringency is related to the air pollution tax relief provision.
Classification-JEL: H21; H23; K32; P48; Q50
Keywords: air pollution, air pollution tax, air protection, emission concentration limits, environmental policy, policy design
Creation-Date: 2021-04-14
Number: 174
Handle: RePEc:oec:envaaa:174-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ioannis Tikoudis
Author-Workplace-Name: OECD
Author-Name: Luis Martinez
Author-Workplace-Name: International Transport Forum
Author-Name: Katherine Farrow
Author-Workplace-Name: OECD
Author-Name: Clara García Bouyssou
Author-Workplace-Name: University of Copenhagen
Author-Name: Olga Petrik
Author-Workplace-Name: International Transport Forum
Author-Name: Walid Oueslati
Author-Workplace-Name: OECD
Title: Exploring the impact of shared mobility services on CO2
Abstract: Policy action to avoid the impending societal costs of climate change is particularly warranted in transport sector, which is responsible for 30% of greenhouse gas emissions in OECD countries. To design appropriate interventions in this sector, policy makers should account for the recent emergence of shared mobility services in urban areas and their potential advantages in terms of emissions mitigation. This study estimates the impact that the widespread uptake of shared mobility services could have on the carbon footprint of urban transport. To this end, it simulates the share of each transport mode and aggregate emissions from passenger transport in 247 cities across 29 OECD countries between 2015 and 2050. The analysis indicates that they have the potential to eliminate, on average, 6.3% of urban passenger transport emissions by the end of this period.
Classification-JEL: R41; Q54
Keywords: CO2 emissions, mode competition, ridesharing, shared mobility, urban transport
Creation-Date: 2021-05-04
Number: 175
Handle: RePEc:oec:envaaa:175-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Rob Dellink
Author-Workplace-Name: OECD
Author-Name: Christine Arriola
Author-Workplace-Name: OECD
Author-Name: Ruben Bibas
Author-Workplace-Name: OECD
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Author-Name: Frank van Tongeren
Author-Workplace-Name: OECD
Title: The long-term implications of the COVID-19 pandemic and recovery measures on environmental pressures: A quantitative exploration
Abstract: This paper analyses the long-term effects of the COVID-19 pandemic and associated government responses on the environment. It uses large-scale modelling to investigate the impact of sectoral and regional shocks to the economy until 2040. These detailed economic impacts are linked to a range of environmental pressures, including greenhouse gas emissions, emissions of air pollutants, the use of raw materials and land use change. The short-term reductions in environmental pressures are significant: in 2020, energy-related greenhouse gas and air pollutant emissions dropped by around 7%. Environmental pressures related to agriculture observed a smaller drop in 2020. The reduction in the use of non-metallic minerals, including construction materials, reached double digits. From 2021, emissions are projected to increase again, gradually getting closer to the pre-COVID baseline projection levels as growth rates recover fully. But there is a long-term – potentially permanent – downward impact on the levels of environmental pressures of 1‑3%.
Classification-JEL: D58; O44; Q53; Q54
Keywords: air pollution, climate change, COVID-19, general equilibrium, land use change, materials use
Creation-Date: 2021-05-21
Number: 176
Handle: RePEc:oec:envaaa:176-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Dauren Oshakbaev
Author-Name: Zhanna Akisheva
Author-Name: Alexandre Martoussevitch
Author-Workplace-Name: OECD
Title: Developing a national water security indicators framework in Kazakhstan
Abstract: Water security is a matter of great national importance for Kazakhstan, with its Security Council meeting on 26 June 2019 devoted to “Ensuring Water Security”. This paper presents recent progress in Kazakhstan with regard to identifying water security priorities and establishing indicators to monitor and measure progress towards achieving water security. The paper also analyses those water security indicators that simultaneously relate to the “nationalised” Green Growth Indicators (GGIs) and Sustainable Development Goal (SDG) indicators that are relevant to water security, and also identifies opportunities for complimentary indicators to be developed to track the full suite of water security targets. The paper identifies remaining challenges for future work in this domain, including improving data collection and reporting; and integrating water security indicators into relevant policy documents, strategies and plans to secure the technical and political attention necessary to drive progress in this domain.
Classification-JEL: Q25; Q15; Q28; Q56; D78
Keywords: Kazakhstan, SDG indicators, water security, water security indicators, water-related green growth
Creation-Date: 2021-06-02
Number: 177
Handle: RePEc:oec:envaaa:177-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Gunnar S. Eskeland
Author-Workplace-Name: Norwegian School of Economics
Author-Name: Shiyu Yan
Author-Workplace-Name: Aarhus University
Title: The Norwegian CO2-differentiated motor vehicle registration tax: An extended Cost-Benefit Analysis
Abstract: In addition to a longstanding CO2 component in fuel taxes, Norway has used two main policy instruments to decarbonise its car fleet. A CO2-differentiated registration tax gives strong and continuous incentives to buy cars with lower registered CO2 intensity (or higher fuel efficiency). Moreover, generous tax incentives, including registration tax and VAT exemptions, are applied to zero-emission cars, and have given Norway the highest electric vehicle sales in the world. This paper analyses effects of the two instruments (the vehicle registration tax and tax exemption) using an excellent and detailed data set.
Classification-JEL: L62; Q54; Q41; H23; Q51
Keywords: co-benefits, Cost-benefit analysis, Distributional effects, environmental externality, Greenhouse gas emission reduction, low-emission vehicles, policy instruments, vehicule registration tax
Creation-Date: 2021-06-18
Number: 178
Handle: RePEc:oec:envaaa:178-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Aayush Tandon
Title: Transition finance: Investigating the state of play: A stocktake of emerging approaches and financial instruments
Abstract: With only a decade left to reduce emissions drastically, the scale, pace and extent of global transformation needed is truly demanding. Long-term emission goals and the nature of the low-emission transition in each country will be a function of its unique socio-economic priorities, capabilities, resource endowment, vision for post 2050 economic structure, and social and political acceptability of what constitutes a just transition. As we enter the “decade for delivery”, a whole of economy approach is needed to realise the low-emission transition. This includes focusing not only on upscaling zero and near-zero emitting technologies and businesses but also supporting, to the extent possible, the progressive lowering of emissions in high emitting and hard to abate sectors. In this context, “transition finance” is gaining traction among governments and market participants. To identify the core features of transition finance, this paper reviews 12 transition relevant taxonomies, guidance and principles by public (Japan, Singapore, Malaysia, Russia, European Union, EBRD) and private actors (Climate Bonds Initiative, International Capital Markets Association, Research Institute for Environmental Finance Japan, AXA Investment Managers and DBS), as well as 39 transition relevant financial instruments (vanilla transition bonds, key performance indicator-linked fixed income securities). This paper does not aim to define transition finance, but rather to review emerging approaches and instruments to highlight commonalities, divergences as well as issues to consider for coherent market development and progress towards global environmental objectives. Based on the review, this paper puts forth two preliminary views. First, that the essence of transition finance is triggering entity-wide change to reduce exposure to transition risk; second, that transition finance may be better understood as capital market instruments with a set of core functions/attributes rather than a specific format or label.
Classification-JEL: D5; E4; Q01
Keywords: finance, low-carbon transition, sustainable debt, taxonomy, transition risk
Creation-Date: 2021-08-05
Number: 179
Handle: RePEc:oec:envaaa:179-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Anne Lardoux de Pazzis
Author-Workplace-Name: Vertalix Consulting
Author-Name: Amandine Muret
Author-Workplace-Name: Vertalix Consulting
Title: The role of intermediaries to facilitate water-related investment
Abstract: A wide range of organisations operate at the interface between the demand for (e.g. water agencies or service providers) and the supply of finance (e.g. financing institutions and financiers at large) with the aim of bridging the substantial financing gap for water-related investments. These entities, referred to in this analysis as “intermediaries”, include those working upstream on the enabling environment for finance facilitation; transaction advisory supporting partnership development (of which financing is one component), private sector lending windows of donors and international financial institutions, and dedicated financing facilities. These intermediaries play multiple roles along the investment value chain, in various geographies and at various scales (international, national, regional, local). However a systematic assessment of these intermediaries, their role and the key functions performed has been lacking to date along with an assessment of the gaps, overlaps and misalignments compared with the existing bottlenecks to mobilise financing. The analysis presented in this Working Paper aims to fill this gap. This paper identifies and analyses a sample of 52 diverse intermediaries active in deploying one or more key functions across the investment value chain for 3 specific sub-sectors: utilities, small scale water and sanitation service providers and nature-based solutions. The analysis assesses the extent to which the activities of these intermediaries is aligned with the critical functions needed to mobilise finance across the sub-sectors. It identifies gaps, reduncies and misalignments and calls for a shift from the current opportunistic approach to a more strategic approach in the design and activities of intermediaries, supported by governments and financial institutions. The paper contributes to a forthcoming OECD report Financing a Water Secure Future that distils key insights from the past several years of engagement via the Roundtable on Financing Water and related analytical work. It was jointly developed by the OECD and The World Bank Global Water Practice, in the context of our cooperation on the Roundtable on Financing Water.
Classification-JEL: H41; H54; L95; L98; Q25; Q53; Q54; Q58
Keywords: flood protection, infrastructure finance, investment, irrigation, sanitation, wastewater, water security, water supply
Creation-Date: 2021-09-14
Number: 180
Handle: RePEc:oec:envaaa:180-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Brendan Coleman
Author-Workplace-Name: OECD
Title: Assessment of a social discount rate and financial hurdle rates for energy system modelling in Viet Nam
Abstract: Viet Nam’s sustained economic development is driving increasing demand for electricity with generation capacity predicted to nearly double over the next decade. With the majority of economic hydropower resources utilised, delays in coal power pipelines, and increasing energy insecurity, Viet Nam has pivoted its electricity sector development plans to further prioritize the deployment of wind and solar generation. A clean energy transition such as this can deliver multiple social and economic benefits related to cost reductions, improved energy security, and public health.This working paper was prepared to support least-cost energy sector planning in Viet Nam particularly for the upcoming Viet Nam Energy Outlook 2021 (VEO21) being prepared in partnership between Viet Nam’s Ministry of Industry and Trade (MOIT) and the Danish Energy Agency (DEA). This working paper discusses the use of discounting in energy models and the potential impact discount rate selection may have on a model’s cost-optimised technology selections. The paper also analyses the clean energy finance environment in Viet Nam to identify opportunities for policy levers to reduce the prevailing cost of capital and how these cost implications can be tested in the VEO21 modelling exercise.The main outputs of this working paper are two sets of model inputs, an estimate for an appropriate social discount rate and secondly a set of high and low financial hurdle rates for renewable energy technologies for use in sensitivity or scenario analysis.
Classification-JEL: O21; Q01; Q48; G18
Keywords: Clean Energy, Cost of Capital, Discount Rates, Energy Planning, Hurdle Rates
Creation-Date: 2021-09-29
Number: 181
Handle: RePEc:oec:envaaa:181-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Elisabetta Cornago
Author-Name: Peter Börkey
Author-Workplace-Name: OECD
Author-Name: Andrew Brown
Author-Workplace-Name: OECD
Title: Preventing single-use plastic waste: Implications of different policy approaches
Abstract: Single-use plastics constitute approximately half of global plastic waste generation. Their use in consumer goods and packaging has been the focus of recent waste prevention policy due to the importance of the volumes of waste generated and the frequency with which these materials are littered. To address several externalities that emerge across the life-cycle of single-use plastics, multiple policies can be combined to constitute an effective policy mix. In several markets, market-based policy instruments and policy bans have helped to curb waste generation and littering of single-use plastics. However, the effectiveness of these interventions depends to an important extent on whether environmentally preferable substitute materials or products are available, and on whether the measures are effectively enforced. Effective policy intervention requires a policy mix that covers single-use plastics, as well as their substitutes, and that includes an emphasis on monitoring and enforcement, in order to help minimise burden-shifting of environmental impacts.
Classification-JEL: H23; L15; Q53; Q58
Keywords: circular economy, extended producer responsibility, plastics pollution, product stewardship, resource efficiency, sustainable consumption, waste management
Creation-Date: 2021-10-20
Number: 182
Handle: RePEc:oec:envaaa:182-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Frithjof Laubinger
Author-Workplace-Name: OECD
Author-Name: Peter Börkey
Author-Workplace-Name: OECD
Title: Labelling and Information Schemes for the Circular Economy
Abstract: Circular Economy Labels and Information Schemes (CELIS) compose the group of labels, certifications, standards of information schemes that fully or partially address one or more resource efficiency or circular economy elements. CELIS can play an important role in fostering circular economy activities. They can empower market actors to distinguish and discriminate products based on environmental performance, which stimulates market development and innovation in resource efficient products and services. Information systems also enable better supply chain management and allow firms to identify environmental impacts and risks in their supply chains.This paper provides an overview of the current CELIS landscape, assesses the drivers and barriers to a greater uptake of business-to-business information systems, and identifies circular economy aspects that are underdeveloped in the existing consumer labels landscape.
Classification-JEL: O14; Q53; Q56; Q58; D82; L15
Keywords: circular economy, information policy approaches, natural resources, resource efficiency, sustainable consumption
Creation-Date: 2021-11-04
Number: 183
Handle: RePEc:oec:envaaa:183-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Frithjof Laubinger
Author-Workplace-Name: OECD
Author-Name: Andrew Brown
Author-Workplace-Name: OECD
Author-Name: Maarten Dubois
Author-Workplace-Name: OECD
Author-Name: Peter Börkey
Author-Workplace-Name: OECD
Title: Modulated fees for Extended Producer Responsibility schemes (EPR)
Abstract: One of the key objectives of Extended Producer Responsibility (EPR) is to instigate design for the environment. In collective EPR schemes, the fee schedule set by Producer Responsibility Organisations (PROs) is typically quite simple and provides weak incentives for design change by producers. Fee modulation, changing fees paid by producers in a collective EPR scheme based on product design, can provide producers with stronger design incentives, but adds complexity to the system. The paper defines a classification for fee modulation (by criteria and methodology) and discusses potential challenges and opportunities. It concludes with key policy insights that can further stimulate this emerging policy approach.
Classification-JEL: L15; O14; Q53; Q56; Q58
Keywords: circular economy, extended producer responsibility, product stewardship, resource efficiency, sustainable consumption, waste management
Creation-Date: 2021-11-04
Number: 184
Handle: RePEc:oec:envaaa:184-EN

Template-type: ReDIF-Paper 1.0
Author-Name: R. Quentin Grafton
Author-Workplace-Name: Australian National University
Author-Name: Hoang Long Chu
Author-Workplace-Name: Australian National University
Author-Name: Harry Nelson
Author-Workplace-Name: University of British Columbia
Author-Name: Gérard Bonnis
Author-Workplace-Name: OECD
Title: A global analysis of the cost-efficiency of forest carbon sequestration
Abstract: This paper proposes a ranking of the countries where forest carbon sequestration is the most cost-efficient among 166 countries for which data are available. Taking into account the main cost factors leads to a more nuanced ranking of the countries to be favoured for cost-efficient forest carbon sequestration compared to the assumption that these would always be in tropical areas with high rainfall. The ranking reflects the differences in the opportunity cost of land use and labour cost (production costs), the quality of the business environment (transaction costs), natural conditions (forest productivity), wildfire risk and the avoided GHG emissions from alternative land use. Cost-efficiency also depends on the type of forest project (afforestation, reforestation or forest conservation) and how private (wood harvest) and non-private (environmental and social) co-benefits are counted. A sensitivity analysis is undertaken to examine the robustness of the results with respect to uncertainties in values of the cost and quantity factors of forest carbon sequestration. The results support the view that forests can be a cost-efficient way to offset GHG emissions and that significant cost reductions are possible by targeting the country and sub-national regions in which to locate forest carbon sequestration projects. The report also reviews the literature on the significance and cost of forest carbon sequestration and provides an overview of forest carbon offset schemes.
Classification-JEL: Q23; Q54; Q57; Q58
Keywords: carbon offsets, climate change mitigation, forest carbon capture, forest co-benefits, forest cost-efficiency
Creation-Date: 2021-11-30
Number: 185
Handle: RePEc:oec:envaaa:185-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Mikael Skou Andersen
Author-Workplace-Name: Aarhus University
Author-Name: Gérard Bonnis
Author-Workplace-Name: OECD
Title: Climate mitigation co-benefits from sustainable nutrient management in agriculture: Incentives and opportunities
Abstract: Nitrogen management policies introduced in the past decades by some OECD countries have succeeded in reducing excess nitrogen use by farmers, but half of global mineral fertiliser use is still lost for crops. While about half of OECD countries have nutrient surpluses of between 25-50 kg N per hectare, a smaller number of countries are still having surpluses of more than 100 kg N per hectare. Since the production and use of mineral fertilisers have a large greenhouse gas footprint and to achieve the deep reductions in emissions as the Paris Agreement aims for, nitrogen management policies could be reinforced and pursued more systematically. The paper identifies significant reduction potential by eliminating the excess use of nitrogen fertilisers and improving efficiency in the use of manure-nitrogen, which could be obtained with a redesign of nitrogen management policies and schemes for public financial support. To underpin such measures a tax on the nitrogen surplus at farm level could play a vital role. Based on the available estimates of environmental externalities of nitrogen, the paper identifies an average rate of EUR 1-2 as a suitable starting point for a tax or penalty on the surplus application of nitrogen. The paper also explores the opportunities for sustainable nutrient management in agriculture with climate mitigation benefits relating to nitrous oxides in particular.
Classification-JEL: D62; H23; H87; O13; P52; Q15; Q24; Q51; Q55; Q58
Keywords: agricultural fertilisers, climate change mitigation, environmental taxation, manure, nitrogen pollution
Creation-Date: 2021-12-02
Number: 186
Handle: RePEc:oec:envaaa:186-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Susana Mourato
Author-Workplace-Name: London School of Economics
Author-Name: Ganga Shreedhar
Author-Workplace-Name: London School of Economics
Title: Conducting economic valuation surveys during extreme events
Abstract: There is no guidance on how to deal with the effects of catastrophic events, like the COVID-19 pandemic, on stated preference survey responses, despite the possible impact such events can have on stated values and survey responses. This paper provides a concise analysis of the likely effects of extreme events on stated preference surveys, focusing on the validity and temporal stability of estimated values, and offers a set of recommendations. These recommendations can also be of use for designing other types of household and individual surveys, beyond economic valuation surveys.
Classification-JEL: C83; H41; Q51
Keywords: Catastrophic events, Choice experiment, Choice modelling, Contingent valuation, COVID-19, Extreme events, Guidelines, Nonmarket valuation, Questionnaire, Stated preference, Survey
Creation-Date: 2021-12-01
Number: 187
Handle: RePEc:oec:envaaa:187-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Francesco Vona
Author-Workplace-Name: French Economic Observatory
Title: Managing the distributional effects of environmental and climate policies: The narrow path for a triple dividend
Abstract: This paper reviews the literature on the distributional effects of environmental and climate policies, focusing on ex-post empirical evidence. It decomposes the distributional effects into the main dimensions to understand which policy packages are more likely to achieve a triple dividend of environmental effectiveness, economic efficiency and equity. This paper also takes stock of the related literature on the political acceptability of environmental policies to assess proposals of compensation policy packages, including green recovery plans, environmental tax reforms and progressive subsidies to green technologies.
Classification-JEL: D30; H22; H23; Q52
Keywords: distributional analysis, environmental policy, inequality
Creation-Date: 2021-12-15
Number: 188
Handle: RePEc:oec:envaaa:188-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Antoine Dechezleprêtre
Author-Workplace-Name: OECD
Author-Name: Tobias Kruse
Author-Workplace-Name: OECD
Title: The effect of climate policy on innovation and economic performance along the supply chain: A firm- and sector-level analysis
Abstract: The paper empirically assesses the effect of climate policy stringency on innovation and economic performance, both directly on regulated sectors and indirectly through supply chain relationships. The analysis is based on a combination of firm- and sector-level data, covering 19 countries and the period from 1990 to 2015. The paper shows that climate policies are effective at inducing innovation in low-carbon technologies in directly regulated sectors. It does not find evidence that climate policies induce significant innovation along the supply chain. In addition, there is no evidence that climate policies – through the channel of clean innovation – either harm or improve the economic performance of regulated firms. This supports the evidence that past climate policies have not been major burdens on firms’ competitiveness, and that clean innovation may enable firms to compensate for the potential costs implied by new environmental regulations.
Classification-JEL: Q55; Q58; O38; L25
Keywords: Firm performance, Low carbon innovation, Policy evaluation, Porter Hypothesis
Creation-Date: 2022-02-15
Number: 189
Handle: RePEc:oec:envaaa:189-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Réka Soós
Author-Name: Andrew Whiteman
Author-Name: Gabriela Gavgas
Title: The cost of preventing ocean plastic pollution
Abstract: This paper provides estimates of the cost of preventing land-based plastic leakage into the ocean, covering 38 OECD member countries and 10 selected major plastic waste emitters in Asia and Africa. The study estimates capital costs at EUR 54 billion in the Moderate Ambition scenario and EUR 74 billion in the High Ambition scenario. The annualised per-capita costs range between EUR 0.2 to 6.5 in the Moderate Ambition scenario and from EUR 0.8 to 6.5 in the High Ambition scenario. These cost estimates are much lower than UNEP and ISWA estimates of the cost of inaction of inadequate waste management, roughly USD 9 to 45 per capita. Differences in estimated costs are found to depend on countries’ waste policy stringency and waste management infrastructure. This paper contributes to OECD work in support of a sustainable ocean economy and the Global Plastics Outlook report.
Classification-JEL: H23; Q51; Q52; Q53
Keywords: circular economy, extended producer responsibility, leakage, marine litter, plastic, product stewardship, resource efficiency, sustainable consumption, waste management
Creation-Date: 2022-03-04
Number: 190
Handle: RePEc:oec:envaaa:190-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Daniel Nachtigall
Author-Name: Jane Ellis
Author-Name: Sofie Errendal
Title: Carbon pricing and COVID-19: Policy changes, challenges and design options in OECD and G20 countries
Abstract: This paper assesses the role of carbon pricing in a sustainable recovery from COVID-19. It tracks the policy changes in carbon pricing within OECD and G20 countries between January 2020 and August 2021 of the COVID-19 pandemic. Carbon pricing as defined here includes emissions trading schemes, fossil fuel support and carbon, fuel excise or aviation taxes. The paper also highlights the need for the recovery to be sustainable and discusses the advantages, limitations and uses of carbon pricing therein. In addition, it describes additional challenges to as well as increased rationale for carbon pricing in the pandemic. It provides evidence on the effects of carbon pricing on the challenges and discusses carbon pricing design elements to help overcome those challenges. The paper concludes that there were more policy changes with an expected negative impact on climate. However, it is likely that the impact of the climate-positive changes – which are broader in coverage and scope - will outweigh the climate-negative changes.
Classification-JEL: H23; Q54; Q56; Q58
Keywords: sustainable recovery, COVID-19, carbon pricing, carbon tax, emissions trading system, ETS, Fossil fuel subsidies, revenue recycling, climate change, climate mitigation, NDC
Creation-Date: 2022-03-10
Number: 191
Handle: RePEc:oec:envaaa:191-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Eva Barteková
Author-Workplace-Name: OECD
Author-Name: Peter Börkey
Author-Workplace-Name: OECD
Title: Digitalisation for the transition to a resource efficient and circular economy
Abstract: Digital transformation is increasingly recognised as a means to help unlocking the benefits of more inclusive and sustainable growth and enhanced social well-being. In the environmental context, digitalisation can contribute to decoupling economic activity from natural resource use and their environmental impacts. This paper takes stock of the implications of digitalisation for the transition to a resource efficient and circular economy. Particularly, the paper provides insights into how digitalisation may fuel circular business models in the private sector, and discusses the role of digital technologies in addressing some important market failures that stand in the way to scaling up circular activities. It also offers a public sector perspective, by exploring how digital technologies support effective delivery of circular economy policies, enabling better policy design, reshaping government-citizen interaction and improving implementation of policies. Additionally, the paper maps potential unintended consequences of the digital circular transition, including general risks related to data, security, privacy and transparency, as well as rebound effects and unexpected regulatory interventions.
Classification-JEL: L22; L23; O14; Q53; Q55; Q58
Keywords: circular business models, circular economy, digital technologies, market failures, rebound effects, resource efficiency
Creation-Date: 2022-03-28
Number: 192
Handle: RePEc:oec:envaaa:192-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Sigita Strumskyte
Author-Workplace-Name: OECD
Author-Name: Sara Ramos Magaña
Author-Workplace-Name: OECD
Author-Name: Helene Bendig
Author-Workplace-Name: OECD
Title: Women’s leadership in environmental action
Abstract: Women’s participation in environmental decision-making is important for advancing both gender equality and environmental action. The presence of women in political decision-making is linked to more ambitious climate goals and policies. Women on corporate boards consistently prioritise environmental, social and governance issues, including climate and sustainability. In civil society, women around the world are creating powerful networks to combat environmental degradation and tackle climate-related inequalities. Despite these benefits, significant gender gaps in environmental leadership persist across countries and sectors, with some of the widest occurring in countries especially vulnerable to climate change and where its gender‑differentiated impacts are most acute. This paper reviews existing evidence on women’s environmental leadership in public governance, environmentally-sensitive industries, and civil society, and its impact on environmental outcomes in these sectors. It identifies potential policy actions as well as areas for further data collection and research.<BR>La participation des femmes au processus décisionnel en matière d'environnement est importante pour faire progresser l'égalité des sexes ainsi que l'action environnementale. La présence des femmes dans la prise de décision politique est liée à des objectifs et des politiques climatiques plus ambitieux. Les femmes au sein des conseils d'administration accordent systématiquement la priorité aux questions environnementales, sociales et de gouvernance, y compris celles du climat et de la durabilité. Dans la société civile, les femmes du monde entier créent des réseaux puissants pour lutter contre la dégradation de l'environnement et les inégalités liées au climat. Malgré ces avantages, des écarts importants entre les sexes en matière de leadership environnemental persistent dans les pays et les secteurs, avec les plus importants se produisant dans les pays particulièrement vulnérables au changement climatique et où ses impacts différentiels selon le sexe sont les plus aigus. Ce document examine des données existantes sur le leadership environnemental des femmes dans la gouvernance publique, les industries sensibles à l'environnement et la société civile, ainsi que son impact sur les résultats environnementaux dans ces secteurs. Il identifie des actions politiques potentielles ainsi que les domaines dans lesquels des données et des recherches supplémentaires sont nécessaires.
Classification-JEL: D71; J16; J18; M51; Q56
Keywords: cclimate change, environmental action, environmental sustainability, gender environment nexus, gender equality, leadership, women's empowerment
Creation-Date: 2022-04-29
Number: 193
Handle: RePEc:oec:envaaa:193-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Andrew Brown
Author-Workplace-Name: OECD
Author-Name: Frithjof Laubinger
Author-Workplace-Name: OECD
Author-Name: Peter Börkey
Author-Workplace-Name: OECD
Title: Monitoring trade in plastic waste and scrap 2022
Abstract: Trade in plastic waste and scrap plays a potentially important role in helping to strengthen markets for recycled plastics as it can help to achieve economic efficiency through for instance economies of scale. But such trade has also been criticised for leading to plastic pollution when recipient countries lack capacity to treat such waste in an environmentally sound manner. This report aims to identify and assess trends in trade patterns of plastic waste and scrap in the context of recent policy developments, particularly the strengthening of controls applied in the context of the Basel Convention, which came into force at the beginning of 2021. One of the findings is that OECD Member Countries continue to make up a significant share of global trade in plastic scrap and waste (89% of global reported exports and 67% of global reported imports by weight), but that the trade surplus has continued to shrink, as well as the overall volume of trade.
Classification-JEL: F18; L65; Q53; Q56
Keywords: circular economy, plastics, trade, waste management
Creation-Date: 2022-04-20
Number: 194
Handle: RePEc:oec:envaaa:194-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ioannis Tikoudis
Author-Name: Tobias Udsholt
Author-Name: Walid Oueslati
Title: Tackling air pollution in dense urban areas: The case of Santiago, Chile
Abstract: Reducing air pollution is a major policy challenge, especially in densely populated urban areas where human exposure to emissions is considerable. This paper develops and examines a series of scenarios for the evolution of transport-related emissions in the area of Santiago, Chile. The analysis suggests that ramping up efforts to electrify the bus fleet may eliminate 25% of the CO2 and at least 10% of the remaining air pollutant emissions in 2050. These figures increase to 45% and 30%, respectively, if rapid electrification is accompanied by tax schemes. The paper highlights the potential synergies of policies curbing climate change and tacking air pollution from the viewpoint of urban transport.
Classification-JEL: Q52; Q53; Q55; R13; R41; R48; H23
Keywords: air pollution, bus electrification, carbon tax, road pricing, urban transport
Creation-Date: 2022-06-16
Number: 195
Handle: RePEc:oec:envaaa:195-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Michael Mullan
Author-Name: Nicola Ranger
Title: Climate-resilient finance and investment: Framing paper
Abstract: Achieving climate-resilient economies and societies will not only require increasing the billions of financial flows for adaptation, but also shifting broader -- public and private -- financial flows and investment away from potentially mal-adapted activities towards those that contribute to climate-resilient economies and societies. The goal of aligning finance with climate-resilient development is included in article 2.1c of the Paris Agreement, yet efforts to define and operationalise this concept are at an early stage. This framing paper summarises the current status of these efforts and outlines a way forward for defining, measuring and mobilising adaptation-aligned finance.
Classification-JEL: H54; Q54; Q58
Keywords: adaptation, climate change, finance, risk management
Creation-Date: 2022-07-21
Number: 196
Handle: RePEc:oec:envaaa:196-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Elisa Lanzi
Author-Workplace-Name: OECD
Author-Name: Enrico Botta
Author-Workplace-Name: OECD
Author-Name: Grace Alexander
Author-Workplace-Name: OECD
Author-Name: Daniel Ostalé Valriberas
Author-Workplace-Name: OECD
Author-Name: Zbigniew Klimont
Author-Workplace-Name: International Institute for Applied Systems Analysis
Author-Name: Gregor Kiesewetter
Author-Workplace-Name: International Institute for Applied Systems Analysis
Author-Name: Chris Heyes
Author-Workplace-Name: International Institute for Applied Systems Analysis
Author-Name: Rita Van Dingenen
Author-Workplace-Name: European Commission, Joint Research Centre
Title: The economic benefits of international co-operation to improve air quality in Northeast Asia: A focus on Japan, Korea and China
Abstract: Air pollution is a global challenge to people’s health and has severe economic consequences. The region of Northeast Asia is no exception. Across most regions in Japan, and in the entire territories of Korea and China, annual average concentrations of fine particulate matter are above the guideline levels indicated by the World Health Organisation, indicating a risk to health. Policy action to tackle air pollution across the three countries, could prevent air pollution related illnesses and deaths, without affecting economic growth.This report presents projections for the impact of air pollution polices until 2050, with differing levels of regional coordination. Projections for current policies are compared with unilateral policy action, whereby each of the three countries introduce more stringent policies to tackle air pollution; alongside regionally coordinated policy action by all three countries; and policy action on a global level. The report presents the health, agricultural and economic impacts, and identifies considerable benefits from further coordination on air pollution policies, such as with regional and global policy action.
Classification-JEL: C68; Q53; Q52
Keywords: air pollution, air quality, best available techniques, computable general equilibrium models
Creation-Date: 2022-07-29
Number: 197
Handle: RePEc:oec:envaaa:197-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ioannis Tikoudis
Author-Workplace-Name: OECD
Author-Name: Rose Mba Mebiame
Author-Workplace-Name: OECD
Author-Name: Walid Oueslati
Author-Workplace-Name: OECD
Title: Projecting the fuel efficiency of conventional vehicles: The role of regulations, gasoline taxes and autonomous technical change
Abstract: The fuel efficiency of conventional private vehicles is a key input in the design of several economic and environmental policies. Reliable projections of the fuel efficiency variable can improve estimates on the future emission savings from policies promoting vehicle replacement, and on future revenues from fuel taxes. This paper examines the evolution of fuel efficiency using data on cars entering the US market from 1984 to 2020. It uses a series of new indexes for the gasoline cost in OECD countries and the stringency of fuel economy regulations. The paper shows that the effect of fuel prices and taxes is significant and robust. Doubling the user cost of gasoline with a stringent carbon tax will cause an irreversible increase in fuel efficiency by 6-11%. Increasing the stringency of the US CAFE standards by 10% raises average fuel efficiency by 2-3%. The impact of cross-market regulations is ambiguous.
Classification-JEL: H23; Q48; Q55; R48; O31
Keywords: CAFE standards, conventional cars, EU regulations, fuel economy, fuel efficiency, fuel taxes, gasoline prices
Creation-Date: 2022-09-15
Number: 198
Handle: RePEc:oec:envaaa:198-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Damien Dussaux
Author-Workplace-Name: OECD
Author-Name: Shardul Agrawala
Author-Workplace-Name: OECD
Title: Quantifying environmentally relevant and circular plastic innovation: Historical trends, current landscape and the role of policy
Abstract: Innovation is key to reducing the environmental impacts of plastics. However, literature is generally lacking in the field of environmentally relevant plastics innovation. This paper develops an innovative conceptual framework to document and map environmentally relevant plastics innovation. Using this framework, it develops plastics innovation metrics using patents and trademarks to quantify trends over time, across countries, and to establish preliminary empirical links between policies and innovation outcomes.Plastic waste prevention and recycling innovation has increased slightly more rapidly than overall plastics innovation. In contrast, innovation in bioplastics have witnessed a significant slowdown in recent years. Another key finding of this analysis is that environmentally relevant plastics innovation is concentrated in OECD countries and China and that top inventor countries are not specialized in the same technologies. Finally, the patent analysis shows some empirical evidence that recycling regulations may have triggered innovative activity in plastic recycling.
Classification-JEL: O31; O38; Q53; Q55; Q58
Keywords: Circular economy, Environmental Policy, Innovation, Plastics, Recycling, Waste
Creation-Date: 2022-09-21
Number: 199
Handle: RePEc:oec:envaaa:199-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jolien Noels
Author-Workplace-Name: OECD
Author-Name: Raphaël Jachnik
Author-Workplace-Name: OECD
Title: Assessing the climate consistency of finance: Taking stock of methodologies and their links to climate mitigation policy objectives
Abstract: This paper analyses existing methodologies developed by commercial services providers, research institutes or civil society organisations for investors and financial institutions, to assess the alignment of their assets and portfolios with the Paris Agreement temperature goal. The analysis is based on four main analytical dimensions: coverage of financial asset classes, choice of greenhouse gas (GHG) performance metrics, selection of climate change mitigation scenarios, and approach for aggregating alignment assessment for a given asset class and at portfolio level. Within these dimensions, the analysis highlights that a range of different and complex methodological choices, as well as current scope and data limitations, impact the environmental integrity and policy relevance of alignment or misalignment results. The paper provides suggestions for improved and more comprehensive financial sector alignment assessment. These include the development of different complementary methodologies to cover a broader range of financial asset classes than the current main focus on listed corporate equity, the development of more tailored mitigation scenarios by climate policy and science communities, better communication of uncertainties by all stakeholders, and the need for a series of indicators to assess progress and impacts that include but are not limited to GHG based alignment assessments.
Classification-JEL: G23; G24; Q54; Q56
Keywords: climate alignment assessment methodologies, climate change mitigation scenarios, finance, greenhouse gas emissions, Investment
Creation-Date: 2022-10-04
Number: 200
Handle: RePEc:oec:envaaa:200-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Mikaël J. A. Maes
Author-Workplace-Name: OECD
Author-Name: Abel Gonzales-Hishinuma
Author-Workplace-Name: OECD
Author-Name: Ivan Haščič
Author-Workplace-Name: OECD
Author-Name: Claire Hoffmann
Author-Workplace-Name: OECD
Author-Name: Alexandre Banquet
Author-Workplace-Name: OECD
Author-Name: Paolo Veneri
Author-Workplace-Name: OECD
Author-Name: Alexandre Bizeul
Author-Workplace-Name: International Energy Agency
Author-Name: Arnau Risquez Martin
Author-Workplace-Name: International Energy Agency
Author-Name: Roberta Quadrelli
Author-Workplace-Name: International Energy Agency
Title: Monitoring exposure to climate-related hazards: Indicator methodology and key results
Abstract: This paper supports countries in understanding the potential impact of climate-related natural hazards by assessing the exposure of people and assets to these hazards. It develops indicators of climate-related hazards and exposures for seven hazard types (extreme temperature, extreme precipitation, drought, wildfire, wind threats, river flooding and coastal flooding) and four exposure variables (cropland, forests, urban areas and population density). The paper presents the associated methodologies and discusses the global geospatial datasets used to construct the indicators. It shows that it is possible to develop exposure indicators for climate-related hazards with a global geographic coverage at the national and subnational levels. The results, presented for 52 IPAC countries, suggest that all countries are exposed to one or more climate-related natural hazards, but with significant differences in the occurrence and intensity of such hazards. The empirical evidence presented here points to the urgency to take strong climate change mitigation measures. It also highlights the need to accelerate efforts towards the global goal on adaptation to strengthen resilience and reduce vulnerability to climate change in the context of the Paris Agreement.
Classification-JEL: Q15; Q2; Q54; R11
Creation-Date: 2022-10-07
Number: 201
Handle: RePEc:oec:envaaa:201-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Casey Brown
Author-Name: Fred Boltz
Author-Name: Kathleen Dominique
Title: Strategic Investment Pathways for resilient water systems
Abstract: Water infrastructure investments are typically capital-intensive and long-lived, involving significant costs and benefits. Their performance over operational lifetimes is highly dependent on the vagaries of the hydrological cycle and subject to the risks and uncertainties associated with climate change. The challenge is to make the best use of scarce financial resources to deliver desired water services in the context of these complicating factors. Ideally, planning for water-related investments should be robust to known hazards and flexible to adapt to an uncertain future. This paper presents a conceptual and analytical framework to sequence water-related investments along “Strategic Investment Pathways”. This approach considers a range of diverse investments over multiple scenarios and evaluates options relative to stakeholder-defined goals. It explicitly considers key dynamic processes, interdependencies and feedbacks within the water system. The aim is to inform investment decisions that contribute to water system resilience through effective and adaptive management over time.
Classification-JEL: H41; H54; L95; L98; Q25; Q53; Q54; Q58
Keywords: flood protection, infrastructure finance, investment, irrigation, sanitation, wastewater, water security, water supply
Creation-Date: 2022-11-02
Number: 202
Handle: RePEc:oec:envaaa:202-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Daniel Nachtigall
Author-Name: Luisa Lutz
Author-Name: Miguel Cárdenas Rodríguez
Author-Name: Ivan Haščič
Author-Name: Rodrigo Pizarro
Title: The climate actions and policies measurement framework: A structured and harmonised climate policy database to monitor countries' mitigation action
Abstract: There are major gaps in the measurement of the adoption and stringency of countries’ climate actions and policies, notably in a manner coherent across countries, time, sectors and instrument types. The climate actions and policies measurement framework (CAPMF) aims to fill this gap. It is a structured and harmonised climate mitigation policy database that informs about countries’ climate action. The CAPMF was developed under the International Programme for Action on Climate (IPAC). It comprises 128 policy variables, grouped into 56 policy instruments and other climate actions, covering the 52 countries participating in IPAC and the period 2000-2020. The CAPMF is the most comprehensive internationally harmonised climate-related policy database currently available. Results indicate that IPAC countries strengthened their climate action between 2000 and 2020 in terms of both policy adoption and policy stringency, although individual countries progressed at different paces. Policy mixes in many countries changed from cross-sectoral to a more sectoral focus and from non-market to market-based approaches. Importantly, results suggest a positive relationship between stronger climate action and greater emissions reductions but further analysis is needed to fully assess policy effectiveness.
Classification-JEL: H23; Q48; Q54; Q58
Keywords: , non-market-based instruments, carbon pricing, climate action, climate change, climate policy, market-based instruments
Creation-Date: 2022-11-07
Number: 203
Handle: RePEc:oec:envaaa:203-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Katherine Farrow
Author-Name: Ioannis Tikoudis
Author-Name: Grace Alexander
Author-Name: Apolline Saliou
Author-Name: Lea Stapper
Author-Name: Walid Oueslati
Title: Provision of urban environmental amenities: A policy toolkit for inclusiveness
Abstract: Environmental amenities provide a range of direct and indirect benefits in cities, and amenity provision often figures within policy portfolios to advance sustainability in urban areas. As environmental pressures and urban populations increase, it will be necessary to find ways to ensure that environmental policies do not contribute to existing inequalities in these areas. This report synthesises empirical research on the impact of environmental amenities on housing prices, examines implications on housing affordability, and offers perspectives on how negative impacts can be mitigated. The report finds that the provision of environmental amenities tends to raise housing prices, which reduces affordability, especially among renters and low-income households with reduced access to mortgages. The report concludes that there is scope to accompany amenity provision with complementary measures to mitigate distributional impacts and outlines policy avenues in that regard.
Classification-JEL: D63; H41; O18; Q52; R38
Keywords: environmental amenities, green gentrification, housing affordability, open space, provision, public good
Creation-Date: 2022-11-04
Number: 204
Handle: RePEc:oec:envaaa:204-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Joseph Cordonnier
Author-Workplace-Name: OECD
Author-Name: Deger Saygin
Author-Workplace-Name: OECD
Title: Green hydrogen opportunities for emerging and developing economies: Identifying success factors for market development and building enabling conditions
Abstract: Hydrogen is a cross-cutting energy vector that can help to decarbonise various end-use sectors. At least two-thirds of the global hydrogen production is projected to be green hydrogen by 2050, supporting the transition to a net-zero emissions global energy system. This paper presents a value chain approach to identify priority areas for developing national hydrogen strategies, focussing on emerging and developing economies. Further, the analysis highlights success factors for green hydrogen projects, based on eight case studies covering applications in industrial, transport and power generation sectors. The paper summarises the enabling conditions and financing solutions that can spur the green hydrogen market creation and growth.
Classification-JEL: L20; O14; O25; Q42; Q48
Keywords: green hydrogen case studies, hydrogen roadmap, hydrogen value chain, industry decarbonisation, levelised cost of hydrogen
Creation-Date: 2022-11-09
Number: 205
Handle: RePEc:oec:envaaa:205-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alan Matthews
Author-Name: Katia Karousakis
Title: Identifying and assessing subsidies and other incentives harmful to biodiversity: A comparative review of existing national-level assessments and insights for good practice
Abstract: Despite calls for the reform of incentives, including subsidies, harmful to biodiversity, including under the Convention on Biological Diversity and its 2011-2020 Aichi Targets, very few countries to date have undertaken what is considered the first step in this process, namely, to identify and assess the types and magnitudes of any incentives in place at the national level which are harmful for biodiversity or the environment more broadly.This paper begins with a brief literature review on subsidies harmful to biodiversity, followed by a detailed review and comparison of the existing national level studies to identify and assess subsidies and other incentives harmful to biodiversity or the environment. The report concludes with guidance and good practice insights to identify and assess subsidies and other incentives harmful to biodiversity, at national level.
Classification-JEL: Q01; Q5; Q57; Q58
Keywords: Biodiversity, biodiversity harmful subsidies and incentives, environmentally harmful subsidies
Creation-Date: 2022-11-22
Number: 206
Handle: RePEc:oec:envaaa:206-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alberto Agnelli
Author-Name: Piera Tortora
Title: The role of development co-operation in tackling plastic pollution: Key trends, instruments, and opportunities to scale up action
Abstract: Plastics leakage has become a pressing issue for many developing countries. While a number of development co-operation initiatives with a focus on tackling plastic pollution have recently emerged, there is currently no comprehensive assessment of the volume and scope of international development co-operation in this area. This report contributes to fill this gap by bringing together OECD’s unique statistical sources and expertise. First, this paper assesses the scale of the plastic pollution problem in developing countries by providing evidence on developing countries’ plastic use, waste, and leakage volumes, and assessing the specificity of plastics-related impacts in developing countries. Secondly, it quantifies development co-operation support in this area through a refined methodology developed as part of the OECD Sustainable Ocean for All Initiative. Finally, the paper presents innovative development co-operation approaches that are helping developing countries to scale up financing and impact of waste management projects.
Classification-JEL: O13; O19; Q25; Q53
Keywords: Circular Economy, Environmental Policy, Foreign Aid, Foreign Assistance, Plastics, Recycling, Solid Waste, Waste, Waste Management, Water Pollution
Creation-Date: 2022-11-28
Number: 207
Handle: RePEc:oec:envaaa:207-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Frithjof Laubinger
Author-Name: Andrew Brown
Author-Name: Maarten Dubois
Author-Name: Peter Börkey
Title: Deposit-refund systems and the interplay with additional mandatory extended producer responsibility policies
Abstract: Despite decades of experience with Deposit Refund Systems (DRS) in some countries and sub-national markets, there are only a few instances where DRS is complemented by additional mandatory extended producer responsibility (EPR) policy instruments within the same sector. In light of increasingly ambitious collection and recycling targets, countries and sub-national governments are considering the use of a DRS for specific products in combination with other mandatory EPR policy instruments. This interplay of a DRS and other mandatory EPR policy instruments can lead to synergies, as it can improve the quality and quantity of recycling, enable reuse systems and incentivise eco-design. DRS also helps to address littering and influence consumer behaviour, which is difficult to address with other mandatory EPR policy instruments. This report identifies key insights that can guide the design and implementation of a DRS and its role in a broader policy mix including other mandatory EPR policies.
Classification-JEL: L15; O14; Q53; Q56; Q58
Keywords: circular economy, deposit refund system, extended producer responsibility, product stewardship, resource efficiency, sustainable consumption, waste management
Creation-Date: 2022-12-19
Number: 208
Handle: RePEc:oec:envaaa:208-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Alberto Agnelli
Author-Name: Hélia Costa
Author-Name: Damien Dussaux
Title: The economic benefits of early green innovation: Evidence from the automotive sector
Abstract: The economic consequences for firms investing in green innovation, and therefore their incentives to innovate, are not well understood. This paper empirically assesses the economic returns on innovation in cleaner vehicles. The analysis uses data on passenger car market shares and patents for car manufacturers operating in eight countries for the period 2005-2021. The results show that, when vehicle fuel prices increase, firms having previously successfully filed patents related to both electric and hybrid vehicles and fuel efficiency experience an increase in their market share. This increase takes place between 7 and 8 years after the patent stock is accumulated for patents related to electric and hybrid vehicles and between 8 and 15 years for patents related to fuel efficiency. The analysis also finds that in contexts where fuel price salience is high, price increases generate larger and earlier competitiveness returns for firms having previously invested in cleaner technologies.
Classification-JEL: O30; Q55; Q48
Keywords: firm performance, fuel prices, fuel taxation, green technology, price salience, technological change
Creation-Date: 2023-02-22
Number: 209
Handle: RePEc:oec:envaaa:209-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Andrew Brown
Author-Name: Frithjof Laubinger
Author-Name: Peter Börkey
Title: Monitoring trade in plastic waste and scrap 2023
Abstract: Global trade in plastic waste and scrap declined further (2017-2021) in 2021 and preliminary data indicates a continuing trend in the first half of 2022 (January to May). The combined trade surplus of OECD Member Countries (i.e., the difference between exports and imports) continued to decrease. Less plastic waste and scrap is being exported by OECD countries to non-OECD countries, however some countries still export substantial volumes to non-OECD countries. Particularly several non-OECD south-east Asian countries remain large export destinations. At the same time, trade between OECD countries has increased. The value and composition of plastic waste and scrap exports in 2021 suggests that more high value and easy to recycle plastic waste was traded. The trade regime remains dynamic with new export destinations emerging, which deserve further monitoring.
Classification-JEL: F18; L65; Q53; Q56
Keywords: circular economy, plastics, trade, waste management
Creation-Date: 2023-03-02
Number: 210
Handle: RePEc:oec:envaaa:210-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Robin Lindsey
Author-Name: Ioannis Tikoudis
Author-Name: Katherine Hassett
Title: Distributional effects of urban transport policies to discourage car use: A literature review
Abstract: This report takes stock of scientific findings to date regarding the distributional effects of policies discouraging car use in urban areas. These policies include cordon tolls, distance-based charges, fuel taxes, parking measures and public transport subsidies. The report describes the mechanisms responsible for the distributional effects of these policies and offers insights regarding how such policies can be designed to minimise adverse equity outcomes. It also provides recommendations regarding the design and procedural modifications that standard instruments require in order to be more acceptable to the public and to governments. Finally, it identifies a number of issues that warrant further research in the pursuit of greater equity in the outcomes of urban road transport policies.
Classification-JEL: D63; H23; Q52; Q54; R40; Q56
Keywords: environmental externalities, fuel tax, income distribution, inequality, road pricing
Creation-Date: 2023-03-03
Number: 211
Handle: RePEc:oec:envaaa:211-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Daniel Ostalé Valriberas
Author-Name: Elisa Lanzi
Author-Name: Zbigniew Klimont
Author-Name: Rita Van Dingenen
Title: The economic consequences of air pollution policies in Arctic Council countries: A sectoral analysis
Abstract: This report quantifies the environmental, health and economic consequences of policy action on air pollution in Arctic Council countries, with a focus on sectoral differences. The report takes a modelling approach and compares a baseline scenario that reflects current legislation, with a policy scenario in which the best available techniques to reduce emissions are deployed in all emitting sectors. The report highlights that benefits from air quality improvements can be obtained when considering emission reductions throughout the economy, and not just in the sectors that are targeted more often, such as industry and transport. The results presented in the report also highlight the need for country-specific policy strategies that take into account the current levels of policy stringency, the sectoral contributions to air pollution, and the need for sectoral investment in new technologies, which also vary by country.
Classification-JEL: C68; Q53; Q52
Keywords: air pollution, air quality, best available techniques, computable general equilibrium models
Creation-Date: 2023-03-20
Number: 212
Handle: RePEc:oec:envaaa:212-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Lylah Davies
Author-Name: Deger Saygin
Title: Distributed renewable energy in Colombia: Unlocking private investment for non-interconnected zones
Abstract: Colombia has prioritised the use of renewable energy to expand and improve electricity services for its population in zones non-interconnected to the national grid. Recent policies and regulations have supported this ambition with successive measures to strengthen investment conditions for distributed renewable energy, like standalone solar photovoltaic (PV) solutions and hybrid solar PV mini-grids. Still, the distributed renewable energy market in non-interconnected zones is relatively immature, reflected by the high costs for connecting new users. New business and financing models will be critical to bringing down the cost of renewable energy technologies, accessing private equity and debt in larger volumes, and ultimately progressing towards replacing existing inefficient and polluting diesel generation systems. Building on international experiences, this paper discusses approaches to strengthening investment conditions, looking at support mechanisms and de-risking instruments used elsewhere, which can help bridge the financing gap in Colombia.
Classification-JEL: G20; H32; H54; Q40; Q42; Q48; Q52; Q56; H71
Keywords: Blended Finance, Distributed Energy Sources, Energy Access, Finance and Investment, Renewable Energy, Rural Electrification
Creation-Date: 2023-05-17
Number: 213
Handle: RePEc:oec:envaaa:213-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jean Fouré
Author-Name: Rob Dellink
Author-Name: Elisa Lanzi
Author-Name: Filippo Pavanello
Title: Public finance resilience in the transition towards carbon neutrality: Modelling policy instruments in a global net-zero emissions
Abstract: This paper presents a detailed economic modelling analysis of public finance in the transition towards carbon neutrality. It outlines results from a Net-Zero Emission Ambition scenario, which reflects the ambition to achieve net-zero carbon dioxide emissions globally by mid-century, using a broad and region-specific policy package that combines various policy instruments: carbon pricing, removal of fossil fuel support, regulations in the power sector, and other policies that stimulate investments by firms and households to reduce and decarbonise energy use. The analysis relies on the OECD global computable general equilibrium ENV-Linkages model. Results show that transitioning towards carbon neutrality is feasible when considering economic and fiscal consequences. The scenario achieves carbon neutrality while maintaining continued economic growth, despite a limited negative impact on global GDP and on public revenues. The fiscal effects reflect a trade-off between instruments that increase public revenues (carbon pricing) or reduce public expenditures (fossil fuel subsidies removal), on the one hand, and more costly instruments (subsidies) and indirect effects (tax base erosion and changes in fiscal and economic structure) on the other hand.
Classification-JEL: H20; H23; H61; L68; Q43; Q54; C68
Keywords: climate mitigation, computable general equilibrium models, net-zero, public budget
Creation-Date: 2023-06-02
Number: 214
Handle: RePEc:oec:envaaa:214-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Damien Dussaux
Author-Name: Andrea Leiter
Author-Name: Väinö Nurmi
Author-Name: Christoph Rheinberger
Title: Valuing a reduction in the risk of infertility: A large scale multi-country stated preference approach
Abstract: While fertility decline is a global phenomenon that has many causes, part of it can be explained by exposure to substances linked to reproductive toxicity that are produced and lead to human exposure through the environment and products. Authorities face challenges in regulating reprotoxic substances through actions such as bans and prohibitions, because of the difficulty in explicitly considering the economic benefits and costs of such regulations. Moreover, economic studies that show the value of reducing infertility caused by chemical exposure are not yet available.This paper is part of the series of large scale willingness to pay (WTP) studies resulting from the Surveys to elicit Willingness to pay to Avoid Chemicals related negative Health Effects (SWACHE) project that intends to improve the basis for doing cost benefit analyses of chemicals management options and environmental policies in general. The present paper details a stated preference survey estimating WTP to reduce the risk of infertility, filling an important gap in the valuation literature and addressing a need for applied benefits analysis for chemicals regulation. The SWACHE infertility survey was fielded in 10 countries: Australia, Canada, Chile, Germany, Japan, Poland, Portugal, Sweden, the United Kingdom and the United States.
Classification-JEL: D61; J17; K32; Q51; Q53; Q58; I18
Keywords: chemicals regulation, economic valuation, health risk, health valuation, infertility, monetised benefits, morbidity valuation, non-market valuation, stated preferences, surveys, value of a statistical case, willingness-to-pay
Creation-Date: 2023-06-05
Number: 215
Handle: RePEc:oec:envaaa:215-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Chris Dockins
Author-Name: Damien Dussaux
Author-Name: Charles Griffiths
Author-Name: Sandra Hoffmann
Author-Name: Nathalie Simon
Title: Valuing a reduction in the risk of chronic kidney disease: A large scale multi-country stated preference approach
Abstract: Compromised kidney function is associated with an array of environmental contaminants and chemicals, including heavy metals, certain organic solvents, and polycyclic aromatic hydrocarbons (PAHs), as well as food and waterborne pathogens. Many of these hazards are subject to regulation, or may be considered for regulation, in order to reduce exposures and prevent human health risks. However, valuation estimates for kidney effects that can be used in cost-benefit analyses are few, particularly willingness-to-pay estimates. In particular, there appears to be no willingness-to-pay (WTP) estimate available for reduced risk of chronic kidney disease and therefore no estimate for the Value of a Statistical Case (VSC) of chronic kidney disease.This paper is part of the series of large scale willingness to pay (WTP) studies resulting from the Surveys to elicit Willingness to pay to Avoid Chemicals related negative Health Effects (SWACHE) project that intends to improve the basis for doing cost benefit analyses of chemicals management options and environmental policies in general. The paper details a stated preference survey estimating WTP to reduce the risk of symptomatic chronic kidney disease, termed serious kidney disease in the survey instrument, filling an important gap in the valuation literature and addressing a need for applied benefits analysis for chemicals regulation. The SWACHE serious kidney impairment survey was fielded in 10 countries: Canada, Chile, China, Denmark, Germany, Italy, Norway, Türkiye, the United Kingdom and the United States.
Classification-JEL: D61; J17; K32; Q51; Q53; Q58; I18
Keywords: chemicals regulation, economic valuation, health risk, health valuation, kidney disease, monetised benefits, morbidity valuation, non-market valuation, stated preferences, surveys, value of a statistical case, willingness-to-pay
Creation-Date: 2023-06-05
Number: 216
Handle: RePEc:oec:envaaa:216-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Milan Ščasný
Author-Name: Iva Zvěřinová
Author-Name: Damien Dussaux
Title: Valuing a reduction in the risk of very low birth weight: A large scale multi-country stated preference approach
Abstract: There is ample evidence that exposure to various chemicals can increase the probability of children to be born with low or very low birth weight. Infants born with very low birth weight have a higher risk of suffering from neurosensory problems, issues related to behavioural and social competencies, and learning disabilities than infants born with normal birth weight. Authorities face challenges in regulating chemical substances through actions such as bans and prohibitions, because of the difficulty in explicitly considering the economic benefits and costs of such regulations. Moreover, existing Values of a Statistical Case (VSC) of very low birth weight are rare and cannot be directly applied to the cost benefit analysis of chemical management options for a wide range of countries.This paper is part of the series of large scale willingness to pay (WTP) studies resulting from the Surveys to elicit Willingness to pay to Avoid Chemicals related negative Health Effects (SWACHE) project that intends to improve the basis for doing cost benefit analyses of chemicals management options and environmental policies in general. The present paper details a stated preference survey estimating WTP to reduce the risk of very low birth weight, filling an important gap in the valuation literature and addressing a need for applied benefits analysis for chemicals regulation. The SWACHE very low birth weight survey was fielded in 9 countries: Canada, the Czech Republic, Italy, Mexico, the Netherlands, Switzerland, Türkiye, the United Kingdom, and the United States.
Classification-JEL: D61; I18; J17; K32; L51; Q53; Q58
Keywords: chemicals regulation, economic valuation, health risk, health valuation, monetised benefits, morbidity valuation, non-market valuation, stated preferences, surveys, value of a statistical case, very low birth weight, willingness-to-pay
Creation-Date: 2023-06-05
Number: 217
Handle: RePEc:oec:envaaa:217-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Gildas Appéré
Author-Name: Damien Dussaux
Author-Name: Alan Krupnick
Author-Name: Muriel Travers
Title: Valuing a reduction in the risk and severity of asthma: A large scale multi-country stated preference approach
Abstract: Asthma is a non-communicable and non-curable lung disease that is associated with an array of environmental contaminants and chemicals. Many of these hazards are subject to regulation, or may be considered for regulation, in order to reduce exposures and prevent human health risks. However, the available information on willingness-to-pay (WTP) to avoid asthma or reduce its severity is scarce, incomplete and does not provide estimates compatible with welfare economic theory that can be used in cost-benefit analysis. This paper is part of the series of large scale willingness to pay (WTP) studies resulting from the Surveys to elicit Willingness to pay to Avoid Chemicals related negative Health Effects (SWACHE) project that intends to improve the basis for doing cost-benefit analyses of chemicals management options and environmental policies in general. The present paper offers values suitable for use in cost-benefit analyses of the WTP for reduced severity of asthma attacks in adults and children and in reduced probability of getting asthma for these two population groups, all in the context of reducing chemical exposures, and covering populations in seven OECD countries: Canada, Czech Republic, France, Poland, Sweden, the United Kingdom and the United States. The context for such WTP elicitations was a set of household products that contain fewer hazardous chemicals than what is currently available in supermarkets but are more expensive.
Classification-JEL: D61; I18; J17; K32; Q51; Q53; Q58
Keywords: asthma, chemicals regulation, economic valuation, health risk, health valuation, monetised benefits, morbidity valuation, non-market valuation, stated preferences, surveys, value of a statistical case, willingness-to-pay
Creation-Date: 2023-06-05
Number: 218
Handle: RePEc:oec:envaaa:218-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Susana Mourato
Author-Name: Giles Atkinson
Author-Name: Damien Dussaux
Author-Name: Chiara Sotis
Author-Name: Stavros Georgiou
Author-Name: Davide Contu
Title: Valuing the avoidance of IQ losses in children: A large scale multi-country stated preference approach
Abstract: Exposure to chemicals has been shown to reduce IQ in children. In turn, a person’s IQ is likely to affect their educational achievements, which may then affect lifetime earnings, more generally, a person’s quality of life. At the same time, authorities face challenges in regulating chemical substances through actions such as bans and prohibitions, because of the difficulty in explicitly considering the economic benefits and costs of such regulations. Moreover, economic studies that show the value of reducing IQ loss caused by chemical exposure are not yet available.This paper is part of the series of large scale willingness to pay (WTP) studies resulting from the Surveys to elicit Willingness to pay to Avoid Chemicals related negative Health Effects (SWACHE) project that intends to improve the basis for doing cost benefit analyses of chemicals management options and environmental policies in general. The present paper details a stated preference survey estimating WTP to avoid IQ loss, filling an important gap in the valuation literature and addressing a need for applied benefits analysis for chemicals regulation. The SWACHE IQ loss survey was fielded in 11 countries: Australia, Canada, Denmark, Korea, Netherlands, Poland, Portugal, South Africa, Sweden, the United Kingdom and the United States.
Classification-JEL: D61; I18; J17; K32; Q51; Q53; Q58
Keywords: chemicals regulation, economic valuation, health risk, health valuation, IQ, monetised benefits, morbidity valuation, non-market valuation, stated preferences, surveys, value of a statistical case, willingness-to-pay
Creation-Date: 2023-06-05
Number: 219
Handle: RePEc:oec:envaaa:219-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Sofie Errendal
Author-Name: Jane Ellis
Author-Name: Sirini Jeudy-Hugo
Title: The role of carbon pricing in transforming pathways to reach net zero emissions: Insights from current experiences and potential application to food systems
Abstract: This paper investigates the potential role and contribution of carbon pricing in transforming emission pathways towards net zero GHG emissions. It reviews carbon pricing’s impacts, overall and in the electricity sector in selected jurisdictions to date. The paper also analyses the current and potential application of emissions pricing (e.g. emissions trading schemes or carbon taxes) in food systems. The analysis finds that carbon pricing could contribute to net zero pathways alongside other policies, yet price levels and coverage to date have been too low to reduce emissions in line with the Paris Agreement’s goals. Carbon pricing’s contribution to net zero pathways could be further strengthened, including by incentivising demand-side shifts, sequencing policies and enhancing international carbon pricing collaboration. Applying emissions pricing in food systems faces significant short-term technical, methodological, and political barriers and could have just transition implications but reducing emissions from food systems could also lead to many co-benefits.
Classification-JEL: H23; Q52; Q54; Q56; Q58
Keywords: agriculture, carbon pricing, carbon tax, climate change, climate mitigation, demand-side, emissions trading system, ETS, food systems, greenhouse gas emissions, just transition, net zero, policy packages, revenue recycling, supply-side, transformative change
Creation-Date: 2023-06-29
Number: 220
Handle: RePEc:oec:envaaa:220-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Damien Dussaux
Author-Name: Alberto Agnelli
Author-Name: Nordine Es-Sadki
Title: Exploring new metrics to measure environmental innovation
Abstract: Several efforts have been made to track progress on environmental innovations using very different approaches. However, many lack coverage, granularity, timeliness and may involve high data collection costs, especially when conducted on a large scale. Traditional indicators also overlook commercialised innovation and breakthrough innovation. This issue is particularly relevant for environmental innovation, where scaling-up is considered key to address the climate, biodiversity and pollution crises. The paper reviews potential metrics to measure commercialised climate change-related innovation and to measure breakthrough environmental innovation. By comparing advantages and drawbacks of various options, the paper selects two families of metrics to measure commercialised climate change-related innovation: one based on patent assignments and the other one based on licensing agreements. For breakthrough environmental innovation, the paper concludes that a family of metrics based on venture capital data is currently the most promising option to pursue. The paper then develops the selected new metrics and provides trends in environmental innovation over time, across sectors and when possible across countries. The paper concludes that additional data sources should be explored to extend the application of the proposed new metrics in more countries and consider a more comprehensive set of supports to innovation.
Classification-JEL: O31; Q55
Keywords: assignment, breakthrough innovation, green innovation, innovation metrics, licensing, patent, transfer, venture capital
Creation-Date: 2023-07-24
Number: 221
Handle: RePEc:oec:envaaa:221-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Coline Pouille
Author-Name: Marcia Rocha
Author-Name: Jolien Noels
Author-Name: Raphaël Jachnik
Title: Paris-consistent climate change mitigation scenarios: A framework for emissions pathway classification in line with global mitigation objectives
Abstract: Since the adoption of the Paris Agreement, governments and economic actors have increasingly been setting greenhouse gas emissions reduction or net zero targets. Amidst risks of delayed action and greenwashing, there is need to understand whether climate related targets and transition plans are consistent with the Paris Agreement. Climate change mitigation scenarios can be used as inputs to design such targets and plans, and as benchmarks to assess progress towards them. In this context, this paper proposes criteria for selecting global climate change mitigation scenarios that can be considered consistent with the Paris Agreement temperature goal and emissions objectives, based on state-of-the-art literature on climate science and mitigation scenarios.
Classification-JEL: Q54; Q56; C68
Keywords: 1.5°C temperature goal, Climate change mitigation scenarios, greenhouse gas emissions pathways, net zero targets, Paris Agreement alignment, temperature overshoot
Creation-Date: 2023-09-28
Number: 222
Handle: RePEc:oec:envaaa:222-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jolien Noels
Author-Name: Coline Pouille
Author-Name: Raphaël Jachnik
Author-Name: Marcia Rocha
Title: Climate change mitigation scenarios for financial sector target setting and alignment assessment: A stocktake and analysis of their Paris-consistency, practicality and assumptions
Abstract: Climate change mitigation scenarios are a key forward-looking input for a range of financial sector analyses and assessments. The inaccurate use of mitigation scenarios can, however, contribute to unintended incentives, environmental integrity concerns, and greenwashing risks. This paper aims to inform climate change mitigation scenario providers, financial sector participants and stakeholders, and climate policymakers on how they may contribute to improved use of scenarios for the purposes of target setting and alignment assessments in the financial sector. To do so, the paper analyses climate change mitigation scenarios currently used for these purposes, based on the following analytical dimensions: consistency with the Paris Agreement, practicality, and underlying assumptions.
Classification-JEL: G23; G24; Q54; Q56
Keywords: climate alignment assessments, Climate change mitigation scenarios, finance, greenhouse gas emissions, investment, net zero target setting
Creation-Date: 2023-09-28
Number: 223
Handle: RePEc:oec:envaaa:223-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Lylah Davies
Author-Name: Mireille Martini
Title: Watered down? Investigating the financial materiality of water-related risks in the financial system
Abstract: Water-related risks are intrinsically linked to both climate and nature challenges and can be closely tied to socio-economic challenges, such as poverty, food security, and domestic and international conflicts. There is increasing evidence that water-related risks are financially material across actors in the financial system, and further still, that there may be important implications for financial stability. However, a review of current practices indicates that these risks are not fully captured by current approaches to assessing risk. This working paper explores how the financial sector understands the concept of financial materiality as a lever for decision making on water-related climate and nature risks. The paper also looks at how regulatory and supervisory guidance considers water in the context of climate and nature risks, and finally how sustainable finance tools and initiatives can support market participants in gaining an improved understanding of water-related risks.
Classification-JEL: F30; G10; G20; Q25; Q28; E60
Keywords: economics, finance and investment, financial materiality, water, water finance, water-related risks
Creation-Date: 2023-09-28
Number: 224
Handle: RePEc:oec:envaaa:224-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Andrew Brown
Author-Name: Frithjof Laubinger
Author-Name: Peter Börkey
Title: New Aspects of EPR: Extending producer responsibility to additional product groups and challenges throughout the product lifecycle
Abstract: Extended Producer Responsibility (EPR) is a policy approach that makes producers responsible for their products at the post-consumer stage of the lifecycle. It has been widely adopted by governments and companies across the OECD membership and beyond and is currently most commonly used for electronics, packaging, vehicles, and tyres. The success of EPR in increasing material recovery rates has triggered a debate about expanding the use of EPR to additional product groups. Additionally, there is a debate about expanding producer responsibilities to additional impact categories, which go beyond the traditional use of EPR to cover end-of-life costs that occur at the domestic level. This paper presents a discussion of relatively novel applications of EPR to additional product groups (plastic products beyond packaging, textiles, construction materials, and food waste) and to environmental impacts (design considerations, pollution and littering) that occur throughout the product lifecycle. Based on select case studies, this report evaluates the successes and challenges that early adopters of applying the EPR approach to new product groups or additional environmental impact categories have experienced. It reviews the arguments for further application of EPR, possible limitations and provides guidance on when and how to best apply an EPR.
Classification-JEL: F18; L65; L66; L67; Q53; Q56
Keywords: circular economy, food, plastics, textiles, trade, waste management
Creation-Date: 2023-11-09
Number: 225
Handle: RePEc:oec:envaaa:225-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Joseph Cordonnier
Author-Name: Deger Saygin
Title: Financing solutions to foster industrial decarbonisation in emerging and developing economies
Abstract: Industry decarbonisation is a cornerstone to reach net-zero emissions by this mid-century. The diversity of industrial activities, processes and products, the complexity of global industrial value chains, and the international competition make industry decarbonisation a challenging objective. Annual investments in low-carbon technologies for industry decarbonisation need to increase by a factor of three to five by 2030 compared to current levels to align industrial emissions with net-zero pathways. This paper analyses available financing solutions to scale up investments at pace, especially in emerging and developing economies where industrial production is growing rapidly whilst available finance is limited. It highlights de-risking and financial instruments and models that can help accelerate investments and draws lessons from twelve financing industry decarbonisation case studies which demonstrate how private capital can be mobilised.
Classification-JEL: G23; L60; O14; Q54; Q56; Q58
Keywords: climate change, climate mitigation, de-risking instruments, economic instruments, financial instruments, greenhouse gas emissions, industry decarbonisation, industry value chains, low-carbon technologies
Creation-Date: 2023-11-29
Number: 226
Handle: RePEc:oec:envaaa:226-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Moongyung Lee
Author-Name: Deger Saygin
Title: Financing cost impacts on cost competitiveness of green hydrogen in emerging and developing economies
Abstract: Green hydrogen, produced from water and renewable power through the electrolysis process, can play a crucial role in the low-carbon transition to achieve the net-zero emission targets. Currently, the production cost of green hydrogen is not competitive when compared to hydrogen produced from natural gas. High capital costs are a major factor constraining its cost-competitiveness. This working paper utilises financial market data to address the knowledge gap concerning the range of Weighted Average Cost of Capital (WACC) for green hydrogen projects. It also conducts a survey among investors and financiers to identify key risk factors contributing to the high WACC. The key risks that have been identified include offtaker risks, lack of credible offtakers, price uncertainty of green hydrogen, and the absence of hydrogen trading markets. These risks are closely connected to the available risk mitigation strategies and tools. The paper summarises key risk mitigation strategies identified through case studies of lighthouse green hydrogen projects that have either reached or are nearly point of reaching financial investment decisions.
Classification-JEL: L20; O14; O25; Q42; Q48
Keywords: cost competitiveness of green hydrogen, cost of capital, green hydrogen, industry decarbonisation, levelised cost of hydrogen
Creation-Date: 2023-11-29
Number: 227
Handle: RePEc:oec:envaaa:227-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Nelly Petkova
Author-Name: Krzysztof Michalak
Author-Name: Yuliia Oharenko
Title: Review of energy subsidies in the context of energy sector reforms in Ukraine
Abstract: This study evaluates the progress of fossil-fuel subsidy reform in Ukraine since its launch in 2016 using the OECD “bottom-up”, inventory, approach. It also identifies major subsidy schemes that need significant reform. The report reflects the energy subsidy policies and reforms in Ukraine prior to Russia’s full-scale invasion in February 2022. The analysis covers: budgetary transfers, government revenue foregone (or tax expenditure), induced transfers in the form of cross-subsidies or below market tariffs and transfer of risk to government. The study also covers fossil-fuels subsidies to production and consumption, particularly, for natural gas, coal and electricity generated from fossil fuels while support for energy efficiency and renewables is considered for comparative purposes. This report also briefly discusses the taxation and energy pricing policies in Ukraine that have had direct or indirect impact on the evolution of fossil-fuel subsidies in the country. Detailed estimates of all individual support measures are provided in the Annexes to the report.
Classification-JEL: H23; H53; H61; H71; P18; Q35; Q41; Q48
Keywords: energy sector, energy sector reform, energy taxation policy, fossil-fuel subsidies
Creation-Date: 2023-12-12
Number: 228
Handle: RePEc:oec:envaaa:228-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Isabella Neuweg
Title: Ukrainians and climate policies: What are Ukrainians’ preferences for using carbon revenues?
Abstract: The paper presents the understanding of and attitudes towards climate change and climate policies in Ukraine, using a survey on a representative sample of more than 1 500 Ukrainians. The survey was carried out between October 2021 and February 2022 and presents the situation before Russia’s large-scale invasion of Ukraine. The survey tests support for three main climate policies in detail: a green infrastructure programme, a carbon tax with cash transfers and a ban on combustion-engine cars. It shows that support for climate policies depends on three key factors: how people perceive the effectiveness of the policies in reducing emissions, how they perceive distributional impacts on lower-income households (inequality concerns), and if they think their household will gain or lose from the policy. The survey also shows that when citizens receive information that specifically addresses these concerns, they exhibit stronger support for the policy. How the policy is designed also matters: Ukrainians widely accept a carbon tax when its revenues finance green investments and/or compensate lower-income households. The paper highlights seven considerations for Ukraine policymakers to design measures that are effective and supported by citizens. Following Russia’s war of aggression and once conditions are right, Ukrainian policymakers can also use the survey results to guide the reform of the environmental tax system- one of the goals in Ukraine’s recovery and reform agenda. The survey in Ukraine that the paper describes was conducted as part of a large-scale OECD international survey of attitudes toward climate policies carried out on over 40 000 respondents in twenty countries.
Classification-JEL: D78; H23; Q54; Q58; P48
Creation-Date: 2023-12-15
Number: 229
Handle: RePEc:oec:envaaa:229-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Rodrigo Pizarro
Author-Name: Santaro Sakata
Author-Name: Miguel Cárdenas Rodríguez
Author-Name: Abenezer Zeleke Aklilu
Author-Name: Ekaterina Ghosh
Title: GHG Emission Trends and Targets (GETT): Harmonised quantification methodology and indicators
Abstract: The Paris Agreement maps out a path for internationally coordinated efforts to curb global warming. At the centre of the Paris Agreement are Nationally Determined Contributions (NDCs) that establish countries’ plans to mitigate greenhouse gas (GHG) emissions as well as adapt to the impacts of climate change. However, mitigation contributions defined in NDCs are different across countries in terms of target types, coverage of sectors and gases. This makes it challenging to assess progress on mitigation commitments. To complement the UNFCCC efforts, and facilitate the evaluation and monitoring of targets, this paper develops a methodology that harmonises countries’ 2030 mitigation targets in physical units and provide clarity on sector and gas coverage. The results are used to develop the GHG Emission Trends and Targets (GETT) indicators for non-EU countries and the EU-27 covered under the International Programme for Action on Climate (IPAC). The GETT indicators support the analyses of emissions' trajectories by describing historical GHG emission trends and comparing them to NDC emission targets, considering various reference years and indicators, including emissions intensity per capita or per unit of GDP.
Classification-JEL: C89; Q54; Y10
Keywords: GHG Emission Trends and Targets, Harmonised indicators, Nationally Determined Contributions, Paris Agreement
Creation-Date: 2024-03-15
Number: 230
Handle: RePEc:oec:envaaa:230-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Isabella Neuweg
Author-Workplace-Name: OECD
Author-Name: Nelly Petkova
Author-Workplace-Name: OECD
Author-Name: Krzysztof Michalak
Author-Workplace-Name: OECD
Author-Name: Yuliia Oharenko
Title: Review of environmental taxation and environmental expenditure in Ukraine
Abstract: The paper analyses the current system of environmental taxation and environmental expenditure in Ukraine, identifies issues in the way environmental tax policy is currently designed and implemented and highlights main areas where environmental taxation and expenditure could be improved. It uses data on environmental tax revenue and budgets from expenditure reports of the State Treasury Service of Ukraine over the period 2010 - 2020. Where available, preliminary data for 2021 were also included. The paper aims to support the government of Ukraine in reforming environmental taxation and public funding for environmental protection. Ukraine’s Post-War Recovery and Reconstruction Plan outlines ambitious plans for reform, including in the environmental domain. It envisions restructuring the current environmental tax system, expanding it to energy and transport and harmonising it with that of the European Union. It also foresees an analytical study systematising current taxes and payments in line with Eurostat classification standards. This paper can support these efforts.
Classification-JEL: H23; H61; H71; Q54; Q58
Creation-Date: 2023-12-20
Number: 231
Handle: RePEc:oec:envaaa:231-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Bopha Chhun
Author-Name: Deepika Sehdev
Author-Name: Amy Cano Prentice
Author-Name: Miguel Cárdenas Rodríguez
Author-Name: Ivan Haščič
Title: Environmental domain tagging in the OECD PINE database
Abstract: This paper presents tagging methodologies for 22 environmental domains in the OECD Policy INstruments for the Environment (PINE) database, including seven domains on environmental protection (air pollution, water pollution, soil pollution, solid waste, ozone layer, noise and radiation), six domains on natural resource management (fisheries, forests, freshwater, renewable energy, fossil fuels and minerals) and nine cross-cutting domains (climate change mitigation, climate change adaptation, land degradation, biodiversity, ocean, chemicals management, energy efficiency, circular economy and mercury). The environmental domains in the PINE database support tracking progress towards domestic and international environmental objectives. Tagging environmental domains allows harmonised comparisons across countries, years and policy instrument types.
Classification-JEL: H25; H27; H71; H72; P48; Q1; Q2; Q3; Q4; Q5; R48
Keywords: deposit-refund schemes, environmental policy, environmental protection, fees, market-based instruments, natural resource management, subsidies, taxes, tradable permits, voluntary approaches
Creation-Date: 2024-03-18
Number: 232
Handle: RePEc:oec:envaaa:232-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Bum Cheul Park
Author-Name: Andrew Brown
Author-Name: Frithjof Laubinger
Author-Name: Peter Börkey
Title: Monitoring trade in plastic waste and scrap 2024
Abstract: Global trade in plastic waste and scrap declined further (2017-2022) in 2022. The combined trade surplus of OECD Member Countries (i.e. the difference between exports and imports) continued to decrease. Less plastic waste and scrap is being exported by OECD countries to non-OECD countries, however some countries still export substantial volumes to non-OECD countries. Particularly several non-OECD south-east Asian countries remain large export destinations. Trade between OECD countries has increased. The value and composition of plastic waste and scrap exports in 2021 suggests that more high value and easy to recycle plastic waste was traded. Some volume of plastics waste is likely transformed into a “fuel” via mechanical and chemical processing and subsequently shipped as Processed Engineered Fuel (PEF) or Refuse-Derived Fuels (RDF), broadly categorised under HS 3825. There was an increase in this trade mostly between OECD countries in 2021. The trade regime remains dynamic with new export destinations emerging, which deserve further monitoring.
Classification-JEL: F18; L65; Q53; Q56
Keywords: circular economy, plastics, trade, waste management
Creation-Date: 2024-04-15
Number: 233
Handle: RePEc:oec:envaaa:233-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Nancy Isarin
Author-Name: Eva Barteková
Author-Name: Andrew Brown
Author-Name: Peter Börkey
Title: Digital Technologies for Better Enforcement of Waste Regulation and Elimination of Waste Crime
Abstract: Waste crimes create social and economic issues. Offenders commit crime due to either a lack of awareness of waste law or the belief that there is a low risk of being caught and punished. OECD countries are using digital tools to improve their use of resources with the aim to promote compliance and detect violation of waste law. This paper reviews the types of waste crimes, their motivations, and opportunities for governments to use digital tools for their enforcement efforts. It finds that governments have thus far mainly focused on digitalising their data collection and their exchange of information with the public and partners. Further application of digital tools can improve the connection of these tools and test predictive analytical tools such as artificial intelligence systems.
Classification-JEL: L22; L23; O14; K42
Keywords: circular economy, digital technologies, Illegal Behaviour and the Enforcement of Law, resource efficiency
Creation-Date: 2024-04-26
Number: 234
Handle: RePEc:oec:envaaa:234-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Delia Sanchez Trancon
Author-Name: Allison Woodruff
Author-Name: Xavier Leflaive
Author-Name: Lylah Davies
Author-Name: Sigurjon Agustsson
Title: Assessing the enabling conditions for investment in water security: Scorecard pilot test in Asian countries
Abstract: This report outlines results from the initial pilot-testing of a Scorecard to assess the enabling environment for investment in water security, referred to as "the Scorecard”. Developed in collaboration with the Asian Development Bank and partners, the Scorecard aims to identify conditions for attracting and maintaining investment in water security. The report outlines the Scorecard's rationale, scoring methodology, and presents its main components. It also provides results from seven Asian countries, namely, Bangladesh, Mongolia, Nepal, Pakistan, the Philippines, Uzbekistan, and Sri Lanka. Armenia's findings from a subsequent Eastern European pilot test are also incorporated. This is the first in a sub-set of working papers within the Environment Working Paper series presenting research on the enabling environment for investment in water security. It marks the beginning of a process to apply the tool and support policy reforms. The report refrains from offering policy recommendations, focusing on testing the scorecard's ability to assess conditions to attract and sustain investing in water security. For an illustration of country-specific policy recommendations, please refer to the forthcoming Environment Working Paper “Enabling environment for investment in water security: Pilot test in the EU’s Eastern Partner Countries - Armenia case study”.
Classification-JEL: H23; H41; H51; H54; L32; L38; L50; L95; L98; Q25; Q53; Q54; Q58
Keywords: Asia, data, enabling environment, investment, Pacific, policy, public and private finance, regulation, sanitation, tool, wastewater, water resource management, water security, water supply
Creation-Date: 2024-05-16
Number: 235
Handle: RePEc:oec:envaaa:235-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Andrew Brown
Author-Name: Peter Börkey
Title: Plastics recycled content requirements
Abstract: Companies are announcing pledges to increase their use of recycled content in their plastics products or packaging. But companies have historically failed to meet the goals that they have announced. OECD governments are adopting policies that will require the use of recycled content. There is some initial evidence that these policies strengthen recycling markets. Businesses have experienced some challenges in their initial efforts to comply due to a disharmonious range of definitions and targets. Additionally, there is an insufficient volume of useable recycled material in the market. This is especially an issue for food-contact packaging. Governments are facing limitations in what is feasible for monitoring and verifying compliance. This paper reviews current policies and methods for checking compliance. This review informs description of considerations for the design of recycled content policies and insights about their use.
Classification-JEL: L22; L23; Q53
Keywords: circular economy, recycling, resource efficiency
Creation-Date: 2024-05-24
Number: 236
Handle: RePEc:oec:envaaa:236-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Helen Laubenstein
Author-Name: Xavier Leflaive
Title: Water investment planning and financing
Abstract: This paper examines three sets of issues related to strategic investment planning and financing for water: i) Investment planning in an uncertain context; ii) The benefits of supplementing project level planning with a consideration for pathways of investments; iii) Facilitating access to a wider range of financing sources, most importantly commercial finance. Together these issues can enhance the performance of water-related finance, making the best use of available finance and assets, in a context marked by high-level of (public and private) debt and rising cost of finance. This is the first in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.
Classification-JEL: H23; H54; H76; O21; Q21; Q25; Q28; Q53; Q58
Keywords: financing strategy, infrastructure finance, investment pathway, investment planning, water finance
Creation-Date: 2024-05-24
Number: 237
Handle: RePEc:oec:envaaa:237-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Delia Sanchez Trancon
Author-Name: Xavier Leflaive
Title: The implementation of the Polluter Pays principle in the context of the Water Framework Directive
Abstract: This paper examines the challenges and policy imperatives involved in implementing the Polluter Pays principle (PPP) in the context of the Water Framework Directive (WFD). It presents the state of play of the Polluter Pays principle in EU Member States. It also analyses the coherence with other policies in EU Member States, such as agriculture, land planning and industry. Furthermore, it examines the practical limitations of the Polluter Pays principle in relation to diffuse and legacy pollution. Finally, it questions how the principle fits into the Green Deal and future water-related challenges in the EU. This is the second in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.
Classification-JEL: H23; H54; H76; O21; Q21; Q25; Q28; Q53; Q58
Keywords: diffuse pollution, legacy pollution, polluter pays principle, pollution, water
Creation-Date: 2024-05-24
Number: 238
Handle: RePEc:oec:envaaa:238-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Xavier Leflaive
Title: The economics of water scarcity
Abstract: This paper examines the current status of water availability, water demand, and influences from climate change in the European Union. It provides an overview of economic policy instruments to address water scarcity and manage water demand. Additionally, the paper explores policy options and considerations for addressing water scarcity and meeting Water Framework Directive (WFD) objectives. These considerations include balancing demand management and supply augmentation, managing water scarcity through robust allocation regimes, and increasing the use of agro-environmental measures and practices. The paper also discusses the principles and features of effective allocation regimes, drivers and incentives for allocation reforms, the hierarchy and sequencing of water use, abstraction charges, ensuring return flows and ecological flows, and improving the coherence of WFD measures and climate change policies. This is the third in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.
Classification-JEL: H23; H54; H76; O21; Q21; Q25; Q28; Q53; Q58
Keywords: abstraction charges, drought, ecological flows, environmental flows, water allocation, water demand, Water Framework Directive, water scarcity
Creation-Date: 2024-05-24
Number: 239
Handle: RePEc:oec:envaaa:239-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Aude Farnault
Author-Name: Xavier Leflaive
Title: Cost recovery for water services under the Water Framework Directive
Abstract: This paper examines the concept of cost recovery of water services under the EU Water Framework Directive (WFD), including the different types of costs and cost-recovery mechanisms. It presents the state of play in the implementation of cost recovery in EU Member States, for financial, environmental and resource costs. It also analyses the political, societal and technical issues affecting cost recovery in EU Member States. Furthermore, it examines emerging options to recover rising costs, including ways to minimise costs and innovative arrangements to supplement existing funding streams. Finally, it questions how fit cost recovery is as a concept for emerging and future water-related challenges in the EU. This is the fourth in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.
Classification-JEL: H23; H54; H76; O21; Q21; Q25; Q28; Q53; Q58
Keywords: affordability, charges, cost recovery, equity, financing, pricing, tariffs, water
Creation-Date: 2024-05-24
Number: 240
Handle: RePEc:oec:envaaa:240-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Delia Sanchez Trancon
Author-Name: Guy Halpern
Title: Assessing the enabling conditions for investment in Armenia's water security: Scorecard pilot test
Abstract: This paper is part of a subset of working papers within the Environment Working Paper series, presenting research on the enabling environment for investment in water security. The subset includes country and regional projects aimed at pilot testing the Scorecard, designed to assess the enabling environment for investment in water security. The paper “Assessing the Enabling Conditions for Investment in Water Security: Scorecard Pilot Test in Asian Countries” delineates the findings from the initial phase. This paper marks the commencement of the second round of pilot tests in the EU’s Eastern Partnership Countries. It presents the results obtained from assessing the enabling environment for investment in water security in Armenia, using the Scorecard. It also presents policy recommendations based on the priority investment barriers identified during stakeholder consultations in the country, involving representatives from various Ministries engaged in water security and international donors. The assessment and recommendations cover the public investment framework and its impact on water-related sectors, the water investment framework, project bankability and sustainability, as well as the contribution of other economic sectors to water security.
Classification-JEL: H23; H41; H51; H54; L32; L38; L50; L95; L98; Q25; Q53; Q54; Q58
Keywords: Armenia, data, enabling environment, investment, irrigation, policy, public and private finance, regulation, sanitation, tool, wastewater, water resource management, water security, water supply
Creation-Date: 2024-05-29
Number: 241
Handle: RePEc:oec:envaaa:241-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Mariangela Zoli
Author-Name: Luca Congiu
Title: Individual behaviour and circular economy policies: Opportunities in Italy
Abstract: <img src="https://assets.oecdcode.org/ilibraryres/img/DG-Reform_banner-Kappa_en.png" class="img-responsive" style="adding-bottom:5px;" alt="EU Funded Note"/>This working paper takes stock of the literature on behaviourally-informed interventions to facilitate the transition to a circular economy and discusses measures that could be pilot tested in Italy. It provides an overview of the key concepts of behavioural economics and describes the main “biases” that could influence the adoption of behaviours aligned with the transition to a circular economy by consumers. It goes on to review the empirical evidence on the motivations that may affect the adoption of such behaviours, as well as the empirical insights into the effectiveness of implemented behavioural interventions relevant to the circular economy transition. Finally, the paper introduces three proposals for experimental pilots in Italy.
Classification-JEL: D03; Q53; Q56; Q58
Keywords: Behavioural insights, Circular economy, Environmental policy, Recycling, Solid Waste, Waste management
Creation-Date: 2024-06-28
Number: 242
Handle: RePEc:oec:envaaa:242-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Riccardo Boffo
Author-Name: Hugh Miller
Author-Name: Gabriel Santos Carneiro
Author-Name: Gürcan Zeren Gülersoy
Title: Assessing nature-related risks in the Hungarian financial system: Charting the impact of nature's financial echo
Abstract: This paper presents a technical assessment of nature-related risks within the Hungarian economy and financial system. The study draws upon the OECD Supervisory Framework to (i) prioritise various nature-related risks by conducting an impact and dependency assessment, identifying key economic sectors, and pinpointing the critical natural capital assets that are most crucial to the financial system; (ii) assess the direct and indirect economic impact of three exploratory scenarios on possible acute nature-related shocks using input-output analysis; (iii) explore the different financial risk channels through which economic risks stemming from nature-related losses may be transmitted within the Hungarian financial system; and (iv) provide supervisory recommendations based on the results.
Classification-JEL: C67; E44; E58; G14; G21; H63; Q20
Keywords: biodiversity, economics, finance and investment, financial materiality, nature, nature-related risks
Creation-Date: 2024-06-30
Number: 243
Handle: RePEc:oec:envaaa:243-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Klas Wetterberg
Author-Name: Jane Ellis
Author-Name: Lambert Schneider
Title: The interplay between voluntary and compliance carbon markets: Implications for environmental integrity
Abstract: This paper investigates the interplay between voluntary and compliance carbon markets, with a focus on the environmental integrity implications, in particular mitigation of greenhouse gases. It explores different types of carbon credit markets and the different ways that these markets can, and could, interact. Furthermore, the paper examines how developments in voluntary and compliance carbon markets can impact the mitigation effectiveness of carbon credit markets, including on both the supply and demand sides. The analysis finds that while carbon credit markets could unlock mitigation ambition and action, they also have significant environmental integrity risks that merit government attention. The paper suggests some guiding principles for governments in identifying how to engage with different carbon markets, and recommends that they take strategic, focused and collaborative action. The paper also highlights potential policies that could enhance environmental integrity across carbon markets. In addition to domestic carbon markets, governments could monitor how international and self-regulatory carbon market frameworks evolve. Governments can also assess the role that carbon credit markets play in achieving their climate objectives, and identify opportunities to enhance their mitigation effectiveness.
Classification-JEL: F55; G14; H23; Q52; Q54
Keywords: Article 6, carbon credits, carbon tax, climate change, climate mitigation, compliance carbon market, demand, emissions trading system, environmental integrity, ETS, greenhouse gas emissions, net zero, supply, voluntary carbon market
Creation-Date: 2024-07-18
Number: 244
Handle: RePEc:oec:envaaa:244-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Cian Montague
Author-Name: Kilian Raiser
Author-Name: Moongyung Lee
Title: Bridging the clean energy investment gap: Cost of capital in the transition to net-zero emissions
Abstract: The rapid and deep emissions reductions needed to keep global warming to 1.5°C rely critically on an immense scaling-up of investment in clean energy technologies. The cost of capital plays a key role in determining investment decisions and, when elevated, can pose a significant barrier to accelerated climate action. The high capital expenditure needs of clean energy technologies make them more vulnerable to changes in the cost of capital than fossil fuel alternatives. This paper provides an overview of the cost of capital as a barrier to clean energy investment and depicts the key risk factors that determine the cost of capital for specific investments. It shows how, particularly in developing countries and for new and emerging technologies, a high cost of capital can significantly stifle investment, and calls on governments to implement better risk sharing mechanisms to overcome this barrier.
Classification-JEL: E22; E43; O14; Q25; Q42; Q48; Q54; Q58
Keywords: clean energy investment, clean energy technologies, climate policy, developing countries, finance
Creation-Date: 2024-07-19
Number: 245
Handle: RePEc:oec:envaaa:245-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Ioannis Tikoudis
Author-Name: Andrea Papu Carrone
Author-Name: Rose Mba Mebiame
Author-Name: Nicolina Lamhauge
Author-Name: Katherine Hassett
Author-Name: Olof Bystrom
Title: Household transport choices: New empirical evidence and policy implications for sustainable behaviour
Abstract: This paper offers new insights on household choices related to transport, based on data from the third OECD Survey on Environmental Policies and Individual Behaviour Change (EPIC). The analysis explores the role of key factors determining the choice of fuel type in vehicles and the choice of transport mode in trips. The study uses choice experiment data to estimate the importance of key drivers of electric vehicle purchase decisions and to project future adoption rates of electric vehicles. Results show that income, location and environmental awareness play important roles in the choice of whether to own a vehicle, and its fuel type. Convenient access to charging, such as at home or workplace, can significantly increase the likelihood of choosing an electric vehicle.
Classification-JEL: C25; D12; D91; Q54; R40
Keywords: car ownership, electric vehicle adoption, EV subsidies, fuel type choice, household behaviour, mode choice, range anxiety, recharging infrastructure
Creation-Date: 2024-07-31
Number: 246
Handle: RePEc:oec:envaaa:246-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Katherine Hassett
Author-Name: Rose Mba Mebiame
Author-Name: Aline Mortha
Author-Name: Miwa Nakai
Author-Name: Helene Ahlborg
Author-Name: Kavya Michael
Author-Name: Ugur Ozdemir
Author-Name: Ioannis Tikoudis
Author-Name: Nicolina Lamhauge
Author-Name: Olufolahan Osunmuyiwa
Author-Name: Toshi Arimura
Author-Name: Nick Johnstone
Title: Household energy choices: New empirical evidence and policy implications for sustainable behaviour
Abstract: This paper offers insights on the factors that determine household choices related to energy use, based on data from the third OECD Survey on Environmental Policies and Individual Behaviour Change (EPIC). The analysis profiles households according to patterns in reported energy use and investment in energy-related technologies, assesses the factors driving such decisions and estimates households’ willingness to pay to reduce the emissions of the electricity they use. Results suggest that the feasibility of installing low-emissions energy technologies appears to remain a key obstacle to their uptake, and that households are willing to pay a small but positive premium for electricity produced with fewer emissions. The presence of cross-country differences in behaviours and preferences signals the importance of considering local factors in approaches to energy policies. Environmental concern and environmental motivation increase engagement in sustainable choices, pointing to the cross-cutting relevance of policy efforts to improve environmental knowledge and awareness.
Classification-JEL: D12; D91; Q40; Q42; Q54; C25
Keywords: energy conservation, energy efficiency, household behaviour, residential energy consumption
Creation-Date: 2024-08-01
Number: 247
Handle: RePEc:oec:envaaa:247-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Aude Farnault
Author-Name: Khalifa Sarr
Title: Diversifying sources of finance for water in Africa
Abstract: This working paper provides an in-depth review of the opportunities and challenges surrounding water investment in Africa. It also presents the state of play in the use of ultimate sources of funding (the “3Ts”: tariffs, taxes, and transfers) and financing for water on the continent, showing that these sources are not currently being used to their full potential and in the most efficient and equitable way. In this context, there is a wide range of options to scale up and improve water finance in Africa and to achieve SDG 6 - and, by extension, all the Sustainable Development Goals - on the continent. This paper follows the lifecycle of a project, paying particular attention to equity and affordability. It presents concrete proposals to strengthen water policy investment frameworks, build well-prepared and investment-ready water projects, scale up risk mitigation instruments for water, and diversify financing instruments and sources.
Classification-JEL: F30; G10; G20; H23; H54; H81; O13; Q21; Q25; Q28; O20
Keywords: Africa, economics, finance and investment, tariffs, taxes, transfers, water, water finance
Creation-Date: 2024-08-23
Number: 248
Handle: RePEc:oec:envaaa:248-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Zachary S. Brown
Title: Household waste practices: New empirical evidence and policy implications for sustainable behaviour
Abstract: Effective waste management policies are critical for addressing environmental issues ranging from climate change to pollution. This report uses new survey data to provide evidence on the most important factors in determining key waste-related outcomes at the household level. Results show that providing collection services is critical in supporting household waste prevention efforts and that charging schemes for mixed waste can play an important complementary role in supporting sustainable waste management. Based on a discrete choice experiment, most households are shown to be willing to pay a price premium for products with sustainable packaging, but at the same time, around a third of households would require a price discount in order to opt for such products. Taken together, findings from the analysis show that waste policies play an important role in stimulating demand for sustainable consumption.
Classification-JEL: D1; D12; D91; Q53; C25
Creation-Date: 2024-09-13
Number: 249
Handle: RePEc:oec:envaaa:249-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Álvaro Carbonell Rodríguez
Author-Name: Jean Fouré
Author-Name: Elisa Lanzi
Title: Fiscal and economic consequences of a net-zero transition in Spain
Abstract: To meet the goal of net-zero emissions by 2050, Spain will need to take further climate action in the years ahead. Enhanced policy measures, such as taxes, subsidies and standards, will have implications for the public budget and for the economy. This paper quantifies these implications by comparing two scenarios developed with the ENV-Linkages model: a baseline with current policies, and a net-zero scenario in which more ambitious climate policy measures are implemented to reduce CO2 emissions. The analysis shows that ambitious climate action and economic growth can go hand-in-hand. While the consequences for the public budget will be strongly influenced by the chosen climate policy instruments, the findings illustrate that the changes in net fiscal revenues induced by additional climate policy can be small compared to the overall size of government revenues in 2050.
Classification-JEL: C68; H20; H61; Q43; Q54; H23
Keywords: climate change mitigation, computable general equilibrium models, net-zero, public budget
Creation-Date: 2024-10-10
Number: 250
Handle: RePEc:oec:envaaa:250-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Jolien Noels
Author-Name: Mark Bernhofen
Author-Name: Raphaël Jachnik
Author-Name: Simon Touboul
Title: Towards assessing the alignment of finance with climate resilience goals: Exploring options, methodologies, data and metrics
Abstract: Adapting to growing climate change risks and achieving climate resilient development requires making finance consistent with this goal, as called for by Article 2.1c of the Paris Agreement. To assess progress and help inform policies to increase the climate resilience of finance flows and stocks, major conceptual and data gaps need to be filled. This paper explores possible methods, data and metrics to help fill those gaps. It takes stock of existing approaches and data to assess physical climate risks in finance, and then identifies complementary analytical dimensions, data and information needed for assessing the alignment of finance flows and stocks with climate resilience policy goals. In this context, the paper proposes actions that policymakers, researchers and market players can take to support credible and comparable assessments, as well as identifies the need for pilot studies to help adjust and refine the approach while identifying feasible and practical indicators.
Classification-JEL: G23; G24; Q54; Q56
Creation-Date: 2024-10-24
Number: 251
Handle: RePEc:oec:envaaa:251-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Miguel Cárdenas Rodríguez
Author-Name: Emma Schwentner
Author-Name: Edoardo Falchi
Author-Name: Andrzej Suchodolski
Author-Name: Rodrigo Pizarro
Title: National greenhouse gas emission inventories, filling the gaps in official data
Abstract: This paper addresses the need for a comprehensive global dataset on national greenhouse gas (GHG) emission inventories to support policy analysis and track progress towards climate change mitigation goals. While numerous datasets exist, gaps in official data, particularly from developing countries, hinder their utility. The paper develops a methodology to compile a complete dataset, prioritising official data reported to the United Nations Framework Convention on Climate Change (UNFCCC) and the OECD. To fill gaps, estimates based on unofficial datasets, such as PRIMAP, will be used, as they demonstrate the greatest alignment with official data in terms of emission levels, trends and categories. As official data become available under the Enhanced Transparency Framework of the Paris Agreement, estimated values would be replaced and additional data collection would not be necessary. The dataset disaggregates emissions by IPCC categories, gases, countries, and years, distinguishing between official data points and estimates. This harmonised dataset enhances transparency, improves data collection efficiencies, and enables more robust evidence-based policy analysis. Moving forward, the paper recommends refining the dataset with sector-specific data and fostering collaboration with international organisations to improve the reliability and consistency of global GHG emissions data and indicators.
Classification-JEL: C82; E01; Q54; Q56
Keywords: climate change mitigation, emission sources, Greenhouse gas emissions, national inventories, official data
Creation-Date: 2024-11-29
Number: 252
Handle: RePEc:oec:envaaa:252-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Andrew Brown
Author-Name: Peter Börkey
Title: Extended producer responsibility in the garments sector
Abstract: Garments generate many environmental impacts. They use chemicals and water, produce greenhouse gas emissions and generate waste. The aim of this working paper is to evaluate the potential for the extended producer responsibility (EPR) approach to help achieve public ambitions for the adoption of circular economy principles in the garments product sector. The paper reviews the environmental impacts of garments, the landscape of current policy and an analysis of the impacts of existing EPR schemes. The limited available experience suggests that EPR improves rates of separate collection of garments. In addition to improving collection and sorting, there is the possibility that EPR can help to reduce environmental impacts generated by the production, use and disposal of garments. This is primarily by changing the economic incentives for producers, consumers and waste managers.
Classification-JEL: L22; L23; Q53; Q56; Q58
Keywords: Circular economy, extended producer responsibility, recycling, resource efficiency, sustainable consumption
Creation-Date: 2024-12-11
Number: 253
Handle: RePEc:oec:envaaa:253-EN

Template-type: ReDIF-Paper 1.0
Author-Name: Vladimir Tesnière
Author-Name: Mikaël J. A. Maes
Author-Name: Ivan Haščič
Title: Monitoring land cover change to understand biodiversity pressures: Indicator methodology and key findings
Abstract: Land cover changes have significant implications for biodiversity. Recent advances in computational methods and increased Earth observation data availability allow for analyses at unprecedented levels of detail, both in terms of accuracy and years available. This paper builds on previous OECD work to develop a set of indicators assessing land cover and land cover conversions with likely biodiversity pressures on terrestrial and freshwater ecosystems. Key land cover conversions include tree cover loss and gain, cropland expansion and contraction, and urban and infrastructure development. The paper presents key results for 49 OECD and partner countries, showing that many countries have experienced a decline in natural and semi-natural vegetated land since the baseline year of 2000.
Classification-JEL: Q15; Q18; Q23; Q24; Q25; Q28; Q57; Q58; R14; R52
Keywords: biodiversity policy, climate policy, Earth observation, habitat destruction, land cover, land degradation, natural resource management
Creation-Date: 2024-12-17
Number: 254
Handle: RePEc:oec:envaaa:254-EN