Search

In the debate between proponents of green growth and degrowth, the core issue is whether decoupling carbon emissions and resource use from GDP growth is possible, and if so, possible at a rate fast enough to achieve policy goals such as global warming of maximum 1.5 °C or 2 °C. In this paper, the claims by degrowth scholars on the limits of decoupling growth and carbon emissions are critically examined by assessing the economic and climate consequences of their claims. It is claimed that their pessimistic view on decoupling is not based on robust arguments but rather mystifications of what decoupling is. Following the assumptions by leading degrowth scholars – that decoupling (decrease of the emission intensity of GDP) are unlikely to be larger than 4% and that levels of GDP need to converge in a degrowing world – indicates that the 1.5 °C target is ruled out altogether and that in order to reach the 2 °C target, the economies of the global north would have to be reduced with over 90% and for middle income countries with around 70%. This appears as very unlikely to happen. Yet, there might be alternatives, which are discussed by sketching a realist and dynamic theory of decoupling. • The pessimist assumptions on decoupling by some degrowth scholars presuppose an economic collapse of unseen magnitude • Alternatively, stringent climate goals such as 1.5 °C, are not attainable • These pessimist assumptions are, however, not based on robust arguments, and ways to demystify decoupling is discussed [ABSTRACT FROM AUTHOR]

Abstract This paper deals with fishery management in the face of the ecological and economic effects of global warming. To achieve this, a dynamic bioeconomic model and model-based scenarios are considered, in which the stock's growth function depends on the sea surface temperature. The model is empirically calibrated for the French Guiana shrimp fishery using time series collected over the period 1993–2009. Three fishing effort strategies are then compared under two contrasted IPCC climate scenarios (RCP 8.5 and RCP 2.6). A first harvesting strategy maintains the Status Quo in terms of fishing effort. A more ecologically-oriented strategy based on the closure of the fishery is also considered. A third strategy, which relates to Maximum Economic Yield (MEY), is based on the optimisation of the net present value derived from fishing. The results first show that ‘Status Quo’ fishing intensity combined with global warming leads to the collapse of the fishery in the long run. Secondly, it turns out that the Closure strategy preserves stock viability especially under the optimistic climate scenario. Thirdly, the MEY strategy makes it possible to satisfy bioeconomic performances requirements with positive stock and profit, once again, especially under the optimistic warming scenario. Consequently, MEY emerges as a relevant bioeconomic strategy in terms of adaptation to climate change but only in connection with climate change mitigation. [ABSTRACT FROM AUTHOR]

Abstract This paper examines the impact of climate change on the bio-economic performance of Bay of Biscay mixed fisheries and explores the capacity of alternative management strategies to cope with these impacts. A dynamic multi-species, multi-class, multi-fleet model is developed and calibrated using available biological, economic and environmental information for French fleets. Fishing and economic data have been collected within the European Data Collection Framework. Climate represented by the sea surface temperature is assumed to affect species recruitment. Three management strategies are compared in terms of bio-economic outcomes: the Status-Quo (SQ), a Multi-species Maximum Sustainable Yield (MMSY) strategy and a Multi-species Maximum Economic Yield (MMEY) strategy. These strategies are ranked with respect to two contrasted scenarios regarding the Representative Concentration Pathways (RCP) driving climate change. Results show that the SQ strategy is not sustainable and is characterized by a major decline of the key commercial species. By contrast, the MMSY strategy improves the ecological state and economic performance of the fishery. The MMEY strategy yields even greater bio-economic improvements. Bio-economic benefits are however altered by the effects of climate change. Under the MMEY strategy, fleets with more diversified catch structures perform better facing climate change. [ABSTRACT FROM AUTHOR]

This paper presents a macroeconomic model that combines the economic impact of climate change with the pivotal role of private debt. Using a Stock-Flow Consistent approach based on the Lotka–Volterra logic, we couple its nonlinear monetary dynamics of underemployment and income distribution with abatement costs. A calibration of our model at the scale of the world economy enables us to simulate various planetary scenarios. Our findings are threefold: 1) the +2 °C target is already out of reach, absent negative emissions; 2) the long-term (resp. short-term) results of climate change on economic fundamentals may lead to severe economic consequences without the implementation (resp. in case of too rapid an application) of proactive climate policies. Global warming (resp. too fast transition) forces the private sector to leverage in order to compensate for output and capital losses (resp. to lower carbon emissions), thus endangering financial stability; 3) Implementing an adequate carbon price trajectory, as well as increasing the wage share, fostering employment, and reducing private debt make it easier to avoid unintended degrowth and to reach a +2.5 °C target. [ABSTRACT FROM AUTHOR]

Carbon pricing is an essential instrument to address climate change. However international differences in carbon control policies may cause not only carbon leakage but also competitiveness disadvantages. In this context, border carbon adjustments are a promising tool for discouraging these problems. But designing a real-world border carbon adjustment instrument implies to consider significant issues: technical feasibility, data availability, the risk of retaliation from developing countries, and its compatibility within the World Trade Organization legal framework. There are still no conclusive answers about a proper design. This paper is an attempt to address the above-mentioned challenges proposing a carbon border tax (CBT) based on avoided emissions. Such a CBT is applied at a product level and not at a sector level, and all international prices are deflated to guarantee that import ‘like’ goods received a treatment similar to ‘like’ domestic products. Using the WIOD, we simulate a CBT based on avoided emissions applied by the European Union, and we compare the results with a CBT based on embodied emissions. [ABSTRACT FROM AUTHOR]

Abstract: This paper examines the economic impact of climate change on livestock production in Kenya. We estimate a Ricardian model of net livestock incomes and further estimate the marginal impacts of climate change. We also simulate the impact of different climate scenarios on livestock incomes. The Ricardian results show that livestock production in Kenya is highly sensitive to climate change and that there is a non-linear relationship between climate change and livestock productivity. The estimated marginal impacts suggest modest gains from rising temperatures and losses from increased precipitation. The predictions from atmospheric ocean general circulation models suggest that livestock farmers in Kenya are likely to incur heavy losses from global warming. The highest and lowest losses are predicted from the Hadley Centre Coupled model (HADCM) and Parallel Climate Model (PCM) respectively, based on the Intergovernmental Panel on Climate Change A2 Special Report on Emissions Scenarios. The paper concludes that in the long term, climate change is likely to lead to increased poverty, vulnerability and loss of livelihoods. Several policy interventions are recommended to counter this impact. [Copyright &y& Elsevier]

In integrated assessment models (IAMs) economic activity leads to global warming, which causes future economic costs. However, typical IAMs do not explicitly represent the role of natural capital. In this paper, the DICE model by Nordhaus (2008) is expanded with a natural capital variable that is affected both by climate change and by depletive effects of economic activity. Due to a synergy between the two effects, the optimal policy of the expanded model features more and earlier abatement of CO 2 emissions than DICE. Interestingly, the policy implications are different from what follows if one tries to capture the depletive effects on natural capital by simply reducing factor productivity growth in DICE. Acknowledging considerable uncertainty, simulations show that climate- and savings rate policies from the expanded model are more robust in the long term than policies that do not consider non-climatic depletion effects on natural capital. [ABSTRACT FROM AUTHOR]

This paper examines the extent and the determinants of global climate change beliefs. In contrast to former studies for the U.S. and other western countries, we focus on China due to its crucial role in international climate policy in conjunction with its vulnerability to global warming. The empirical analysis is based on unique data from a survey among more than 1000 adults in five Chinese cities. In line with former studies, our results reveal that the vast majority of almost 90% of the Chinese respondents believes in the existence of global warming. This seems to be a convenient and necessary basis for the support of costly public adaptation activities in China. Our econometric analysis reveals that already perceived experiences with extreme weather events (and particularly heatwaves) alone are strongly correlated with climate change beliefs and that physical or financial damages due to these events lead to even stronger relationships. Our estimation results additionally suggest females as well as people with a lower education, in medium ages, with higher household incomes, and from Chengdu or Shenyang to be more skeptical toward the existence of climate change. [ABSTRACT FROM AUTHOR]

Activists and scholars increasingly blame neoliberalism for the failure to sharply reduce greenhouse gas emissions, but there is insufficient research that investigates the theoretical link between neoliberalism and climate paralysis. This paper seeks to fill that gap by presenting a coherent account of how neoliberal ideology has constrained policies to address climate change in the United States. As motivation, we first present evidence suggesting more neoliberal countries perform worse in addressing climate change. We then analyze how three tenets of neoliberal ideology—to decentralize democracy, defund public investment, and deregulate the economy—have stymied climate action in the United States. Finally, we discuss the Green New Deal as a decisively anti-neoliberal framework that seeks to wield the power of the federal government to pursue large-scale public investments and binding climate regulations for rapid decarbonization. [ABSTRACT FROM AUTHOR]