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Behavioral factors have been identified to determine farmers' uptake of the adoption of sustainable farming practices. However, the coherent consideration of empirically identified behavioral factors in ex-ante model-based policy assessments is still rare. This study presents an agent-based modelling framework that integrates empirical data on farmers' cognitive, social, and dispositional characteristics. Using this framework, we test and quantify the impact of including behavioral factors in ex-ante assessments of agricultural policies aimed at promoting sustainable farming practices. Thereby, we apply the same modelling framework to quantify and compare the effectiveness of results-based payments for climate change mitigation measures and precision agricultural technologies in two Swiss case studies. Our results indicate that farmers' cognitive and dispositional factors (e.g., reluctance to change) reduce the uptake of sustainable farming practices by 20–70% compared to simulations using income maximization as the underlying decision-making concept. In contrast, social factors can increase adoption by up to 40%. We conclude that including behavioral factors allows to improve ex-ante policy assessments in the context of sustainable farming practices. In addition, these approaches can highlight the importance of policy instruments that complement traditional economic measures, such as public support for the creation of networks. • We integrate behavioral economics in ex-ante assessments of agricultural policies. • The study combines agent-based modelling and empirical data on farmer behavior. • Results allow for a comparison of different decision-making models. • Behavioral factors reduce the uptake of sustainable farming practices. • Social factors can increase the adoption and the efficiency of agricultural policies. [ABSTRACT FROM AUTHOR]

To motivate public participation in climate change mitigation, both "carrot" policies that create positive incentives for mitigated carbon and "stick" policies that create negative incentives for emitted carbon have been widely applied. Given the joint deployment of these measures, a key question is whether they are compatible with each other. Focusing on the Low-Carbon Reward Scheme (LCRS) and carbon taxes, two prominent proposals on China's climate policy agenda, this study evaluates how one incentive policy affects public support for the other. The results of a large survey experiment with Hangzhou residents indicate a two-way crowding-out effect, wherein introducing the LCRS diminished support for the tax, albeit primarily among LCRS proponents, and introducing the tax reduced support for the LCRS. Aligning with the proposed account, crowding out was driven by a decrease in policy effectiveness and fairness perceptions. These findings reveal a contradictory relationship between carrot and stick policies at the citizen level and illuminate the underlying mechanism. • Both carrot and stick policies are applied to motivate climate mitigation behaviors. • We identify a two-way crowding-out effect between these policies in public opinion. • Introducing a stick (carbon tax) reduces support for a carrot (low-carbon reward). • Introducing a carrot reduces support for a stick among people favoring the carrot. • Crowding out is driven by weakened policy effectiveness and fairness perceptions. [ABSTRACT FROM AUTHOR]

Methane seeps are highly productive ecosystems that provide carbon sequestration services, host diverse communities including endemic species, and serve as habitats for commercial fisheries. Little is known about the economic value the public places on them. Discrete Choice Experiments (DCEs) are administered to a sample of Costa Rican taxpayers to evaluate their willingness to pay (WTP) in monetary terms using tradeoffs made in a survey context involving three of the main attributes of methane seep ecosystems to provide insights for future conservation and management efforts. Extensive effort is devoted to understanding how Costa Ricans view different aspects of the deep sea. We find that they associate it with strange animals, natural resources, the unknown, and being far from reach. Perhaps surprisingly, they underestimate how much they know about the deep sea. We find that WTP for methane seep protection is the highest for programs that protect seeps with endemic species, followed by seeps with high climate change mitigation potential and commercial fishing habitat. Higher-income groups and women are more likely to prefer options that increase the current level of protection. We discuss how science communication and community engagement contribute to care expressed toward the deep sea. • Methane seeps provide important ecosystem services and economic values. • Costa Ricans are willing to pay for methane seep conservation. • Human connection and highest WTP were associated with existence values. • WTP increased with knowledge, suggesting a key role for science communication. • Management efforts should consider deep-sea literacy and non-use values. [ABSTRACT FROM AUTHOR]

Energy transitions in Indigenous, Northern and remote communities in Canada promise benefits that go beyond reliable, clean and affordable energy services. The Federal and Provincial governments have committed funding to get remote communities off diesel, acknowledging energy transitions' global and local benefits. Besides climate change mitigation, other benefits, including job creation, income generation, community ownership and local economic growth, are fundamental components of the value proposition of renewable energy projects. However, despite the promises, little evidence of the impacts of renewable energy on communities' local conditions exists. This article looks at the relationship between renewable energy projects and community well-being in Canada. We construct a panel of Indigenous communities and well-being levels using Census data and information about renewable energy projects for the period 1981–2016. The findings suggest that renewable energy is associated with higher levels of well-being. Concretely, having access to renewable energy increases overall well-being by 1 to 5 points on the 0–100 well-being scale, depending on the component of the well-being index considered in the analysis. • Renewable energy and community wellbeing is an essential relationship for successful energy transitions. • The size of the renewable energy projects is strongly associated with higher community wellbeing. • Communities that hold majority ownership of renewable energy projects exhibit higher wellbeing levels. • Solar and wind energy projects are associated with higher wellbeing levels, whereas hydropower is associated with lower ones. [ABSTRACT FROM AUTHOR]

Virtual water trade (VWT) is the trade of water 'embodied' in a product. This paper explores the extent to which bilateral tariffs, World Trade Organization (WTO), and Regional Trade Agreements (RTA) reshape the trade of water across nations and alleviate water scarcity issues. To achieve this goal, we built a panel database on blue (irrigation water) and green (rainwater) VWT among paired trading countries from 1998 to 2002. Using a standard gravity model, we study how the bilateral tariff and WTO/ RTA affect the intensity of blue and green VWT. The results indicate that, on average, a 1% tariff reduction increases the green virtual water trade by 0.219%. In most waterstressed countries, a 1% reduction in tariffs increased blue VWT by 0.416% and green VWT by 0.424%. By crops, we find that tariffs had a negative effect on VWT for the less water-intensive crops, but a positive effect or no effect on the more water-intensive crops. We further find in the most water-stressed countries, RTA facilitated VWT. As a climate mitigation strategy, water-scarce countries can increase VWT, thus reducing the production of water-intensive crops, by lowering tariff rates independently or through trade agreements. [ABSTRACT FROM AUTHOR]

Drained peatland currently contributes 7.5% of Germany's total national greenhouse gas emissions. The National Peatland Protection Strategy adopted by the German government in 2022 recognizes that these emissions need to be reduced significantly to meet the country's climate change mitigation commitments. The present study employs a global dynamic computable general equilibrium model to assess the economic and greenhouse gas emission impacts of alternative agriculture-focused peatland rewetting scenarios for Germany up to 2030. In contrast to partial-analytic approaches, the global general equilibrium approach allows to take consistent account of economic ripple-on effects and carbon leakage effects triggered by peatland rewetting. The results suggest that in the medium term towards 2030 a reduction in annual emissions from agricultural peatland use by up to 45% are attainable at marginal private abatement costs between 27 and 61 Euro/tCO 2 e. Carbon leakage effects due to induced indirect land use change in Germany and the rest of the European Union reduce the global net emission reduction impact by 0.7 to 1.0% of the direct emission reduction. The effects on food prices remain small in all scenarios. In conclusion, a sizable reduction of Germany's land-use-related emissions is achievable at a low macroeconomic cost by moving beyond the moderate ambitions of the National Peatland Restoration Strategy. [ABSTRACT FROM AUTHOR]

The Andalusian olive grove in South Spain is employed as a case study to assess the environmental and economic effects of the green architecture (eco-schemes) of the Common Agricultural Policy in relation to low carbon agriculture under different soil management policy scenarios to support more efficient agri-environmental policy making. To do so, we adopted a multidisciplinary approach in which we used: (i) an integrated modelling framework comprising geographic information systems (GIS); (ii) the RothC model; and (iii) a cost-benefit analysis. Results show that eco-schemes provide a significant increase of soil organic carbon (SOC) relative to cross-compliance. Practices involving vegetation covers are more efficient than using pruning residues as mulching. SOC accumulation increases rapidly in the first five-ten years to slow down afterwards. The cost-benefit ratios of eco-schemes policy implementation are higher than one when only SOC is considered. Nonetheless, the inclusion of additional co-benefits has the potential to invert this scenario and enhance policy efficacy. Various insights on optimizing the design and application of eco-scheme efficiency are provided. • The new eco-schemes CAP instrument proposed for woody crops contribute to increase SOC • Mowing cover crops leads to the highest SOC stocks, whereas pruning debris maintains SOC stocks. • Tillage and no-tillage with bare soil systems lead to a significant depletion of SOC stocks. • The economic benefits of eco-schemes would not off-set the costs borne by public authority • Environmental externalities are key to reach the profitability of the policy instruments. [ABSTRACT FROM AUTHOR]

The IPCC's 6th assessment report (AR6) has provided a wide range of variables and scenarios that meet climate targets of varying ambition. Many variables reported in the AR6 affect human welfare through climate change and mitigation, including but not limited to economic output, the natural environment, human health, and food and energy supply. In some of these dimensions, trade-offs exist between better performance in welfare-relevant dimensions and reaching more ambitious climate targets. Here, we apply recent advances in the theoretical multidimensional measurement of welfare, like the Human Development Index, to the AR6 database. The welfare metric is based on a welfare function approach, simple to apply, and intuitive. We apply a range of specifications of the welfare metric, aiming to derive robust rankings of climate policy targets that perform best in terms of the multidimensional welfare index. Across a large range of weights on welfare-relevant variables, we find that lower temperature is associated with higher welfare in 2100 unless there is a high weight on food supply. [ABSTRACT FROM AUTHOR]

This study explores how rising economic costs of climate mitigation policies differentially shape climate policy support among the political left and right. To this end, we randomly manipulate how much consumption costs increase as a result of four different climate mitigation policies and study how different cost scenarios influence policy support among a sample of 1,597 Swedish adults. We find that more costly climate policies induce greater climate policy polarization, since right-leaning participants display both lower baseline and more cost-sensitive climate policy support. In addition, we investigate how policy costs affect participants' concerns about the climatic consequences of consumption. While inconclusive, the results indicate that right-leaning participants, in some instances, display less concern about the climatic consequences of consumption when policy costs rise. This pattern can be understood through the lens of motivated disbelief, which holds that people adjust their beliefs in order to support their preferred actions. The present study provides novel insights as to how and when material conditions influence climate policy preferences. [ABSTRACT FROM AUTHOR]

In 2018, Costa Rica demonstrated its commitment to the Paris Agreement and published its Decarbonization Plan for achieving zero net emissions by the year 2050. We evaluate the impacts of the country's strategy for decarbonizing its Agriculture, Forestry and Other Land Uses (AFOLU) sectors by coupling the Integrated Economic-Environmental Modeling framework with high-resolution spatial land use-land cover change and ecosystem services modeling (IEEM+ESM). Our results show that decarbonization of AFOLU would simultaneously enhance carbon storage, water purification, water regulation and erosion mitigation ecosystem services. Moreover, the positive cumulative wealth impact of decarbonization would be approximately US$7.27 billion by 2050 while lifting an additional 3810 individuals out of poverty. From a public investment perspective, decarbonization would have a fiscally neutral impact with the economic benefits sufficient in magnitude to off-set policy implementation costs and generate economic returns of over US$852 million when changes in natural capital stocks and environmental quality are considered. This application to Costa Rica is the first integrated economy-wide analysis of a growing number of decarbonization plans globally. The IEEM+ESM approach provides an integrated framework for analyzing decarbonization plans and can be used to refine AFOLU mitigation strategies to capitalize on synergies and minimize negative trade-offs across the three dimensions of wealth and sustainable economic development, namely economy, society and the environment. • Decarbonization of Costa Rica's AFOLU will generate US$7.3 billion in wealth. • AFOLU decarbonization will be fiscally neutral and generate returns of US$852 million. • The methods can be applied to integrated analysis of decarbonization globally. [ABSTRACT FROM AUTHOR]

We argue in this study that higher electricity expenditures increase voter support for the radical right because these parties oppose costly climate mitigation policies. We use data from Sweden, which experiences extremely high demand for heating energy during winter months. The demand for electricity differs greatly between geographical regions due to large temperature differences, from 0 in the southern regions to −50 Celsius in the north. We create our independent variable of electric grievances based on this variation, which increases faster with the spot price of electricity in neighborhoods with a low disposable income relative to the average electricity bill in that area. Using this setup, we find that electric grievances are associated with increased support for the radical right. We argue that soaring electricity prices tend to hurt parties with a mainstream profile since voters associate them them with more ambitious decarbonization policies, while the radical right gain support, since they tend to oppose costly solutions. Our results suggests that the transition to renewable energy can grind to a halt when electricity prices rise higher because voters may abandon the parties who push for the green transition. [ABSTRACT FROM AUTHOR]

Energy efficiency measures are a key element in the fight against climate change. However, their effectiveness is threatened by so-called rebound effects—behavioral changes that lead to increased use and thus to lower-than-expected absolute savings. The moral licensing bias might cause rebound effects on the individual level: When people implement energy efficiency measures, they may feel that they have done something good for the climate and thus license themselves to less climate-friendly behavior later on. We test this prediction with three pre-registered experiments (total n = 2315). While our manipulated efficiency does increase the feeling of having done something good for the climate, no negative effects emerge on subsequent climate-friendly behavior—contrary to the predictions derived from the moral licensing literature. Climate-friendly behavior is thus not hampered by prior energy efficiency behavior; rather, demographics (women and older people act in a more climate-friendly manner) and environmental attitude determine it. Our results imply that the literature suggesting moral licensing is probably not transferable to the field of energy efficiency, and thus moral licensing may not lead to rebound effects in this context. We discuss possible explanations, implications for climate policy making, and needs for future research. [ABSTRACT FROM AUTHOR]

Economists agree that carbon taxes are the most effective solution for climate change mitigation. But where do fossil fuel companies stand on carbon taxes? I analyse how the 100 largest oil and gas companies communicate on carbon taxes. Surprisingly, I find that 54% of companies that have a policy on carbon taxes support them (78% for the 50 largest). This is puzzling as an effective carbon tax should reduce the revenues and reserve value of fossil fuel companies. To understand this paradox, I offer non-mutually exclusive reasons why fossil fuel companies might support carbon taxes. Oil and gas companies could use a carbon tax to get rid of the competition from coal, create a level playing field and remove regulatory uncertainty. Or they think that these taxes will not affect them because demand for oil and gas is inelastic or that international coordination will fail and lead to leakages. Finally, it could be that this is simply a communication exercise. A carbon tax helps them shift the responsibility from fossil fuel companies to customers, voters and elected officials. [ABSTRACT FROM AUTHOR]

It is argued that the political feasibility of climate mitigation policies depends heavily on their distributional effects. This paper therefore studies the distributional effects of the European Commission's Fit-for-55 package at the household level in seven EU countries, analyzing a carbon tax on transport and heating fuels as well as variations of a lump-sum refund. Based on the resulting income distributions, different inequality measures are computed. The paper aims to extend previous methodological approaches by including inequality measures such as the Theil index and Atkinson index and comparing the results of carbon taxes on transport and heating fuels for seven EU countries in a consistent manner. I find that a household-size specific lump-sum refund not only mitigates the negative distributional effects of a carbon tax but also reduces overall inequality compared to the baseline scenario without a tax. [ABSTRACT FROM AUTHOR]