Dirk Schoenmaker, 17 August 2021

The CEPR recently launched its research policy network on sustainable finance. Dirk Schoenmaker of the Rotterdam School of Management is leading the RPN, and Tim Phillips asks him what “sustainable” finance is, how the RPN will involve bankers as well as academics, and how big an effect it can have on policy choices.

Pamela Campa, Lucija Muehlenbachs, 22 July 2021

Every year in the US around 5,000 cases are brought against defendants for violating federal environmental statutes, with defendants given the opportunity to volunteer ‘Supplemental Environmental Projects’ in lieu of a cash penalty. This column uses the history of US federal environmental cases between 1997 and 2017 to examine the implications of such in-kind settlements for firms and communities. The findings suggest that on economic grounds, the use of Supplemental Environmental Projects is beneficial and worth continuing and that, as recommended by the OECD, environmental agencies worldwide could fruitfully use in-kind settlements.

Patrick Bolton, Marcin Kacperczyk, 24 March 2021

A company’s carbon-transition risk – associated with curbing carbon emissions within a relatively short period of time – is proportional to the size and growth rate of the company’s carbon emissions. This column asks whether companies with different carbon emissions have different stock returns. The total level of a company’s CO2 emissions and the year-by-year growth in emissions significantly affect its stock returns in most geographic areas of the world. The increasing cost of equity for companies with higher emissions can be a form of carbon pricing by investors seeking compensation for carbon-transition risk.

Ralph De Haas, Ralf Martin, Mirabelle Muûls, Helena Schweiger, 19 March 2021

Many countries are striving for net-zero carbon emissions by 2050, requiring massive investments over the next decades. But many companies, especially smaller ones, will not be able or willing to invest in cleaner technologies. This column explores how organisational constraints can hold back the green transition of firms in less-developed economies. The findings reveal how financial crises can slow down the decarbonisation of economic production and caution against excessive optimism about the potential green benefits of the current economic slowdown, which – like any recession – has led to temporary reductions in emissions.

Mattia Di Ubaldo, Steven McGuire, Vikrant Shirodkar, 03 January 2021

The adoption of environmentally friendly production methods matters to both firms and policymakers, as both are concerned with reducing the emissions of greenhouse gases and pollutants. This column studies the effect on emissions of environmental protection provisions in EU free trade agreements, as well as that of private ISO-14001 environmental certifications. Environmental protection provisions in EU trade agreements are associated with lower levels of sulphur dioxide and nitrogen oxide emissions, while ISO-14001 certifications are associated with lower levels of greenhouse gas emissions. For carbon dioxide, ISO-14001 certifications matter only for members of trade agreements with environmental protection provisions, suggesting the existence of complementarities between private and public environmental regulation.

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European Center of Sustainable Development in collaboration with Canadian Institute of Technology will organize the 9th ICSD 2021 International Conference on Sustainable Development, with particular focus on Environmental, Economic and Socio-Cultural Sustainability.

The Conference theme : "Creating a unified foundation for the Sustainable Development: research, practice and education".

Papers will be published in Open Access EJSD Journal (Web of Science) and Proceedings.
For further information, please see the call for papers at https://ecsdev.org/publications

The 9th ICSD 2021 will be an excellent opportunity to share your ideas and research findings relevant to the Sustainability Science, through the European network of academics.

Ross Levine, Chen Lin, Zigan Wang, 14 June 2020

There is ample evidence of the negative effects of pollution on health, with about one in six deaths worldwide attributed to air pollution. However, the effect of one firm’s toxic emissions on neighbouring firms’ employees and profits are not known. This column examines whether opening toxic pollution-emitting plants affect the career paths of executives at S&P 1500 firms in the US. The opening of such plants triggers substantial increases in executive migration from neighbouring firms. Corporations exposed to toxic emissions from other firms lose talented individuals and suffer stock-price declines.

Panle Jia Barwick, Shanjun Li, Liguo Lin, Eric Zou, 12 February 2020

During 2013–2014, China launched a nationwide, real-time air quality monitoring and disclosure programme which substantially expanded public access to pollution information. This column analyses the impact of the programme and finds that it triggered a cascade of changes in household behaviour, prompting people to find out more online about pollution-related topics, adjust their day-to-day consumption to avoid exposure to pollution, and exhibit a higher willingness to pay for housing in less-polluted areas. The programme’s estimated annual health benefits far outweigh the combined costs of the programme and associated pollution-avoidance behaviours.

Vladimir Otrachshenko, Olga Popova, José Tavares, 22 December 2019

There is evidence that hot climatic temperatures and crime are linked. With climate change raising temperatures around the world, it is possible we may see higher levels of personal aggression. Based on data from Russia, this column shows that on hotter days, women are more likely to be killed in homicides, especially over weekends. Colder days have no similar effect on violence. Lower wages and higher unemployment contribute to higher homicide rates, so policies promoting employment may mitigate victimisation during extreme temperature days.

Ralph De Haas, 22 November 2019

We think about climate policies as moderating or interceding in markets. 
But a new paper implies that when stock markets play a bigger part in the economy, polluting industries become cleaner. Tim Phillips asks Ralph De Haas of the European Bank for Reconstruction and Development whether we already have a green finance initiative under our noses.

David Keiser, Joseph S. Shapiro, 05 October 2019

The Trump administration recently repealed the US Clean Water Rule, which sought to extend federal water quality protection to cover most rivers and streams. This column seeks to better understand the effectiveness of such laws that govern US surface and drinking water quality, the efficiency of these laws, and the state of economic research on water quality. It finds that regulations governing surface water quality are more likely to fail cost-benefit tests compared to drinking water and air pollution regulations, possibly due to an underestimation of the benefits of surface water pollution control.

Beata Javorcik, 13 September 2019

Economists argue whether foreign direct investment in developing economies exports pollution or generates green growth. Beata Javorcik talks to Tim Phillips about a surprising conclusion from factory-level research.

Arlan Brucal, Beata Javorcik, Inessa Love, 16 August 2019

The link between foreign ownership and environmental performance remains a controversial issue. Data from the Indonesian manufacturing census show that plants undergoing foreign acquisitions reduce their energy intensity by about 30% two years after acquisition by multinationals. This column argues that foreign direct investment can serve as a channel for the international transfer of environmentally friendly technologies and practices, thus directly contributing not only to economic growth but also to environmental progress. 

Yashaswini Dunga, Nancy Hardie, Stephanie Kelly, Jeremy Lawson, 25 March 2019

As climate change worsens and the forces of populism gather, there is a strong argument for moving beyond narrow economic measures of national progress. This column presents a new indicator of progress that integrates environmental, social, and governance factors into growth analysis. Results show that the countries that have been able to blend economic dynamism with environmental, social, and governance dynamism are mostly developing economies. These countries often fly under the radar of traditional macroeconomic analyses. 

Paul De Grauwe, 19 December 2018

David Keiser, Joseph S. Shapiro, 24 October 2018

Many argue that the $1 trillion cost of the 1972 US Clean Water Act outweigh its benefits. The column uses new evidence on grants and water pollution readings to measure its impact. While the Act has decreased US water pollution, the estimated change in home values caused by this has been only one quarter of the grant costs, although this probably understates the full impact of the Act. The analysis suggests that targeting water pollution in more populous areas would improve net social benefits.

Ralph De Haas, 15 June 2018

In the 2015 Paris Agreement, participating countries committed to trying to limit the increase in the global temperature to no more than 2 degrees, requiring a major transition in the way we produce products and services. Ralph de Haas explains his research on how this Green Transition can be financed, and whether certain types of finance - in particular stock vs. credit markets - are better suited to achieving 'greener growth'. This video was recorded at CEPR's Third Annual Spring Symposium.

Diego Comin, 04 April 2018

Europe currently faces multiple challenges on economic, demographic, and environmental fronts. All of these can be addressed by innovations in technology and process. This video discusses some of the outcomes of the EU-FRAME mid-term conference, outlining ways in which innovation policy can be designed so as to best serve welfare and productivity across all actors. This conference took place in March 2018 at ZEW, Mannheim.

CEPR is a partner of the FRAME Project, which is coordinated by ZEW. The CEPR team is led by Diego Comin, a Research Fellow in its Macroeconomics and Growth Programme. The FRAME project has received funding from the European Union's Horizon 2020 Research and Innovation Programme under the grant agreement No #727073.

Adrien Vogt-Schilb, Guy Meunier, Stéphane Hallegatte, 29 March 2018

Traditional climate economics models recommend capturing the cheapest opportunities to reduce emissions first and keeping the most difficult options for later. This column argues that when the fact that reducing emissions takes time and requires investments in long-lived goods and assets is taken into account, the most cost efficient strategy overall is to act immediately in the sectors that are the most expensive and difficult to decarbonise, even if this means investing in options that have a higher cost right now than available alternatives. Actions on urban planning and urban transport systems are especially urgent.

Ruth Greenspan Bell, 10 January 2018

Should countries keep extracting natural resources? In this video, Ruth Greenspan Bell discusses the challenge of promoting development while protecting the environment. This video was recorded at UNU-WIDER in May 2016.

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