The concept of environmental capital is thoroughly entrenched in policy discussions but largely missing from mainstream economic curriculums. This article argues that environmental externalities, climate change, and constraints on natural resources will constantly and deeply affect humankind’s future. The teaching of economics, especially growth economics, should stop ignoring them.
In their volume "The Globalization of Natural Gas Markets: New Challenges and Opportunities for Europe", Manfred Hafner and Simone Tagliapietra provide a comprehensive analysis of the challenges and opportunities of the global gas industry, with the aim to provide a clear snapshot of a market characterized by growing uncertainty and volatility.
In short interviews granted during the recent FEEM Gas Talks held in Milan on November 5-6, 2013, leading energy experts debate on European gas demand and supply and on the future of gas pricing and European gas governance, shedding light on a market characterized by growing uncertainty and volatility.
The path towards sustainability needs a deep cultural change, starting with the education of responsible citizens. In her recent book “Towards a Sustainable University” Chiara Mio describes a strategic and organizational sustainability approach in the context of universities, both from an academic literature perspective and from a real case example.
The last COP19/CMP9 United Nations Climate Change Conference was held in Warsaw, Poland on 11-22 November 2013. Re3 publishes a 4-minute interview with key experts to understand the goals and main results of the meeting.
Capital-based policies are more politically acceptable than a carbon price as they do not create immediate losers. However, they reduce emissions slower and need to be implemented sooner. Delaying their implementation may create a political-economy lock-in (easier-to-implement policies become unavailable) and an economic lock-in (the target becomes more expensive).
The "Methodologies and Indicators for Green Growth measurement" conference of November 12, 2013 assessed the state of the art in quantitative measurement of sustainability, and presented the updated findings of the FEEM SI Index 2013. Re3 hosts the interviews with the keynote speakers, their presentations and the video of the event.
The article focuses on the rise of a model of citizenship based on responsibility and awareness of emerging challenges. Citizens and firms become partners of a commitment aimed to generate a positive impact on society, and to transform the model of Business Sustainability into an innovative and modern paradigm.
After the Rio+20 UN Conference in 2012, the debate on sustainable development has focused on monitoring the progress in wellbeing, paving the way for the transition from Millennium Development Goals to Sustainable Development Goals. Re3 hosts the most updated findings of FEEM’s Sustainability Index disclosed officially on November 12 2013.
One year after Sandy hit New York, Anthony Bigio, George Washington University and IPCC Lead Author Working Group III, focuses on the key concepts of urban risks, climate change and resilience. Re3 publishes a synthesis of his keynote address delivered at the 2013 FEEM and CMCC convention.
What is the role of non-CO2 emissions in climate change mitigation efforts? This article aims at a quantitative assessment of the extension of the European Emissions Trading System (ETS) to allow for the exchange of permits for non-CO2 greenhouse gases emissions and at evaluating its impact on policy costs and the composition of output.
How are different consumption activities structured within the Czech society, and what effects do they have on the environment? This new volume by Milan Scasny, Jan Urban and Iva Zverinova proposes examples of policy measures and tools aimed at reducing the adverse environmental effects of residential consumption behaviours.
The European energy infrastructure is ageing and, in its current state, is not suited to match future demand for energy, to ensure security of supply or to support large-scale deployment of energy from renewable sources. This article explores innovative tools to promote private sector financing of energy infrastructure projects.
The publication of the Fifth Assessment Report of the Intergovernmental Panel on Climate Change marks a key event in the international debate on climate change. The Summary for Policymakers in the first part of the Report (Working Group I contribution), focused on the physical science basis of climate change, has been released today, Sept. 27 2013.
Re3 is pleased to publish the interviews with the winners of the FEEM Award conferred during the 2013 European Economic Association Congress at the University of Gothenburg, Sweden: Jonathan Colmer and Michele Piffer, London School of Economics, and Rosen Valchev, Duke University, with links to the papers and motivations for the prize.
The article describes a method for projecting coastal zone flood damage with climate change. The method links current flood damage estimates from climate impacts with changes in parameters from climate scenarios to produce estimates of future damages from climate change.
Every year natural disasters affect the lives of people in both rich and poor countries. This article investigates the link between development, economic growth, and the economic losses from natural hazards, underlining the need for crisis management and post-disaster support schemes, especially at an international level, to increase resilience.
The 2013 edition of the International Energy Workshop was held in Paris on June 19–21. In their interviews to Re3, keynote speakers Carlo Carraro, Jos Delbeke, David Hobbs, Jiang Kejun, Leena Srivastava and Jorge Vasconcelos discuss the challenges related to the intertwined issues of energy, climate and economic growth.
Concern over access to resources is high in EU political consciousness, given recent political instability and resource nationalism in resource-rich nations. The article offers an overview of the EU project POLINARES, aimed at identifying the challenges related to competition for access to resources, and at proposing approaches to collaborative solutions.
Given the stalemate of international climate change negotiations, a partial agreement, with only a subset of countries ratifying a treaty, is evaluated. The results indicate that a partial agreement with open membership is able to engage the major developing economies in mitigation actions and to relieve welfare losses of the signatory regions.
As the human population grows, natural habitats are exposed to conversion. While clearing land to develop it may lead to the reduction of environmental services, conserving it has an opportunity cost in terms of foregone profits from economic activities. This article investigates land conversion by studying conversion dynamics under different policy scenarios.
Following the International Conference on “Oil Price Forecasts and Trends” organized by FEEM on May 23-24, 2013, Re3 interviews energy experts Bahattin Buyuksahin, Leo Drollas, John Elder, Wincenty Kaminski, Charles F. Mason and James Smith on the key issues of oil price forecasts and international energy markets.
Can drought-induced threats be turned into adaptation opportunities? This article analyses the unexpected vulnerabilities revealed by a long-lasting period of drought events across the Po river basin district in Italy from 2003 to 2012, and proposes four policy options to reduce the water scarcity and drought risk at river district basin level.
This article looks at vertical and horizontal integration in the English and Welsh water industries, estimating the costs and benefits of breaking up monopolies. The results of the analysis suggest that there is no real reason why water and sewage industries should be integrated.
The European gas industry has experienced an extraordinary success over the last decades. Gas experts from the academia, international organizations and the industry discuss mid- to long-term challenges and opportunities for European gas markets in order to shed light on a market characterized by growing uncertainty and volatility.
BGs are clusters of legally autonomous firms within and across national borders. They represent a lion's share of value added generation in developing and developed economies, yet they are poorly investigated. The article shows how BGs adapt their organization to various institutional environments and how various organization strategies affect performance.
Philosophical literature on climate change explains how to redress climate injustice between generations, but it says little on why we should do so. In this article Furio Cerutti, political philosopher and professor emeritus at the University of Florence, analyses what motivations human beings and state institutions may have for worrying about climate change.
Human-induced temperature increase is amplified in the Arctic, as well as its effects on the ice cover. With the aid of an Arctic "death spiral”, Prof. Peter Wadhams, oceanographer and glaciologist at Cambridge University, discusses scientific evidence and his personal experience of changes in the Arctic in the last decades.
Smoking, like many health-related behaviors, has "social" aspects. This article discusses how accounting for the external effects of smoking (second-hand smoke) and concern for the health of relatives and friends can shed light on recent trends in smoking behavior and possibly suggest anti-smoking policies in view of the intrinsic network effects.
Would universal access to modern sources of energy like electricity and clean cooking fuels significantly increase CO2 emissions? This article briefly describes a methodology for the formal assessment of this issue by means of a model of current and future energy consumption.
Climate geoengineering, i.e. the deliberate reduction of incoming solar radiation, is receiving increased interest as an alternative or complementary climate strategy to reduce greenhouse gas emissions. But can it justify a delay in the abatement effort from an economic point of view, even under optimistic assumptions?
Climate change is still not widely recognized as a burning issue. Despite illusions, climate skepticism is not dead yet but only evolving, shaped in different forms, each with different underlying reasons and meanings. Ottmar Edenhofer, co-chair of IPCC Working Group III, identifies five types of climate skepticisms and one possible pathway to tackle them.
As the world's population and energy consumption increase, more and more natural resources are needed to keep up with its pace of growth. This article describes what international institutions and the EU are doing to pursue an economic growth paradigm that is friendly to the earth’s ecosystem and that can at the same time contribute to poverty alleviation.
In recent years green growth has become a focal point of cooperation between Italy and China, and in the year 2000 the Italian Ministry for the Environment, Land and Sea launched the Sino-Italian Cooperation Program for Environmental Protection with some Chinese institutions and universities. This article describes its achievements and future objectives.
At a time when the world is recovering from the financial crisis and begins to explore new approaches to sustainable development, this article presents China’s sustainable development policy and discusses how financial institutions, and the China Development Bank in particular, can help promote a green economy.
The geographical distribution of African natural gas resources is going through a period of profound change as new gas discoveries in East Africa emerge to reshape the continent's energy landscape. Two countries have already emerged as key-players of this new African natural gas renaissance: Mozambique and Tanzania.
This article analyses the economic system of the Bolzano Province in Italy’s Alto Adige region to understand its relationships with the ecosphere. A model based on Economic Input–Output, combined with Life Cycle Assessment, is used to assess the impacts related to air emissions, energy consumption and waste generation by economic activities.
The first conference of the newly-born Italian Association of Environment and Resource Economists (IAERE) took place in Ferrara last February 8-9, 2013. Professor Marzio Galeotti, Chairman of the Association, describes its main goals and gives a brief overview of the event.
Anil Markandya, Scientific director of the Basque Center for Climate Change, discusses environmental fiscal reform and provides a short overview of his work on some of the main concerns with this reform, such as its effects on competitiveness and feasibility.
Is there a causal relationship between oil prices and autocracy? This article argues the importance of going beyond deterministic formulations to investigate this relationship, and to use the analytical tools provided by the Rentier State Theory to gain a better understanding of the Arab uprisings and their aftermath.
How is the Eastern Mediterranean energy landscape changing? This article provides an overview on new regional developments and proposes a critical discussion of the market opportunities and geopolitical risks related to the potential emergence of a new Eastern Mediterranean Energy Corridor.
"We can no longer use the climate of the past as a guide to design the investments of the future" states Raffaello Cervigini, Lead Economist at The World Bank in this interview granted to Re3. Extreme events are becoming increasingly frequent particularly in Sub Saharan Africa, and it is of utmost importance to raise the quality and effectiveness of investments in key sectors such as agriculture, transport and urban development, in order to ensure their resilience to a changing climate.
Greenhouse gas emissions and their implications for future climate conditions will be shaped by mitigation decisions based on climate projections involving uncertainty. This article investigates the optimal timing of climate policy adoption by focusing on ambiguity in climate damage cost assessments and on the limited time to achieve climate policy targets.
China’s global quest for resources – in particular, oil and natural gas - has received unprecedented worldwide attention. But are the stakes raised unnecessarily high? In this article ZhongXiang Zhang, Distinguished Professor and Chair at Fudan University, China seeks to clarify these points.
Is the German example able to show the path for the decarbonisation of Europe? Andreas Löschel from ZEW starts from analysing the current German renewables energy market, giving some prospects on its likely future development, to then broaden the picture on Europe's desire for decarbonisation.
Money matters, but is that all? This article presents evidence that social incentives can boost productivity in sectors that rely on pro-social behaviour such as health, education, and social care. It argues that this may help explain the growing popularity of Corporate Social Responsibility programmes within firms.
This article investigates the signaling role of environmental policy in promoting, or hindering, the ability of a monopolist to practice entry deterrence, showing that environmental policy can facilitate the incumbent firm’s concealment of information from potential entrants.
IEW N. 2013.01
Water and Sewerage Industries
European Monetary Union
EU Energy Policy
Foreign Direct Investment