Nach oben pdf The spillover effect of domestic climate action

The spillover effect of domestic climate action

The spillover effect of domestic climate action

Policy diffusion happens when a policy adopted by one country is implemented in other countries. The literature on this topic identifies four main drivers of policy diffusion, three of which play an important role in facilitating the spillover effect of domestic climate action. Policy learning is the most common of the drivers and takes places when national or local

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Asset Diversification versus Climate Action

Asset Diversification versus Climate Action

8 Conclusion Our main concern has been the interplay between climate action and financial considerations. Since the market wants to hold diversified asset holdings, the transition towards a low-carbon economy is affected by diversification motives. Diversification and climate action are initially complementary goals, since agents want to decarbonize the economy and hold a balanced port- folio of carbon-free and carbon-intensive assets. At a certain point, however, the two goals become conflicting and a trade-off arises. This is because environmental considerations incen- tivize the economy to further reduce the dirty capital share, but in turn assets holdings become less diversified. Hence, climate policy is frustrated by the need to diversify financial asset hold- ings. Furthermore, it is usually not optimal to fully close down carbon-intensive sectors as they serve as a hedge in the long run and keeping the carbon-intensive sector open in the short run allows a faster build-up of green assets in the short run. The qualitative implications of these effects hold for three common approaches to model the adverse effects of climate change on economic activity, the depreciation rate of capital and the risk of macroeconomic disasters, respectively. Only if the impact of climate change on economic activity is significantly more pronounced than suggested by DICE, is it optimal to close down the carbon-intensive sector. We have also analyzed the dynamics of risk premia and the risk-free rate during the transition towards a low-carbon economy. We show that the existence of potential climate disasters is crucial for finding a significant effect of climate change on asset prices. In the absence of climate disasters, the effect of climate change on asset prices is moderate. From the perspective of policy makers, our findings are challenging. Our results suggest that initially policy makers should be intrinsically motivated to take climate action, simply to reach diversified asset holdings. Only if policy makers want to speed up the process, they must take extra action. Later in the transition process matters change fundamentally. If policy makers wish to incentivize the economy to reduce the carbon-intensive capital stock beyond its fully diversified share, they must counter the effects of diversification.
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Trade and SDG 13: Action on climate change

Trade and SDG 13: Action on climate change

Abstract This paper assesses the interaction of international trade with climate policies, and the influence of trade on the implementation of SDG 13 (climate change). Although international trade contributes directly to GHG emissions, increased trade can help to achieve development goals in a GHG-efficient manner, provided that GHG emissions are correctly priced everywhere. Given that emissions are not universally priced, the paper examines where policies related to trade may be misaligned with or otherwise hindering climate change objectives. While concluding that the multilateral agreements of the World Trade Organization do not generally prevent governments from pursuing strong domestic climate policy, the chapter does identify potential misalignments. These include import tariffs on environmental goods, barriers to trade in services and domestic policies designed to support local low-carbon industry but which are restrictive of international trade and therefore potentially counter-productive. The paper concludes by stressing the importance of building up resilience in the global trade system in the face of increasingly frequent and severe weather-related shocks.
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Corporate Climate Action (2052 KBpdf)

Corporate Climate Action (2052 KBpdf)

When developing a climate strategy, setting a climate target is the core element. Since the UN climate summit in Paris (COP21), the number of internationally active companies engaged in setting an ambitious cli- mate target has risen. The summit marked a watershed moment for cli- mate policy in 2015: With the p  Paris Agreement, industrialized, devel- oping and emerging countries are now, for the very first time, obliged to combat global warming under international law. The agreement, which took effect in 2016, requires 195 countries to limit average global warm- ing to well below 2°C (if possible, to no more than 1.5°C) by the end of the 21st century as compared to the pre-industrial age. Beyond this, the international community has also agreed to aim for net zero GHG emis- sions in the second half of the century. According to the highest-quality scientific research currently available, this means that climate neutral- ity will be reached between 2060 and 2080.
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A Window for Climate Action

A Window for Climate Action

mate change. For social movements to thrive over the long-term, new partici- pants must replace older members. The involvement of youth in such movements (who may have the resource of greater free time) is critical if they are to sur- vive over time[10]. Further, such strate- gies may be better at mobilizing poten- tial resources[11], having the duel effect of activating adherents in the existing en- vironment movements as well as bring- ing in latent bystanders, such as tradi- tional labor organizations and members of the broader public. Within the Ger- man context, the decades-long environ- mental movement appears have been ac- tivated in support of the student protests, along with other interest groups, such as scientists[12] and labor groups[13].
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Violent Behaviour: The effect of civil conflict on domestic violence in Colombia

Violent Behaviour: The effect of civil conflict on domestic violence in Colombia

Both sexes are represented among perpetrators and victims of domestic violence (see, for example, Straus 1993, Karnofsky 2005). The majority of perpetrators are male domestic partners, while most victims are female (e.g., Aizer, 2010). This also is the case that we have to focus on in our analysis due to data limitations. In an unsafe external environment both woman and men feel an increased need for protection. We believe that one important source of protection is the closest social environment, which is the family. If physical violence is commonplace in the geographical vicinity of their homes, we suppose that people show an increased reluctance to leave this protection. Compared to a situation without violent conflict, we therefore assume women to accept and endure more domestic violence than they would in a peaceful external environment. Probably this is even more the case for mothers who have to look after children. The fear of losing access to their children could hinder the former to turn their back on the children’s father. Fear for the children’s physical well-being also makes it difficult for mothers to leave them with their partner if he is a potential threat to the children. In the presence of violent exterior threats it becomes more crucial for the family to persist in order to serve as a protective environment. This function gains in importance as in theclimate of uncertainty, distrust, and polarization” which comes along with violent conflict, “traditional social networks of mutual aid might likewise weaken” (Wood 2008). The traditional role of the man as provider is widely accepted in Colombia. It can come along with a higher threshold of accepted domestic violence compared to other societies, as women may feel dependent (Karnofsky 2005, see also Farmer and Tiefenthaler 1997 on a resource-centred non-cooperative model of domestic violence).
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Market effects of voluntary climate action by firms: Evidence from the Chicago Climate Exchange

Market effects of voluntary climate action by firms: Evidence from the Chicago Climate Exchange

We employ an extension of the Capital Asset Pricing Model (CAPM) to explore firm performance, as measured through excess share returns of US equities. We adjust CCX member returns for overall market risk, as well as for excess returns of indus- try rivals defined on the 4-digit SIC level, and include time dummies to mark discrete events. We find no significant effect of joining CCX, but member firm returns are neg- atively correlated with CCX carbon price changes over time, indicating that increased abatement costs have a negative impact on returns. Importantly, the passing of the Waxman-Markey climate bill led to positive and statistically significant excess returns for CCX member firms, implying that firms who had gained experience in the voluntary were believed to be better prepared for the possibly imminent mandatory market (the mandatory market has in fact not materialized to date).
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Promises and risks of nonstate action in climate and sustainability governance

Promises and risks of nonstate action in climate and sustainability governance

Powerful private, often North-based, actors can define standards in their own economic interests rather than according to long-term and local sustainable development priorities (e.g., Nasiritousi, 2017). In contrast, smaller and less powerful groups, such as domestic NGOs in developing countries, may lack the capacity to fully engage and shape the landscape of nonstate action through agenda setting, consulting in decision-making processes and implementation (Ponte & Chenys, 2013; Scobie, 2016). In developing countries, governance gaps tend to be wider due to fewer resources for sustainable development chal- lenges (Atteridge, 2011). Nonstate actions can still benefit developing countries (Chan, Ellinger, & Widerberg, 2018); how- ever, specific risks need to be recognized, such as the creation of dependencies, the crowding out of public policies, and gaps left once interventions are over. If these risks are not overcome, nonstate action could perpetuate, rather than solve, gover- nance weaknesses in developing countries (e.g., Michalena & Hills, 2018).
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Volatility spillover effect between financial markets: evidence since the reform of the RMB exchange rate mechanism

Volatility spillover effect between financial markets: evidence since the reform of the RMB exchange rate mechanism

(1) During the stage of continued RMB appreciation, the volatility spillover effects be- tween the foreign exchange market and the stock market were bi-directional but asym- metric, with the volatility spillovers from the foreign exchange market to the stock market being more significant than from the stock market to the foreign exchange mar- ket. This phenomenon can be explained by the following points. First, after the exchange rate reform, the expectations of RMB appreciation brought a large number of international speculative capital inflows. Although strict controls are exercised over capital projects, massive international capital inflows that come from an informal pipe- line can exert a large impact on the stock market and cannot be ignored. The input, or the withdrawal, of those funds would inevitably lead to volatility in domestic asset prices, and thus, enhance the stock market’s sensitivity to currency fluctuations. Sec- ond, as our country’s economy is highly dependent on imports and exports, fluctua- tions in the exchange rate will surely affect the operating performance of listed Chinese corporations, especially of the listed companies with high dependence on foreign trade. The quality of the enterprise operating performance would influence the company’s share price and eventually led to increased sensitivity in the stock market to exchange rate fluctuations. Furthermore, the implementation of the current managed floating ex- change rate regime and the strict control over capital accounts may, to some extent, have limited the exchange of stock market information with the foreign exchange market, thereby weakening the volatility spillover effects from the stock market to the foreign exchange market. For all reasons stated, we can explain why the spillover effect of the foreign exchange market was more prominent than the spillover effect of the stock market.
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The spillover effect of outward foreign direct investment on home countries: Evidence from the United States

The spillover effect of outward foreign direct investment on home countries: Evidence from the United States

abroad on its domestic employment and capital investment. 1 The possibility that outward FDI may generate positive spillovers to other domestic firms not related to the MNC has been largely ignored. But these indirect benefits could potentially be larger than any benefit or cost to own country domestic subsidiaries of MNCs. Recent changes in the UK and Japan that removed home country taxation of foreign active earnings abroad of domestic MNCs likely reflect the view that outward FDI generates both direct and indirect benefits. In this paper, we attempt to measure spillovers of outward FDI in an attempt to both better understand the impact of investment abroad on home countries and inform the debate over appropriate government policy towards MNCs. If outward FDI generates significant direct and indirect positive externalities at home, a case may exist for subsidizing the foreign activities of home country MNCs.
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Efficiency in Domestic Space Heating: An Estimation of the Direct Rebound Effect for Domestic Heating in the U.S.

Efficiency in Domestic Space Heating: An Estimation of the Direct Rebound Effect for Domestic Heating in the U.S.

1 Introduction Improvements in energy efficiency have been argued to be a double-edged sword with respect to energy savings and reductions in greenhouse gas emissions. On the one hand, they enable households to attain the same level of services using less energy and thus provide substantial scope for energy savings (Dietz et al., 2009; Stern, 2014). At the same time, however, they decrease these services’ relative costs stimulating households to increase their demand. As a result potential energy savings are partially or completely offset. For instance, households obtaining a more efficient heating system may react by increasing thermostat settings or heating larger parts of their dwelling, thereby using up (some of) the energy savings gained by installing the more efficient heating system. This phenomenon, known as the ‘rebound’ or ‘take-back’ effect (Khazzoom, 1980; Brookes, 1990; Berkhout et al., 2000; Greening et al., 2000), has direct implications for policy making as it determines whether policies aiming to decrease energy use by targeting energy efficiency are likely to meet their objectives. The higher the degree of ‘take- back’, the less effective energy efficiency policies are in curbing energy use and combatting climate change (Brookes, 1990). For this reason, the rebound effect has sparked widespread interest and considerable concern in academia and politics (Turner, 2013).
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India's Turn in Climate Policy: Assessing the Interplay of Domestic and International Policy Change

India's Turn in Climate Policy: Assessing the Interplay of Domestic and International Policy Change

A part of the international puzzle is also explained by the fact that India did not promise  too much in announcing its willingness to reduce the emission intensity of growth by 20 to  25 percent by 2020 during and after the Copenhagen summit. If actual growth rates in India  can be maintained, this would nevertheless imply that total emissions will double by 2020  and triple by 2035 (Rai and Victor 2009; IEA 2011). The aforementioned 20–25 percent target  can be reached if all the various departments and ministries simply continue their business‐ as‐usual strategies (Dutt 2010). If, however, the efficiency of power plants and fuel consump‐ tion of vehicles in India rises to the international average, if transmission losses can be cur‐ tailed to the best practice of Indian states, if the share of public transport is increased and  some  other  (cost‐efficient)  measures  implying  no  international  transfer  of  technologies  are  implemented, emissions from India could be cut by 35 percent, according to the calculations  of the government (Government of India 2007). So it would also have been possible to prom‐ ise  more  in  Copenhagen  and  afterwards  without  sacrificing  growth  unduly.  The  gap  be‐ tween  international  commitments  and  domestic  capabilities  can  also  be  demonstrated  by  first  looking  at  the  historical  development  of  emission  intensity  in  India:  it  did  decline  by  17.6 percent from 1990 to 2005 without any special action program operating. If this ratio of  emissions to growth is maintained, the emission intensity will decline by a further 17.3 percent  by 2020 over the 2005 base (Planning Commission 2011a). Similarly, if only modest efforts are  made  to  increase  the  energy  efficiency  of  industrial  production,  household  appliances,  and  waste management, the emission intensity can be reduced by 25 percent by 2010 and by 35  percent  if  more  aggressive  efforts  are  taken  (Planning  Commission  2011b)  –  efforts  whose  scope and depth were termed still rather unambitious by independent observers (CSE 2011).  
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Luring Others into Climate Action: Coalition Formation Games with Threshold and Spillover Effects

Luring Others into Climate Action: Coalition Formation Games with Threshold and Spillover Effects

How did the fringe respond to the increasingly larger leading group in T2 and T4? Is the leading by example effect prevailing, or is it free riding? Alternatively, it may be that the two effects largely balance each other out, as laid out in our third conjecture. In our experimental sample, when the innovation benefits are low, the two effects cancel each other out: the coalition is larger in T2 with respect to T1, but there is no statistical difference in either the overall investment in Project A, nor in the failure rate in avoiding the tipping point. However, conjecture three is not confirmed when looking at larger benefits from innovation (T4). Under T4, the incentives to participate in a voluntary coalition are highest, and the subjects responded by signing up to it more frequently than in other treatments: the average number of participants increases to four out of seven. The implication of a larger coalition is that the leadership effect prevails over the free riding effect. Both the total investment in Project A and, more interestingly, the average fringe investment are significantly lower in T4 than in T2. This suggests that for leadership to be effective a critical mass is necessary. The resulting implication is that, overall, threshold crossing is significantly lower in T4 compared to any of the other treatments investigated so far (T0, T1 and T2).
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The Spillover Effects of Affirmative Action on Competitiveness and Unethical Behavior

The Spillover Effects of Affirmative Action on Competitiveness and Unethical Behavior

The second spillover effect investigated is the possible spiteful behavior by people from the category who did not benefit from Affirmative Action towards people from the other category. Indeed, if Affirmative Action is perceived by this category as unfair (for example because they fear that more able individuals from their own group are passed over in competitions by less able individuals from the other group), it may generate spite against the members of the category benefiting from the policy. Indeed, feelings of injustice have been shown to lead to sabotage (e.g., Ambrose et al., 2002; Leibrandt et al., 2015). The policy may also lead some subjects to take an opportunity to cheat to compensate for the possible disadvantage introduced by Affirmative Action. On the beneficiary category’s side, two opposite effects may be observed. If Affirmative Action interventions reinforce competitiveness, a feeling of entitlement may increase moral flexibility. 2 If it also reinforces group identity (e.g., Akerlof and Kranton, 2000; Chen and Li, 2009), it may increase hostility against out-groups. On the other hand, the policy may weaken the initial group identity and lead the beneficiary category to feel more like people from the other category.
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The Politics of Market Linkage: Linking Domestic Climate Policies with International Political Economy

The Politics of Market Linkage: Linking Domestic Climate Policies with International Political Economy

The purpose of an international agreement is to provide incentives for collective action by curbing free-riding. It may therefore appear paradoxical, that nations are so averse to a climate treaty but have begun to adopt policies to address climate change unilaterally. These include cap-and-trade systems, carbon taxes, commitments to reducing energy intensity, forest codes to combat deforestation, and a host of policies aimed at improving energy efficiency, and developing and deploying renewable energy sources. Cap-and-trade systems, in particular, are becoming increasingly prevalent. The European Union’s Emissions Trading Scheme (EU-ETS) is the largest such market, but other markets include Australia, New Zealand, California, Canadian provinces, and the Regional Greenhouse Gas Initiative (RGGI) in the Northeast of the United States. Soon South Korea will launch a national trading system, and others—most significantly, some Chinese cities and provinces—are poised to follow (GLOBE International, 2014; IETA 2012; Grubb 2013). All told, 10% of the world’s population and 35% of the world’s GDP is regulated by some form of domestic or regional cap-and-trade system today. 2
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Climate policies with private information: The case for unilateral action

Climate policies with private information: The case for unilateral action

In the third part of the paper, we show that the principal may have a further motive for unilateral action; this time after the contract has been signed. A crucial aspect in which the application of the principal-agent model to climate change di¤ers from standard applications is the presence of multilateral externalities. This enables the principal to use not only the usual instrument of subsidies to incentivize the agent, but also her own emissions. Speci…cally, the principal distorts her emissions upwards – as compared to the e¢ cient solution – in order to make it less attractive for agents with a high WTP for abatement and/or with low abatement costs to misrepresent their type. Often this leads to emissions of the principal that even exceed their out-of-contract level, which implies marginal abatement cost below her marginal WTP for abatement. Therefore, the principal has an incentive to overful…ll the terms of the contract, i.e. to undertake unilateral action. Importantly, this action does not depend on the fact that the agent has revealed his type through the contract, but simply arises from the principal’s comparison of her own marginal abatement and damage costs.
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Time to take a turn: climate action in the transport sector

Time to take a turn: climate action in the transport sector

dal has only made timelier. International trends are also challenging the automotive sector. China’s announce- ment to have 10 % electric cars in new sales starting in 2019 forces German carmakers to take action. At the same time, it is clear that technological developments as digitalization – especially driverless cars – will funda- mentally change the mobility landscape. An innovative and sustainable transport policy is thus not only crucial in terms of environmental and climate policy, but also a central condition for the future competitiveness of Ger- man industry. At the same time, the public has to accept change in an area that directly affects the daily lives of so many people. Politicians therefore have to plan the impending transformation of the transport sector in a dialogue with all stakeholders – and then courageously implement it.
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The spillover effect of CSR initiatives on consumer attitude and purchase intent: The role of customer-company identification with the moderating effect of awareness

The spillover effect of CSR initiatives on consumer attitude and purchase intent: The role of customer-company identification with the moderating effect of awareness

Several studies have tested the impact of CSR on customer attitude and behavior but there have been conflicting results. For example, Berger, Cunningham and Kozinets (1999) found that company’s promise to engage in philanthropy led to positive consumer attitudes towards the company’s message but it did not show any impact on purchase intention. In contrary, Lafferty and Edmondson (2013) found no differences in consumer responses to advertisements that demonstrated philanthropic intentions as compared to advertisements which had no such information. Sponsorship is an element of corporate communication and has become a main element in marketing (Polonsky and Speed, 2001). By means of attribution theory, Rifon et al. (2004) give a cognitive explanation of sponsorship effects. Results show that a good fit between a corporation and the cause it sponsors creates consumer attributions of philanthropic sponsor motives and enriches attitude toward the sponsor.
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The Compromise Effect in Action: Lessons from a Restaurant's Menu

The Compromise Effect in Action: Lessons from a Restaurant's Menu

1 Simonson and Tversky (1992) argue that it may be due to extremeness aversion: Unlike extreme options, compromise options  such as options w and y in Figure 1 when the choice set is {v, w, x, y, z}  have no large disadvantages. When disadvantages are weighted more than advantages (as under loss aversion), this feature makes compromises attractive. Tversky and Simonson (1993) derive the compromise eect from a simple utility framework that exhibits two non-standard features, background and choice set eects. Background (e.g., previous exposure to other choice sets) inuences the weight of each dimension in the utility function; the choice set inuences the valuation of an option through pairwise comparisons of this option with the alternatives in the choice set. Kivetz et al. (2004a) build four context-dependent choice models, which they estimate and test using experimental data. In particular, they show that these models can better explain the data than traditional choice models that are derived from value maximization. Kivetz et al. (2004b) discuss to what extent their models can be extended to more complex environments, such as group decisions or the purchase of complex products. De Clippel and Eliaz (2012) construct a multiple selves model in which both the compromise and the attraction eect occur as a solution of a bargaining game between dierent selves, which represent the dierent quality dimensions. There is also a growing literature on non-standard choice theory that captures empirically relevant phenomena related to the compromise eect. Masatlioglu and Ok (2005) extend rational choice theory by a status quo bias. Rubinstein and Salant (2006) analyze rational choice from lists (rather than sets) where the order of presentation potentially matters for decisions. Manzini and Mariotti (2007) and Apesteguia and Bellester (2013) examine multi-stage decision processes that can rationalize choices that violate the axiom of independence of irrelevant alternatives. In Ehlers and Sprumont (2008) and Lombardi (2008) choices are modeled as the outcome of a tournament, and thus may be cyclic (a fact known as the Condorcet paradox). Salant and Rubinstein (2008) study choice functions that depend on the framing of the problem.
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The Compromise Effect in Action: Lessons from a Restaurant's Menu

The Compromise Effect in Action: Lessons from a Restaurant's Menu

We also contribute to a growing literature that documents biased consumption choices using eld data and eld experiments. 2 Doyle et al. (1999) use sales data from a grocery store to show that the attraction eect also occurs in a natural environment (the attraction eect refers to an increase in the market share of an option when an alternative becomes available which is strictly dominated by that option, but not by the other options in the original choice set). Iyengar and Lepper (2000) expose shoppers in a grocery store to either limited choice sets (with 6 options) or extensive choice sets (with 24 options). They demonstrate that the availability of too many options discourages choice (choice overload hypothesis): Customers in the limited choice set condition were much more likely to actually buy a product than customers in the extensive choice set condition. DellaVigna and Malmendier (2006) analyze the customers' contract choice and attendance at three health clubs. For a large share of customers a per-visit option would be optimal, given their realized attendance. Nevertheless, many of them purchase costly long-term contracts, which implies a monetary loss. The authors show that these customers on average overestimate future attendance when signing the contract. Abeler and Marklein (2015) randomly distribute cash grants and in-kind grants (vouchers
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