Feel the Heat
Climate Change, Mortality, and Adaptation: Evidence from Annual Fluctuations in Weather in the US
Olivier Deschênes & Michael Greenstone
American Economic Journal: Applied Economics, October 2011, Pages 152-185
Abstract:
Using random year-to-year variation in temperature, we document the relationship between daily temperatures and annual mortality rates and daily temperatures and annual residential energy consumption. Both relationships exhibit nonlinearities, with significant increases at the extremes of the temperature distribution. The application of these results to "business as usual" climate predictions indicates that by the end of the century climate change will lead to increases of 3 percent in the age-adjusted mortality rate and 11 percent in annual residential energy consumption. These estimates likely overstate the long-run costs, because climate change will unfold gradually allowing individuals to engage in a wider set of adaptations.
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The causality analysis of climate change and large-scale human crisis
David Zhang et al.
Proceedings of the National Academy of Sciences, 18 October 2011, Pages 17296-17301
Abstract:
Recent studies have shown strong temporal correlations between past climate changes and societal crises. However, the specific causal mechanisms underlying this relation have not been addressed. We explored quantitative responses of 14 fine-grained agro-ecological, socioeconomic, and demographic variables to climate fluctuations from A.D. 1500-1800 in Europe. Results show that cooling from A.D. 1560-1660 caused successive agro-ecological, socioeconomic, and demographic catastrophes, leading to the General Crisis of the Seventeenth Century. We identified a set of causal linkages between climate change and human crisis. Using temperature data and climate-driven economic variables, we simulated the alternation of defined "golden" and "dark" ages in Europe and the Northern Hemisphere during the past millennium. Our findings indicate that climate change was the ultimate cause, and climate-driven economic downturn was the direct cause, of large-scale human crises in preindustrial Europe and the Northern Hemisphere.
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Regulating knowledge monopolies: The case of the IPCC
Richard Tol
Climatic Change, October 2011, Pages 827-839
Abstract:
The Intergovernmental Panel on Climate Change has a monopoly on the provision of climate policy advice at the international level and a strong market position in national policy advice. This may have been the intention of the founders of the IPCC. I argue that the IPCC has a natural monopoly, as a new entrant would have to invest time and effort over a longer period to perhaps match the reputation, trust, goodwill, and network of the IPCC. The IPCC is a not-for-profit organization, and it is run by nominal volunteers. It therefore cannot engage in the price-gouging that is typical of monopolies. However, the IPCC has certainly taken up tasks outside its mandate. The IPCC has been accused of haughtiness. Innovation is slow. Quality may have declined. And the IPCC may have used its power to hinder competitors. There are all things that monopolies tend to do, against the public interest. The IPCC would perform better if it were regulated by an independent body which audits the IPCC procedures and assesses its performance; if outside organizations would be allowed to bid for the production of reports and the provision of services under the IPCC brand; and if policy makers would encourage potential competitors to the IPCC.
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Sea level projections to AD2500 with a new generation of climate change scenarios
S. Jevrejeva, J.C. Moore & A. Grinsted
Global and Planetary Change, forthcoming
Abstract:
Sea level rise over the coming centuries is perhaps the most damaging side of rising temperature (Anthoff et al, 2009). The economic costs and social consequences of coastal flooding and forced migration will probably be one of the dominant impacts of global warming (Sugiyama et al, 2008). To date, however, few studies (Anthoff et al, 2009; Nicholls et al, 2008) on infrastructure and socio-economic planning include provision for multi-century and multi-meter rises in mean sea level. Here we use a physically plausible sea level model constrained by observations, and forced with four new Representative Concentration Pathways (RCP) radiative forcing scenarios (Moss et al, 2010) to project median sea level rises of 0.57 for the lowest forcing and 1.10 m for the highest forcing by 2100 which rise to 1.84 and 5.49 m respectively by 2500. Sea level will continue to rise for several centuries even after stabilization of radiative forcing with most of the rise after 2100 due to the long response time of sea level. The rate of sea level rise would be positive for centuries, requiring 200-400 years to drop to the 1.8 mm/yr 20th century average, except for the RCP3PD which would rely on geoengineering.
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Evidence linking solar variability with US hurricanes
Robert Hodges & James Elsner
International Journal of Climatology, 15 November 2011, Pages 1897-1907
Abstract:
The relationship between US hurricanes and solar activity is investigated empirically. First, a relationship between the probability of a US hurricane and the solar cycle is shown conditional on sea surface temperatures (SST). For years of above normal SST, the probability of three or more US hurricanes decreases from 40 to 20% as sunspot numbers (SSN) increase from lower to upper quartile amounts. Second, since SST is in phase with the 11-year total solar irradiance cycle but upper-air temperature is in phase with ultraviolet radiation changes on the monthly time scale, an anomaly index of SSN is constructed. The index is significantly correlated with US hurricanes and major US hurricanes over the period 1866-2008. The chances of at least one hurricane affecting the United States in the lowest and highest SSN anomaly seasons are 68 and 91%, respectively. A similar relationship is noted using hurricane records spanning the period 1749-1850, providing independent corroborating evidence linking solar variability to the probability of a US hurricane.
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Sources of knowledge and ignorance in climate research
James Risbey & Terence O'Kane
Climatic Change, October 2011, Pages 755-773
Abstract:
Ignorance is an inevitable component of climate change research, and yet it has not been specifically catered for in standard uncertainty guidance documents for climate assessments. Reports of ignorance in understanding require context to explain how such ignorance does and does not affect understanding more generally. The focus of this article is on dynamical sources of ignorance in regional climate change projections. A key source of ignorance in the projections is the resolution-limited treatment of dynamical instabilities in the ocean component of coupled climate models. A consequence of this limitation is that it is very difficult to quantify uncertainty in regional projections of climate variables that depend critically upon the details of the atmospheric flow. The standard methods for quantifying or reducing uncertainty in regional projections are predicated on the models capturing and representing the key dynamical instabilities, which is doubtful for present coupled models. This limitation does not apply to all regional projections, nor does it apply to the fundamental findings of greenhouse climate change. Much of what is known is not highly flow-dependent and follows from well grounded radiative physics and thermodynamic principles. The growing field of applications of regional climate projections would benefit from a more critical appraisal of ignorance in these projections.
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The Reverse Environmental Gender Gap in China: Evidence from "The China Survey"
Todd Shields & Ka Zeng
Social Science Quarterly, forthcoming
Objectives: This article explores gender differences in attitudes about the seriousness of the environment as a problem in China using the "2008 China Survey."
Methods: We use generalized ordered logit models to analyze survey respondents' environmental attitudes.
Results: Our results indicate that there is indeed a "gender gap" in environmental attitudes in China, but the pattern is reversed from what has been generally found in previous work conducted in the United States and Europe. Chinese men, not women, show a greater concern about environmental problems and the seriousness of the environmental degradation in China. Further, we find that this gender gap is based largely in the substantial economic and educational differences between men and women in contemporary China.
Conclusions: This study emphasizes the mediating influence of socioeconomic variables in explaining gender attitudes toward the environment in China. Our findings suggest that in different contexts, women may be faced with difficult decisions between immediate economic necessities and long-term environmental concerns. The observed environmental gender gap in China will likely persist unless further economic development results in improved access to education and economic conditions for Chinese women.
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Welfare Impacts of Alternative Biofuel and Energy Policies
Jingbo Cui et al.
American Journal of Agricultural Economics, October 2011, Pages 1235-1256
Abstract:
An open-economy equilibrium model is derived to investigate the effects of energy policy on the U.S. economy, with emphasis on corn-based ethanol. A second best policy of a fuel tax and ethanol subsidy is found to approximate fairly closely the welfare gains associated with the first best policy of an optimal carbon tax and tariffs on traded goods. The largest economic gains to the U.S. economy from these energy policies arise from their impact on U.S. terms of trade, particularly in the oil market. Conditional on the current fuel tax, an optimal ethanol mandate is superior to an optimal ethanol subsidy.
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Temperature oscillations may shorten male lifespan via natural selection in utero
Ralph Catalano et al.
Climatic Change, forthcoming
Abstract:
Much literature argues that natural selection has conserved mechanisms that spontaneously abort fetuses, particularly males, least likely to survive in prevailing environmental conditions including cold ambient temperature. These reports imply the hypothesis that males in gestation during relatively warm periods who confront relatively cold climates in early life live, on average, shorter lives than other males. We estimate the effect of warm-to-cold temperature shifts on the observed lifespan at age one of males born in Sweden from 1850 through 1915. We test this hypothesis using annual cohort lifespan at age 1 year for Swedish males from 1850 to 1915. For our independent variable, we score a series "1" for birth cohorts that experienced relatively warm temperatures in utero but relatively cold temperatures from age 1 through 4 years, and "0" for other cohorts. We use time-series methods, which adjust the data to remove autocorrelation, to estimate the association between these variables. Consistent with theory, males in gestation during relatively warm times who encounter relatively cold temperatures in early life have a shorter lifespan than other males. The association survives adjustment for the longevity of females as well as the main effect of temperatures during gestation and early life. Our findings imply that the increased frequency and amplitude of temperature shifts expected from climate change could influence which humans survive gestation and how long they live.
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What Role for Trade in a Post 2012 Global Climate Policy Regime
John Whalley
NBER Working Paper, October 2011
Abstract:
This paper discusses the role that trade can potentially play in both negotiating and operating a post Kyoto/post 2012 global climate policy regime. As an addition to the bargaining set for a global climate negotiation, trade in principle widens the range of jointly beneficial potential outcomes and can in this sense be a potential facilitator of an agreed global climate regime. The reverse is also true, that in a linked climate-trade-finance global policy coordination structure that goes well beyond what was envisioned at Bretton Woods, climate now added to the global policy bargaining set also offers the prospect of potentially stronger trade disciplines (and even beyond WTO disciplines being negotiated). Trade policy can as well be an instrument for the implementation of a global climate regime, since trade provides a mechanism for achieving an internalization outcome for the global externality that climate change represents, and that provides a potentially more efficient outcome and also helps meet distributional objectives. In short, trade added to the emerging post 2012 climate regime can both expand the bargaining set for both (effectively linked) negotiations, and additionally provide an instrument for the implementation of an agreed outcome.
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The supply chain of CO2 emissions
Steven Davis, Glen Peters & Ken Caldeira
Proceedings of the National Academy of Sciences, forthcoming
Abstract:
CO2 emissions from the burning of fossil fuels are conventionally attributed to the country where the emissions are produced (i.e., where the fuels are burned). However, these production-based accounts represent a single point in the value chain of fossil fuels, which may have been extracted elsewhere and may be used to provide goods or services to consumers elsewhere. We present a consistent set of carbon inventories that spans the full supply chain of global CO2 emissions, finding that 10.2 billion tons CO2 or 37% of global emissions are from fossil fuels traded internationally and an additional 6.4 billion tons CO2 or 23% of global emissions are embodied in traded goods. Our results reveal vulnerabilities and benefits related to current patterns of energy use that are relevant to climate and energy policy. In particular, if a consistent and unavoidable price were imposed on CO2 emissions somewhere along the supply chain, then all of the parties along the supply chain would seek to impose that price to generate revenue from taxes collected or permits sold. The geographical concentration of carbon-based fuels and relatively small number of parties involved in extracting and refining those fuels suggest that regulation at the wellhead, mine mouth, or refinery might minimize transaction costs as well as opportunities for leakage.
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Demand for gasoline is more price-inelastic than commonly thought
Tomas Havranek, Zuzana Irsova & Karel Janda
Energy Economics, forthcoming
Abstract:
One of the most frequently examined statistical relationships in energy economics has been the price elasticity of gasoline demand. We conduct a quantitative survey of the estimates of elasticity reported for various countries around the world. Our meta-analysis indicates that the literature suffers from publication selection bias: insignificant or positive estimates of the price elasticity are rarely reported, although implausibly large negative estimates are reported regularly. In consequence, the average published estimates of both short- and long-run elasticities are exaggerated twofold. Using mixed-effects multilevel meta-regression, we show that after correction for publication bias the average long-run elasticity reaches - 0.31 and the average short-run elasticity only - 0.09.
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Trends in indices for extremes in daily temperature and precipitation over Utah, USA
Carlos dos Santos et al.
International Journal of Climatology, October 2011, Pages 1813-1822
Abstract:
The main objective of this study was to analyse the trends in 20 annual extreme indices of temperature and precipitation for Utah, USA. The analyses were conducted for 28 meteorological stations, during the period from 1930 to 2006, characterized by a long-term and high-quality dataset. The software used to process the data was the RClimdex 1.0. The analyses of extreme temperature indices have identified an increase in air temperature in Utah during the last century. Meanwhile, the analyses of precipitation indices showed a large variation throughout the studied area and time period, and, in general, with few statistically significant trends. Thus, it was not possible to conclude that significant changes in precipitation have occurred in this region over the last century.
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The Economic Returns to U.S. Public Agricultural Research
Julian Alston et al.
American Journal of Agricultural Economics, October 2011, Pages 1257-1277
Abstract:
We use newly constructed state-specific data to explore the implications of common modeling choices for measures of research returns. Our results indicate that state-to-state spillover effects are important, that the research and development lag is longer than many studies have allowed, and that misspecification can give rise to significant biases. Across states, the average of the own-state benefit-cost ratios is 21:1, or 32:1 when the spillover benefits to other states are included. These ratios correspond to real internal rates of return of 9% or 10% per annum, much smaller than those typically reported in the literature, partly because we have corrected for a methodological flaw in computing rates of return.
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Residential consumption of gas and electricity in the U.S.: The role of prices and income
Anna Alberini, Will Gans & Daniel Velez-Lopez
Energy Economics, September 2011, Pages 870-881
Abstract:
We study the residential demand for electricity and gas, working with nationwide household-level data that cover recent years, namely 1997-2007. Our dataset is a mixed panel/multi-year cross-sections of dwellings/households in the 50 largest metropolitan areas in the United States as of 2008. We estimate static and dynamic models of electricity and gas demand. We find strong household response to energy prices, both in the short and long term. From the static models, we get estimates of the own price elasticity of electricity demand in the - 0.860 to - 0.667 range, while the own price elasticity of gas demand is - 0.693 to - 0.566. These results are robust to a variety of checks. Contrary to earlier literature (Metcalf and Hassett, 1999; Reiss and White, 2005), we find no evidence of significantly different elasticities across households with electric and gas heat. The price elasticity of electricity demand declines with income, but the magnitude of this effect is small. These results are in sharp contrast to much of the literature on residential energy consumption in the United States, and with the figures used in current government agency practice. Our results suggest that there might be greater potential for policies which affect energy price than may have been previously appreciated.
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Valuation of plug-in vehicle life-cycle air emissions and oil displacement benefits
Jeremy Michalek et al.
Proceedings of the National Academy of Sciences, 4 October 2011, Pages 16554-16558
Abstract:
We assess the economic value of life-cycle air emissions and oil consumption from conventional vehicles, hybrid-electric vehicles (HEVs), plug-in hybrid-electric vehicles (PHEVs), and battery electric vehicles in the US. We find that plug-in vehicles may reduce or increase externality costs relative to grid-independent HEVs, depending largely on greenhouse gas and SO2 emissions produced during vehicle charging and battery manufacturing. However, even if future marginal damages from emissions of battery and electricity production drop dramatically, the damage reduction potential of plug-in vehicles remains small compared to ownership cost. As such, to offer a socially efficient approach to emissions and oil consumption reduction, lifetime cost of plug-in vehicles must be competitive with HEVs. Current subsidies intended to encourage sales of plug-in vehicles with large capacity battery packs exceed our externality estimates considerably, and taxes that optimally correct for externality damages would not close the gap in ownership cost. In contrast, HEVs and PHEVs with small battery packs reduce externality damages at low (or no) additional cost over their lifetime. Although large battery packs allow vehicles to travel longer distances using electricity instead of gasoline, large packs are more expensive, heavier, and more emissions intensive to produce, with lower utilization factors, greater charging infrastructure requirements, and life-cycle implications that are more sensitive to uncertain, time-sensitive, and location-specific factors. To reduce air emission and oil dependency impacts from passenger vehicles, strategies to promote adoption of HEVs and PHEVs with small battery packs offer more social benefits per dollar spent.
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Woodsy the optimal owl: Environmental campaigns, norms, and implications for public goods policy
Matthew Interis & Timothy Haab
Ecological Economics, 15 October 2011, Pages 2327-2333
Abstract:
Norms regarding private provision of a public good (e.g. cutting down on energy use, not littering) can affect the marginal gains from contributing to a public good and therefore people's decisions about contributing to the public good. A model is proposed in which norms of private contributions to a public good can be influenced by public policy, and these norms affect people's self-image, which derives from a comparison of one's own contribution with the norm contribution. In this context, we examine the conditions under which private contributions to a public good are efficient, and the conditions under which policy affecting these norms improves social welfare. We find that (1) a benevolent social planner who fails to account for private provision norms will underprovide the public good, and (2) public policy that attempts to raise the norm contribution of private provision can increase social welfare if the effect of raising the norm does not have an extreme negative effect - either extremely small or extremely large - on peoples' self-image.