Viewpoint: Regulating meat consumption to improve health,the environment and animal welfare

Meat consumption has increased significantly in the last 50 years. This trend raises various health and environmental issues, as well as moral concerns regarding farm animal welfare. In this paper, we discuss the regulation of meat consumption in developed countries. Specifically, we discuss possible justifications for this regulation in terms of environmental, health and animal welfare considerations, as well as the effect of fiscal, informational and behavioral regulatory instruments. Finally, we present a list of challenges that policy makers and food scholars may need to confront in the future.     

Farming systems and Conservation Agriculture: Technology,structures and agency in Malawi

Conservation Agriculture (CA) is advocated as an agricultural innovation that will improve smallholder famer resilience to future climate change. Under the conditions presented by the El Niño event of 2015/16, the implementation of CA was examined in southern Malawi at household, district and national institutional levels. Agricultural system constraints experienced by farming households are identified, and in response the technologies, structures and agency associated with CA are evaluated. The most significant constraints were linked to household health, with associated labour and monetary impacts, in addition to the availability of external inputs of fertiliser and improved seed varieties. Our findings show that such constraints are not adequately addressed through current agricultural system support structures, with the institutions surrounding CA (in both Government extension services and NGO agricultural projects) focusing attention predominantly at field level practice, rather than on broader system constraints such as education and health support systems. Limited capacity within local institutions undermines long term efforts to implement new technologies such as CA. It is vitally important that the flexibility of farmers to adapt new technologies in a locally-appropriate manner is not closed down through national and institutional aims to build consensus around narrow technical definitions of a climate-smart technology such as CA. To enable farmers to fully utilise CA programmes, interventions must take a more holistic, cross-sectoral approach, understanding and adapting to address locally experienced constraints. Building capacity within households to adopt new agricultural practices is critical, and integrating healthcare support into agricultural policy is a vital step towards increasing smallholder resilience to future climate change.     

Assessing the contribution of artisanal fisheries to food security: A bio-economic modeling approach

Artisanal fisheries are an important food source in many developing regions. Quantitative bio-economic models are needed that comprehensively assess artisanal fisheries’ contribution to food security. Our model combines standard resource economics theory with the literature on food systems. It explains impacts of environmental variations and market development on output, prices and ultimately food security. The application to the Senegalese purse-seine fishery reveals that total sector rents account for 2% of per capita yearly food expenditures for the coastal inhabitants. We examine the relative importance of main drivers and the vulnerability of different regions. Market development plays a crucial role: The resource is of far greater relevance for remote regions.     

Permit markets,carbon prices and the creation of innovation clusters

Innovation clusters combining public and private effort to develop breakthrough technologies promise greater technological advances to slow down climate change. We use a multi-country model with an emission trading system to examine whether and how international climate policy can incentivize countries to create such innovation clusters. We find that a minimal carbon price is needed to attract applied research firms, but countries may nevertheless fail to invest in complementary research infrastructure. We construct a mechanism that leads to innovation clusters when emissions targets are set before uncertainty surrounding technological developments is resolved. It is a combination of low permit endowments for the country with the lowest costs to build the needed infrastructure, compensation for this country by profits from permit trade, and maximal possible permit endowments for the remaining countries. We outline how the EU-ETS can be further refined according to this mechanism.     

Well-being effects of extreme weather events in the United States

The increase in weather and climate disasters in recent years has prompted an interest in analyzing their consequences and the mitigation and adaptation measures that can help minimize their potentially large impacts on individuals’ welfare. We match thirty-one billion-dollar disasters with individual survey data from the Behavioral Risk Factor Surveillance System to estimate the effect of extreme weather events on the subjective well-being of U.S. residents. Our results indicate that natural disasters have a negative and robust impact on subjective well-being in the affected communities, and that, on average, this impact peaks 6 months after the event, and then decays over time. We then investigate the attenuating impact of health care access, flood insurance, and governmental assistance programs and find a partial compensating role for risk-transfer and relief measures. We also find that stronger emotional and social support mitigates the negative impact of natural disasters.     

The ‘curse of dimensionality’ resolved: The effects of climate change and trade barriers in large dimensional modelling

Solving large scale optimisation problems over space and time quickly generates a computational impasse, termed the ‘curse of dimensionality’. This severely limits the practical use of economic models, especially for determining the effects of climate change and protectionist trade policies. In this paper, we employ an innovative approach to solving (otherwise unsolvable) large scale systems through the use of parallel processing methods and a proper ordering of variables and equations in a ‘Nested Doubly Bordered Block Diagonal’ form. We illustrate how the approach can be used to solve an intertemporal CGE model with more than 500 million equations. Using existing damage functions, the framework allows us to determine the impact of climate change on long-run economic growth for 112 countries as a result of the effect of sea-level rise on land endowments, variation in crop yields and productivity and shifts in the demand for energy and transportation. We also compare our solution to more common (and smaller dimensional) recursive methods, in terms of both the economic effects of climate change and potential increases in trade barriers, showing the power and efficiency of our computational approach and parallel processing routine.     

Knowing is half the battle: Seasonal forecasts,adaptive cropping systems,and the mediating role of private markets in Zambia

This paper examines how smallholders living in regions where a drought is forecasted adapt their farm practices in response to receiving seasonal forecast information. The article draws on a unique longitudinal dataset in Zambia, which collected information from farm households before and after a significant drought caused by the 2015/2016 El-Niño Southern Oscillation. It finds that farmers residing in areas forecasted to be drought-affected and receiving seasonal forecast information are significantly more likely to integrate drought tolerant crops into their cropping systems compared to similar households not receiving this information. Moreover, the probability that a farmer implements these adaptive farm management strategies in response to seasonal forecast information is found to increase substantially as the number of private grain buyers in the farmers’ village increases. This suggests that climate change adaptation and resilience strategies that integrate the generation and dissemination of weather information with agricultural market development can achieve greater impact on farmers’ adaptive responses than approaches that treat these activities in isolation.     

Climate Change,Innovation, and Economic Growth: The Contributions of William Nordhaus and Paul Romer

ABSTRACT

William Nordhaus and Paul Romer shared the 2018 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for their work on long-run macroeconomic analysis. Nordhaus adapted the neoclassical growth model to study climate change, while Romer developed a model of innovation-based growth. The authors provide two distinct explanations of what drives growth, and employ contrasting methodologies for interpreting the results of their mathematical models. Macroeconomic policy in general, and climate policy in particular, would benefit from better integrating the theory and methods of these two laureates.     

Quality of Corporate Social Responsibility Disclosure and Cost of Equity Capital: Lessons from China

This article explores the relationship between the quality of corporate social responsibility (CSR) disclosure and the cost of equity capital by analyzing the financial data and CSR reports of A-share listed firms in China from 2008 to 2014. The quality of the CSR disclosure is shown to be negatively related to the cost of equity capital of the listed firms. This negative correlation proves to be more prominent among firms of environmentally sensitive industries. Taking the ownership of the listed firms into consideration, it is further confirmed that the negative relationship between the CSR disclosure and the cost of equity capital is of higher significance for state-owned enterprises. Our findings also empirically demonstrate that the quality of CSR disclosure is more negatively related to the cost of equity capital among the large listed firms than the smaller ones.     

Potential Impact of Climate Change and Armed Conflict on Inequality in Sub-Saharan Africa

This study investigates the potential impact of climate change and armed conflict on inequality in Sub-Saharan Africa (SSA). The system-GMM for a panel of 35 SSA countries is employed using annual data from 1997 to 2018. The empirical results indicate that armed conflict and climate are major drivers of inequality in SSA. The direct impact of the two determinants is more than the indirect impact. Also, the impact of armed conflict is more than the climate change. The coefficients of population growth, output growth, unemployment, natural rent, exchange rate and inflation rate are significant positive predictors of inequality in the SSA. The study advocates for a multidisciplinary inclusive growth strategy that prioritises the climate change reversal, de-escalation of armed conflict, population control, reduction of the unemployment rate and increasing informal sector productivity, to promote inclusive growth and reduce inequality. However, sequencing the policy targets relative to the magnitude of their impact on inequality is extremely crucial.