The impact of climate on life satisfaction

We analyse the influence of climate on average life satisfaction in 79 countries using data from the World Values Survey. Climate is described in terms of ‘degree-months’ calculated as the cumulated monthly deviations from a base temperature of 65 °F (18.3 °C). Our results suggest that countries with climates characterised by a large number of degree-months enjoy significantly lower levels of life satisfaction. This finding is robust to a wide variety of model specifications. Using our results to analyse a particular climate change scenario associated with the IPCC A2 emissions scenario points to major losses for African countries, but modest gains for Northern Europe.     

On the self-interested use of equity in international climate negotiations

We discuss self-interested uses of equity arguments in international climate negotiations. Using unique data from a world-wide survey of agents involved in international climate policy, we show that the perceived support of different equity rules by regions may be explained by the ranking of their economic costs. Despite being self-interested, equity arguments may be perceived as being used for different reasons, for example, out of fairness considerations or in order to facilitate negotiations. Consistent with experimental and behavioral studies on fairness perceptions, we find that individuals are more likely to state reasons with positive attributes if they evaluate their own region or regions that support the individual's personally preferred equity rule. Negotiators perceive the use of equity by regions as less influenced by pressure from interest groups.     

The effect of climate change on optimal wetlands and waterfowl management in Western Canada

Warmer temperatures and a decrease in precipitation in the 21st century could severely deplete wetlands in the prairie pothole region of western Canada. In this study, we employ linear regression analysis to determine the casual effect of climate change on wetlands in this region, with temperature, precipitation and the standardized precipitation index (SPI) used to predict the effect of potential climate change on wetlands. We then use a waterfowl-wetlands bioeconomic model to solve for socially optimal levels of duck harvests and wetlands retention under current climate conditions and various climate change scenarios. The model maximizes benefits to hunters plus the amenity values of ducks to non hunters and the non-market ecosystem benefits of wetlands. Results indicate that climate change could decrease wetlands by between 7 and 47%, and that the optimal number of wetlands to retain could decrease by as much as 38% from the baseline climate.     

The impact of culture and ecology on cooperation in a common-pool resource experiment

Context affects decision-making in many ways. In this paper we explore differences in cooperation behaviour between communal farmers in Namibia and South Africa, who share the same ethnic origin but have had different historical and ecological constraints. We report on a series of field experiments based on a common-pool resource model. Our experimental design is framed according to the grazing situation in semi-arid rangelands. Dependent on the behaviour in previous rounds, participants are facing different states of resource availability with varying need to cooperate, coordinate and to be patient. While only 4% of the grazing areas in South Africa remain in good quality, Namibians achieve a level of 42%. We analyse the different experimental states and find that Namibians behave in all states more cooperatively. We argue that the large difference between the two regions is due to a combination of different historical developments and ecological preconditions: Namibian resource users have a longer experience in cooperative resource management and intact traditional norms. Moreover, the real-life payoffs to cooperation are higher in Namibia stemming from ecological factors.     

The effects of public infrastructure on the cost structure of Spanish industries

This paper examines the impact of public infrastructures on the performance of Spanish private business at a disaggregated industry level. We use duality theory to recover the productivity effects of public capital by calculating the cost saving effects that are associated to public services. Using a translog cost function we present panel estimates for 14 Spanish industries during the period 1980–1991. Our results strongly suggest that public capital formation can be considered to be an instrument to improve competitiveness by reducing production costs. However, the results also indicate that there is a technologically induced labor saving effect through higher public investment. Furthermore, our estimates suggest that a distinction among industries is of importance because the effects of public infrastructures vary across industries considerably.     

The Paretian Ratio Distribution — An application to the volatility of GDP

Recently, Gabaix suggested that the volatility of GDP could come from the Pareto distribution of the firm sizes. This paper describes and gives an approximation of the Paretian Ratio Distribution (PRD), which represents the weight of the firm in GDP.     

A critical review of multi-criteria decision making methods with special reference to forest management and planning

This paper provides a review of research contributions on forest management and planning using multi-criteria decision making (MCDM) based on an exhaustive literature survey. The review primarily focuses on the application aspects highlighting theoretical underpinnings and controversies. It also examines the nature of the problems addressed and incorporation of risk into forest management and planning decision making. The MCDM techniques covered in this review belong to several schools of thought. For each technique, a variety of empirical applications including recent studies has been reviewed. More than 60 individual studies were reviewed and classified by the method used, country of origin, number and type of criteria and options evaluated. The review serves as a guide to those interested in how to use a particular MCDM approach. Based on the review, some recent trends and future research directions are also highlighted.     

Information age to genetic revolution: Embodied technology transfer and assimilation — A tale of two technologies

In this paper, a fifteen regions-fifteen sectors global Computable General Equilibrium (CGE) model is calibrated. It offers quantitative enumeration of 5% exogenous biotechnological invention in USA in genetically modified crops namely, maize grains and soybean. Consequently, it results in endogenously transmitted productivity gains via traded intermediates in user sectors in donor and recipient regions. Sustained absorption and domestic usability of transgenic varieties depend on constellation of: human capital-induced absorptive capacity, governance, and structural congruence between source and recipients contingent on technology infrastructure and socio-institutional parameters. Such innovations result in higher production, welfare and global trade. Also, concomitant 4% exogenous productivity shock in information technology along with 5% productivity growth in the agro-biotech sectors further enhances such simulated impacts on global production and welfare. Regions with larger extent of technology capture aided by higher human capital, better governance, conducive institutional-structural features, and superior technological expertise perform better.     

The effects of tariffs on coalition formation in a dynamic global warming game

The prospects for cooperation on climate protection beyond 2012 are currently uncertain. Thus policy instruments which foster participation in International Environmental Agreements (IEA) are in demand. Among the instruments under discussion are trade sanctions. Multi-region optimal growth models are a state of the art tool for integrated assessment, but introducing trade sanctions distorts the competitive equilibrium, making it difficult to compute numerically. We introduce trade and trade sanctions into a model of coalition stability to assess the potential of trade sanctions to support an IEA. Trade is modeled by having all countries produce a generic output good, but adopting national product differentiation (Armington assumption). Coalitions are free to impose tariffs on imports from non-cooperating countries. We solve the model numerically using a refined version of Negishi's [Negishi, T., 1960. Welfare economics and existence of an equilibrium for a competitive economy. Metroeconomica 12, 92–97] basic algorithm. We then apply the model to analyze the influence of tariffs on international cooperation. The model suggests that there is indeed a significant potential to raise participation through trade sanctions, even when goods from different countries are nearly perfect substitutes. Furthermore we investigate the effect of trade sanctions on global welfare, environmental effectiveness, and the credibility of the tariff mechanism.