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This paper presents estimates of short-run sectoral and economy-wide effects of the introduction of a carbon tax in Australia. The results are derived using an enhanced version of the ORANI multi-sectoral model of the Australian economy. We simulate the introduction of a carbon tax at a rate of 1991-92 $25 per tonne, designed to achieve the Toronto target of a 20 per cent reduction in carbon dioxide emissions below the 1988 level by 2005. We find that the macroeconomic impact would depend critically on the extent to which price rises flowed through into wage rates. Assuming fixed money wages, real GDP would be decreased by an estimated 0.9 per cent, and employment by 1.2 per cent. To maintain a given employment level in the face of the carbon tax would require a reduction in the foreign-currency-equivalent wage rate estimated at 2.8 per cent. This would also entail a decrease in the real wage rate (defined with respect to the consumption price deflator) of 2.8 per cent. Government could promote lower wage outcomes by returning the carbon tax revenue to the community through reductions in other taxes. Enhancements to ORANI used in this simulation include disaggregation of the fossil fuel sector and provision for carbon taxation.

An extensive number of studies uses trade-to-GDP as a proxy for globalisation in environmental research. Globalisation encompasses much more than just trade in goods. Globalisation is the integration of various countries and includes spillovers of ideas and technology, financial flows, the worldwide movement of labour, and national governments meeting on an international level in a bid to solve social and political problems. This study considers the effect of globalisation on carbon dioxide emissions by using a more flexible and comprehensive measure based on the KOF globalisation index for a panel of 21 OECD nations covering the period 1970–2014. Since the globalisation process is not uniform across countries and time, we use a fully-fledged nonparametric technique to estimate the time-varying coefficient and trend functions. Our results show that the effect of globalization on CO2 emissions is positive up until 2000, then switches to turns negative thereafter.

AbstractFood security remains a critical global issue, made more difficult because of the rising world population, climate challenges affecting food production and a focus on market-based solutions that undermine subsistence production in vulnerable rural areas. Particularly affected are countries across Asia where poverty, hunger and malnourishment affect a significant proportion of the population. Drawing on Sen’s entitlement theory, we argue that a shift in focus from national food production to intra-household food access enables a critical reflection on consumption smoothing strategies adopted at this level. In particular, we draw attention to the tendency for women and girls to eat less as an intra-household adaptation strategy. We present findings from our research in rural areas of Bangladesh and note that adaptation strategies adopted by households in response to food insecurity. We note that strategies designed to address food insecurity must include gender mainstreaming to ensure that women and...

Alcohol outlets tend to be located in lower income areas, exposing lower income populations to excess risks associated with alcohol sales through these establishments. The objective of this study was to test two hypotheses about the etiology of these differential exposures based on theories of the economic geography of retail markets: (a) outlets will locate within or near areas of high alcohol demand, and (b) outlets will be excluded from areas with high land and structure rents.Data from the 2010 National Drug Strategy Household Survey were used to develop a surrogate for alcohol demand (i.e., market potential) at two census geographies for the city of Melbourne, Australia. Bayesian conditional autoregressive Poisson models estimated multilevel spatial relationships between counts of bars, restaurants, and off-premise outlets and market potential, income, and zoning ordinances (Level 1: n = 8,914).Market potentials were greatest in areas with larger older age, male, English-speaking, high-income populations. Independent of zoning characteristics, greater numbers of outlets appeared in areas with greater market potentials and the immediately surrounding areas. Greater income excluded outlets in local and surrounding areas.These findings are consistent with the hypothesis that alcohol outlets are located in areas with high demand and are excluded from high-income areas. These processes appear to take place at relatively small geographic scales, encourage the concentration of outlets in specific low-income areas, and represent a very general economic process likely to take place in communities throughout the world.

Abstract Understanding the dynamics of carbon emissions across time and space is important when formulating energy policies to minimise climate changes in the future. If per capita carbon emissions (or carbon intensity) converge over time, then any negotiation of multilateral agreements will be easier than if convergence is absent. It is also possible for club convergence to exist where countries within a club converge but countries between clubs do not converge. We examine the convergence of consumption-based and territory-based carbon emissions intensity across 70 countries. We find two convergent clubs for consumption-based emissions and three convergent clubs for territory-based emissions. Increases in each of total factor productivity, renewable energy consumption and urbanisation increase the odds of belonging to a low carbon emissions intensity club. An increase in industry value added reduces the odds of belonging to a low carbon intensity club. Increases in total factor productivity can be obtained through effective macroeconomic policy, while increasing renewable energy consumption may require structural changes in economies focused on transitioning to a low carbon economy. Under a business as usual forecasting scenario the number of consumption-based carbon emissions intensity clubs increases between 2014 and 2030 making it more difficult to negotiate multilateral agreements on climate change in the future.

This paper examines the causal relationship between electricity consumption, exports and gross domestic product (GDP) for a panel of Middle Eastern countries. We find that for the panel as a whole there are statistically significant feedback effects between these variables. A 1 per cent increase in electricity consumption increases GDP by 0.04 per cent, a 1 per cent increase in exports increases GDP by 0.17 per cent and a 1 per cent increase in GDP generates a 0.95 per cent increase in electricity consumption. The policy implications are that for the panel as a whole these countries should invest in electricity infrastructure and step up electricity conservation policies to avoid a reduction in electricity consumption adversely affecting economic growth. Further policy implications are that for the panel as a whole promoting exports, particularly non-oil exports, is a means to promote economic growth and that expansion of exports can be realized without having adverse effects on energy conservation policies.

Obtaining reliable cross-country estimates of the income and price elasticity of energy demand requires a panel data model that can simultaneously account for endogeneity, heterogeneity, nonstationarity and cross-sectional dependence. We propose such an integrated framework and apply it to a very large dataset of 65 countries over the period 1960-2016 recently assembled by Liddle and Huntington (2020). We find that while the elasticities of income and price are non-linear, the income elasticity is generally in the range 0.6 to 0.8 and the price elasticity in the range -0.1 to -0.3. We also find that the income elasticity has been declining since the 1990s, which broadly corresponds to increasing awareness of the negative externalities associated with burning fossil fuels associated with the Kyoto Protocol. From a policy perspective, that the income energy elasticity is less than one, and has been declining since the 1990s, bodes well for climate change mitigation because it suggests that energy intensity will fall with economic growth.

We provide a comprehensive and robust analysis of the role of renewable energy consumption and institutions on economic growth and in combating CO2 emissions across the regions and income groups. For our empirical model, we use annual data from 85 developed and developing economies across the world over the period from 1991 to 2012. We employ various econometric techniques from panel estimations to obtain the robust results. Our findings confirm that there is significant heterogeneity across the sub-samples. Overall, results from the system-GMM and fully modified OLS indicate that the growth of renewable energy consumption has a significant positive and negative impact on economic output and CO2 emissions, respectively. Institutions have a positive influence on economic growth and a reducing effect on CO2 emissions. Our findings suggest that both renewable energy deployment and institutions are significant in promoting economic growth and reducing CO2 emissions. Finally, we suggest that institutional alignment is necessary to promote the use of renewable energy across economic activities to ensure sustainable economic development.