We analyze the effect of green patents on G7 stock market returns. First, we build a small IS-LM model to identify the relevant channels, augmented with open-economy channels and the Green Tobin’s q (Faria et al., 2022). The model highlights that the intertemporal impacts of greening on stock returns are ambiguous. We then turn to an estimated global vector autoregressive model to more rigorously analyze the effect of monetary and green patenting shocks across the G7. Both shocks influence green patents through real and financial markets. As regards green patent shocks, results suggest that a tension exists over time between promoting pollution reduction and energy efficiency and the profitability of (green and brown) companies in the aggregate. We perform a variety of robustness exercises around our main results. Our results provide something of a challenge to the literature and call for more research effort to understand the various channels that might explain this dynamic—and in turn whether any particular policy recommendations follow.

Natural resource extraction is an important livelihood strategy for poor rural households in developing and emerging countries. Despite the sharp decline in poverty in Vietnam, inequality still exists between the ethnic majority and minority. This paper aims to analyze the impact of natural resource extraction on ethnic inequality. We use panel data from Dak Lak in the Central Highlands of Vietnam. The Oaxaca-Blinder decomposition shows that ethnic differences in extraction are due to different group characteristics and different returns to these characteristics. Endogenous switching regressions find that extraction has heterogeneous effects on consumption across extracting and non-extracting households, and between majority and minority households. Treatment effects suggest that extraction sustains the consumption of extracting minority households because their consumption would decline if they stopped extracting. Our results indicate that it is important to improve the natural resource base and the ability of minorities to cope with shocks.

In this article, I share insights from the conversations I have enjoyed with my father GC Harcourt on gender, social justice, and economic policy in the last years of his long and fruitful life. Our conversations reflected our overlapping but at times divergent responses to the disruptions caused by environmental, climate, health, economic, and political crises. The article reflects on our conversations around population, alternatives, the pervasiveness of racism in Australia, and the recurring questions of how to bring about change and how to continue despite political disappointments. The article teases out in a gentle way how my perspective, as a feminist political ecologist, diverged from GC Harcourt’s views, and what our conversations together suggest as important challenges to overcome as we confront the current crises of modern capitalism.

Although the issue of redistribution is glossed over by Marglin, there are three reasons why decarbonisation must be accompanied by a massive scaling up of redistribution from the global North to South if the agenda is to be founded on a social justice approach. First, constructing a capital infrastructure in the South in a manner that maximises the potential for decarbonisation would tend to be very import-intensive. Hence, it would require external financing or else risk running aground through balance of payment constraints. Second, there is already a tendency in the global economy of siphoning resources from South to North, in particular through the increasing control over flows of value and wealth by Northern corporations from their commanding positions within international networks. Southern productivity needs to be contextualised from this perspective given the risk that climate negotiations lock in the subordination of Southern countries within these global networks, rather than seeking ways for Southern producers to leverage more value for the output and carbon emissions they are already producing. Third, population and labour transitions in the South place relatively greater pressure than in the past on employment generation in tertiary (service) sectors, in which distributive and redistributive processes play essential roles in bolstering labour demand. The neglect of global redistribution could undermine the capacity of Southern countries to face these broader development challenges, which are already immense even in the absence of decarbonisation. A key question is how to organise global redistributive transfers in a manner that does not continue to subordinate Southern populations to Northern interests. The challenge for decarbonisation is the forging of a political will for redistribution that is motivated by climate change rather than geopolitics, and that respects national ownership and self-determination.

The need for a new economy is great and the obstacles are many: growing inequalities within and between nations and regions, new complicity between corporations and non-democratic political regimes and failure of workers worldwide to make common cause. There are alternative models, indicating that a more egalitarian approach does not necessarily reduce living standards. Environmental degradation cannot be addressed by a technological fix: the threat to our long-term survival is pre-figured in the impact of climate change and corporate rapacity on the land and sea resources of the indigenous minorities who live as humanity has lived for most of its existence. A 10-point plan for a follow-up to the United Nations’ Millennium Development Goals is suggested, but it will work only if solidarity networks can be built across divides of ascribed race, religion and nominal income levels, to express the will of the people in place of the government representatives who are prepared to gamble the future of humanity for corporate profit and power.

This research investigates the role of public sector innovation outcomes, e.g. trademark innovation, information and communication technology (ICT), renewable energy, and governance, in the sustainable development of Bangladesh during 1980–2019. Utilising the dynamic autoregressive distributed lag (DARDL) simulation approach, this study divulges a favourable long-term influencing profile of public sector innovation outcomes, i.e. trademark innovation, ICT, and renewable energy on sustainable development, while governance has a heterogeneous impact. Besides, the findings from the DARDL simulations area plots display 10% counterfactual shocks to the public sector innovation outcomes on sustainable development. Furthermore, the Kernel-based regularised least square machine learning algorithm approach used in the study examines the marginal effects of the public sector innovation outcomes on sustainable development for robust findings. Therefore, the policy suggestions are solely concerned with the public sector’s adoption of more innovation dynamics through appropriate policy formulation.

Cleaner cooking is an important policy objective in the bid to achieve sustainable development. Despite efforts to encourage cleaner cooking fuel use, biomass fuel is still widely used in many developing countries. This study investigates the role of behavioral factors, particularly risk aversion, in the choice of cooking fuels in Ghana. In addition, we investigate how the improvement of supply infrastructure and services mitigates the impact of risk preferences in fuel choices. By employing data from the recent round of the Ghana Living Standards Survey, we find that risk-averse households are less likely to choose liquified petroleum gas as their cooking fuel. However, the effect is mitigated for households located in districts with more supply infrastructure. Additional analyses reveal the influence of risk and time preferences in other household behavior.

The goal of this study is to perform a comparative analysis of agroecological and conventional small coffee farms. We investigated 15 coffee farms in the East region of Minas Gerais, a Brazilian rural region, based on coffee production using a multicriteria analysis with economic, social and environmental factors. The results suggest that agroecological farms perform better than conventional farms in terms of sustainability, reduce labor intensity and improve income stability and the environmental impact, such as agro-biodiversity and forest cover. In particular, the results reveal that agroecological farms, though they have lower levels of coffee productivity than conventional farms, perform better in terms of income stabilization. This result depends on product diversification (such as agri-food products, vegetables or fruits) for local markets, which reduces farmer risks associated with coffee price volatility, improving both the local economy and local food security. Moreover, agroecological farms rely more on labor than capital. Overall, the results of this study reveal that agroecological systems support the socio-economic sustainability of the rural areas under study and suggest the potential of agroecology to boost sustainable development in the East Region of Minas Gerais. In short, the spread of agroecological systems could improve local employment conditions, reducing migration toward large cities and shanty towns in other parts of Brazil. Hence, agroecology systems can represent the main alternative to conventional production systems to improve the well-being and wealth of rural populations in developing countries. The analysis presented in this study is based on a specific case study, but the rural area under study has many similarities with other areas in Latin America regarding all aspects of economic, social and environmental sustainability. Finally, some agricultural policy implications are discussed.

This paper sets up a dynamic model to study the distributive effects of privatizing an open access resource. We show that with or without discounting, privatization is not always Pareto improving. We further derive conditions under which the poor are made worse off when private use rights are equally distributed compared to a situation with open access resource. These conditions imply that privatization is Pareto improving if the natural resource is sufficiently productive, inequality in alternative private project opportunities is low, and if there is no discounting. In addition, we show that once reduction in income from resource harvesting during the transition to a new steady state is accounted for, privatization is desirable for the poor only for very productive natural resources and low discount rates.

This study evaluates optimal investment decision rules for an energy beet ethanol firm to exercise the option to invest, mothball, reactivate, and exit the ethanol market, considering uncertainty and volatility in the market price of ethanol, feedstock, and irreversible investment. A real options framework is used to compute gross margins of ethanol that trigger entry into and exit from the ethanol market. Results show that volatility in ethanol gross margins has much greater effects on exit and entry decisions than investment costs, and it also causes firms to wait longer before entering the ethanol market and, once active, to wait longer before exiting.

Herein we explore the economic value of delaying inevitable environmental damage due to aquatic invasive species, which is a problem especially relevant to tropic and subtropical regions. We developed an analytical framework and tested it using a stated preference survey. The results suggest that delaying the impacts can be valuable. Other tests reveal characteristics of the willingness-to-pay estimates that are consistent with economic theory.

This paper investigates the relationships among land-use change, biological invasion, and interspecific competition in a tropical ecosystem by linking a behavioral model of land conversion by agriculture and an ecological model of interspecific competition between a native species and an exotic invader. The model is used to examine how relative farm prices and access to forest areas influence land clearing and thus the ability of the invasive species to eliminate the native species. Simulations show that only a 20% rise in relative prices and a 2.75% increase in forest access are necessary for this outcome to occur.

Binary logit analysis was used to identify the factors influencing adoption of Global Positioning System (GPS) guidance systems by cotton farmers in 11 Mid-south and Southeastern states. Results indicate that adoption was more likely by those who had already adopted other precision-farming practices and had used computers for farm management. In addition, younger and more affluent farmers were more likely to adopt. Farmers with larger farms and with relatively high yields were also more likely to adopt. Education was not a significant factor in a farmer's decision to adopt GPS guidance systems.

The Rio Grande has headwaters in Colorado, flows through New Mexico, and serves as the United States-Mexico border in Texas, emptying into the Gulf of Mexico. Snow melt in Colorado and northern New Mexico constitutes the water river supply for New Mexico and the El Paso region, whereas summer monsoonal flow from the Rio Conchos in Mexico and tributaries, including the Pecos River, provides the Rio Grande flow for southern Texas. The region is mostly semiarid with frequent long-term drought periods but is also characterized by a substantial irrigated agriculture sector and a rapidly growing population. International treaties and interstate compacts provide the rules for allocation of Rio Grande waters between the United States and Mexico and among Colorado, New Mexico, and Texas. Water rights in Texas have been adjudicated, but the adjudication process was based on a wet period; hence, contemporary Rio Grande water rights are overallocated. Issues related to the waters of the Rio Grande include frequent drought, increased municipal demand caused by a rapidly increasing population, supply variability, underdeliveries from Mexico, increasing salinity, inefficient delivery systems, health issues of the population, no economic/financial incentives for farmers to conserve, and water is not typically priced for efficiency. Stakeholders are interested in identifying solutions to limited water supplies while there is increasing demand. There are several activities in place addressing Rio Grande-related water needs, including enhancing delivery distribution efficiency of raw water, conversion of rights from agriculture to urban, improving both agricultural irrigation field distribution and urban use efficiency, developments in desalination, and litigation. None of the solutions are easy or inexpensive, but there are encouraging cooperative attitudes between stakeholders.

High natural gas prices have agricultural producers searching for alternative energy sources for irrigation. The economic feasibility of electric and hybrid (electric/wind) systems are evaluated as alternatives to natural gas powered irrigation. Texas Panhandle and Southern Kansas farms are assessed with a quarter-mile sprinkler system, three crops, and two pumping lifts. Breakeven points identify the price at which conversion from a natural gas irrigation system to an electric or hybrid system is cost effective. Results indicate electricity is a more feasible energy source for irrigation and policy changes such as net metering are necessary to make hybrid systems viable.

An extension of the Guerrero et al. (2010) net present value (NPV) analysisusing real options analysis (ROA) is offered to improve machineryreplacement decisions. Specifically, the feasibilities of replacing naturalgas irrigation systems with either electric or hybrid (electric/wind)systems are evaluated. Results indicate NPV and ROA criteria can yieldopposite decisions depending on the stochastic nature of the parameters,reversibility of the investment, and flexibility of investment timing. Forpolicy, NPV results indicate that replacing natural gas with a hybrid is onthe cusp of being optimal. However, ROA indicates this NPV implication maynot hold.

We model environmental interaction among countries as a policy game where governments in each country use quotas or taxes as strategy variables. The environmental policy has a triple role to play: targeting domestic emissions, providing strategic advantages for domestic firms and targeting imported pollution. Using a multi-sector economic model, we show that, besides the well-known inefficiencies arising at the international level, the environmental policy may lead to purely domestic inefficiencies.

Dans le cadre d'un modèle à générations imbriquées, nous supposons que la gestion d'une ressource renouvelable correspond à l'émission de quotas d'exploitation transferables. Chaque agent a la possibilité d'utiliser les quotas dans la production ou de les vendre à la génération suivante. Nous montrons qu'une telle politique de gestion d'une ressource naturelle renouvelable est possible seulement pour certain niveaux de ressource au moment de l'introduction des quotas. Nous montrons alors que les quotas conduisent à l'existence d'un unique équilibre stable de long terme fonction du niveau d'exploitation défini par le planificateur.