Table of Contents

Unconditional Aid and Green Growth

Moutaz Altaghlibi, University of Amsterdam
Florian O. Wagener, University of Amsterdam - Center for Nonlinear Dynamics in Economics and Finance (CeNDEF) - Department of Quantitative Economics, Tinbergen Institute

Marginal Economy. Growth Strategies for Post-Growth Societies

Steffen Roth, Rennes School of Business

Game Changer? The Impact of the VW Emission Cheating Scandal on the Co-Integration of Large Automakers’ Securities

Paul A. Griffin, University of California, Davis - Graduate School of Management, University of California, Davis
David H. Lont, University of Otago - Department of Accountancy and Finance

Sustainability-Based Assessment of Project-Related Climate Change Impacts: A Next Generation EA Policy Conundrum

Anthony Ho, Pacific Centre for Environmental Law and Litigation
Chris Tollefson, University of Victoria - Faculty of Law

Policies of Natural Resources Management and Environmental Economic Advantages - Attractions in Kosovo

Afrim Selimaj, University Haxhi Zeka Peja
Adem Dreshaj, University Haxhi Zeka Peja
Bedri Millaku, University 'Haxhi Zeka'

Exercising or Evading International Public Authority? The Many Faces of Environmental Post-Treaty Instruments

Tim Staal, University of Amsterdam, Faculty of Law, Amsterdam Center for International Law, Students


ENVIRONMENTAL ECONOMICS eJOURNAL

"Unconditional Aid and Green Growth" Free Download
Tinbergen Institute Discussion Paper 16-037/II

MOUTAZ ALTAGHLIBI, University of Amsterdam
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FLORIAN O. WAGENER, University of Amsterdam - Center for Nonlinear Dynamics in Economics and Finance (CeNDEF) - Department of Quantitative Economics, Tinbergen Institute
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Environmentally motivated aid can help developing countries to achieve economic growth while mitigating the impact on emission levels. We argue that the usual practice of giving aid conditionally is not effective, and we therefore study aid that is given unconditionally. Our framework is a differential open-loop Stackelberg game between a developed country (leader) and a developing country (follower). The leader chooses the amount of mitigation aid given to the follower, which the follower either consumes or invests in costly nonpolluting capital or cheap high-emission capital. The leader gives unconditional mitigation aid only when sufficiently rich or caring sufficiently about the environmental quality, while the follower cares about environmental quality to some extent. If aid is given in steady state, it decreases the steady state level of high-emission capital and capital investments in the recipient country and the global pollution stock, but it has no effect on the levels of non-polluting capital and non-polluting investments. It accelerates the economic growth of the follower; this effect is however lower than what static growth theory predicts since most of the aid is consumed. Moreover, we find that the increase in growth takes place in the nonpolluting sector.

"Marginal Economy. Growth Strategies for Post-Growth Societies" Free Download
Journal of Economic Issues, Forthcoming

STEFFEN ROTH, Rennes School of Business
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A sharp problem focus sharpens the problem. Sustainably ongrowing bodies of text on degrowth are not the key to post-growth scenarios because evocations of the limits of growth reinforce rather than transcend the economic principle, which is in the observation of scarcity. We therefore focus on alternative forms of growth rather than alternatives to growth. Our form-theoretical analysis of growth dismoralizes growth and disembeds it from the economic medium in which it is preferably drawn. We finally suggest that the key to a post-growth society is in a regrowth of interest in growth in so-far neglected non-economic function systems.

"Game Changer? The Impact of the VW Emission Cheating Scandal on the Co-Integration of Large Automakers’ Securities" Free Download

PAUL A. GRIFFIN, University of California, Davis - Graduate School of Management, University of California, Davis
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DAVID H. LONT, University of Otago - Department of Accountancy and Finance
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This paper investigates the potential change in the securities market pricing behavior of 16 large, global automakers following disclosure of the Volkswagen emission cheating scandal. The triggering public disclosure occurred on September 18, 2015, when the EPA issued a notice of violation to VW, stating that VW had intentionally circumvented the US clean air rules for diesel car emissions. The EPA notice unleashed a torrent of responses and disclosures by the company, regulators, investigators, stakeholders, and others. We first examine and contend that this event may have unblocked what economists call an informational cascade, in that much of the information on VW diesel car emissions was already known to interested parties, yet no significant market response occurred until the September 18 EPA notice. Second, we predict and find a significant change around this event in the stochastic evolution of equity and credit default swap prices in the automobile industry. In the post-emission-cheating-scandal period, this change is consistent with increased market co-integration. A test of economic significance further supports this finding by showing a decrease in the profitability of a hypothetical arbitrage trading rule based on lead-lag pricing relations in the equity and CDS markets.

"Sustainability-Based Assessment of Project-Related Climate Change Impacts: A Next Generation EA Policy Conundrum" Free Download

ANTHONY HO, Pacific Centre for Environmental Law and Litigation
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CHRIS TOLLEFSON, University of Victoria - Faculty of Law
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There has been a steady growth in Canadian scholarship and advocacy regarding sustainability-based approaches to environmental assessments (“EA?). However, to what extent and in what circumstances would a sustainability-based EA inevitably confront some of the same conceptual and technical challenges that bedevil more traditional EA models? In this paper, we consider and critique the capability of a sustainability-based EA to consider the specific issue of a project’s climate change impacts from its greenhouse gas (“GHG?) emissions. Using the Pacific NorthWest LNG Project as a case study, we compare and contrast the current EA regime and the sustainability-based EA regime first proposed by Gibson. We found that, while adoption of a sustainability-based framework would be a distinct improvement upon the current regime in certain areas (such as more stringent trade-off rules for justifying significant adverse effects), it would still be forced to grapple with many of the same vexing problems and issues that have undermined the efficacy of the current regime. In particular, our analysis suggests that, on the complex and global issue of climate change, project level EAs alone (whether they include sustainability criteria) may not be an effective tool in making sure that industrial developments help, not hinder, Canada’s capability to meet its commitment to reduce GHG emissions. Any reform to the federal EA regime that tries to incorporate the sustainability framework must be attentive to the weaknesses within that framework in addressing the complex and global phenomenon of climate change. Accordingly, such reforms must also be part of a more comprehensive effort to design a GHG reduction regime that can provide concrete GHG benchmarks for project EAs.

"Policies of Natural Resources Management and Environmental Economic Advantages - Attractions in Kosovo" Free Download
Academic Journal of Business, Administration, Law and Social Sciences, Vol. 1 No. 3, (2015) ISSN 2410-3918

AFRIM SELIMAJ, University Haxhi Zeka Peja
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ADEM DRESHAJ, University Haxhi Zeka Peja
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BEDRI MILLAKU, University 'Haxhi Zeka'
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Ecosystem management is a recent alternative policy proposed by the Kosovo government to address a new generation of environmental issues. All Kosovo agency managements are currently exploring the concept of ecosystem management and their implications. Their activities are focused in the management of land and natural resources, by developing policy guidelines regarding the management of the ecosystem and the efforts undertaken that are only one layer of a larger phenomenon nationwide. Similar activities occur at the state and local levels, as well as within the NGO sector. In this sense, this paper addresses two questions: What is the policy of ecosystem management? Would Ecosystem management remain only a land management policy and resource?

"Exercising or Evading International Public Authority? The Many Faces of Environmental Post-Treaty Instruments" Free Download
Goettingen Journal of International Law, Vol. 7, No. 1, 2016

TIM STAAL, University of Amsterdam, Faculty of Law, Amsterdam Center for International Law, Students
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Post-treaty instruments (PTIs) are informal instruments adopted by consensus of the treaty parties as follow-up decision to a particular provision in a treaty. PTIs are potentially significant instruments for advancing environmental global governance, as the treaty parties may use them to transform indeterminate treaty provisions into more specific environmental rules and decisions. While a number of PTIs are rightly characterized as exercises of authority, this article seeks to demonstrate how certain environmental PTIs with rule-setting character (‘PTRs’) amount to evasions of authority by reducing international authority over States’ environmental policies, or alleviate rather than tighten the treaty parties’ obligations, through their content or legal status. First, some PTRs avoid authoritative language, requiring little or no concrete action by the treaty parties. Some treaty-based assignments to adopt PTRs are never even acted upon. Other PTRs simply water down the obligations of the treaty parties compared to the underlying treaty provisions. Second, PTRs possess an ambiguous legal status both in legal doctrine and in the practice of domestic and EU courts. The article further argues that consensual decision-making may well be at the root of this ambivalent practice. As a broader contribution to the debate about International Public Authority (IPA), the proposition is advanced that we need to scrutinize more carefully what kind and degree of authority an instrument exercises exactly – or not. Evasions of authority and alleviations of obligations – which can be conceived as a special type of exercising authority through inaction – have important implications for what future legal frameworks of international public law must deliver in terms of effective and legitimate procedural design.

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