Floods often displace people and exacerbate their access to finance, affecting the livelihood of daily wage workers in least-developed countries. In August 2017, Nepal experienced the heaviest rainfall in more than 60 years, severely flooding about 80 per cent of the land in the southern part of the country. Using the two-way fixed effects approach and an event study design, we evaluate the impact of severe flooding on the wages of agricultural workers. We show that the 2017 floods resulted in a 9–10 per cent decrease in cash wages among agricultural households while in-kind wages of agricultural laborers increased significantly after the floods, implying that in-kind wages helped mitigate the adverse effects of floods on cash wages. We also investigate changes in assistance, loan-seeking behavior, loan repayment, and collection behavior as mechanisms leading to the risk-mitigating behavior by farmers.

Climate change is a complex global issue that requires widespread understanding, support and collaboration for effective solutions. This research delves into the crucial role of communication in tackling climate change and reaching net-zero goals. Leveraging advanced machine learning techniques, we focus on 10 core climate change topics derived from social media conversations over time. This analysis underscores the importance of a holistic and interconnected approach, involving a diverse array of policies at local, national and global levels to combat climate change effectively and attain net-zero objectives. We offer key policy suggestions that can significantly contribute to this vital cause.

Net zero greenhouse gas emissions by 2050, the UK’s current target, requires bridging a dramatic energy transition and eliminating all other net sources of emissions while ensuring a just transition. Key components like renewable electricity generation and electric vehicles are well developed, but many issues remain. Public support for a green economy may wane if the economic costs are too high or seen as unfair. Therefore, although renewable energy is cheaper than fossil fuels, it is essential to maintain employment, real per capita growth and reduced inequality. Decarbonizing the UK economy requires an integrated sequential approach and need not be delayed while dealing with the aftermath of the COVID-19 pandemic, energy crisis and resulting inflation.

The predictions of the adverse effects of greenhouse gas emissions on climate change are now accepted. Somewhat less attention has been given to the economic, social, and political consequences. The three interact: the former will have social and political effects, which in turn will harm economies and economic well-being. This analysis of poor countries draws on much recent evidence and various projections. Climate damage contributes to internal political instability and conflict. There is a risk that poor countries will be driven down economically, so reducing the capacity of their governments: some will become fragile states. Internal migration is likely to become a central policy issue. However, international migration will also grow. Climate damage will drag countries into both cooperation and conflict with each other. The effects on sending countries, contiguous countries, and destination countries are examined. This scenario presented is predictive but should be taken as a warning.

The social cost of greenhouse gases is important in many regulatory impact analyses. However, calculations of the social cost of greenhouse gases are highly complex and periodically revisited. We offer seven recommendations to improve current estimates. These include recommendations to use both country-level and global measures of the social cost of greenhouse gases, to use country-specific values for monetizing climate damages, to represent uncertainties by reporting distributions instead of using only central values, and to conduct a temporal distributional analysis that shows the magnitudes of climate damages across generations. We also provide recommendations for the discount rates that should be used when estimating the social cost of greenhouse gases, and the appropriate discount rates for regulatory impact analyses that include the social cost of greenhouse gases.

Institutions matter for postdisaster recovery. Conversely, natural disasters can also alter a society's institutions. Using the synthetic control method, this study examines the effects that Hurricane Katrina (2005) had on the formal and informal institutions in Louisiana. As measures of formal institutions, we employ two economic freedom scores corresponding to government employment (GE) (as a share of total employment at the state-level) and property tax (PT). These measures serve as proxies for the level of governmental interference into the economy and the protection of private property rights respectively. To assess the impact on informal institutions, we use state-level social capital data. We find that Hurricane Katrina had lasting impacts on Louisiana's formal institutions. In the post-Katrina period, we find that actual Louisiana had persistently higher economic freedom scores for both GE and PT than the synthetic Louisiana that did not experience the hurricane. These findings imply that the hurricane led to a reduction in both PTs and GE, which indicates a decrease in the relative size of the public sector as a share of the state's economy. On the other hand, we find no impact on our chosen measure of informal institution.

High temperatures have been shown to affect human cognition and decision-making in a variety of settings. In this paper, we explore the extent to which higher temperatures affect judicial decision-making in India. We use data on judicial decisions from the Indian eCourt platform, merged with high-resolution gridded daily weather data. We estimate causal effects by leveraging a fixed effects framework. We find that high daily maximum temperatures raise the likelihood of convictions and these results are robust to numerous controls and specifications. Our findings contribute to a growing literature that documents that the negative impacts of rising temperatures are often more severe in low- and middle-income countries.

In addition to effects from greenhouse gases, climate change is affected by short-lived climate forcers (SLCF). These are often co-emitted with carbon dioxide, and some are regulated air pollutants. In the governance of these pollutants, established estimates of damage costs of pollution inform benefit–cost analyses. However, climate change impact of SLCFs is omitted from these estimates. The purpose of this study is to calculate economic damage costs of air pollutants’ effect on climate change and compare these with established damage costs. Focus is on European emissions governed in the EU National Emission Reduction Commitments Directive during 2020–2050. We use well-known SLCF emission metrics and multiply with literature values on social costs of methane to calculate climate damage costs of SLCFs. The results indicate that average absolute climate damage costs are highest for black carbon ($59,500/ton in 2050) and lowest for nonmethane volatile organic compounds ($661/ton). Our indicative values are likely underestimations. Indicative climate damage costs are usually lower than established damage costs, with notable exceptions. We propose that more detailed studies are necessary, and that inclusion of climate damage costs into economic valuation of SLCFs is important for future air pollution and climate benefit–cost analyses.

Long-term exposure to extreme temperatures could threaten individuals' mental health and psychological wellbeing. This study aims to investigate the long-term impact of cumulative exposure to extreme temperature. Differently from existing literature, we define extreme temperature exposure in relative terms based on local temperature patterns. Combining the China Health and Retirement Longitudinal Study and environmental data from the U.S. National Oceanic and Atmospheric Administration from 2011 to 2015, this study demonstrates that heat and cold exposure days in the past year significantly increase the measured depression level of adults over age 45 by 1.75 and 3.00 per cent, respectively, controlling for the city, year, and individual fixed effects. The effect is heterogeneous across three components of depression symptoms as well as age, gender, and areas of residency, and air conditioning and heating equipment are effective in alleviating the adverse impact of heat and cold exposure. The estimation is robust and consistent across a variety of temperature measurements and model modifications. Our findings provide evidence on the long-term and accumulative cost of extreme temperature to middle-aged and elderly human capital, contributing to the understanding of the social cost of climate change and the consequent health inequality.

Climate change is one of the largest threats for biodiversity as changing climatic conditions often make existing habitat sites less suitable. This poses new challenges for species conservation, in particular in agricultural landscapes, where climate change may also induce modifications in agricultural land use. To conserve species in agricultural landscapes, agri-environment schemes (AES) which compensate farmers for implementing conservation measures are commonly used. However, current research on the cost-effective design of AES largely ignores necessary adaptations of conservation measures given climate change. We develop a climate-ecological-economic (CEE) model to examine how the cost-effective design of AES has to be modified under climate change. We apply the model to the conservation of eight meadow bird species in Northern Germany and determine the cost-effective conservation measures under recent and future climatic conditions. We find that the timing of conservation measures in the AES needs to be changed in the RCP8.5 scenario given the species’ phenological adaptations and the impact of extreme events (inundations) on costs. The novelty of the research lies in the development of a CEE model which considers both spatial and temporal changes in costs and benefits to develop recommendations for the cost-effective design of AES under climate change.

Climate change both reflects and transforms global development. Asymmetries of responsibility, impact and capacity reflect historical and current development hierarchies. At the same time, the imperative to reduce greenhouse gas emissions perversely empowers high-emitting newly industrialising counties. As inter-state negotiations enter a new post-Kyoto paradigm involving emissions reductions for ‘all Parties’ to the UN climate change convention, relations between industrial and industrialising countries, and more broadly between North and South, are re-orientated. This article charts these relations through two decades of United Nations climate negotiations, arguing the need to secure emissions reductions across the industrialising world opens up new possibilities for climate justice.

The Australian Government has produced a CO2-equivalent tax proposal with a difference: it is a short prelude to an emission trading scheme that will allow the increasing rate of emissions to continue, while being a net cost to the Treasury. That cost extends to allowing major emitters to make guaranteed windfall profits from pollution permits. The emission trading scheme suffers numerous problems, but the issues raised in this article show that taxes can also be watered down and made ineffectual through concessions. Taxpayers will get no assets from the billions of dollars to be spent buying-off the coal generators or other polluters. The scheme seeks to stimulate private investors to create an additional 12 per cent in renewable electricity generation by 2020. A really serious emissions reducing alternative would need to create a nationalised electricity sector with 100 per cent renewable energy within a decade. We explore the limitations of Australia’s carbon tax plan which has now passed into law.

Climate change is most directly felt by people who cannot escape its impacts, including workers whose source of livelihood may put them directly at risk from high heat. Research on these impacts for Australian workers, especially the sociopolitical determinants of effective workplace heat management, remains limited. This article presents findings from a national research project that investigated these issues in collaboration with the Australia-based United Workers Union. It reports on the experiences of members exposed to high heat, explores how they address heat stress and how they relate this to climate change. The article expands understanding of the impacts of workplace heat, especially for indoor workers and those in lower paid jobs, through a focus on how workers articulate their experiences and understand and exercise their agency at work.

We introduce a themed collection of articles on approaches to configuring a Green New Deal as a response to the current capitalist crisis marked by ecological breakdown, economic stagnation and growing inequality. The Green New Deal is a contested political project, with pro-market, right-wing nationalist, Keynesian, democratic socialist and ecosocialist variants. Critiques of the Green New Deal include pragmatic queries as the feasibility of implementation, and theoretical challenges from the right regarding reliance on state forms and from the left regarding efforts to ameliorate capitalism. They also include concerns about technocratic bias and complaints about lack of meaningful consultation with Indigenous peoples on proposals for large-scale shifts in land use. Debates over the ideological orientation, political strategy and implementation of the Green New Deal must now account for the economic and employment impacts of COVID.

There has been much debate about the role of carbon prices in reducing greenhouse gas emissions in Australia. However there has been far less attention paid to the evaluation of complementary and other non-price policies designed to accompany the carbon price. The purpose of this article is to develop a framework for considering the case for, and effectiveness of, the wide range of existing and proposed complementary policies that are designed to accompany the carbon price in the effort to reduce Australia’s greenhouse gas emissions. The article concludes that an effective evaluation of complementary policies should include identifying the market failure the policy is aimed at correcting. The complementary policy should work in conjunction with, not opposition to, other polices aimed at reducing emissions. It should be complementary with the policies of other levels of government and it should also consider issues of efficiency, equity, accountability and adaptability.

In recent years, ‘environmental economics’ has provided the dominant logic underpinning policies for ‘sustainable development’ in the form of government managed price-based and rights-based mechanisms. The advocacy of property rights in environmental management is taken further in the libertarian ‘free market’ approach and this ‘privatisation’ perspective is reflected in the growing use of property rights instruments in climate change policy. This article examines the efficacy of using economic instruments in the environmental context where ‘market ecology’ promotes the commodification of environmental ‘goods’ and ‘bads’ and their management by market forces. It argues that the pricing of ‘nature’ or its useful properties is a crude abstraction that implies ecological values can be alienated, but this is incompatible with the material and relational qualities of such values. The limits of this conceptualisation are further demonstrated through an examination of the Kyoto Protocol’s Clean Development Mechanism (CDM), a price and property rights instrument which enables private project developers in developing countries to produce carbon credits in order to offset greenhouse gas pollution in developed countries. The evident negative social and environmental effects flowing from implementation of the CDM reinforce the limitations of economic logic in the environmental context.

Australia’s carbon pricing scheme protects the profits of polluters and, as a consequence, has a negligible impact on the carbon emissions emanating from Australian industries. I concentrate on the assistance given to emissions-intensive, trade-exposed industries and use a post Keynesian approach to explain that, despite the rhetoric, industries and firms will not move offshore under a carbon price and industry assistance is unnecessary. When assistance is given, profits are protected and could increase in certain industries, which occurred in the comparable European emissions trading scheme. In orthodox economic theory, despite this negligible impact on profits, any method of pricing carbon causes a reduction in emissions because firms seek to adjust technology and factor inputs at the margin and abate until marginal abatement costs equal the carbon price. However, from a post Keynesian perspective, the government’s prediction of a transformed economy and clean energy future will not occur unless the carbon pricing policy reduces the corporate profits of emitting firms. Thus, complementary policies are required to take the burden of reducing emissions off the more symbolic carbon market established. I further argue that a carbon tax without any industry assistance is a preferred approach and that where plant shutdown does occur, carbon emissions around the world will fall and workers could be compensated at a far smaller cost than the adjustment assistance given to industries in the policy’s current form.

Planning for a low-carbon future in Australia will need to address simultaneously three aspects of sustainable development: centralisation/regional development, mobility and communication. After reviewing existing roadmaps for low-carbon growth by 2050, the article identifies the importance for Australia of an integrated and mutually reinforcing set of measures, based on a bold approach to urban and regional planning. Taking account of national geography, the approach is based on the decentralisation of energy production, use and storage, and on new uses of communication, transport and the location of food, water and mineral resources. Revitalised regional centres could be connected, through new energy and transport solutions, by a national transport arc and electrified highways. The use of infrastructure funding to support low-carbon regional development would avoid the ‘tragedy of the commons’, transcending incremental, cumulative approaches based on compensation and incentives for household, business and sectoral abatement efforts. It would generate long-term environmentally sustainable development.

Economists have for decades recommended that carbon dioxide and other greenhouse gases be taxed – or otherwise priced – to provide incentives for their reduction. The USA does not have a federal carbon tax; however, many state and federal programs to reduce carbon emissions effectively price carbon – for example, through cap-and-trade systems or regulations. There are also programs that subsidize reductions in carbon emissions. At the 2022 meetings of the American Economic Association, the Society for Benefit-Cost Analysis brought together five well-known economists – Joe Aldy, Dallas Burtraw, Carolyn Fischer, Meredith Fowlie, and Rob Williams – to discuss how the USA does, in fact, price carbon and how it could price carbon. Maureen Cropper chaired the panel. This paper summarizes their remarks.

Policies designed to control greenhouse gases imply domestic tradeoffs and international externalities, which lead to both domestic and international conflicts, influencing their feasibility and implementations. Our paper investigates two quantitative aspects within this debate. We intend to quantify the impact of: (a) the internalization of international externalities; and (b) the damage associated with a short-term view of climate policies. In this respect, we adopt the innovative (in this field) idea of model predictive control to formalize moving-horizon policy strategies and, thus, to build counterfactuals characterized by a different horizon for all policymakers.