The Economics of Climate Change in Argentina

herausgegeben von: Dr. Maria Elisa Belfiori, Dr. Mariano Javier Rabassa

Verlag: Springer International Publishing

Buchreihe : The Latin American Studies Book Series

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik"

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Über dieses Buch

In this volume, the contributors discuss some of the most remarkable global warming effects in Argentina and examine policies that Latin American countries could follow to achieve their individual climate goals. Climate change is one of the most pressing issues today. However, after many years of climate negotiations, the world has failed to introduce a common global policy. Differences in countries' climate agendas have led to unsuccessful efforts. Countries willing to pursue a climate policy have sought alternative strategies to mitigate and adapt to global warming's consequences within their jurisdiction. In this context, Latin American countries' role in shaping the regional climate agenda is yet to be explored.

The book covers some papers from the well-received "First Workshop on Environmental Economics and Energy" in Argentina. Using data from Argentina, the contributors analyze the effects of global warming on agricultural yields and the impact of extreme weather on human health. From a global perspective, the contributors also describe the interactions between a reduction in carbon emissions, carbon emissions intensity, and economic growth; the role that trade policies can play to reduce carbon emissions; and the paradoxes that arise from promoting renewable energies in the region. The contributors also address the relationship between sustainability and economic growth; the private sector's role in shaping policies and providing sustainable solutions; and the Latin American challenges for the next generation.

The book will be of interest to policy-makers, academics, researchers, and professionals worldwide working in climate change impacts and policy. It will also appeal to a general audience interested in climate change economics, its consequences, and the steps that countries in Latin America can take to move forward.

Inhaltsverzeichnis

Frontmatter

Climate Change: Impacts and Adaptation Policies

Frontmatter

The Impact of Temperature on Mortality in Argentinean Municipalities

Abstract

Although earlier studies have documented the influence of weather on human health in major Argentine cities, these studies lack national coverage. Moreover, the use of different health metrics and weather parameters makes it impossible to assess any geographic heterogeneity of impacts. We aimed to analyze the effect of hot and cold temperatures on human mortality rates in Argentina and their differential impacts by age and sex. The study rests on nonparametric techniques applied to data with a panel structure to estimate the causal effect of temperature extremes on mortality risks. Our findings confirm that extreme temperatures increase mortality rates relative to mean monthly temperatures, but the impact of colder than average temperatures is larger in magnitude. On average, a day with a countrywide mean temperature of 5 \(^{\circ }\)C increases overall monthly mortality rate by 3.5% points with respect to the observed mortality for a day with countrywide average temperature. As expected, there exists substantial heterogeneity between age groups, with older people facing larger risks. To a lesser extent, there are also heterogeneous impacts by gender and geographic regions. These findings provide relevant information for policy makers about potential impacts of changing temperatures over Argentina in the upcoming decades.

Christian Martín García-Witulski, Mariano Javier Rabassa

How Econometrics Can Help Us Understand the Effects of Climate Change on Crop Yields: The Case of Soybeans

Abstract

Climate econometrics is a new field, which is proving to be a fruitful approach to give a rigorous treatment to many hypotheses related to climate change. This chapter illustrates how econometrics can help understand the effects of climate change on the time behavior of crop yields at a country-level scale. We use a multivariate framework to discuss issues related to non-stationarity of climate variables, the existence of nonlinearities, and collinearities. We also examine the exogeneity of the explanatory variables in crop yields models, the presence of extreme events, and the short- and long-run effects of climate change. Global climate change may affect the incorporation of new lands to production and the rise of crop yields to meet the increasing demand for food and energy. However, adaptation, trade, the declining share over time of agriculture in the economy, and carbon fertilization have reduced the harmful impacts of global warming. In particular, carbon fertilization refers to the positive effects that increasing carbon dioxide concentrations have on some plants that use CO\(_2\) during photosynthesis. We focus on soybeans in Brazil, USA, and particularly in Argentina, as interesting examples of mitigation and adaptation to global and regional climate fluctuations.

Hildegart Ahumada, Magdalena Cornejo

Floods in Eastern Subtropical Argentina: The Contributing Roles of Climate Change and Socioeconomics

Abstract

The roles of climate and socioeconomic components contributing to floods over eastern subtropical Argentina (ESA) region, the eastern portion of subtropical Argentina, are explored. The national structural flood risk map shows that the region manifests the national flood riskiest areas. Decadal mean flood risk values have peaked in the 1980s, though there is a positive trend in the subregion of Buenos Aires Metropolitan Area (GBA). One major natural factor to consider is flood hazard due to precipitation extreme events that have increased about 30% on average over the GBA subregion and northeastern ESA. The Paraná River shows positive streamflow trend attributable to climatic natural factors and climate change. Deforestation appears to be a high-pressure factor, due to decreased evapotranspiration and limited soil water storage capacity. Future climate projections indicate exacerbation of extreme events of precipitation and streamflow peaks. A critical aspect that makes the region further vulnerable is the lack of continuous and planned flood management policies. The increasing extreme rainfalls and flooding in the context of global climate change demand a complex approach of the phenomena.

Eduardo Andrés Agosta, Mariano Javier Rabassa, Lucio Florio, Mariana Paula Torrero

Climate Change: Mitigation Policies

Frontmatter

Rankings for Carbon Emissions and Economic Growth Decoupling

Abstract

The main purpose of this chapter is to analyze decoupling between carbon emissions and economic activity for the different countries in the world within the 1990–2012 period. We qualify decoupling cases. Countries are ranked from those that decrease emissions while expanding activity (strong decoupling) to those that augment their greenhouse gases and are in recession (strong negative decoupling). For the cases in which there exists a conflict between growth and emissions (there is improvement in one indicator and worse conditions for the other), the orderings are two, depending if priority is given to the economy or to nature. The findings are that 30% of countries follow green growth paths, 50% weakly decouple their emissions from activity (emissions increase less than GDP), and 20% decouple expansively (their emissions increase more than GDP). There is almost difference between ranking countries giving priority to growth and prioritizing nature. Argentina ranks approximately in the 60th place among around 150 countries in the database and is one of the developing countries that weakly decoupled carbon emissions from economic activity in the period under study.

Mariana Conte Grand

“Multiple Dividends with Climate Change Policies: Evidence from an Argentinean CGE Model”

Abstract

Given the international commitments concerning Climate Change, we evaluate the costs and the potential multiple dividends of applying a carbon tax and/or an environmentally oriented trade policy (EGA) as part of an Environmental Tax Reform (ETR) in Argentina. Reviewing the literature concerning the conditions under which multiple dividends of an ETR can emerge, and also comparing the dividends and costs of implementing alternative ETRs in Argentina using computable general equilibrium model simulations, we conclude that given the structural socio-economic characteristics of developing countries (i.e. persistent unemployment, uneven income distribution, recurrent external and fiscal imbalances, high capital volatility, among others), the implementation of an ETR could be more expensive than for countries without these constraints. For instance, an ETR that leads to an increase in the unemployment rate would easily become impracticable. Results highlight that multiple dividends could emerge when a carbon tax helps to reduce distortionary taxes on labour. Unemployment due to fixed real wages and low capital mobility across sectors and countries allow for this multiple-dividend result. Moreover, when this first best choice of ETR is not applicable, an EGA could also lead to multiple dividends under the same labour market conditions, but with greater capital mobility across sectors and the possibility to import a greener production technology. However, the latter could exert a high pressure on the external balance when implementing a foreign technology. Designing an ETR for developing countries requires this cost-dividend analysis since results seem to be highly sensitive to factors market conditions and the available technology.

María Priscila Ramos, Omar Osvaldo Chisari

Carbon Taxes and Renewable Energy Subsidies: A Discussion About the Green Paradox

Abstract

What is the optimal policy to control carbon emissions that cause climate change? Climate change is a global phenomenon, and the solution to it is a carbon tax. What is an optimal policy? An optimal policy tackles the problem with the least economic distortions. Under some assumptions, the optimal carbon tax depends on three parameters only, which is very useful because it provides a simple rule for governments to follow. A related strategy, broadly adopted in many countries worldwide, is the subsidization of renewable energy. Subsidies to renewable energy are optimal if there are externalities in the sector. These may come from a learning- by-doing curve or technological spillovers. Otherwise, the subsidies add undesired economic distortions. Furthermore, renewable subsidies can be counterproductive as they may lead to an increase in overall emissions.

Maria Elisa Belfiori

Latin American Challenges for the Next Generation

Frontmatter

Natural Resources, Climate Change and Governance

Abstract

As per the recent 2019 World Population Prospects, the world population will reach 9.7 billion in 2050, and this rise in population will lead to a 70% increase in the demand for agricultural production. Given the wrath of climate change and resource constraints in Asia, Latin America has a comparative advantage in terms of physical resources which make it the most plausible contender for the role of world food factory at large, considering value added incorporating biotechnology advances, logistics and the contribution of new technological development. The paper considers the local and global governance challenges due to economic and social disruptions, resulting from this significant opportunity for growth and development in the current world scenario.

Carlos Winograd

Backmatter

Titel: The Economics of Climate Change in Argentina
herausgegeben von: Dr. Maria Elisa Belfiori
Dr. Mariano Javier Rabassa
Verlag: Springer International Publishing
Electronic ISBN: 978-3-030-62252-7
Print ISBN: 978-3-030-62251-0
DOI: https://doi.org/10.1007/978-3-030-62252-7