Andreas Löschel and Dirk T.G. Rübbelke
This paper aims to investigate empirically the findings of an analytical impure public good model. The impure public good model described in this study allows for the application…
Abstract
Purpose
This paper aims to investigate empirically the findings of an analytical impure public good model. The impure public good model described in this study allows for the application of different technologies generating public and private characteristics. The influence of the individual technologies on the total level of (impure) public good provision is of main concern in this study.
Design/methodology/approach
After the illustration of the impure public good model, the analytical results are compared to the results of a numerical approach based on climate policy in Germany.
Findings
The study shows that comparative static analyses do not always generate clear results. Therefore, the numerical approach is helpful to derive unambiguous results. The paper finds that technologies which exclusively generate private characteristics may have significant effects on total impure public good provision, since they may replace the private characteristics of the impure public good.
Originality/value
This paper provides useful information on the influence of the individual technologies on the total level of (impure) public good provision.
Details
Keywords
Ulrike Pröbstl-Haider and Nina Mostegl
The effects of climate change are no longer a distant, slow-paced, future phenomenon. Due to the high dependency on reliable snow conditions, the tourism sector in Austria will…
Abstract
The effects of climate change are no longer a distant, slow-paced, future phenomenon. Due to the high dependency on reliable snow conditions, the tourism sector in Austria will need to rapidly implement adaptation measures to forego further negative impacts. However, the framing of the subject in tourism is already difficult and complex. Despite an increase in climate change awareness, the necessary collective change seems to be deliberately tardy and adaptation processes are slowly considered in political decision-making. Strategic documents on tourism policy are still lacking clear information about this challenging task and suitable strategies. Against this background, the chapter at hand discusses instruments and pathways to deal with wicked problems using climate change and winter tourism in Austria as an example. The adaptation processes for winter tourism make it possible to describe different strategies, such as normative authoritative ones, evidence-based technocratic problem-solving, incremental adjustments or participatory processes and to analyse them using case studies. It becomes clear that evidence-based, normative or participatory approaches all have their strengths and weaknesses. While, on the policy level in Austria, the discussion about the right instruments has just started, a closer look at the project-based level shows the significant potential of a bottom-up approach. However, what is required is more exchange between governmental levels, a transparent distribution of responsibilities, detailed adaptation monitoring and reliable climate-proofing of new and existing policies. Currently, it is the bottom-up processes that show more courage for change and effective implementation of measures against global warming.
Details
Keywords
Murad Harasheh and Andrea Amaduzzi
This paper aims to investigate the value relevance of the European Emission Allowance (EUA) return and volatility on the equity value of the top listed European Power Generation…
Abstract
Purpose
This paper aims to investigate the value relevance of the European Emission Allowance (EUA) return and volatility on the equity value of the top listed European Power Generation Firms for the three trading phases of the European Emission Trading Scheme.
Design/methodology/approach
The authors use the multifactor financial market model over the period 2005-2016 on daily basis for the return relevance relationship, whereas time series models such as autoregression moving average and generalized autoregressive conditional heteroskedasticity are applied on a weighted average portfolio of the sample firms to test serial correlation and volatility of returns.
Findings
The findings are novel in which a positive and significant relevance of EUA return on equity return is shown; however, a vanishing effect is seen as one moves to further trading phases. Another remarkable finding is that the return relationship remains constant until a certain level in EUA price then inverts. Finally, the authors present that EUA is considered a systematic factor as firm and country-specific features are not statistically significant.
Practical implications
At policy level, these findings signal policymakers for an appropriate design of the future trading phases in which they achieve the balance between public interests, as climate risk mitigation by reducing emissions, and the private interests of the market players to support innovative changes.
Originality/value
To the authors’ knowledge, this study would be the first to offer recent and comprehensive findings on the economic and financial implications of the European Emission Trading Scheme for the three trading phases. Additionally, the research offers time series robustness check besides the standard regression analysis and shows that there is an optimal EUA price that triggers polluters’ decision on emission and generation.