At its November 2018 annual meeting, the Roundtable on Sustainable Palm Oil (RSPO) approved a new version of its foundational rules that advocates argued made it a zero-deforestation standard. Using a combination of over 160 key informant interviews and archival analysis, we argue that actors in the RSPO orbit made the High Carbon Stock Approach - a new method for defining forest boundaries that features heavy use of satellite data - attractive by blending cooperative and competitive strategies in a pattern known as coopetition. Critical stakeholders pushed leading companies into a competition for legitimacy that spurred innovations outside of the Roundtable setting. In turn, however, these firms also used relationships established through the RSPO Roundtable - cooperating - to elaborate guidelines and tools for defining forest areas, pursuing supply chain traceability and engaging in supplier transformation. This cooperation helped zero-deforestation strategies to emerge outside the organization. In response, stakeholders with sunk investments in RSPO membership reincorporated those external tools into the standard by framing them as consistent with the institution's fundamental logics. This case provides a compelling example of how coopetition can lead to norm emergence in a contentious governance arena, allowing a combination of internal and external actors to steer institutional development. We argue that this strategy could be employed to stimulate increased rigor in environmental standards.

Energy transitions in Indigenous, Northern and remote communities in Canada promise benefits that go beyond reliable, clean and affordable energy services. The Federal and Provincial governments have committed funding to get remote communities off diesel, acknowledging energy transitions' global and local benefits. Besides climate change mitigation, other benefits, including job creation, income generation, community ownership and local economic growth, are fundamental components of the value proposition of renewable energy projects. However, despite the promises, little evidence of the impacts of renewable energy on communities' local conditions exists. This article looks at the relationship between renewable energy projects and community well-being in Canada. We construct a panel of Indigenous communities and well-being levels using Census data and information about renewable energy projects for the period 1981–2016. The findings suggest that renewable energy is associated with higher levels of well-being. Concretely, having access to renewable energy increases overall well-being by 1 to 5 points on the 0–100 well-being scale, depending on the component of the well-being index considered in the analysis.

The effects of climate change on the economy are becoming increasingly evident. Based on information of all newly registered enterprises in China from 2000 to 2019, we discuss the relationship between heatwave and entrepreneurial activities at county level. Results indicate that extremely high temperatures can negatively affect entrepreneurial activities. Moreover, after considering endogeneity issues and conducting a series of robustness checks, the conclusion remains. In addition, mechanism testing shows that extremely high temperatures reduce the attractiveness of entrepreneurship by generating fiscal pressure effects, industrial dependence effects, and leading demonstration effects. Finally, heterogeneity analysis indicates that the adverse effects of extremely high temperatures will be alleviated in areas with large populations and high levels of education and healthcare. Different from the relief effect brought by the vigorous development of the secondary and tertiary industries, regions that rely more on the primary industry suffer more severe damage.

Farmers facing a durable change in climate conditions may autonomously adapt through the intensive margin, the extensive margin, or through the adoption of new practices. Based on a coupling between a microeconomic model of European agriculture (AROPAj) and a crop model (STICS), this article investigates the potential distributional impacts of farm-level autonomous adaptation to climate change within the European Union (EU-27). Considering the representative concentration pathway (RCP) 4.5 of the second report on emission scenario of the fifth assessment report (SRES AR5), we implement two levels of autonomous adaptation for farmers, and three time horizons. The results indicate that ceteris paribus, climate change may lead in terms of social welfare to a slightly worse situation in the middle term and a slightly better situation in the long term with respect to the present. However, the ranking of agents in the distribution is importantly impacted. Our Shapley inequality decomposition shows that income inequality is largely explained by the region and type of farming. Climate change barely affects the marginal contribution of these two characteristics to overall income inequality.

Climate change is impacting the frequency and severity of physical risks such as wildfire, flood, cyclone and extreme precipitation. This is changing both the costs and benefits of home insurance purchase for households—leading to uncertainty about future insurance uptake rates under climate change. We use disaggregated data for Australia on the likelihood of climate hazards, and household panel data, to model the relationship between insurance uptake and exposure to climate physical risks. This model is then used to project insurance purchase out to 2100 under three climate scenarios. We find that exposure to climate risks does influence the likelihood of purchasing insurance. While for most hazards higher risk reduces the likelihood of purchase, there are exceptions, and the relationship is often complex. Projections from our model indicate that insurance coverage is likely to decline relatively modestly, by around one percentage point across Australia from 2000 to 2100 as a result of climate change. However, we find there is significant variation across regions.

We propose a methodological framework to assess the causal impact of Harmful Algal Bloom (HAB) events on economic indicators at a territorial level, with special consideration for spatial effects. Using the Mar Menor region in Spain as a case study, we empirically apply our framework. Our findings indicate a significantly negative causal effect of marine pollution resulting from HAB events on income per capita at the census section level. We observe that this effect is exacerbated by spatial interactions among neighboring census sections adjacent to those directly affected by seawater degradation. These results underscore the importance of implementing effective environmental regulations to mitigate seawater pollution and proactive measures to safeguard the well-being of local populations. Our research provides valuable insights for future studies in similar coastal regions.

In Côte d'Ivoire and Ghana, many small-scale cocoa producers cultivate cocoa in unshaded or low-shaded plots, leading to challenges such as reduced biodiversity, soil fertility depletion, and increased soil erosion. To assess the adoption of sustainable agricultural practices in the cocoa sector, we develop a scale that incorporates dimensions of agroforestry, soil conservation, pest and disease management and farm sanitation. Using data from >1700 cocoa producers, we examine farmer participation in cooperatives and three main certification schemes (incl. Fairtrade, Rainforest Alliance and Organic) to understand their roles in promoting sustainable practices. We apply a multinomial endogenous switching regression model to control for potential selection bias and estimate the impact of participating in certification schemes, farmer cooperatives or both. In Côte d'Ivoire, econometric results show that joint participation in both a certification scheme and a farmer cooperative is associated with a significantly higher sustainability score. In Ghana, certification scheme membership shows the highest effect.

There is an ongoing debate on complementary currencies’ (CCs) contribution to a transition towards resilient and sustainable economies. As part of this debate, this paper investigates which factors lead to significant acceptance and sufficient growth of a CC from a bottom-up perspective, i.e., based on its members’ decisions. First, we identify the benefits and costs driving firms’ use of CCs and find four factors that constitute a trade-off: credit gains, reciprocity expectations, coordination costs, and intrinsic motivations. Second, we use an agent-based model to explore how these elements determine CCs’ success as a network. Our key finding is that the coupling of intrinsic motivation with preferential attachment – a phenomenon where members are more likely to transact with each other rather than with outsiders – may be the key to growth and acceptance: these results suggest that intrinsic motivation provides an incentive to join the network, but preferential attachment is the emerging economic rationale that drives firms’ acceptance of CCs. The identified trade-off and the theory of intrinsic motivation-preferential attachment provide new avenues to investigate under what conditions CCs contribute to resilient economies.

The IPCC's 6th assessment report (AR6) has provided a wide range of variables and scenarios that meet climate targets of varying ambition. Many variables reported in the AR6 affect human welfare through climate change and mitigation, including but not limited to economic output, the natural environment, human health, and food and energy supply. In some of these dimensions, trade-offs exist between better performance in welfare-relevant dimensions and reaching more ambitious climate targets. Here, we apply recent advances in the theoretical multidimensional measurement of welfare, like the Human Development Index, to the AR6 database. The welfare metric is based on a welfare function approach, simple to apply, and intuitive. We apply a range of specifications of the welfare metric, aiming to derive robust rankings of climate policy targets that perform best in terms of the multidimensional welfare index. Across a large range of weights on welfare-relevant variables, we find that lower temperature is associated with higher welfare in 2100 unless there is a high weight on food supply.

Drained peatland currently contributes 7.5% of Germany's total national greenhouse gas emissions. The National Peatland Protection Strategy adopted by the German government in 2022 recognizes that these emissions need to be reduced significantly to meet the country's climate change mitigation commitments. The present study employs a global dynamic computable general equilibrium model to assess the economic and greenhouse gas emission impacts of alternative agriculture-focused peatland rewetting scenarios for Germany up to 2030. In contrast to partial-analytic approaches, the global general equilibrium approach allows to take consistent account of economic ripple-on effects and carbon leakage effects triggered by peatland rewetting. The results suggest that in the medium term towards 2030 a reduction in annual emissions from agricultural peatland use by up to 45% are attainable at marginal private abatement costs between 27 and 61 Euro/tCO2e. Carbon leakage effects due to induced indirect land use change in Germany and the rest of the European Union reduce the global net emission reduction impact by 0.7 to 1.0% of the direct emission reduction. The effects on food prices remain small in all scenarios. In conclusion, a sizable reduction of Germany's land-use-related emissions is achievable at a low macroeconomic cost by moving beyond the moderate ambitions of the National Peatland Restoration Strategy.