Stern Review Research Articles

The efficacy of Climate Change on Sustainability of Supply Chain Management

Natural hazards are the sudden catastrophic events which destructs the economy (Alcántara- Ayala, 2002) and the consequences of the same affects human system, natural environment and built environment (Beekharry, 2015). Climate change is the common disastrous event affecting human societies (Stern Review, 2006). As the change in climate directly affects supply chain management of products (Dasaklis and Pappis, 2013) and the market demand also fluctuates as well due to price competitive environment (Jena and Jog, 2016). Consequently, focus of this research is to analyze the impact of natural disasters on variables mainly supply chain management, precautions taken during disasters, Tourism Industry and market demand of goods and services. By employing exploratory research design with various statistical tools, it comes up with remarkable results and concludes that Supply chain management is considered as critical one as it is more vulnerable towards disasters and gets inefficient resulting into disruptive supply chain networks.

Managerial ability and climate change exposure

PurposeThis study aims to investigate how a firm's management team's capacity to efficiently use its resources affects the firm's exposure to climate change. Specifically, the authors investigate the intriguing question – does managerial ability affect a firm's climate change exposure?Design/methodology/approachThe authors use an unbalanced panel dataset of 4,230 US based firms listed on Compustat from 2002–2019 and test the hypothesis by panel regression analysis. To mitigate endogeneity concerns, difference-in-differences and instrumental variable approaches are used.FindingsThe baseline analysis shows a negative, statistically significant impact of managerial ability on climate change exposure. The findings hold after controlling for endogeneity using two-stage least squares regression and difference-in-differences tests. The authors find the negative effect is stronger for managers engaged in socially responsible activities, and after climate change issues receiving greater public awareness following the 2006 release of the Stern Review and the 2016 signing of the Paris Accord.Research limitations/implicationsMotivated by the resource-based theory and the natural resource-based view of the firm model, the empirical results support the view that greater managerial ability protects the firm against environmental challenges through efficient use of firm resources. Compared with traditional climate change measures that are plagued by disclosure issues, the use of the Sautner, Van Lent, Vilkov and Zhang's machine learning based dataset utilizing earning conference calls provides stronger, robust findings that will be useful to management and investors in environmental performance assessments.Originality/valueMotivated by the resource-based theory and the natural resource-based view of the firm model, the empirical results support the view that greater managerial ability protects the firm against environmental challenges through efficient use of firm resources. Compared with traditional climate change measures that are plagued by disclosure issues, the use of the machine learning based dataset utilizing earning conference calls provides stronger, robust findings that will be useful to management and investors in environmental performance assessments.

Climate Change and Economic Theory -- A Neo-Ricardian Approach to the Economy of Climate Protection

The Stern Review (2007) is the most comprehensive work to date on anthropogenic climate change from an economic perspective. It caused a general uproar because for the first time a renowned economist recommended the rapid implementation of expensive measures against climate change because hesitation would be even more expensive in the future. Nonetheless, the Stern Review moves in the familiar orbit of neoclassical theory, which supplanted classical theory (Smith, Ricardo, Marx) towards the end of the 19th century and is still dominant in academia today. Neoclassicism has made many contributions to environmental economics, but it seems to fail in the face of climate change. Ecological economics, which has been on the rise since the 1980s and works with the concept of entropy borrowed from physics, has not made any progress here either. If one understands environmental problems as disturbances of natural cycles (of water, carbon, nitrogen, etc.), then in dealing with them one will give preference to an economic theory that also regards the economic process as a material cycle. Piero Sraffa's theory, which follows on from the classical theory, is of this kind. It makes it possible to integrate the carbon cycle into an economic model that includes trading in emission rights with the participation of CO₂ sinks. The model shows that this trade does not generate extra profits, but cuts the profits of CO₂ emitters. It also shows that all CO₂-intensive products would have to be much more expensive in a CO₂-neutral economy than they are today.

Climate change and corporate cash holdings: Global evidence

AbstractUsing data from 41 countries, we provide novel empirical evidence that firms’ cash holdings are positively associated with their climate change exposure. This evidence is robust to different model specifications and survives a battery of tests to ease concerns related to spurious correlation and omitted variable bias. Using the release of the Stern Review as an exogenous shock to climate change awareness, we show that this association becomes significantly stronger after the release of the Review and particularly so for firms with higher exposure to regulatory and transition risk dimensions of climate change as well as financially constrained firms. Overall, results fit consistently within the precautionary motive framework and suggest that firms hold more cash to safeguard against the adverse impact of climate change.

Palliative Care as ma-space Practice.

Palliative care is ma-space practice. 1 Ma (negative space) MA is a Japanese word that can be roughly translated as “gap,” “space,” “pause” or “space between two structural parts.” The spatial concept is experienced progressively through intervals of spatial designation. In Japan, MA, the word for space, suggests interval. It is best described as a consciousness, not in the sense of an enclosed three-dimensional entity, and the simultaneous awareness of form and non-form deriving from gain vision. MA-that's not what creates compositional elements, this occurs in the imagination of the person who experiences these elements. Therefore MA can be defined as experiential place understood with emphasis on interval. MA also has been described as “the emptiness full of possibilities, like a promise not yet fulfilled,” and “the silence between notes that make music” cf. Isaac stern review below. Other illustrations appear in this old poem: Thirty spokes meet in the hub, though the space between them is the essence of the wheel, Pots are formed from clay, however the space inside them is the essence of the pot, Walls with Windows and doors from the house, though the space inside them is the essence of the house. https://en.google-info.org/14904296/1/ma-negative-space.html 1Ma (negative space) MA is a Japanese word that can be roughly translated as “gap,” “space,” “pause” or “space between two structural parts.” The spatial concept is experienced progressively through intervals of spatial designation. In Japan, MA, the word for space, suggests interval. It is best described as a consciousness, not in the sense of an enclosed three-dimensional entity, and the simultaneous awareness of form and non-form deriving from gain vision. MA-that's not what creates compositional elements, this occurs in the imagination of the person who experiences these elements. Therefore MA can be defined as experiential place understood with emphasis on interval. MA also has been described as “the emptiness full of possibilities, like a promise not yet fulfilled,” and “the silence between notes that make music” cf. Isaac stern review below. Other illustrations appear in this old poem: Thirty spokes meet in the hub, though the space between them is the essence of the wheel, Pots are formed from clay, however the space inside them is the essence of the pot, Walls with Windows and doors from the house, though the space inside them is the essence of the house. https://en.google-info.org/14904296/1/ma-negative-space.html It is a privileged praxis in the “between” spaces, the liminal not-yet, the don't know, the often unlit, unmapped “negative” space [as in photo negative] of serious illness and dying. This fruitful space is inaccessible to those seeking only verifiable results and objective knowledge. Ma space is the province of palliative care proper, and particularly of the spiritual care professionals and volunteers on interdisciplinary teams. The nurses’ aides, medics, advocates and academics who pilot this insurgent discipline through the in-between spaces of the canons/canyons of serious illness know it well and revel in its potential for intimacy and connection.

Climate change exposure, risk management and corporate social responsibility: Cross-country evidence

We examine how climate change risk impacts corporate social responsibility using an international firm-level sample. Exploiting a new firm-level measure of climate change risk, we find that firms significantly adjust their CSR standards upwards in response to climate change risk shocks. Using the difference in difference (DiD) approach and natural disaster shocks as plausibly exogenous shocks to climate change risk, we document an increase in CSR performance for affected firms relative to their unaffected peers after severe natural disasters. Additionally, we observe that the sensitivity of CSR performance to climate change risk jumps after the release of the Stern Review and the Paris Agreement. Furthermore, we find that this impact is more pronounced for firms in climate-sensitive sectors, firms with more growth options, firms with higher governance standards, and firms in highly competitive industries. Overall, our findings reveal that climate change uncertainty can trigger firms to invest more in CSR activities to hedge against regulatory and physical risks.

미국, 독일. 일본의 녹색성장정책과 ESG 녹색경영활동 사례연구

환경 및 기후변화의 문제가 지구 전체에 이상적 변화를 야기한 것은 물론 자연생태계의 질서를 근본적으로 교란시켜 지구와 인류의 생존을 위협하고 있다. 1992년 리우선언(the Rio Declaration on Environment and Development)과 1997년 교토의정서(Kyoto protocol, 京都議定書) 및 스턴 보고서(Stern Review) 등에 따르면, 이러한 최악의 세계경제의 결과를 모면하기 위해 기후변화에 대한 인식과 환경교육의 활성화, 저탄소 기술 확보, 에너지 효율성의 향상 등을 위한 대안을 고려해야 한다. 본 연구는 환경문제에 대한 주요 이슈분석과 함께 선진국인 미국, 독일 일본 등의 녹색성장정책과 및 결과를 체계적으로 검토 및 비교하고자 한다. 나아가서 본 연구는 국제적으로 그린경영전책을 선도하는 P&G와 3M에 대한 문헌 및 사례연구를 통해 실용적 및 응용적 시사점을 찾고자 한다.

Blockchain solutions for carbon markets are nearing maturity

Blockchain solutions for carbon markets are nearing maturity

Research on climate change and migration where are we and where are we going?

Abstract Today the issue of climate change-induced mobility—whether displacement, migration, or relocation—is receiving increased interest from policy-makers, academics, and the general public. Many are turning to the academic community for answers to basic questions (how many people are expected to move? when? where?) and for directions for future policies (what measures can support people to remain in their communities? If people have to move, how can the disruption be minimized—for those moving and for the affected communities?). While there is a growing body of literature on the issue, the academic community writ large is presently unable to provide consistent comprehensive evidence or guidance on these issues. Most obviously, there is no consensus about what terminology to use—climate change refugee? Environmental migrant? [e.g. Dun and Gemenne 2008. ‘Defining Environmental Migration’, Forced Migration Review, 31: 10–11]. Nor is there consensus on how many people are expected to move; different research projects use different time frames (2030, 2050, 2100, etc.), are based on different assumptions, and (not surprisingly) come up with different estimates, ranging from 50 million to 1 billion migrants associated with the effects of climate change during this century [e.g. Stern, N. (2006) ‘Stern review on the economics of climate change. Executive Summary’. London: HM Treasury. Baird 2007. Human Tide: The Real Migration Crisis: A Christian Aid Report. London: Christian Aid; UN Development Programme (UNDP) (2007/2008). Human Development Report: Fighting Climate Change, Human Solidarity in a Divided World; Kolmannskog 2009, Climate Change, Disaster, Displacement and Migration: Initial Evidence from Africa. New Issues in Refuge Research (Research Paper No. 180). Geneva: UNHCR; Warner 2009. Global Environmental Change and Migration: Governance Challenges. Global Environmental Change].

Nordhaus on philosophy in climate change economics

Nordhaus' contribution to climate change economics is well-known and, for many, praiseworthy. But his refusal to acknowledge his normative stances is philosophically problematic. This article explores his arguments about philosophy in the economics of climate change found in his review of the Stern's Review (2007). It concludes that Nordhaus nonetheless relies on normative, ethical assumptions, whose oversight hinders the finding of a solution to the problems he tries himself to solve.

Impacts of Environmental Changes on Health in the Gulf Region

From the mid-20th century, there has been quite a radical change in environmental and climate patterns regionally as well as globally. The reason behind these changes is primarily linked to deforestation, industrialization, expanded use of fossil fuels, and the extreme production of carbon dioxide (CO2) in the atmosphere. The environment comprises the surrounding conditions such as the complex of biological, physical, and chemical factors that act upon the ecological community and ultimately determine its form and survival. Environmental change encompasses the disturbances caused either by ecological processes or by the human influence which can be in the form of man-made disasters including but not limited to wars, oil spills, pollution, cyclones, etc. Environmental changes are a huge threat to humanity as a whole. These changes can be detrimental to health in a multitude of ways. Most significant ones being exacerbating existing health conditions or causing unforeseen health problems. These environmental changes affect human health by polluting the air we breathe, the water we drink, and the food that we eat. As a result of accelerated progressions in technology, active industrialization, ongoing wars, irrational use of pollutants like petroleum, etc., the whole of our planet is susceptible to environmental changes, but some areas like the Gulf region have been more sensitive to these.
 The gulf has shown climate deviations that have transmuted into various environmental extremes such as rising sea levels, melting of the arctic ice caps, droughts, and floods. According to the widely cited, "The Stern Review", a temperature rise of 2 degrees Celsius will see a 20-30% decrease in water availability in one of the regions of the globe, and a 4 Celsius rise will result in up to 50% decrease in water availability1. The latest example of this is Kuwait; where due to the environmental changes world's most scorching day was recorded recently in 20192.The Gulf region is the largest producer of oil and gas in the world fulfilling 1/3rd of the world’s needs. According to world bank statistics, UAE, Saudi Arab, and Qatar produce around 22.9, 19.4 & 43.9 metric tons of CO2 per capita against the global average of 5.0 metric tons of CO2 per capita. These materials when processed to make electricity and other products release greenhouse gasses which are highly susceptible to environmental changes that have a direct or indirect effect on the health in the region. The byproducts include particulate matter (PM2.5) that cause chronic respiratory diseases and also aggravate the asthma condition in many. Furthermore, the overall increase in urban smog also has an impact on the psychological health of a human being by making the environment dark and hazy.

Fundamental utilitarianism and intergenerational equity with extinction discounting

Ramsey famously condemned discounting “future enjoyments” as “ethically indefensible”. Suppes enunciated an equity criterion which, when social choice is utilitarian, implies giving equal weight to all individuals’ utilities. By contrast, Arrow (Contemporary economic issues. International Economic Association Series. Palgrave Macmillan, London, 1999a; Discounting and Intergenerational Effects, Resources for the Future Press, Washington DC, 1999b) accepted, perhaps reluctantly, what he called Koopmans’ (Econometrica 28(2):287–309, 1960) “strong argument” implying that no equitable preference ordering exists for a sufficiently unrestricted domain of infinite utility streams. Here we derive an equitable utilitarian objective for a finite population based on a version of the Vickrey–Harsanyi original position, where there is an equal probability of becoming each person. For a potentially infinite population facing an exogenous stochastic process of extinction, an equitable extinction biased original position requires equal conditional probabilities, given that the individual’s generation survives the extinction process. Such a position is well-defined if and only if survival probabilities decline fast enough for the expected total number of individuals who can ever live to be finite. Then, provided that each individual’s utility is bounded both above and below, maximizing expected “extinction discounted” total utility—as advocated, inter alia, by the Stern Review on climate change—provides a coherent and dynamically consistent equitable objective, even when the population size of each generation can be chosen.

ParthaDasgupta, Time and the Generations: Population Ethics for a Diminishing Planet. New York: Columbia University Press, 2019. xliv + 296 p. $28.00

ParthaDasgupta, Time and the Generations: Population Ethics for a Diminishing Planet. New York: Columbia University Press, 2019. xliv + 296 p. $28.00

People and culture, creating a resilient work force through workplace coaching. Reflections and lessons from a small rural health experience

Climate change is the greatest example of market failure the world has ever seen according to the Stern Review on the Economics of Climate Change in 2006. This type of market failure, termed externality in economics, leads to an inefficient use of a society’s resources, so-called suboptimal allocation of resources. As a result, welfare of this society is smaller than what could be achieved. Environmental externalities arise not only from climate change but also from changes of air, water, and soil quality, inducing impacts on human health, the built environment, and ecosystems.

An inconvenient cost: The effects of climate change on municipal bonds

Counties more likely to be affected by climate change pay more in underwriting fees and initial yields to issue long-term municipal bonds compared to counties unlikely to be affected by climate change. This difference disappears when comparing short-term municipal bonds, implying the market prices climate change risks for long-term securities only. Higher issuance costs for climate risk counties are driven by bonds with lower credit ratings. Investor attention is a driving factor, as the difference in issuance costs on bonds issued by climate and nonclimate affected counties increases after the release of the 2006 Stern Review on climate change.

The scholarship of teaching and learning and pedagogic research within the disciplines: should it be included in the research excellence framework?

ABSTRACTThis paper is a response to Cotton, Miller and Kneale’s 2017 paper on the current state of higher education research within UK universities. It seeks to contribute to the debate surrounding the inclusion of pedagogic research (PedR) via SoTL in the UK’s Research Excellence Framework (REF) in the context of researchers who reside within a disciplinary context. The inclusion of PedR in the REF continues to be contentious, despite recommendations in the Stern Report which could make its inclusion more feasible. This paper focuses on PedR which is conducted, published and disseminated by academics situated within Life Science departments, rather than Schools of Education. The twenty-one teaching-focused academics in this study discussed their commitment to PedR integral to their academic identity, the challenges they faced in carrying out PedR, and their thoughts on REF 2014. Their opinions and conclusions give food for thought on decisions regarding inclusion of PedR in REF 2021.

THE ECONOMICS OF MITIGATING CLIMATE CHANGE: WHAT CAN WE KNOW?

The long-term economics of mitigating climate change over the long run has played a high profile role in the most important analyses of climate change in the last decade, namely the Stern Report and the IPCC’s Fourth Assessment. However, the various kinds of uncertainties that affect these economic results raise serious questions about whether or not the net costs and benefits of mitigating climate change over periods as long as 50 to 100 years can be known to such a level of accuracy that they should be reported to policymakers and the public. This paper provides a detailed analysis of the derivation of these estimates of the long-term economic costs and benefits of mitigation. It particularly focuses on the role of technological change, especially for energy efficiency technologies, in making the net economic results of mitigating climate change unknowable over the long run. Because of these serious technical problems, policymakers should not base climate change mitigation policy on the estimated net economic impacts computed by integrated assessment models. Rather, mitigation policies must be forcefully implemented anyway given the actual physical climate change crisis, in spite of the many uncertainties involved in trying to predict the net economics of doing so.

REF impact and the discipline of politics and international studies

On 22–23 November 2016, the Department of Politics and International Studies (PAIS) at the University of Warwick hosted a lively conference on research ‘impact’, a key component of the Research Excellence Framework (REF)—the periodic peer review in UK Higher Education to evaluate the quality of academic work, in turn determining how nearly £2 billion of annual research funding is allocated among competing institutions. In contrast to many other conferences and workshops about impact, a feature of REF that has generated much fevered commentary across the university sector about the public value of academic research, our event was tightly focused on impact as it relates to the discipline of Politics and International Studies. Featuring presentations from a range of academic and non-academic constituencies—including journalists, government officials, and representatives from the Higher Education Funding Council for England (HEFCE),1 the creator and (at the time of writing) controller of the REF—conversation was particularly timely, owing to the publication, a few months earlier, of the eagerly awaited Stern Review on the future of university research assessment. This special issue contains selected papers from the conference, with the goal of shedding light on how the discipline as a whole, but also its varied composite parts, is responding to the impact agenda in the lead up to REF2021, now looming close on the horizon. We are grateful to the contributors for their participation and for opening up many new facets to the ongoing dialogue about impact.

Stern review on the economics of climate change: implications for Bangladesh

PurposeThe purpose of this study is to investigate the impact of climate change on economic development in Bangladesh. More specifically, the research aims to figure out the influence of climate change on gross domestic product (GDP) growth rate related to different sectors such as agriculture, forest, water, health and infrastructure. It also attempts to explore the effect of climate change on the coastal economy of Bangladesh.Design/methodology/approachA set of statistical and econometric techniques, including descriptive and correlation analysis and time series regression model, was applied to address the objective of the research. Sector-wise time series economic data were collected from the World Bank for the period between 1971 and 2013. Climate data were received from the Bangladesh Agricultural Research Council online database for the period between 1948 and 2013.FindingsThe results from the statistical analysis show that climate variables such as temperature and rainfall have changed between 1948 and 2013 in the context of Bangladesh. The econometric regression analysis demonstrates that an increase by 1°C of annual mean temperature leads to a decrease in the GDP growth rate by 0.44 per cent on average, which is statistically significant at the 5 per cent level. On the other hand, the estimated coefficients of agriculture, industry, services, urbanization and export are positively associated with GDP growth rate, and these are statistically significant at the 1 per cent level. Sector-wise correlation analysis provides statistical evidence that climate change is negatively associated with various sectors, such as agriculture, forest, human health and arable land. In contrast, it has a positive relation to water access and electricity consumption. Analysis of coastal regions shows that climate change negatively affects the local economic sectors of the coastal zone of the country.Originality/valueAlthough this study has received significant insight from the world-renowned research publication “The Economics of Climate Change: The Stern Review”, there is a dearth of research on the economic impact of climate change in the context of Bangladesh. The findings of the paper provide deep insight into and comprehensive views of policy makers on the impact of climate change on economic growth and various sectors in Bangladesh.

An Inconvenient Cost: The Effects of Climate Change on Municipal Bonds

Counties more likely to be affected by climate change pay more in underwriting fees and initial yields to issue long-term municipal bonds compared to counties unlikely to be affected by climate change. This difference disappears when comparing short-term municipal bonds, implying the market prices climate change risks for long-term securities only. Higher issuance costs for climate risk counties are driven by bonds with lower credit ratings. Investor attention is a driving factor, as the difference in issuance costs on bonds issued by climate and non-climate affected counties increases after the release of the 2006 Stern Review on climate change.