Nowcasting industrial production using linear and non-linear models of electricity demand

This article proposes different modelling approaches which exploit electricity market data to nowcast industrial production. Our models include linear, mixed-data sampling (MIDAS), Markov-Switching (MS) and MS-MIDAS regressions. Comparisons against autoregressive approaches and other commonly used macroeconomic predictors show that electricity market data combined with an MS model significantly improve nowcasting performance, especially during turbulent economic states, such as those generated by the recent COVID-19 pandemic. The most promising results are provided by an MS model which identifies two volatility regimes. These results confirm that electricity market data provide timely and easy-to-access information for nowcasting macroeconomic variables, especially when it is most valuable, i.e. during times of crisis and uncertainty

The natural capital approach to integrating science, economics and policy into decisions affecting the natural environment

This is the final version. Available on open access from Cambridge University Press via the DOI in this recordNatural capital refers to those stocks of assets provided for free by nature which, directly or indirectly, deliver well-being for humans. These include freshwater, fertile soils, clean air and living things. Natural capital stocks deliver flows of services, often called ecosystem services, which (often in combination with flows from other capital including human labour, ingenuity and manufactured goods) produce the benefits upon which humans depend for economic well-being and their very existence. Economic activity depends on natural capital while also affecting the stock of those assets. This relationship between the environment, the economy and human well-being has caught the attention of governments at both global and national levels. But how should governments incorporate the notion of natural capital into policy- and decision-making? We set out to define the notion of natural capital and how it can be brought into the economic analyses which underpin the majority of policy decision-making systems. We consider the means by which changes can be best directed to reflect the underlying science of the environment, the incentives of the economy and the preferences of society.Natural Environment Research Council (NERC

Large changes in Great Britain’s vegetation and agricultural land-use predicted under unmitigated climate change

This is the author accepted manuscript. The final version is available from IOP Publishing via the DOI in this recordData availability: The parameter values used for JULES is available from the suite u-ao645 and branch ‘full_UK’ on the Rosie repository: https://code.metoffice.gov.uk/trac/roses-u (registration required). The data that support the findings of this study are openly available at DOI.The impact of climate change on vegetation including agricultural production has been the focus of many studies. Climate change is expected to have heterogeneous effects across locations globally, and the diversity of land uses characterising Great Britain (GB) presents a unique opportunity to test methods for assessing climate change effects and impacts. GB is a relatively cool and damp country, hence, the warmer and generally drier growing season conditions projected for the future are expected to increase arable production. Here we use state-of-the-art, kilometre-scale climate change scenarios to drive a land surface model (JULES; Joint UK Land Environment Simulator) and an ECOnometric AGricultural land use model (ECO-AG). Under unmitigated climate change, by the end of the century, the growing season in GB is projected to get >5°C warmer and 140 mm drier on average. Rising levels of atmospheric CO2 are predicted to counteract the generally negative impacts of climate change on vegetation productivity in JULES. Given sufficient precipitation, warming favours higher value arable production over grassland agriculture, causing a predicted westward expansion of arable farming in ECO-AG. However, drying in the East and Southeast, without any CO2 fertilisation effect, is severe enough to cause a predicted reversion from arable to grassland farming. Irrigation, if implemented, could maintain this land in arable production. However, the predicted irrigation demand of ~200 mm (per growing season) in many locations is comparable to annual predicted runoff, potentially demanding large-scale redistribution of water between seasons and/or across the country. The strength of the CO2 fertilisation effect emerges as a crucial uncertainty in projecting the impact of climate change on GB vegetation, especially farming land-use decisions.Natural Environment Research Council (NERC)Joint UK BEIS/Defra Met Office Hadley Centre Climate Programm

Shifts in national land use and food production in Great Britain after a climate tipping point

This is the author accepted manuscript. The final version is available from Nature Research via the DOI in this recordData availability: The modelled output data that support the findings of this study are openly available from: Smith, G. S. & Ritchie, P. D. L. (NERC Environmental Information Data Centre: 639 doi.org/10.5285/e1c1dbcf-2f37-429b-af19-a730f98600f6, 2019).Climate change is expected to impact agricultural land use. Steadily accumulating changes in temperature and water availability can alter the relative profitability of different farming activities and promote land use changes. There is also potential for high-impact ‘climate tipping points’ where abrupt, non-linear change in climate occurs - such as the potential collapse of the Atlantic Meridional Overturning Circulation (AMOC). Here, using data from Great Britain, we develop a methodology to analyse the impacts of a climate tipping point on land use and economic outcomes for agriculture. We show that economic/land use impacts of such a tipping point are likely to include widespread cessation of arable farming with losses of agricultural output, an order of magnitude larger than the impacts of climate change without an AMOC collapse. The agricultural effects of AMOC collapse could be ameliorated by technological adaptations such as widespread irrigation, but the amount of water required and the costs appear prohibitive in this instance.Natural Environment Research Council (NERC)Alan Turing Institut

Natural capital approaches for the optimal design of policies for nature recovery

By embedding a spatially explicit ecosystem services modelling tool within a policy simulator we examine the insights that natural capital analysis can bring to the design of policies for nature recovery. Our study is illustrated through a case example of policies incentivising the establishment of new natural habitat in England. We find that a policy mirroring the current practice of offering payments per hectare of habitat creation fails to break even, delivering less value in improved flows of ecosystem services than public money spent and only 26% of that which is theoretically achievable. Using optimization methods, we discover that progressively more efficient outcomes are delivered by policies that optimally price activities (34%), quantities of environmental change (55%) and ecosystem service value flows (81%). Further, we show that additionally attaining targets for unmonetized ecosystem services (in our case, biodiversity) demands trade-offs in delivery of monetized services. For some policy instruments it is not even possible to achieve the targets. Finally, we establish that extending policy instruments to offer payments for unmonetized services delivers target-achieving and value-maximizing policy designs. Our findings reveal that policy design is of first-order importance in determining the efficiency and efficacy of programmes pursuing nature recovery. This article is part of the theme issue ‘Bringing nature into decision-making’

The potential of metering roundabouts: influence in transportation externalities

Roundabouts are increasingly being used on busy arterial streets for traffic calming purposes. However, if one roundabout leg is near a distribution hub, e.g. parking areas of shopping centers, the entry traffic volumes will be particularly high in peak hours. This paper investigated a partial-metering based strategy to reduce traffic-related costs in a corridor. Specifically, the resulting traffic performance, energy, environmental and exposure impacts associated with access roundabouts were studied in an urban commercial area, namely: a) to characterize corridor operations in terms of link-specific travel time, fuel consumption, carbon dioxide and nitrogen oxides emissions, and noise costs; b) to propose an optimization model to minimize above outputs; and c) to demonstrate the model applicability under different traffic demand and directional splits combinations. Traffic, noise and vehicle dynamics data were collected from a corridor with roundabouts and signalized intersections near a commercial area of Guimarães, Portugal. Microscopic traffic and emission modeling platforms were used to model traffic operations and estimate pollutant emissions, respectively. Traffic noise was estimated with a semi-dynamical model. Link-based cost functions were developed based on the integrated modeling structure. Lastly, a Sequential quadratic programming type approach was applied to find optimal timing settings. The benefit of the partial-metering system, in terms of costs, could be up to 13% with observed traffic volumes. The efficiency of the proposed system increased as entering traffic at the metered approaches increased (~7% less costs). The findings let one to quantify metering benefits near shopping areas

Formazione esterna: tirocini, stage e studi all'estero

Il saggio analizza - attraverso l'elaborazione di dati empirici di Almalaurea - il processo in forza al quale la formazione universitaria si svolge, in epoca curriculare, esternamente all'universit\ue0, con accesso al mondo aziendale e all'estero, sottolineando il valore che tale processo ha per gli studenti e per le impres