Geoengineering as an alternative to mitigation: specification and dynamic implications

Geoengineering, i.e. the use of artificial techniques aiming at cooling the planet, is increasingly considered as a realistic alternative to emission mitigation. Several methods are promising for their capacity to quickly halt global warming at a moderate cost. Such cheap technologies might be very beneficial to countries profoundly affected by global warming. In this paper, I propose a dynamic model in which geoengineering is introduced as an alternative to mitigation. Contrary to abatement, geoengineering is fast and cheap, but requires a large initial investment in research and development. Within this framework, I confirm the fear which is common among geoengineering opponents: abatement is reduced if geoengineering is expected to be available in the future. The long-run implications of the model are also alarming as geoengineering will not be undertaken progressively. The sudden implementation of geoengineering, together with the sharp jump in temperature induced, may disturb climate equilibrium and fragile ecosystems. Furthermore, the availability of geoengineering will exacerbate intergenerational issues: while current generations will anticipate the use of geoengineering by increasing their emissions, future generations will have to reduce their emissions, to bear the cost of sustaining geoengineering for centuries and to suffer from its negative side-effects.Geoengineering; Abatement; Climate change; Global warming; R&D; Intergenerational issues

Should prevention campaigns disclose the transmission rate of HIV/AIDS? Theory and evidence from Burundi

Among non-specialists, the estimates of the HIV/AIDS transmission rate are generally upwardly biased. This overestimation may be perceived as a godsend, as it increases the incentives to have protected sexual relationships. However, a pernicious effect may counterbalance this positive effect. Combined with the overestimation of the transmission rate, an occasional unprotected sexual encounter may induce the feeling that “the die is cast”, and hence lead to a permanent neglect of condom use. In this paper, I construct a model that reflects such insidious and unexpected behavior. I calculate that the optimal transmission rate to be disclosed for safer sexual practices ranges between 5 % and 24.9 %.HIV/AIDS, transmission rate, prevention, risk perception, condom, Burundi

Geoengineering as an alternative to mitigation: specification and dynamic implications

Geoengineering, i.e. the use of artificial techniques aiming at cooling the planet, is increasingly considered as a realistic alternative to emission mitigation. Several methods are promising for their capacity to quickly halt global warming at a moderate cost. Such cheap technologies might be very beneficial to countries profoundly affected by global warming. In this paper, I propose a dynamic model in which geoengineering is introduced as an alternative to mitigation. Contrary to abatement, geoengineering is fast and cheap, but requires a large initial investment in research and development. Within this framework, I confirm the fear which is common among geoengineering opponents: abatement is reduced if geoengineering is expected to be available in the future. The long-run implications of the model are also alarming as geoengineering will not be undertaken progressively. The sudden implementation of geoengineering, together with the sharp jump in temperature induced, may disturb climate equilibrium and fragile ecosystems. Furthermore, the availability of geoengineering will exacerbate intergenerational issues: while current generations will anticipate the use of geoengineering by increasing their emissions, future generations will have to reduce their emissions, to bear the cost of sustaining geoengineering for centuries and to suffer from its negative side-effects.Geoengineering, Abatement, Climate change, Global warming, R&D, Intergenerational issues

Geoengineering as an alternative to mitigation: specification and dynamic implications

Geoengineering, i.e. the use of artificial techniques aiming at cooling the planet, is increasingly considered as a realistic alternative to emission mitigation. Several methods are promising for their capacity to quickly halt global warming at a moderate cost. Such cheap technologies might be very beneficial to countries profoundly affected by global warming. In this paper, I propose a dynamic model in which geoengineering is introduced as an alternative to mitigation. Contrary to abatement, geoengineering is fast and cheap, but requires a large initial investment in research and development. Within this framework, I confirm the fear which is common among geoengineering opponents: abatement is reduced if geoengineering is expected to be available in the future. The long-run implications of the model are also alarming as geoengineering will not be undertaken progressively. The sudden implementation of geoengineering, together with the sharp jump in temperature induced, may disturb climate equilibrium and fragile ecosystems. Furthermore, the availability of geoengineering will exacerbate intergenerational issues: while current generations will anticipate the use of geoengineering by increasing their emissions, future generations will have to reduce their emissions, to bear the cost of sustaining geoengineering for centuries and to suffer from its negative side-effects

Poverty without poverty line

I propose a new cardinal measure of poverty, which builds on the intuitive notion that a person with half the income of another is twice as poor. Mathematically, this implies that poverty is the reciprocal of income. The resulting aggregate measure has a simple interpretation: it is the average number of days needed to get a reference level of income. I call the measure average poorness, to reflect the fact that poverty is a spectrum and not a binary status. The new measure has excellent properties, being additively decomposable in population subgroups, fully accounting for the depth and severity of poverty, and generating orderings and comparisons that are robust to the choice of reference level of income. Using data from a survey experiment, I show that the new measure is consistent with how a majority of experts and members of the public think about poverty

Cash transfers and micro-enterprise performance: theory and quasi-experimental evidence from Kenya

Theoretically, the welfare effects of cash-based assistance depend on how businesses respond to the demand shock and on resulting effects on prices. Such market effects have been largely overlooked in the literature. In this study, we examine the business and price effects of cash-based assistance to refugees in Kenya. Monthly restricted cash transfers worth 3 to 13 dollars were provided to 400,000 refugees in the form of digital money exclusively usable for food purchases at licensed shops. We show that licensed businesses have much higher revenues (+175%) and profits (+154%) and charge higher prices than unlicensed businesses. In line with theory, the restricted cash transfer program created a parallel retail market in which a limited number of businesses enjoy high market power. The theoretical and empirical results provide a cautionary tale highlighting the drawbacks of setting up a less competitive, parallel market to distribute cash-based assistance

Taking poverty seriously in assessing the global welfare burden of the pandemic

Global welfare has taken a turn for the worse in the age of COVID, with both health and income levels under threat. Francisco Ferreira (LSE), Olivier Sterck (University of Oxford), Daniel Gerszon Mahler, and Benoit Decerf (World Bank) estimate the worldwide mortality and poverty generated by the pandemic and compare these two sources of welfare losses by expressing them in a common metric: years of human life. For most poor and middle-income countries, greater economic deprivation has been a more important source of loss in well-being than premature death

COVID-19: poverty has led to greater welfare loss than ill health in many low-income countries

Global welfare has taken a turn for the worse in the age of COVID, with both health and income levels under threat. Francisco Ferreira, Olivier Sterck, Daniel Gerszon Mahler, and Benoit Decerf estimate the worldwide mortality and poverty generated by the pandemic and compare these two sources of welfare losses by expressing them in a common metric: years of human life. Their analysis shows that for most poor and middle-income countries, greater economic deprivation has been a more important source of loss in well-being than premature death

Lives and livelihoods: estimates of the global mortality and poverty effects of the Covid-19 pandemic

This paper evaluates the global welfare consequences of increases in mortality and poverty generated by the Covid-19 pandemic. Increases in mortality are measured in terms of the number of years of life lost (LY) to the pandemic. Additional years spent in poverty (PY) are conservatively estimated using growth estimates for 2020 and two dif-ferent scenarios for its distributional characteristics. Using years of life as a welfare metric yields a single parameter that captures the underlying trade-off between lives and livelihoods: how many PYs have the same welfare cost as one LY. Taking an agnostic view of this parameter, estimates of LYs and PYs are compared across countries for different scenarios. Three main findings arise. First, as of early June 2020, the pandemic (and the observed private and policy responses) has generated at least 68 million additional poverty years and 4.3 million years of life lost across 150 countries. The ratio of PYs to LYs is very large in most coun-tries, suggesting that the poverty consequences of the crisis are of paramount importance. Second, this ratio declines systematically with GDP per capita: poverty accounts for a much greater share of the welfare costs in poorer countries. Finally, the dominance of poverty over mortality is reversed in a counterfactual “herd immunity” scenario: without any policy intervention, LYs tend to be greater than PYs, and the overall welfare losses are greater