Carbon Tail Risk

2020 ◽  
Author(s):  
Emirhan Ilhan ◽  
Zacharias Sautner ◽  
Grigory Vilkov
Keyword(s):  
Climate Change ◽  
Business Models ◽  
Policy Uncertainty ◽  
Tail Risk ◽  
Climate Regulation ◽  
Combat Climate Change ◽  
The Cost ◽  
The Impact ◽  
Cost Of Protection ◽  
Regulatory Actions

Abstract Strong regulatory actions are needed to combat climate change, but climate policy uncertainty makes it difficult for investors to quantify the impact of future climate regulation. We show that such uncertainty is priced in the option market. The cost of option protection against downside tail risks is larger for firms with more carbon-intense business models. For carbon-intense firms, the cost of protection against downside tail risk is magnified at times when the public’s attention to climate change spikes, and it decreased after the election of climate change skeptic President Trump.

From statistics, through new requirements to mathematical modelling of SAT aircraft safety

2018 ◽  
Vol 90 (4) ◽  
pp. 659-666
Author(s):  
Bartosz Dziugiel ◽  
Zdobyslaw Jan Goraj
Keyword(s):  
Mathematical Model ◽  
Business Models ◽  
Federal Aviation Administration ◽  
Safety Level ◽  
Content Type ◽  
Technical Specifications ◽  
Safety Estimation ◽  
The Cost ◽  
The Impact ◽  
Small Aircraft

Purpose The purpose of this study is to investigate the influence of the technical and operational specifications of the Small Aircraft Transport System (SAT/SATS) to the achieved safety level. Design/methodology/approach Safety estimation was made with the use of mathematical model of safety of light aircraft in commercial operations developed on the basis of Federal Aviation Administration (FAA) data. The analysis was conducted for two different SATS business models based on Direct AiR Transport (DART) concept. It allowed for the investigation of the impact of technical specifications of the aircraft included into the SATS fleet as well as the selected elements of the applied business model on SATS safety level. Findings It was found that the proposed changes to DART system resulted in a significant improvement of safety. Mean Time Between Incidents and Accident (MTBIA) increased by 200 per cent. Additionally, the introduced alterations impacted the weights of particular domains and pilot’s error became less critical than the technical reliability. Practical implications It was shown that the application of new requirements influences both the safety level and the cost of operation, which was demonstrated within the ESPOSA and DART projects. Additionally, it was indicated that further effort to improve the light aircraft safety is absolutely necessary. Originality/value Originality consists in combining in one mathematical model both the aircraft configuration and the rules for business operation. Optimization of selected parameters of the system leads to a significant reduction in the accident number and to keeping the cost increment at a reasonable level. It was also found that the resulted improvement sometimes cannot be sufficient to consider a small aircraft operation fully safe, mainly owing to the numerous restrictions because of its small weight and loading capacity.

scholarly journals The impact of climate change on European agricultural policy

European View ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 171-177 ◽  
Author(s):  
Nicole M. Schmidt
Keyword(s):  
Climate Change ◽  
Greenhouse Gas ◽  
Agricultural Policy ◽  
Agricultural Sector ◽  
Raising Awareness ◽  
Combat Climate Change ◽  
Warming World ◽  
The Impact ◽  
Principal Contributor ◽  
The Eu

Agriculture in the context of climate change is often a provocative subject because agriculture is both heavily impacted by the warming world and also a principal contributor to climate change. As efforts to reduce greenhouse gas emissions increase, the EU is pushing all sectors to integrate measures to combat climate change. This article argues that the agricultural sector has instigated a process of integrating climate concerns. However, these efforts will not lead to a large number of disruptive changes in the agricultural sector. While the EU is putting climate change firmly on the agricultural agenda, ranking the issue even higher than the environment, the Union’s primary goal is still to support the income of farmers. Hence, the EU’s intentions will likely lead to raising awareness of the issue of climate change in the context of agriculture but will not lead to any transformative changes in European agricultural policymaking.

Indigenous Belief Systems, Science, and Resource Extraction: Climate Change Attitudes in Ecuador

2017 ◽  
Vol 17 (1) ◽  
pp. 40-58 ◽  
Author(s):  
Todd A. Eisenstadt ◽  
Karleen Jones West
Keyword(s):  
Climate Change ◽  
Indigenous People ◽  
Belief Systems ◽  
Systems Science ◽  
Core Beliefs ◽  
Traditional Beliefs ◽  
The Earth ◽  
Combat Climate Change ◽  
The Impact ◽  
Climate Change Attitudes

Indigenous people around the world have been particularly vocal about climate change as a challenge to their cosmovision—or traditional worldview—resulting in demands for protection of the earth as part of their core beliefs. Is this because indigenous people are the most vulnerable, and feel the impact of climate change more directly? Or is it because of the centrality of the earth to their traditional beliefs? Using survey evidence from Ecuador, we examine how indigenous cosmovision, science, and vulnerability influence the belief that climate change exists. On the basis of one-on-one interviews with indigenous leaders in Ecuador, we argue that both traditional beliefs and Western science inform citizen views of climate change. We discuss the implications of these findings, arguing that rather than competing with science, the Kichwa-based cosmovision complements Western scientific efforts to combat climate change. We also find that proximity to oil extraction is an important determinant of belief in climate change in Ecuador, suggesting that conceptualizations of vulnerability should be tailored to the particular experiences of individuals.

scholarly journals Investigating the Impact of COVID-19 Disruption on the Decarbonisation Agenda at Airports: Grounded or Ready for Take-Off?

2021 ◽  
Vol 13 (21) ◽  
pp. 12235
Author(s):  
Peter Hemmings ◽  
Michael Mulheron ◽  
Richard J. Murphy ◽  
Matt Prescott
Keyword(s):  
Climate Change ◽  
Climate Change Mitigation ◽  
Business Models ◽  
Resource Constraints ◽  
Mitigation Strategies ◽  
Government Support ◽  
Low Carbon ◽  
Net Zero ◽  
The Impact ◽  
Change Mitigation

COVID-19 has had wide-ranging impacts on organisations with the potential to disrupt efforts to decarbonise their operations. To understand how COVID-19 has affected the climate change mitigation strategies of Airport Operators (AOs), questionnaires and semi-structured interviews with Sustainability Managers were undertaken in late 2020 amidst a period of disruption. While all reported that COVID-19 impacted delivery of interventions and projects to mitigate climate change, the majority stated that it would not impact their long-term climate goals, such as Net Zero by 2050. The most popular climate change mitigation interventions AOs intend to deploy between now and 2030 are on-site renewables and Electric Vehicles and related infrastructure. Engineered carbon removal interventions were considered highly unlikely to be deployed in this timeframe, with potential implications for Net Zero decarbonisation pathways. Despite the severe impacts of COVID-19 on the sector, results indicate that AOs remain committed to decarbonisation, with climate change action remaining the key priority for airports. Given ongoing financial and resource constraints, AOs will need to explore new business models and partnerships and nurture collaborative approaches with other aviation stakeholders to not only maintain progress toward Net Zero but “build back better”. Government support will also be needed to stimulate the development of a sustainable, resilient, low-carbon aviation system.

The impact of climate change on electricity demand in Australia

2018 ◽  
Vol 29 (7) ◽  
pp. 1263-1297 ◽  
Author(s):  
Nnaemeka Vincent Emodi ◽  
Taha Chaiechi ◽  
ABM Rabiul Alam Beg
Keyword(s):  
Climate Change ◽  
Peak Load ◽  
Electricity Consumption ◽  
Electricity Demand ◽  
Policy Uncertainty ◽  
Intergovernmental Panel ◽  
Distributed Lag ◽  
Potential Benefits ◽  
The Impact

This study estimates the short- and long-term impacts of climate change on electricity demand in Australia. We used an autoregressive distributed lag (ARDL) model with monthly data from 1999 to 2014 for six Australian states and one territory. The results reveal significant variations in electricity demand. We then used long-term coefficients for climatic response to simulate future electricity demand using four scenarios based on the representative concentration pathways (RCPs) of the Intergovernmental Panel on Climate Change (IPCC). Our results show a gradual increase in electricity consumption due to warmer temperatures with the possibility of peak demand in winter; however, demand tends to decrease in the middle of the twenty-first century across the RCPs, while the summer peak load increases by the end of the century. Finally, we simulated the impact of policy uncertainty through sensitivity analysis and confirmed the potential benefits of climate change adaptation and mitigation.

Farmcrowdy: digital business model innovation for farming in Nigeria

2019 ◽  
Vol 9 (2) ◽  
pp. 1-22
Author(s):  
Kwaku Atuahene-Gima ◽  
Joshua Amuzu
Keyword(s):  
Climate Change ◽  
Business Model ◽  
Return On Investment ◽  
Business Models ◽  
Business Model Innovation ◽  
Background Information ◽  
African Countries ◽  
Business World ◽  
Content Type ◽  
The Impact

Learning outcomes The Farmcrowdy case pursues the following aims: familiarizing students with the concept of business models for agricultural businesses and explaining the key decisions and activities within a business model; recognizing different opportunities for business model innovation by farmers and stakeholders in the agricultural sector; identifying concepts and tools from the business world that can be used in farming and other agribusiness-related ventures; highlighting opportunities for agribusiness firms to engage in business model innovation; and developing a business model canvas that highlights key components of a business model. Case overview/synopsis Agriculture stands as the leading driver of economies in most African countries. Most people depend on this sector directly or indirectly for their livelihoods on a daily basis. However, due to challenges like climate change and its variability, high initial startups capital, poor pricing, pest attacks, among other factors, people are gradually opting out of this sector. This has implications for employment, food and human security issues for farmers, their families and the society at large. Individual farmers that opt to remain in this sector are often met with challenges accessing technology in adapting to the challenges aforementioned. This decreases their resilience to the impact of climate change and its variability, pest and disease attack, securing loans to expand farming operations, among others. This raises the risks associated with investment in this sector as one cannot be assured of a fixed return on investment at the end of each crop cycle. Investors who opted to manage this risk associated with investment in the agriculture sector had challenges getting an official database of farmers to invest in as well as knowing whether individual farmers are experienced enough and committed to fixed agreements. It is against this backdrop that Onyeka Akumah founded Farmcrowdy in Nigeria with the aim of empowering farmers and connecting investors to right farmers with an assured return on investment at the end of every crop growing or animal-rearing season using online technological packages. The Farmcrowdy business model allowed Nigerians to venture into farming and other agricultural ventures at the touch of a button while empowering local farmers and boosting food production, creating employment for all stakeholders in the agricultural value chain. With ensuing challenges and competitors in the agro-technological industry, Farmcrowdy aims at extending their business model to other West African countries like Ghana. A few suggestions are made to help improve Farmcrowdy business model. First, they can add novel activities to the business model. Second, they can change one or more parties that perform business model activities. Finally, they can link business model activities in new ways like the development of model farms as a training ground for new farmers and the development of a go-back-to nature campaign to end-users of the products from farms. This case can be used by different audiences. The case can be used for teaching students at the graduate level, especially in the development of executive courses on innovation and entrepreneurship, strategy, agricultural technology and innovation. A wealth of supporting materials is available to the Professor, including videos and background information. Complexity academic level PhD, Doctor of Business Administration, Executive MBA Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship

scholarly journals Carbon farming for resilient rangelands: people, paddocks and policy

2020 ◽  
Vol 42 (5) ◽  
pp. 293
Author(s):  
Alex Baumber ◽  
Cathy Waters ◽  
Rebecca Cross ◽  
Graciela Metternicht ◽  
Marja Simpson
Keyword(s):  
Climate Change ◽  
Land Use ◽  
Land Policy ◽  
Ecological Resilience ◽  
Policy Uncertainty ◽  
Land Uses ◽  
Sustainable Land Management ◽  
Social Divisions ◽  
Mitigate Climate Change ◽  
The Impact

Carbon farming is a new land use option over extensive areas of the Australian rangelands. This land use change has been promoted by government incentives to mitigate climate change, with most of Australia’s land sector abatement to date being delivered in rangelands. Aside from these mitigation benefits, carbon farming has also demonstrated potential co-benefits that enhance socio-ecological resilience by diversifying land uses and income streams, providing opportunities for sustainable land management to enhance soil and vegetation and creating opportunities for self-organisation and collaboration. However, factors such as policy uncertainty, perceived loss of future land use flexibility and the potential for carbon farming eligibility to create social divisions may negatively affect resilience. In this paper we weigh up these risks, opportunities and co-benefits and propose indicators for measuring the impact of carbon farming on the resilience of rangeland systems. A set of land policy principles for enhancing resilience through carbon farming are also identified.

scholarly journals This Changes Everything

2020 ◽  
Vol 20 (79) ◽  
Author(s):  
Serhan Cevik ◽  
João Tovar Jalles
Keyword(s):  
Climate Change ◽  
Developing Countries ◽  
Global Economy ◽  
Statistical Significance ◽  
Large Body ◽  
Economic Consequences ◽  
Sovereign Risk ◽  
Bond Yields ◽  
The Cost ◽  
The Impact

Climate change is already a systemic risk to the global economy. While there is a large body of literature documenting potential economic consequences, there is scarce research on the link between climate change and sovereign risk. This paper therefore investigates the impact of climate change vulnerability and resilience on sovereign bond yields and spreads in 98 advanced and developing countries over the period 1995–2017. We find that the vulnerability and resilience to climate change have a significant impact on the cost government borrowing, after controlling for conventional determinants of sovereign risk. That is, countries that are more resilient to climate change have lower bond yields and spreads relative to countries with greater vulnerability to risks associated with climate change. Furthermore, partitioning the sample into country groups reveals that the magnitude and statistical significance of these effects are much greater in developing countries with weaker capacity to adapt to and mitigate the consequences of climate change.

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