This publication provides preliminary, quantitative estimates of direct budgetary support and tax expenditures supporting the production or consumption of fossil fuels in selected OECD member ...countries. The information has been compiled as part of the OECD's programme of work to develop a better understanding of environmentally harmful subsidies (EHS). It has been undertaken as an exercise in transparency, and to inform the international dialogue on fossil-fuel subsidy reform. It is also intended to inform the ongoing efforts of G20 nations to reform fossil-fuel subsidies. For each of the 24 OECD countries covered, the Inventory provides a succinct summary of its energy economy, and of the budgetary and tax-related measures provided at the central-government level (and, in the case of federal countries, for selected sub-national units of government) relating to fossil-fuel production or consumption. Many measures listed in this inventory are relative preferences within a particular country's tax system rather than absolute support that can be readily compared across countries, and for that reason no national totals are provided.
This paper discusses the conflictive relationship between corruption and the implementation of rigorous environmental policies. According to our initial hypothesis, the higher the degree of ...corruption, the more likely it is that governments defend individual interests rather than environmental goals established to benefit society. Using panel data of 34 OECD members from 1996 to 2020, we investigate the potential determinants of the updated Environmental Policy Stringency index. This is a contribution from previous analysis, since the sample is significantly extended, and the analysis disaggregates among the three dimensions of the index. The estimation of the fixed-effects model confirms our assumption: perceived corruption negatively affects the development of ambitious policies in the environmental field. Specifically, more corrupt cabinets apply laxer market-based instruments and fewer technology support policies. Our empirical outcomes also hint at significant connections between other political, institutional, social or economic factors and the strictness of environmental policies.
How to make the most of public investment? This question is critical in todays tight fiscal environment. Given that sub-national governments in OECD countries carry out more than two thirds of total ...capital investment, they have played a key role in executing national stimulus packages during the global crisis. The effectiveness of recovery strategies based on public investment thus depends largely on the arrangements between levels of government to design and implement the investment mix. This report provides an overview of challenges met in the recovery and highlights good practices and lessons learned, focusing on eight country cases: Australia, Canada, France, Germany, Korea, Spain, Sweden and the United States. As stimulus packages are being phased out since 2010, many countries have moved toward fiscal consolidation and targeted public investment as an adjustment variable. Co-ordination between levels of government was essential to implement recovery measures, and it is equally important to better prioritise reduced public investment and make the most of it for sustainable growth.
This publication provides new information on public research institutions (PRIs) and government strategies. Public research institutions are crucial for innovation due to their role in knowledge ...creation and diffusion. While absolute real expenditure on RD in this sector has risen, it now accounts for a smaller share of total RD spending by OECD countries and of OECD GDP. The targets and focus of many PRIs have evolved in recent years. Changing activities, new policy challenges and wider economic and political developments have driven change in missions and mandates and linkages have become focal points for many. Internationalisation has also increased and relationships are frequently collaborative. PRIs sources of income are diverse but funding has become increasingly competitive. Funding instruments need to balance short-and long-term goals to uphold research quality and ensure the sustainability of PRI activities.
This study replicates and extends the results presented in a top-cited article in this journal, Inglesi-Lotz (2016), which analyzes the impact of renewable energy consumption to economic growth for ...the OECD countries by applying the ordinary least squares with fixed effect estimator on the data from 1990 to 2010. By using the same data and methods, this study first produces and compare empirical results with those reported in the original article. Then, it applies a set of new econometric methods on the same data to address heterogeneity in renewable energy and economic growth across the analyzed group of countries. The panel quantile regression estimation shows that the effect of renewable energy consumption on economic growth is positive for lower and low-middle quantiles; however, its effect becomes negative for middle, high-middle, and higher quantiles when renewable energy consumption is proxied by the absolute value. Furthermore, a negative impact of renewable energy on economic growth is observed in almost all quantiles when it is proxied by the share of renewable energy consumption to total energy consumption. These results greatly differ from those of the original study
•This study aims to replicate and extend Inglesi-Lotz's (2016)•The panel quantile regression is used for empirical analysis.•Renewable energy consumption contributes to economic growth for lower and low middle quantiles.•Renewable energy consumption negatively impacts economic growth in middle and upper quantiles.
The interdependence among energy consumption, economic growth and environmental degradation has become an important public policy priority among OECD countries. Yet, the related literature provides ...conflicting results when describing the dynamic nature of such a relationship and the way it affects countries' development path. Using a sample of 35 OECD countries over the period 2000–2014, we find that economic growth and energy consumption patterns contribute to the enhancement of countries' environmental performance levels. In contrast to a large stream of empirical research, our findings highlight that countries' economic development path and their energy consumption patterns have started to align with their environmental policies. The results are robust since we utilize different aspects of countries' environmental degradation such as carbon dioxide emissions, ecological footprints and countries' environmental performance levels. Finally, the analysis of the dynamic interrelations among countries' energy consumption, economic growth and environmental degradation levels, reveals the necessity to promote sustainable development through a coexistence rather than through a trade-off mechanism.
•We explore the dynamics of energy consumption, economic growth and environmental degradation.•Countries' economic growth paths are aligned with their environmental policies.•Sustainable development is efficiently promoted through a coexistence mechanism.
The impacts of urbanization on carbon emissions have attracted widespread attention for a long time. Quantitative research on the impacts is of great significance for formulating carbon reduction ...policy. Based on the dynamic panel autoregressive distribution lag (ARDL) model, we systematically study the general and heterogeneous long-run equilibrium relationships, short-run dynamic relationships, impact mechanism and lag effect between urbanization and three carbon emission dimensions in OECD high-income countries during long period. The main empirical results indicate that developed countries tend to have the same negative impacts of urbanization on carbon emissions, although there are differences in the endowments of different countries. The impact is relatively weak, for each percentage point increase in urbanization rate, CO2 emissions per capita decrease by 0.015%, total CO2 emissions decrease by 0.012%, and CO2 emission intensity decrease by 0.009%. All member countries have achieved the decoupling of urbanization and carbon emissions. Urbanization affects carbon emissions by affecting economic growth, energy efficiency, and final energy consumption structure. This paper further reveals the multi-level impacts of urbanization on carbon emissions and provides policy implications of achieving carbon reduction through urbanization's agglomeration effect for government decision makers.
•Estimate the impact of urbanization on carbon emissions based on panel ARDL model.•Analyze general & heterogeneous long-, short-run relationship and impact mechanism.•Urbanization decreases carbon emissions but the impact is weak in OECD countries.•Developed economies have achieved the decoupling of urbanization and CO2 emissions.•Promote urbanization process and exert its scale effect to reduce carbon emissions.
•We examine the effect of human capital on energy consumption for a panel of OECD economies over the period 1965–2014.•Our results suggest that human capital reduces aggregate energy consumption by ...15.36%.•We find that human capital is associated with a 17.33% decrease in dirty energy consumption and an 85.54% increase in clean energy consumption.•Our findings emphasize the social benefits of investing in human capital
We examine the effect of human capital on energy consumption for a panel of OECD economies over the period 1965–2014. Our preferred results, which account for cross-sectional dependence and structural breaks, suggest that a one standard deviation increase in human capital reduces aggregate energy consumption by 15.36%. When we distinguish between clean and dirty energy consumption, we find that human capital generates significant positive externalities for the environment. Specifically, we find that a one standard deviation increase in human capital is associated with a 17.33% decrease in dirty energy consumption and an 85.54% increase in clean energy consumption. Our findings reinforce the social benefits of investing in human capital and suggest a promising avenue for energy conservation without impeding economic growth.
The persistence assessment of organic chemicals is based on neutral reference substances. Therefore, our study aimed at investigating the influence of a chemical charge on the degradation of organic ...compounds in a water-sediment system (OECD 308) and surface water (OECD 309). We used radiolabelled 4-n-dodecylbenzenesulfonic acid sodium salt (14C-DS-, anionic), 4-n-dodecylbenzyltrimethylammonium chloride (14C-DA+, cationic) and 4-n-dodecylphenol (14C-DP, non-ionic) which are structurally similar except their charges. After 120 days of incubation in a water-sediment system, 68% (14C-DS-), 6% (14C-DA+) and 63% (14C-DP) of the applied radioactivity (AR) were mineralized. The formation of non-extractable residues (NER) after 120 days was highest for 14C-DA+ (33% AR), followed by 14C-DS- (19% AR) and 14C-DP (14% AR). Dissipation half-lives (DT50) at 12 °C decreased as follows: 14C-DA+ (346 days) ≫ 14C-DS- (47 days) > 14C-DP (30 days). After 60 days of incubation in surface water with suspended sediment, mineralization of 14C-DS-, 14C-DA+ and 14C-DP accounted for 63%, 7% and 58% AR, respectively. Highest NER formation was observed for 14C-DP (21% AR), followed by 14C-DA+ (14% AR) and 14C-DS- (9% AR). DT50 (12 °C) decreased as follows: 14C-DA+ (45 days) > 14C-DP (3 days) > 14C-DS- (2 days). We showed that a positive charge reduces the degradability of organic chemicals in both test systems. From a scientific point of view, simulation studies following OECD 309 should always be complimented by tests with high sorption capacity, e.g. OECD 308 and OECD 307 tests in order to assess the degradation of a compound, especially in case of cationic organic compounds.
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•Fate of chemicals with similar structures but different charges investigated.•Anionic and non-ionic chemicals were strongly mineralized.•Cationic chemical formed high amounts of NER.•Cationic chemical has by far the slowest degradation rate.•Chemical charge influences a chemical's fate in water-sediment systems.
This paper investigates whether OECD countries compete with each other over corporation taxes, and whether such competition can explain the fall in statutory tax rates in the 1980s and 1990s. We ...develop a model in which multinational firms choose their capital stock in response to an effective marginal tax rate (EMTR), and simultaneously choose the location of their profit in response to differences in statutory tax rates. Governments engage in two-dimensional tax competition: they simultaneously compete over EMTRs for capital and over statutory rates for profit. We estimate the parameters of their reaction functions using data from 21 countries between 1982 and 1999. We find evidence that countries compete over both measures, and moreover, that the estimated slopes of reaction functions are consistent with our theoretical predictions. We find that – consistent with our model, but not some other forms of competition – evidence of strategic interaction is present only between open economies (i.e. those without capital controls in place). The Nash equilibrium average statutory rates implied by the empirical model fall substantially over the period, in line with falls in actual statutory rates. The reductions in equilibrium tax rates can be explained almost entirely by more intense competition generated by the relaxation of capital controls.