Commitment of European SMEs to resource efficiency actions to achieve sustainability transition. A feasible reality or an elusive goal?

The European Union has built an interdependent framework to promote sustainability transition through commitment in resource efficiency (RE) actions as echoed in the European Green Deal. Although the factors affecting firms' decision to adopt a green strategy have been extensively explored, those affecting commitment remain unexplored. Thus, we study whether commitment of European SMEs to RE actions fosters sustainability transition and, what drives such commitment. Data includes more than 37,000 European SMEs from 2013 through 2017, combined with country-specific characteristics explored via a probit model with sample selection. Findings indicate that during the study period there has been a change in the structure of incentives of the firms, as in the beginning of the period, adoption of RE actions and future engagement were considered as independent decisions. We document that commitment is driven RE enhancers such as the implementation of new technological paradigms, cooperation, and specialized business advice while resource productivity, green energy, and competitiveness further foster commitment. Findings advocate that commitment in RE actions to achieve sustainability transition is a feasible reality. Efforts of policymakers should focus on further enabling RE committed firms by reducing policy red tape.

Green growth & sustainability transition through information. Are the greener better informed? Evidence from European SMEs.

The European Green Deal along with directives promoting Circular Economy support sustainability transition and foster green growth through developing appropriate funding. However, information on how to access such funding affects firms' decision to expand their business strategy. This paper investigates the effect of information about financing tools on the adoption of Circular Economy business activities by exploring whether the better-informed firms are 'greener' and what influences such decision through a switching endogenous regressor model to account for endogeneity and selectivity bias. Data on European SMEs is combined with country-specific characteristics and econometric results indicate that better informed firms are by 65 percentage points more likely to adopt an activity promoting Circular Economy, highlighting that awareness about funding tools is crucial for sustainability transition. Evidence advocates for mainstreaming information regarding funding sources to pave the way towards green growth. A rebound effect regarding the use of renewables is observed whilst evidence points towards the rejection of Porter Hypothesis. Policy makers should target in fostering a greener business environment for the firms that engage in Circular Economy practices through increased information on funding options. Findings are also pertinent to the ongoing discussion and policy agenda around acceleration of the transition to a greener European Economy.

Personal attitudes and beliefs and willingness to pay to reduce marine plastic pollution in Indonesia.

Marine plastic pollution (MPP) is one of the most pressing issues especially for fast-growing economies in the Global South where addressing it involves both government and personal actions to achieve effective waste management policies. Alternative modelling strategies accounting for personal traits and beliefs (latent attitudes) which are unobservable characteristics are frequently overlooked in policy assessment studies. This study combines contingent valuation and latent traits questions to derive the willingness of Indonesian respondents to support MPP mitigation initiatives. One and two-step models are compared to test the sensitivity of results to modelling assumptions. Latent traits help to understand the willingness to pay (WTP) for MPP and one and two-step approaches produce comparable results. On average respondents are willing to pay £15, per person, per year to reduce MPP, or 2% of the average monthly salary. Local and international organizations should consider motivations and latent traits when designing MPP mitigation strategies.

Climate action requires new accounting guidance and governance frameworks to manage carbon in shelf seas.

Accounting guidelines exist for the recording of carbon flows in terrestrial and coastal ecosystems. Shelf sea sediments, while considered an important carbon store, have yet to receive comparable scrutiny. Here, we explore whether effective management of carbon stocks accumulating in shelf seas could contribute towards a nation's greenhouse gas emissions reduction targets. We review the complexities of carbon transport and fate in shelf seas, and the geopolitical challenges of carbon accounting in climate governance because of the transboundary nature of carbon flows in the marine environment. New international accounting guidance and governance frameworks are needed to prompt climate action.

Policy options to achieve culturally-aware and environmentally-sustainable tourism in Fiji.

Increased visitation rates are expected to further impact ecosystems and local communities depending on them to generate income from tourism. We measure how different sustainable tourism management options of such areas in ways that respect the concept of vanua, the Fijian understanding of the connectiveness of the natural environment, humans and traditions, are perceived by a representative sample of potential visitors of the UK population. We then consider some plausible management options and how these may impact welfare. Results show that prospective UK respondents are willing to donate approximately £73 for a management option that enforces medium restrictions by local communities to enter coastal and marine areas in Fiji, so that vanua is respected. A management option that instead denies access to local communities is not seen favourably by prospective UK visitors to Fiji. In terms of time preference, UK respondents, in particular those with previous experiences of tropical areas, prefer environmental projects that restore and protect coastal and marine ecosystems to be completed as soon as possible. Our findings seem to support the introduction of more sustainable and community-based management practices in Fiji as they appear to increase welfare of visitors respecting local traditions and customs, as long as some access is provided to tourists. Donations from tourists or a change in tourism management from a traditional to a more sustainable practice may support the sustainable development of the local coastal communities in Fiji.

The value of information: Realising the economic benefits of mapping seagrass meadows in the British Virgin Islands.

Carbon capturing coastal and marine habitats around the world are decreasing in extent every year, habitats found in abundance in Small Island Developing States' territories. However, these habitats are under threat by increased levels of economic activities and extreme weather events. Consequently, as those ecosystems become scarce their value is expected to increase. In this paper the "value of information", the increase in knowledge that renders a system or a function more valuable, from marine habitat mapping is presented through the (monetary) valuation of one regulating service provided by the newly mapped habitats. Mapping a section of a channel with a multibeam echosounder revealed more seagrass resources than in previous studies. Using values for both the Social Cost of Carbon and Abatement Cost methods, from the literature we estimate the value of the carbon sequestration and storage service these seagrass meadows provide. The impacts of hurricanes in the newly mapped seagrasses were also investigated. Despite the costs of mapping, monitoring and of projected losses of ecosystem services provision due to hurricanes, net benefits over a time period of 50 years were considerably larger. The new information provided highlights carbon capturing habitats as more important, enabling the "value of information" to inform policymaking.

The perception of water related risks and the state of the water environment in the European Union.

In this work, we examine the factors predicting the perception of three distinct risks, namely "Algae growth", "Chemical pollution" and "Changes to ecosystems", to the water environment of each European Union Member State. We utilize a novel dataset that combines a Europe-wide Eurobarometer poll on water-related issues and a database of water quality indicators, water stressors and impacts compiled for the European Environment Agency (EEA) under the Water Information System for Europe (WISE). We utilize a three-level logistic regression model with the 2nd and 3rd levels being the region and the country in which the respondent lives. We find that perceived risks generally reflect the actual state of the environment at both the regional and national level, with the national level being stronger. Perceived risks are also related to socio-demographics, information and knowledge, pro-environmental activity and consumer practices. The influence of unobserved factors, captured in the model by random effects, was large at the national level, reflecting differences in cultural and institutional structures". Results support higher levels of water policy devolution and more focused and targeted policy communication.

False positive and false negative errors in the design and implementation of agri-environmental policies: A case study on water quality and agricultural nutrients.

When designing and implementing agri-environmental policies to reduce nutrient loss, action programmes may falsely address areas where the nutrient issue from agricultural activity is not currently important and is not likely to become so in the future (a false positive), or may fail to address areas where the agricultural nutrient issue is currently important or may likely become so in the future (a false negative). Based on a case study of the Louros watershed in Greece, this work identifies database and modelling sources of false positives and negatives and proposes a decision making process aimed at minimizing the possibility of committing such errors. The baseline is well simulated and shows that the Louro's watershed falls behind a Good Environmental Status, at least marginally. Simulated mitigation measures show that the river's status can be upgraded to "Good", at least as concerns nitrates and ammonium. Simulated climate change does not seem to exert an important positive or negative effect. Land use changes forecasting considerably less cultivated area have a significant effect on Total Phosphorous but not on nitrates or ammonium concentrations. The non-linearity between nutrient disposition (inputs) and nutrient concentration in downstream water bodies (output) and the many factors that affect the nutrient disposition-transportation-concentration chain, highlights the importance of simulating the effects of mitigation actions and of future climate and land use changes before adopting and establishing agri-environmental measures.

The income elasticity of Willingness-To-Pay (WTP) revisited: A meta-analysis of studies for restoring Good Ecological Status (GES) of water bodies under the Water Framework Directive (WFD).

The income elasticity of Willingness-To-Pay (WTP) is ambiguous and results from meta-analyses are disparate. This may be because the environmental good or service to be valued is very broadly defined or because the income measured in individual studies suffers from extensive non-reporting or miss reporting. The present study carries out a meta-analysis of WTP to restore Good Ecological Status (GES) under the Water Framework Directive (WFD). This environmental service is narrowly defined and its aims and objectives are commonly understood among the members of the scientific community. Besides income reported by the individual studies, wealth and income indicators collected by Eurostat for the geographic entities covered by the individual studies are used. Meta-regression analyses show that income is statistically significant, explains a substantial proportion of WTP variability and its elasticity is considerable in magnitude ranging from 0.6 to almost 1.7. Results are robust to variations in the sample of the individual studies participating in the meta-analysis, the econometric approach and the function form of the meta-regression. The choice of wealth or income measure is not that important as it is whether this measure is Purchasing Power Parity (PPP) adjusted among the individual studies.