Conference Agenda

Air pollution remains a persistent problem in low-and-middle income countries (LMICs). The incidence of damages is especially high amongst underprivileged communities due to lower pre-existing inputs into health and the rise of costly defensive investments (e.g. air purifiers) that are only accessible to the rich. Given regulatory failures in improving ambient air quality (Greenstone & Hanna, 2014) there is a need to explore the effectiveness of other defensive interventions in reducing the damages of exposure to high levels of air pollution. The reality of reducing air pollution in LMICs adds urgency to the investigation of the effectiveness of defensive action: even with aggressive regulatory approaches it will be many years before ambient levels are reduced to safe levels in much of the world. This session is focused on examining the effectiveness of providing information to individual households in promoting the adoption of defensive action to reduce exposure to pollution. Each paper in the session examines an intervention that provides information to households about either (a) air quality or (b) ways to take defensive action (or both). They then evaluate the effectiveness of these actions with respect to whether households take action, whether that action has health consequences, and whether the information provided changes their Willingness To Pay for additional reductions in exposure to pollution. All four papers are unified in their examination of these questions in LMICs.

Presenters:
Philippe Tulkens, European Commission DG RTD
Alejandro Caparrós, Durham University
Stale Navrud, Norwegian University of Life Sciences
Katinka Holtsmark, University of Oslo


The United Nations Conference on Environment and Development (UNCED) in 1992, also known as Rio "Earth Summit", was one of the first global attempt to address the interlinked crises of climate change, biodiversity loss, and ecosystem degradation (IPBES, 2019). Three decades later, the need for action has dramatically increased. Global temperatures have already risen by 1.1°C above pre-industrial levels (IPCC, 2022), significantly altering marine, terrestrial and freshwater ecosystems all around the world (Dasgupta, 2021; FAO, 2024). Building on this urgency, parties at COP29 in Baku agreed a deal on rules for a global market to buy and sell carbon credits. These new agreement opens vast opportunities for integrating biodiversity and ecosystem services into carbon markets, further enhancing their role in climate change mitigation. COP30 in Belém, besides bringing together countries in Brazil after more than 30 years from Rio 1992, presents a crucial opportunity to build on the momentum from COP29, uniting the Global North and South in strengthening partnerships. In such an arena, how can carbon markets be designed to benefit climate action and biodiversity preservation? And how can Europe best support Global South in biodiversity protection at this critical juncture?
The session, organized by the Policy Outreach Committee, will focus on two key topics as we approach COP30.
First, building on the IPBES-IPCC previous studies on biodiversity and climate (IPBES, 2021), it will explore how biodiversity and ecosystem services can be integrated into climate action, focusing particularly on carbon credit systems that help both mitigate climate change and protect biodiversity.
The session will also discuss how to strengthen cooperation between the Global North and South, building on the progress made at COP29. Special attention will be given to Europe’s role in supporting biodiversity protection in the Global South through financial support and capacity- building, aiming to create more equitable and collaborative global solutions to climate challenges.

The transition of the global energy system from one based on fossil energy to one based on non-fossil, renewable energy is denoted the energy transition. Much attention is focused on systemic scale changes in the research literature, with little focus on both households or even sub-national scales. Correspondingly, much of the economic analysis proceeds using a system-wide simulation/analytical framework, with little diversity in approaches used. Furthermore, the transition is anticipated to take a few decades, with short-term energy-related challenges occurring in the interim. These short-term challenges, if not dealt with appropriately, can not only lead to significant delays in, but also reduce public support for, the energy transition. In this context, the proposed session's main goals are to take a close look at the following four aspects of the energy transition using a wide diversity of approaches: diversity in methods used (stated and revealed preference, along with macro-economic models), in scale of analysis (economy-wide, household, firm-level), and in geographic scope (Sweden, Mexico, and Switzerland). Four specific aspects are considered in the studies included in the session: (i) employment; (ii) reliability and investments; (iii) incentives to manage short-term energy crises; and (iv) investments in grid-scale storage and electricity generation. These four aspects span three different levels of analysis: households, firms, and industry/economy. Thus, the proposed session aims to provide a multi-dimensional view of the energy transition, from the bird's eye macro-economic view, an intermediate level firm-level view, and finally, a much lower-level household-level view.

The circular economy (CE) intersects multiple environmental challenges. It is expected to ease the pressure on resource extraction—thereby protecting biodiversity—support the feasibility of a materials-intensive energy transition, and lower emissions by reducing resource consumption, thus combatting climate change. Finally, reducing waste and designing environmentally friendly products should lower levels of pollution. For these reasons, the European Commission considers the 2020 Circular Economy Action Plan—addressing waste recycling and product design—one of the main building blocks of the European Green Deal. To achieve these environmental objectives simultaneously, public policies must consider their interconnections and be carefully designed as a cohesive package, given that policies influence one another. Featuring insights from four innovative studies, the session highlights key market mechanisms, policy mix, and trade-offs in advancing circularity across environmental dimensions and scales.

The natural environment is highly complex and inter-connected. Ignoring this reality means that, at best, pro-environmental policies will be inefficient, and at worst they can actually exacerbate the problems they set out to address. This thematic session explores how advances in economic analysis, integrated with scientific insights, can help incorporate the complexities of the natural environment into decision making and policy. Applications to the major challenges of biodiversity loss and climate change motivate four papers, the first two of which explore the way that policy decisions are made. Specifically, the first paper addresses how policy intended to help deliver net zero emissions may be improved by accounting for the interconnected nature and spatial variation inherent in land-use decision making. The second paper then explores how even well-intended biodiversity policy can backfire if they do not account for the risk of simply offshoring damage. The remaining papers explore policy design. The third paper in the session assesses how the way in which “biodiversity net gain” requirements are implemented has major implications for the scale and spatial distribution of consequences for wild species as well as other connected environmental impacts and resultant welfare implications. The final paper addresses the question of how to design markets to facilitate trade for environmental services under “no net loss” policies, which is essential for ensuring that halting the biodiversity crisis does not come at the cost of preventing economic growth.

Presenters:
Shunsuke Managi, Kyushu University
Shabbir Ahmad, The University of Queensland
Subhrendu Pattanayak, Duke University
Edwin Muchapondwa, University of Cape Town
Aude Pommeret, University Savoie Mont Blanc


The transition to clean and sustainable energy is one of the most pressing challenges of our time, but it is intrinsically linked to the availability of critical minerals, essential for technologies such as batteries, solar panels, and wind turbines. This session will explore the intersection between access to these minerals and social justice, examining how the management of natural resources can impact vulnerable communities, developing countries, and global dynamics. Discussion will address the economic, political, and environmental implications of the growing demand for critical minerals, analyzing the opportunities and challenges of an energy transition that is both ecological and equitable. We will discuss strategies to mitigate the risks of global inequalities, promote sustainable policies, and ensure that the benefits of the transition are distributed fairly and inclusively.

Exposure to high levels of ambient pollution poses significant challenges to both fostering economic growth and ensuring its equitable distribution. While often considered a local issue, air pollution can also be analyzed globally by examining its impacts across various contexts and understanding how it travels across borders via physical transport and trade redistribution. This session features five papers offering global perspectives on air pollution and its economic interactions. Papers 1 and 2 analyze its effects on economic activities in India and France, respectively. Paper 3 examines China's green energy transitions and health outcomes, while Papers 4 and 5 explore trade channels and transboundary spillovers, highlighting air pollution as an international concern.

Presenters:
Anastasios Xepapadeas, University of Bologna and Athens University of Economics and Business Catarina Roseta-Palma, Istituto Universitário de Lisboa Katarina Elofsson, Aarhus University Renan-Ulrich Goetz, University of Girona and President of the Spanish-Portuguese Association of Environmental Economists


The UN Convention on the Protection and Use of Transboundary Watercourses and International Lakes (Water Convention) is “a unique legally binding instrument promoting the sustainable management of shared water resources, the implementation of the Sustainable Development Goals, the prevention of conflicts, and the promotion of peace and regional integration”. With a gradual expansion of signatories, spanning almost all regions of the world, perhaps less known are its origins as a regional pan-European framework for transboundary water cooperation. Our proposal takes momentum from this precedent: the evidence that regional cooperation is not only an end in itself, but equally an opening to global cooperation and progress. European and Mediterranean cooperation have been, and can be, examples and precursors for each other and for others.
Water resource management is of critical importance in the Mediterranean, a region acutely affected by water scarcity and its socio-political ramifications. At the intersection of Europe and North Africa, it grapples with the confluence of different geographical and political realities, and how to govern a common water basin and its rivers.
On the European side, water supply systems have historically relied heavily on engineered "grey" infrastructure, such as dams and reservoirs. However, the integration of nature-based solutions (NbS), such as watershed conservation, is increasingly recognized as a key strategy for enhancing water security. Despite these advances, challenges persist, particularly as only 40% of Europe’s surface water sources were in good ecological status as of 2015. The Middle East and North Africa (MENA) region is the world’s most water-scarce, with water- and climate-related disasters catalysing human displacement resulting from the insecurity of livelihoods, safety, and wellbeing. This displacement can feed a vicious cycle of fragility, straining already scarce resources and feeding existing community or boundary tensions. Indeed, in the Mediterranean, water management issues are compounded by the region's demographic and hydrological diversity, which underscores the need for tailored, cooperative water management practices.
The Mediterranean region faces escalating water stress due to a combination of climate change, poor management practices, and uneven water distribution, with 72% of water resources concentrated in the north and only 5% in the south. Projections indicate reduced river runoff, lower groundwater recharge, and significant declines in reservoir levels, threatening water availability and energy production across the region. The southern and eastern Mediterranean countries, where water scarcity is most acute, also grapple with transboundary water challenges, as many freshwater sources cross national borders. A regional approach focusing on shared benefits, rather than zero-sum water division, can reduce tensions and promote equitable resource allocation.
Adapting to these challenges requires a multifaceted strategy that combines NbS with technical and policy-driven solutions. Nature-based interventions, such as dune restoration and watershed management, can help mitigate environmental impacts and enhance resilience8. Simultaneously, technical measures like desalination, improved water distribution networks, and wastewater reuse can bolster water supplies. Policy efforts should include promoting transboundary cooperation, integrating inter-sectoral benefits, and ensuring equitable resource distribution9. A coordinated effort across sectors and borders, learning from and with inter-continental partners and neighbours, is needed for the Mediterranean to address its water crisis, safeguarding resources for its ecological health and socio-economic stability, not only within the region but in Europe, Africa, and Asia.
To address these critical problems, MEDAERE – the network of the Mediterranean Association of Environmental and Resource Economists that was established in 2024 and presented at COP29 – intends to propose this policy session aimed at discussing the issues briefly described above.

In this session we will explore how intertemporal decision-making must account for structural dependencies, feedback mechanisms, and constraints on economic growth and sustainability. The four papers are connected through their focus on dynamically optimal approach to policy design in economic and environmental systems, be it with or without considering uncertainties. While each paper addresses different domains—disaster risk management, growth, energy transitions, tipping points and decarbonization—they share methodological similarities and collectively contribute to a deeper understanding of how policies should be structured over time to optimize long-term outcomes.

Sustainable innovations (SIs) in the agri-food sector enhancing environmental and social aspects are vital in addressing global challenges, particularly by accelerating the shift toward more sustainable and socially inclusive agricultural systems. The European Union (EU) provides a comprehensive framework of policies to support SIs in the agri-food sector (the European Green Deal setting the path to climate neutrality in 2050, the Eco-Schemes under the Common Agricultural Policy or the Circular Economy Action Plan). Before investing in SIs, it is essential to perform a cost-benefit analysis (CBA) to help stakeholders identify the potential returns on investment, prioritize resources effectively, and ensure that the proposed SIs align with the Sustainable Development Goals (SDGs). Classical CBA falls short when it excludes non-market values in the environmental and social aspects, such as various public goods. Excluding non-market values can lead to an incomplete assessment of an innovation's true impact, undervaluing critical environmental and social benefits. On the other hand, public goods lack direct monetary values, given the absence of related markets to commercialize these services and monetize their economic benefits. As a result, decisions based solely on classical CBA focusing on private benefits may favour short-term financial gains over long-term sustainability. This session provides three examples of using an extended cost-benefit analysis (ECBA) framework that integrates non-market values with traditional CBA. While the first two presentations are focussed more on the methodological issues applied to specific case studies, the third one explores how this process can be done in a co-constructed way with stakeholders to deliver impact.

This session explores innovative market and policy mechanisms for carbon dioxide removal (CDR) and emissions offsetting, focusing on their integration into existing carbon markets and policy frameworks. The presented papers examine different geographical perspectives and policy approaches, proposing implementable solutions for key issues such as market integration, intertemporal trading of CDR permits, impermanence of removal, substitution with non-CO2 greenhouse gases, and externalities. The discussion will provide insights into the design and implementation of effective CDR policy instruments, offering valuable perspectives for researchers and policymakers.