Andrea Bigano

Centro Euro-Mediterraneo sui Cambiamenti Climatici | CMCC · ECIP - Economic analysis of Climate Impacts and Policy Division

The G20 Climate Risk Atlas is the contribution of the CMCC Foundation – Euro-Mediterranean Centre on Climate Change to ensuring attentive and well-informed climate action. Our scientific community responded to the European Climate Foundation’s proposal with the preparation of a summary document based on the most advanced scientific knowledge availa...

We review the sovereign credit rating methodologies of three credit rating agencies (Moody’s, S&P and Fitch) and analyze how they currently accommodate climate change risk and ESG considerations. We elaborate on the differences between the three rating methodologies and critically evaluate their suitability and limitations. We propose lines of impr...

The role of cities and their stakeholders in creating a sustainable low carbon society is becoming increasingly critical. Cities and their supply chains are responsible for almost 80% of the global energy consumption and over 60% of greenhouse gas emissions (GHG). It is expected that by 2050 seventy percent of the global population will be living i...

Do consumers value the fuel economy of cars? We examine this question taking advantage of the recent introduction of hybrid and battery-electric vehicles, which promise to reduce the use of fossil fuels in road transport, and hence carbon emissions and dependence on oil imports. The price of these vehicles may however create hurdles to their widesp...

Enthusiasm for the Circular Economy (CE) is widespread and overwhelming. However, confusion around its meaning and purpose still pervades the scientific debate. Our study has two objectives. The first one is to increase the theoretical clarity and the scientific relevance of this debate. An important step forward in this direction is the idea of ec...

Do consumers value the fuel economy of cars? In this paper we examine this question, taking advantage of the recent introduction of hybrid and battery-electric vehicles, which promise to reduce the use of fossil fuels in road transport, and hence carbon emissions and dependence on oil imports. The price of these vehicles may however create hurdles...

We use stated preference methods to investigate the public's preferences for decarbonization policies. We ask three research questions. First, does the willingness to pay (WTP) for each ton of CO2 emissions reductions depend on the policies and on individual characteristics of the respondents? Second, how extensive is the variation associated with...

During the last decades, the effects of global warming have become apparent also in Europe, causing relevant impacts in many sectors. Under projected future global warming, such a tendency can be expected to persist until the end of this century and beyond. Identifying which climate-related impacts are likely to increase, and by how much, is an imp...

Concerns about climate change are growing, and so is the demand for information about the costs and benefits of mitigating greenhouse gas emissions. This paper seeks to estimate the benefits of climate change mitigation, as measured by the public's willingness to pay for such policies. We investigate the preferences of Italian and Czech households...

This article looks at the impacts of climate change on the electricity sector in Italy and addresses two main issues. First, we depict the implications for both the demand and the supply side of rising temperatures, water scarcity and increased frequency of extreme weather events. Second, we look at the adaptation policy measures available to Italy...

Economic systems are connected to the natural environment through a continuous flow of energy and materials. The production of economic wealth implies the use of natural resources and their transformation into goods (bound to become, at least partially, waste in the future), current waste (pollution) and low-valued energy (entropy). The scarcity of...

The aim of the present study is to support the European Parliament in understanding the current situation of the implementation of the Article 7 of the 2012 Energy Efficiency Directive with regard to residential consumers and buildings. We look at key facts highlighted in the energy economic and behavioural sciences literature on energy use by resi...

Concerns about climate change are growing, and so is the demand for information about the costs and benefits of mitigating greenhouse gas emissions. This paper seeks to estimate the benefits of climate change mitigation, as measured by the public’s willingness to pay for such policies. We investigate the preferences of Italian and Czech households...

We evaluate incentives for residential energy upgrades in Italy using data from an original survey of Italian homeowners. In this paper, attention is restricted to heating system replacements, and to the effect of monetary and non-monetary incentives on the propensity to replace the heating equipment with a more efficient one. To get around adverse...

We evaluate incentives for residential energy upgrades in Italy using data from an original survey of Italian homeowners. In this paper, attention is restricted to heating system replacements, and to the effect of monetary and non-monetary incentives on the propensity to replace the heating equipment with a more efficient one. To get around adverse...

We examine the effect of energy efficiency incentives on household energy efficiency home improvements. Starting in February 2007, Italian homeowners have been able to avail themselves of tax credits on the purchase and installation costs of certain types of energy efficiency renovations. We examine two such renovations—door/window replacements and...

We examine the effect of energy efficiency incentives on household energy-efficiency home improvements. Starting in February 2007, Italian homeowners have been able to avail themselves of tax credits on the purchase and installation costs of certain types of energy efficiency renovations. We examine two such renovations - door/windows replacements...

Between now and 2050, humanity must face a double problem: the growing scarcity of oil and the accumulation of greenhouse gases in the atmosphere. These “bathtub problems” cannot be considered independently as hydrocarbon scarcity paves the way to coal, while climate policies open the path to low carbon societies. Smart energy policies and associat...

We evaluate incentives for residential energy upgrades in Italy using data from an original survey of Italian homeowners. In this paper, attention is restricted to heating system replacements, and to the effect of monetary and non-monetary incentives on the propensity to replace the heating equipment with a more efficient one. To get around adverse...

The security of natural gas supply is an important issue for all EU countries due to the region’s heavy dependence on imported supply sources and in light of energy demand for gas that is continuously increasing. Discussions have emphasised strategies for securing the supply at the macro level, e.g. diversification in supply sources, increase in st...

This book reports and rationalizes the state of the art concerning the social costs of electricity generation. Social costs are assessed by adding to the private generation costs, the external costs related to damages to human health, the environment, crops, materials, and those related to the consequences of climate change. The authors consider t...

This study investigates consumer valuation of the security of various types of energy supply, namely electricity, natural gas and transport fuels (oil). Research for the paper was carried out in the context of the SECURE project (Security of Energy Considering its Uncertainties, Risks and Economic Implications), funded by the European Commission un...

It can be argued that one way to reduce the dependence from external energy sources, is simply to reduce the demand for energy. Energy savings may thus be considered a policy priority when concerns for energy security are particularly strong. Drawing on an original econometric approach, we check whether policies and measures that affect indicators...

Oil spills are a major cause of environmental concern, in particular for Europe. We extend the traditional approach of assessing the welfare losses for individuals potentially affected by an oil spill, by taking into full account the implications of the probabilistic nature of the related externalities. Our approach differs from the traditional one...

[eng] Transportation costs and monopoly location in presence of regional disparities. . This article aims at analysing the impact of the level of transportation costs on the location choice of a monopolist. We consider two asymmetric regions. The heterogeneity of space lies in both regional incomes and population sizes: the first region is endowed...

This paper is the first to assess operational and probabilistic externalities of oil extraction and transportation to Europe on the basis of a comprehensive evaluation of realistic future oil demand-supply scenarios, of the relative relevance of import routes, of the local specificities in terms of critical passages and different burdens and impact...

Questo rapporto nasce dalla collaborazione fra APAT (Agenzia per la Protezione dell'Ambiente e per i Servizi Tecnici) e il CMCC (Centro Euro-Mediterraneo per i Cambiamenti Climatici) ed è stato realizzato all'interno del percorso organizzativo per la Conferenza Nazionale sui Cambiamenti Climatici (CNCC), promossa dal Ministero dell'Ambiente e della...

While climate change impacts on human life have well defined and different origins, the interactions among the diverse impacts are not yet fully understood. Their final effects, however, especially those involving social-economic responses, are likely to play an important role. This paper is one of the first attempts to disentangle and highlight th...

This paper is a first attempt to investigate the effect of climate on the demand for different energy vectors from different final users. The ultimate motivation for this is to arrive to a consistent evaluation of the impact of climate change on key consumption goods and primary factors such as energy vectors. This paper addresses these issues by m...

We use an updated and extended version of the Hamburg Tourism Model to simulate the effect of development and climate change on tourism. Model extensions are the explicit modelling of domestic tourism and the inclusion of tourist expenditures. We also use the model to examine the impact of sea level rise on tourism demand. Climate change would shif...

Climatic variability and a substantial fraction of the most recent temperature warming in the Northern Hemisphere can be accounted for by the North Atlantic Oscillation (NAO) index. The most pronounced anomalies have occurred since the winter of 1989, with significant implications on weather conditions in areas within the index's geographical scope...

Oil spills are a major cause of environmental concern, in particular for Europe. However, the traditional approach to the evaluation of the expected external costs of these accidents fails to take into full account the implications of their probabilistic nature. By adapting a methodology originally developed for nuclear accidents to the case of oil...

Recent major spills on European coasts have highlighted the primary policy relevance for the EU of oil spills. This paper assesses the risks related to carrying oil to the EU along the route from the Russian Black Sea coast to Sicily, Italy (one of the most congested and strategically relevant European import routes). We develop a methodology based...

Climatic variability and a substantial fraction of the most recent temperature warming in the Northern Hemisphere can be accounted for by the North Atlantic Oscillation (NAO) index. The most pronounced anomalies have occurred since the winter of 1989, with significant implications on weather conditions in areas within the index's geographical scope...

The holiday destination choice is analysed for tourists from 45 countries, representing all continents and all climates. Tourists are deterred by distance, political instability and poverty, and attracted to coasts. Tourists prefer countries with a sunny yet mild climate, shun climates that are too hot or too cold. A country's tourists' aversion fo...

We present a new, global data base on tourist destinations. The data base differs from other data bases in that it includes both domestic and international tourists; and it contains data, for the most important destinations, data at national level as well as at lower administrative levels. Missing observations are interpolated using statistical mod...

This paper studies the economic implications of climate-change-induced variations in tourism demand, using a world CGE model. The model is first re-calibrated at some future years, obtaining hypothetical benchmark equilibria, which are subsequently perturbed by shocks, simulating the effects of climate change. We portray the impact of climate chang...

This paper studies the relevance of strategic trade effects in the environmental policy for the European electricity sector. The production, investment and trade of electricity are modelled for four European countries. Three market regimes are distinguished: perfect competition, price regulation and Cournot competition. The model is used to examine...

The hedonic price literature suggests that locations with more favourable characteristics should display compensating wage and house price differentials. Estimates of the marginal willingness to pay for small changes in climate variables are derived using the hedonic price technique applied to Italian data. A hedonic price model was specified in te...

In this paper we extend a model by A. Ulph (1997) on the relationship between free trade agreements, environmental regulation and trade under imperfect competition. Ulph's model focused on the effectiveness of harmonisation policies against ecological dumping. It turned out that harmonised policies are rarely optimal under perfect information, but...

This paper discusses the effects of alternative waysof using external cost estimates to regulateinvestments and generation in the electricityproduction sector. Starting from the existing system,four alternatives are considered: emission taxes forthe utility and for independent producers, emissiontaxes limited to the electric utility, emissionpermit...

The European electricity sector is facing substantial structural changes. An issue of primary interest in this regard is the interaction of environmental problems and liberalisation. This paper will illustrate the most relevant issues that compound the task of providing a reliable framework for environmental policy applied to the European electrici...

Foreign investments and inter-firm contractual agreements are the main channels for the diffusion of technologies towards Developing Countries (LDCs). The literature on the determinants of multinationals is very broad and mostly revolves around Dunning’s ‘eclectic theory’ (Dunning, 1981). Multinational activity is the combined result of the OLIs tr...

ABSTRACT This paper studies the economic,implicationsof climate-change-induced variations in tourism demand, using a world CGE model. The model is first re-calibrated at some future years, obtaining hypothetical benchmark equilibria, which are subsequently perturbed by shocks, simulating the effects of climate change. We portray the impact of clima...

Questi rapporto nasce dalla collaborazione fra APAT (Agenzia per la Protezione dell'Ambiente e per i Servizi Tecnici) e il CMCC (Centro Euro-Mediterraneo per i Cambiamenti Climatici) ed e' stato realizzato all'interno del percorso organizzativo per la Conferenza Nazionale sui Cambiamenti Climatici (CNCC), promossa dal Ministero dell'Ambiente e dell...