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Energy, Natural Resources, and Environmental Economics

Paper Session

Friday, Jan. 5, 2024 2:30 PM - 4:30 PM (CST)

Convention Center, 222
Hosted By: Middle East Economic Association
  • Chair: Mine Cinar, Loyola University-Chicago

Marine Protected Areas in the Mediterranean Sea

Nathalie Hilmi
,
Scientific Centre of Monaco
Mine Cinar
,
Loyola University-Chicago
Alain Safa
,
Skill Partners

Abstract

In New York on the 4th March 2023, governments meeting at the United Nations in New York reached agreement on key substantive issues for a new Treaty to protect High Seas marine life. The High Seas, the area of ocean that lies beyond countries’ national waters, is the largest habitat on Earth and home to millions of species. With currently just over 1% of the High Seas protected, the new Treaty will provide a pathway to establish marine protected areas in these waters. It is also a key tool to help deliver the recently agreed Kunming-Montreal target of at least 30% protection of the world’s ocean by 2030 that was just agreed to in December- the minimum level of protection scientists warn is necessary to ensure a healthy ocean. This agreement follows from and aligns with the Global Biodiversity Framework (GBF) agreed at COP 15, placing 30% of oceans into protected areas and increasing funding for marine conservation. Global commitments to protecting oceans are integral to reaching the goals of the GBF, especially since oceans make up over two-thirds of global surface area and absorb over 25% of the world’s annual CO2 emissions. The treaty is a step towards addressing the linked climate, nature and biodiversity crises.
The new Treaty will bring ocean governance into the 21st century, including establishing modern requirements to assess and manage planned human activities that would affect marine life in the High Seas as well as ensuring greater transparency. This will greatly strengthen the effective area-based management of fishing, shipping and other activities that have contributed to the overall decline in ocean health.

Exploring the Relationship between Maritime Activity and Macroeconomic Indicators: A Regional Analysis of MENA Countries

Erhan Aslanoglu
,
Piri Reis University

Abstract

Maritime indexes are widely recognized as important indicators of economic activity and trade patterns, particularly in regions that heavily rely on international trade. The literature suggests that maritime indexes are closely linked to key macroeconomic indicators such as gross domestic product (GDP), industrial production, and international trade. This is because shipping activity and trade volumes are often considered leading indicators of economic growth and can have a significant impact on the macroeconomy. Maritime indexes can also be influenced by global economic conditions, such as changes in international demand for commodities and manufactured goods. Therefore, exploring the relationship between maritime activity and macroeconomic indicators can provide valuable insights into the underlying drivers of economic activity and trade patterns, as well as help policymakers and investors better understand the economic implications of changes in shipping activity. This research aims to investigate the relationship between key macroeconomic indicators such as gross domestic product (GDP), industrial production, and maritime indexes, including the Baltic Dry Index, Baltic Dirty Tanker Index, and CCFI Composite Container Freight Index in the Middle East and North Africa (MENA) region. By comparing MENA countries both within and between variation across the regions, this study aims to capture the regional dimension and highlight the differences in the relationships between maritime indexes and macroeconomic indicators. Using a vector autoregression and error-correction (VAR/VECM) methodology, this study examines the bidirectional links (leading or lagging) between maritime indexes and macroeconomic variables and captures the long-run relationship. Our preliminary results indicate that the Baltic Dry Index and Baltic Dirty Tanker Index have a positive relationship with industrial production and GDP in MENA countries, both in the short and long-run. Moreover, the CCFI Composite Container Freight Index is found to have a positive relationship with industrial production and GDP in MENA countries, but only in the short-run.

Determinants of Entrepreneurial Startup: How and Why Are They So Different Between Oil and Non-oil Exporting Countries and How Have They Changed Over Time?

Jeffrey B. Nugent
,
University of Southern California
Runnan Guo
,
University of Southern California

Abstract

While there is a long history of studies investigating the effects of oil curse on growth and links thereto via various institutional characteristics like susceptibility to corruption, and macroeconomic policies including exchange rates, only quite rarely have these been extended to entrepreneurship. Even among the relatively few studies that have done so, seldom if ever have such studies examined the effects of changes in the relevant variables over time and to recognize the role of intermediating factors such as various country-level changes in conditions which might be related to the promotion of entrepreneurship. The purpose of this paper is to examine an ever-wider range of factors which might affect entrepreneurial decisions to start up among relevant individuals in a relatively large panel of countries (55) over the years 2005-2018, taking advantage of the two different high quality data sets provided by the Global Entrepreneurship Monitor (GEM), namely the Adult Population Survey (APS) and the National Expert Survey (NES) as well as a number of other country level measures of relevant factors that change over time taken from the World Bank Statistical Indicators and other commonly used sources.

The Inequality, Economic Growth, Climate Change and Natural Disasters Nexus: Empirical Evidence

Shireen Alazzawi
,
Santa Clara University
Yasmine Abdelfattah
,
University of Prince Edward Island

Abstract

This paper investigates the integrated paradigm between economic growth, income inequality, climate change, and natural disasters by considering bi-directional causality. Each of those causes the other and meaningful policy recommendations must involve a concerted effort to affect all of them simultaneously. This paper estimated simultaneous equations consisting of three models, namely neoclassical stochastic growth, income inequality, and natural disaster damage models. This paper constructs a panel database of 160 countries from 1990- 2020 by matching country-level datasets, and climate variables. This new endeavor enhances the existing attempts that integrate these dimensions in climate change-macroeconomic modeling studies. A carefully designed mix of policy solutions that tackles the interrelated issues simultaneously is no longer a luxury, given that our time to reverse global megatrends such as climate change and its catastrophic impacts is about to run out.

Discussant(s)
Nathalie Hilmi
,
Scientific Centre of Monaco
Erhan Aslanoglu
,
Piri Reis University
Jeffrey B. Nugent
,
University of Southern California
Shireen Alazzawi
,
Santa Clara University
JEL Classifications
  • Q4 - Energy
  • Q5 - Environmental Economics