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1591. Infrastructures, energy and digitalisation: pillars for the sustainable development of transport in the Western Mediterranean

Author:
Mark Furness, Jordi Selfa, Sassi Hammami, Pier Paolo Raimondi, and Michel Noussan
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
With the Russian aggression on Ukraine and the war in Gaza being prolonged over time the Mediterranean region at large is in total turmoil. The Policy Study entitled “Infrastructures, energy and digitalisation, pillars for the sustainable development of transport in the Western Mediterranean” aims at contributing with shared reflections and formulation of policy proposals to the challenges and strategies that the region faces in the field of promoting sustainable development in the transport sector. To this end, the Policy Study delves into this topic from these three cross-cutting dimensions in the Western Mediterranean: infrastructures, energy and environment, and digitalisation. The European Institute of the Mediterranean (IEMed) and the Centre for Transportation Studies for the Western Mediterranean (CETMO) have taken on this stimulating task by continuing for a third year the preparation of a Policy Study that involves various authors who are experts in the field, while also unveiling some recommendations of public policy addressed to the Presidency of the Group of Transport Ministers for the Western Mediterranean (GTMO 5+5). Indeed, this publication released as a Policy Study comes within the framework of the Med Think 5+5 network of Western Mediterranean think tanks, a multidisciplinary platform of exchange associated with the 5+5 Dialogue, which brings together policymakers, practitioners and academics from the Western Mediterranean area. Considering transport and logistics as one of the most relevant sectors to foster socio-economic development and regional integration in the Western Mediterranean, the Med Think 5+5 network has been committed to promoting debate and knowledge-sharing on the issue, building upon support and expertise of the CETMO as Technical Secretariat of the Group of Transport Ministers for the Western Mediterranean (GTMO 5+5). As a matter of fact, the Med Think 5+5 convened seminars (2018, 2021) dedicated to the analysis of trends in the Western Mediterranean transport and logistics sectors, organised back-to-back with the GTMO 5+5. In this context, this Policy Study, which is part of the work programme of GTMO 5+5 under the Maltese presidency, aims at giving response to the challenges posed by climate change in the region and how the transport sector can counter it and adapt to it through digitalisation, the transformation and connection of transport with infrastructures and energy.
Topic:
Infrastructure, European Union, Transportation, Energy, and Sustainable Development
Political Geography:
China, Europe, North Africa, and Mediterranean

1592. Towards Inclusive Mediterranean Economies: Advancing Women’s Economic Empowerment in the Region

Author:
IEMed/EuroMeSCo
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
In this first publication of the MedWE programme, the IEMed and the Union for the Mediterranean aim to contribute to applied research on the crucial area of gender equality and women’s empowerment. In the contemporary Mediterranean landscape, women face many obstacles that hinder their complete economic and social advancement. This publication is the result of the conference organised in cooperation with LECE in October 2023 in Barcelona. During this conference, the MedWE program brought together experts, policymakers, and entrepreneurs to explore strategies for overcoming barriers and promoting women’s economic empowerment in the Mediterranean region. Through a series of panel discussions, key challenges, opportunities in the areas of education and workforce participation, entrepreneurship, access to finance, legal and regulatory reform, and gender equality in the work environment were examined. Various stakeholders shared expertise and effective practices to foster women’s economic empowerment across different sectors and levels within the Euro-Mediterranean region. This policy study, combined with the work of the Union for the Mediterranean, intends to establish a new line of work which addresses gender as a central element for advancing towards a more inclusive Mediterranean. Through recommendations that will serve as a valuable resource for policymakers, business leaders, activists, and scholars committed to forging a fairer and more just future for all inhabitants of the Mediterranean, the paper seeks to foster greater gender equality and social inclusion in the region. By identifying key challenges and proposing strategies, it contributes to promote women’s economic empowerment across the Mediterranean.
Topic:
Women, Equality, Inclusion, Empowerment, and Gender
Political Geography:
Europe, North Africa, and Mediterranean

1593. Renewable Energy and Electricity Interconnection Megaprojects in North Africa: Prospects for Euro-North Africa Cooperation

Author:
Michaël Tanchum, Hussein Suleiman, Alexander P. Martin, Tristano Sainati, and Jose Rodrigo Juarez Cornelio
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
This Joint Policy Study delves into North Africa’s renewable energy landscape, examining the potential and challenges of megaprojects in the region. With a specific focus on renewable energy production and exports, it explores the intricacies of megaprojects in Morocco, Egypt, Algeria and Tunisia, assessing their successes, hurdles, and future potential. North Africa, especially the Sahara Desert, has vast potential for renewable energy production due to its exceptionally high solar irradiation levels, positioning it as an ideal site for solar energy projects. Economically and geopolitically, there is a strong rationale for Euro-North African collaboration to enhance North Africa’s ability to generate and export renewable energy in a way that benefits both regions. However, despite this significant potential, North African countries have faced numerous geopolitical, economic, societal and infrastructural obstacles in fully capitalising on these resources.
Topic:
Development, Infrastructure, Electricity, Renewable Energy, and Solar Power
Political Geography:
Europe and North Africa

1594. Policy impacts of the Climate Change Conferences in the Mediterranean

Author:
Jérémie Fosse and Haiat Jellouli
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
The Mediterranean region, a recognized climate and biodiversity hotspot, faces accelerated and multifaceted impacts from climate change, with implications for its socio-economic stability, ecosystems, and public health. Rising temperatures, extreme climate events, sea-level rise, water scarcity, and biodiversity loss threaten the environmental, social and economic foundations of the region, especially in sectors like agriculture, tourism, and fisheries taking place in densely populated areas with fragile ecosystems. Both terrestrial and marine temperatures in the region have already increased by 1.5°C above pre-industrial levels. This trend is expected to continue, with projections suggesting a further rise of between 0.5 and 6.5°C by the year 2100. Other alarming projections include an increase in surface water temperatures by 1 to 4°C throughout the century and a significant reduction in rainfall. Furthermore, sea levels in the Mediterranean have already risen by 6 cm over the past two decades, with an expected increase of 43 to 84 cm by the end of the century. The United Nations Framework Convention on Climate Change (UNFCCC) Conferences of the Parties (COP) have been instrumental in galvanizing global attention and action on climate issues. From the early COPs that focused on foundational agreements like the Kyoto Protocol to the more recent and ambitious Paris Agreement at COP21, these conferences have played a crucial role in shaping the global climate regime. For the Mediterranean, the COP process has provided a framework within which regional and national efforts can align with broader global objectives, particularly in reducing greenhouse gas emissions and enhancing climate resilience. The Paris Agreement, with its goal to limit global warming to well below 2°C, and ideally to 1.5°C, is especially significant for the Mediterranean, where even small increases in temperature can have outsized impacts. The commitment to both mitigation and adaptation, alongside the establishment of mechanisms for climate finance, technology transfer, and capacity building, has offered Mediterranean countries the tools to confront their unique challenges. The post-COP21 era has seen Mediterranean countries implement adaptation measures in critical areas, such as water management and coastal resilience, while also working to enhance renewable energy sources like solar and wind. However, regional progress is uneven, hampered by financial limitations, political instability, and capacity gaps. Scaling up climate finance, strengthening regional cooperation, and bridging technological and institutional divides are essential for the region to meet Paris Agreement commitments effectively. The future of the Mediterranean depends on the region’s ability to build resilience and adapt to these multifaceted climate challenges. This will require enhanced regional cooperation, as no country can effectively tackle these issues in isolation. Regional frameworks such as the Union for the Mediterranean and the Barcelona Convention must be strengthened to foster collaboration on climate action, with a particular focus on shared resources like water and energy. Equally important is the need to scale up climate finance. Mediterranean countries, particularly those with fewer resources, need more robust support from international funding mechanisms like the Green Climate Fund and the Adaptation Fund. These resources must be directed towards projects that address the most pressing issues, such as water management, renewable energy infrastructure, and coastal protection. Reinforcing institutional capacity is therefore a critical step. Many Mediterranean countries face significant governance and technical challenges that impede the effective implementation of climate policies. Investing in education, capacity building, and governance reforms can help bridge this gap, enabling countries to better execute national climate plans and make use of international support. Furthermore, technology transfer must be accelerated. For Mediterranean nations to effectively mitigate emissions and adapt to climate impacts, they need access to cutting-edge technologies that can enhance energy efficiency, improve water use, and protect ecosystems. In conclusion, urgent and coordinated action is needed to safeguard the Mediterranean from escalating climate risks. Strengthening regional frameworks, enhancing access to international funding, and accelerating technology transfer will be vital in supporting Mediterranean countries. By fostering resilience through sustained commitment to climate adaptation and mitigation, the Mediterranean region can protect its future and offer valuable insights for other vulnerable areas worldwide.
Topic:
Climate Change, Environment, Treaties and Agreements, Resilience, and Conference of the Parties (COP)
Political Geography:
North Africa and Mediterranean

1595. Mapping Fragility – Functions of Wealth and Social Classes in US Household Finance

Author:
Orsola Costantini and Carlo D'Ippoliti
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Which households are more exposed to financial risk and to what extent is their debt systemically relevant? To provide an answer, we advance a new classification of the population, adapted from Fessler and Schürz (2017), based on the type of wealth families own and their sources of income. Then, we investigate data from eleven waves of the Survey of Consumer Finances (SCF), a triennial survey run by the U.S. Federal Reserve, to explore the association of different debt configurations and motives to get into debt with our class distinctions. Our new approach allows us to assess competing hypotheses about debt and financial vulnerability that have so far been analyzed separately in disconnected strands of literature. The results of our study reinforce and qualify the controversial hypothesis that relative poverty and inequality of income and access to services have been important factors explaining household indebtedness and its relationship with economic growth over time.
Topic:
Debt, Poverty, Inequality, Finance, Fragility, and Income Distribution
Political Geography:
North America and United States of America

1596. Labor Market Volatility and Worker Financial Wellbeing: An Occupational and Gender Perspective

Author:
Julie Yixia Cai
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
One emerging but underexplored factor that is likely to contribute to group racial earnings disparity is unstable work schedules. This is often detrimental for hourly workers when volatility is frequent, involuntary, or unanticipated. Using data from 2005-2022 monthly Current Population Survey and its panel design, this study follows a group of hourly workers across a four-month period to assess whether labor market volatility relates to their financial well-being, focusing on low-wage care and service occupations as well as female workers and workers of color. The findings are threefold: In general, during economic expansion periods, nonwhite workers often benefit more in terms of wage growth compared to their white counterparts. Second, net of other characteristics, on average, greater volatility is associated with lower earnings, and this is mostly driven by those holding jobs in low-wage service sectors and healthcare support roles. Last, the earnings consequences of volatility vary significantly by the type of low-wage jobs a worker holds and their gender and race, but this is only true when volatility happens in a job. Specifically, when working within the same employment spell, female workers, particularly those of color and those working in low-wage service and care jobs, earn significantly less when facing greater volatility than their male counterparts or those working in non-service, non-care occupations.
Topic:
Economics, Inequality, Finance, Labor Market, and Gender
Political Geography:
Global Focus and United States of America

1597. Bagehot’s Classical Money View: A Reconstruction

Author:
Perry Mehrling
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Bagehot is difficult for modern economists to read with understanding, for three reasons. He was a classical economist not neoclassical, his orientation was global not national, and, most importantly, his intellectual formation was as a practicing country banker not an academic. This paper adopts all three perspectives, and uses this frame to reinterpret his mature work, both Lombard Street and the unfinished Economic Studies, as the origin of the key currency tradition which continues as a minority view in modern economics.
Topic:
Globalization, History, Macroeconomics, and Walter Bagehot
Political Geography:
Global Focus

1598. Monetary Policy and Illiquidity

Author:
Jan Toporowski
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The discussion of financial stability, and the role of monetary policy, is incoherent because there is very little agreement on what constitutes financial stability (and, by implication, instability) - exchange rate stability, asset price stability, absence of debt default. By implication, there is a gap between the claims of various authors to the general applicability of their respective analyses, and the actual applicability of their conclusions, let alone the usefulness of some of their policy recommendations. The paper argues that the key issue is the regulation of the liquidity of all financial markets, and not just that of the banking system, through the markets for government securities. The paper examines the sources of this liquidity in the financial portfolios of the private sector, and how that liquidity may be managed through the open market operations of central banks and the debt management operations of governments. An implication of this approach is yield curve control and the use of (government) debt management to control the liquidity of the markets. These elements of monetary policy have been neglected in theory and policy since the 1950s.
Topic:
Debt, Economics, Monetary Policy, Banking, and Liquidity
Political Geography:
Global Focus

1599. Considering Returns on Federal Investment in the Negotiated “Maximum Fair Price” of Drugs Under the Inflation Reduction Act: an Analysis

Author:
Edward W. Zhou, Paula G. da Silva, Debbie Quijada, and Fred D. Ledley
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The Inflation Reduction Act (IRA) of 2022 contained landmark provisions authorizing government to negotiate a “maximum fair price” for selected Medicare Part D drugs considering the manufacturer’s research and development costs, federal support for discovery and development, the extent to which the drugs address unmet medical needs, and other factors. This working paper describes federal investment in the discovery and development of the ten drugs selected for price negotiation in the first year of the IRA as well as the health value created through Medicare Part D spending on these drugs. We identified $11.7 billion in NIH funding for basic or applied research leading to approval of these drugs with median investment costs of $895.4 million/drug. This early public investment provided a median cost savings to industry of $1,485 million/drug, comparable to reported levels of investment by industry. From 2017-2021, Medicare Part D spent $126.4 billion (median $10.7 billion) for these products before rebates. Excluding two products for diabetes, Medicare Part D spending was $97.4 billion and the total health value created was 650,940 QALYs or $67.7 billion (WTP/QALY=$104K) representing a negative residual health value of -$29.7 billion (before rebates). We argue that a negotiated fair price should provide returns on both private and public investments in these products commensurate with the scale and risk of these investments, with the principal return on public sector investments being the residual health value (net price) accruing to those using the product. These empirical data provide a cost basis for negotiating a fair price that rewards early government investments in innovation and provides social value for the public.
Topic:
Economics, Health, Public Health, Pharmaceuticals, and Public Investment
Political Geography:
North America and United States of America

1600. Tilting at Windmills: Bernanke and Blanchard’s Obsession with the Wage-Price Spiral

Author:
Servaas Storm
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Bernanke and Blanchard (2023) use a simple dynamic New Keynesian model of wage-price determination to explain the sharp acceleration in U.S. inflation during 2021-2023. They claim their model closely tracks the pandemic-era inflation and they confidently conclude that “… we don’t think that the recent experience justifies throwing out existing models of wage-price dynamics.” This paper argues that this confidence is misplaced. The Bernanke and Blanchard is another failed attempt to salvage establishment macroeconomics after the massive onslaught of adverse inflationary circumstances with which it could evidently not contend. It misrepresents American economic reality, hides distributional issues from view, de-politicizes (monetary and fiscal) policy-making, and sets monetary policymakers up to deliver significantly more monetary tightening than can be justified on the basis of more realistic model analyses.
Topic:
Economics, Monetary Policy, Inflation, Macroeconomics, and Wages
Political Geography:
North America and United States of America