Author Name Variants
Fields of Specialization
Economics of Development, Environment, and Climate
Externally Hosted Work
Last updated May 3, 2023
Jun Rentschler is a Senior Economist at the Office of the Chief Economist for Sustainable Development, working at the intersection of climate change and sustainable resilient development. Prior to joining The World Bank in 2012, he served as an Economic Adviser at the German Foreign Ministry. He also spent two years at the European Bank for Reconstruction and Development (EBRD) working on private sector investment projects in resource efficiency and climate change. Before that he worked on projects with Grameen Microfinance Bank in Bangladesh and the Partners for Financial Stability Program by USAID in Poland. He is a Visiting Fellow at the Payne Institute for Public Policy, following previous affiliations with the Oxford Institute for Energy Studies and the Graduate Institute for Policy Studies in Tokyo. Jun holds a PhD in Economics from University College London (UCL), specializing in development, climate, and energy.
Publication Search Results
Now showing 1 - 10 of 14
Publication(World Bank, Washington, DC, 2019-06) Rentschler, Jun ; Obolensky, Marguerite ; Kornejew, MartinThis study finds that natural shocks -- storms in particular -- are a significant and often leading cause for power supply disruptions. This finding is based on 20 years of high frequency (i.e. daily) data on power outages and climate variables in 28 countries -- Bangladesh, the United States and 26 European countries. More specifically: (1) Natural shocks are the most important cause of power outages in developed economies. On average, they account for more than 50 of annual outage duration in both the US and Europe. In contrast, natural shocks are responsible for a small share of outages in Bangladesh, where disruptions occur on a daily basis for a variety of reasons. (2) Outages due to natural shocks are found to last significantly longer than those due to non-natural shocks in -- e.g. more than 4.5 times in Europe. Reasons include the challenge of locating wide-spread damages, and the sustained duration of storms. (3) Several factors can reinforce the adverse effect of natural shocks on power supply. In the US, forest cover is shown to significantly increase the risk of power outages when storms occur. (4) There are significant differences in network fragility. For instance, wind speeds above 35 km/h are found to be 12 times more likely to cause an outage in Bangladesh than in the US. This difference may be explained by a range of factors, including investments in infrastructure resilience and maintenance.
Publication(World Bank, Washington, DC, 2019-06) Obolensky, Marguerite ; Erman, Alvina ; Rozenberg, Julie ; Rentschler, Jun ; Avner, Paolo ; Hallegatte, StephaneThis review examines the literature on the welfare impacts of infrastructure disruptions. There is widespread evidence that households suffer from the consequences of a lack of infrastructure reliability, and that being connected to the grid is not sufficient to close the infrastructure gap. Disruptions and irregular service have adverse effects on household welfare, due to missed work and education opportunities, and negative impact on health. Calibrating costs of unreliable infrastructure on existing willingness to pay assessments, we estimate the welfare losses associated with blackouts and water outages. Overall, between 0.1 and 0.2 percent of GDP would be lost each year because of unreliable infrastructure -- electricity, water and transport.
Publication(World Bank, Washington, DC, 2019-06) Hallegatte, Stephane ; Rozenberg, Julie ; Rentschler, Jun ; Nicolas, Claire ; Fox, CharlesThis paper explores the benefits and the costs of strengthening infrastructure assets to make them more resilient, reducing the repair costs and infrastructure disruptions caused by natural hazards. Strengthening infrastructure assets in low- and middle-income countries would increase investment needs in power, transport, and water and sanitation by between $11 billion and $65 billion a year, i.e. 3 percent of baseline infrastructure investment needs. The uncertainty pertaining to the costs and benefits of infrastructure resilience makes it difficult to provide a single estimate for the benefit-cost ratio of strengthening exposed infrastructure assets. To manage this uncertainty, this paper explores the benefit-cost ratio in 3,000 scenarios, combining uncertainties in all parameters of the analysis. The benefit-cost ratio is higher than 1 in 96 percent of the scenarios, larger than 2 in 77 percent of them, and higher than 4 in half of them. The net present value of these investments over the lifetime of new infrastructure assets -- or, equivalently, the cost of inaction -- exceeds $2 trillion in 75 percent of the scenarios and $4.2 trillion in half of them. Moreover, climate change makes the strengthening of infrastructure assets even more important, doubling the median benefit-cost ratio.
Building Back Better: Achieving Resilience through Stronger, Faster, and More Inclusive Post-Disaster Reconstruction(World Bank, Washington, DC, 2018-06-18) Hallegatte, Stéphane ; Rentschler, Jun ; Walsh, BrianThe 2017 Unbreakable report made the case that disaster losses disproportionately affect poor people. The Caribbean hurricane season of 2017 was a tragic illustration of this. Two category 5 hurricanes wreaked destruction on numerous small islands, causing severe damages on islands like Barbuda, Dominica, and Saint Martin. The human cost of these disasters was immense, and the impact of this devastation was felt most strongly by poorer communities in the path of the storms. And yet, amidst the destruction it is essential to look forward and to build back better. In this 2018 report the authors explore how countries can strengthen their resilience to natural shocks through a better reconstruction process. Reconstruction needs to be strong, so that assets and livelihoods become less vulnerable to future shocks; fast, so that people can get back to their normal life as early as possible; and inclusive, so that nobody is left behind in the recovery process. The benefits of building back better could be very large – up to US$173 billion per year globally – and would be greatest among the communities and countries that are hit by disasters most intensely and frequently and that have limited coverage of social protection and financial inclusion. Small island states – because of their size, exposure, and vulnerability – are among the countries where building back better has the greatest potential. A stronger, faster, and more inclusive recovery would lead to an average reduction in disaster-related well-being losses of 59 percent in the 17 small island states covered in the report.
Publication(Washington, DC: World Bank, 2019-06-19) Hallegatte, Stephane ; Rentschler, Jun ; Rozenberg, JulieFrom serving our most basic needs to enabling our most ambitious ventures in trade and technology, infrastructure services are essential for raising and maintaining people’s quality of life. Yet millions of people, especially in low- and middle-income countries, are facing the consequences of unreliable electricity grids, inadequate water and sanitation systems, and overstrained transport networks. Natural hazards magnify the challenges faced by these fragile systems. Building on a wide range of case studies, global empirical analyses, and modeling exercises, Lifelines lays out a framework for understanding infrastructure resilience—the ability of infrastructure systems to function and meet users’ needs during and after a natural shock—and it makes an economic case for building more resilient infrastructure. Lifelines concludes by identifying five obstacles to resilient infrastructure and offering concrete recommendations and specific actions that can be taken by governments, stakeholders, and the international community to improve the quality and resilience of these essential services, and thereby contribute to more resilient and prosperous societies.
Publication(World Bank, Washington, DC, 2019-06) Rozenberg, Julie ; Espinet Alegre, Xavier ; Avner, Paolo ; Fox, Charles ; Hallegatte, Stephane ; Koks, Elco ; Rentschler, Jun ; Tariverdi, MersedehReliable transport infrastructure is one of the backbones of a prosperous economy, providingaccess to markets, jobs and social services. Sustainable Development Goal 9 (SDG9) calls forincreased access to sustainable transport infrastructure in low- and middle-income countries.Collectively, these countries will need to spend between 0.5 percent and 3.3 percent of their GDPannually (157 billion to 1 trillion US Dollars) in new transport infrastructure by 2030 – plus an additional 1 percent to 2 percent of GDP to maintain their network – depending on their ambition and their efficiency in service delivery (Rozenberg and Fay, 2019). Because of the wide spatial distribution of transport infrastructure, many transport assets are exposed and vulnerable to natural hazards, increasing costs for national transport agencies and operators. During the 2015 floods in Tbilisi, Georgia, the repair of transport assets contributed approximately 60 percent of the total damage cost (GFDRR, 2015). In the 1995 earthquake in Kobe, Japan, accessibility as measured by the length of open networks directly after the shock dropped by 86 percent for highways and by 71 percent for railways (Kazama and Noda, 2012b). Such transport disruptions necessarily have direct impacts on the local economy. Employees face difficulties commuting, access to firms is disrupted for clients, interruptions in the supply chain inhibit production, and finished products cannot be easily shipped (Kajitani and Tatano, 2014). The paper, prepared as background material for the Lifelines report on infrastructure resilience, summarizes the main findings on the risk faced by transport networks and users as a result of natural disasters and climate change, and the main recommendations for building more resilient transport networks. It starts by describing how transport disruptions affect firms and households either directly and through supply chains. It then proposes a range of approaches and solutions for building more resilient transport networks, showing that the additional cost of resilience is not high if resources are well spent. Finally, it provides a set of practical recommendations.
Publication(World Bank, Washington, DC, 2019-06) Nicolas, Claire ; Rentschler, Jun ; Potter van Loon, Albertine ; Oguah, Sam ; Schweikert, Amy ; Deinert, Mark ; Koks, Elco ; Arderne, Christopher ; Cubas, Diana ; Li, Jie ; Ichikawa, ErikoThe power sector is both highly vulnerable to natural hazards and a priority for any country'srecovery and reconstruction. After Hurricane Maria in Puerto Rico in 2017, most of the power gridwas down. One year and tens of billions of dollars later some customers were yet to be reconnected to the main grid. This type of long and widespread power outage has major consequences on people's health and well-being, for instance through lacking access to refrigeration for food and medicine, and on the ability of firms to produce and provide people with goods, services, jobs, and income. In most countries, the power system is designed to cope with high-frequency but relatively low impact events. Low-frequency, high-impact events – such as many natural disasters – are rarely considered fully, and the implementation of planned management measures is often patchy. Furthermore, the power system is a special kind of infrastructure due to the heterogeneity of the generation assets and its wide spatial distribution. The latter means that power systems are often exposed to natural hazards and sometimes to more than one hazard, leading to high repair costs when disasters strike. This paper, prepared as a sectoral note for the Lifelines report on infrastructure resilience, investigates the vulnerability of the power system to natural hazards and climate change, and provides recommendations to increase its resilience. It first describes how power outages are often the consequence of natural disasters and outlines the main vulnerabilities of the power sector. It then proposes a range of approaches and solutions for building a more resilient power sector – from increased robustness to greater flexibility – showing that the additional cost of resilience is not high if resources are well spent. Finally, it describes how emergency preparedness and disaster recovery encompass not only technical aspects, like asset strengthening or criticality analysis, but also "softer" skills, like governance, regulatory or capacity building, and education.
Publication(World Bank, Washington, DC, 2019-06) Kornejew, Martin ; Rentschler, Jun ; Hallegatte, StephaneThis study explores the role of governance in improving infrastructure reliability. It estimates that increasing infrastructure spending and improving governance in parallel is six times more effective at enhancing transport system performance than increasing spending alone. It also estimates that under current fiscal budgeting, every $1 spent on infrastructure maintenance is as effective as $1.5 of new investments in many OECD economies. Overall, the evidence in this study demonstrates that it is the quality rather than the quantity of infrastructure spending that determines the quality of infrastructure services.
Publication(Taylor and Francis, 2016-06-24) Rentschler, Jun ; Bazilian, MorganThis article outlines the current state of affairs in fossil fuel subsidy reform, and highlights its contribution at the nexus of climate policy, fiscal stability and sustainable development. It discusses common definitions, provides quantitative estimates, and presents the evidence for key arguments in favour of subsidy reform. The main drivers and barriers for reform are also discussed, including the role of (low) oil prices and political economy challenges. Commitments to subsidy reform by the international community are reviewed, as well as the progress at the country level. Although fossil fuel subsidy reform indeed plays a critical role in climate policy, experience shows that the rationale for such reforms is determined in a complex environment of political economy challenges, macro-economic, fiscal and social factors, as well as external drivers such as energy prices. The article synthesizes the key principles for designing effective reforms and emphasizes that subsidy reforms cannot only yield fiscal relief, but should also contribute to long-term sustainable development objectives. Areas for future research are also identified.
Publication(World Bank, Washington, DC, 2018-09-18) Hallegatte, Stephane ; Rentschler, JunGovernments now have access to a large and growing range of financing instruments for rapidlymobilizing funds in the aftermath of a disaster. Instruments like reserve funds, contingent linesof credit, and insurance programs are critical for financing relief, recovery and reconstruction efforts, and they have a demonstrated impact on the ability of governments to manage large-scale disasters. The availability of financial resources however, is only half of the story. The capacity of a government to support post-disaster recovery and reconstruction depends substantially on its ability to deliver these resources effectively to where they are needed. Doingso requires that governments are prepared before a disaster hits, with the right instruments, institutions, and capacities in place. By preparing contingency plans, defining responsibilities, adopting appropriate regulations and norms, enhancing financial inclusion and insurance regulations, and establishing flexible and gender-inclusive social protection systems, governments could improve the reconstruction process and generate over 173 billion dollars per year inbenefits. There are major synergies between the financial instruments that make the resources available and the systems that deliver these resources where they are needed. In the next few years, the design and implementation of new financial instruments will offer an unprecedented opportunity to improve the last-mile delivery of post-disaster support. This opportunity should not be missed.