Person:
Rentschler, Jun

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Fields of Specialization

Economics of Development, Environment, and Climate

ORCID

0000-0002-2014-2124

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Last updated: November 16, 2023

Biography

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.

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Publication Search Results

Now showing 1 - 10 of 32

Air Pollution and Poverty: PM2.5 Exposure in 211 Countries and Territories
(World Bank, Washington, DC, 2022-04) Rentschler, Jun
Air pollution is one of the leading causes of death worldwide, especially affecting poorer people who tend to be more exposed and vulnerable. This study contributes (i) updated global exposure estimates for the World Health Organizations's 2021 revised fine particulate matter (PM2.5) thresholds, and (ii) estimates of the number of poor people exposed to unsafe PM2.5 concentrations. It shows that 7.28 billion people, or 94 percent of the world population, are directly exposed to unsafe average annual PM2.5 concentrations. Low- and middle-income countries account for 80 percent of people exposed to unsafe PM2.5 levels. Moreover, 716 million poor people (living on less than $1.90 per day) live in areas with unsafe air pollution. Around half of them are located in just three countries: India, Nigeria, and the Democratic Republic of Congo. Air pollution levels are particularly high in lower-middle-income countries, where economies tend to rely more heavily on polluting industries and technologies. The findings are based on high-resolution air pollution and population maps with global coverage, as well as subnational poverty estimates based on harmonized household surveys.
Detox Development: Repurposing Environmentally Harmful Subsidies
(Washington, DC : World Bank, 2023-06-15) Damania, Richard; Balseca, Esteban; de Fontaubert, Charlotte; Gill, Joshua; Kim, Kichan; Rentschler, Jun; Russ, Jason; Zaveri, Esha
Clean air, land, and oceans are critical for human health and nutrition and underpin much of the world’s economy. Yet they suffer from degradation, poor management, and overuse due to government subsidies. "Detox Development: Repurposing Environmentally Harmful Subsidies" examines the impact of subsidies on these foundational natural assets. Explicit and implicit subsidies—estimated to exceed US$7 trillion per year—not only promote inefficiencies but also cause much environmental harm. Poor air quality is responsible for approximately 1 in 5 deaths globally. And as the new analyses in this report show, a significant number of these deaths can be attributed to fossil fuel subsidies. Agriculture is the largest user of land worldwide, feeding the world and employing 1 billion people, including 78 percent of the world’s poor. But it is subsidized in ways that promote inefficiency, inequity, and unsustainability. Subsidies are shown to drive the deterioration of water quality and increase water scarcity by incentivizing overextraction. In addition, they are responsible for 14 percent of annual deforestation, incentivizing the production of crops that are cultivated near forests. These subsidies are also implicated in the spread of zoonotic and vector-borne diseases, especially malaria. Finally, oceans support the world’s fisheries and supply about 3 billion people with almost 20 percent of their protein intake from animals. Yet they are in a collective state of crisis, with more than 34 percent of fisheries overfished, exacerbated by open-access regimes and capacity-increasing subsidies. Although the literature on subsidies is large, this report fills significant knowledge gaps using new data and methods. In doing so, it enhances understanding of the scale and impact of subsidies and offers solutions to reform or repurpose them in efficient and equitable ways. The aim is to enhance understanding of the magnitude, consequences, and drivers of policy successes and failures in order to render reforms more achievable.
Where Are All the Jobs ?: A Machine Learning Approach for High Resolution Urban Employment Prediction in Developing Countries
(World Bank, Washington, DC, 2022-03) Barzin, Samira; Avner, Paolo; Rentschler, Jun; O’Clery, Neave; Avner, Paolo
Globally, both people and economic activity are increasingly concentrated in urban areas. Yet, for the vast majority of developing country cities, little is known about the granular spatial organization of such activity despite its key importance to policy and urban planning. This paper adapts a machine learning based algorithm to predict the spatial distribution of employment using input data from open access sources such as Open Street Map and Google Earth Engine. The algorithm is trained on 14 test cities, ranging from Buenos Aires in Argentina to Dakar in Senegal. A spatial adaptation of the random forest algorithm is used to predict within-city cells in the 14 test cities with extremely high accuracy (R- squared greater than 95 percent), and cells in out-of-sample ”unseen” cities with high accuracy (mean R-squared of 63 percent). This approach uses open data to produce high resolution estimates of the distribution of urban employment for cities where such information does not exist, making evidence-based planning more accessible than ever before.
Floods and Their Impacts on Firms: Evidence from Tanzania
(World Bank, Washington, DC, 2021-09) Rentschler, Jun; Thies, Stephan; De Vries Robbe, Sophie; Erman, Alvina; Hallegatte, Stéphane
This study explores how businesses in Tanzania are impacted by floods, and which strategies they use to cope and adapt. These insights are based on firm survey data collected in 2018 using a tailored questionnaire, covering a sample of more than 800 firms. To assess the impact of disasters on businesses, the study considers direct damages and indirect effects through infrastructure systems, supply chains, and workers. While direct on-site damages from flooding can be substantial, they tend to affect a relatively small share of firms. Indirect impacts of floods are more prevalent and sizable. Flood-induced infrastructure disruptions—especially electricity and transport—obstruct the operations of firms even when they are not directly located in flood zones. The effects of such disruptions are further propagated and multiplied along supply chains. The study estimates that supply chain multipliers are responsible for 30 to 50 percent of all flood-related delivery delays. To cope with these impacts, firms apply a variety of strategies. Firms mitigate supply disruptions by adjusting the size and geographical reach of their supply networks, and by adjusting inventory holdings. By investing in costly backup capacity (such as water tanks and electricity generators), firms mitigate the impact of infrastructure disruptions. The study estimates that only 13 percent of firms receive government support in the aftermath of floods.
Rapid Urban Growth in Flood Zones: Global Evidence since 1985
(World Bank, Washington, DC, 2022-04) Rentschler, Jun; Marconcini, Mattia; Su, Rui; Strano, Emanuele; Hallegatte, Stephane; Riom, Capucine; Avner, Paolo
As countries rapidly urbanize, settlements are expanding into hazardous flood zones. This study provides a global analysis of spatial urbanization patterns and the evolution of flood exposure between 1985 and 2015. Using high-resolution annual data, it shows that settlements across the world grew by 85 percent to over 1.28 million square kilometers. In the same period, settlements exposed to the highest flood hazard level increased by 122 percent. In many regions, risky growth is outpacing safe growth, particularly in East Asia, where high-risk settlements have expanded 60 percent faster than safe ones. Developing countries are driving the recent growth of flood exposure: 36,500 square kilometers of settlements were built in the world’s highest-risk zones since 1985–82 percent of which are in low- and middle-income countries. In comparison, recent growth in high-income countries has been relatively slow and safe. These results document a divergence in countries’ exposure to flood hazards. Rather than adapting their exposure to climatic hazards, many countries are actively increasing their exposure.
Illicit Schemes: Fossil Fuel Subsidy Reforms and the Role of Tax Evasion and Smuggling
(World Bank, Washington, DC, 2022-01) Rentschler, Jun
This study develops a computable general equilibrium model for Nigeria, which accounts for informality, tax evasion, and fuel smuggling. By studying the impact of fuel subsidy reform on consumption, tax incidence, and fiscal efficiency, it shows that the presence of illicit activities substantially strengthens the argument in favour of subsidy reform: First, fuel subsidy reform can shift the tax base to energy goods, which are less prone to tax evasion losses than for instance labour. Second, by reducing price differentials with neighbouring countries, subsidy reform reduces incentives for fuel smuggling. Overall, the results show that considering illicit activities reduces the welfare losses of fuel subsidy reform by at least 40 percent. In addition, fuel subsidy reductions (and by extension energy tax increases) have a strong progressive distributional impact. The findings hold under different revenue redistribution mechanisms, in particular uniform cash transfers and the reduction of pre-existing labour taxes.
Mobility and Resilience: A Global Assessment of Flood Impacts on Road Transportation Networks
(World Bank, Washington, DC, 2022-05) He, Yiyi; Rentschler, Jun; Avner, Paolo; Gao, Jianxi; Yue, Xiangyu; Radke, John; Avner, Paolo
This study provides the first global evaluation of both direct and indirect flood hazard impacts on road transportation networks. It constructs topological road networks for 2,564 human settlements, representing over 14 million kilometers of urban roads. It assesses their exposure to pluvial and fluvial flood risks under 10 scenarios, corresponding to different flood intensities (1:5 year to 1:1,000 year return periods). Under each scenario, the study analyzes direct infrastructure exposure and assesses the indirect effects of flood-induced mobility disruptions: route failures, travel delays, and travel distance increases. The results document a positive relationship between flood return period and flood impact (both direct and indirect). Compared with direct flood hazard exposure, the indirect impact of floods on mobility is more prominent and heterogeneous. The average share of the road network that is flooded by at least 0.3 meters is 3.64 percent (or 24.84 percent) under the 5-year (or 1,000-year) return period, yet 11.58 percent (or 65.67 percent) of the simulated trips fail in the same scenario. The results enable comparisons of exposure and vulnerability of road networks to flood hazards across countries, allowing the identification and prioritization of urban transport resilience measures.
Why Resilience Matters : The Poverty Impacts of Disasters
(World Bank, Washington, DC, 2013-11) Rentschler, Jun E.
This paper presents empirical evidence of the profound and long-term damages from adverse natural events on poverty. It analyzes 30 years of macro-level damage data from disasters (including earthquakes, floods, and storms), according to income groups, and shows that low-income countries incur disproportionately large damages relative to their assets. Furthermore, the paper reviews the micro-level evidence of disaster impacts on the livelihoods of the poorest households. The evidence suggests that the poor are significantly more vulnerable and exposed to the economic and human capital losses caused by disasters. It discusses detrimental long-term consequences for the income and welfare of the poor and the presence of poverty traps that result from damages to productive assets, health, and education. The roles of migration and ex-ante behavior are also discussed. In the context of climate change, the paper underscores the importance of considering the detrimental impacts of smaller but repeated crises, for instance caused by changes in local precipitation patterns. Lastly, the paper offers a brief discussion of policy options for strengthening resilience and highlights the need for further research for understanding the complex direct and indirect effects of disasters on the poor.
Oil Price Volatility, Economic Growth and the Hedging Role of Renewable Energy
(World Bank, Washington, DC, 2013-09) Rentschler, Jun E.
This paper investigates the adverse effects of oil price volatility on economic activity and the extent to which countries can hedge against such effects by using renewable energy. By considering the Realized Volatility of oil prices, rather than following the standard approach of considering oil price shocks in levels, the effects of factor price uncertainty on economic activity are analyzed. Sample countries represent developed and developing, oil importing and exporting and service/industry-based economies (United States, Japan, Germany, South Korea, India, and Malaysia) and thus complement the standard literature's analysis of Western OECD countries. In a vector auto-regressive setting, Granger causality tests, impulse response functions, and variance decompositions show that oil price volatility has more-adverse effects in all sample countries than oil price shocks alone can explain. The paper finds that the sensitivity to oil price volatility varies widely across countries and discusses various factors which may determine the level of sensitivity (such as sectoral composition and the energy mix). This implies that the standard approach of solely considering net oil importer-exporter status is not sufficient. Simulations of volatility shocks in hypothetical energy mixes (with increased renewable shares) illustrate the potential economic benefits resulting from efforts to disconnect the macroeconomy from volatile commodity markets. It is concluded that expanding renewable energy can in principle reduce an economy's vulnerability to oil price volatility, but a country-specific analysis would be necessary to identify concrete policy measures. Overall, the paper provides an additional rationale for reducing exposure and vulnerability to oil price volatility for the sake of economic growth.
Wading Out the Storm: The Role of Poverty in Exposure, Vulnerability and Resilience to Floods in Dar es Salaam
(World Bank, Washington, DC, 2019-08) Erman, Alvina; Tariverdi, Mercedeh; Obolensky, Marguerite; Chen, Xiaomeng; Vincent, Rose Camille; Malgioglio, Silvia; Rentschler, Jun; Hallegatte, Stephane; Yoshida, Nobuo
Dar es Salaam is frequently affected by severe flooding causing destruction and impeding daily life of its 4.5 million inhabitants. The focus of this paper is on the role of poverty in the impact of floods on households, focusing on both direct (damage to or loss of assets or property) and indirect (losses involving health, infrastructure, labor, and education) impacts using household survey data. Poorer households are more likely to be affected by floods; directly affected households are more likely female-headed and have more insecure tenure arrangements; and indirectly affected households tend to have access to poorer quality infrastructure. Focusing on the floods of April 2018, affected households suffered losses of 23 percent of annual income on average. Surprisingly, poorer households are not over-represented among the households that lost the most - even in relation to their income, possibly because 77 percent of total losses were due to asset losses, with richer households having more valuable assets. Although indirect losses were relatively small, they had significant well-being effects for the affected households. It is estimated that households’ losses due to the April 2018 flood reached more than US$100 million, representing between 2-4 percent of the gross domestic product of Dar es Salaam. Furthermore, poorer households were less likely to recover from flood exposure. The report finds that access to finance play an important role in recovery for households.