{"title":"Geography, income, and the incidence of a Massachusetts carbon tax","authors":"Susan Stratton Sayre","doi":"10.1016/j.jeem.2026.103296","DOIUrl":"10.1016/j.jeem.2026.103296","url":null,"abstract":"<div><div>I use spatial microsimulation to estimate the geographic incidence of the consumer-facing portion of various revenue-neutral carbon tax designs in Massachusetts. I identify a substantial urban-rural disparity in impacts that is reduced, but not eliminated, by proposed revenue-targeting mechanisms. I further demonstrate that seemingly small variations in the definition of rural households can have substantial impacts on urban-rural equity and the distribution of gains and losses. Proposed policies are highly progressive in the aggregate with most low-income households receiving more in rebates than they pay in taxes, but notable numbers of low-income households are likely to experience significant losses. Methodologically, I improve upon related work, by considering the full distribution of possible effects that each household might experience and demonstrate the importance of this approach. Politically, I find that Democratic-held districts fare better under all policy variations. There are noticeable trade-offs between policies aimed at improving median outcomes in each district and those designed to minimize the number of households facing significant financial losses within each district.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"137 ","pages":"Article 103296"},"PeriodicalIF":5.9,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146189033","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A helping hand for the regulator: The role of industry associations in firm water pollution abatement in China","authors":"Jinyong Zhan , Dingyan He , Mengjun Yang","doi":"10.1016/j.jeem.2026.103306","DOIUrl":"10.1016/j.jeem.2026.103306","url":null,"abstract":"<div><div>Global industrialization and urbanization have intensified water pollution, posing significant challenges to environmental governance. Formal environmental regulations often face limitations, such as high monitoring costs and frequent circumvention by firms. Thus, it is crucial to explore the complementary role of informal environmental regulation. We use panel data from the Annual Survey of Industrial Firms (ASIF) and the Environmental Survey and Reporting (ESR) database for the period 1998–2013. We employ a staggered difference-in-differences (DID) model and an instrumental variable approach to investigate the impact of industry associations on firms' water pollution abatement. The study finds that after the establishment of an industry association, a firm's chemical oxygen demand (COD) emissions significantly decrease by 9.9%. This effect is more pronounced in regions with lower levels of digital economy development and stronger environmental regulations. Mechanism analysis suggests that industry associations reduce emissions by both lowering COD generation and increasing its removal rate, forming a three-pronged approach: source reduction, process optimization, and end-of-pipe treatment. This study offers a novel perspective and causal evidence for research on informal environmental regulation. It contributes to the theoretical framework of environmental governance and provides theoretical and methodological guidance for future research.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"137 ","pages":"Article 103306"},"PeriodicalIF":5.9,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146189032","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The differential benefits of market-based water pollution control policy","authors":"Zach Raff , Andrew Meyer , Arthur R. Wardle","doi":"10.1016/j.jeem.2026.103301","DOIUrl":"10.1016/j.jeem.2026.103301","url":null,"abstract":"<div><div>This paper examines the water quality benefits of Wisconsin’s phosphorus rule, which created the most stringent water quality standards for phosphorus in the US. We estimate the impact of this policy on phosphorus concentrations downstream of affected point sources and investigate the differential benefits realized from compliance with the rule via treatment technology upgrade versus compliance through offset trading. Leveraging an upstream-downstream research design, we find that the phosphorus rule reduces total phosphorus concentrations downstream of regulated point sources by 27%. We further find that technological upgrades yield larger reductions (31%) than offset trading (22%), but offsets represent the cost-effective option. Upgrading facilities pay roughly $34,000 per year in capital costs to produce the same water quality improvements as offset trades that cost $6000 per year.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"137 ","pages":"Article 103301"},"PeriodicalIF":5.9,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146189031","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Lost and found: A natural field experiment on charitable donations, extinctions, and finance for conservation","authors":"Michael K. Tanner","doi":"10.1016/j.jeem.2026.103295","DOIUrl":"10.1016/j.jeem.2026.103295","url":null,"abstract":"<div><div>This paper provides the first causal field evidence that loss aversion shapes pro environmental behavior in biodiversity conservation. Partnering with the Charles Darwin Foundation in the Galápagos, I exploit two rare real world events: the confirmed extinction of a tortoise subspecies and the rediscovery of another once believed extinct. These events motivated randomized email campaigns sent to 3983 prior donors in the Global North. Stratified randomization on past giving, nationality, and prior engagement supports internal validity, while real donors and real biodiversity outcomes preserve external validity. By focusing on actual donation behavior rather than intentions or stated willingness to pay, the study addresses a key gap in the literature. Results show that extinction framing raises the probability of donating from 1.2 percent to 2.1 percent (75 percent) and increases the average unconditional donation from USD 0.17 to USD 0.32 (about 88 percent), while rediscovery yields higher reported happiness and engagement. Together, the findings indicate complementary roles and possible long-term trade-offs, and show that real biodiversity changes can be harnessed to mobilize conservation finance and strengthen pro-environmental behavior.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"137 ","pages":"Article 103295"},"PeriodicalIF":5.9,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146189029","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Split incentives and energy efficiency investment: Evidence from the housing market","authors":"Erdal Aydin , Piet Eichholtz , Rogier Holtermans , Santiago Bohórquez Correa","doi":"10.1016/j.jeem.2025.103277","DOIUrl":"10.1016/j.jeem.2025.103277","url":null,"abstract":"<div><div>Investments in energy efficiency in the built environment play a crucial role in global efforts to combat climate change. However, a significant obstacle to these investments arises from the differing incentives between landlords and tenants in the housing market. Landlords, who are typically not responsible for utility costs, may choose to invest less in energy efficiency improvements if these investments are not adequately reflected in rents. Our study provides empirical evidence of this market distortion, drawing on a comprehensive panel dataset from the Dutch housing market covering 3.8 million homes. We implement a quasi-experimental event study design that exploits transitions from rental to owner-occupied status while holding both the dwelling and the household constant. This identification strategy enables us to isolate changes in energy use attributable to tenure status. Our findings indicate a gradual decline in natural gas consumption following the transition to home-ownership, with an average reduction of about 2% that increases to as much as 5% nine years after the transition. In electricity consumption, split incentives are less important, given that tenants control the use and stock of their appliances, and we find no effect of changes in tenure status. Together, these findings provide empirical support for the relevance of tenure-based incentives in shaping energy-related decisions and can inform the design of targeted policies aimed at improving the energy performance of the rental housing stock.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"137 ","pages":"Article 103277"},"PeriodicalIF":5.9,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145979357","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Bhavya Srivastava , Kibrom Tafere , A. Patrick Behrer
{"title":"High temperature and learning outcomes: Evidence from Ethiopia","authors":"Bhavya Srivastava , Kibrom Tafere , A. Patrick Behrer","doi":"10.1016/j.jeem.2025.103278","DOIUrl":"10.1016/j.jeem.2025.103278","url":null,"abstract":"<div><div>What is the impact of high temperatures on human capital accumulation in Sub-Saharan Africa? Rising temperatures, due to climate change, and the role of human capital in driving development make answering this question imperative to understand the long-term impacts of climate change in the world’s most climate vulnerable region. We use data from 2003–2019 for 2.47 million test takers of a national high-stakes high-school leaving exam in Ethiopia to study the impacts of temperature on learning outcomes. We find that high temperatures during the school year leading up to the exam reduce test scores, controlling for temperatures during the exam. Female students appear slightly less affected by heat compared to their male counterparts. We do not find evidence to reject the hypothesis that these effects are driven primarily by within-classroom temperatures rather than indirect effects on agriculture.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"137 ","pages":"Article 103278"},"PeriodicalIF":5.9,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146073603","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Using satellite-observed geospatial inundation data to identify the impacts of floods on firm-level performance: The case of China during 2000–2009","authors":"Pao-Li Chang , Fan Zheng","doi":"10.1016/j.jeem.2025.103276","DOIUrl":"10.1016/j.jeem.2025.103276","url":null,"abstract":"<div><div>This paper compiles high-resolution geospatial inundation areas of China for the period 2000–2009 based on satellite imagery repositories filtered by the Global Flood Database (GFD). In parallel, we geocode a comprehensive firm-level dataset of China and combine these two sets of geospatial data to identify the set of inundated firms in each year of flood events, as well as the distances of all non-inundated firms from the inundated areas. Given the high-resolution inundation data, we adopt a generalized dynamic-panel specification to estimate dynamic and spatial spillover effects of floods on firm-level production activities (including outputs, capital and labor inputs, and productivities). We find negative and persistent effects of floods on firm-level performance measures, and negative but short-run spillover effects on non-inundated firms in nearby neighborhoods. In contrast, non-inundated firms located 6–12 km away from the inundated area expanded their production in the long run, suggesting reallocation of production activities/facilities away from the inundation area toward the outer rings of the neighborhood. We conduct various robustness checks and extended analyses, identify moderating/aggravating factors of inundation impacts, assess the aggregate effects at the economy-wide, province, and sector levels, and quantify the propagation of flood exposures via the input–output linkages.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"137 ","pages":"Article 103276"},"PeriodicalIF":5.9,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145940302","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Becka Brolinson , William M. Doerner , Arne Johan Pollestad , Michael J. Seiler
{"title":"European energy crisis: Did electricity prices shock real estate markets?","authors":"Becka Brolinson , William M. Doerner , Arne Johan Pollestad , Michael J. Seiler","doi":"10.1016/j.jeem.2026.103283","DOIUrl":"10.1016/j.jeem.2026.103283","url":null,"abstract":"<div><div>This paper investigates how the 2021–2022 European energy crisis, a major macro-financial shock, affected the relative valuation of energy-efficient homes in Norway. Leveraging the country’s electricity market—characterized by five distinct regions with varying exposure to European power prices—we analyze how energy price shocks influence housing market dynamics with a triple difference-in-differences regression framework. We find that home prices fell significantly in regions affected by the shock, with average value losses ranging from 1.2% to 3.6%. Energy-efficient homes experienced smaller price declines, particularly in the single-family home segment, indicating a differential price response during the shock. Moreover, the negative price effects persist despite the introduction of electricity price subsidies. These findings highlight the complex relations among energy costs, real estate market valuations, and housing characteristic heterogeneity by offering generalizable insights into the resilience of housing markets to unanticipated shocks and the role of policy interventions in mitigating their effects.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"137 ","pages":"Article 103283"},"PeriodicalIF":5.9,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145940304","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Willingness to pay for climate mitigation: Evidence from Latin America","authors":"Allen Blackman , Marc Jeuland , Emilio Leguizamo","doi":"10.1016/j.jeem.2026.103297","DOIUrl":"10.1016/j.jeem.2026.103297","url":null,"abstract":"<div><div>The ability of countries in Latin America to achieve net zero greenhouse gas (GHG) emissions by mid-century, the target set by the Paris Agreement, will depend critically on citizen support. To gauge this support, we administered a contingent valuation survey to representative samples in six of the region's leading GHG emitting countries and in the United States, which is used as a comparator. The survey elicits respondents' willingness to pay (WTP) for achieving global net zero by 2050 and uses a split sample design to test whether WTP is affected by the distribution of decarbonization costs across households. The mean WTP estimate for the pooled sample of six Latin American study countries is on par both with our estimate for the United States, and with estimates from a recent CV study for China, Sweden, and the United States. Moreover, this mean exceeds these estimates when all are normalized by income. However, among the Latin American study countries, mean WTPs for Argentina and Brazil are relatively low. We also find that the distribution of the costs of decarbonization across households does not have a clear effect on WTP and that the drivers of WTP for our Latin American study countries are similar to those the literature has identified in other regions.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"137 ","pages":"Article 103297"},"PeriodicalIF":5.9,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146189034","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Physical climate risk and the pricing of bank loans","authors":"Karol Kempa","doi":"10.1016/j.jeem.2025.103280","DOIUrl":"10.1016/j.jeem.2025.103280","url":null,"abstract":"<div><div>This paper analyses how physical climate risk affects the pricing of loans. Using a global dataset of almost 86,000 syndicated bank loans, we find that a higher climate vulnerability of a firm’s host country leads to higher costs of borrowing. The effects of physical climate risk on loan pricing are particularly large if loans have long maturities and if borrowing firms are in financial distress. In addition to loan pricing, banks also adjust other loan terms, such as loan size, collateral requirements, or fees, to manage their exposure to their borrowers’ physical climate risk. As climate risk may also directly affect loan pricing, e.g., via general updates of credit risk models due to observed changes in climate risk, we extend the analysis to firm-level credit risk ratings. The results show that physical climate risk negatively affects long-term credit risk ratings, while it does not play a role in short-term credit risk, and hence support the proposed channel that physical climate risk affects loan pricing via its effect on firms’ default probabilities.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"137 ","pages":"Article 103280"},"PeriodicalIF":5.9,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145940301","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}