{"title":"Love of variety and the welfare effects of trade in renewable resources","authors":"Isha Dube, Martin Quaas","doi":"10.1016/j.jeem.2024.102968","DOIUrl":"10.1016/j.jeem.2024.102968","url":null,"abstract":"<div><p>We analyze welfare effects of trade in renewable resources, which is induced by consumer love of variety in resource consumption. We model two countries, one being relatively wealthy in labor and capital, the other one being relatively resource abundant. For open-access resources, we show that trade freeness benefits the country that is wealthy in labor and capital, as it improves access to a larger variety of resources, especially to those of the resource-abundant country. The resource-abundant country also benefits from improved access to variety, but due to the increased resource demand and resulting overuse, this country’s welfare may depend on trade freeness in a non-monotonic fashion. We derive conditions such that welfare first decreases and then increases when trade freeness varies from autarky to costless trade. In direct comparison, autarky may generate higher welfare than costless trade only under restrictive conditions, in particular if endowments are very asymmetric and if the love of variety effect is weak. We also consider resource harvesting under private property rights and show that only for a sufficiently low discount rate the welfare increase from trade freeness in the resource-abundant country is sustainable.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102968"},"PeriodicalIF":4.6,"publicationDate":"2024-03-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000421/pdfft?md5=579ee37fb84db9f9a8a8df73d61ac59b&pid=1-s2.0-S0095069624000421-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140075160","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"International environmental agreements when countries behave morally","authors":"Thomas Eichner , Rüdiger Pethig","doi":"10.1016/j.jeem.2024.102955","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.102955","url":null,"abstract":"<div><p>In the game-theoretical literature on forming international environmental agreements (IEAs) countries use to be self-interested materialists and stable coalitions are small. This paper analyzes IEA games with identical countries that exhibit Kantian moral behavior. Kantians are concerned with doing the right thing which means that they take those actions and only those actions that they advocate all others take as well. Countries may behave morally with respect to both emissions (reduction) and membership in an IEA. If countries are emissions Kantians or membership Kantians the equilibrium of the IEA games is socially optimal. To model more realistic Kantian behavior, we define an emissions [membership] moralist as a country whose welfare is a weighted average of the welfare of an emissions [membership] Kantian and a materialist. The game with emissions moralists produces stable coalitions not larger than those in the standard game with materialists. The game with membership moralists yields stable coalitions that are increasing in the membership morality. The aggregate emissions decline if the degree of morality of either type of moralists increases. Finally, we characterize the equilibrium of an IEA game with moderate moralists with respect to both emissions and membership.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102955"},"PeriodicalIF":4.6,"publicationDate":"2024-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000299/pdfft?md5=2e3ee8978d7dffb436024fa19c26009c&pid=1-s2.0-S0095069624000299-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140052452","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Pollution and learning: Causal evidence from Obama’s Iran sanctions","authors":"Anthony Heyes , Soodeh Saberian","doi":"10.1016/j.jeem.2024.102965","DOIUrl":"10.1016/j.jeem.2024.102965","url":null,"abstract":"<div><p>We provide evidence of a substantial impact of pollution in the vicinity of a school on student learning using standardized test results from the universe of Tehran junior schools. The 2010 US sanctions prevented the sale of refined petroleum products to Iran. Causal identification exploits that the impact of sanctions on air quality in the vicinity of schools in the city varied according to the proximity of each school to roads. Relative academic performance dropped at more road-exposed (variously-measured) schools. Roads upwind appear to have four times the impact compared to those downwind, aligning with the prevailing wind direction which blows 80% of the time from the west, a finding that also provides compelling evidence against alternative interpretations.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102965"},"PeriodicalIF":4.6,"publicationDate":"2024-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140075220","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}
Emily L. Pakhtigian , Sonia Aziz , Kevin J. Boyle , Ali S. Akanda , S.M.A. Hanifi
{"title":"Early warning systems, mobile technology, and cholera aversion: Evidence from rural Bangladesh","authors":"Emily L. Pakhtigian , Sonia Aziz , Kevin J. Boyle , Ali S. Akanda , S.M.A. Hanifi","doi":"10.1016/j.jeem.2024.102966","DOIUrl":"10.1016/j.jeem.2024.102966","url":null,"abstract":"<div><p>In Bangladesh, cholera poses a significant environmental health risk. Yet, information about the severity of cholera risk is limited as risk varies over time and changing weather patterns make historical cholera risk predictions less reliable. In this paper, we examine how households use geographically and temporally personalized cholera risk predictions to inform their beliefs and behaviors related to cholera and its aversion. We estimate how access to a smartphone application containing monthly cholera risk predictions unique to a user’s home location affects households’ beliefs about their cholera risk and their water use and hygiene behaviors. We find that households with access to this application feel more equipped to respond to environmental and health risks and reduce their reliance on surface water for bathing and washing – a common cholera transmission pathway. We do not find that households invest additional resources into drinking water treatment, nor do we find reductions in self-reported cholera incidence. Further, households with a static, non-personalized app containing public health information about cholera exhibit similar patterns of beliefs updating. Taken together, our results suggest that access to risk information can help households make safer water choices, yet improving design and credibility remain important dimensions for increasing application usability.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102966"},"PeriodicalIF":4.6,"publicationDate":"2024-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140076382","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":"Taxes versus quantities reassessed","authors":"Larry Karp , Christian Traeger","doi":"10.1016/j.jeem.2024.102951","DOIUrl":"10.1016/j.jeem.2024.102951","url":null,"abstract":"<div><p>The ongoing debate concerning the ranking of taxes versus cap and trade for climate policy begins with Weitzman’s (1974) seminal slope-based criterion and concludes that taxes likely dominate quotas. We challenge this conclusion and the intuition behind it. Because technology shocks and pollution stocks are both persistent, a technology shock alters the intercepts of both the marginal damage and abatement cost curves. The ratio of these two intercept shifts is as important as the ratio of slopes in ranking policies. Technology innovations diffuse gradually, strengthening the importance of the ratio of intercept shifts. For plausible parameter combinations, quotas can dominate taxes.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102951"},"PeriodicalIF":4.6,"publicationDate":"2024-02-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140017885","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":"Beyond the annual averages: Impact of seasonal temperature on employment growth in US counties","authors":"Ha Minh Nguyen","doi":"10.1016/j.jeem.2024.102946","DOIUrl":"10.1016/j.jeem.2024.102946","url":null,"abstract":"<div><p>Using quarterly temperature and employment data between 1990 and 2021, this paper uncovers nuanced evidence on the impact of seasonal temperature within US counties: higher winter temperature increases private sector employment growth while higher summer temperature decreases it. The impacts of higher temperature in milder seasons, fall and spring, are statistically insignificant. Moreover, the negative impact of higher summer temperature persists while the positive impact of higher temperature in the winter is more short-lived. The negative effects of a hotter summer are pervasive and persistent in many sectors: most significantly in “Construction” and “Leisure and Hospitality” but also in “Trade, Transport, and Utilities” and “Financial Activities”. In contrast, the positive effects of a warmer winter are less pervasive. The employment effect of a hotter summer has been more severe in recent decades.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102946"},"PeriodicalIF":4.6,"publicationDate":"2024-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140017787","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":"On breadth and depth of climate agreements with pledge-and-review bargaining","authors":"Thomas Eichner, Mark Schopf","doi":"10.1016/j.jeem.2024.102952","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.102952","url":null,"abstract":"<div><p>This paper analyzes the effects of partial cooperation on the breadth and depth of climate agreements in dynamic games in which countries emit, invest in green technology, decide to participate in a climate coalition and participants negotiate the contract duration. When choosing emissions reductions (pledges), coalition countries apply Harstad’s (2023a) pledge-and-review bargaining and partially cooperate. We distinguish between stock-independent and stock-dependent investment costs. It is shown that narrow-but-deep agreements may be welfare superior to broad-but-shallow agreements for signatories. In addition, if the degree of partial cooperation is sufficiently high, broad-and-deep agreements and even first best can be achieved.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102952"},"PeriodicalIF":4.6,"publicationDate":"2024-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000263/pdfft?md5=cb925fed5f173b65993fa5bc2a2bd2d4&pid=1-s2.0-S0095069624000263-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139993090","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Francisco J. André , Carmen Arguedas , Sandra Rousseau
{"title":"Strategic pricing, lifespan choices and environmental implications of peer-to-peer sharing","authors":"Francisco J. André , Carmen Arguedas , Sandra Rousseau","doi":"10.1016/j.jeem.2024.102953","DOIUrl":"10.1016/j.jeem.2024.102953","url":null,"abstract":"<div><p>Peer-to-peer sharing has become increasingly popular in recent years. Many digital platforms exist that allow individuals to use others’ belongings part-time. These platforms explicitly mention their green credentials, as the environmental benefits of such sharing initiatives are often taken for granted. However, there is a recent empirical literature showing evidence of the contrary. We propose a theoretical framework to analyze the economic and environmental implications of peer-to-peer sharing. We present a stylized model where a monopolist supplies a product that is suitable for rent on a sharing platform. Interestingly, we find that the existence of such a platform is typically beneficial for the monopolist, especially in the long run, when she can optimally anticipate the effects of her decisions on the sharing market. Such a scenario may not be beneficial for consumers, especially for those who rent the good rather than buy it. Moreover, the existence of the sharing platform induces higher use and (under some likely conditions) larger production levels and shorter product lifespans. The combination of these three aspects contributes to a worse environmental impact with sharing, which provides a theoretical rationale for the aforementioned empirical studies.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102953"},"PeriodicalIF":4.6,"publicationDate":"2024-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000275/pdfft?md5=08dbfb8b3408646fde6e537ed90e6e0a&pid=1-s2.0-S0095069624000275-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140017789","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Emission trading schemes and cross-border mergers and acquisitions","authors":"Yajie Chen , Dayong Zhang , Kun Guo , Qiang Ji","doi":"10.1016/j.jeem.2024.102949","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.102949","url":null,"abstract":"<div><p>The Emission Trading Scheme (ETS) provides a market mechanism to mitigate carbon emissions and has been introduced in many countries. Its fundamental idea is to make carbon emissions costly. Consequently, firms undertaking cross-border expansions may have to consider this extra cost when entering markets with an ETS. They may avoid these countries or relocate their investment to countries without an ETS. Using a large sample of international firms between 2002 and 2019, we investigate this issue via a difference-in-difference approach. Our results show that ETS implementation leads to significantly less cross-border merger and acquisition (M&A) deals in the host countries, indicating an avoidance effect or potential carbon leakage. Further analysis reveals that ETS implementation decreases firms’ financial performance and increases market risks, both contributing to cross-border M&A decisions. We demonstrate strong evidence of cross-sectoral differences, where carbon-intensive sectors tend to bear higher costs. This study contributes to the environmental economics and finance literature and provides evidence with policy relevance.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"124 ","pages":"Article 102949"},"PeriodicalIF":4.6,"publicationDate":"2024-02-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139975967","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":"Benefits of diesel emission regulations: Evidence from the World's largest low emission zone","authors":"Cheolmin Kang , Mitsuru Ota , Koichi Ushijima","doi":"10.1016/j.jeem.2024.102944","DOIUrl":"10.1016/j.jeem.2024.102944","url":null,"abstract":"<div><p>We examined the impact of diesel emission regulations on air quality, land prices, and infant health in the Tokyo metropolitan area. The results reveal that as air pollution concentrations improved, land prices increased more in areas with higher diesel vehicle traffic, even after controlling for non-regulated vehicle traffic. In contrast, the concentrations of non-regulated air pollutants were unaffected. Estimates based on the hedonic approach show that the benefit of air quality improvement in the metropolitan area is about 14 times the cost. Improved air quality also improved infant health. The improvement in infant mortality with a one-unit improvement in suspended particulate matter was similar in magnitude to published results from the United States.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102944"},"PeriodicalIF":4.6,"publicationDate":"2024-02-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000184/pdfft?md5=2a39e427ab358b8fd7af7927d60b7276&pid=1-s2.0-S0095069624000184-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139953299","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}