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Input subsidies and the depletion of natural capital: Chinese distant water fishing
IF 5.5 3区 经济学
Journal of Environmental Economics and Management Pub Date : 2025-02-06 DOI: 10.1016/j.jeem.2025.103127
Gabriel Englander , Jihua Zhang , Juan Carlos Villaseñor-Derbez , Qutu Jiang , Mingzhao Hu , Olivier Deschenes , Christopher Costello
{"title":"Input subsidies and the depletion of natural capital: Chinese distant water fishing","authors":"Gabriel Englander ,&nbsp;Jihua Zhang ,&nbsp;Juan Carlos Villaseñor-Derbez ,&nbsp;Qutu Jiang ,&nbsp;Mingzhao Hu ,&nbsp;Olivier Deschenes ,&nbsp;Christopher Costello","doi":"10.1016/j.jeem.2025.103127","DOIUrl":"10.1016/j.jeem.2025.103127","url":null,"abstract":"<div><div>Input subsidies in natural resource sectors are widely believed to deplete the natural capital on which these sectors depend. However, estimating the causal effect of subsidies on resource extraction has been stymied by identification and data challenges. China’s fishing fleet is the world’s largest, and in 2016 the government changed its fuel subsidy policy for distant water vessels to one that increases with predetermined vessel characteristics. Regression discontinuity estimates imply a long-run equilibrium elasticity of fishing hours with respect to fuel subsidies of 2.2, though these estimates exhibit only modest precision according to randomization inference. Back-of-the-envelope calculations suggest that reducing Chinese distant water fuel subsidies by 50% could increase fish stocks across ocean regions by a median of 5.5%.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103127"},"PeriodicalIF":5.5,"publicationDate":"2025-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143419436","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}
引用次数: 0
Competition for carbon storage
IF 5.5 3区 经济学
Journal of Environmental Economics and Management Pub Date : 2025-02-01 DOI: 10.1016/j.jeem.2025.103128
Rolf Golombek , Michael Hoel , Snorre Kverndokk , Stefano Ninfole , Knut Einar Rosendahl
{"title":"Competition for carbon storage","authors":"Rolf Golombek ,&nbsp;Michael Hoel ,&nbsp;Snorre Kverndokk ,&nbsp;Stefano Ninfole ,&nbsp;Knut Einar Rosendahl","doi":"10.1016/j.jeem.2025.103128","DOIUrl":"10.1016/j.jeem.2025.103128","url":null,"abstract":"<div><div>It is widely recognized that a cost-efficient way to achieve the climate targets of the Paris agreement requires investment in carbon capture and storage (CCS). However, to trigger sizeable investment in CCS the carbon price must exceed the historic carbon prices. This paper examines whether a higher price of carbon enhances competition of storage services and thus leads to lower costs of CCS. Using a Hotellling model with two storage sites, each being located at each end of the Hotelling line, we show that there are three alternative competition regimes. The level of the carbon tax determines which regime materializes. For “low” carbon taxes, there is no competition between the two storage firms. For “high” carbon taxes, there is standard Bertrand competition between the two storage firms. Finally, for “intermediate” carbon taxes, there is so called partial competition with multiple equilibria. Contrary to the standard conclusion on competition, we find that when each storage site is imposed to charge the same price for all its clients, the price under monopoly is lower than under partial competition. We offer several extensions of the model as well as numerical illustrations. With our reference parameter values and a carbon tax sufficiently high to reach the Paris targets, we find that we may end in a partial competition regime.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103128"},"PeriodicalIF":5.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143274413","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}
引用次数: 0
What drives the long-term relationship between economic development and environmental quality? The role of spatial dispersion vs. agglomeration
IF 5.5 3区 经济学
Journal of Environmental Economics and Management Pub Date : 2025-01-31 DOI: 10.1016/j.jeem.2025.103126
JunJie Wu , Kathleen Segerson , Christian Langpap
{"title":"What drives the long-term relationship between economic development and environmental quality? The role of spatial dispersion vs. agglomeration","authors":"JunJie Wu ,&nbsp;Kathleen Segerson ,&nbsp;Christian Langpap","doi":"10.1016/j.jeem.2025.103126","DOIUrl":"10.1016/j.jeem.2025.103126","url":null,"abstract":"<div><div>The dramatic improvement in air quality in major Chinese cities in recent years has led to renewed interest in the question of whether economic development allows a country to “grow” out of its environmental problems. We shed new light on this question by identifying a new factor that can drive the long-term relationship between economic development and environmental quality, namely, a spatial effect that arises from a tradeoff between environmental quality and agglomeration economies. We show theoretically that this spatial effect can lead to an inverted U-shaped relationship between income and pollution, i.e., an environmental Kuznets curve. In addition, we decompose changes in US air pollution concentrations from 1990 to 2017 to allow for a possible spatial effect. Results point to the potential importance of a spatial effect in explaining the reductions in carbon monoxide (CO) concentrations. However, little of the change in sulfur dioxide (SO<sub>2</sub>) concentrations in the US can be attributed to a potential spatial effect.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"131 ","pages":"Article 103126"},"PeriodicalIF":5.5,"publicationDate":"2025-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143455049","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}
引用次数: 0
Why green subsidies are preferred to carbon taxes: Climate policy with heightened carbon tax salience
IF 5.5 3区 经济学
Journal of Environmental Economics and Management Pub Date : 2025-01-31 DOI: 10.1016/j.jeem.2025.103129
Frederick van der Ploeg
{"title":"Why green subsidies are preferred to carbon taxes: Climate policy with heightened carbon tax salience","authors":"Frederick van der Ploeg","doi":"10.1016/j.jeem.2025.103129","DOIUrl":"10.1016/j.jeem.2025.103129","url":null,"abstract":"<div><div>Policy makers must take account of the fact that carbon taxes are highly unpopular. Once policy makers take this into account, they should adopt a modified targeting principle by setting the optimal carbon tax below the Pigouvian tax (i.e., the social cost of carbon) and excessively subsidising products that are made with renewable energy. We numerically illustrate these behavioural biases in climate policies in the face of heightened carbon tax salience and note that this helps to explain distortions in current climate policies. We find that governments might then even take the easy option of green spending and fossil fuel subsidies rather than taxing carbon emissions. This is costly as welfare is lower than it would be without behavioural misperceptions.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103129"},"PeriodicalIF":5.5,"publicationDate":"2025-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143274414","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}
引用次数: 0
The enduring effects of China’s Payments for Ecosystem Services: Short- and long-term industrial transformations
IF 5.5 3区 经济学
Journal of Environmental Economics and Management Pub Date : 2025-01-27 DOI: 10.1016/j.jeem.2025.103119
Wen Wang , Qi Pan
{"title":"The enduring effects of China’s Payments for Ecosystem Services: Short- and long-term industrial transformations","authors":"Wen Wang ,&nbsp;Qi Pan","doi":"10.1016/j.jeem.2025.103119","DOIUrl":"10.1016/j.jeem.2025.103119","url":null,"abstract":"<div><div>Payments for Ecosystem Services (PES) policies are crucial for forest conservation and restoration. While initially restricting the availability of land for primary agricultural activities, these policies can catalyze value-added transformations in the agricultural sectors through the redistribution of resources and labor. Using county-level business registration data from 1998 to 2015, this study examines the agricultural transitions and industrial shifts resulting from China’s Sloping Land Conversion Program (SLCP). Employing a staggered difference-in-differences approach, we observed an annual increase of 24.37 agricultural enterprises and a 2.55% annual rise in agricultural industries within SLCP counties. Further analysis indicates that labor mobility influences the changes in the agro-industries. Over the long term, the availability of transportation and internet services fosters agro-industrial growth; however, in the short term, these factors impede immediate growth by accelerating labor out-migration.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103119"},"PeriodicalIF":5.5,"publicationDate":"2025-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143183281","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}
引用次数: 0
Climate change and fractional outcomes: A long-run panel study of U.S. crop failure rates and pasture rates
IF 5.5 3区 经济学
Journal of Environmental Economics and Management Pub Date : 2025-01-23 DOI: 10.1016/j.jeem.2024.103116
Seung Min Kim , Robert Mendelsohn
{"title":"Climate change and fractional outcomes: A long-run panel study of U.S. crop failure rates and pasture rates","authors":"Seung Min Kim ,&nbsp;Robert Mendelsohn","doi":"10.1016/j.jeem.2024.103116","DOIUrl":"10.1016/j.jeem.2024.103116","url":null,"abstract":"<div><div>This paper adopts the Fractional Response Model (Papke et al., 1996) to the Mérel et al. (2021) panel model to study warming effects on county crop failure and pasture rates across the United States. Warming is predicted to increase national crop failure rates by 0.5 percentage points per <span><math><mrow><mo>°</mo><mi>C</mi></mrow></math></span> but not change national pasture rates. Counties with high average failure rates in the southern Great Plains-Rocky Mountain regions are especially vulnerable to warming. Counties in the north will pasture less and counties in the south will pasture more cropland with warming. In contrast, covariates that increase crop productivity, such as groundwater irrigation availability, reduce pasture rate and failure rate. These crop failure and pasture effects must be added to the yield effects reported in the literature to get a complete picture of the effects of climate change on agriculture.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103116"},"PeriodicalIF":5.5,"publicationDate":"2025-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143183280","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}
引用次数: 0
Insurance and extraction incentives in a common pool resource: Evidence from groundwater use in the high plains
IF 5.5 3区 经济学
Journal of Environmental Economics and Management Pub Date : 2025-01-20 DOI: 10.1016/j.jeem.2025.103125
Matthew R. Sloggy , R. Aaron Hrozencik , Dale T. Manning , Chris G. Goemans , Roger L. Claassen
{"title":"Insurance and extraction incentives in a common pool resource: Evidence from groundwater use in the high plains","authors":"Matthew R. Sloggy ,&nbsp;R. Aaron Hrozencik ,&nbsp;Dale T. Manning ,&nbsp;Chris G. Goemans ,&nbsp;Roger L. Claassen","doi":"10.1016/j.jeem.2025.103125","DOIUrl":"10.1016/j.jeem.2025.103125","url":null,"abstract":"<div><div>Although insurance is an important risk management tool in many resource-dependent sectors, its connections to natural resource use are not well understood. We estimate the impact of US federal crop insurance pricing policy on the private use of common pool groundwater in the High Plains region of the United States. Field level panel data on insurance purchases and groundwater extraction allow us to exploit spatial discontinuities in insurance prices at county borders while instrumenting for endogenous prices. A theoretical model describes the mechanisms connecting insurance and resource extraction through groundwater intensity and irrigated acreage. Empirical results demonstrate that a 1% increase in irrigated insurance prices decreases total groundwater use by 0.501%, irrigated acreage by 0.266%, and irrigation per acre by 0.283%. Simulation results suggest that reducing subsidies for irrigated insurance by a recently considered 6.2 percentage points decreases groundwater use by 7.47%. These results suggest that insurance price subsidies may have unintended consequences for natural resource use but could be designed to complement conservation objectives.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103125"},"PeriodicalIF":5.5,"publicationDate":"2025-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143183282","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}
引用次数: 0
The effect of air pollution on fertility in 657 European regions
IF 5.5 3区 经济学
Journal of Environmental Economics and Management Pub Date : 2025-01-20 DOI: 10.1016/j.jeem.2024.103111
Árpád Stump , Ágnes Szabó-Morvai
{"title":"The effect of air pollution on fertility in 657 European regions","authors":"Árpád Stump ,&nbsp;Ágnes Szabó-Morvai","doi":"10.1016/j.jeem.2024.103111","DOIUrl":"10.1016/j.jeem.2024.103111","url":null,"abstract":"<div><div>This study examines the impact of ambient air pollution on birth rates in Europe. We estimate the causal effect of air pollution on fertility by utilizing variations in wind speed and the number of heating days as instrumental variables for air quality. Our analysis encompasses 657 regions of NUTS 3 level, with each region having 2 to 6 years of observations between 2013 and 2020. Thus, our study is the first to extend this analysis to multiple countries, pollutants, and years. Our findings indicate that a one standard deviation increase in particulate matter concentration levels leads to a 14.1% decrease in birth rates the following year and an additional 17.2% decrease two years later. Moreover, a similar increase in air pollution has a more pronounced adverse effect on fertility in countries with lower GDP. Other pollutants play little role in shaping fertility outcomes. This result is important for environmental policies with limited resources.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103111"},"PeriodicalIF":5.5,"publicationDate":"2025-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143183278","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}
引用次数: 0
The effect of tailored information for the uptake of carsharing, evidence from a field experiment in Oslo
IF 5.5 3区 经济学
Journal of Environmental Economics and Management Pub Date : 2025-01-19 DOI: 10.1016/j.jeem.2025.103121
Alice Ciccone, Paal Brevik Wangsness
{"title":"The effect of tailored information for the uptake of carsharing, evidence from a field experiment in Oslo","authors":"Alice Ciccone,&nbsp;Paal Brevik Wangsness","doi":"10.1016/j.jeem.2025.103121","DOIUrl":"10.1016/j.jeem.2025.103121","url":null,"abstract":"<div><div>Reducing reliance on private cars is essential for achieving a sustainable urban transport system, with carsharing offering a potentially valuable complement to public transport, walking, and biking. This study evaluates whether personalized information provision can promote carsharing adoption through a large-scale, pre-registered field experiment in Oslo, Norway. Car owners with older, underutilized vehicles were randomly assigned to a control and treatment group based on their residence postcode. About 20,000 car owners in the treatment postcodes received emails and were exposed to an online calculator that compared the costs of owning a car versus using a carsharing service for their travel needs, while the control group received no intervention. The results show a 15% increase in carsharing uptake in treated compared to the control areas, equivalent to approximately 400 new sign-ups over six months. By leveraging objective administrative data, this study provides causal evidence of the impact of tailored information on carsharing adoption.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103121"},"PeriodicalIF":5.5,"publicationDate":"2025-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143183284","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}
引用次数: 0
Agreeing on public goods or bads
IF 5.5 3区 经济学
Journal of Environmental Economics and Management Pub Date : 2025-01-18 DOI: 10.1016/j.jeem.2025.103123
Erik Ansink , Hans-Peter Weikard
{"title":"Agreeing on public goods or bads","authors":"Erik Ansink ,&nbsp;Hans-Peter Weikard","doi":"10.1016/j.jeem.2025.103123","DOIUrl":"10.1016/j.jeem.2025.103123","url":null,"abstract":"<div><div>Without regulation or agreement, public goods are underprovided and public bads are overprovided. Both problems are usually seen as flip sides of the same coin. In this paper we examine a situation where a public good is good for some agents but bad for others, depending on the provisioning level of the good. We allow agents to form a coalition to coordinate this provision. Our results show that, compared to games with only goods (or only bads), larger coalitions form in equilibrium. For a game specification with quadratic benefit- and cost functions, we find the grand coalition to be stable except when agents have identical or almost identical characteristics. The primary driver of coalition stability is the avoidance of a wasteful contest between agents pulling the provision level in opposing directions. In equilibrium, such wasteful contests are confined to a narrow range within the parameter space. This result connects the literatures on public goods and contests.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103123"},"PeriodicalIF":5.5,"publicationDate":"2025-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143183276","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}
引用次数: 0
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