{"title":"Order! the border: Multitasking, air pollution regulation and local government responses","authors":"Hai Hong , Yongbin Huang","doi":"10.1016/j.jeem.2025.103135","DOIUrl":"10.1016/j.jeem.2025.103135","url":null,"abstract":"<div><div>This paper presents new evidence on how multitasking local governments' strategic responses to top-down environmental regulations can induce pollution in border areas. Using the implementation of the Air Pollution Prevention and Control Action Plan in China as a quasi-experiment, we exploit a difference-in-differences model and find that this policy induces the border effect of air pollution. We further reveal a salient window dressing behavior of local governments, which air pollution in border counties reduces significantly as the high-stakes inspection time neared, followed by a dramatic increase soon after the inspection. These results are driven by local government responses to incomprehensive air quality monitor stations installed in non-border counties, and local officials with strong promotion incentives, who exert strict regulations in non-border counties while varied regulations in border counties over time to cater for the multitasking of economic growth and air quality targets.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"131 ","pages":"Article 103135"},"PeriodicalIF":5.5,"publicationDate":"2025-02-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143464677","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":"Agriculture’s nitrogen legacy","authors":"Konstantinos Metaxoglou , Aaron Smith","doi":"10.1016/j.jeem.2025.103132","DOIUrl":"10.1016/j.jeem.2025.103132","url":null,"abstract":"<div><div>Nitrogen pollution of waterways is a large global problem, particularly in regions with intensive cropland agriculture, such as the Mississippi River Basin. Unlike prior studies based on agronomic and hydrologic (ag-hydro) models, we collect detailed data from water quality monitors and employ panel data econometric methods to estimate the relationship between cropland and nitrogen pollution. We find an increase in nitrogen load in nearby downstream waterways associated with an additional corn acre upstream that is substantially smaller than the field-to-river adjusted loss per cropland acre based on ag-hydro models. Our findings are consistent with those of recent research documenting the accumulation of large amounts of nitrogen in subsurface soil and groundwater over several decades; this is surplus nitrogen that was applied to fields but has yet to appear in waterways. This legacy nitrogen eventually reaches streams and rivers exacerbating further nitrogen pollution leading to time lags in measurable water quality improvements following the implementation of mitigation practices and policies. In the presence of large amounts of legacy nitrogen, land retirement, and other on-farm mitigation practices, may not be cost effective. Downstream off-farm practices, such as the development of fluvial wetlands, which remove both legacy and new nitrogen, can be cost-effective.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103132"},"PeriodicalIF":5.5,"publicationDate":"2025-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143429813","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 Political Economy of (Lacking) Commitment to Green Policies","authors":"Josse Delfgaauw, Otto Swank","doi":"10.1016/j.jeem.2025.103133","DOIUrl":"10.1016/j.jeem.2025.103133","url":null,"abstract":"<div><div>The <span><span>IPCC (2022)</span></span> views political commitment to policies as a prerequisite for mitigating climate change. We study an environment where citizens’ incentives to invest depend on future policy decisions. In turn, political support for future policies depends on citizens’ investment decisions, as these policies redistribute towards citizens who invest. We show that such redistributive concerns distort politicians’ incentives to commit. Our model explains why redistributive concerns induced some governments to choose extensive commitment by providing price certainty to investors in renewable energy for 20 years. Our model also explains why redistributive concerns can hinder commitment to green policies as suggested by the IPCC. Finally, we show that redistributive concerns can provide credibility to a policy, even if the policy is inefficient.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103133"},"PeriodicalIF":5.5,"publicationDate":"2025-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143436457","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":"The geography of pollution regulation and productivity","authors":"Ying Chen , Wenjie Wu , Yanwen Yun","doi":"10.1016/j.jeem.2025.103134","DOIUrl":"10.1016/j.jeem.2025.103134","url":null,"abstract":"<div><div>This paper examines the impact of China's 1998 “Two Control Zones” (TCZ) policy on firm productivity and local economies using geolocated micro data. The analysis relies on an instrumental variable based on engineering considerations related to pollution emissions. We find that the TCZ policy led to the exit of low-productivity firms and reduced ten-year productivity growth among surviving firms. These surviving firms adjusted by reducing coal consumption, altering their product mix, and increasing innovation activities, resulting in significant transitional costs. The negative effects are disproportionately larger for initially high-productivity firms that engage more actively in abatement efforts. The adverse impact is amplified in counties with closely related industries and strong vertical linkages. These findings highlight the uneven distributional costs of place-based environmental regulations.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"131 ","pages":"Article 103134"},"PeriodicalIF":5.5,"publicationDate":"2025-02-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143455048","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}
J. Bonan , C. Cattaneo , G. d’Adda , A. Galliera , M. Tavoni
{"title":"Social norms and tariff salience: An experimental study on household waste management","authors":"J. Bonan , C. Cattaneo , G. d’Adda , A. Galliera , M. Tavoni","doi":"10.1016/j.jeem.2025.103124","DOIUrl":"10.1016/j.jeem.2025.103124","url":null,"abstract":"<div><div>We study the introduction of a social information program on waste disposal in a setting characterized by a two-part tariff. Households pay for unsorted waste a fixed amount if their yearly disposal is below a pre-defined cap, and pay per disposal after exceeding the cap. We randomize the receipt of a social information intervention, where customers’ disposal is compared to that of similar ones. An additional treatment couples the social comparison with information on the customer’s distance from the cap. We find that the report containing the social norm alone leads to a 5% reduction in the volume of unsorted waste. Making the cap salient significantly reduces the effectiveness of the social norm. The two treatments have a similar negative effect on the likelihood of exceeding the disposal cap. The reduction in unsorted waste is partly achieved through an increase in waste sorting, and is not accompanied by higher illegal disposals or lower quality of sorted waste. Our results confirm the effectiveness of descriptive norms in coordinating behavior but indicate that providing information on economic incentives can permanently crowd out their effect.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103124"},"PeriodicalIF":5.5,"publicationDate":"2025-02-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143419435","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":"Markup dispersion, industry coverage and the cost of environmental regulation","authors":"Haoyang Li , Nan Wu , Jinhua Zhao","doi":"10.1016/j.jeem.2025.103130","DOIUrl":"10.1016/j.jeem.2025.103130","url":null,"abstract":"<div><div>The environmental economics literature has long established that all polluters should be regulated to equalize their marginal abatement costs. We make the case for “partial coverage” where only a subset of polluting industries is regulated. Environmental regulation, by moving factors of production from dirtier to cleaner industries, ameliorates the costs of imperfect competition if the cleaner industries also have higher markups. The selection of industries to be regulated depends on the correlation between industry markups and dirtiness, and may not be those with the highest emissions. Partial coverage may dominate full coverage when the abatement target is moderate. We apply the model to environmental regulation in China and show that significant cost savings can be achieved by switching from full to partial coverage.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103130"},"PeriodicalIF":5.5,"publicationDate":"2025-02-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143387190","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}
Wangyang Lai , Liguo Lin , Xiaochi Shen , Maigeng Zhou
{"title":"Investing in a transition fuel: The remarkable decline in mortality from China's rollout of natural gas infrastructure","authors":"Wangyang Lai , Liguo Lin , Xiaochi Shen , Maigeng Zhou","doi":"10.1016/j.jeem.2025.103131","DOIUrl":"10.1016/j.jeem.2025.103131","url":null,"abstract":"<div><div>The world is undergoing a monumental energy transition. Leveraging China's rollout of natural gas infrastructure, this study estimates the effects of energy access on mortality from 2004 to 2015. The data link the detailed locations and timings of pipeline setup with quarterly administrative death records. The results indicate a 53% increase in household gas usage and a 12% decline in death rate. Mortality reduction is largely driven by decreases in cardiorespiratory diseases and lung cancers, and particularly in the female population. This health benefit is primarily attributed to reduced air pollution due to the shift from dirty fuels to natural gas. The findings underscore the significant potential of transition fuel investments for public health.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103131"},"PeriodicalIF":5.5,"publicationDate":"2025-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143419434","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}
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 , Jihua Zhang , Juan Carlos Villaseñor-Derbez , Qutu Jiang , Mingzhao Hu , Olivier Deschenes , 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}
Enrica De Cian , Giacomo Falchetta , Filippo Pavanello , Yasmin Romitti , Ian Sue Wing
{"title":"The impact of air conditioning on residential electricity consumption across world countries","authors":"Enrica De Cian , Giacomo Falchetta , Filippo Pavanello , Yasmin Romitti , Ian Sue Wing","doi":"10.1016/j.jeem.2025.103122","DOIUrl":"10.1016/j.jeem.2025.103122","url":null,"abstract":"<div><div>We provide a first globally-relevant assessment of the electricity consumption consequences of households’ adaptation to ambient heat through air conditioning (AC). We use household survey data from 25 countries within a discrete-continuous choice empirical framework to model households’ joint air conditioning adoption and utilization decisions, and combine the estimated responses with scenarios of socioeconomic, demographic, and climatic change to project air conditioning prevalence and cooling electricity demand circa mid-century. We find that air conditioning ownership increases households’ electricity consumption by 36%, on average, but the effect is heterogeneous, varying with weather conditions, income and country contexts, revealing the importance of behaviors, practices, climate, and technologies. Compared to the other drivers of electricity consumption, air conditioning has the leading marginal effect, also accounting for a significant share of household budgets. By 2050, the overall effect is a net increase in global yearly residential cooling electricity to 976–1393 TWh, with an additional 670–956 Mt of CO<span><math><msub><mrow></mrow><mrow><mn>2</mn></mrow></msub></math></span> emissions, and associated social costs of $124–177 billion. Our findings highlight cooling energy expenditure as an emerging indicator of energy poverty as the climate warms, and provide an initial quantification of the economic and environmental risks associated with air conditioning as an adaptation to climate change.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"131 ","pages":"Article 103122"},"PeriodicalIF":5.5,"publicationDate":"2025-02-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143609742","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}
Rolf Golombek , Michael Hoel , Snorre Kverndokk , Stefano Ninfole , Knut Einar Rosendahl
{"title":"Competition for carbon storage","authors":"Rolf Golombek , Michael Hoel , Snorre Kverndokk , Stefano Ninfole , 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}