{"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}
{"title":"What drives the long-term relationship between economic development and environmental quality? The role of spatial dispersion vs. agglomeration","authors":"JunJie Wu , Kathleen Segerson , 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}
{"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}
{"title":"The enduring effects of China’s Payments for Ecosystem Services: Short- and long-term industrial transformations","authors":"Wen Wang , 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}