{"title":"Political influence on international climate agreements with border carbon adjustment","authors":"Achim Hagen , Mark Schopf","doi":"10.1016/j.jeem.2024.102979","DOIUrl":"10.1016/j.jeem.2024.102979","url":null,"abstract":"<div><p>We study the influence of industrial lobbying on national climate policies and the formation of an international environmental agreement if the coalition countries use border carbon adjustments to protect domestic producers. We find that the effects of this political influence crucially depend on the distribution of carbon tax revenues. If these are transferred to the households, lobbying distorts carbon taxes downwards to reduce the tax burden and does not affect coalition sizes. This leads to higher emissions and lower welfare. By contrast, if tax revenues are given back to the firms, lobbies in the outsider countries favor carbon taxes, whereas lobbies in the coalition countries favor carbon subsidies to raise the international commodity price. This reduces the tax difference and the welfare difference between the countries, which reduces the free-rider incentives. Then, lobbying stabilizes the grand coalition and reduces global emissions compared to a “perfect” world without lobbying if the political influence is sufficiently strong.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102979"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000536/pdfft?md5=f6553d4e1c98b54f87239cdaf53682df&pid=1-s2.0-S0095069624000536-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140772367","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":"Farmer response to policy induced water reductions: Evidence from the Colorado River","authors":"Lena Harris","doi":"10.1016/j.jeem.2024.102986","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.102986","url":null,"abstract":"<div><p>Surface water supplies are becoming increasingly strained, pushing policy makers to find solutions to facilitate reductions in water use though there is limited evidence on how farmers respond to policy induced variation in surface water supplies. This paper uses a difference-in-differences framework to compare the response of farmers to a bundle of policies reducing deliveries from the Colorado River by 35%. I find that on average, farmers reduce the amount of land planted but plant more water intensive crops leading to a minimal reduction in total estimated water use compared to the counterfactual. Additionally, there is strong suggestive evidence that farmers are using groundwater to offset a significant amount of the surface water loss. These findings have important consequences for understanding the relative trade-offs policy makers face when implementing policies that protect surface water sources.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102986"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140824800","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}
Barbara Boggiano , Melisa Williams Higgins , Jesse Matheson , David Jenkins , Marco R. Oggioni
{"title":"The contemporaneous healthcare cost of particulate matter pollution for youth and older adult populations","authors":"Barbara Boggiano , Melisa Williams Higgins , Jesse Matheson , David Jenkins , Marco R. Oggioni","doi":"10.1016/j.jeem.2024.102994","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.102994","url":null,"abstract":"<div><p>This paper estimates the impact of particulate matter pollutants, measured by <span><math><mrow><mi>P</mi><mi>M</mi><mn>10</mn></mrow></math></span> levels, on public healthcare costs for youth and older adult populations using administrative data from two large UK hospitals and exploiting spatial and temporal variation in <span><math><mrow><mi>P</mi><mi>M</mi><mn>10</mn></mrow></math></span> levels. We find that patient enrolment increases when their neighborhood experiences higher levels of <span><math><mrow><mi>P</mi><mi>M</mi><mn>10</mn></mrow></math></span>. Specifically, a standard deviation increase in <span><math><mrow><mi>P</mi><mi>M</mi><mn>10</mn></mrow></math></span> levels increases the enrolment of patients aged 60 years and older by 6.2% and the enrolment of patients under 18 years of age by 3.1%. Using detailed costing information, we estimate that a standard deviation increase in <span><math><mrow><mi>P</mi><mi>M</mi><mn>10</mn></mrow></math></span> increases public healthcare costs by <span><math><mrow><mo>£</mo><mn>873</mn><mo>,</mo><mn>985</mn><mo>.</mo><mn>20</mn></mrow></math></span> per year in the municipality studied.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102994"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000688/pdfft?md5=fd8247d01c534a0a199e516a6d8fff3f&pid=1-s2.0-S0095069624000688-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140824821","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 regulation: Prices, quantities and hybrids with endogenous technology choice","authors":"Halvor Briseid Storrøsten","doi":"10.1016/j.jeem.2024.102985","DOIUrl":"10.1016/j.jeem.2024.102985","url":null,"abstract":"<div><p>This paper examines the investment incentives of market-based regulation, focusing on the technology characteristics that different regulatory schemes tend to incentivize. The firms’ technology choice is socially optimal if and only if the aggregate emission allowance supply is completely inelastic. Furthermore, in the presence of uncertainty, elastic emission allowance supply, and strictly convex environmental damage, it is optimal to tax investments in technologies that induce a large variance in emissions. Lastly, price elastic supply of emission allowances may either increase or decrease the volatility in the product market, depending on the risk environment the firms face. The results indicate that introduction of permit price-stabilizing measures in an emission trading system will come at the cost of suboptimal technology investments, and may also lead to increased fluctuations in product prices.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102985"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000597/pdfft?md5=5caedf640bd1b9930b0c27008b5c57a1&pid=1-s2.0-S0095069624000597-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140773673","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":"Weather variability risks slow climate adaptation: An empirical analysis of forestry","authors":"Kelsey K. Johnson , David J. Lewis","doi":"10.1016/j.jeem.2024.103000","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.103000","url":null,"abstract":"<div><p>The timing of climate adaptation decisions can have substantial consequences for the assessment of climate damages. Since weather variability can create risks for natural resource management that differ across adaptation choices, such variability has the potential to alter the speed of climate adaptation. This paper estimates the effect of weather variability on the timing of adaptation decisions of forest landowners in the Eastern United States. A discrete-choice econometric model of forest management is estimated and used in a bio-economic simulation that shows how variability in cold temperatures can significantly slow the rate of adapting from cold-tolerant natural hardwood forests to cold-sensitive, but highly valuable pine plantations. The range of weather variability in climate projections and across the landscape generates large differences in adaptation timing. Ignoring projected future decreases in weather variability results in a large downward bias in estimating future paths of climate adaptation. Since pine plantations produce fewer non-market ecosystem services than natural hardwood forests, an important source of future conservation uncertainty is the economic response of private forest landowners to changing weather variability.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 103000"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000743/pdfft?md5=05d07c8240e5145fc2730fadf9b9b016&pid=1-s2.0-S0095069624000743-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140918425","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":"Efficacy of hypothetical bias mitigation techniques: A cross-country comparison","authors":"Jerrod Penn , Wuyang Hu , Tao Ye","doi":"10.1016/j.jeem.2024.102989","DOIUrl":"10.1016/j.jeem.2024.102989","url":null,"abstract":"<div><p>Hypothetical Bias (HB) remains challenging for practitioners of stated preference approaches. One elusive idea is the extent to which country and culture may affect HB's magnitude and the efficacy of mitigation methods. This paper implements both real and hypothetical elicitation in the United States and China in the context of a field survey and experiment for battery recycling containers to establish the extent of HB. It compares multiple HB mitigation strategies, namely Cheap Talk, Ex Ante Consequentiality, and Certainty Follow-up in the two countries. Results show that a significant amount of actual HB exists. The ex ante methods are ineffective at reducing HB in both countries. The Certainty Follow-up method can be effective but can overcorrect, especially for the Chinese sample. Results also indicate that comparing the efficacy of different mitigation strategies based on only hypothetical scenarios (potential HB) across countries may lead to erroneous conclusions. This study calls for treating country and cultural differences more seriously when conducting international valuation work.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102989"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000639/pdfft?md5=e7e0cc71ee7b76997876986a9b00aa17&pid=1-s2.0-S0095069624000639-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140796143","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":"Are facemasks effective against particulate matter pollution? Evidence from the field","authors":"Ke Chen , Yazhen Gong , Jinhua Zhao","doi":"10.1016/j.jeem.2024.103001","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.103001","url":null,"abstract":"<div><p>The use of anti-pollution facemasks (APFs) in defense against particulate matter (PM) pollution is subject to debate as air pollution and wildfire events intensify. Inward leakage due to imperfect fitting and the Peltzman effect of people spending more time outdoors when wearing masks have led to mixed evidence regarding the effectiveness of APFs, which in turn has contributed to conflicting public messages about APFs with potentially large public health costs. We conduct a large-scale randomized field study on individuals' daily outdoor time and mask wearing behaviors and the associated health outcomes during an entire winter heating season in a provincial capital city in Northeastern China. We find that APFs used in everyday life achieved an overall efficiency of 80% in reducing respiratory or cardiovascular disease related doctor visits. Mask wearing, due to its discomfort, reduced outdoor time. However, the added protection provided by masks against PM led respondents to spend more time outdoors on smog days, and this relative Peltzman effect wiped out about 12% of APFs' health benefits. Taken together, APFs’ health benefits far exceed their financial costs. These findings call for affirmatory but careful messaging to the public about using APFs as personal protection against PM pollution.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 103001"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140918426","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":"Distributional effects of the increasing heat incidence on labor productivity","authors":"Jingfang Zhang , Emir Malikov , Ruiqing Miao","doi":"10.1016/j.jeem.2024.102998","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.102998","url":null,"abstract":"<div><p>This paper examines how temperature affects worker productivity beyond the usual “on average” analysis, with a particular focus on distributional impacts of the increasing heat incidence across high- and low-productivity areas. Using a recentered influence function regression approach, we estimate unconditional reduced-form effects of a location shift in the temperature distribution—consistent with climate change trends—on the labor productivity distribution across counties in the contiguous U.S. We find that labor productivity is largely insensitive to changes in the frequency of cool-to-moderate maximum daily temperatures. However, as temperatures shift above <span><math><mrow><mn>2</mn><msup><mrow><mn>4</mn></mrow><mrow><mo>∘</mo></mrow></msup><mtext>C</mtext></mrow></math></span>, the effects on productivity turn increasingly negative, albeit with their magnitudes attenuating as a county’s productivity rank rises. While highly productive locations in the top 5% are not adversely impacted even by the hottest temperatures, permanently increasing the incidence of <span><math><mrow><mo>≥</mo><mn>3</mn><msup><mrow><mn>6</mn></mrow><mrow><mo>∘</mo></mrow></msup><mtext>C</mtext></mrow></math></span> temperatures just by a day lowers productivity at the bottom vigintile by a nontrivial 0.22% per year, an equivalent of 10.5 hours of work by a minimum-wage worker. As temperatures continue to rise, not only does worker productivity worsen on average, but the cross-county dispersion therein widens too. Given existing climate forecasts, we predict that future extreme temperatures would further deepen worker productivity inequality.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102998"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140893563","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}
Dorothée Charlier , Aude Pommeret , Francesco Ricci
{"title":"A rationale for the Right-to-Development climate policy stance?","authors":"Dorothée Charlier , Aude Pommeret , Francesco Ricci","doi":"10.1016/j.jeem.2024.102981","DOIUrl":"10.1016/j.jeem.2024.102981","url":null,"abstract":"<div><p>We present a formal model that analyzes the trade-offs between environmental policy and economic growth in a developing economy. The adoption of restrictive environmental policies limits the use of abundant fossil energy resources, which may slow down economic development and thus violate the <em>Right-to-Development</em>. If faster economic growth allows a country to grow out of pollution sooner, less stringent policies are good for growth and even for the environment, having adopted a long-term horizon. Accounting for a ceiling on cumulative emissions can reinforce the argument by providing an additional rationale to phase out pollution. One assumption is crucial for the argument to hold: polluting fossil energy is an essential input over the early phase of economic development, but not in the later phases. Such a discontinuity could result from structural change. We provide empirical evidence for the plausibility of a discontinuity in the elasticity of carbon dioxide emissions with respect to aggregate output, using cross country data, even if it does not appear to be as strong as assumed in the model economy.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102981"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S009506962400055X/pdfft?md5=08813349ada0b5d406cc07e66277f6a8&pid=1-s2.0-S009506962400055X-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140759947","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":"Unregulated contaminants in drinking water: Evidence from PFAS and housing prices","authors":"Michelle Marcus , Rosie Mueller","doi":"10.1016/j.jeem.2024.102987","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.102987","url":null,"abstract":"<div><p>Our understanding of individuals’ response to information about unregulated contaminants is limited. We leverage the highly publicized social discovery of unregulated PFAS (per- and polyfluoroalkyl substances) contamination in public drinking water to study the impact of information about unregulated contaminants on housing prices. Using residential property transaction data, we employ a difference-in-differences research design and show that high profile media coverage about PFAS contamination significantly decreased property values of affected homes. We also find suggestive evidence of residential sorting that may have worsened environmental inequality.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102987"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000615/pdfft?md5=47d918d7c483ec96c0ba463ead478ddb&pid=1-s2.0-S0095069624000615-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140818662","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}