{"title":"Air pollution and the airborne diseases: Evidence from China and Japan","authors":"Guojun He , Yuhang Pan , Takanao Tanaka","doi":"10.1016/j.jeem.2025.103117","DOIUrl":"10.1016/j.jeem.2025.103117","url":null,"abstract":"<div><div>This paper estimates the impact of ambient air pollution on the two most economically costly airborne respiratory diseases, COVID-19 and influenza. Our methods incorporate the epidemiological Susceptible-Infectious-Recovered-Deceased (SIRD) model to construct the outcome of interest, the Instrumental Variable (IV) model to establish causality, and the Flexible Distributed Lag (FDL) model to capture dynamic effects. Analyzing data from the first wave of the COVID-19 pandemic in China, we find that air pollution can significantly raise the daily growth rate of COVID-19. In contrast, air pollution shows small and statistically insignificant effects on influenza healthcare visits in Japan.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103117"},"PeriodicalIF":5.5,"publicationDate":"2025-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143183275","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":"Recognizing a good deal: Short-term subsidies and the dynamics of public service use","authors":"Joshua W. Deutschmann","doi":"10.1016/j.jeem.2024.103114","DOIUrl":"10.1016/j.jeem.2024.103114","url":null,"abstract":"<div><div>I study the longer-run dynamics of household use of a public service in response to short-term subsidies. I exploit spatial variation in exposure to subsidies that induced households to use a publicly-provided matching platform for sanitation services in Dakar, Senegal. Using platform administrative data, I show that neighborhoods exposed to short-term subsidies are significantly more likely to use the platform after subsidies end, but this effect declines gradually to zero over time. Following a subsequent city-wide subsidy campaign two years later, increased use re-emerges in previously-subsidized neighborhoods before declining again. The pattern of decline and re-emergence shows that short-term subsidies can have persistent effects, but sustaining these effects may require repeated intervention.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103114"},"PeriodicalIF":5.5,"publicationDate":"2025-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143181987","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":"Fires and local labor markets","authors":"Raphaelle G. Coulombe, Akhil Rao","doi":"10.1016/j.jeem.2024.103109","DOIUrl":"10.1016/j.jeem.2024.103109","url":null,"abstract":"<div><div>We study the dynamic effects of fires on county labor markets in the US using a novel geophysical measure of fire exposure based on satellite imagery. We find increased fire exposure depresses employment growth for about three years, with part of the medium-run effects being linked to migration. In counties that experience fires, the cumulative fire-induced decline over 3 years is on the order of 15% of employment growth over that horizon, on average. These effects appear to be driven by the fires burning more than 1.5% of county area. While very few fires in our data receive a federal disaster declaration and aid from the Federal Emergency Management Agency (FEMA), FEMA declarations appear to reverse the estimated effects on employment and migration. We also document that counties with more diversified economies and more educated workforces appear to be more resilient against fire shocks. By overcoming challenges in measuring fire impacts, we identify vulnerable places and economic states, offering guidance on tailoring relief efforts and contributing to a broader understanding of natural disasters’ economic impacts.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103109"},"PeriodicalIF":5.5,"publicationDate":"2025-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143183288","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":"Air pollution and innovation","authors":"Felix Bracht , Dennis Verhoeven","doi":"10.1016/j.jeem.2024.103102","DOIUrl":"10.1016/j.jeem.2024.103102","url":null,"abstract":"<div><div>If air pollution harms innovation — and therefore future productivity — existing assessments of its economic cost are incomplete. We estimate the effect of fine particulate matter concentration on inventive output in 977 European regions. Exploiting thermal inversions and weather-induced ventilation of pollutants for identification, we find that a decrease in air pollution equivalent to the average yearly drop in Europe leads to 1.2% more patented inventions in a given region. A back-of-the-envelope calculation suggests that accounting for the effect on innovation increases the economic cost of air pollution as assessed in prior work by about three quarters.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103102"},"PeriodicalIF":5.5,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143181979","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":"Global air quality inequality over 2000–2020","authors":"Lutz Sager","doi":"10.1016/j.jeem.2024.103112","DOIUrl":"10.1016/j.jeem.2024.103112","url":null,"abstract":"<div><div>Air pollution generates vast health burdens and economic costs around the world. Pollution exposure varies greatly, both between countries and within them. But the degree of air quality inequality and its’ trajectory have not been quantified at a global level. I use economic inequality indices to measure global inequality in exposure to ambient fine particles smaller than 2.<span><math><mrow><mn>5</mn><mspace></mspace><mi>μ</mi><mi>m</mi></mrow></math></span> (PM<sub>2.5</sub>). I find high and rising levels of global air quality inequality. The global PM<sub>2.5</sub> Gini Index rose from 0.30 in 2000 to 0.35 in 2020, exceeding levels of income inequality in many countries. Air quality inequality is mostly driven by differences between countries and less so by variation within them, as decomposition analysis shows. A large share of those facing the highest levels of PM<sub>2.5</sub> exposure live in only a few countries. Building on the Global Burden of Disease framework, I find that mortality associated with PM<sub>2.5</sub> exposure is even more unequal than pollution exposure itself. The findings suggest that the common focus on inequality within countries overlooks an important global dimension of environmental justice.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103112"},"PeriodicalIF":5.5,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143181984","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":"Perception and protection: The effect of risk exposure on demand for index insurance in Mongolia","authors":"Lukas Mogge , Kati Kraehnert","doi":"10.1016/j.jeem.2024.103113","DOIUrl":"10.1016/j.jeem.2024.103113","url":null,"abstract":"<div><div>This study provides novel evidence on how risk exposure shapes demand for index-based weather insurance. The focus is on Mongolia, where index-based livestock insurance is offered as a commercial product to pastoralists threatened by extreme weather events that cause high livestock mortality. The analysis draws on district-level data covering the whole country, spanning eleven years. Our study exploits a particular feature in the design of the Mongolian index insurance: The insurance sales period predates the payout period of the previous insurance season, which allows us to separate the effects of risk exposure from the income effects of payouts. Results from a two-way fixed effects model show that demand for index insurance increases in areas exposed to adverse winter conditions during the insurance sales period, when pastoralists have to decide about purchasing insurance coverage for next year's winter. We argue that results are best explained by availability bias, with households adapting their risk perception in response to adverse weather conditions.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103113"},"PeriodicalIF":5.5,"publicationDate":"2024-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143181985","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":"How to pollute a river if you must","authors":"Yuzhi Yang , Erik Ansink , Jens Gudmundsson","doi":"10.1016/j.jeem.2024.103105","DOIUrl":"10.1016/j.jeem.2024.103105","url":null,"abstract":"<div><div>We propose the river pollution claims problem to distribute a budget of emissions permits among agents located along a river. A key distinction from the standard claims problem is that agents are ordered exogenously. For environmental reasons, the specific location along the river where pollutants are emitted is an important concern. In our analysis, we combine this environmental concern with standard fairness considerations. We characterize the class of <em>externality-adjusted proportional rules</em> and show that they strike a balance between fairness and minimizing environmental damage in the river. We also propose two novel axioms that are motivated by the river pollution context and use them to characterize two priority rules. We illustrate the rules through a case study of the Tuojiang Basin in China.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103105"},"PeriodicalIF":5.5,"publicationDate":"2024-12-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143181977","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":"Clearing the air: Women in politics and air pollution","authors":"Anna Laura Baraldi, Giovanni Fosco","doi":"10.1016/j.jeem.2024.103106","DOIUrl":"10.1016/j.jeem.2024.103106","url":null,"abstract":"<div><div>Policies and actions are likely to be influenced by the different attitudes to environmental issues of male and female policy-makers. The present paper analyzes the relationship between women politicians and air pollution levels in the context of Italy. We use a gender quota measure (Law 215/2012) as an exogenous shock to the percentage of female municipal councilors. We show that the enforcement of Law 215 significantly reduces the number of days per year when at least one among all the different types of air monitoring stations installed in the provincial capital municipalities detects excess levels of PM10 and PM2.5 with respect to their daily limit. We also assess the causal impact of female in city council on the measures of air pollution by the Wald estimator that shows negative sign meaning that an increase in the percentage of female councilors reduces air pollution. This research provides evidence of the most likely mechanism driving these results by showing that an increase in female officeholders due to Law 215 has a positive impact on a number of environmental friendly policies and measures (e.g. cycle lanes, urban green spaces, district heating) aimed at reducing harmful air particles.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103106"},"PeriodicalIF":5.5,"publicationDate":"2024-12-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143181976","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":"Natural disasters and the demand for health insurance","authors":"Ha Trong Nguyen, Francis Mitrou","doi":"10.1016/j.jeem.2024.103108","DOIUrl":"10.1016/j.jeem.2024.103108","url":null,"abstract":"<div><div>Amidst growing concerns over heightened natural disaster risks, this study pioneers an inquiry into the causal impacts of cyclones on the demand for private health insurance (PHI) in Australia. We amalgamate a nationally representative longitudinal dataset with historical cyclone records, employing an individual fixed effects model to assess the impacts of various exogenously determined cyclone exposure measures. Our findings reveal that only the most severe category 5 cyclones significantly increase the likelihood of individuals acquiring PHI in both the concurrent and subsequent years. Furthermore, the effect diminishes as the distance from the cyclone's eye increases. The largest estimated cumulated impact amounts to over 5 percentage points, representing approximately 11% of the sample mean and aligns with documented effects of certain PHI policies aimed at enhancing coverage. Furthermore, our findings withstand a series of sensitivity assessments, including a placebo test and three randomization examinations. Moreover, the cyclone impacts are more pronounced for younger demographics, individuals of higher socioeconomic status, and inhabitants of coastal or historically cyclone-affected areas. Additionally, after ruling out income, transfers, health status, and premiums as mechanisms, our study furnishes suggestive evidence that cyclone-induced home damage and heightened psychological stress are plausible pathways through which cyclones increase PHI uptake.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103108"},"PeriodicalIF":5.5,"publicationDate":"2024-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143181978","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}
John C. Strandholm , Ana Espinola-Arredondo , Felix Munoz-Garcia
{"title":"Greener or cheaper goods: Economies of scope in R&D investments","authors":"John C. Strandholm , Ana Espinola-Arredondo , Felix Munoz-Garcia","doi":"10.1016/j.jeem.2024.103107","DOIUrl":"10.1016/j.jeem.2024.103107","url":null,"abstract":"<div><div>This paper examines firms’ incentives to simultaneously invest in cost-reducing and in green R&D (abatement) under the presence of regulation. We show that, without regulation, firms only invest in cost-reducing R&D when economies of scope are absent, but invest in both types of R&D otherwise. With regulation, investments exhibit strategic complementarities, with and without economies of scope, leading to more investments in cost-reducing R&D, thus requiring more stringent emission fees. Assuming that firms invest in only one form of R&D, a traditional approach in the literature, gives rise to an undertaxation problem. This inefficiency is attenuated if R&D investments exhibit economies of scope, but emphasized if pollution is severe, and the market is concentrated; which is further increased when investment decisions are sequential.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103107"},"PeriodicalIF":5.5,"publicationDate":"2024-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143181975","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}