Christian A Vossler, Stéphane Bergeron, M. Doyon, D. Rondeau
{"title":"Revisiting the Gap between the Willingness to Pay and Willingness to Accept for Public Goods","authors":"Christian A Vossler, Stéphane Bergeron, M. Doyon, D. Rondeau","doi":"10.1086/721995","DOIUrl":"https://doi.org/10.1086/721995","url":null,"abstract":"Large differences between willingness to pay (WTP) and willingness to accept (WTA) compensation measures have raised concerns over the validity of stated preference methods for valuing public goods. These differences have also motivated the use of WTP scenarios, even where property rights imply a WTA framing. We argue that WTA-WTP gaps can be reduced by deploying incentive-compatible surveys and controlling for game form misconceptions, including a failure of respondents to view the survey as consequential. In a study of large-scale wetland conservation, and using a scenario-specific consequentiality measure, we find that the WTA/WTP ratio is between 4.8 and 6.5 for respondents unlikely to have perceived the survey to be consequential. The ratio falls below 2 for respondents likely to hold consequentiality beliefs. Using incentive-compatible mechanisms and controlling for game form misconceptions could be the path to ensuring valid welfare estimates.","PeriodicalId":47114,"journal":{"name":"Journal of the Association of Environmental and Resource Economists","volume":"10 1","pages":"413 - 445"},"PeriodicalIF":3.6,"publicationDate":"2022-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41420170","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":"Investment Incentives in Tradable Emissions Markets with Price Floors","authors":"T. Cason, J. Stranlund, Frans P. de Vries","doi":"10.1086/721755","DOIUrl":"https://doi.org/10.1086/721755","url":null,"abstract":"Concerns about cost containment and price volatility have led regulators to include price controls in many cap-and-trade markets. We study how these controls affect firms’ incentives to invest in the adoption of abatement technologies in a model with abatement cost uncertainty. Price floors increase investment incentives because they raise the expected benefits from lowering abatement costs. We also report a market experiment that features abatement cost uncertainty and the opportunity for cost-reducing investment, with and without a price floor. Consistent with the theoretical model, investment is significantly greater with the price floor in place. Emissions permit prices also respond as predicted to abatement investments and emissions shocks. In particular, prices are only responsive to investment and shocks when the price floor is not implemented.","PeriodicalId":47114,"journal":{"name":"Journal of the Association of Environmental and Resource Economists","volume":"10 1","pages":"283 - 314"},"PeriodicalIF":3.6,"publicationDate":"2022-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45637039","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":"Open Space in US Urban Areas: Where Might There Be Too Much or Too Little of a Good Thing?","authors":"Junjie Wu, Jialing Yu, W. Oueslati","doi":"10.1086/721756","DOIUrl":"https://doi.org/10.1086/721756","url":null,"abstract":"The considerable variations in the share of open space across US cities raise two questions: What determines the optimal amount of open space in an urban area? Is the existing amount socially optimal? To address these questions, we first process data to measure the amount of natural, preserved, and developable open space in US metropolitan areas. We then develop a framework to characterize the optimal amount of open space in an urban area. This framework reveals that the geography-imposed land scarcity, price elasticities of housing demand and supply, economies of scale in municipal services provision, and marginal benefits from open-space conservation are the key parameters that determine the optimal amount of open space. By implementing the framework empirically, we find that most US metropolitan areas—97.39% according to our preferred model—have insufficient open space in their developed areas and additional open-space conservation in those areas will improve social welfare.","PeriodicalId":47114,"journal":{"name":"Journal of the Association of Environmental and Resource Economists","volume":"10 1","pages":"315 - 352"},"PeriodicalIF":3.6,"publicationDate":"2022-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49524126","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":"Success, Failure, and Information: How Households Respond to Energy Conservation Goals","authors":"Alastair Fraser","doi":"10.1086/721094","DOIUrl":"https://doi.org/10.1086/721094","url":null,"abstract":"This paper investigates how households respond to repeated energy conservation goals. I track households’ program participation and electricity use decisions across successive annual energy conservation challenges offered by a large electrical utility company. I find that households’ decisions whether to re-enroll in the program and attempt a subsequent goal are highly sensitive to their success or failure in achieving their energy conservation goal but not to the financial incentive to continue participating or to their level of past effort. This suggests that households are either responding to the emotional and normative aspects of success and failure or are substantially inattentive to information that is provided directly to them. I also find that households’ electricity use reduces each year they participate yet rebounds when they stop participating.","PeriodicalId":47114,"journal":{"name":"Journal of the Association of Environmental and Resource Economists","volume":"10 1","pages":"95 - 120"},"PeriodicalIF":3.6,"publicationDate":"2022-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41817096","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}
Ruohao Zhang, Huan Li, N. Khanna, A. Krupnick, E. Hill, D. Sullivan
{"title":"Air Quality Impacts of Shale Gas Development in Pennsylvania","authors":"Ruohao Zhang, Huan Li, N. Khanna, A. Krupnick, E. Hill, D. Sullivan","doi":"10.1086/721430","DOIUrl":"https://doi.org/10.1086/721430","url":null,"abstract":"We estimate the impact of shale gas development on particulate matter pollution using a quasi-experimental setting in Pennsylvania where some wells were developed to produce natural gas whereas other wells were permitted but not drilled. In doing so, we utilize a novel empirical approach drawing upon insights from atmospheric chemistry to account for windblown pollution spillovers in a difference-in-differences framework. Utilizing a high frequency, high resolution satellite-based measure of PM pollution between 2000 and 2018, we identify causal increases in PM2.5 concentration ranging from 0.017 μg/m3 to 0.062 μg/m3 in the vicinity of over 20,000 wells, resulting in approximately 20 additional deaths between 2010 and 2017.","PeriodicalId":47114,"journal":{"name":"Journal of the Association of Environmental and Resource Economists","volume":"10 1","pages":"447 - 486"},"PeriodicalIF":3.6,"publicationDate":"2022-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46433588","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":"Clean Water and Infant Health: Evidence from Piped Water Provision in China","authors":"Maoyong Fan, Guojun He","doi":"10.1086/721418","DOIUrl":"https://doi.org/10.1086/721418","url":null,"abstract":"We examine the impact of clean drinking water on infant mortality in China using a novel instrumental variable: the least-cost distance of piped water infrastructure between water sources and infant mortality surveillance areas. We find that the provision of piped water significantly decreases infant mortality, with a 10 percentage point increase in piped water coverage reducing infant mortality by 15%. Compared with regions with highly polluted surface waters, access to piped water is particularly beneficial in regions with slightly polluted surface waters, in which the pollution is difficult to observe. A simple cost-benefit analysis indicates that the benefits of piped water provision in rural China significantly outweigh the estimated costs.","PeriodicalId":47114,"journal":{"name":"Journal of the Association of Environmental and Resource Economists","volume":"10 1","pages":"159 - 193"},"PeriodicalIF":3.6,"publicationDate":"2022-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41656604","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":"Weathering an Unexpected Financial Shock: The Role of Federal Disaster Assistance on Household Finance and Business Survival","authors":"J. Gallagher, D. Hartley, Shawn M. Rohlin","doi":"10.1086/721654","DOIUrl":"https://doi.org/10.1086/721654","url":null,"abstract":"First, we document the impact of being hit by a devastating tornado on household finance and business survival. The tornado paths are random and cannot be predicted using risk information. Individuals in severely damaged census blocks have a small reduction in debt and no change in bill delinquency. The business establishment survival rate declines by 9%. Second, we provide insight on the role of federal disaster assistance, which includes direct cash assistance to disaster victims and grants to repair public infrastructure, in mitigating the shock. Individuals in severely damaged blocks have 30% less credit card debt post-disaster when disaster aid is available. Migration from damaged blocks increases. Credit-constrained victims have lower bill delinquency and increase consumption. Disaster assistance is a place-based policy and results in 9% more establishments and 14% more employees post-disaster in the average-damage neighborhood. These effects are concentrated among small nonmanufacturing establishments that rely on local demand.","PeriodicalId":47114,"journal":{"name":"Journal of the Association of Environmental and Resource Economists","volume":"10 1","pages":"525 - 567"},"PeriodicalIF":3.6,"publicationDate":"2022-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48560830","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":"Participation and Duration of Environmental Agreements: Investment Lags Matter","authors":"T. Eichner, Gilbert Kollenbach","doi":"10.1086/721095","DOIUrl":"https://doi.org/10.1086/721095","url":null,"abstract":"This paper analyzes participation in international environmental agreements in a dynamic game in which countries pollute and invest in two types of clean technology that differ in investment lags. If investments are noncontractible, countries underinvest in the long-lag technology in the last period of the contract, which leads to a hold-up problem. Countries do not underinvest in the short-lag technology. If the short-lag technology is sufficiently cheap, the hold-up problem becomes irrelevant, and significant participation is not feasible. Our paper supplements Battaglini and Harstad, who point out that the hold-up problem may result in significant participation and even in the first-best outcome, and shows that the assumptions required for significant participation may be more limited than expected.","PeriodicalId":47114,"journal":{"name":"Journal of the Association of Environmental and Resource Economists","volume":"10 1","pages":"33 - 53"},"PeriodicalIF":3.6,"publicationDate":"2022-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45705370","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":"Management of Timber and Nontimber Forest Products: Evidence from a Framed Field Experiment in Benin, West Africa","authors":"Lauriane S. Yehouenou, S. N. Morgan, K. Grogan","doi":"10.1086/721698","DOIUrl":"https://doi.org/10.1086/721698","url":null,"abstract":"Across sub-Saharan Africa, rapid deforestation threatens the economic and environmental benefits forests provide to communities and individuals. These losses are especially salient when forest users benefit from multiple forest products and not just timber resources. Using a common-pool resource (CPR) game in rural Benin framed around a threatened species, Afzelia africana, this paper tests how different payments for ecosystem services (PES) programs may induce conservation behavior among individuals who harvest multiple forest products (e.g., timber and leaves). PES treatments vary along two dimensions: the level of the payment and how the payment is divided among group members. We find evidence that all implemented PES treatments reduce the harvest of timber; however, a high PES payment evenly divided among group members also significantly reduced the harvest of leaves. Our findings suggest that a single-product PES focused only on whole trees might not be effective for multipurpose species.","PeriodicalId":47114,"journal":{"name":"Journal of the Association of Environmental and Resource Economists","volume":"10 1","pages":"353 - 387"},"PeriodicalIF":3.6,"publicationDate":"2022-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45949757","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 Benefits of Rooftop Solar Capacity","authors":"Travis E. Dauwalter, Robert Harris","doi":"10.1086/721604","DOIUrl":"https://doi.org/10.1086/721604","url":null,"abstract":"This paper explores the distribution of environmental benefits created by rooftop solar capacity in the United States. We find that benefits are increasing with income, indicating regressivity, but that households of color receive greater per capita benefits on average. Moreover, we document minimal efficiency-equity trade-off: capacity allocations that maximize total environmental benefits are nearly identical to allocations that maximize benefits received by disadvantaged groups. Thus, existing solar capacity forgoes up to $2 billion annually in environmental benefits as well as substantial improvements in distributional outcomes, further suggesting that the suboptimality of existing solar policy cannot be rationalized on equity grounds.","PeriodicalId":47114,"journal":{"name":"Journal of the Association of Environmental and Resource Economists","volume":"10 1","pages":"487 - 523"},"PeriodicalIF":3.6,"publicationDate":"2022-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44124602","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}