{"title":"Delegation of environmental regulation and perceived corruption in South Africa","authors":"Pedro Naso","doi":"10.1016/j.reseneeco.2024.101462","DOIUrl":"10.1016/j.reseneeco.2024.101462","url":null,"abstract":"<div><div>I study the drivers of a reduction in the discretionary power of environmental inspectors and the impact that such reduction has on firms’ perceptions. I examine the transition from the Air Pollution Protection Act of 1965 to the Air Quality Act of 2005 (AQA), a change from full to partial delegation of regulation in South Africa. By constructing a principal–agent model, I propose a theoretical explanation for why a society would restrict environmental inspectors’ discretionary power. I then use my theoretical model to discuss the air quality regulation transition in South Africa. I suggest that the transition might have occurred because of increases in inspectors’ rent-seeking motivation and capacity of appropriating rents after the end of Apartheid. Using microdata, I run difference-in-differences models in a two-period panel with 191 South African firms to show that the implementation of the AQA decreases affected firms’ perceived corruption, but does not change perceptions on obtaining licences and on the functioning of courts. My work indicates that national governments in developing countries should consider the characteristics of the agents who are implementing regulation, and the system they are embedded in, when designing environmental regulation.</div></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2024-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142434184","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 effect of professional social norms on corporate environmental compliance","authors":"Dietrich Earnhart , Lana Friesen","doi":"10.1016/j.reseneeco.2024.101460","DOIUrl":"10.1016/j.reseneeco.2024.101460","url":null,"abstract":"<div><div>While previous studies demonstrate the importance of social norms for explaining the pro-environmental behavior of individual consumers, very few studies examine the role of social norms in the context of businesses’ pro-environmental decisions. This study contributes to the rich social norm literature by exploring whether professional social norms influence the compliance decisions of regulated chemical manufacturing facilities. To this end, the empirical analysis uses data on major facilities regulated under the U.S. Clean Water Act to estimate the link from the compliance history of other major chemical manufacturing facilities operating in the same state to an individual facility’s current compliance decision. Using a fixed-effects model that includes a large set of confounding factors, we find a significant positive effect of other facilities’ compliance history: improvement in the average compliance history prompts the individual facility to increase its own performance. By controlling for other plausible channels that link facility’s compliance decisions, we interpret this relationship as reflecting descriptive professional norms. The relationship proves stronger for facilities that are either geographically or sectorally closer.</div></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2024-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142442788","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":"Optimal fisheries management and the response to price changes","authors":"Eric Nævdal","doi":"10.1016/j.reseneeco.2024.101461","DOIUrl":"10.1016/j.reseneeco.2024.101461","url":null,"abstract":"<div><p>The literature on how price changes affect optimally managed fisheries is mostly concerned with how fish stocks and harvest rates are affected in steady state. There is little published on how prices affect optimal harvest rates at stock levels outside of steady state. Here we show the effect of an unanticipated and permanent price increase. It is shown that in a model of a pure schooling fishery, if the stock is below the steady state, it is optimal to harvest less if the price goes up and vice versa. It is also shown that in a model with stock dependent harvest costs, the optimal response to a price increase is to reduce the harvest rate for low stock levels even if the optimal harvest rate increases close to the steady state. Empirical relevance is demonstrated by illustrating the theoretical results in an estimated model.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2024-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S092876552400037X/pdfft?md5=7b2e10df89e97e975890da9ba05cc774&pid=1-s2.0-S092876552400037X-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142270840","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":"Learning and uncertainty in spatial resource management","authors":"Kwabena Bediako , Bruno Nkuiya","doi":"10.1016/j.reseneeco.2024.101449","DOIUrl":"https://doi.org/10.1016/j.reseneeco.2024.101449","url":null,"abstract":"<div><p>Natural resources such as fish, and wildlife have the ability to move across different areas within an ecosystem. Such movements are subject to random changes in environmental conditions (e.g., nutrients, temperature, oxygen). Although empirical evidence suggests that learning about such movements helps improve management, the related economic literature concentrates on scenarios in which the resource population lives in a closed area and cannot migrate. In this paper, we develop a spatial bioeconomic model to examine a renewable resource harvester’s responses to learning about fish movements. Our baseline is the scenario in which the harvester is fully informed about the distribution of fish movements. We find that introducing uncertainty and learning about fish movements critically affects extraction incentives. For instance, we show that uncertainty and learning may increase harvest in a patch and reduce harvest in another patch when the marginal harvesting cost function is constant. In the stock dependent marginal harvesting cost case, we delineate conditions under which uncertainty and learning increase harvest in all patches. We also show how harvest responses to learning change with the distribution of uncertainty.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2024-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141607726","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":"International emissions trading and the distribution of capital","authors":"Yu-Bong Lai","doi":"10.1016/j.reseneeco.2024.101450","DOIUrl":"https://doi.org/10.1016/j.reseneeco.2024.101450","url":null,"abstract":"<div><p>This paper compares two regimes of tradable emission permits, a regime with international permit trade (IPT) and a regime with domestic permit trade (DPT). We focus on the effects of the distribution of firms between countries. Our model combines intra-industry trade with a monopolistically competitive industry. We find that a more equal distribution of firms between countries results in higher global pollution under the DPT regime, while under the IPT regime the global pollution is invariant with the distribution of firms. We also find that international permit trade can either increase or reduce global pollution, depending on the distribution of firms.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2024-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141607693","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}
Christoph Feldhaus , Jörg Lingens , Andreas Löschel , Gerald Zunker
{"title":"The intrinsic value of decision rights: Field evidence from electricity contract choice automation","authors":"Christoph Feldhaus , Jörg Lingens , Andreas Löschel , Gerald Zunker","doi":"10.1016/j.reseneeco.2024.101440","DOIUrl":"https://doi.org/10.1016/j.reseneeco.2024.101440","url":null,"abstract":"<div><p>Previous laboratory evidence suggests that people tend to value their decision right beyond its instrumental value. We measure the intrinsic value of decision rights in the context of switching the electricity provider. We focus on customers of an online platform who can either choose a service that reminds them when they are allowed to switch their electricity contract or a service that automatically switches the contract on their behalf whenever possible. Our focus is on the intrinsic value of decision rights as a potential obstacle of this choice automation. Surprisingly, we find that customers who make use of the automation service assign significantly <em>higher</em> intrinsic value to their decision rights, compared to those who opted for the mere reminder. Hence, there appears to be a connection between having a high intrinsic value of decision rights and the level of interest in attributes of the automation service under consideration. The positive correlation suggests that the widespread positive intrinsic value of decision rights and the future adoption of similar automation services and devices do not necessarily contradict each other.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765524000162/pdfft?md5=24c7000813a727694d89d25c9147f7eb&pid=1-s2.0-S0928765524000162-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140644978","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":"Farm debt and the over-exploitation of natural capital","authors":"Graeme Guthrie","doi":"10.1016/j.reseneeco.2024.101439","DOIUrl":"https://doi.org/10.1016/j.reseneeco.2024.101439","url":null,"abstract":"<div><p>This paper uses a stochastic optimal control model to show how standard loan contracts create incentives for farmers to focus on short-term financial performance at the expense of farms’ long-term natural capital. These incentives are a manifestation of the debt overhang problem. Extending this model shows how sustainability-linked loans can be used to weaken these incentives in a way that potentially benefits farmers and their bankers. The magnitude of the economic benefits generated by these loans depends on farm characteristics. The paper investigates the optimal design of sustainability-linked loans.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140296819","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":"Rent formation and distortions due to quotas in biological production processes","authors":"Atle Oglend , Frank Asche , Hans-Martin Straume","doi":"10.1016/j.reseneeco.2024.101438","DOIUrl":"https://doi.org/10.1016/j.reseneeco.2024.101438","url":null,"abstract":"<div><p>Production licenses with use restrictions that limit output are commonly used to regulate biological production processes. Such regulations are vulnerable to rent formation and production distortions that can end up subsidizing harmful environmental behavior. This paper develops a partial equilibrium model for a biological production process and use the model to study the impact of production quotas in Norwegian salmon aquaculture. Results suggest substantial regulatory rents capitalized in license values. Production has intensified leading to excessive stocking of fish per license, a shorting of the production period, and smaller produced fish. Our findings provide important insights for quota policies in food production, especially for cases where quotas are motivated by harmful environmental effects.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-03-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765524000149/pdfft?md5=f8860f4bc5d5f8d6c06cba46d81a9de3&pid=1-s2.0-S0928765524000149-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140181022","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":"Feeling the heat? Analyzing climate change sentiment in Spain using Twitter data","authors":"Maria L. Loureiro , Maria Alló","doi":"10.1016/j.reseneeco.2024.101437","DOIUrl":"10.1016/j.reseneeco.2024.101437","url":null,"abstract":"<div><p>To shed light on the recent debate about climate change in this post-pandemic scenario, we take advantage of a unique dataset that combines geo-tagged social media data from Twitter in Spain from 2017 to 2022. Twitter conversations have been analyzed with natural language processing techniques to obtain sentiment scores related to climate change. These were merged with additional relevant control variables, aiming to understand the role of the contributing factors on the evolution of the hedonic scores, including external temperatures, the occurrence of heat waves, and deaths related to climate. We find a strong negative effect of external temperatures on sentiment, aggravated by recent increases in the frequency of heat waves and deaths related to climate. Further, this negative sentiment is accentuated after experiencing the recent COVID-19.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-03-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140156537","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 financing climate policy — Evidence from the solar PV subsidy programs","authors":"Olivier De Groote , Axel Gautier , Frank Verboven","doi":"10.1016/j.reseneeco.2024.101436","DOIUrl":"https://doi.org/10.1016/j.reseneeco.2024.101436","url":null,"abstract":"<div><p>We analyze the political impact of a generous solar panel subsidization program. Subsidies far exceeded their social benefit and were partly financed by new taxes on adopters and by electricity surcharges for all consumers. We use local panel data from Belgium and find a decrease in votes for government parties in municipalities with high adoption rates. This shows that the voters’ punishment for a costly policy exceeded the potential reward by adopters who received generous subsidies. Further analysis indicates that punishment mainly comes from non-adopters, who change their vote towards anti-establishment parties.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139986937","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}