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Agriculture’s nitrogen legacy
IF 5.5 3区 经济学 Q1 BUSINESS Pub Date : 2025-02-14 DOI: 10.1016/j.jeem.2025.103132
Konstantinos Metaxoglou , Aaron Smith
Nitrogen pollution of waterways is a large global problem, particularly in regions with intensive cropland agriculture, such as the Mississippi River Basin. Unlike prior studies based on agronomic and hydrologic (ag-hydro) models, we collect detailed data from water quality monitors and employ panel data econometric methods to estimate the relationship between cropland and nitrogen pollution. We find an increase in nitrogen load in nearby downstream waterways associated with an additional corn acre upstream that is substantially smaller than the field-to-river adjusted loss per cropland acre based on ag-hydro models. Our findings are consistent with those of recent research documenting the accumulation of large amounts of nitrogen in subsurface soil and groundwater over several decades; this is surplus nitrogen that was applied to fields but has yet to appear in waterways. This legacy nitrogen eventually reaches streams and rivers exacerbating further nitrogen pollution leading to time lags in measurable water quality improvements following the implementation of mitigation practices and policies. In the presence of large amounts of legacy nitrogen, land retirement, and other on-farm mitigation practices, may not be cost effective. Downstream off-farm practices, such as the development of fluvial wetlands, which remove both legacy and new nitrogen, can be cost-effective.
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引用次数: 0
The Political Economy of (Lacking) Commitment to Green Policies
IF 5.5 3区 经济学 Q1 BUSINESS Pub Date : 2025-02-14 DOI: 10.1016/j.jeem.2025.103133
Josse Delfgaauw, Otto Swank
The IPCC (2022) views political commitment to policies as a prerequisite for mitigating climate change. We study an environment where citizens’ incentives to invest depend on future policy decisions. In turn, political support for future policies depends on citizens’ investment decisions, as these policies redistribute towards citizens who invest. We show that such redistributive concerns distort politicians’ incentives to commit. Our model explains why redistributive concerns induced some governments to choose extensive commitment by providing price certainty to investors in renewable energy for 20 years. Our model also explains why redistributive concerns can hinder commitment to green policies as suggested by the IPCC. Finally, we show that redistributive concerns can provide credibility to a policy, even if the policy is inefficient.
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引用次数: 0
Social norms and tariff salience: An experimental study on household waste management
IF 5.5 3区 经济学 Q1 BUSINESS Pub Date : 2025-02-12 DOI: 10.1016/j.jeem.2025.103124
J. Bonan , C. Cattaneo , G. d’Adda , A. Galliera , M. Tavoni
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.
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引用次数: 0
Markup dispersion, industry coverage and the cost of environmental regulation
IF 5.5 3区 经济学 Q1 BUSINESS Pub Date : 2025-02-08 DOI: 10.1016/j.jeem.2025.103130
Haoyang Li , Nan Wu , Jinhua Zhao
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.
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引用次数: 0
Investing in a transition fuel: The remarkable decline in mortality from China's rollout of natural gas infrastructure
IF 5.5 3区 经济学 Q1 BUSINESS Pub Date : 2025-02-07 DOI: 10.1016/j.jeem.2025.103131
Wangyang Lai , Liguo Lin , Xiaochi Shen , Maigeng Zhou
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.
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引用次数: 0
Input subsidies and the depletion of natural capital: Chinese distant water fishing
IF 5.5 3区 经济学 Q1 BUSINESS Pub Date : 2025-02-06 DOI: 10.1016/j.jeem.2025.103127
Gabriel Englander , Jihua Zhang , Juan Carlos Villaseñor-Derbez , Qutu Jiang , Mingzhao Hu , Olivier Deschenes , Christopher Costello
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%.
{"title":"Input subsidies and the depletion of natural capital: Chinese distant water fishing","authors":"Gabriel Englander ,&nbsp;Jihua Zhang ,&nbsp;Juan Carlos Villaseñor-Derbez ,&nbsp;Qutu Jiang ,&nbsp;Mingzhao Hu ,&nbsp;Olivier Deschenes ,&nbsp;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}
引用次数: 0
Competition for carbon storage
IF 5.5 3区 经济学 Q1 BUSINESS Pub Date : 2025-02-01 DOI: 10.1016/j.jeem.2025.103128
Rolf Golombek , Michael Hoel , Snorre Kverndokk , Stefano Ninfole , Knut Einar Rosendahl
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.
{"title":"Competition for carbon storage","authors":"Rolf Golombek ,&nbsp;Michael Hoel ,&nbsp;Snorre Kverndokk ,&nbsp;Stefano Ninfole ,&nbsp;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}
引用次数: 0
Why green subsidies are preferred to carbon taxes: Climate policy with heightened carbon tax salience
IF 5.5 3区 经济学 Q1 BUSINESS Pub Date : 2025-01-31 DOI: 10.1016/j.jeem.2025.103129
Frederick van der Ploeg
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.
{"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}
引用次数: 0
The enduring effects of China’s Payments for Ecosystem Services: Short- and long-term industrial transformations
IF 5.5 3区 经济学 Q1 BUSINESS Pub Date : 2025-01-27 DOI: 10.1016/j.jeem.2025.103119
Wen Wang , Qi Pan
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.
{"title":"The enduring effects of China’s Payments for Ecosystem Services: Short- and long-term industrial transformations","authors":"Wen Wang ,&nbsp;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}
引用次数: 0
Climate change and fractional outcomes: A long-run panel study of U.S. crop failure rates and pasture rates
IF 5.5 3区 经济学 Q1 BUSINESS Pub Date : 2025-01-23 DOI: 10.1016/j.jeem.2024.103116
Seung Min Kim , Robert Mendelsohn
This paper adopts the Fractional Response Model (Papke et al., 1996) to the Mérel et al. (2021) panel model to study warming effects on county crop failure and pasture rates across the United States. Warming is predicted to increase national crop failure rates by 0.5 percentage points per °C but not change national pasture rates. Counties with high average failure rates in the southern Great Plains-Rocky Mountain regions are especially vulnerable to warming. Counties in the north will pasture less and counties in the south will pasture more cropland with warming. In contrast, covariates that increase crop productivity, such as groundwater irrigation availability, reduce pasture rate and failure rate. These crop failure and pasture effects must be added to the yield effects reported in the literature to get a complete picture of the effects of climate change on agriculture.
{"title":"Climate change and fractional outcomes: A long-run panel study of U.S. crop failure rates and pasture rates","authors":"Seung Min Kim ,&nbsp;Robert Mendelsohn","doi":"10.1016/j.jeem.2024.103116","DOIUrl":"10.1016/j.jeem.2024.103116","url":null,"abstract":"<div><div>This paper adopts the Fractional Response Model (Papke et al., 1996) to the Mérel et al. (2021) panel model to study warming effects on county crop failure and pasture rates across the United States. Warming is predicted to increase national crop failure rates by 0.5 percentage points per <span><math><mrow><mo>°</mo><mi>C</mi></mrow></math></span> but not change national pasture rates. Counties with high average failure rates in the southern Great Plains-Rocky Mountain regions are especially vulnerable to warming. Counties in the north will pasture less and counties in the south will pasture more cropland with warming. In contrast, covariates that increase crop productivity, such as groundwater irrigation availability, reduce pasture rate and failure rate. These crop failure and pasture effects must be added to the yield effects reported in the literature to get a complete picture of the effects of climate change on agriculture.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"130 ","pages":"Article 103116"},"PeriodicalIF":5.5,"publicationDate":"2025-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143183280","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}
引用次数: 0
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Journal of Environmental Economics and Management
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