Pub Date : 2025-11-04DOI: 10.1016/j.jeem.2025.103246
Jonathan E. Hughes
Low prices, limited capacity and increased interest in outdoor recreation contribute to intense competition for public campsites in the United States. Yet, users and park managers report high vacancy rates due to unused reservations or “no-shows.” I develop a simple model for the campground reservation, cancellation and no-show decisions. I numerically simulate pricing policies at a hypothetical but representative park. When capacity constraints are binding, the cancellation fees charged by many parks increase no-shows and decrease consumer surplus. In contrast, modestly higher prices and no-show fees dramatically reduce no-shows and increase social surplus by 8 to 15 percent. However, these policies create different distributional effects. Higher prices raise revenue but decrease consumer surplus and discourage reservations from lower income users when income is positively correlated with trip utility. No-show fees increase consumer surplus and do not materially affect the income distribution of users. The optimal no-show fee, equal to the lost consumer surplus from the marginal no-show, maximizes consumer surplus and increases social surplus by 8.5 percent.
{"title":"Managing no-shows in public resource allocation: The economics of campground reservations","authors":"Jonathan E. Hughes","doi":"10.1016/j.jeem.2025.103246","DOIUrl":"10.1016/j.jeem.2025.103246","url":null,"abstract":"<div><div>Low prices, limited capacity and increased interest in outdoor recreation contribute to intense competition for public campsites in the United States. Yet, users and park managers report high vacancy rates due to unused reservations or “no-shows.” I develop a simple model for the campground reservation, cancellation and no-show decisions. I numerically simulate pricing policies at a hypothetical but representative park. When capacity constraints are binding, the cancellation fees charged by many parks increase no-shows and decrease consumer surplus. In contrast, modestly higher prices and no-show fees dramatically reduce no-shows and increase social surplus by 8 to 15 percent. However, these policies create different distributional effects. Higher prices raise revenue but decrease consumer surplus and discourage reservations from lower income users when income is positively correlated with trip utility. No-show fees increase consumer surplus and do not materially affect the income distribution of users. The optimal no-show fee, equal to the lost consumer surplus from the marginal no-show, maximizes consumer surplus and increases social surplus by 8.5 percent.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"135 ","pages":"Article 103246"},"PeriodicalIF":5.9,"publicationDate":"2025-11-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145526342","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}
Pub Date : 2025-11-01DOI: 10.1016/j.jeem.2025.103247
Sergei Schaub , Alexander Pfaff , Petyo Bonev
Paying farmers for measured outcomes—i.e., results, not actions—is promoted for raising the effectiveness and flexibility of efforts to address agriculture's environmental damages. One key design choice is how exactly to reward these measured results. Continuous rewards are possible, yet, in practice, observed species outcomes have been rewarded using a single threshold (compliant/not compliant) or, to move toward continuity, a few thresholds (e.g., low/medium/high). We assess whether more continuous rewards—specifically, multiple target thresholds for plant species—raise bird diversity. We study a pilot scheme in Germany's federal state of Lower Saxony, where an incentive with one threshold is the baseline. Using citizen-science bird data (offering over 6.7m entries across 16 years) and staggered difference-in-differences estimation, we find that the pilot scheme using multiple target thresholds for plant species raised bird diversity versus the single-threshold baseline (same lower threshold, but no further thresholds). Our results show the benefits of even small shifts in incentive design.
{"title":"Biodiversity and the design of result-based payments: Evidence from Germany","authors":"Sergei Schaub , Alexander Pfaff , Petyo Bonev","doi":"10.1016/j.jeem.2025.103247","DOIUrl":"10.1016/j.jeem.2025.103247","url":null,"abstract":"<div><div>Paying farmers for measured outcomes—i.e., results, not actions—is promoted for raising the effectiveness and flexibility of efforts to address agriculture's environmental damages. One key design choice is how exactly to reward these measured results. Continuous rewards are possible, yet, in practice, observed species outcomes have been rewarded using a single threshold (compliant/not compliant) or, to move toward continuity, a few thresholds (e.g., low/medium/high). We assess whether more continuous rewards—specifically, multiple target thresholds for plant species—raise bird diversity. We study a pilot scheme in Germany's federal state of Lower Saxony, where an incentive with one threshold is the baseline. Using citizen-science bird data (offering over 6.7m entries across 16 years) and staggered difference-in-differences estimation, we find that the pilot scheme using multiple target thresholds for plant species raised bird diversity versus the single-threshold baseline (same lower threshold, but no further thresholds). Our results show the benefits of even small shifts in incentive design.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"134 ","pages":"Article 103247"},"PeriodicalIF":5.9,"publicationDate":"2025-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145416884","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}
Climate change is projected to increase the frequency and intensity of extremely hot days. We use a panel regression framework at the sub-national (i.e., regional) level to identify the effect of extreme heat on economic growth in Latin America accounting for acclimation to the season and to the local climate. Extreme heat affects economic growth directly in addition to any indirect effect through higher seasonal mean temperatures. Extreme heat has a negative and significant impact on economic growth, and the magnitude of the impact increases with the intensity and duration of heat. Our results suggest that the impact of each additional consecutive day of extreme heat is greater than the impact of the prior day. We provide suggestive evidence that agriculture is one channel through which extreme heat impacts economic growth. Extreme heat could account for 34 %–68 % of the total projected reduction in the annual economic growth rate at mid-century due to temperature change. Our results suggest that extreme heat is one potential channel for the documented non-linearity in the impacts of rising mean temperature.
{"title":"The effect of extreme heat on economic growth: Evidence from Latin America","authors":"Juliana Dueñas, Alejandra Goytia, Bridget Hoffmann","doi":"10.1016/j.jeem.2025.103241","DOIUrl":"10.1016/j.jeem.2025.103241","url":null,"abstract":"<div><div>Climate change is projected to increase the frequency and intensity of extremely hot days. We use a panel regression framework at the sub-national (i.e., regional) level to identify the effect of extreme heat on economic growth in Latin America accounting for acclimation to the season and to the local climate. Extreme heat affects economic growth directly in addition to any indirect effect through higher seasonal mean temperatures. Extreme heat has a negative and significant impact on economic growth, and the magnitude of the impact increases with the intensity and duration of heat. Our results suggest that the impact of each additional consecutive day of extreme heat is greater than the impact of the prior day. We provide suggestive evidence that agriculture is one channel through which extreme heat impacts economic growth. Extreme heat could account for 34 %–68 % of the total projected reduction in the annual economic growth rate at mid-century due to temperature change. Our results suggest that extreme heat is one potential channel for the documented non-linearity in the impacts of rising mean temperature.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"135 ","pages":"Article 103241"},"PeriodicalIF":5.9,"publicationDate":"2025-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145526341","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}
Pub Date : 2025-10-18DOI: 10.1016/j.jeem.2025.103245
Peng Shen , Xincheng Wang , Yinxiao Wang , Yucheng Wang , Chu A.(Alex) Yu , Shuhuai Zhang
This study examines the role of charitable giving in mitigating environmental damages. We study donations to the potential victims of air pollution—particularly patients with respiratory diseases—when donors are exposed to varying levels of air pollution. Using unique data from a major online medical crowdfunding platform in China, our empirical design compares the differential impact of air pollution exposure on donations across different disease categories. Our findings indicate that a one-standard-deviation increase in ambient PM2.5 exposure leads to a significant 20.8 % increase in donations toward respiratory disease patients relative to non-respiratory disease patients. We further provide evidence that these effects are unlikely to be driven by information exposure to air pollution, consistent with the interpretation that personal experience may play a role, though this mechanism is not directly observed or tested. For respiratory diseases, the charitable contributions induced by air pollution are quantitatively comparable to the additional medical expenses caused by air pollution.
{"title":"Air pollution exposure and donation to its victims: Evidence from online charitable giving","authors":"Peng Shen , Xincheng Wang , Yinxiao Wang , Yucheng Wang , Chu A.(Alex) Yu , Shuhuai Zhang","doi":"10.1016/j.jeem.2025.103245","DOIUrl":"10.1016/j.jeem.2025.103245","url":null,"abstract":"<div><div>This study examines the role of charitable giving in mitigating environmental damages. We study donations to the potential victims of air pollution—particularly patients with respiratory diseases—when donors are exposed to varying levels of air pollution. Using unique data from a major online medical crowdfunding platform in China, our empirical design compares the differential impact of air pollution exposure on donations across different disease categories. Our findings indicate that a one-standard-deviation increase in ambient PM<sub>2.5</sub> exposure leads to a significant 20.8 % increase in donations toward respiratory disease patients relative to non-respiratory disease patients. We further provide evidence that these effects are unlikely to be driven by information exposure to air pollution, consistent with the interpretation that personal experience may play a role, though this mechanism is not directly observed or tested. For respiratory diseases, the charitable contributions induced by air pollution are quantitatively comparable to the additional medical expenses caused by air pollution.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"135 ","pages":"Article 103245"},"PeriodicalIF":5.9,"publicationDate":"2025-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145371445","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}
Pub Date : 2025-10-16DOI: 10.1016/j.jeem.2025.103244
Praveen Kumar , Eshita Gupta , E. Somanathan
In most Indian states, electricity for irrigation is unmetered but rationed through limited daily supply hours. This study estimates the impact of the 24-hour agricultural electricity policy implemented in Telangana state in 2018, which effectively removed this rationing. Using a district-level monthly panel on agricultural power consumption in Telangana and boundary districts in neighboring states, we find a 53 % increase in agricultural power consumption in Telangana in the two years following the policy, a result that is consistent with a sharp increase in the area under water-intensive rice cultivation in Telangana relative to neighboring states. However, an analysis of detailed groundwater depth data from government monitoring wells, using a geographic difference-in-differences design, reveals no statistically significant change in measured groundwater levels or in the incidence of dry wells. We argue that these seemingly contradictory outcomes stem from limitations in the monitoring framework, which fails to capture water availability in farmer wells in regions with fragmented hard rock aquifers. Our findings highlight that unrestricted power supply can lead to substantial inefficiency in electricity and groundwater use, while official monitoring systems may fail to capture the full hydrological impact. This has important implications for both energy and groundwater policy in South India and other regions with similar hydrogeology.
{"title":"Removing rationing: Power consumption and groundwater monitoring in South India","authors":"Praveen Kumar , Eshita Gupta , E. Somanathan","doi":"10.1016/j.jeem.2025.103244","DOIUrl":"10.1016/j.jeem.2025.103244","url":null,"abstract":"<div><div>In most Indian states, electricity for irrigation is unmetered but rationed through limited daily supply hours. This study estimates the impact of the 24-hour agricultural electricity policy implemented in Telangana state in 2018, which effectively removed this rationing. Using a district-level monthly panel on agricultural power consumption in Telangana and boundary districts in neighboring states, we find a 53 % increase in agricultural power consumption in Telangana in the two years following the policy, a result that is consistent with a sharp increase in the area under water-intensive rice cultivation in Telangana relative to neighboring states. However, an analysis of detailed groundwater depth data from government monitoring wells, using a geographic difference-in-differences design, reveals no statistically significant change in measured groundwater levels or in the incidence of dry wells. We argue that these seemingly contradictory outcomes stem from limitations in the monitoring framework, which fails to capture water availability in farmer wells in regions with fragmented hard rock aquifers. Our findings highlight that unrestricted power supply can lead to substantial inefficiency in electricity and groundwater use, while official monitoring systems may fail to capture the full hydrological impact. This has important implications for both energy and groundwater policy in South India and other regions with similar hydrogeology.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"135 ","pages":"Article 103244"},"PeriodicalIF":5.9,"publicationDate":"2025-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145425810","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}
Pub Date : 2025-10-09DOI: 10.1016/j.jeem.2025.103243
Andreas Skulstad , Erlend Dancke Sandorf , Zander Venter , Anders Dugstad
Use-values of nonmarket environmental amenities are often elicited by studying the demand for outdoor recreation, and credible value estimates are essential for designing efficient policies affecting the supply of such goods. Yet, rigorous causal identification of outdoor recreation demand remains limited. Our study contributes to the growing literature that applies causal inference techniques and GPS-based observational data to the valuation of nonmarket environmental amenities. We exploit a sharp increase in electricity prices in Norway following Russia's invasion of Ukraine in 2022 as a natural experiment to study the price sensitivity of cabin-based outdoor recreation. Using activity traces from the training app Strava, spatially merged with geolocated cabin sites, we find a 15 % decline in cabin recreation following the price shock. From this response, we infer an average consumer surplus of approximately $6000 per cabin owner per year, equivalent to about $204 per use-day, and a price elasticity of −0.24, indicating inelastic demand. These findings point to considerable welfare benefits from cabin recreation and illustrate the value of combining quasi-experimental designs with high-frequency mobility data for valuation of nonmarket environmental amenities.
{"title":"The value of cabin-based outdoor recreation: Evidence from a natural experiment","authors":"Andreas Skulstad , Erlend Dancke Sandorf , Zander Venter , Anders Dugstad","doi":"10.1016/j.jeem.2025.103243","DOIUrl":"10.1016/j.jeem.2025.103243","url":null,"abstract":"<div><div>Use-values of nonmarket environmental amenities are often elicited by studying the demand for outdoor recreation, and credible value estimates are essential for designing efficient policies affecting the supply of such goods. Yet, rigorous causal identification of outdoor recreation demand remains limited. Our study contributes to the growing literature that applies causal inference techniques and GPS-based observational data to the valuation of nonmarket environmental amenities. We exploit a sharp increase in electricity prices in Norway following Russia's invasion of Ukraine in 2022 as a natural experiment to study the price sensitivity of cabin-based outdoor recreation. Using activity traces from the training app Strava, spatially merged with geolocated cabin sites, we find a 15 % decline in cabin recreation following the price shock. From this response, we infer an average consumer surplus of approximately $6000 per cabin owner per year, equivalent to about $204 per use-day, and a price elasticity of −0.24, indicating inelastic demand. These findings point to considerable welfare benefits from cabin recreation and illustrate the value of combining quasi-experimental designs with high-frequency mobility data for valuation of nonmarket environmental amenities.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"134 ","pages":"Article 103243"},"PeriodicalIF":5.9,"publicationDate":"2025-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145266138","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}
Pub Date : 2025-10-08DOI: 10.1016/j.jeem.2025.103239
Renato Vieira , Rafael H.M. Pereira , Lucas Emanuel , Pedro Jorge Alves
Transit fare subsidies can be justified as a second-best policy to address automobile-related externalities. Yet, evidence of fare subsidy effectiveness in shifting users from cars to transit, particularly in low- and middle-income contexts, remains limited. This study leverages a large-scale quasi-natural experiment in Brazil, a developing country with high public transit usage, to evaluate the causal effects of a full fare subsidization on travel behaviors among older adults. Utilizing a regression discontinuity design based on age-based eligibility thresholds that vary by sex and city, we analyze data from 11 household travel surveys covering seven metropolitan areas and approximately 25 % of the Brazilian population. By comparing individuals just above and below eligibility thresholds, we assess changes in trip frequency, duration by transport mode, and vehicle ownership. Results indicate fare-free transit eligibility increases older adults’ public transit ridership by approximately 7.1 %, with transit trips becoming 7.3 % shorter. However, the rise in transit use predominantly reflects substitution away from walking, which decreased by 8.2 %. Importantly, we find no significant impacts on car usage or vehicle ownership, suggesting that fare-free transit policies may have limited effectiveness in reducing automobile use and related externalities in such contexts.
{"title":"The effects of fare-free transit on the travel behavior of older adults","authors":"Renato Vieira , Rafael H.M. Pereira , Lucas Emanuel , Pedro Jorge Alves","doi":"10.1016/j.jeem.2025.103239","DOIUrl":"10.1016/j.jeem.2025.103239","url":null,"abstract":"<div><div>Transit fare subsidies can be justified as a second-best policy to address automobile-related externalities. Yet, evidence of fare subsidy effectiveness in shifting users from cars to transit, particularly in low- and middle-income contexts, remains limited. This study leverages a large-scale quasi-natural experiment in Brazil, a developing country with high public transit usage, to evaluate the causal effects of a full fare subsidization on travel behaviors among older adults. Utilizing a regression discontinuity design based on age-based eligibility thresholds that vary by sex and city, we analyze data from 11 household travel surveys covering seven metropolitan areas and approximately 25 % of the Brazilian population. By comparing individuals just above and below eligibility thresholds, we assess changes in trip frequency, duration by transport mode, and vehicle ownership. Results indicate fare-free transit eligibility increases older adults’ public transit ridership by approximately 7.1 %, with transit trips becoming 7.3 % shorter. However, the rise in transit use predominantly reflects substitution away from walking, which decreased by 8.2 %. Importantly, we find no significant impacts on car usage or vehicle ownership, suggesting that fare-free transit policies may have limited effectiveness in reducing automobile use and related externalities in such contexts.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"134 ","pages":"Article 103239"},"PeriodicalIF":5.9,"publicationDate":"2025-10-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145266137","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}
Pub Date : 2025-10-04DOI: 10.1016/j.jeem.2025.103242
Julia Mink
This study estimates the short-term healthcare costs of exposure to fine particulate matter (PM2.5) in France, where pollution levels are well below current European Union air quality standards. Using administrative data on healthcare expenditure for a representative population sample from 2015 to 2018, combined with high-resolution geospatial data on pollution and meteorological conditions, I implement an instrumental variable strategy that exploits exogenous variation in pollution driven by altitude weather patterns. I find that even moderate increases in PM2.5 significantly raise weekly healthcare costs, with estimated effects two to six times larger than those found in prior studies. Effects are observed across all age groups and in various medical specialties, including cardiology, pulmonology, and neurology. The findings suggest a concave dose-response relationship, with larger marginal effects at lower pollution levels. Aligning pollution concentrations with the WHO’s 2021 guideline could lead to annual savings of €6.44–8.67 billion, which far exceed estimated abatement costs. These results provide a strong economic justification for more ambitious air quality regulations.
{"title":"The healthcare costs of air pollution in France","authors":"Julia Mink","doi":"10.1016/j.jeem.2025.103242","DOIUrl":"10.1016/j.jeem.2025.103242","url":null,"abstract":"<div><div>This study estimates the short-term healthcare costs of exposure to fine particulate matter (PM<sub>2.5</sub>) in France, where pollution levels are well below current European Union air quality standards. Using administrative data on healthcare expenditure for a representative population sample from 2015 to 2018, combined with high-resolution geospatial data on pollution and meteorological conditions, I implement an instrumental variable strategy that exploits exogenous variation in pollution driven by altitude weather patterns. I find that even moderate increases in PM<sub>2.5</sub> significantly raise weekly healthcare costs, with estimated effects two to six times larger than those found in prior studies. Effects are observed across all age groups and in various medical specialties, including cardiology, pulmonology, and neurology. The findings suggest a concave dose-response relationship, with larger marginal effects at lower pollution levels. Aligning pollution concentrations with the WHO’s 2021 guideline could lead to annual savings of €6.44–8.67 billion, which far exceed estimated abatement costs. These results provide a strong economic justification for more ambitious air quality regulations.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"134 ","pages":"Article 103242"},"PeriodicalIF":5.9,"publicationDate":"2025-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145266139","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}
Pub Date : 2025-09-30DOI: 10.1016/j.jeem.2025.103240
MohammadAli Mokhtari , Hamed Ghoddusi
Recent estimates suggest that eliminating fossil fuel subsidies could prevent 1.6 million premature deaths annually by reducing air pollution, while also addressing the unequal distribution of resources. How unequal are the benefits of these subsidies? Using Iranian household expenditure data (1984–2019) covering three major subsidy reforms, this study estimates the inequality-reducing impact of replacing fuel subsidies with direct, universal, and unconditional cash transfers. Our robust estimates show that reallocating USD 1 per capita per day from fuel subsidies to direct cash transfers reduces the Gini coefficient of expenditure by 8 %. These findings underscore the redistributive potential of such reforms and their role in fostering more equitable and sustainable policy design.
{"title":"Fueling inequality: A novel estimate from large-scale reforms","authors":"MohammadAli Mokhtari , Hamed Ghoddusi","doi":"10.1016/j.jeem.2025.103240","DOIUrl":"10.1016/j.jeem.2025.103240","url":null,"abstract":"<div><div>Recent estimates suggest that eliminating fossil fuel subsidies could prevent 1.6 million premature deaths annually by reducing air pollution, while also addressing the unequal distribution of resources. How unequal are the benefits of these subsidies? Using Iranian household expenditure data (1984–2019) covering three major subsidy reforms, this study estimates the inequality-reducing impact of replacing fuel subsidies with direct, universal, and unconditional cash transfers. Our robust estimates show that reallocating USD 1 per capita per day from fuel subsidies to direct cash transfers reduces the Gini coefficient of expenditure by 8 %. These findings underscore the redistributive potential of such reforms and their role in fostering more equitable and sustainable policy design.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"134 ","pages":"Article 103240"},"PeriodicalIF":5.9,"publicationDate":"2025-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145266140","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}
Sustainability is a fundamental concept in the environmental domain, but also in other domains, e.g., regarding personal health. Sustainability means using resources today in a way that does not compromise the availability of resources tomorrow. We propose and test a model that incorporates the essential features of sustainability. First, our Sustainability Game is dynamic in the sense that the actions played in each period have consequences for future periods. Second, there is a contribution threshold that must be reached in order to maintain the level of resources, while some use of resources can be absorbed. Third, it incorporates that the temptation to over-use resources is strong when more than one individual is involved. We first derive equilibrium behavior analytically and then test these pre-registered predictions in the lab. Our main results are the following: (i) Theoretically and experimentally, strategic interaction reduces cooperative behavior and undermines sustainability. (ii) Theoretically and experimentally, lowering the threshold fosters cooperative behavior (i.e., contributing according to the threshold) and sustainability. Our results suggest that technological advancements that lower the threshold for sustainability and behavior change toward sustainability need not be viewed as alternatives, but rather as complementary.
{"title":"Sustainability as a dynamic game","authors":"Berno Buechel, Corinne Dubois , Stephanie Fuerer, Tjaša Maillard-Bjedov","doi":"10.1016/j.jeem.2025.103238","DOIUrl":"10.1016/j.jeem.2025.103238","url":null,"abstract":"<div><div>Sustainability is a fundamental concept in the environmental domain, but also in other domains, e.g., regarding personal health. Sustainability means using resources today in a way that does not compromise the availability of resources tomorrow. We propose and test a model that incorporates the essential features of sustainability. First, our Sustainability Game is dynamic in the sense that the actions played in each period have consequences for future periods. Second, there is a contribution threshold that must be reached in order to maintain the level of resources, while some use of resources can be absorbed. Third, it incorporates that the temptation to over-use resources is strong when more than one individual is involved. We first derive equilibrium behavior analytically and then test these pre-registered predictions in the lab. Our main results are the following: (i) Theoretically and experimentally, strategic interaction reduces cooperative behavior and undermines sustainability. (ii) Theoretically and experimentally, lowering the threshold fosters cooperative behavior (i.e., contributing according to the threshold) and sustainability. Our results suggest that technological advancements that lower the threshold for sustainability and behavior change toward sustainability need not be viewed as alternatives, but rather as complementary.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"134 ","pages":"Article 103238"},"PeriodicalIF":5.9,"publicationDate":"2025-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145155108","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}