Pub Date : 2024-05-30DOI: 10.1016/j.jeem.2024.103013
Rainald Borck , Philipp Schrauth
We use worldwide gridded satellite data to analyse how population size and density affect urban pollution. We find that more populated and denser grid cells are more exposed to pollution. However, across urban areas, exposure increases with cities’ population size but decreases with density. Moreover, the population effect is driven mostly by population commuting to core cities rather than the core city population itself. We analyse heterogeneity by geography and income levels. A counterfactual simulation shows that exposure could fall by up to 40% if population size were equalized across all cities within countries, but the relocation of population from large to small cities that maximizes welfare would be small.
{"title":"Urban pollution: A global perspective","authors":"Rainald Borck , Philipp Schrauth","doi":"10.1016/j.jeem.2024.103013","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.103013","url":null,"abstract":"<div><p>We use worldwide gridded satellite data to analyse how population size and density affect urban <span><math><msub><mrow><mi>PM</mi></mrow><mrow><mn>2</mn><mo>.</mo><mn>5</mn></mrow></msub></math></span> pollution. We find that more populated and denser grid cells are more exposed to pollution. However, across urban areas, exposure increases with cities’ population size but decreases with density. Moreover, the population effect is driven mostly by population commuting to core cities rather than the core city population itself. We analyse heterogeneity by geography and income levels. A counterfactual simulation shows that <span><math><msub><mrow><mi>PM</mi></mrow><mrow><mn>2</mn><mo>.</mo><mn>5</mn></mrow></msub></math></span> exposure could fall by up to 40% if population size were equalized across all cities within countries, but the relocation of population from large to small cities that maximizes welfare would be small.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"126 ","pages":"Article 103013"},"PeriodicalIF":4.6,"publicationDate":"2024-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141249562","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}
This paper studies how centralizing environmental administration affects air pollution in China. China launched a reform in 2016 to empower upper-level environmental protection bureaus to administer lower-level bureaus vertically through personnel control. Exploiting a stacked difference-in-differences strategy, we find that the reform significantly reduced air pollution. The effect was stronger in places where pollution was less likely to be affected by spillovers from other provinces, where local governments initially paid less attention to environmental protection, and where there was less economic importance. Further analysis shows that the reform reduced pollution by strengthening the pollution reduction incentives of local environmental officials, increasing the intensity of local environmental inspection, and promoting environmental compliance by polluting firms.
{"title":"Centralization of environmental administration and air pollution: Evidence from China","authors":"Jidong Chen , Xinzheng Shi , Ming-ang Zhang , Sihan Zhang","doi":"10.1016/j.jeem.2024.103016","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.103016","url":null,"abstract":"<div><p>This paper studies how centralizing environmental administration affects air pollution in China. China launched a reform in 2016 to empower upper-level environmental protection bureaus to administer lower-level bureaus vertically through personnel control. Exploiting a stacked difference-in-differences strategy, we find that the reform significantly reduced air pollution. The effect was stronger in places where pollution was less likely to be affected by spillovers from other provinces, where local governments initially paid less attention to environmental protection, and where there was less economic importance. Further analysis shows that the reform reduced pollution by strengthening the pollution reduction incentives of local environmental officials, increasing the intensity of local environmental inspection, and promoting environmental compliance by polluting firms.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"126 ","pages":"Article 103016"},"PeriodicalIF":4.6,"publicationDate":"2024-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141249679","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 : 2024-05-21DOI: 10.1016/j.jeem.2024.103011
Robert J. Johnston , Tobias Börger , Nick Hanley , Keila Meginnis , Tom Ndebele , Ghamz E. Ali Siyal , Nicola Beaumont , Frans P. de Vries
Stated preference (SP) research on willingness to pay (WTP) for improvements to wildlife populations focuses almost universally on measures related to whether organisms live or die. Preferences for changes in non-lethal harm to wildlife are generally overlooked. To evaluate the consequences, this article develops a theoretical model and corresponding discrete choice experiment (DCE) to evaluate whether and how the omission of information on non-lethal wildlife harm influences WTP estimation, grounded in a case study of marine plastic reductions in the North Atlantic. The theoretical model suggests that when environmental programs have both lethal and non-lethal impacts on wild species, DCEs that omit information on the latter may not produce valid welfare measures. Empirical results show that the omission of this information has multiple impacts on welfare estimates, largely consistent with theoretical predictions. Results suggest that welfare estimates for wildlife improvements can be confounded by the omission of information on non-lethal harm from SP scenarios. Results also demonstrate the hazards of excluding potentially welfare-relevant information from SP scenarios when respondents might assume relationships between omitted information and other material included in the questionnaire.
{"title":"Consequences of omitting non-lethal wildlife impacts from stated preference scenarios","authors":"Robert J. Johnston , Tobias Börger , Nick Hanley , Keila Meginnis , Tom Ndebele , Ghamz E. Ali Siyal , Nicola Beaumont , Frans P. de Vries","doi":"10.1016/j.jeem.2024.103011","DOIUrl":"10.1016/j.jeem.2024.103011","url":null,"abstract":"<div><p>Stated preference (SP) research on willingness to pay (WTP) for improvements to wildlife populations focuses almost universally on measures related to whether organisms live or die. Preferences for changes in non-lethal harm to wildlife are generally overlooked. To evaluate the consequences, this article develops a theoretical model and corresponding discrete choice experiment (DCE) to evaluate whether and how the omission of information on non-lethal wildlife harm influences WTP estimation, grounded in a case study of marine plastic reductions in the North Atlantic. The theoretical model suggests that when environmental programs have both lethal and non-lethal impacts on wild species, DCEs that omit information on the latter may not produce valid welfare measures. Empirical results show that the omission of this information has multiple impacts on welfare estimates, largely consistent with theoretical predictions. Results suggest that welfare estimates for wildlife improvements can be confounded by the omission of information on non-lethal harm from SP scenarios. Results also demonstrate the hazards of excluding potentially welfare-relevant information from SP scenarios when respondents might assume relationships between omitted information and other material included in the questionnaire.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"126 ","pages":"Article 103011"},"PeriodicalIF":4.6,"publicationDate":"2024-05-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141139022","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 : 2024-05-09DOI: 10.1016/j.jeem.2024.102999
Nathaly M. Rivera , J. Cristobal Ruiz-Tagle , Elisheba Spiller
Renewable energy can yield social benefits through local air quality improvements and their subsequent effects on human health. We estimate some of these benefits using data gathered during the rapid adoption of large-scale solar power generation in Chile over the last decade. Relying on exogenous variation from solar irradiation and incremental solar generation capacity over time, we find that solar energy displaces coal generation and curtails hospital admissions due to respiratory diseases. These effects are largely manifested in cities downwind of and near coal plants that are displaced by the introduction of new solar. The reduction in exposure to air pollution from these displaced coal plants seems to be driving this relationship. Our results help quantify the health benefits that can be achieved through greater renewable energy investments.
{"title":"The health benefits of solar power generation: Evidence from Chile","authors":"Nathaly M. Rivera , J. Cristobal Ruiz-Tagle , Elisheba Spiller","doi":"10.1016/j.jeem.2024.102999","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.102999","url":null,"abstract":"<div><p>Renewable energy can yield social benefits through local air quality improvements and their subsequent effects on human health. We estimate some of these benefits using data gathered during the rapid adoption of large-scale solar power generation in Chile over the last decade. Relying on exogenous variation from solar irradiation and incremental solar generation capacity over time, we find that solar energy displaces coal generation and curtails hospital admissions due to respiratory diseases. These effects are largely manifested in cities downwind of and near coal plants that are displaced by the introduction of new solar. The reduction in exposure to air pollution from these displaced coal plants seems to be driving this relationship. Our results help quantify the health benefits that can be achieved through greater renewable energy investments.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"126 ","pages":"Article 102999"},"PeriodicalIF":4.6,"publicationDate":"2024-05-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141077922","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 : 2024-05-06DOI: 10.1016/j.jeem.2024.102997
Fernanda Martínez Flores , Sveta Milusheva , Arndt R. Reichert , Ann-Kristin Reitmann
Migration is one measure that individuals can take to adjust to the adverse impacts of increasingly extreme weather that can arise from climate change. Using novel geo-referenced high-frequency data, we investigate the impact of soil moisture anomalies on migration within West Africa and towards Europe. We estimate that a standard deviation decrease in soil moisture leads to a 2-percentage point drop in the probability of international migration, equivalent to a 25 percent decrease in the number of international migrants. This effect is concentrated during the months that immediately follow the crop-growing season among areas in the middle of the income distribution. The findings suggest that weather anomalies negatively affect agricultural production, leading to liquidity constraints that prevent people from moving internationally.
{"title":"Climate anomalies and international migration: A disaggregated analysis for West Africa","authors":"Fernanda Martínez Flores , Sveta Milusheva , Arndt R. Reichert , Ann-Kristin Reitmann","doi":"10.1016/j.jeem.2024.102997","DOIUrl":"10.1016/j.jeem.2024.102997","url":null,"abstract":"<div><p>Migration is one measure that individuals can take to adjust to the adverse impacts of increasingly extreme weather that can arise from climate change. Using novel geo-referenced high-frequency data, we investigate the impact of soil moisture anomalies on migration within West Africa and towards Europe. We estimate that a standard deviation decrease in soil moisture leads to a 2-percentage point drop in the probability of international migration, equivalent to a 25 percent decrease in the number of international migrants. This effect is concentrated during the months that immediately follow the crop-growing season among areas in the middle of the income distribution. The findings suggest that weather anomalies negatively affect agricultural production, leading to liquidity constraints that prevent people from moving internationally.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"126 ","pages":"Article 102997"},"PeriodicalIF":4.6,"publicationDate":"2024-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141047855","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 : 2024-05-04DOI: 10.1016/j.jeem.2024.102995
Nicola Benatti , Martin Groiss , Petra Kelly , Paloma Lopez-Garcia
This paper examines the impact of changes in the stringency of environmental regulations on productivity growth. We exploit several data sources, including the OECD Environmental Policy Stringency Index and balance sheet information from ORBIS and iBACH, to test the Porter hypothesis, according to which firms’ productivity can benefit from more stringent environmental policies. We estimate the regulatory impact over a five-year horizon using panel local projections. To identify the direction of the effects, we estimate equivalent emissions for all firms in our sample using a machine learning algorithm. As suggested by the country-level analysis and confirmed by the firm-level analysis, policy tightening negatively affects productivity growth of high-polluting firms and to a larger extent than that of their low-polluting peers. Hence, we do not find support for the Porter hypothesis in general. However, not all policies have the same impact – non-market based policies are the most detrimental to productivity growth – and not all highly polluting firms are affected in the same way – the negative impact is mitigated for large firms, which may benefit from easier access to finance and greater innovativeness.
本文探讨了环境法规严格程度的变化对生产率增长的影响。我们利用多个数据来源(包括经合组织环境政策严格指数以及 ORBIS 和 iBACH 的资产负债表信息)来检验波特假说,根据波特假说,企业的生产率可从更严格的环境政策中获益。我们利用面板本地预测估算了五年内的监管影响。为了确定影响的方向,我们使用机器学习算法估算了样本中所有企业的二氧化碳排放当量。正如国家层面的分析和企业层面的分析所证实的那样,政策收紧对高污染企业的生产率增长产生了负面影响,且影响程度大于低污染企业。因此,我们没有发现波特假说在总体上得到支持。然而,并非所有政策都会产生同样的影响--非市场政策对生产率增长最为不利--也并非所有高污染企业都会受到同样的影响--大型企业的负面影响会有所缓解,因为它们可能受益于更容易获得资金和更高的创新能力。
{"title":"Environmental regulation and productivity growth in the euro area: Testing the porter hypothesis","authors":"Nicola Benatti , Martin Groiss , Petra Kelly , Paloma Lopez-Garcia","doi":"10.1016/j.jeem.2024.102995","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.102995","url":null,"abstract":"<div><p>This paper examines the impact of changes in the stringency of environmental regulations on productivity growth. We exploit several data sources, including the OECD Environmental Policy Stringency Index and balance sheet information from ORBIS and iBACH, to test the Porter hypothesis, according to which firms’ productivity can benefit from more stringent environmental policies. We estimate the regulatory impact over a five-year horizon using panel local projections. To identify the direction of the effects, we estimate <span><math><msub><mrow><mi>CO</mi></mrow><mrow><mn>2</mn></mrow></msub></math></span> equivalent emissions for all firms in our sample using a machine learning algorithm. As suggested by the country-level analysis and confirmed by the firm-level analysis, policy tightening negatively affects productivity growth of high-polluting firms and to a larger extent than that of their low-polluting peers. Hence, we do not find support for the Porter hypothesis in general. However, not all policies have the same impact – non-market based policies are the most detrimental to productivity growth – and not all highly polluting firms are affected in the same way – the negative impact is mitigated for large firms, which may benefit from easier access to finance and greater innovativeness.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"126 ","pages":"Article 102995"},"PeriodicalIF":4.6,"publicationDate":"2024-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140951624","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 : 2024-05-01DOI: 10.1016/j.jeem.2024.102979
Achim Hagen , Mark Schopf
We study the influence of industrial lobbying on national climate policies and the formation of an international environmental agreement if the coalition countries use border carbon adjustments to protect domestic producers. We find that the effects of this political influence crucially depend on the distribution of carbon tax revenues. If these are transferred to the households, lobbying distorts carbon taxes downwards to reduce the tax burden and does not affect coalition sizes. This leads to higher emissions and lower welfare. By contrast, if tax revenues are given back to the firms, lobbies in the outsider countries favor carbon taxes, whereas lobbies in the coalition countries favor carbon subsidies to raise the international commodity price. This reduces the tax difference and the welfare difference between the countries, which reduces the free-rider incentives. Then, lobbying stabilizes the grand coalition and reduces global emissions compared to a “perfect” world without lobbying if the political influence is sufficiently strong.
{"title":"Political influence on international climate agreements with border carbon adjustment","authors":"Achim Hagen , Mark Schopf","doi":"10.1016/j.jeem.2024.102979","DOIUrl":"10.1016/j.jeem.2024.102979","url":null,"abstract":"<div><p>We study the influence of industrial lobbying on national climate policies and the formation of an international environmental agreement if the coalition countries use border carbon adjustments to protect domestic producers. We find that the effects of this political influence crucially depend on the distribution of carbon tax revenues. If these are transferred to the households, lobbying distorts carbon taxes downwards to reduce the tax burden and does not affect coalition sizes. This leads to higher emissions and lower welfare. By contrast, if tax revenues are given back to the firms, lobbies in the outsider countries favor carbon taxes, whereas lobbies in the coalition countries favor carbon subsidies to raise the international commodity price. This reduces the tax difference and the welfare difference between the countries, which reduces the free-rider incentives. Then, lobbying stabilizes the grand coalition and reduces global emissions compared to a “perfect” world without lobbying if the political influence is sufficiently strong.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102979"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000536/pdfft?md5=f6553d4e1c98b54f87239cdaf53682df&pid=1-s2.0-S0095069624000536-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140772367","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}
Pub Date : 2024-05-01DOI: 10.1016/j.jeem.2024.102986
Lena Harris
Surface water supplies are becoming increasingly strained, pushing policy makers to find solutions to facilitate reductions in water use though there is limited evidence on how farmers respond to policy induced variation in surface water supplies. This paper uses a difference-in-differences framework to compare the response of farmers to a bundle of policies reducing deliveries from the Colorado River by 35%. I find that on average, farmers reduce the amount of land planted but plant more water intensive crops leading to a minimal reduction in total estimated water use compared to the counterfactual. Additionally, there is strong suggestive evidence that farmers are using groundwater to offset a significant amount of the surface water loss. These findings have important consequences for understanding the relative trade-offs policy makers face when implementing policies that protect surface water sources.
{"title":"Farmer response to policy induced water reductions: Evidence from the Colorado River","authors":"Lena Harris","doi":"10.1016/j.jeem.2024.102986","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.102986","url":null,"abstract":"<div><p>Surface water supplies are becoming increasingly strained, pushing policy makers to find solutions to facilitate reductions in water use though there is limited evidence on how farmers respond to policy induced variation in surface water supplies. This paper uses a difference-in-differences framework to compare the response of farmers to a bundle of policies reducing deliveries from the Colorado River by 35%. I find that on average, farmers reduce the amount of land planted but plant more water intensive crops leading to a minimal reduction in total estimated water use compared to the counterfactual. Additionally, there is strong suggestive evidence that farmers are using groundwater to offset a significant amount of the surface water loss. These findings have important consequences for understanding the relative trade-offs policy makers face when implementing policies that protect surface water sources.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102986"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140824800","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 : 2024-05-01DOI: 10.1016/j.jeem.2024.102994
Barbara Boggiano , Melisa Williams Higgins , Jesse Matheson , David Jenkins , Marco R. Oggioni
This paper estimates the impact of particulate matter pollutants, measured by levels, on public healthcare costs for youth and older adult populations using administrative data from two large UK hospitals and exploiting spatial and temporal variation in levels. We find that patient enrolment increases when their neighborhood experiences higher levels of . Specifically, a standard deviation increase in levels increases the enrolment of patients aged 60 years and older by 6.2% and the enrolment of patients under 18 years of age by 3.1%. Using detailed costing information, we estimate that a standard deviation increase in increases public healthcare costs by per year in the municipality studied.
{"title":"The contemporaneous healthcare cost of particulate matter pollution for youth and older adult populations","authors":"Barbara Boggiano , Melisa Williams Higgins , Jesse Matheson , David Jenkins , Marco R. Oggioni","doi":"10.1016/j.jeem.2024.102994","DOIUrl":"https://doi.org/10.1016/j.jeem.2024.102994","url":null,"abstract":"<div><p>This paper estimates the impact of particulate matter pollutants, measured by <span><math><mrow><mi>P</mi><mi>M</mi><mn>10</mn></mrow></math></span> levels, on public healthcare costs for youth and older adult populations using administrative data from two large UK hospitals and exploiting spatial and temporal variation in <span><math><mrow><mi>P</mi><mi>M</mi><mn>10</mn></mrow></math></span> levels. We find that patient enrolment increases when their neighborhood experiences higher levels of <span><math><mrow><mi>P</mi><mi>M</mi><mn>10</mn></mrow></math></span>. Specifically, a standard deviation increase in <span><math><mrow><mi>P</mi><mi>M</mi><mn>10</mn></mrow></math></span> levels increases the enrolment of patients aged 60 years and older by 6.2% and the enrolment of patients under 18 years of age by 3.1%. Using detailed costing information, we estimate that a standard deviation increase in <span><math><mrow><mi>P</mi><mi>M</mi><mn>10</mn></mrow></math></span> increases public healthcare costs by <span><math><mrow><mo>£</mo><mn>873</mn><mo>,</mo><mn>985</mn><mo>.</mo><mn>20</mn></mrow></math></span> per year in the municipality studied.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102994"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000688/pdfft?md5=fd8247d01c534a0a199e516a6d8fff3f&pid=1-s2.0-S0095069624000688-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140824821","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}
Pub Date : 2024-05-01DOI: 10.1016/j.jeem.2024.102985
Halvor Briseid Storrøsten
This paper examines the investment incentives of market-based regulation, focusing on the technology characteristics that different regulatory schemes tend to incentivize. The firms’ technology choice is socially optimal if and only if the aggregate emission allowance supply is completely inelastic. Furthermore, in the presence of uncertainty, elastic emission allowance supply, and strictly convex environmental damage, it is optimal to tax investments in technologies that induce a large variance in emissions. Lastly, price elastic supply of emission allowances may either increase or decrease the volatility in the product market, depending on the risk environment the firms face. The results indicate that introduction of permit price-stabilizing measures in an emission trading system will come at the cost of suboptimal technology investments, and may also lead to increased fluctuations in product prices.
{"title":"Emission regulation: Prices, quantities and hybrids with endogenous technology choice","authors":"Halvor Briseid Storrøsten","doi":"10.1016/j.jeem.2024.102985","DOIUrl":"10.1016/j.jeem.2024.102985","url":null,"abstract":"<div><p>This paper examines the investment incentives of market-based regulation, focusing on the technology characteristics that different regulatory schemes tend to incentivize. The firms’ technology choice is socially optimal if and only if the aggregate emission allowance supply is completely inelastic. Furthermore, in the presence of uncertainty, elastic emission allowance supply, and strictly convex environmental damage, it is optimal to tax investments in technologies that induce a large variance in emissions. Lastly, price elastic supply of emission allowances may either increase or decrease the volatility in the product market, depending on the risk environment the firms face. The results indicate that introduction of permit price-stabilizing measures in an emission trading system will come at the cost of suboptimal technology investments, and may also lead to increased fluctuations in product prices.</p></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"125 ","pages":"Article 102985"},"PeriodicalIF":4.6,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0095069624000597/pdfft?md5=5caedf640bd1b9930b0c27008b5c57a1&pid=1-s2.0-S0095069624000597-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140773673","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}