We study the role of social learning in the diffusion of cash crops in a resettled village economy in northeastern Brazil. We combine detailed geo-coded data on farming plots with dyadic data on social ties among settlers, and we leverage natural exogenous variation in network formation induced by the land occupation movement and the agrarian reform. By using longitudinal data on farming decisions over 15 years we find consistent evidence of significant peer effects in the decision to farm new cash fruits (pineapple and passion fruit). Our results suggest that social diffusion is heterogeneous along observed plot and crop characteristics, i.e. farmers growing water-sensitive crop are more likely to respond to the actions of peers with similar water access conditions.
{"title":"Learning About Farming: Innovation and Social Networks in a Resettled Community in Brazil","authors":"Margherita Comola, C. Inguaggiato, M. Mendola","doi":"10.2139/ssrn.3784592","DOIUrl":"https://doi.org/10.2139/ssrn.3784592","url":null,"abstract":"We study the role of social learning in the diffusion of cash crops in a resettled village economy in northeastern Brazil. We combine detailed geo-coded data on farming plots with dyadic data on social ties among settlers, and we leverage natural exogenous variation in network formation induced by the land occupation movement and the agrarian reform. By using longitudinal data on farming decisions over 15 years we find consistent evidence of significant peer effects in the decision to farm new cash fruits (pineapple and passion fruit). Our results suggest that social diffusion is heterogeneous along observed plot and crop characteristics, i.e. farmers growing water-sensitive crop are more likely to respond to the actions of peers with similar water access conditions.","PeriodicalId":210701,"journal":{"name":"Decision-Making in Public Policy & the Social Good eJournal","volume":"207 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-02-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126182208","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Existing North American regional programs for capping and reducing greenhouse gas emissions have come under criticism based on concerns regarding their perceived impact on environmental justice communities. When viewed through an ethical lens, programs that distribute emissions allowances by way of an auction with a sufficient reserve price comport better with principles of distributive justice than traditional permitting mechanisms, which award pollution allowances based on prior appropriation and do so without compensating society for consumption of a scarce resource. There is no evidence supporting claims that these programs increase levels having adverse health effects in disadvantaged communities. While levels of pollutants having adverse impacts on EJ communities were disproportionately increasing before the 2013 initiation of the California program, that trend reversed after the program’s initiation. By reinvesting auction revenues in programs to increase energy conservation, efficiency, and distributed generation in disadvantaged communities, the existing programs offset or eliminate adverse price impacts.
{"title":"Viewing the Environmental Justice Critiques of Greenhouse Gas Auction-Cap-Trade-and-Invest Programs Through an Ethical Lens","authors":"R. McKinstry","doi":"10.2139/ssrn.3772045","DOIUrl":"https://doi.org/10.2139/ssrn.3772045","url":null,"abstract":"Existing North American regional programs for capping and reducing greenhouse gas emissions have come under criticism based on concerns regarding their perceived impact on environmental justice communities. When viewed through an ethical lens, programs that distribute emissions allowances by way of an auction with a sufficient reserve price comport better with principles of distributive justice than traditional permitting mechanisms, which award pollution allowances based on prior appropriation and do so without compensating society for consumption of a scarce resource. There is no evidence supporting claims that these programs increase levels having adverse health effects in disadvantaged communities. While levels of pollutants having adverse impacts on EJ communities were disproportionately increasing before the 2013 initiation of the California program, that trend reversed after the program’s initiation. By reinvesting auction revenues in programs to increase energy conservation, efficiency, and distributed generation in disadvantaged communities, the existing programs offset or eliminate adverse price impacts.","PeriodicalId":210701,"journal":{"name":"Decision-Making in Public Policy & the Social Good eJournal","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124818519","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Tradable performance standards are widely used sectoral regulatory policies. Examples include the US lead phasedown, fuel economy standards for automobiles, renewable portfolio standards, low carbon fuel standards, and—most recently—China’s new national carbon market. At the same time, theory and experience with traditional cap-and-trade programs suggests an important role for price limits in the form of floors, ceilings, and reserves. In this paper we develop a simple analytical model to derive the welfare comparison between tradable performance standards and a price-based alternative. This works out to be is a simple variant of the traditional Weitzman prices-versus-quantities result. We use this result to show that substantial gains could arise from shifting two programs, China’s new national carbon market (~60% gain) and the California Low Carbon Fuel Standard (~20% gain), to a price mechanism. This will generally be true when the coefficient of variation in the price under a TPS is larger than 50%. We end with a discussion of implementation issues, including full and partial consignment auctions based on actual and expected output.
{"title":"Price Limits in a Tradable Performance Standard","authors":"Banban Wang, W. Pizer, Clayton Munnings","doi":"10.3386/W28368","DOIUrl":"https://doi.org/10.3386/W28368","url":null,"abstract":"Tradable performance standards are widely used sectoral regulatory policies. Examples include the US lead phasedown, fuel economy standards for automobiles, renewable portfolio standards, low carbon fuel standards, and—most recently—China’s new national carbon market. At the same time, theory and experience with traditional cap-and-trade programs suggests an important role for price limits in the form of floors, ceilings, and reserves. In this paper we develop a simple analytical model to derive the welfare comparison between tradable performance standards and a price-based alternative. This works out to be is a simple variant of the traditional Weitzman prices-versus-quantities result. We use this result to show that substantial gains could arise from shifting two programs, China’s new national carbon market (~60% gain) and the California Low Carbon Fuel Standard (~20% gain), to a price mechanism. This will generally be true when the coefficient of variation in the price under a TPS is larger than 50%. We end with a discussion of implementation issues, including full and partial consignment auctions based on actual and expected output.","PeriodicalId":210701,"journal":{"name":"Decision-Making in Public Policy & the Social Good eJournal","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131792349","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In an influential book published in 2008, Thaler and Sunstein suggested a novel approach to policy making based on the notion of a ‘nudge.’ Roughly speaking, a nudge is defined as an aspect of the decisional context that steers people’s decisions by acting on their cognitive biases. The book generated an intense debate, over the course of which concerns were raised about: (1) the exact definition of nudges, (2) their ethical justifiability, and (3) their effectiveness. In this paper, we review the nudge literature by focusing on these three concerns.
{"title":"A Review of Nudges: Definitions, Justifications, Effectiveness","authors":"Luca Congiu, Ivan Moscati","doi":"10.2139/ssrn.3728512","DOIUrl":"https://doi.org/10.2139/ssrn.3728512","url":null,"abstract":"In an influential book published in 2008, Thaler and Sunstein suggested a novel approach to policy making based on the notion of a ‘nudge.’ Roughly speaking, a nudge is defined as an aspect of the decisional context that steers people’s decisions by acting on their cognitive biases. The book generated an intense debate, over the course of which concerns were raised about: (1) the exact definition of nudges, (2) their ethical justifiability, and (3) their effectiveness. In this paper, we review the nudge literature by focusing on these three concerns.","PeriodicalId":210701,"journal":{"name":"Decision-Making in Public Policy & the Social Good eJournal","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121477606","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
On many Native American reservations, lack of energy access reduces economic, health, and educational opportunities. The U.S. Energy Information Administration (EIA) reported in 2000 that 14% of households on Native American reservations had no access to electricity, compared to 1.4% nationally. Neither the EIA, nor the U.S. Census Bureau have published reliable updates on the status of the Native American Reservation electricity gap. While several projects led by Native American tribes have narrowed the Native American reservation electricity gap, thousands of households and institutions serving tribal members in the United States remain without electric grid access in 2020. The electric grid’s absence fuels lack of access to infrastructure interconnected with electricity including water, water treatment, telephone, and Internet facilities and services. Enabling electricity access will improve fire safety, water and wastewater access and treatment, telecommunications access, health, educational, economic, and civic opportunity.
This article proposes six principles to advance energy justice for Native Americans:
Principle 1: Respect Tribal Sovereignty;
Principle 2: Energy Access is Foundational to Energy Justice; Principle
3: Foster Tribal Energy Ownership and Clean Energy Opportunities; Principle
4: Support Native American Energy Contracting, Employment, and Entrepreneurial Opportunities; Principle
5: Promote Access to Energy Efficiency and Energy Affordability Programs; Principle
6: Assess and Address the Impact of Climate Change on Native American Reservations, Tribal Lands, and Native American Tribal Members. This article concludes that fostering energy justice for Native Americans will improve prospects for all Americans, advance our economy, protect the environment, and promote equity.
{"title":"Principles to Advance Energy Justice for Native Americans","authors":"C. Sandoval","doi":"10.2139/ssrn.3770406","DOIUrl":"https://doi.org/10.2139/ssrn.3770406","url":null,"abstract":"On many Native American reservations, lack of energy access reduces economic, health, and educational opportunities. The U.S. Energy Information Administration (EIA) reported in 2000 that 14% of households on Native American reservations had no access to electricity, compared to 1.4% nationally. Neither the EIA, nor the U.S. Census Bureau have published reliable updates on the status of the Native American Reservation electricity gap. While several projects led by Native American tribes have narrowed the Native American reservation electricity gap, thousands of households and institutions serving tribal members in the United States remain without electric grid access in 2020. The electric grid’s absence fuels lack of access to infrastructure interconnected with electricity including water, water treatment, telephone, and Internet facilities and services. Enabling electricity access will improve fire safety, water and wastewater access and treatment, telecommunications access, health, educational, economic, and civic opportunity.<br><br>This article proposes six principles to advance energy justice for Native Americans: <br><br>Principle 1: Respect Tribal Sovereignty; <br><br>Principle 2: Energy Access is Foundational to Energy <br>Justice; Principle <br><br>3: Foster Tribal Energy Ownership and Clean Energy Opportunities; Principle <br><br>4: Support Native American Energy Contracting, Employment, and Entrepreneurial Opportunities; Principle <br><br>5: Promote Access to Energy Efficiency and Energy Affordability Programs; Principle <br><br>6: Assess and Address the Impact of Climate Change on Native American Reservations, Tribal Lands, and Native American Tribal Members. This article concludes that fostering energy justice for Native Americans will improve prospects for all Americans, advance our economy, protect the environment, and promote equity.","PeriodicalId":210701,"journal":{"name":"Decision-Making in Public Policy & the Social Good eJournal","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122053839","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We investigate the causal connections between elite polarization, hyperbole in public discourse and narrative control. The victor of a narrative battle gains a strategic advantage in hyperbole, steering a contentious policy in its preferred direction. This gain, weighed against the information loss from hyperbole, determines the equilibrium narrative. Platform polarizations, which relate to elites’ messages, are induced by, and amplify, preference polarizations, which relate to their political orientations. IS polarizations, in which two opposing factions move further apart, intensify the narrative battle and decrease social welfare. These effects are reversed for IB polarizations, in which each faction becomes more homogeneous.
{"title":"Polarization, Hyperbole and the Battle for Control over the Narrative","authors":"G. Rausser, Leo Simon, Jinhuan Zhao","doi":"10.2139/ssrn.3683160","DOIUrl":"https://doi.org/10.2139/ssrn.3683160","url":null,"abstract":"We investigate the causal connections between elite polarization, hyperbole in public discourse and narrative control. The victor of a narrative battle gains a strategic advantage in hyperbole, steering a contentious policy in its preferred direction. This gain, weighed against the information loss from hyperbole, determines the equilibrium narrative. Platform polarizations, which relate to elites’ messages, are induced by, and amplify, preference polarizations, which relate to their political orientations. IS polarizations, in which two opposing factions move further apart, intensify the narrative battle and decrease social welfare. These effects are reversed for IB polarizations, in which each faction becomes more homogeneous.","PeriodicalId":210701,"journal":{"name":"Decision-Making in Public Policy & the Social Good eJournal","volume":"66 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124337651","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article argues that the law of consumer contracts should permit adults to access the same protections available to children where data about adult performance indicates that the two categories of people are similarly situated in the domain of consumer contracts. In making this claim, this article relies upon a description of capacity articulated by Professor Martha Nussbaum in her important work on the subject. Professor Nussbaum explains that capacity is a function, not only of a person’s innate capabilities, but of a person’s opportunity or ability to deploy those capabilities within environmental limitations. Capacity to contract in a free society has demanded sufficient internal self-control to direct action and make decisions we would expect of a free person vested with a set of important personal rights. Nussbaum’s standard raises the possibility that even people with substantial internal capabilities may not have capacity if the environment in which they are seeking to express their capacities negates them. This article argues that the law of consumer contracts is one such domain. It therefore argues that this domain should reassign risks between consumers and sellers in the consumer contracting market, where data about adult decision-making in the domain suggests that adults do not have the power to protect their contract rights through bargaining by applying reasoned decision-making. It does so as a means of saving the very institution of contract law itself, which is a central mechanism for securing freedom of choice for Americans.
{"title":"Pervasive Infancy: Reassessing the Contract Capacity of Adults in Modern America","authors":"M. Lewis","doi":"10.2139/ssrn.3526991","DOIUrl":"https://doi.org/10.2139/ssrn.3526991","url":null,"abstract":"This article argues that the law of consumer contracts should permit adults to access the same protections available to children where data about adult performance indicates that the two categories of people are similarly situated in the domain of consumer contracts. In making this claim, this article relies upon a description of capacity articulated by Professor Martha Nussbaum in her important work on the subject. Professor Nussbaum explains that capacity is a function, not only of a person’s innate capabilities, but of a person’s opportunity or ability to deploy those capabilities within environmental limitations. Capacity to contract in a free society has demanded sufficient internal self-control to direct action and make decisions we would expect of a free person vested with a set of important personal rights. Nussbaum’s standard raises the possibility that even people with substantial internal capabilities may not have capacity if the environment in which they are seeking to express their capacities negates them. This article argues that the law of consumer contracts is one such domain. It therefore argues that this domain should reassign risks between consumers and sellers in the consumer contracting market, where data about adult decision-making in the domain suggests that adults do not have the power to protect their contract rights through bargaining by applying reasoned decision-making. It does so as a means of saving the very institution of contract law itself, which is a central mechanism for securing freedom of choice for Americans.","PeriodicalId":210701,"journal":{"name":"Decision-Making in Public Policy & the Social Good eJournal","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121446269","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We consider the extent to which a government regulator can harness information about a proposed rule from observing the stock price movements of the affected firms—information the regulator may in turn use to deliberate whether to adopt the rule. The rule comes with an uninformed ex ante (expected) value, which can be positive or negative. We find that if the rule’s ex ante value is positive and the regulator fully relies on the aggregate market reaction to guide its decision, then with many firms in the market, prices will exhibit maximal informativeness. When the ex ante value is negative, however, the regulator’s reliance on the market will dampen speculators’ incentives to gather information, and prices will become completely uninformative. This latter effect, however, can be mitigated if the regulator’s reliance is only partial. We also consider the presence of stakeholders who may be motivated to manipulate the market to steer the regulator toward privately beneficial outcomes. We find that with many firms in the market, such stakeholders’ incentives to manipulate will dissipate. The theoretical findings of this article suggest the potential benefits of a stock-market-based rulemaking mechanism in the absence of other forms of reliable empirical evidence.
{"title":"A Model of Stock-Market-Based Rulemaking","authors":"Yoon-Ho Alex Lee","doi":"10.2139/ssrn.3440321","DOIUrl":"https://doi.org/10.2139/ssrn.3440321","url":null,"abstract":"\u0000 We consider the extent to which a government regulator can harness information about a proposed rule from observing the stock price movements of the affected firms—information the regulator may in turn use to deliberate whether to adopt the rule. The rule comes with an uninformed ex ante (expected) value, which can be positive or negative. We find that if the rule’s ex ante value is positive and the regulator fully relies on the aggregate market reaction to guide its decision, then with many firms in the market, prices will exhibit maximal informativeness. When the ex ante value is negative, however, the regulator’s reliance on the market will dampen speculators’ incentives to gather information, and prices will become completely uninformative. This latter effect, however, can be mitigated if the regulator’s reliance is only partial. We also consider the presence of stakeholders who may be motivated to manipulate the market to steer the regulator toward privately beneficial outcomes. We find that with many firms in the market, such stakeholders’ incentives to manipulate will dissipate. The theoretical findings of this article suggest the potential benefits of a stock-market-based rulemaking mechanism in the absence of other forms of reliable empirical evidence.","PeriodicalId":210701,"journal":{"name":"Decision-Making in Public Policy & the Social Good eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130986319","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The success story continues making Nudge well read and much applied. The key message is that people are irrational on their decision making and need to be guided by policy markers, which are able to have useful insights from Psychology and Behavioral Economics about how to elaborate choice structures to rationalize people’s financial behavior. Inertia is one popular of these insights and refers to the tendency of humans to procrastinate in making choices. This tendency is acknowledged but not understood and explained. The same occurs with other reported insights. In contrast, the present paper proposes any decision guaranteeing the individual biological; psychological and social homeostasis are rational despite being or not the expected decision supported by any formal model. Most of the important human decisions are about keeping homeostasis within boundaries promoting well being, hence resulting from complex analyses of benefits; risks and costs from both the personal and social point of view as carried out by two different Personal and Social Decision Networks. Rational choice selects, therefore, high beneficial goods or services for promoting homeostasis at lowest risk and cost from both personal and social point of views. A decision neural model for decision making is presented and used to illustrate how rational choices are computed to guarantee individual homeostasis, and to propose that individuals seem to be irrational because the proposed economic formal theories take into consideration just the policy maker point of view disregarding the individual needs.
{"title":"Some Commentaries From the Neurosciences Point of View About the Relations Between Citizens and Public Agencies","authors":"A. D. da Rocha","doi":"10.2139/ssrn.3577598","DOIUrl":"https://doi.org/10.2139/ssrn.3577598","url":null,"abstract":"The success story continues making Nudge well read and much applied. The key message is that people are irrational on their decision making and need to be guided by policy markers, which are able to have useful insights from Psychology and Behavioral Economics about how to elaborate choice structures to rationalize people’s financial behavior. Inertia is one popular of these insights and refers to the tendency of humans to procrastinate in making choices. This tendency is acknowledged but not understood and explained. The same occurs with other reported insights. In contrast, the present paper proposes any decision guaranteeing the individual biological; psychological and social homeostasis are rational despite being or not the expected decision supported by any formal model. Most of the important human decisions are about keeping homeostasis within boundaries promoting well being, hence resulting from complex analyses of benefits; risks and costs from both the personal and social point of view as carried out by two different Personal and Social Decision Networks. Rational choice selects, therefore, high beneficial goods or services for promoting homeostasis at lowest risk and cost from both personal and social point of views. A decision neural model for decision making is presented and used to illustrate how rational choices are computed to guarantee individual homeostasis, and to propose that individuals seem to be irrational because the proposed economic formal theories take into consideration just the policy maker point of view disregarding the individual needs.","PeriodicalId":210701,"journal":{"name":"Decision-Making in Public Policy & the Social Good eJournal","volume":"180 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120885674","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines firms’ adaptation to long-term changes in climatic conditions. Using detailed information on establishments owned by U.S. public firms, we show that higher abnormal temperatures over the previous five years in a county lead to a significant reduction in local employment and the number of establishments. The decline in employment and establishments is larger for firms in non-tradable and consumer-oriented sectors, suggesting that firms’ adaptation is largely due to a decline in local consumer demand. Additional tests show that prolonged high temperatures lead to lower consumption, higher unemployment rate, lower wage, and more out-migration across regions.
{"title":"Do Firms Adapt to Rising Temperatures? Evidence from Establishment-Level Data","authors":"Zuben Jin, F. Li, Yupeng Lin, Zilong Zhang","doi":"10.2139/ssrn.3573260","DOIUrl":"https://doi.org/10.2139/ssrn.3573260","url":null,"abstract":"This paper examines firms’ adaptation to long-term changes in climatic conditions. Using detailed information on establishments owned by U.S. public firms, we show that higher abnormal temperatures over the previous five years in a county lead to a significant reduction in local employment and the number of establishments. The decline in employment and establishments is larger for firms in non-tradable and consumer-oriented sectors, suggesting that firms’ adaptation is largely due to a decline in local consumer demand. Additional tests show that prolonged high temperatures lead to lower consumption, higher unemployment rate, lower wage, and more out-migration across regions.","PeriodicalId":210701,"journal":{"name":"Decision-Making in Public Policy & the Social Good eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125797559","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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