Anna Garashchuk, Fernando Isla‐Castillo, Pablo Podadera‐Rivera
Remote rural and postindustrial regions are much more vulnerable to population drain in comparison with industrialized centers and capitals, due to obvious reasons such as meager job opportunities, difficulties in accessing public services in education, healthcare and transport, housing, entertainment, lack of integration with other territories and, finally, less advanced levels of digitalization. This represents an open challenge for the European Union within the framework of its Cohesion Policy. This paper analyzes the impact of digital trends, represented by the percentage of the population with access to internet and broadband and the percentage of individuals who buy goods and internet services (percentages provided by Eurostat) in less populated EU NUTS2 regions with lower income, on the crude population growth rate composed of natural changes in population and migratory flows and on the unemployment rate by applying panel data analysis. It has been possible to confirm that digitalization has a positive impact on natural changes in population in EU regions with lower economic development. On the contrary, the unemployment rate does not affect natural changes in population, but it does have a negative impact on migratory flows. The findings show that digitalization may contribute to reversing negative demographic trends in more disadvantaged EU regions in terms of income and population density.
{"title":"The empirical evidence of digital trends in more disadvantaged European Union regions in terms of income and population density","authors":"Anna Garashchuk, Fernando Isla‐Castillo, Pablo Podadera‐Rivera","doi":"10.1111/jors.12729","DOIUrl":"https://doi.org/10.1111/jors.12729","url":null,"abstract":"Remote rural and postindustrial regions are much more vulnerable to population drain in comparison with industrialized centers and capitals, due to obvious reasons such as meager job opportunities, difficulties in accessing public services in education, healthcare and transport, housing, entertainment, lack of integration with other territories and, finally, less advanced levels of digitalization. This represents an open challenge for the European Union within the framework of its Cohesion Policy. This paper analyzes the impact of digital trends, represented by the percentage of the population with access to internet and broadband and the percentage of individuals who buy goods and internet services (percentages provided by Eurostat) in less populated EU NUTS2 regions with lower income, on the crude population growth rate composed of natural changes in population and migratory flows and on the unemployment rate by applying panel data analysis. It has been possible to confirm that digitalization has a positive impact on natural changes in population in EU regions with lower economic development. On the contrary, the unemployment rate does not affect natural changes in population, but it does have a negative impact on migratory flows. The findings show that digitalization may contribute to reversing negative demographic trends in more disadvantaged EU regions in terms of income and population density.","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2024-09-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142203890","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}
We investigate intergenerational income mobility across labor market regions in Norway, looking at gender differences in response to industrial diversity. Our identification strategy exploits variation in the timing of regional migration, measured over the age spans 6−19 and 13−19 years. We make extensive use of fixed effects so that each region only affects adult outcomes, measured as income rank, through differences in exposure time. Our results reveal significantly larger exposure effects among daughters than among sons. The difference is particularly large when we contrast sons to fathers and daughters to mothers, but it is also apparent when we place sons and daughters, respectively, fathers and mothers, in the same distribution. We further find that industrial diversity, and thus the range of job opportunities, matters most during the teenage years. The patterns are, to some extent, detectible on maps, for example, with better mobility opportunities for men in coastal regions based on maritime and/or marine specialization. We conclude with assessments, a recommendation for regional policy, and some international considerations.
{"title":"The geography of intergenerational mobility in Norway: Labor market diversity, career opportunities, and gender","authors":"Lena Magnusson Turner, Terje Wessel","doi":"10.1111/jors.12731","DOIUrl":"https://doi.org/10.1111/jors.12731","url":null,"abstract":"We investigate intergenerational income mobility across labor market regions in Norway, looking at gender differences in response to industrial diversity. Our identification strategy exploits variation in the timing of regional migration, measured over the age spans 6−19 and 13−19 years. We make extensive use of fixed effects so that each region only affects adult outcomes, measured as income rank, through differences in exposure time. Our results reveal significantly larger exposure effects among daughters than among sons. The difference is particularly large when we contrast sons to fathers and daughters to mothers, but it is also apparent when we place sons and daughters, respectively, fathers and mothers, in the same distribution. We further find that industrial diversity, and thus the range of job opportunities, matters most during the teenage years. The patterns are, to some extent, detectible on maps, for example, with better mobility opportunities for men in coastal regions based on maritime and/or marine specialization. We conclude with assessments, a recommendation for regional policy, and some international considerations.","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2024-08-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142203891","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}
<p>Climate change is increasing the frequency and intensity of natural disasters, putting tens of millions of real estate properties at significant physical and financial risk. A recent climate change assessment by the Biden administration estimates that extreme weather events cost the United States approximately $150 billion in direct damages annually (USGCRP, <span>2023</span>).1 In addition to imposing a substantial welfare cost on property owners, mounting risks could threaten the stability of the property market, financial sector, and macroeconomy itself. At the same time, the real estate and building sector consumes around one-third of the world's energy annually and is responsible for a similar share of greenhouse gas (GHG) emissions. Given its volume, reducing emissions from the sector is central to achieving the pledged net-zero goals of nations.</p><p>Real estate investors are increasingly putting sustainability at the center of their decision-making processes, given the close association between climate risk and real estate assets, both of which are location-based. In the meantime, more stringent building decarbonization regulations are putting pressure on real estate owners and investors, who must invest heavily to retrofit their buildings or pay “carbon penalties” and see their assets lose value. In recognition of the real estate sector's vulnerability and its contribution to climate change, the MIT Inaugural Climate and Real Estate Symposium was held on the MIT campus on December 4 and 5, 2022. Sponsored by the MIT Center for Real Estate, the conference brought together some of the leading experts on the interface of real estate markets and their reaction and adaptation to climate change. Academic, policy, and industry experts convened to listen to and discuss the leading research in this area.</p><p>The <i>Journal of Regional Science</i> is pleased to publish this special issue, consisting of five papers from that conference. Edited by Juan Palacios of Maastricht University and MIT (assisted by Siqi Zheng and Ed Coulson), the papers have been vetted through the conference discussions as well as the journal's standard refereeing process. The contributors include some of the leading scholars in the area of sustainable real estate, and the papers represent a broad set of analyses on important issues in this field:</p><p>Le (<span>2024</span>) sheds light on the dynamics of residential markets following Hurricane Sandy, and factors explaining the price recovery. The estimates show that remodeling expenditures are responsible for the return of prices to pre-storm levels, rather than changes in risk perception. In addition, the author documents an increase in flood insurance take-up rates in affected areas outside of floodplains after the hurricane.</p><p>On the other hand, the increasing availability of green finance instruments offers a promising set of solutions to transform real estate into a more resilient and environmentally friend
{"title":"Climate change and real estate: An introduction to the special issue","authors":"Edward Coulson, Juan Palacios, Siqi Zheng","doi":"10.1111/jors.12728","DOIUrl":"https://doi.org/10.1111/jors.12728","url":null,"abstract":"<p>Climate change is increasing the frequency and intensity of natural disasters, putting tens of millions of real estate properties at significant physical and financial risk. A recent climate change assessment by the Biden administration estimates that extreme weather events cost the United States approximately $150 billion in direct damages annually (USGCRP, <span>2023</span>).1 In addition to imposing a substantial welfare cost on property owners, mounting risks could threaten the stability of the property market, financial sector, and macroeconomy itself. At the same time, the real estate and building sector consumes around one-third of the world's energy annually and is responsible for a similar share of greenhouse gas (GHG) emissions. Given its volume, reducing emissions from the sector is central to achieving the pledged net-zero goals of nations.</p><p>Real estate investors are increasingly putting sustainability at the center of their decision-making processes, given the close association between climate risk and real estate assets, both of which are location-based. In the meantime, more stringent building decarbonization regulations are putting pressure on real estate owners and investors, who must invest heavily to retrofit their buildings or pay “carbon penalties” and see their assets lose value. In recognition of the real estate sector's vulnerability and its contribution to climate change, the MIT Inaugural Climate and Real Estate Symposium was held on the MIT campus on December 4 and 5, 2022. Sponsored by the MIT Center for Real Estate, the conference brought together some of the leading experts on the interface of real estate markets and their reaction and adaptation to climate change. Academic, policy, and industry experts convened to listen to and discuss the leading research in this area.</p><p>The <i>Journal of Regional Science</i> is pleased to publish this special issue, consisting of five papers from that conference. Edited by Juan Palacios of Maastricht University and MIT (assisted by Siqi Zheng and Ed Coulson), the papers have been vetted through the conference discussions as well as the journal's standard refereeing process. The contributors include some of the leading scholars in the area of sustainable real estate, and the papers represent a broad set of analyses on important issues in this field:</p><p>Le (<span>2024</span>) sheds light on the dynamics of residential markets following Hurricane Sandy, and factors explaining the price recovery. The estimates show that remodeling expenditures are responsible for the return of prices to pre-storm levels, rather than changes in risk perception. In addition, the author documents an increase in flood insurance take-up rates in affected areas outside of floodplains after the hurricane.</p><p>On the other hand, the increasing availability of green finance instruments offers a promising set of solutions to transform real estate into a more resilient and environmentally friend","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":3.2,"publicationDate":"2024-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jors.12728","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142165759","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}
This study demonstrates that out‐of‐area (OOA) property transactions can serve as a proxy for migration. Using micro‐level transaction data, we document that about 35% of migrants make OOA property purchases. The goodness‐of‐fit between migration and OOA purchases is higher for aggregate migration measures and lower for migration flows between disaggregated areas. Furthermore, in most specifications, a one percent increase in OOA purchases is associated with an approximately one percent increase in migration. We characterize the monthly out‐migration from NYC zip codes to surrounding areas after the outbreak of the COVID‐19 pandemic to demonstrate the high temporal and spatial resolution of OOA transaction data.
{"title":"Out‐of‐area home purchase and U.S. internal migration","authors":"Minghao Li, Pengfei Liu, Chuan Tang","doi":"10.1111/jors.12730","DOIUrl":"https://doi.org/10.1111/jors.12730","url":null,"abstract":"This study demonstrates that out‐of‐area (OOA) property transactions can serve as a proxy for migration. Using micro‐level transaction data, we document that about 35% of migrants make OOA property purchases. The goodness‐of‐fit between migration and OOA purchases is higher for aggregate migration measures and lower for migration flows between disaggregated areas. Furthermore, in most specifications, a one percent increase in OOA purchases is associated with an approximately one percent increase in migration. We characterize the monthly out‐migration from NYC zip codes to surrounding areas after the outbreak of the COVID‐19 pandemic to demonstrate the high temporal and spatial resolution of OOA transaction data.","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2024-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142203893","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}
We estimate the effect of opioid use rates on local economic resilience through changes in industrial composition. We find regional opioid use rates adversely affect firm growth in general, with the greatest impact on small firms. Our results are robust to several identification strategies (Difference in Differences, Propensity Score Matching, and Instrumental Variables) and alternative empirical specifications. Our findings establish that local industrial composition and long‐term resilience are each adversely affected by the opioid public health crisis.
{"title":"We're not in dreamland anymore: The consequences of community opioid use on local industrial composition","authors":"W. Scott Langford, Maryann P. Feldman","doi":"10.1111/jors.12727","DOIUrl":"https://doi.org/10.1111/jors.12727","url":null,"abstract":"We estimate the effect of opioid use rates on local economic resilience through changes in industrial composition. We find regional opioid use rates adversely affect firm growth in general, with the greatest impact on small firms. Our results are robust to several identification strategies (Difference in Differences, Propensity Score Matching, and Instrumental Variables) and alternative empirical specifications. Our findings establish that local industrial composition and long‐term resilience are each adversely affected by the opioid public health crisis.","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142203892","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 aims to analyze the trends in income inequality in large cities within a selected sample of OECD countries. Specifically, we consider a set of individual characteristics that account for changes in the income distribution and estimate their contribution to differences in inequality in large cities over the last two decades. We use a combination of reweighting techniques and recentered influence functions (RIF) to detect an upward trend in inequality within large cities. This result is mainly driven by changes in the returns to endowments rather than by changes in its distribution. Our findings suggest that these results are not of the same magnitude across the countries analyzed. A key finding is that the contribution to inequality of the skill premium is considerably higher in North American countries than in European countries.
{"title":"What contributes to rising inequality in large cities?","authors":"Luis Ayala, Javier Martín‐Román, Juan Vicente","doi":"10.1111/jors.12725","DOIUrl":"https://doi.org/10.1111/jors.12725","url":null,"abstract":"This paper aims to analyze the trends in income inequality in large cities within a selected sample of OECD countries. Specifically, we consider a set of individual characteristics that account for changes in the income distribution and estimate their contribution to differences in inequality in large cities over the last two decades. We use a combination of reweighting techniques and recentered influence functions (RIF) to detect an upward trend in inequality within large cities. This result is mainly driven by changes in the returns to endowments rather than by changes in its distribution. Our findings suggest that these results are not of the same magnitude across the countries analyzed. A key finding is that the contribution to inequality of the skill premium is considerably higher in North American countries than in European countries.","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2024-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142203894","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}
Jaakko Simonen, Philip McCann, Santtu Karhinen, R. Svento
In this article, we analyze how industry‐ and region‐specific characteristics influence individual‐level decisions on mobility within and between regions during the life cycle of the industry. Using uniquely detailed panel‐type data from the Finnish high technology sector, our analysis demonstrates that the influence of different regional features varies for different types of job changes and labor mobility and also according to the industry life cycle. We find that the classic agglomeration‐type arguments regarding labor search and matching only really operate in the early growth stages of an industry life cycle. These patterns change throughout the various stages of the industry life cycle, although in quite different ways according to different factors, and understanding how these patterns change helps to provide a richer understanding of the labor market roles of agglomeration and clustering.
{"title":"The drivers of intra‐ and interregional labor mobility over the industry life cycle of the high‐tech sector","authors":"Jaakko Simonen, Philip McCann, Santtu Karhinen, R. Svento","doi":"10.1111/jors.12724","DOIUrl":"https://doi.org/10.1111/jors.12724","url":null,"abstract":"In this article, we analyze how industry‐ and region‐specific characteristics influence individual‐level decisions on mobility within and between regions during the life cycle of the industry. Using uniquely detailed panel‐type data from the Finnish high technology sector, our analysis demonstrates that the influence of different regional features varies for different types of job changes and labor mobility and also according to the industry life cycle. We find that the classic agglomeration‐type arguments regarding labor search and matching only really operate in the early growth stages of an industry life cycle. These patterns change throughout the various stages of the industry life cycle, although in quite different ways according to different factors, and understanding how these patterns change helps to provide a richer understanding of the labor market roles of agglomeration and clustering.","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":3.2,"publicationDate":"2024-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141928681","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 investigates the role of municipal and provincial public social spending for local income inequality after taxes and transfers in Austria. We utilize a spatial multi‐level model, which allows us to analyze the contribution of three spatial scales (municipal, district, and provincial level) to municipal income inequality. Our analysis shows that the effect of public social spending on local Gini indices does not only differ across provinces but also across municipalities which indicates that the potential cushioning effect of social expenditure is highly localized. Further splitting total public social expenditure into three distinct categories (education, health, social protection) reveals that spending on social protection has the highest effect on local inequality across all provinces, while health spending does not exert a discernible influence in any province. The method and results presented in this paper are of international interest for policymakers and researchers who aim to investigate whether the same patterns hold true in other countries.
{"title":"The role of public social expenditure for mitigating local income inequality: An investigation across spatial scales in Austria","authors":"Tatjana Neuhuber, Antonia E. Schneider","doi":"10.1111/jors.12722","DOIUrl":"https://doi.org/10.1111/jors.12722","url":null,"abstract":"This paper investigates the role of municipal and provincial public social spending for local income inequality after taxes and transfers in Austria. We utilize a spatial multi‐level model, which allows us to analyze the contribution of three spatial scales (municipal, district, and provincial level) to municipal income inequality. Our analysis shows that the effect of public social spending on local Gini indices does not only differ across provinces but also across municipalities which indicates that the potential cushioning effect of social expenditure is highly localized. Further splitting total public social expenditure into three distinct categories (education, health, social protection) reveals that spending on social protection has the highest effect on local inequality across all provinces, while health spending does not exert a discernible influence in any province. The method and results presented in this paper are of international interest for policymakers and researchers who aim to investigate whether the same patterns hold true in other countries.","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2024-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141770661","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}
Luiz Carlos De Santana Ribeiro, Fernanda Rodrigues Dos Santos, Fábio Rodrigues De Moura, Rosa Lívia Gonçalves Montenegro, Elton Eduardo Freitas
This paper investigates the influence of specialization, urbanization, and diversification externalities on the dynamics of tourism employment in Brazilian microregions. We use a dynamic panel data model for the 2006–2019 period. The location quotient, population density and the inverse of the Hirschman–Herfindahl index, proxies for specialization, urbanization, and diversification, respectively, positively affect tourism employment in the long run. Based on the estimated long‐run elasticities, the specialization externality produces the strongest influence on tourism employment after a permanent increase of one standard deviation.
{"title":"Determinants of tourist employment in Brazilian microregions: A dynamic panel data approach","authors":"Luiz Carlos De Santana Ribeiro, Fernanda Rodrigues Dos Santos, Fábio Rodrigues De Moura, Rosa Lívia Gonçalves Montenegro, Elton Eduardo Freitas","doi":"10.1111/jors.12723","DOIUrl":"https://doi.org/10.1111/jors.12723","url":null,"abstract":"This paper investigates the influence of specialization, urbanization, and diversification externalities on the dynamics of tourism employment in Brazilian microregions. We use a dynamic panel data model for the 2006–2019 period. The location quotient, population density and the inverse of the Hirschman–Herfindahl index, proxies for specialization, urbanization, and diversification, respectively, positively affect tourism employment in the long run. Based on the estimated long‐run elasticities, the specialization externality produces the strongest influence on tourism employment after a permanent increase of one standard deviation.","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2024-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141770660","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}
Hosein Joshaghani, Mohammad Morovati, Saeed Moshiri, Nima Rafizadeh
Fuel subsidies, intended to improve consumer affordability, can result in economic distortions through altered relative prices and negative environmental impacts. Furthermore, these subsidies can lead to unintended consequences, such as fuel smuggling, especially to neighboring countries where significant price differences exist. While previous research has extensively explored the economic dimensions of fuel subsidies, the potential interplay between fuel smuggling and its impact on regional income distribution remains understudied. This study investigates the effects of fuel smuggling, stemming from Iran's long history of significant fuel subsidies, on income distribution across all 30 provinces of the country. We employ a model to specify the demand for fuel smuggling, using fuel prices in neighboring countries and the distance to the nearest border as sources of identification. Subsequently, we estimate the monthly smuggling profit across regions and assess this profit's influence on regional income distribution. Our empirical analysis draws on monthly data on gasoline and diesel sales from 160 fuel distribution districts in Iran, spanning the period from 2005 to 2014. Our findings demonstrate specific cases of smuggling activities that account for an average of 25% of total fuel consumption and generate substantial income in economically disadvantaged border provinces. We discuss the socioeconomic implications of fuel subsidies, with a focus on smuggling activities.
{"title":"The effects of fuel subsidies on regional income distribution through smuggling","authors":"Hosein Joshaghani, Mohammad Morovati, Saeed Moshiri, Nima Rafizadeh","doi":"10.1111/jors.12720","DOIUrl":"https://doi.org/10.1111/jors.12720","url":null,"abstract":"Fuel subsidies, intended to improve consumer affordability, can result in economic distortions through altered relative prices and negative environmental impacts. Furthermore, these subsidies can lead to unintended consequences, such as fuel smuggling, especially to neighboring countries where significant price differences exist. While previous research has extensively explored the economic dimensions of fuel subsidies, the potential interplay between fuel smuggling and its impact on regional income distribution remains understudied. This study investigates the effects of fuel smuggling, stemming from Iran's long history of significant fuel subsidies, on income distribution across all 30 provinces of the country. We employ a model to specify the demand for fuel smuggling, using fuel prices in neighboring countries and the distance to the nearest border as sources of identification. Subsequently, we estimate the monthly smuggling profit across regions and assess this profit's influence on regional income distribution. Our empirical analysis draws on monthly data on gasoline and diesel sales from 160 fuel distribution districts in Iran, spanning the period from 2005 to 2014. Our findings demonstrate specific cases of smuggling activities that account for an average of 25% of total fuel consumption and generate substantial income in economically disadvantaged border provinces. We discuss the socioeconomic implications of fuel subsidies, with a focus on smuggling activities.","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2024-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141573124","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}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：