Among his many achievements, Daniel Kahneman will be remembered for his fundamental contribution to the economics of fairness with its many far-reaching applications. In this paper, I focus on intergenerational fairness and its importance in tackling climate change, a high-stakes example of an intergenerational dilemma. Drawing on recent technological advances, I explore how...
This study examines the relationship between single-person households and greenhouse gas (GHG) emissions in South Korea, with a particular focus on emissions originating from the residential sector, categorized by electricity, gas, and heating usage. Utilizing municipal-level panel data from 2015 to 2022, we apply a two-way fixed-effects instrumental variable estimation to...
This paper explores road construction’s unintended consequences on health. Drawing evidence from a large-scale road development program in Ethiopia, we investigate the impact of road construction on infant mortality. Along major routes, we find that an additional road increases the probability of infant mortality by 3 percentage points. The empirical evidence suggests that waste...
This paper studies the coalitional great fish war model in a setting with βδ-preferences (or quasi-hyperbolic discounting). We derive the equilibrium strategies and payoffs in this coalition game under non-cooperation, full cooperation, and partial cooperation, under simultaneous moves and with first-mover advantage for the coalition. We focus on the effects of the short-run...
We examine the optimal behavior of carbon-emitting companies operating under the European Union Emission Trading System (EU ETS), under which firms are obliged to purchase emission permits on the secondary market if their emissions exceed their allowance. Specifically, we consider the scenario where firms are endowed with the (real) option to undertake a “green” investment to cut...
We use a choice experiment to investigate the support for climate leadership among representative panels of citizens in seven European countries. We find that people tend to be conditional cooperators and are more positive about their country being a climate leader if assured that other countries will follow suit. At realistic cost levels, a majority oppose their country taking...
Conservation policies are critical for sustainable management of natural resources. Ray et al. (2023) argues that rigidities in labor markets dampens the impact of conservation policies, in terms of changes in employment and production while also ignoring endogenous change in wages. In this paper, we find that the interaction between conservation policies and labor markets are...
Climate disasters, exacerbated by climate change, are becoming more frequent and severe, leading to significant socioeconomic and food system implications. Using econometrics and a dynamic general equilibrium model, this study examines the economic impact of climate disasters in Nigeria and evaluates the effect of mitigation strategies. The results show that the direct effects of...
Harmful algal blooms (HABs) impose a wide range of costs on surrounding communities. While the effects of HABs on real estate transactions are well studied, less is understood about whether homeowners make alterations to their homes in response to worsening water quality conditions. Using discrete-time duration analysis, 8 years’ worth of satellite imagery, and residential...
Feedback interventions are a promising tool for promoting household energy conservation and addressing climate change. This study examines whether their effectiveness improves with incentivized energy saving goals through a field experiment involving 422 Singaporean households over eight months. All treatment groups received tailored feedback reports, energy saving goals, and...
Daniel Kahneman’s pioneering research in behavioral economics has profoundly influenced the field of environmental economics, shaping what is now known as behavioral-environmental economics. This paper provides a scoping review of how Kahneman’s theories have been applied by environmental economists to individual decision-making for climate change risks. We focus on deviations...
Green preferences are often seen as crucial for mitigating climate change. Yet, it remains unclear whether they alone can drive the shift toward a low-carbon economy and what the distributional consequences might be. This paper studies the macroeconomic, environmental, and distributional effects of green preferences among consumers and producers using the agent-based integrated...
Flood risk is a highly pervasive and costly natural hazard globally. With significant increases in flood risk expected over coming decades, future exposure to flood risk and associated costs will depend heavily on how private consumption decisions respond to new information about risk. We exploit a one-off national information treatment in the form of the release in 2011, for the...
In many Nordic countries, climate-induced encroachment of the native and allelopathic Empetrum nigrum (crowberry) on other palatable vegetation decreases pasture quality for the culturally important reindeer herds. Unfortunately, current pasture management plans do not include pasture quality indicators. To argue for the importance of pasture quality and provide adaptation...
In this paper, we empirically investigate how environmental protection expenditures affect sector-level employment within manufacturing industries, using detailed firm-level data for Sweden for the years 2002–2021. We use a structural model that allows for a decomposition of the total employment effect of environmental protection expenditures within a sector into a cost effect, a...
We examine how the adverse impacts of weather shocks are distributed through the trade network. Exploiting a rich, theoretically derived, fixed effects structure, we find significant negative short-run effects of high temperature on exports. A month with an average temperature above 30 $$^{\circ }\hbox {C}$$ implies export losses of around three percent. These effects are...
A great deal of work in behavioral science emphasizes that statistical predictions often outperform clinical predictions. Formulas tend to do better than people do, and algorithms tend to outperform human beings, including experts. One reason is that algorithms do not show inconsistency or “noise”; another reason is that they are often free from cognitive biases. These points...
This paper analyses the joint evolution of production, environment, and population in the long run. The paper demonstrates that the link between output, resources, and population creates obstacles to sustained growth. This is because the law of conservation of mass implies that long-run growth of output would depend on increasing resource use. The amount of resources used in...
This paper provides a review of the main empirical challenges involved in quantitatively estimating the impact of extreme climate events on household welfare at the micro-level. To this end, it first outlines a conceptual framework of extreme climate event damage modeling that can aid in terms of considering the ideal input and damage function requirements to create appropriate...
Addressing climate change challenges through managing and mitigating CO2 emissions has taken center stage in shaping economic policies. This paper analyzes the intricate interplay among economic policies, their uncertainty, political dynamics, and CO2 emissions by utilizing the U.S. data from 1973 to 2024. Our empirical results derived from the autoregressive distributed lag...
This paper analyzes international environmental agreements in three-stage games consisting of a membership subgame, the signatories’ decision on the intensity of cooperation, and an emissions subgame. Signatories may act as Stackelberg leaders or play Nash. In the Stackelberg game, the highest intensity of cooperation between signatories is optimal. In the Nash game, a moderate...
Accounting for green and blue water resources, this study determines the optimal allocation of water between economic sectors under varying drought circumstances, applying non-linear optimization in a multi-regional input-output modeling framework. The results are compared to the regulated reallocation of water under existing regional drought warning and emergency plans. The...
Typical problems of negative effects of CO $$_{2}$$ emissions are that (i) they are suffered and generated not by the same agent and that (ii) individuals consider them as too small to influence the aggregated effect. Additionally, only little is known about how the behavior depends on the age-composition of a population and individual age-dependent life-cycle effects. We address...
Reverse auctions are often recognized as a tool that can cost-effectively allocate agri-environmental program funds to support environmentally-beneficial land management practices. However, transaction costs can limit participation in auctions which limits their cost-effectiveness. We use a laboratory experiment to examine how various levels of transaction costs influence...