The coast plays a significant recreational role in the nine countries around the Baltic Sea. More than 70% of the population of these countries visit the coast, representing some 80 million recreational visits annually. Understanding the values associated with coastal recreation, and the potential welfare changes resulting from improvements in the state of environmental and...
We use an incentive-compatible experimental online supermarket to test the role of commitment and badges in reducing the carbon footprint of grocery shopping. In the experiment, some participants had the opportunity to voluntarily commit to a low carbon footprint basket before their online grocery shopping; the commitment was forced upon other participants. We also study the...
This paper explores the willingness-to-pay for energy efficiency by exploiting variation across products and countries within the EU market for household appliances. Based on scanner data at product-level, I use the hedonic method to estimate implicit prices for energy efficiency and derive implicit discount rates. The paper argues that the implicit price will be underestimated...
The historical diffusion of the potato in the Old World serves as an example of the contribution of technological innovations to socio-economic growth and development (Nunn and Qian in Q J Econ 126(2):593–650, 2011). Climate-related diseases, on the other hand, might offset some of these benefits. Here we examine the long-term impact of malaria on the potato-driven growth of the...
Natural disasters are an important deterrent factor for tourism activities from both supply and demand perspectives. This paper studies the short-term effect of a volcano eruption on hotel demand, supply and hospitality labour in La Palma (Spain), an island economy that is highly dependent on the tourism sector. Based on a monthly panel dataset, we employ seemingly unrelated...
Transportation is one of the main contributors to greenhouse gas emissions. Climate regulations on transportation are often a mix of sector-specific regulations and economy-wide measures (such as emission pricing). In this paper we consider how different and partly overlapping climate regulations interact and what are the effects on economic welfare, abatement costs and emissions...
This study explores the relationship between air pollution and judicial rulings. Although environmental factors should not affect judicial decisions, realists contend that there is substantial room for external factors to transpire into sentencing and sway human reasoning. We hypothesize that air pollution is one of these factors. Using Poisson panel models and instrumental...
To achieve the conservation goals of national parks, involving locals in park operations provides a win/win approach for local development and wildlife management. However, while some bioeconomic studies examine the effectiveness of biodiversity conservation projects that employ locals, most ignore the direct involvement of local workers in national park operations. Moreover, the...
We analyze the impact of border adjustment policies on trade, pollution and welfare when firms, located in different countries, sell differentiated products in geographically-separated markets. Transportation of goods not only incurs a cost, but also generates emissions. We compare outcomes under competition and multimarket collusion. Cooperating governments can implement the...
The frequency of hot days in much of the world is increasing. What is the impact of high temperatures on productivity? Can technology-based adaptation mitigate such effects of climate change? We provide some answers to these questions by examining how high outdoor temperatures affect a high-technology, precision manufacturing setting. Exploiting individual-level data on the...
The limited microeconometric evidence on the efficacy of environmental Negotiated Agreements (NAs) is an obstacle to both their introduction and effective design. We help fill this gap by providing evidence on the impact of the second Climate Change Agreements (CCAs) on business electricity consumption and employment. The CCAs are NAs offering a reduction on the Climate Change...
We provide the first estimates of how pro-environmental consumers reduce their total carbon footprint using a carbon calculator that covers all financial transactions. We use data from Swedish users of a carbon calculator that includes weekly estimates of users’ consumption-based carbon-equivalent emissions based on detailed financial statements, official registers, and self...
A billion rural people live near tropical forests. Urban populations need them for water, energy and timber. Global society benefits from climate regulation and knowledge embodied in tropical biodiversity. Ecosystem service valuations can incentivise conservation, but determining costs and benefits across multiple stakeholders and interacting services is complex and rarely...
When a non-climate institution, policy, or regulation corrects a pre-existing market failure that would be exacerbated by climate change, it may also incidentally induce climate adaptation. This regulation-induced adaptation can have large positive welfare effects. We develop a tractable analytical framework of a corrective regulation where the market failure interacts with...
We apply a two-step data driven approach to determine the causal impact of the clean air zone (CAZ) policy on air quality in Birmingham, UK. Levels of NO2, NOx and PM2.5 before and after CAZ implementation were collected from automatic air quality monitoring sites both within and outside the CAZ. We apply a unique combination of two recent methods: (1) a random forest machine...
Understanding how personal experience of extreme weather events raises awareness and concern about climate change has important policy implications. It has repeatedly been argued that proximising climate change through extreme weather events holds a promising strategy to increase engagement with the issue and encourage climate change action. In this paper, we exploit geo...
Though the magnitude of fossil fuel subsidies eclipses carbon pricing revenues, policies and economic literature focus on carbon taxation. This paper aims to show that removing fossil fuel subsidies can reduce emissions as much as carbon taxation without making producers and consumers worse off. Using a dynamic intertemporal CGE model of Ireland, we compare removing eight Irish...
This paper develops a principal-agent model with adverse selection to analyse firms’ decisions between an existing carbon-intensive technology and a new low-carbon technology requiring an externally funded initial investment. We find that a Pigouvian emission tax alone may result in credit rationing and under-investment in low-carbon technologies. Combining the Pigouvian tax with...
We study green specialisation across EU countries and detailed 4-digit industrial sectors over the period of 1995–2015 by harmonizing product-level data (PRODCOM). We propose a new list of green goods that refines lists proposed by international organizations by excluding goods with double usage. Our analysis reveals important structural characteristics of green specialisation in...
Using granular data from the OECD from 2010 to 2018 that differentiate between adaptation and mitigation measures to address climate change, we employed a double-hurdle model to examine whether countries’ Paris Agreement commitments and governance capacity help attract international climate-change-related financial aid. We found that (1) countries received a short-term aid boost...
Plastic pollution causing the near-permanent contamination of the environment is a preeminent concern. The largest market sector for plastic resins is packaging, and the food industry plays a major role in producing plastic packaging waste. Therefore, the gradual switch of the food system towards pro-environmental packaging strategies is required to contain the plastic packaging...
If one region of the world switches its research effort from dirty to clean technologies, will other regions follow? To investigate this question, this paper builds a North–South model that combines insights from directed technological change and quality-ladder endogenous growth models with business-stealing innovations. While North represents the region with climate ambitions...
Wind power is a key for decarbonizing economies. Yet, wind turbines can produce negative environmental externalities. These include bird collisions and disamenities for residents. Setback distances for onshore wind turbines to settlements and bird nests are a common policy instrument to address these externalities. In this paper, we evaluate the cost-effectiveness of setback...