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on Economic Geography |
| By: | Philipp Grunau; Florian Hoffmann; Thomas Lemieux; Mirko Titze |
| Abstract: | We study the granular wage and employment effects of a German place-based policy using a research design that leverages EU-wide rules governing program parameters at the regional level. The program subsidizes investments to create jobs with a subsidy rate that varies across labor market regions. We use matched data on the universe of establishments and their employees, establishment-level panel data on program participation, and regional scores that generate spatial discontinuities in program eligibility and generosity. Spatial spillovers of the program linked to changing commuting patterns can be assessed using information on place of work and place of residence, a unique feature of the data. We find that the program helps establishments create jobs that disproportionately benefit younger and less-educated workers. Funded establishments increase their wages, but, unlike employment, wage gains do not persist in the long run. Employment effects estimated at the local level are slightly larger than establishment-level estimates, suggesting limited economic spillover effect. Spatial spillovers are large as over half of the employment increase comes from commuters. Using subsidy rates as an instrumental variable for actual subsidies indicates that it costs approximately EUR 25, 000 to create a new job in the economically disadvantaged areas targeted by the program. |
| JEL: | H71 J21 J31 J63 R12 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33785 |
| By: | Cantellow, Tom; Atkins, Ed (University of Bristol); Fox, Sean; Robinson, Caitlin |
| Abstract: | National net-zero policies have varied regional impacts on patterns of investment and employment. Here, we introduce a Net-Zero Resilience Index for UK regions drawing on theories and methods from complexity economics comprising measures of economic Complexity, Relatedness, and Reliance and population for all Local Authority Districts (LADs) in England, Scotland and Wales. Our results highlight 30 LADs at greatest risk of negative economic consequences from climate policies (broadly labelled as net-zero in UK policy). These are disproportionately in regions that suffered most from previous rounds of deindustrialisation. The anticipated geography of net-zero policy impacts highlights the need for proactive policies that span local authority boundaries, with devolved Mayoral Combined Authorities presented as an opportunity to do so. |
| Date: | 2025–05–30 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:vt8fh_v1 |
| By: | Frattini, Federico Fabio; Vona, Francesco; Bontadini, Filippo; Colantone, Italo |
| Abstract: | What are the job multipliers of the green industrialization? We tackle this question within EU regions over the period 2003-2017, building a novel measure of green manufacturing penetration that combines green production and regional employment data. We estimate local job multipliers of green penetration in a long-difference model, using a shift-share instrument that exploits plausibly exogenous changes in non-EU green innovation. We find that a 3-years change in green penetration per worker increases the employment-to-active population ratio by 0.11 pp. The effect is: persistent both in manufacturing and outside manufacturing; halved by agglomeration effects that increase the labour market tightness; stronger for workers with high and low-education; and present also in regions specialized in polluting industries. When focusing on large shocks in a staggered DiD design, we find ten times larger effects, particularly in earlier periods. |
| Keywords: | Climate Change, Environmental Economics and Policy, Industrial Organization, Labor and Human Capital |
| Date: | 2025–06–04 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:358792 |
| By: | Molica Francesco; Marques Anabela |
| Abstract: | This study examines the dual nature of green discontent, which manifests as dissatisfaction with insufficient climate action and opposition to policies perceived as overly restrictive or economically disruptive. The analysis focuses on the spatial dimensions of this phenomenon, assessing how socio-economic, climatic, and institutional factors influence public attitudes toward environmental policies. The study relies on Eurobarometer survey data and voting patterns at the NUTS2 level to capture regional variations in green discontent across Europe. The results reveal clear contrasts between urban areas exposed to climate risks, rural regions dependent on carbon-intensive industries, and economically stable territories. These findings emphasize the importance of adopting place-based approaches to design climate policies that are both equitable and effective. The paper concludes with recommendations on how to integrate territorial environmental justice into climate strategies to address regional vulnerabilities and strengthen public support for ecological transition. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:termod:202504 |
| By: | Bluhm, Richard; Dreher, Axel; Fuchs, Andreas; Parks, Bradley C.; Strange, Austin M.; Tierney, Michael J. |
| Abstract: | This paper studies the causal effect of transport infrastructure on the spatial distribution of economic activity within subnational regions across a large number of developing countries. To do so, we introduce a new global dataset of geolocated Chinese grant- and loan-financed development projects from 2000 to 2014 and combine it with measures of spatial concentration based on remotely sensed data. We find that Chinese financed transportation projects decentralize economic activity within regions, as measured by a spatial Gini coefficient, by 2.2 percentage points. The treatment effects are particularly strong in regions that are less developed, more urbanized, and located closer to cities. |
| Keywords: | Development finance, Transport costsInfrastructure, Foreign aid, Spatial concentration, China |
| JEL: | F35 R11 R12 P33 O18 O19 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:318203 |
| By: | Soukhov, Anastasia; Pereira, Rafael H. M.; Higgins, Christopher D.; Paez, Antonio |
| Abstract: | Transportation planning has long prioritized the efficiency of movement, or mobility. However, the concept of accessibility represents a more comprehensive evolution, shifting focus from mere movement to the potential to reach (i.e., spatially interact) with desired destinations. Despite growing recognition of accessibility-based planning approaches, the concept remains fragmented, with inconsistent definitions and unclear interpretations. This work's aim is to clarify and unify the concept of accessibility by connecting it into spatial interaction modeling. We demonstrate that widely used mobility and accessibility models, such as gravity-based accessibility and spatial interaction models, share common theoretical roots. From this foundation, this paper offers three contributions: (A) we introduce a family of accessibility measures within the principles of spatial interaction, and (B) formally define four members of the family, namely the 'unconstrained' measure (i.e., Hansen-type accessibility), the 'total constrained' measure (i.e., a constrained version of the Hansen-type accessibility), the 'singly constrained' measure (i.e., related to the popular two step floating catchment approach - 2SFCA), and the 'doubly constrained' measure representing realized interactions or 'access', effectively equal to the doubly constrained spatial interaction model; and (C) we demonstrate the interpretability advantages of the family, as these constrained accessibility measures yield values in units of the number of potential "opportunities for spatial interaction" or "population for spatial interaction" for each zone and zonal flow. The family of accessibility measures proposed here clarifies the concept of 'potential' in accessibility, demonstrates theoretical and formulaic linkages across popular accessibility and spatial interaction models, and reintroduces measurement units into accessibility measures. By doing so, we believe this family of measures can unlock a clearer, more interpretable, and cohesive foundation for accessibility analysis. |
| Date: | 2025–05–23 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:a9dxb_v1 |