nep-res New Economics Papers
on Resource Economics
Issue of 2016‒08‒07
three papers chosen by
Maximo Rossi
Universidad de la República

  1. Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry By Aghion, Philippe; Dechezleprêtre, Antoine; Hemous, David; Martin, Ralf; Van Reenen, John
  2. The integrated economic and environmental footprint of the EU: domestic and global effects of a transition to services By Giovanni Marin; Roberto Zoboli
  3. The Preservation of Historic Districts - Is it Worth it? By Sevrin Waights

  1. By: Aghion, Philippe; Dechezleprêtre, Antoine; Hemous, David; Martin, Ralf; Van Reenen, John
    Abstract: Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between "dirty" (internal combustion engine) and "clean" (e.g. electric and hybrid) patents across 80 countries over several decades. We show that firms tend to innovate relatively more in clean technologies when they face higher tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers and from the firm's own innovation history. Using our model we simulate the increases in carbon taxes needed to allow clean to overtake dirty technologies.
    Date: 2016
  2. By: Giovanni Marin (IRCrES-CNR, Milano, Italy); Roberto Zoboli (DISEIS, Catholic University of Milano, Italy)
    Abstract: The structural change of the economy towards an increasing share of services is seen in environmental economics as a fundamental driver of ‘decoupling’ between economic growth and environmental pressures. The environmental and socio-economic consequence of structural change, however, can be less straightforward when economic interdependencies are considered. In this paper we evaluate the implications of structural change towards services in the EU in terms of environmental pressures (aggregate and by sector, direct and indirect). The changing patterns in environmental pressures are analyses vis à vis the corresponding changes in the distribution of employment and value added. For carrying out this integrated assessment we use Environmentally Extended Multi Regional Input Output modelling applied to data from the World Input Output Database (WIOD). The results suggest that the service sectors is characterized by a lower emission intensity than the industrial sectors, when looking at direct emissions (‘production perspective’) but this gap is much smaller when considering also indirect emissions in a ‘vertically integrated’ approach (‘consumption perspective’). Moreover, changes in the production structure of the EU economy in absence of relevant changes in the composition of the final demand induce an increased reliance on environmental pressures, employment and value added generated abroad. The integrated assessment of these ‘global footprints’ suggests that the EU is transferring worldwide more emissions that value added and employment. This form of ‘unequal exchange’ can be relevant for development and environmental policies, in particular those on global climate change.
    Keywords: EE-MRIO; structural change; carbon leakage; production and consumption perspective; international trade
    JEL: C67 F18 Q52 Q55 Q56
    Date: 2016–08
  3. By: Sevrin Waights
    Abstract: I investigate the welfare effect of conservation areas that preserve historic districts by regulating development. Such regulation may improve quality of life but does so by reducing housing productivity - the efficiency with which inputs (land and non-land) are converted into housing services. Using a unique panel dataset for English cities and an instrumental variable approach, I find that cities with more conservation areas have higher house prices for given land values and building costs (lower housing productivity) and higher house prices for given wages (higher quality of life). The overall welfare impact is found to be negative.
    Keywords: housing, planning, regulation, historic preservation, construction, land
    JEL: H89 L51 L74 D62 R21 R31 R38 R52 R58
    Date: 2016–07

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