nep-res New Economics Papers
on Resource Economics
Issue of 2018‒01‒08
three papers chosen by
Maximo Rossi
Universidad de la República

  1. International Transmission of the Business Cycle and Environmental Policy By Barbara Annicchiarico; Francesca Diluiso
  2. Temperature Effects on Productivity and Factor Reallocation: Evidence from a Half Million Chinese Manufacturing Plants By Zhang, Peng; Deschenes, Olivier; Meng, Kyle C.; Zhang, Junjie
  3. From Cashews to Nudges: The Evolution of Behavioral Economics By Thaler, Richard H.

  1. By: Barbara Annicchiarico (CEIS & DEF, University of Rome "Tor Vergata"); Francesca Diluiso (DEF, University of Rome "Tor Vergata")
    Abstract: This paper presents a baseline dynamic general-equilibrium model of environmental policy for a two-country economy and studies the international transmission of several asymmetric shocks considering three different economy-wide greenhouse gases (GHG) emission regulations: (i) national cap-and-trade, (ii) carbon tax, and (iii) international cap-and-trade system allowing for cross-border allocation of emission permits. We find that international spillovers of shocks originated in one country are strongly influenced by the environmental regime put in place. We show that, while a national cap-and-trade system diminishes the international spillovers by dampening the response of the country hit by shocks, the cross-border reaction to supply-side shocks is found to be magnified under an international cap-and-trade system, while demand shocks are more intensively transmitted under a carbon tax. The pattern of trade and the underlying monetary regime in uence the cross-border transmission channels interacting with the environmental policy adopted.
    Keywords: Open Economy Macroeconomics, GHG Emission Control, Macroeconomic Dynamics
    JEL: F41 F42 E32 Q58
    Date: 2017–12–19
  2. By: Zhang, Peng (Hong Kong Polytechnic University); Deschenes, Olivier (University of California, Santa Barbara); Meng, Kyle C. (University of California, Santa Barbara); Zhang, Junjie (Duke Kunshan University)
    Abstract: This paper uses detailed production data from a half million Chinese manufacturing plants over 1998-2007 to estimate the effects of temperature on firm-level total factor productivity (TFP), factor inputs, and output. We detect an inverted U- shaped relationship between temperature and TFP and show that it primarily drives the temperature-output effect. Both labor- and capital- intensive firms exhibit sensitivity to high temperatures. By mid 21st century, if no additional adaptation were to occur, we project that climate change will reduce Chinese manufacturing output annually by 12%, equivalent to a loss of $39.5 billion in 2007 dollars. This implies substantial local and global economic consequences as the Chinese manufacturing sector produces 32% of national GDP and supplies 12% of global exports.
    Keywords: manufacturing, productivity, climate change, China
    JEL: Q54 Q56 L60 O14 O44
    Date: 2017–11
  3. By: Thaler, Richard H. (University of Chicago)
    Abstract: Richard H. Thaler delivered his Prize Lecture on 8 December 20167 at the Aula Magna, Stockholm University.
    Keywords: Behavioral economics;
    JEL: D03 D90 G02
    Date: 2017–12–08

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