nep-res New Economics Papers
on Resource Economics
Issue of 2018‒02‒12
three papers chosen by
Maximo Rossi
Universidad de la República

  1. Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy By Eva Lyubich; Joseph S. Shapiro; Reed Walker
  2. Climate policy with tied hands optimal resource taxation under implementation lags By di Maria, C.; Smulders, Sjak; van der Werf, E.H.
  3. Temperature, Climate Change, and Mental Health: Evidence from the Spectrum of Mental Health Outcomes By Jamie Mullins; Corey White

  1. By: Eva Lyubich; Joseph S. Shapiro; Reed Walker
    Abstract: This paper provides the first estimates of within-industry heterogeneity in energy and CO2 productivity for the entire U.S. manufacturing sector. We measure energy and CO2 productivity as output per dollar energy input or per ton CO2 emitted. Three findings emerge. First, within narrowly defined industries, heterogeneity in energy and CO2 productivity across plants is enormous. Second, heterogeneity in energy and CO2 productivity exceeds heterogeneity in most other productivity measures, like labor or total factor productivity. Third, heterogeneity in energy and CO2 productivity has important implications for environmental policies targeting industries rather than plants, including technology standards and carbon border adjustments.
    JEL: F18 H23 Q56
    Date: 2018–01
  2. By: di Maria, C. (Tilburg University, School of Economics and Management); Smulders, Sjak (Tilburg University, School of Economics and Management); van der Werf, E.H. (Tilburg University, School of Economics and Management)
    Abstract: In the presence of implementation lags, announced Pigouvian taxation leads to fossil fuel prices that are too low from society’s perspective. This results in excessive emissions and reduced incentives for green innovation. Such effects are compounded by the presence of pre-existing subsidies to fossil fuel use. We show that the intertemporal resource tax path may need to be modified to optimally take into account the perverse incentives from policy lags and pre-existing policies. We find that it might be optimal to subsidize, rather than tax resource extraction at the instant of implementation.
    Date: 2017
  3. By: Jamie Mullins (Department of Economics, University of Massachusetts, Amherst); Corey White (Department of Economics, California Polytechnic State University)
    Abstract: This paper characterizes the link between ambient temperatures and a broad set of mental health measures. We find that the realization of low temperatures leads to fewer self-reported days of poor mental health, fewer mental-health related emergency department visits, and fewer suicides. Conversely, exposure to more hot days is associated with more days of self-reported poor mental health, more mental health-related emergency department visits, and higher rates of suicide. We consider the efficacy of a number of potential mitigating factors including access to mental health services and residential penetration of air conditioning, among others. We find that the identified relationship is insensitive to all considered modulating factors and has not moderated over time, suggesting a lack of effective adaptation. We offer evidence for sleep quality as the mechanism by which temperatures impact mental health and discuss the implications of our findings in light of climate change.
    Keywords: Mental Health, Weather, Climate, Suicide, Health
    JEL: I10 I12 I18 Q50 Q51 Q54
    Date: 2018

This nep-res issue is ©2018 by Maximo Rossi. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.