nep-res New Economics Papers
on Resource Economics
Issue of 2018‒09‒24
five 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
  3. Do Secure Property Rights Affect Resource Allocation and Firm Production? Evidence from Water Right Adjudications in Idaho By Browne, Oliver R.
  4. Will future climate change increase global energy use? By Hongliang Zhang; Jianhong E. Mu; Bruce A. McCarl
  5. Has climate change driven urbanization in Africa? By Henderson, J. Vernon; Storeygard, Adam; Deichmann, Uwe

  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: 2018–08
  2. By: Abay Mulatu Mulatu (Coventry University)
    Abstract: With the rising elimination of trade and investment barriers the world over there has been a growing interest in the question of the role of differential environmental regulations in the location decisions of multinational enterprises (MNEs) and trade flows. A dominant hypothesis addressing this question is the pollution haven hypothesis (PHH) that purports that trade liberalization results in a relocation of dirty goods production to jurisdictions with lax environmental regulation. The PHH calls into question the efficacy of domestic environmental standards especially with respect to climate policy, because the location of emission of greenhouse gasses is irrelevant to the problem of climate change. More generally, the PHH is at the heart of the trade and environment debate. This paper examines whether UK?s outbound investment flows (FDI) is influenced by the host countries? environmental regulations. We employ a general empirical model of the determination of FDI flows that captures interactions between country and industry characteristics in determining industry location. We use data on UK based multinational activity in 64 countries and 23 industries over the period between 2002 and 2006. We find a statistically and economically significant effect of environmental policy on the pattern of UK outbound FDI ? a pollution haven effect.
    Keywords: pollution-haven, competitiveness, environmental-regulation, industry-location, FDI
    JEL: Q56 R11
    Date: 2018–06
  3. By: Browne, Oliver R.
    Keywords: Resource/Energy Economics and Policy, Agribusiness, Institutional and Behavioral Economics
    Date: 2017–07–03
  4. By: Hongliang Zhang; Jianhong E. Mu; Bruce A. McCarl
    Abstract: Currently fossil-fuel-based energy accounts for 82% of global energy use and is the source of two-thirds of anthropogenic greenhouse-gas emissions (GHG). Such emissions are a primary climate change driver ultimately altering temperature and in turn influences energy use. This paper presents a global analysis of the link between energy use and temperature, along with the contributing factors of income, urbanization and population. We use an econometric model to estimate this link based on a panel dataset arising from 147 countries during 1990-2014. We find that energy use per capita has a nonlinear, convex relationship with temperature - the use initially high at low temperatures, then declining to an inflection point, and subsequently rising at high temperatures. The temperature effects on energy use per capita are not globally uniform with differences across rich and poor countries. In particular, rich countries show a larger energy use response at high temperatures than poor countries do. Projections under unmitigated climate change indicate an increase in the global, annual total energy use of 41% by 2100, relative to a baseline of no climate change. The projected increases in global total energy use are substantially larger than prior estimates from studies focused on residential energy use and may further motivate aggressive GHG mitigation and climate change adaptation.
    Keywords: Climate Change, Energy Use
    JEL: Q4 Q54
    Date: 2018–09
  5. By: Henderson, J. Vernon; Storeygard, Adam; Deichmann, Uwe
    Abstract: This paper documents strong but differentiated links between climate and urbanization in large panels of districts and cities in Sub-Saharan Africa, which has dried substantially in the past fifty years. The key dimension of heterogeneity is whether cities are likely to have manufacturing for export outside their regions, as opposed to being exclusively market towns providing local services to agricultural hinterlands. In regions where cities are likely to be manufacturing centers (25% of our sample), drier conditions increase urbanization and total urban incomes. There, urban migration provides an "escape" from negative agricultural moisture shocks. However, in the remaining market towns (75% of our sample), cities just service agriculture. Reduced farm incomes from negative shocks reduce demand for urban services and derived demand for urban labor. There, drying has little impact on urbanization or total urban incomes. Lack of structural transformation in Africa inhibits a better response to climate change.
    Keywords: Africa; Urbanization; Climate Change
    JEL: O10 O55 Q54 R12
    Date: 2017–01–01

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