nep-res New Economics Papers
on Resource Economics
Issue of 2020‒06‒15
four papers chosen by
Maximo Rossi
Universidad de la República

  1. A Meta-Analysis of the literature on Climate Change and Migration By Michel Beine; Lionel Jeusette
  2. A Computable General Equilibrium Analysis of Environmental Tax Reform in Japan By Shiro Takeda; Toshi H. Arimura
  3. Dirty Density: Air Quality and the Density of American Cities By Carozzi, Felipe; Roth, Sefi
  4. A dynamic theory of spatial externalities By Raouf Boucekkine; Giorgio Fabbri; Salvatore Federico; Fausto Gozzi

  1. By: Michel Beine (CREA, Université du Luxembourg); Lionel Jeusette (CREA, Université du Luxembourg)
    Abstract: Recent surveys of the literature on climate change and migration emphasize the important diversity of outcomes and approaches of the empirical studies. In this pa- per, we conduct a meta-analysis in order to investigate the role of the methodological choices of these empirical studies in finding some particular results concerning the role of climatic factors as drivers of human mobility. We code 51 papers representative of the literature in terms of methodological approaches. This results in the coding of more than 85 variables capturing the methodology of the main dimensions of the analysis at the regression level. These dimensions include authors’ reputation, type of mobility, measures of mobility, type of data, context of the study, econometric methods and last but not least measures of the climatic factors. We look at the influence of these characteristics on the probability of finding any effect of climate change, of find- ing a displacement effect, of finding an increase in immobility and of finding evidence in favour of a direct versus an indirect effect. Our results highlight the role of some important methodological choices, such as the frequency of the data on mobility, the level of development, the measures of human mobility and of the climatic factors as well as the econometric methodology.
    Keywords: Climate change; Human mobility; Econometric regressions; Meta-analysis.
    JEL: C83 F22 J61 Q54
    Date: 2019
  2. By: Shiro Takeda (Kyoto Sangyo University, Motoyama, Kamigamo, Kita-Ku, Kyoto City, 603-8555, Japan. Research Institute for Environmental Economics and Management (RIEEM), Waseda University, 1?6?1 Nishiwaseda, Shinjuku-ku, Tokyo 169?8050, Japan.); Toshi H. Arimura (Faculty of Political Science and Economics & Research Institute for Environmental Economics and Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.)
    Abstract: The Japanese government plans to reduce greenhouse gas emissions by 80% by 2050. However, it is not yet clear which policy measures the government will adopt to achieve this goal. In this regard, environmental tax reform, which is the combination of carbon regulation and the reduction of existing distortionary taxes, has attracted much attention. This paper examines the effects of environmental tax reform in Japan. Using a dynamic computable general equilibrium (CGE) model, we analyze the quantitative impacts of environmental tax reform and clarify which types of environmental tax reform are the most desirable. In the simulation, we introduce a carbon tax and consider the following five scenarios for the use of carbon tax revenue: 1) a lump-sum rebate to the household, 2) a cut in social security contributions, 3) a cut in income taxes, 4) a cut in corporate taxes and 5) a cut in consumption taxes. The first scenario is a pure carbon tax, and the other four scenarios are types of environmental tax reform. Our CGE simulation shows that environmental tax reform tends to generate more desirable impacts than the pure carbon tax by improving welfare or increasing GDP while reducing emissions (double dividend). In particular, we show that a cut in corporate taxes leads to the most desirable policy in terms of GDP and national income.
    Keywords: Carbon Tax; Environmental Tax Reform; Double Dividend; Computable General Equilibrium; Climate Change; Tax Interaction Effects; Paris Agreement
    JEL: Q54 Q58 C68 H23
    Date: 2020–06
  3. By: Carozzi, Felipe (London School of Economics); Roth, Sefi (London School of Economics)
    Abstract: In this paper we study the effect of urban density on the exposure of city dwellers to air pollution using data from the United States urban system. Exploiting geological features to instrument for density, we find an economically and statistically significant pollution-density elasticity of 0.13. We also assess the health implications of these estimates and find that doubling density in an average city increases annual mortality costs by $630 per capita. Our findings highlight the possible trade-off between reducing global greenhouse gas emissions, which is associated with denser cities according to prior research, and preserving local air quality and human health within cities.
    Keywords: air pollution, cities, density, health
    JEL: Q53 R11 I10
    Date: 2020–04
  4. By: Raouf Boucekkine (Aix-Marseille Univ, CNRS, EHESS, Ecole Centrale, AMSE & IMERA, Marseille, France); Giorgio Fabbri (Univ. Grenoble Alpes, CNRS, INRA, Grenoble INP, GAEL, 38000 Grenoble); Salvatore Federico (Universita degli Studi di Siena, Dipartimento di Economia Politica e Statistica, Siena, Italy); Fausto Gozzi (Dipartimento di Economia e Finanza, LUISS Guido Carli, Rome, Italy)
    Abstract: In this paper, we revisit the theory of spatial externalities. In particular, we depart in several respects from the important literature studying the fundamental pollution free riding problem uncovered in the associated empirical works. First, instead of assuming ad hoc pollution diffusion schemes across space, we consider a realistic spatiotemporal law of motion for air and water pollution (diffusion and advection). Second, we tackle spatiotemporal non-cooperative (and cooperative) differential games. Precisely, we consider a circle partitioned into several states where a local authority decides autonomously about its investment, production and depollution strategies over time knowing that investment/production generates pollution, and pollution is transboundary. The time horizon is infinite. Third, we allow for a rich set of geographic heterogeneities across states while the literature assumes identical states. We solve analytically the induced non-cooperative differential game under decentralization and fully characterize the resulting long-term spatial distributions. We further provide with full exploration of the free riding problem, reflected in the so-called border effects. In particular, net pollution flows diffuse at an increasing rate as we approach the borders, with strong asymmetries under advection, and structural breaks show up at the borders. We also build a formal case in which a larger number of states goes with the exacerbation of pollution externalities. Finally, we explore how geographic discrepancies affect the shape of the border effects.
    Keywords: spatial externalities, environmental federalism, transboundary pollution, differential games in continuous time and space, infinite dimensional optimal control problems
    JEL: Q53 R12 O13 C72 C61 O44
    Date: 2020–05

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