nep-res 2020-08-17 papers

on Resource Economics

Issue of 2020–08–17
two papers chosen by
Maximo Rossi, Universidad de la RepÃÃººblica

Public goods and ethnic diversity: evidence from deforestation in Indonesia By Alesina, Alberto; Gennaioli, Caterina; Lovo, Stefania
Negative income shocks and the support of environmental policies: Insights from the COVID-19 pandemic By Löschel, Andreas; Price, Michael; Razzolini, Laura; Werthschulte, Madeline

Public goods and ethnic diversity: evidence from deforestation in Indonesia

By:	Alesina, Alberto; Gennaioli, Caterina; Lovo, Stefania
Abstract:	This paper shows that the level of deforestation in Indonesia is positively related to the degree of ethnic fractionalization. To identify a causal relation we exploit the exogenous timing of variation in the level of ethnic heterogeneity due to the creation of new jurisdictions. We provide evidence consistent with a lower control of politicians, through electoral punishment, in more ethnically fragmented districts. Our results are consistent with the literature on (under) provision of public goods in ethnically diverse societies.
Keywords:	deforestation; ethnic diversity; corruption; Indonesia
JEL:	D73 L73 O10
Date:	2019–01
URL:	https://d.repec.org/n?u=RePEc:ehl:lserod:90257

Negative income shocks and the support of environmental policies: Insights from the COVID-19 pandemic

By:	Löschel, Andreas; Price, Michael; Razzolini, Laura; Werthschulte, Madeline
Abstract:	This study explores whether negative income shocks from the COVID-19 pandemic affect the demand for environmental policy. By running a survey in Germany in May 2020, we show that there is a large and negative correlation between the COVID-19 income shocks and the willingness to support green policies. Importantly, this relation is separate from the effect of long-run income. Building on this first evidence, our study provides directions for future valuation studies. Specifically, our results provide a proof of concept that welfare analyses based on willingness-to-pay estimates to assess the benefit of an environmental good or the cost of an environmental damage may be downward biased if temporary changes in income are not considered.
Keywords:	COVID-19,Environmental policy,Income shock,Welfare analysis,Willingness topay
JEL:	Q51 Q58 D61
Date:	2020
URL:	https://d.repec.org/n?u=RePEc:zbw:cawmdp:117

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