nep-res New Economics Papers
on Resource Economics
Issue of 2023‒06‒19
five papers chosen by
Maximo Rossi
Universidad de la República

  1. All Inclusive Climate Policy in a Growing Economy: The Role of Human Health By Lucas Bretschger; Evgenij Komarov
  2. Interest groups and thefailure of transformativeinnovation policy - Insights from the ethanolcar bubble in Sweden 2003-2013 By Björnemalm, Rickard; Sandström, Christian
  3. Recall Bias of Environmental Campaigns By Michela Limardi
  4. Effects of Early Childhood Exposure to Ambient Lead and Particulate Matter on Adult Personality By Fraas, Arthur G.; Lutter, Randall; Murphy, Joshua; Xiahou, Qinrui; Potter, Jeff; Gosling, Samuel D.
  5. Temperature and Fertility: Evidence from Spanish Register Data By Keivabu, Risto Conte; Cozzani, Marco; Wilde, Joshua

  1. By: Lucas Bretschger (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland); Evgenij Komarov (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland)
    Abstract: We determine optimal climate policy using a dynamic climate model that accounts for the damages to capital and human health from burning fossil fuels. Our theoretical macroeconomic approach incorporates a separate health sector into an integrated climate-economy framework and provides closed-form analytical solutions for the main model variables. Economic growth is endogenously driven by innovation, with labor availability and productivity, and thus human health, being critical. Calibrating the model, we find that 44% of total resource stock should be extracted when considering damages to capital, but only 1% when health damages are included. The health perspective requires optimal environmental policies that are much more stringent than those normally advocated in climate economics, since harm to human health has negative effects on economic growth. Socially optimal growth exceeds the rate under free market conditions.
    Keywords: Optimal climate policy, human health, climate damages, optimum resource stock
    JEL: I15 Q54 Q32
    Date: 2023–05
  2. By: Björnemalm, Rickard (Stockholm School of Economics); Sandström, Christian (The Ratio Institute)
    Abstract: Literature on innovation policy has so far paid little attention to policy failure and the mechanisms leading to failure. We describe the Swedish bubble in ethanol cars 2003-2013 and explain why well intended policies may end up with unsatisfactory results. Directives from the European Union forced policymakers in Sweden to act swiftly and the Swedish government put in place The Pump law which forced gas stations to supply ethanol as a fuel from 2006 and onwards. In combination with targeted tax deductions for ethanol cars, a sharp increase in demand took place in 2006-2008. As these started to experience engine problems by 2009-2010, demand declined. Tax deductions were subsequently altered in order to also include cars with very low CO2 emissions, a shift that contributed further to the downfall of ethanol cars. Our data suggests that domestic car manufacturers Volvo and Saab, along with Ford benefited from the ethanol policies as their combined market share for green cars surged from 12 to 75 percent 2005-2008. Ethanol was competitive in the political domain as the fuel was backed by the Centre Party and the associated farmers’ lobby group, but lacked economic, technological and environmental competitiveness. Our findings suggest that innovation policies aimed at supporting new technologies against vested interests may instead end up extending established interests as policies are put in place under the influence of various stakeholders.
    Keywords: Ethanol car; policy failure; innovation; technology; environment.
    JEL: O25 O31 O38 O44 Q42
    Date: 2023–05–18
  3. By: Michela Limardi (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, RIME-Lab - Recherche Interdisciplinaire en Management et Économie Lab - ULR 7396 - UA - Université d'Artois - Université de Lille)
    Abstract: Environmental campaigns aim to increase the environmental awareness of individuals and induce a pro-environmental behavior. One of the criteria used to assess the effectiveness of a campaign is to ask people if they recall the campaign. However, a bias may exist in recalling campaigns according to the environmental behavior of individuals. The goal of this is study to measure this potential recall bias. We use an original survey conducted by a French Non-profit Organization in Paris region to assess the effectiveness of its drug recycle campaigns. We first conduct a probit analysis of the probability of an individual remembering the campaign and then we apply the difference-indifference method. Our findings show that there is a systematic recall bias of the campaigns according to the environmental behavior of the respondent. This recall bias might be related to the type of message delivered. This finding implies that deeper reflection is needed in order to find the right message to succefully reach the target group of environmental campaigns, i.e. individuals with low environmental awareness.
    Keywords: NGOs, Environmental Campaigns, Pro-environmental behavior
    Date: 2022–10–21
  4. By: Fraas, Arthur G. (Resources for the Future); Lutter, Randall; Murphy, Joshua; Xiahou, Qinrui (Resources for the Future); Potter, Jeff; Gosling, Samuel D.
    Abstract: To assess how early-life exposure to air pollution affects adult personality, we use new annual lead (Pb) vehicle emissions data by county, for 1969 to 1981, and “Big Five” personality data for 130, 000 adults. Models with county and cohort fixed effects show higher Pb exposure during the first five years of life lowers agreeableness and increases openness. Weaker evidence suggests Pb lowers conscientiousness and increases neuroticism but it has no effect on extraversion. We also assess how regulation-induced cuts in total suspended particulates (TSP) levels affect adult personality. We are unable to disentangle early life effects of Pb and TSP.
    Date: 2023–05–10
  5. By: Keivabu, Risto Conte (Max Planck Institute for Demographic Research); Cozzani, Marco (University of Florence); Wilde, Joshua (Max Planck Institute for Demographic Research)
    Abstract: In this paper, we combine administrative data for continental Spain from 2010 to 2018 with meteorological data to identify the effect of temperature on fertility. We demonstrate that warm (25-30°C) and hot days (>30°C) decrease total fertility rate (TFR) in Spain, and that the estimated decrease is higher than the effects estimated in previous literature for other countries. Moreover, we show that locations with a colder climate are more vulnerable to the impact of heat. Our results suggest that the global impact of climate change on population dynamics may be understated, especially without adaptation and mitigation measures, and that temperature increases may exacerbate the socio-economic consequences of low fertility such as population ageing.
    Keywords: fertility, TFR, temperature, heat, Spain
    JEL: J13 J11 J18 I12 Q54 Q56
    Date: 2023–05

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