nep-res New Economics Papers
on Resource Economics
Issue of 2024‒06‒10
four papers chosen by



  1. Demand-side policy measures for environmental sustainability By OECD
  2. On the Perils of Environmentally Friendly Alternatives By Alpízar, Francisco; Carlsson, Fredrik; Lanza, Gracia
  3. Environmental Regulation and Firms’ Extensive Margin Decisions By Li, Shuo; Wang, Min
  4. Road Pricing with Green Vehicle Exemptions: Theory and Evidence By Nilsson, Peter; Tarduno, Matthew; Tebbe, Sebastian

  1. By: OECD
    Abstract: The consumption of products, services and transportation has significant environmental consequences and account for the majority of global greenhouse gas emissions. Meanwhile, demand-side policy measures have the potential to reduce the environmental footprint of these activities by up to 40-70%. This Policy Paper draws on the OECD’s recent household survey on environmental policy and behavioural change to provide insights and policy recommendations for specific measures that can encourage more sustainable household consumption of energy, transport and food as well as more sustainable waste practices. The report was prepared in support of Japan’s 2023 G7 presidency.
    Keywords: Demand-side policy, Energy, Food, Household behaviour, Sustainable consumption, Transport, Waste
    Date: 2024–05–17
    URL: http://d.repec.org/n?u=RePEc:oec:envaac:42-en&r=
  2. By: Alpízar, Francisco (Wageningen University and Research, Wageningen, Netherlands); Carlsson, Fredrik (Göteborg University); Lanza, Gracia (CATIE)
    Abstract: Environmentally friendly alternatives are touted as a key component of a transition towards lowering the impact of human activity on the environment. The environmental costs of these technologies are seldom null; they are simply less environmentally damaging than existing options. In this paper, we investigate consumer behavior when an environmentally friendly alternative is introduced under different decision contexts. Using a carefully constructed field experimental design, we look at the use of plastic bags vis-a-vis biodegradable (bio) bags, when the latter are offered for free versus at a price. Moreover, we explore offering costly biodegradable bags as part of the default choice. We find that giving away the bio bags for free results in a large behavioral rebound effect, resulting in a large increase in the total number of bags. Setting a small, rather symbolic price offsets this rebound effect completely. Interestingly, when the bio bag is offered as a default, the behavioral rebound remains. The large behavioral rebound effect leads us to conclude against providing these environmentally friendly alternatives for free, and to caution against the use of subsidies to promote their uptake.
    Keywords: biodegradable; plastic bags; behavioral; rebound
    JEL: C93 D91 Q53
    Date: 2022–06–23
    URL: http://d.repec.org/n?u=RePEc:hhs:gunefd:2022_013&r=
  3. By: Li, Shuo (Faculty of Business and Economics, The University of Hong Kong, Hong Kong, China); Wang, Min (China Center for Economic Research, National School of Development, Peking University, Beijing, China)
    Abstract: The paper provides a comprehensive investigation of the effects of environmental regulations on Chinese firms’ extensive margins. Using registration information of all firms in 35 industries from 1991 to 2010, we show that environmental regulations deter firm entry, increase firm exit and reduce the net entry of firms. Specifically, in response to such regulations, large, long-lived and private entrants are less likely to enter the market, and small and long-lived incumbents are more likely to exit. This concentrates the market and expands the state sector in pollution-intensive industries. Moreover, the entrants are more heavily regulated than incumbents. We also find evidence that, in response to environmental regulations, firms in regulated locations are more likely to create new firms in pollution-intensive industries in unregulated areas. However, these spatial spillover effects are negligible, posing little threat to the estimation of environmental regulatory impacts on firm entry in our setting and therefore alleviating the concern of pollution relocation.
    Keywords: Environmental Regulation; Firm Entry; Firm Exit; Equity Investment; Spatial Spillover; Inter-city Investment
    JEL: L51 O44 Q52 Q58 R38
    Date: 2022–10–12
    URL: http://d.repec.org/n?u=RePEc:hhs:gunefd:2022_015&r=
  4. By: Nilsson, Peter (Institute for International Economic Studies & Linnaeus University); Tarduno, Matthew (University of Illinois at Chicago); Tebbe, Sebastian (School of Global Policy and Strategy, University of California San Diego)
    Abstract: We provide a framework for setting congestion charges that reflect emission and congestion externalities and policy responses, such as vehicle ownership, driving, and residential sorting. Using Swedish administrative microdata, we identify these responses by exploiting a temporary exemption for alternative fuel vehicles and variation in individuals’ exposure to congestion charges. We find that commuters respond by adopting exempted alternative fuel vehicles, shifting trips away from fossil fuel toward alternative fuel vehicles, and changing where they live and work. We combine the estimated responses with the framework to recover an optimal congestion charge of €9.46 per crossing in Stockholm.
    Keywords: congestion pricing;
    JEL: R41 R48
    Date: 2024–04–22
    URL: http://d.repec.org/n?u=RePEc:hhs:vxesta:2024_007&r=

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