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on Resource Economics |
| By: | Gazze, Ludovica (University of Warwick); Gupta, Tanu (University of Southampton); Huang, Allen (Weiyi) (University of Oxford); Londono, Valentina (Universidad del Rosario); Saavedra, Santiago (Universidad del Rosario); Toma, Mattie (University of Warwick) |
| Abstract: | There is limited evidence on the non-health impacts of air pollution, including productivity in the workplace and behavior. We examine the effect of air pollution on participation, collaboration, and feedback provision in a workplace setting. Our experiment randomly assigns air purifiers to rooms at three large academic conferences to investigate the causal impact of air pollution on participants' engagement behavior. We construct a participant engagement index based on 12 presentation-level behavioral outcomes directly measured by conference observers through an online form and weigh each behavioral outcome using weights elicited from an expert survey. Conference rooms treated with air purifiers exhibit 48% less PM2.5 concentration compared to control rooms. However, we do not find a statistically significant change in engagement. Communication in the workplace might not be a large driver of the empirical relationship between air quality and productivity, albeit more research is needed across workplaces and measures of communication. |
| Keywords: | field experiment, workplace, engagement, indoor air quality |
| JEL: | Q53 J24 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18154 |
| By: | Akbaripour, Navid (Stockholm School of Economics); Bos, Marieke (Mistra Center for Sustainable Markets (Misum)); Mahdikhani, Ehsan (Stockholm School of Economics); Olafsson, Arna (Stockholm School of Economics) |
| Abstract: | Financial markets are increasingly seen as pivotal in mitigating climate change by influencing consumer choices. This paper studies the introduction of a green loan program in Iceland that offers an interest rate rebate for electric vehicle (EV) purchases, and analyzes who selects these loans and how adopting an electric car affects household finances. Using transaction-level data from a large Icelandic bank, we compare green car loan takers to regular car loan takers. We find that green loan adopters tend to be more affluent, have larger families, live in areas with strong Green Party support, and are more financially literate and more likely to have previously invested in green bonds, indicating both pro-environment and financial-awareness channels in selection. They also exhibit different pre-purchase consumption patterns (e.g., lower spending on gasoline and higher spending on other carbon-intensive goods) even before switching to an EV. After the purchase, green loan households dramatically reduce gasoline expenditures (about 30% on average) while increasing electricity costs modestly (around 13%), resulting in a net decline in monthly car-related outlays of roughly 10, 000 ISK (≈$77). This corresponds to a 0.8 percentage point drop in the household’s energy-expenditure-to-income ratio and implies sizable reductions in fuel-related CO2 emissions. We further show that exogenous liquidity windfalls significantly increase the likelihood of choosing a green car loan: lottery winners who subsequently buy a car are 12-13 percentage points more likely to opt for an EV. However, because current green loan take-up is heavily skewed toward wealthier, already green consumers, the aggregate carbon reductions remain limited. Our findings suggest that green loan programs can both cut carbon emissions and save consumers money, but only if complemented by policies to broaden access beyond the environmentally motivated and financially well-off. |
| Keywords: | Sustainable Finance; Green Loans; Household Finance |
| JEL: | G00 |
| Date: | 2025–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:hamisu:2025_003 |
| By: | Marion Davin (Aix Marseille Univ, CNRS, AMSE, Marseille, France); Mouez Fodha (Paris School of Economics, University Paris 1 Pantheon-Sorbonne); Thomas Seegmuller (Aix Marseille Univ, CNRS, AMSE, Marseille, France) |
| Abstract: | This paper considers the dynamics of pollution and sustainable growth in a context where the detrimental effects of pollution on total factor productivity can push the economy to a point of collapse. With environmental policy constrained by tax revenues, we investigate how the proximity to collapse -distance to the end -influences the balance between mitigation and adaptation spending. We show that adaptation policies are recommended when pollution intensity is high, whereas mitigation policies may be more effective when pollution intensity is low. Financing these policies by a carbon tax is more effective than an income tax. Examining the welfare of present and future generations, we reveal that the trade-off between mitigation and adaptation does not align across generations: while current generations may prefer adaptation, future generations tend to benefit more from mitigation. |
| Keywords: | Environmental damage, Environmental policy, fiscal policy, sustainability |
| JEL: | E60 Q54 Q58 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:aim:wpaimx:2519 |
| By: | Adam Feher (University of Lausanne); Emilia Garcia-Appendini (Norges Bank; University of St. Gallen - School of Finance; Swiss Finance Institute); Roxana Mihet (Swiss Finance Institute - HEC Lausanne) |
| Abstract: | We leverage a comprehensive dataset on U.S. data center energy loads, utility electricity prices, and establishment-level revenues, employment, and carbon emissions from 2010 to 2023 to examine whether rising data center demand affects local retail energy prices or other spillovers. For identification, we employ an instrumental variables continuous difference-indifferences design, exploiting exogenous variation in data center location attractiveness. We find no detectable local spillover effects from data center energy growth. A regional model calibrated to these null results suggests that shocks larger than those observed through 2023 could still result in noticeable increases in household utility bills if not offset by regulation or external supply. |
| Keywords: | AI, energy prices, spillovers, data centers, energy, electricity |
| JEL: | Q55 Q58 D24 O33 O44 L94 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2573 |