nep-res New Economics Papers
on Resource Economics
Issue of 2025–12–15
four papers chosen by
Maximo Rossi, Universidad de la RepÃúºblica


  1. Shadow Price Signals in the Steel Sector: From Efficiency Gaps to Policy Maps By Giacomo Benini; Erik Enstad; Amare Alemaye Mersha; Luca Rossini
  2. Is Work from Home Good for the Environment? By Rainald Borck; Matthias Kalkuhl; Kai Lessmann
  3. “It’s not the heat, it’s the humidity!” New Climate Indices for Europe with a Multilevel Factor Model By Chiara Casoli; Matteo Manera; Luca Pedini; Daniele Valenti
  4. Do More Equal Societies Have Better Environment? By Musibau, Hammed; Nepal, Rabindra; Jamasb, Tooraj

  1. By: Giacomo Benini (Department of Business and Management Science, Norwegian School of Economics); Erik Enstad (Department of Business and Management Science, Norwegian School of Economics); Amare Alemaye Mersha (Department of Economics, Management and Quantitative Methods, University of Milan); Luca Rossini (Department of Economics, Management and Quantitative Methods, University of Milan; Fondazione Eni Enrico Mattei)
    Abstract: This study provides the first global, plant-level analysis of technical and environmental efficiency in steel production using data from 143 mills across 50 countries (2019–2023). Using a Stochastic Directional Distance Function, we estimate plants’ distance to the frontier and compute shadow prices of CO2e emissions. Results show efficient electric arc furnace mini-mills, common in North America, face high abatement costs and low inefficiency. Conversely, integrated plants in developing countries are inefficient but can abate cheaply, with Europe in between. Shadow prices remain well below carbon market rates, underscoring the need for tailored climate policies.
    Keywords: Decarbonization, Environmental Efficiency, Shadow Price of Emissions, Steel Industry, Stochastic Directional Distance Function, Technical Efficiency
    Date: 2025–11
    URL: https://d.repec.org/n?u=RePEc:fem:femwpa:2025.22
  2. By: Rainald Borck; Matthias Kalkuhl; Kai Lessmann
    Abstract: The work-from-home (WFH) revolution is reshaping economic activities and location choices with potentially important implications for environmental pollution. We use a quantitative spatial model calibrated to the German economy to assess the effects of increasing WFH from pre- to post-pandemic levels on pollution from commuting, residential and office buildings, and industrial production. We find that residential population moves from large cities to suburbs and smaller cities, while jobs concentrate in urban centers. A decrease in equilibrium commuting frequency by 18 percentage points reduces nation-wide emission of particulate matter (PM2.5) by 1.9% and carbon dioxide emissions by 2.2%. Commuting emissions decrease by 20.2% – despite a substantial rebound effect induced by a 9% increase in commuting distances. Residential emissions barely change, while there is a shift from on-site to remote office emissions. Pollution falls most strongly in rural counties and least in dense urban ones.
    Keywords: work from home, pollution, commuting, energy use
    JEL: Q53 Q54 R12
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_12300
  3. By: Chiara Casoli (InsIDE Lab, Department of Economics-DiECO, University of Insubria and Fondazione Eni Enrico Mattei); Matteo Manera (Department of Economics, Management and Statistics-DEMS, University of Milano-Bicocca and Fondazione Eni Enrico Mattei); Luca Pedini (Fondazione Eni Enrico Mattei); Daniele Valenti (Department of Management, Economics and Industrial Engineering, Polytechnic of Milano and Fondazione Eni Enrico Mattei)
    Abstract: We construct a comprehensive set of climate indices for European countries that account for several variables related to weather, atmospheric conditions, and water availability. Our dataset includes monthly gridded climate observations from ERA5-Land, aggregated at the country level. Employing a Multilevel Dynamic Factor Model, we disentangle a global indicator, capturing overall climate dynamics across Europe, from country-specific local indices. While most empirical studies proxy climate through temperature or precipitation, our approach acknowledges that other atmospheric dimensions, such as humidity, radiation, and evaporation, jointly shape climatic variability and its economic effects. The global index primarily reflects temperature patterns common to most European countries, whereas the local indicators capture other meteorological phenomena and variations in water reserves. Finally, we show, via panel local projections, that different filtering and detrending procedures used to construct climate anomalies influence the estimated effects of climate shocks on economic activity.
    Keywords: Climate measures, climate impacts, Multilevel Factor Models, panel local projections
    JEL: Q54 O44 C38 C55 Q56
    Date: 2025–11
    URL: https://d.repec.org/n?u=RePEc:fem:femwpa:2025.23
  4. By: Musibau, Hammed (School of Economics and Public Policy, University of Adelaide, Adelaide, Australia); Nepal, Rabindra (School of Business, Faculty of Business and Law, University of Wollongong, Wollongong, Australia); Jamasb, Tooraj (Department of Economics, Copenhagen Business School)
    Abstract: This study investigates environmental impacts of wealth inequality, and the moderating roles of governance quality, education, and readiness for green transition. Using CO2 emissions as a multidimensional indicator, the study employs panel data from 216 countries (1970-2023) and IV-2SLS methodology. Findings suggest equitable societies achieve better environmental outcomes through social cohesion and inclusive governance. Strong institutions, education access, and renewable energy investments mitigate inequality's environmental effects.
    Keywords: Wealth Inequality; Environmental Degradation; Governance; Green Energy; Education; Sustainable Development
    JEL: C33 H23 I25 O44 Q56
    Date: 2025–08–27
    URL: https://d.repec.org/n?u=RePEc:hhs:cbsnow:2025_008

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