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on Resource Economics |
| By: | Bergman, Aaron (Resources for the Future); Krupnick, Alan (Resources for the Future); Nehrkorn, Katarina (Resources for the Future); Zhu, Yuqi |
| Abstract: | Hydrogen has the potential to serve as a zero-carbon energy carrier as an element of a zero-carbon economy. But the high cost of clean hydrogen and infrastructure needs for scaling, plus the dismantling of policies to promote its production and use, have hampered its spread. Focusing on the heavy-duty trucking and ports sectors, we review the policy landscape here and abroad and the obstacles faced by clean hydrogen in these sectors. We present potential policies for overcoming the demand-side obstacles in these two sectors, with some focus on the nascent Biden administration’s Joint Offtake Producer Auction and its contrast with other policy ideas, such as contracts for differences. The discussion is organized around the obstacles of high cost, uptake of fuel cell vehicles and the construction of a refueling network for heavy-duty trucking. Among several suggestions, we find that hydrogen use in heavy-duty trucking requires more coordinated investment due to the need for extensive refueling infrastructure along transportation corridors. |
| Date: | 2026–01–23 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-26-03 |
| By: | Wibbenmeyer, Matthew (Resources for the Future); Liao, Yanjun (Penny) (Resources for the Future); Drunkenmiller, Hannah; Iovanna, Richard |
| Abstract: | Conservation programs are often viewed as competing with local economic activity, yet they may also generate environmental amenities for nearby communities. We estimate how land enrolled in the Conservation Reserve Program (CRP)—the largest US payments-for-ecosystem-services program—affects residential property values. Using nationwide field-level CRP data from 2012–2022 linked to home transactions, we apply a repeat-sales hedonic framework to identify how changes in nearby CRP land influence transaction prices of the same properties. We find that CRP enrollment produces meaningful appreciation of home values: a 10-hectare increase in CRP land within 1, 000 meters raises home values by roughly 0.5 percent, with especially strong effects for land converted to tree cover. Placebo and robustness tests confirm that results are not driven by county-level economic trends or development pressure. Our estimates imply that CRP lands increase US residential property values by $48–68 million annually, highlighting local benefits beyond payments to participating landowners.Keywords: Payments for Ecosystem Services, Land Conservation, Environmental Amenities, Hedonic Pricing |
| Date: | 2026–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-26-02 |
| By: | Martin Richardson (Research School of Economics, The Australian National University, Canberra); Frank Stahler (School of Business and Economics, University of Tubingen, Tubingen, Germany); Halis Murat Yildiz (Department of Economics, Toronto Metropolitan University, Toronto, Canada); |
| Abstract: | We identify a condition in a general equilibrium model of trade with tariff bindings under which a customs union (CU) can design a carbon border adjustment mechanism (CBAM) that induces other countries to adopt the CU's carbon tax. Trade liberalization makes this easier and so would help the CU `export' its climate policies. We then show that, in an inter-industry, perfectly competitive framework with competing exporters, the optimal carbon tax is lower when the CU maximizes CU welfare than if it were to maximize global welfare. Furthermore, the CU optimally raises its tariff threat via CBAM by less than the difference in member and non-member environmental taxes. By contrast, in an intra-industry oligopoly model of trade with profit shifting incentives, we find the opposite result, with a "penalty" tariff threat that exceeds the difference in carbon taxes. |
| Keywords: | Tariff Binding, Carbon Leakage, Climate Change, Carbon Border Adjustment Mechanism, European Union |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:rye:wpaper:wp098 |
| By: | Liao, Yanjun (Penny) (Resources for the Future); Wibbenmeyer, Matthew (Resources for the Future); Drunkenmiller, Hannah; Iovanna, Richard; Thompson, Alexandra (Resources for the Future); Holmes, Brandon (Resources for the Future) |
| Abstract: | The Conservation Reserve Program (CRP), the nation’s largest working-lands conservation program, retires environmentally sensitive cropland in exchange for rental payments. While CRP’s ecological benefits are well documented, its socioeconomic effects on rural communities are less understood, though they are central to ongoing policy debates regarding the program’s future. This report provides a comprehensive national assessment of CRP’s impacts on property values over the period 2012–2022, and on rural business activity, employment, and migration from 2001 to 2022. The analysis yields several key insights.CRP generates modest but measurable gains in nearby residential property values. Using a repeat-sales hedonic framework and a data set of more than 12 million transactions, we find that increases in CRP enrollment near a home raise sale prices. A 10-hectare increase in CRP land within 1 km increases property values by about 0.5–0.7 percent. Tree-cover CRP generates the greatest gains, at roughly 2 percent for the same increment, likely reflecting salient aesthetic improvements, wildlife habitat restoration, and enhanced recreational amenities. Based on current CRP enrollments, these localized amenity gains add an estimated $3 billion to residential real estate nationwide, or roughly $60 million annually.CRP enrollment supports rural economic activity, particularly in agricultural and local service industries. Despite longstanding concerns that retiring cropland weakens rural economies, our analysis at the industry, county, and year levels finds that CRP is associated with small but consistently positive increases in rural employment and business activity. A 1, 000-acre increase in county CRP enrollment raises rural employment by roughly 0.06 percent per year over the first three years, with gains tapering off by year five. On average, this implies an additional 8 rural jobs per 1, 000 acres enrolled. Establishment counts show similar patterns. Effects are strongest within agriculture and closely related industries, but spillovers appear in retail, recreation, hospitality, and other local non-tradable sectors. These effects could be explained by stabilized farm income, land management labor needs, and amenity-driven recreation spending.CRP does not contribute to sustained rural depopulation. Using IRS county-level migration data, we find no evidence that CRP accelerates out-migration or long-term population loss. CRP enrollment is associated with a small, short-run reduction in net in-migration (less than one basis point), but this effect reverses within three years. Over a five-year period, the program’s net effect on migration is essentially zero. These results counter the perception that CRP exacerbates rural decline.Overall, the findings indicate that the CRP has supported rural communities while delivering substantial environmental benefits. In recent years, the program’s impacts on property values, local employment, and sectoral activity have been positive but moderate, and concerns about depopulation linked to land retirement are not supported by empirical evidence. From a policy perspective, the results suggest that the CRP can advance conservation objectives without harming rural economies. It is important to recognize that CRP spending primarily represents transfer payments to landowners, meaning that the observed external benefits to local communities constitute net social gains. As policymakers debate whether to pare down or strengthen the program, these results underscore the importance of considering its broader socioeconomic implications. They also highlight opportunities to align CRP design more closely with rural development goals. In particular, while tree cover tends to be more costly to establish and maintain than other cover types, it generates the most pronounced positive effects in both property and labor markets, suggesting that its relative benefits may justify its higher costs. |
| Date: | 2026–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:rff:report:rp-26-02 |
| By: | Minhaj Mahmud (Asian Development Bank); Yujie Zhang (University of Pennsylvania) |
| Abstract: | This study examines the interplay between extreme temperatures and air pollution risks, the geographic and temporal distribution, as well as the population burden of climate shocks in Bangladesh, Indonesia, Pakistan, Thailand, and Viet Nam—countries severely impacted by climate change. Using ERA5-HEAT temperature data and PM2.5 pollution data, we first identify “hotspots” within and across the countries by analyzing district level trends in heat stress and pollution exposure. We further explore the correlation between temperature and pollution shocks. Finally, jointly considering the spatial distribution of populations and key climate and pollution hazards, we highlight the most vulnerable groups with population weighted exposure measures. Our findings reveal distinct country-specific patterns in both the correlation between heat stress and air pollution risk, and the population exposure to the hazards across demographic profiles. These results emphasize targeted policies to mitigate the compounded effects of climate and air pollution hazards on vulnerable populations across Asia. |
| Keywords: | heat;air pollution;climate change;Asia;population exposure |
| JEL: | J10 Q53 Q54 Q56 |
| Date: | 2026–01–27 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:022144 |