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on Resource Economics |
| By: | Bettarelli, Luca; Furceri, Davide; Loungani, Prakash; Ostry, Jonathan D.; Pisano, Loredana |
| Abstract: | In this paper, we first test the validity of the Environmental Kuznets Curve (EKC) hypothesis, using a large sample of approximately 190 advanced and developing countries, over a period of 34 years (1989-2022). We find that (CO2) emissions respond positively to increasing income per-capita, up to a turning point of approximately US$25, 000. In a departure from the previous literature, we allow the relationship between economic development and emissions to depend on the stringency of environmental regulation. Our results indicate that environmental policies—and particularly market-based instruments, such as carbon taxes and emission trading systems—make the EKC lower and flatter. These results are robust to several sensitivity checks, and to the use of regional (rather than global) data. Overall, our results have important policy implications, as they identify economic development as a pathway to environmental improvements. Moreover, we show that environmental policies are an essential ingredient to achieve decoupling of emissions and economic output over the longer term. |
| Keywords: | Environmental kuznets curve; Climate change policies; Decoupling; Carbon tax |
| JEL: | C33 Q53 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19900 |
| By: | Konrad Adler; Oliver Rehbein; Matthias Reiner; Jing Zeng |
| Abstract: | We propose measuring firms’ exposure to climate risk via the market. We build a theoretical foundation and construct empirical market-based greenness measures based on abnormal stock returns around UN climate conferences. Our measures cover around 36, 000 international firms, tenfold the existing measures. Market-based greenness is associated with lower present and future carbon emissions, and provides explanatory power distinct from existing climate risk measures. Market-based green firms are more likely to file green patents, have lower stock price volatility, and are financially more robust. At the country level, market-based greenness correlates with lower emission intensity and larger shares of renewable energy. |
| Keywords: | Climate change, greenness, green firms, climate risk |
| JEL: | G14 G32 G38 Q54 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_768 |
| By: | Zhang, Liyuan; Ahmadiani, Mona; Valizadeh, Pourya; Woodward, Richard; Boehm, Rebecca |
| Abstract: | Understanding how households adapt to rising temperatures is central to evaluating the economic costs of climate change, yet evidence on adaptation in food consumption and expenditure remains limited. This paper studies behavioral adaptation in food-at-home spending to climate change by distinguishing short-run responses to weather fluctuations from long-run responses to persistent warming in the United States. Using household-level grocery transaction data matched with high-resolution temperature records, we decompose realized temperature into a slow-moving climate norm and a short-run weather deviation and estimate behavioral responses on both the extensive margin, the decision to shop, and the intensive margin, expenditure conditional on shopping. We find that food-at-home spending declines with higher temperatures in both short and long-run, but the long-run climate response is much larger. A 1℃ increase in weekly temperature above the norm lowers expected weekly spending by about 13 cents per capita, while a 1℃ increase in the climate norm lowers weekly spending by about 50 cents. This implies that behavioral adaptation intensifies, rather than attenuate the short-run effect of heat. Responses vary across income groups, regions, and food categories, and differ between cold and heat exposure. These results highlight the importance of household consumption behavior for accurately measuring economic impact of climate change and the role of behavioral adaptation in adjusting long-run welfare cost. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea26:404514 |