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on Resource Economics |
| By: | Liao, Yanjun (Penny) (Resources for the Future); Walls, Margaret A. (Resources for the Future); DeAngeli, Emma (Resources for the Future) |
| Abstract: | With increasing threats from sea level rise (SLR) and hurricanes, state and local governments in coastal areas face difficult adaptation decisions about infrastructure. Should they continue to build and maintain infrastructure to keep communities viable or forgo those expenditures and instead facilitate a managed retreat? We examine these questions in the context of sewer expansion to address the increasing risk of failure of onsite waste disposal (septic) systems, in the face of SLR. Using a spatial discontinuity design around the boundary of sewer service areas, we find that properties with sewer access are 30 percent higher in value per acre of lot size than those on septic, indicating a strong preference for extending sewer access as a solution to problems of failing septic systems. However, we also show that sewer access induces more development exposed to flooding and SLR. These findings highlight an important adaptation challenge for local policymakers: reducing the impacts of climate change on existing residents while not worsening exposure to risk in the future. |
| Date: | 2026–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-26-05 |
| By: | Oscar Claveria (AQR-IREA, Universitat de Barcelona, Spain.); Petar Soric (Faculty of Economics and Business, University of Zagreb, Croatia.) |
| Abstract: | Recent energy tensions caused by conflicts in Ukraine and the Middle East have added to the pressure that global warming exerts for an energy transition towards low-carbon energy sources. This study combines two time series approaches with the aim of delving deeper into the relationship between environmental degradation and economic growth and to test the environmental Kuznets curve (EKC) hypothesis, using information from 20 European countries between 2007 and 2021. Overall, the obtained results suggest the existence of a N-shaped nexus between emissions and income per capita. Additionally, we evaluated stability of this nexus and the potential existence of an asymmetric adjustment. In most countries we find asymmetries in the adjustment of emissions to positive and negative changes in income, but not so much in economic complexity. However, notable differences are observed between countries, which could be indicating their differentiated phase in the EKC curve. |
| Keywords: | Economic Growth; Economic Complexity; Environmental Degradation; Greenhouse Gas Emissions; Europe. JEL classification: C38; C55; O44; Q20; Q50. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:ira:wpaper:202519 |
| By: | David Bistuer (Department of Econometrics and Statistics, Universitat de Barcelona, Spain.); Helena Chuliá (Department of Econometrics and Statistics, Riskcenter-IREA, Universitat de Barcelona, Spain.); Jorge M. Uribe (Faculty of Economics and Business, Open University of Catalonia, Spain.) |
| Abstract: | Previous development studies have documented a positive relationship between economic complexity and better environmental outcomes, as well as highlighted policy avenues that could leverage economic complexity as a roadmap for decarbonization and green growth. We build on this perspective by empirically demonstrating—using recent advances in explainable and causal machine learning—that economic complexity is also meaningfully linked to climate change resilience. Specifically, we show that more complex economies tend to be less vulnerable to climate change due to their stronger adaptive and coping capacities. These capacities are evidenced by stronger institutions, better long-term health outcomes, and, notably, a higher proportion of people employed in R&D. Our findings also reveal a positive association between exposure to climate risk due to geography and complexity, but only in cases of extreme exposure. While exposure to climate change itself is beyond the reach of policy intervention, vulnerability is not. By using an economic complexity framework combined with investments in knowledgeintensive intangibles and large-scale long-term health interventions, policymakers can align the seemingly divergent goals of climate resilience and decarbonization, which is crucial, especially for developing nations. |
| Keywords: | Climate Risk; Green Growth; Structural Transformation; Artificial Intelligence; Machine Learning. JEL classification: |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:ira:wpaper:202521 |