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on Resource Economics |
| By: | Schmitz, Tom; Colantone, Italo; Ottaviano, Gianmarco |
| Abstract: | This paper evaluates the economic effects of environmental policy in the presence of general equilibrium spillovers. Focusing on a major change in U.S. air pollution regulations, we combine microeconometric evidence on local and industry-level impacts with a quantitative spatial equilibrium model that captures trade and labor market interactions. Using reduced-form estimates to discipline the model, we quantify aggregate employment and welfare effects that are not identified by partial equilibrium approaches. We find that the policy substantially reduced fine particle emissions, but also led to sizable employment losses. Ignoring general equilibrium spillovers materially overstates job losses in polluting industries while understating employment losses in clean industries. When both economic costs and emission-related amenity gains are taken into account, the welfare benefits of cleaner air dominate. |
| Keywords: | Employment; Trade |
| JEL: | E24 Q50 Q53 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19221 |
| By: | John Fitzgerald (Department of Economics, Trinity College Dublin); Jules Linden (Luxembourg Institute of Socio-Economic Research (LISER)); Cathal O'Donoghue (Department of Economics, National University of Ireland Galway) |
| Abstract: | This paper studies Greenhouse Gas Emission trajectories, climate governance, and climate policy on the island of Ireland. Comparing Northern Ireland and the Republic of Ireland, it shows that the structure of emissions, and therefore the challenge to decarbonise, is highly similar North and South, but climate governance and policy maturity differ substantially. The RoI has a more developed and comprehensive set of climate policies and NI lags significantly behind the RoI. Yet, both jurisdictions are failing to meet their climate targets and advisory councils across NI and the RoI recommend similar actions to advance towards the targets. There is, therefore, a case to improve cooperation on climate policy on the island and to seek out synergies. NI can accelerate the development of its own climate policy mix through policy learning and both the RoI and NI can benefit from developing the common infrastructure and knowledge required to achieve swifter emission reductions. Crucial areas of collaboration include further interconnection of the two electricity grids on the island, shared research on cattle breeding and feed additives, a common biomethane market, the development of common or standardised EV charging infrastructure and of common retrofitting and heat pump standards and skill recognition. The paper also discusses significant challenges to achieving effective climate policy cooperation across north and south. |
| Keywords: | Climate change; greenhouse gas emissions; environmental policy; Island of Ireland |
| JEL: | Q20 Q40 Q50 Q54 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:tcd:tcduee:tep1926 |