This paper analyses the implications of government control over public information about air pollution. First, we model the incentives for a local government with control over the media to affect popular perception concerning pollution. We argue that biased announcements can influence the inflows of labour force in a municipality beyond economic factors. Then, we examine some evidence on information misreporting in the context of Beijing, China. We show that official air pollution announcements diverge systematically from an alternative source of information, provided by the US Embassy. The results point at a manipulation of popular perception consistent with the motives indicated in our model. Furthermore, using an original household survey, we examine whether the distorted public signal affects agents' behaviour. We find that households that depend upon government-controlled media are significantly less responsive to pollution peaks.

A better understanding of the relative importance of factors related to climate change and to changes associated with economic growth would serve to inform water policy and to focus scarce public resources on anticipated problems arising from distinct sources of changes in water demand. This article investigates the determinants of residential water consumption in Chile, a developing country that has seen noteworthy changes in incomes, household size, poverty rates and levels of urbanization, and which is projected to experience significant climatic but varied changes, depending on the region of the country. Panel data for 1998-2010 at the municipal level is used to analyze the sensitivity of residential water demand to climate and development-related factors. In the case of Chile, the effect on water consumption of these development-related changes is estimated to be several times that of the changes associated with climate projections for 50 to 80 years in the future.

Environmental protection is an issue that all developing countries must cope with when inviting foreign direct investment (FDI). However, the high correlation between FDI and pollution does not necessarily indicate that foreign firms are to blame. In this study, we apply firm-level panel data from Vietnam and unique information on waste discharge to demonstrate that foreign firms are actually more proactive in acquiring ISO14001 certification. ISO14001 is a voluntary environmental standard, the adoption of which improves a firm's performance in terms of waste control, and increases its welfare and productivity level. This study provides robust evidence that firms' efforts toward corporate social responsibility eventually benefit them as well.

Using remotely sensed land-cover data in 1994 and 2014, and cross-sectional survey data in 2014, this study examines the association between land use and cover change and agricultural productivity in northern Ghana. We document a significant expansion of crop land and settlements (productive use) at the expense of natural vegetation cover. Land areas converted from natural cover to productive use have higher maize yield (0.17 tons per hectare) and harvest value (1,021 Ghanaian Cedi) compared with those converted from bare soil to productive cover. Moreover, areas that were covered by shrubs or savannah in 1994 were more productive in 2014 relative to bare soils in 1994. Although our data do not allow us to establish causality, the evidence suggests the importance of past land-cover conditions in affecting current agricultural performance, especially in resource-stricken settings where conservation and restoration practices are not as common.

Interest payments based on income flows are a common feature of informal loans. Such so-called ’interlinked loans’ can be seen as insurance against very low disposable incomes, as interest payments are lowest when income turns out to be low. This paper examines whether interlinked loans indeed contain an insurance premium and how those premia are determined. A simple theoretical model predicts that interest rates of interlinked loans increase with income volatility when insurance premia exist. Based on data from a small-scale fishery in India, calculations show that, on average, lenders receive 25 per cent of the income, which corresponds to an average interest rate of 49 per cent p.a. A panel data analysis confirms theoretical predictions that interlinked loans contain an insurance component paid by the borrowers.