Hydraulic fracturing (HF) has transformed the North American oil and gas industry, leading to increased consumer surplus and reduced carbon emissions. While HF may have similar potential for the developing world, adoption has been limited to date, plausibly because of perceptions of potential local costs and the need to develop technical proficiency. We empirically evaluate the incremental contribution of HF in the United States. We find considerable evidence of differences in application and productivity across operating firms and vertical pairings of firms, suggesting intellectual property and learning by doing may both play important roles. At the same time, secrecy regarding the chemical composition of fluids used in HF is a potential deterrent to its application for fear of local costs. Developing countries must accommodate these characteristics if adoption of HF is to help meet energy demands and achieve climate policy goals.

This paper explores the short-run impact of work resumption, extensively launched on February 10, 2020 in China, on air quality after the subsiding of COVID-19. Utilizing the data of 1012 air-quality monitoring sites in 233 cities derived from the Real-time Release Air Quality Platform and the difference-in-differences method, we find that alternative measures of air quality index in non-Hubei provinces increase significantly, compared with those in Hubei province which was temporarily not allowed work resumption due to the severity of epidemic. Specifically, our results reveal a rise in AQI of 11.28 per cent, in PM2.5 of 12.47 per cent, in PM10 of 10.49 per cent, and in NO2 of 23.64 per cent, relative to the baseline mean. Moreover, the deterioration of air quality is found to be caused by intracity rather than intercity migration.

Most developing countries are increasingly depending on freshwater based aquaculture to supplement the declining catch from capture fisheries. Yet the competition between capture fisheries and cage culture for space, pollution generated by cage culture, and fish markets interaction effects are hardly conceptualized in a bioeconomic framework. Furthermore, the economic viability of cage culture depends on substantial investment thresholds, engendering foreign direct investment in the industry in developing countries. This paper develops a conceptual model for fresh-water-based aquaculture that accounts for these effects. We found that a Pigouvian tax (optimum ad valorem tax) that corrects the externalities depends on economic and biological parameters in both fisheries. Correcting for the externalities results in a reduction in aquaculture production but not optimum wild catch. Furthermore, with foreign capital in aquaculture, the Pigouvian tax equals the ratio of net to total benefit from aquaculture. Numerical values are used to illustrate the results.

The outcome of environmental actions from participation in the export market are examined by unpacking some mechanisms that explain the estimated relationship. The empirical strategy utilizes the variation in the distance between the location of the sampled enterprises and the top 25 destinations of Vietnamese exports across sectors, and the weight of each sampled export to total exports in each period, to obtain exogenous variation in the enterprise's export market participation. The result shows a positive relationship between the enterprise's export participation and its overall engagement in environmental actions (such as the sum of its environmental actions, the sum of actions in the investments in equipment towards environmental issues, and total expenditure for the purchase of equipment for environmental actions). Possible mechanisms are international standardization, national certification, and strong enforcement of environmental regulations from export market engagement.

We analyze non-cooperative environmental policy when the only strategic interaction between countries is through bilateral transboundary pollution, i.e., countries are closed or small open economies. Under simultaneous moves, there is no carbon leakage. However, in the sequential-move game, carbon leakage occurs; the leader sets its pollution tax lower than that in the simultaneous-move game and lower than the marginal damage from own pollution, while the follower sets its tax higher than that in the simultaneous-move game. The only motive behind the leader's underregulation of own pollution is to reduce the incidence of transboundary pollution from the follower. If pollution is a pure global public bad, aggregate pollution is higher in the sequential-move game than in the simultaneous-move game. The leader (follower) obtains higher (lower) welfare than that under simultaneous moves. Hence, if countries can choose to be leaders or followers, they choose to move first to set environmental taxes.

This paper explores the interaction between regional integration and the environment in a formal three-country, three-good model which incorporates pollution. Our main findings are: (1) whether preferential trading improves welfare depends critically on the level of domestic pollution charge extant and the direction of trade; (2) the introduction of preferential trading may lower welfare even when the pollution policy is chosen optimally; and (3) coordination of environmental policies only makes sense when pollution is transnational.

This paper explores the driving forces behind household waste generation in the Portuguese municipalities. The focus of the analysis is to empirically test the validity of the waste Kuznets curve (wKc) hypothesis, which postulates an inverted U-shaped relationship between waste generation and economic activity. Panel data is collected for 307 municipalities over the 2009–2018 period. Estimating the fixed-effects model and its dynamic versions of the waste generation equation, the decoupling hypothesis is confirmed, although it is only observed in the richest region of Lisbon and three other municipalities. Results suggest that the productive structure of the local economies is important for explaining waste generation behavior. Population ageing contributes negatively to waste generation, while population density and the development dichotomy are not important drivers in this process. Finally, tourism inflows have a positive effect on municipal waste generation, although the size of the impact is minimal.

In this study we investigate the effectiveness of environmental regulation in a large developing country. We construct a panel of 3,436 major toxics polluters from 2004 to 2015 using detailed plant-specific data on toxics releases, inspections, and fines, across Mexico. Our results show that regulators target polluters who are significantly non-compliant and impose higher fines on them. This has implications for the cost efficiency of monitoring and regulatory enforcement. An additional priority violation increases current toxics inspections, fines, and amount of fines by 7, 5 and 18 per cent, respectively. An additional priority violation followed by fines imposed on the plant results in a reduction in annual toxics releases by more than 50 per cent. Higher fines imposed on other major facilities in the same municipality induce plants to reduce the annual release of toxic pollutants by 0.1 per cent. Finally, inspections and fines increase the likelihood of reporting toxics releases.

This paper quantifies the effects of the determinants of intersectoral labor mobility and the effect of intersectoral labor mobility on deforestation in Ghana over the period 1970–2008. A cointegration and error correction modeling approach is employed. The empirical results show that labor mobility from the agricultural to the non-agricultural sector exerts negative effects on deforestation in Ghana in the long run and short run. Relative agricultural income exerts a significant negative effect on intersectoral labor mobility in the long run. Deforestation is influenced positively by population pressure, the price of fertilizer and rainfall, whereas access to irrigation infrastructure exerts a negative effect in the long run. In the short run, real producer prices of cocoa and maize exert significant positive effects on deforestation whereas access to irrigation infrastructure exerts a negative significant effect. Fruitful policy recommendations based on the empirical magnitudes and directions of these effects are made in this paper.

This paper uses a continuous-time overlapping-generations model with endogenous growth and pollution accumulation over time to study the link between longevity and global warming. It is seen that increasing longevity accelerates climate change in a business-as-usual scenario without climate policy. If a binding emission target is set exogenously and implemented via a cap-and-trade system, the price of emission permits is increasing in longevity. Longevity has no effect on the optimal solution of the climate problem if perfect intergenerational transfers are feasible. If these transfers are absent, the impact of longevity is ambiguous.

Developing countries experience both household air pollution resulting from the use of biomass fuels for cooking and industrial air pollution. We conceptualise and estimate simultaneous exposure to both outdoor and household air pollution by adapting the Total Exposure Assessment model from environmental health sciences. To study the relationship between total exposure and health, we collected comprehensive data from a region (Goa) in India that had extensive mining activity. Our data allowed us to apportion individuals’ exposure to pollution in micro-environments: indoor, outdoor, kitchen, and at work. We find that higher cumulative exposure to air pollution is positively associated with both self-reported and clinically- diagnosed respiratory health issues. Households in regions with higher economic (mining) activity had higher incomes and had switched to cleaner cooking fuels. In other words, household air pollution due to higher biomass use had been substituted away for outdoor air pollution in regions with economic activity.

Policies designed to control greenhouse gases imply domestic tradeoffs and international externalities, which lead to both domestic and international conflicts, influencing their feasibility and implementations. Our paper investigates two quantitative aspects within this debate. We intend to quantify the impact of: (a) the internalization of international externalities; and (b) the damage associated with a short-term view of climate policies. In this respect, we adopt the innovative (in this field) idea of model predictive control to formalize moving-horizon policy strategies and, thus, to build counterfactuals characterized by a different horizon for all policymakers.

Many terrorist organizations around the world seek shelter in forests and this paper tries to address the impact of this phenomenon on forest conservation. We construct a framework to measure the social loss when a terrorist lives in the forest and has full control over the forest resources. We also consider a game between the terrorists and the government when the government tries to combat them to recover the social loss. We characterize the equilibrium of the game in which the terrorist chooses the optimum rotation length of the forest and the government chooses the optimum combat-effort. We derive the impact of two popular policy measures such as strengthening the combat operations and restricting the sale of timber by the terrorist groups in the market, on forest conservation and find both to be negative.

This paper re-examines the pollution haven hypothesis (PHH) by taking environmental regulation in ambient regions as a critical determinant concurrent with own regulation. Exploiting the Two Control Zones policy in China as a quasi-natural experiment, we find that both the curbing effect of the local environmental regulation and the spillover effect of ambient regions affect high-polluting foreign direct investment (FDI) location. Moreover, reallocated FDI results in redistributing instead of reducing pollutant emissions. Our evidence enriched by spatial spillover primarily supports the PHH in the context of China. It suggests a national-wide coordinated environmental policy with a unified goal performs better than separately implementing stringent regulations in highly polluted areas.

This paper empirically investigates the economic effects of environmental activities. To be specific, it investigates the interactive influence of firms' environmental management and environmental innovation on their productivity. We consider both internal and external environmental management practices of global firms observed from 41 countries between 2017 and 2019. We also consider both inputs and outputs of firms' innovation activities that aim to reduce environmental impacts. Multiple indices are constructed to comprehensively evaluate firms' environmental activities, and productivity is estimated with a semi-parametric method. We find that environmental management and environmental innovation are directly correlated to each other and both substantially promote productivity; however, they tend to substitute each other's positive effects on productivity. Other variables such as globalization, government, labor inputs, and informal competition strongly affect firm productivity too.

Green income accounting models are designed to appropriately value changes in a country's natural resource (natural capital) base. However, green NNP is useful as a guide for domestic and international policy only to the extent that it accurately reflects the economic goals and policy options of policy makers. For example, international policy designed to slow natural capital depletion in a developing country is more effective if policy makers recognize the developing country's perceived income effects of the policy. Traditional green accounting models do not satisfy this criterion because they are based on the assumption that policy makers are either not concerned with the distributional consequences of policies, and/or are not limited in the instruments available to them. We present an alternative green NNP measure that reflects distributional goals and policy implementation. Using this measure, the depletion (accumulation) of natural capital stocks in excess of economically efficient rates may increase income.

This paper seeks to understand the link between resource governance and investor expectations in resource-rich countries. We test whether voluntary membership in the Extractive Industries Transparency Initiative (EITI), a public-private partnership that promotes transparency and accountability in the extractives sector, behaves as a credible signalling mechanism to investors that governments in resource-rich countries can manage resource revenue and adhere to sustainable fiscal policies in the medium and long run. Using an interrupted time series analysis coupled with a fixed effects model, we examine whether investor expectations on the price of sovereign debt behave as a credible signalling mechanism in the presence of certain conditions. Results indicate that in some cases there is a significant change in spread on the default price of sovereign debt as a result of announcement of either EITI candidacy or EITI compliance. However, it is clear that EITI membership alone is not a sufficient signal to investors that a country can effectively manage its resource revenues in the long run because the result of EITI implementation is heavily influenced by country-specific conditions.

In familiar models, a decrease in the friction facing mobile factors (e.g., lowering their adjustment costs) increases a coordination problem, leading to more circumstances where there are multiple equilibria. We show that a decrease in friction can decrease coordination problems when a production externality arises from a changing stock, e.g. of pollution or knowledge. In general, the relation between the amount of friction that mobile factors face and the likelihood of multiple equilibria is non-monotonic.

This paper studies the implications of distortions in intertemporal margins for the conduct of climate policy. We do so by introducing a framework that combines a standard two-period overlapping generations (OLG) model with a tractable model of household heterogeneity, in which over-accumulation of capital arises from uninsurable idiosyncratic labor income risk. We illustrate that market-based climate policies must be adjusted when the government cannot provide full insurance to households by taxing only capital and is constrained to transfer resources across generations for risk-sharing. In a numerical exercise, we find that idiosyncratic risk leads to an optimal capital income tax rate of 35 per cent and a carbon price 7.5 per cent lower than its first best.