We examine a common pool resource (CPR) where appropriations deteriorate the quality of the resource and, thus, its impact on the exploitation of the CPR. We focus on two settings: (i) firms use the CPR without abatement efforts, and (ii) abatement is allowed. We provide comparisons between these two settings and identify socially optimal appropriation levels. We find that (i) higher quality of the CPR could induce firms to overuse the resource, and (ii) first-period appropriations with abatement decrease in the regeneration rate. However, abatement induces an overuse of the resource when the quality of the CPR improves.

With the green, circular, and low-carbon concept, eco-industrial parks are regarded as key drivers for maximizing environmental and economic benefits. Based on the panel data of 276 cities in China from 2007 to 2018, this paper regards the establishment of eco-industrial parks as a quasi-natural experiment, and employs the difference-in-differences method to test the impact of eco-industrial parks on urban haze pollution. We find that eco-industrial parks significantly reduce urban haze pollution and the conclusion holds with robustness tests. Heterogeneity analysis shows that the effect of eco-industrial parks on haze pollution is more pronounced in eastern and resource-based cities. Finally, mechanism analysis indicates that eco-industrial parks reduce urban haze pollution mainly by promoting technological innovation, upgrading industrial structure, and strengthening urban environmental regulations.

Stunting, a manifestation of chronic malnutrition, is widespread in India. This, coupled with biased preferences of parents towards their eldest sons, has led to stunting and underweight among girls that grows sharply with increasing birth order. We study the impact of an environmental water pollutant on child growth outcomes in arsenic contaminated regions of India. Using a large, nationally representative household survey and exploiting variation in soil textures across districts as an instrument for arsenic, we find that arsenic exposure beyond the safe threshold level is negatively associated with height-for-age and weight-for-age. Negative effects are larger for girls who are born at higher birth orders relative to the eldest. This, we argue, suggests that the lack of adequate nutrition and health care during early childhood can make girls more vulnerable to external environmental hazards due to their lower immunity and underdeveloped bodies.

Water recreation is valuable to people, and its value can be affected by changes in water quality. This paper presents the results of a revealed preference survey to elicit coastal New England, USA, residents’ values for water recreation and water quality. We combined the survey responses with a comprehensive data set of coastal attributes, including in-water and remotely sensed water quality metrics. Using a travel cost model framework, we found water clarity and the bacterial conditions of coastal waters to be practical water quality inputs to economic analysis, available at appropriate scales, and meaningful to people and their behavior. Changes in clarity and bacterial conditions affected trip values, with a $4.5 change for a meter in clarity in Secchi depth and $0.08 for a one-unit bacteria change in colony-forming units per 100 ml. We demonstrate the large potential value of improving water quality through welfare analysis scenarios for Narragansett Bay, Rhode Island, and Cape Cod, Massachusetts, USA. The paper discusses lessons for improving the policy relevance and applicability of water quality valuation studies through improved water quality data collection, combined with the application of scalable analysis tools for valuation.

This paper analyzes inequities in the distribution of air pollution in Mexico at the detailed scale of localities. We find that air pollution increases in areas that experience a decline in socioeconomic status. We utilize 15 years of remote sensing data on fine particulate matter (smaller than 2.5 microns) for more than 116,500 localities across Mexico. Our panel data models show that localities that face a decline in socioeconomic status experience a 0.24–0.83 per cent increase in annual mean pollution concentrations. Our results hold up to controlling for changes within each municipality and instrumenting with broader municipality level socioeconomic status to test for ecological fallacy. We find that local air pollution inequities are reduced by political participation channels, but not as much by increased share of manufacturing activities due to polluters locating in poorer neighborhoods. Highly dense, urban municipalities witness higher inequities most likely due to traffic, construction, and agricultural fires.

Compromised kidney function is associated with an array of environmental contaminants and pathogens that may be considered for regulation. However, there are few valuation estimates for kidney effects for use in benefit–cost analyses, particularly willingness-to-pay estimates. This paper is one of several surveys valuing morbidity developed by the OECD Surveys to elicit Willingness-to-pay to Avoid Chemicals-related negative Health Effects project, which aims to improve the basis for benefit–cost analyses. We report the results of a stated preference survey valuing reduced the risk of symptomatic chronic kidney disease, filling an important gap in the valuation literature and addressing a need for applied benefits analysis of chemical regulation. The survey was administered to representative samples in each of 10 countries: Canada, Chile, China, Denmark, Germany, Italy, Norway, Türkiye, the United Kingdom, and the United States. The mean (median) WTP for an average reduction of 3.5 in 1,000 of the risk of serious kidney disease over 5 years is $2,609 ($764), corresponding to a mean (median) value per statistical case (VSC) of chronic kidney disease of $805,000 ($224,000). The mean VSC varies between $700,000 for Canada and $1,200,000 for Türkiye.

This study analyzed the impact of environmental regulation, specifically the “2+26” regional strategy for air quality improvement, on corporate research and development (R&D) investment in China. We developed a theoretical model based on the argument that R&D investment rises with regulation intensity. Using 2010–2019 data from China's listed companies located in the Beijing-Tianjin-Hebei region and its surrounding areas, we treated the $2+26$ policy as a quasi-natural experiment and adopted a difference-in-differences approach to explore its effect on firm R&D input. A positive association was observed between firm R&D intensity and the $2+26$ strategy's implementation in major polluting industries. Our results provide in-depth insights into the $2+26$ strategy's economic consequences, which are potentially of interest to both scholars and policymakers.

The Black Sea is an enclosed sea surrounded by six coastal countries, of which Bulgaria and Romania are EU Member States. The Convention for the Protection of the Black Sea Against Pollution was ratified in 1994 by all coastal countries. This Convention is the only European regional sea convention to which the EU is not a Party. While Romania and Bulgaria are in favor of EU accession to the Convention, Turkey, Russia and Ukraine thus far have blocked accession. In this paper, we develop a negotiation model with endogenous enforcement and exogenous fraud to analyze the different positions of groups of coastal countries relative to EU accession to the Convention. Our model contributes to defining a proposal that the EU could make to the opposing states such that they accept the EU as a Party to the Convention. In that context we investigate also whether Romania and Bulgaria might be better off delegating their decision power to the EU, rather than retaining their individual voting rights.

From 2013 to 2015, China gradually established nationwide air quality monitoring stations and began to release real-time air pollution information to the public. We exploit step-by-step environmental regulations across cities to identify the effects of information disclosure on air pollution. We find that information disclosure significantly decreases the concentrations of PM2.5 and PM10. Through mechanism analysis, we find that information disclosure raises the level of government awareness, increases the amount of investments in air pollution prevention and control, stimulates green innovation, and forces heavily polluting enterprises to shut down. Additionally, we find evidence that the effectiveness of information disclosure varies across cities.

This article compares the U.S. Environmental Protection Agency’s (EPA) ex ante cost analysis of its 1995 Large Municipal Waste Combustor (MWC): New Source Performance Standards and Emissions Guidelines rule to an ex post assessment of its cost. Unlike many retrospective cost analyses, where ex post assessments are limited due to lack of data on compliance costs, this case study is unique because we located and used plant-level survey data from the U.S. Department of Energy and Governmental Advisory Associates in a comparison of ex ante and ex post costs of individual MWCs. We find the ex post capital expenditures for nitrogen oxide control systems are typically lower than the EPA ex ante estimates, while the ex post capital expenditures for mercury control systems tend to be higher than the EPA ex ante estimates. Finally, while we find a few outliers, the average ratio of ex post to ex ante capital expenditures for particulate matter and sulfur dioxide emissions control is near unity.

In addition to effects from greenhouse gases, climate change is affected by short-lived climate forcers (SLCF). These are often co-emitted with carbon dioxide, and some are regulated air pollutants. In the governance of these pollutants, established estimates of damage costs of pollution inform benefit–cost analyses. However, climate change impact of SLCFs is omitted from these estimates. The purpose of this study is to calculate economic damage costs of air pollutants’ effect on climate change and compare these with established damage costs. Focus is on European emissions governed in the EU National Emission Reduction Commitments Directive during 2020–2050. We use well-known SLCF emission metrics and multiply with literature values on social costs of methane to calculate climate damage costs of SLCFs. The results indicate that average absolute climate damage costs are highest for black carbon ($59,500/ton in 2050) and lowest for nonmethane volatile organic compounds ($661/ton). Our indicative values are likely underestimations. Indicative climate damage costs are usually lower than established damage costs, with notable exceptions. We propose that more detailed studies are necessary, and that inclusion of climate damage costs into economic valuation of SLCFs is important for future air pollution and climate benefit–cost analyses.

This paper presents research on the benefits of removing legacy pollutants in Great Lakes Areas of Concern (AOCs). AOCs are heavily polluted coastal locations identified as priorities for restoration under the Great Lakes Water Quality Agreement (GLWQA) between the United States and Canada. Legacy pollutants pose a human and environmental health risk that can limit opportunities for redevelopment, recreation, and wildlife habitats. The AOC program improves water quality through remediation and restoration projects, which may increase the desirability of living in proximity to AOCs. In this paper, we estimate the economic benefit of cleaning up part of the Milwaukee Estuary AOC with a two-part sorting model using panel data on neighborhood populations and moving decisions before and after a series of remediation actions. Our results provide evidence that residents value remediation, though estimates are sensitive to the definition of the cleanup area. The average annual benefit for a household living near the AOC just downstream of cleanup is $268, with a range of $28-$499 depending on their race and tenure group; the aggregate benefit is $350 million. Results indicate a large difference in benefits between renters and owners but statistically insignificant differences between race groups.

Have people in China moved from more polluted cities to less polluted ones? We merge city-level air pollution data from 2003 to 2016 with migration data from a nationally representative sample. We estimate a linear model and a conditional logit model, and employ air pollution from distant sources carried by the wind as an instrument for local air pollution to address the potential concern that air pollution is endogenous to local economic activities. We make a distinction between out-migration that left some family members behind and whole-household out-migration, and discover that the former was more responsive to air pollution than the latter. The decline in net in-migration in response to an increase in air pollution was driven by both a decrease in gross in-migration and an increase in gross out-migration. We find suggestive evidence that out-migrants brought their children with them, but some aged parents were left behind.

This paper estimates the effect of environmental remediation on housing prices in the Milwaukee Estuary Area of Concern (AOC) using a hedonic analysis of individual arms-length sales before and after a major remediation action between 2011 and 2015. Our design leverages this before-after comparison as well as the proximity of homes to remediation and the AOC boundary. Measuring the effect of AOCs in the housing market has always been a difficult task, given that water in AOCs can provide a mix of amenities and disamenities. Indeed, we find little evidence of a negative proximity effect when applying hedonic analysis to cross-section data. However, when we apply the analysis to a repeated cross section in a quasi-experimental framework, we find statistically significant evidence that living near the affected part of the AOC became more desirable after cleanup.

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.

Economic and health benefits assessments of air quality changes often quantify and report changes in deaths at a given point in time. The typical approach uses a method that attributes air pollution-related health impacts to a single year air quality change (or “pulse”). The perspective on benefits from these static pulse analyses can be enhanced by conducting a dynamic population assessment using life tables. Such analyses can provide a richer characterization of health risks across a population over a multiyear time horizon. In this article, we use the life table approach to quantify cumulative counts of reductions in PM-attributable deaths and life-years gained due to overlapping impacts of PM2.5 changes over a multiyear period, using case studies of air quality improvements in the USA and Chile. Our comparison of health risk and economic valuation for the two approaches shows life table analysis can be a valuable adjunct analysis to the pulse approach though both come with their own set of uncertainties and limitations. If applied jointly, they provide a broader characterization of how air quality actions can change populations in terms of life-years lost, life expectancy, and age structure. The value of these metrics is illustrated using case studies with dramatically different air quality reduction trajectories.

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.

Due to COVID-19, many households faced hardships in the spring of 2020 – unemployment, an uncertain economic future, forced separation, and more. At the same time, the number of people who participated in outdoor recreation in many areas increased, as it was one of the few activities still permitted. How these experiences affect the public’s willingness to pay (WTP) for environmental public goods is unknown. During the early months of the pandemic, we conducted a stated preference survey to value statewide water quality improvements in Delaware. While a majority of participants report experiencing hardship of some sort (economic, emotional, etc.), mean household WTP declined by only 7 % by May 2020.

Environmental policies are characterized by salient short-term costs and long-term benefits that are difficult to observe and to attribute to the government's efforts. These characteristics imply that citizens’ support for environmental policies is highly dependent on their trust in the government's capability to implement solutions and commitment to investments in those policies. Using novel survey data from Mexico City, we show that trust in the government is positively correlated with citizens’ willingness to support an additional tax approximately equal to a day's minimum wage to improve air quality and greater preference for government retention of revenues from fees collected from polluting firms. We find similar correlations using the perceived quality of public goods as a measure of government competence. These results provide evidence that mistrust can be an obstacle to better environmental outcomes.

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.