Many public water systems are struggling to locate and replace lead pipes that distribute drinking water across the United States. This study investigates factors associated with customer participation in a voluntary lead service line (LSL) inspection and replacement program. It also uses quasi-experimental and experimental methods to evaluate the causal impacts of two grant programs that subsidized homeowner replacement costs on LSL program participation. LSLs were more prevalent in areas with a higher concentration of older housing stock, Black and Hispanic residents, renters, and lower property values. Owner-occupied and higher valued properties were more likely to participate in the LSL program. Results from the two grant program evaluations suggest that subsidies for low-income homeowners to cover LSL replacement costs can significantly boost participation, but only when the programs are well publicized and easy to access. Even then, there was still significant non-participation among properties with confirmed LSLs.

There is growing recognition of the connection between ecosystem conservation and human health. For example, protection of tropical forests can affect the spread of infectious diseases, water quality, and dietary diversity, while forest loss can have important consequences for respiratory health due to the use of fire for converting land to alternative uses in many countries. Studies demonstrating links between ecosystems and health often conclude with recommendations to expand policies that protect natural ecosystems. However, there is little empirical evidence on the extent to which conservation policies actually deliver health benefits when they are implemented in real contexts. We estimate the effects of protected areas (PAs), the dominant type of conservation policy, on hospitalizations for respiratory illness in the Brazilian Amazon biome. We find that doubling upwind PAs reduces PM by 10% and respiratory hospitalizations by 7% in the months of most active biomass burning. Brazil has an extensive network of PAs, but investments in management and enforcement have declined in recent years. Forest fires have increased dramatically over the same period. We estimate that the value of the health benefits exceed current average expenditures on PA management for the 1/3 of PAs with the largest local populations, although not for PAs in more remote locations. Our findings highlight how quantifying the contributions to the wellbeing of local populations can support conservation objectives, even if global environmental benefits are not a high priority for decision makers.

Methane directly contributes to air pollution, as an ozone precursor, and to climate change, generating physical and economic damages to different systems, namely agriculture, vegetation, energy, human health, or biodiversity. The methane-related damages to climate, measured as the Social Cost of Methane, and to human health have been analyzed by different studies and considered by government rulemaking in the last decades, but the ozone-related damages to crop revenues associated to methane emissions have not been incorporated to policy agenda. Using a combination of the Global Change Analysis Model and the TM5-FASST Scenario Screening Tool, we estimate that global marginal agricultural damages range from ~423 to 556 $2010/t-CH, of which 98 $2010/t-CH occur in the USA, which is the most affected region due to its role as a major crop producer, followed by China, EU-15, and India. These damages would represent 39-59% of the climate damages and 28-64% of the human health damages associated with methane emissions by previous studies. The marginal damages to crop revenues calculated in this study complement the damages from methane to climate and human health, and provides valuable information to be considered in future cost-benefits analyses.

The Anthropocene can be read as being the era when the demand humanity makes on the biosphere's goods and services-humanity's 'ecological footprint'-vastly exceeds its ability to supply it on a sustainable basis. Because the 'ecological' gap is met by a diminution of the biosphere, the inequality is increasing. We deploy estimates of the ecological gap, global GDP and its growth rates in recent years, and the rate at which natural capital has declined, to study three questions: (1) at what rate must efficiency at which Nature's services are converted into GDP rise if the UN's Sustainable Development Goals for year 2030 are to be sustainable; (2) what would a sustainable figure for world population be if global living standard is to be maintained at an acceptably high level? (3) What living standard could we aspire to if world population was to attain the UN's near lower-end projection for 2100 of 9 billion? While we take a global perspective, the reasoning we deploy may also be applied on a smaller scale. The base year we adopt for our computations is the pre-pandemic 2019.

The COVID-19 pandemic was associated with short-term air quality improvements in many countries around the world. We study whether the degree of democracy and political institutions played a role. We provide novel empirical evidence from 119 countries. A given stringency of COVID-19 containment and closure policies had a stronger effect on air quality in more democratic countries, and in countries with majoritarian rather than proportional electoral rules. Our estimates suggest that the improvement in air quality was around 57% greater in majoritarian systems than in proportional systems. Confidence in government, trust in politicians, and social capital also affected outcomes.

This paper investigates how carbon taxes affect emissions by examining British Columbia's revenue-neutral carbon tax in the manufacturing sector. We theoretically demonstrate that carbon taxes can achieve emission reductions while increasing production. Recycling carbon tax revenues to lower corporate income tax rates encourages investments, allowing plants to emit less per unit of output. Using detailed confidential plant-level data, we evaluate this theoretical prediction by exploiting the treatment intensity through plants' emission intensity. We find that the carbon tax lowers emissions by 4 percent. Furthermore, we find that the policy had a positive output effect and negative emission intensity effect, suggesting that the carbon tax encouraged plants to produce more with less energy. We provide initial evidence showing how a revenue-neutral carbon tax may achieve emission reductions while stimulating the economy.

The "Dasgupta Review" of the economics of biodiversity (Dasgupta 2021) identifies many factors that threaten the ecological sustainability of our economies. This article examines how two policy failures - the and of nature - influence global land use change and terrestrial biodiversity loss. If natural areas are priced too cheaply, then converting them to agriculture, forestry and other land uses is less costly than protecting or preserving habitats. Underfunding nature further reduces the incentives for conservation and restoration. The current global funding gap for biodiversity is just under $900 billion annually, and especially impacts developing countries. Ending the underpricing of natural landscape requires removing environmentally harmful subsidies and adopting policies that place an additional cost on the use of land and natural resources or on pollution. Overcoming the funding gap means expanding public and private sources of financing nature, particularly for poorer countries, such as biodiversity offsets, payments for ecosystem services, debt-for-nature swaps, green bonds, sustainable supply chains and international environmental agreements. Using the example of peatlands, the article shows how such a comprehensive global strategy can be built.

A novel structural model is developed to understand the determinants of green bond prices and the so-called 'greenium', that is, the premium that bondholders are willing to pay to invest in green securities rather than conventional ones. The presence of a greenium makes green bonds relatively cheap vehicles to fund environmentally sustainable projects and thus contributes to the shift to a green economy. Yet, evidence on the greenium is mixed and the determinants of green bond yields are not fully understood. In this model two sources of uncertainty are introduced, that is, of cash flows of the firm and of the effectiveness of the financed green projects. The adoption of two risk factors brings in some mathematical complexity but allows for a better modelling of the multi-facet nature of these financial instruments. Our model is rich enough to generate both a positive and a negative premium, as both have been detected in the empirical literature. Thus, we shed light on possible heterogeneity concerning the existence of a greenium in the green bond universe. Moreover, we show how green bonds affect the issuer's creditworthiness, depending on the correlation of the green project with the core business of the firm and study their impact on investors' portfolio allocation.

We estimate the U.S. temperature response profile (TRP) for COVID-19 and show it is highly sensitive to temperature variation. Replacing the erratic daily death counts U.S. states initially reported with counts based on death certificate date, we build a week-ahead statistical forecasting model that explains most of their daily variation (R = 0.97) and isolates COVID-19's TRP ( < 0.001). These counts, normalized at 31 °C (U.S. mid-summer average), scale up to 160% at 5 °C in the static case where the infection pool is held constant. Positive case counts are substantially more temperature sensitive. When temperatures are declining, dynamic feedback through a growing infection pool can substantially amplify these temperature effects. Our estimated TRP can be incorporated into COVID-related planning exercises and used as an input to SEIR models employed for longer run forecasting. For the former, we show how our TRP is predictive of the realized pattern of growth rates in per capita positive cases across states five months after the end of our sample period. For the latter, we show the variation in herd immunity levels implied by temperature-driven, time-varying R series for the Alpha and Delta variants of COVID-19 for several representative states.

This study explores the nexus between digital and green transformations-the so-called "twin" transition-in European regions in an effort to identify the impact of digital and environmental technologies on the greenhouse gas (GHG) emissions originating from industrial production. We conduct an empirical analysis based on an original dataset that combines information on environmental and digital patent applications with information on GHG emissions from highly polluting plants for the period 2007-2016 at the metropolitan region level in the European Union and the UK. Results show that the local development of environmental technologies reduces GHG emissions, while the local development of digital technologies increases them, albeit in the latter case different technologies seem to have different impacts on the environment, with big data and computing infrastructures being the most detrimental. We also find differential impacts across regions depending on local endowment levels of the respective technologies: the beneficial effect of environmental technologies is stronger in regions with large digital technology endowments and, conversely, the detrimental effect of digital technologies is weaker in regions with large green technology endowments. Policy actions promoting the "twin" transition should take this evidence into account, in light of the potential downside of the digital transformation when not combined with the green transformation.

This study mainly investigates 14 Asia Pacific economies' environmental efficiency. Departing from previous studies ignoring environmental technology heterogeneity, we evaluate environmental efficiency through metafrontier super epsilon based model (EBM). We compare environmental efficiency convergence across different regions via unit root test and truncated regressions. We analyze how trade competitiveness impact environmental efficiency. We also explore effect of green technology and human capital on environmental efficiency from the perspective of endogenous growth. Our findings indicate that stochastic and absolute β-convergence tendencies were confirmed. Human capital can enhance environmental efficiency convergence. Trade competitiveness showed a mixed impact on environmental efficiency convergence, confirming scale, composition and technical effects. It is better to enhance human capital, strengthening environmental regulations under international competition as well as relentlessly pursuing green industrialization across Asia Pacific countries.

Given the drastic changes in the environment, resilience is a key focus of ecosystem management. Yet, the quantification of the different dimensions of resilience remains challenging, particularly for long-lived systems such as forests. Here we present an analytical framework to study the economic resilience of different forest management systems, focusing on the rate of economic recovery after severe disturbance. Our framework quantifies the post-disturbance gain in the present value of a forest relative to a benchmark system as an indicator of economic resilience. Forest values and silvicultural interventions were determined endogenously from an optimization model and account for risks affecting tree survival. We consider the effects of differences in forest structure and tree growth post disturbance on economic resilience. We demonstrate our approach by comparing the economic resilience of continuous cover forestry against a clear fell system for typical conditions in Central Europe. Continuous cover forestry had both higher economic return and higher economic resilience than the clear fell system. The economic recovery from disturbance in the continuous cover system was between 18.2 and 51.5% faster than in the clear fell system, resulting in present value gains of between 1733 and 4535 € ha. The advantage of the continuous cover system increased with discount rate and stand age, and was driven by differences in both stand structure and economic return. We conclude that continuous cover systems can help to address the economic impacts of increasing disturbances in forest management.

Economists typically estimate the average treatment effect on the treated (ATT) when evaluating government programs. The economic interpretation of the ATT can be ambiguous when program outcomes are measured in purely physical terms, as they often are in evaluations of environmental programs (e.g., avoided deforestation). This paper presents an approach for inferring economic impacts from physical outcomes when the ATT is estimated using propensity-score matching. For the case of forest protection, we show that a protection program's ex post economic impact, as perceived by the government agency responsible for protection decisions, can be proxied by a weighted ATT, with the weights derived from the propensity of being treated (i.e., protected). We apply this new metric to mangrove protection in Thailand during 1987-2000. We find that the government's protection program avoided the loss of 12.8% of the economic value associated with the protected mangrove area. This estimate is about a quarter smaller than the conventional ATT for avoided deforestation, 17.3 percentage points. The difference between the two measures indicates that the program tended to be less effective at reducing deforestation in locations where the government perceived the net benefits of protection as being greater, which is the opposite of the relationship that would characterize a maximally effective program.

The frequency of hot days in much of the world is increasing. What is the impact of high temperatures on productivity? Can technology-based adaptation mitigate such effects of climate change? We provide some answers to these questions by examining how high outdoor temperatures affect a high-technology, precision manufacturing setting. Exploiting individual-level data on the quantity and quality of work done across 35,190 worker-shifts in a leading NYSE-listed silicon wafer maker in China, we evidence a negative effect of outdoor heat on productivity. The effects are large: in our preferred linear specification, an increase in wet bulb temperature of C causes a reduction in output of 8.3%. Temperature effects exist even though the manufacturer's work-spaces are indoors and protected by high-quality climate control systems. Results are not driven by extreme weather events and are robust to alternative modelling approaches. They illustrate the potential future adverse economic effects of climate change in most of the industrialised world.

How do we motivate cooperation across the generations-between parents and children? Here we study voluntary climate action (VCA), which is costly to today's decision-makers but essential to enable sustainable living for future generations. We predict that "offspring observability" is critical: parents will be more likely to invest in VCA when their own offspring observes their action, whereas when adults or genetically unrelated children observe them, the effect will be smaller. In a large-scale lab-in-the-field experiment, we observe a remarkable magnitude of VCA: parents invest 82% of their 69€ endowment into VCA, resulting in almost 14,000 real trees being planted. Parents' VCA varies across conditions, with the largest treatment effect occurring when a parent's own child is the observer. In subgroup analyses, we find that larger treatment effects occur among parents with a high school diploma. Moreover, VCA for parents who believe in climate change is most affected by the presence of their own child. In contrast, VCA of climate change skeptical parents is most influenced by the presence of children to whom they are not related. Our findings have implications for policy-makers interested in designing programs to encourage voluntary climate action and sustaining intergenerational public goods.

The use of recycled plastics is critical in the transition to a circular economy. However, for certain types of plastics, the recycling process is economically unviable. Government-driven incentives, such as a policy imposing a minimum fraction of recycled plastics to be used in production processes of plastic goods, offer an exit from this impasse. In this paper, we study how a firm's investment behavior is affected by policy uncertainty governing the introduction of such a regulatory measure. Specifically, we adopt a real option approach to study the two-step investment of a firm in its transition to the use of recycled plastics. A clear trade-off can be distinguished. On the one hand, investing early causes unnecessary profit losses before the policy implementation. On the other hand, a lack of investment leads to market exclusion after the policy implementation. For our case study on the use of recycled polyethylene, we find that firms plan their first investment step, so that the timing of the second investment step approximates their projection on the policy implementation time. Moreover, we find that the firm's value is maximized when the capacity of the first investment is smaller than the capacity of the second investment.

We document non-linear stock effects in the relationship linking emerging technology adoption and network infrastructure increments. We exploit 2010-2017 data covering nascent to mature electric vehicle (EV) markets across 422 Norwegian municipalities together with two complementary identification strategies: control function regressions of EV sales on flexible polynomials in the stock of charging stations and charging points, and synthetic control methods to quantify the impact of initial infrastructure provision in municipalities that previously had none. Our results are consistent with indirect network effects and the behavioral bias called "range anxiety," and support policies targeting early infrastructure provision to incentivize EV adoption.

We show that an appropriately-designed "Refunding Club" can simultaneously solve both free-riding problems in mitigating climate change-participating in a coalition with an emission reduction target and enduring voluntary compliance with the target once the coalition has been formed. Countries in the Club pay an initial fee into a fund that is invested in assets. In each period, part of the fund is distributed among the Club members in relation to the emission reductions they have achieved, suitably rescaled by a weighting factor. We show that an appropriate refunding scheme can implement any feasible abatement path a Club wants to implement. The contributions to the initial fund can be used to disentangle efficiency and distributional concerns and/or to make a coalition stable. Making the grand coalition stable in the so-called "modesty approach" requires less than 0.5% of World GDP. Finally, we suggest ways to foster initial participation, to incorporate equity concerns with regard to developing countries, and ways to ease the burden to fill the initial fund.

Coastal amenities are public goods that represent an important attraction for tourism activities. This paper studies the capitalization effects of beach characteristics using hedonic pricing methods. We examine the implicit economic value of several beach characteristics like sand type, width, longitude, accessibility, or frontage in the Airbnb rental market. Using data for 16,663 Airbnb listings located in 67 municipalities of the Balearic Islands (Spain) during the summer of 2016, together with detailed information about the attributes of 263 beaches, our modelling approach considers interaction terms between the beach amenities and distance to the closest beach. Controlling for a set of listings' structural characteristics, host attributes and municipality fixed effects, we find that Airbnb guests attach economic value to beach length, the presence of vegetation, the type of coastal frontage and beach accessibility and exclusivity. However, there is no evidence of capitalization effects associated with beach width or the type of sand.

While instruments to price congestion exist since the 1970s, less than a dozen cities around the world have a cordon or zone pricing scheme. Geneva, Switzerland, may be soon joining them. This paper builds on a detailed review of the existing schemes to identify a set of plausible design options for the Geneva congestion charge. In turn, it analyzes their acceptability, leveraging a large survey of residents of both Geneva and the surrounding areas of Switzerland and France. Our original approach combines a discrete choice experiment with randomized informational treatments. We consider an extensive set of attributes, such as perimeter, price and price modulation, use of revenues, and exemption levels and beneficiaries. The informational treatments address potential biased beliefs concerning the charge's expected effects on congestion and pollution. We find that public support depends crucially on the policy design. We identify an important demand for exemptions, which, albeit frequently used in the design of environmental taxation, is underexplored in the analysis of public support. This demand for exemptions is not motivated by efficiency reasons. It comes mostly by local residents, for local residents. Further, people show a marked preference for constant prices, even if efficiency would point to dynamic pricing based on external costs. Hence, we highlight a clear trade-off between efficiency and acceptability. However, we also show, causally, that this gap can in part be closed, with information provision. Analyzing heterogeneity, we show that preferences vary substantially with where people live and how they commute. Even so, we identify several designs that reach majority support.