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On social norms and beliefs: A model of manager environmental behavior Resource and Energy Economics (IF 1.829) Pub Date : 2021-02-26 Jorge H. Garcia, Jiegen Wei
A prevailing view in the literature states that social sanctions can support, in equilibrium, high levels of obedience to a costly norm. The reason is that social disapproval and stigmatization faced by the disobedient are highest when disobedience is the exception rather than the rule in society. In contrast, the Bayesian model introduced here shows that, imperfect information causes the expected
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Why is Germany’s energy transition so expensive? Quantifying the costs of wind-energy decentralisation Resource and Energy Economics (IF 1.829) Pub Date : 2021-03-17 Thorsten Engelhorn, Felix Müsgens
This paper discusses the efficiency of promotion schemes for renewable energy sources using the example of onshore wind energy in Germany. We analyse whether the scheme incentivised a cost-minimal capacity build-up by developing a model to derive two cost-minimal benchmark scenarios, which are then compared to the historical capacity build-up between 1995 and 2015. The costs of the two cost-minimising
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Transboundary marine protected areas Resource and Energy Economics (IF 1.829) Pub Date : 2021-03-09 Christopher Costello, Renato Molina
Countries exploiting transboundary natural resources face strong incentives to over-exploit. This basic economic insight has been validated empirically where numerous resources such as water, forests, game, and fisheries are found to be in worse condition than those completely contained in single nations. Attempts to solve this challenge through cross-country cooperation have been largely unsuccessful
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Quantifying landscape externalities of renewable energy development: implications of attribute cut-offs in choice experiments Resource and Energy Economics (IF 1.829) Pub Date : 2021-03-09 Malte Oehlmann, Klaus Glenk, Patrick Lloyd-Smith, Jürgen Meyerhoff
Renewable energy is worldwide seen as a key element necessary to address climate change. However, finding socially acceptable locations for renewable energy facilities and the accompanying infrastructure increasingly often faces fierce opposition. This paper quantifies the landscape externalities of renewable energies employing a choice experiment. In addition, it is investigated how accounting for
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Energy efficiency and heating technology investments: Manipulating financial information in a discrete choice experiment Resource and Energy Economics (IF 1.829) Pub Date : 2021-02-11 Ghislaine Lang, Mehdi Farsi, Bruno Lanz, Sylvain Weber
We elicit homeowners’ willingness to pay (WTP) for energy efficiency and low-carbon technologies in the context of heating appliance replacement. We employ a within-between subject design that involves manipulating information in a two-stage discrete choice experiment (DCE) and use WTP space estimation to identify the role of financial information in reducing fossil fuel use. We find that homeowners’
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Past and present outage costs – A follow-up study of households’ willingness to pay to avoid power outages Resource and Energy Economics (IF 1.829) Pub Date : 2021-01-29 Fredrik Carlsson, Mitesh Kataria, Elina Lampi, Peter Martinsson
Households’ demand for electricity continues to increase. This trend per se should indicate increased disutility from power outages. Additionally, batteries and other back-up systems have been improved, and the frequency and duration of outages have been reduced in many countries. By comparing the results from two stated preference studies on Swedish households’ willingness to pay (WTP) to avoid power
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Testing structural benefit transfer: The role of income inequality Resource and Energy Economics (IF 1.829) Pub Date : 2021-01-19 Jasper N. Meya, Moritz A. Drupp, Nick Hanley
How the valuation of environmental goods is related to income is a key question for economics, but the role of income inequality is often neglected. We study how income inequality affects the international transfer of the estimated value of environmental goods from a study to a policy site—a practice called value or benefit transfer. Specifically, we apply theory-driven, structural transfer factors
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Well-being effects of extreme weather events in the United States Resource and Energy Economics (IF 1.829) Pub Date : 2020-12-14 Mona Ahmadiani, Susana Ferreira
The increase in weather and climate disasters in recent years has prompted an interest in analyzing their consequences and the mitigation and adaptation measures that can help minimize their potentially large impacts on individuals’ welfare. We match thirty-one billion-dollar disasters with individual survey data from the Behavioral Risk Factor Surveillance System to estimate the effect of extreme
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An ecological golden rule Resource and Energy Economics (IF 1.829) Pub Date : 2021-01-19 Ram Fishman, Chandra Kiran B Krishnamurthy
Most renewable biotic resources are subject to random variability in natural growth. We investigate the implications of such variability for long-term management by a risk averse social planner, who maximizes expected long-run utility. In the canonical model of a stochastic fishery, we show that the optimal level of harvesting effort need not necessarily be reduced by variability in stock growth. However
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Rural light pollution from shale gas development and associated sleep and subjective well-being Resource and Energy Economics (IF 1.829) Pub Date : 2021-01-19 Andrew Boslett, Elaine Hill, Lala Ma, Lujia Zhang
The shale oil and gas boom has had large economic, environmental, and social impacts on rural communities in the United States. This study provides novel estimates of the impacts of shale oil and gas development on light pollution in rural areas of the United States. Using nationwide, time-calibrated DMSP-OLS database from 2000 to 2012, we find robust evidence that the shale oil and gas boom significantly
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Permit Markets, Carbon Prices and the Creation of Innovation Clusters Resource and Energy Economics (IF 1.829) Pub Date : 2021-01-31 Hans Gersbach, Marie-Catherine Riekhof
Innovation clusters combining public and private effort to develop breakthrough technologies promise greater technological advances to slow down climate change. We use a multi-country model with an emission trading system to examine whether and how international climate policy can incentivize countries to create such innovation clusters. We find that a minimal carbon price is needed to attract applied
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The impact of smart meters on residential water consumption: Evidence from a natural experiment in the Canary Islands Resource and Energy Economics (IF 1.829) Pub Date : 2021-01-22 Claudio Daminato, Eugenio Diaz-Farina, Massimo Filippini, Noemi Padrón-Fumero
Smart meters can promote behavioral changes and water conservation by improving information and providing feedback about water consumption to households. In this paper, we evaluate a large-scale programme implemented by the municipal water company of La Laguna (Tenerife). Exploiting quasi-experimental variation brought about program, we estimate the effect of water meter replacement on measured water
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Strategic pollution control under free trade Resource and Energy Economics (IF 1.829) Pub Date : 2021-01-13 Bruno Nkuiya, Andrew J. Plantinga
This paper designs a reciprocal dumping model to address the control of industrial pollution between two trading partners. Firms generate transboundary pollution from production and environmental taxes represent the pollution control instrument. We ask whether environmental taxes implemented in a non-cooperative setting are more stringent than the globally efficient level. Relative to the globally
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Environmental regulation and safety outcomes: Evidence from energy pipelines in Canada Resource and Energy Economics (IF 1.829) Pub Date : 2021-01-03 W.D. Walls, Xiaoli Zheng
This paper investigates the effects of more stringent environmental regulation—specifically, paying amortized abandonment fees as accrued and absolute liability for adverse events—on the safety performance of Canadian oil and gas pipelines. We construct a comprehensive dataset that includes pipeline adverse events, throughput, and regulatory intensiveness for fourteen federally-regulated energy pipelines
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Hedging and temporal permit issuances in cap-and-trade programs: The Market Stability Reserve under risk aversion Resource and Energy Economics (IF 1.829) Pub Date : 2020-12-31 Oliver Tietjen, Kai Lessmann, Michael Pahle
Cap-and-trade programs such as the European Union's Emissions Trading System (EU ETS) expose firms to considerable risks, to which the firms can respond with hedging. We develop an intertemporal stochastic equilibrium model to analyze the implications of hedging by risk-averse firms. We show that the resulting time-varying risk premium depends on the size of the permit bank. Applying the model to the
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Human-induced earthquakes, risk salience, and housing values Resource and Energy Economics (IF 1.829) Pub Date : 2020-12-10 J. Wesley Burnett, Christopher Mothorpe
Oklahoma’s households have recently faced several thousand higher-probability but low-impact earthquakes induced by nearby shale gas development. This type of seismic activity is different from natural-occurring earthquakes, which are generally constituted by one, high-loss event. We investigate the mechanisms through which earthquakes may influence household perceptions of risk by modeling changes
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The impact of the corporate average fuel economy standards on technological changes in automobile fuel efficiency Resource and Energy Economics (IF 1.829) Pub Date : 2020-11-25 Yiwei Wang, Qing Miao
This paper empirically examines the effect of the U.S. Corporate Average Fuel Economy (CAFE) standards on the technological progress in automobile fuel efficiency. Using detailed vehicle attributes data from 1978 through 2018, we find that more stringent fuel economy standards increase the rate of technological improvements in new passenger cars, and this effect is primarily driven by the response
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Multiple equilibria in the context of inspection probabilities depending on firms’ relative emissions Resource and Energy Economics (IF 1.829) Pub Date : 2020-11-01 Mathias Herzing
This paper presents a model of environmental regulations with firms that are heterogeneous with respect to the cost for reducing emissions to the legally permitted level. Given that the enforcement capacity is limited due to budgetary constraints and that each firm's inspection probability depends on its emissions relative to other firms’ emissions, the likelihood of being punished for violations is
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Groundwater management under heterogeneous land tenure arrangements Resource and Energy Economics (IF 1.829) Pub Date : 2020-10-16 Sanval Nasim, Steven Helfand, Ariel Dinar
We develop a groundwater extraction model that considers the Marshallian inefficiency associated with sharecropping and use data from Pakistan to simulate the impact of an open access regime and of optimal management on groundwater extractions, the state of the aquifer, and annual net benefits through time. We also evaluate a price instrument as a mechanism of inducing optimal extractions. Under both
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Heterogeneous preferences and investments in energy saving measures Resource and Energy Economics (IF 1.829) Pub Date : 2020-10-10 Urs Fischbacher, Simeon Schudy, Sabrina Teyssier
We investigate whether risk, time, environmental, and social preferences affect single-family homeowners’ investments in the energy efficiency of their house using established experimental measures and questionnaires. We find that homeowners who report to be more risk taking are more likely to have renovated their house. Pro-environmental and future-oriented renovators, i.e. renovators with lower discount
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The impact of information-based interventions on conservation behavior: A meta-analysis Resource and Energy Economics (IF 1.829) Pub Date : 2020-09-15 Mehdi Nemati, Jerrod Penn
Interest in using information-based interventions to induce energy and water conservation has increased in recent years but have shown mixed evidence of their effectiveness. This paper seeks to answer two main questions - whether these programs are broadly effective in inducing conservation, and what are the most effective versions of these programs. Using a meta-analysis of 116 studies, we examine
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Who benefits from an oil boom? Evidence from a unique Alaskan data set Resource and Energy Economics (IF 1.829) Pub Date : 2020-08-26 Mouhcine Guettabi, Alexander James
Oil booms have been shown to increase local employment and wages. But these effects reflect the aggregated experience of residents, commuters, and recent migrants alike. This paper takes advantage of a unique data set that identifies a rich set of labor market outcomes by place of residence, rather than by place of work. Exploiting this feature of the data, we examine the effect of a major oil boom
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Convergence of the world’s energy use Resource and Energy Economics (IF 1.829) Pub Date : 2020-08-09 Tie-Ying Liu, Chien-Chiang Lee
This paper uses the sequential panel selection method to examine the convergence of the energy use of 107 countries. It contributes by analyzing the order of convergence and the factors affecting the difference in convergence using improved methods. We provide robust evidence to indicate that seven out of ten countries have been convergent during the period examined, and strong decoupling across countries
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Technology licensing and environmental policy instruments: Price control versus quantity control Resource and Energy Economics (IF 1.829) Pub Date : 2020-07-13 Seung-Gyu Sim, Sungwan Hong
This paper analyzes the welfare implications of abatement technology licensing under taxation and emission trading schemes. We demonstrate that a firm with a better abatement technology optimally sells a per-unit royalty license to a competitor under both schemes but offers a higher royalty rate under the latter. The emission trading scheme may outperform the taxation scheme regarding social surplus
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Exploring the shelf-life of travel cost methods of valuing recreation for benefits transfer Resource and Energy Economics (IF 1.829) Pub Date : 2020-07-13 Xiaoyang He, Gregory L. Poe
This study tests the stability of willingness to pay (WTP) for recreational fishing over two decades based on three rounds of a representative angler survey conducted in New York State in 1988, 1996, and 2007. We employ the travel cost method (TCM) by using the repeated conditional logit and mixed logit models to estimate demand for daily fishing trips. Our estimates suggest that anglers’ WTP for fishing
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Energy efficiency promotion backfires under cap-and-trade Resource and Energy Economics (IF 1.829) Pub Date : 2020-07-06 Johannes Jarke-Neuert, Grischa Perino
Major climate-cum-energy policies and respective impact projections rest on the widespread belief that increased energy efficiency can be equated with savings in energy use and emissions. This belief is flawed. Due to the rebound effect emissions savings from energy efficiency improvements will be generally less than what is technically feasible, or even be reversed. By means of an analytical general
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Effectiveness of air pollution standards in reducing mortality in India Resource and Energy Economics (IF 1.829) Pub Date : 2020-06-26 Ashwini Sankar, Jay S. Coggins, Andrew L. Goodkind
India experiences some of the highest air pollution levels globally, with 13 of the 20 most polluted cities in the world. In this paper, we estimate the relationship between air pollution policies in India and mortality for people of all ages and all causes. We estimate the relationship between mortality and two major air pollution regulations, the Supreme Court Action Plan (SCAP) and the Catalytic
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The measurement of environmental economic inefficiency with pollution-generating technologies Resource and Energy Economics (IF 1.829) Pub Date : 2020-06-20 Juan Aparicio, Magdalena Kapelko, José L. Zofío
This study introduces the measurement of environmental inefficiency from an economic perspective. We develop our proposal using the latest by-production models that consider two separate and parallel technologies: a standard technology generating good outputs, and a polluting technology for the by-production of bad outputs. While research into environmental inefficiency incorporating undesirable or
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Testing the regulatory threat hypothesis: Evidence from Sweden Resource and Energy Economics (IF 1.829) Pub Date : 2020-06-19 Petyo Bonev, Matthieu Glachant, Magnus Söderberg
This study examines whether threat of stricter regulation influences the pricing behavior of firms. Using data on unregulated Swedish local district heating monopolists, we measure the threat level by the number of customer complaints about prices received by a national board. Exploiting a natural experiment, we find that firms reduce prices when customer complaints increase.
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Spatial discounting of ecosystem services Resource and Energy Economics (IF 1.829) Pub Date : 2020-06-12 Rintaro Yamaguchi, Payal Shah
The impact of conservation efforts targeted at preserving ecosystem services largely depend on the welfare implications associated with spatial variations in the provision of ecosystem services. While there is ample empirical evidence of spatial discounting or decay of the valuation of ecosystem services, there are still few underpinnings based on welfare economic theory. We establish a theory of spatial
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Productivity and misallocation of energy resources: Evidence from Korea’s manufacturing Sector Resource and Energy Economics (IF 1.829) Pub Date : 2020-06-06 Bongseok Choi
This paper analyzes the role of allocative efficiency of energy resources with respect to total factor productivity (TFP) in the Korean manufacturing sector. Using firm-level data for Korea, we extend the framework of Hsieh and Klenow (2009) to measure allocative inefficiency of energy markets as a function of energy price distortions. Our results indicate that between the years 2000 and 2014, intra-industry
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Do natural resources help or hinder development? Resource abundance, dependence, and the role of institutions Resource and Energy Economics (IF 1.829) Pub Date : 2020-06-01 Addisu A. Lashitew, Eric Werker
The resource curse literature presents conflicting evidence on the relationship between natural resources and development. We evaluate the direct effect of resources on developmental outcomes vis-à-vis their indirect effect through the weakening of political institutions using a 3SLS instrumental variable setup that simultaneously estimates development outcomes and institutions. We find that resource