Too hot to handle: The effects of high temperatures during pregnancy on adult welfare outcomes

This paper studies the long-term effects of high temperatures during pregnancy on later-life outcomes for Chinese adults. Adults experienced one additional high-temperature day during in utero period, on average, attain 0.02 fewer years of schooling, increase the risk of illiteracy by 0.18%, achieve lower standardized word-test score by 0.48%, and are shorter by 0.02 cm. The impacts are greater in the first and second trimesters. Additionally, we find that income effects represent one important channel to explain the adverse effects of hot weather. Back-of-the-envelope predictions suggest that by the end of the 21st century, a 0.14–0.54 reduction in years of education and a 0.21–0.84 cm reduction in height is likely to result from climate change, ceteris paribus.     

The value of information for integrated assessment models of climate change

We estimate the value of information (VOI) for three key parameters of climate integrated assessment models (IAMs): marginal damages at low temperature anomalies, marginal damages at high temperature anomalies, and equilibrium climate sensitivity. Most empirical studies of climate damages have examined temperature anomalies up to 3 °C, while some recent theoretical studies emphasize the risks of “climate catastrophes,” which depend on climate sensitivity and on marginal damages at higher temperature anomalies. We use a new IAM to estimate the VOI for each parameter over a range of assumed levels of study precision based on prior probability distributions calibrated using results from previous studies. We measure the VOI as the maximum fixed fraction of consumption that a social planner would be willing to pay to conduct a new study before setting a carbon tax. Our central results suggest that the VOI is greatest for marginal damages at high temperature anomalies.     

Conservation agriculture and climate resilience

Agricultural productivity growth is vital for economic and food security outcomes which are threatened by climate change. In response, governments and development agencies are encouraging the adoption of ‘climate-smart’ agricultural technologies, such as conservation agriculture (CA). However, there is little rigorous evidence that demonstrates the effect of CA on production or climate resilience, and what evidence exists is hampered by selection bias. Using panel data from Zimbabwe, we test how CA performs during extreme rainfall events - both shortfalls and surpluses. We control for the endogenous adoption decision and find that use of CA in years of average rainfall results in no yield gains, and in some cases yield loses. However, CA is effective in mitigating the negative impacts of deviations in rainfall. We conclude that the lower yields during normal rainfall seasons may be a proximate factor in low uptake of CA. Policy should focus promotion of CA on these climate resilience benefits.     

Ecosystems and human health: The local benefits of forest cover in Indonesia

This paper documents the effect of primary forest cover loss on increased incidence of malaria. The evidence is consistent with an ecological response. I show that land use change, anti-malarial programs or migration cannot explain the effect of primary forest cover loss on increased malarial incidence. Falsification tests reveal that the effect is specific to malaria, with forest cover having no discernible effect on other diseases with a disease ecology different from that of malaria. Back-of-the-envelope calculations indicate that the morbidity-related malaria-reducing local benefits of primary forests are at least $1-$2 per hectare.     

Environmental disaster,pollution and infant health: Evidence from the Deepwater Horizon oil spill

In 2010 the Gulf Coast experienced the largest oil spill affecting U.S. waters in history. Evaporating crude oil and dispersant chemicals can cause major health problems. This paper examines the impact of the Deepwater Horizon oil spill on air quality and infant health outcomes. Using U.S. Environmental Protection Agency (EPA) AirData, vital statistics data from National Center for Health Statistics (NCHS), and a difference-in-difference methodology, we find that the oil spill of 2010 increased concentrations of PM2.5, NO2, SO2, and CO in affected coastal counties, increased incidence of low birth weight (<2500 g) and premature born infants (<37 weeks of gestation). Heterogeneity effects reveal more pronounced adverse infant health outcomes for black, Hispanic, less educated, unmarried, and younger mothers. Results are robust to a wide range of controls and robustness checks.     

Negotiating housing deal on a polluted day: Consequences and possible explanations

The topic of air pollution has drawn considerable attention globally. In this paper, we examine the immediate effect of air pollution on a substantial decision, that is, a housing purchase. By linking housing purchasing behavior with the air quality in Beijing, we document market participants' behaviors unexplained by rational economic theories. Our main result suggests that the transaction prices on a severely polluted day are 0.65% higher than those of the days without pollution, other things being equal. This translates into approximately 3.51 million yuan daily increase based on the average transaction volume and price on a typical day in Beijing. The heterogeneity analysis further suggests that this effect is mostly driven by non-local and low income buyers. After ruling out rational explanations, we demonstrate that our empirical results are consistent with salience theory under weak assumptions.     

Resilienz vs. Effizienz – ein kritischer Blick auf die Umweltökonomie

Background, aim, and scope Economists assess politics (also concerning energy supply) due to the efficiency criterion. Thus, economic instruments for environmental protection shall contribute to achieve ecological goals in an (cost-)efficient way. We show that the overemphasis of efficiency is an alien in the way (ecological) systems are working. Mostly, ecological systems are not high-grade efficient. Hence, economic instruments of environmental protection introduce an inappropriate logic to ecological systems that may have severe impacts on their resilience. We illustrate this with the example of emission trading. Time efficiency is considered to be a powerful criterion due to the interest yield requirements of investors, also for ecological investments. We show how the concentration on time efficiency destroys diversity and has negative impacts on the resilience of (eco-)systems. Main features The economic system is embedded in society and natural environment (as self-organizing, living systems). The economy as an ‘instrumental system’ should serve these systems. The guiding value approach (a system theory approach) gives indication that overemphasizing certain guiding values (such as efficiency, as the economic science does) may weaken the functional capability of systems and finally may lead to a collapse of the systems. Results and discussion The article tries to change the focus of the discussion. An altered focus probably has to be implemented by scientists of other subject areas. Contemporary environmental economics (with its focus on efficiency) is unable to give satisfying answers on the pestering problems. Conclusions Criticising the primacy of efficiency is not the same as generally to disclaim considering efficiency needs. Instead, based on the guiding value theory, we want to be contrary to the one-sided and dominating stressing of the of the efficiency criterion. Perspectives Not following the efficiency guide any more means to think over some ‘sacred cows’ such as emission trading or shareholder value. Instead we have to think over alternative designs to reach the ecological targets.     

Infant health impacts of freshwater algal blooms: Evidence from an invasive species natural experiment

Economists are increasingly interested in causally interpretable estimates of environmental health externalities, particularly on infant health. This paper focuses on a specific case by investigating microcystin, a toxin produced by freshwater blue-green algal blooms. We exploit a natural experiment caused by a zebra mussel die-off in a large lake located in the state of Michigan, USA to identify changes in microcystin-related infant outcomes surrounding the lake. Using both the synthetic control method and a difference-in-differences strategy, we find that instances of low birth weight around the lake fell by 1.4 percentage points after lake water quality improved. Along the intensive margin, birth weight and length of gestation increased by 17.1 g and 0.47 weeks, respectively. Improvements to low birth weight result in $768,500 in average annual hospitalization cost savings. Many robustness and falsification tests are performed including using both annual and monthly data and accounting for possible weather confounders and seasonality. Results suggest that microcystin can affect infant health at levels below current water advisory guidelines.     

Relating chronic toxicity responses to population-level effects: A comparison of population-level parameters for three salmon species as a function of low-level toxicity

Standard laboratory toxicity tests assess the physiological responses of individual organisms to exposure to toxic substances under controlled conditions. Time and space restrictions often prevent the assessment of population-level responses to a toxic substance. Contaminants can affect various biological functions (e.g. growth, fecundity or behavior), which may alter different demographic traits, leading to population-level impacts. In this study, immune suppression, reproductive dysfunction and somatic growth impairment were examined using life history matrix models for coho salmon (Oncorhynchus kisutch), sockeye salmon (Oncorhynchus nerka) and chinook salmon (Oncorhynchus tshawytscha). Our intent was to gauge the relative magnitude of response to toxic effects among species and between life history stages, not provide a specific estimate of population growth rate or abundance. Effects due to immune suppression were modeled as reductions in age-specific survival. Toxic impacts on reproductive function were modeled as a 10% reduction in reproductive contribution for all reproductively mature age groups. Model runs that examined the effect of somatic growth reduction on population parameters incorporated both survival and reproductive impacts. All impacts were modeled as 10% reductions in the affected population demographic parameters. First-year survival and reproductive impacts produced similar population growth rates (λ), but resulted in different sensitivity and stable age distributions. Modeled somatic growth reduction produced additive effects on survival and reproduction. Toxic stressors producing similar changes in λ did not necessarily produce similar changes in the age distributions. Sensitivity and elasticity analyses demonstrated that changes to the first-year survival rate produced the greatest per-unit effect on λ for each species. Alteration in abundance of mature females also strongly influenced λ. Differences observed between species showed that the number of reproductive ages and time to reproductive maturity were important components for population-level responses. These results emphasize the importance of linking toxicity responses at low concentrations to the demographic traits they affect, and help to highlight the toxicity tests that are more suitable for assessing impacts on the focal species. Additionally, life history modeling is a useful tool for developing testable hypotheses regarding impacts on specific populations as well as for conducting comparisons between populations.     

Can a marine pest reduce the nutritional value of Mediterranean fish flesh?

Biological invasions are deemed as one of the most severe threats to biodiversity and can result in huge economic impacts on natural resources. Many studies have assessed structural changes caused by the introduction of nonindigenous species, but urgent questions remain to be answered about the complex indirect effects of invasive pests on marine biodiversity at the species and ecosystem level. Previous investigations focusing on the biological invasion by Caulerpa racemosa in the Mediterranean indicated that the lipophilic algal metabolite caulerpin accumulates in the tissues of the native edible white sea bream Diplodus sargus feeding on the exotic alga. The level of caulerpin in D. sargus has been thus used as an indicator of the trophic exposure of the fish to the seaweed and related with adverse effects on the fish health. In the present study, we show that the C. racemosa-based diet can also alter muscle fatty acids composition in the white sea bream by reducing the percentage of polyunsaturated fatty acids of the n-3 and n-6 series, such as eicosapentaenoic (C20:5), docosahexaenoic (C22:6) and arachidonic acids (C20:4). This represents both a real threat to the health of fish unable to biosynthesize these essential fatty acids and an impoverishment of an important source of essential fatty acids for human nutrition, which helps to prevent cardiovascular diseases, diabetes, hepatic steatosis, cancer and neurological disorders. On the whole, this work sheds light on an unexplored and critical aspect of biological invasions with implication on the health of both humans and the environment.     

The Antiquities Act,national monuments,and the regional economy

Large, landscape-scale national monuments have long been controversial. It has been claimed that large monuments harm local economies by restricting growth of the grazing, timber, mining, and energy industries. Others have asserted that large monuments aid economic growth by reducing reliance on volatile commodity markets and fostering tourism growth. In this study, we use a synthetic control approach to measure the average causal effect of nine national monument designations on county-level per capita income. We find no evidence that monument designation affected per capita income in any of 20 counties hosting nine large (>50,000 acres) national monuments established under the Antiquities Act (six monuments) or by legislative action (three monuments). The broad economic claims of both advocates and critics of large national monuments have little empirical support. The absence of a designation effect for large national monuments is likely due to the attributes of federal land and the legal constraints under which it is managed.     

Microclimate effects of wind farms on local crop yields

This paper considers a novel spillover effect of wind farms - microclimate impacts on neighboring crop yields. Using US county-level crop and wind capacity data, I examine the effects of wind energy development on crop yields, controlling for time-invariant county characteristics and state-level annual shocks. I find robust evidence that counties with increased wind power development have also experienced increased corn and other crop yields, such that an additional 100 MW of wind capacity increases county yields by roughly 1%. At recent prices, this implies a more than $5 dollar per megawatt-hour local benefit, corresponding to several hundred million dollars in annual benefits.     

Can climate mitigation help the poor? Measuring impacts of the CDM in rural China

This study examines whether investment in climate change mitigation contributes to poverty alleviation. We investigate the impacts of the renewable energy-based clean development mechanism (RE-CDM) projects on rural communities in China. The impacts of RE-CDM projects are estimated by combining propensity score matching with the difference-in-differences approach. We found that the biomass-based CDM projects significantly contribute to income improvement and employment generation in rural communities in China. Our estimation results also reveal that wind energy-based CDM projects have the potential to increase income and the share of labor force in the primary industry in rural areas. These results suggest different channels through which renewable energy sources affect income.     

Urban afforestation and infant health: Evidence from MillionTreesNYC

This paper examines the impact of urban afforestation on infant health outcomes by exploiting a quasi-experimental setting where one million new trees were planted in New York City (NYC), but not in counties surrounding NYC over the same time period. Using a near-universal birth record of NYC and surrounding counties over 2004–2015 and employing both the synthetic control method and a difference-in-differences model, we find that an approximately 20% increase in urban forest cover decreased prematurity and low birth weight among mothers in NYC by 2.1 and 0.24 percentage points, respectively, relative to similar mothers outside of NYC. The low birth weight finding is equivalent to getting a mother smoking two cigarettes a day during pregnancy to quit. An internal validity test suggests that changes in the composition of NYC mothers cannot explain the observed effects. Additionally, we find evidence that declines in PM_2.5 concentrations and increases in outdoor walks are potential causal mechanisms. Results suggest that urban afforestation may be able to complement existing policies aimed at improving infant health.     

Clustering economic sectors in China on a life cycle basis to achieve environmental sustainability

To improve material efficiency, industrial structure optimization becomes a focal point in Chinese industrial and environmental policies. It is crucial to cluster economic sectors and determine their priority for industrial and environmental policy implementation. Integrating a set of criteria, a hybrid input-output model and the hierarchical cluster analysis, this study clusters China’s economic sectors and determines their priority on a life cycle basis. China’s economic sectors are clustered into three clusters. Industrial structure changes (industrial policy) should encourage the development of sectors in cluster 1 and limit the development of sectors in cluster 2. Technology development and materials recycling (two environmental policies) should mainly focus on sectors in clusters 1 and 2. Future industrial policies in China should limit the development of two sectors named Manufacture of metal products and Extraction of petroleum and natural gas. Instead of limiting some industries by command-and-control, the best policy option is to remedy environmental standards and law enforcement. Enterprises belonging to the identified key sectors from the viewpoint of direct production impacts should be concerned to achieve enterprise sustainability. To achieve sustainable production chains, the identified key sectors from the viewpoint of accumulative production impacts should be concerned. For sustainable consumption, the identified key sectors from the viewpoint of consumption impacts should be concerned to transform consumption styles. Most of environmental pressure can be alleviated not only by technical improvements and material recycling, but also by the development of economic sectors in cluster 1.     

Reducing environmental impacts through socioeconomic transitions: critical review and prospects

● Reducing environmental impacts through socioeconomic structural transitions. ● Simulation of looping the dynamic material cycle should be concerned. ● Transboundary effects of socioeconomic transitions need to be analyzed. ● Facilitating interregional cooperation and synergetic control mechanisms. Rapid socioeconomic development has caused numerous environmental impacts. Human production and consumption activities are the underlying drivers of resource uses, environmental emissions, and associated environmental impacts (e.g., ecosystem quality and human health). Reducing environmental impacts requires an understanding of the complex interactions between socioeconomic system and environmental system. Existing studies have explored the relationships among human society, economic system, and environmental system. However, it is unclear about the research progress in the effects of socioeconomic activities on environmental impacts and the potential directions of future research. This critical review finds that existing studies have identified critical regions, sectors, and transmission pathways for resource uses, environmental emissions, and environmental impacts from supply chain perspectives. Moreover, scholars have characterized the impacts of socioeconomic transitions on resource uses and environmental emissions. However, existing studies overlook the dynamic nature of the interconnections among human society, economic system, and environmental system. In addition, the effects of socioeconomic structural transitions on environmental impacts remain unknown. This review proposes four prospects and possible solutions that will contribute to a better understanding of the complex interactions among human society, economic system, and environmental system. They can help identify more effective solutions to reduce environmental impacts through socioeconomic transitions.     

Carbon taxation,OPEC and the end of oil

I develop a differential game between an oil cartel and an importer investing in research and development (R&D) to reduce the cost of a green substitute to oil. In equilibrium, the cartel is forced to deter the substitute, which thus imposes a price ceiling falling over time. Credible carbon taxes are below the Pigovian level, implying the importer cannot internalise the full pollution externality, much less capture resource rents. Without carbon pricing, the importer curtails long-run pollution using a costly R&D programme. Normatively, climate policy will be more expensive if relying on green R&D programmes only.     

Innovation and the dynamics of global warming

Global warming and the carbon cycle are a dynamic system with positive feedbacks. Fossil fuels are exhaustible resources. These two facts mean that innovation in clean energy technology, rather than mitigating global warming, can lead to a permanently higher temperature path. This paper explores the impact of innovation in the simplest model linking the economic theory of exhaustible resources with positive feedback dynamics in the carbon cycle.     

Invasive species in Europe: ecology, status, and policy

Globalization of trade and travel has facilitated the spread of non-native species across the earth. A proportion of these species become established and cause serious environmental, economic, and human health impacts. These species are referred to as invasive, and are now recognized as one of the major drivers of biodiversity change across the globe. As a long-time centre for trade, Europe has seen the introduction and subsequent establishment of at least several thousand non-native species. These range in taxonomy from viruses and bacteria to fungi, plants, and animals. Although invasive species cause major negative impacts across all regions of Europe, they also offer scientists the opportunity to develop and test theory about how species enter and leave communities, how non-native and native species interact with each other, and how different types of species affect ecosystem functions. For these reasons, there has been recent growth in the field of invasion biology as scientists work to understand the process of invasion, the changes that invasive species cause to their recipient ecosystems, and the ways that the problems of invasive species can be reduced. This review covers the process and drivers of species invasions in Europe, the socio-economic factors that make some regions particularly strongly invaded, and the ecological factors that make some species particularly invasive. We describe the impacts of invasive species in Europe, the difficulties involved in reducing these impacts, and explain the policy options currently being considered. We outline the reasons that invasive species create unique policy challenges, and suggest some rules of thumb for designing and implementing management programs. If new management programs are not enacted in Europe, it is inevitable that more invasive species will arrive, and that the total economic, environmental, and human health impacts from these species will continue to grow.     

The price of innovation: An analysis of the marginal cost of green buildings

Energy efficiency plays an important role in reducing the carbon externality from buildings, but economic analyses of more efficient, green building have thus far ignored input costs. This paper finds that the average marginal cost of green-labeled construction projects is smaller than the value premiums documented in the literature. However, design fees, representing just a fraction of development costs but paid largely up-front, are significantly higher for green construction projects. These projects also take longer to complete. The results provide some insight into the market barriers and market failures that may explain the relatively slow adoption of otherwise economically rational green construction practices.