Browsing by Subject "Environmental policy"

High levels of partisan polarization on environmental policies, and on climate change in particular, have led to policy gridlock in the United States. While most Americans rely on their partisan identities to guide their policy preferences on highly polarizing issues, other non-partisan identities may also be relevant in informing environmental policy attitudes. This dissertation investigates the role that partisan and non-partisan identities play in driving attitudes on climate change and environmental policies broadly. In a first paper, I use a survey experiment to test how identity salience influences the effectiveness of a persuasive message about climate change. I find that priming a non-partisan (parental) identity decreases partisan polarization on climate change policy support, while priming a partisan identity increases polarization. In a second paper, I use focus groups, participant observation, and interviews to identify four strategies that individuals use to reconcile conflicting identities and form attitudes on climate change. In a third paper, I use focus groups with rural voters in North Carolina to understand how rural identities inform unique environmental policy preferences. Each of these studies contributes to the broader understanding of the role that non-partisan identities play in driving environmental attitudes and offers a potential way to build more bipartisan agreement in this policy area.

Sustainable management of marine natural resources, and the social-ecological systems in which they are embedded, presents one of the most significant challenges in contemporary environmental policy. Despite improvement in the ecological sustainability and economic performance of fisheries in the United States, these trends are not universal and management remains highly contentious. With fisheries moving towards more collaborative and participatory policy processes, understanding how social and economic relations among stakeholders may influence institutional change is critical to supporting democratic and effective resource management. This dissertation builds on research from common-pool resource theory and political economy to explore the incentives and processes of self-governance in fisheries embedded in global commercial supply chains and state management institutions. It contributes to our understanding of participatory policy-making by addressing the research questions: Why and how do resource users self-govern through the policy process? How are policy preferences and negotiations shaped by market structures and social relations of production?

These questions are investigated empirically by tracing market and policy changes over time in a commercial, small-scale, U.S. fishery. This dissertation examines origins and evolution of regulations, cooperative management institutions, and commercialization processes in the California sea urchin fishery, where harvesters and processors have seen major shifts in market geography and structure, and have initiated self-governance through the state’s policy process. Using a multi-level governance framework and institutional analysis tools, this dissertation draws on document archives, interviews and participant observation of policy and commercial production processes to construct a detailed policy history. It incorporates micro- and macro-level trade data and employs global value chain analyses to examine shifting seafood market geographies over time, and uniquely synthesizes the parallel economic and political timelines to explore dynamic interactions between them, focusing on how markets and other social and ecological factors shaped motivations in crafting policy.

Overall, this research reveals a diverse set of values and incentives at the heart of policy choice and change in the fishery. Cooperative management can be a tool to meet the costs of regulating (time, money, information and political leverage), evolving as participants learn and build social capital through the collective action experience, and adjust collective goals in response social and ecological change. States can empower effective producer collective action through particularly forms of institutional support, such as oversight to hold leaders accountable to members. Findings also reveal complex dynamic linkages between markets, harvesting strategies, and policy choice. Regulations are crafted to match market conditions, equitably distribute costs among divers, processors, and the state, and achieve other social objectives such as intergenerational access and individual freedom. They are also adjusted in response to changing markets, outcomes of previous regulations, and state policy agendas. Together, these findings can inform ongoing efforts to move towards participatory and cooperative fisheries management, particularly in the U.S. and similar contexts, by revealing the specific ways that commercial seafood markets shape, and are shaped by, the policy process and regulatory outcomes.

The environment affects our health, livelihoods, and the social and political institutions within which we interact. Indeed, nearly a quarter of the global disease burden is attributed to environmental factors, and many of these factors are exacerbated by global climate change. Thus, the central research question of this dissertation is: How do people cope with and adapt to uncertainty, complexity, and change of environmental and health conditions? Specifically, I ask how institutional factors, risk aversion, and behaviors affect environmental health outcomes. I further assess the role of social capital in climate adaptation, and specifically compare individual and collective adaptation. I then analyze how policy develops accounting for both adaptation to the effects of climate and mitigation of climate-changing emissions. In order to empirically test the relationships between these variables at multiple levels, I combine multiple methods, including semi-structured interviews, surveys, and field experiments, along with health and water quality data. This dissertation uses the case of Ethiopia, Africa’s second-most populous nation, which has a large rural population and is considered very vulnerable to climate change. My fieldwork included interviews and institutional data collection at the national level, and a three-year study (2012-2014) of approximately 400 households in 20 villages in the Ethiopian Rift Valley. I evaluate the theoretical relationships between households, communities, and government in the process of adaptation to environmental stresses. Through my analyses, I demonstrate that water source choice varies by individual risk aversion and institutional context, which ultimately has implications for environmental health outcomes. I show that qualitative measures of trust predict cooperation in adaptation, consistent with social capital theory, but that measures of trust are negatively related with private adaptation by the individual. Finally, I describe how Ethiopia had some unique characteristics, significantly reinforced by international actors, that led to the development of an extensive climate policy, and yet with some challenges remaining for implementation. These results suggest a potential for adaptation through the interactions among individuals, communities, and government in the search for transformative processes when confronting environmental threats and climate change.

This dissertation presents three essays in environmental economics and policy. In the first chapter, I examine the optimal timing for electric vehicle (EV) subsidies with the perspective of maximizing environmental return of the policy. I show that EV subsidies are best introduced before the time when EVs become cleaner than gasoline internal combustion engines (ICEs) for two reasons related to the dynamics of decarbonization and technology diffusion. First, the net lifetime damages of EVs can be less than those of gasoline ICEs. More importantly, policies boosting technology diffusion have positive spillover effects. As marginal emissions of the power grid decline in the long run, more EV adoption produces environmental gains in the process. I simulate an empirically calibrated EV diffusion model, calculate the discounted lifetime damages of EVs versus gasoline ICEs, and examine EV subsidies enacted in different years. Even when EVs are initially more polluting than ICEs, I find that the environmental return from the policy-induced EV diffusion process decreases when governments delay intervention.

The second chapter (in collaboration with Yang Zhou, William A. Pizer, Libo Wu, and Yingjie Tian) analyzes the time pattern in averting behavior against air pollution. The results indicate that one standard deviation increase in Air Quality Index level leads to a significant 1-3 percent reduction in outdoor population counts in the evening hours and a 4-6 percent increase in electricity consumption during mid-day and early evening periods. Meanwhile, by comparing the intensity of averting behavior and the level of air pollution, we find a mismatch in that people have the least elastic behavior during peak pollution hours. We find that abatement efforts that better target the peak pollution hours when averting responses are inelastic can reduce pollution exposure by 13 percent and residential energy consumption by 82 percent compared to simulated outcomes based on the observed hourly improvements.

The third chapter is a paper in collaboration with William A. Pizer, which was accepted in the Journal of Environmental Economics and Management in January 2021. This paper discusses the choice of discount rate for public project evaluation with costs today and benefits over long time horizons. We generalize the assumptions in the previous discounting literature to consider arbitrary patterns of future benefits, accruing either directly to consumers or indirectly through future investment. We derive an expression for the appropriate discount rate and show that it converges to the consumption rate for benefits increasingly far into the future. More generally, the bounding rates depend on the temporal pattern of the undiscounted dollars. As an application, we estimate the appropriate discount rate for climate change damages from carbon dioxide, finding it lies in a narrow range (+/- 0.5 percent) around the consumer rate of interest.

Environmental policy is increasingly implemented via market mechanisms. While this is in many ways a great success for the economics profession, a number of questions remain. In this dissertation, I empirically explore the question of what will happen as environmental outcomes are coupled to potentially volatile market phenomena, whether policies can insulate environmental outcomes and market shocks, and policymakers should act to mitigate such volatility. I use a variety of empirical methods including reduced form and structural econometrics as well as theoretical models to consider a variety of policy, market, and institutional contexts. The effectiveness of market interventions depends on the context and on the policy mechanism. In particular, energy markets are characterized by low demand elasticities and kinked supply curves which are very flat below a capacity constraint (elastic) and very steep above it (inelastic). This means that a quantity-based policy that acts on demand, such as releasing additional pollution emission allowances from a reserved fund would be an effective way to constrain price shocks in a cap-and-trade system. However, a quantity-based policy that lowers the need for inframarginal supply, such as using ethanol as an oil product substitute to mitigate oil shocks, would be ineffective. Similarly, the benefits of such interventions depends on the macroeconomic impacts of price shocks from the sector. Relatedly, I show that a liability rule designed to reduce risk from low-probability, high-consequence oil spills have very low compliance costs.