Environment

Richard Tol, 27 September 2016

The UK may opt to leave the EU Emissions Trading System. This column argues that as the UK is a large importer of emission permits, this would make meeting its climate policy targets much harder and dearer, and would remove the legal standing of many permits circulating in the rest of the EU. Some non-EU countries do take part in the Emissions Trading System, and this appears to be the best option for the UK post-Brexit. If not, the UK Government will be forced into a major overhaul of its climate policy.

Achyuta Adhvaryu, Namrata Kala, Anant Nyshadham, 27 August 2016

Energy-efficient technologies are an increasingly relevant policy priority, given growing consensus on the need to tackle climate change. This column examines the productivity benefits of adopting one such technology – LED lighting – for manufacturing firms in India. It finds that improved productivity resulting from LED lighting’s lower heat emissions makes adopting such technology far less costly than previous anticipated, particularly for labour-intensive firms in hot climates. 

Roberto F. Aguilera, Marian Radetzki, 17 August 2016

After decades of oil price rises, new extraction techniques for shale and conventional deposits mean that recent dramatic price falls will be here to stay. This column argues that, even with oil at $50 a barrel, global producers will invest to catch up with US-led technological innovation and so add 40 million barrels a day to production by 2035. This will revolutionise domestic energy policymaking, environmental commitments and global geopolitics.

Tom Chang, Tal Gross, Joshua Graff Zivin, Matthew Neidell, 15 July 2016

The health effects of pollution in terms of hospitalisations, mortality and morbidity are well researched, but not so much is known about the less severe effects of pollution on workers’ health. This column uses evidence from China to analyse the impact of pollution on productivity, finding that high levels of pollution reduce the productivity even of indoor workers. Reducing pollution is not just welfare-improving for society, it is also of financial benefit to the economy.

Eva Arceo, Rema Hanna, Paulina Oliva, 16 April 2016

Pollution levels are orders of magnitude higher in lower-income countries than in the developed world. This means that studies of the health effects of pollution based on data from the latter will not necessarily be relevant to the former. This column reports on the effect of air pollution on infant mortality in Mexico City. Significant effects are found that are much larger than found in earlier work based on US data. These findings highlight the potential pitfalls of naively extrapolating findings from high-income to developing countries.

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