Environment

Raymond Owens, Esteban Rossi-Hansberg, Pierre-Daniel Sarte, 15 February 2017

The decline of manufacturing employment in industrialised countries has hit some cities hard. This column looks at perhaps the best-known case – Detroit – where residents have deserted the neighbourhoods closest to the central business district in favour of the suburbs, despite the longer commute. Redeveloping these areas requires coordination between multiple developers, residents, and the city governments that facilitate permits and public services. The authors propose the introduction of ‘development guarantees’ to ease the coordination problems.

James Fenske, Namrata Kala, 01 February 2017

A global literature has developed that illuminates the reciprocal and dynamic relationship between humans and their environment in other regions across the world This column, which first appeared as a chapter in a recent Vox eBook, surveys on two topics in the literature: the impact of geographic endowments and the impact of environmental shocks on historical and long-run development. 

Stelios Michalopoulos, Elias Papaioannou, 23 January 2017

Over the past decades, economists working on growth have ‘rediscovered’ the importance of history, leading to the emergence of a vibrant, far-reaching inter-disciplinary stream of work.  This column introduces a new eBook in three volumes which examines key themes in this emergent literature and discusses the impact they have on our understanding of the long-run influence of historical events on current economics.

Ric Colacito, Bridget Hoffmann, Toan Phan, 28 October 2016

Policy proposals to offset the effects of global warming would be strengthened if we knew more about the net economic benefits of climate action relative to business-as-usual. This column argues that estimates may understate the future costs of business as usual because of heterogeneous seasonal effects, and because more business sectors than previously assumed suffer a negative impact from increased summer temperatures. The cost of inaction may be equal to one-third of the growth rate of US GDP over the next 100 years.

Larry Levin, Matthew S. Lewis, Frank Wolak, 13 October 2016

A consensus that the demand for gasoline is price inelastic means that policymakers have opted to disregard price instruments when addressing gasoline consumption and climate change. This column analyses daily citywide data on gasoline prices and consumption to show that demand for gasoline is in fact substantially more elastic than previously thought. This is a major argument in favour of the effectiveness of price-based mechanisms in reducing greenhouse gas emissions.

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