Grounded
The Effect of Recycling versus Trashing on Consumption: Theory and Experimental Evidence
Monic Sun & Remi Trudel
Journal of Marketing Research, forthcoming
Abstract:
This article proposes a utilitarian model in which recycling could reduce consumers' negative emotions from wasting resources (i.e., taking more resources than what is being consumed) and increase consumers' positive emotions from the disposal of consumed resources. The authors provide evidence for each component of the utility function using a series of choice problems, and formulate hypotheses based on a parsimonious utilitarian model. Experiments with real disposal behavior support the model hypotheses. The findings suggest that the positive emotions associated with recycling can overpower the negative emotions associated with wasting. As a result, consumers could use a larger amount of resource when recycling is an option and more strikingly, this amount could go beyond the point at which their marginal consumption utility becomes zero. The authors extend the theoretical model and introduce acquisition utility and the moderating effect of cost of recycling (financial, physical, and mental). From a policy perspective, this research argues for a better understanding of consumers' disposal behavior to increase the effectiveness of environmental policies and campaigns.
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Solomon Hsiang & Nitin Sekar
NBER Working Paper, June 2016
Abstract:
Black markets are estimated to represent a fifth of global economic activity, but their response to policy is poorly understood because participants systematically hide their actions. It is widely hypothesized that relaxing trade bans in illegal goods allows legal supplies to competitively displace illegal supplies, but a richer economic theory provides more ambiguous predictions. Here we evaluate the first major global legalization experiment in an internationally banned market, where a monitoring system established before the experiment enables us to observe the behavior of illegal suppliers before and after. International trade of ivory was banned in 1989, with global elephant poaching data collected by field researchers since 2003. A one-time legal sale of ivory stocks in 2008 was designed as an experiment, but its global impact has not been evaluated. We find that international announcement of the legal ivory sale corresponds with an abrupt ~66% increase in illegal ivory production across two continents, and a possible ten-fold increase in its trend. An estimated ~71% increase in ivory smuggling out of Africa corroborates this finding, while corresponding patterns are absent from natural mortality and alternative explanatory variables. These data suggest the widely documented recent increase in elephant poaching likely originated with the legal sale. More generally, these results suggest that changes to producer costs and/or consumer demand induced by legal sales can have larger effects than displacement of illegal production in some global black markets, implying that partial legalization of banned goods does not necessarily reduce black market activity.
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Sara Rasmussen et al.
JAMA Internal Medicine, forthcoming
Importance: Asthma is common and can be exacerbated by air pollution and stress. Unconventional natural gas development (UNGD) has community and environmental impacts. In Pennsylvania, UNGD began in 2005, and by 2012, 6253 wells had been drilled. There are no prior studies of UNGD and objective respiratory outcomes.
Design: A nested case-control study comparing patients with asthma with and without exacerbations from 2005 through 2012 treated at the Geisinger Clinic, which provides primary care services to over 400 000 patients in Pennsylvania. Patients with asthma aged 5 to 90 years (n = 35 508) were identified in electronic health records; those with exacerbations were frequency matched on age, sex, and year of event to those without.
Exposures: On the day before each patient’s index date (cases, date of event or medication order; controls, contact date), we estimated activity metrics for 4 UNGD phases (pad preparation, drilling, stimulation [hydraulic fracturing, or “fracking”], and production) using distance from the patient’s home to the well, well characteristics, and the dates and durations of phases.
Results: We identified 20 749 mild, 1870 moderate, and 4782 severe asthma exacerbations, and frequency matched these to 18 693, 9350, and 14 104 control index dates, respectively. In 3-level adjusted models, there was an association between the highest group of the activity metric for each UNGD phase compared with the lowest group for 11 of 12 UNGD-outcome pairs: odds ratios (ORs) ranged from 1.5 (95% CI, 1.2-1.7) for the association of the pad metric with severe exacerbations to 4.4 (95% CI, 3.8-5.2) for the association of the production metric with mild exacerbations. Six of the 12 UNGD-outcome associations had increasing ORs across quartiles. Our findings were robust to increasing levels of covariate control and in sensitivity analyses that included evaluation of some possible sources of unmeasured confounding.
Conclusions and Relevance: Residential UNGD activity metrics were statistically associated with increased risk of mild, moderate, and severe asthma exacerbations. Whether these associations are causal awaits further investigation, including more detailed exposure assessment.
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The Cost of Unconventional Gas Extraction: A Hedonic Analysis
Michael Delgado, Todd Guilfoos & Andrew Boslett
Resource and Energy Economics, forthcoming
Abstract:
We focus on identification and estimation of potentially negative environmental impacts of unconventional natural gas extraction on property values in the United States and advance previous research by contributing new data and new identification strategies for isolating these potential impacts. Our study area consists of two counties in Pennsylvania that are home to large amounts of unconventional natural gas extraction but are otherwise isolated from other resource extraction industries or large urban areas. We deploy parametric, semiparametric, and matching hedonic regression models that include recent quasi-experimental methods and, in contrast to previous research and much popular intuition, we fail to find robust significance that negative environmental externalities of natural gas extraction are manifested in nearby property values. While there may be plausible risks associated with unconventional natural gas extraction, we do not find consistent evidence to suggest that these risks significantly affect nearby property values.
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Cassandra O'Lenick et al.
Journal of Epidemiology & Community Health, forthcoming
Background: A broad literature base provides evidence of association between air pollution and paediatric asthma. Socioeconomic status (SES) may modify these associations; however, previous studies have found inconsistent evidence regarding the role of SES.
Methods: Effect modification of air pollution–paediatric asthma morbidity by multiple indicators of neighbourhood SES was examined in Atlanta, Georgia. Emergency department (ED) visit data were obtained for 5–18 years old with a diagnosis of asthma in 20-county Atlanta during 2002–2008. Daily ZIP Code Tabulation Area (ZCTA)-level concentrations of ozone, nitrogen dioxide, fine particulate matter and elemental carbon were estimated using ambient monitoring data and emissions-based chemical transport model simulations. Pollutant–asthma associations were estimated using a case-crossover approach, controlling for temporal trends and meteorology. Effect modification by ZCTA-level (neighbourhood) SES was examined via stratification.
Results: We observed stronger air pollution–paediatric asthma associations in ‘deprivation areas’ (eg, ≥20% of the ZCTA population living in poverty) compared with ‘non-deprivation areas’. When stratifying analyses by quartiles of neighbourhood SES, ORs indicated stronger associations in the highest and lowest SES quartiles and weaker associations among the middle quartiles.
Conclusions: Our results suggest that neighbourhood-level SES is a factor contributing vulnerability to air pollution-related paediatric asthma morbidity in Atlanta. Children living in low SES environments appear to be especially vulnerable given positive ORs and high underlying asthma ED rates. Inconsistent findings of effect modification among previous studies may be partially explained by choice of SES stratification criteria, and the use of multiplicative models combined with differing baseline risk across SES populations.
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Teaching an Old Dog New Tricks: Firm Learning from Environmental Regulation
Emily Galloway & Erik Paul Johnson
Energy Economics, forthcoming
Abstract:
We examine a new mechanism by which environmental regulation can increase efficiency: intra-firm knowledge spillovers due to environmental regulation. County-level non-attainment of the National Ambient Air Quality Standards creates spatial variation in the degree of regulatory stringency, as states impose stronger environmental regulation in non-attainment counties. We use this spatial variation to examine how the efficiency of electricity generators responds to increases in regulation. We show that, in response to increased regulatory stringency, electricity generators find technical efficiency enhancements and then transfer these enhancements to other units within their fleet. We find that a change in regulatory stringency translates to within-firm spillovers of 3-4%, and that these gains occur at least 3 years after the increase in regulatory stringency.
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The mere green effect: An fMRI study of pro-environmental advertisements
Stephanie Vezich, Benjamin Gunter & Matthew Lieberman
Social Neuroscience, forthcoming
Abstract:
Self-report evidence suggests that consumers prefer green products (i.e., pro-environmental) to standard products, but this is not reflected in purchase behaviors. To understand this disconnect, we exposed participants in a magnetic resonance imaging (MRI) scanner to green and standard ads. After viewing each ad, participants rated liking and perceived sustainability. Ratings were more favorable for green ads than for control ads, but the functional MRI data suggested an opposite pattern — participants showed greater activation in regions associated with personal value and reward (ventromedial prefrontal cortex and ventral striatum) in response to control ads relative to green ads. In addition, participants showed greater activity in these regions to the extent that they reported liking control ads, but there was no such trend for green ads. In line with a neuroeconomic account, we suggest that activity in these regions may be indexing a value signal computed during message exposure that may influence downstream purchase decisions, in contrast to self-reported evaluations that may reflect social desirability concerns absent at the point of purchase.
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Environmental Policies and Productivity Growth: Evidence across Industries and Firms
Silvia Albrizio, Tomasz Koźluk & Vera Zipperer
Journal of Environmental Economics and Management, forthcoming
Abstract:
This paper investigates the impact of changes in environmental policy stringency on industry- and firm-level productivity growth in a panel of OECD countries. To test the strong version of the Porter Hypothesis (PH), we extend a neo-Schumpeterian productivity model to allow for effects of environmental policies. We use a new environmental policy stringency (EPS) index and let the effect of countries' environmental policies vary with the pollution intensity of the industry and with the countries’ and firms’ technological advancement. A tightening of environmental policy is associated with a short-term increase in industry-level productivity growth in the most technologically-advanced countries. This effect diminishes with the distance to the global productivity frontier, eventually becoming insignificant. For the average firm, no evidence of PH is found. However, the most productive firms see a temporary boost in productivity growth, while the less productive ones experience a productivity slowdown.
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Are price strategies effective in managing demand of high residential water users?
Serhat Asci, Tatiana Borisova & Michael Dukes
Applied Economics, forthcoming
Abstract:
Encouraging water use efficiency and water conservation is one of the primary goals of water utility companies nationwide. This study estimates price elasticity of residential water demand to measure the responsiveness of water use to price changes, particularly for high water users. Household-level water use data for high residential water users from Central Florida were analysed using 3-stage least square (3SLS). Estimated price elasticity ranges between −0.07 and −0.14. This price elasticity estimate is below most of the estimates reported in the literature (in absolute value). The results imply that for price strategies to be effective in managing water demand of high residential water users, a significant price increase would be needed. Overall, this study highlights the importance of designing water conservation policies tailored to specific groups of customers, and the importance of using these strategies effectively and fairly for different customer groups.
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Inequality Before Birth: The Developmental Consequences of Environmental Toxicants
Claudia Persico, David Figlio & Jeffrey Roth
NBER Working Paper, May 2016
Abstract:
Millions of tons of hazardous wastes have been produced in the United States in the last 60 years which have been dispersed into the air, into water, and on and under the ground. Using new population-level data that follows cohorts of children born in the state of Florida between 1994 and 2002, this paper examines the short and long-term effects of prenatal exposure to environmental toxicants on children living within two miles of a Superfund site, toxic waste sites identified by the Environmental Protection Agency as being particularly severe. We compare siblings living within two miles from a Superfund site at birth where at least one sibling was conceived before or during cleanup of the site, and the other(s) was conceived after the site cleanup was completed using a family fixed effects model. Children conceived to mothers living within 2 miles of a Superfund site before it was cleaned are 7.4 percentage points more likely to repeat a grade, have 0.06 of a standard deviation lower test scores, and are 6.6 percentage points more likely to be suspended from school than their siblings who were conceived after the site was cleaned. Children conceived to mothers living within one mile of a Superfund site before it was cleaned are 10 percentage points more likely to be diagnosed with a cognitive disability than their later born siblings as well. These results tend to be larger and are more statistically significant than the estimated effects of proximity to a Superfund site on birth outcomes. This study suggests that the cleanup of severe toxic waste sites has significant positive effects on a variety of long-term cognitive and developmental outcomes for children.
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Owen Sherwood et al.
Proceedings of the National Academy of Sciences, 26 July 2016, Pages 8391–8396
Abstract:
Unconventional oil and gas development has generated intense public concerns about potential impacts to groundwater quality. Specific pathways of contamination have been identified; however, overall rates of contamination remain ambiguous. We used an archive of geochemical data collected from 1988 to 2014 to determine the sources and occurrence of groundwater methane in the Denver-Julesburg Basin of northeastern Colorado. This 60,000-km2 region has a 60-y-long history of hydraulic fracturing, with horizontal drilling and high-volume hydraulic fracturing beginning in 2010. Of 924 sampled water wells in the basin, dissolved methane was detected in 593 wells at depths of 20–190 m. Based on carbon and hydrogen stable isotopes and gas molecular ratios, most of this methane was microbially generated, likely within shallow coal seams. A total of 42 water wells contained thermogenic stray gas originating from underlying oil and gas producing formations. Inadequate surface casing and leaks in production casing and wellhead seals in older, vertical oil and gas wells were identified as stray gas migration pathways. The rate of oil and gas wellbore failure was estimated as 0.06% of the 54,000 oil and gas wells in the basin (lower estimate) to 0.15% of the 20,700 wells in the area where stray gas contamination occurred (upper estimate) and has remained steady at about two cases per year since 2001. These results show that wellbore barrier failure, not high-volume hydraulic fracturing in horizontal wells, is the main cause of thermogenic stray gas migration in this oil- and gas-producing basin.
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An Analysis of Costs and Health Co-Benefits for a U.S. Power Plant Carbon Standard
Jonathan Buonocore et al.
PLoS ONE, June 2016
Abstract:
Reducing carbon dioxide (CO2) emissions from power plants can have important “co-benefits” for public health by reducing emissions of air pollutants. Here, we examine the costs and health co-benefits, in monetary terms, for a policy that resembles the U.S. Environmental Protection Agency’s Clean Power Plan. We then examine the spatial distribution of the co-benefits and costs, and the implications of a range of cost assumptions in the implementation year of 2020. Nationwide, the total health co-benefits were $29 billion 2010 USD (95% CI: $2.3 to $68 billion), and net co-benefits under our central cost case were $12 billion (95% CI: -$15 billion to $51 billion). Net co-benefits for this case in the implementation year were positive in 10 of the 14 regions studied. The results for our central case suggest that all but one region should experience positive net benefits within 5 years after implementation.
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The Recycled Self: Consumers’ Disposal Decisions of Identity-Linked Products
Remi Trudel, Jennifer Argo & Matthew Meng
Journal of Consumer Research, forthcoming
Abstract:
It has been known for some time that consumers’ identities influence purchasing decisions and people form strong identity connections, or “links,” with products and brands. However, research has yet to determine whether identity-linked products are differentially treated at disposal in comparison to products that are not identity linked. Across seven studies, the current research shows that when an everyday product (e.g., paper, cups, aluminum cans) is linked to a consumer’s identity, it is less likely to be trashed and more likely to be recycled. Further, the tendency to recycle an identity-linked product increases with the strength and positivity of the connection between the consumer and product (or brand). Finally, the disposal behavior can be explained by consumers’ motivation to avoid trashing a product that is linked to the self because it is viewed as an identity threat. In sum, consumers will be more likely to recycle (rather than trash) a product if the product is linked to a consumer’s identity. This occurs because placing an identity-linked product in the trash is symbolically similar to trashing a part of the self, a situation consumers are motivated to avoid.
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Environmental Impacts of the U.S. Health Care System and Effects on Public Health
Matthew Eckelman & Jodi Sherman
PLoS ONE, June 2016
Abstract:
The U.S. health care sector is highly interconnected with industrial activities that emit much of the nation’s pollution to air, water, and soils. We estimate emissions directly and indirectly attributable to the health care sector, and potential harmful effects on public health. Negative environmental and public health outcomes were estimated through economic input-output life cycle assessment (EIOLCA) modeling using National Health Expenditures (NHE) for the decade 2003–2013 and compared to national totals. In 2013, the health care sector was also responsible for significant fractions of national air pollution emissions and impacts, including acid rain (12%), greenhouse gas emissions (10%), smog formation (10%) criteria air pollutants (9%), stratospheric ozone depletion (1%), and carcinogenic and non-carcinogenic air toxics (1–2%). The largest contributors to impacts are discussed from both the supply side (EIOLCA economic sectors) and demand side (NHE categories), as are trends over the study period. Health damages from these pollutants are estimated at 470,000 DALYs lost from pollution-related disease, or 405,000 DALYs when adjusted for recent shifts in power generation sector emissions. These indirect health burdens are commensurate with the 44,000–98,000 people who die in hospitals each year in the U.S. as a result of preventable medical errors, but are currently not attributed to our health system. Concerted efforts to improve environmental performance of health care could reduce expenditures directly through waste reduction and energy savings, and indirectly through reducing pollution burden on public health, and ought to be included in efforts to improve health care quality and safety.