Economic experiments related to biodiversity conservation policies provide valuable insights into how individuals respond to specific policy designs. However, they provide limited guidance on how to design cost-effective conservation policies at the landscape level. Ecological-economic models - integrating ecological dynamics with economic decision-making in optimization procedures - are well-suited to this purpose. Yet they nearly always assume purely profit-maximizing behaviour, overlooking deviations from this behaviour observed in practice. Our methodological aim is to combine these two approaches by incorporating behavioural data from a charitable-giving based laboratory experiment with student participants into an established decision-support software based on an ecological-economic model. We empirically explore how pro-environmental motives might influence participation in agri-environment schemes (AES) through decision support software applied to meadow bird conservation. Adjusting the modelling procedure to reflect intrinsic motives, we compare outcomes with those generated under standard profit-maximization assumption. The results indicate that while behavioural motives can increase participation, their overall impact on cost-effective AES design recommendations remain modest.
The 2001 Doha Ministerial Declaration (DMD) established a critical nexus between trade and the environment by advocating for the reduction or elimination of tariff and non-tariff barriers on environmental goods. This paper empirically examines whether import tariffs on these goods hinder renewable energy innovation from 2005 to 2015. Using panel data for 62 countries from the OECD and World Bank, we apply a Two-Stage Least Squares (2SLS) regression to address potential endogeneity. The results indicate that a one-percentage-point increase in import tariffs is associated with an approximate 5.1% reduction in renewable energy innovations. Furthermore, the effects of tariff reductions differ between developed and developing countries: while advanced economies exhibit a stronger innovation response, developing nations show more modest gains, reflecting disparities in research capacity and institutional support. These findings underscore the role of trade liberalization in fostering eco-innovation and offer actionable insights for policymakers: reducing tariff barriers on environmental goods can accelerate technological diffusion, strengthen national innovation systems, and enhance the competitiveness of renewable energy sectors.
The transition to organic farming is increasingly promoted as a pathway toward sustainable agriculture, yet its implications for smallholder welfare in developing countries remain empirically underexplored. This study investigates the welfare effects of adopting organic vegetable farming among smallholder producers in Ghana's Ashanti Region, a hub for intensive vegetable cultivation. Using cross-sectional data from 385 farmers and employing the Endogenous Switching Regression model to address selection bias, we examine both the drivers of adoption and its impact on multiple welfare outcomes. Our findings reveal that being a farmer native to the district, off-farm employment, crop diversification, and access to stable markets significantly influence the decision to adopt organic practices. Impact estimates suggest that adoption improves household welfare by enhancing consumption expenditure and reducing food insecurity. However, adoption is also associated with reduced dietary diversity and lower incomes, highlighting potential trade-offs. These outcomes underscore the need for complementary interventions such as targeted input support and structured market linkages to maximize the benefits of organic farming for rural livelihoods. This study contributes to the empirical literature on sustainable agriculture by providing evidence of the welfare consequences of organic farming adoption in Sub-Saharan African contexts, with important implications for policy and program design.
Informational impacts on consumers' willingness to pay (WTP) have been studied in the contingent valuation literature. Recent valuation studies revealed that informational treatment effects may be heterogeneous depending on personal characteristics. This study investigated the sources of heterogeneity in treatment effects on WTP for forest bathing with particular attention paid to major tools of gathering social information and trust in information providers. Two contrasting information treatments were prepared, namely, public review and scientific evidence, to which sampled respondents were randomly allocated. Empirical analyses revealed that these treatments failed to make significant impacts on respondents at the group level but influenced specific subgroups. These results suggest that a match between individuals' informational characteristics and treatment formats would be essential for an effective treatment. Specifically, the evidence of the health benefits of forest bathing should be emphasised more to young people who value academic authority.
The objective of this article is to analyse the effect of climate vulnerability on energy poverty. To do this, we adopted a Tobit model on 872,469 households in 34 countries in sub-Saharan Africa. The data used for the period 2010-2022 come mainly from three databases: EDS, ND-GAIN and WGI. The results obtained show that climate vulnerability significantly increases the level of energy poverty of households in Sub-Saharan Africa, as well as in regional subgroups and residential areas. The analysis by regional sub-blocks reveals that the marginal effects are more significant in southern and central Africa. However, the analysis by residential area confirms a higher marginal effect in urban areas. We recommend the implementation of economic policies aimed not only at diversifying energy sources with the adoption of renewable energies, but also at using adaptation and mitigation mechanisms that can reduce the levels of climate vulnerability. These recommendations must jointly take into account each regional sub-block and the area where the households are located in order to propose solutions adapted to the needs of the different households. KEY POLICY HIGHLIGHTS center dot To break the cycle of climate-energy poverty, policymakers should give priority to region-specific strategies, such as diversifying energy sources towards renewables, strengthening institutions in central Africa, building resilient infrastructure in high-risk southern Africa, and customizing urban-rural adaptation measures. center dot Establish multi-stakeholder financing mechanisms involving public-private partnerships and international donors to fund infrastructure upgrades and institutional capacity building across SSA sub-regions. center dot By combining climate mitigation with fair energy access, these actions can improve household resilience, lessen dependency on polluting biomass, and promote sustainable development.
Agriculture is one of the primary drivers of economic activity in Burkina Faso. However, agricultural productivity faces several risks, most notably land tenure insecurity, which might undermine the adoption of effective farming practices. This study aims to assess the effect of land tenure insecurity on the adoption of agroforestry in Burkina Faso. To this end, a linear regression model with an endogenous treatment effect was applied using data from 1807 rural households, collected as part of the second national land management programme for the 2016/2017 agricultural season. The results indicate that perceived land tenure insecurity significantly discourages the adoption of agroforestry. In contrast, both formal and informal land rights help reduce this insecurity and consequently promote the uptake of agroforestry practices. Advancing sustainable agriculture, and agroforestry in particular, requires securing land tenure by facilitating easier access to title deeds. Implementing policies that issue low-cost land titles and formalize property rights would not only strengthen land tenure security but also encourage broader agroforestry adoption in Burkina Faso.
Green rooftops (GRs) offer sustainable solutions to urban environmental challenges, yet public preferences and perceptions remain understudied. To address this gap, a choice-based survey engaging over 600 United States (US) residents from the state of Rhode Island (RI) examined the trade-offs and perceived value of GR space allocations for agriculture, renewable energy (solar), and recreational areas within intensive GR designs. Using latent class modelling to analyse these trade-offs, two distinct groups emerged. Class 1, representing 20% of respondents, notably differs from class 2 by being generally unsupportive of GR installation, and expressing disutility towards GR space allocation for solar energy. Both classes uniformly favour allocating GR space for agriculture production and have a positive willingness to pay for this feature. Interestingly, respondents in both classes trust Non-Governmental Organizations (NGOs) more than federal or state entities to guide GR-related policy decisions, highlighting the need for localized governance. These findings underscore the importance of incorporating agricultural production into GRs designs while addressing diverse preferences for solar allocation. Policymakers in RI should leverage the potential for GR to enhance urban resilience and meet public expectations by aligning their strategies with sustainability goals and local community priorities.
The frequency and intensity of natural disasters have increased worldwide in recent years, and Ecuador is no exception. This paper provides measures of vulnerability to poverty at the household level, considering extreme climate-weather events related to temperature changes and other natural hazards such as floods, volcanic activity, earthquakes, droughts, landslides and fires. We use two types of datasets: the National Household Survey ENEMDU from the SEDLAC database, which provides insights into household coping strategies, and data on temperature, natural hazards and exposure at the canton level from official registers, EM-DAT and NASA. Results indicate that both natural hazards and household coping capacity shape vulnerability to poverty. About 13% of the country's population is vulnerable to poverty, with higher rates in rural areas than in urban areas. Vulnerability is higher in provinces with higher effective poverty rates. Factors such as overcrowding, informal employment, poor quality housing and reliance on agriculture are associated with increased vulnerability. Social assistance programs can mitigate some risks; however, their coverage is uneven. Moreover, indigenous households are disproportionately affected, particularly in the Amazon and Sierra regions. The evidence generated by this approach suggests concrete priority actions to support households in natural disasters and achieve disaster resilience.
Blue carbon ecosystems capture and store carbon, which could help mitigate climate change, yet little is known about public preferences for this ecosystem service. A hybrid choice model (HCM) was estimated with survey data from 371 respondents generating 1,484 choice observations in the US state of Oregon. We find mean marginal willingness-to-pay (WTP) of $3.18 for a 1% increase in coastal carbon sequestration in the state, but also heterogeneity in preferences and associated WTP. HCMs are well suited to understanding potential causes of this heterogeneity. Preferences are moderated by perceived climate urgency, which in turn is predicted by relational values and anthropocentric environmental attitudes, and, ultimately, by personal values of self-transcendence and conservatism. We use a three-phase model development process that is consistent with recent calls to enhance the psychometric component of HCMs.
Adopting green transition policies is not politically acceptable or supported by all governments. This paper examines whether countries with a tradition of electoral democracy are more likely to adopt such policies, and whether this effect is impacted by the level of per capita income of an economy. The relationship is first explored theoretically and then empirically through a cross-country panel analysis over 1995-2020 for a wide variety of green policies and outcomes. The results suggest that it is difficult to refute the association of these outcomes with cumulative democratic experience, conditioned on the per capita income of an economy. Relatively rich democracies were more likely to adopt green policies from 1995 to 2020 than relatively poor democracies. High-income democracies could benefit from leading international collaboration and policy coordination to facilitate low-carbon transitions among all democracies. However, the post-2020 decline of democracy may affect efforts to green economies and coordinate policy.
The combustion of fossil fuels has driven economic progress but caused severe environmental degradation. Stringent environmental policies and governance are vital to mitigating these effects. This study examines the Environmental Kuznets Curve hypothesis to analyze the impact of environmental policy stringency and governance on CO2 emissions in 27 OECD countries from 1996 to 2015, controlling for economic growth, globalization, and technological innovation using the PMG-ARDL estimation technique. Findings reveal that policies like the EU Emissions Trading System, carbon pricing in Sweden, Canada, and Germany, and clean energy transitions in Denmark and the Netherlands have significantly reduced emissions. Governance measures, including climate accountability laws and public-private initiatives in Japan, South Korea, and the USA, further reinforce emission reductions. Globalization exacerbates emissions but also supports mitigation through trade agreements with environmental clauses. Economic growth increases emissions, while technological innovation via clean energy R&D, EV subsidies, and smart grid investments curbs them. Strengthening carbon pricing, integrating climate goals into trade, expanding climate accountability laws, and investing in green infrastructure can further reduce emissions. Enhancing governance frameworks and sustainable finance policies, like the EU Taxonomy, is essential for long-term sustainability. This study underscore's role of robust policies and innovation in achieving environmental sustainability.
This study investigates the interaction between greenspace views, elevation, and flood risk for assessed home values. We estimate the inferred willingness to pay for homes with unobstructed views of a protected green floodplain and examine whether this premium varies by home elevation. At higher elevations, the home has both an enhanced visual amenity and a reduced flood risk. We interact elevation and whether the home has a greenspace view. We find that, on average, homes with a greenspace view command a 14.3% premium. However, this effect is conditional on elevation: at lower elevations, the amenity value of the view is diminished, and homes near the floodplain at the lowest elevations even experience small discounts, suggesting a disamenity effect from flood risk. We find that each additional foot of elevation increases home value by 0.5% for homes with a view - equivalent to $1,633 in added value per foot. While no statistically significant discount is observed for homes located within the designated flood hazard area, our interaction term reveals that elevation plays a role in assessed value near flood-prone greenspaces. The findings offer insight for urban planners and policymakers seeking to balance environmental amenities with flood resilience under changing climate conditions.
The COVID-19 pandemic and subsequent lockdowns profoundly affected healthcare systems and many aspects of social life globally. It also affected several environmental conditions, ranging from air to water pollution and beyond. In some areas, there was deterioration, but in some cases, also improvement, as when less activity and less transport meant less fuel burnt. This paper examines individual perceptions of environmental conditions - indoor and outdoor air quality, drinking water quality, waste disposal, and traffic congestion, compared to before the COVID-19 pandemic. We utilise data from YouGov's internet survey of 8,400 randomly selected individuals in seven low - to middle-income countries - Colombia, South Africa, India, Kenya, Nigeria, Tanzania, and Vietnam. Using descriptive and binary logistic analyses, results show that respondents' perceptions of environmental conditions differ across countries. The results on factors influencing the perception of change in environmental conditions show that socioeconomic factors such as age, gender, and being economically buoyant shape perceptions. COVID-related variables, such as the number of COVID-related deaths, were also found to influence the perception of change in environmental conditions. The study's findings highlight the importance of government response to global emergencies and potential disease outbreaks on individual perceptions of changes in environmental conditions.
This paper examines how business cycle fluctuations shape renewable energy adoption using a global panel of 178 economies over 1985-2022. Combining local projection methods with nonlinear smooth transition autoregressive (STAR) models, we estimate the dynamic and state-dependent responses of the electricity mix to economic downturns and recoveries. We find that renewable adoption is systematically countercyclical: recessions are associated with significant increases in renewable electricity shares, while expansions temporarily reinforce fossil fuel use. These effects are heterogeneous across countries and depend on income levels, foreign direct investment exposure, trade openness, and energy exporter status. Environmental policy stringency plays a stabilising role. Economies with stronger regulatory frameworks sustain renewable adoption across both downturns and recoveries, whereas weaker policy regimes experience procyclical reversals. The results highlight how macroeconomic conditions, structural characteristics, and policy design jointly shape the resilience of the energy transition.
The process of rewetting previously drained peatlands holds significant promise in aiding efforts to reduce greenhouse gas emissions within the agricultural sector. Consequently, measures to support rewetting were introduced as part of the 2021 European CAP reform. The implementation of CAP rewetting measures has been studied mainly from a nature conservation perspective. However, little research has focused on economic effects at farm-level. This study provides an initial analysis of rewetting costs for 25 farms operating on organic soils in six German states, based on a modelled approach underpinned by specific assumptions. The costs were examined under two rewetting scenarios, considering variations in location, structure, and size of farms. Our results indicate that current state-specific CAP funding is insufficient to cover costs of rewetting grassland, whereas the rewetting of arable land pays off in 14 of 25 farms. The opportunity costs calculated with total gross margin losses vary depending on factors such as (1) farms' structure and location, (2) farm specialisation and size and (3) funding measures. The ability of farms to offset rewetting costs through higher value-added activities is crucial. We conclude that due to variable economic consequences of implementing measures, rewetting requires funding adapted to regional and farm-specific conditions.
Information about the public valuation of clean air provides helpful guidelines for designing effective policies targeting air pollution, particularly in urban areas with high pollution levels. However, such information is often unavailable to policymakers in developing countries, including Nepal. This study fills this gap by offering the first empirical evidence of stated preference for ambient air quality improvement in Nepal using survey data of 610 households from Siddharthnagar municipality, a rapidly urbanizing city in Nepal. We use the double-bounded dichotomous choice (DBDC) contingent valuation method to estimate willingness to pay (WTP) for air quality improvement to the level that decreases air pollution-related morbidity chances by 50%. Further, we employ spatial econometric models to understand the spatial distribution of WTP. We find significant spatial WTP hotspots near brick kilns and high traffic movement, suggesting strong household demand for clean air around prominent local pollution sources. We also find higher WTP among households more aware of the health and economic costs. On the contrary, outdoor workers are willing to pay less, despite being more exposed to air pollution. Using our preferred DBDC model, we estimate an annual mean WTP value of NRs. 775 (USD 6.6), which equals 0.43% of the household income.
The experience of silence constitutes a significant part of the enjoyment derived from nature recreation. However, economic valuation of noise is underexplored in the context of recreation. Combining RP data from a multiple site travel cost survey with SP data from a discrete choice experiment survey, we estimate joint RP-SP models to examine the impact of road traffic noise on open-access nature recreation choices. When estimating separate RP and SP models, we find significant differences in willingness-to-pay (WTP) estimates for avoiding traffic noise in the two datasets. We also find a significantly lower relative scale parameter in the SP data compared to the RP data; however, the difference in WTP cannot be fully explained by the difference in error variance between the two data sets. Informed by both datasets, the joint RP-SP model provides intermediate WTP estimates, and in particular for high noise levels, better estimation precision. Specifically, we find that the per trip WTP to avoid high noise levels is at least an order of magnitude higher in the RP-SP model than in the RP model alone.
