Skip to main content

EEU-Sweden

2019-07-17

Decision-Making within the Household: The Role of Autonomy and Differences in Preferences

We use a eld experiment to identify how dierences in preferences and autonomy in decision-making result in sub-optimal adoption of technologies that can maximize the welfare of all members of the household. We create income-earning opportunities to empower subjects and elicit their willingness-to-pay (WTP) for improved cookstoves through a real stove purchase experiment with randomly chosen wives, husbands and couples.

2019-03-11

Global Chemicals Outlook II: From Legacies to Innovative Solutions

The Global Chemicals Outlook II – From Legacies to Innovative Solutions: Implementing the 2030 Agenda for Sustainable Development, mandated by the UN Environment Assembly in 2016, seeks to alert policymakers and other stakeholders to the critical role of the sound management of chemicals and waste in sustainable development. It takes stock of global trends as well as progress made and gaps in achieving the global goal to minimize the adverse impacts from chemicals and waste by 2020.

2019-02-27

Grandfathering: Environmental Uses and Impacts

“Grandfathering” grants preferential treatment to existing resource users over new entrants based on prior use. Grandfathering is based on the concept of first-in-time or prior appropriation and has been applied to a broad range of environmental and resource issues. We synthesize legal, economic, and political science perspectives and find that grandfathering removes incentives for users to anticipate regulations with proactive abatement.

2019-02-08

Why (field) experiments on unethical behavior are important: Comparing stated and revealed behavior

Understanding unethical behavior is essential to many phenomena in the real world. We carry out a field experiment in a unique setting that varies the levels of reciprocity and guilt in an ethical decision. A survey more than one year before the field experiment allows us to compare at the individual level stated unethical behavior with revealed behavior in the same situation in the field. Our results indicate a strong discrepancy between stated and revealed behavior, regardless of the specific treatment in the field experiment.

2019-01-28

Policy design for the Anthropocene

Today, more than ever, ‘Spaceship Earth’ is an apt metaphor as we chart the boundaries for a safe planet. Social scientists both ​analyse why society courts disaster by approaching or even overstepping these boundaries and try to design suitable policies to avoid these perils. Because the threats of transgressing planetary boundaries are global, long-run, uncertain and intercon-nected, they must be analysed together to avoid conflicts and take advantage of synergies.

2019-01-15

Cost of Power Outages for Manufacturing Firms in Ethiopia:A Stated Preference Study

Having a reliable supply of electricity is essential for the operation of any firm. In most developing countries, however, electricity supply is highly unreliable. In this study, we estimate the cost of power outages for micro-, small-, and medium-sized enterprises in Addis Ababa, Ethiopia, using a stated preference survey. We find that the willingness to pay, and thus the cost of power outages, is substantial. The estimated willingness to pay for a reduction of one power outage corresponds to a tariff increase of 16 percent.

2019-01-15

Measuring Trust in Institutions

In empirical studies, survey questions are typically used to measure trust; trust games are also used to measure interpersonal trust. In this paper, we measure trust in different institutions by using both trust games and survey questions. We find that generalized trust is only weakly correlated with trust in specific institutions, when elicited both by using a trust game and by using survey questions. However, the correlation between trust in a specific institution elicited through a trust game and stated trust for the same institution is stronger and statistically significant.

2018-09-25

Direct and Spillover Effects of a Social Information Campaign on Residential Water-Savings

This paper investigates direct and spillover effects of a social information campaign aimed at encouraging residential water savings in Colombia. The campaign was organized as a randomized field experiment, consisting of monthly delivery of consumption reports, including normative messages, for one year. Results indicate that social information and appeals to norm-based behavior reduce water use by up to 6.8% in households directly targeted by the campaign.

2018-08-28

Difference in Preferences or Multiple Preference Orderings? Comparing Choices of Environmental Bureaucrats, Recreational Anglers, and the Public

Abstract Do Environmental Protection Agency (EPA) bureaucrats represent the general public or are they more in line with an interest group? We study preferences for environmental policy using a choice experiment (CE) on three populations; the general public, Swedish EPA bureaucrats, and recreational anglers. We also test for existence of multiple preference orderings: Half of the respondents were asked to choose the alternatives that best corresponded with their opinion, and the other half was asked to take the role of a policy-maker and make recommendations for environmental policy. The SEPA bureaucrats have the highest marginal willingness to pay (MWTP) to improve environmental quality. Differences in MWTP are robust and not due to differences in socio-economic characteristics across the populations. We only found weak evidence of multiple preference orderings.

2018-08-13

Context Matters: Exploring the Cost-effectiveness of Fixed Payments and Procurement Auctions for PES

Successfully implemented payment for ecosystem services (PES) programs can provide both conservation of nature and financial support to rural communities. In this paper, we explore how PES programs can be designed so as to maximize the amount of additional ecosystem services provided for a given budget. We also provide a brief summary of the use of auction mechanisms in real world PES programs.

2018-08-13

A Contingent Valuation Approach to Estimating Regulatory Costs: Mexico's Day Without Driving Program

Little is known about the cost of environmental regulations that target households instead of firms, partly because of significant methodological and data challenges. We use the contingent valuation method to measure the costs of Mexico City’s Day without Driving program, which seeks to stem pollution and traffic congestion by prohibiting vehicles from being driven one day each week. To our knowledge, ours is the first study to focus directly on using stated preference methods to isolate and estimate the private costs of an existing environmental regulation.

2018-06-06

Technical Synergies and Trade-Offs Between Abatement of Global and Local Air Pollution

In this paper, we explore the synergies and tradeoffs between abatement of global and local pollution. We build a unique dataset of Swedish combined heat and power plants with detailed boiler-level data 2001–2009 on not only production and inputs but also on emissions of \hbox {CO}_{2} and \hbox {NO}_{\mathrm{x}}. Both pollutants are regulated by strict policies in Sweden. \hbox {CO}_{2} is subject to the European Union Emission Trading Scheme and Swedish carbon taxes; \hbox {NO}_{\mathrm{x}}—as a precursor of acid rain and eutrophication—is regulated by a heavy fee.

2018-06-04

Mindfulness and Stress - a Randomised Experiment

We conduct a randomised controlled trial of an online course in mindfulness. Previous research has found evidence that mindfulness reduces stress; however, few studies have been carried out on non-clinical populations that have not self-selected into or paid for treatment. Our sample consists of 139 students with no pre-existing medical conditions and no prior information on the experiment and treatments. Half of them are asked to follow a four-week mindfulness training, while the other half are asked to watch a fourweek series of historical documentaries.

2018-06-04

Passive Learning and Incentivized Communication-A Randomized Controlled Trial in India Yonas Alem

In order to understand the extent of the information barrier to adoption of a household technology, we designed a randomized controlled trial on willingness to pay (WTP) for solar lanterns in India. We gave high quality solar lanterns to randomly selected `seed' households in a non-electri ed region of the state of Uttar Pradesh. Three friends of the seed household were randomly assigned to one of the following three groups: control, passive learning and incentivized communication. We elicit WTP from the control group when the seed receives the solar lantern.

2018-04-05

Shocks, Remittances and Household Consumption: A Dynamic System GMM Analysis

We use a dynamic system GMM regression on ve rounds of panel data to estimate the impact of international remittances on consumption of urban Ethiopian households, who spend more than 70% of their consumption budget on food. Results suggest that international remittances play a signi cant role in augmenting household consumption. A 1% increase in remittances from abroad leads to a 0.10% increase in household consumption.

2017-12-05

The impact of safety nets on technology adoption: a difference-in-differences analysis

This article contributes to a growing body of empirical literature relating credit constraints and incomplete insurance to investment decisions. We use panel data from rural Ethiopia to investigate whether participation in a safety net program enhances fertilizer adoption. Using a difference-in-differences estimator and inverse propensity score weighting, we find that participation in Ethiopia's food-for-work (FFW) program increased fertilizer adoption in the short run, but not in the long run.

2017-12-01

The Willingness to Pay for Vaccination against Tick-Borne Encephalitis and Implications for Public Health Policy: Evidence from Sweden

The increasing incidence of tick-borne encephalitis (TBE) in Sweden and several other European countries has sparked a discussion about the need for a public vaccination strategy. However, TBE vaccination coverage is incomplete and there is little knowledge about the factors influencing vaccination behavior. Based on a survey of 1,500 randomly selected respondents in Sweden, we estimate vaccination coverage in areas with different TBE risk levels and analyze the role of vaccine price and other factors influencing the demand for vaccination.

2017-11-15

Policy sequencing toward decarbonization

Many economists have long held that carbon pricing—either through a carbon tax or cap-and-trade—is the most cost-effective way to decarbonize energy systems, along with subsidies for basic research and development. Meanwhile, green innovation and industrial policies aimed at fostering low-carbon energy technologies have proliferated widely. Most of these predate direct carbon pricing.

2017-08-14

Spillovers from targeting of incentives: Exploring responses to being excluded

A growing set of policies involve transfers conditioned upon socially desired actions, such as attending school or conserving forest. However, given a desire to maximize the impact of limited funds by avoiding transfers that do not change behavior, typically some potential recipients are excluded on the basis of their characteristics, their actions or at random. This paper uses a laboratory experiment to study the behavior of individuals excluded on different bases from a new incentive that encourages real monetary donations to a public environmental conservation program.

2017-01-19

Migration as an Adaptation Strategy to Weather Variability: An Instrumental Variables Probit Analysis

There is solid scienti c evidence predicting that a large part of the developing world will su er a greater incidence of extreme weather events, which may increase the incidence of displacement migration. We draw on the new economics of migration to model migration decisions of smallholder and rain-dependent farm households in rural Ethiopia and investigate both the ex-ante and ex-post impacts of climate variables. Using detailed household survey panel data matched with rainfall data, we show that weather variability - measured by the coecient of

2017-01-13

In search of double dividends from climate change interventions: evidence from forest conservation and household energy transitions. Stockholm: Expert Group for Aid Studies (EBA).

Climate change is the greatest challenge facing humanity, and we are only starting to address it. Climate change scenarios indicate that poor people in developing countries will be particularly negatively affected, e.g. by increased temperature reducing their harvests or flooding due to sea-level rise and extreme weather events. There are also expectations that greenhouse gas (GHG) emissions can be costefficiently reduced in developing countries through for example reduced deforestation or improved stoves.

2016-12-15

Measuring risk preferences in rural Ethiopia

Risk aversion has generally been found to decrease in income. This may lead one to expect that people in poor countries will be more risk averse than inhabitants of rich countries. Recent comparative findings with students suggest the opposite, potentially giving rise to a risk-income paradox. Findings with students, however, may result from selection effects. We test whether a paradox indeed exists by measuring the risk preferences of over 500 household heads across several regions in the highlands of Ethiopia.

2016-12-15

Stake effects on ambiguity attitudes for gains and losses

This paper tests the effect of stake size on ambiguity attitudes. Compared to a baseline condition, the paper find subjects to be more ambiguity seeking for small probability gains and large-probability losses under high stakes. They are also more ambiguity averse for large-probability gains and small-probability losses. the study traces these effects back to stake effects on decisions under risk (known probabilities) and uncertainty (unknown probabilities). For risk the paper replicates previous findings.

2016-09-26

Mind, Behaviour and Health A Randomised Experiment

Behavioural attitudes toward risk and time, as well as behavioural biases such as present bias, are thought to be important drivers of unhealthy lifestyle choices. This paper makes the first attempt to explore the possibility of training the mind to alter these attitudes and biases, in particular health-related behaviors, using a randomized controlled experiment. The training technique we consider is a well-known psychological technique called \mindfulness", which is believed to improve self-control and reduce stress.

2016-09-26

Does Adoption of Multiple Climate-Smart Practices Improve Farmers’ Climate Resilience? Empirical Evidence from the Nile Basin of Ethiopia

There is a paucity of information on the conditions under which multiple climate-smart practices are adopted and on the synergies among such practices in increasing household resilience by improving agricultural income. This study analyzes how heat, rainfall, and rainfall variability affect farmers’ choices of a portfolio of potential climate-smart practices – agricultural water management, improved crop seeds and fertilizer – and the impact of these practices on farm income in the Nile Basin of Ethiopia.

2016-09-26

Difference in Preferences or in Preference Orderings? Comparing Choices of Environmental Bureaucrats, Recreational Anglers, and the Public

Do Environmental Protection Agency (EPA) bureaucrats represent the general public or are they more in line with an interest group? We study preferences for environmental policy using a choice experiment (CE) on three populations; the general public, Swedish EPA bureaucrats, and recreational anglers. We also test for existence of multiple preference orderings, i.e., whether responses differ depending on the decision role assigned.

2016-07-01

Individual status quo modelling for a rural water service in Rwanda: application of a choice experiment

Abstract: In Rwanda, rural water supply is not uniformly distributed. Rural areas are characterized by differences in the distance to the nearest water point and in water quality for domestic water, by watering frequency and water availability for irrigation water, and by the price for both. A household's perception of further improvements in water supply will, therefore, depend heavily on the situation it currently faces. The authors used a choice experiment to model how the individual status quo (SQ) affects preferences.

2016-07-01

The Green Paradox and Interjurisdictional Competition across Space and Time

Abstract: This paper demonstrates that unintended effects of climate policies (Green Paradox effects) also arise in general equilibrium when countries compete for mobile factors of production (capital and resources/energy). Second, it shows that countries have a rationale to use strictly positive source-based capital taxes to slow down resource extraction. Notably, this result comes about in the absence of any revenue requirements by the government, and independently of the elasticity of substitution between capital and resources in production.

2016-06-28

The Political Economy of Mitigation and Adaptation

Abstract: In this paper, we acknowledge that the mitigation of and adaptation to climate change have differential fiscal impacts. Whereas mitigation typically raises fiscal revenues, adaptation is costly to the taxpayer and to a greater extent the more distortionary the tax system is. In an OLG model with majority voting, we analyze how the choices of mitigation and adaptation are distorted under a lump-sum and a distortionary income tax regime.

2016-06-28

Influence and choice shifts in households: An experimental investigation

Abstract: In this paper, we examine the relative influence of individual decisions on joint household decisions, and whether and to what extent joint choices are more or less patient than individual choices in households. We find that both spouses have a significant influence on joint decisions, whereas husbands on average have a stronger influence than wives. Moreover, we find a substantial share of choice shifts from individual to joint household decisions, i.e. joint decisions are either more patient or more impatient than both individual choices.

2016-05-11

International Remittances and Private Inter-household Transfers Exploring the Links

We investigate the effect of remittances from migrated family members on informal inter-household transfers, an issue that has received limited attention in the literature. Using rich panel data from urban Ethiopia, we show that receiving international remittances increases the value of private domestic inter-household transfers, whereas receiving domestic remittances does not have any e ect.

2016-04-20

Why (Field) Experiments on Unethical Behavior Are Important: Comparing Stated and Revealed Behavior

Understanding unethical behavior is essential to many phenomena in the real world. The vast majority of existing studies have relied on stated behavior in surveys and some on incentivized experiments in the laboratory. In this paper, we carry out a field experiment in a unique setting. A survey more than one year before the field experiment allows us to compare stated unethical behavior with revealed behavior in the same situation. Our results indicate a strong discrepancy between stated and revealed behavior.

2016-04-20

The Impact of Safety Nets on Technology Adoption: A Difference-in-Differences Analysis

This paper contributes to a growing body of empirical literature relating credit constraints and incomplete insurance to investment decisions. We use panel data from rural Ethiopia to investigate whether participation in a safety net program enhances fertilizer adoption. Using a difference-in-difference estimator and inverse propensity score weighting, we found that participation in Ethiopia's food-for-work (FFW) program increased fertilizer adoption. Results also

2016-04-20

Strategic Delegation and International Permit Markets: Why Linking May Fail

Abstract: We analyze a typical principal-agent relationship in the context of international climate policy, in which the principals of two countries first decide whether to merge their domestic emission permit markets to form an international market. In the second stage, they delegate the decision on domestic permit supply to an agent. We find that principals have an incentive to select agents who care less for environmental damages than they do themselves.

2016-03-28

Spillover Effects from a Social Information Campaign

We investigate whether a social information campaign aimed at reducing water use causes a spillover effect on the use of electricity. On average, water use decreased by 6 percent for a treatment group for whom we conducted a social information campaign on their use of water, compared with that of a control group. We identify a spillover effect on electricity use among households that had efficient use of water before the campaign. The effect is sizeable; this group has almost 9 percent lower use of electricity after the campaign compared with the control group.

2016-03-28

Social Norms and Information Diffusion in Water-Saving Programs Evidence from a Randomized Field Experiment in Colombia

This paper investigates direct and spillover effects of a social information campaign aimed at encouraging residential water savings in Colombia. The campaign was organized as a randomized field experiment, consisting of monthly delivery of consumption reports, including normative messages, for one year. Results indicate that social information and appeals to norm-based behavior reduce water use by up to 6.8 percent in households directly targeted by the campaign.

2016-02-23

Water Demand by Unconnected Urban Households in Rwanda

Abstract: In this paper, we analyze water demand by urban households in Rwanda who currently lack a piped connection into their home. The analysis uses data from a cross-sectional survey. The results show that public taps are the most widely used water source and that the demand for water from this source is more inelastic than that for water from other water sources. Although some households combine different sources of water, the majority in the sample uses only one source.

2016-02-23

Gendered food security in rural Malawi: why is women's food security status lower?

Abstract: Gendered food security gaps between female- and male-headed households (FHHs and MHHs) can be decomposed into two sets of components: those explained by observable differences in levels of resource use, and those due to unobserved differences affecting the returns to the resources used. Employing exogenous switching ordered probit and binary probit regression models, this paper examines the gendered food security gap and its causes in rural Malawi.

2016-02-18

Why Do Environmental Taxes Work Better in Developed Countries?

Abstract: We compare of  the  performance  of  emission  taxes  between  Colombia  and  Sweden in an experimental  setting  where  subjects are regulated  through  environmental  taxes  and  had  to decide on emission levels, compliance behavior, and adoption of an environmentally friendly technology.  Our  design  allows  us  to  analyze  the  role of variations  in  the  stringency  of  the policy  enforcement&nbsp

2016-02-18

Intra-household decision-making on intertemporal choices: An experimental study in rural China

Abstract: In this paper, we conduct a high stake experiment in rural China to investigate the determinants of individual and joint decisions regarding intertemporal choices, and estimate the relative influence of spouses on the joint decisions. We use the Convex Time Budget experimental method to elicit individual and joint decisions on how much money to allocate to an early and a later date. We find that the rates of return have significant effects on the decisions, yet both individual and joint decisions exhibit present-biased time preferences.

2016-02-18

Intertemporal choice shifts in households: Do they occur and are they good?

Abstract: We examine whether and to what extent joint choices are more or less patient and time - consistent than individual choices in households. We use data from an artefactual field experiment where both individual and joint time preferences were elicited. We find a substantial shift from individual to joint household decisions. Interestingly, joint decisions do not only generate beneficial shifts, i.e., patient and time - consistent shifts. On the contrary, a majority of the observed shifts are impatient and time - inconsistent shifts.

2016-02-18

Doing good with other people’s money: A charitable giving experiment with students in environmental sciences and economics

Abstract: We augment a standard dictator game to investigate how preferences for an environmental project relate to willingness to limit others’ choices. We explore this issue by distinguishing three student groups: economists, environmental economists, and environmental social scientists. We find that people are generally disposed to grant freedom of choice, but only within certain limits. In addition, our results are in line with the widely held belief that economists are more selfish than other people.

Pages