Optimal tax and expenditure policy in the presence of migration – are credit restrictions important?

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Purpose: Empirical studies have found an inverted-U curve relationship between emigration and per capita income. In this paper, a theoretical underpinning for this phenomenon is presented based on credit restrictions. The implications for tax policy are also analyzed.

Policy Design

Thomas Sterner elected to the Collège de France

Thomas Sterner, Professor of Environmental Economics at the University of Gothenburg, has been elected as a visiting professor to the Collège de France, one of the world's most distinguished academic…

| Sweden

Why the EU ETS needs reforming: an empirical analysis of the impact on company investments

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The European Union's Emissions Trading Scheme (EU ETS) is so far the largest emissions trading system in the world. A rigorous ex post empirical analysis of the scheme is presented. The effect of the scheme on firms' investment decisions in carbon-reducing technologies is analysed by using detailed firm-level data from Swedish industry. Based on difference-in-difference estimation as well as a before–after difference estimation, the results reveal that the EU ETS has not had a significant effect on firms’ decisions to invest in carbon-mitigating technologies.

Climate Change, Energy, Policy Design

Adoption and disadoption of electric cookstoves in urban Ethiopia: Evidence from panel data

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Previous studies on improved cook stove adoption in developing countries use cross-sectional data, which make it difficult to control for unobserved heterogeneity and investigate what happens to adoption over time. We use robust non-linear panel data and hazard models on three rounds of panel data from urban Ethiopia to investigate the determinants of adoption and disadoption of electric cook stoves over time.

Energy, Forestry

Poverty Persistence and Intra-Household Heterogeneity in Occupations: Evidence from Urban Ethiopia

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EfD Authors:

Previous studies of poverty in developing countries have to a great extent focused on the characteristics of the household head and used these as proxies for the underlying ability of the household to generate income. This paper uses five rounds of panel data to investigate the persistence of poverty in urban Ethiopia, with a particular focus on the role of intra-household heterogeneity in occupations.

Experiments

Atmospheric Pollution in Rapidly Growing Urban Centers: Spatial Policies and Land Use Patterns

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We study the optimal and equilibrium distribution of industrial and residential land in a given region. The trade-off between the agglomeration and dispersion forces, in the form of pollution from stationary forces, production externalities, and commuting costs, determines the emergence of industrial and residential clusters across space. In this context, we define two kinds of spatial policies that can be used in order to close the gap between optimal and market allocations.

Policy Design, Air Quality