With the increasing demand for sustainable products, greenwashing has become more prevalent and sophisticated over the past decade. To better understand the incentives for firms to greenwash, we develop an evolutionary game-theoretic model in which firms may choose to mimic green behavior without having to bear the cost linked to green investment and production. We provide the conditions for the different evolutionarily stable equilibria. In a second step, we extend the model using agent-based simulations to incorporate path-dependent investment/production costs, history-dependent mimicry effectiveness, peer effects, and localized firm interactions. We show that the simpler model with random matching offers good approximations of the equilibrium conditions in more complex setups, but market segmentation supports green investment and production in contrast to higher penalties. While curtailing opportunities to pretend green behavior boosts green production, we also find that increasing cost efficiencies encourage firms to engage in green production, even in the face of increasingly sophisticated deceptive strategies. Based on our results, we suggest trio-targeted policies that reduce the (initial) costs of green investment/production, curtail opportunities to mimic green behavior, and support segmentation.

Despite the substantial evidence linking particulate matter exposure to adverse health outcomes, a large portion of the global population, particularly in low-income countries, continues to rely on highly polluting fuels, such as wood, for cooking and heating. This study evaluates the immediate effects of wood-burning restrictions, which are triggered by air quality warnings, on levels of fine (PM2.5) and coarse (PM10) particulate matter in southern Chile. Using a difference-in-differences design that incorporates pre-policy data, we provide plausible causal estimates indicating that wood-burning restrictions lead to significant reductions in hourly PM10 and PM2.5 concentrations during the most severe air quality warning. Additional analyses, including a regression discontinuity design, further support these findings. While our analysis suggests that wood-burning restrictions are effective, they may not be sufficient to reduce air pollution concentrations to levels that are considered safe for public health.

We examine the distributional impact of domestic carbon pricing in three Sub-Saharan African countries. We combine household expenditure surveys and sectoral carbon intensity data derived from a multi-regional input-output model for Ghana, Nigeria and Uganda. Our findings indicate that domestic carbon pricing is progressive in all three countries. This primarily results from higher budget allocations for direct energy consumption in wealthier households, especially concerning motor vehicles and electrical appliances. Disparities in welfare losses within income groups are primarily due to varying energy consumption patterns. Importantly, we identify low-income households as being disproportionately affected by carbon taxes. Lump-sum transfers could fully compensate most households in the bottom two income quintiles, significantly reducing poverty. Our comparative analysis emphasizes the importance of country-specific differences in energy expenditures and carbon intensities in shaping the distributional outcomes of carbon taxes.

Climate change increasingly threatens human development, economic resilience and labour market stability. Using panel data from Chinese A-share listed firms (2007–2021), this study quantifies the employment impacts of extreme temperatures. A one-standard-deviation increase in exposure reduces employment by 0.07 per cent, equivalent to an average loss of 0.0054 workers per firm and 4.36 jobs across the sample. Extreme heat has a stronger effect than cold, with temperature bin analysis showing an average loss of 0.191 workers per firm and 15.565 jobs overall. Mechanism analyses indicate that extreme temperatures heighten operational risks and financial constraints, reducing labour demand. Internal and external buffers are identified: higher wages mitigate employment losses, government subsidies provide external support, while robot adoption and supply chain concentration show limited moderating effects. Heterogeneity analyses reveal greater vulnerabilities in underdeveloped, resource-dependent and climate-sensitive regions. Results emphasize the need for climate-adaptive policies to protect employment amid rising environmental risks.

This article examines the interplay between fiscal policy and investments in climate change mitigation and adaptation. Adaptation is funded by public revenues from taxation and public bonds, whereas households can invest in mitigation and receive subsidies. We show that adaptation and mitigation are substitutes or complements, depending on the level of economic development and fiscal policy decisions. If the capital stock is initially low, adaptation and mitigation are complements (resp. substitutes) if the mitigation subsidy is low (resp. high). When the government is in debt, we show that increasing public spending to finance adaptation and/or mitigation could be beneficial if the capital stock is high enough but could be detrimental for countries with low capital stock. Thus, we add a new argument to the debate on the optimal mix between adaptation and mitigation, namely fiscal policy and the funding schemes of these investments. Finally, we propose extensions that consider a level of adaptation proportional to pollution flow, debt financing of public investment, and public mitigation investment alongside private adaptation investment.

Increasing consumer demand for sustainably-sourced products has created a need to benchmark sustainability at the field level. To address this issue, some companies are offering incentives to producers, but are still lacking participation. This study estimated producers’ willingness to accept for participating in sustainability programs and implementing sustainable practices at the field level using a double-bounded dichotomous-choice framework. The results revealed preferences for longer contracts in length of time, industry as the verification party, supplemental benefits that yield an economic incentive, and a per-bale payment. This project will give new insights to the value and importance of documenting, verification, and traceability throughout the supply chain.

In this paper, I discuss dual collective action problems in which a resource pool has simultaneous common pool and public good aspects in its usage, such as hunting (consumption) and conservation of wildlife. I then implement laboratory experiments to evaluate how spillovers between the two related uses of nature affect the consumption and conservation habits of stakeholders. The Nash predictions suggest that even the most selfish of profit-maximizing agents have an incentive to provide equally towards resource consumption and conservation when resource spillovers are present. Results from laboratory experiments are consistent with this hypothesis. As a policy intervention, I introduced and later revoked a common pool licensing policy based on U.S. hunting and fishing licensing. Under the same theoretical framework, removing a common pool licensing policy would increase welfare for all resource stakeholders. Contrary to this, experimental evidence indicates no overall change in welfare.

Public acceptability is crucial for the effectiveness of policy implementation. The carbon trading market is widely adopted by many countries and regions to achieve carbon neutrality and mitigate climate change. Our paper utilizes China's carbon trading market as a quasi-natural experiment, drawing on microdata from the China Residential Energy Consumption Survey to analyze the policy's impact on public acceptance of carbon pricing. We find that the carbon trading market significantly reduces the acceptability of carbon prices among households working in carbon-related industries in the pilot areas. This conclusion is still valid after a series of robustness checks. Regarding the mechanism of influence, the carbon trading market raises households' perceived costs, mainly reflected in the negative impact of rising product prices and increasing living costs. Finally, enhancing public perception of carbon, improving the distribution effect and decreasing the information asymmetry of the policy implementation can improve public acceptability of carbon prices.

We propose a simple indicator for the climate-related transition risks of bank lending based on transaction-level loan data. The underlying idea is that the higher the greenhouse gas intensity of an economic activity, and thus that of the debtor involved, the higher its transition risk. The relationship is mapped through two min-max-normalised functions, each of which represents a scenario for the future characteristics of the green transition. The concept is versatile and applicable to different dimensions at different levels of aggregation (banking system or individual banks, whole economy or specific sectors). As a practical example, we discuss the proposed indicator using Hungarian data for the period 2012–2020.

Energy inefficiency and environmental damages caused by this inefficiency are increasingly common in developing countries. As the largest developing country, China is experiencing a rapid growth in outward foreign direct investment (OFDI). Do OFDI firms have higher energy efficiency in the same sector? After OFDI, how does the energy efficiency of the firms change? In this study, we employ the data from Chinese industrial firms to empirically investigate these questions. Our results show that OFDI firms have higher energy efficiency and total factor energy efficiency (TFEE) relative to non-OFDI firms in the same sector. After OFDI, firms improve energy efficiency and TFEE through expanding output scale. In addition, these effects are found to be heterogeneous in terms of energy types as well as OFDI motivations and destinations. In general, this study provides some initial evidence for the relationship between OFDI and energy performance at the firm level.

The EU's non-financial reporting (NFR) regulations have significant impacts on Global South stakeholders, firms that must report, actors lower in the value chain, and organisations seeking investment from NFR-compliant firms or institutions. This paper sets forth six proposals to improve the global equity and sustainability implications of the EU's NFR from a Global South perspective. The proposals involve (1) developing regulation cooperatively with the Global South; (2) streamlining reporting to enable the regulations to have real effects and limit incorrect accounting; (3) digitalising reporting through accessible technologies for greater accountability and lower administrative burdens; (4) mandating scope 3 emissions accounting and incentivising related investment; (5) anchoring financial institutions' role in ethical investment and bridging Northern and Southern actors; and (6) strengthening citizen data and sustainability literacy to close the circle of incentives, implementation, and impact.

We explore the theoretical conditions in which natural capital improves explanations of aggregate income growth from factor changes. With positive total factor productivity (TFP) growth, including natural capital better explains growth if natural capital growth rates exceed physical capital growth rates. With negative TFP growth and higher natural capital growth rates, natural capital worsens explanations of growth. Using a comprehensive dataset on natural resource stocks and income shares in GDP, we perform an empirical analysis with 99 countries over three time periods between 2001 and 2015 and find that 41 per cent of country-time periods meet the conditions for improved growth explanation with natural capital. Of these, 59 per cent occur because TFP growth is negative, and physical capital growth exceeds that of natural capital. In these cases, including natural capital simultaneously reduces bias in factor shares and TFP estimates and improves the share of growth explained by changes in factors.

This research investigates the Environmental Kuznets Curve (EKC) hypothesis within Brazil’s soy transportation sector. It aims to determine if CO2 emissions from soy transport show an “Inverted-U” or “N” shaped relationship with income from 2002 to 2017. Using a mathematical optimization model and System GMM for analysis, the study finds an “N” shaped EKC, indicating emissions initially increase, decrease, and then rise again with income. This suggests long-term environmental damage from sector growth, highlighting the need for targeted measures to mitigate emissions and enhance operational productivity, such as investments in intermodal transport and road efficiency improvements.

Women own or co-own almost half of the land in the US Midwest and women landowners are playing an increasingly important role in production and financial decision-making. Despite their growing influence, women landowners are less engaged in conservation programs and networks, primarily due to inadequate access to conservation services and resources, leading to a scenario where men continue to dominate participation in both governmental and private conservation initiatives. The existing body of literature further echoes this disparity, with women's perspectives and voices markedly underrepresented in the United States' conservation discourse. Aiming to bridge this gap, this article delves into the attitudes of women landowners toward conservation using a 2021 survey conducted with 135 Iowa women landowners. The survey sought to shed light on their interests in various conservation topics, their concerns regarding conservation decision-making, and their preferences concerning the sources of information and the methods through which educational content is delivered. We find that women landowners are most interested in government conservation programs, followed by soil erosion control, soil fertilizer improvement, and cover crops. We provide statistical evidence that more women operating landowners are interested in conservation topics and concerned about conservation issues than women non-operating landowners in general. We further explore the variations in conservation interests among women landowners, considering their demographic and farm-specific characteristics, to highlight the diverse perspectives within this group. Additionally, we examine the preferred channels through which women landowners wish to receive educational information, offering valuable insights for policymaking and extension services. The results underscore a preference for a mix of delivery methods among women landowners, with a particular inclination toward virtual platforms, such as periodic (e-)newsletters and webinars, and printed materials such as fact sheets or infographics, over traditional in-person formats. This nuanced understanding of women landowners' educational preferences and conservation interests serves as a foundational step toward fostering more inclusive conservation programs and networks that effectively engage and represent women in the agricultural sector.

This study investigates the linkages between changes in agricultural land use and population growth in India. We have employed long-term time series and a panel dataset of 1869 samples (267 districts × 7 time points from 1961 to 2021) to determine this. We theorize that there is an inverted “U-shape” relationship between changes in population growth and agricultural land. Our findings suggest a positive impact of population growth on the change in cultivated land. However, this relationship was not static during 1961–2021. We found a two-stage split relationship with a breakpoint in 1981. Prior to the 1980s, there was a 12% expansion in cultivated land in response to a unit increase in population growth. During the post-1980s, with a unit decline in population growth, there was a 5% reduction in cultivated land. The findings were reaffirmed through several robustness checks: analyses using alternative outcome variables, alternative break points in a segmented regression model, and spatial modeling. From a policy perspective, this study advances the need for the reduction of population growth rate in high-fertility states and the adoption of superior and green technology for agricultural intensification and diversification to stop cropland expansion at the cost of environmental sustainability.

In the past decades, a backlash against globalization has been brewing, especially in advanced economies. Despite this backlash being only partly determined by trade, we observe an increasing demand for transparency on procedures, methodologies, and results. Impact assessments (IAs) aim at identifying expected effects of trade agreements and at highlighting policymakers' concerns, thus representing an important tool to foster public acceptance. To help us identify spillovers of trade liberalization, we construct a country and sector-specific database of impact assessments. This database provides an overview of the evolution of the coverage and methodological approaches taken by the EU and US for their IAs. We rely on official EU and US sources over the period 1990–2023. We first observe differences in terms of methodology and institutional framework within and between the two regions. Secondly, the coverage of non-trade outcomes has evolved over time both for the EU and the US, with the inclusion of more labour, environmental, and human rights indicators as well as cross-cutting issues. We observe that the depth of the evaluation is correlated with the partner country's social protection and environmental performance. Lastly, we find that the inclusion of a sector in the analysis is driven by economic reasons in the EU but by political reasons in the US.

Why did the human brain evolve? This study develops a Malthusian growth model with heterogeneous agents and natural selection to explore the evolution of human brain size. We find that if the cognitive advantage of a larger brain dominates its higher metabolic costs, then the average brain size increases over time, which is consistent with the rising trend in human brain size that started over 2 million years ago. Furthermore, an improvement in hunting-gathering productivity (e.g., the discovery of using stone tools and fire in hunting animals and cooking food) helps to trigger this human brain size evolution. As the average brain size increases, the average level of hunting-gathering productivity also rises over time. Quantitatively, our model is able to replicate the trend in hominin brain evolution over the last 10 million years.

Policymakers frequently voice concerns that carbon pricing could impair economic development in the short run, especially in low-income countries such as Uganda. Using a consumer demand system for energy and food items, we assess how households’ welfare, and demand for food and energy, would respond to a carbon price of USD40/tCO2. We find welfare losses of 0.2–12 per cent of household expenditure on food and fuel, due to the carbon price. Average demand for electricity and kerosene decline by 11 and 20 per cent respectively, while firewood demand rises by 10 per cent on average. We observe shifts within food consumption baskets, with declines in the demand for meat & fish, and vegetables, alongside an increase in cereal consumption. Household nutrition is adversely impacted, with declines in protein and micronutrient intake across the population. Complementary social protection policies such as cash transfers are therefore required to ease adverse effects on economic development in Uganda.

This paper analyzes inequities in the distribution of air pollution in Mexico at the detailed scale of localities. We find that air pollution increases in areas that experience a decline in socioeconomic status. We utilize 15 years of remote sensing data on fine particulate matter (smaller than 2.5 microns) for more than 116,500 localities across Mexico. Our panel data models show that localities that face a decline in socioeconomic status experience a 0.24–0.83 per cent increase in annual mean pollution concentrations. Our results hold up to controlling for changes within each municipality and instrumenting with broader municipality level socioeconomic status to test for ecological fallacy. We find that local air pollution inequities are reduced by political participation channels, but not as much by increased share of manufacturing activities due to polluters locating in poorer neighborhoods. Highly dense, urban municipalities witness higher inequities most likely due to traffic, construction, and agricultural fires.

The additionality of forest conservation interventions is frequently questioned. In particular, they are often considered to be located in places where forests are not threatened, which points to the existence of location biases. Revisiting this location bias concept, we conceptually distinguish potential and effective additionality and theoretically consider how the objectives of the implementer affect the siting choice of the forest conservation interventions and their additionality. Our theoretical intuition is that the choices of the implementers are influenced by the quality of institutions. Our results show that (1) the implementer's objective and local institutions may lead the implementer to select a site with low development potential and low forest threat, and (2) the selection of a site with low development potential, which is frequently presented as a location bias, does not necessarily preclude additionality.