Publications

2023

Wildfire insurance, information, and self-protection

Boomhower et al. 2023, AEA Papers and Proceedings

Principal Investigator(s): Andrew Plantinga

Abstract for Wildfire insurance, information, and self-protection

Like other climate-related disasters, wildfires are intensifying. Property owners can reduce their vulnerability to wildfire losses but are not well informed about the costs and benefits of available self-protection investments. Technological advances mean that insurers are increasingly able to monitor household mitigation behavior. We revisit the problem of self-protection from risk in a setting where households have incomplete insurance and limited information about self-protection investments. Insurer discounts for self-protection generate additional value by informing households about self-protection investments that also reduce uninsured losses. This information provision increases the responsiveness of self-protection to ex post disaster assistance, with implications for optimal government transfers.

Equitable low-carbon transition pathways for California’s oil extraction

Deshmukh et al. 2023, Nature Energy

Principal Investigator(s): Ranjit Deshmukh, Olivier Deschenes, Kyle Meng

Abstract for Equitable low-carbon transition pathways for California’s oil extraction

Oil supply-side policies—setbacks, excise taxes and carbon taxes—are increasingly considered for decarbonizing the transportation sector. Understanding not only how such policies reduce oil extraction and greenhouse gas (GHG) emissions but also which communities receive the resulting health benefits and labour-market impacts is crucial for designing effective and equitable decarbonization pathways. Here we combine an empirical field-level oil-production model, an air pollution model and an employment model to characterize spatially explicit 2020–2045 decarbonization scenarios from various policies applied to California, a major oil producer with ambitious decarbonization goals. We find setbacks generate the largest avoided mortality benefits from reduced air pollution and the largest lost worker compensation, followed by excise and carbon taxes. Setbacks also yield the highest share of health benefits and the lowest share of lost worker compensation borne by disadvantaged communities. However, currently proposed setbacks may fail to meet California’s GHG targets, requiring either longer setbacks or additional supply-side policies.

Inequality in agency response: Evidence from salient wildfire events

Anderson et al. 2022, The Journal of Politics

Principal Investigator(s): Andrew Plantinga

Abstract for Inequality in agency response: Evidence from salient wildfire events

Government agencies may be an additional source of unequal representation beyond that stemming from the differential responsiveness of elected officials. We use plausibly exogenous focusing events, which raise public demands for government provision of local public goods, to examine evidence of inequality in agency decision-making. Using the empirical case of wildfire risk management in the western United States, we find that experiencing nearby wildfires raises the salience of wildfire risk and leads agencies to place a greater number of risk reduction projects nearby, even when wildfire risk has already been reduced. This effect predominates among high socioeconomic status communities, especially higher income, more educated, and whiter communities. Empirical evidence is consistent with a formal model in which public agencies perpetuate inequality due to differences in the costs of lobbying across demographically varying communities and differences across communities in the benefits to agencies of responding to their demands.

The economics of reducing food losses: Experimental evidence from improved storage technology in India

Shukla, Pullabhotla, and Baylis 2023, Food Policy

Principal Investigator(s): Kathy Baylis

Abstract for The economics of reducing food losses: Experimental evidence from improved storage technology in India

Understanding the economics of food loss-reduction technologies is crucial to promote their adoption. We offer experimental evidence on returns to technology that studies a wide range of food security outcomes and accounts for the quality, quantity, and economic gains from adoption. Using two randomized experiments on improved storage with farmers in India, we find that food loss-reduction technology delivers large gains on multiple aspects of food security. The largest benefits of loss-reduction technology come from reduced quality and economic losses. Using a novel within-farmer experiment, we offer evidence of significant economic incentives for investing in loss-reduction technology in local rural markets. Our cost-benefit analysis shows that farmers recover the full unsubsidized cost of the reusable improved storage technology in one agricultural season.

Finding harmony in marine protected area design guidelines

Burns et al. 2023, Conservation Science and Practice

Abstract for Finding harmony in marine protected area design guidelines

Widespread degradation of marine ecosystems and ecosystem services, coupled with national and global commitments to improve protection of the oceans, has led to a proliferation of efforts to designate new marine protected areas (MPAs) and MPA networks. A range of design features must be considered when designating MPAs, including MPA size and shape, level of protection, and the species and habitats protected, and evidence suggests these design elements can be crucial in determining MPA effectiveness. Over the past several decades, expansive literature has emerged providing recommendations for MPA design, and yet collectively these recommendations can be overwhelming and even contradictory for MPA planners. To address this barrier, we reviewed and synthesized 307 unique MPA design recommendations across 56 peerreviewed and gray literature publications. We created a new set of 24 condensed design guidelines grouped by conservation objectives: ecological spatial connectivity (e.g., genetic, larval, community); habitat representation; species or population persistence; mitigation of and complementarity to human activities; and permanence and adaptability. We then discuss examples of datasets, models, and tools that can be utilized to implement specific guidelines. Our review and novel synthesis can help decision-makers understand and apply MPA design recommendations to achieve desired conservation objectives.

Abstract for Impact of the 2014–2016 marine heatwave on US and Canada west coast fisheries: Surprises and lessons from key case studies

Understanding the economics of food loss-reduction technologies is crucial to promote their adoption. We offer experimental evidence on returns to technology that studies a wide range of food security outcomes and accounts for the quality, quantity, and economic gains from adoption. Using two randomized experiments on improved storage with farmers in India, we find that food loss-reduction technology delivers large gains on multiple aspects of food security. The largest benefits of loss-reduction technology come from reduced quality and economic losses. Using a novel within-farmer experiment, we offer evidence of significant economic incentives for investing in loss-reduction technology in local rural markets. Our cost-benefit analysis shows that farmers recover the full unsubsidized cost of the reusable improved storage technology in one agricultural season.

Opportunities and challenges for improving fisheries management through greater transparency in vessel tracking

Orofino et al. 2023, ICES Journal of Marine Science

Principal Investigator(s): Christopher Costello

Abstract for Opportunities and challenges for improving fisheries management through greater transparency in vessel tracking

When fisheries managers cannot see who is fishing or where fishing occurs, their scope for management interventions is limited. This lack of transparency in spatial fishing activity is considered a key enabler of illegal fishing and overfishing and hinders managers and consumers who aim to achieve sustainable fisheries. Increasing transparency in vessel location tracking is gaining momentum as a promising way to improve management of global fisheries. However, the mechanisms through which transparency in vessel activity can improve management have not been carefully studied. This paper provides a conceptual overview of the potential for greater transparency, both in quantity of vessels tracked and availability of data, from vessel tracking to help achieve sustainable fisheries goals. We identify four pathways through which these data can improve fisheries management and the conditions that enable transparency to be an effective governance tool. We qualitatively examine the costs and benefits of alternative models of transparency, including a hypothetical, fully transparent system. We highlight how potential costs and benefits of greater transparency depend on both governance context and management goals, and identify opportunities for future research to address key information gaps.

The economics of saignée in winemaking

Costello et al. 2023, Journal of Wine Economics

Principal Investigator(s): Christopher Costello, Olivier Deschenes, Andrew Plantinga

Abstract for The economics of saignée in winemaking

The winemaking technique of saignée is common for some varietals, and the ensuing flavor profiles have been carefully analyzed by oenologists. However, we argue that saignée is fundamentally about economic tradeoffs between the quantity of primary wine that is ultimately produced, the quality (and thus, price) of that wine, and the amount of rosé wine that is bled off in the process. We develop the first theoretically-grounded economic model of saignée and analyze the model to shed light on the winemaker's optimal choice of saignée, and on the properties of wine and wine markets that should empirically give rise to more, or less, saignée. The model helps to explain several real-world regularities such as the absence of saignée for most Bordeaux wines, the specialization in rosé for many wines in Provence, and the practice of moderate amounts of saignée for varietals such as grenache and pinot noir.

Global hotspots of shark interactions with industrial longline fisheries

Burns et al. 2023, Frontiers in Marine Science

Abstract for Global hotspots of shark interactions with industrial longline fisheries

Sharks are susceptible to industrial longline fishing due to their slow life histories and association with targeted tuna stocks. Identifying fished areas with high shark interaction risk is vital to protect threatened species. We harmonize shark catch records from global tuna Regional Fisheries Management Organizations (tRFMOs) from 2012–2020 and use machine learning to identify where sharks are most threatened by longline fishing. We find shark catch risk hotspots in all ocean basins, with notable high-risk areas off Southwest Africa and in the Eastern Tropical Pacific. These patterns are mostly driven by more common species such as blue sharks, though risk areas for less common, Endangered and Critically Endangered species are also identified. Clear spatial patterns of shark fishing risk identified here can be leveraged to develop spatial management strategies for threatened populations. Our results also highlight the need for coordination in data collection and dissemination by tRFMOs for effective shark management.

2022

Sunflower-associated reductions in varroa mite infestation of honey bee colonies

Palmer-Young et al. 2022, Journal of Economic Entomology

Principal Investigator(s): Kathy Baylis

Abstract for Sunflower-associated reductions in varroa mite infestation of honey bee colonies

Landscapes can affect parasite epidemiology in wild and agricultural animals. Honey bees are threatened by loss of floral resources and by parasites, principally the mite Varroa destructor and the viruses it vectors. Existing mite control relies heavily on chemical treatments that can adversely affect bees. Alternative, pesticide-free control methods are needed to mitigate infestation with these ectoparasites. Many flowering plants provide nectar and pollen that confer resistance to parasites. Enrichment of landscapes with antiparasitic floral resources could therefore provide a sustainable means of parasite control in pollinators. Floral rewards of Asteraceae plants can reduce parasitic infection in diverse bee species, including honey and bumble bees. Here, we tested the effects of sunflower (Helianthus annuus) cropland and pollen supplementation on honey bee resistance to macro- and microparasites. Although sunflower had nonsignificant effects on microparasites, We found that increased sunflower pollen availability correlated with reduced Varroa mite infestation in landscapes and pollen-supplemented colonies. At the landscape level, each doubling of sunflower crop area was associated with a 28% reduction in mite infestation. In field trials, late-summer supplementation of colonies with sunflower pollen reduced mite infestation by 2.75-fold relative to artificial pollen. United States sunflower crop acreage has declined by 2% per year since 1980, however, suggesting reduced availability of this floral resource. Although further research is needed to determine whether the observed effects represent direct inhibition of mite fecundity or mite-limiting reductions in honey bee brood-rearing, our findings suggest the potential for sunflower plantings or pollen supplements to counteract a major driver of honey bee losses worldwide.

Toward a low-carbon transition in India

Deshmukh and Chatterjee 2022, Science Magazine

Principal Investigator(s): Ranjit Deshmukh

Abstract for Toward a low-carbon transition in India

In 2021, 40% of India’s global greenhouse gas emissions came from electricity generation, mainly powered by coal plants (1). Air pollution from these power plants, composed of predominantly sulfur dioxide and particulate matter, is one of the leading causes of respiratory and heart diseases in India, which result in ∼80,000 premature deaths annually (2). Understanding the impacts of electricity sector policies aimed at mitigating carbon emissions and air pollution is critical for addressing these climate and public health crises. On page 618 of this issue, Sengupta et al. (3) examine how carbon taxes, balancing electricity generation and consumption across larger regions, and sulfur-control regulations affect near-term costs and emissions of India’s electricity sector. They find that these policies can cause inequalities in air pollution exposure across different regions.

Rural-urban migration and the re-organization of agriculture

Madhok et al. 2022, EliScholar

Principal Investigator(s): Olivier Deschenes

Abstract for Rural-urban migration and the re-organization of agriculture

This paper studies the response of agricultural production to rural labor loss during the process of urbanization. Using household microdata from India and exogenous variation in migration induced by urban income shocks interacted with distance to cities, we document sharp declines in crop production among migrant-sending households residing near cities. Households with migration opportunities do not substitute agricultural labour with capital, nor do they adopt new agricultural machinery. Instead, they divest from agriculture altogether and cultivate less land. We use a two-sector general equilibrium model with crop and land markets to trace the ensuing spatial reorganization of agriculture. Other non-migrant village residents expand farming (land market channel) and farmers in more remote villages with fewer migration opportunities adopt yield-enhancing technologies and produce more crops (crop market channel). Counterfactual simulations show that over half of the aggregate food production losses driven by urbanization is mitigated by these spillovers. This leads to a spatial reorganization in which food production moves away from urban areas and towards remote areas with low emigration.

Multiple price lists for willingness to pay elicitation

Jack, McDermott, and Sautmann 2022, NBER

Abstract for Multiple price lists for willingness to pay elicitation

Multiple price lists are a convenient tool to elicit willingness to pay (WTP) in surveys and experiments, but choice patterns such as “multiple switching” and “never switching” indicate high error rates. Existing measurement approaches often do not provide accurate standard errors and cannot correct for bias due to framing and order effects. We propose to combine a randomization approach with a random-effects latent utility model to detect bias and account for error. Data from a choice experiment in South Africa shows that significant order effects exist which, if uncorrected, would lead to distorted conclusions about subjects’ preferences. We provide templates to create a multiple price list survey instrument in SurveyCTO and analyze the resulting data using our proposed methods.

Disentangling the numbers behind agriculture-driven tropical deforestation

Pendrill et al. 2022, Science Magazine

Principal Investigator(s): Robert Heilmayr

Abstract for Disentangling the numbers behind agriculture-driven tropical deforestation

Tropical deforestation continues at alarming rates with profound impacts on ecosystems, climate, and livelihoods, prompting renewed commitments to halt its continuation. Although it is well established that agriculture is a dominant driver of deforestation, rates and mechanisms remain disputed and often lack a clear evidence base. We synthesize the best available pantropical evidence to provide clarity on how agriculture drives deforestation. Although most (90 to 99%) deforestation across the tropics 2011 to 2015 was driven by agriculture, only 45 to 65% of deforested land became productive agriculture within a few years. Therefore, ending deforestation likely requires combining measures to create deforestation-free supply chains with landscape governance interventions. We highlight key remaining evidence gaps including deforestation trends, commodity-specific land-use dynamics, and data from tropical dry forests and forests across Africa.

Environmental context dependency in species interactions

Liu and Gaines 2022, PNAS

Principal Investigator(s): Steve Gaines

Abstract for Environmental context dependency in species interactions

Ecological interactions are not uniform across time and can vary with environmental conditions. Yet, interactions among species are often measured with short-term controlled experiments whose outcomes can depend greatly on the particular environmental conditions under which they are performed. As an alternative, we use empirical dynamic modeling to estimate species interactions across a wide range of environmental conditions directly from existing long-term monitoring data. In our case study from a southern California kelp forest, we test whether interactions between multiple kelp and sea urchin species can be reliably reconstructed from time-series data and whether those interactions vary predictably in strength and direction across observed fluctuations in temperature, disturbance, and low-frequency oceanographic regimes. We show that environmental context greatly alters the strength and direction of species interactions. In particular, the state of the North Pacific Gyre Oscillation seems to drive the competitive balance between kelp species, asserting bottom-up control on kelp ecosystem dynamics. We show the importance of specifically studying variation in interaction strength, rather than mean interaction outcomes, when trying to understand the dynamics of complex ecosystems. The significant context dependency in species interactions found in this study argues for a greater utilization of long-term data and empirical dynamic modeling in studies of the dynamics of other ecosystems.

Harvest control rules used in U.S. federal fisheries management and implications for climate resilience

Free et al. 2022, Research Square

Principal Investigator(s): Steve Gaines

Abstract for Harvest control rules used in U.S. federal fisheries management and implications for climate resilience

Climate change is altering the productivity of marine fisheries and challenging the effectiveness of historical fisheries management. Harvest control rules, which describe the process for determining catch limits in fisheries, represent one pathway for promoting climate resilience.  In the United States, flexibility in how regional management councils specify harvest control rules has spawned diverse approaches for reducing catch limits to precautionarily buffer against scientific and management uncertainty, some of which may be more or less resilient to climate change. Here, we synthesize the control rules used to manage all 507 U.S. federally-managed fish stocks and stock complexes. We classified these rules into seven typologies: (1) catch-based; (2) constant catch; (3) constant escapement; (4) constant F; (5) stepped F; (6) ramped F, and (7) both stepped and ramped F. We also recorded whether the control rules included a biomass limit (“cutoff”) value or were environmentally-linked as well as the type and size of the buffers used to protect against scientific and/or management uncertainty. Finally, we review the advantages and disadvantages of each typology for managing fisheries under climate change and provide seven recommendations for updating harvest control rules to improve the resilience of U.S. federally-managed fisheries to climate change.

The impact of climate change on mortality in the United States: Benefits and costs of adaptation

Deschenes 2022, NBER

Principal Investigator(s): Olivier Deschenes

Abstract for The impact of climate change on mortality in the United States: Benefits and costs of adaptation

This paper reviews and extends the recent empirical literature on the impact of climate change on mortality and adaptation in the United States. The analysis produces several new facts. First, the reductions in the impact of extreme heat on mortality risk previously documented up to 2004 have continued up to 2019, consistent with continued investments in health-protecting adaptations to high temperatures. The second part of the paper examines the private and external costs of electricity generation and consumption related to high temperatures, a commonly-used proxy for measuring the consumption of adaptation services. Extreme temperatures increase electricity demand in the residential sector (relative to moderate temperatures), but not in the commercial, industrial, and transportation end-use sectors. The additional electricity demand in response to high temperatures results in significant external costs due to the release of local and global pollutants caused by the combustion of fossil fuels in order to produce electricity. These external costs, documented for the first time in this paper, are one order of magnitude larger than the private cost of adaptation associated with electricity consumption.

Enabling a low-carbon electricity system for Southern Africa

Chowdhury et al. 2022, Joule

Principal Investigator(s): Ranjit Deshmukh

Abstract for Enabling a low-carbon electricity system for Southern Africa

Electricity demand in the 12 conterminous countries of the Southern African Power Pool (SAPP) is projected to double by 2040. Collectively, they represent about 40% of the total electricity demand in Africa. The challenge is to meet this growing demand while limiting GHG emissions. Current regional electricity plans emphasize the development of new coal, hydropower, and natural gas, despite the rapidly declining costs of wind and solar technologies. Using a detailed electricity planning model that better represents international electricity flows and the variability of wind, solar, and hydropower, we compare all technology and transmission options on more equal footing. Our cost-optimal energy modeling finds that wind- and solar-dominated systems are actually more cost competitive than fossil fuel- or hydro-dominated ones, meeting demand growth without increasing GHG emissions. Also, policy interventions (e.g., clean energy targets or early coal retirements) can reduce emissions at additional costs.

A guide to updating the US government’s social cost of carbon

Carleton and Greenstone 2022, Review of Environmental Economics and Policy

Principal Investigator(s): Tamma Carleton

Abstract for A guide to updating the US government’s social cost of carbon

Since its release in 2010, the US government’s social cost of carbon (SCC) has played a central role in climate policy both domestically and internationally. However, rapid progress in climate science and economics over the past decade means that the original SCC estimate is no longer based on the frontier of scientific knowledge. Specifically, extensive new research about the climate, the economy, and their relationship has altered our understanding of the magnitudes of the projected physical and economic impacts of climate change, as well as their heterogeneity across space and time. This article, which was written as the Biden presidential administration was actively rebuilding the US SCC, provides concrete recommendations on how to base the SCC on the most recent research advances and thus return it to the scientific frontier.

The health and climate benefits of economic dispatch in China’s power system

Luo et al. 2022, Research Square

Principal Investigator(s): Ranjit Deshmukh

Abstract for The health and climate benefits of economic dispatch in China’s power system

China’s power system is highly regulated and uses an “equal-share" dispatch approach. However, market mechanisms are being introduced to reduce generation costs and improve system reliability. Here, we quantify the climate and human health impacts brought about by this transition, modeling China’s power system operations under economic dispatch. We find that significant reductions in mortality related to air pollution (11%) and CO2 emissions (3%) from the power sector can be attained by economic dispatch, relative to the equal-share approach, through more efficient coal-powered generation. Additional health and climate benefits can be achieved by incorporating emission externalities in electricity generation costs. However, the benefits of the transition to economic dispatch will be unevenly distributed across China and may lead to increased health damages in some regions. Our results show the potential of dispatch decision-making in electricity generation to mitigate negative impacts of power plant emissions with existing facilities in China.