Essays in Environmental Economics
Abstract
This thesis presents three chapters that delve into various aspects of the role of technology and information in environmental economics and policy impacts. The first chapter investigates the influence of environmental regulations on the Canadian manufacturing sector. Over the past two decades, the sector has achieved a 40\% reduction in air pollution emissions, primarily due to regulatory interventions prompting technological adjustments within the industry. The study introduces a novel model linking firm production choices to environmental regulations, distinguishing between the primary effects of environmental tax adjustments and secondary effects from technological shifts. Analysis of data from 2004 to 2021 suggests that the primary regulatory effect is responsible for 70\% of the emission reduction but incurs a 35\% loss in aggregate manufacturing output, whereas the secondary effect accounts for the remaining 30\% reduction with a lesser impact on output.
The second chapter explores the effectiveness of cloud seeding as a hail damage mitigation strategy in Alberta, a region prone to severe hailstorms. Using a dynamic panel data model, this chapter assesses the impact of cloud seeding on radar-measured Vertically Integrated Liquid (VIL) across various storm stages, utilizing data from 187 seeded storm tracks between 2011 and 2020. The findings indicate differential impacts of seeding, with reductions in VIL in the earlier stages of storms and a slight increase in the later stages, leading to varied effectiveness. Simulation results reveal minimal cost savings from current practices, but adjusting seeding strategies could yield significant annual damage cost savings in Calgary, estimated at 23 million CAD.
The third chapter quantifies the economic implications of public disagreement on climate change in the United States, a major emitter of greenhouse gases. Despite scientific consensus on climate change, a substantial portion of the U.S. remains skeptical, creating a 'public climate change agreement gap.' This study estimates the effects of enhancing public agreement on climate change perceptions on subsequent greenhouse gas emissions and calculates the potential welfare benefits. Findings suggest that reducing the public agreement gap could lead to significant welfare improvements, potentially amounting to annual gains of up to \$78 billion.