Electronic Thesis and Dissertation Repository

Thesis Format

Integrated Article

Degree

Doctor of Philosophy

Program

Economics

Supervisor

Navarro, Salvador

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.

Summary for Lay Audience

The first chapter investigates how environmental regulations have influenced the Canadian manufacturing sector's ability to clean up pollution. Over the last twenty years, this sector has reduced its air pollution emissions by 40\%. This significant decrease is largely due to environmental regulations that have prompted companies to adopt new technologies, some of which even improve productivity. The study developed a model to better understand how firms' production decisions are influenced by these regulations, analyzing the data from 2004 to 2021. It was found that the direct effects of these regulations accounted for 70\% of the emission reductions but also led to a 35\% decrease in overall production output. Technology changes motivated by regulations accounted for the remaining 30\% of emission reductions and a smaller 3\% reduction in output.

The second chapter delves into the effectiveness of cloud seeding—a technique used to reduce hail damage—in Alberta, Canada. Known for its severe hailstorms, this region's weather interventions were assessed through a model analyzing data from 2011 to 2020. The findings suggest that while cloud seeding can reduce hail intensity in the earlier stages of a storm, it may actually increase intensity in the later stages. The current approach to cloud seeding was found to yield minimal cost savings in terms of damage, leading to recommendations for policy adjustments that could potentially save Calgary an estimated 23 million CAD annually in storm damage repairs.

The third chapter addresses the economic consequences of public disagreement on climate change in the United States, a major contributor to global greenhouse gas emissions. Despite a scientific consensus on the risks of climate change, a considerable portion of the U.S. population remains skeptical. This chapter quantifies the potential benefits of increasing public agreement on climate change, linking greater public consensus to lower emissions and significant potential welfare gains. It argues that closing the gap in public climate agreement could significantly enhance national welfare.

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