Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Climate policy, equity and preferences Location: Lab 1 Session Chair: Rafael Schütz, Paris School of Economics | |
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Estimating the impact of changing preferences on the costs of the green transition Paris School of Economics, France This paper explores how shifts toward more pro-environmental preferences can impact the welfare costs of the green transition. We propose a money-metric measure of welfare change that accounts for shifting preferences, respecting both initial and final tastes. We support our approach by showing that it adheres to desirable welfare-theoretical properties. We also show that an easily estimable Fisher price index approximates our theoretical measure well. In an application, we study food consumption in France. We use a unique consumer panel combining scanner purchase data (2011–2019) and repeated surveys on environmental attitudes. In a context of greening preferences, we find that richer individuals' preferences become greener faster. Compared to consumers with stable preferences, those with greening preferences experience similar inflation in a period of low inflation dispersion (2011-2015). They experience higher inflation when prices of high-emissions goods rise less than the average (2015-2019), consistent with our proposed welfare measure. | |