Conference Agenda

Air pollution remains a persistent problem in low-and-middle income countries (LMICs). The incidence of damages is especially high amongst underprivileged communities due to lower pre-existing inputs into health and the rise of costly defensive investments (e.g. air purifiers) that are only accessible to the rich. Given regulatory failures in improving ambient air quality (Greenstone & Hanna, 2014) there is a need to explore the effectiveness of other defensive interventions in reducing the damages of exposure to high levels of air pollution. The reality of reducing air pollution in LMICs adds urgency to the investigation of the effectiveness of defensive action: even with aggressive regulatory approaches it will be many years before ambient levels are reduced to safe levels in much of the world. This session is focused on examining the effectiveness of providing information to individual households in promoting the adoption of defensive action to reduce exposure to pollution. Each paper in the session examines an intervention that provides information to households about either (a) air quality or (b) ways to take defensive action (or both). They then evaluate the effectiveness of these actions with respect to whether households take action, whether that action has health consequences, and whether the information provided changes their Willingness To Pay for additional reductions in exposure to pollution. All four papers are unified in their examination of these questions in LMICs.

The transition of the global energy system from one based on fossil energy to one based on non-fossil, renewable energy is denoted the energy transition. Much attention is focused on systemic scale changes in the research literature, with little focus on both households or even sub-national scales. Correspondingly, much of the economic analysis proceeds using a system-wide simulation/analytical framework, with little diversity in approaches used. Furthermore, the transition is anticipated to take a few decades, with short-term energy-related challenges occurring in the interim. These short-term challenges, if not dealt with appropriately, can not only lead to significant delays in, but also reduce public support for, the energy transition. In this context, the proposed session's main goals are to take a close look at the following four aspects of the energy transition using a wide diversity of approaches: diversity in methods used (stated and revealed preference, along with macro-economic models), in scale of analysis (economy-wide, household, firm-level), and in geographic scope (Sweden, Mexico, and Switzerland). Four specific aspects are considered in the studies included in the session: (i) employment; (ii) reliability and investments; (iii) incentives to manage short-term energy crises; and (iv) investments in grid-scale storage and electricity generation. These four aspects span three different levels of analysis: households, firms, and industry/economy. Thus, the proposed session aims to provide a multi-dimensional view of the energy transition, from the bird's eye macro-economic view, an intermediate level firm-level view, and finally, a much lower-level household-level view.

The circular economy (CE) intersects multiple environmental challenges. It is expected to ease the pressure on resource extraction—thereby protecting biodiversity—support the feasibility of a materials-intensive energy transition, and lower emissions by reducing resource consumption, thus combatting climate change. Finally, reducing waste and designing environmentally friendly products should lower levels of pollution. For these reasons, the European Commission considers the 2020 Circular Economy Action Plan—addressing waste recycling and product design—one of the main building blocks of the European Green Deal. To achieve these environmental objectives simultaneously, public policies must consider their interconnections and be carefully designed as a cohesive package, given that policies influence one another. Featuring insights from four innovative studies, the session highlights key market mechanisms, policy mix, and trade-offs in advancing circularity across environmental dimensions and scales.

The natural environment is highly complex and inter-connected. Ignoring this reality means that, at best, pro-environmental policies will be inefficient, and at worst they can actually exacerbate the problems they set out to address. This thematic session explores how advances in economic analysis, integrated with scientific insights, can help incorporate the complexities of the natural environment into decision making and policy. Applications to the major challenges of biodiversity loss and climate change motivate four papers, the first two of which explore the way that policy decisions are made. Specifically, the first paper addresses how policy intended to help deliver net zero emissions may be improved by accounting for the interconnected nature and spatial variation inherent in land-use decision making. The second paper then explores how even well-intended biodiversity policy can backfire if they do not account for the risk of simply offshoring damage. The remaining papers explore policy design. The third paper in the session assesses how the way in which “biodiversity net gain” requirements are implemented has major implications for the scale and spatial distribution of consequences for wild species as well as other connected environmental impacts and resultant welfare implications. The final paper addresses the question of how to design markets to facilitate trade for environmental services under “no net loss” policies, which is essential for ensuring that halting the biodiversity crisis does not come at the cost of preventing economic growth.

Exposure to high levels of ambient pollution poses significant challenges to both fostering economic growth and ensuring its equitable distribution. While often considered a local issue, air pollution can also be analyzed globally by examining its impacts across various contexts and understanding how it travels across borders via physical transport and trade redistribution. This session features five papers offering global perspectives on air pollution and its economic interactions. Papers 1 and 2 analyze its effects on economic activities in India and France, respectively. Paper 3 examines China's green energy transitions and health outcomes, while Papers 4 and 5 explore trade channels and transboundary spillovers, highlighting air pollution as an international concern.

In this session we will explore how intertemporal decision-making must account for structural dependencies, feedback mechanisms, and constraints on economic growth and sustainability. The four papers are connected through their focus on dynamically optimal approach to policy design in economic and environmental systems, be it with or without considering uncertainties. While each paper addresses different domains—disaster risk management, growth, energy transitions, tipping points and decarbonization—they share methodological similarities and collectively contribute to a deeper understanding of how policies should be structured over time to optimize long-term outcomes.

Sustainable innovations (SIs) in the agri-food sector enhancing environmental and social aspects are vital in addressing global challenges, particularly by accelerating the shift toward more sustainable and socially inclusive agricultural systems. The European Union (EU) provides a comprehensive framework of policies to support SIs in the agri-food sector (the European Green Deal setting the path to climate neutrality in 2050, the Eco-Schemes under the Common Agricultural Policy or the Circular Economy Action Plan). Before investing in SIs, it is essential to perform a cost-benefit analysis (CBA) to help stakeholders identify the potential returns on investment, prioritize resources effectively, and ensure that the proposed SIs align with the Sustainable Development Goals (SDGs). Classical CBA falls short when it excludes non-market values in the environmental and social aspects, such as various public goods. Excluding non-market values can lead to an incomplete assessment of an innovation's true impact, undervaluing critical environmental and social benefits. On the other hand, public goods lack direct monetary values, given the absence of related markets to commercialize these services and monetize their economic benefits. As a result, decisions based solely on classical CBA focusing on private benefits may favour short-term financial gains over long-term sustainability. This session provides three examples of using an extended cost-benefit analysis (ECBA) framework that integrates non-market values with traditional CBA. While the first two presentations are focussed more on the methodological issues applied to specific case studies, the third one explores how this process can be done in a co-constructed way with stakeholders to deliver impact.

This session explores innovative market and policy mechanisms for carbon dioxide removal (CDR) and emissions offsetting, focusing on their integration into existing carbon markets and policy frameworks. The presented papers examine different geographical perspectives and policy approaches, proposing implementable solutions for key issues such as market integration, intertemporal trading of CDR permits, impermanence of removal, substitution with non-CO2 greenhouse gases, and externalities. The discussion will provide insights into the design and implementation of effective CDR policy instruments, offering valuable perspectives for researchers and policymakers.