Environmental co-benefits of health policies to reduce meat consumption: A narrative review

Global meat consumption has risen steadily in recent decades, with heterogeneous growth rates across regions. While meat plays a critical role in providing essential nutrients for human health, excessive consumption of meat, particularly red and processed meat, has also been associated with a higher risk of certain chronic diseases. This has led public authorities, including the World Health Organization, to call for a reduction in meat consumption. How governments can effectively reduce the health costs of meat consumption remains a challenge as implementing effective policy instruments is complex. This paper examines health-related policy instruments and potential economic mechanisms that could reduce meat consumption. Health-related taxation could be the most effective instrument. Other policy instruments, such as informational and behavioral instruments, along with regulations, could discourage meat consumption depending on the policy design. We also provide evidence on the link between meat consumption and the environment, including climate, biodiversity, water use, and pollution. Promoting healthy behaviors by reducing meat consumption can then have environmental co-benefits and promote broader sustainable development goals. We also discuss the policy-related challenges that need to be addressed to meet environmental co-benefits.

Social cost--benefit analysis of solid waste management options with application to Mumbai, India

Managing solid waste continues to be an environmental, technical and economic challenge, especially for developing countries. Though these countries' urban local bodies (ULBs) are moving up the waste management hierarchy, most waste is still openly dumped. One key reason for this choice is the non-accounting of (a) social costs associated with open dumping (OD) and (b) direct/indirect benefits of other options. The current study conducts a complete social cost-benefit analysis (SCBA) comparing OD to sanitary landfilling, composting, bio-methanation, incineration and gasification alternatives. The study finds that when only private costs/benefits are considered, a mix of OD and sanitary landfills is preferred; however, when external costs/benefits are factored in, the mix shifts towards alternatives like incineration and gasification. These learnings from the SCBA are then applied to Mumbai, which generates 9000 tonnes of waste daily. To determine the optimal mix for Mumbai ULB, a constrained optimization exercise is carried out considering the technical feasibility of the alternatives and the ULB's capital budget. The study finds that with the current practice of OD, the net present value (NPV) of the social costs over a 30-year horizon will be over US$ 6-9 billion. However, even if one-fifth of the ULB's capital budget is allocated towards other waste management alternatives, the mix would shift towards sophisticated technologies and the NPV of social costs would reduce to around half that amount.

Capitalisation of multiple ecosystems on property prices in Auckland, New Zealand

Ecosystems and their associated services have become essential in policymaking as they often have implications for the welfare of those who live nearby. Coupled with the shift toward integrating green infrastructure, ecosystem services, and nature-based solutions in urban and environmental planning, ecosystems may capitalise on property prices. But a potential phenomenon in applications of hedonic prices models is the offsetting between amenities and disamenities values, which may result in insignificant marginal effects. Some strategies to mitigate this phenomenon involve introducing a greater categorisation of open spaces and housing submarkets typology. Hence, this paper explores the capitalisation patterns of 14 terrestrial and aquatic ecosystems across the housing market segments of Auckland, New Zealand's largest city. We used a dataset of 274 thousand sales transactions between January 2011 and December 2019. Models are estimated via OLS and unconditional quantile regressions (UQR) to account for heterogeneity, outliers and heavy-tailed distributions. UQR produce more accurate estimates of the implicit prices and lead to more effective policy recommendations. We find multiple capitalisation patterns across the prices distribution and confirm offsetting effects when ecosystems are not controlled as separate variables. This paper informs land-use decisions involving the preservation or creation of natural spaces in residential areas and improves our understanding of the interaction between their economic valuation and regional diversity.

Beyond Pigou: externalities and civil society in the supply-demand framework

The extent of voluntary cooperation in the presence of externalities is shown as an equilibrium outcome in the supply and demand framework. The analysis uses familiar ingredients to provide a new way of understanding the results of the extensive literature beginning with Buchanan, Coase, Ostrom, Shapley, Telser, Tullock, and Williamson showing that a Pigouvian tax is not the only alternative to independently acting individuals who are coordinated merely through distorted market prices. Voluntary cooperation transforms the character of the costs resulting from externalities and may have a far different incidence than Pigouvian taxes and subsidies do. The paper discusses applications including forest management, volume discounts, residential associations, energy policy, the scope of planning of household activities, and the role of workplaces in preventing infectious disease.

Drivers of the Green Paradox in Europe: An empirical application

The green paradox describes an undesirable and socially inefficient phenomenon caused by the expansionary reactions of the supply as a response to the various mechanisms that combat climate change. This article seeks to understand and aggregate the different drivers of this phenomenon portrayed in the literature, as well the empirical evidence associated and the proposed solutions. For this purpose, compilation and systematization of the various scientific contributions up to date in this context have been elaborated and the driver's effective impact on the European scenario was evaluated, using a balanced panel for 28 countries in Europe over 1996-2018 and the generalized method of moments (GMM) econometric procedure. Proxies for all provocateurs identified in the state of the art were incorporated in this study: (i) environmental taxes, (ii) green support, (iii) uncertain property rights, (iv) emissions limit (cap), and (v) temporal lag. The dependent variables used are (1) the ratio between the annual production/extraction of oil and the consumption of primary energy and (2) the carbon dioxide (CO2) intensity. We have obtained evidences that the hiatus in the implementation of the European emission cap mechanism has generated a strong green paradox. Moreover, a robust reflection regarding the economic and environmental adequacy of green supports should be considered due to its questionable net benefits. Lastly, we offer some recommendations of public environmental policies that escape the paradoxical phenomenon, through the enunciation of the conditionalities of these provocateurs.

Effects of the vaccination against SARS-CoV-2 on infections and on hospitalizations in European countries

Since December 2020 vaccines against the SARS-CoV-2 virus have been available. However, little is known regarding their effects on infections and on hospitalizations. To gain insight into this topic we empirically analyze the effects of the vaccinations against SARS-CoV-2 for European countries beginning 2021 to February 2022 with weekly data. We perform panel fixed effects estimations, GMM estimations and nonlinear penalized spline estimations. We find a statistically significant and positive relationship between the share of infections with the SARS-CoV-2 virus and the share of vaccinated people in nine estimations while one estimation output was insignificant. Regarding hospitalizations, six out of ten estimations yielded a statistically insignificant relationship, and three estimation results were weakly statistically significant with a negative coefficient and one indicated a statistically significant negative relation. Hence, there is empirical evidence for a positive relationship between infections and the share of vaccinated people whereas we find weak empirical evidence for a negative relation between vaccinations and hospitalizations. The implication of our analysis is that vaccinations alone cannot end the pandemic. Rather developing effective medicines should be seen as an additional measure.

Supplementary Information

The online version contains supplementary material available at 10.1007/s43546-023-00445-0.

Biopharmaceutical R&D outsourcing: Short-term gain for long-term pain?

Research and development (R&D) outsourcing offers some obvious productivity benefits (e.g., access to new technology, variabilised costs, risk sharing, etc.). However, recent work in economics points to a productivity headwind at the level of the innovation ecosystem. The market for technologies with economies of scope and knowledge spillovers (those with the biggest impact on industry economics and social welfare) has structural features that allow customers to capture a disproportionate share of economic value and transfer a disproportionate share of economic risk to technology providers, even though the providers aim to maximise profit. This reduces the incentives to invest in new ventures that specialise in the most promising early-stage projects. Therefore, near-term gains from R&D outsourcing can be offset by slower innovation in the long run.

On the management of population immunity

This paper considers a susceptible-infected-recovered type model of infectious diseases, such as COVID-19 or swine flu, in which costly treatment or vaccination confers immunity on recovered individuals. Once immune, individuals indirectly protect the remaining susceptibles, who benefit from a measure of herd immunity. Treatment and vaccination directly induce such herd immunity, which builds up over time. Optimal treatment is shown to involve intervention at early stages of the epidemic, while optimal vaccination may defer intervention to intermediate stages. Thus, while treatment and vaccination have superficial similarities, their effects and desirability at different stages of the epidemic are different. Equilibrium vaccination is qualitatively similar to socially optimal vaccination, while equilibrium treatment differs in nature from socially optimal treatment. The optimal policies are compared to traditional non-economic public health interventions which rely on herd immunity thresholds.

A comprehensive review on integrative approach for sustainable management of plastic waste and its associated externalities

The management of post-consumer discarded plastic wastes (PCPW) creates new challenges in developing countries due to the lack of amenities, technological interventions, and associated negative environmental externalities. The fate of untreated recyclable and non-recyclable plastic wastes lies in open dumping along with other solid waste, and improper management leads to environmental externalities such as pollution, global climate change, and health issues. Additionally, open dumping upsurges the emerging microplastics and nano plastics (MNPs) contaminants. The externalities depend on the waste generating sources (household, industries, commercial), waste composition, and its characteristics. However, urban mining can minimize environmental externalities where waste plastics can convert into potential anthropogenic resources and also helps in achieving the target of sustainable development goals (SDGs 11 & 12). Moreover, various treatment technologies that help in the sustainable utilization of plastic wastes are extensively reviewed in this study and evaluate the costs benefits arising during various stages of treating plastic waste through recycling (R), incineration (I), and landfilling (L). The recycling of plastic waste has demonstrated the lowest impact on global warming potential (GWP) and total energy use (TEU), followed by landfilling and incineration (R < L < I). Nevertheless, when energy is recovered from inert (non-recyclable) plastic waste in the form of fuel or by its utilization in construction purposes, the environmental impacts are more negligible (Incineration < Landfilling). Therefore, this study determines the significance of circular economy with legislative approach and standards on plastic waste management, which help in reducing environmental externalities besides yielding a secondary resource as energy and materials through urban mining. A sustainable plastic waste management (SPWM) model is proposed for developing countries to convert plastic waste into resources and use it as a sustainable tool in urban mining.

Core-stability over networks with widespread externalities

The Covid-19 epidemic highlighted the significance of externalities: contacts with other people affect the chances of getting infected for our entire network. We study endogenous network formation where not only players or pairs but larger coalitions can, cooperatively change the network. We introduce a model for coalitional network stability for networks with widespread externalities. The network function form generalises the partition function form of cooperative games in allowing the network to be taken into account. The recursive core for network function form games generalises the recursive core for such environments. We present two simple examples to illustrate positive and negative externalities. The first is of a favour network and show that the core is nonempty when players must pay transfers to intermediaries; this simple setting also models economic situations such as airline networks. The second models social contacts during an epidemic and finds social bubbles as the solution.

To lockdown or not against COVID19: Can the power of education provide the answer?

Global education is a well-known positive externality associated with children-parents knowledge spillover. More education may also lead to increased communication among family members regarding health knowledge and skills acquired at or after school, positively affecting health behavior. One important aspect that should be considered by policy makers is the potential promotion of social behavior adapted to the COVID2019 pandemic via the education system. The current study attempts to investigate the relationships between infection and recovery rates from coronavirus and the educational achievement of the population at the US statewide level. Based on the ranking of US States (including US sponsored areas) according to the percent of the population that completed high school and above from the top (93%) to the bottom (68.9%), findings suggest that as the level of educational achievement drops, projected infection rates rise and projected recovery rates drop. Research findings demonstrate the importance of educational achievement in addressing the coronavirus pandemic. Specifically, avoiding closings and opening the school systems under the appropriate limitations may have the long-run effect of children-parents knowledge spillover regarding the COVID19 pandemic. This, in turn, might promote public re-education and spread the adoption of desirable social behavior under conditions of COVID19 pandemic, such as, social distancing and wearing masks.

JUE Insight: College student travel contributed to local COVID-19 spread

Due to the suspension of in-person classes in response to the COVID-19 pandemic, students at universities with earlier spring breaks traveled and returned to campus while those with later spring breaks largely did not. We use variation in academic calendars to study how travel affected the evolution of COVID-19 cases and mortality. Estimates imply that counties with more early spring break students had a higher growth rate of cases than counties with fewer early spring break students. The increase in case growth rates peaked two weeks after spring break. Effects are larger for universities with students more likely to travel through airports, to New York City, and to popular Florida destinations. Consistent with secondary spread to more vulnerable populations, we find a delayed increase in mortality growth rates. Lastly, we present evidence that viral infection transmission due to college student travel also occurred prior to the COVID-19 pandemic.

Welfare economics of managing an epidemic: an exposition

This paper reviews recent findings on the normative analysis of private and governmental countermeasures against infectious diseases, focusing on COVID-19. Based on a model that relates the economic activity to infectious disease epidemics, policies that maximize social welfare are considered. Lockdowns in many countries are measures that restrict economic activity over a wide area, and the economic damage they cause is extremely large. Existing studies on the net benefit of lockdown implemented in 2020 have reached mixed conclusions as to whether it is warranted or not. Although the estimates of costs and effects are relatively stable, the setting of the value of a statistical life for converting effects into benefits has a wide range and is also likely to overestimate benefits. Therefore, a careful procedure for setting is particularly crucial to obtain a reliable evaluation of countermeasures. Compared to uniform restriction of activities, taking measures to restrict activities by selecting targets may improve efficiency. Attributes that can be used to select targets include those that can be identified at little or no cost, such as age and industry, and those that can only be identified at a cost, such as close contact with infectious individuals and the presence of pathogens. In comparison to lockdown, these measures may reduce human suffering and economic suffering. No trade-off exists between uniform activity restrictions and selective activity restrictions.

How trade can drive inclusive and sustainable food system outcomes in food deficit low-income countries

Recent decades have seen food markets and value chains become increasingly global-a trend that creates challenges as well as opportunities for food systems. Positive trade effects on food security are not always self-evident in food deficit low-income countries. Moreover, whereas international trade may also be used to balance regional differences in climate change impacts and biodiversity, trade can exacerbate environmental challenges associated with food production, land use and climate change. This article argues that, for trade to drive inclusive and sustainable growth of nutritious food production in food deficit low-income countries, policies and investments in these countries must focus on three key priorities: 1) diversifying production and markets to increase resilience to external shocks; 2) enhancing competitiveness and improving market access for local farmers and SMEs, and 3) incorporating externalities in international trade. The latter requires collective international action.

Competition-driven physician-induced demand

This paper empirically investigates how competition affects physicians' opportunistic behavior in the context of the utilization of MRI scanners. We examine micro-panel data on Japanese hospitals, where we observe how physicians change their usage of MRI scanners in response to MRI adoption by nearby hospitals. We identify competition-driven physician-induced demand: Hospitals lose patients because of MRI adoption by nearby hospitals, and, to compensate for this loss, physicians perform more MRI scans per patient. Although competition may benefit consumers through better access to MRI scanners, it also causes additional physician-induced demand.

The incidence and magnitude of the health costs of in-person schooling during the COVID-19 pandemic

The health costs of in-person schooling during the pandemic, if any, fall primarily on the families of students, largely owing to the fact that students significantly outnumber teachers. Data from North Carolina, Wisconsin, Australia, England, and Israel covering almost 80 million person-days in school during 2020 help assess the magnitude of the fatality risks of in-person schooling, accounting for mitigation protocols as well as the age and living arrangements of students and teachers. The risks of in-person schooling to unvaccinated teachers are, for those not yet elderly, small enough to challenge comprehension. Valued at a VSL of $10 million, the average daily fatality cost ranges from $0.01 for a young teacher living alone to as much as $29 for an elderly teacher living with an elderly spouse. For each 22 million unvaccinated students and teachers schooling in-person for a 5-day week during the pandemic, the expected number of fatalities among teachers and their spouses is one or less.

District heating networks: an inter-comparison of environmental indicators

The installation of district heating (DH) systems constitutes an advantage from the energetic, climate, and air quality aspects. However, the configuration and operational features of a DH system affect significantly its environmental performance. The objective of the present study is the energetic and environmental assessment of DH networks that present differences in size and operating configurations, to define relevant environmental performance indicators. Three case studies in Italy are analyzed, following a methodology based on the impact pathway approach that was presented by the authors in previous studies. Case studies are evaluated in terms of total emission, pollutant concentration (NO_x, CO, PM), and health damage external costs. Results show that lower pollutant emissions are associated with the installation of a DH system compared to autonomous residential boilers. Air quality is also improved and health externalities are reduced. The results of CO₂ savings are differentiated depending on the efficiency and emission factors of the systems. An inter-comparison of different cases is then presented, based on the elaboration of specific indicators of environmental and health impacts. This section shows that, besides the size of the DH system, other factors, such as population density and geographical distribution of pollutants concentration, are important. Among the indicators considered, those based on health externalities provide more complete and comparable information on the final impact of the alternative solutions on the exposed population. Their application seems thus promising for the evaluation of alternative planning strategies for DH systems.

Implementation of a performance-based financing scheme in Malawi and resulting externalities on the quality of care of non-incentivized services

Background

Countries in Africa progressively implement performance-based financing schemes to improve the quality of care provided by maternal, newborn and child health services. Beyond its direct effects on service provision, evidence suggests that performance-based financing can also generate positive externalities on service utilization, such as increased use of those services that reached higher quality standards after effective scheme implementation. Little, however, is known about externalities generated within non-incentivized health services, such as positive or negative effects on the quality of services within the continuum of maternal care.

Methods

We explored whether a performance-based financing scheme in Malawi designed to improve the quality of childbirth service provision resulted positive or negative externalities on the quality of non-targeted antenatal care provision. This non-randomized controlled pre-post-test study followed the phased enrolment of facilities into a performance-based financing scheme across four districts over a two-year period. Effects of the scheme were assessed by various composite scores measuring facilities’ readiness to provide quality antenatal care, as well as the quality of screening, prevention, and education processes offered during observed antenatal care consultations.

Results

Our study did not identify any statistically significant effects on the quality of ANC provision attributable to the implemented performance-based financing scheme. Our findings therefore suggest not only the absence of positive externalities, but also the absence of any negative externalities generated within antenatal care service provision as a result of the scheme implementation in Malawi.

Conclusions

Prior research has shown that the Malawian performance-based financing scheme was sufficiently effective to improve the quality of incentivized childbirth service provision. Our findings further indicate that scheme implementation did not affect the quality of non-incentivized but clinically related antenatal care services. While no positive externalities could be identified, we also did not observe any negative externalities attributable to the scheme’s implementation. While performance-based incentives might be successful in improving targeted health care processes, they have limited potential in producing externalities – neither positive nor negative – on the provision quality of related non-incentivized services.

Supplementary Information

The online version contains supplementary material available at 10.1186/s12884-021-03880-9.

Is investment in Climate-Smart-agricultural practices the option for the future? Cost and benefit analysis evidence from Ghana

A majority of smallholder farmers in sub-Saharan Africa (SSA) countries depend to a large extent on agriculture for food security and income. Efforts aimed at improving farm-related profitability are therefore important to improving livelihoods among smallholder farmers. In Ghana, for example, smallholder farmers that depend on agriculture face serious risks especially those related to climate change and variability and soil degradation. Notwithstanding these dangers, evidence of the published literature on how best to tackle these challenges is limited. Over the recent decades, however, there has been advancement by programs channelling resources into Climate-Smart Agricultural (CSA) practices to improving smallholder livelihoods and food security. The interest in advancing investment in CSA practices is a key pathway that has the potential to significantly reduce the negative effect of climate change and variability risks on smallholder farmers livelihoods. Investing in CSA practices is also a key pathway to improving farm yield per unit area. Consequently, smallholder farmers are adopting and implementing CSA practices. Despite that, a gap still exists on the profitability of undertaking such an investment, as this is key in determining the sustainability of CSA practices. On this basis, the present study undertook a detailed cost-benefit analysis (CBA) of seven CSA practices identified with smallholder farmers in the coastal savannah agro-ecological zone of Ghana. A total of 48 smallholder farmers that had adopted these practices were studied. Three CBA indicators namely the net present value (NPV), internal rate of return (IRR) and payback period (PP) were assessed for each of the seven CSA practices. The results showed that out of the seven CSA practices examined, six of them were profitably suitable for adoption and scaling up from the perspective of smallholder farmers as well as the public perspective. The finding from this study, therefore, fill the current information gap in the literature on the costs and benefits of adopting CSA practices on household livelihoods in Ghana. Such a finding is critical to the promotion and scaling up the adoption of CSA practices by smallholder farmers and serve as a basis of formulating appropriate guidelines and policies for supporting CSA practices.

A methodology for the technical-economic analysis of municipal solid waste systems based on social cost-benefit analysis with a valuation of externalities

Countries face a serious problem due to the generation and management of higher volumes of waste. Large-scale production of waste has promoted the establishment of various operations (collection, transport, treatment and disposal) for its management. When a MSW management system is implemented, it can generate different impacts or consequences (internal or external impacts). Generally, external impacts (social and environmental impacts) are not reflected in MSW economic analysis or taken into consideration in decision-making processes in regard to MSW management options. For this reason, the objective of this paper is present a methodology with which is viable to conduct the technical-economic analysis of municipal solid waste management projects based on social cost-benefit analysis (sCBA) as it considers internal and external impacts. Its main objectives are to determine the total benefits (the difference between revenues and costs) generated by a project and to reduce uncertainty and risk of investing in particular MSW management system. Finally, a case study was carried out to verify the validity of the methodology through analysis and valuation of different impacts of a light packaging waste and bulky waste facility. Through the application of the methodology, it has been possible to visualize that this facility is viable operationally (B_P = 42.94 €/ton) as economically (B_T = 87.73 €/ton).

Prosociality predicts health behaviors during the COVID-19 pandemic

Socially responsible behavior is crucial for slowing the spread of infectious diseases. However, economic and epidemiological models of disease transmission abstract from prosocial motivations as a driver of behaviors that impact the health of others. In an incentivized study, we show that a large majority of people are very reluctant to put others at risk for their personal benefit. Moreover, this experimental measure of prosociality predicts health behaviors during the COVID-19 pandemic, measured in a separate and ostensibly unrelated study with the same people. Prosocial individuals are more likely to follow physical distancing guidelines, stay home when sick, and buy face masks. We also find that prosociality measured two years before the pandemic predicts health behaviors during the pandemic. Our findings indicate that prosociality is a stable, long-term predictor of policy-relevant behaviors, suggesting that the impact of policies on a population may depend on the degree of prosociality.

Prosociality predicts health behaviors during the COVID-19 pandemic

Socially responsible behavior is crucial for slowing the spread of infectious diseases. However, economic and epidemiological models of disease transmission abstract from prosocial motivations as a driver of behaviors that impact the health of others. In an incentivized study, we show that a large majority of people are very reluctant to put others at risk for their personal benefit. Moreover, this experimental measure of prosociality predicts health behaviors during the COVID-19 pandemic, measured in a separate and ostensibly unrelated study with the same people. Prosocial individuals are more likely to follow physical distancing guidelines, stay home when sick, and buy face masks. We also find that prosociality measured two years before the pandemic predicts health behaviors during the pandemic. Our findings indicate that prosociality is a stable, long-term predictor of policy-relevant behaviors, suggesting that the impact of policies on a population may depend on the degree of prosociality.

Potential of cold-ironing for the reduction of externalities from in-port shipping emissions: The state-owned Spanish port system case

This paper provides insights into the potential of cold-ironing for the reduction of externalities. External cost derived from the emissions of CO₂, NO_x, SO_x, and PM from berthed ships in the Spanish port system during 2016 are estimated providing a Spain-wide empirical evidence into where the highest externalities exist and where, on a port by port level, the introduction of cold ironing could yield the highest potential on reducing said externalities. The combined overall external costs from both local and global effects of shipping emissions from berthed vessels were between 326 and 440 million Euro. Eco-efficiency parameters are also obtained. It is found that the population in the port city as well as the composition of traffic are key factors when the external costs are determined, and they should be considered when the investment decision about where cold ironing should be placed is taken.

Asocial capital: Civic culture and social distancing during COVID-19

Social distancing can slow the spread of COVID-19 if citizens comply with it and internalize the cost of their mobility on others. We study how civic values mediate this process using data on mobility across Italian provinces between January and May 2020. We find that after the virus outbreak mobility declined, but significantly more in areas with higher civic capital, both before and after a mandatory national lockdown. The effect is not driven by differences in the risk of contagion, health-care capacity, geographic socioeconomic and demographic factors, or by a general North-South divide. Simulating a SIR model calibrated on Italy, we estimate that if all provinces had the same civic capital as those in top-quartile, COVID-related deaths would have been about 60% lower. We find consistent results for Germany where the incidence of the pandemic and restrictions to mobility were milder.

Asocial capital: Civic culture and social distancing during COVID-19

Social distancing can slow the spread of COVID-19 if citizens comply with it and internalize the cost of their mobility on others. We study how civic values mediate this process using data on mobility across Italian provinces between January and May 2020. We find that after the virus outbreak mobility declined, but significantly more in areas with higher civic capital, both before and after a mandatory national lockdown. The effect is not driven by differences in the risk of contagion, health-care capacity, geographic socioeconomic and demographic factors, or by a general North-South divide. Simulating a SIR model calibrated on Italy, we estimate that if all provinces had the same civic capital as those in top-quartile, COVID-related deaths would have been about 60% lower. We find consistent results for Germany where the incidence of the pandemic and restrictions to mobility were milder.

Unintended Consequences: Ambiguity Neglect and Policy Ineffectiveness

When a policymaker introduces a novel policy, she will not know what citizens' choices will be under the policy, and citizens themselves may have to construct new choice sets. This imparts inherent ambiguity to novel policy implementation: The policymaker does not know the probability that citizens will select actions that align with her policy. Assuming that citizens will follow a fixed approach may expose the policymaker to ambiguity neglect, which can result in unintended consequences. We provide examples and a simple formalization. Our results suggest that before implementing novel policies, policymakers should attempt to elicit preferences from citizens.

Technical-economic analysis of a municipal solid waste energy recovery facility in Spain: A case study

The aim of this work is to carry out a technical-economic analysis of an energy recovery facility (ERF) located in Sant Adrià de Besòs, Barcelona, Spain through a methodology based on social Cost-Benefit analysis, which considers the private impacts and externalities (social and environmental impacts) to determine the Total Benefit (the difference between revenues and costs) and decide if it is both operationally and economically profitable. The ERF plays an important role in Barcelona and its environs in generating energy, preventing the residual waste from being sent to landfills and therefore helping to comply with the objectives fixed by the European Commission. The key point of this work is the identification, frequency, quantification and monetary valuation of the impacts generated by the ERF, such as infrastructure costs, sale of energy, CO₂ emissions, the effects on public health, among others; providing a guide to future researchers and policymakers interested in the economic valuation of MSW management systems. Applying the methodology, it can be seen that the facility is both operationally (B_P = 9.86 €/ton) and economically (B_T = 23.97 €/ton) profitable. The results show that the ERF has high private costs, however, due to its high revenues from the sale of energy and services, the facility is operationally profitable, but with a low private benefit per ton treated. Externalities play an important role since they increase the Total Benefit and make the ERF more economic reliable.

Valuation of air pollution externalities: comparative assessment of economic damage and emission reduction under COVID-19 lockdown

Air pollution (AP) is one of the major causes of health risks as it leads to widespread morbidity and mortality each year. Its environmental impacts include acid rains, reduced visibility, but more importantly and significantly, it affects human health. The price tag of not managing AP is seen in the rise of chronic obstructive pulmonary disease (COPD), cardiovascular disease, and respiratory ailments like asthma and chronic bronchitis. But as the world battles the corona pandemic, COVID-19 lockdown has abruptly halted human activity, leading to a significant reduction in AP levels. The effect of this reduction is captured by reduced cases of morbidity and mortality associated with air pollution. The current study aims to monetarily quantify the decline in health impacts due to reduced AP levels under lockdown scenario, as against business as usual, for four cities-Delhi, London, Paris, and Wuhan. The exposure assessment with respect to pollutants like particulate matter (PM_2.5 and PM₁₀), NO₂, and SO₂ are evaluated. Value of statistical life (VSL), cost of illness (CoI), and per capita income (PCI) for disability-adjusted life years (DALY) are used to monetize the health impacts for the year 2019 and 2020, considering the respective period of COVID-19 lockdown of four cities. The preventive benefits related to reduced AP due to lockdown is evaluated in comparison to economic damage sustained by these four cities. This helps in understanding the magnitude of actual damage and brings out a more holistic picture of the damages related to lockdown.

Life Cycle Air Emissions External Costs Assessment for Comparing Electric and Traditional Passenger Cars

This study compares the environmental air emissions external costs of electric, gasoline, and diesel private passenger cars during their entire life cycle. The results provide the decision makers with a complementary and unconventional interpretation of the results of an ISO 14040-compliant life cycle assessment (LCA). Indeed, LCA results are often difficult to communicate and to be understood by the general public; on the other hand, an environmental external costs evaluation, where a single monetary value synthesizes the environmental impacts, can be easily understood, communicated to the broad public, and compared with taxes, incentives, and other economic tools. In the present study, we demonstrate that it is possible to carry out the application of a damage factor to the physical inventory flow. The application of this methodology to an Italian context leads to the conclusion that if we compare the 3 types of vehicles-electric, diesel, and gasoline-of an average midsize car (e.g., Volkswagen Golf), the electric version produces less external cost than the traditional internal combustion engine vehicles, considering both air pollution and climate change. The total life cycle air emissions externalities are 12.07 €/1000 km for the electric version, 21.30 €/1000 km for the gasoline vehicle, and 24.25  €/1000 km for the diesel vehicle. At the same time, the electric vehicle produces less external cost related to the air emissions considering both the entire life cycle and only the processes that occur in Italy. Integr Environ Assess Manag 2019;00:1-11. © 2019 The Authors. Integrated Environmental Assessment and Management published by Wiley Periodicals, Inc. on behalf of Society of Environmental Toxicology & Chemistry (SETAC).

One lab, two firms, many possibilities: On R&D outsourcing in the biopharmaceutical industry

We draw from documented characteristics of the biopharmaceutical industry to construct a model where two firms can choose to outsource R&D to an external unit, and/or engage in internal R&D, before competing in a final market. We investigate the distribution of profits among market participants, and the incentives to coordinate outsourcing activities or to integrate R&D and production. Consistent with the empirical evidence, we find that the sign and magnitude of an aggregate measure of direct (inter-firm) and indirect (through the external unit) technological externalities drives the distribution of industry profits, with higher returns to the external unit when involved in development (clinical trials) than in early-stage research (drug discovery). In the latter case, the delinkage of investment incentives from industry value, together with the ability of firms to transfer risks to the external unit, imply a vulnerability of early-stage investors' returns to negative shocks, and the likely abandonment of projects with economic and medical value. We also find that competition in the equity market makes a buyout by one of the two firms more profitable to a research biotech than to a clinical services unit, and can stimulate early-stage investments. However, this long-term incentive can be minimal, notably if the superior efficiency of outsourced operations originates from economies of scope that can hardly be exploited when a firm takes control of the external unit exclusively for itself. R&D outsourcing thus does not always qualify as a relevant pathway to address the declining productivity in innovation that has characterized the industry over several decades.

Robust eco-efficiency assessment of hydrogen from biomass gasification as an alternative to conventional hydrogen: A life-cycle study with and without external costs

Hydrogen is a key product for the decarbonisation of the energy sector. Nevertheless, because of the high number of technical options available for hydrogen production, their suitability needs to be thoroughly evaluated from a life-cycle perspective. The standardised concept of eco-efficiency is suitable for this purpose since it relates, with a life-cycle perspective, the environmental performance of a product system to its value. Hence, this work benchmarks the eco-efficiency performance of renewable hydrogen produced through biomass gasification against conventional hydrogen from the steam reforming of natural gas. For the eco-efficiency assessment, the harmonised environmental indicators of global warming, acidification and cumulative non-renewable energy demand were individually used, while the product system value was based on the levelised cost of hydrogen with/without internalisation of the external socio-environmental costs associated with climate change and human health. On the one hand, when the environmental and economic performances are separately considered, hydrogen from biomass gasification performs significantly better than hydrogen from steam methane reforming under environmental aspects (e.g., greenhouse gas emissions saving of 98%), whereas the opposite conclusion was found from an economic standpoint (levelised cost of 3.59 € and 2.17 € per kilogramme of renewable and fossil hydrogen, respectively). On the other hand, when combining life-cycle environmental and economic indicators under the umbrella of the eco-efficiency assessment, it is concluded that the renewable hydrogen option outperforms the conventional one, which is further remarked when implementing socio-environmental externalities. In this regard, a relative eco-efficiency score above 14 was estimated for the renewable hydrogen option when benchmarked against conventional hydrogen.

Net incremental indirect external benefit of manufacturing recycled aggregate concrete

Concrete waste (CW) either reaches landfill with mixed waste or crushed to produce crushed concrete (CC) used as a road-base product in Australia. The coarse portion of CC, referred to as recycled concrete aggregate (RCA) has the potential to be used as an aggregate in structural concrete replacing natural aggregate (NA). The environmental performance of RAC has been studied in comparison to NAC, in terms of direct environmental implications (DEI) concerning the processes in the production chain of these products. However, when replacement at industry level is considered, the implications go beyond the DEI, and affect a series of other products/processes within a system boundary, referred to as indirect environmental implications (IEI). This paper quantifies the key IEI associated with the use of RCA in structural concrete and evaluates the external costs and benefits associated with it using economic evaluation methods. The net benefit associated with the avoidance of landfill of CW, extraction of NA, and transportation of waste and by-products are the major externalities identified and quantified in this paper. Evaluation of these suggest that there is a significant net benefit ranging from 9% to 28% of the price of natural aggregate concrete (NAC) with the production of recycled aggregate concrete (RAC), for RCA replacement rates between 30% and 100%.

Managing Disease Risks from Trade: Strategic Behavior with Many Choices and Price Effects

An individual's infectious disease risks, and hence the individual's incentives for risk mitigation, may be influenced by others' risk management choices. If so, then there will be strategic interactions among individuals, whereby each makes his or her own risk management decisions based, at least in part, on the expected decisions of others. Prior work has shown that multiple equilibria could arise in this setting, with one equilibrium being a coordination failure in which individuals make too few investments in protection. However, these results are largely based on simplified models involving a single management choice and fixed prices that may influence risk management incentives. Relaxing these assumptions, we find strategic interactions influence, and are influenced by, choices involving multiple management options and market price effects. In particular, we find these features can reduce or eliminate concerns about multiple equilibria and coordination failure. This has important policy implications relative to simpler models.

Life-cycle consequences of internalising socio-environmental externalities of power generation

Current national energy sectors are generally unsustainable. Within this context, energy policy-makers face the need to move from economy- to sustainability-oriented schemes. Beyond the integration of the sustainability concept into energy policies through the implementation of techno-economic, environmental and/or social restrictions, other approaches propose the use of externalities -based on life-cycle emissions- to deeply take into account sustainability in the design of the future energy system. In this sense, this work evaluates the consequences of internalising socio-environmental externalities associated with power generation. Besides the calculation of external costs of power generation technologies and their implementation in an energy systems optimisation model for Spain, the life-cycle consequences of this internalisation are explored. This involves the prospective analysis of the evolution of the sustainability indicators on which the externalities are founded, i.e. climate change and human health. For the first time, this is done by endogenously integrating the life-cycle indicators into the energy systems optimisation model. The results show that the internalisation of externalities highly influences the evolution of the electricity production mix as well as the corresponding life-cycle profile, hastening the decarbonisation of the power generation system and thus leading to a significant decrease in life-cycle impacts. This effect is observed both when internalising only climate change externalities and when internalising additionally human health external costs.

The economic efficiency and equity of government policies on brucellosis: comparative insights from Albania and the United States of America

Brucellosis is a zoonotic bacterial disease that causes recurring febrile illness in humans, as well as reproductive failure and reduced milk production in livestock. The cost of brucellosis is equal to the sum of lost productivity of humans and animals, as well as private and public expenditures on brucellosis surveillance, prevention, control and treatment. In Albania, Brucella abortus and B. melitensis affect humans, cattle and small ruminants. In the United States, B. abortus affects cattle and wild ungulates in the Greater Yellowstone Area. These two case studies illustrate the importance of place-specific context in developing sustainable and effective brucellosis mitigation policies. Government regulations and mitigation strategies should be designed with consideration of all costs and benefits, both to public agencies and private stakeholders. Policy-makers should, for example, weigh the benefits of a regulation that increases epidemiological certainty against the costs of compliance for producers and households. The distribution of costs and benefits amongst public agencies and private individuals can have important implications for a policy's economic efficiency and equity quite apart from their total magnitude.

The social benefits of WEEE re-use schemes. A cost benefit analysis for PCs in Spain

One goal of the new European legislation set out in WEEE Directive 2012/19/UE is the promotion of WEEE re-use schemes. However, some authors are rather sceptical about the contribution of WEEE re-use schemes to improve resource efficiency. In order to evaluate and to design adequate policy instruments, some authors recommend the cost-benefit analysis (CBA) as a compulsory first step. In this context, the main contribution of this paper is to enlarge the empirical literature by providing a CBA of re-use schemes versus recycling processes of PCs. The analysis is made for Spain by quantifying in monetary terms the social damages of environmental impacts such as climate change, human toxicity, particulate matter formation, metal depletion, etc. Our results suggest that promoting re-use against recycling (and consequently the need for manufacturing a new PC from raw materials) may reduce environmental costs by 45.20€ per PC. Those social benefits are mainly generated in the re-use preparation process and distribution activities, whereas the re-use scenario displays a worse performance in energy consumption. The difference in the distribution stage during the second life cycle originates from the fact that the ready to re-use product is produced locally, while the brand new product is manufactured and distributed from abroad, mainly Asia. These results provide valuable information to policymakers and think tanks willing to design support schemes for re-use over recycling operations.

When love meets hate: The relationship between state policies on gay and lesbian rights and hate crime incidence

Do public policies on gay and lesbian rights affect the incidence of hate crimes based on sexual orientation? We propose that legal inequalities increase hate crimes because they provide discursive opportunities for bias, discrimination, and violence. Legal equality, however, will reduce violence. Using annual panel data from 2000 to 2012, a period of substantial policy change, we analyze how three state policies affect reported hate crimes: same-sex partnerships, employment non-discrimination, and hate crime laws. Hate crime and employment non-discrimination laws that include sexual orientation reduce hate crime incidence. Partnership recognition increases reported hate crimes, though it may not increase actual crime incidence. Because incidence is spatially correlated, policy changes in one state yield spillover benefits in other states. These results provide some of the first quantitative evidence that public policies affect hate crimes based on sexual orientation. Findings confirm the roles of institutional heterosexism and discursive opportunities in producing hate crimes.

Estimating the environmental and resource costs of leakage in water distribution systems: A shadow price approach

Water scarcity is one of the main problems faced by many regions in the XXIst century. In this context, the need to reduce leakages from water distribution systems has gained almost universal acceptance. The concept of sustainable economic level of leakage (SELL) has been proposed to internalize the environmental and resource costs within economic level of leakage calculations. However, because these costs are not set by the market, they have not often been calculated. In this paper, the directional-distance function was used to estimate the shadow price of leakages as a proxy of their environmental and resource costs. This is a pioneering approach to the economic valuation of leakage externalities. An empirical application was carried out for the main Chilean water companies. The estimated results indicated that for 2014, the average shadow price of leakages was approximately 32% of the price of the water delivered. Moreover, as a sensitivity analysis, the shadow prices of the leakages were calculated from the perspective of the water companies' managers and the regulator. The methodology and findings of this study are essential for supporting the decision process of reducing leakage, contributing to the improvement of economic, social and environmental efficiency and sustainability of urban water supplies.

Significance and value of non-traded ecosystem services on farmland

Background. Ecosystem services (ES) generated within agricultural landscapes, including field boundaries, are vital for the sustainable supply of food and fibre. However, the value of ES in agriculture has not been quantified experimentally and then extrapolated globally. Methods. We quantified the economic value of two key but contrasting ES (biological control of pests and nitrogen mineralisation) provided by non-traded non-crop species in ten organic and ten conventional arable fields in New Zealand using field experiments. The arable crops grown, same for each organic and conventional pair, were peas (Pisum sativum), beans (Phaseolus vulgaris), barley (Hordeum vulgare), and wheat (Triticum aestivum). Organic systems were chosen as comparators not because they are the only forms of sustainable agriculture, but because they are subject to easily understood standards. Results. We found that organic farming systems depended on fewer external inputs and produced outputs of energy and crop dry matter generally less than but sometimes similar to those of their conventional counterparts. The economic values of the two selected ES were greater for the organic systems in all four crops, ranging from US$ 68-200 ha(-1) yr(-1) for biological control of pests and from US$ 110-425 ha(-1)yr(-1) for N mineralisation in the organic systems versus US$ 0 ha(-1)yr(-1) for biological control of pests and from US$ 60-244 ha(-1)yr(-1) for N mineralisation in the conventional systems. The total economic value (including market and non-market components) was significantly greater in organic systems, ranging from US$ 1750-4536 ha(-1)yr(-1), with US$ 1585-2560 ha(-1)yr(-1) in the conventional systems. The non-market component of the economic value in organic fields was also significantly higher than those in conventional fields. Discussion. To illustrate the potential magnitude of these two ES to temperate farming systems and agricultural landscapes elsewhere, we then extrapolate these experimentally derived figures to the global temperate cropping area of the same arable crops. We found that the extrapolated net value of the these two services provided by non-traded species could exceed the combined current global costs of pesticide and fertiliser inputs, even if utilised on only 10% of the global arable area. This approach strengthens the case for ES-rich agricultural systems, provided by non-traded species to global agriculture.

The spatial extent of the effect of foreclosures on crime

Although neighborhood stability has long been considered a substantial determinant of crime, foreclosures have not been the subject of concerted research among criminologists until recently. A number of recent studies have examined the linkage between home foreclosures and crime. Though generally finding a significant relationship, studies have used different approaches and units of analysis. This variation led us to examine the spatial extent to which foreclosures affect a relatively small surrounding area. In this paper, we consider the spatial extent of the foreclosure effect on crime by estimating fixed effect negative binomial models using geocoded UCR data for 2003-2008 and foreclosure data to predict crime counts using the number of foreclosures within various small area radii. Results show that, independently and jointly, foreclosures are a predictor of crime up to at least a distance of 2250 feet. Importantly, that effect declines with distance. We conclude with a discussion of the implications of those findings.

Ecosystem services in urban water investment

Increasingly, water agencies and utilities have an obligation to consider the broad environmental impacts associated with investments. To aid in understanding water cycle interdependencies when making urban water supply investment decisions, an ecosystem services typology was augmented with the concept of integrated water resources management. This framework is applied to stormwater harvesting in a case study catchment in Adelaide, South Australia. Results show that this methodological framework can effectively facilitate systematic consideration and quantitative assessment of broad environmental impacts of water supply investments. Five ecosystem service impacts were quantified including provision of 1) urban recreational amenity, 2) regulation of coastal water quality, 3) salinity, 4) greenhouse gas emissions, and 5) support of estuarine habitats. This study shows that ignoring broad environmental impacts can underestimate ecosystem service benefits of water supply investments by a value of up to A$1.36/kL, or three times the cost of operating and maintenance of stormwater harvesting. Rigorous assessment of the public welfare impacts of water infrastructure investments is required to guide long-term optimal water supply investment decisions. Numerous challenges remain in the quantification of broad environmental impacts of a water supply investment including a lack of peer-reviewed studies of environmental impacts, aggregation of incommensurable impacts, potential for double-counting errors, uncertainties in available impact estimates, and how to determine the most suitable quantification technique.

The economics of vaccination

The market for vaccinations is widely believed to be characterized by market failures, because individuals do not internalize the positive externalities that their vaccination decisions may confer on other individuals. Francis (1997) provided a set of assumptions under which the equilibrium vaccination pattern is socially optimal. We show that his conditions are not necessary for the welfare theorem to hold but that in general, the market yields inefficiently low vaccination uptake. Equilibrium non-optimality may obtain if (i) agents can recover from infection, (ii) vaccines are imperfect, (iii) individuals are ex ante heterogeneous, (iv) vaccination timing is inflexible or (v) the planning horizon is finite. Apart from the case with heterogeneity, inefficiencies result from the presence of strategic interaction.

Labor migration, externalities and ethics: theorizing the meso-level determinants of HIV vulnerability

This paper discusses labor migration as an example of how focusing on the meso-level highlights the social processes through which structural factors produce HIV risk. Situating that argument in relation to existing work on economic organization and HIV risk as well as research on labor migration and HIV vulnerabilities, the paper demonstrates how analyzing the processes through which labor migration creates vulnerability can shift attention away from the proximate behavioral determinants of HIV risk and toward the community and policy levels. Further, it presents the concepts of externalities and the ethics of consumption, which underline how both producers and consumers benefit from low-waged migrant labor, and thus are responsible for the externalization of HIV risk characteristic of supply chains that rely on migrant labor. These concepts point to strategies through which researchers and advocates could press the public and private sectors to improve the conditions in which migrants live and work, with implications for HIV as well as other health outcomes.