Related papers: Green Transition with Dynamic Social Preferences
A dynamic model of collective consumption and saving decisions made by a finite number of agents with constant but different discount rates is developed. Collective utility is a weighted sum of individual utilities with time-varying utility…
This paper studies how household heterogeneity affects the level and cyclical behavior of the optimal carbon tax in a real economy. We demonstrate that an equity-efficiency trade-off arises due to income inequality and heterogeneity in the…
So-called 'fast fashion' consumption, amplified through cost-effective e-commerce, constitutes a major factor negatively impacting climate change. A recently noted strategy to motivate consumers to more sustainable decisions is digital…
This paper revisits the classic instrument choice problem in a setting with consumption externalities, through the lens of robust mechanism design. A regulator can implement any incentive-compatible policy but is uncertain about how…
We are living in an uncertain and dynamically changing world, where optimal decision-making under uncertainty is directly linked to the survival of species. However, evolutionary selection pressures that shape value-based decision-making…
Environmental changes greatly influence the evolution of populations. Here, we study the dynamics of a population of two strains, one growing slightly faster than the other, competing for resources in a time-varying binary environment…
A third of greenhouse gas emissions are attributable to the food sector. A shift in dietary habits could reduce these by half. Engaging and empowering consumers is vital to this critical shift; yet, if we get the framing wrong, we might…
Increasing urbanization puts pressure on cities to prioritize sustainable growth and avoid carbon lock-in. Available modeling frameworks fall acutely of guiding such pivotal decision-making at the local level. Financial incentives,…
Climate change and environmental concerns represent a global crisis accompanied by significant economic challenges. Regular international conferences held to address these issues, such as in the UK (2021) and Egypt (2022), spark debate…
The emergence and impact of tipping points have garnered significant interest in both the social and natural sciences. Despite widespread recognition of the importance of feedbacks between human and natural systems, it is often assumed that…
Great socio-economic transitions see the demise of certain industries and the rise of others. The losers of the transition tend to deploy a variety of tactics to obstruct change. We develop a political-economy model of interest group…
In this paper, we compare different mitigation policies when housing investments are irreversible. We use a general equilibrium model with non-homothetic preferences and an elaborate setup of the residential housing and energy production…
An ongoing debate in ecology concerns the impacts of ecological drift and selection on community assembly. Here, we show that there is a sharp phase transition in diverse ecological communities between a selection dominated regime (the…
This study examines the behavioral and environmental implications of shared autonomous micro-mobility systems, focusing on autonomous bicycles and their integration with transit in the U.S. While prior research has addressed operational and…
We consider a model of socially interacting individuals that make a binary choice in a context of positive additive endogenous externalities. It encompasses as particular cases several models from the sociology and economics literature. We…
A novel mathematical framework is proposed to describe the ecological and evolutionary consequences of consumer--resource interactions. Both the consumer and resource are assumed to consist of several (sub)species, which interact between…
We examine the relationship among photovoltaic (PV) investments, energy production, and environmental impact using a dynamic optimization model. Our findings show that increasing investment in renewables supports both energy generation and…
Integrating renewable energy production into the electricity grid is an important policy goal to address climate change. However, such an integration faces economic and technological challenges. As power generation by renewable sources…
We study how tariffs affect industrial structure and welfare in an economy where sectors are complements and preferences are nonhomothetic -- two drivers of structural change. Import tariffs on a sector influence sectoral composition by…
The production of goods we buy on a daily basis accounts for a large portion of greenhouse gas emissions. Although consumers have the power to influence industries' behavior through their demand, making sustainable purchases is challenging.…