Abstract City-county consolidation is a prevalent practice observed worldwide, serving as a common strategy adopted by policymakers to effectively respond to the development requirements of large metropolises. Existing literature has extensively explored the effects arising from this particular policy. Nevertheless, how consolidation affects energy efficiency in consolidated regions is rarely examined. Based on the large-scale city-county consolidation reform from 2000 to 2017 in China, our study explores the causal implications of this policy on energy efficiency at the county level through the application of a staggered difference-in-difference method. Our outcomes demonstrate that a consolidation reform is tied to a statistically significant reduction in energy efficiency of consolidated counties relative to their non-consolidated counterparts. We provide additional evidence that the rise in energy usage, the relocation of low-tech and energy-intensive industries, and the intensification of economic agglomeration are potential contributors to the decrease in energy efficiency.

Abstract Even though the incidence of conflicts between Fulani nomadic pastoralists and sedentary communities in Nigeria has risen significantly in the last decade, there is a notable lack of research examining how these conflicts influence distrust towards members of the Fulani ethnic group and Muslims. Using novel survey data from Kaduna, the state with the third-highest incidence of pastoral conflict in Nigeria, this study addresses that gap. Regression analyses show that exposure to pastoral conflict increases distrust towards the Fulani and Muslims. This suggests a contagion effect whereby the Fulani are conflated with the broader Muslim population, due to the Muslim identity of nomadic Fulani pastoralists. Disaggregating the data by religious affiliation reveals a pattern: conflict exposure raises distrust only among Muslim respondents, while effects are statistically insignificant among Christians. Among Muslims, the positive effect suggests that pastoral conflict erodes in-group cohesion. The null effect among Christians may reflect the way in which pastoral conflicts align with pre-existing religious fault lines.

Abstract The environmental effects of state ownership are still controversial. The ‘reverse privatization’ phenomenon of injecting state capital into non-state-owned enterprises offers a novel perspective to study the environmental impact of state ownership. Using data on Chinese listed companies from 2011 to 2021, this study empirically analyses the impact of state capital injections (SCAI) on firms’ green innovation. Our results reveal that SCAI has a positive effect on the quantity and quality of green innovation, reflecting the net outcome of opposing forces. SCAI promotes green innovation by enhancing firms’ innovative capabilities and willingness, increasing environmental regulatory pressure and reducing managerial myopia, though it may hinder such innovation by exacerbating agency problems and policy burdens. Moreover, SCAI’s positive effects on green innovation quantity and quality are more pronounced for firms with relatively high state capital control, in heavily polluting industries and in less marketized regions.

Abstract This study examines the impact of climate change, defined as long-term changes in temperature and precipitation patterns due to natural and human factors, on women's employment in Burkina Faso, highlighting labour market participation and gender disparities. Using a static computable general equilibrium model calibrated with a gender-specific social accounting matrix, it evaluates two climate scenarios: a 2.4°C temperature increase and a 7.5 per cent decrease in precipitation by 2050. The results indicate that these climate shocks significantly reduce women's employment opportunities. The supply of paid labour for women may decrease by 3.9 per cent, with skilled women experiencing greater job losses than their unskilled counterparts. In rural areas, the domestic workload could increase by up to 0.28 per cent, further limiting women's labour market participation. These changes reinforce gender inequalities and contribute to a decline in real GDP. To counter these effects, investments in climate-resilient agriculture, water and energy infrastructure, and women's entrepreneurship are essential. Gender-responsive policies are needed to promote inclusive economic growth and reduce employment disparities.

Abstract The scope sensitivity test is used to validate value estimates of non-market environmental goods and services derived from the contingent valuation method. The absence of economic scope could suggest invalid value estimates. Recent studies have attributed scope insensitivity to affective, cognitive, and behavioral factors. In this study, we extend the behavioral insights in explaining scope insensitivity by incorporating insights from the theory of mental accounting. Our empirical results indicate that if subjects consider the environmental good as part of their recreational budget within a mental accounting framework, we can explain the scope insensitivity with otherwise standard preference.

Abstract This paper presents a macroeconomic framework for carbon markets. We set up a global climate-economy with carbon-intensive energy inputs, renewable energy, natural carbon sinks, and a carbon capture technology to show that (i) within a comprehensive carbon pricing system, a carbon tax alone implements any given path of carbon emissions; (ii) ‘additionality’ is not a property of the optimal carbon pricing system; and (iii) without a carbon tax, renewable subsidies, preservation of carbon sinks and a price for carbon capture are needed.

Abstract We describe the main insights from the papers included in this special issue, Challenges for the Development of Latin America in the Anthropocene: Current Research in Environmental Economics . The contributions are organized around three themes: the economic and welfare impacts of temperature variability, the role of institutions and user rights in shaping environmental governance and the effectiveness of regulatory instruments for managing ambient and atmospheric pollution. Together, these papers show that environmental outcomes in Latin America are deeply shaped by institutional capacity, governance quality and social inequality. By combining rigorous empirical analysis with attention to local contexts, they demonstrate how environmental economics can inform policy responses to the triple planetary crisis of climate change, biodiversity loss and pollution.

Abstract This study examines whether different biodiversity proxies – species, habitat and functionality – satisfy the scope sensitivity and plausibility criteria in willingness to pay (WTP) estimation using a choice experiment in Manu National Park, Peru. We introduce the network of species interactions as a proxy for functionality and apply latent class (LC) models, including attribute non-attendance (ANA), to account for heterogeneity in preferences. Our results indicate that functionality is the only proxy consistently meeting both validity criteria across all specifications. LC analysis reveals two segments: one (74.4 per cent) displaying coherent, scope-sensitive WTP across biodiversity attributes, and another (25.6 per cent) less engaged, disregarding standard proxies but still valuing networks. Even under ANA constraints, networks remain salient for less attentive respondents, underscoring their cognitive accessibility in complex ecological contexts. These findings highlight the methodological and policy relevance of functionality-based proxies for biodiversity valuation in megadiverse environments, where conventional measures may fail to elicit behaviourally consistent responses.

Abstract Droughts are becoming increasingly common in India, where 50 per cent of the labour force works in agriculture, and most agricultural production is rainfall-dependent. This paper investigates the extent to which rural households adapt to drought – defined as rainfall deficiency – by reallocating labour from agriculture to other sectors of the economy. We estimate a household-level fixed-effects regression model and find that household agricultural employment declines in the year following a drought. Furthermore, these effects are mediated by job skills and land ownership. We find that households with working members who have completed primary education account for most of the workers who exit the agricultural sector. In contrast, we find that households that own land increase their agricultural labour share after experiencing a drought. Thus, while we find that drought causes households to diversify away from agriculture on aggregate, the extent of this structural change is mitigated by the behaviour of landowners.