Four essays on the economic impacts of environmental conditions and policies

Avila Uribe, Antonio (2024) Four essays on the economic impacts of environmental conditions and policies. PhD thesis, London School of Economics and Political Science.

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Abstract

This thesis examines the economic impacts of environmental conditions, the effects of policies designed to mitigate these effects, and the business adaptation strategies to environmental shocks. This work is structured into three blocks, each exploring one of these topics in environmental economics through a quantitative-empirical lens. Block 1 delves into the impact of air pollution on the U.S. aggregate production. Using a new instrumental variable that leverages pixel-level predictions of wildfire smoke, this analysis reveals significant negative impacts of air pollution in the US rural areas. Although the effects are not as large or generally applicable as in other countries, they still justify stronger air pollution regulations. Block 2 evaluates the impacts of Low Emission Zones (LEZ) on city-level economic growth in Germany and their impact on educational outcomes in London. Employing a differencein- differences approach, this block estimates large and heterogeneous impacts of German LEZ on city-level GDP, having a positive effect in the period between announcement and implementation and a negative effect afterwards. Results from the London LEZ show that it significantly improved primary school test scores, highlighting a not-yet-studied benefit of such policies. Block 3 focuses on the adaptive behaviours of small enterprises in Sub-Saharan Africa in response to environmental shocks, with an emphasis on the differences between firms with and without women in their leadership. This study reveals that the former are more likely to implement sustainable adaptation strategies, emphasising the role of leadership diversity in fostering effective environmental resilience. Throughout, this thesis leverages detailed spatial analysis and robust empirical methodologies to offer new insights into the interactions between environmental policies and economic activity. My work highlights the importance of understanding the broader effects of environmental conditions and policies, and the need for tailored policy measures that effectively address the impacts of environmental changes. These findings contribute to ongoing policy discussions with the objective of improving environmental sustainability and economic prosperity.

Item Type:	Thesis (PhD)
Additional Information:	© 2024 Antonio Avila-Uribe
Library of Congress subject classification:	G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HC Economic History and Conditions
Sets:	Departments > Geography and Environment
Supervisor:	Gibbons, Stephen and Silva, Olmo
URI:	http://etheses.lse.ac.uk/id/eprint/4714

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