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Quasi-Experimental and Experimental Approaches to Environmental Economics

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  • Michael Greenstone
  • Ted Gayer

Abstract

This paper argues that an increased application of quasi-experimental and experimental techniques will improve understanding about core environmental economics questions. This argument is supported by a review of the limitations of associational evidence in assessing causal hypotheses. The paper also discusses the benefits of experiments and quasi-experiments, outlines some quasi-experimental methods, and highlights threats to their validity. It then illustrates the quasi-experimental method by assessing the validity of a quasi-experiment that aims to estimate the impact of the Endangered Species Act on property markets in North Carolina. The paper’s larger argument is that greater application of experimental and quasi-experimental techniques can identify efficient policies that increase social welfare.

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Bibliographic Info

Paper provided by Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research in its series Working Papers with number 0713.

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Date of creation: Dec 2007
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Handle: RePEc:mee:wpaper:0713

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Cited by:
  1. Constant Tra, 2009. "Have Renewable Portfolio Standards Raised Electricity Rates? Evidence from U.S. Electric Utilities," Working Papers 0923, University of Nevada, Las Vegas , Department of Economics.
  2. Sauer, Johannes, 2011. "Natural Disasters and Agriculture: Individual Risk Preference towards Flooding," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115989, European Association of Agricultural Economists.
  3. Grijalva, Therese & Berrens, Robert P. & Shaw, W. Douglass, 2011. "Species preservation versus development: An experimental investigation under uncertainty," Ecological Economics, Elsevier, vol. 70(5), pages 995-1005, March.
  4. Raphael Calel & Antoine Dechezlepretre, 2012. "Environmental Policy and Directed Technological Change: Evidence from the European carbon market," Working Papers 1208, Chaire Economie du Climat.
  5. Matthew James Roskruge & Arthur Grimes & Philip McCann & Jacques Poot, 2011. "Housing and Social Capital in New Zealand," ERSA conference papers ersa10p784, European Regional Science Association.
  6. Ioulia Ossokina & Gerard Verweij, 2011. "Quasi-experimental evidence on the effect of traffic externalities on housing prices," ERSA conference papers ersa11p606, European Regional Science Association.
  7. Folmer, Henk & Johansson-Stenman, Olof, 2011. "Does Environmental Economics Produce Aeroplanes Without Engines? - On the Need for an Environmental Social Science," Working Papers in Economics 483, University of Gothenburg, Department of Economics.
  8. Stefan Boes; & Stephan Nuesch; & Steve Stillman;, 2012. "Aircraft noise, health, and residential sorting: evidence from two quasi-experiments," Health, Econometrics and Data Group (HEDG) Working Papers 12/21, HEDG, c/o Department of Economics, University of York.
  9. Jaraite, Jurate & Kažukauskas, Andrius, 2011. "The effect of mandatory agro-environmental policy on farm environmental performance," CERE Working Papers 2011:13, CERE - the Center for Environmental and Resource Economics.
  10. V. Smith & Eric Moore, 2010. "Behavioral Economics and Benefit Cost Analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 46(2), pages 217-234, June.
  11. Ioulia Ossokina & Gerard Verweij, 2014. "Urban traffic externalities: quasi-experimental evidence from housing prices," CPB Discussion Paper 267, CPB Netherlands Bureau for Economic Policy Analysis.
  12. H. Allen Klaiber & V. Kerry Smith, 2009. "Evaluating Rubin's Causal Model for Measuring the Capitalization of Environmental Amenities," NBER Working Papers 14957, National Bureau of Economic Research, Inc.
  13. Blackman, Allen & Rivera, Jorge, 2010. "The Evidence Base for Environmental and Socioeconomic Impacts of “Sustainable” Certification," Discussion Papers dp-10-10-efd, Resources For the Future.
  14. Boes, Stefan & Nüesch, Stephan, 2011. "Quasi-experimental evidence on the effect of aircraft noise on apartment rents," Journal of Urban Economics, Elsevier, vol. 69(2), pages 196-204, March.
  15. Mika Kortelainen & Jibonayan Raychaudhuri & Beatrice Roussillon, 2013. "Effects of Carbon Reduction Labels: Evidence From Scanner Data," The School of Economics Discussion Paper Series 1309, Economics, The University of Manchester.
  16. Kuminoff, Nicolai V. & Jarrah, Abdul Salam, 2010. "A new approach to computing hedonic equilibria and investigating the properties of locational sorting models," Journal of Urban Economics, Elsevier, vol. 67(3), pages 322-335, May.
  17. Czap, Natalia V. & Czap, Hans J. & Khachaturyan, Marianna & Lynne, Gary D. & Burbach, Mark, 2012. "Walking in the shoes of others: Experimental testing of dual-interest and empathy in environmental choice," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 642-653.

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