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Nighttime light pollution and economic activities: A spatio-temporal model with common factors for US counties

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Listed:
  • Georges Bresson
  • Jean-Michel Etienne
  • Guy Lacroix

Abstract

Excessive nighttime light is known to have detrimental effects on health and on the environment (fauna and flora). The paper investigates the link between nighttime light pollution and economic growth, air pollution, and urban density. We propose a county model of consumption which accounts for spatial interactions. The model naturally leads to a dynamic general nesting spatial model with unknown common factors. The model is estimated with data for 3071 continental US counties from 2012–2019 using a quasi-maximum likelihood estimator. Short run and long run county marginal effects emphasize the importance of spillover effects on radiance levels. Counties with high levels of radiance are less sensitive to additional growth than low-level counties. This has implications for policies that have been proposed to curtail nighttime light pollution. L’éclairage nocturne de forte intensité est connu pour avoir des effets néfastes sur la santé et sur l'environnement (faune et flore). Cet article étudie le lien entre la pollution lumineuse nocturne et la croissance économique, la pollution de l'air et la densité urbaine. Nous proposons un modèle de consommation au niveau des comtés américains qui tient compte des interactions spatiales. Le modèle conduit naturellement à un modèle spatial dynamique général emboîté avec facteurs communs inconnus. Le modèle est estimé avec les données de 3 071 comtés continentaux américains de 2012 à 2019 à l'aide d'un estimateur de quasi-maximum de vraisemblance. Les effets marginaux des comtés à court et à long terme soulignent l'importance des effets de débordement sur la radiance locale. Les comtés caractérisés par de hauts niveaux de radiance sont moins sensibles à un accroissement de l’activité économique que ceux avec de faibles niveaux. Cela a des implications pour le design de politiques visant à réduire la pollution lumineuse nocturne.

Suggested Citation

  • Georges Bresson & Jean-Michel Etienne & Guy Lacroix, 2023. "Nighttime light pollution and economic activities: A spatio-temporal model with common factors for US counties," CIRANO Working Papers 2023s-18, CIRANO.
  • Handle: RePEc:cir:cirwor:2023s-18
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    References listed on IDEAS

    as
    1. M. Hashem Pesaran, 2006. "Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure," Econometrica, Econometric Society, vol. 74(4), pages 967-1012, July.
    2. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    3. Alexei Onatski, 2010. "Determining the Number of Factors from Empirical Distribution of Eigenvalues," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 1004-1016, November.
    4. Seung C. Ahn & Alex R. Horenstein, 2013. "Eigenvalue Ratio Test for the Number of Factors," Econometrica, Econometric Society, vol. 81(3), pages 1203-1227, May.
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    More about this item

    Keywords

    Nighttime light pollution; air pollution; GDP; satellite data; space-time panel data model; Pollution lumineuse nocturne; pollution de l’air; PIB; données satellitaires; modèle panel spatio-temporel;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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