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Time is of the Essence: Climate Adaptation Induced by Existing Institutions

Author

Listed:
  • Bento, Antonio M.

    (University of Southern California)

  • Miller, Noah

    (University of Southern California)

  • Mookerjee, Mehreen

    (Zayed University)

  • Severnini, Edson R.

    (Carnegie Mellon University)

Abstract

In the absence of first-best climate policy, we demonstrate that existing government institutions and policy established for reasons unrelated to climate change may induce climate adaptation. We examine the impact of temperature on ambient ozone concentration in the United States from 1980-2013, and the role of institution-induced adaptation. Ozone is formed under warm temperatures, and regulated by the Clean Air Act institution. Adaptation in counties out of attainment with air quality standards is 107 percent larger than under attainment, implying substantial institution-induced adaptation. Furthermore, local beliefs about climate change appear to reinforce adaptive behavior, suggesting a nontrivial role in second-best climate policy.

Suggested Citation

  • Bento, Antonio M. & Miller, Noah & Mookerjee, Mehreen & Severnini, Edson R., 2021. "Time is of the Essence: Climate Adaptation Induced by Existing Institutions," IZA Discussion Papers 14355, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14355
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    Cited by:

    1. Pestel, Nico & Oswald, Andrew J., 2021. "Why Do Relatively Few Economists Work on Climate Change? A Survey," IZA Discussion Papers 14885, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    climate change; government institutions and policy; Clean Air Act; institution-induced adaptation; ambient ozone concentration; climate change beliefs;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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