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Evaluating Environmental Programs: The Perspective of Modern Evaluation Research

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  • Frondel, Manuel

    (RWI)

  • Schmidt, Christoph M.

    (RWI)

Abstract

Large-scale environmental programs generally commit substantial societal resources, making the evaluation of their actual effects on the relevant outcomes imperative. As the example of the subsidization of energy-saving appliances illustrates, much of the applied environmental economics literature has yet to confront the problem of proper attribution of effects to underlying causes on a convincing methodological basis. This paper argues that recent results in the econometrics and statistics literature on program evaluation could be utilized to advance considerably in this context. In particular, the construction of a credible counterfactual situation is at the heart of the formal statistical evaluation problem. Even when controlled experiments are not a viable option, appropriate approaches might succeed where traditional empirical strategies fail to uncover the effects of environmental interventions.

Suggested Citation

  • Frondel, Manuel & Schmidt, Christoph M., 2001. "Evaluating Environmental Programs: The Perspective of Modern Evaluation Research," IZA Discussion Papers 397, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp397
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    References listed on IDEAS

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    More about this item

    Keywords

    energy-conservation programs; Environmental policy; observational studies; experiments; counterfactual;
    All these keywords.

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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