IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Is Unemployment Good for the Environment?

Listed author(s):
  • Meyer, Andrew

    ()

    (Department of Economics Marquette University)

Environmental quality is a public good, potentially impacted by everybody. Individual level pro-environmental behavior affects environmental quality in the aggregate. Therefore, it is important to understand what causes individual’s pro-environmental behaviors to change. We quantify the causal effect of one determinant, unemployment, using an EU-27 population representative Eurobarometer survey. Drawing on results from the theory of the private provision of public goods, and recognizing that unemployment decreases income and the opportunity cost of time, we formulate testable predictions that unemployment will decrease the extent of pro-environmental behaviors that require monetary contributions and increase the extent of pro-environmental behaviors that mainly require time/effort. Instrumental variables regressions provide empirical evidence to support these hypotheses. Changes in the unemployment rate within a sub-national region provide the exogenous variation needed to identify the causal effect. Several supplemental questions on the survey provide evidence that environmental issues lose saliency and economic issues gain saliency when one becomes unemployed, suggesting that interested parties may wish to emphasize cost savings of pro-environmental behavior rather than environmental benefits during times of increased unemployment.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://epublications.marquette.edu/econ_workingpapers/49
Download Restriction: no

Paper provided by Marquette University, Center for Global and Economic Studies and Department of Economics in its series Working Papers and Research with number 2015-02.

as
in new window

Length:
Date of creation: Mar 2015
Handle: RePEc:mrq:wpaper:2015-02
Contact details of provider: Postal:
P.O. Box 1881, Milwaukee WI 53201-1881

Phone: (414) 288-7377
Web page: http://business.marquette.edu/departments/economics/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window


  1. Kahn, Matthew E., 1998. "A household level environmental Kuznets curve," Economics Letters, Elsevier, vol. 59(2), pages 269-273, May.
  2. Harbaugh, William T., 1998. "What do donations buy?: A model of philanthropy based on prestige and warm glow," Journal of Public Economics, Elsevier, vol. 67(2), pages 269-284, February.
  3. Benno Torgler & Maria A. Garcia-Valinas & Alison Macintyre, 2012. "Justifiability of Littering: An Empirical Investigation," Environmental Values, White Horse Press, vol. 21(2), pages 209-231, May.
  4. Newey, Whitney K, 1990. "Efficient Instrumental Variables Estimation of Nonlinear Models," Econometrica, Econometric Society, vol. 58(4), pages 809-837, July.
  5. Susana Ferreira & Mirko Moro, 2013. "Income and Preferences for the Environment: Evidence from Subjective Well-Being Data," Environment and Planning A, , vol. 45(3), pages 650-667, March.
  6. Brekke, Kjell Arne & Kverndokk, Snorre & Nyborg, Karine, 2003. "An economic model of moral motivation," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 1967-1983, September.
  7. Torgler, Benno & García-Valiñas, María A. & Macintyre, Alison, 2011. "Participation in environmental organizations: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 16(05), pages 591-620, October.
  8. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
  9. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
  10. Chi, Miao & Drewianka, Scott, 2014. "How much is a green card worth? Evidence from Mexican men who marry women born in the U.S," Labour Economics, Elsevier, vol. 31(C), pages 103-116.
  11. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 617-650.
  12. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
  13. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-529, October.
  14. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
  15. Bulte, Erwin & Gerking, Shelby & List, John A. & de Zeeuw, Aart, 2005. "The effect of varying the causes of environmental problems on stated WTP values: evidence from a field study," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 330-342, March.
  16. Torgler, Benno & Garcia-Valinas, Maria A., 2007. "The determinants of individuals' attitudes towards preventing environmental damage," Ecological Economics, Elsevier, vol. 63(2-3), pages 536-552, August.
  17. Richard T. Carson, 2010. "The Environmental Kuznets Curve: Seeking Empirical Regularity and Theoretical Structure," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 3-23, Winter.
  18. Lori M. Hunter & Alison Hatch & Aaron Johnson, 2004. "Cross-National Gender Variation in Environmental Behaviors," Social Science Quarterly, Southwestern Social Science Association, vol. 85(3), pages 677-694.
  19. Andreoni, James & Levinson, Arik, 2001. "The simple analytics of the environmental Kuznets curve," Journal of Public Economics, Elsevier, vol. 80(2), pages 269-286, May.
  20. David Popp, 2001. "Altruism and the Demand for Environmental Quality," Land Economics, University of Wisconsin Press, vol. 77(3), pages 339-349.
  21. Dakshina G. De Silva & Rachel A. J. Pownall, 2014. "Going green: does it depend on education, gender or income?," Applied Economics, Taylor & Francis Journals, vol. 46(5), pages 573-586, February.
  22. H. Peter Witzke & Guido Urfei, 2001. "Willingness To Pay for Environmental Protection in Germany: Coping With the Regional Dimension," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 207-214.
  23. Brécard, Dorothée & Hlaimi, Boubaker & Lucas, Sterenn & Perraudeau, Yves & Salladarré, Frédéric, 2009. "Determinants of demand for green products: An application to eco-label demand for fish in Europe," Ecological Economics, Elsevier, vol. 69(1), pages 115-125, November.
  24. Mari Rege, 2004. "Social Norms and Private Provision of Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 6(1), pages 65-77, February.
  25. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
  26. Thomas Dietz & Linda Kalof & Paul C. Stern, 2002. "Gender, Values, and Environmentalism," Social Science Quarterly, Southwestern Social Science Association, vol. 83(1), pages 353-364.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:mrq:wpaper:2015-02. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andrew G. Meyer)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.