RESUMEN
We examine the relationship between contemporaneous fine particulate matter exposure and COVID-19 morbidity and mortality using an instrumental variable approach. Harnessing daily changes in county-level wind direction, we show that arguably exogenous fluctuations in local air quality impact the incidence of confirmed COVID-19 cases and deaths. We find that a one µ g/m 3 increase in PM 2.5, or 15% of the average PM 2.5 concentration in a county, increases the number of same-day confirmed cases by 1.8% from the mean case incidence in a county. A one µ g/m 3 increase in PM 2.5 increases the same-day death rate by just over 4% from the mean. These effects tend to increase in magnitude over longer time horizons and are robust to a host of sensitivity tests. When analyzing potential mechanisms, we also demonstrate that an additional unit of PM 2.5 increases COVID-19-related hospitalizations by 0.8% and use of intensive care units by 0.5% on the same day. Using individual case records, we also show that higher PM 2.5 exposure at the time of case confirmation increases risk of later mechanical ventilation and mortality. These results suggest that air pollution plays an important role in mediating the severity of respiratory syndromes such as COVID-19.
RESUMEN
Financial regulations would help signal risks to investors.
RESUMEN
While instruments to price congestion exist since the 1970s, less than a dozen cities around the world have a cordon or zone pricing scheme. Geneva, Switzerland, may be soon joining them. This paper builds on a detailed review of the existing schemes to identify a set of plausible design options for the Geneva congestion charge. In turn, it analyzes their acceptability, leveraging a large survey of residents of both Geneva and the surrounding areas of Switzerland and France. Our original approach combines a discrete choice experiment with randomized informational treatments. We consider an extensive set of attributes, such as perimeter, price and price modulation, use of revenues, and exemption levels and beneficiaries. The informational treatments address potential biased beliefs concerning the charge's expected effects on congestion and pollution. We find that public support depends crucially on the policy design. We identify an important demand for exemptions, which, albeit frequently used in the design of environmental taxation, is underexplored in the analysis of public support. This demand for exemptions is not motivated by efficiency reasons. It comes mostly by local residents, for local residents. Further, people show a marked preference for constant prices, even if efficiency would point to dynamic pricing based on external costs. Hence, we highlight a clear trade-off between efficiency and acceptability. However, we also show, causally, that this gap can in part be closed, with information provision. Analyzing heterogeneity, we show that preferences vary substantially with where people live and how they commute. Even so, we identify several designs that reach majority support.
RESUMEN
Carbon taxes represent a cost-effective way to steer the economy toward a greener future. In the real world, their application has however been limited. In this paper, we address one of the main obstacles to carbon taxes: public opposition. We identify drivers of and barriers to public support, and, under the form of stylized facts, provide general lessons on the acceptability of carbon taxes. We derive our lessons from a growing literature, as well as from a combination of policy "failures" and "successes." Based on our stylized facts, we formulate a set of suggestions concerning the design of carbon taxes. We consider the use of trial periods, tax escalators, environmental earmarking, lump-sum transfers, tax rebates, and advanced communication strategies, among others. This paper contributes to the policy debate about carbon taxes, hopefully leading to more success stories and fewer policy failures. This article is categorized under: Climate Economics > Economics of Mitigation.
