Developing methods for partially identifying supply-demand systems and related welfare parameters under unobserved market heterogeneity and discrete instruments, from Ingvil Gaarder, Lancelot Henry de Frahan, Magne Mogstad, Alexander Torgovitsky, and Oscar Volpe www.nber.org/papers/w35468

Forthcoming in the AER: "The Environmental Bias of Corporate Income Taxation" by Luigi Iovino, Thorsten Martin, and Julien Sauvagnat.

The Environmental Bias of Corporate Income Taxation

(Forthcoming Article) - We study the relationship between corporate income taxation and carbon dioxide (CO2) emissions in the U.S. We show that CO2-intensive firms benefit more from the tax advantage of debt, and pay lower income taxes on their capital income. Building on these new facts, we provide evidence that a cut in the corporate income tax rate leads to a larger expansion of clean firms. We develop a multi-sector general equilibrium model that accounts for our evidence and quantify the impact of corporate tax reforms on aggregate emissions. A policy that eliminates the tax advantage of debt could reduce aggregate emissions without affecting GDP.

aeaweb.org

🚨New paper🚨 Understanding Support for Inefficient Environmental Policy Instruments Why do governments use costly enviro standards, not more efficient pollution taxes or cap & trade? Voters misunderstand some economic principles joseph-s-shapiro.com/research/Env... 1/🧵

Legislation introduced in some two dozen states, including California and New York, would legalize “plug-in solar” systems (also called "balcony solar"), jumpstarting a nascent market for an affordable source of renewable energy for renters, homeowners. Free link. www.bloomberg.com/news/article...

To Lower Electricity Costs, Consumers Quietly Install DIY Solar

Popular in Germany, “plug-in solar” has remained in the shadows in the US because it’s largely unregulated. Legislation recently introduced in many states aims to promote adoption.

bloomberg.com

Examining the economics of climate innovation and its role in the clean technology transition and climate adaptation, from Eugenie Dugoua and Jacob Moscona www.nber.org/papers/w34601

A new era of government censorship has begun. It started with the silencing of scientific speech, when the admin blocked release of research on bird flu. But MAGA has also cracked down on other wrongthink—on race, geography (!), and of course Trump himself www.washingtonpost.com/opinions/202...

Opinion | A new era of government censorship has dawned

Donald Trump fancies himself a champion of free speech. Oh, really?

washingtonpost.com

If someone ever questions if technologies can be the fundamental driver of climate action, please share this story with them. www.linkedin.com/posts/akshat...

If someone ever questions if technologies can be the fundamental driver of climate action, please share this story with them. In 2021, Ethiopia submitted its climate plan (extending out to 2030) to… ...

If someone ever questions if technologies can be the fundamental driver of climate action, please share this story with them. In 2021, Ethiopia submitted its climate plan (extending out to 2030) to t...

linkedin.com

Interesting paper highlight that binning can be misspecified in panel settings - this drives misinterpretation of extreme temperature shocks. #linkoftheday www.dropbox.com/scl/fi/1ya6z...

We spent a year investigating billionaires for @washingtonpost.com. We found: the wealthiest 100 Americans gave $1.1 billion to influence the 2024 elections — 140x more than they did in 2000. And almost all of that giving boosted Republicans. washingtonpost.com/politics/int...

Ethiopia last year banned the import of new gasoline-powered cars. Nepal reduced import duties on EVs so much that they are now cheaper than cars with internal combustion engines. Brazil raised tariffs on car imports to compel Chinese automakers to set up plants inside Brazil. Etc

A Flood of Green Tech From China Is Upending Global Climate Politics

nytimes.com

It's not your imagination: Wildfire smoke in the U.S. has dramatically worsened since 2019. According to a new study, it's already killing 41,000 people a year - and it's poised to get much worse. new from me @johnmuyskens.bsky.social and @sadbumblebee.buzz www.washingtonpost.com/climate-envi...

Record wildfire smoke kills more people each year than car crashes. It’s about to get worse.

The past six summers have been the smokiest on record. New research shows that smoke could become the costliest consequence of climate change for Americans.

washingtonpost.com

New paper. I wish this wasn't the case, but most progress on reducing US greenhouse gas emissions is likely spurious. Why? EPA underestimates methane emissions from oil and gas. Relevant today as Repubs vote to gut IRA's methane monitoring/mitigation program. 🧵 authors.elsevier.com/a/1lL4K_6se4...

Today marks a major development in U.S. climate policy. Gov. Newsom, the CA Assembly & Senate just released the final cap-and-trade—now called cap-and-invest—reauthorization bill: AB 1207. 1/ #climatesky #energysky

There are so many lessons here that could shrink the time to get renewables built with big community benefits from decades to years. www.bloomberg.com/news/feature...

Scottish Wind Farms Show How to Counter Nimby Opposition

Projects on the Isle of Lewis were stalled for decades, but the perseverance of local leaders overcame regulatory obstacles and community concerns.

bloomberg.com

A long Cato white paper reviews the history of pollution regulation and what we know about the health effects of fine particulate matter www.cato.org/white-paper/...

Rethinking Air Quality Regulation

Devolving responsibility for air quality regulation to the states may offer opportunities to reduce complexity, tailor policies to local needs, and motivate innovative approaches.

cato.org

This is a nice summary of the Spanish grid operator's reports on the May Iberian blackout. As with any big event like this, there were many interdependent causes, but the TL;DR is that 3 nuclear and 7 gas plants failed to provide the voltage control that the grid operator contracted them to provide.

A review of reports on Spanish blackout causes and solutions • Grid Strategies

Michael Goggin, Grid Strategies June 24, 2025 Last week, the Spanish government and Spanish grid operator Red Electrica released lengthy reports on the blackout that affected the Iberian Peninsula on ...

gridstrategiesllc.com

Not an exaggeration to say this was pound-for-pound the most effective piece of US public diplomacy in China. Twitter was blocked, but U.S. embassy pollution tweets forced Beijing to start publishing its own pollution data, which fed public outrage. Result: millions breathing vastly less toxic air

U.S. Embassies Halt Air Quality Monitoring Abroad

Since 2008, embassies and other diplomatic posts had been publishing data about local air quality. In many countries, it was the only reliable source of such information.

nytimes.com

Holy forking shirt balls "Denial of a wanted abortion has both immediate and lasting effects. It increases a woman’s risk of death by 2.5 p.p within nine months, mainly due to unsafe abortion procedures, and raises the likelihood of carrying the pregnancy to term by 31 p.p. "

The Quarterly Journal of Economics@qjeharvard.bsky.social · 2y ago

Recently accepted by #QJE, “The Impact of Being Denied a Wanted Abortion on Women and their Children,” by Londoño-Vélez (@jlondonovelez.bsky.social) and Saravia: doi.org/10.1093/qje/...

Serious question: what’s to blame here? Is it mainstream media? Social media? Partisan polarization? Something else? Because something changed here and we need to understand the cause.

Jake Grumbach@jakemgrumbach.bsky.social · 2y ago

Jfc man

Examining the impact of industrial policies on innovation in a global automobile industry, from Panle Jia Barwick, Hyuk-Soo Kwon, Shanjun Li, Yucheng Wang, and Nahim B. Zahur https://www.nber.org/papers/w33138

Teaching Econ 101 just got harder. Landlords of identical rental units pass through idiosyncratic cost increases (due to property tax variation) to renters thereby violating the law of one price.

Uber and Lyft got away with denying NYC drivers millions in payouts by locking them out of their apps

How Uber and Lyft Used a Loophole to Deny NYC Drivers Millions in Pay

Uber and Lyft locked drivers out of their apps to game a NYC wage law, denying drivers millions in pay

bloomberg.com