J-TREE Seminar Series

Japan-Tokyo Resource and Environmental Economics (J-TREE) Seminar Series

J-TREE is an international seminar series on environmental and resource economics hosted by young Japanese environmental economists. Our goal is to foster a better and more competitive research environment and expand our research network domestically and internationally among young researchers in the field of environmental and resource economics.

As we launch this seminar series, we will experiment with many different formats, i.e., one speaker for 1.5 hrs, 3 speakers for 1.5 hrs, two-day workshops, etc. The tentative schedule is posted below.

Organizers: Keita Abe・Kenta Tanaka (Musashi U), Kenichi Matsumoto (Toyo U), Akio Yamazaki (GRIPS), Hide-Fumi Yokoo・Kazuki Motohashi (Hitotsubashi U), and Mihoko Wakamatsu (TUMSAT)

Co-founders: Kenta Tanaka (Musashi U), Kenichi Matsumoto (Toyo U), Akio Yamazaki (GRIPS), Hide-Fumi Yokoo (Hitotsubashi U), and Mihoko Wakamatsu (TUMSAT)

Announcement

• Our 2nd annual regional workshop will be held in Matsuyama University on Feb 28, 2025. The details are provided below. 

Seminar Details

Past Seminars

7/30/2021

Presenter: Keita Abe (Norwegian School of Economics)

Title: A Dynamic Model of Endogenous Fishing Duration (Draft)

Abstract: Production functions are often estimated with temporally aggregated data to evaluate firm productivity. However, direct estimation of production functions can be misleading if variable inputs are dynamically determined within a data time period because the variation within a period is not taken into account. This is particularly an issue in the context of efficiency analysis in natural resource management because the estimated production function or frontier determines the capacity level that is regarded as an optimal target for management. In this study, we explicitly model harvesters’ decision processes regarding trip length in a fishery as a dynamic discrete choice to reveal that the underlying assumption of production function estimations can be violated. The model highlights the margin that is overlooked in models estimated with trip-level data. We estimate our model with a conditional choice probability estimator using daily logbook data on a Japanese longline fleet. The results reveal the freshness deterioration function to which the harvesters respond, which indicates that they stop fishing to avoid having old fish before they maximize the amount of their catch. A simulation with data generating process which is based on the behavioral mechanism we revealed shows that the estimated production frontier could be biased and inefficiency is systematically misevaluated.

9/30/2021

Presenter: Julius Andersson (Stockholm School of Economics)

Title: The Distributional Effects of a Carbon Tax: The Role of Income Inequality （Draft）

Abstract: We present a simple model that shows how the two parameters of income inequality and the income elasticity of demand determine changes in the distributional effect of a consumption tax; with rising inequality increasing the regressivity of a consumption tax on necessities. We test the model's predictions by analyzing the Swedish carbon tax on transport fuel. We find that the tax incidence is increasingly regressive over time, which is highly correlated with a rise in income inequality, and that the tax moves from regressive to progressive when switching from annual income to the more evenly distributed measure of lifetime income.

11/26/2021

Presenter: Payal Shah (Okinawa Institute of Science and Technology)

Title: Application of portfolio theory to conservation planning with climate change uncertainty

Abstract: Climate change is the most significant environmental issue of our time and poses dire threats to species, biodiversity and ecosystem services. Protection of the environment for future generations and efforts to limit the impacts of climate change are of the utmost importance. However, uncertainty associated with future climate projections complicates decision making associated with the management and protection of the environment. I will show how the use of portfolio theory, a popular tool used in finance, can help optimally reduce the risk of climate change uncertainty in conservation planning and lead to more efficient risk-return trade-offs. I will elaborate on several shortcomings of portfolio theory and show what has been done to overcome these specifically for conservation settings.

5/27/2022

Presenter: Takahiro Tsuge (Sophia University)

Title: Using a Choice Experiment to Understand Preferences for Disaster Risk Reduction with Uncertainty: A Case Study in Japan

Abstract: With the increase in disasters due to climate change, there has been a growing interest in green infrastructures that utilize nature for disaster risk reduction (DRR). However, green infrastructures cannot completely protect against hazards. Therefore, this study investigates the public preference in Japan for DRR and its uncertainty using a survey-based choice experiment. The results showed that benefits were obtained from the increase in “success probability,” “reduction in human damage,” “reduction in property damage,” and “reduction in indirect damage”; however, the benefits obtained from additional improvements diminished. Moreover, the results of our analyses revealed that preferences for DRR and its uncertainty were heterogeneous among respondents, and the population segment that includes more women, older people, and more people who live in areas that may be directly affected by floods had higher ratings for “success probability” and relatively slightly lower ratings for “reduction in indirect damage.”

6/23/2022

Joint Seminar with Aoyama Gakuin University

Format: Hybrid @ Aoyama Gakuin University

Presenter: Jiaxing Wang (Sapporo Gakuin University)

Title: Impact of incentive policies for energy-efficient products in developing countries: Evidence from Chinese households based on a mixed logit model

Abstract: Like many countries, China has introduced a variety of incentive policies to promote energy-efficient appliances. The Chinese government introduced the energy labeling program since 2005, and three types of subsidy programs (Countryside subsidy, Trade-in subsidy, and Eco-product subsidy) from 2008 to 2013. In this study, we focus on the selection of refrigerators’ energy efficiency and apply a mixed logit model to micro-level data from the Chinese General Social Survey to evaluate the impact of these policies. Our analyses demonstrate that both the energy labeling program and three subsidy programs have promoted households to choose energy-efficient refrigerators, however, the effects were different among different subsidy programs. The results suggest that the Countryside subsidy has similar effects to the Eco-product subsidy on the promotion of refrigerators with high energy-efficiency qualities, despite that the main objective of the Countryside subsidy was to promote appliances to rural area. Additionally, the Trade-in subsidy was less effective on the promotion of energy-efficient refrigerators.

Presenter: Kazuki Motohashi (Tufts University)

Title: Impacts of Municipal Mergers on Pollution Control: Evidence from River Pollution in Japan

Abstract: Municipal mergers are widely adopted by policymakers for improving efficiency in public service provision, including pollution control. Municipal mergers can improve environmental quality by internalizing pollution spillovers, but coordination costs and skewed distribution of political power among pre-merger municipalities can work in the opposite direction. We test this relationship in the context of Japan’s large-scale municipal mergers that almost halved the number of municipalities. By using the staggered implementation of municipal mergers and 30-year water quality data, we find that municipal mergers increase water pollution, and the effects persist for about 15 years. Our results point to the mechanism of weaker pollution control through coordination cost and political economy channels.

7/28/2022

Presenter: Hidemichi Yonezawa (Statistics Norway)

Title: Green Technology Policies versus Carbon Pricing: An Intergenerational Perspective

Abstract: Technology policy is the most widespread form of climate policy and is often preferred over seemingly efficient carbon pricing. We propose a new explanation for this observation: gains that predominantly accrue to households with large capital assets and that influence majority decisions in favor of technology policy. We study climate policy choices in an overlapping generations model with heterogeneous energy technologies and distortionary income taxation. Compared to carbon pricing, green technology policy leads to a pronounced capital subsidy effect that benefits most of the current generations but burdens future generations. Based on majority voting which disregards future generations, green technology policies are favored over a carbon tax. Smart “polluter-pays” financing of green technology policies enables obtaining the support of current generations while realizing efficiency gains for future generations

10/14/2022

Presenter: Hitoshi Shigeoka (University of Tokyo)

Title: “Invisible Killer”: Seasonal Allergy and Accidents

Abstract: Despite at least 400 million sufferers of seasonal allergy worldwide, the adverse impacts of pollen on non-health outcomes such as cognition and productivity are surprisingly understudied. Using the universe of ambulance records in Japan, we are the first to show that high pollen counts are associated with more accidents—most extreme consequences of cognitive impairment. Based on geolocation data, we find limited evidence of short-term avoidance behaviors, implying that the cognitive risk of pollen exposure is severely undermined. Finally, the increased pollen concentrations due to climate change are projected to aggravate pollen-induced accidents, with a social cost of USD100 million annually at a minimum.

11/24/2022

Presenter: Ken Miura (Kyoto University)

Title: Do Zambian Farmers Manage Climate Risks? 

Abstract: Active debates in the climate policy arena on a global scale require a comprehensive understanding of farmers’ responses to weather risks at the micro-level. By combining grid-cell level historical rainfall data with district-level historical production records and household survey data, this paper quantifies agricultural production responses to climate risks among small-scale farmers in Zambia. We first estimate the impact of monthly precipitation on maize production to construct a climate risk indicator. Because our estimation results identify January and February rainfall as the most influential determinants of maize yields, we define the coefficient of variation of these two months’ rainfall over the past 59 agricultural years (1962-2020) as the climate risk index. We then relate this risk index to agricultural decisions concerning risk diversification or farm investments from household survey data collected in 2021. Results show that farm households in high-rainfall risk regions cultivate larger fields, resulting in fewer fertilizers per area than counterparts in low-risk regions. In addition, we find little evidence for crop and plot diversification strategies in response to weather risks. Thus, despite substantial potential threats to their livelihoods, Zambian farmers do not pursue risk management strategies against weather risks. 

12/16/2022

Presenter: Shinsuke Tanaka (Tufts University)

Title: Estimating the Effects of Reduced Sunlight due to Solar Geoengineering on Suicide in the United States 

Abstract：www.medrxiv.org/content/10.1101/2022.10.08.22280867v1 

1/27/2023

Presenter: Tongzhe Li (University of Guelph)

Title: Can Transaction Cost Subsidies Increase Cost-effectiveness of Conservation Auctions? Evidence from Laboratory Experiment and RCT 

Abstract：This project combines findings from a laboratory experiment and a randomized controlled trial (RCT). The laboratory experiment examines how transaction costs (TCs) influence participation and bidding behavior in discriminatory-price reverse auctions in a context-free environment. We examine whether participants behave consistently with economic theory, and we use the experimental results to parameterize a simulation to investigate how TC subsidies affect auction performance. Afterwards an RCT was designed in collaboration with the Ecological Farmers Association of Ontario to test how a $50 participation incentive affected participation and the cost-effectiveness of a reverse auction to incentivize adoption of small grains and cover crops in Ontario Canada. Results from the laboratory experiment show that TCs can limit auction participation and reduce program cost-effectiveness. However, although transferring the burden of TCs from land managers to program administrators may increase the bid submission rate, whether or not the benefits of such a strategy exceed the costs raises complex empirical questions. Results from the RCT demonstrate challenges with using reverse auctions for working lands programs. Preliminary analysis shows a $50 subsidy did not significantly increase farmers’ participation in the reverse auction. Moreover, the reverse auction yielded lower cost-effectiveness compared to the flat-rate cost-share program launched by the same organization in the previous year. Our findings suggest that although reverse auctions are cost-effective in theory, caution must be taken when implementing auctions in agri-environmental programs. 

2/20/2023

Presenter: David Wolf (Kobe University)

Title: The Importance of Market Boundaries: Hedonic Valuation of Risk Following the Tohoku Earthquake 

Abstract: Defining hedonic markets too broadly across space can bias valuation, hide important sources of heterogeneity and lead to the recovery of capitalization effects as opposed to willingness to pay. We explore the severity of these problems within an application where the 2011 Tohoku Earthquake in Japan is leveraged to causally identify willingness to pay for perceived seismic risk. Single-market models are found to be statistically inferior, undervalue welfare losses by as much as 13.5% ($489.39 million) and obscure market-specific effects that differ from the mean estimate. Our analysis highlights the impact differing market definitions have on hedonic valuation. 

3/30/2023: Student-Presentation Seminar

Haruka Mitoma (Kyushu University） 

"Carbon Footprint Analysis Considering Production Activities of Informal Sector: The Case of manufacturing industry of India"

Aline Mortha (Waseda University） 

"Purchase or generate? An analysis of energy consumption, co-generation and substitution possibilities in energy intensive manufacturing plants under the Japanese Feed-in-Tariff"

Chihiro Yagi (Kobe University）

"Electricity Storage or Transmission? Comparing Social Welfare between Electricity Arbitrages"

7/27/2023 (Thu) 

Presenter: Takahiko Kiso (University of Aberdeen) 

Title: Targeting of Corrective Subsidies: A Ramsey Approach

Abstract: This paper explores the cost-effectiveness of corrective subsidies aimed at addressing market distortions such as positive externalities. I focus on a setting where a subsidy scheme is budget-constrained and can differentiate subsidy rates across markets (e.g., geographical areas and consumer classes). Theoretical analysis demonstrates that the optimal subsidy design entails higher rates for markets with greater subsidy elasticity of equilibrium output or larger distortions to be corrected by the subsidy. Building upon the theoretical analysis, I empirically investigate the effect of such targeting by analyzing the case of residential solar PV installation subsidies in Japan. Estimations show that installations in existing homes are significantly more responsive to subsidy provisions than installations in new-build homes. Simulations based on the estimated parameters suggest that offering a higher subsidy for existing homes relative to new-build homes could enhance the cost-effectiveness by up to 10% compared to the actual national subsidy scheme without such targeting.

10/25/2023 (Wed) 

Presenter: Jevan Cherniwchan (McMaster University) 

Title: Free Trade and the Formation of Environmental Policy: Evidence from US Legislative Votes

Abstract: We test the hypothesis that governments alter environmental policy in response to trade by studying NAFTA's effects on the formation of environmental policy in the US House of Representatives between 1990 and 2000. We find that reductions in US tariffs decreased political support for environmental legislation. This decrease appears to be due to: (i) a reduction in support by incumbent Republican legislators in response to trade-induced changes in the policy preferences of their constituents, and (ii) changes in partisan representation in affected districts due to decreased electoral support for pro-NAFTA Democrats following the agreement.

11/30/2023 (Thu) 

Presenter: Nobuhiko Nakazawa (Hitotsubashi U)

Title: Does How Air Pollution Levels Are Labeled Matter? Evidence from Consumption of Respiratory Medicine in South Korea

1/26/2024 (Fri) 

Presenter: Renato Molina (University of Miami) 

Title: The Social Value of Forecasting Hurricanes in the US

Abstract: What is the impact and value of hurricane forecasts? We study this question using newly-collected forecast data for major US hurricanes since 2005. We find that higher wind speed forecasts increase pre-landfall protective spending, but erroneous under-forecasts increase post-landfall damage and rebuilding costs. We develop a theoretically-grounded approach for estimating the marginal value of forecast improvements and find that the average annual improvement reduces total per-hurricane costs by over $400,000/county. Improvements since 2007 reduced costs by 18%, totaling billions of dollars per hurricane. This exceeds the annual budget for all federal weather forecasting in the US. 

4/19/2024 (Fri) 

Presenter: Taisuke Imai (Osaka U)

Title: Experiments on Misperceptions and Attitudes toward CO2 Emissions 

Abstract: Addressing the urgent challenge of reducing greenhouse gas emissions necessitates innovative approaches, especially in the face of political contention surrounding carbon pricing. Policymakers often emphasize the role of providing information about CO2 emissions to both consumers and producers. In this presentation, we delve into a series of experiments aimed at understanding individuals' beliefs, attitudes toward CO2 emissions, and their support for carbon pricing. In the first part, we explore an empirical test centered on the argument that consumers are willing to mitigate emissions but lack information on how to do so. Through an extensive new dataset, we uncover substantial misperceptions regarding the carbon impact of various consumption behaviors, coupled with a clear preferences for mitigation. However, our findings reveal that correcting these beliefs has no discernible effect on consumption in large, representative samples. These robust null results challenge the efficacy of information-based policies in the fight against climate change. In the second part, we present a fully incentivized experiment involving a large representative sample of the German population. This study compares five distinct revenue recycling schemes. We discover that support for a carbon price is maximized by a "Climate Premium" that entails a fixed, uniform upfront payment to each individual. This recycling scheme outperforms tax and dividend schemes, utilizing revenues for the government's general budget, and earmarking revenues for environmental projects. Additionally, we demonstrate that both participants and experts underestimate public support for carbon pricing. 

6/19/2024 (Wed) -- Spin-off seminar

Presenter: Eugenie Dugoua (LSE)

Title: Directed Technological Change and General Purpose Technologies: Can AI Accelerate the Clean Energy Innovation? 

Abstract: Transitioning away from dirty and towards clean technologies is critical to reduce carbon emissions, but the race between clean and dirty technologies is taking place against the backdrop of improvements in general-purpose technologies (GPT) such as information and communication technologies (ICT) and artificial intelligence (AI). We show how, in theory, a GPT can affect the direction of technological change and, in particular, the competition between clean and dirty technologies. Second, we use patent data to show that clean technologies absorb more spillovers from AI and ICT than dirty technologies and that energy patenting firms with higher AI knowledge stocks are more likely to absorb AI spillovers for their energy inventions. We conclude that ICT and AI have the potential to accelerate clean energy innovation.

6/27/2024 (Thu) 

Presenter: Tatsuki Inoue (Meiji U)

Format: Hybrid@Hitotsubashi U

Title: The impacts of coal smoke on infant mortality: Evidence from industrializing Japan 

Abstract: This study explores coal smoke impacts on infant mortality in the early stage of industrialization. While data scarcity has previously hampered the precise estimation of the adverse health consequences of coal smoke, I used actual coal-use data in Japan and a fixed effects model and found that increased coal use raised infant mortality, particularly in the post-neonatal period of Japan’s industrialization. The result suggests that coal combustion accounted for over 20% of the overall increase in infant mortality rate from 1899 to 1910. My findings confirm the negative aspect of the Industrial Revolution, which led to the coal-based economy. 

7/12/2024 (Fri) 

Presenter: Weina Zhou (Dalhousie U)

Format: Hybrid@Toyo U

Title: Waste management and water pollution 

Abstract: This paper examines the causal impacts of reducing solid waste imports on water quality in China, the world’s largest waste-importing country until recently. China’s National Sword policy, which abruptly banned the import of plastics, textiles, vanadium slag and paper at the end of 2017, reduced the import of these wastes from 1.25 million tons per month to virtually zero. By exploiting the discontinuity in imported waste, we find significant improvements in water quality in prefectures imported wastes.  

8/30/2024 (Fri) 

Presenter: Anna Lou Abatayo (Wageningen U)

Format: Online

Title: Risky Externalities and the Mesopelagic Zone 

Abstract: The mesopelagic zone is one of the Earth’s largest untapped resources, but this is changing as countries like Norway being testing mesopelagic fishing techniques. Despite this shift, little research has explored public willingness to exploit this zone or how people might behave when such risky exploitation could lead to negative externalities on others. We conduct a survey in 10 countries, providing varied information about the mesopelagic zone, and a laboratory experiment on risk-taking and externalities. Our findings show that Argentinians are less supportive of mesopelagic fishing when informed about negative food externalities, while the Dutch and Spaniards are less supportive when told it harms developing countries. The lab experiment revealed that people are generally less willing to take risks or impose negative externalities on others when both are involved. Additionally, males are more inclined to take risks and impose externalities on others when they might face similar risks themselves.

10/24/2024 (Thu)

Presenter: Ola Olsson  (University of Gothenburg)

Format: Online 

Title: The Political Economy of Bread and Circuses: Weather Shocks and Classic Maya Monument Construction

Abstract: In early states, government elites provided both productivity-enhancing infrastructure, such as irrigation systems, as well as seemingly non-productive monumental architecture like temples and pyramids. The nature of this ”bread-and-circuses”-tradeoff is not well understood. In this paper, we examine this phenomenon in the Classic Maya civilization (c. 250-950 CE) where city-state elites chose between investing in essential water management infrastructure (reservoirs, canals), and monumental architecture. We analyze information from 870 dated monuments from 110 cities. Correlating this dataset with a proxy record for variations in annual rainfall, we find–perhaps counter-intuitively–that monumental construction activity was more intense during drought years. A text analysis of 2.2 million words from deciphered hieroglyphic inscriptions on monuments, further shows higher frequencies of terms associated with war or violent conflict during periods of drought. We propose that in the Classic Maya setting, with numerous small city-states, monument construction functioned as a costly signaling device about state capacity, designed to attract labor for future control of revenue.

11/19/2024 3PM ~ 4:30PM

Presenter: Yusuke Fushiki  (PRIMAFF)

Format: Hybrid @ PRIMAFF

Title: Economics Significance of Agricultural Policy Finance in Japan 

Abstract: Since the post-war period, Japan has engaged in prolonged policy interventions in the agricultural finance market. Agriculture, deemed unique relative to other industries, has historically been perceived as subject to credit constraints due to its “avoidance by private finance,” a view that has consequently served to justify policy intervention. However, contemporary agricultural policy finance in Japan now targets economically viable farm enterprises, rather than the small, capital-poor farms of the past. This study examines whether these modern agricultural entities continue to face exclusion from private finance. Evidence is presented to show that the 2008 policy finance reforms, while little increasing capital in primary industries, led to reduced labor productivity, indicating that credit constraints may no longer be a significant concern. The study questions the relevance of policy finance today, reassessing its purpose as the enhancement of agricultural competitiveness through fostering efficient farm management. Theoretically, it argues that policy finance can retain relevance if low-interest loans directed at leading farmers generate spillover effects that contribute to industry growth. This is supported by an empirical analysis based on cost functions, which demonstrates the existence of such spillover effects.

12/13/2024 4PM~5:30PM

Presenter: Yuta Toyama  (Waseda University)

Format: Hybrid @ Musashi University

Title: Designing Nonlinear Electricity Pricing with Misperception: Evidence from Free Electricity Policy (joint work with Ngawang Dendup)

Language: Japanese with slides in English (Q&A available in English) 

Abstract: This paper assesses the welfare effects of nonlinear electricity pricing in the presence of consumer misperceptions regarding the pricing schedule. Our analysis focuses on a unique electricity subsidy program in Bhutan, wherein electricity is provided free of charge up to a consumption of 100 kWh per month in rural regions. Utilizing administrative billing data from the entire population of retail customers, we observe a notable bunching of electricity consumption at 100 kWh following the introduction of the program. In order to explain this observation and deduce the welfare implications of the policy, we develop and estimate a model of electricity demand that accounts for the heterogeneous (mis)perceptions of consumers regarding the pricing schedule. By leveraging the differential behavior at the threshold and variation of the tariff schedule, we identify and estimate the types of perceived pricing schedules and underlying electricity demand. We conduct a simulation analysis to evaluate the free electricity policy, which demonstrates that the current subsidy scheme primarily benefits households with higher electricity consumption. We explore the optimal tariff schedule and its welfare and distributional implications.