Working Papers
Working Papers
We administer a large-scale representative survey with randomised video treatments to test how different policy frames affect citizens' attitudes towards urban tolls in two large European metropolitan areas, Berlin-Brandenburg and Paris-Ile de France. Providing information on air pollution increases support by up to 11.4%p, information on climate change and time savings increase support by 7.1 and 6.5 %p, respectively. Treatment effects are stronger in the Paris region, where initial support is lower. Urban toll support is higher among households with more education and income, trust in state institutions and science, as well as those living in urban centers. Women and car owners dislike tolls more strongly. Support more than doubles when tolling revenues are invested in public transport infrastructure. Our findings imply that providing targeted information to specific population groups can significantly alter policy support.
[Working Paper] [Submitted]
Registered as AEARCTR-0010783.
Video Treatments: Time [DE, FR], Air Pollution [DE, FR], Climate Change [DE, FR], Control [DE, FR]
Press coverage: Weekendavisen (in Danish).
This paper uses a novel GPS-coded dataset for more than three million car trips in the four largest German cities to measure the efficiency losses from using uniform fuel taxes as a second-best optimal tax to reduce traffic congestion. We estimate the short-run price elasticity of vehicle-kilometres travelled (VKT) across different hours of the day from a panel gravity equation. Identification of the price elasticity relies on comparing VKT changes between granular trip origin and destination pairs within each city. We find that the VKT price elasticity differs strongly across trips taken at different hours of the day, and that this elasticity correlates with contributions to the congestion externality. Using a policy simulation, we show that 52% of the deadweight loss of the congestion externality remains after levying a uniform fuel tax.
Choosing well-suited policies to support carbon dioxide removal (CDR) is vital to successfully reach net zero goals. We construct a taxonomy that categorizes various policies implemented and under consideration to support CDR efforts. We evaluate the stringency, efficiency, feasibility, strategic fit, and potential trade-offs associated with each policy. We also assess policy sequencing along different stages of technological readiness levels, and we illustrate our framework with applications to the European Union, the United Kingdom and the United States. Our work highlights the need to introduce complementary and mandatory policy bundles, which ideally change over time as CDR technology matures. In addition, the objective to provide stable and effective policy signals must be balanced with the flexibility required to keep up with technological change, while also aligning with government budget constraints.
[Working Paper] [Submitted]
This paper studies the role of climate policy in the transmission of monetary policy to bank credit supply. We use a confidential loan-level dataset with bank- and firm-level balance sheet and carbon emissions data, to estimate the impact of an exogenous bank-level liquidity shock on lending to firms participating in the European emissions trading system (ETS). We find that banks more strongly affected by the shock increase lending to ETS firms. A 0.1 increase in the deposits-to-asset ratio increases lending by between 0.17% and 0.42%. Banks also decrease the default probabilities for their loan exposures to ETS firms, indicating that the marginal loan to ETS companies are perceived as safer.
The welfare effects of Carbon Contracts for Difference (with Antonio Bento)
The impact of corporate tax incentives on green investment (with Laura Lehtonen and Fulvia Marotta)