Corrado Di Maria

• PhD (Tilburg)
• Professor (Full) at University of East Anglia

We ask whether firms behave differently depending on the political party in charge, above and beyond responding to any actual differences in policy. We use the pollution abatement behaviour of U.S. Steam Electric Power Plants under the Clean Water Act as our case study. Exploiting the variation provided by the outcome of tightly contested gubernato...

Egypt ranks first worldwide for the number of deaths attributable to PM2.5 air pollution, yet the economic value of improved air quality and the value of reducing mortality risk due to industrial air pollution has never been evaluated using primary data for Egypt. In this paper, we fill this gap focusing on the Greater Cairo and Alex-andria metropo...

Having constructed a unique dataset of consumption-based CO 2 emissions for 17 different types of fossil fuels, 46 sectors and 7 industrial processes at the city level for 285 Chinese prefectures and municipalities, we assess the causal impact of China's Low-carbon City Pilot (LCCP) on city-level CO 2 emissions and GDP CO 2 intensity over the perio...

The UN Sustainable Development Goals (SDGs) and the Paris Agreement have ushered in a new era of policymaking to deliver on the formulated goals. Energy policies are key to ensuring universal access to affordable, reliable, sustainable, and modern energy (SDG7). Yet they can also have considerable impact on other goals. To successfully achieve mult...

In the presence of implementation lags, announced Pigouvian taxation leads to fossil fuel prices that are too low from society’s perspective. This results in excessive emissions and reduced incentives for green innovation. Such effects are compounded by the presence of pre-existing subsidies to fossil fuel use. We show that the intertemporal resour...

We use a panel dataset of about 5,000 Lithuanian firms between 2003 and 2010, to assess the impact of the EU ETS on the environmental and economic performance of participating firms. Using a matching methodology, we are able to estimate the causal impact of EU ETS participation on CO2 emissions, CO2 intensity, investment behaviour and profitability...

A detailed and rigorous analysis of the effect of climate policies on climate change that questions the empirical and theoretical support for the “green paradox.” Recent developments suggest that well-intended climate policies—including carbon taxes and subsidies for renewable energy—might not accomplish what policy makers intend. Hans-Werner Sinn...

We use a panel dataset of about 5,000 Lithuanian firms between 2003 and 2010, to assess the impact of the EU ETS on the environmental and economic performance of participating firms. Using a matching methodology, we are able to estimate the causal impact of EU ETS participation on CO2 emissions, CO2 intensity, investment behaviour and profitability...

This paper analyzes theoretically and empirically how upstream markets are affected by deregulation downstream. Deregulation tends to increase the level of uncertainty in the upstream market. Our theoretical analysis predicts that deregulated firms respond to this increase in uncertainty by writing more rigid contracts with their suppliers. Using t...

We argue that the literature on the green paradox has largely ignored the demand side of the resource market, and that this side of the market may mitigate the size of an emissions increase in response to imperfect climate policies. These claims are informed by recent empirical findings. Our arguments lead to clear policy recommendations.

Because of the difficulties in forming international climate agreements, most climate policies have been the result of unilateral action. There is widespread concern that unilateral policies are ineffective because emission reductions in abating countries are offset by increases in nonabating countries. The authors summarize the channels through wh...

Conventional wisdom argues that environmental policy is less costly if environmental policy induces the development of cleaner technologies. In contrast to this argument, we show that the cost of environmental policy (a reduction in emissions) may be larger with induced technical change than without. To explain this apparent paradox, we analyze thr...

This paper presents the first empirical test of the green paradox hypothesis, according to which well-intended but imperfectly implemented policies may lead to detrimental environmental outcomes due to supply side responses. We use the introduction of the Acid Rain Program in the U.S. as a case study. The theory predicts that owners of coal deposit...

We study the effectiveness of environmental policy in a model with nonrenewable resources and an unavoidable implementation lag. We find that a time lag between the announcement and the implementation of an emissions quota induces an increase in emissions in the period between the policy's announcement and implementation. Since a binding constraint...

Well-intended policies aimed at reducing greenhouse gas emissions may have unintended undesirable consequences. Recently, a large literature has emerged showing that such a `green paradox' may occur in response to particular policies. We review this literature and identify four different imperfect policy approaches that may induce a green paradox....

We use historical industrial emissions data to assess the level of abatement and over-allocation that took place across European countries during the pilot phase (2005–2007) of the European Union Emission Trading Scheme. Using a dynamic panel data model, we estimate the counter factual (business-as-usual) emissions scenario for EU member states. Co...

Well-intended policies aimed at reducing greenhouse gas emissions may have unintended undesirable consequences. Recently, a large amount of literature has emerged showing under what conditions this so-called ‘Green Paradox’ may occur. We review this literature and identify the key mechanisms behind these paradoxical policy outcomes and highlight av...

The rate of greenhouse gas reducing technological change and occurrence of environmentally friendly innovation are integral in reducing emissions levels. The European Union commenced the pilot phase of the European Union Emissions Trading System(EU ETS) in 2005 with the intent to enhance the adoption of existing low-carbon technologies and the deve...

This study uses the EU public power generating sector as a case study to investigate the environmental efficiency and productivity enhancing performance of the European Union’s CO2 Emissions Trading Scheme (EU ETS) in its pilot phase. Using Data Envelopment Analysis methods, we measure the environmental efficiency and the productivity growth regist...

This study uses the EU public power generating sector as a case study to investigate the environmental efficiency and productivity enhancing performance of the European Union’s CO2 Emissions Trading Scheme (EU ETS) in its pilot phase. Using Data Envelopment Analysis methods, we measure the environmental efficiency and the productivity growth regist...

This study uses the EU public power generating sector as a case study to investigate the environmental efficiency and productivity enhancing performance of the EU ETS in its pilot phase. Using Data Envelopment Analysis methods, we measures the environmental efficiency and the productivity growth registered in public power generation across the EU o...

Until now, there has been little empirical evidence that EU Emissions Trading Scheme (ETS) transaction costs are incurred at firm level. The transaction costs (internal costs, capital costs, consultancy and trading costs) incurred by Irish firms under the EU ETS during its pilot phase (2005–2007) were measured and analysed. Evidence for the sources...

The European Union commenced the pilot phase of the European Union Emissions Trading System (EU ETS) in 2005 with the intent to enhance the adoption of existing low-carbon technologies and the development and of new ones by putting a price on CO 2 emissions. We survey Irish EU ETS firms to study the occurrence and determinants of CO 2 emissions fri...

In this empirical investigation we study the effect of skilled emigration on human capital formation and growth in a sample of developing countries. We find that the migration rate exerts statistically significant effects on both the level and the skill composition of human capital. We also show that these migration-induced changes in the formation...

We study how the possibility of migration changes the composition of human capital in sending countries, and how this affects development. In our model, growth is driven by productivity growth, which occurs via imitation or innovation. Both activities use the same types of skilled labour as input, albeit with different intensities. Heterogenous age...

Despite the potential energy savings and economic benefits associated with compact fluorescent light bulbs (CFL’s), their adoption by the residential sector has been limited to date. In this paper, we present a theoretical model that focuses on the agents’ ability to perceive the correct cost of lighting and on the role of environmental attitudes a...

This paper measures the transaction costs incurred by Irish firms under the European Union’s CO2 Emissions Trading Scheme (EU ETS) during its pilot phase (2005 - 2007). Our analysis provides evidence that such costs were mainly administrative in nature. We emphasize the existence of sizeable economies of scale, as the costs per tonne of CO2 were lo...

We study the effectiveness of climate change policy in a model with multiple non-renewable resources that differ in their carbon content. We find that, when allowing some time between announcement and implementation of a cap on carbon dioxide emissions, emissions from non-renewable energy sources increase at the time of announcement. There are two...

We analyze a two-sector growth model with directed technical change where man-made capital and exhaustible resources are essential for production. The relative profitability of factor-specific innovations endogenously determines whether technical progress will be capital- or resource-augmenting. We show that any balanced growth equilibrium features...

A common critique to the Kyoto Protocol is that the reduction in emissions of CO2 by countries who comply with it will be (partly) offset by the increase in emissions on the part of other countries (carbon leakage). This paper analyzes the effect of technical change on carbon leakage in a two-country model where only one of the countries enforces a...

Despite the potential energy savings and economic benefits associated with compact fluorescent light bulbs (CFL's), their adoption by the residential sector has been limited to date. In this paper, we present a theoretical model that focuses on the agents' ability to perceive the correct cost of lighting and on the role of environmental attitudes a...

We analyze a multi-sector growth model with directed technical change where man-made capital and exhaustible resources are essen- tial for production. The relative profitability of factor-specific inno- vations endogenously determines whether technical progress will be capital- or resource-augmenting. We show that convergence to bal- anced growth i...

In this paper we investigate the effects of emigration on growth in developing countries. We present a model in which productivity increases either through imitation or innovation, and both activities use the same types of human capital as inputs, albeit with different intensities. Heterogenous agents accumulate human capital responding to economic...

Is technological change good for the environment in a globalized world, or does it rather lead to more pollution? Do climate policies represent worthy attempts to preserve the environment for future generations, or are they just pointless burdens on economic systems? Do efforts to increase the level of education in developing countries lead to fast...

Our paper focuses on the role of endogenous technology and technology spillovers in explaining cross country differences in pollution and the pollution haven effect of international trade. In our North-South trade model, technology is endogenously developed by the North and imitated by the South. Environmental regulators choose national environment...

A long-standing economic tradition maintains that labour supply reacts to market tightness; its sensitivity to job quality has received less attention. If firms hire workers with both temporary and open-ended contracts, does participation increase when more permanent jobs are available? We investigate this relationship within a policy evaluation fr...

this paper analyses on an empirical basis the relation between inflation and growth. The focus is on the effects of human capital variables (introduced by schooling rates and fertility) and on the country pooling. For this last point there is a clear and expected difference between industrialised and non-industrialised countries, among the last gro...

I modify the uniform-price auction rules in allowing the seller to ration bidders. This allows me to provide a strategic foundation for underpricing when the seller has an interest in ownership dispersion. Moreover, many of the so-called "collusive-seeming" equilibria disappear.

This paper presents an endogenous growth model which features elastic labour supply in order to address the distortions created by labour income and consumption taxation. Introducing elastic labour into an AK model greatly changes the structure of the model and raises problems regarding the existence and the stability of a balanced growth path. Ano...

Our paper focuses on the role of endogenous technology and technology spillovers in explaining cross country differences in pollution and in influenc-ing the pollution haven effect of international trade. We present a North-South trade model, in which technology is endogenously developed in the North and adopted in the South. The model features env...

We study the optimal paths of resource extraction and carbon dioxide emissions when the economy faces an announced constraint on emissions. We show that along the optimal trajectory emissions increase at the instant of announcement, which goes directly against the spirit of the policy. Furthermore, extraction and utility jump down at the instant at...

In this paper we study the optimal extraction of two fossil fuels when the economy faces an announced constraint on emissionsa la Kyoto, and the resulting path of emissions of CO2. When high- and low-carbon resources are perfect substitutes, announcement of climate policy induces substitution towards the high-carbon input whenever this resource is...

We study the optimal path of extraction and emissions in the presence of unavoidable im-plementation lags. In our model, emissions of a stock pollutant stem from consumption of a non-renewable resource. We initially investigate the design of a climate tax within this frame-work, and show that a tax in this scenario induces an increase in emissions...