This study develops a replicable framework for estimating the size and economic contribution of the bioeconomy and circular economy, using Southern Arizona as an illustrative case. It employs input–output modeling to include multiplier effects, reporting results in terms of jobs supported and value added. Because the framework relies exclusively on publicly available state- and county-level data, it can be readily applied to other U.S. regions, enabling consistent comparison across places and over time.

We explore the effectiveness of regulatory inspections in promoting compliance with environmental protection standards and the variations influenced by institutional trust and corruption. We utilize a nationally representative dataset of manufacturing micro, small and medium enterprises (MSMEs) in Zimbabwe using the Inverse Probability Weighted Regression Adjusting estimation method. We find that, first, regulatory inspections promote MSMEs’ compliance with environmental protection standards. Second, the impact of regulatory inspections on compliance is stronger when MSME owners have trust in regulatory institutions compared to when they do not. Third, regardless of entrepreneurs’ trust levels in institutions, the possibility of bribing regulatory agency officers dilutes the effectiveness of regulatory inspections in fostering compliance. Finally, in cases where entrepreneurs lack trust in institutions, regulatory inspections have no statistically significant effect on compliance for corrupt entrepreneurs.

This study examines the association between air pollution exposure and health using a representative survey sample from Siddharthanagar municipality of Nepal. Our data on household characteristics, spatial locations and individual lung function allow us to understand heterogeneity in exposure and respiratory health. We examine exposure differential through three potential mechanisms – occupation, residence and exposure avoidance. We employ a simultaneous equations model to account for the endogenous choice of avoidance and spatial error models to control for the spatial spillover of health outcomes. We find that outdoor workers and those residing near brick kilns have lower lung function. Exposure avoidance positively correlates with lung function. Exposure avoidance, however, is low among marginalized outdoor workers and individuals residing in polluted areas, further exacerbating the exposure gap among socioeconomic subgroups. The study advances the case of environmental inequity through the ‘triple jeopardy’ of low socioeconomic status, exposure differences and poor health.

This study treats the selection of land conservation and intensive use model counties as a quasi-natural experiment. Using Chinese county-level panel data, we evaluate the multidimensional impacts of the land conservation and intensive use policy (LCIUP). We find that LCIUP reduced PM2.5 concentrations in counties while simultaneously lowering per capita GDP, exerting a positive effect on environmental quality but a negative inhibitory effect on economic growth, showing a distinct environment–economy asymmetry. LCIUP restricts industrial land supply and curbs the entry of polluting enterprises, but fails to facilitate industrial transformation and upgrading. Counties reliant on secondary industries face significant industrial transformation lock-in challenges, while those with substantial market potential can achieve dual economic and environmental goals. Green finance policies effectively complement LCIUP to promote industrial transformation and upgrading, whereas technological innovation and talent attraction policies currently lack such synergy. Cost–benefit analysis confirms that LCIUP’s marginal environmental benefits outweigh economic losses.

Marine protected areas (MPAs) have proliferated to protect marine ecosystems and manage unsustainable fishing, but their outcomes vary by economic and governance contexts. Drawing on a panel dataset spanning 1995–2021 and employing the Pressure–State–Response framework, this study analyses how MPA coverage is associated with overexploited fish stocks and examines Official Development Assistance (ODA). Results show MPAs in high-income countries are associated with lower overexploited catch rates, reflecting robust governance. In low-income nations, however, limited capacity is often linked to ‘paper parks’ with negligible impact. Multi-purpose ODA – supporting sustainability goals – appears more effective than single-purpose ODA and is associated with better conservation outcomes. Integrating MPAs with fisheries management, supported by international assistance for enforcement, appears important for bridging disparities in effectiveness. By highlighting the interplay among economic conditions, governance and funding, this study offers higher-level insights into factors that shape MPA effectiveness, contributing to broader policy discussions on marine conservation.

Drawing on the New Economics of Labour Migration and debt overhang theories, this study investigates the joint impact of remittances and external debt on CO2 emissions in India, Pakistan, Bangladesh and Sri Lanka from 1991 to 2023. Using balanced panel data and multi-stage estimation techniques—including pooled OLS, Driscoll–Kraay standard errors and Feasible GLS—the study finds that remittance inflows consistently reduce emissions, likely by enabling cleaner household investments. In contrast, both external debt stock and debt servicing increase emissions, suggesting that debt burdens may crowd out environmentally friendly public spending. Notably, the interaction between debt stock and servicing shows a mitigating effect, while heavy debt servicing diminishes the environmental benefits of remittances. Additionally, urbanization and financial development contribute to higher emissions. These findings highlight the need for integrated policies that direct remittances towards green investments and incorporate environmental conditions into debt-servicing frameworks, helping South Asian countries pursue more sustainable development paths.

Afforestation and forest restoration have been central to emerging global strategies for climate change mitigation. Based on a framed field experiment (FFE) conducted in the Uttara Kannada region in Karnataka, India, this study investigates whether monetary incentives could effectively promote afforestation and what the likely distributional consequences are. The FFE set-up was designed to provide respondents with choices on planting native or commercial trees in their village common forest. The native trees were associated with higher risk of survival compared to commercial trees. They also provided a mix of monetary and non-monetary benefits which differed across three variations in the experimental design. We find that monetary payments for planting native species worked better when combined with non-monetary benefits. Also, private tenurial rights mediated responses to monetary incentives. The results highlight how heterogeneous interests within the community could play an important role in determining effectiveness and distributional outcomes of afforestation policy.

We describe the main insights from the papers included in this special issue, Challenges for the Development of Latin America in the Anthropocene: Current Research in Environmental Economics. The contributions are organized around three themes: the economic and welfare impacts of temperature variability, the role of institutions and user rights in shaping environmental governance and the effectiveness of regulatory instruments for managing ambient and atmospheric pollution. Together, these papers show that environmental outcomes in Latin America are deeply shaped by institutional capacity, governance quality and social inequality. By combining rigorous empirical analysis with attention to local contexts, they demonstrate how environmental economics can inform policy responses to the triple planetary crisis of climate change, biodiversity loss and pollution.

This study examines whether different biodiversity proxies – species, habitat and functionality – satisfy the scope sensitivity and plausibility criteria in willingness to pay (WTP) estimation using a choice experiment in Manu National Park, Peru. We introduce the network of species interactions as a proxy for functionality and apply latent class (LC) models, including attribute non-attendance (ANA), to account for heterogeneity in preferences. Our results indicate that functionality is the only proxy consistently meeting both validity criteria across all specifications. LC analysis reveals two segments: one (74.4 per cent) displaying coherent, scope-sensitive WTP across biodiversity attributes, and another (25.6 per cent) less engaged, disregarding standard proxies but still valuing networks. Even under ANA constraints, networks remain salient for less attentive respondents, underscoring their cognitive accessibility in complex ecological contexts. These findings highlight the methodological and policy relevance of functionality-based proxies for biodiversity valuation in megadiverse environments, where conventional measures may fail to elicit behaviourally consistent responses.

Drawing on unbalanced panel data with a maximum of 271,656 bilateral trade flow observations from 1996 to 2021, this study investigates both the linear and nonlinear influence of national Environmental, Social, and Governance (ESG) performance gaps on green exports. When the ESG performance of the exporting country exceeds that of the destination country, the results indicate that an increase in the ESG gap significantly stimulates green exports, and there is evidence that this stimulating effect is achieved by widening green innovation gaps. However, the marginal effect diminishes as environmental regulations in the destination country become more stringent. Conversely, when the exporting country’s ESG performance is lower, narrowing the ESG gap leads to an N-shaped relationship with green exports, which remains U-shaped after removing the extremes. This research provides empirical evidence and policy implications for the trade effects of ESG performance from a macro perspective, while supporting the rationality and necessity of the ESG concept.

The German grain legume market is characterized by fragmentation and limited competition, restricting farmers’ market access and legume cultivation. The aim of this study is to analyze the current trader structure and optimize its configurations using k-means clustering. Results reveal a concentration of traders in southern and western Germany, while many farmers lack access to traders, even within a 100 km radius. A more competitive market can be achieved without increasing the number of traders, but by expanding their trading distance between farmers and dealers. Optimized site selection is of central importance in this context. Policy should create incentives – for example, by supporting digital platforms – that encourage farmers to engage with more traders through improved information and transparency, and conversely, motivate traders to expand their service radius via drop shipping.

Artisanal-and-small-scale gold mining supports millions of livelihoods in the Global South but is the largest anthropogenic source of mercury emissions. Many initiatives promote mercury-free technologies that small miners could employ. Few document mercury impacts. We study an alternative: instead of processing themselves, small miners sell their ore to plants employing larger-scale, mercury-free technologies that also raise gold yields. Some ore-selling occurs without policy intervention, yet impacts on incomes and mercury use remain unclear. We assess ore-selling preferences of female waste-rock collectors (jancheras) in Ecuador, using a discrete-choice experiment. Results demonstrate that jancheras generally are open to ore-selling, yet often reject options similar to a recent pilot intervention. Offers that address formalization hurdles (invoicing), inabilities to meet quantity minima (given limits upon association, storage, and credit), and constraints on trust (including in plants’ ore testing) could increase adoption by tailoring related interventions to the preferences of and challenges for defined populations.

In many tourism-dependent islands, an acute imbalance between increasing demand for wastewater management and the capacity of existing sewage infrastructure represents an increased risk for ecosystems and population health. Given that locals may be opposed to increasing tourism taxes to fund investments in sewerage, promoting charitable giving among tourists may be an alternative to improve wastewater management in tourist destinations. Using a contingent valuation survey, this study assesses whether tourists are willing to donate to improve wastewater management in San Andres Island, Colombia. Split-sample treatments were implemented to examine the response of tourists' giving preferences to priming communications regarding the effects of poor wastewater management. Results indicate that tourists are willing to donate to improve local wastewater management. Our findings also provide useful insights about tourists' giving preferences to design effective charitable giving campaigns to improve wastewater management.

It has long been challenging to assess local residents’ quality of life, which is affected by numerous natural and man-made amenities. We develop a novel compensating differential model of quality-of-life rankings applicable to developing countries by introducing farm income into the household budget alongside housing and labour market differentials. We apply this model to Indonesia using detailed household data from the Indonesian Family Life Survey for two different time periods and combining estimates of agricultural, off-farm labour and housing market differentials. We find heterogeneous amenity impacts across the agricultural and off-farm labour sectors. We use our model to show how significant changes in rankings across time are consistent with contemporaneous internal migration patterns in Indonesia. These rankings yield important information for policymakers on expected changes in migration and can be used to help inform public investment.

Will rising temperatures from climate change affect labour markets? This paper examines the impact of temperature on hours worked, using panel data from Peru covering the period from 2007 to 2015. We combine information on hours worked from household surveys with weather reanalysis data. Our findings show that high temperatures reduce hours worked, with the effect concentrated in informal jobs rather than in weather-exposed industries. These results suggest that labour market segmentation may shape how climate change affects labour outcomes in developing countries.

This study examines the impact of environmentally oriented investments on firms’ integration into global value chains (GVCs). We use firm-level data in 41 countries from the Business Environment and Enterprise Performance Survey dataset and control for selection and endogeneity bias. Our findings reveal that the adoption of environmental protection actions boosts firms’ participation in GVCs. Measures reducing air pollution, followed by waste minimization techniques and energy management tools, yield the highest impact at both margins. Larger firms are more likely to experience a rise in their chances of participating in GVCs compared to their smaller counterparts. At the sectoral level, dirty sectors (such as plastics, construction and chemicals) are less likely to witness the positive impact of environment-friendly measures on GVC integration, given their production techniques that are CO2 and energy intensive. Finally, at the regional level, the effect of such environmental measures is more pronounced for firms located in European Union countries.

This study tests the null hypothesis that no significant differences exist in the relationship between economic growth and deforestation, based on the levels of growth and agricultural productivity in the municipalities of the Brazilian Legal Amazon. Grounded in the environmental Kuznets curve theory, this study employs a non-linear methodological approach to estimate the relationship between economic growth and deforestation. The results reject the null hypothesis, indicating that the relationship between growth and deforestation varies with the municipalities’ productive performance. Furthermore, the findings conclude that a negative monotonic relationship exists between economic growth and deforestation in the Brazilian Legal Amazon, suggesting that reductions in deforestation are achievable even during periods of economic expansion.

With the increasing demand for sustainable products, greenwashing has become more prevalent and sophisticated over the past decade. To better understand the incentives for firms to greenwash, we develop an evolutionary game-theoretic model in which firms may choose to mimic green behavior without having to bear the cost linked to green investment and production. We provide the conditions for the different evolutionarily stable equilibria. In a second step, we extend the model using agent-based simulations to incorporate path-dependent investment/production costs, history-dependent mimicry effectiveness, peer effects, and localized firm interactions. We show that the simpler model with random matching offers good approximations of the equilibrium conditions in more complex setups, but market segmentation supports green investment and production in contrast to higher penalties. While curtailing opportunities to pretend green behavior boosts green production, we also find that increasing cost efficiencies encourage firms to engage in green production, even in the face of increasingly sophisticated deceptive strategies. Based on our results, we suggest trio-targeted policies that reduce the (initial) costs of green investment/production, curtail opportunities to mimic green behavior, and support segmentation.

Despite the substantial evidence linking particulate matter exposure to adverse health outcomes, a large portion of the global population, particularly in low-income countries, continues to rely on highly polluting fuels, such as wood, for cooking and heating. This study evaluates the immediate effects of wood-burning restrictions, which are triggered by air quality warnings, on levels of fine (PM2.5) and coarse (PM10) particulate matter in southern Chile. Using a difference-in-differences design that incorporates pre-policy data, we provide plausible causal estimates indicating that wood-burning restrictions lead to significant reductions in hourly PM10 and PM2.5 concentrations during the most severe air quality warning. Additional analyses, including a regression discontinuity design, further support these findings. While our analysis suggests that wood-burning restrictions are effective, they may not be sufficient to reduce air pollution concentrations to levels that are considered safe for public health.

We examine the distributional impact of domestic carbon pricing in three Sub-Saharan African countries. We combine household expenditure surveys and sectoral carbon intensity data derived from a multi-regional input-output model for Ghana, Nigeria and Uganda. Our findings indicate that domestic carbon pricing is progressive in all three countries. This primarily results from higher budget allocations for direct energy consumption in wealthier households, especially concerning motor vehicles and electrical appliances. Disparities in welfare losses within income groups are primarily due to varying energy consumption patterns. Importantly, we identify low-income households as being disproportionately affected by carbon taxes. Lump-sum transfers could fully compensate most households in the bottom two income quintiles, significantly reducing poverty. Our comparative analysis emphasizes the importance of country-specific differences in energy expenditures and carbon intensities in shaping the distributional outcomes of carbon taxes.