Environmental and Urban Economics

MAY 19, 2022

I joined the USC Economics faculty in 2015 and Romain Ranciere also joined that year. Permit me to list the impressive scholars who have subsequently joined our faculty. Marianne Andries Tim Armstrong Vittorio Bassi Augustin Bergeron Fanny Camara Thomas Chaney Pablo Kurlat Jonathan Libgober Robert Metcalfe Monica Morlacco Afshin Nikzad Paulina Oliva Simon Quah Jeffrey Weaver David Zeke In July 2022, a star theorist will join our department as our newest hire.

2015 124

2015 2022 124

Environmental and Urban Economics

MAY 6, 2022

The Los Angeles Times rejected my piece that I present below. Of course, I'm trying to sell my new 2022 Going Remote book!! The New New Geography of Jobs LeBron James joined the Los Angeles Lakers in 2018. He wanted to live and work in Los Angeles. How many of us have compromised as we live in a place because our work is nearby? Going forward, a silver lining of the pandemic is that more and more of us will have the option to live where we want to live as we engage in WFH on either a part-time o

2018 100

2018 2022 Climate Change 2021 100

Environmental and Urban Economics

APRIL 24, 2022

Tomorrow, the University of California Press will publish my Going Remote book. In February 2021, Johns Hopkins Press published my Co-authored " Unlocking the Potential of Post-Industrial Cities" and in March 2021, Yale University Press published my book; " Adapting to Climate Change". Why did I write these 600 total pages of stuff? The Ongoing Challenge faced by Baltimore, Cleveland and Detroit I spent two years working at Johns Hopkins University and I lived in downtown Baltimore for a year be

Climate Change 124

Climate Change Sea Level 2021 2019 124

Environmental and Urban Economics

APRIL 11, 2022

The New York Times has publishe d a good opinion piece by a Professor of English on the unintended consequences of federal subsidies and regulations for living in flood plains. In this brief piece, I am not talking about surviving a flood. Instead, I will discuss how flood risk (ex-ante) and flooding affects the real estate market and the distribution of income.

Climate Change 140

Climate Change Government 2021 2024 140

Environmental and Urban Economics

APRIL 2, 2022

This will be a "big think" blog post that shares my thinking about this March 2022 Nature Human Behavior paper titled " The data revolution in social science needs qualitative research". Permit me to focus on one example. Consider a sample of 5,000 equally talented and ambitious 18 year olds. Each has graduated from High School and each is considering applying to the University of California.

2022 100

2022 100

Environmental and Urban Economics

MARCH 31, 2022

While I don't write best selling books, I do like my books! Amazon se lls them here. In April 2022, my Going Remote book will be published. This book studies the urban and labor economic issues related to persistent Work from Home (or work from anywhere) going forward. Below, I post a growing set of podcasts where I discuss my book.

2022 199

2022 199

Environmental and Urban Economics

FEBRUARY 27, 2022

Most economists do not write books. The profession does not reward book authors and not every book sells like Freakonomics or Why Nations Fail. In truth, most economists do not read books and most view economics books to be indulgent as the author writes out thousands of words rather than cutting the fat, facing the referees and making his/her point concisely.

Recycling 113

Recycling Climate Change Politics 2021 113

Environmental and Urban Economics

JANUARY 23, 2022

China features state owned enterprises (SOEs) that pursue a "double bottom line". They simultaneously seek to earn profit and to please the powerful Central Government. Relative to their private sector counterparts, these Chinese SOE firms receive special treatment. They can often access subsidized energy, land and capital. Facing such low factor prices such firms use more resources and this creates distortions because the opportunity cost of one firm using scarce resources is that another more

Climate Change 113

Climate Change Politics 2021 Government 113

Environmental and Urban Economics

JANUARY 6, 2022

The new issue of the Economist includes an excellent Free Exchange column titled Lose-Lose Ordeal with the heading; "New research counts the costs of the Sino-American trade war". The article does a great job citing the new research by several top economists including my old colleague Pablo Fajgelbaum. Empirical research helps to understand the short run dynamics brought about by the Trump tariffs.

2017 124

2017 124

Environmental and Urban Economics

JANUARY 4, 2022

An excellent new NBER Working Paper t itled "Mandated vs. Voluntary Adaptation to Natural Disasters: The Case of U.S Wildfires" has been published. The authors have assembled a great data set to document that building codes cause upgrades of properties such that subsequent wildfires cause lower damage to property. This is a highly optimistic adaptation paper and it puts Government at the center of achieving adaptation progress.

2015 100

2015 Government Climate Change 2013 100

Environmental and Urban Economics

DECEMBER 11, 2021

The media keeps running articles that Greta Thunberg and a majority of the world's young people worry that " society is doomed" because of climate change. I understand that they seek to create a political movement to enact a global carbon tax. I support the carbon tax but do they really believe their rhetoric? Are they really such adaptation pessimists ?

Climate Change 100

Climate Change Politics 2021 100

Environmental and Urban Economics

NOVEMBER 20, 2021

The Washington Post has published a piece stating that the Secretary of Transportation, Peter Buttigieg, is the big winner of the Biden Infrastructure Bill as he will be attending many ribbon cutting ceremonies as grateful local mayors shake his hand. Economic research offers many insights here about the efficiency and equity effects of this multi-billion dollar investment.

2005 100

2005 2011 2021 Government 100

Environmental and Urban Economics

NOVEMBER 17, 2021

Bill Gates argues that we were insufficiently prepared for COVID-19. Does our failure to adequately prepare for this crisis portend a future under-investment to invest in self-protection to reduce our exposure to climate change risk? In the case of COVID, we had enjoyed 100 years of little exposure to vast contagion. This certainly played a role in lulling us into a complacent mindset.

Climate Change 113

Climate Change 2016 Government 2020 113

Environmental and Urban Economics

NOVEMBER 9, 2021

The Biden Administration is about to enact a new infrastructure law that will spend more than $1 trillion dollars on rebuilding America's infrastructure. Cities such as Baltimore, Cleveland, Detroit and St. Louis need new investment to boost the local economy, reduce local poverty, and increase the quality of life of children in these cities. My co-authored 2021 book; " Unlocking the Potential of Post-Industrial Cities" explores the synergistic investments that are needed to help the many poor p

2013 130

2013 2015 2021 Government 130

Environmental and Urban Economics

NOVEMBER 6, 2021

A few thoughts about the pending Infrastructure Bill. What Criteria Will be Used to Allocate the Money? An efficiency criteria would state that it should be allocated to those places and on those projects within such places that offer the greatest economic and quality of life impact. Before we make such irreversible investments, how do we know what these effects will be?

Politics 188

Politics Electricity Government 188

Environmental and Urban Economics

OCTOBER 25, 2021

The Low Tide Beckons No more Economics Talk I will Tweet later.

264

264

Environmental and Urban Economics

OCTOBER 24, 2021

Imagine if there is an infectious disease that spreads within cities but not across cities. Throughout the COVID crisis, the city specific infection rate has varied across cities at each point in time. In a city facing a rising infection rate, people can adapt by either engaging in costly self protection (self isolating) or through public health interventions such as vaccinating the local population.

Climate Change 100

Climate Change Air Pollution 2015 2017 100

Environmental and Urban Economics

OCTOBER 7, 2021

My wife and I own a well known Electric Vehicle that monitors our driving in Southern California. The car company knows how many miles we drive and the car company knows that Dora is a safe driver based on her average speed and the braking she engages in and the fact that she doesn't engage in stop and go driving. While I have a driver's license, I do not drive.

Electricity 113

Electricity 113

Environmental and Urban Economics

SEPTEMBER 22, 2021

Politico reports on t he policy challenge that the Biden Administration faces. There are thousands of Haitian immigrants living in squalid conditions under the Del Rio International Bridge. A dynamic incentives issue arises. If the Biden Administration engages in humane policies to help these immigrants then this will attract more immigrants to move to the area as they will anticipate that they will be treated well.

Climate Change 100

Climate Change Government 100

Environmental and Urban Economics

SEPTEMBER 20, 2021

The Biden Administration has made an announcement that it seeks to protect outdoor workers from extreme heat exposure. What does the theory of compensating differentials in real estate markets and labor markets teach us about exposure to high temperatures. I maintain two assumptions. Assumption #1: The apartment rental market is perfectly competitive and an area's heat risk is common knowledge.

Cooling 189

Cooling Climate Change 189

Environmental and Urban Economics

AUGUST 19, 2021

The Wall Street Journal reports that Amazon is opening retail stores in cities. On one level, this poses a puzzle because Amazon's rise was fueled by its cost savings due to the fact that it is a virtual store. Over the decades, Amazon has assembled a huge database about each of its customers. Such data (and knowing where each of us lives) allows it to make educated predictions about what goods we will want to buy at its retail stores.

2015 140

2015 140

Environmental and Urban Economics

AUGUST 18, 2021

Michael Mann has co-authored a witty letter to the Wall Street Journal. Here is a photo for you to appreciate his insights. His letter makes an analogy between climate change and Clint Eastwood in the first Dirty Harry movie. For those of you who are too young to have watched this then watch this YouTube Video. In this scene, the Bad Guy is uncertain about whether Clint still has a bullet in his gun.

Climate Change 182

Climate Change Greenhouse 2021 182

Environmental and Urban Economics

AUGUST 11, 2021

In a series of pieces, I have explored how the for profit insurance industry can accelerate climate change adaptation progress. Here is my recent RMS interview. Here is my 2017 co -authored Harvard Business Review piece. Imagine a free market economy where there is no government regulation of insurance markets and those who seek insurance can contract with for profit insurers.

Climate Change 113

Climate Change 2017 Government Regulations 113

Environmental and Urban Economics

AUGUST 8, 2021

A few months ago, I posted a Twitter tweet about how to use REPEC data to rank academic couples. I followed a symmetric transparent method. My criteria takes the REPEC Ranking for one spouse + REPEC ranking for the other spouse. I treat them as equals. If an economist is not married to an economist or if a highly ranked economist is married to another economist who is not ranked on REPEC, then they are not included.

2021 113

2021 113

Environmental and Urban Economics

AUGUST 7, 2021

Across all of the world's economists; #9 in Environmental Economics #25 in Urban economics #4 in Resource Economics #27 in Energy Economics

100

100

Environmental and Urban Economics

JULY 16, 2021

John Cochrane recently posted an important blog post sketching out his claim that climate change will only have a small impact on world GNP over the next 75 years. He argues that the trend growth (3% growth for 60 years) will swamp the effect of climate change). As I discuss in my 2010 Climatopolis book, Singapore in recent decades has been highly productive despite the nation's heat and humidity.

Climate Change 230

Climate Change 2010 2008 2021 230

Environmental and Urban Economics

JULY 14, 2021

Consider a University of Chicago Econ 301 homework assignment situated in Summer 2021 in the American West. "You own a $500,000 home in a fire zone in the American West. You owe $X on your mortgage. It is common knowledge that your property now faces greater air pollution exposure and a higher probability of burning down. You are not alone. You have Z neighbors who live near you who face the same challenge.

Air Pollution 133

Air Pollution Climate Change 2021 133

Environmental and Urban Economics

JULY 11, 2021

John Cochrane has posted an important blog post about adapting to climate change. His piece mainly focuses on macroeconomic issues. For decades, John was colleagues with Bob Lucas and those familiar with Robert Lucas's optimistic work on economic growth will see a correlation. While John makes many points, his main point is; "if a world's economy grows by 3% per year out to the year 2100 it will be rich enough to handle any of Mother Nature's shocks at that point or along the way".

Climate Change 100

Climate Change Fossil Fuels 2009 2010 100

Environmental and Urban Economics

JULY 10, 2021

A nuanced blog post about the damage that we will suffer because of climate change. Given all of the uncertainty associated with climate change, it is important to distinguish a few dimensions of this uncertainty; #1 Will we face more frequent and more severe weather events going forward in time? I believe that the answer is yes because I believe that global GHG emissions will continue to rise. #2 Will such punches thrown by Mother Nature cause more damage over time in terms of lives lost and $

Climate Change 100

Climate Change Atmosphere 100

Environmental and Urban Economics

JULY 10, 2021

Cliff Winston sent me a copy of his forthcoming book Gaining Ground - -- so I read it. This is an optimistic book that celebrates the constructive role that markets play in improving our quality of life. A theme throughout the book is the synergy between market forces and government activity. Cliff does a great job surveying the recent empirical literature to inform his discussion.

Government 113

Government 113

Environmental and Urban Economics

JUNE 18, 2021

From 2017 to 2019, I served as the Chair of the USC Economics Department. Josh Aizenman served before me and he taught me the ropes. Under Josh's leadership, great things were already taking place at USC Econ and I built on this momentum. Romain Ranciere took over as Chair in Summer 2019 and he has done an outstanding job building up the department's research, teaching and outreach activity.

2019 100

2019 2020 2017 2021 100

Environmental and Urban Economics

JUNE 9, 2021

Back in 2011, my old friend Enrico Moretti published his important New Geography of Jobs book. You can read a synopsis here. Along with many other urban economic scholars, I am fascinated by how different geographic locations compete for jobs and people. Every geographic location represents a bundle of production possibilities, learning opportunities and quality of life opportunities.

Climate Change 113

Climate Change Sea Level 2021 2011 113

Environmental and Urban Economics

DECEMBER 27, 2020

Several excellent urban economics research teams have access to U.S geocoded cell phone data. Since I am not part of any of these teams, I will use this blog post to offer them some unsolicited advice. For some examples of these teams; skim this and this. Geotagged data provide researchers with a spatial and temporal high frequency database to know where each person spends her day.

2020 184

2020 Air Pollution 2018 2019 184

Environmental and Urban Economics

DECEMBER 28, 2020

Post-pandemic many educated people will be working from home 3 days a week. Some of these people will choose to live further from city centers. How will such "sprawl" and reduced work trips affect the profitability of ride sharing companies? For urban economists to be useful here, we need to make some progress on a few core questions. Does Uber make more money on short urban trips versus picking people up in the far flung suburbs?

Technology 189

Technology Technology 189

Environmental and Urban Economics

DECEMBER 29, 2020

In recent decades, U.S Clean Air Regulations have focused on reducing the emissions of new cars, new factories and new power plants. Old cars, old factories and old power plants have often been "grandfathered" and haven't faced regulations. Given the durability of capital, this differential regulation creates long lags between "cause" and "effect". In this case, the cause is the new regulations and the effect is environmental progress.

2011 100

2011 Clean Air Act Regulations Air Pollution 100

Environmental and Urban Economics

DECEMBER 30, 2020

Congratulations to Nick Kristof of the New York Times. I am really impressed with this discussion between him and Carol in Berkeley. My mother's name is Carol and she has been to Berkeley and I'm wondering if my mom wrote the following response; Here is the NY Times Source and my remarks appear below. By all means, let’s talk about “personal responsibility”’ — Nicholas Kristof Carol in Berkeley, Calif., on “ Who Killed the Knapp Family?

2015 190

2015 Politics Law 190

Environmental and Urban Economics

JANUARY 9, 2021

Suppose that masks are invisible, would more people wear them? Would more supporters of President Trump wear them? How much of the opposition to playing it safe and putting on a mask is due to the economics of identity? To repeat my question, if you could put on a mask but everyone else wouldn't know that you were wearing one, would this increase your probability of putting it on?

2001 189

2001 Government Law 189