Powering Down and Moving On? Energy Transition, Gentrification, and Local Impacts
Abstract: This study investigates the effects of fossil fuel power plant closures on local migration. I leverage variation in fuel prices and plant age that results in plausibly exogenous power plant retirements. The retirement results in a “stagnation effect” where both in-migration and out-migration decreases, a pattern not consistent with a typical gentrification result of increased in and out migration. My analysis shows that the stagnation effect is more pronounced in lower-income and predominantly Black communities, raising environmental justice concerns. These findings underscore the complex interplay between the environmental advantages and local economic challenges associated with phasing out fossil fuel infrastructure.
Social Norms on the Consumption of Eco-labeled Products (with Tibor Besedes, draft upon request)
Abstract: This study investigates the impact of social norms information on consumer behavior regarding eco-labeled products. I focus on three types of norms: injunctive norms, descriptive norms, and working-together normative appeals. Through a choice experiment, I explore how different norms interact with multiple eco-labels. Notably, descriptive norms begin to influence consumer choices when 50% or more of consumers are reported to purchase the product. Consumers exhibit a willingness to pay a premium for eco-labels, and this willingness increases with the number of labels presented. Under treatments involving injunctive norms and working-together appeals, both descriptive norms information and certified eco-labels contribute to higher willingness-to-pay values. These findings provide insights for promoting green consumption and environmental improvement through strategic norms communication.