Institutions and Information in Environmental Public Goods Provision

Session Submission Type: Panel

Abstract

Effective management of water, air, and agricultural systems is essential for sustainable development and enhancing societal well-being. This panel features four empirical studies that investigate how the design and implementation of environmental policies can either mitigate or intensify environmental harms, along with their broader impacts on populations. Drawing on diverse datasets and methodological approaches across varied contexts, these studies shed light on the complex relationships between environmental policy design, human health, and agricultural practices.

The first paper evaluates a randomized SMS-based intervention in Lahore, Pakistan that disseminated daily air quality forecasts to residents of working-class neighborhoods. Treatment arms varied based on the source of the forecasts—either from the government or from a well-known citizens’ group—allowing for measurement of if and how citizens trust and value air quality information across different sources. While WTP was similar across groups, government-labeled forecasts were perceived to be less accurate. These findings highlight the role of credibility and competition in public goods provision, especially in low-resource settings.

The second paper evaluates the impact of Peru’s 2019–2022 national water chlorination program on early childhood health. This program introduced drip chlorination systems, distributed chlorine supplies, and built local capacity for water management. Using household survey data from 2015–2023 and policy rollout information, difference-in-differences and event study analyses reveal that the program led to modest but meaningful improvements in child health, particularly in height-for-age z-scores, with the largest gains among girls and children exposed under age two. These findings underscore the value of sustained, early exposure to clean water and offer crucial lessons for global policymakers seeking to expand access to safe drinking water.

The third paper examines the unintended agricultural consequences of Colombia’s aerial coca eradication program, which used glyphosate spraying between 2011–2015 as a place-based anti-narcotics strategy. It uses a novel wind dispersion model and a two-way fixed effects design to show that wind-driven glyphosate exposure caused significant off-target damage to smallholder farms. Crop diversification offered little protection, and the negative effects persisted for years, with no evidence of adaptation. Following the 2015 ban on aerial spraying, modest agricultural recovery occurred, but it was insufficient to undo the prior damage. The findings underscore the need for policymakers to consider the long-term economic and social costs of targeted eradication strategies.

The fourth paper examines whether access to solar-powered cold storage helps mitigate the impact of extreme heat on agricultural trade in peri-urban India. Using a randomized trial involving 300 farmers and traders, if finds that free coldroom access significantly increased usage, leading to gains in quantity sold and revenue, without affecting prices. These benefits were especially pronounced during hotter weeks and among traders selling directly to consumers, while smallholder farmers saw limited effects. The findings suggest that cold storage improves market resilience and offers a scalable solution for climate adaptation in food systems.

Policy Area

• Natural Resource, Energy, and Environmental Policy

Chair

• Sara R Curran, University of Washington

Discussants

• Agustina Laurito, University of Illinois, Chicago

• Kathryn Chelminski, Brown University

Organizer

• Emily L Pakhtigian, Pennsylvania State University

Individual Presentations

• Beliefs, Signal Quality, and Information Sources: Experimental Evidence on Air Quality in Pakistan - Presenting Author: Shotaro Nishimura Nakamura, Federal Trade Commission

• Tapping into Health: Drinking Water Quality and Early Childhood Development - Presenting Author: Emily L Pakhtigian, Pennsylvania State University

• Cold Storage on a Hot Day: Coldrooms and Climate Adaptation in Agricultural Markets in India - Presenting Author: Shweta Bhogale, Massachusetts Institute of Technology