The first chapter studies the aggregate consequences of misallocation in a firm dynamics model with multi-establishment firms. I calibrate my model to the US firm size distribution with respect to both the number of employees and the number of establishments, and use it to study distortions that are correlated with establishment size, or so-called size-dependent distortions to establishments, which are modeled as implicit output taxes. In contrast to previous studies, I find that size-dependent distortions are not more damaging to aggregate productivity and output than size-independent distortions, while the implicit tax revenue approximately summarizes the effects on aggregate output. I also use the model to compare the effects of size-dependent distortions to establishments and to firms, and find that they have different effects on firm size distribution, but have similar effects on aggregate output.
The second chapter studies the effects of product market frictions on firm size distribution and their implications for industrial pollution in China. Using a unique micro-level manufacturing census, I find that larger firms generate and emit less pollutants per unit of production. I also provide evidence suggesting the existence of size-dependent product market frictions that disproportionately affect larger firms. Using a model with firms heterogeneous in productivity and an endogenous choice of pollution treatment technology, I show that these frictions result in lower adoption rate of clean technology, higher pollution and lower aggregate output. I use the model to evaluate policies that eliminate size-dependent frictions, and those that increase environmental regulation. Quantitative results show that eliminating size-dependent frictions increases output by 30%. Meanwhile, the fraction of firms using clean technology increases by 27% and aggregate pollution decreases by 20%. In contrast, a regulatory policy which increases the clean technology adoption rate by the same 27%, has no effect on aggregate output and leads to only 10% reduction in aggregate pollution.
The Philippines relies on a vast biodiversity of fishes as a staple food, but like many countries around the globe, experiences severe “leakages” of contaminants and pollutants in the environment. In order to better understand the relationship between environmental pollutants and public health, this research project measured the concentration of pollutants in a commonly consumed local fish (Siganus fuscescens), and then evaluated the potential health risks of eating this fish based on estimated average consumer weight and consumption levels. Fish sampled from four different sites located in Negros Oriental, Philippines were analyzed for organic contaminants using gas chromatography and mass spectroscopy. Pollutants quantified included polycyclic aromatic hydrocarbons (PAHs), pesticides, phthalates, and polychlorinated biphenyl (PCBs). Across the four study sites, fishes from Manjuyod showed the highest frequency of detection of different pollutants. However, phthalates and PAHs were found in similar concentrations in all four sites, with fishes from Dumaguete showing the highest level of PCBs compared to the other sampled sites. The U.S. Environmental Protection Agency’s guide for fish contaminants pinpoints several health risks associated with the chronic ingestion of these contaminants. Based on estimated average body weights of Filipino adult men, adult women, and children, and various consumption levels, people who eat the fish at or above the national average consumption level may be at increased risk for chronic health outcomes, such as cancer and/or other adverse effects. Specifically, due to the high concentration of PCBs in Dumaguete, selected populations who eat local fish from this site may be at higher risk than the citizens who eat the fish from other sites at similar consumption rates. These results can help to inform local and national policies on water quality, waste disposal, and fish consumption advisory programs.
One of the most pressing questions in economics is “why are some countries richer than others?” One methodology designed to help answer the question is known as “Development Accounting,” a framework that organizes the determinants of income into two categories: differences in inputs and differences in efficiency. The objective of our work is to study to what extent differences in the levels of pollution can help explain income differences across countries. To do this, we adjusted a factor-only model to allow us to enter PM2.5, a measure of pollution that tracks the concentration of fine particulate matter in the air and looked to see if the model’s predictive power improved. We ultimately find that we can improve the model’s success in predicting GDP by .5 - 6%. Thus, pollution is unlikely to be a major force in understanding cross-country income differences, but it can be used with other economic factors to potentially magnify its impact with other additions in the future.
Using the Development Accounting methodology specified in Caselli (2004), we investigate the potential of PM2.5, a measure of pollution, as an explanation of cross-country differences in GDP using available Macroeconomic data from the Penn World Table and the WHO. We find that the addition of PM2.5 makes improvements to the model within the expectations of the literature. This adjustment shows promise for use in cooperation with other, more potent economic factors.
In an effort to provide drinking water treatment options that are simple to operate, two hybrid resins have been developed that can treat multiple pollutants in a single step. A parent weak base anion exchange resin is embedded with nanoparticles made of either iron hydroxide or titanium dioxide (Fe-WBAX and Ti-WBAX, respectively). These provide targeted treatment for both arsenic and hexavalent chromium, common groundwater pollutants of recent regulatory significance. The project goal is to evaluate the environmentally preferable choice between Fe-WBAX and Ti-WBAX resin for simultaneous treatment of arsenic and hexavalent chromium in drinking water. The secondary goal is to identify where in the product life cycle is the most opportunity to reduce the environmental impact of the use of either product.
As a result of the increase of pollution related to industrialization in Vietnam, acid rain has become a prevalent issue for Vietnamese farmers who are forced to rinse their crops – risking damage due to overwatering and poor harvest. Thus, the team was motivated to develop a solution to harmful impacts of acidic rainwater by creating a system with the ability to capture rainwater and determine its level of acidity in order to optimize the crop watering process, and promote productive crops. By conducting preliminary research on rainfall and tropical climate in Vietnam, existing products on the market, and pH sensors for monitoring and device material, the team was able to design a number of devices to collect, store, and measure the pH of rainwater. After developing a number of initial design requirements based on the needs of the farmers, a final prototype was developed using the best aspects of each initial design. Tests were conducted with varying structural and aqueous materials to represent a broad range of environmental conditions. While the scope of the project was ultimately limited to prototyping purposes, the principles explored throughout this thesis project can successfully be applied to a fully-functioning production model available for commercial use on Vietnamese farms. Given more time for development, improvements would be made in the extent of materials tested, and the configuration of electronics and data acquisition, in order to further optimize the process of determining rainwater acidity.
Pollution causes many health problems in the modern world and the desert climates struggle with pollution in unique ways. In the Sonoran Desert, the research was conducted with the purpose of expanding the knowledge of the topic in this area. A literature review was conducted based on air, soil and noise pollution in the region. The Sonoran Desert has high levels of carcinogenic elements along with other pollutants due to the main industries of mining, agriculture and manufacturing. Overall, these findings show people in desert climates deal with high levels of pollutants.
Mining is a key component of both the Brazilian and Chilean economies and accounts for an outsized share of these countries’ exports. Yet, it is a common target for environmental criticism, especially due to its impacts on local populations and ecosystems. Brazil and Chile have adopted markedly different trade strategies over the past three decades, most notably with regards to their involvement in international trade agreements. This paper investigates how these differences in trade policy since 1990 have affected the sustainability of each country’s mining sector by identifying and comparing the channels through which free trade agreements influence the environmental impacts of resource extraction.