Research

Working Papers:

  • "Environmental Policies and Informality: The Case of Mexico." with Diana MacDonald (Draft coming soon!)

Abstract:

This paper analyzes the effect on the Mexican labor market of deepening the existing environmental regulations by increasing their carbon tax to truly achieve the nationally determined contributions (NDCs) emissions reductions, considering that high levels of informality characterize its labor market. We do that by developing a multi-sector general equilibrium search model that considers informal labor, both the informal sector and the informal contracts in the formal sector. Understanding how environmental regulation and informality interact seems crucial. First, because of the size of Mexican informality, second, because of the country’s carbon intensity, and third, because of the existence of additional mechanisms that differ from countries without this labor market feature. Lastly, we analyze the alternative usage of government revenue from the carbon tax and the different impacts on the economy. In particular, we find that rebating the revenue to decrease the formal tax burden can incentivize formal jobs.


  • "Carbon Taxation, Green Jobs, and Sectoral Human Capital" (New version coming soon!) (older version)

Abstract:

This paper develops a two-sector search model with sectoral human capital accumulation to explore the effects on the labor market of implementing a per unit of energy use carbon tax in the US. In particular, I examine the costly reallocation of workers between sectors, the welfare effects of involuntary unemployment, and the heterogeneous effects of this policy on different types of workers. I separate the economy into a high-intensive sector and a low-intensive sector. I discipline the model parameters using 2014 U.S. data. I find that a carbon tax increases total unemployment by 0.3 percentage points, dirty employment rate decreases by 1.1 percentage points, and clean employment rate increases by 0.5 percentage points. Also, I find that firms in the dirty sector adjust by decreasing the demand for high-skilled workers. Increasing the number of vacancies in the low-skilled market, where the production demands less energy and workers perceive lower wages.

Academic Presentations: Environmental Defense Fund Seminar (EDF) (2022), CAF - development bank of Latin America Seminar (2022), EAERE Annual Conference (2020), ITAM Alumni Conference (2020), New Advances in Sustainable Resource Use and Economic Dynamics (SURED) (2020), Banco de México Workshop (2019)

Research in Progress:

  • "Job Quality and the Distributional Effects of Environmental Policy." with Marc Hafstead and Roberton C. Williams III (link, model documentation)

Academic Presentations: AERE 2020 Virtual Conference*, EPA’s NCEE CGE Modeling Workshop (2020), NBER Distributional Consequences of New Energy Policies Preconference (2022) * +, NBER Distributional Consequences of New Energy Policies Conference (2023)+


  • "Efficiency and Equity Impacts of Carbon Pricing Policies with Cost-Effective Direct Air Capture: A General Equilibrium Analysis." with Marc Hafstead

Academic Presentations: IAERE Annual Conference (2021)


  • "Airport Expansion, Air Pollution, and Death Count in Mexico City." with Sayanhika Basu

Academic Presentations: AERE @ the Southern Economic Association (SEA) Annual Conference (2020)


Policy Research:

  • "NYSERDA-RFF Carbon Pricing Project." with Dallas Burtraw, Marc Hafstead, Karen Palmer, and Kathryne Cleary

  • "EDF-RFF Washington State Carbon Pricing Project." with Marc Hafstead





Older Research Progress:

  • "Labor Market Effects of Increasing Retirement Age." with Damian Pierri




* Presented by coauthors, +Schedule