Government spending has significant environmental implications. This paper analyzes the effect of the allocation of government spending between public goods broadly defined and private goods or non-social subsidies on air and water pollution. The theoretical model predicts that a reallocation of...

During economic crises, governments often increase fiscal spending to stimulate the economy. While the fiscal spending surge may be temporary, spending composition is often altered in favor of expenditures on social programs and other public goods which may persist over time. We model and...

This paper combines elasticities from microstudies with estimates from a cross-country analysis to identify structural relationships explaining deforestation in Brazil, Indonesia,Malaysia, and the Philippines. Economy-wide factors such as trade openness and economic growth explain an important...