Living in larger cities is greener
- Larger cities are more energy efficient and electricity consumption and waste production are lower per person than smaller cities. London uses only 60% of the energy that smaller cities use for the same amount of production.
- Larger cities are also more productive than smaller cities
- Policies in favour of urbanization therefore have the potential to provide both economic and environmental benefits.
Urbanization is taking place to an increasing extent in both industrialized and developing countries. The ecological consequences are far-reaching. Large cities gather a large number of people in a small area and use a lot of energy, have a lot of traffic and pollution, and produce a lot of waste. Living in less urbanized areas might therefore be considered as the ultimate environmentally friendly life choice.
But this study, looking at a number of British cities, shows that larger cities are more productive and have lower electricity consumption and waste production per person than smaller cities. Large cities are thus much more energy efficient than smaller cities, as the picture below illustrates.
The study also shows that a tax policy that makes it more favourable to live in big cities could lead to both environmental and economic gains. The latter is important as discussions about sustainability often end up in a trade-off between increasing output and sustaining the environment. This study shows that, in the case of urbanization, both are possible.
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Less unequal when social networks lead to jobs
The question of how contacts affect job opportunities has long been a subject of debate. A new study by Marcus Eliason, Lena Hensvik, Francis Kramarz, and Oskar Nordström Skans sheds new light on the issue. The results challenge the perception that social contacts reinforce inequality in the labor market by primarily benefiting high-income individuals who have contacts in other high-paying firms. However, the study finds no evidence to support this notion. Instead, it reveals that contacts are more important for low-wage firms, which hire people from various income levels. Therefore, there are indications that job placements through contacts are actually more equal than traditional, more formal search methods, as such recruitments involve greater movement between income levels.
What do companies do when workers go on extended parental leave?
A lot of research investigates how parental leave affects parents' careers, women's and children's health, and how it is divided between the parents. However, less is known about how parental leave programs affect companies, which is an important question since increased parental leave can make it more expensive to hire women and affect companies' profits and competitiveness negatively. In a new study, researchers Arizo Karimi, Rita Ginja, and Pengpeng Xiao investigate how companies reacted after two Swedish parental leave reforms that extended the duration of paid leave.
Employers value social skills more than brains
The paper The Rising return to Noncognitive skills is published in American
Economic Journal: Applied Economics 2022
Authors: Per-Anders Edin, Peter Fredriksson, Martin Nybom and Björn Öckert
Stronger neighbourhood ties can reduce crime
The article Bolstering community ties as a mean of reducing crime
is published in the Journal of Economic Behavior and Organization
Authors: Magdalena Domínguez and Daniel Montolio
Emigration sparked innovation
The article Mass Migration and Technological Change is soon to be published in The Journal of the European Economic Association
Authors: David Andersson, Mounir Karadja and Erik Prawitz
What role does news media play in the economy?
The paper Sectoral Media Focus and Aggregate Fluctuations is
published in The American Economic Review
Authors: Ryan Chahrour, Kristoffer Nimark and Stefan Pitschner
Living in larger cities is greener
Global earnings inequality down, within-country inequality increasing
This article is published in The Economic Journal
Authors: Olle Hammar and Daniel Waldenström
Student achievement rises when grades matter more for admission