How Do Consumers Respond to Fuel Standard Regulation: Evidence from Gas Stations at City Boundaries (with Y. Wang and L. Zhang)
Abstract: This paper estimates consumers’ response to fuel standard regulation and willingness to pay for lower-emission gasoline. We exploit the unique market structural of China and policy-induced emission standard changes at city borders where consumers can freely choose from higher or lower- emission gasoline. Using high-frequency gas station-level data, our identification strategy compares sales volume of gas stations contiguous to each side of the border before and after one side experiences exogenous fuel standard reforms. We find consumers respond positively to fuel standard improvement and substitute higher-emission gasoline with lower-emission one. The enforcement of higher fuel standards increases relative sales at gas stations on the treated side of the boundary by 14%. This estimation corresponds to consumers’ WTP for higher emission standards as about 0.204 US$ per gallon (0.345 CNY per liter), which is amounted to 4.7% of the total gasoline price. Mechanism analysis indicates that consumers care about environmental value of gasoline as the result of green preferences.
New Area- and Population-based Geographic Crosswalks for U.S. Counties and Congressional Districts, 1790-2020 (with A. Ferrara and P. Testa)
Abstract: A common problem in historical research involves harmonizing geographic units across time or different levels of aggregation. One approach is to use “crosswalks” that associate factors located within one geographic unit to different “reference” units based on relative areas. We develop an alternative approach based on relative population, accounting for heterogeneities in urbanization within counties. We construct population-based crosswalks for 1790 through 2020, which map county-level data across U.S. Censuses as well as from counties to congressional districts. Using official Census data for congressional districts, we show that population-based weights outperform area-based ones in terms of similarity to official data.
(Crosswalks, teaching material, and replication files can be downloaded here.)
How Do Consumers Respond to Fuel Standard Regulation: Evidence from Gas Stations at City Boundaries (with B. Ahumada, Y. Chen, N. Gupta, K. Hyde, M. Lepper, W. Matthews, N. Silveus, L. Vesterlund, T. Weidman, A. Wilson, and K. Winichakul)
Abstract: Excuse-seeking behavior that facilitates replacing altruistic choices with self-interested ones has been documented in several domains. In a laboratory study, we replicate three leading papers on this topic: Dana et al. (2007), and the use of information avoidance; Exley (2015), and the use of differential risk preferences; and Di Tella et al. (2015), and the use of motivated beliefs. The replications were conducted as part of a graduate course, attempting to embed one answer to the growing call for experimental replications within the pedagogic process. We fully replicate the simpler Dana et al. paper, and broadly replicate the core findings for the other two projects, though with reduced effect sizes and a failure to replicate on some secondary measures. Finally, we attempt to connect behaviors to facilitate the understanding of how each fit within the broader literature. However, we find no connections across domains.