The Effects of Environmental Risk on Consumption: an Empirical Analysis on the Mediterranean Countries

Donatella Baiardi, Matteo Manera () and Mario Menegatti

No 172443, Energy: Resources and Markets from Fondazione Eni Enrico Mattei (FEEM)

Abstract: This paper empirically estimates a micro-founded model which studies the macroeconomic impact of environmental and financial risks on consumption choices in the Mediterranean Region. The analysis is carried out using time series aggregate data for fourteen Mediterranean countries over the period 1965-2008. Our results indicate that both risks and their interaction significantly influence consumption dynamics. Our estimates of the indexes of relative risk aversion and relative prudence, as well as the relative preference for the quality of environment suggest marked cross-country heterogeneity.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 25
Date: 2014-04
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https://ageconsearch.umn.edu/record/172443/files/NDL2014-043.pdf (application/pdf)

Related works:
Working Paper: The Effects of Environmental Risk on Consumption: an Empirical Analysis on the Mediterranean Countries (2014)
Working Paper: The Effects of Environmental Risk on Consumption: an Empirical Analysis on the Mediterranean Countries (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemer:172443

DOI: 10.22004/ag.econ.172443

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