Research Interests: Environmental Economics; Non-market Valuation
Job Market Paper
The Economic Impact of Microbeads Ban on Face Cleansers
with John Crespi and Wendong Zhang
Microbeads are contaminants to the environment which receive emerging concerns around the globe. Actions have been taken to ban microbeads across the US. Leveraging the transaction level Nielsen Retail Scanner data of facial cleanser product sales, we study how the introduction and enactment of microbeads ban on the sales of facial cleanser products from 2013 to 2016. Specifically, we apply a difference-in-differences design to examine the sale changes of facial cleanser products before and after the bill's introduction and enactment relative to sales of facial lotion products. Our results suggest that the microbeads bill introduction led to consumer stockpiling of some facial cleanser products. The bill enactment led to a 6.3% increase in sales volume of facial cleanser products relative to facial lotion products, owing partially to consumer stockpiling behavior after being informed. We also find evidence of a 2.8% increase in sales of facial cleanser products after bill enactment relative to sales of facial lotion products. The price changes seem to be the reason for the increased sales of facial cleanser products over this period.
The Economic Impact of Microbeads Ban on Face Cleansers
with John Crespi and Wendong Zhang
Microbeads are contaminants to the environment which receive emerging concerns around the globe. Actions have been taken to ban microbeads across the US. Leveraging the transaction level Nielsen Retail Scanner data of facial cleanser product sales, we study how the introduction and enactment of microbeads ban on the sales of facial cleanser products from 2013 to 2016. Specifically, we apply a difference-in-differences design to examine the sale changes of facial cleanser products before and after the bill's introduction and enactment relative to sales of facial lotion products. Our results suggest that the microbeads bill introduction led to consumer stockpiling of some facial cleanser products. The bill enactment led to a 6.3% increase in sales volume of facial cleanser products relative to facial lotion products, owing partially to consumer stockpiling behavior after being informed. We also find evidence of a 2.8% increase in sales of facial cleanser products after bill enactment relative to sales of facial lotion products. The price changes seem to be the reason for the increased sales of facial cleanser products over this period.
Work in progress
Recreational benefit disparity? Evidence from underrepresented populations in Iowa
with Yongjie Ji and Wendong Zhang
Environmental justice has recently attracted increasing attention among researchers and policymakers. However, most environmental justice research focuses on the disparity in exposure to pollution or environmental hazards, while differences in access to natural amenities across different income or racial groups received less attention. We leverage five rounds of longitudinal household recreation responses to the Iowa Lakes Survey from 2004 to 2019, and examine possible disparity in preference for recreation across households with different socioeconomic statuses. Our results show low-SES (socioeconomic status) households are more responsive to travel costs in their recreational decisions. Our welfare analysis indicates that, on average, both low and high-SES groups are comparably willing to pay for water quality improvements over time. Their MWTP for secchi depth is around $8 per household per year, with the low-SES group offering slightly less. The gap in MWTP between the two groups has been gradually reducing, reaching 7% by 2019. Moreover, we found high-SES households generally benefit more from recreational activities, with this disparity in compensating variation has decreased since its peak in 2004. Furthermore, a scenario analysis suggests that neglecting the declining marginal utility of income would lead to underestimations of recreational benefits. The higher-income groups benefit more from simulated water quality improvement, underscoring the need for further policy considerations.
Recreational benefit disparity? Evidence from underrepresented populations in Iowa
with Yongjie Ji and Wendong Zhang
Environmental justice has recently attracted increasing attention among researchers and policymakers. However, most environmental justice research focuses on the disparity in exposure to pollution or environmental hazards, while differences in access to natural amenities across different income or racial groups received less attention. We leverage five rounds of longitudinal household recreation responses to the Iowa Lakes Survey from 2004 to 2019, and examine possible disparity in preference for recreation across households with different socioeconomic statuses. Our results show low-SES (socioeconomic status) households are more responsive to travel costs in their recreational decisions. Our welfare analysis indicates that, on average, both low and high-SES groups are comparably willing to pay for water quality improvements over time. Their MWTP for secchi depth is around $8 per household per year, with the low-SES group offering slightly less. The gap in MWTP between the two groups has been gradually reducing, reaching 7% by 2019. Moreover, we found high-SES households generally benefit more from recreational activities, with this disparity in compensating variation has decreased since its peak in 2004. Furthermore, a scenario analysis suggests that neglecting the declining marginal utility of income would lead to underestimations of recreational benefits. The higher-income groups benefit more from simulated water quality improvement, underscoring the need for further policy considerations.
Inside the Store: Understanding How Customer Density Shapes Grocery Shopping Behavior in the Pandemic Era
with Donghyuk Kim, Xibo Wan and Wendong Zhang
This paper investigates the impact of customer density on establishment visits during the COVID-19 pandemic, with a specific focus on grocery stores and supermarkets in the seven Midwest states. Utilizing cellphone data from Safegraph, we employ a logit model of store choices to estimate the demand for groceries at these stores and examine how this demand is influenced by variations in customer density. Our findings indicate that customer density plays a significant role in shaping grocery shopping behavior during the pandemic. Our analysis reveals that, prior to the pandemic, consumers are more likely to visit stores with high density, conditional on the store's popularity and average expenditure level of the store. However, once the pandemic hits, consumers prefer to visit stores with lower density. These changes in preference toward customer density appear to be driven by people living in metropolitan and people living in rural areas. Additionally, the state partisan composition also affects preference. We also find that people who visit the grocery store in the morning experience larger changes in preference towards density compared to ones who visit stores at other times.
with Donghyuk Kim, Xibo Wan and Wendong Zhang
This paper investigates the impact of customer density on establishment visits during the COVID-19 pandemic, with a specific focus on grocery stores and supermarkets in the seven Midwest states. Utilizing cellphone data from Safegraph, we employ a logit model of store choices to estimate the demand for groceries at these stores and examine how this demand is influenced by variations in customer density. Our findings indicate that customer density plays a significant role in shaping grocery shopping behavior during the pandemic. Our analysis reveals that, prior to the pandemic, consumers are more likely to visit stores with high density, conditional on the store's popularity and average expenditure level of the store. However, once the pandemic hits, consumers prefer to visit stores with lower density. These changes in preference toward customer density appear to be driven by people living in metropolitan and people living in rural areas. Additionally, the state partisan composition also affects preference. We also find that people who visit the grocery store in the morning experience larger changes in preference towards density compared to ones who visit stores at other times.