Thoughts on Environmental Economics from a Young Scholar

Over the past five years, in my podcast series, “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program,” I’ve had the pleasure of engaging in conversations with outstanding economists, who have carried out important work relevant for environmental, energy, and resource policy, including by serving in important government positions.  That inevitably brings with it the reality that many of the people with whom I’ve spoken have been senior leaders in the profession, with the emphasis on the word “senior” (exhibiting hair that’s grey like mine, if not absent). 

I’m pleased to say that my most recent podcast is a distinct exception, because I converse with someone who is very young (and whom I predict will become a leader in the world of environmental economics), my Harvard colleague, Anna Russo, a Junior Fellow with the Harvard Society of Fellows, who will be an Assistant Professor of Economics and Social Studies at Harvard, beginning in July, 2026.  You can listen to our complete conversation here.

Anna characterizes her research fields as environmental economics, public finance, industrial organization, and market design, and so I ask her how she came to focus on such a diverse set of fields.

“It came about from taking field courses and figuring out the classes of questions that got me excited, which are typically settings in which we think there’s some kind of market that could provide a lot of value to society or to participants, but for some kind of nebulous, probably pointing to some sort of market or policy failure reason, is not functioning well,” she remarks. “That is exciting to me because I want to try to think about how I can fix it.”

Russo’s recent paper, co-authored with Karl Aspelund, who is now completing his PhD in economics at MIT, focuses on the USDA’s Conservation Reserve Program’s auction mechanism for ecosystem services, using satellite-derived land use data to determine the impact of environmental incentive policies.  I ask her what leverage they are able to achieve by combining auction data with satellite observations. 

She responds that “when we’re trying to incentivize someone to do something good, for example, conserve their land, we care deeply whether they would have conserved that land anyways, in which case the finances spent on that are potentially wasted or could have been used elsewhere.  That’s where linking the bids to the satellite data really come in handy because it allows me to learn about both individual participants’ costs and behavior in this auction mechanism because bids reveal a lot about the amount that an individual participant would be willing to accept to participate in the conservation reserve program. The satellite data… measures their behaviors on their land, both inside the program and outside the program.”

Looking forward, Anna Russo explains that she intends to continue studying vexing market design questions.

“Following the stream of the USDA paper, [I’m] thinking about conservation markets more globally and I also am generally very excited by questions related to climate change adaptation. And I think it’s a sad truth, but the truth is that climate change is already really affecting how we live our lives and imposing lots of risks, particularly related to natural disasters, and I’m interested in studying those further,” she remarks. “Most of my research relates to these high-level questions or themes about information economics, imperfect information, and how participants engage in these environments with imperfect or asymmetric information.”

Russo says that when she joins the Harvard faculty, she hopes to influence the next generation of environmental economics scholars by helping them understand how they can have an impact on climate policy and other urgent global challenges.

“What other field offers the combination of a hugely pressing societal problem that is fundamentally linked to economic incentives that we have a decent understanding of how to potentially solve, but much is still left unresolved both from a theoretical and an implementation standpoint?” she asks. “The data that’s available for studying environmental economics questions is expanding dramatically due to satellite data and improvements in remote sensing. And so, the combination just presents an incredibly exciting avenue to ask questions at the intersection of policy and economics.”

For this and much more, please listen to my complete podcast conversation with Anna Russo, the 69th episode over the past five years of the Environmental Insights series, with future episodes scheduled to drop each month.  You can find a transcript of our conversation at the website of the Harvard Environmental Economics Program.  Previous episodes have featured conversations with:

  • Gina McCarthy, former Administrator of the U.S. Environmental Protection Agency
  • Nick Stern of the London School of Economics discussing his career, British politics, and efforts to combat climate change
  • Andrei Marcu, founder and executive director of the European Roundtable on Climate Change and Sustainable Transition
  • Paul Watkinson, Chair of the Subsidiary Body for Scientific and Technological Advice (SBSTA) within the United Nations Framework Convention on Climate Change
  • Jos Delbekeprofessor at the European University Institute in Florence and at the KU Leuven in Belgium, and formerly Director-General of the European Commission’s DG Climate Action
  • David Keith, professor at Harvard and a leading authority on geoengineering
  • Joe Aldy, professor of the practice of public policy at Harvard Kennedy School, with considerable experience working on climate change policy issues in the U.S. government
  • Scott Barrett,  professor of natural resource economics at Columbia University, and an authority on infectious disease policy
  • Rebecca Henderson, John and Natty McArthur University Professor at Harvard University, and founding co-director of the Business and Environment Initiative at Harvard Business School.
  • Sue Biniaz, who was the lead climate lawyer and a lead climate negotiator for the United States from 1989 until early 2017.
  • Richard Schmalensee, the Howard W. Johnson Professor of Management, and Professor of Economics Emeritus at the Massachusetts Institute of Technology.
  • Kelley Kizier, Associate Vice President for International Climate at the Environmental Defense Fund.
  • David Hone, Chief Climate Change Adviser, Shell International.
  • Vicky Bailey, 30 years of experience in corporate and government positions in the energy sector. 
  • David Victor, professor of international relations at the University of California, San Diego.
  • Lisa Friedman, reporter on the climate desk at the The New York Times.
  • Coral Davenport, who covers energy and environmental policy for The New York Times from Washington.
  • Spencer Dale, BP Group Chief Economist.
  • Richard Revesz, professor at the NYU School of Law.
  • Daniel Esty, Hillhouse Professor of Environment and Law at Yale University. 
  • William Hogan, Raymond Plank Research Professor of Global Energy Policy at Harvard.
  • Jody Freeman, Archibald Cox Professor of Law at Harvard Law School.
  • John Graham, Dean Emeritus, Paul O’Neill School of Public and Environmental Affairs, Indiana University.
  • Gernot Wagner, Clinical Associate Professor at New York University.
  • John Holdren, Research Professor, Harvard Kennedy School.
  • Larry Goulder, Shuzo Nishihara Professor of Environmental and Resource Economics, Stanford University.
  • Suzi Kerr, Chief Economist, Environmental Defense Fund.
  • Sheila Olmstead, Professor of Public Affairs, LBJ School of Public Affairs, University of Texas, Austin.
  • Robert Pindyck, Bank of Tokyo-Mitsubishi Professor of Economics and Finance, MIT Sloan School of Management.
  • Gilbert Metcalf, Professor of Economics, Tufts University.
  • Navroz Dubash, Professor, Centre for Policy Research, New Delhi.
  • Paul Joskow, Elizabeth and James Killian Professor of Economics emeritus, MIT.
  • Maureen Cropper, Distinguished University Professor, University of Maryland.
  • Orley Ashenfelter, the Joseph Douglas Green 1895 Professor of Economics, Princeton University.
  • Jonathan Wiener, the William and Thomas Perkins Professor of Law, Duke Law School.
  • Lori Bennear, the Juli Plant Grainger Associate Professor of Energy Economics and Policy, Nicholas School of the Environment, Duke University.
  • Daniel Yergin, founder of Cambridge Energy Research Associates, and now Vice Chair of S&P Global.
  • Jeffrey Holmstead, who leads the Environmental Strategies Group at Bracewell in Washington, DC.
  • Daniel Jacob, Vasco McCoy Family Professor of Atmospheric Chemistry & Environmental Engineering at Harvard.
  • Michael Greenstone, Milton Friedman Distinguished Service Professor of Economics, University of Chicago.
  • Billy Pizer, Vice President for Research & Policy Engagement, Resources for the Future. 
  • Daniel Bodansky, Regents’ Professor, Sandra Day O’Connor College of Law, Arizona State University.
  • Catherine Wolfram, Cora Jane Flood Professor of Business Administration, Haas School of Business, University of California, Berkeley, currently on leave at the Harvard Kennedy School.
  • James Stock, Harold Hitchings Burbank Professor of Political Economy, Harvard University.
  • Mary Nichols, long-time leader in California, U.S., and international climate change policy.
  • Geoffrey Heal, Donald Waite III Professor of Social Enterprise, Columbia Business School.
  • Kathleen Segerson, Board of Trustees Distinguished Professor of Economics, University of Connecticut.
  • Meredith Fowlie, Professor of Agricultural and Resource Economics, U.C. Berkeley. 
  • Karen Palmer, Senior Fellow, Resources for the Future.
  • Severin Borenstein, Professor of the Graduate School, Haas School of Business, University of California, Berkeley.
  • Michael Toffel, Senator John Heinz Professor of Environmental Management and Professor of Business Administration, Harvard Business School.
  • Emma Rothschild, Jeremy and Jane Knowles Professor of History, Harvard University.
  • Nathaniel Keohane, President, C2ES.
  • Amy Harder, Executive Editor, Cypher News.
  • Richard Zeckhauser, Frank Ramsey Professor of Political Economy, Harvard Kennedy School.
  • Kimberly (Kim) Clausing, School of Law, University of California at Los Angeles
  • Hunt Allcott, Professor of Global Environmental Policy, Stanford Doerr School of Sustainability.
  • Meghan O’Sullivan, Jeane Kirkpatrick Professor of the Practice of International Affairs at Harvard Kennedy School.
  • Robert Lawrence, Albert Williams Professor of International Trade and Investment, Harvard Kennedy School.
  • Charles Taylor, Assistant Professor of Public Policy, Harvard Kennedy School.
  • Wolfram Schlenker, Ray Goldberg Professor of the Global Food System, Harvard Kennedy School.
  • Karen Fisher-Vanden, Professor of Environmental & Resource Economics, Pennsylvania State University
  • Max Bearak, climate and energy reporter, New York Times
  • Vijay Vaitheeswaran, global energy and climate innovation editor, The Economist
  • Joseph Aldy, Teresa & John Heinz Professor of the Practice of Environmental Policy, Harvard Kennedy School
  • Nicholas Burns, Roy and Barbara Goodman Family Professor of the Practice of Diplomacy and International Relations, Harvard Kennedy School
  • Elaine Buckberg, Senior Fellow, Salata Institute for Climate and Sustainability, Harvard University

“Environmental Insights” is hosted on SoundCloud, and is also available on iTunesPocket CastsSpotify, and Stitcher.

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A Rising Star Shares His Thoughts on Land Use & Climate Policy

In my podcast series, “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program,” I’ve had the pleasure of engaging in conversations with a significant number of outstanding economists, who have carried out important work relevant for environmental, energy, and resource policy, including by serving in important government positions.  That inevitably brings with it the reality that many of the people I’ve spoken with have been senior leaders in the profession, with the emphasis on the word “senior.”  I’m very pleased to say that in my most recent podcast, I’ve broken that mold with someone who is a young, rising star in the world of environmental economics, particularly in the realm of analyzing the causes and consequences of changes in land use.  I’m referring to my colleague, Charles Taylor, a relatively new Assistant Professor of Public Policy at the Harvard Kennedy School.  You can listen to our complete conversation here.

Taylor’s research often uses satellite data to address policy questions associated with land use, and at the beginning of our conversation, he explains that he first got interested in land use issues during his time spent as a consultant at McKinsey & Company, following his undergraduate years at the University of Virginia.

“I got to go work abroad in Qatar, Brazil, and Europe, and get a lot of exposure to these big climate change and land-based initiatives that governments and the private sector were doing. And I got really excited by that, and also very quickly learned I didn’t want to be a consultant,” he says. “I felt that I wanted to get more either skin in the game at that time or more in depth into the issues, and that prompted my journey into more of the entrepreneurial world.”

Charles soon connected with David Tepper, a former banker who shared his passion for land use issues, and together they co-founded Earth Partners, a private company that provides land restoration and bio-energy services intended to help rebuild soils, habitats, and other critical ecosystems.

“How do we restore ecosystems to meet all the challenges we’re facing, from water to food security to pollution to climate change, and how do we do that at scale?  [The idea was to] start a company [dedicated to] next generation land management,” he remarks. “A lot of the challenges we’re facing as a society directly or relate to land management, and looking around, I didn’t really see any companies or organizations taking that head on.”

Charles notes that he decided to pivot from his entrepreneurial venture into academia once he realized the limits of what can be accomplished with capital alone.

“We had great small-scale investors who wanted to do good things, but you still had to get their money back in a few years and that limits the scope of what you can do if you really want transformational change,” he explains. “So, that made me say, okay, what if I went back to the research side and found some way I could contribute to these problems on the other side while keeping one foot or at least half my brain in this world of how this … on the ground world works?”

Much of Charles Taylor’s current academic research relates directly to environmental economics associated with land use decisions, and is intended to inform lawmakers and other stakeholders of the benefits of specific policy choices.

“Humans have touched nearly every acre of non-barren land on earth. We’ve transformed it. We farm it for our food. We take its water. We shape its rivers for reservoirs, for irrigation. We use the wood for forests. We build on it for housing… We get our energy out of it, increasingly for renewable energy. We need a lot of it for siting wind and solar. And then climate change interacts with all this,” he says. “So, there’s all these questions I am really curious about [and am interested in] quantifying and using some of the empirical tools we have [to do that].”

Taylor references a recent paper he co-authored with Caltech Assistant Professor Hannah Druckenmiller that examines land use regulation under the Clean Water Act.

“You might see this spurious relationship between where wetlands are lost and more flood damages, for example, to think of one of the benefits of wetlands. And that paper was just trying to find an empirical way to uncover that and give an estimate of the value of wetlands that then could be used by the EPA in measuring the cost and benefits of these types of regulations, which are super important and cover almost all land use decisions and where you’re going to build in the U.S.,” he explains.

For this and much more, please listen to my podcast conversation with Charles Taylor, the 62nd episode over the past five years of the Environmental Insights series, with future episodes scheduled to drop each month.  You can find a transcript of our conversation at the website of the Harvard Environmental Economics Program.  Previous episodes have featured conversations with:

“Environmental Insights” is hosted on SoundCloud, and is also available on iTunesPocket CastsSpotify, and Stitcher.

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An Eminent Economist Talks About Climate Change

In my podcast series, “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program,” I’ve had the pleasure of engaging in conversations over the past four years with a significant number of truly outstanding economists who have carried out important work in the realm of environmental, energy, and resource economics, and have been real leaders in the profession.  In my most recent podcast, we topped that, because I was joined by someone who has made important contributions not just in the realm of environmental and resource economics, but has been a global leader in the discipline of economics broadly, across numerous sub-fields, and has ventured and published well beyond economics in seemingly disparate realms, ranging from contract bridge to Italian Rennaisance painting.  All in all, he is the author or editor of 14 books and more than 300 scholarly articles. 

I am, of course, referring to my Harvard colleague – and good friend – Richard Zeckhauser, the Frank Ramsey Professor of Political Economy at the Harvard Kennedy School, and Distinguished Fellow of the American Economic Association, the Econometric Society, the American Academy of Arts and Sciences, the Association of Public Policy and Management, and the Society for Benefit-Cost Analysis.  Beyond that, I want to acknowledge that he is celebrated at Harvard and beyond as a marvelous classroom teacher, and a valued mentor to generations of students and faculty colleagues.

Near the beginning of our conversation, Richard laments a phenomenon he terms “the pumped equilibrium,” in which people hold exaggerated expectations about confronting the challenge of climate change if we do not drastically increase our efforts.  

“People started at least three decades ago saying, ‘Climate change is a terrible problem, but we can control it by cutting back on our greenhouse gases, and this is the last decade that we can do that. If we don’t do it this decade, we’re dead.’ And then, the next decade they said … the same thing. And this decade they’re saying … the same thing. And they keep telling us that we’re going to be able to [limit the global temperature increase to] two degrees centigrade above pre-industrial levels, or even more recently, 1.5 degrees centigrade above pre-industrial levels. I think that’s unrealistic.”

Richard maintains that instead a realistic assessment of the current state of climate change requires new approaches to make an impact.

“The United States has done a so-so job of cutting our emissions by about 10 percent over a number of years, but at the same time, China has increased its emissions by 13 percent, and you can expect that countries like India will be growing much faster in its emissions [levels],” he remarks. “So, I think that we should take a sober look at these problems and say, ‘What else can we do?’”

Climate adaptation, Zeckhauser states, holds the potential for greatly reducing the impacts of climate change. He cites one example in which scientists have proposed building a 100-foot-tall berm around a fjord in Greenland where warm water currently flows in and melts the ice sheets.

“This is very speculative. Will this work? I sure hope so. It’s within our realm of technological capability, but I think we should be looking for many solutions like this that could enable us to deal with … what I consider to be [the] catastrophic track that we’re on,” he says. Other potentially effective adaptation measures, he states, include increasing the alkalinity of the oceans and enforcing smarter logging policies to protect mature trees.

When I question Richard about the distributional implications of climate change, he remarks, “I think dealing with climate change and reducing its impact will automatically have very beneficial distributional consequences.  The places that are currently suffering the most from climate change are the hottest places in the world, which are both suffering under [rising] temperatures and having their weather patterns shifted. So, you would be doing God’s work in restoring or preserving the planet, and you’d be doing work that’s to the benefit of the most affected people in the world.”

He also refers in this context to the challenges posed by massive migrations of people who want to escape rising temperatures in the south by heading north.

“Those [migration patterns] are very uncomfortable for the people in both places – the people who have to do the migration, which is frequently very dangerous and expensive, the people who are still trapped in the old place because they don’t have enough resources, and the people whose areas are being affected by the new people who are coming.”

Zeckhauser says that ultimately, it is up to policymakers around the world to confront the climate change challenge.

“This is a political problem on a global scale. So, even if you didn’t want to worry about it, as a political actor, as the president of the United States has to be and our climate envoy has to be, and the UN has to be, you have to pay serious attention to it.”

My conversation with Richard Zeckhauser is the first episode of 2024 and the 57th episode over the past four years of the Environmental Insights series, with future episodes scheduled to drop each month.  You can find a transcript of our conversation at the website of the Harvard Environmental Economics Program.  Previous episodes have featured conversations with:

“Environmental Insights” is hosted on SoundCloud, and is also available on iTunesPocket CastsSpotify, and Stitcher.

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