TY - RPRT A1 - Müller, Kai-Uwe A1 - Wrohlich, Katharina T1 - Does subsidized care for toddlers increase maternal labor supply? BT - Evidence from a large-scale expansion of early childcare T2 - CEPA Discussion Papers N2 - Expanding public or publicly subsidized childcare has been a top social policy priority in many industrialized countries. It is supposed to increase fertility, promote children’s development and enhance mothers’ labor market attachment. In this paper, we analyze the causal effect of one of the largest expansions of subsidized childcare for children up to three years among industrialized countries on the employment of mothers in Germany. Identification is based on spatial and temporal variation in the expansion of publicly subsidized childcare triggered by two comprehensive childcare policy reforms. The empirical analysis is based on the German Microcensus that is matched to county level data on childcare availability. Based on our preferred specification which includes time and county fixed effects we find that an increase in childcare slots by one percentage point increases mothers’ labor market participation rate by 0.2 percentage points. The overall increase in employment is explained by the rise in part-time employment with relatively long hours (20-35 hours per week). We do not find a change in full-time employment or lower part-time employment that is causally related to the childcare expansion. The effect is almost entirely driven by mothers with medium-level qualifications. Mothers with low education levels do not profit from this reform calling for a stronger policy focus on particularly disadvantaged groups in coming years. T3 - CEPA Discussion Papers - 9 KW - childcare provision KW - mother’s labor supply KW - generalized difference-in-difference Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-427727 SN - 2628-653X IS - 9 ER - TY - RPRT A1 - Block, Jörn A1 - Kritikos, Alexander A1 - Priem, Maximilian A1 - Stiel, Caroline T1 - Emergency-Aid for Self-employed in the Covid-19 Pandemic BT - A Flash in the Pan? T2 - CEPA Discussion Papers N2 - The self-employed faced strong income losses during the Covid-19 pandemic. Many governments introduced programs to financially support the self-employed during the pandemic, including Germany. The German Ministry for Economic Affairs announced a €50bn emergency-aid program in March 2020, offering one-off lump-sum payments of up to €15,000 to those facing substantial revenue declines. By reassuring the self- employed that the government ‘would not let them down’ during the crisis, the program had also the important aim of motivating the self-employed to get through the crisis. We investigate whether the program affected the confidence of the self-employed to survive the crisis using real-time online-survey data comprising more than 20,000 observations. We employ propensity score matching, making use of a rich set of variables that influence the subjective survival probability as main outcome measure. We observe that this program had significant effects, with the subjective survival probability of the self- employed being moderately increased. We reveal important effect heterogeneities with respect to education, industries, and speed of payment. Notably, positive effects only occur among those self-employed whose application was processed quickly. This suggests stress-induced waiting costs due to the uncertainty associated with the administrative processing and the overall pandemic situation. Our findings have policy implications for the design of support programs, while also contributing to the literature on the instruments and effects of entrepreneurship policy interventions in crisis situations. T3 - CEPA Discussion Papers - 55 KW - self-employment KW - emergency-aid KW - treatment effects KW - Covid-19 KW - entrepreneurship policy KW - subjective survival probability Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-562688 SN - 2628-653X IS - 55 CY - Potsdam ER - TY - RPRT A1 - Marcus, Jan A1 - Siedler, Thomas A1 - Ziebarth, Nicolas R. T1 - The Long-Run Effects of Sports Club Vouchers for Primary School Children T2 - CEPA Discussion Papers N2 - Starting in 2009, the German state of Saxony distributed sports club membership vouchers among all 33,000 third graders in the state. The policy’s objective was to encourage them to develop a long-term habit of exercising. In 2018, we carried out a large register-based survey among several cohorts in Saxony and two neighboring states. Our difference-in-differences estimations show that, even after a decade, awareness of the voucher program was significantly higher in the treatment group. We also find that youth received and redeemed the vouchers. However, we do not find significant short- or long-term effects on sports club membership, physical activity, overweightness, or motor skills. T3 - CEPA Discussion Papers - 34 KW - physical activity KW - voucher KW - primary school KW - obesity KW - habit formation KW - objective health measures KW - school health examinations KW - windfall gains KW - crowding out KW - taxpayer subsidies Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-508978 SN - 2628-653X IS - 34 ER - TY - RPRT A1 - Ludolph, Lars A1 - Šedová, Barbora T1 - Global food prices, local weather and migration in Sub-Saharan Africa T2 - CEPA Discussion Papers N2 - In this paper, we study the effect of exogenous global crop price changes on migration from agricultural and non-agricultural households in Sub-Saharan Africa. We show that, similar to the effect of positive local weather shocks, the effect of a locally-relevant global crop price increase on household out-migration depends on the initial household wealth. Higher international producer prices relax the budget constraint of poor agricultural households and facilitate migration. The order of magnitude of a standardized price effect is approx. one third of the standardized effect of a local weather shock. Unlike positive weather shocks, which mostly facilitate internal rural-urban migration, positive income shocks through rising producer prices only increase migration to neighboring African countries, likely due to the simultaneous decrease in real income in nearby urban areas. Finally, we show that while higher producer prices induce conflict, conflict does not play a role for the household decision to send a member as a labor migrant. T3 - CEPA Discussion Papers - 26 KW - labour migration KW - food prices KW - climate KW - Africa Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-494946 SN - 2628-653X IS - 26 ER - TY - RPRT A1 - Graeber, Daniel A1 - Kritikos, Alexander A1 - Seebauer, Johannes T1 - COVID-19: a crisis of the female self-employed T2 - CEPA Discussion Papers N2 - We investigate how the economic consequences of the pandemic, and of the government-mandated measures to contain its spread, affect the self-employed – particularly women – in Germany. For our analysis, we use representative, real-time survey data in which respondents were asked about their situation during the COVID-19 pandemic. Our findings indicate that among the self-employed, who generally face a higher likelihood of income losses due to COVID-19 than employees, women are 35% more likely to experience income losses than their male counterparts. Conversely, we do not find a comparable gender gap among employees. Our results further suggest that the gender gap among the self-employed is largely explained by the fact that women disproportionately work in industries that are more severely affected by the COVID-19 pandemic. Our analysis of potential mechanisms reveals that women are significantly more likely to be impacted by government-imposed restrictions, i.e. the regulation of opening hours. We conclude that future policy measures intending to mitigate the consequences of such shocks should account for this considerable variation in economic hardship. T3 - CEPA Discussion Papers - 27 KW - self-employed KW - COVID-19 KW - income KW - gender KW - representative real-time survey data KW - decomposition methods Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-498108 SN - 2628-653X IS - 27 ER - TY - RPRT A1 - Hänsel, Martin C. A1 - Franks, Max A1 - Kalkuhl, Matthias A1 - Edenhofer, Ottmar T1 - Optimal carbon taxation and horizontal equity BT - A welfare-theoretic approach with application to German household data T2 - CEPA Discussion Papers N2 - We develop a model of optimal carbon taxation and redistribution taking into account horizontal equity concerns by considering heterogeneous energy efficiencies. By deriving first- and second-best rules for policy instruments including carbon taxes, transfers and energy subsidies, we then investigate analytically how horizontal equity is considered in the social welfare maximizing tax structure. We calibrate the model to German household data and a 30 percent emission reduction goal. Our results show that energy-intensive households should receive more redistributive resources than energy-efficient households if and only if social inequality aversion is sufficiently high. We further find that redistribution of carbon tax revenue via household-specific transfers is the first-best policy. Equal per-capita transfers do not suffer from informational problems, but increase mitigation costs by around 15 percent compared to the first- best for unity inequality aversion. Adding renewable energy subsidies or non-linear energy subsidies, reduces mitigation costs further without relying on observability of households’ energy efficiency. T3 - CEPA Discussion Papers - 28 KW - carbon price KW - horizontal equity KW - redistribution KW - renewable energy subsidies KW - climate policy KW - just transition Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-498128 SN - 2628-653X IS - 28 ER - TY - RPRT A1 - Graeber, Daniel A1 - Schikora, Felicitas T1 - Hate is too great a burden to bear BT - Hate crimes and the mental health of refugees T2 - CEPA Discussion Papers N2 - Against a background of increasing violence against non-natives, we estimate the effect of hate crime on refugees’ mental health in Germany. For this purpose, we combine two datasets: administrative records on xenophobic crime against refugee shelters by the Federal Criminal Office and the IAB-BAMF-SOEP Survey of Refugees. We apply a regression discontinuity in time design to estimate the effect of interest. Our results indicate that hate crime has a substantial negative effect on several mental health indicators, including the Mental Component Summary score and the Patient Health Questionnaire-4 score. The effects are stronger for refugees with closer geographic proximity to the focal hate crime and refugees with low country-specific human capital. While the estimated effect is only transitory, we argue that negative mental health shocks during the critical period after arrival have important long-term consequences. Keywords: Mental health, hate crime, migration, refugees, human capital. T3 - CEPA Discussion Papers - 31 KW - mental health KW - hate crime KW - migration KW - refugees KW - human capital Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-507972 SN - 2628-653X IS - 31 ER - TY - RPRT A1 - Bachelet, Marion A1 - Kalkuhl, Matthias A1 - Koch, Nicolas T1 - What if working from home will stick? BT - Distributional and climate impacts for Germany T2 - CEPA Discussion Papers N2 - The COVID-19 pandemic created the largest experiment in working from home. We study how persistent telework may change energy and transport consumption and costs in Germany to assess the distributional and environmental implications when working from home will stick. Based on data from the German Microcensus and available classifications of working-from-home feasibility for different occupations, we calculate the change in energy consumption and travel to work when 15% of employees work full time from home. Our findings suggest that telework translates into an annual increase in heating energy expenditure of 110 euros per worker and a decrease in transport expenditure of 840 euros per worker. All income groups would gain from telework but high-income workers gain twice as much as low-income workers. The value of time saving is between 1.3 and 6 times greater than the savings from reduced travel costs and almost 9 times higher for high-income workers than low-income workers. The direct effects on CO₂ emissions due to reduced car commuting amount to 4.5 millions tons of CO₂, representing around 3 percent of carbon emissions in the transport sector. T3 - CEPA Discussion Papers - 41 KW - commuting KW - home office KW - COVID-19 KW - energy expenditure KW - carbon emissions Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-532384 SN - 2628-653X IS - 41 ER - TY - RPRT A1 - Kritikos, Alexander A1 - Schiersch, Alexander A1 - Stiel, Caroline T1 - The productivity puzzle in business services T2 - CEPA Discussion Papers N2 - In Germany, the productivity of professional services, a sector dominated by micro and small firms, declined by 40 percent between 1995 and 2014. This productivity decline also holds true for professional services in other European countries. Using a German firm-level dataset of 700,000 observations between 2003 and 2017, we analyze this largely uncovered phenomenon among professional services, the 4th largest sector in the EU15 business economy, which provide important intermediate services for the rest of the economy. We show that changes in the value chain explain about half of the decline and the increase in part-time employment is a further minor part of the decline. In contrast to expectations, the entry of micro and small firms, despite their lower productivity levels, is not responsible for the decline. We also cannot confirm the conjecture that weakening competition allows unproductive firms to remain in the market. T3 - CEPA Discussion Papers - 37 KW - business services KW - labor productivity KW - productivity slowdown Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-514536 SN - 2628-653X IS - 37 ER - TY - RPRT A1 - Caliendo, Marco A1 - Künn, Steffen A1 - Mahlstedt, Robert T1 - The Intended and Unintended Effects of Promoting Labor Market Mobility T2 - CEPA Discussion Papers N2 - Subsidizing the geographical mobility of unemployed workers may improve welfare by relaxing their financial constraints and allowing them to find jobs in more prosperous regions. We exploit regional variation in the promotion of mobility programs along administrative borders of German employment agency districts to investigate the causal effect of offering such financial incentives on the job search behavior and labor market integration of unemployed workers. We show that promoting mobility – as intended – causes job seekers to increase their search radius, apply for and accept distant jobs. At the same time, local job search is reduced with adverse consequences for reemployment and earnings. These unintended negative effects are provoked by spatial search frictions. Overall, the unconditional provision of mobility programs harms the welfare of unemployed job seekers. T3 - CEPA Discussion Papers - 42 KW - Job Search KW - Active Labor Market Policy KW - Labor Market Mobility KW - Unintended Consequence KW - Search Frictions Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-535229 SN - 2628-653X ER - TY - RPRT A1 - Eydam, Ulrich A1 - Diluiso, Francesca T1 - How to Redistribute the Revenues from Climate Policy? BT - A Dynamic Perspective with Financially Constrained Households T2 - CEPA Discussion Papers N2 - In light of climate change mitigation efforts, revenues from climate policies are growing, with no consensus yet on how they should be used. Potential efficiency gains from reducing distortionary taxes and the distributional implications of different revenue recycling schemes are currently debated. To account for households heterogeneity and dynamic trade-offs, we study the macroeconomic and welfare performance of different revenue recycling schemes using an Environmental Two-Agent New-Keynesian model, calibrated on the German economy. We find that, in the long run, welfare gains are higher when revenues are used to reduce distortionary taxes on capital, but this comes at the cost of higher inequality: while all households prefer labor income tax reductions to lump-sum transfers, only financially unconstrained households are better off when reducing taxes on capital income. Interestingly, we find that over the transition period relevant to meet short-medium run climate targets, labor income tax cuts are the most efficient and equitable instrument. T3 - CEPA Discussion Papers - 45 KW - double dividend KW - E-DSGE KW - environmental tax reform KW - non-Ricardian households KW - revenue recycling Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-548960 SN - 2628-653X IS - 45 ER - TY - RPRT A1 - Matthewes, Sönke Hendrik A1 - Ventura, Guglielmo T1 - On Track to Success? BT - Returns to Vocational Education Against Different Alternatives T2 - CEPA Discussion Papers N2 - Many countries consider expanding vocational curricula in secondary education to boost skills and labour market outcomes among non-university-bound students. However, critics fear this could divert other students from more profitable academic education. We study labour market returns to vocational education in England, where until recently students chose between a vocational track, an academic track and quitting education at age 16. Identification is challenging because self-selection is strong and because students’ next-best alternatives are unknown. Against this back- drop, we leverage multiple instrumental variables to estimate margin-specific treatment effects, i.e., causal returns to vocational education for students at the margin with academic education and, separately, for students at the margin with quitting education. Identification comes from variation in distance to the nearest vocational provider conditional on distance to the nearest academic provider (and vice-versa), while controlling for granular student, school and neighbourhood characteristics. The analysis is based on population-wide administrative education data linked to tax records. We find that the vast majority of marginal vocational students are indifferent be- tween vocational and academic education. For them, vocational enrolment substantially decreases earnings at age 30. This earnings penalty grows with age and is due to wages, not employment. However, consistent with comparative advantage, the penalty is smaller for students with higher revealed preferences for the vocational track. For the few students at the margin with no further education, we find merely tentative evidence of increased employment and earnings from vocational enrolment. T3 - CEPA Discussion Papers - 58 KW - vocational education KW - returns to education KW - multi-valued treatment KW - instrumental variables Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-567253 SN - 2628-653X IS - 58 ER - TY - RPRT A1 - Hunold, Matthias A1 - Petrishcheva, Vasilisa T1 - Foreclosure and Tunneling with Partial Vertical Ownership T2 - CEPA Discussion Papers N2 - We demonstrate how the incentives of firms that partially own their suppliers or customers to foreclose rivals depend on how the partial owner can extract profits from the target (tunneling). Compared to a fully vertically integrated firm, a partial owner may obtain only a share of the target’s profit but influence the target’s strategy significantly. We show that the incentives for customer and input foreclosure can be higher, equal, or even lower with partial ownership than with a vertical merger, depending on how the protection of minority shareholders and transfer price regulations affect the scope for profit extraction. T3 - CEPA Discussion Papers - 57 KW - Backward ownership KW - Entry deterrence KW - Foreclosure KW - Minority shareholdings KW - Partial ownership KW - Uniform pricing KW - Vertical integration Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-565601 SN - 2628-653X IS - 57 ER - TY - RPRT A1 - Caliendo, Marco A1 - Cobb-Clark, Deborah A. A1 - Pfeifer, Harald A1 - Uhlendorff, Arne A1 - Wehner, Caroline T1 - Managers’ Risk Preferences and Firm Training Investments T2 - CEPA Discussion Papers N2 - We provide the first estimates of the impact of managers’ risk preferences on their training allocation decisions. Our conceptual framework links managers’ risk preferences to firms’ training decisions through the bonuses they expect to receive. Risk-averse managers are expected to select workers with low turnover risk and invest in specific rather than general training. Empirical evidence supporting these predictions is provided using a novel vignette study embedded in a nationally representative survey of firm managers. Risk-tolerant and risk-averse decision makers have significantly different training preferences. Risk aversion results in increased sensitivity to turnover risk. Managers who are risk-averse offer significantly less general training and, in some cases, are more reluctant to train workers with a history of job mobility. All managers, irrespective of their risk preferences, are sensitive to the investment risk associated with training, avoiding training that is more costly or targets those with less occupational expertise or nearing retirement. This suggests the risks of training are primarily due to the risk that trained workers will leave the firm (turnover risk) rather than the risk that the benefits of training do not outweigh the costs (investment risk). T3 - CEPA Discussion Papers - 44 KW - Manager Decisions KW - Employee Training KW - Risk Attitudes KW - Human Capital Investments Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-538439 SN - 2628-653X IS - 44 ER - TY - RPRT A1 - Caliendo, Marco A1 - Graeber, Daniel A1 - Kritikos, Alexander A1 - Seebauer, Johannes T1 - Pandemic Depression: COVID-19 and the Mental Health of the Self-Employed T2 - CEPA Discussion Papers N2 - We investigate the effect of the COVID-19 pandemic on self-employed people’s mental health. Using representative longitudinal survey data from Germany, we reveal differential effects by gender: whereas self-employed women experienced a substantial deterioration in their mental health, self-employed men displayed no significant changes up to early 2021. Financial losses are important in explaining these differences. In addition, we find larger mental health responses among self-employed women who were directly affected by government-imposed restrictions and bore an increased childcare burden due to school and daycare closures. We also find that self-employed individuals who are more resilient coped better with the crisis. T3 - CEPA Discussion Papers - 46 KW - self-employment KW - COVID-19 KW - mental health KW - gender KW - representative longitudinal survey data KW - PHQ-4 score KW - resilience Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-548999 SN - 2628-653X IS - 46 ER - TY - RPRT A1 - Borck, Rainald A1 - Oshiro, Jun A1 - Satō, Yasuhiro T1 - Property tax competition BT - A quantitative assessment T2 - CEPA Discussion Papers N2 - We develop a model of property taxation and characterize equilibria under three alternative taxa-tion regimes often used in the public finance literature: decentralized taxation, centralized taxation, and “rent seeking” regimes. We show that decentralized taxation results in inefficiently high tax rates, whereas centralized taxation yields a common optimal tax rate, and tax rates in the rent-seeking regime can be either inefficiently high or low. We quantify the effects of switching from the observed tax system to the three regimes for Japan and Germany. The decentralized or rent-seeking regime best describes the Japanese tax system, whereas the centralized regime does so for Germany. We also quantify the welfare effects of regime changes. T3 - CEPA Discussion Papers - 52 KW - property taxes KW - tax competition KW - efficiency Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-562228 SN - 2628-653X ER - TY - RPRT A1 - Andres, Maximilian A1 - Bruttel, Lisa Verena A1 - Friedrichsen, Jana T1 - How communication makes the difference between a cartel and tacit collusion BT - a machine learning approach T2 - CEPA Discussion Papers N2 - This paper sheds new light on the role of communication for cartel formation. Using machine learning to evaluate free-form chat communication among firms in a laboratory experiment, we identify typical communication patterns for both explicit cartel formation and indirect attempts to collude tacitly. We document that firms are less likely to communicate explicitly about price fixing and more likely to use indirect messages when sanctioning institutions are present. This effect of sanctions on communication reinforces the direct cartel-deterring effect of sanctions as collusion is more difficult to reach and sustain without an explicit agreement. Indirect messages have no, or even a negative, effect on prices. T3 - CEPA Discussion Papers - 53 KW - cartel KW - collusion KW - communication KW - machine learning KW - experiment Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-562234 SN - 2628-653X ER - TY - RPRT A1 - Franks, Max A1 - Kalkuhl, Matthias A1 - Lessmann, Kai T1 - Optimal Pricing for Carbon Dioxide Removal Under Inter-Regional Leakage T2 - CEPA Discussion Papers N2 - Carbon dioxide removal (CDR) moves atmospheric carbon to geological or land-based sinks. In a first-best setting, the optimal use of CDR is achieved by a removal subsidy that equals the optimal carbon tax and marginal damages. We derive second-best subsidies for CDR when no global carbon price exists but a national government implements a unilateral climate policy. We find that the optimal carbon tax differs from an optimal CDR subsidy because of carbon leakage, terms-of-trade and fossil resource rent dynamics. First, the optimal removal subsidy tends to be larger than the carbon tax because of lower supply-side leakage on fossil resource markets. Second, terms-of-trade effects exacerbate this wedge for net resource exporters, implying even larger removal subsidies. Third, the optimal removal subsidy may fall below the carbon tax for resource-poor countries when marginal environmental damages are small. T3 - CEPA Discussion Papers - 43 KW - carbon pricing KW - trade KW - unilateral climate policy KW - terms-of-trade effects KW - removal subsidies Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-538080 SN - 2628-653X IS - 43 ER - TY - RPRT A1 - Borck, Rainald A1 - Schrauth, Philipp T1 - Urban pollution BT - A global perspective T2 - CEPA Discussion Papers N2 - We use worldwide satellite data to analyse how population size and density affect urban pollution. We find that density significantly increases pollution exposure. Looking only at urban areas, we find that population size affects exposure more than density. Moreover, the effect is driven mostly by population commuting to core cities rather than the core city population itself. We analyse heterogeneity by geography and income levels. By and large, the influence of population on pollution is greatest in Asia and middle-income countries. A counterfactual simulation shows that PM2.5 exposure would fall by up to 36% and NO2 exposure up to 53% if within countries population size were equalized across all cities. T3 - CEPA Discussion Papers - 60 KW - population density KW - air pollution KW - gridded data Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-572049 SN - 2628-653X IS - 60 ER - TY - RPRT A1 - Borck, Rainald A1 - Mulder, Peter T1 - Energy policies and pollution in two developing country cities BT - A quantitative model T2 - CEPA Discussion Papers N2 - We study the effect of energy and transport policies on pollution in two developing country cities. We use a quantitative equilibrium model with choice of housing, energy use, residential location, transport mode, and energy technology. Pollution comes from commuting and residential energy use. The model parameters are calibrated to replicate key variables for two developing country cities, Maputo, Mozambique, and Yogyakarta, Indonesia. In the counterfactual simulations, we study how various transport and energy policies affect equilibrium pollution. Policies may be induce rebound effects from increasing residential energy use or switching to high emission modes or locations. In general, these rebound effects tend to be largest for subsidies to public transport or modern residential energy technology. T3 - CEPA Discussion Papers - 78 KW - pollution KW - energy policy KW - discrete choice KW - developing country cities Y1 - 2024 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-638472 SN - 2628-653X IS - 78 ER -