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2737. Emissions Uncertainty, Technology and Optimal Commuting and Leisure Demands

Invited abstract in session WC-22: Environment and climate change, stream Energy Management.

Wednesday, 12:30-14:00
Room: 81 (building: 116)

Authors (first author is the speaker)

1. ioannis paraskevopoulos

Abstract

In this paper, we offer a theoretical framework to rationalize choices of commuting and traveling for leisure conducted by individuals under uncertainty about the future level of emissions. The main focus is analyzing technology's role in this process. The model is estimated for a sample of surveyed individuals across US counties during the years 2017 and 2018. The role of technology is measured through the availability of fixed broadband and fiber-to-the-home for each individual. We find positive elasticities of substitution suggesting that as the cost of commuting increases, the demand for broadband services increases. This implies that individuals are substituting commuting with activities that require broadband such as working from home and therefore digital technology is an emission reducer and produces productivity gains in travelling for work and leisure. More commuting time for work will cause an increase in emissions volatility across counties, and the total effect on expected emissions will be positive as individuals do suboptimal consumption of the two activities.

Keywords

Status: accepted

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