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This paper provides new evidence on the preference for environmental quality among youth in the Middle East and North Africa (MENA) region. Our paper aims to provide insights into the relationship between youth outlooks and characteristics and environmental awareness. We use a unique and nationally representative micro-level dataset extracted from the SAHWA Youth Survey (Barcelona Centre for International Studies (CIDOB), Barcelona, 2016) conducted in five major MENA countries: Algeria, Egypt, Lebanon, Morocco, and Tunisia. The empirical investigation utilizes the ordered probit model to accommodate the ordinal nature of the dependent variable that measures environmental awareness. Our findings indicate that the preference for a better environmental quality increases with individual income, by being female, and with the lack of confidence in government. Moreover, identity factors such as gender equality, the unimportance of traditions and perceiving oneself as a national citizen have a positive effect on environmental awareness. These findings signal a number of potential policy implications. First, they point to the importance of economic growth and modernization in the region as a way of increasing environmental awareness in the future. Second, they reveal a genuine demand for the provision of public goods in the presence of weak governmental actions with respect to environmental quality. Third, the fact that females demand more environmental quality than males allows us to forecast a general increase in such awareness as females across the region participate more in the economy, society and politics leading to what we can call 'female environmental stewardship'.

Using a fossil fuel extraction model that treats the atmosphere as a depletable resource, we study the optimal price of carbon in the presence of endogenous uncertainty around a climatic regime shift. We find that the optimal carbon tax should account an uncertainty‐adjusted cost term associated with the environment's scarcity. This term is shown to be sensitive to the natural sequestration rate of the atmosphere and to the probability surrounding a climate tail event. Our analysis also shows that in the presence of uncertainty, the shadow price of the environment should grow at a faster rate. Lastly, compared to the endogenous uncertainty case, we find that if the probability surrounding a regime shift is exogenously given, this shadow price should even grow at a higher rate. Considerations for Management Based on our theoretical analysis, considerations for resource management may include: • Beside direct damages, optimal carbon pricing should account for a cost term related to the environment's scarcity. • As the probability of facing an extreme climate event increase, this cost term amplifies. • The cost term disappears for a sufficiently high abatement effort. • Compared to endogenous uncertainty, exogenous uncertainty enforces placing a higher value on the environment's shadow price.

Purpose This study aims to examine the impact of local air pollution on housing prices in Lebanon. Design/methodology/approach The authors apply a hedonic pricing approach using a unique data set from Lebanon. To account for non-linearities in pricing, the authors use three different functional regression forms for the hedonic model approach. The authors also deal with potential omitted variable bias by estimating a hedonic frontier specification. Findings The authors find that, in all specifications, air pollution negatively and significantly affects housing prices. The estimated marginal willingness to pay for a one microgram per cubic meter change in particulate matter (PM10) concentration ranges between 2.88% and 3.18% of mean housing prices. The authors also provide evidence of a negative pricing gradient away from the city center, landing support for the monocentric urban development hypothesis. Research limitations/implications Given the lack of a data set linking household socioeconomic characteristics with housing data, the authors only consider the first-stage hedonic model. Practical implications The proposed hedonic pricing regression approximates a housing pricing equation that can be used by policymakers. Social implications The findings suggest that pollution is a significant factor in household behavior in Lebanon. Originality/value This paper adds to the scant literature studying the effects of air pollution on housing prices in developing countries. To the best of the authors’ knowledge, this is the first paper to study the impact of pollution on housing prices in a country in the Middle East and North Africa Region.

Purpose Employment and skill mismatch among youth constitute a major obstacle for access to the job market in the Middle East and North African region. The purpose of this paper is to explore factors explaining employment and the perception of the skill-mismatch problem among the youth in Lebanon using a novel data set covering young people aged from 15 to 29. The paper provides a set of empirical insights that help in the design of public policy targeting school-to-work transition. Design/methodology/approach The authors control for a rich set of youth and household characteristics to jointly estimate the probability of being employed and the likelihood of reporting a skill-mismatch problem. The empirical analysis uses a bivariate probit model where the first equation estimates the employment status while the second estimates the determinants of skill-mismatch perceptions. The bivariate probit model considers the error terms in both equations to be correlated and the model tests for such a correlation. The authors estimate the model recursively by controlling for the employment dummy variable in the skill-mismatch equation since employed youth could be more or less likely to perceive the skill mismatch. The estimation is conducted first over the whole sample of youth, and then it is implemented by gender and region. Findings The authors find that youth employment is mainly correlated with age, being male, being single, having received vocational training and financial support from parents, living with parents and receiving current education. The skill-mismatch perceptions are mainly driven by being male, being single, having received post-secondary education and belonging to upper and middle social classes. The authors also find that employability level and skill-mismatch problems are jointly determined in the labor market for males and in the core region only. Originality/value The paper covers a country that is neglected in the literature on the employment-skill mismatch nexus in the context of school-to-work transition. The study also uses a novel data set focusing on youth. The paper contributes to our understanding of the school-to-work transition in particular and to the youth-to-adulthood transition in general.

This paper investigates the relationship between carbon dioxide emissions and gross domestic product in the Middle East and North Africa region using World Bank data covering the period 1980 to 2010 on the eve of the Arab Spring. Unlike extant studies using parametric models, the results provide evidence against the postulated inverted-U shaped relationship between pollution and the level of economic development. Using a non-parametric model, new evidence is found against the existence of a carbon Environmental Kuznets Curve in contrast to previous studies on the region. The paper provides a cautionary note against the use of parametric models to draw policy implications about the trade-off (or lack thereof) between environmental quality and the level of economic development.

Adaptation costs to climate change vary widely across countries, especially between developed and developing countries. Adaptation costs also influence a country's decision to abate and join international environmental agreements (IEAs). In this paper, the authors study how these cost differences affect participation incentives. Their model identifies two channels through which adaptation affects free-riding incentives: carbon leakage and cost asymmetry in adaptation. In contrast with the common view, the authors find that the presence of adaptation is not necessarily an impediment to cooperation on abatement. They also present conditions under which adaptation can strengthen or weaken free-riding incentives. The results serve as a cautionary tale to policy makers and suggest that policies directed at reducing carbon leakage and/or cost differences between developed and developing countries may also affect the success and failure of IEAs.

This paper contributes to the debate surrounding the impact of adaptation to climate change on the incentives to abate greenhouse gases emissions. Using data from the World Development Indicators and various adaptation funds under the UNFCCC framework, this paper provides an empirical analysis of the relation between adaptation and emissions. We specifically test whether adaptation measures to climate change affect emissions of greenhouse gases in a world where adaptation funds are available. Using a staggered difference-in-differences approach and an event study analysis, we find that receiving adaptation funding significantly and negatively affects several CO₂ emissions measures, providing preliminary evidence of the presence of a halo effect of adaptation funding. We do not find evidence of a significant change in the emissions of methane, nitrous dioxide and other greenhouse gases.

Purpose This study aims to examine the impact of local air pollution on the presence of central air conditioners in apartments in Lebanon. Design/methodology/approach This study applies a Probit model in a unique data set on apartments’ listings for sale in Lebanon collected by Marrouch and Sayour (2021). The data set includes information about air pollution concentrations, dwellings’ characteristics, geographic features and location characteristics. Findings This study finds that local air pollution positively and significantly affects the presence of central air conditioning in dwellings. The estimated increase in the probability of having central air conditioning for a one microgram per cubic meter increase in Particulate Matter 2.5 concentration is 6.4%. Research limitations/implications The data set in this study is cross-sectional and thus does not capture variations over time for the examined variables. Practical implications The Probit regression approximates an equation that can predict the presence of central air conditioners in dwellings, which might be useful to policymakers. Social implications The findings suggest that local pollution is a significant factor in household behavior in Lebanon. Originality/value This paper adds to the scant literature studying the effects of air pollution on the presence of central air conditioning in developing countries. To the best of the authors’ knowledge, this is the first paper to study the impact of air pollution on the presence of central air conditioning in the Middle East and North Africa Region.

Foreign domestic workers' activities provide important market and non-market services in a large number of middle-income countries as these activities have an impact on the labor force participation and time allocation decisions of household members. This paper provides new evidence on the determinants of foreign domestic workers' employment using a socio-economic dataset from Lebanon. Controlling for household, household head, dwelling and regional characteristics, contrary to popular beliefs we find that the size of the household and the presence of elderly persons are not important determinants of the hiring decision of foreign domestic workers, while the probability of hiring a domestic worker is significantly higher for households with children and disabled persons. Interestingly, we find that the number of rooms in the residence rather than its total surface area or type to be the only relevant dwelling characteristic. The paper offers insights about the demand for foreign domestic workers that may be useful to policy makers in developing nations.