Three Essays on the Economics of the Environment and Climate Change

The climate crisis represents the defining challenge of the 21st century, demanding not only rapid decarbonization but also a deeper understanding of the socio-economic consequences of climate change and mitigation policies. This thesis investigates underexplored consequences linking climate action to employment, public health, and economic welfare, combining empirical and computational approaches to study the underlying mechanisms. Chapter 1 analyzes the employment effects of renewable energy (RE) deployment across European regions over three decades. Leveraging geolocalized data and an instrumental variable strategy, we find that the deployment of renewable energy plants has a positive and long-lasting impact on employment. These gains exhibit substantial heterogeneity across technologies and sectors, with rural and low-income areas exhibiting the largest benefits from RE deployment, underscoring the potential for theses investments as a strategic assets. Chapter 2 quantifies the health impacts of coal plant closures in Europe, exploiting spatial variation in PM2.5 exposure and mortality rates. Results reveal delayed but sizeable impacts on mortality for the regions within 50 km of plants. The benefits of coal plant shutdowns are disproportionately felt by older population groups, urban areas, and regions with high baseline pollution, highlighting substantial equity implications of fossil fuel phaseouts. Chapter 3 addresses a critical gap in integrated assessment modelling by developing an agent-based model that captures bidirectional feedbacks between climate change, health, and economic systems. Calibrated to European data, the model shows that climate-induced health shocks spill-over to the economy by reducing labor supply and demand, compounding GDP losses. These economic impacts, in turn, exacerbate morbidity and mortality rates, creating a self-reinforcing cycle that amplifies the consequences of climate shocks. Together, this thesis highlights the multidimensional nature of climate action, emphasizing the need for policies that prioritize co-benefits, by accelerating equitable energy transitions, targeting vulnerable communities, and embedding health considerations into decarbonization roadmaps.