Facundo Danza

Facundo Danza

PhD candidate in economics

New York University

About me

I am a PhD candidate in economics at New York University. My fields of interest are environmental, agricultural, and energy economics. You can find my CV here.

I am on the 2023-2024 Job Market.

In my Job Market Paper, I study groundwater use in the agricultural sector, combining agronomic and economic modeling with microdata.

Interests

  • Environmental economics
  • Agricultural economics
  • Energy economics

Education

  • PhD in Economics, 2024 (Expected)

    New York University

  • MA in Economics, 2019

    Universidad de Montevideo

  • BA in Economics, 2015

    Universidad de Montevideo

Job Market Paper

Optimal and Sustainable Groundwater Use: Evidence from Nebraska

The agricultural sector is the primary water consumer in the US. Groundwater is one of its main sources, with 65% of irrigated farmland relying on groundwater for their water supply. Groundwater use presents a common pool problem: if a farmer pumps groundwater, she decreases the aquifer’s water table and thus increases the cost of pumping for farmers in the same aquifer. Studying such a problem is challenging due to a lack of markets and data on groundwater use. In this paper, I leverage detailed farmer-level data on (ground)water use, crop choices, and crop yields to study the equilibrium implications of the current groundwater costs. I focus on the Ogallala Aquifer in Nebraska. In order to estimate the effect of water costs on water use and crop choices, I combine a crop-growth model with an economic model. I use the crop-growth model to recover the precise relation between water use and crop yields. I use the economic model to estimate the marginal cost of water for farmers. I then quantify how farmers respond to water costs by switching which crop they plant or changing the water use per planted crop. I find that farmers are inelastic to water costs: a 10% increase in the water cost would decrease water use by 3%. Moreover, I find that farmers adapt to higher water costs by both reducing the water use per planted crop and fallowing the land. Lastly, I utilize my estimates to compute the optimal and sustainable tax on groundwater use.

Working Papers

The Impact of Solar Panel Installation on Electricity Consumption and Production

Since 2010, the Uruguayan government has fostered the installation of solar panels among households and firms to promote small-scale renewable electricity production. Under this policy, agents with solar panels are allowed to feed any electricity surplus into the grid. We study the economic and environmental consequences of this policy. We collect a novel dataset on electricity extraction and injection into the grid at a household-firm level for the whole country. First, we find that installing a solar panel reduces the electricity extracted from the grid. Second, we find that it increases the electricity injected into the grid. Third, we find that it reduces CO2 emissions between 0.35 and 0.03 kg per month and agent. Fourth, we find evidence of a rebound effect: electricity consumption after the solar panel installation increases between 20% and 26%, on average. Lastly, we propose an alternative policy that allows agents to store their electricity surplus in batteries instead of immediately injecting it into the grid. According to our model, the best time to inject electricity into the grid is around 9 PM, when fossil-fuel facilities satisfy most of the electricity demand. We leverage household and firm-level data to study the effect of a net-metering policy on electricity extraction and injection, showing what countries can expect from implementing such a policy.

Teaching

Labor Economics, NYU

CA: Fall 2022

Intro to Econometrics, NYU

TA: Spring 2022

Statistics, NYU

TA: Fall 2021; Spring 2021; Fall 2020

Public Economics, UM

TA: Fall 2017; Fall 2016

Contact