It’s one of the paradoxes of economic development: Many countries currently offer large subsidies to their industrial fishing fleets, even though the harms of overfishing are well-known. Governments might be willing to end this practice, if they saw that its costs outweighed its benefits. But each country, acting individually, faces an incentive to keep subsidies in place.
This trap evokes the classic “tragedy of the commons” that economists have studied for generations. But despite the familiarity of the problem in theory, they don’t yet have a lot of hard evidence to offer policymakers about solutions, especially on a global scale. PhD student Aaron Berman is working on a set of projects that may change that.
“Our goal is to get some empirical traction on the problem,” he says.
Berman and his collaborators are combining a variety of datasets — not only economic data but also projections from ecological models — to identify how these subsidies are impacting fish stocks. They also hope to determine whether countries might benefit instead from sustainability measures to help rebuild fisheries, say through new trade arrangements or other international policy agreements.
As a fourth-year doctoral candidate in MIT’s Department of Economics, Berman has a variety of other research projects underway as well, all connected by the central question of how to balance economic development with the pressure it puts on the environment and natural resources. While his study of fishing subsidies is global in scope, other projects are distinctly local: He is studying air pollution generated by road infrastructure in Pakistan, groundwater irrigation in Texas, the scallop fishing industry in New England, and industrial carbon-reduction measures in Turkey. For all of these projects, Berman and his collaborators are bringing data and models from many fields of science to bear on economic questions, from seafloor images taken by NOAA to atmospheric models of pollution dispersion.
“One thing I find really exciting and joyful about the work I’m doing in environmental economics is that all of these projects involve some kind of crossover into the natural sciences,” he says.
Several of Berman’s projects are so ambitious that he hopes to continue working on them even after completing his PhD. He acknowledges that keeping so many irons in the fire is a lot of work, but says he finds motivation in the knowledge that his research could shape policy and benefit society in a concrete way.
“Something that MIT has really instilled in me is the value of going into the field and learning about how the research you’re doing connects to real-world issues,” he says. “You want your findings as a researcher to ultimately be useful to someone.”
Testing the waters
The son of two public school teachers, Berman grew up in Maryland and then attended Yale University, where he majored in global affairs as an undergraduate, then stayed to get his master’s in public health, concentrating on global health in both programs.
A pivotal moment came while taking an undergraduate class in development economics. “That class helped me realize the same questions I cared a lot about from a public health standpoint were also being studied by economists using very rigorous methods,” Berman says. “Economics has a lot to say about very pressing societal issues.”
After reading the work of MIT economists and Nobel laureates Esther Duflo and Abhijit Banerjee in that same class, he decided to pivot and “test the waters of economics a little bit more seriously.” The professor teaching that class also played an important role, by encouraging Berman to pursue a predoctoral research position as a first step toward a graduate degree in economics.
Following that advice, Berman landed at the Harvard Kennedy School’s Evidence for Policy Design, a research initiative seeking to foster economic development by improving the policy design process. His time with this organization included five months in Jakarta, Indonesia, where he collaborated with professors Rema Hanna and Ben Olken — of Harvard and MIT, respectively — on a portfolio of projects focused on analyzing social protection and poverty alleviation.
The work, which included working closely with government partners, “required me to think creatively about how to talk about economics research to several different types of audiences,” he says. “This also gave me experience thinking about the intersection between what is academically interesting and what is a policy priority.”
The experience also gave him the skills and confidence to apply to the economics PhD program at MIT.
(Re)discovering teaching
As an economist, Berman is now channeling his interests in global affairs to exploring the relationship between economic development and protecting the natural environment. (He’s aided by an affinity for languages — he speaks five, with varying degrees of proficiency, in addition to English: Mandarin, Cantonese, Spanish, Portuguese, and Indonesian.) His interest in natural resource governance was piqued while co-authoring a paper on the economic drivers of climate-altering tropical deforestation.
The review article, written alongside Olken and two professors from the London School of Economics, explored questions such as “What does the current state of the evidence tell us about what causes deforestation in the tropics, and what further evidence is needed?” and “What are the economic barriers to implementing policies to prevent deforestation?” — the kinds of questions he seeks to answer broadly in his ongoing dissertation work.
“I gained an appreciation for the importance and complexity of natural resource governance, both in developing and developed countries,” he says. “It really was a launching point for a lot of the things that I'm doing now.”
These days, when not doing research, Berman can be found playing on MIT’s club tennis team or working as a teaching assistant, which he particularly enjoys. He’s ever mindful of the Yale professor whose encouragement shaped his own path, and he hopes that he can pay that forward in his own teaching roles.
“The fact that he saw I had the ability to make this transition and encouraged me to take a leap of faith is really meaningful to me. I would like to be able to do that for others,” Berman says.
His interest in teaching also connects him further with his family: His father is a middle school science teacher and mother is a paraeducator for students with special needs. He says they’ve encouraged him throughout his academic journey, even though they initially didn’t know much about what a PhD in economics entailed. Berman jokes that the most common question people ask economists is what stocks they should invest in, and his family was no exception.
“But they’ve always been very excited to hear about the kinds of things I’m working on and very supportive,” he says.
“It’s been a really amazing learning experience thus far,” Berman says about his doctoral program. “One of the coolest parts of economics research is to have a sense that you’re tangibly doing something that’s going to have an impact in the world.”
