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on Resource Economics |
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Issue of 2024‒02‒12
four papers chosen by |
| By: | Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Johansson-Stenman, Olof (Department of Economics, School of Business, Economics and Law, Göteborg University); Kataria, Mitesh (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | Based on a tailor-made survey, we find that experts – academics and civil servants – are much more willing than citizens in Sweden to accept liberty-reducing regulations. Moreover, both citizens and experts are more supportive of regulating negative internalities (in terms of health) than negative externalities (in terms of climate change). While less liberty-reducing policy instruments receive more support, around 20 percent of citizens and experts support very intrusive measures such as non-transferable individual quotas for air travel and unhealthy foods. Both experts and citizens prefer encouraging to discouraging information provision, while experts are more positive than citizens to tax instruments. |
| Keywords: | externalities; internalities; paternalism; experts; citizens |
| JEL: | D04 D62 D91 Q58 |
| Date: | 2024–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0841&r=res |
| By: | Congdon Fors, Heather (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | The focus of this report is on child labour, which is a main component of Sustainable Development Goal (SDG) 8.7. After providing a brief background on child labour, this report provides an overview of the factors that research has identified as main contributors to child labor, categorized broadly as either microeconomic factors, macroeconomic factors, or other household factors. Microeconomic factors include household poverty, market imperfections, and the role of education in shaping outcomes while macroeconomic factors include economic growth and globalization. Other relevant parental and household factors are also discussed, such as altruism and cultural norms. The report next provides an overview of policies aimed at combating child labor, including policies related to the legal framework, poverty reduction initiatives, and access to education. A critical evaluation of the indicator used to measure child labor is conducted, focusing on standardization, measurement accuracy, conceptualization, and areas for potential improvement. Finally, the report identifies major challenges faced in eradicating child labor. |
| Keywords: | child labour; policy; sustainable development goals |
| JEL: | D13 J13 J22 O12 |
| Date: | 2024–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0840&r=res |
| By: | Davi-Arderius, Daniel (University of Barcelona & Chair of Energy Sustainability, Barcelona Institute of Economics (IEB), Spain. Copenhagen School of Energy Infrastructure (CSEI), Copenhagen Business School, Denmark); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Rosellon, Juan (Centro de Investigación y Docencia Económicas, Mexico; German Institute for Economic Research (DIW Berlin), Germany; Center for Energy Studies, Rice University, USA; University of Barcelona & Chair of Energy Sustainability, Barcelona Institute of Economics (IEB), Spain.) |
| Abstract: | The 2022 energy crisis highlighted the dependence of the European electricity sector on imported natural gas. The European Union adopted measures to reduce gas consumption with peak shaving, energy efficiency, and accelerating the adoption of renewables. We investigate a well-known operational but under-researched issue related to integration of renewables, i.e. the need for conventional generation to ensure system operation requirements (inertia, frequency stability or voltage control) in highly decarbonized systems, which is essential for power system reliability. We analyze the rescheduled supply in Spain in the day-ahead market to respect network constraints, namely ‘redispatching’. Most of the activated volumes are synchronous generators (combined cycle or coal), while an equivalent volume of scheduled renewables (wind) is curtailed to balance the system. These actions have an annual cost of nearly 0.5b€, higher CO2 emissions, and reduce the savings in gas consumption. We also estimate how dispatched volumes evolve under programs that target demand or promote renewables. The Spanish case anticipates similar scenarios in other countries and in the EU. Our main conclusion is that some conventional generators are needed for safe operation of the system and RES and countries need to carefully assess whether to disconnect them from the network. Moreover, solving grid congestions is a necessary but not sufficient for efficient integration of renewables. Grid operators should increase digitalization investments and implement advanced grid planning and operation to anticipate operational constraints. |
| Keywords: | Renewables; Decarbonization; Generation mix; Redispatching; Renewable curtailment; Synchronous generators; Day-ahead market; Network constraints; Gas crisis; System operator; Smart grids; Digitalization |
| JEL: | L51 L94 Q41 Q42 |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_003&r=res |
| By: | Heijmans, Roweno J.R.K. (Dept. of Business and Management Science, Norwegian School of Economics); Engström, Max (Dept. of Economics, Swedish University of Agricultural Sciences) |
| Abstract: | We study dynamic cap-and-trade schemes in which a policy of adjustable allowance supply determines the cap on emissions. Focusing on two common supply policies, price and quantity mechanisms, we investigate how the duration of a cap-and-trade scheme affects equilibrium emissions under its cap. More precisely, we consider the reduction in equilibrium emissions realized by shortening the duration of the scheme. We present four main results. First, the reduction in emissions is positive and bounded from below under a price mechanism. Second, the reduction in emissions is bounded from above under a quantity mechanism. Third, these upper and lower bounds coincide when the price and quantity mechanism are similar. Fourth, we identify sufficient conditions for which the reduction in emissions is strictly negative under a quantity mechanism. We quantify our theoretical results for the European Union, the world’s largest cap-and-trade scheme to use a quantity mechanism; effects on cumulative EU emissions range from trivial to substantial. |
| Keywords: | Emissions trading; market-based emissions regulations; policy design |
| JEL: | E61 H23 Q58 |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2024_002&r=res |