nep-ene New Economics Papers
on Energy Economics
Issue of 2006‒12‒16
five papers chosen by
Roger Fouquet
Imperial College, UK

  1. The "Stern Review" on the Economics of Climate Change By William D. Nordhaus
  2. Modeling population dynamics and economic growth as competing species: An application to CO2 global emissions By Salvador E. Puliafito; José L. Puliafito; Mariana Conte Grand
  3. Oil dependence and economic instability By Luís Aguiar-Conraria; Yi Wen
  4. L'interdépendance gazière de la Russie et de l'Union européenne : quel équilibre entre le marché et la géopolitique ? By Dominique Finon; Catherine Locatelli
  5. Growth is Failing the Poor: The Unbalanced Distribution of the Benefits and Costs of Global Economic Growth By David Woodward; Andrew Simms

  1. By: William D. Nordhaus
    Abstract: How much and how fast should the globe reduce greenhouse-gas emissions? How should nations balance the costs of the reductions against the damages and dangers of climate change? This question has been addressed by the recent "Stern Review on the Economics of Climate Change," which answers these questions clearly and unambiguously. We need urgent, sharp, and immediate reductions in greenhouse-gas emissions. An analysis of the "Stern Review" finds that these recommendations depend decisively on the assumption of a near-zero social discount rate. The Review's unambiguous conclusions about the need for extreme immediate action will not survive the substitution of discounting assumptions that are consistent with today's market place.
    JEL: Q4 Q5
    Date: 2006–12
  2. By: Salvador E. Puliafito; José L. Puliafito; Mariana Conte Grand
    Abstract: Since the beginning of the last century the world is experiencing an important demographic transition, which will probably impact on economic growth. Many demographers and social scientists are trying to understand the key drivers of such transition as well as its profound implications. A correct understanding will help to predict other important trends of the world primary energy demand and the carbon emission to the atmosphere, which may be leading to an important climate change. This paper proposes a set of coupled differential equations to describe the changes of population, gross domestic product, primary energy consumption and carbon emissions, modeled as competing-species as in Lokta-Volterra prey-predator relations. The predator–prey model is well known in the biological, ecological and environmental literature and has also been applied successfully in other fields. This model proposes a new and simple conceptual explanation of the interactions and feedbacks among the principal driving forces leading to the present transition. The estimated results for the temporal evolution of world population, gross domestic product, primary energy consumption and carbon emissions are calculated from year 1850 to year 2150. The calculated scenarios are in good agreement with common world data and projections for the next 100 years.
    Keywords: Population dynamics, economic growth, primary energy consumption, carbon emission model, Lokta-Volterra Equations, Prey-predator model.
    Date: 2006–11
  3. By: Luís Aguiar-Conraria; Yi Wen
    Abstract: We show that dependence on foreign energy can increase economic instability by raising the likelihood of equilibrium indeterminacy, hence making fluctuations driven by self-fulfilling expectations easier to occur. This is demonstrated in a standard neoclassical growth model. Calibration exercises, based on the estimated share of imported energy in production for several countries, show that the degree of reliance on foreign energy for many countries can easily make an otherwise determinate and stable economy indeterminate and unstable.
    Keywords: Petroleum industry and trade ; Economic stabilization
    Date: 2006
  4. By: Dominique Finon (CIRED - Centre international de recherche sur l'environnement et le développement - [CIRAD : UMR56][CNRS : UMR8568] - [Ecole des Hautes Etudes en Sciences Sociales][Ecole Nationale des Ponts et Chaussées][Ecole Nationale du Génie Rural des Eaux et des Forêts]); Catherine Locatelli (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - [CNRS : FRE2664] - [Université Pierre Mendès-France - Grenoble II])
    Abstract: L'objet de ce papier est d'analyser la relation d'interdépendance de la Russie et de l'Union européenne dans le domaine gazier en dissociant le risque de pouvoir de marché du vendeur russe du problème de sécurité de court terme. L'objectif est de prendre la mesure du risque économique associé à la position dominante du vendeur russe sur le marché européen afin d'apprécier la pertinence des réponses qui peuvent lui être apportées par les Etats européens ou par l'Union européenne.
    Date: 2006–12–11
  5. By: David Woodward; Andrew Simms
    Abstract: During 1990-2001, only 0.6 per cent of additional global income per capita contributed to reducing poverty below the $1-a-day line, down from 2.2 per cent during 1981-1990, and barely half the poor’s share of global income. Coupled with the constraints on global growth associated with climate change, and the disproportionately adverse net impact of climate change on the poor, this casts serious doubt on the dominant view that global growth should be the primary means of poverty reduction. Rather than growth, policies and the global economic system should focus directly on achieving social and environmental objectives.
    Keywords: Economic growth, income distribution, world inequality, poverty, environment, climate change
    JEL: D31 D63 Q56
    Date: 2006–03

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