nep-ene New Economics Papers
on Energy Economics
Issue of 2008‒08‒14
eight papers chosen by
Roger Fouquet
Imperial College, UK

  1. Greenhouse Gas Emission Mitigation and Emission Intensities in Agriculture By Uwe A. Schneider; Pete Smith
  2. Carbon Emissions and Economic Growth: Homogeneous Causality in Heterogeneous Panels By David J. Maddison; Katrin Rehdanz
  3. Growth and convergence in a model with renewable and nonrenewable resources By Manh Hung Nguyen; Phu Nguyen Van
  4. Climate change, environmental taxes and the future of tourist destinations of beach and sun By Cirer-Costa, Joan Carles
  5. Oil Price Shocks, Macroeconomic Stability and Welfare in a Small Open Economy By Deren Unalmis; Ibrahim Unalmis; Derya Filiz Unsal
  6. Ethanol Expansion in the Food versus Fuel Debate: How Will Developing Countries Fare? By Elobeid, Amani; Hart, Chad E.
  7. Evaluating the Economic Cost of Strategic Storage of Natural Gas By Joao Miguel Ejarque
  8. A Tradable Permit System in an Intertemporal Economy: A General Equilibrium Approach By Kenichi Akao; Shunsuke Managi

  1. By: Uwe A. Schneider; Pete Smith (Research unit Sustainability and Global Change)
    Abstract: Energy efficiency and greenhouse gas emissions are closely linked. This paper reviews agricultural options to reduce energy intensities and their impacts, discusses important accounting issues related to system boundaries, land scarcity, and measurement units, and compares agricultural energy intensities and improvement potentials on an international level. Agricultural development in the past decades, while increasing yields, led to lower average energy efficiencies between the sixties and mid eighties. In the last two decades, energy intensities in developed countries increased, however, with little impact on greenhouse gas emissions. Efficiency differences across countries suggest a maximum improvement potential of 500 million tons of CO2 annually.
    Keywords: Energy intensity, Agriculture, Greenhouse gas emissions, Mitigation potential, Fertilizer efficiency
    JEL: Q54
    Date: 2008–07
  2. By: David J. Maddison; Katrin Rehdanz (Institute for World Economics)
    Abstract: This paper introduces the concept of homogeneous non-causality in heterogeneous panels. This concept is used to examine a panel of data for evidence of a causal relationship between GDP and carbon emissions. The technique is compared to the standard test for homogeneous non-causality in homogeneous panels and heterogeneous non-causality in heterogeneous panels. In North America, Asia and Oceania the homogeneous non-causality hypothesis that CO2 emissions does not Granger cause GDP cannot be rejected if heterogeneity is allowed for in the data-generating process. In North America the homogeneous non-causality hypothesis that GDP does not cause CO2 emissions cannot be rejected either.
    Keywords: Energy; Carbon Emissions; Granger Causality; Heterogeneous Panels
    JEL: Q54
    Date: 2008–07
  3. By: Manh Hung Nguyen (Toulouse School of Economics, LERNA-INRA); Phu Nguyen Van (THEMA-CNRS, Cergy-Pontoise University)
    Abstract: This paper analyzes the transitional dynamics in a model of economic growth with endogenous technological change and two alternative sources of energy: renewable and non-renewable resources. The conditions for the existence and saddle point property of the steady state are given. Finally, we present the estimation results on the data consisting of R&D energy, non-renewable energy consumption and renewable energy consumption.
    Keywords: Optimal growth, existence of equilibrium, transitional dynamics, energy, renewable resources, nonrenewable resources
    JEL: D51 E13
    Date: 2008–07
  4. By: Cirer-Costa, Joan Carles
    Abstract: This paper proposes that in the near future –from now to 2020– the prices of aviation fuels shall undergo dramatic increases due to the fact that energy will become more expensive on global level and, most of all, due to the severe imposition of tax burden provoked by the necessity of lowering the impact of air transport over climate change. From this starting point the increase of costs it is estimated that they will bring along two destinations such as sun and beach, for this reason Ibiza and Punta Cana. The paper also shows sufficient material to evaluate the impact of the increase of aviation fuel over other destinations such as the Canary Islands, Cancun and the Seychelles. The project incorporates features as the future technological evolution of commercial aviation and the incidence of the new tax philosophy already tested by the European Union concerning this mean of transport.
    Keywords: Climate change, tourism, aviation, environmental taxes, fuel prices
    JEL: Q01
    Date: 2008–05
  5. By: Deren Unalmis; Ibrahim Unalmis; Derya Filiz Unsal
    Date: 2008
  6. By: Elobeid, Amani; Hart, Chad E.
    Abstract: This paper examines the impact of ethanol expansion in the United States, brought about by higher crude oil prices, on agricultural commodity prices. Given the United States's stature as a major producer and exporter of many agricultural commodities, the resulting increase in commodity prices has spillover effects into the global market. Using the price changes estimated within a multi-commodity, multi-country agricultural modeling system, this paper attempts to show how an increase in world commodity prices would affect the costs of food baskets around the world and how higher food costs will impact food security, particularly in developing countries. In general, we find that countries where corn is the major food grain experience larger increases in food basket cost while countries where rice is the major food grain have smaller food basket cost increases. Countries where wheat and/or sorghum are the major food grains fall in between. Consequently, the highest percentage increases are seen in Sub-Saharan Africa and Latin America where food basket costs are estimated to increase by at least 10%. The lowest percentage increases are seen in Southeast Asia, with cost increases of less than 2.5%.
    Keywords: ethanol, prices, commodity, food
    JEL: Q0 Q4
    Date: 2008–08–06
  7. By: Joao Miguel Ejarque
    Abstract: The European Commission wants to implement a single market for gas. One of the components of this market is a regulated provision for "security of supply" which consists of rules for the implementation and use of a given reserve stock of gas. We investigate the impact of this policy on the profitability of a storage operator, using data from Denmark and Italy. Keeping storage capacity constant, the costs of the strategic stock are around 20% of the value of the storage market for Denmark, and 16% for Italy. This cost is due to the inability to extract arbitrage profits from the captive stock.
    Date: 2008–07–31
  8. By: Kenichi Akao (School of Social Sciences, Waseda University, and Institute of Economic Research, Kyoto University); Shunsuke Managi (Faculty of Business Administration, Yokohama National University)
    Abstract: The creation of an artificial market through a tradable permit system as a remedy against market failure is gaining popularity among analysts and policymakers. We show that in an intertemporal competitive economy, a tradable permit system may not achieve efficiency without setting appropriate permit interest rates (rewards for holding permits), and to find them, we must know in advance the path of efficient permit prices, which is difficult or impossible to obtain. We deal with this problem in two ways. First, we seek a special case in which the permit interest rates are given by a simple rule. Second, we propose a mechanism by which the permit interest rates are generated endogenously. The determinacy of an equilibrium under a tradable permit system is also examined.
    Keywords: Auction; artificial market, tradable permit system, general equilibrium, permit interest rate, permit bank, indeterminacy
    JEL: H23 K32 Q58
    Date: 2008–08

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