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on Energy Economics |
| By: | Patrick Nussbaumer, Morgan Bazilian, Vijay Modi and Kandeh K. Yumkella |
| Abstract: | The provision of modern energy services is recognised as a critical foundation for sustainable development, and is central to the everyday lives of people. Effective policies to dramatically expand modern energy access need to be grounded in a robust information-base. Metrics that can be used for comparative purposes and to track progress towards targets therefore represent an essential support tool. This paper reviews the relevant literature, and discusses the adequacy and applicability of existing instruments to measure energy poverty. Drawing on those insights, it proposes a new composite index to measure energy poverty. Both the associated methodology and initial results for several African countries are discussed. Whereas most existing indicators and composite indices focus on assessing the access to energy, or the degree of development related to energy, our new index – the Multidimensional Energy Poverty Index (MEPI) – focuses on the deprivation of access to modern energy services. It captures both the incidence and intensity of energy poverty, and provides a new tool to support policymaking. |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:qeh:ophiwp:ophiwp042&r=ene |
| By: | Abebe Damte (Department of Economics, University of Pretoria); Steven F. Koch (Department of Economics, University of Pretoria); Alemu Mekonnen (School of Economics, Addis Ababa University) |
| Abstract: | This study examines the coping mechanisms applied by rural households in the face of fuel wood scarcity by using survey data from randomly selected rural households in Ethiopia. The determinants of collection of other biomass energy sources were also examined. The results of the empirical analysis show that rural households residing in forest-degraded areas respond to fuel wood shortages by increasing their labour input to fuel wood collection. However, for households in high forest cover regions, forest stock and forest access may be more important factors than scarcity of fuel wood in determining household’s labour input to fuel wood collection. The study also finds that there is limited evidence of substitution between fuel wood and dung or fuel wood and crop residues. Therefore, supply-side strategies alone may not be effective in addressing the problem of forest degradation and biodiversity loss. Any policy on natural resource management, especially related to rural energy, should make a distinction between regions with different levels of forest degradation. |
| Keywords: | Fuel wood, labor allocation, biomass, rural Ethiopia |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201125&r=ene |
| By: | Rehana Siddiqui (Pakistan Institute of Development Economics, Islamabad.); Hafiz Hanzla Jalil (Pakistan Institute of Development Economics, Islamabad.); Muhammad Nasir (Pakistan Institute of Development Economics, Islamabad.); Wasim Shahid Malik (Quaid-i-Azam University, Islamabad.); Mahmood Khalid (Pakistan Institute of Development Economics, Islamabad.) |
| Abstract: | This study is an attempt to explore the cost of unserved energy due to power outages in Pakistan that started in 2007. The study is based on a survey conducted for four major industrial cities of Punjab—Gujrat, Faisalabad, Gujranwala, and Sialkot. In addition to quantification of output losses, the effect on employment, cost of production, and delay in supply orders are also examined. The output loss is quantified using two-dimensional analyses, controlling for variations in the duration of outages and in the shift hours. The survey data reveal that employment has not suffered any significant drop due to alternative energy arrangements. These arrangements, nevertheless, have increased the production cost of the firms. Delays in the delivery of supply orders are also due to energy shortage. The study reports that the total industrial output loss varies between 12 percent and 37 percent, with Punjab as the major affected province. |
| Keywords: | Energy Crises, Output Loss, Pakistan |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:2011:75&r=ene |
| By: | Alby, Philippe; Dethier, Jean-Jacques; Straub, Stéphane |
| Abstract: | Many developing countries are unable to provide their industrial sector with reliable electric power and many enterprises have to contend with insufficient and unreliable electricity supply. Because of these constraints, enterprises often opt for self-generation even though it is widely considered a second best solution. This paper develops a theoretical model of investment behavior in remedial infrastructure when physical constraints are present. It then tests econometrically implications from this model using a large sample of enterprises from 87 countries from the World Bank enterprise survey database. After showing that these constraints have non-linear effects according to the natural degree of reliance on electricity of an industrial sector and on firm size, the paper draws differentiated policy recommendations. Credit constraints appear to be the priority in sectors very reliant on electricity to spur entry and convergence to the technological frontier while, in other sectors, firms would benefit more widely from marginal improvements in electrical supply. |
| Keywords: | Infrastructure, Electricity, Industrial structure |
| JEL: | H54 L94 L16 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:24948&r=ene |
| By: | Rob Aalbers; Viktoria Kocsis; Victoria Shestalova |
| Abstract: | <p>As distributed generation (DG) continues to expand, larger low-voltage networks will be required in the future. However, regulated distribution network operators (DNOs) need to invest in new infrastructure without knowing a relevant determinant of network costs, the future amount of DG.</p><p>Due to uncertainty, optimal network capacity needs to reflect the expected demand for capacity over all possible DG states. Therefore, not all capacity will be used if a low level of DG occurs. Optimal regulation that is set under asymmetric information about future DG needs to create incentives for the DNO to invest in this 'excess capacity' and also encourage optimal network utilization. In this case, an option menu that includes fixed fees and positive network charges on DG-producers fulfills these requirements and implements the first-best optimum. On the contrary, price-cap and revenue-cap regulation lead to either underinvestment or high information rents to the DNO.</p> |
| JEL: | L12 L51 Q42 Q48 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:192&r=ene |
| By: | Pedro Varela Vázquez; MarÃa del Carmen Sánchez Carreira |
| Abstract: | Nowadays energy constitutes a very important concern of policy and public debate. It is justified by the effects of climate change and the national strategies to be self-sufficient in the supply of energy. Renewable energies are the alternative and public policies could play a key role in their development. Furthermore, those energies have potential to contribute to the endogenous development. In this paper we study the development of wind energy in Galicia (the most important renewable energy in terms of contribution to the energy balance) and the role of public policy in promotion of this type of energy. Its development is a recent phenomena but with a growing relevance, because of their impact in the regional economy. For this reason, we analyse the effects of this sector in the economy (employment, manufacturing production, exports, imports...) Moreover, we also compare the Galician model with the Denmark one, because it has a truly known successful integrated framework, in which, all the economical agents collaborate in order to build a competitive and innovated sector with several spill-over effects. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1485&r=ene |
| By: | Flinkerbusch, Kai |
| Abstract: | From auction theory we know that multi-unit, pay-as-bid auctions in general lead to bid shading and thus to an inefficient allocation. This result is supported by historical data from the German market for balancing power, which show that bidders bid well above their actual costs. In contrast to the pay-as-bid auction, the Vickrey auction has the dominant strategy property and bidders reveal their true opportunity cost. Consequently, the Vickrey auction allocates efficiently. In this article we show how this auction format can facilitate an efficient capacity procurement process in the German reserve market. -- |
| Keywords: | Electricity market,balancing power,uniform-price auction,pay-as-bid auction |
| JEL: | D44 N74 L11 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:52&r=ene |
| By: | Elisabetta Pellini (Surrey Energy Economics Centre (SEEC), Department of Economics, University of Surrey) |
| Abstract: | This paper evaluates the impact on the Italian electricity market of replacing the current explicit auction mechanism with market coupling. Maximizing the use of the cross-border interconnection capacity, market coupling increases the level of market integration and facilitates the access to low-cost generation by consumers located in high-cost generation countries. Thus, it is expected that a high-priced area such as Italy could greatly benefit from the introduction of this mechanism. In this paper, the welfare benefits are estimated under alternative market scenarios for 2012, employing the optimal dispatch model ELFO++. The results of the simulations suggest that the improvement in social surplus is likely to be significant, especially when market fundamentals are tight. |
| Keywords: | Market coupling; market integration; Italian day-ahead electricity market. |
| JEL: | C61 C63 D40 L10 Q40 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:sur:seedps:133&r=ene |
| By: | O'Mahoney, Amy; Denny, Eleanor |
| Abstract: | Electricity market liberalisation has become common practice internationally. The justification for this process has been to enhance competition in a market traditionally characterised by statutory monopolies in an attempt to reduce costs to end-users. This paper endeavours to see whether a pool market achieves this goal of increasing competition and reducing electricity prices. Here the electricity market is set up as a sealed bid second price auction. Theory predicts that such markets should result with firms bidding their marginal cost, thereby resulting in an efficient outcome and lower costs to consumers. The Irish electricity system with a gross pool market experiences among the highest electricity prices in Europe. Thus, we analyse the Irish pool system econometrically in order to test if the high electricity prices seen there are due to participants bidding outside of market rules or out of line with theory. Results indicate that the Irish pool system appears to be working efficiently and that generators are bidding their true marginal costs. Thus, the pool element of the market structure does not explain the high electricity prices experienced in Ireland. |
| Keywords: | Electricity Markets; Auction Theory; Multiple Regression Analysis |
| JEL: | D4 Q4 |
| Date: | 2011–08–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:34847&r=ene |
| By: | Wayne Tarrant |
| Abstract: | In this paper we look at the efficacy of different risk measures on energy markets and across several different stock market indices. We use both the Value at Risk and the Tail Conditional Expectation on each of these data sets. We also consider several different durations and levels for historical risk measures. Through our results we make some recommendations for a robust risk management strategy that involves historical risk measures. |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1111.4421&r=ene |
| By: | Theologos Dergiades (International Hellenic University); Georgios Martinopoulos (International Hellenic University); Lefteris Tsoulfidis (Department of Economics, University of Macedonia) |
| Abstract: | The objective of this paper is to contribute to the understanding of the linear and non-linear causal linkages between total energy consumption and economic activity, making use of annual time series of Greece for the period 1960-2008. Two are the salient features of our study: first, the total energy consumption has been adjusted for qualitative differences among its constituent components through the thermodynamics of energy conversion. In doing so, we rule out the possibility of a misleading inference due to aggregation bias. Second, the investigation of the causal linkage between economic growth and the adjusted for quality total energy consumption is conducted within a non-linear context. Our empirical results reveal significant unidirectional both linear and non-linear causal linkages running from total useful energy to economic growth. These findings may provide valuable information for the contemplation of more effective energy policies with respect to both the consumption of energy and environmental protection. |
| Keywords: | Energy Consumption, Economic Growth, Non-linear causality. |
| JEL: | C14 C22 Q43 Q48 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2011_16&r=ene |
| By: | Cremer, Helmuth; Gahvari, Firouz; Ladoux, Norbert |
| Abstract: | This paper examines if an energy price shock should be compensated by a reduction in energy taxes to mitigate its impact on consumer prices. Such an adjustment is often debated and advocated for redistributive reasons. Our investigation is based on a model that characterizes second-best optimal taxes in the presence of an externality generated by energy consumption. Energy is used by households as a consumption good and by the productive sector as an input. We calibrate this model on US data and proceed to simulations of this empirical model. We assume that energy prices are subject to an exogenous shock. For different levels of this shock, we calculate the optimal tax mix including income, commodity and energy taxes. We show that optimal energy taxes are affected by redistributive consideration and that optimal energy tax is less than the Pigouvian tax (marginal social damage). The difference is an implicit subsidy representing roughly 10% of the Pigouvian price. Interestingly, the simulations show that an variation in the energy price only has an almost negligible effect on this percentage. In other words, even a very large oil price increase will only have a small effect on the optimal tax on energy. Nevertheless, it appears that the energy tax is used to mitigate the impact of the energy shock. However, this result is not explained by redistributive consideration but by the fact that the Pigouvian tax (rate) decreases as the price of energy increases. This is a purely arithmetic adjustment due to the fact that the marginal social dammage does not change. Consequently, the marginal dammage as a percentage of the energy price (which defines the Pigouvian tax rate) decreases as the price increases. |
| JEL: | H21 H23 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:24979&r=ene |
| By: | Alexandra Tabova; Carol L. Baker |
| Abstract: | Non-oil growth in the CFA oil exporting countries has been lackluster despite their great natural resource wealth. In this paper we study the key determinants of non-oil growth and explore to what extent these countries differ from countries with comparable levels of development that do not depend on nonrenewable resources. Using a panel of 38 countries comprising LICs and CFA zone oil exporters, we find that while real exchange rate appreciation negatively impacted growth in all countries over the period 1985-2008, what distinguishes the oil producers of the CFA zone is the failure of public and private investment to spur non-oil growth. |
| Keywords: | Cross country analysis , Economic growth , Economic models , Low-income developing countries , Nonoil sector , Oil exporting countries , Private investment , Public investment , |
| Date: | 2011–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:11/233&r=ene |
| By: | Nicola Brandt; Rodrigo Paillacar |
| Abstract: | With slow growth and high inequality Mexico needs investments in infrastructure, education and social policies. Mexico has increased spending in all of these areas. This was easily financed thanks to fiscal reforms in 2007 and 2009 as well as high oil prices in recent years. Oil revenues, which account for around one third of budgetary receipts, are highly volatile, especially due to price movements, and the prospects for production are uncertain, even though less so than in previous years. Mexico has the lowest tax revenues as a share of GDP in the OECD and much of Latin America, even when oil-related revenues are included. The government should improve the efficiency of its public spending. Mexico spends significant sums on energy subsidies, which are in large part captured by higher-income groups. Moreover, these subsidies are not in line with Mexico’s ambitious goals to reduce greenhouse gas (GHG) emissions. These subsidies should be gradually withdrawn in line with the government’s goals. Extending cash benefits to the poor instead would be much more efficient to fight poverty and help citizens and the economy as a whole to buffer income shocks. Agricultural spending should be re-structured to finance more investment in public goods and less support for producers, which has proven ineffective in increasing agricultural productivity. Broadening the tax base by withdrawing some of the most distortive tax expenditures would make an important contribution to strengthen revenues. This would also help make the tax system simpler, thus reducing compliance costs as well as opportunities for tax avoidance and evasion. Efforts to enhance tax enforcement should continue.<P>Une réforme des finances publiques pour une économie mexicaine plus forte, plus juste et plus saine<BR>With slow growth and high inequality Mexico needs investments in infrastructure, education and social policies. Mexico has increased spending in all of these areas. This was easily financed thanks to fiscal reforms in 2007 and 2009 as well as high oil prices in recent years. Oil revenues, which account for around one third of budgetary receipts, are highly volatile, especially due to price movements, and the prospects for production are uncertain, even though less so than in previous years. Mexico has the lowest tax revenues as a share of GDP in the OECD and much of Latin America, even when oil-related revenues are included. The government should improve the efficiency of its public spending. Mexico spends significant sums on energy subsidies, which are in large part captured by higher-income groups. Moreover, these subsidies are not in line with Mexico’s ambitious goals to reduce greenhouse gas (GHG) emissions. These subsidies should be gradually withdrawn in line with the government’s goals. Extending cash benefits to the poor instead would be much more efficient to fight poverty and help citizens and the economy as a whole to buffer income shocks. Agricultural spending should be re-structured to finance more investment in public goods and less support for producers, which has proven ineffective in increasing agricultural productivity. Broadening the tax base by withdrawing some of the most distortive tax expenditures would make an important contribution to strengthen revenues. This would also help make the tax system simpler, thus reducing compliance costs as well as opportunities for tax avoidance and evasion. Efforts to enhance tax enforcement should continue. |
| Keywords: | taxation, public spending, energy subsidies, fiscalité, dépenses publiques, subvention énergétiques |
| JEL: | H3 H4 H7 |
| Date: | 2011–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:904-en&r=ene |
| By: | Chia-Lin Chang (Department of Applied Economics, Department of Finance, National Chung Hsing University Taichung, Taiwan); Michael McAleer (Econometrisch Instituut (Econometric Institute), Faculteit der Economische Wetenschappen (Erasmus School of Economics), Erasmus Universiteit, Tinbergen Instituut (Tinbergen Institute).; Division of Marketing and International Business, Nanyang Technological University, Singapore.); Roengchai Tansuchat (Faculty of Economics Maejo University Chiang Mai, Thailand) |
| Abstract: | This paper investigates the conditional correlations and volatility spillovers between the crude oil and financial markets, based on crude oil returns and stock index returns. Daily returns from 2 January 1998 to 4 November 2009 of the crude oil spot, forward and futures prices from the WTI and Brent markets, and the FTSE100, NYSE, Dow Jones and S&P500 stock index returns, are analysed using the CCC model of Bollerslev (1990), VARMA-GARCH model of Ling and McAleer (2003), VARMA-AGARCH model of McAleer, Hoti and Chan (2008), and DCC model of Engle (2002). Based on the CCC model, the estimates of conditional correlations for returns across markets are very low, and some are not statistically significant, which means the conditional shocks are correlated only in the same market and not across markets. However, the DCC estimates of the conditional correlations are always significant. This result makes it clear that the assumption of constant conditional correlations is not supported empirically. Surprisingly, the empirical results from the VARMA-GARCH and VARMA-AGARCH models provide little evidence of volatility spillovers between the crude oil and financial markets. The evidence of asymmetric effects of negative and positive shocks of equal magnitude on the conditional variances suggests that VARMA-AGARCH is superior to VARMA-GARCH and CCC. The estimation and analysis of the volatility and conditional correlations between crude oil returns and stock index returns can provide useful information for investors, oil traders and government agencies that are concerned with the crude oil and stock markets, especially regarding optimal hedging across the two markets. |
| Keywords: | Multivariate GARCH, volatility spillovers, conditional correlations, crude oil prices, spot, forward and futures prices, stock indexes. |
| JEL: | C22 C32 G32 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:doicae:1134&r=ene |
| By: | Steinbuks, Jevgenijs; Hertel, Thomas |
| Abstract: | This study analyzes the optimal allocation of the world's land resources over the course of the next century in the dynamic forward-looking framework, which brings together distinct strands of economic, agronomic, and biophysical literature and incorporates key drivers affecting global landuse. We show that, while some deforestation is optimal in the near term, the desirability of further deforestation is elimated by mid-century under the baseline scenario. While the adverse productivity shocks from climate change have a modest effect on global land use, when combined with high growth in energy prices they lead to significant deforestation and higher GHG emissions than in the baseline. Imposition of GHG emissions constraint further heightens the competition for land, as fertilizer use declines and land-based mitigation strategies expand. However, the effectiveness of such a pre-announced constraint is completely diluted by intertemporal substitution of deforestation which accelerates prior to imposition of the target. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:gta:workpp:3735&r=ene |
| By: | Marcella Drummond; Felix Mora-Camino; Luis Gustavo Cruz; Amaranto Pereira |
| Abstract: | An approach to assess the impact of the creation or expansion of an air transport infrastructure over regional development is proposed in this paper. Effective long term planning of this costly investment requires performing an overall analysis of socio-economic consequences through long term forecasting, scenario generation and risk analysis. One of main aspects of this task is related with the estimation of future demand over the modified transportation network which attends the considered region. The proposed approach makes use of two complementary models: One model is devoted to demand forecasting taking into account the modified accessibility of the multimodal transportation network, the other one defines the global transport supply according to a profit maximization behavior for the involved transport system. The demand forecasting process is based on an entropy maximization approach with flexible origin-destination levels to determine the intensity and the distribution of new origin-destination vectors. A two level solution technique considering vehicle flows at the first level and the payload/passengers flows at the second level is introduced. The proposed solution scheme is composed of an iterative process between the current solution for demand forecasting and the supply optimization problem: the entropy maximizing distribution problem provides the origin-destination matrix given a cost/capacity structure, while the supply optimization problem provides this cost/capacity structure resulting from the accessibility level, given the updated origin-destination vectors. The proposed approach is illustrated in the case of a fast developing rural agro-industrial area in central Brazil, where the consequences of the installation of a medium size airport are assessed. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p891&r=ene |
| By: | Acemoglu, Daron; Aghion, Philippe; Bursztyn, Leonardo; Hemous, David |
| Abstract: | This paper introduces endogenous and directed technical change in a growth model with environmental constraints. A unique final good is produced by combining inputs from two sectors. One of these sectors uses "dirty" machines and thus creates environmental degradation. Research can be directed to improving the technology of machines in either sector. We characterize dynamic tax policies that achieve sustainable growth or maximize intertemporal welfare. We show that: (i) in the case where the inputs are sufficiently substitutable, sustainable long-run growth can be achieved with temporary taxation of dirty innovation and production; (ii) optimal policy involves both .carbon taxes. and research subsidies, so that excessive use of carbon taxes is avoided; (iii) delay in intervention is costly: the sooner and the stronger is the policy response, the shorter is the slow growth transition phase; (iv) the use of an exhaustible resource in dirty input production helps the switch to clean innovation under laissez-faire when the two inputs are substitutes. Under reasonable parameter values and with sufficient substitutability between inputs, it is optimal to redirect technical change towards clean technologies immediately and optimal environmental regulation need not reduce long-run growth. |
| Keywords: | directed technological change; environment; exhaustible resources; innovation |
| JEL: | C65 O30 O31 O33 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8660&r=ene |
| By: | Muhammad, Shahbaz Shabbir; Muhammad, Zeshan; Muhammad, Shahbaz |
| Abstract: | Any rise in real GDP crafts higher energy demand in Pakistan. This short-term rising energy requirement is fulfilled with the help of nonrenewable and renewable energy consumption, but nonrenewable energy consumption adds more in it. The rise in nonrenewable energy consumption lifts real GDP up in short-run. Forecast error variance decomposition illustrates nonrenewable energy consumption alone passes 87% variation in the CO2 emissions. This verifies fossil fuels are accountable for environmental degradation in Pakistan. The CO2 emissions worsen economic activity, real GDP falls but renewable energy consumption augments. This elevation in renewable energy consumption is the proof of stabilization efforts that are being initiated by official authorities as CO2 emissions reach to alarming level. The rise in renewable energy consumption boosts economic activity, and real GDP breeds. Most of times, an increase in renewable energy consumption is an effort to substitute it with nonrenewable energy consumption, resulting in lower level of CO2 emissions. |
| Keywords: | Energy Consumption; Real GDP; CO2 Emissions |
| JEL: | Q4 |
| Date: | 2011–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:34859&r=ene |
| By: | Massimiliano Mazzanti; Valeria Costantini; Susanna Mancinelli; Massimilano Corradini |
| Abstract: | We model investment decisions regarding innovation and emissions abatement in a dynamic theoretical framework. Considering knowledge stock as an impure public good, we study the reaction function between one representative agent’s investments in innovation and the other agents’ investments in the public characteristic of the impure public good. We demonstrate that the reaction function has a positive slope under general conditions and that its sensitiveness is affected by assumptions on the elasticity of substitution in the benefit function. The positivity of the reaction function is then empirically tested in an econometric estimation. We exploit an original sector-based database by gathering innovation efforts as well as polluting emissions and economic dimensions over the time span 1996-2005 for 15 European countries and 23 manufacturing sectors. Empirical results show that sector-based innovation investment is positively driven by the public characteristics provided by other sectors. Different reactivity strength for different polluting emissions also allows us to disclose the role of complementarity in agents’ decisions. |
| Keywords: | impure public goods; environmental externalities; innovation spillovers |
| JEL: | D21 H41 O33 Q53 Q55 |
| Date: | 2011–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:udf:wpaper:201117&r=ene |
| By: | Dinda, Soumyananda |
| Abstract: | This study focuses on trade opportunities of climate smart goods and technologies (CSGT) in Asia. Paper mainly highlights the export gaps for climate smart goods and technologies (CSGT) in Asia and identifies the trade opportunities among trade partners in intraregional and interregional. Applying the gravity model we estimate the export gap for the CSGT as the difference between the actual bilateral export flow and the mean value predicted by the model. In other words, ‘export gap’ is the difference between the actual and predicted export value. There is a scope to increase the export of climate smart goods and technologies with trading partners when the actual trade is below the predicted value ( i.e., negative value of the export gap). This gap actually provides the opportunity to raise the trade and attracting investment in CSGT sector and thereby development takes place. This paper also identifies the export gaps in CSGT for each regional member in its trade with partners within the region, EU, and North America (i.e., the US and Canada). This study contributes to the empirical literature in terms of measuring and identifying the potential trade opportunity of CGST in Asia. |
| Keywords: | Climate Change; Business and Development; Bilateral trade flow; Climate Smart Goods and Technologies; Gravity model; Export gap; Potential Trade; China; India; Asia |
| JEL: | C13 F18 O53 Q56 C01 M21 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:34883&r=ene |
| By: | Menny, Claas; Osberghaus, Daniel; Pohl, Max; Werner, Ute |
| Abstract: | In two empirical surveys in Germany the link between the information respondents have about climate change and their risk perception of the phenomenon was analysed. We found that a better understanding of the effects of climate change might lead to a decrease of the perceived hazard. In contrast, a high self-declared knowledge about climate change might correspond with higher risk perception. Further factors affecting the risk perception of climate change are gender, experience of extreme weather events and trust in external aid. Surprisingly, information campaigns based on scientific facts are not effective for increasing risk perception and willingness to insure. Higher risk perception might induce higher interest in precautionary measures like insurance. -- |
| Keywords: | Climate Change,Knowledge Illusion,Insurance,Risk Perception,Information,Psychometric paradigm |
| JEL: | Q54 Q58 D83 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11060&r=ene |
| By: | Martimort, David; Sand-Zantman, Wilfried |
| Abstract: | We analyze environmental agreements in contexts with asymmetric information, voluntary participation by sovereign countries and possibly limited enforcement. Taking a mechanism design perspective, we study how countries can agree on effort levels and compensations to take into account multilateral externalities. We delineate conditions for efficient agreements and trace out possible inefficiencies to the conjectures that countries hold following disagreement. We show how optimal mechanisms admit simple approximations with attractive implementation properties. Finally, we also highlight how limits on commitment strongly hinder performances of optimal mechanisms. |
| JEL: | D82 |
| Date: | 2011–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:24932&r=ene |
| By: | Beccherle, Julien; Tirole, Jean |
| Abstract: | The Kyoto and Copenhagen Protocols on climate change mitigation postponed the specification of binding commitments to a future negotiation. This paper analyzes the strategic implications of delayed negotiations. While, as iswell-understood, the incentive to free ride leads to excessive emissions prior to a binding agreement, the cost of delay is magnified by players’ attempt to secure a favorable bargaining position in the future negotiation. A “brinkmanship”, an “effort rebalancing”, and a “raising rival’s cost” effects all concur to generate high post-agreement emissions. The paper applies this general insight to a variety of policy instruments, from the issuance of forward or bankable permits to standards and green investment policies. |
| Keywords: | International negotiations, climate change, cap and trade, bankable permits, standards |
| JEL: | D62 F51 H23 Q52 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:22587&r=ene |