|
on Energy Economics |
|
Issue of 2011‒12‒19
forty-five papers chosen by Roger Fouquet Basque Climate Change Centre, Bilbao, Spain |
| By: | Baumeister, Christiane; Kilian, Lutz |
| Abstract: | Recently, there has been increased interest in real-time forecasts of the real price of crude oil. Standard oil price forecasts based on reduced-form regressions or based on oil futures prices do not allow consumers of forecasts to explore how much the forecast would change relative to the baseline forecast under alternative scenarios about future oil demand and oil supply conditions. Such scenario analysis is of central importance for end-users of oil price forecasts interested in evaluating the risks underlying these forecasts. We show how policy-relevant forecast scenarios can be constructed from recently proposed structural vector autoregressive models of the global oil market and how changes in the probability weights attached to these scenarios affect the upside and downside risks embodied in the baseline real-time oil price forecast. Such risk analysis helps forecast users understand what assumptions are driving the forecast. An application to real-time data for December 2010 illustrates the use of these tools in conjunction with reduced-form vector autoregressive forecasts of the real price of oil, the superior real-time forecast accuracy of which has recently been established. |
| Keywords: | Forecast; Oil price; Predictive density; Real time; Risk; Scenario analysis; VAR |
| JEL: | C53 E32 Q43 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8698&r=ene |
| By: | Christiane Baumeister; Gert Peersman |
| Abstract: | There has been a systematic increase in the volatility of the real price of crude oil since 1986, followed by a decline in the volatility of oil production since the early 1990s. We explore reasons for this evolution. We show that a likely explanation of this empirical fact is that both the short-run price elasticities of oil demand and of oil supply have declined considerably since the second half of the 1980s. This implies that small disturbances on either side of the oil market can generate large price responses without large quantity movements, which helps explain the latest run-up and subsequent collapse in the price of oil. Our analysis suggests that the variability of oil demand and supply shocks actually has decreased in the more recent past preventing even larger oil price fluctuations than observed in the data. |
| Keywords: | Econometric and statistical methods; International topics |
| JEL: | E31 E32 Q43 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:11-28&r=ene |
| By: | Juan Pedro Treviño |
| Abstract: | The paper employs a heuristic comparative approach suggested by Ismail (2009) to search for evidence of Dutch disease in oil-rich countries of the Central African Economic and Monetary Community (CEMAC). While these countries have benefitted from high international oil prices in recent years, they have also experienced relatively large real exchange rate appreciations, raising concerns regarding the presence of Dutch disease and casting doubts on their ability to achieve high growth and employment in the long run. To isolate from any dynamics related to the exchange rate regime, we focus on the 14 member countries that constitute the CFA franc zone. We separate them into net oil importers and net oil exporters and look at economic growth, the real exchange rate, and the agricultural and external sectors. Based on traditional models, our findings are broadly consistent with the presence of Dutch disease in the second group during the oil-price boom. Departing from these models yields mixed results, suggesting the need to employ a case-by-case approach. |
| Keywords: | Agricultural sector , Central African Economic and Monetary Community , Cross country analysis , Exchange rate appreciation , Exchange rate regimes , Global competitiveness , Imports , Oil exporting countries , Oil prices , Oil sector , Real effective exchange rates , |
| Date: | 2011–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:11/268&r=ene |
| By: | Chittedi, Krishnareddy |
| Abstract: | This paper investigates the long run relationship between oil prices and stock prices for India over the period April 2000- June 2011. We employ Auto Regressive Distributed Lag (ARDL) Model that takes into consideration the long run relationship. The results obtained suggest that volatility of stock prices in India have a significant impact on the volatility of oil prices. But a change in the oil prices does not have impact on stock prices. |
| Keywords: | Oil Prices; Stock prices; ARDL cointegration |
| JEL: | E44 G10 |
| Date: | 2011–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35334&r=ene |
| By: | Mohaddes, K.; Raissi, M. |
| Abstract: | This paper extends the long-run growth model of Esfahani et al. (2009) to a labour exporting country that receives large inflows of external income - the sum of remittances, FDI and general government transfers - from major oil exporting economies. The theoretical model predicts real oil prices to be one of the main long-run drivers of real output. Using quarterly data between 1979 and 2009 on core macroeconomic variables for Jordan and a number of key foreign variables, we identify two long-run relationships: an output equation as predicted by theory and an equation linking foreign and domestic inflation rates. It is shown that real output in the long run is shaped by (i) oil prices through their impact on external income and in turn on capital accumulation, and (ii) technological transfers through foreign output. The empirical analysis of the paper confirms the hypothesis that a large share of Jordan's output volatility can be associated with fluctuations in net income received from abroad. External factors, however, cannot be relied upon to provide similar growth stimuli in the future, and therefore it will be important to diversify the sources of growth in order to achieve a high and sustained level of income. |
| JEL: | C32 C53 E17 F43 F47 Q32 |
| Date: | 2011–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1164&r=ene |
| By: | Paresh Kumar Narayan; Susan Sunila Sharma |
| Abstract: | In this note, we consider the relationship between oil price volatility and firm returns for 560 firms listed on the New York Stock Exchange. Using daily time series data from 2000 to 2008, we find that oil price volatility increases firm returns for the majority of the firms in our sample. |
| Keywords: | Investment, oil price, volatility, |
| Date: | 2011–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:dkn:ecomet:fe_2011_14&r=ene |
| By: | Malliaris, A.G.; Malliaris, Mary |
| Abstract: | This paper investigates inter-relationships among the price behavior of oil, gold and the euro using time series and neural network methodologies. Traditionally gold is a leading indicator of future inflation. Both the demand and supply of oil as a key global commodity are impacted by inflationary expectations and such expectations determine current spot prices. Inflation influences both short and long-term interest rates that in turn influence the value of the dollar measured in terms of the euro. Certain hypotheses are formulated in this paper and time series and neural network methodologies are employed to test these hypotheses. We find that the markets for oil, gold and the euro are efficient but have limited inter-relationships among themselves. |
| Keywords: | Oil; Gold; the Euro; Relationships; Time-series Analysis; Neural Network Methodology |
| JEL: | G14 Q41 G15 |
| Date: | 2011–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35266&r=ene |
| By: | van der Ploeg, Frederick; Venables, Anthony J. |
| Abstract: | Many countries have failed to use natural resource wealth to promote growth and development. They have been damaged by volatility of revenues, have failed to save a sufficiently high proportion of their resource revenues and failed to make high return investments to support diversification of their economies. This paper explores the reasons for these failures and discusses policies to improve performance. |
| Keywords: | absorptive capacity; Dutch disease; fiscal rules; managing windfalls; public investment; resource curse; volatility |
| JEL: | E60 F34 F35 F43 H21 H63 O11 Q33 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8694&r=ene |
| By: | Wiebelt, Manfred; Pauw, Karl; Matovu, John Mary; Twimukye, Evarist; Benson, Todd |
| Abstract: | With the recent discovery of crude oil reserves along the Albertine Rift, Uganda is set to establish itself as an oil producer in the coming decade. Total oil reserves are believed to be two billion barrels, with recoverable reserves estimated at 0.8–1.2 billion barrels. At peak production, likely to be reached by 2017, oil output will range from 120,000 to 210,000 barrels per day, with a production period spanning up to 30 years. Depending on the exact production levels, the extraction period, the future oil price, and revenue sharing agreements with oil producers, the Ugandan government is set to earn revenue equal to 10–15 percent of GDP at peak production. The discovery of crude oil therefore has the potential to provide significant stimulus to the Ugandan economy and address its development objectives. However, this is subject to careful management of oil revenues to avoid the potential pitfall of a sudden influx of foreign exchange. Dominating the concerns is the potential appreciation in the real exchange rate and subsequent loss of competitiveness in the nonresource tradable goods sectors such as agriculture or manufacturing (Dutch Disease). These sectors are often major employers in developing countries and the engines of growth. Several mitigation measures can be employed by government to counter Dutch Disease, including measures that directly counter the real exchange rate appreciation or measures that offer direct support to traditional export sectors in the form of subsidies. |
| Keywords: | crude oil, agricultural competitiveness, general equilibrium modeling, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1122&r=ene |
| By: | Jean Pierre Allegret; Mohamed Tahar Benkhodja |
| Abstract: | To investigate the dynamic effect of external shocks on an oil exporting economy, we estimate, using Bayesian approach, a DSGE model based on the features of the Algerian economy. The main purpose is to investigate the dynamic effect of four external shocks (oil price shock, USD/EUR exchange rate shock, international inflation shock and international interest rate shock) and to examine the appropriate monetary policy strategy for Algerian economy, given its structural characteristics and the pattern of the external shocks. We analyze the impulse response functions of our external shocks according to alternative monetary rules. The welfare cost associated with each monetary policy rule has been considered. Our main findings show that, over the period 1990Q1-2010Q4, core inflation monetary rule allows better to stabilize both output and inflation. This rule also appears to be the best way to improve a social welfare. |
| Keywords: | Monetary policy, external shocks, oil exporting economy, Algeria, DSGE model. |
| JEL: | E3 E5 F4 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2011-39&r=ene |
| By: | Agus Budiyono (Ministry of Internal Affairs of Indonesia); Ryuta Ray Kato (International University of Japan) |
| Abstract: | We numerically examine the impact of the actually implemented reduction policy of the subsidy to the petroleum sector by using a static CGE model with the latest input-output table of Indonesia of year 2008. Our simulation results indicate that the Indonesian economy suffered from the actually implemented policy with a welfare loss of 28,417.78 billion rupiah even with the conversion policy. Furthermore, the proposed future reduction policy by the Ministry of Finance would unavoidably result in a welfare loss even when the government continues the current conversion policy. However, our simulation results also suggest that a new future conversion policy with a slightly additional subsidy to the LPG sector would eventuate in completely offsetting the negative effect of the proposed plan on the future welfare with an expanding government expenditure. |
| Keywords: | Computable General Equilibrium (CGE) Model, Petroleum, Subsidy, Welfare, Simulation |
| JEL: | C68 D57 D58 D60 E17 H53 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2011_25&r=ene |
| By: | Wallander, Steven; Claassen, Roger; Nickerson, Cynthia J. |
| Abstract: | The recent 9-billion-gallon increase in corn-based ethanol production, which resulted from a combination of rising gasoline prices and a suite of Federal bioenergy policies, provides evidence of how farmers altered their land-use decisions in response to increased demand for corn. As some forecasts had suggested, corn acreage increased mostly on farms that previously specialized in soybeans. Other farms, however, offset this shift by expanding soybean production. Farm-level data reveal that the simultaneous net expansion of corn and soybean acreage resulted from a reduction in cotton acreage, a shift from uncultivated hay to cropland, and the expansion of double cropping (consecutively producing two crops of either like or unlike commodities on the same land within the same year). |
| Keywords: | Agricultural Resource Management Survey (ARMS), bioenergy, ethanol, indirect effects, land use, corn production, environmental impacts, Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersib:117982&r=ene |
| By: | Taheripour, Farzad; Thomas Hertel; Jing Liu |
| Abstract: | In recent years there has been a flurry of activity aimed at evaluating the land use consequences of biofuels programs and the associated carbon releases. In this paper we argue that these studies have tended to underestimate the ensuing land use emissions, because they have ignored the role of irrigation, and associated constraints on cropland expansion. In this paper, we develop a new general equilibrium model which distinguishes irrigated and rainfed cropping industries at a global scale. Using the new model we evaluate the implications of land use change due to US ethanol programs, in the context of physical constraints on the expansion of irrigated cropland. We find that models which mingle irrigated and rainfed areas underestimate the global land use changes induced due to the US ethanol expansion by about 5.7%. They tend to underestimate the corresponding land use emissions by more than one fifth. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:gta:workpp:3743&r=ene |
| By: | Felix Groba; Joe Indvik; Steffen Jenner |
| Abstract: | In the last two decades, feed-in tariffs (FIT) and renewable portfolio standards (RPS) have emerged as two of the most popular policies for supporting renewable electricity (RES-E) generation in the developed world. A few studies have assessed their effectiveness, but most do not account for policy design features and market characteristics that influence policy strength. In this paper, we employ 1992-2008 panel data to conduct the first analysis of the effectiveness of FIT policies in promoting solar photovoltaic (PV) and onshore wind power development in 26 European Union countries. We develop a new indicator for FIT strength that captures variability in tariff size, contract duration, digression rate, electricity price, and electricity generation cost to estimate the resulting return on investment. We then regress this indicator on added RES-E capacity using a fixed effects specification. We find that FIT policies have driven solar PV and onshore wind capacity development in the EU. However, this effect is overstated without controls for country characteristics and may be concealed without accounting for the unique design of each policy. We provide empirical evidence that the interaction of policy design and market dynamics are more important determinants of RES-E development than policy enactment alone. |
| Keywords: | Renewable energy, Feed-in tariff, Panel data models |
| JEL: | C23 H23 Q42 Q48 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1176&r=ene |
| By: | Mauritzen, Johannes (Research Institute of Industrial Economics (IFN)) |
| Abstract: | High levels of wind power penetration will tend to affect prices in a deregulated electricity market. Much of the analysis in the literature has focused on the effect that wind power has on average electricity prices, this paper attempts to test the effect that wind power production has on the variability of wholesale electricity prices in the spot market. I use a simple distributed lag econometric model and five years worth of hourly and daily data from Denmark, which is one of the few places with a long history of significant wind power penetration. I show that wind power has the effect of reducing intra-day variability but that this result only partially carries over to price variation over weekly time windows. I suggest that the reduction in price variability in turn is due to a steeper supply schedule at peak-load times. |
| Keywords: | Wind Power; Nordic Electricity Market; Empirical; Time Series |
| JEL: | C22 G30 L94 |
| Date: | 2011–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0889&r=ene |
| By: | Rüdiger Pethig |
| Abstract: | A small open economy operates a carbon emission trading scheme and subsidizes green energy. Taking cap-and-trade as given, we seek to explain the subsidy as the outcome of a trilateral tug of war between the ‘green’ energy industry, the ‘black’ energy industry and consumers. With parametric functions we fully solve the competitive economic equilibrium and the lobbying Nash equilibrium. We show how the resultant subsidy depends on the political influence of all three lobbying groups and we trace its determinants. Whether consumers have ‘green preferences’ turns out to be crucial for the results. |
| Keywords: | green preferences, fossil fuel, green energy, green energy subsidy,cap-and-trade, overlapping regulation, competitive lobbying |
| JEL: | Q42 Q43 Q52 Q54 D72 D78 H23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sie:siegen:150-11&r=ene |
| By: | Décio Gazzoni; Gabriel Blanco; Isaias Macedo; Arturo Morales-Acevedo; Anibal Borroto |
| Abstract: | The overall purpose of this study is to help foster the production and use of renewable energy in Latin America and the Caribbean and develop feasible and widely accepted energy efficiency models, by supporting R&D networks aiming to developing and transferring state of the art technology, adapted to the region, on a sustainable basis, considering environmental, economic and social aspects. The document provides an overview of several renewable energy technologies, including present status, potentialities and prospective scenarios; research priorities and potential innovation networks. |
| Keywords: | Energy & Mining :: Energy Efficiency, Energy & Mining :: Renewable Energy, Environment & Natural Resources :: Climate Change, Science & Technology :: New Technologies, Science & Technology :: Research & Development |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:34618&r=ene |
| By: | Boris Solier (Paris-Dauphine University (LEDa-CGEMP), Climate Economics Chair and ADEME.); Pierre-André Jouvet (EconomiX-CNRS, University of Paris Ouest, and Climate Economics Chair) |
| Abstract: | This article investigates the link between wholesale electricity prices in Europe and the CO2 cost, i.e. the price of the European Union Allowances (EUA), over the two first phases of the EU ETS. We set up a theoretical and an empirical model to estimate to what extent daily fluctuations of CO2 costs may have impacted electricity prices. Regarding estimation results for the first phase of the EU ETS, about 42% of estimated pass-through rates appear to be statistically significant, while only one third of them are statistically different from zero in the second phase. We try to improve those results by proposing alternatives estimates based on the compliance periods of the EU ETS. |
| Keywords: | EU ETS, CO2 costs pass-through, Electricity prices, Spot markets |
| JEL: | C22 C58 G1 L94 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1108&r=ene |
| By: | Ma, Chunbo; Zhao, Xiaoli; Ma, Qian; Zhao, Yue |
| Abstract: | In the past three decades, Chinese electricity industry has experienced a series of regulatory reforms serving different purposes at different stages. In 2002, the former vertically integrated electricity utility - the State Power Corporation (SPC) â was divested and the generation sector was separated from the transmission and distribution networks in an effort to improve production efficiency. In this paper we study the impact of the reform on efficiency of fossil-fired power plants using plant-level data during 2000-2008. Our results from the data envelopment analysis (DEA) and panel regressions show that: 1) the total factor productivity (TFP) growth mainly comes from technological change; 2) the technical efficiency of previously SPC-managed power plants is converging to that of better-performing independent power producers (IPPs); 3) capacity utilization and unit size are significant factors affecting changes in technical efficiency and the pattern of converging technical efficiency between the two kinds of power plants; 4) most plants operate at increasing returns to scale indicating further cost savings could be achieved through increasing output. |
| Keywords: | Efficiency, DEA, Malmquist Index, China, Electricity, Industrial Organization, Productivity Analysis, Resource /Energy Economics and Policy, D24, L11, L51, L94, L98, |
| Date: | 2011–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:117811&r=ene |
| By: | Zhao, Xiaoli; Li, Na; Ma, Chunbo |
| Abstract: | Residential energy consumption (REC) is the second largest energy use category (10%) in China and urban residents account for most of the REC. Understanding the underlying drivers of variations of urban REC thus helps to identify challenges and opportunities and provide advices for future policy measures. This paper applies the logarithmic mean Divisia index (LMDI) to a decomposition of Chinaâs urban REC during the period of 1998-2007 at disaggregated product/activity level using data collected from a wide range of sources. Our results have shown an extensive structure change towards a more energy-intensive household consumption structure as well as an intensive structure change towards high-quality and cleaner energy such as electricity, oil, and natural gas, which reflects a changing life style and consumption mode in pursuit of a higher level of comfort, convenience and environmental protection. We have also found that Chinaâs price reforms in the energy sector have contributed to a reduction of REC while scale factors including increased urban population and income levels have played a key role in the rapid growth of REC. We suggest that further deregulation in energy prices and regulatory as well as voluntary energy efficiency and conservation policies in the residential sector should be promoted. |
| Keywords: | Residential Energy Consumption, Index Decomposition Analysis (IDA), China, Consumer/Household Economics, Resource /Energy Economics and Policy, Q32, Q43, |
| Date: | 2011–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:117810&r=ene |
| By: | Kostka, Genia; Moslener, Ulf; Andreas, Jan G. |
| Abstract: | This paper analyzes barriers for energy efficiency investments for small-and medium-sized enterprises (SMEs) in China. Based on a survey of 480 SMEs in Zhejiang Province, this study assesses financial, informational, and organizational barriers for energy efficiency investments in the SME sector. The conventional view has been that the lack of appropriate financing mechanisms particularly hinders SMEs to adopt cost-effective energy efficiency measures. As such, closing the financing gap for SMEs is seen as a prerequisite in order to promote energy efficiency in the sector. The econometric estimates of this study, however, suggest that access to information is an important determinant of investment outcomes, while this is less clear with respect to financial and organizational factors. More than 40 percent of enterprises in the sample declared that that they are not aware of energy saving equipments or practices in their respective business area, indicating that there are high transaction costs for SMEs to gather, assess, and apply information about energy saving potentials and relevant technologies. One implication is that the Chinese government may assume an active role in fostering the dissemination of energy-efficiency related information in the SME sector. -- |
| Keywords: | energy efficiency,SMEs,China,energy policies,information access |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fsfmwp:178&r=ene |
| By: | Briceno-Garmendia, Cecilia; Shkaratan, Maria |
| Abstract: | This is the first paper to build a comprehensive empirical picture of power pricing practices across Sub-Saharan Africa, based on a new database of tariff structures in 27 countries for the years 2004-2008. Using a variety of quantitative indicators, the paper evaluates the performance of electricity tariffs against four key policy objectives: recovery of historic power production costs, efficient signaling of future power production costs, affordability to low income households, and distributional equity. As regards cost recovery, 80 percent of the countries in the sample fully recover operating costs, while only around 30 percent of the countries are practicing full recovery of capital costs. However, due to the fact that future power development may be based on a shift toward more economic technologies than those available in the past, existing tariffs look as though they would be consistent with Long Run Marginal Costs in nearly 40 percent of countries and hence provide efficient pricing signals. As regards affordability, today's average effective tariffs are affordable for 90 percent of today's customers. However, they would only be affordable for 25 percent of households that remain unconnected to the grid. Tariffs consistent with full recovery of economic costs would be affordable for 70 percent of the population. As regards equity, the highly regressive patterns of access to power services, ensure that subsidies delivered through electricity tariffs are without exception also highly regressive in distributional incidence. The conclusion is that achieving all four of these policy objectives simultaneously is almost impossible in the context of the high-cost low-income environment that characterizes much of SSA today. Hence most countries find themselves caught between cost recovery and affordability. |
| Keywords: | International Trade and Trade Rules,Energy Production and Transportation,Infrastructure Economics,Debt Markets,Trade Policy |
| Date: | 2011–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5904&r=ene |
| By: | Gao, Hang; Van Biesebroeck, Johannes |
| Abstract: | We study whether the 2002 deregulation and vertical unbundling of the Chinese electricity sector has boosted productivity in the generation segment of the industry. Controlling explicitly for sources of price-heterogeneity across firms and for firm-fixed effects, we find deregulation to be associated with a reduction in labor input and material use of 6 and 4 percent, respectively. This effect only appears two years after the reforms, is robust to alternative ways of identifying restructured firms, and to the nonrandom selection of restructured firms using a matching estimator. Input use of new state-owned firms that start operations two years into the reform period does not differ significantly anymore from input use of private sector entrants. |
| Keywords: | Productivity; regulation |
| JEL: | L5 L9 O4 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8695&r=ene |
| By: | John Foster (Department of Economics, University of Queensland); Liam Wagner (Department of Economics, University of Queensland); Ariel Liebman (Department of Economics, University of Queensland) |
| Abstract: | The overall goal of Project 2 has been to provide a comprehensive understanding of the impacts of distributed energy (DG) on the Australian Electricity System. The research team at the UQ Energy Economics and Management Group (EEMG) has constructed a variety of sophisticated models to analyse the various impacts of significant increases in DG. These models stress that the spatial configuration of the grid really matters - this has tended to be neglected in economic discussions of the costs of DG relative to conventional, centralized power generation. The modelling also makes it clear that efficient storage systems will often be critical in solving transient stability problems on the grid as we move to the greater provision of renewable DG. We show that DG can help to defer of transmission investments in certain conditions. The existing grid structure was constructed with different priorities in mind and we show that its replacement can come at a prohibitive cost unless the capability of the local grid to accommodate DG is assessed very carefully. |
| Keywords: | Distributed Generation. Energy Economics, Electricity Markets, Renewable Energy |
| JEL: | Q40 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqeemg:08&r=ene |
| By: | John Foster (Department of Economics, University of Queensland); Liam Wagner (Department of Economics, University of Queensland); Phil Wild (Department of Economics, University of Queensland); Junhua Zhao (Department of Economics, University of Queensland); Lucas Skoofa; Craig Froome |
| Abstract: | The overall goal of Project 2 has been to provide a comprehensive understanding of the impacts of distributed energy (DG) on the Australian Electricity System. The research team at the UQ Energy Economics and Management Group (EEMG) has constructed a variety of sophisticated models to analyse the various impacts of significant increases in DG. These models stress that the spatial configuration of the grid really matters - this has tended to be neglected in economic discussions of the costs of DG relative to conventional, centralized power generation. The modelling also makes it clear that efficient storage systems will often be critical in solving transient stability problems on the grid as we move to the greater provision of renewable DG. We show that DG can help to defer of transmission investments in certain conditions. The existing grid structure was constructed with different priorities in mind and we show that its replacement can come at a prohibitive cost unless the capability of the local grid to accommodate DG is assessed very carefully. |
| Keywords: | Distributed Generation. Energy Economics, Electricity Markets, Renewable Energy |
| JEL: | Q40 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqeemg:09&r=ene |
| By: | John Foster (Department of Economics, University of Queensland); Liam Wagner (Department of Economics, University of Queensland); Phil Wild (Department of Economics, University of Queensland); Junhua Zhao (Department of Economics, University of Queensland); Lucas Skoofa; Craig Froome; Ariel Liebman (Department of Economics, University of Queensland) |
| Abstract: | The overall goal of Project 2 has been to provide a comprehensive understanding of the impacts of distributed energy (DG) on the Australian Electricity System. The research team at the UQ Energy Economics and Management Group (EEMG) has constructed a variety of sophisticated models to analyse the various impacts of significant increases in DG. These models stress that the spatial configuration of the grid really matters - this has tended to be neglected in economic discussions of the costs of DG relative to conventional, centralized power generation. The modelling also makes it clear that efficient storage systems will often be critical in solving transient stability problems on the grid as we move to the greater provision of renewable DG. We show that DG can help to defer of transmission investments in certain conditions. The existing grid structure was constructed with different priorities in mind and we show that its replacement can come at a prohibitive cost unless the capability of the local grid to accommodate DG is assessed very carefully. |
| Keywords: | Distributed Generation. Energy Economics, Electricity Markets, Renewable Energy |
| JEL: | Q40 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqeemg:10&r=ene |
| By: | John Foster (Department of Economics, University of Queensland); Liam Wagner (Department of Economics, University of Queensland); Phil Wild (Department of Economics, University of Queensland; Department of Economics, University of Queensland); Junhua Zhao (Department of Economics, University of Queensland); Craig Froome |
| Abstract: | The overall goal of Project 2 has been to provide a comprehensive understanding of the impacts of distributed energy (DG) on the Australian Electricity System. The research team at the UQ Energy Economics and Management Group (EEMG) has constructed a variety of sophisticated models to analyse the various impacts of significant increases in DG. These models stress that the spatial configuration of the grid really matters - this has tended to be neglected in economic discussions of the costs of DG relative to conventional, centralized power generation. The modelling also makes it clear that efficient storage systems will often be critical in solving transient stability problems on the grid as we move to the greater provision of renewable DG. We show that DG can help to defer of transmission investments in certain conditions. The existing grid structure was constructed with different priorities in mind and we show that its replacement can come at a prohibitive cost unless the capability of the local grid to accommodate DG is assessed very carefully. |
| Keywords: | Distributed Generation. Energy Economics, Electricity Markets, Renewable Energy |
| JEL: | Q40 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqeemg:11&r=ene |
| By: | Inter-American Development Bank (IDB) |
| Abstract: | This presentation discusses considerations in designing a public sector energy efficiency and conservation program in Jamaica. Reduction in public sector consumption will reduce government energy expenditures, mitigate greenhouse gas emissions, and stimulate a clean energy industry. It includes the following: 1) Education and awareness of government workers regarding energy use and conservation; 2) Operation and maintenance of existing and new equipment to optimize performance; 3) Energy conservation through improved government building envelop; 4) Standard specifications for energy end-use technologies and applications; 5) Building accountability into facility energy management and public sector wide consumption; 6) Institutional design that involves public-private partnership in program implementation. |
| Keywords: | Energy & Mining, energy efficiency, energy policy, Jamaica, energy markets, clean energy, public sector conservation & efficiency |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:38418&r=ene |
| By: | Philip Hemmings |
| Abstract: | Offshore natural-gas discoveries have released Israel from complete reliance on imported primary fuels and are allowing for a cleaner energy mix. Furthermore, additional production will soon come on stream, and there is a reasonable chance of new commercially viable gas finds, and possibly of oil too. The authorities have overhauled the system of royalties and taxes, although how best to use the resulting revenues remains the subject of debate. Concerns about competition in the gas sector have risen following the disruption of imports via the pipeline from Egypt, which has strengthened the market position of the lead consortium developing the offshore fields. Competition concerns in the electricity sector have been longstanding due to sluggish reform away from monopoly provision by the state-owned incumbent. As elsewhere, energy use has important environmental side-effects. A comprehensive plan for reducing greenhouse-gas emissions has been developed recently, which relies primarily on energy-efficiency measures and an increase in the share of renewable-electricity product. This Working Paper relates to the OECD 2011 Economic Survey of Israel (www.oecd.org/eco/surveys/Israel).<P>Relever les défis dans le secteur énergétique en Israël<BR>Les découvertes de gaz naturel en mer ont affranchi Israël d’une totale dépendance à l’égard des importations d’énergies primaires et elles permettent au pays de disposer d’une palette énergétique moins polluante. De plus, de nouvelles capacités de production vont bientôt devenir opérationnelles et il y a des perspectives raisonnables de nouvelles découvertes de gaz commercialement viables, et peut-être aussi de pétrole. Les autorités ont revu le système des royalties et taxes, même si la façon d’utiliser au mieux les recettes recueillies reste sujet à débat. Les préoccupations liées à la concurrence dans le secteur gazier se sont accentuées après les perturbations des importations transitant par le gazoduc avec l’Égypte, qui ont renforcé la position sur le marché du consortium pilote développant les gisements offshore. Le problème de concurrence dans le secteur de l’électricité dure depuis longtemps en raison de la lenteur de la réforme en faveur de l’abandon de la position monopolistique de l’opérateur appartenant à l’État. Comme ailleurs, la consommation d’énergie a d’importants effets secondaires sur l’environnement. Un plan d’ensemble de réduction des émissions de gaz à effet de serre a été élaboré récemment, qui s’appuie principalement sur des mesures d’efficacité énergétique et l’augmentation de la part d’électricité produite à partir d’énergies renouvelables. Ce Document de travail se rapporte à l’Étude économique de l’OCDE d’Israël 2011 (www.oecd.org/eco/etudes/Israël). |
| Keywords: | energy, natural gas, renewable energy, energy efficiency, carbon tax, Israel, public transport, Israeli energy demand, Israeli energy supply, electricity generation, greenhouse gases, GHG, solar power, wind power, vehicle emissions, vehicle taxation, gasoline, diesel, electric car, énergie, gaz naturel, énergie renouvelable, gaz à effet de serre, taxes carbone, efficacité énergétique, Israël, demande énergétique israélienne, offre énergétique israélienne, production d?électricité, GES, installations solaires, éoliennes, émissions des véhicules, fiscalité des véhicules, essence, diesel, voiture électrique, transport public |
| JEL: | L94 L95 Q42 Q48 Q53 Q54 Q58 R48 |
| Date: | 2011–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:914-en&r=ene |
| By: | Börjesson, Maria (KTH, Royal Institute of Technology); Eliasson, Jonas (KTH, Royal Institute of Technology) |
| Abstract: | We estimate the value of time savings, different cycling environments and additional benefits in cost-benefit analysis of cycling investments. Cyclists’ value of travel time savings turns out to be high, considerably higher than the value of time savings on alternative modes. Cyclists also value other improvements highly, such as separated bicycle lanes. As to additional benefits of cycling improvements in the form of health and reduced car traffic, our results do not support the notion that these will be a significant part in a cost-benefit analysis. Bicyclists seem to take health largely into account when making their travel choices, implying that it would be double-counting to add total health benefits to the analysis once the consumer surplus has been correctly calculated. As to reductions in car traffic, our results indicate that the cross-elasticity between car and cycle is low, and hence benefits from traffic reductions will be small. However, the valuations of improved cycling speeds and comfort are so high that it seems likely that improvements for cyclists are cost-effective compared to many other types of investments, without having to invoke second-order, indirect effects. In other words, our results suggest that bicycle should be viewed as a competitive mode of travel and not primarily as a means to achieve improved health or reduced car traffic. |
| Keywords: | Cost benefit analysis; Value of time; Bicycle |
| JEL: | R41 R42 R48 |
| Date: | 2011–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2011_022&r=ene |
| By: | Jie He (Département d'économique, GREDI, Université de Sherbrooke, Canada); Wing-tat Hung (Department of Civil and Structural Engineering, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR) |
| Abstract: | In this paper, we analyzed data addressing people’s perceptions of the importance of selection criteria for vehicle-related emissions control policies and measures based on a three-round survey organized during three professional air quality control international conferences in 2006 through 2010. More than 300 participants were solicited to answer a ranking questionnaire. The results from the simple tabulation, figures and a rigorous statistical model revealed the divergence in people’s perceptions of the importance of criteria guiding emissions control policies and selection of measures, and we attribute these differences in opinion to differences in people’s working backgrounds and the economic and political conditions in their countries. Our multinomial logit model estimation pushed our investigation further and provided a more direct illustration of the potential determining role of each of these background factors. The estimations found that economic and political differences among countries seem to result in more divergence of opinion about the importance of the criteria. Furthermore, some criteria, particularly less classical ones such as ability to administer changes and time to reach effectiveness, showed more divergence in people’s opinions than classical criteria, such as cost, effectiveness etc. |
| Keywords: | perception, multi-criteria decision making, vehicle emission control, survey, multinomial-logit model, policy and measures |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:11-18&r=ene |
| By: | Stéphane De Cara (UMR 210 Economie Publique, INRA-AgroParisTech.); Anne Fournier (UMR 7235 EconomiX-CNRS, University of Paris Ouest); Carl Gaigné (UMR 1302 SMART, INRA) |
| Abstract: | In this paper, we study the impact of urbanization on the location of agricultural production and the GHG emissions related to transportation. We develop an economic geography model where the location of agricultural activities and urban population are endogenous. We show that increasing yields induce the spatial concentration of agricultural production in the most urban-crowded region if collection costs are relatively low and in the smallest one otherwise. In addition, we find that inter-regional trade in agricultural commodities may be desirable to reduce GHG emissions, except when urban population is equally split between cities. Finally, we highlight that the market may induce an excess of agricultural agglomeration when yields are high and/or collection costs are low. |
| Keywords: | Urbanization, Agricultural location, Transport, Greenhouse gas, Food miles |
| JEL: | F12 Q10 Q54 Q56 R12 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1109&r=ene |
| By: | William D. Nordhaus (Cowles Foundation, Yale University) |
| Abstract: | This survey examines the history and current practice in integrated assessment models (IAMs) of the economics of climate change. It begins with a review of the emerging problem of climate change. The next section provides a brief sketch of the rise of IAMs in the 1970s and beyond. The subsequent section is an extended exposition of one IAM, the DICE/RICE family of models. The purpose of this description is to provide readers an example of how such a model is developed and what the major components are. The final section discusses major important open questions that continue to occupy IAM modelers. These involve issues such as the discount rate, uncertainty, the social cost of carbon, the potential for catastrophic climate change, algorithms, and fat-tailed distributions. These issues are ones that pose both deep intellectual challenges as well as important policy implications for climate change and climate-change policy. |
| Keywords: | Climate change, Integrated assessment models, Environmental economics, Social cost of carbon, Large-scale mathematical models |
| JEL: | Q5 Q54 C6 H4 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:1839&r=ene |
| By: | Sebastian Miller; Bok-Keun Yu |
| Abstract: | This paper surveys climate change funds related to LAC countries and attempts to derive some implications through performance analyses of these funds. The performance analyses show that the following matters should be addressed: increases in participation of the IDB as an agent in the projects for the LAC region, enlargement of the scale of co-financing in the IDB-brokered cases as well as in the LAC region, and reinforcement of the linkage between the SECCI Funds and international climate change funds. Further research as to why the level of co-financing in LAC countries is lower than in other regions would also be of interest. |
| JEL: | F30 G20 Q50 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:idb:wpaper:4747&r=ene |
| By: | Thomas Eichner; Rüdiger Pethig |
| Abstract: | Internalizing the global negative externality of carbon emissions requires flattening the extraction path of world fossil energy resources (= world carbon emissions). We consider governments having sign-unconstrained emission taxes at their disposal and seeking to prevent world emissions from exceeding some binding aggregate emission ceiling in the medium term. Such a ceiling policy can be carried out either in full cooperation of all (major) carbon emitting countries or by a sub-global climate coalition. Unilateral action has to cope with carbon leakage and high costs which makes a strong case for choosing a policy that implements the ceiling in a cost-effective way. In a two-country two-period general equilibrium model with a non-renewable fossil- energy resource we characterize the unilateral cost-effective ceiling policy and compare it with its fully cooperative counterpart. We show that with full cooperation there exists a cost-effective ceiling policy in which only first-period emissions are taxed at a rate that is uniform across countries. In contrast, the cost-effective ceiling policy of a sub-global climate coalition is characterized by emission regulation in both periods. That policy may consist either of positive tax rates in both periods or of negative tax rates (= subsidies) in both periods or of a positive rate in the first and a negative rate in the second period. The share of the total stock of energy resources owned by the sub-global climate coalition turns out to be a decisive determinant of the sign and magnitude of unilateral cost-effective taxes. |
| Keywords: | unilateral climate policy, intertemporal climate policy, non-renewable energy resources, emission taxes |
| JEL: | H22 Q32 Q54 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sie:siegen:151-11&r=ene |
| By: | Thomas Eichner; Rüdiger Pethig |
| Abstract: | Internalizing the global negative externality of carbon emissions requires flattening the extraction path of non-renewable fossil-fuel resources (= world carbon emissions). Following Eichner and Pethig (2011b) we set up a two-country two-period model in which one of the countries represents a sub-global climate coalition that implements a binding ceiling on the world’s first-period emissions. The other country is the rest of the world and refrains from taking action. The climate coalition has at its disposal sign-unconstrained taxes on emissions in both periods, as in Eichner and Pethig (2011b), but in the present study it has the additional option of taxing consumption. The central question is whether and how the coalition makes use of consumption taxes along with emission taxes in its unilateral cost- effective ceiling policy. We identify cost-effective policies under various conditions and find that all consist of a (positive) tax on first-period consumption and of emission taxes whose rates are negative in the second period but may take on either sign in the first period. |
| Keywords: | carbon emissions, ceiling, unilateral, cost-effective regulation |
| JEL: | H21 H23 Q54 Q58 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sie:siegen:152-11&r=ene |
| By: | Thomas Eichner; Rüdiger Pethig |
| Abstract: | This note investigates the suitability of unilateral consumption taxes for alleviating climate change in a two-period two-country general equilibrium model with a finite stock of fossil fuel. We analyze the incidence of a unilateral consumption tax in the first period on world carbon emissions. If countries are identical or if the taxing country imports both fossil fuel and consumption goods in the second period, increases in the tax rate lower first-period carbon emissions in both countries implying a negative rate of carbon leakage. |
| Keywords: | unilateral consumption tax, world emissions, leakage |
| JEL: | H22 Q38 Q58 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sie:siegen:149-11&r=ene |
| By: | Yu-Fu Chen; Michael Funke; Nicole Glanemann |
| Abstract: | The quintessence of recent natural science studies is that the 2°C target can only be achieved with massive emission reductions in the next few years. The central twist of this paper is the addition of this limited time to act into a non-perpetual real options framework analysing optimal climate policy under uncertainty. The window-of-opportunity modelling setup shows that the limited time to act may spark a trend reversal in the direction of low-carbon alternatives. However, the implementation of a climate policy is evaded by high uncertainty about possible climate pathways. |
| Keywords: | Climate policy, carbon dioxide scenarios, non-perpetual real options |
| JEL: | Q51 Q54 D81 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:dun:dpaper:262&r=ene |
| By: | Anna Creti (EconomiX-CNRS, University of Paris Ouest, and Ecole Polytechnique,); Pierre-André Jouvet (EconomiX and Climate Economics Chair); Valérie Mignon (EconomiX-CNRS, University of Paris Ouest, and CEPII) |
| Abstract: | The aim of this paper is to investigate the determinants of the carbon price during the two phases of the European Union Emission Trading Scheme (EU ETS). More specifically, relying on daily EU allowance futures contracts, we test whether the carbon price drivers identified for Phase I still hold for Phase II and evolve toward a long-run relationship. Using cointegration techniques and accounting for the 2006 structural break on the carbon market, we show that while a cointegrating relationship exists for both phases of the EU ETS, the nature of this equilibrium relationship is different across the two subperiods, with an increasing role of fundamentals in Phase II. Deriving equilibrium values, we show that the carbon price tends to be undervalued since the end of 2009. |
| Keywords: | EU ETS, carbon price, energy prices, cointegration. |
| JEL: | Q4 C22 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1106&r=ene |
| By: | Julien Chevallier (Université Paris Dauphine); Yannick Le Pen (Université Paris Dauphine); Benoît Sévi (Université de la Méditerranée Aix-Marseille II) |
| Abstract: | To improve risk management in the European Union Emissions Trading Scheme (EU ETS), the European Climate Exchange (ECX) has introduced option instruments in October 2006. The central question we address is: can we identify a potential destabilizing effect of the introduction of options on the underlying market (EUA futures)? Indeed, the literature on commodities futures suggest that the introduction of derivatives may either decrease (due to more market depth) or increase (due to more speculation) volatility. As the identification of these effects ultimately remains an empirical question, we use daily data from April 2005 to April 2008 to document volatility behavior in the EU ETS. By instrumenting various GARCH models, endogenous break tests, and rolling window estimations, our results overall suggest that the introduction of the option market had the effect of decreasing the level of volatility in the EU ETS while impacting its dynamics. These findings are fairly robust to other likely influences linked to energy and commodity markets. |
| Keywords: | EU ETS, option prices, volatility, GARCH, rolling estimation, endogenous structural break detection |
| JEL: | G13 G18 Q57 Q58 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1107&r=ene |
| By: | Thierry Bréchet (Université catholique de Louvain, CORE and Chair Lhoist Berghmans in Environmental Economics and Management); Pierre-André Jouvet (EconomiX, Univ. Paris Ouest, Nanterre - La Défense, Climate Economics Chair, Paris); Gilles Rotillon (EconomiX, Univ. Paris Ouest, Nanterre - La Défense.) |
| Abstract: | In this paper we study the optimal growth path and its decentralization in a twosector overlapping-generations model with pollution. One sector (power generation) is polluting and the other (final good) is not. Pollution is regulated by tradable emission permits. The issue is whether the optimal growth path can be replicated in equilibrium with pollution permits, given that some permits must be issued free of charge for the sake of political acceptability. We provide a policy rule that allows optimality and acceptability to be reconciled. |
| Keywords: | general equilibrium, optimal growth, pollution, tradable emission permits, acceptability |
| JEL: | D61 D9 Q28 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1102&r=ene |
| By: | Raphael Trotignon (PhD Student at Paris-Dauphine University (CGEMP/LEDa) and researcher at the Climate Economics Chair.) |
| Abstract: | The EU ETS is the first full scale example of a cap and trade system linked to project based mechanisms. While most papers on the subject focus on the policy design point of view, few have analyzed the facts. Offsets have been used by European industrial installations in 2008 and 2009. If the linking with an offset mechanism is successful, one should find evidence that offsets are used on a large scale, i.e. that significant volumes of credits go from a large number of projects to a large number of installations, independently from their sector, size or position, and that the limit of import is fully used at the end of the phase. This paper is an ex-post analysis of offsets used in the EU ETS in terms of intensity, frequency, and efficiency. This allows us to answer partially those questions and to identify possible explaining factors. |
| Keywords: | EU ETS, Clean Development Mechanism, Linking |
| JEL: | Q49 Q50 K32 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1103&r=ene |
| By: | Silverstein, David N. |
| Abstract: | Funding a response to climate change after Kyoto will require another look at both burden sharing and funding mechanisms. After reviewing the risks of cap-and-trade with carbon offsets and the advantages of a harmonized carbon tax, a method is proposed to utilize a harmonized carbon price to finance the Green Climate Fund. A common carbon price is set across all nations with either a carbon tax or an emissions trading floor price with carbon offsets excluded. The harmonized carbon price is incrementally increased until 2050 to reach the cost of atmospheric removal and achieve equilibrium. Carbon revenues collected internally within nations are used for internal investments in climate change. Financing for the Green Climate Fund is generated from transferring a percentage of the collected revenues, based on a sliding window of historical responsibility for fossil fuel emissions and national wealth. Collected revenue is disbursed for climate aid based on a set of national climate need factors for adaptation and mitigation, including preserving strategic carbon absorbers, low-carbon infrastructures, technology transfer and population management. In the interest of distributive justice, nations themselves determine the need factors of each other. Unlike cap-and-trade, this method does not explicitly set emissions caps, but total global emissions can be regulated nevertheless. Formulas are presented for collection and disbursement, which require parameters for a globally harmonized carbon price, a climate fund contribution rate, historical responsibility from fossil fuel emissions, a national wealth threshold for fund contributions and need factors for each nation. Published economic and emissions data are used with the formulas to demonstrate an example of how the financing can work. This presents an equitable way to address climate needs across all nations on both a global and regional level. |
| Keywords: | climate change; global warming; green climate fund; carbon tax; cap-and-trade; climate finance; Kyoto protocol |
| JEL: | F18 F35 Q56 F51 E01 F53 Q54 |
| Date: | 2011–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35280&r=ene |
| By: | Thomas Heyd |
| Abstract: | Paradoxically, knowledge of the increasing certainty about climate change, and of the severe consequences of this phenomenon for large portions of the world population, may lead individuals and communities to fall into a paralysing defeatism. Such defeatism, even more paradoxically, may be accompanied by complacency, due to assumption that, on the basis of our societies’ institutional, scientific and technical capabilities, we can wait until problems really become evident. Both the defeatist and the complacent attitude may lead to failure in the application of entirely feasible mitigation and adaptation measures, with consequent much increased probabilities of economic, human and ecological costs. In view of the degree to which these attitudes are present in our societies we may wonder whether inaction may be justifiable on our part despite awareness of stringent responsibilities. Here I argue that, even if it may appear that, under these conditions, we cannot take direct action on our responsibilities regarding climate change, we still have responsibilities to act at another level. |
| Keywords: | Climate Change, Political Inaction, Responsibilities. |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2011-13&r=ene |
| By: | De Perthuis, Christian |
| Abstract: | Dans cette contribution, nous examinons les voies d’un renforcement de la régulation du marché européen du carbone, outil central retenu par l’Union européenne pour atteindre ses objectifs climatiques et à ce jour premier système d’échange de permis au monde. Un tel renforcement implique une harmonisation et une centralisation plus poussées des fonctions classiques de surveillance d’un marché (sécurité des infrastructures, transparence de l’information, traque des positions dominantes, …), difficiles à mettre en œuvre dans le contexte institutionnel européen. Mais pour envoyer un signal permettant d’orienter l’économie sur la cible d’une réduction par cinq des émissions européennes à l’horizon 2050, il faudrait aller plus loin : créer un organisme indépendant sur le modèle d’une banque centrale avec une capacité d’intervention et une crédibilité suffisantes pour modifier les anticipations des industriels afin qu’ils réalisent aujourd’hui les investissements nécessaires pour mettre l’économie européenne sur la voie de la décarbonation. |
| Keywords: | Marchés du carbone; Union européenne; banque centrale du carbone; |
| JEL: | Q56 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/7764&r=ene |