nep-ene New Economics Papers
on Energy Economics
Issue of 2013‒01‒07
forty-five papers chosen by
Roger Fouquet
Basque Climate Change Centre, Bilbao

  1. How sensitive to time period sampling is the asymmetric price response specification in energy demand modelling? By Yaw Osei Adofo; Joanne Evans; Lester Charles Hunt
  2. A Short Note on Removing the Energy Subsidies in Iran By Dehghan Nejad, Omid
  3. Security of the European Electricity Systems: Conceptualizing the Assessment Criteria and Core Indicators By Jamasb, T.; Nepal, R.
  4. International benchmarking of Electricity Transmission by Regulators: Theory and Practice By Haney, A.B.; Pollitt, M.G.
  5. Development Scenarios for the North and Baltic Sea Grid: A Welfare Economic Analysis By Jonas Egerer; Friedrich Kunz; Christian von Hirschhausen
  6. Analysis of volatility transmissions in integrated and interconnected markets: The case of the Iberian and French markets By Ciarreta Antuñano, Aitor; Zárraga Alonso, Ainhoa
  7. Power Markets Shaped by Antitrust By Sadowska, M.; Willems, Bert
  8. Linepack storage valuation under price uncertainty By Arvesen, Øystein; Medbø, Vegard; Fleten, Stein-Erik; Tomasgard, Asgeir; Westgaard, Sjur
  9. Supply Function Equilibria in Networks with Transport Constraints By Holmberg, Pär; Philpott, Andrew
  10. The development and commercialization of solar pv technology in the oil industry By Jonatan Pinkse; Daniel Van Den Buuse
  11. Australian Power: Can renewable technologies change the dominant industry view? By Lynette Molyneaux; Craig Froome; Liam Wagner; John Foster
  12. A smart integrated network for an offshore island By Denny, Eleanor; Keane, Andrew
  13. The renewable energies technology surge: A new techno-economic paradigm in the making? By John A. Mathews
  14. Renewable Energy Industries' Contribution to the North Dakota Economy By Coon, Randal C.; Hodur, Nancy M.; Bangsund, Dean A.
  15. Nuclear Accidents on Policy: Notes on Public Perception By Felix Richter; Malte Steenbeck; Markus Wilhelm
  16. The Effects of Oil Price Uncertainty on the Macroeconomy By Soojin Jo
  17. Oil price density forecasts: exploring the linkages with stock markets By Marco J. Lombardi; Francesco Ravazzolo
  18. Sustainable trends and periodicity in consumer price indices indicate that the era of low energy prices is approaching By Kitov, Ivan; Kitov, Oleg
  19. Panorama do Pré-Sal: Desafios e Oportunidades By Giorgio Romano Schutte
  20. Magnifying uncertainty: the impact of a shift to gas under a carbon price By Liam Wagner; Lynette Molyneaux; John Foster
  21. The effect of LNG on the rleationship between UK and Continental European natural gas markets By Koenig, P.
  22. Microalgal production systems: Global impact of industry scale-up By Evan Stephens; Liam Wagner; Ian Ross; Ben Hankamer
  23. Outlook for Ethanol and Conventional Biofuel RINs in 2013 and 2014 By Bruce A. Babcock
  24. Les méthodes d’évaluation environnementale dans le cadre de la production de biodiesel au Brésil. By Bicalho, Tereza
  25. Toxic Assets: How the Housing Market Responds to Environmental Information Shocks By Nicholas J. Sanders
  26. Environmental and economic efficiencies in the Asia-Pacific region By Honma, Satoshi
  27. Economic Growth, Energy Consumption, Financial Development, International Trade and CO2 Emissions in Indonesia By Muhammad, Shahbaz; Qazi Muhammad, Adnan Hye; Aviral Kumar, Tiwari
  28. Climate Change - Predictions, Economic Consequences, and the Relevance of Environmental Kuznets Curves By Tisdell, Clement A.
  29. Optimal overall emissions taxation in durable goods oligopoly By Sagasta Elorza, Amagoia; Usategui Díaz de Otalora, José María
  30. Optimal Carbon Taxes with Non-Constant Time Preference By Iverson, Terrence
  31. Towards Consistent and Effective Carbon Pricing in Germany? By Ivana Capozza; Joseph Curtin
  32. Market-Based Emissions Regulation and Industry Dynamics By Meredith Fowlie; Mar Reguant; Stephen P. Ryan
  33. Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry By Aghion, Philippe; Dechezleprêtre, Antoine; Hemous, David; Martin, Ralf; Van Reenen, John
  34. Quelle intégration des pays en développement dans le régime climatique ? Le Mécanisme pour un Développement Propre en Asie By Pauline Lacour; Jean-Christophe Simon
  35. Baselines in Environmental Markets: Tradeoffs Between Cost and Additionality By Marshall, Elizabeth P.; Weinberg, Marca
  36. The current state of CCS: Ongoing research at the University of Cambridge with application to the UK policy framework By Daniels, K.A.; Huppert, H.E.; Neufeld, J.A.; Reiner, D.
  37. Climate change policies and employment in Eastern Europe and Central Asia By Oral, Isil; Santos, Indhira; Zhang, Fan
  38. Towards a Just and Cost-Effective Climate Policy: On the relevance and implications of deciding between a Production versus Consumption Based Approach By Karl Steininger; Christian Lininger; Susanne Droege; Dominic Roser; Luke Tomlinson
  39. Klimawandel und betriebliche Innovationsprozesse By Wilfried Ehrenfeld
  40. Coalition Formation and Environmental Policies in International Oligopoly Markets By Cavagnac, Michel; Cheikbossian, Guillaume
  41. Lifestyle Choices and Societal Behavior Changes as Local Climate Strategy By Brahmanand Mohanty; Martin Scherfler; Vikram Devatha
  42. Las tecnologías de la información y el cambio climático en países en desarrollo By Fernando Borraz
  43. Behavioral Foundations of Sustainability Transitions By Miklós Antal; Ardjan Gazheli; Jeroen van den Bergh
  44. The Nature of Ecological and Environmental Economics and its Growing Importance By Tisdell, Clement A.
  45. 12-04 "Is Dismissing the Precautionary Principle the Manly Thing to Do? Gender and the Economics of Climate Change" By Julie A. Nelson

  1. By: Yaw Osei Adofo (Design Division of the Engineering Directorate, Electricity Company of Ghana Ltd.); Joanne Evans (Surrey Energy Economics Centre (SEEC), Department of Economics, University of Surrey); Lester Charles Hunt (Surrey Energy Economics Centre (SEEC), University of Surrey)
    Abstract: The purpose of this paper is to investigate the criticism that energy demand estimates based on a specific price decomposition are sensitive to the chosen time period used for the estimation. To analyse this in a systematic way, different time series sample periods are constructed from annual data for 17 OECD countries covering the overall period 1960 to 2008. The specific price decomposition under consideration, often used to estimate asymmetric price response models of energy demand, separates the impact of prices above the previous maximum, of a price recovery below the previous maximum and of a price cut. Therefore, the analysis does not just involve using different time periods; instead, for each time period investigated, a new data set is constructed and for each data set, the price variable is decomposed in this way. An energy demand relationship allowing for asymmetric price responses is therefore estimated for each different sample period and the results suggest that recalculation of the decomposed price variables for each different period does affect the stability of the estimated energy demand responses. In contrast, a similarly estimated energy demand relationship with symmetric price responses for each different sample period is found to have less instability.
    Keywords: Energy demand modelling, Asymmetric price responses, Stability of estimates.
    JEL: C23 C52 Q41
    Date: 2012–11
  2. By: Dehghan Nejad, Omid
    Abstract: This note provided some reasons that why the Iranian government should avoid removing subsidies in the current Iranian economy situation.
    Keywords: Energy; subsidies; natural resources; Iran's economy
    JEL: Q43
    Date: 2012–12–06
  3. By: Jamasb, T.; Nepal, R.
    Abstract: The electricity systems have a central role to play in the transition towards a low carbon economy and integration of renewable energy sources in the European Union. However, the European electricity networks face a diverse set of existing and new risks that can hamper the energy security of member countries. This paper aims to qualitatively and quantitatively assess these risks given the changing operating framework of the industry characterised by market liberalization and network interconnectedness among the EU members. Within this context, we primarily focus on the risks from exceptional events and threats to the European electricity systems. An ex-ante risk assessment matrix is proposed to gauge the network risks and take prevention measures against them. Such assessment can be a useful approach for policymakers and practitioners amidst the existing ex-post quality of supply performance standards and indicators. Our analysis suggests that economic risks pose the most serious and challenging risks to the evolving European electricity system.
    Keywords: Networks, risks, energy security, regulation
    JEL: L94 L50 Q30
    Date: 2012–12–19
  4. By: Haney, A.B.; Pollitt, M.G.
    Abstract: Benchmarking of electricity networks has a key role in sharing the benefits of efficiency improvements with consumers and ensuring regulated companies earn a fair return on their investments. This paper analyses the theory and practice of international benchmarking of electricity transmission by regulators. We examine the literature relevant to electricity transmission benchmarking and conduct a survey of 48 national electricity regulators. Consideration of the literature and our survey indicates that electricity transmission benchmarking is significantly more challenging than electricity distribution benchmarking. New panel data techniques aimed at dealing with unobserved heterogeneity and the validity of the comparator group look intellectually promising but are in their infancy for regulatory purposes. In electricity transmission choosing variables is particularly difficult, because of the large number of potential variables to choose from. Failure to apply benchmarking appropriately may negatively affect investors’ willingness to invest in the future. While few of our surveyed regulators acknowledge that regulatory risk is currently an issue in transmission benchmarking, many more concede it might be. New regulatory approaches – such as those based on tendering, negotiated settlements, a wider range of outputs or longer term grid planning - are emerging and will necessarily involve a reduced role for benchmarking.
    Keywords: Electricity transmission; benchmarking; regulation
    JEL: L94
    Date: 2012–12–19
  5. By: Jonas Egerer; Friedrich Kunz; Christian von Hirschhausen
    Abstract: The North and Baltic Sea Grid is one of the largest pan-European infrastructure projects raising high hopes regarding the potential of harnessing large amounts of renewable electricity, but also concerns about the implementation in largely nationally dominated regulatory regimes. The paper develops three idealtype development scenarios and quantifies the technical-economic effects: i) the Status quo in which engagement in the North and Baltic Sea is largely nationally driven; ii) a Trade scenario dominated by bilateral contracts and point-to-point connections; and iii) a Meshed scenario of fully interconnected cables both in the North Sea and the Baltic Sea, a truly pan-European infrastructure. We find that in terms of overall welfare, the meshed solution is superior; however, from a distributional perspective there are losers of such a scheme, e.g. the incumbent electricity generators in France, Germany, and Poland, and the consumers in low-price countries, e.g. Norway and Sweden. Merchant transmission financing, based on congestion rents only, does not seem to be a sustainable option to provide sufficient network capacities, and much of the investment will have to be regulated to come about. We also find strong interdependencies between offshore grid expansion and the subsequent onshore network.
    Keywords: Electricity, offshore transmission, rent allocation
    JEL: D60 L51 L94
    Date: 2012
  6. By: Ciarreta Antuñano, Aitor; Zárraga Alonso, Ainhoa
    Abstract: This paper models the mean and volatility spillovers of prices within the integrated Iberian and the interconnected Spanish and French electricity markets. Using the constant (CCC) and dynamic conditional correlation (DCC) bivariate models with three different specifications of the univariate variance processes, we study the extent to which increasing interconnection and harmonization in regulation have favoured price convergence. The data consist of daily prices calculated as the arithmetic mean of the hourly prices over a span from July 1st 2007 until February 29th 2012. The DCC model in which the variances of the univariate processes are specified with a VARMA(1,1) fits the data best for the integrated MIBEL whereas a CCC model with a GARCH(1,1) specification for the univariate variance processes is selected to model the price series in Spain and France. Results show that there are significant mean and volatility spillovers in the MIBEL, indicating strong interdependence between the two markets, while there is a weaker evidence of integration between the Spanish and French markets. We provide new evidence that the EU target of achieving a single electricity market largely depends on increasing trade between countries and homogeneous rules of market functioning.
    Keywords: electricity price markets, multivariate GARCH, volatility spillovers
    JEL: C51 C32 Q49
    Date: 2012
  7. By: Sadowska, M.; Willems, Bert (Tilburg University, Tilburg Law and Economics Center)
    Abstract: Abstract: In November 2011 Sweden abolished the uniform national electricity price and introduced separate price zones. This was the result of an antitrust settlement between the Commission and the Swedish network operator, which was accused of discriminating between domestic and export electricity transmission services and segmenting the internal market. Based on this case, we show how the Commission uses competition law enforcement to foster market integration in the energy sector. We find that, even though the Commission’s action under competition rules was contrived and lacked economic depth, the commitment package provides an economically sound, longterm solution to network access and congestion management in Sweden. Such a quick and far-reaching change of Swedish congestion management could not have been achieved by Swedish policymakers or enforcement of the EU sector-specific regulation.
    Keywords: competition policy;Article 102 TFEU;commitment decisions;European energy markets;transmission congestion;Swedish network operator.
    JEL: K21 K23 K K42 L43 L44 L94
    Date: 2012
  8. By: Arvesen, Øystein; Medbø, Vegard; Fleten, Stein-Erik; Tomasgard, Asgeir; Westgaard, Sjur
    Abstract: Natural gas flows in pipelines as a consequence of the pressure difference at the inlet and outlet. Adjusting these pressures makes it possible to inject natural gas at one rate and withdraw at a different rate, hence using the pipeline as storage as well as transport. We study the value of using the so called pipeline linepack as a short-term gas storage and how this functionality may offset the discrepancy between the low flexibility in take-or-pay contracts and the high inherent flexibility of a gas fired power plant. To value the storage option, we consider a cycling power plant facing volatile power prices while purchasing gas on a take-or-pay contract. We estimate a Markov regime-switching model for power prices and a mean reverting jump diffusion model for gas prices. Applying Least Squares Monte Carlo simulation to the operation of the power plant, we find that the storage option indeed has significant value for the plant, enabling it to better exploit the sometimes extreme price fluctuations. Finally, we show how power price volatility and jump frequency are the main value drivers, and that the size of the storage increases the value up to a point where no additional flexibility is used.
    Keywords: Linepack; Gas storage valuation; Regime-switching models; Natural gas prices; Electricity prices; Power plant
    JEL: D81 G13 Q4
    Date: 2012–11–07
  9. By: Holmberg, Pär (Research Institute of Industrial Economics (IFN)); Philpott, Andrew (Department of Engineering Science)
    Abstract: Transport constraints limit competition and arbitrageurs' possibilities of exploiting price differences between goods in neighbouring markets, especially when storage capacity is negligible. We analyse this in markets where strategic producers compete with supply functions, as in wholesale electricity markets. For networks with a radial structure, we show that existence of supply function equilibria (SFE) is ensured if demand shocks are suffciently evenly distributed, and solve for SFE in symmetric radial networks with uniform multi-dimensional nodal demand shocks. An equilibrium offer in such networks is identical to an SFE offer in an isolated node where the symmetric number of firms has been scaled by a market integration factor, the expected number of nodes that are completely integrated with a node in the symmetric network. The analysis can be extended to mesh networks (as in electricity systems) although the resulting models do not simplify as in the radial case.
    Keywords: Transmission network; Graph theory; Market integration; Wholesale electricity markets
    JEL: C72 D43 D44 L91
    Date: 2012–12–18
  10. By: Jonatan Pinkse (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Daniel Van Den Buuse (University of Amsterdam Business School - University of Amsterdam)
    Abstract: In diversifying energy supply, the transformation of the energy industry has been identified as a key challenge for a sustainable energy future. This suggests that incumbent firms in this industry have a vital role in the development and commercialization process of renewable energy technologies. This paper provides a comparative analysis of oil and gas firms' strategies regarding solar PV technology investments, a renewable energy technology that has seen explosive growth of late. The main aim is to examine the strategic approach of incumbent firms in the oil and gas industry towards the development and commercialization of solar PV technology. To investigate this, a multiple case study has been conducted within the European oil industry, focusing on the three largest oil and gas firms: BP, Royal Dutch/Shell, and Total. Findings show that oil and gas firms have difficulties with integrating solar PV technology in their supply chain. The analysis suggests that it is uncertain whether all oil and gas firms will abandon solar completely, as this depends to what extent they are able to generate profits. Nevertheless, there is currently a trend in the oil industry of leaving solar and positioning towards a 'recarbonization' of business activities.
    Keywords: Renewable Energy; Solar Photovoltaic; Oil and Gas industry;
    Date: 2012
  11. By: Lynette Molyneaux (Department of Economics, University of Queensland); Craig Froome (Business School, University of Queensland); Liam Wagner (Department of Economics, University of Queensland); John Foster (Department of Economics, University of Queensland)
    Abstract: With carbon dioxide the major contributor to anthropogenic climate change, being required to reduce the carbon emissions from burning coal for electricity presents a systemic shock to Australian power. The Australian government is committed to the development of its coal seam gas resources for export to lucrative world markets and to transition domestic power generation to greater resilience by moving away from a reliance on coal to lower-emissions intensive gas. Using a commercially available modelling package, PLEXOS, we model what a transition to gas fired generation in the year 2035 would deliver and compare that to a transition to power from renewable technologies. The results indicate that a transition to gas fired generation reduces emissions only marginally and that wholesale prices will be higher than the renewable energy option.
    JEL: Q40 Q42 Q47
    Date: 2012–12
  12. By: Denny, Eleanor; Keane, Andrew
    Abstract: This article examines the potential to create an energy independent smart network for an island community utilizing ocean and wind energy. The analysis involves the simulation of an extensive electrification of the heat and transport sectors on the island and the use of renewable energy to maximize the fuel and emission savings. This study involves a full renewable resource assessment for both wind and ocean devices. It also includes the design of a smart-network control algorithm to optimize the timing of electric vehicle charging and heat pump usage to exploit available renewable energy and minimize cost. Results indicate a dramatic reduction in total energy consumption through the electrification of the heat and transport sectors. For the case study system it is recommended that efficiency measures are adopted prior to the deployment of more advanced demand technologies and that air-source heat pumps should be prioritized over electric vehicle deployment due to the nature of energy demand on the island and the capital costs involved.
    Keywords: ocean energy; wind power generation; smart grid; linear programming
    JEL: Q28 H23 Q20
    Date: 2012–09
  13. By: John A. Mathews
    Abstract: Despite discussion of a .carbon lock-inÿ and techno-institutional barriers to change, energy studies have had little serious contact with neo-Schumpeterian theorizing on technological .surgesÿ or revolutions and successive waves of creative destruction, which have characterized the entire industrial era from the 1770s on. In this paper a way is offered to link the current surge in renewable energy investment to the theorizing over long (Kondratiev) waves and techno-economic paradigm shifts. The paper argues that the current renewable energy surge can be best com-prehended as a secondary surge in the fifth long K-wave, coinciding with the shift from gestation to installation of a new sixth techno-economic paradigm within the matrix of the fifth. It is argued that this emergent 6th paradigm is a continuation and fulfilment of the 5th, where IT and ICT are applied to the electric power grid, and that both are in conflict with the still-incumbent 4thparadigm based on fossil fuels and centralized power generation. The emergent 6thparadigm portends a renewable energy speculative financial boom and bubble which could burst sometime in the period 2015 to 2020, ushering in a period of sustained development of renewables and energy-efficiency services by productive rather than financial capital.
    Date: 2012–08
  14. By: Coon, Randal C.; Hodur, Nancy M.; Bangsund, Dean A.
    Keywords: Land Economics/Use, Production Economics, Resource /Energy Economics and Policy,
    Date: 2012–11
  15. By: Felix Richter (Chair for Economic Policy, University of Hamburg); Malte Steenbeck (Chair for Economic Policy, University of Hamburg); Markus Wilhelm (Chair for Economic Policy, University of Hamburg)
    Abstract: Nuclear energy is controversially discussed in many countries. Major nuclear accidents as recently in Fukushima set nuclear power plant security on top of the public agenda and increase pressure on policy makers to provide adequate reactions. Using data of the German Socio-economic Panel we analyze the effects of the accident in Fukushima and the following resolution on a nuclear phase-out plan by the German federal government on subjective perceptions using ordinary least squares and ordered logit estimates. We find strong evidence that the period after Fukushima increases the probability to report greater worries about the environment. Furthermore, we find evidence for an increase in reported levels of happiness and a decrease in the probability to be very worried about the security of nuclear power plants after the government’s resolution on the nuclear phase-out.
    Keywords: nuclear energy, nuclear accident, Fukushima, phase-out plan, life satisfaction, environment
    JEL: I31 N70 Q48
    Date: 2012–12–21
  16. By: Soojin Jo
    Abstract: This paper investigates the effect of oil price uncertainty on real economic activity using a quarterly VAR with stochastic volatility in mean. Stochastic volatility allows oil price uncertainty to vary separately from changes in the level of oil prices, and thus the impact of oil price uncertainty can be examined in a more flexible yet tractable way. In addition, this paper substantially improves on the recovery of a historical uncertainty series by incorporating an additional uncertainty indicator, i.e., a realized volatility series from daily oil price data, into the estimation process. The estimation results show that an oil price uncertainty shock alone has negative effects on world industrial production.
    Keywords: Business fluctuations and cycles; Econometric and statistical methods
    JEL: E32 C32 Q43
    Date: 2012
  17. By: Marco J. Lombardi (Bank for International Settlements,); Francesco Ravazzolo (Norges Bank (Central Bank of Norway) and BI Norwegian Business School)
    Abstract: In the recent years several commentators hinted at an increase of the correlation between equity and commodity prices, and blamed investment in commodity-related products for this. First, this paper investigates such claims by looking at various measures of correlation. Next, we assess to what extent correlations between oil and equity prices can be exploited for asset allocation. We develop a time-varying Bayesian Dynamic Conditional Correlation model for volatilities and correlations and nd that joint modelling of oil and equity prices produces more accurate point and density forecasts for oil which lead to substantial bene ts in portfolio wealth.
    Keywords: Oil price, Stock price, Density forecasting, Correlation, Bayesian DCC.
    JEL: C11 C15 C33 E17 G17
    Date: 2012–12–20
  18. By: Kitov, Ivan; Kitov, Oleg
    Abstract: Five years ago, we found three distinct periods characterized by sustainable quasi-linear trends in the difference between the headline consumer price index (CPI) and the core CPI in the USA. Then we revealed similar behavior in the differences between the CPI and indices of various consumer expenditure categories. We estimated the duration of these trends which varies in a wide range from 8 years to more than 20 years. The transition periods to new trends span shorter intervals of 2 to 5 years. The transition is characterized by a higher level of volatility in the studied CPI differences. In this study, we revisit the revealed trends and transition periods using additional CPI estimates between 2008 and 2012. It is found that our major predictions are right: the headline CPI intersected the core CPI in 2011 and both variables have been evolving in sync since then. The difference between the core CPI and the index of energy has been suffering a transition period since 2008 with extremely high fluctuations. The index of food has been growing relative to the core CPI and did not reach its turning point. The difference between the core CPI and the index of housing passed through its transition period in 2008. When normalized to the CPI, the differences associated with energy and housing demonstrates clear periodicity. The observed trends and periodicity allow predicting the evolution of energy, food, and housing at a horizon of twenty five and more years. The consumer price index of energy may fall in 2013 by ten to twenty per cent from the 2012 level. The periodicity of the related normalized difference implies that this fall may extend into the second half of the 2020s. The housing index will be also falling relative to the core CPI, partly due to its energy related components. It is not excluded that the food price index will be rising another five to ten years. The secular fall in energy and housing prices may induce a lengthy period of very low inflation.
    Keywords: CPI; core CPI; energy; housing; food; trend; periodicity
    JEL: G12 E31 E37
    Date: 2012–12–23
  19. By: Giorgio Romano Schutte
    Abstract: O objetivo deste texto é analisar as implicações econômicas, políticas e estratégicas das descobertas de grandes reservas de petróleo e gás nas províncias do pré-sal em 2006. Para tanto, são apresentados os vários desafios a serem enfrentados para garantir que o ciclo do pré-sal possa contribuir com um salto de desenvolvimento do país: a soberania nacional sobre as áreas distantes da costa brasileira; a relação com os interesses internacionais; a qualificação do parque industrial por meio de exigências de conteúdo local, justificadas pela escala e duração no tempo do empreendimento; a formação do preço e o risco de crowding out do etanol; e os riscos do "rentismo" e do excesso de entrada de dólares. As estratégias adotadas no campo da política industrial e por meio da introdução de um novo marco regulatório para as áreas do pré-sal durante os governos dos presidentes Lula e Dilma refletem concepções que dialogam com o debate sobre o neodesenvolvimetismo. A nova realidade do pré-sal ainda redimensiona a Petrobras como grande player internacional de energia. Palavras-chave: pré-sal; energia; Brasil; neodesenvolvimentismo; conteúdo local. The objective of this study is to analyze the economic, political and strategic implications of the discovery of huge oil and gas reserves in the presalt provinces in 2006. For this purpose we present the main challenges that must be confronted to make sure that the presalt cycle will contribute to the countries development: the national sovereignty over the areas, far way from the cost; the interaction with international interest; the upgrading of the industrial capacity through the use of local content requirements, justified by the scale and duration of the enterprise; the price formation and the risk of crowing out of ethanol; and the risk of rentier mentality and excess of dollar inflows. During the Lula and Dilma administration specific industrial strategies and a new legal framework were introduced to respond to these challenges. These policies are drive by a neodevelopmental perspective. The new reality of the presalt also means a repositioning of Petrobras as one of the main players in the international energy world. Keywords: presalt; energy; Brazil; new development strategies; local content.
    Date: 2012–11
  20. By: Liam Wagner (Department of Economics, University of Queensland); Lynette Molyneaux (Department of Economics, University of Queensland); John Foster (Department of Economics, University of Queensland)
    Abstract: We seek to evaluate the projection that a carbon price will reduce emissions at least cost by inducing a shift of generation from coal-fired to gas-fired plants. Modelling of Australia’s National Electricity Market in 2035 is undertaken using Australian Energy Market Operator assumptions for fuel costs, capital costs and demand forecasts and an electricity market simulation package which uses deterministic linear programming techniques, and transmission and generating plant data, to optimise the power system and determine the least cost dispatch of generating resources to meet a given demand. We find that wholesale market prices increase substantially due to the increased costs of gas over goal as an input fuel and carbon price but also as a result of infra-marginal rents and strategic behaviour by generators to maintain margin as well as pass through additional costs.
    Keywords: Natural Gas, Electricity Markets
    JEL: Q40
    Date: 2012–12
  21. By: Koenig, P.
    Abstract: The long-term relationship between the prices of natural gas in the United Kingdom and oil-indexed natural gas in the North West European market is the result of seasonal arbitrage. This paper empirically investigates this long-term relationship and offers two main contributions: (i) To the best knowledge of the author, this is the first study to take into ac- count important UK spot gas market drivers such as seasonality, temperature and gas storage injection/withdrawal behaviour when examining the structural relationship between UK and Continental European markets. (ii) The effect of UK import capacity extensions since 2005, through both pipeline and LNG regasification capacity, on this long-term relationship will be analyzed. The results suggest that there is a significant structural break in 2006 when the two markets decouple and move from an old to a new, much weaker, long-term relationship. From the end of 2008 onwards, the time at which UK LNG imports started to increase, this long-term relationship appears to break down altogether.
    Keywords: LNG; natural Gas; oil-indexation; Cointegration; Structural Breaks; Unobserved Components Model
    JEL: Q41 Q47 G10
    Date: 2012–12–19
  22. By: Evan Stephens (University of Queensland); Liam Wagner (Department of Economics, University of Queensland); Ian Ross (University of Queensland); Ben Hankamer (University of Queensland)
    Keywords: biofuels, algal biofuels, alternative energy
    JEL: Q40 Q42
    Date: 2012–12
  23. By: Bruce A. Babcock (Center for Agricultural and Rural Development (CARD))
    Abstract: The US ethanol industry faces numerous challenges over the next two years. The 2012 drought sharply increased corn prices, so profit margins will be low until least the 2013 corn crops are harvested. A saturated ethanol market means that ethanol mandates that are scheduled to be implemented in the next two years can possibly be met only if ethanol prices are heavily discounted. Thus, profit margins will continue to be low even if production costs fall after the next crop is harvested. In addition, buyers of ethanol can draw on blending credits they have accumulated over the last few years in lieu of ethanol to meet their obligations under the Renewable Fuel Standard (RFS). These banked credits are called RINs (Renewable Identification Numbers) and allow the Environmental Protection Agency (EPA) track how much renewable fuels are being used. When domestic consumption of ethanol exceeds mandated levels, the surplus RINs can be banked to meet future mandates. This policy brief provides insights into how the next two years will unfold in the ethanol market by focusing on whether the supply of banked RINs will be used in 2013 to help offset current high production costs or in 2014 to help offset low ethanol prices. The guiding principle of the analysis is that owners of banked RINs will use them when they have the greatest value. This principle implies that RINs will be used in 2013 until their 2013 value is equal to their expected value in 2014. The analysis indicates that because of the E10 blend wall and high ethanol production costs, a significant portion of banked RINs will be used in 2013. If, as seems likely, imported sugarcane ethanol is used to meet the portion of the advanced biofuels mandate that is not met by biodiesel meeting its own mandate, then almost all the banked RINs should be used in 2013. This result assumes that corn yields return to trend-line levels in 2014. If sugarcane ethanol is not imported to meet the advanced mandate, then fewer banked RINs will be needed in 2013 to offset heavily discounted ethanol prices. Whether sugarcane ethanol is used or not, the fundamental market forces indicate that RIN prices will be low in both 2013 and 2014. The ability to use banked RINs increases the feasibility of meeting the 2013 and 2014 mandates and is what keeps expected RIN prices low in both years. Low future prices are why conventional biofuel RIN prices are so low today. This result, though, depends on the assumption that heavily discounted ethanol will incentivize significant amounts of additional ethanol consumption from owners of flex fuel vehicles or by an unexpectedly large and rapid movement to use of E15. If this additional consumption does not materialize, then it seems that EPA will have no choice but to waive conventional ethanol mandates in 2014 because mandated consumption will exceed the ability of consumers to use ethanol as a fuel. Such a waiver, were it to occur, would also validate current low RIN prices.
    Date: 2012–12
  24. By: Bicalho, Tereza
    Keywords: Brésil; biocarburants; biodiesel; comptabilité environnementale;
    JEL: Q34 Q32
  25. By: Nicholas J. Sanders (Department of Economics, The College of William and Mary)
    Abstract: In 1998, a number of polluting industries, including fossil fuel power plants, were added to the list of firms publicly reporting pollution releases in the Toxics Release Inventory (TRI). This caused a large increase in reported toxic pollution, and a corresponding decrease in median housing prices of 2-3 percent in impacted areas. Contrary to prior findings that TRI information does not influence household actions, I find the additional TRI data caused households to revise priors on ambient pollution levels. This implies that, even with market-based environmental regulation, there remains a role for government as provider of information on environmental conditions.
    Keywords: pollution, hedonic estimation, Toxics Release Inventory
    JEL: D62 H23 Q50 Q53
    Date: 2012–12–11
  26. By: Honma, Satoshi
    Abstract: This study computes and analyzes the environmental and economic efficiencies of 31 Asia-Pacific countries and regions in 2007, using the slack-based measurement (SBM) data envelopment analysis (DEA) approach. Four economies, Brunei, Macao, Samoa, and Singapore, are found to be environmentally efficient. Of this group, only Brunei and Samoa are found to be economically efficient. We subsequently examined an environmental Kuznets curve type relationship between the environmental efficiency and per capita income. The empirical results show that a U-shaped relationship exists and the turning point per capita income is 4,239 US dollar.
    Keywords: Data envelopment analysis; environmental efficiency; environmental Kuznets curve
    JEL: Q54 O4
    Date: 2012–11–30
  27. By: Muhammad, Shahbaz; Qazi Muhammad, Adnan Hye; Aviral Kumar, Tiwari
    Abstract: This study examines the linkages among economic growth, energy consumption, financial development, trade openness and CO2 emissions over the period of 1975Q1-2011Q4 in the case of Indonesia. The stationary analysis is performed by using Zivot-Andrews structural break unit root test and the ARDL bounds testing approach for a long run relationship between the series in the presence of structural breaks. The causal relation between the concerned variable is examined by the VECM Granger causality technique and robustness of causal analysis is tested by innovative accounting approach (IAA). Our results confirm that the variables are cointegrated; it means that the long run relationship exists in the presence of structural break stemming in the series. The empirical findings indicate that economic growth and energy consumption increases CO2 emissions, while financial development and trade openness compact it. The VECM causality analysis has shown the feedback hypothesis between energy consumption and CO2 emissions. Economic growth and CO2 emissions are also interrelated i.e. bidirectional causality. Financial development Granger causes CO2 emissions. The study opens up a new policy insights to control the environment from degradation by using energy efficient technologies. Financial development and trade openness can also play their role in improving the environmental quality.
    Keywords: Growth; Energy; Financial Development; CO2 Emissions
    JEL: Q4
    Date: 2012–12–10
  28. By: Tisdell, Clement A.
    Abstract: Summarises some of the predicted natural consequences of increasing concentrations of greenhouse gases in the atmosphere. Changes in temperature, climates, physical and chemical impacts on the biosphere as well as biodiversity loss are considered. Then some of the expected social and economic consequences of global warming are discussed. Subjects considered are the impacts of global warming on bio-industries and social conditions, the economic costs of greenhouse gas emissions and the effects of climate change. Attention subsequently turns to the environmental Kuznets curve and the inappropriate use of the relationship. For example, it is stressed that reducing the intensity of greenhouse gas emissions in relation to GDP does not necessarily reduce total greenhouse gas emissions. Furthermore, even if they are reduced, greenhouse gases can continue to accumulate in the atmosphere. Some suggestions are then made about how the global warming problem might be addressed.
    Keywords: adaptation to global warming, biodiversity loss, bio-industries, climate change, economics costs of global warming, environmental Kuznets curve, global warming., Environmental Economics and Policy, Q01, Q54, Q57,
    Date: 2012–12
  29. By: Sagasta Elorza, Amagoia; Usategui Díaz de Otalora, José María
    Abstract: We analyze optimal second-best emission taxes in a durable good industry under imperfect competition. The analysis is performed for three different types of emissions and for situations where the good is rented, sold or simultaneously sold and rented. We show, for durable goods that may cause pollution in a period (or in periods) different from the production period, that the expected overall emission tax and the expected total marginal environmental damage per unit produced in each period are the relevant variables to consider in the analysis of overinternalization and in the comparison of optimal emission taxes for renting, selling and renting-selling firms. Our results allow to extend some previous results in the literature to these durable goods and provide an adequate perspective on some other results (in particular, we point out the limitations of focusing only, for those durable goods, on the level and effects of the optimal emission tax in the production period).
    Keywords: optimal emission taxes, overinternalization,, durable good, emission types, imperfect competition
    JEL: Q58 Q53 H23 L13
    Date: 2012
  30. By: Iverson, Terrence
    Abstract: The paper derives an explicit formula for the near-term carbon price in a dynamic stochastic general equilibrium climate model in which agents employ arbitrary non-constant time preference rates. The paper uses a simplified version of the model in Golosov et al. (2011), though we argue that the added assumptions are unlikely to matter for our conclusions. The formula is derived first under the assumption that the initial decision-maker has a commitment device, then solving for the unique subgame perfect equilibrium. Somewhat remarkably, the near-term carbon price is the same in both cases. We further show that the near-term carbon price remains unchanged for all potential beliefs about the time preference structure of future generations. It follows that concerns about time inconsistency can be safely ignored when applying the derived formula. The carbon price is the same as the Pigouvian tax in the equilibrium with commitment, and it is bigger than the Pigouvian tax in the equilibrium without commitment provided damages are sufficiently persistent. The formula reduces to the carbon price formula in Golosov et al. (2011) when discounting is constant, and it reduces to the carbon price formula in Gerlagh and Liski (2012) when discounting is quasi-hyperbolic.
    Keywords: hyperbolic discounting; time inconsistency; optimal carbon price
    JEL: Q5
    Date: 2012–12–13
  31. By: Ivana Capozza; Joseph Curtin
    Abstract: Germany committed itself to challenging greenhouse gas (GHG) emission reduction targets to 2020 and beyond. It has implemented a composite mix of policy measures to achieve its climate change mitigation goals, including a range of market-based instruments. These measures have helped reduce domestic GHG emissions, as well as achieve other policy objectives. However, they have generated multiple (explicit and implicit) carbon prices, which can reduce the overall cost-effectiveness of climate change mitigation policy. This paper examines the carbon prices that have emerged from the implementation of three key market-based instruments in Germany: energy taxes, vehicle taxes and the EU Emissions Trading System. It also reviews the use of feed-in tariffs to promote electricity generation from renewable sources, with a focus on the implied GHG abatement costs and the interactions with other environmental policy instruments. This Working Paper relates to the 2012 OECD Environmental Performance Review of Germany: rmany2012.htm<BR>L’Allemagne s’est engagée à respecter des objectifs ambitieux de réduction des émissions de gaz à effet de serre (GES) en 2020 et ultérieurement. Elle met en oeuvre tout un éventail de mesures pour atteindre ses objectifs d’atténuation du changement climatique, et notamment divers instruments économiques. Ces mesures ont contribué à réduire les émissions nationales de GES, et à atteindre d’autres objectifs. Cependant, il en découle plusieurs prix du carbone (explicites et implicites), qui risquent de nuire à l’efficacité globale par rapport aux coûts de son action. Le présent rapport examine les prix du carbone qui se dégagent de l’application de trois instruments économiques clés en Allemagne : les taxes sur l’énergie, les taxes sur les véhicules et le système d'échange de quotas d'émission de l’UE. Il aborde aussi le recours aux tarifs d’achat pour encourager la production d’électricité moyennant des sources renouvelables, en mettant l’accent sur les coûts implicites de réduction des émissions de GES et les interactions avec d’autres instruments de la politique d’environnement. Ce document de travail se rapporte à l’Examen environnemental de l'OCDE de l’Allemagne, 2012 : delocdeallemagne2012.htm
    Keywords: Germany, emissions trading systems, environmentally related taxes, environmentally harmful subsidies, carbon price, Allemagne, taxes liées à l'environnement, système d’échange de droits d’émissions, subventions dommageables pour l’environnement, prix du carbone
    JEL: H23 Q48 Q52 Q54 Q58
    Date: 2012–12–14
  32. By: Meredith Fowlie; Mar Reguant; Stephen P. Ryan
    Abstract: We assess the long-run dynamic implications of market-based regulation of carbon dioxide emissions in the US Portland cement industry. We consider several alternative policy designs, including mechanisms that use production subsidies to partially offset compliance costs and border tax adjustments to penalize emissions associated with foreign imports. Our results highlight two general countervailing market distortions. First, following Buchanan (1969), reductions in product market surplus and allocative inefficiencies due to market power in the domestic cement market counteract the social benefits of carbon abatement. Second, trade exposure to unregulated foreign competitors leads to emissions “leakage” which offsets domestic emissions reductions. Taken together, these forces result in social welfare losses under policy regimes that fully internalize the emissions externality. In contrast, market-based policies that incorporate design features to mitigate the exercise of market power and emissions leakage can deliver welfare gains.
    JEL: L5 Q5
    Date: 2012–12
  33. By: Aghion, Philippe; Dechezleprêtre, Antoine; Hemous, David; Martin, Ralf; Van Reenen, John
    Abstract: Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between "dirty" (internal combustion engine) and "clean" (e.g. electric and hybrid) patents across 80 countries over several decades. We show that firms tend to innovate relatively more in clean technologies when they face higher tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers and from the firm's own innovation history. Using our model we simulate the increases in carbon taxes needed to allow clean to overtake dirty technologies.
    Keywords: automobiles; Climate Change; Directed Technical Change; Innovation
    JEL: L62 O13 O3
    Date: 2012–12
  34. By: Pauline Lacour (CREG - Centre de recherche en économie de Grenoble - Université Pierre Mendès-France - Grenoble II : EA4625); Jean-Christophe Simon (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : FRE3389 - Université Pierre Mendès-France - Grenoble II)
    Abstract: En analysant la mise en œuvre du Mécanisme pour un Développement Propre (MDP), cet article vise à préciser les modalités d'intégration des pays en développement dans le régime climatique afin de s'interroger sur deux aspects particuliers : la dimension régionale de ce mécanisme de flexibilité -- dont la plupart des projets ont été accueillis en Asie -- et la pertinence des projets MDP face au défi d'une bonne articulation entre les politiques climatiques et les stratégies de développement soutenable. Ces aspects sont analysés dans le cas des pays d'Asie Orientale, qui présentent à la fois un enjeu fort de réduction des émissions de CO2 et une diversité de situations concernant les secteurs ciblés et les politiques énergie-climat.
    Keywords: politique climatique ; pays en Développement ; mécanisme pour un développement propre ; Asie, régime climatique
    Date: 2012–12
  35. By: Marshall, Elizabeth P.; Weinberg, Marca
    Abstract: Over the past few decades, conservation programs have provided incentives to farmers to make production decisions that place a priority on environmental improvements in addition to production of commodities (Claassen et al., 2007). More recently, markets have been developed or proposed that allow farmers to sell “credits” for environmental improvements in water quality, carbon sequestration, wetlands restoration, and other areas. These markets use an environmental baseline to help determine whether the proposed improvements qualify for market credits, and, if so, the number that should be awarded. Selection of a baseline emissions level is often a critical and contentious element of program design for carbon or water-quality credit markets. Baselines help ensure that credits generated for sale through markets are “additional” (i.e., the environmental improvements qualifying for offset credits would not have taken place in the absence of the market or program incentive). Additionality is frequently cited as a requirement in defining the integrity of environmental improvement credits (Three-Regions Offsets Working Group, 2010). Giving credits or payments for changes that have already been implemented, or are likely to be implemented soon even in the absence of the program, can undermine the environmental gains expected from the program. Due to the complexity and costs associated with defining, measuring, and verifying environmental baseline levels across heterogeneous landscapes, program managers may face a tradeoff between the precision with which changes in environmental performance can be estimated and the cost of refining those estimates. Balancing these two considerations is often the motivation behind selection of a particular baseline in environmental market design. Other market design considerations include those related to program eligibility restrictions, scope of measurement (i.e., accounting for leakage), offset permanence, and measurement uncertainty.1 This brief focuses exclusively on baselines to clarify their role in the larger context of offset market design.
    Keywords: Demand and Price Analysis, Environmental Economics and Policy,
    Date: 2012–02
  36. By: Daniels, K.A.; Huppert, H.E.; Neufeld, J.A.; Reiner, D.
    Abstract: The Earth's climate is changing and the release of carbon dioxide (CO2) is recognised as the principal cause. To meet legally binding targets, UK GHG emissions need to be cut by at least 80% of the 1990 levels by 2050. With an increase in future fossil fuel use, Carbon Capture and Storage (CCS) is the only method of meeting these targets. Some key challenges face the deployment of CCS including cost, uncertainty of CCS deployment, the risks of long-term CO2 storage, public communication and scale. Research at the University of Cambridge is resolving these issues and assisting the deployment of CCS technology. The right regulatory framework also needs to be set so that the technology is commercially deployed. The current UK policy framework for CCS is outlined in this document and the immediate barriers to deployment are highlighted. The ongoing CCS research taking place primarily at the University of Cambridge is described. There are many steps that need to be taken if CCS deployment is to ultimately succeed; this document attempts to highlight these steps and address them.
    Keywords: Climate change; atmospheric greenhouse gas emissions; Carbon Capture and Storage (CCS); the CCS Roadmap; Electricity Market Reform; Carbon Capture Technologies; Carbon Sequestration; storage reservoir processes
    JEL: O13 Q40 Q41 Q42 Q48 Q51 Q54 Q55 Q58
    Date: 2012–12–19
  37. By: Oral, Isil; Santos, Indhira; Zhang, Fan
    Abstract: This paper analyzes the differential impact of climate change policies on employment in Eastern Europe and Central Asia. In particular, the paper examines (i) how vulnerable labor markets are in Eastern European and Central Asian countries to future carbon regulation, and (ii) what countries can do to mitigate some of the potential negative effects of these regulatory changes on employment. In many aspects, the nature of the shock associated with climate regulation is similar to that associated with an increase in energy prices. Constraints on carbon emissions put a price on climate-damaging activities and make hydrocarbon-based energy production and consumption more expensive. As a result, firms in energy-intensive industries may react to higher energy prices by reducing production, which in turn would lead to lower employment. In the presence of frictions in labor markets, these sector shifts will cause resources to be unemployed, at least in the short term. Using principal component analysis, the paper finds that Eastern European and Central Asian countries vary greatly in their vulnerability and adaptability of employment to carbon regulation. Since the economy takes time to adjust, policy-makers will need to ensure that the incentives are there for new firms to emerge and employ workers, and that workers have the skills to respond to that demand. Moreover, governments have a role to play in ensuring that workers that are displaced have a proper safety net that will not only help in protecting their welfare, but will also allow workers to make more efficient labor market transitions.
    Keywords: Labor Markets,Energy Production and Transportation,Markets and Market Access,Labor Policies,Climate Change Economics
    Date: 2012–12–01
  38. By: Karl Steininger (Karl-Franzens University of Graz); Christian Lininger (Karl-Franzens University of Graz); Susanne Droege (SWP - German Institute for International and Security Affairs); Dominic Roser (Karl-Franzens University of Graz); Luke Tomlinson (University of Oxford)
    Abstract: The bottom-up national approaches to implement global climate policy under the current United Nations scheme raise concerns about carbon leakage and distributive justice. To limit these concerns, some propose switching to a consumption based emission accounting principle and implementing an associated policy reorientation. We analyse the potential merits of such a switch to a consumption-based approach, in the context of unilateral climate policies implemented by a border adjustment for the carbon content of imports and exports. First, we look into the relationship between the accounting principle and justice considerations. We distinguish the Responsibility Question (Do consumers' or producers' choices bring the emissions about?) and the Policy Base Question (Should consumption or production serve as the policy base?). Second, we investigate whether following a consumption- versus production-based policy implies a difference in terms of costeffectiveness in achieving the environmental target. We find that consumers and producers are jointly responsible for emissions. We also find that from the perspective of justice this does not settle the question whether consumption or production ought to serve as the climate policy base. Rather, this depends on the distributive consequences of switching to consumption-based accounting. We find that (global) costeffectiveness is currently higher when unilateral climate policy by industrialized countries is consumption-based, and accompanied by clean technology transfer. If implemented in terms of border carbon adjustments, justice considerations suggest channeling import tax revenues to developing and emerging economies. We also find that the carbon border adjustment switch need not include export rebates, if these are difficult on political grounds.
    Keywords: post 2012 climate policies, CBDR, competitiveness, carbon leakage, border carbon adjustments
    JEL: Q56 F42
    Date: 2012–11
  39. By: Wilfried Ehrenfeld
    Abstract: This discussion paper provides the contextual framework of the cumulative disser-tation on “Climate Change and Corporate Innovation Processes” at the Technical University of Dresden. It consists of six already published papers and articles. Because of the present public discussion on climate change, European industrial companies face new requirements. This mainly includes new claims, which are imposed on them by the enterprises’ operational environment. One way to respond to these new claims is adaptation through innovation. The overall objective of this thesis is to investigate how the perception of climate change on the part of stakeholders affects corporate innovation processes. In this context, these issues are examined both theoretically and empirically. The thesis thus contributes to various literary strands in the area of “entrepreneurial strategies for adapting to climate change.”
    Keywords: climate change, innovation, CO2, EU ETS, risk
    JEL: Q55 O33 O38 Q54 O31
    Date: 2012–12
  40. By: Cavagnac, Michel; Cheikbossian, Guillaume
    Abstract: This paper analyzes the problem of international environmental cooperation as a coalition formation game. For this purpose, we develop a simple model with three countries of unequal size. Strate- gic interactions between those countries come from the imperfect competition among producers in global markets and from the transboundary pollution generated by the ?rms. To capture e¢ ciency gains from coordinating policies, countries can join a coalition and sign an international environmental agreement. The equilibrium coalition structure then depends on the country-size asymmetry and on the marginal environmental damage. Interestingly, we show that the grand coalition is less likely to emerge as an equi- librium outcome once two countries form a subcoalition. Furthermore, the further enlargement of the initial subcoalition can be blocked either by the outsider or by the insiders.
    Keywords: Tax coordination, Transboundary Pollution, International Trade, Oligopoly, Coalition Formation
    JEL: F55 H23
    Date: 2012–04
  41. By: Brahmanand Mohanty (Asian Development Bank Institute (ADBI)); Martin Scherfler; Vikram Devatha
    Abstract: The Asia-Pacific region is witnessing rapid economic growth. Along with rising incomes, the lifestyles of the large middle class are moving quickly towards a buy-and-discard consumer model that involves carbon-intensive products and services. These increase dependency on the Earth’s finite natural resources and simultaneously produces waste, putting a significant strain on the environment. Such lifestyles, coupled with scarce resources and frequent natural hazards associated with climate change, pose serious threats to the future of the planet. Developed countries with high footprint per capita are under pressure to adjust their lifestyles that respect the Earths’ carrying capacity. As far as countries in the Asia and Pacific region are concerned, mere technological solutions such as improving production efficiency will not be adequate to address climate change; a paradigm shift to more resource-efficient and low-carbon lifestyles, that promote inclusive and efficient consumption is the need of the hour. Several examples of good practices and community initiatives can be found around the world, but these have yet to be brought to the mainstream in order to achieve tangible results. Governments and policy makers in the Asia-Pacific can join hands with businesses and civil society to accelerate this transition—from a consumption-oriented economic paradigm, to a more sustainable way of production and consumption. This paper attempts to identify lifestyle changes at the individual level, and behavioral changes at the community level that could offer high carbon abatement potential. It also provides some good practices of public policies and policy recommendations that can be pivotal in making a business case of low-carbon and eco-efficient lifestyles, strengthening collective awareness, and influencing public decision-making in developing countries in Asia.
    Keywords: Societal Behavior Changes, Local climate strategy, lifestyle changes, Asia, the Asia-Pacific
    JEL: Q2 Q21 Q28 F18 H23
    Date: 2012–11
  42. By: Fernando Borraz
    Abstract: En un artículo de prensa en el International Herald Tribune del 27 de septiembre de 2007, Ban Kimoon, secretario general de Naciones Unidas establecía: “A partir de ahora el cambio climático no es un tema principalmente del medio ambiente (…) Como un tema político, el cambio climático se convierte en estrechamente vinculado con el desarrollo económico (…)”. Este estudio analiza el vínculo entre las tecnologías de la información y comunicación y el cambio climático en países en desarrollo y plantea una agenda de investigación sobre el tema. Las TIC tienen un rol relevante en los países en desarrollo por su aporte en reducir las emisiones de otros sectores de la economía; por ejemplo, a través del teletrabajo, las teleconferencias y los sistemas inteligentes, que permiten una menor utilización de energía y, por lo tanto, menores emisiones de gases. Sin embargo, el proceso de adaptación mediante TIC debe tener en cuenta la desigualdad y pobreza en países en desarrollo, con el fin de evitar exacerbar las mismas.
    Date: 2012–12–16
  43. By: Miklós Antal; Ardjan Gazheli; Jeroen van den Bergh
    Abstract: "Writings on sustainability transitions generally do not say much about the particularities of the behavior of individuals and organizations. This is somewhat surprising since an important problem which transition management needs to tackle is inertia or resistance to change. Transition policy needs to account for the bounded rationality and social interaction of agents so as to arrive at a more realistic view of the limits and opportunities for realizing a transition. System failures like lock-in, unpredictability and surprise in innovation systems, and network interaction between agents have received some attention, but their behavioral underpinnings can be improved. The identification of relevant stakeholders in transition processes and their unique behavioral features is crucial for understanding how to stimulate transitions. In this paper we investigate opportunities to integrate various theories and disciplinary views on behavior into thinking about sustainability transitions with the aim to arrive at recommendations for more effective policies. For this purpose, we combine insights from the literatures on agency in sustainability transitions, on environmental policy under bounded rationality and social interactions, and on behavioral foundations of learning and innovation."
    Keywords: Agency; behavioural economics; bounded rationality; innovation; learning; sustainability; transition
    JEL: D03 P28 P36 Q58
    Date: 2012–12
  44. By: Tisdell, Clement A.
    Abstract: Most ecological and environmental resources are scarce. Ecological economics and environmental economics are concerned with ways in which these resources can be better managed to reduce economic scarcity or more generally, administered to achieve particular objectives most economically. The way in which environmental impacts from economic activity can add to economic scarcity is illustrated and the importance of accounting for opportunity costs in assessing environmental changes is stressed. Growing concerns in recent decades about environmental issues have been reflected in important international political initiatives relating to the environment and development. These initiatives are identified and the general sources of environmental change (natural and human-induced) are considered with most attention being given to the relationship between economic growth and the environment. Subsequently, changing views of economists about the relationships between economic growth, the stock of natural resources and the state of the environment are outlined and discussed. The views of classical and neo-classical economics are briefly examined but most attention is given to the views of neo-Malthusians and their concerns about the sustainability of economic growth. The extent of environmental change as a result of global economic growth and development has undoubtedly contributed to the growing importance of ecological and environmental economics.
    Keywords: economic scarcity, environmental change, global environmental arguments, neo-Malthusian economics, opportunity costs, sustainable economic development, sustainable economic growth., Environmental Economics and Policy, Q01, Q50, Q56,
    Date: 2012–12
  45. By: Julie A. Nelson
    Abstract: Many public debates about climate change now focus on the economic "costs" of taking action. When called on to advise about these, many leading mainstream economists downplay the need for care and caution on climate issues, forecasting a future with infinitely continued economic growth. This essay highlights the roles of binary metaphors and cultural archetypes in creating the highly gendered, sexist, and age-ist attitudes that underlie this dominant advice. Gung-ho economic growth advocates aspire to the role of The Hero, rejecting the conservatism of The Old Wife. But in a world that is not actually as safe and predictable as they assume, the result is guidance from The Fool. Both intellectual and cultural change are necessary if the voice of The Wise Grandmother (which may come through women or men) is to—alongside The Hero—receive the attention it deserves.
    Date: 2012–09

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