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on Energy Economics |
| By: | Miyuki Taniguchi (Graduate School of Economics, Keio University) |
| Abstract: | This study aims to measure the impact of liberalization on the efficiency of electricity production in Japan, and to examine whether or not economies of scope exist between electricity generation and transmission. Since 1995, liberalization of the electricity market in Japan has been phased in and regulations on entry have been relaxed three times. One motivation for these regulatory changes has been to improve the efficiency of electricity production by introducing competition. Using a panel data set on the nine main power companies in Japan over the period 1970-2010, fixed-effects and stochastic frontier estimates of the cost function are obtained and compared. Estimates of the cost function show that liberalization has improved cost efficiency. Economies of scope are found to exist for all firms. |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:kei:dpaper:2012-027&r=ene |
| By: | Hélène Joachain; Frédéric Klopfert |
| Abstract: | The process of deploying smart meters in EU’s households is following its course. Cost-benefit analyses are being carried out in Member States and new Directives are replacing the one that gave the initial impulse. However, throughout this process, smart meters are always presented as a way to reduce customer energy consumption. This makes potential energy savings in households a crucial element in the debate. But what is the rationale to expect energy savings in households and how are those savings evaluated? A major strand of research in this field has investigated to which extent the feed-back provided by smart meters could lead to behavioural changes or investment decisions that could, in turn, lower energy consumption. However, there is another dimension to the matter which has, in our view, not received the attention it deserves. This dimension revolves around households’ motivation to actually use the feed-back and advices provided in order to lower their energy consumption. Besides, how this motivation could be sustained over time is also a crucial issue, as some studies show that energy savings tend to fade with time. This paper is addressing the possibility to use the smart meter infrastructure to motivate households for energy savings. It is centred on the design of innovative policy instruments that couple non-financial incentives (complementary currencies) to smart meters. Indeed, non-financial incentives have specific features in terms of symbolic value, social dimension, limitation of the rebound effect and “green challenge” that could initiate and sustain household motivation over time. A form of regulatory architecture is also explored, as well as the coupling with a market-based financial incentive inspired by the concept of white certificates with households as obliged actors. |
| Keywords: | Energy savings; energy policy; behavioural change; smart metering; complementary currency |
| Date: | 2013–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/138398&r=ene |
| By: | Aurelio Volpe (CSIL Centre for Industrial Studies); Stefania Pelizzari (CSIL Centre for Industrial Studies); Gelsomina Catalano |
| Abstract: | This market research aims to provide an overview of the Eco Building (or Green) activity in the European market. Energy efficiency is today at the top of the European political agenda, as from the analysis of chapter one (Legal Framework). It is part of the triple goal of the '20-20-20' initiative adopted by the European Union in 2008, which aims to achieve by 2020 a saving of 20% in primary energy consumption, a reduction of 20% in greenhouse gas emissions and an increase of 20% in renewable resources of energy. The CSIL multiclient report The European Market for Eco building products is the result of: analysis of the legislative frame network at the EU level (first chapter); analysis of the existing stock of available statistics on the building activity in Europe (most of it is reported in the second chapter of the Report); a number of simplified simulations of cost/benefit analyses for specific actions on energy saving, for residential and commercial buildings; desk research and field research (this last on the Italian market);data mining (turnover, employees, web address) for a wide number of industrial companies involved in Eco-building. Countries covered from the statistical analysis (building and economic indicators): Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Spain, Sweden, United Kingdom. The attached Excel spreadsheet is useful for the qualitative calculation of both the energy and the economic savings of the main actions that can be taken, making some assumptions. Chapter 5 shows the last available turnover, employment, web address for over 1000 players in this field, according to different categories: architectural and engineering companies, builders and developers, manufacturer of prefabricated buildings, water management, photovoltaic systems, renewable energy, building automation, industrial controls. |
| JEL: | L11 L15 L22 L25 L68 L73 L81 Q51 Q55 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:mst:csilre:eu23&r=ene |
| By: | Matthew J. Holian; Matthew E. Kahn |
| Abstract: | Urban density both facilitates consumption opportunities and encourages individuals to drive less and walk and use public transit more. Using several data sets, we document that high quality of life consumer center cities are low carbon cities. We discuss possible causal channels for this association. |
| JEL: | Q4 Q54 R41 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18735&r=ene |
| By: | Hossein Mirshojaeian Hosseini (Graduate School for International Development and Cooperation, Hiroshima University); Shinji Kaneko (Graduate School for International Development and Cooperation, Hiroshima University) |
| Abstract: | To prevent further increases in energy consumption, the Iranian government commenced energy subsidy reform in 2010. This paper investigates the fuel conservation effects of the reform in Iran using a homothetic translog cost function that provides estimates of the own- and cross-price elasticities of fuel demands. The percentage reduction in fuel demands is estimated using the likely effect of the reform on fuel prices. The results reveal that the reform may not be as successful as assumed. Under optimistic assumptions, the reform may reduce energy consumption marginally, and under pessimistic assumptions, it may increase energy consumption because of inelastic fuel demands and substantial substitution between fuels. |
| Keywords: | Energy subsidy reform, Energy conservation, Iran, Translog cost function |
| JEL: | C32 Q38 Q43 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:hir:idecdp:3-1&r=ene |
| By: | Klumpp, Tilman (University of Alberta, Department of Economics); Su, Xuejuan (University of Alberta, Department of Economics) |
| Abstract: | We examine the incentives of access-regulated firms to invest in infrastructure facilities they must share with competitors. The non-strategic incentives imply that investment depends positively on the market size. The strategic incentives imply that investment also depends on market composition, namely, the market shares of the facility owner and its competitors. Using a dataset of regulated electric utilities in the United States, we find evidence that transmission investments are indeed made strategically. Ceteris paribus, utilities are less likely to invest, and investment levels are lower, when competitors occupy a larger share of the market. |
| Keywords: | infrastructure investment; network industries; open access; access regulation; electricity wholesale market |
| JEL: | D21 D22 D43 K23 L43 L94 |
| Date: | 2013–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2013_002&r=ene |
| By: | Andaluz-Alcazar, Alvaro |
| Abstract: | La distribution reste le segment du secteur de l’électricité le moins étudié. Mais les débats s’animent autour d’elle depuis deux ou trois ans quant aux changements structurels possibles du fait notamment de l’émergence amorcée ou annoncée des smart technologies: ils pourraient en effet remettre en cause dans les prochaines années les modèles d’affaires actuels des GRD et leur mode de régulation. Mais de nombreuses incertitudes pèsent sur leurs choix d’investissements. La thèse vise à anticiper les évolutions des modèles d’affaires des GRD en Europe à l’horizon 2030 en tenant compte des paramètres technologiques, macroéconomiques et géographiques. Elle propose une vision théorique et analytique originale, en introduisant tout d’abord la notion de « technologies à potentiel naturel » pour étudier le développement optimal de différentes technologies par contexte géographique et par scénario de référence. A partir de ces résultats, elle définit alors différentes évolutions possibles des activités de la distribution. Le croisement de ces futurs avec les différentes stratégies d’investissement envisageables pour les GRD permet de définir les futurs modèles d’affaires des GRD européens en fonction des combinaisons de smart technologies déployées et des contextes géographiques contrastés. Dans sa dernière partie, la thèse s’intéresse tout particulièrement aux changements prévisibles dans la relation GRD / régulateur sectoriel via une formalisation par la théorie des jeux. Enfin, en s’appuyant notamment sur les études théoriques de Brian Arthur, la thèse identifie les différents effets lock-in qui pourraient entraver l’émergence des smart technologies et les solutions possibles. |
| Abstract: | Distribution activities have been the least studied domain of the electricity sector; over the last few years though, strong debates emerged with regards to the future. Indeed, this activity might soon undergo some deep structural changes, particularly as smart technologies are deployed: theses technologies could strongly impact the current business cases of the DSOs, along with the regulation now in effect, at a time when numerous uncertainties weigh on the distributors choices of investments. This thesis investigates the distributors’ business models evolutions in Europe for the next 20 years, based on technological, macroeconomic and geographical parameters. It proposes an original approach, both theoretical and analytical, to better understand the future world of DSOs. At first, it introduces the notion of “technologies with natural potential” in order to study the optimal development of the different technologies, by geographical context and macroeconomic scenarios. From these results, it then defines various possible evolutions of the distribution activities. Crossing these futures with the various possible investment strategies for the DSOs makes it possible to define the future business models of the European DSOs, according to various combinations of smart technologies displayed and contrasted geographical contexts. In its last part, the thesis studies the predictable changes in the relation DSO / regulator, using a formalization based on the Games Theory; this work is complemented by identifying the different lock-in effects (using the approach described in Brian Arthur’s studies) that could hinder the emergence of smart technologies, and the possible solutions. |
| Keywords: | DSO; lock-in; regulation; smart technologies; distribution networks; electricity networks; Industrial organization; GRD; Système électrique; Régulation; Réseaux de distribution; |
| JEL: | L14 L94 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/10862&r=ene |
| By: | Gawel, Erik; Purkus, Alexandra |
| Abstract: | With the share of renewable energies within the electricity sector rising, improving their market (i.e. inclusion in the allocative processes of the electricity market) and system integration (i.e. enhanced responsibility for grid stability) is of increasing importance. To transform the energy system efficiently while ensuring security of supply, it is necessary to increase the alignment of renewable electricity production with short- and long-term market signals. By offering plant operators a premium on top of the electricity market price, premium schemes represent a potential option for achieving this, and have been implemented by several EU member states. This paper focuses on the case study of the German market premium scheme, which has been adopted as part of the 2012 amendment of the Renewable Energy Sources Act. Building on an evaluation of early experiences, we discuss whether the market premium in its current design improves market and/or system integration, and if it seems suitable in principle to contribute to these aims (effectiveness). Also, potential efficiency gains and additional costs of administering integration are discussed (efficiency). While market integration in a narrow sense (i.e. exposing renewables to price risks) is not the purpose of the German premium scheme, it has successfully increased participation in direct marketing. However, windfall profits are high, and the benefits of gradually leading plant operators towards the market are questionable. Incentives for demand-oriented electricity production are established, but they prove insufficient particularly in the case of intermittent renewable energy sources. It seems therefore unlikely that the German market premium scheme in its current form can significantly improve the market and system integration of renewable energies. To conclude, we provide an outlook on alternative designs of premium schemes, and discuss whether they seem better suited for addressing the challenges ahead. -- |
| Keywords: | Renewable Energies,Market Integration,System Integration,Market Premium,Renewable Energy Sources Act (EEG),Efficiency |
| JEL: | H23 Q42 Q48 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzdps:42013&r=ene |
| By: | Schönberger, Philipp |
| Abstract: | In recent years, policies to promote renewable energy have become increasingly popular among municipalities in different parts of the world. This article examines the case of Germany. It argues that municipalities, compared to other state and private actors, already have the potential to play a key role in German renewable energy governance. Although both private actors and the European Union have gained importance in the past 20 years, German municipalities still play a crucial role and can apply five distinct and important modes of governance in the field of renewable energy policy. In this regard, the notion of a general development towards a cooperating and ensuring state, which increasingly delegates its tasks and thus becomes less important, cannot be confirmed in the field of municipal renewable energy governance in Germany. -- Seit einigen Jahren ist in verschiedenen Weltgegenden eine zunehmende Verbreitung kommunaler Ansätze zum Ausbau erneuerbarer Energien zu verzeichnen. Der vorliegende Artikel widmet sich deutschen Kommunen und argumentiert, dass diese im Vergleich zu anderen staatlichen Ebenen und privaten Akteuren das Potenzial haben, eine Schlüsselrolle bei der Energiewende in Deutschland zu spielen. Obwohl private Akteure ebenso wie die Europäische Union in den letzten 20 Jahren an Bedeutung gewonnen haben, spielen Kommunen hier weiterhin eine wichtige Rolle und können im Politikfeld erneuerbare Energien fünf bedeutsame und voneinander abgrenzbare Governance-Modi anwenden. Die weit verbreitete These einer stetigen Entwicklung hin zum so genannten Kooperations- und Gewährleistungsstaat, der seine Aufgaben zunehmend an Private delegiert und an Bedeutung verliert, kann im Bereich kommunaler Erneuerbare-Energien-Politik daher nicht bestätigt werden. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wuppap:186&r=ene |
| By: | Lina Escobar Rangel (CERNA - Centre d'économie industrielle - École Nationale Supérieure des Mines - Paris (ParisTech)); François Lévêque (CERNA - Centre d'économie industrielle - École Nationale Supérieure des Mines - Paris (ParisTech)) |
| Abstract: | Since the first wave of nuclear reactors in 1970 to the construction of Generation III+ reactors in Finland and France in 2005 and 2007 respectively, nuclear power seems to be doomed to a cost escalation curse. In this paper we reexamine this issue for the French nuclear power fleet. Using the construction costs from the Cour des Comptes report, that was publicly available in 2012, we found that previous studies overestimated the cost escalation. Although, it is undeniable that the scale-up ended up in more costly reactors, we found evidence of a learning curve within the same size and type of reactors. This result confirms that standardization is a good direction to look, in order to overcome the cost escalation curse. |
| Keywords: | French nuclear power; construction cost; learning effects |
| Date: | 2012–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00780566&r=ene |
| By: | Gawel, Erik; Strunz, Sebastian; Lehmann, Paul |
| Abstract: | Dieser Beitrag untersucht die Folgen einer polit-ökonomischen Betrachtung des europäischen Emissionshandels (ETS) für die ökonomisch optimale klima- und energiepolitische Instrumentenwahl. Die aus dem wirtschaftswissenschaftlichen Raum prominent vorgetragene Forderung, die energiepolitische Regulierung ausschließlich auf einen möglichst perfekten Emissionshandel zu beschränken und auf ergänzende technologiepolitische Eingriffe zu verzichten, beruht auf drei restriktiven und zugleich realitätsfremden Annahmen: Dass 1) der anthropogene Klimawandel die einzige für die Energieversorgung relevante Externalität ist, daher 2) nur die Begrenzung des CO2-Ausstoßes ein legitimes Umweltziel darstellt und 3) der ETS über ein insoweit optimales Design verfügt, kann jedoch in der Realität nicht vorausgesetzt werden. Vielmehr erscheint der realtypische Emissionshandel aus politökonomischer Sicht als das Resultat eines politischen Regulierungsspiels. Die sich hieraus ergebenden polit-ökonomischen Grenzen des Emissionshandels können flankierende Politikinstrumente insofern legitimieren, als dass die ergänzende Förderung Erneuerbarer Energien (EE) die gesellschaftliche Durchsetzung der gegebenen Klimaziele erleichtert, indem politisch weniger widerstandsträchtige Verteilungsschlüssel der Klimalasten gesellschaftlich organisiert werden. Die Berücksichtigung der tatsächlich bestehenden technologiepolitischen Ziele im Rahmen der Energiewende verstärkt die Notwendigkeit flankierender Politikinstrumente. Denn ein Energiewende-Emissionshandel, der als Einzelinstrument den vollständigen Zielfächer der Energiewende herbeiführt, wäre schon in der Theorie überfordert, geschweige denn in der politischen Praxis durchsetzbar. Die polit-ökonomischen Bedingungen der Energiepolitik zeigen daher zusätzliche Begründungen für einen Policy Mix auf. -- In this paper, we analyse the rationale for an energy policy mix when the European Emissions Trading Scheme (ETS) is considered from a public choice perspective. That is, we argue that the economic textbook model of the ETS implausibly assumes 1) anthropogenic climate change as the only relevant externality related to energy provision, 2) thus, climate protection as the single objective of policy intervention and 3) efficient policy design. Contrary to these assumptions, we propose that the ETS originates from a political bargaining game within a context of multiple policy objectives. In particular, the emissions cap is negotiated between regulators and emitters with the emitters' abatement costs as crucial bargaining variable. This public choice view yields striking implications for the optimal policy mix. Whereas the textbook model implies that the ETS alone provides sufficient climate protection, our analysis calls for additional policies. Hence, support for renewable energies contributes to a more effective ETS-design and may even increase the overall efficiency of climate and energy policy if other externalities and political objectives besides climate protection are considered. |
| JEL: | H23 Q42 Q48 Q |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzdps:22013&r=ene |
| By: | A. Talha Yalta |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:tob:wpaper:1301&r=ene |
| By: | Almut E. D. Veraart (Imperial College London and CREATES); Luitgard A. M. Veraart (London School of Economics) |
| Abstract: | Risk premia between spot and forward prices play a key role in energy markets. This paper derives analytic expressions for such risk premia when spot prices are modelled by Lévy semistationary processes. While the relation between spot and forward prices can be derived using classical no-arbitrage arguments as long as the underlying commodities are storable, the situation changes in the case of electricity. Hence, in an empirical study based on electricity spot prices and futures from the European Energy Exchange market, we investigate the empirical behaviour of electricity risk premia from a statistical perspective. We find that a model-based prediction of the spot price has some explanatory power for the corresponding forward price, but there is a significant additional amount of variability, the risk premium, which needs to be accounted for. We demonstrate how a suitable model for electricity forward prices can be formulated and we obtain promising empirical results. |
| Keywords: | Lévy semistationary process, energy market, spot price, forward price, futures, risk premia, stochastic volatility, European Energy Exchange market. |
| JEL: | C10 C51 G00 G13 |
| Date: | 2013–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:aah:create:2013-02&r=ene |
| By: | Marcelo Bianconi; Joe A. Yoshino |
| Abstract: | We analyze a sample of 64 oil and gas companies of the nonrenewable energy sector from 26 countries using daily observations on return on stock from July 15, 2003 to August 14, 2012. A panel model with fixed effects and Tarch effects shows significant prices for specific risk factors including company size and debt-to-equity and significant prices for common risk factors including the U.S. Dow Jones market excess return, the Vix, the WTI price of crude oil, and the FX of the euro, Chinese yuan, Brazilian real, Japanese yen, and British pound vis-a-vis the U.S. dollar. The evidence from multivariate Garch-DCC models is that the companies have significant heterogeneity in response to specific and common factors. We show that the financial crisis of 2008 is the period of largest conditional volatility and DCC under exposure to all factors. Comparisons of one-day horizon value at risk show that Garch models without taking into account exposure underestimate value at risk. In accounting for the exposure to all factors, we find that both DCC and value at risk increase considerably during the financial crisis and remain larger in magnitude after the financial crisis of 2008. |
| Keywords: | Return on stocks, price of risk, value at risk, oil and gas industry, dynamic conditional correlation (DCC) |
| JEL: | G12 C3 Q3 L72 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:tuf:tuftec:0773&r=ene |
| By: | Ping-Yu Chen (Department of Applied Economics National Chung Hsing University, Taiwan); Chia-Lin Chang (Department of Applied Economics Department of Finance National Chung Hsing University, Taiwan); Chi-Chung Chen (Department of Applied Economics National Chung Hsing University, Taiwan); Michael McAleer (Econometric Institute Erasmus School of Economics Erasmus University Rotterdam and Tinbergen Institute, The Netherlands and Institute of Economic Research Kyoto University, Japan and Department of Quantitative Economics Complutense University of Madrid, Spain) |
| Abstract: | The main purpose of this paper is to evaluate the effect of crude oil price on global fertilizer prices in both the mean and volatility. The endogenous structural breakpoint unit root test, ARDL model, and alternative volatility models, including GARCH, EGARCH, and GJR models, are used to investigate the relationship between crude oil price and six global fertilizer prices. The empirical results from ARDL show that most fertilizer prices are significantly affected by the crude oil price while the volatility of global fertilizer prices and crude oil price from March to December 2008 are higher than in other periods. |
| Keywords: | Fertilizer Price, Oil Price, Volatility. |
| JEL: | Q14 C22 C58 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:kyo:wpaper:844&r=ene |
| By: | Ratti, Ronald A; Vespignani, Joaquin L. |
| Abstract: | Unanticipated increases in the BRIC countries’ liquidity lead to significant and persistent increases in real oil prices, global oil production and global real aggregate demand. Unanticipated shocks to the liquidity of developed countries over 1997:01-2011:12 do not. The relative contribution to real oil price of liquidity in BRIC countries to liquidity in developed countries is much greater since 2005 than before 2005. China and India drive the results for the effect of BRIC countries’ liquidity on real oil price and global oil production. China and India and Brazil and Russia reinforce one another on the effect of liquidity on global real aggregate demand. Due to the difference between countries as commodity importers/exporters, the liquidity of Brazil and Russia increases significantly with a rise in real oil price and that of China and India decreases significantly with a rise in real oil price. It is shown that the strong rebound in oil price during 2009 is mostly due to strong effects of shocks to liquidity in the BRIC countries. The analysis helps in assessing the importance of the BRIC economies in the upsurge of the real price of crude oil. |
| Keywords: | Oil Price; BRIC countries; China and India; Global liquidity |
| JEL: | E51 E31 G15 F01 Q43 |
| Date: | 2012–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:44049&r=ene |
| By: | Haufler, Andreas; Mardan, Mohammed |
| Abstract: | Following recent court rulings, cross-border loss compensation for multinational firms will likely be introduced, at least in Europe. This paper analyzes the effects of introducing a coordinated cross-border tax relief in a setting where multinational firms choose the size of a risky investment and host countries endogenously choose tax rates. We show that coordinated cross-border loss compensation is likely to intensify tax competition when, following current international practice, the parent firm's home country bases the tax rebate for a loss-making subsidiary on its own tax rate. In equilibrium, tax revenue losses will then be even higher than is implied by the direct effect of the reform. In contrast, tax competition will be mitigated when the home country bases its loss relief on the tax rate in the subsidiary's host country. |
| Keywords: | cross-border loss relief; tax competition; profit shifting |
| JEL: | H32 F23 H25 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:muenec:14362&r=ene |
| By: | Carlsson, Mattias |
| Abstract: | As a response to policy requirements to improve energy security, and to reduce greenhouse gas emissions, the use of bioenergy in Sweden has more than doubled since 1980. In 2008 bioenergy use in Sweden amounted to 108 TWh, or 18% of the total supply of primary energy. Nearly all of this bioenergy supply originates from the domestic forest sector. There is still a desire from policy makers to continuously increase the use of renewable energy. Further increases in demand for forest based bioenergy – either as an effect of direct subsidies, renewable energy supply targets, rising fossil fuel prices, or increasing costs for carbon emissions – could, however, lead to implications for the availability of raw materials and costs, for the wood processing industries. A static partial equilibrium model of the Swedish forest sector – based on the EFI-GTM model structure – is developed to derive supply cost curves for further increases in the use of bioenergy from the forest sector in Sweden. In addition, the implications of increased use of forest based bioenergy on the traditional wood processing industries are analyzed. Model simulations indicate that the cost – in terms of losses in producer and consumer surplus – of an increase in the use of forest based bioenergy by 5 TWh/year in Sweden is 30 million SEK/year, while a 30 TWh/year increase would cost 620 million SEK/year. The marginal cost of increased use is estimated to be 0.011 SEK/kWh at 5 TWh/year, rising to 0.044 SEK/kWh at 30 TWh/year. The costs of reaching a target for increased forest based bioenergy use are highly dependent on the availability of pulpwood imports. An import restriction – requiring the target to be reached through domestic resources only – would increase the costs by up to five times above the unrestricted case. Policy driven increases in the demand for forest based bioenergy will have considerable effects on wood board producers, while the implications for pulp and paper producers, and sawn goods producers, are relatively small; at least as long as the increase in forest based wood fuels is less than 20 TWh/year. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:sua:ekonwp:9117&r=ene |
| By: | Chrz , Stepan; Hruby, Zdenek; Janda, Karel; Kristoufek, Ladislav |
| Abstract: | The interconnections within food, biofuel and fossil fuel markets are first described in the context of biofuels technologies and economic policy framework. Consequently, the econometric analysis consisting of Johansen cointegration, error correction model, vector autoregression and Granger causality is applied to price series of 12 biofuel related commodities. While a number of equilibrium relationships are found across the examined markets suggesting an interconnections of these markets, we do not obtain a persuasive confirmation of the thesis that biofuels clearly lead to food shortages via the increase in prices of basic food commodities used in the production of biofuels. |
| Keywords: | Biofuels; Food; Fossil Fuels |
| JEL: | Q16 Q42 C22 |
| Date: | 2013–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43958&r=ene |
| By: | Yuyu Chen; Ginger Zhe Jin; Naresh Kumar; Guang Shi |
| Abstract: | Protecting the environment during economic growth is a challenge facing every country. This paper focuses on two regulatory measures that China has adopted to incentivize air quality improvement: publishing a daily air pollution index (API) for major cities since 2000 and linking the API to performance evaluations of local governments. In particular, China defines a day with an API at or below 100 as a blue sky day. Starting in 2003, a city with at least 80% blue sky days in a calendar year (among other criteria) qualified for the “national environmental protection model city” award. This cutoff was increased to 85% in 2007. Using officially reported API data from 37 large cities during 2000-2009, we find a significant discontinuity at the threshold of 100 and this discontinuity is of a greater magnitude after 2003. Moreover, we find that the model cities were less likely to report API right above 100 when they were close to the targeted blue sky days in the fourth quarter of the year when or before they won the model city award. That being said, we also find significant correlation of API with two alternative measures of air pollution – namely visibility as reported by the China Meteorological Administration (CMA) and Aerosol Optical Depth (AOD), corrected for meteorological conditions, from NASA satellites. The discontinuity around 100 suggests that count of blue sky days could have been subject to data manipulation; nevertheless, API does contain useful information about air pollution. |
| JEL: | D8 H7 I18 L3 L5 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18729&r=ene |
| By: | Kimitaka Nishitani (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan); Nurul Jannah (Ministry of the Environment, Indonesia); Hardinsyah Ridwan (Faculty of Human Ecology, Bogor Agriculture University, Indonesia); Shinji Kaneko (Graduate School for International Development and Cooperation, Hiroshima University, Japan) |
| Abstract: | This paper, using data derived from a questionnaire survey of Indonesian firms, analyzes not only whether a firm's environmental performance improves its financial performance, but also whether this relationship depends on the firm's stance on conducting environmental management voluntarily or mandatorily. The estimation results suggest that a reduction of greenhouse gas (GHG) emissions increases a firm's profit, because firms that conduct environmental management voluntarily are more likely to reduce GHG emissions. However, this is not the case for the reduction of pollution emissions, because firms that conduct environmental management mandatorily are more likely to reduce pollution emissions. These results imply that only firms conducting environmental management voluntarily can improve financial performance through better environmental performance in Indonesia. |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2013-01&r=ene |
| By: | SCHMITZ Frédéric |
| Abstract: | La réduction des émissions de gaz à effet de serre (GES) dues aux déplacements de marchandises et de personnes est un objectif majeur des politiques de transport en Europe. Dans l?exemple précis de la mobilité domicile-travail des frontaliers travaillant au Luxembourg, nous avons estimé, sur la base de méthodes de calcul utilisant des données directement disponibles de l?Enquête Mobilité des Frontaliers, que les émissions de CO2 par frontalier ont baissé de 9% entre 2007 et 2010. Cela signifie que les politiques volontaristes en faveur des transports en commun ont eu des impacts positifs, tout comme le renouvellement du parc automobile, qui a entraîné une baisse des émissions moyennes des voitures en circulation. Durant cette période le nombre de frontaliers a fortement progressé, aussi le volume total des émissions générées par la mobilité domicile-travail des frontaliers a tout de même augmenté de 5%. En résumé, si les actions entreprises ont permis de limiter la hausse des émissions de CO, elles restent à court terme insuffisantes pour les faire diminuer significativement. |
| Keywords: | mobilité; frontalier; gaz à effet de serre; report modal; environnement |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2012-37&r=ene |
| By: | Paul Eckerstorfer (Department of Economics, University of Linz, Austria); Ronald Wendner (Department of Economics, University of Graz, Austria) |
| Abstract: | We analyze the effects of a generalized class of negative consumption externalities (asymmetric and non-atmospheric) on the structure of effcient commodity tax programs. Households are not only concerned about consumption reference levels - that is, they gain utility from "keeping up with the Joneses" - they also exhibit altruism. Two sets of efficient tax regimes are compared, based, on a welfarist- and a non-welfarist optimality criterion, respectively. Altruism turns out not to be at odds with the consumption externalities. Rather, altruism implicates a bound on efficient utility allocations. A non-welfarist government tolerates less inequality than a welfarist one. In the welfarist (non-welfarist) case, first-best personalized commodity tax rates respond highly sensitively (barely) to whether or not a consumption externality is asymmetric or non-atmospheric. If personalized commodity tax rates are not available (second-best case), the tax rate on a non- positional good is typically different from zero for corrective reasons. For plausible functional forms and parameter values, numerical simulations suggest that second- best tax rates are rather insensitive with respect to both the optimality criterion and the "nature" of the consumption externality. |
| Keywords: | Consumption externality, keeping up with the Joneses, optimal (commodity) taxation, genuine altruism, non-welfarist government |
| JEL: | D62 H21 H23 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:jku:econwp:2013_01&r=ene |
| By: | Gren, Ing-Marie |
| Abstract: | This paper applies the replacement cost method for calculating the value of stochastic carbon sink in the EU climate policy for mitigating carbon dioxide emissions. Minimum costs with and without carbon sinks are then derived with a safety-first approach in a chance constrained framework for current system with an emission trading system and national allocation plans and a hypothetical system where all sectors trade. The theoretical results show that i) the value of carbon sink approaches zero for high enough risk discount, ii) relatively low abatement cost in the trading sector curbs supply of permits on the ETS market, and iii) large abatement costs in the trading sector create values from carbon sink for meeting national targets. The empirical application to the EU commitment of 20% reduction in carbon dioxides shows large variation in carbon sink value depending on risk discount and on institutional set up. Under no uncertainty, the value can correspond to approximately 0.45% of total GDP in EU under current policy system, but it is reduced to one third if all sectors are allowed to trade. The values are unevenly allocated among countries, but in different ways depending on EU policy; under current system countries make gains from reduced costs of meeting national targets, under a sector wide trading scheme buyers of permits gain from reductions in permit price and sellers make associated losses. |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:sua:ekonwp:9328&r=ene |
| By: | Furukawa, Yuichi; Takarada, Yasuhiro |
| Abstract: | This paper considers the impact of differences in endogenous technological change between two countries on global pollution emissions under international strategic interaction in environmental policies. First, we demonstrate that an environmentally lagging country's technology may continue to advance through a learning-by-doing effect until it exceeds the environmental friendliness of a leading country that initially had the cleanest technology (i.e., environmental leapfrogging could occur). Whether a country eventually becomes an environmentally leading country depends on the country size and its awareness of environmental quality. Second, we find that global emissions fluctuate despite the fact that environmental technology advances in both countries. Global emissions eventually become constant because both countries cease to tighten environmental regulations when their technologies are sufficiently clean. The final emissions might be larger than emissions in early stages of adjustment under dirty technologies. If environmental leapfrogging frequently occurs, both countries possess similarly clean technologies, thereby reducing long-term global pollution. |
| Keywords: | Environmental policy; leapfrogging; learning-by-doing; strategic interaction; technological change; transboundary pollution |
| JEL: | O30 Q55 O33 O31 O44 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:44047&r=ene |
| By: | David Comerford (University of Edinburgh) |
| Abstract: | The standard approach to the economics of climate change, which has its best known implementation in Nordhaus's DICE and RICE models (well described in Nordhaus's 2008 book, A Question of Balance) is not well equipped to deal with the possibility of catastrophe, since we are unable to evaluate a risk averse representative agent's expected utility when there is any significant probability of zero consumption. Whilst other authors attempt to develop new tools with which to address these problems, the simple solution proposed in this paper is to ask a question that the currently available tools of climate change economics are capable of answering. Rather than having agents optimally choosing a path (that divers from the recommendations of climate scientists) within models which cannot capture the essential features of the problem, I argue that economic models should be used to determine the savings and investment paths which implement climate targets that have been suggested in the physical science literature. |
| Keywords: | Climate Change, Catastrophe, Optimal Policy, Alternative Energy Investment; |
| JEL: | Q54 Q43 E22 H23 |
| Date: | 2013–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:edn:esedps:216&r=ene |
| By: | Richard S. J. Tol (Department of Economics, University of Sussex, Brighton, United Kingdom; Institute for Environmental Studies, Vrije Universiteit, Amsterdam, Netherlands; Department of Spatial Economics, Vrije Universiteit, Amsterdam, Netherlands); Kenneth J. Arrow; Maureen L. Cropper; Christian Gollier; Ben Groom; Geoffrey M. Heal; Richard G. Newell; William D. Nordhaus; Robert S. Pindyck; William A. Pizer; Paul R. Portney; Thomas Sterner; Martin L. Weitzman |
| Abstract: | In September 2011, the US Environmental Protection Agency asked 12 economists how the benefits and costs of regulations should be discounted for projects that affect future generations. This paper summarizes the views of the panel on three topics: the use of the Ramsey formula as an organizing principle for determining discount rates over long horizons, whether the discount rate should decline over time, and how intra- and intergenerational discounting practices can be made compatible. The panel members agree that the Ramsey formula provides a useful framework for thinking about intergenerational discounting. We also agree that theory provides compelling arguments for a declining certainty-equivalent discount rate. In the Ramsey formula, uncertainty about the future rate of growth in per capita consumption can lead to a declining consumption rate of discount, assuming that shocks to consumption are positively correlated. This uncertainty in future consumption growth rates may be estimated econometrically based on historic observations, or it can be derived from subjective uncertainty about the mean rate of growth in mean consumption or its volatility. Determining the remaining parameters of the Ramsey formula is, however, challenging. |
| Keywords: | discount rate, uncertainty, declining discount rate, benefit-cost analysis |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:5613&r=ene |