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on Energy Economics |
| By: | Bruno Lanz (ETH Zurich, Switzerland); Thomas F. Rutherford (ETH Zurich, Switzerland); John E. Tilton (Colorado School of Mines, USA) |
| Abstract: | Subglobal climate policies induce changes in international competitiveness and favor a relocation of carbon-emitting activities to non-abating regions. In this paper, we evaluate the potential for CO2 abatement and the emissions `leakage' effect in the copper industry, a prominent energy-intensive trade-exposed sector. We formulate a plant-level spatial equilibrium model for copper commodities in which parameters describing the behavioral response of agents are calibrated to econometric estimates of price elasticities. We find producers and consumers to be price inelastic even in the long-run, making the copper industry unresponsive to climate policies. Monte Carlo simulations with our model based on statistical uncertainty on elasticity estimates suggest that around 30% of emissions reductions in industrialized countries would be compensated by an increase of emissions in non-abating countries. |
| Keywords: | Carbon leakage; Pollution haven effect; Climate policy; International environmental agreements; International trade; Copper industry. |
| JEL: | F18 F55 H23 Q54 Q58 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:13-174&r=ene |
| By: | Andreas Schröder; Thure Traber; Claudia Kemfert |
| Abstract: | EMELIE-ESY is a partial equilibrium model with focus on electricity markets. Private investors optimize their generation capacity investment and dispatch over the horizon 2010 to 2050. In the framework of the Energy Modeling Forum 28, we investigate how climate policy regimes affect market developments under different technology availabilities and climate policies on the European power markets. The model projects an only minor increase of power consumption because of higher wholesale prices or energy efficiency current climate policy, and a balanced consumption pathway under ambitious climate policy. These results contrast with findings of POLES and PRIMES models in the reference case that predict unexpected heavy consumption increases by 2050. By contrast, we find no investment into Carbon Capture and Storage (CCS) and a diminishing share of nuclear energy. We find that renewable energy supply extension as projected can sufficiently meet electricity consumption complemented by only few capacity investments in conventional technology. |
| Keywords: | Electricity markets, investment, climate policy |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1268&r=ene |
| By: | Gawel, Erik; Strunz, Sebastian; Lehmann, Paul |
| Abstract: | In this paper, we analyze 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) efficient policy design and 2) climate protection as the single objective of policy intervention. 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 an optimal policy mix comprising RES supporting policies. Whereas the textbook model implies that the ETS alone provides sufficient climate protection, our analysis suggests that support for renewable energies 1) contributes to a more effective ETS-design and 2) may even increase the overall efficiency of climate and energy policy if other externalities and policy objectives besides climate protection are considered. Thus, our analysis also shows that a public choice view not necessarily entails negative evaluations concerning efficiency and effectiveness of a policy mix. -- |
| JEL: | H23 Q42 Q48 Q58 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzdps:52013&r=ene |
| By: | Voß, Achim |
| Abstract: | Public energy productivity investment influences the amount of future energy consumption. If a present government expects its successor to value the social costs of fuel usage differently, this adds a strategic component to its investment considerations. We analyze this governmental time-inconsistency situation as a sequential game. In particular, we show how the expectation of a more conservative party taking over makes a green government choose an investment level that is ineffcient in that neither of the parties would prefer it to the investment level of a permanent green government. Under some circumstances, the opposition would even prefer the government to stay in power for sure: The gain of avoiding strategic investment then outweighs the loss of not being able to regulate energy consumption. We also analyze welfare gains of binding agreements. -- |
| Keywords: | political economics,environmental policy,energy policy,energy effciency,rebound effects,energy externalities,strategic investment,sequential games,time-inconsistency |
| JEL: | Q48 Q58 Q55 D72 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:62&r=ene |
| By: | Buchs, Milena (University of Southampton); Schnepf, Sylke V. (University of Southampton) |
| Abstract: | Does the association between household characteristics and household CO2 emissions differ for different areas such as home energy, transport, indirect and total emissions in the UK? Specific types of households might be more likely to have high emissions in some areas than in others and thus be affected differently by climate mitigation policies that target these areas. Using the Living Costs and Food Survey and Expenditure and Food Survey for the years 2006 to 2009, this paper compares how household characteristics like income, household size, rural/urban location and education level differ in their association with home energy, transport, indirect and total emissions. We find that the association between household characteristics and emissions differs considerably across these areas, particularly for income, education, the presence of children, female headed, workless and rural households. We also test the implicit assumption in the literature that the association between household characteristics and CO2 emission is constant across the CO2 emission distribution using quantile regressions and compare results for poor and rich households. The analysis considers policy implications of these findings throughout. |
| Keywords: | climate change mitigation policies, inequality, carbon dioxide emissions, living costs and food survey, United Kingdom |
| JEL: | D12 D31 D60 H20 Q01 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7204&r=ene |
| By: | Massimo Filippini (Centre for Energy Policy and Economics (cepe), ETH Zurich and Department of Economics, University of Lugano, Switzerland.); Lester C Hunt (Surrey Energy Economics Centre (SEEC), University of Surrey, UK.); Jelena Zoric (Centre for Energy Policy and Economics (CEPE), ETH Zurich, Switzerland, and Faculty of Economics, University of Ljubljana, Slovenia.) |
| Abstract: | The promotion of energy efficiency is seen as one of the top priorities of EU energy policy (EC, 2010). In order to design and implement effective energy policy instruments, it is necessary to have information on energy demand price and income elasticities in addition to sound indicators of energy efficiency. This research combines the approaches taken in energy demand modelling and frontier analysis in order to econometrically estimate the level of energy efficiency for the residential sector in the EU-27 member states for the period 1996 to 2009. The estimates for the energy efficiency confirm that the EU residential sector indeed holds a relatively high potential for energy savings from reduced inefficiency. Therefore, despite the common objective to decrease ‘wasteful’ energy consumption, considerable variation in energy efficiency between the EU member states is established, implying that not all countries have been successful in achieving such energy savings. Furthermore, an attempt is made to evaluate the impact of energy-efficiency measures undertaken in the EU residential sector by introducing an additional set of variables into the model and the results suggest that financial incentives and energy performance standards play an important role in promoting energy efficiency improvements, whereas informative measures do not have a significant impact. |
| Keywords: | energy efficiency, residential energy demand, stochastic frontier analysis, policy measures. |
| JEL: | C33 C54 Q41 Q48 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:sur:seedps:139&r=ene |
| By: | Meredith Fowlie; Nicholas Muller |
| Abstract: | Much of the air pollution currently regulated under U.S. emissions trading programs is non-uniformly mixed, meaning that health and environmental damages depend on the location and dispersion characteristics of the sources. Existing policy regimes ignore this fact. Emissions are penalized at a single permit price, regardless of the location of the source. In theory, differentiated policies can be designed to accommodate non-uniformly mixed pollution using emissions penalties that vary with emissions damages. Under perfect certainty, damage-based policy differentiation is unambiguously welfare improving. In the presence of uncertainty about damages and abatement costs, differentiated policies need not welfare dominate simpler, undifferentiated designs. Using rich data from a major U.S. emissions trading program, we estimate the welfare impacts of policy differentiation. Surprisingly, we find that differentiated emissions trading results in welfare loss as compared to the undifferentiated trading regime that was implemented. This result manifests because ex post realized abatement costs appear to have exceeded expectations. We further show that, in this context, a differentiated price-based policy welfare dominates the differentiated quantity-based alternative. |
| JEL: | Q58 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18801&r=ene |
| By: | Martin de Wit (School of Public Leadership, University of Stellenbosch); Matthew Kuperus Heun (Engineering Department, Calvin College); Douglas J Crookes (Independent Researcher) |
| Abstract: | Integrated energy-economic modeling is needed to support the development of energy and carbon policies. We propose that a systems dynamic modeling approach is needed; one that includes (a) dynamics (b) endogenous treatment of uncertainty and risks, and (c) both aggregate economic and disaggregate technical or engineering levels of analysis. To support the future development of integrated energy-economic models we review and organise the literature on energy-economy interactions into subsections covering (a) the key factors or components, (b) the relationships among these components, (c) a quantification of parameters and (d) implications for the development of an integrated energy-economic systems dynamic model. The literature is organized in discussions on economic growth and the factors of production, elasticities, macro- and technical substitutability, energy cost shares, heat engine efficiencies and energy services efficiencies. We observe non-linear relationships in production and consumption, large variations among price and income elasticity values across time frames, across countries and regions, and across energy goods, far from perfect substitution among factors of production and among energy goods on a macro level, technical/engineering limits to substitution on a micro level, as well as engineering and behavioural limits on what can be achieved with increased efficiencies. We therefore support the call to develop integrated energy-economic systems dynamic models that are able to provide new insight into the nature of energy-economic transitions |
| Keywords: | energy-economic modeling, system dynamics, elasticities, economic substitution, technical substitution, energy efficiency, energy cost share, heat engine efficiency |
| JEL: | C63 Q43 Q47 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers178&r=ene |
| By: | Veronika Kulmer (Wegener Center for Climate and Global Change, University of Graz, Austria) |
| Abstract: | This paper evaluates policy options that foster the progress of alternative, environmentally friendly passenger transport technologies in order to reduce greenhouse gas emissions viable technological switch. For the example of Austria, we develop a dynamic computable general equilibrium model which explicitly considers passenger transport technologies comprising "internal combustion engine” (ICE), “plug-in hybrid electric vehicle” (PHEV), “electric vehicle” (EV) and “fuel cell electric vehicle” (FCEV). Regarding technological progress we also incorporate labor augmenting, directed technological change. For policy analysis, we study the effects of (i) a phase out of ICE and subsidy in R&D, (ii) a fuel tax and subsidy in R&D and (iii) an output subsidy on FCEV. We find that in terms of overall emission reduction, in the given time scale from 2005 to 2050, the continuous phase-out of ICE in combination with a subsidy in R&D is the most effective policy measure. The fuel tax in combination with a subsidy in R&D shows the smallest emission reduction. However, in terms of costs, impacts on consumption of private goods are the smallest among all policy instruments. Moreover, domestic output of economic sectors is boosted. Finally, results show, that the competitiveness of FCEV implies a considerable fall in emissions and favors production of several economic sectors, such as electrical machinery and chemical products. However, in order to ensure competitiveness the output subsidy on FCEV is extremely high, impacting private consumption strongly. |
| Keywords: | technology policy, directed technological change, computable general equilibrium |
| JEL: | O31 O38 Q55 Q58 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:grz:wpaper:2013-02&r=ene |
| By: | Laurens Cherchye; Bram De Rock; Barnabé Walheer |
| Keywords: | DEA; allocation efficiency; cost inefficiency; environment; CO2 emissions; electric utilities |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/141151&r=ene |
| By: | David I. Stern; Kerstin Enflo |
| Abstract: | Though there is a very large literature examining whether energy use Granger causes economic output or vice versa this literature is fairly inconclusive. Almost all existing studies use relatively short time series or panels with a relatively small time dimension. Additionally, many recent papers continue to use what seem to be misspecified models. We apply Granger causality and cointegration techniques to a Swedish time series data set on energy and economic growth spanning 150 years to test whether increases in energy use and energy quality have driven economic growth. We show that these techniques are very sensitive to variable definition, choice of additional variables in the model, and sample periods. All of the following appear to make a finding that energy causes growth more likely: using multivariate models, defining variables to better reflect their theoretical definition, using larger samples, and including appropriate structural breaks. However, it is also possible that the relationship between energy and growth has changed over time and that results from recent smaller samples reflect this. Energy prices have a significant causal impact on both energy use and output. |
| Keywords: | Energy, macroeconomics, Granger causality, cointegration, causality, time series |
| JEL: | Q43 C32 C52 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2013-01&r=ene |
| By: | Löschel, Andreas; Schymura, Michael |
| Abstract: | The assessment of climate change mitigation policies through economic modeling depends crucially on assumptions under which technological change has been incorporated in the model. Earlier climate-energy-economics modeling attempts heavily relied on the assumption of exogenous technological change. In this case, technological change is a function solely of time. However, such an approach seems insufficient, especially given developments in other fields of economic research that have helped to explain in more detail the process of technological change. A lot of research has been done hence on endogenizing technological change in large-scale models. The purpose of this paper is to summarize these efforts. We describe different model types and their treatment of exogenous technological change (autonomous energy efficiency improvements and backstop technologies) and endogenous technological change (including price inducement, learning-by-doing, investments in R & D and directed technical change). We conclude with some open questions and suggestions for future research. -- |
| Keywords: | Exogenous Technical Change,Endogenous Technological Change,Price inducement,Learning-by-doing,Directed Technical Change,Modeling |
| JEL: | C50 C68 O30 Q25 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13007&r=ene |
| By: | Katarzyna Maciejowska; Rafal Weron |
| Abstract: | We show that incorporating the intra-day relationships of electricity prices and trading volumes improves the accuracy of forecasts of daily electricity spot prices. We use half-hourly data from the UK power market to model the spot prices directly (via ARX and Vector ARX models) and indirectly (via factor models). The forecasting performance of five econometric models is evaluated and compared with that of a univariate model, which uses only (aggregated) daily data. The results indicate that there are forecast improvements from incorporating the disaggregated data, especially, when the forecast horizon exceeds one week. Additional improvements are achieved when the correlation structure of the intra-day relationships is explored. |
| Keywords: | Electricity spot price; Forecasting; Disaggregated data; Vector autoregression; Factor model; Principal components; |
| JEL: | C32 C38 C53 Q47 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:wuu:wpaper:hsc1301&r=ene |
| By: | Yusuf Soner Baskaya; Timur Hulagu; Hande Kucuk |
| Abstract: | We analyze business cycle implications of oil price uncertainty in an oil-importing small open economy, where oil is used for both consumption and production. In our framework, higher volatility in oil prices works through two main channels. On the one hand, it makes the marginal product of capital riskier, creating an incentive to substitute away from capital. On the other hand, it increases the demand for precautionary savings, which might imply higher capital accumulation in response to a rise in oil price uncertainty depending on whether agents have access to an alternative asset, international bond in our model. We show that the fall in investment following a rise in the volatility of real oil prices in the case of financial integration is more than twice the fall in investment observed under financial autarky. Moreover, the interaction between shocks to the level and volatility of oil prices is quantitatively important: initial responses of investment, output and consumption to a rise in oil prices are almost doubled, when there is a simultaneous rise in the volatility of oil prices. |
| Keywords: | Oil price, stochastic volatility, financial market integration |
| JEL: | E20 E32 F32 F41 Q43 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:1309&r=ene |
| By: | Christine Brandstätt; Gert Brunekreeft; Nele Friedrichsen |
| Abstract: | Energy and climate policy drive large scale integration of distributed generation and demand side management, with massive consequences for distribution grids. New technologies and actors shape the transformation of electricity networks towards smart systems. We argue that future regulation of smart grids needs to allow more flexibility. Firstly, the core of network monopoly starts to weaken allowing for more third party involvement. Secondly, the increasing number and heterogeneity of stakeholders makes “one-size-fits-all” regulation simply less suitable, whilst regulation needs to take account of various interests. In this paper we discuss stakeholder involvement and make policy recommendations to render regulation of smart systems more flexible. |
| Keywords: | smart grids, regulation, information management, third-party involvement |
| JEL: | D02 D70 L51 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:bei:00bewp:0013&r=ene |
| By: | Laurens Cherchye; Bram De Rock; Antonio Estache; Barnabé Walheer |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/141132&r=ene |
| By: | Jakub Nowotarski; Jakub Tomczyk; Rafal Weron |
| Abstract: | We present the results of an extensive study on modeling and forecasting of the long-term seasonal component (LTSC) of electricity spot prices. We consider a vast array of models including linear regressions, monthly dummies, sinusoidal decompositions and wavelet smoothers. We find that in terms of forecasting EEX and Nord Pool spot prices up to a year ahead, wavelet-based models significantly outperform all considered piecewise constant and sine-based models. This result challenges the traditional approach to deseasonalize spot electricity prices by fitting monthly dummies or sinusoidal functions. |
| Keywords: | Electricity spot price; Forecasting; Seasonality; Monthly dummies; Sinusoidal decomposition; Wavelets; |
| JEL: | C45 C53 C80 Q47 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:wuu:wpaper:hsc1302&r=ene |
| By: | Jérôme Massiani (Department of Economics, University Of Venice Cà Foscari) |
| Abstract: | This paper analyses the practice of SP surveys for Electric Vehicles and identifies a number of their limitations. Specifically it is found that SP surveys may not represent adequately several dimensions that are relevant in the context of EV purchase such as garage ownership, second versus first car, refueling conditions, and that they often neglect transitory technologies (Plug in Hybrid) which are instead an important element in the diffusion of EVs. This paper also provides a number of recommendations for practitioners to conceive more realistic SP surveys which could increase the validity of policy recommendations formulated by economists. |
| Keywords: | Stated Preferences surveys, Conjoint Analysis; electric cars, alternative fuel vehicles |
| JEL: | C53 O33 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2013_01&r=ene |
| By: | Sven Rudolph (University of Kassel) |
| Abstract: | In den USA, weltweit zweitgrößte Wirtschaftsmacht und gleichzeitig zweitgrößter Emittent von Treibhausgasen, war die Regierungsübernahme durch die Obama-Administration im Jahr 2008 geprägt von großen Hoffnungen nach der klimapolitischen Abstinenz der Bush-Regierung (Moslener/Sturm 2008, Würtenberger 2009). Spätestens im Jahr 2010 wurde diese Hoffnung mit dem Scheitern des American Clean Energy and Security Act (ACESA) aller-dings jäh beendet (Pooley 2010). Auf bundesstaatlicher Ebene waren klimapolitische Vorstö-ße inklusive regionaler Emissionshandelssysteme hingegen nicht nur politisch deutlich erfolg-reicher, sondern sie zeigen sogar teilweise positive Wirkungen. Kalifornien startete soeben sein eigenes Emissionshandelssystem und der Nordosten der USA vollzog eine tiefgreifende Revision der Regional Greenhouse Gas Initiative (RGGI). Vor diesem Hintergrund stellt der vorliegende Beitrag unter Einbeziehung aktuellster Entwicklungen in den USA das Design regionaler Treibhausgas-Emissionshandelssysteme in den USA dar, beschreibt die ersten Er-fahrungen, bewertet das Design der (revidierten) Programme und evaluiert die bisherigen Re-sultate auf der Basis bewährter umweltökonomischer Wirkungs- und Designanalysen (Ru-dolph et al. 2012). |
| Keywords: | Klimapolitik, Emissionshandel, USA, RGGI, WCI, Kalifornien |
| JEL: | D62 D63 Q48 Q54 Q58 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201310&r=ene |
| By: | Mallidis, I.; Dekker, R.; Vlachos, D. |
| Abstract: | Cap and trade regulations along with an increasing consumer and company demand for green products and services constitute two major drivers for motivating corporations to adopt green practices. However, the adoption of such practices usually increases their operational costs. Therefore, the trade-off between “green†and cost-optimal policies is a common challenge for most organizations, at least in developed countries. The purpose of this paper is to assess alternative logistic network design options (applicable in most supply chains) taking into account both their cost and CO2 emissions performance. The applicability of the proposed methodology is illustrated through the design of a major white good retailer’s logistics network in the region of Greece. The results indicate that a company optimizes its cost performance by serving all its retail stores directly by truck through one central distribution center. On the other hand, a CO2 emissions optimal performance includes additional distribution centers and the employment of rail instead of truck transportation. Moreover, longer review periods, despite the higher holding and backorder costs, result in lower transportation costs and CO2 emissions. |
| Keywords: | environment;CO2 emissions;periodic review inventory control system |
| Date: | 2013–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureir:1765038623&r=ene |
| By: | Buchholz, Wolfgang; Schymura, Michael |
| Abstract: | The evaluation of long-term effects of climate change in cost-benefit analysis has a long tradition in environmental economics. Since the publication of the Stern Review in 2006 the debate about the appropriate discounting of future welfare and utility levels was revived and the most renowned scholars of the profession participated in this debate. In two recent contributions in Environmental and Resource Economics, there was dispute about intertemporal welfare economics between Partha Dasgupta and John Roemer about the correct interpretation of the topic. The aim of this work is to bring together economic and philosophical reasoning about justice and intergenerational equity in the context of climate change. So we adopt the normative view in order to present the most important ethical issues that, particularly in the context of climate policy, are most relevant for the choice of intertemporal discounting. Subsequently we explore whether ethical considerations may also be helpful to justify pure social discounting per se. -- |
| Keywords: | Intertemporal ethics,Distribution,Discounting,Climate Change |
| JEL: | Q53 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13008&r=ene |
| By: | Sadek Boussena (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques (IEP) - Grenoble - CNRS : UMR5194 - Université Pierre Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I); Catherine Locatelli (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques (IEP) - Grenoble - CNRS : UMR5194 - Université Pierre Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I) |
| Abstract: | This article tries to shed light on why gas relations between the EU and Russia, which were previously stable, have deteriorated since the introduction of institutional changes in the two regions. After identifying the areas of divergence in the context of European gas market liberalization, we then attempt to examine them in the context of the differing approaches to structuring this sector. The model of vertically unbundled network industries promoted by the EU is no longer the one that Russia intends to implement in its gas sector, despite the big changes taking place in its domestic market. All this is happening in a context where the economic stakes are very high. For the EU and its gas companies, access to Russia's hydrocarbon resources is a key question. For Gazprom, the question is whether or not it can define strategies that are flexible enough to adapt to the changing conditions in the European gas market. |
| Keywords: | Russia ; European Union ; gas industry |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00785127&r=ene |
| By: | Alexander Golub; Oleg Lugovoy; Anil Markandya; Ramon Arigoni Ortiz; James Wang |
| Abstract: | Across the full range of publications in the field of economics of climate change there is perhaps only one firm agreement: both costs and benefits of climate policy are highly uncertain. In an ideal world one would wait until a good deal of uncertainty is resolved and then make a final decision. Usually in the economic literature it would be interpreted as adopting a relatively weak policy now and adjusting it later. Unfortunately, in the context of path-dependency and irreversibility of climatic events there is no way to preserve a full flexibility for the future: near-term selection of an interim climate policy implies some irreversible consequences. Continued accumulation of GHG in the atmosphere makes some policy targets (expressed in temperature level or GHG ppm concentration) infeasible. The paper examines the application of real option analysis to calculate costs and benefits of an interim climate policy. In contrast to conventional CBA, the proposed methodology also accounts for lost and gained flexibility attributed to the adoption of an interim target. |
| Keywords: | Climate policy; integrated impact assessment model; uncertainty; real option analysis |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2013-06&r=ene |
| By: | Akay, Alpaslan; Brereton, Finbarr; Cunado, Juncal; Ferreira, Susana; Martinsson, Peter; Moro, Mirko; Ningal, Tine F |
| Abstract: | Concerns for environmental quality and its impact on people's welfare are fundamental arguments for the adoption of environmental legislation in most countries. In this paper, we analyse the relationship between air quality and subjective well-being in Europe. We use a unique dataset that merges three waves of the European Social Survey with a new dataset on environmental quality including SO2 concentrations and climate in Europe at the regional level. We find a robust negative impact of SO2 concentrations on self-reported life satisfaction. |
| Keywords: | GIS; European Social Survey; Europe; Life Satisfaction; Subjective Well-Being; SO2 Concentrations; Air Quality |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2013-02&r=ene |
| By: | Maike Schmitt |
| Abstract: | This paper analyses the relation between air quality and subjective well-being in Germany. Life Satisfaction (LS) data from the German Socio-Economic Panel Study (SOEP) is connected with daily county pollution in terms of carbon monoxide (CO), nitrogen dioxide (NO2) and ozone (O3) from 1998 to 2008. The assumed microeconometric happiness function is estimated considering individual time invariant effects. It is observed that O3 has a significant negative impact on life satisfaction. The estimated influence of current CO as well as NO2 is not significant. Moreover, I found that LS of people with environmental worries is more affected by ozone pollution. This was not the case for people with a bad health status. Using the marginal rate of substitution between income and air pollution, it is calculated that an increase of one µg/m3 in daily average county O3 has to be compensated by an increase of €11.33 in monthly net household income to hold an average individual's LS constant. |
| Keywords: | Life satisfaction, air pollution, environmental quality |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp541&r=ene |
| By: | Adrien Vogt-Schilb (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - AgroParisTech); Céline Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - AgroParisTech); Jean Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - AgroParisTech) |
| Abstract: | La capacité des véhicules électrifiés (VE) à diminuer les émissions de gaz à effet de serre (GES) est sujette à débat. De nombreuses études fondent le calcul des émissions kilométriques des VE sur le contenu carbone de l'électricité contemporaine. Nous proposons une évaluation qui mobilise une vision cohérente de l'évolution du système énergétique dans lequel les VE doivent s'insérer. Nous utilisons un modèle de simulation prospective pour produire des scénarios contrastés de l'évolution du contenu carbone de l'électricité européenne. Cet exercice suggère que si l'Europe choisit de mettre en place des politiques climatiques destinées à réduire drastiquement ses émissions de GES, le contenu carbone de l'électricité va diminuer rapidement, prolongeant sur le long terme l'avantage actuel des VE sur les véhicules classiques en termes d'émissions par kilomètre. A long terme, l'électrification des véhicules est pertinente dans toutes les régions du monde. |
| Keywords: | véhicules électrique; gaz à effet de serre; bilan carbone; prospective; politiques climatiques |
| Date: | 2013–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00786749&r=ene |
| By: | Martin Wörter (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Tobias Stucki (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Christian Soltmann (Swiss Federal Institute of Intellectual Property, Switzerland) |
| Abstract: | While recent literature has focused on explaining the determinants of green innovations, it is not well understood how such innovations affect performance. To analyse the relationship between green innovation and performance, new industry-level panel data were exploited: these include 12 OECD countries, the whole manufacturing sector and a period of 30 years. The results show that green inventions are U-shape related to performance. However, the turning point is quite high and hence only relevant for a few industries. This indicates that - given the current level of green promotion - market incentives alone are not sufficient to allow the green invention activities of industries to rise considerably. |
| Keywords: | Innovation, R&D, patents, environment, technological change, performance |
| JEL: | O30 O34 Q55 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:13-330&r=ene |
| By: | Benad, Holger; Bode, Martin; Hack, Andreas; Kleine-Möllhoff, Peter; Wagner, Hanna |
| Abstract: | This paper aims to present a sustainable business model for eMobility. In order to achieve this goal four different working packages are created. First of all different types of innovation are studied and defined focusing on disruptive innovations. Next different definitions of business models are analyzed and a modified business model is designed which includes eight main components - strategy, value proposition, financial aspects, resources, processes, environment, networks & channels as well as customer & market scope. In the following part the company Hilti, a supplier of the construction industry is researched and analyzed regarding its business model and the possible disruptive innovation fleet management. Then based on previous analyses a business model for eMobility is developed. The proposed business model aims at propagating eMobility, making effective advertising and testing different technologies in the field. Therefore the paper is introducing a business model for a taxi company and defining each component in detail. It presents potentials of eMobility in general and facts about the taxi industry to generate a better view of the overall situation. The paper closes with an outlook on further potentials of the proposed business model. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esbwmm:201302&r=ene |