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on Energy Economics |
| By: | Terao, Tadayoshi |
| Abstract: | In the early stages of the development of Japan’s environmental policy, sulfur oxide (SOx) emissions, which seriously damage health, was the most important air pollution problem. In the second half of the 1960s and the first half of the 1970s, the measures against SOx emissions progressed quickly, and these emissions were reduced drastically. The most important factor of the reduction was the conversion to a low-sulfur fuel for large-scale fuel users, such as the electric power industry. However, industries started conversion to low-sulfur fuel not due to environmental concerns, but simply to reduce costs. Furthermore, the interaction among the various interests of the electric power industry, oil refineries, the central government, local governments, and citizens over the energy and environmental policies led to the measures against SOx emissions by fuel conversion. |
| Keywords: | Japan, Environmental policy, Air pollution, Low sulfurization, Crude oil combustion |
| JEL: | N55 O13 Q28 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper407&r=ene |
| By: | Heymi Bahar; Jehan Sauvage |
| Abstract: | The uptake of renewable energy (RE) has been identified by a number of governments as a primary means for mitigating CO2 emissions from the electricity sector, and for making the transition to a low-carbon economy. The electric power output of some RE technologies, however, including those based on intermittent wind and solar energy, can vary considerably over short periods of time and thereby introduce instability into the electricity system. The risk of instability increases with higher shares of intermittent power sources connected to the electrical grid. Different means have been used to deal with this intermittency problem. Cross-border trade in electricity appears to be one of them since it enables countries to gain access to a more diversified portfolio of plants, producing over a wider geographic area. Preliminary results from an examination of the European electricity market confirm the importance of cross-border electricity trade in increasing the effective capacity factor of intermittent plants in the context of a growing share of intermittent renewables in the power sector. There are a number of policy issues that must first be addressed though, with some financial and administrative incentives provided to variable RE technologies discouraging RE producers from fully participating in electricity market operations and exerting downward pressure on wholesale electricity prices. The positive contribution that cross-border trade in electricity can make to address the variability problem not only depends on addressing challenges that renewable-energy technologies pose to electricity markets, but also necessitates the existence of an efficient cross-border electricity trading regime. Addressing those regulatory and administrative measures that are inhibiting growth in cross-border trade and the smooth operation of regional electricity markets would therefore help increase the potential for trade in electricity to facilitate growth in renewable energy. |
| Keywords: | trade, environment, trade barriers, renewable energy, electricity markets |
| JEL: | F18 L94 L98 Q42 Q56 |
| Date: | 2013–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaaa:2013/2-en&r=ene |
| By: | Rantala, Olavi |
| Abstract: | Abstract: The study evaluates the impacts of EU climate policy on the emission allowance price, electricity prices, the competitiveness of industry and macroeconomic developments in the third EU emissions trading period 2013-2020. The economic impacts of climate policy on Finland are compared to the impacts on the entire EU area. It turns out that due to its cold climate and heating energy demand, higher export intensity of the economy and higher energy intensity of the industry Finland pays a higher price for EU climate policy in terms of output and employment losses than the EU on average. The study examines the macroeconomic effects of climate policy also in the more distant future, assuming that EU climate policy is tightened further in the 2020s. Climate policy implemented by emissions trading means that the long-term economic growth in the EU area depends essentially on emission-free electricity production, and no longer on other growth factors, such as labour supply and productivity growth. Available only online |
| Keywords: | climate policy, emissions trading |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:rif:briefs:2&r=ene |
| By: | Christoph Böhringer (University of Oldenburg, Department of Economics); Knut Einar Rosendahl (Norwegian University of Life Science and Statistics Norway); Jan Schneider (University of Oldenburg, Department of Economics) |
| Abstract: | In the abscence of a global agreement to reduce greenhouse gas emissions, individual countries have introduced national climate policies. Unilateral action involves the risk of relocating emissions to regions without climate regulations, i.e., emission leakage. A major channel for leakage are price changes in the international oil market. Previous studies on leakage have assumed competitive behaviour in this market. Here, we consider alternative assumptions about OPEC’s behaviour in order to assess how these affect leakage and costs of unilateral climate policies. Our results based on simulations with a large-scale computable general equilibrium model of the global economy suggest that assumptions on OPEC’s behaviour are crucial to the impact assessment of unilateral climate policy measures. We find that leakage through the oil market may become negative when OPEC is perceived as a dominant producer, thereby reducing overall leakage drastically compared to a setting where the oil market is perceived competitive. |
| Keywords: | Carbon Leakage, Oil Market, OPEC Behaviour |
| JEL: | C72 Q41 Q54 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:old:wpaper:355&r=ene |
| By: | Managi, Shunsuke; Managi, Shunsuke; Okimoto, Tatsuyoshi |
| Abstract: | In this paper, we analyze the relationships among oil prices, clean energy stock prices, and technology stock prices, endogenously controlling for structural changes in the market. To this end, we apply Markov-switching vector autoregressive models to the economic system consisting of oil prices, clean energy and technology stock prices, and interest rates. The results indicate that there was a structural change in late 2007, a period in which there was a significant increase in the price of oil. In contrast to the previous studies, we find a positive relationship between oil prices and clean energy prices after structural breaks. There also appears to be a similarity in terms of the market response to both clean energy stock prices and technology stock prices. |
| Keywords: | clean energy; stock prices; oil price; Markov-switching VAR |
| JEL: | Q4 Q41 Q47 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:46067&r=ene |
| By: | Helene Maisonnave (Universite Laval, Quebec, Canada); Jonathan Pycroft (JRC IPTS, European Commission); Bert Saveyn (JRC IPTS, European Commission); Juan Carlos CISCAR (JRC IPTS, European Commission) |
| Abstract: | The European Union has committed itself to reduce greenhouse gas (GHG) emissions by 20% in 2020 compared with 1990 levels. This paper investigates whether this policy has an additional benefit in terms of economic resilience by protecting the EU from the macroeconomic consequences due to an oil price rise. We use the GEM-E3 computable general equilibrium model to analyze the results of three scenarios. The first one refers to the impact of an increase in the oil price. The second scenario analyses the European climate policy and the third scenario analyses the oil price rise when the European climate policy is implemented. Unilateral EU climate policy imposes a cost on the EU of around 1.0% of GDP. An oil price rise in the presence of EU climate policy does impose an additional cost on the EU of 1.5% of GDP, but this is less than the 2.2% of GDP that the EU would lose from the oil price rise in the absence of climate policy. This is evidence that even unilateral climate policy does offer some economic protection for the EU. |
| Keywords: | Oil price, general equilibrium, climate policy |
| JEL: | Q54 C68 Q40 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc68858&r=ene |
| By: | Löfgren, Åsa (Department of Economics, School of Business, Economics and Law, Göteborg University); Wråke, Markus; Hagberg, Tomas; Roth, Susanna |
| Abstract: | The European Union’s Emissions Trading Scheme (EU-ETS) is so far the largest emissions trading system in the world. It covers about 12000 installations, representing approximately 45% of EU emissions of CO2, with the objective to establish a carbon price creating incentives for cost efficient reductions of emitted green house gases. In this article we perform an expost analysis where we use detailed firm level data to analyse the effect of the EU ETS on firms’ investment decisions in carbon reducing technologies. In addition we draw on the existing literature and control for firm specific characteristics that has previously been shown to be determinants of firms’ investment in clean technology.<p> |
| Keywords: | investment; technological adoption; clean technology; EU ETS; firm behavior; climate change; carbon |
| JEL: | D21 O33 Q53 |
| Date: | 2013–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0565&r=ene |
| By: | Stephen Lecourt; Clément Pallière; Oliver Sartor |
| Abstract: | From Phase 3 (2013-20) of the European Union Emissions Trading Scheme carbon-intensive industrial emitters will receive free allocations based on harmonised, EU-wide benchmarks. This paper analyses and evaluates the impacts of these new rules on allocations to key energy-intensive sectors. It exploits an original dataset that combines recent data from the National Implementing Measures of 20 Member States with the Community Independent Transaction Log and ETS-installation NACE code data. The analysis reveals that free allocations to benchmarked sectors will be reduced significantly, though not excessively, in Phase 3. This reduction should both increase public revenues from carbon auctions and has the potential to enhance the economic efficiency of the carbon market. The analysis also shows that changes in allocation vary mostly across installations within, rather than across, countries. Lastly, the analysis finds evidence that the new rules will, as intended, reward installations with better emissions performance, and will improve harmonisation of free allocations in the EU ETS by reducing differences in allocation levels across countries with similar carbon intensities of production. |
| Keywords: | European Union Emissions Trading Scheme (EU ETS), CO2 allowance allocation, Emissions-performance benchmarking |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2013/17&r=ene |
| By: | Fabio Menten; Benoît Chèze; Laure Patouillard; Frédérique Bouvart |
| Abstract: | This article presents the results of a literature review performs with a meta-regression analysis (MRA) that focuses on the estimates of advanced biofuel Greenhouse Gas (GHG) emissions assessed with a Life Cycle Assessment (LCA) approach. The mean GHG emissions of both second (G2) and third generation (G3) biofuels and the effects of factors influencing these estimates are identified and quantified by means of specific statistical methods. 47 LCA studies are included in the database, providing 593 estimates. Each study estimate of the database is characterized by i) technical data/characteristics, ii) author's methodological choices and iii) typology of the study under consideration. The database is composed of both the vector of these estimates – expressed in grams of CO2 equivalent per MJ of biofuel (g CO2eq/MJ) – and a matrix containing vectors of predictor variables which can be continuous or dummy variables. The former is the dependent variable while the latter corresponds to the explanatory variables of the meta-regression model. Parameters are estimated by mean of econometrics methods. Our results clearly highlight a hierarchy between G3 and G2 biofuels: life cycle GHG emissions of G3 biofuels are statistically higher than those of Ethanol which, in turn, are superior to those of BtL. Moreover, this article finds empirical support for many of the hypotheses formulated in narrative literature surveys concerning potential factors which may explain estimates variations. Finally, the MRA results are used to adress the harmonization issue in the field of advanced biofuels GHG emissions thanks to the technique of benefits transfer using meta-regression models. The range of values hence obtained appears to be lower than the fossil fuel reference (about 83.8 in g CO2eq/MJ). However, only Ethanol and BtL do comply with the GHG emission reduction thresholds for biofuels defined in both the American and European directives. |
| Keywords: | Biofuels, GHG, LCA, Meta-analysis |
| Date: | 2013–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:apu:wpaper:2013/01&r=ene |
| By: | Javier Asensio (Universitat Autònoma de Barcelona & IEB); Andrés Gómez-Lobo (University of Chile); Anna Matas (Universitat Autònoma de Barcelona & IEB) |
| Abstract: | Using a panel of 48 provinces for four years we empirically analyze a series of temporary policies aimed at curbing fuel consumption implemented in Spain between March and June 2011. The first policy was a reduction in the speed limit in highways. The second policy was an increase in the biofuel content of fuels used in the transport sector. The third measure was a reduction of 5% in commuting and regional train fares that resulted in two major metropolitan areas reducing their overall fare for public transit. The results indicate that the speed limit reduction in highways reduced gasoline consumption by between 2% and 3%, while an increase in the biofuel content of gasoline increased this consumption. This last result is consistent with experimental evidence that indicates that mileage per liter falls with an increase in the biofuel content in gasolines. As for the reduction in transit fares, we do not find a significant effect for this policy. However, in specifications including the urban transit fare for the major cities in each province the estimated cross-price elasticity of the demand for gasoline -used as a proxy for car use- with respect to the price of transit is within the range reported in the literature. This is important since one of the main efficiency justification for subsidizing public transit rests on the positive value of this parameter and most of the estimates reported in the literature are quite dated. |
| Keywords: | Fuel consumption, cross-elasticities, transport policies, biofuel |
| JEL: | Q48 R41 R48 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2013-9&r=ene |
| By: | J. F. Mercure; P. Salas |
| Abstract: | This paper presents an assessment of global economic energy potentials for all major natural energy resources. This work is based on both an extensive literature review and calculations using natural resource assessment data. Economic potentials are presented in the form of cost-supply curves, in terms of energy flows for renewable energy sources, or fixed amounts for fossil and nuclear resources, with strong emphasis on uncertainty, using a consistent methodology that allow direct comparisons to be made. In order to interpolate through available resource assessment data and associated uncertainty, a theoretical framework and a computational methodology are given based on statistical properties of different types of resources, justified empirically by the data, and used throughout. This work aims to provide a global database for natural energy resources ready to integrate into models of energy systems, enabling to introduce at the same time uncertainty over natural resource assessments. The supplementary material provides theoretical details and tables of data and parameters that enable this extensive database to be adapted to a variety of energy systems modelling frameworks. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1205.4693&r=ene |
| By: | Valeria Andreoni (European Commission – JRC - IPTS); Arto Inaki (European Commission – JRC - IPTS); Jose Manuel Rueda Cantuche (Pablo Olavide University); Genty Aurelien (European Commission – DG Enterprise); Villanueva Krzyzaniak Alejandro (European Commission – JRC - IPTS); Ignazio Mongelli |
| Abstract: | Following the debate on the implications of international trade for global climate policy, this paper assess the economic benefits gained by exporting countries in products and services for exports against the emissions generated in their production. In 2008, 24% of global GHG emissions and 20% of the employment around the world were linked to international trade. China exported 30% of emissions and hosted 37.5% of the jobs generated by trade worldwide. The European Union and the United States of America were the destination of 25% and 18.4% of the GHG emissions embedded in trade. The imports of these two regions contributed to the creation of 45% of the employment generated by international trade. This paper proposes the idea of including trade issues in international negotiations, taking into account not only the environmental burden generated by developed countries when displacing emissions to developing countries through their imports, but also the economic benefits of developing countries when releasing the emissions to produce goods delivered to developed countries. By analysing these opposing aspects, we aim to show how global emissions could be reduced effectively and with lower costs. |
| Keywords: | Employment; Greenhouse gas emissions; Multiregional Input-Output Model. |
| JEL: | F24 Q56 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc74559&r=ene |
| By: | John Foster (School of Economics, University of Queensland) |
| Abstract: | It is argued that the explosive growth experienced in much of the World since the middle of the 19th Century is due to the exploitation and use of fossil fuels which, in turn, was made possible by capital good innovations that enabled this source of energy to be used effectively. Economic growth, it is argued, has been due to an autocatalytic co-evolution of energy use and the application of new knowledge relating to energy use. A simple ‘evolutionary macroeconomic’ model of economic growth is developed and tested using almost two centuries of British data. The empirical findings strongly support the hypothesis that growth has been due to the presence of a ‘super-radical innovation diffusion process.’ Also, the evidence suggests that large and sustained movements in energy prices have had a very significant long term role to play. The paper concludes with an assessment of the implications of the findings for the future prospects of economic growth in Britain and the possible lessons that can be learned about the future of the global economy. |
| Keywords: | Energy; Knowledge; Evolution; |
| JEL: | Q43 O10 O43 P48 Q32 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqeemg:3-2013&r=ene |
| By: | Arnaud De La Tour (CERNA - Centre d'économie industrielle - MINES ParisTech - École nationale supérieure des mines de Paris); Matthieu Glachant (CERNA - Centre d'économie industrielle - MINES ParisTech - École nationale supérieure des mines de Paris) |
| Abstract: | Preferential feed-in tariffs (FITs) for solar generated electricity increases the demand for solar photovoltaic systems. They can thus induce price to increase, creating the potential for PV systems producers to collect rents. This paper analyses the interactions between feed-in tariffs, silicon prices and module prices, using weekly price data and FIT values in Germany, Italy, Spain, and France from January 2005 to May 2012. Relying methodologically on the Granger causality tests applied to vector autoregressive models, we show that since the end of the period of silicon shortage in 2009, module price variations cause changes in FITs, and not the reverse. This is good news as it suggests that the regulators have been able to prevent FITs to inflate module prices. |
| Keywords: | solar photovoltaic energy; feed-in tariffs; photovoltaic panel price |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00809449&r=ene |
| By: | Christopher R. Knittel; Robert S. Pindyck |
| Abstract: | The price of crude oil in the U.S. never exceeded $40 per barrel until mid-2004. By 2006 it reached $70, and in July 2008 it peaked at $145. By late 2008 it had plummeted to about $30 before increasing to $110 in 2011. Are speculators at least partly to blame for these sharp price changes? We clarify the effects of speculators on commodity prices. We focus on crude oil, but our approach can be applied to other commodities. We explain the meaning of "oil price speculation," how it can occur, and how it relates to investments in oil reserves, inventories, or derivatives (such as futures contracts). Turning to the data, we calculate counterfactual prices that would have occurred from 1999 to 2012 in the absence of speculation. Our framework is based on a simple and transparent model of supply and demand in the cash and storage markets for a commodity. It lets us determine whether speculation is consistent with data on production, consumption, inventory changes, and convenience yields given reasonable elasticity assumptions. We show speculation had little, if any, effect on prices and volatility. |
| JEL: | G13 L71 Q40 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18951&r=ene |
| By: | Elgohary, Nivin |
| Keywords: | Community/Rural/Urban Development, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usao13:147076&r=ene |
| By: | Rangan Gupta (Department of Economics, University of Pretoria); Mampho P. Modise (Department of Economics, University of Pretoria) |
| Abstract: | In this paper, we investigate the dynamic relationship between different oil price shocks and the South African stock market using a sign restriction structural vector autoregression (VAR) approach for the period 1973:01 to 2011:07. The results show that for an oil-importing country like South Africa, stock returns only increase with oil prices when global economic activity improves. In response to oil supply shocks and speculative demand shocks, stock returns and the real price of oil move in opposite directions. The analysis of the variance decomposition shows that the oil supply shock contributes more to the variability in real stock prices. The main conclusion is that different oil price shocks affect stock returns differently and policy makers and investors should always consider the source of the shock before implementing policy and making investment decisions. |
| Keywords: | Oil price shocks, stock returns, sign-restrictions, structural vector autoregression |
| JEL: | C32 C58 G1 Q43 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201318&r=ene |
| By: | Gerhard Toews |
| Abstract: | In this paper we identify the effect of an oil price boom on households' satisfaction with income. In a natural experiment the increase in the oil price is used as an exogenous shock affecting households located in the oil and gas rich region of Kazakhstan. to evaluate the effect we use the Household Budget Survery of Kazakhstan from 2001 to 2005, a quarterly, unbalanced panel of 12,000 households. An important feature of this survey is that household heads were asked to report their "satisfaction with household income" on a scale from 1 to 5. Our results suggest that a 10% increase in the oil price decreased household's satisfaction with income by 2% with a lag of two quarters. We argue that this is due to peoples' inflated expectations regarding their income. this result highlights the importance of managing expectations in a rapidly changing economic environment. |
| Keywords: | Resource Booms, Conflicts, Reference Point Formation |
| JEL: | Q34 Q33 D03 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:109&r=ene |
| By: | Vincent Rious; Yannick Perez |
| Abstract: | This paper proposes a support mechanism for energy storage devices for island power systems where intermittent renewable generation is rapidly growing. We base our proposal on the maturity level of storage devices (Chen and al., 2009) and on the linear model for the development of innovations (Foxon et al., 2005). We focus on storage technologies that can be technically developed in island power systems and that achieve the technical needs of these systems. We conclude that the horizon when the power storage shall extend to prevent the development of intermittent renewable generation from being thwarted in these systems, a feed-in tariff with a price varying within the time of day must be put in place. |
| Date: | 2012–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2012/70&r=ene |
| 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. |
| JEL: | D60 L51 L94 |
| Date: | 2012–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2012/69&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: | 2013–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00786749&r=ene |
| By: | OECD |
| Abstract: | There are at least two policy regimes to be considered, one for environmental biotechnology, and another for industrial biotech. Environmental biotechnology is focused on biotechnologies for environmental clean-up, and much of the policy in this area is around compliance. Industrial biotechnology has quite different policy objectives and only started to grow as a field with the worldwide interest in biofuels. Much of the world now has targets for bioenergy and favourable policy regimes to stimulate production and use of biofuels, but sustainability is now a real issue for biofuels production. This should become an international theme as more countries start to adapt biofuels as part of their energy supply. |
| Date: | 2013–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:3-en&r=ene |
| By: | Valeria Andreoni (European Commission – JRC - IPTS); Arto Inaki (European Commission – JRC - IPTS); Jose Manuel Rueda Cantuche (Pablo Olavide University); Genty Aurelien (European Commission – DG Enterprise); Villanueva Krzyzaniak Alejandro (European Commission – JRC - IPTS) |
| Abstract: | In the recent decades, the increase in the world population, the economic expansion and the globalization of the economy have led to a dramatic growth in the use of some natural resources and in the levels of pollution. These trends have coincided with a growing concern about some critical questions for the future of humankind such as resource scarcity and depletion, climate change, environmental degradation, the limits of growth or the inequalities in the access to natural resources across countries. In this context arises the need to develop a comprehensive dataset of reliable and comparable economic and environmental information that contributes to a better understanding of the complexity of these issues, and supporting evidence-based policy-making. In order to comply with this need, this Pocketbook presents a series of indicators describing the evolution of the use of natural resources and the emission of air pollutants around the world, in relation to production, consumption and trade activities. Based on different analysis derived from the World Input-Output Database (WIOD), this publication includes information on 6 environmental dimensions: land use, material extraction, water use, and emission of acid substances, greenhouse gases and ozone precursors. The time frame covered is the period between 1995 and 2008, and the geographical scope includes the EU-27 Member States, Brazil, China, India, Japan, Russia, the United States of America and the Rest of the World. The information presented in this publication can be classified into 3 different groups of indicators: 1. The "Production" or "Domestic" side indicators report for each country the use of resources as primary inputs (i.e. domestic extraction of materials or land cultivated) and the emissions directly generated by national economic activities. 2. The "Consumption" or "Footprint" indicators show the resources or pollution embodied in the domestic final demand of one country, regardless of where these resources/emissions were used/emitted. 3. The "Trade" indicators account for the resources/pollution embodied international trade. This article quantifies for the first time not only the domestic employment effects of foreign EU exports but also the correct number of jobs generated through intra-European trade (Single Market) in the production of such exported commodities. The literature has neglected very often the latter effects mainly due to the lack of an appropriate methodology and database. The empirical evidence shows that the EU has really progressed during the period 2000-2007 towards a more vertically integrated economy, reducing the labour intensity of the goods and services exported outside the EU, trading most prominently within the EU Single Market and subsequently, generating an increasing number of jobs. Despite the reduction in the labour intensity of the European exports, the associated employment grew from 22 to 25 million jobs, out of which 9 million jobs were created due to spillover and feedback effects associated to the Single Market |
| Keywords: | Water, Land, Emissions, Materials, Trade; Input-Output Analysis; EU27 |
| JEL: | Q56 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc71922&r=ene |
| By: | Valeria Andreoni (European Commission – JRC - IPTS); Arto Inaki (European Commission – JRC - IPTS); Jose Manuel Rueda Cantuche (Pablo Olavide University); Genty Aurelien (European Commission – DG Enterprise); Villanueva Krzyzaniak Alejandro (European Commission – JRC - IPTS) |
| Abstract: | In the recent decades, the increase in the world population, the economic expansion and the globalization of the economy have led to a dramatic growth in the use of some natural resources and in the levels of pollution. These trends have coincided with a growing concern about some critical questions for the future of humankind such as resource scarcity and depletion, climate change, environmental degradation, the limits of growth or the inequalities in the access to natural resources across countries. In this context arises the need to develop a comprehensive dataset of reliable and comparable economic and environmental information that contributes to a better understanding of the complexity of these issues, and supporting evidence-based policy-making. In order to comply with this need, this Pocketbook presents a series of indicators describing the evolution of the use of natural resources and the emission of air pollutants around the world, in relation to production, consumption and trade activities. Based on different analysis derived from the World Input-Output Database (WIOD), this publication includes information on 6 environmental dimensions: land use, material extraction, water use, and emission of acid substances, greenhouse gases and ozone precursors. The time frame covered is the period between 1995 and 2008, and the geographical scope includes the EU-27 Member States, Brazil, China, India, Japan, Russia, the United States of America and the Rest of the World. The information presented in this publication can be classified into 3 different groups of indicators: 1. The "Production" or "Domestic" side indicators report for each country the use of resources as primary inputs (i.e. domestic extraction of materials or land cultivated) and the emissions directly generated by national economic activities. 2. The "Consumption" or "Footprint" indicators show the resources or pollution embodied in the domestic final demand of one country, regardless of where these resources/emissions were used/emitted. 3. The "Trade" indicators account for the resources/pollution embodied international trade. This article quantifies for the first time not only the domestic employment effects of foreign EU exports but also the correct number of jobs generated through intra-European trade (Single Market) in the production of such exported commodities. The literature has neglected very often the latter effects mainly due to the lack of an appropriate methodology and database. The empirical evidence shows that the EU has really progressed during the period 2000-2007 towards a more vertically integrated economy, reducing the labour intensity of the goods and services exported outside the EU, trading most prominently within the EU Single Market and subsequently, generating an increasing number of jobs. Despite the reduction in the labour intensity of the European exports, the associated employment grew from 22 to 25 million jobs, out of which 9 million jobs were created due to spillover and feedback effects associated to the Single Market |
| Keywords: | Water, Land, Emissions, Materials, Trade; Input-Output Analysis; EU27 |
| JEL: | Q56 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc71919&r=ene |
| By: | Martijn Brons Author-1-Name-First: Martijn Author-1-Name-Last: Brons (European Commission – JRC - IPTS); Panayotis Christidis Author-2-Name-First: Panayotis Author-2-Name-Last: Christidis (European Commission – JRC - IPTS) |
| Abstract: | The Marco Polo programme of the European Commission aims to shift or avoid freight transport off the roads to other more environmentally friendly transport modes. The programme is implemented through yearly calls for proposals. The proposals received to each call are selected for financial support inter alia on the basis of their merits in terms of environmental and social benefits. The evaluation of each proposal's merits in terms of environmental and social benefits is based on the external costs for each transport mode. On the Commission’s request the Joint Research Centre, Institute for Prospective Technological Studies (JRC-IPTS) modified and updated the methodology underlying the calculation of external costs and the software application that automates the estimation of the impact on external costs for specific projects. The work was based on a combination of data and model results that allow the estimation of transport volumes, fleet mixes, levels of utilisation and resulting externalities with up-to-date methodologies for the economic valuation of these externalities. The new external cost methodology and calculator covers road, rail, inland waterways and short sea shipping. External cost coefficients are provided for environmental impacts (air quality, noise, climate change) and socio-economic impacts (accidents, congestion). The methodology permits the estimation of external cost coefficients for specific mode subcategories based on fuel technology, cruising speed, vehicle size, and cargo type. |
| Keywords: | freight transport, external costs of transport, sustainable transport, transport technology |
| JEL: | F18 Q51 Q53 Q54 Q55 Q56 R41 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc72879&r=ene |
| By: | Christoph Böhringer (University of Oldenburg, Department of Economics); Thomas F. Rutherford (University of Wisconisn-Madison); Marco Springmann (University of Oldenburg, Department of Economics) |
| Abstract: | The Clean Development Mechanism (CDM) established under the Kyoto Protocol allows industrialized Annex I countries to offset part of their domestic emissions by investing in emissionsreduction projects in developing non-Annex I countries. We present a novel CDM modelling framework which can be used in computable general equilibrium (CGE) models to quantify the sector-specific and macroeconomic impacts of CDM investments. Compared to conventional approaches that mimic the CDM as sectoral emissions trading, our framework adopts a microeconomically consistent representation of the CDM incentive structure and its investment<br>characteristics. In our empirical application we show that incentive compatibility implies that the sectors implementing CDM projects do not suffer, and that overall cost savings from the CDM tend to be lower than suggested by conventional modelling approaches. |
| Keywords: | Clean Development Mechanism, Computable General Equilibrium Modeling |
| JEL: | C68 Q58 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:old:wpaper:354&r=ene |
| By: | Heutel, Garth (University of North Carolina at Greensboro, Department of Economics); Ruhm, Christopher J. (University of Virginia) |
| Abstract: | Prior research demonstrates that mortality rates increase during economic booms and decrease during economic busts, but little analysis has been conducted investigating the role of environmental risks as potential mechanisms for this relationship. We investigate the contribution of air pollution to the procyclicality of deaths by combining state-level data on overall, cause-specific, and age-specific mortality rates with state-level measures of ambient concentrations of three types of pollutants and the unemployment rate. After controlling for demographic variables and state and year fixed-effects, we find a significant positive correlation between carbon monoxide (CO) concentrations and mortality rates. Controlling for CO, particulate matter (PM10), and ozone (O3) attenuates the relationship between overall mortality and the unemployment rate by 30 percent. The attenuation is particularly large, although imprecisely measured, for fatalities from respiratory diseases and is frequently substantial for age groups unlikely to be involved in the labor market. Our results are consistent with those of other studies in the economics and public health literatures measuring the mortality effects of air pollution. |
| Keywords: | Pollution; Health; Mortality; Business Cycles |
| JEL: | E32 I10 Q53 |
| Date: | 2013–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2013_007&r=ene |
| By: | Anne Neumann; Maria Nieswand; Torben Schubert |
| Abstract: | Nonparametric efficiency analysis has become a widely applied technique to support industrial benchmarking as well as a variety of incentive-based regulation policies. In practice such exercises are often plagued by incomplete knowledge about the correct specifications of inputs and outputs. Simar and Wilson (2001) and Schubert and Simar (2011) propose restriction tests to support such specification decisions for cross-section data. However, the typical oligopolized market structure pertinent to regulation contexts often leads to low numbers of cross-section observations, rendering reliable estimation based on these tests practically unfeasible. This small-sample problem could often be avoided with the use of panel data, which would in any case require an extension of the cross-section restriction tests to handle panel data. In this paper we derive these tests. We prove the consistency of the proposed method and apply it to a sample of US natural gas transmission companies in 2003 through 2007. We find that the total quantity of gas delivered and gas delivered in peak periods measure essentially the same output. Therefore only one needs to be included. We also show that the length of mains as a measure of transportation service is non-redundant and therefore must be included. |
| Keywords: | Benchmarking models, Network industries, Nonparametric efficiency estimation, Data envelopment analysis, Testing restrictions, Subsampling, Bootstrap. |
| JEL: | C14 L51 L95 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2013/13&r=ene |
| By: | Fabien Prieur; Mabel Tidball; Cees Withagen |
| Abstract: | This paper extends the classical exhaustible-resource/stock-pollution model with the irreversibility of pollution decay. Within this framework, we answer the question how the potential irreversibility of pollution affects the extraction path. We investigate the conditions under which the economy will optimally adopt a reversible policy, and when it is optimal to enter the irreversible region. In the case of irreversibility it may be optimal to leave a positive amount of resource in the ground forever. As far the optimal extraction/emission policy is concerned, several types of solutions may arise, including solutions where the economy stays at the threshold for a while. Given that different programs may satisfy the first order conditions for optimality, we further investigate when each of these is optimal. The analysis is illustrated by means of a numerical example. To sum up, for any pollution level, we can identify a critical resource stock such that there exist multiple optima i.e. a reversible and an irreversible policy that yield exactly the same present value. For any resource stock below this critical value, the optimal policy is reversible whereas with large enough resource, irreversible policies outperform reversible programs. Finally, the comparison between irreversible policies reveals that it is never optimal for the economy to stay at the threshold for a while before entering the irreversible region. |
| Keywords: | non-renewable resource, irreversible pollution, optimal policy |
| JEL: | Q30 Q53 C61 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:077&r=ene |
| By: | Aoki, Reiko; Hamada, Koichi |
| Abstract: | We study the role of liability rules in the case of nuclear accidents by the Tokyo Electric Power Company (TEPCO), such as the accident after the East Kanto Earthquake in Japan. We re-examine the claim that the absolute or unlimited liability is the best under actual situations. For example, TEPCO is a vertically integrated monopoly power company in the Kanto region. We show that monopolist may produce more than socially optimal level of output and spend too little to prevent an accident with limited liability if cost of accident avoidance is variable cost. When there is under production by the monopoly, then increasing liability will aggravate monopoly distortion and reduce welfare. We show that welfare increases with size of liability when cost of accident avoidance is fixed cost. We also consider possibility of regulatory capture by TEPCO and implications. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:cisdps:600&r=ene |
| By: | Aad Correljé; Martijn Groenleer; Jasper Veldman |
| Abstract: | This paper compares the development of the institutions for regulation of the natural gas transportation systems in the United States and the European Union. Given the fact that these systems are technically similar, it addresses the question why regulatory institutions in the US and the EU have developed in such different ways. To explore institutional change and the differences thereof (in terms of for instance the role of federal and supranational actors, coordination between public and private actors and co-existence of different executive orders), we adopt a historical and dynamic approach in which institutional outcomes are explained not only by the structural conditions but also by the behaviour of the different actors involved. Our exploration is based on a systematic search of the literature on the US and EU regulation of the natural gas transportation systems since their early beginnings. The paper serves as a prelude to more in-depth research on the development of regulatory institutions in the gas sector and notably the political struggles involved in that development. |
| Keywords: | European Union, history, institutional change, natural gas, politics, regulation, United States. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2013/07&r=ene |
| By: | AROURI, Mohamed El Hedi; BEN YOUSSEF, Adel; M'HENNI, Hatem; Rault, Christophe |
| Abstract: | Studying the impact of economic growth on the environment in the context of developing countries has become of increasing economic importance in recent years. Alarming international reports showed that pollutants emissions are growing at their highest level ever, particularly in the South. This study implements recent bootstrap panel unit root tests and cointegration techniques to investigate the relationship between Sulfur dioxide emissions and real GDP for 12 MENA countries over the period 1981–2005. Our investigations lead to the result that no evidence is found for the EKC for 10 country of the region. However EKC is valid for the case of Egypt and Tunisia which are the most industrialised and diversified economies in our sample. At the same time our finding showed that EKC is not valid for the region when token as a whole. |
| Keywords: | Environmental Kuznets Curve, Sulfur Dioxide emissions, Economic Growth, panel data, MENA countries |
| JEL: | O11 Q0 Q28 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:46185&r=ene |
| By: | Jürgen Bitzer (University of Oldenburg, Department of Economics); Erkan Gören |
| Abstract: | From an engineering perspective, a capital good’s service is energy conversion – e.g., the physical ‘work’ done by a machine – and can thus be measured directly by the energy consumed in production. We show important empirical advantages of our concept over traditional measures. The empirical application reveals that our concept avoids a number of conceptual problems of the latter. Furthermore, our measure is more sensitive to fluctuations in economic activity and therefore captures the utilization of the capital stock better. In a growth accounting exercise, this results in higher TFP growth rates, especially in times of global recession. |
| Keywords: | capital service, utilization, energy consumption, total factor productivity, growth accounting |
| JEL: | E22 D24 O47 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:old:wpaper:351&r=ene |
| By: | Olivia Koland; Martin Schönhart; Erwin Schmid |
| Abstract: | TTRIOPOL studies the role of domestic bioenergy potentials for agriculture, the wider economy and international trade for Austria. In particular, agricultural biomass pro-duction can contribute to significant shares of energy provision in Austria. A detailed scenario is developed to explore the opportunities and challenges of enhanced domestic biomass production based on short rotation forestry (SRF) for heat supply which is currently among the most competitive technologies. To that end, TRIOPOL establishes a model linkage between a sectoral supply-model for Austrian agriculture and a national small open economy general equilibrium model. Model results show that a biomass premium of 65 € per ton dry matter is required to support 250,000 ha of SRF on cropland in Austria by 2020. The thus provided bioheat covers some 33 petajoule (PJ) heat energy demand in Austria; taking into account the likely rising of energy prices by 2020, this number rises to 47 PJ. Substantial land use changes may also be compensated by increases in land use intensity and as well as changes in imports and exports. Scenario results suggest that domestic food production of non-meat commodities falls by 1.3%. The sector meat products profits from the high competitiveness of Austrian livestock production and responds by a slight increase in net exports. The results of the quantitative analysis shall support the scientific and political debate on securing food and energy supply as well as economic development goals. |
| Keywords: | Bioenergie, Landwirtschaft, Nahrungsmittelproduktion, Landnutzung, Wärmebereitstellung, Außenhandel, Modellstudie, Modellkopplung |
| JEL: | C63 C68 E20 F10 Q18 Q21 Q42 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:ecbook:2013:i:iv-004&r=ene |
| By: | Rachel Susan Webb; Andrea Menclova (University of Canterbury) |
| Abstract: | New Zealand has one of the highest asthma prevalence rates among developed coun¬tries and previous research attributes this partly to poor socioeconomic conditions in cer¬tain neighborhoods and to insufficient home heating in particular. International retro¬spect¬ive empirical studies suggest that home heating is associated with asthma rates. However, strong evid¬ence of causality is lacking. In this paper, we empirically investigate the link between home heating and hospital asthma admissions in New Zealand using panel data techniques and controlling for endogeneity. The hypothesis that higher electricity prices (via less ade¬quate heating) increase hospital asthma admissions is tested and receives strong empirical support across a number of model specifications and datasets used. |
| Keywords: | Asthma; Home heating; Electricity price |
| JEL: | I12 |
| Date: | 2013–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:cbt:econwp:13/17&r=ene |
| By: | Aimad BIADAD (Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO) |
| Abstract: | Ce rapport présente les différentes technologies de détection des gaz dangereux pour l'homme et l'environnement actuellement sur le marché. Il identifie les avantages et les inconvénients de ces différentes technologies pour permettre à l'utilisateur de faire un choix en fonction de son contexte d'utilisation. Beaucoup d’applications utilisent ce genre de détecteur, mais leur développement nécessite l’amélioration de leurs performances. Côté industriel, le marché global des capteurs chimiques connait une très forte progression (+9,6%/an) depuis la fin des années 2000 avec un volume de 15 milliards de dollars en 2010. Concernant le marché pour les équipements de détection de gaz évalué dans un rapport récent de Global Industry Analysts Inc., il est estimé à 1,24 milliards de dollars US en 2008 et devrait atteindre 1,5 milliards de dollars en 2012. Ce marché, en constante évolution depuis le début des années 90, est partagé en grande partie entre l’Amérique du Nord (USA et Canada) et l’Europe. Ceci étant, avec la rapide industrialisation de pays émergents asiatiques et sud-américains, ce marché promet un essor spectaculaire surtout avec la forte demande due aux préoccupations de notre temps en matière d’environnement, de sécurité et de contrôle des procédés. Ces dispositifs de détection offrent potentiellement des applications dans les principaux domaines qui sont le transport, l’environnement, la santé, l’industrie et l’agroalimentaire. This report presents the different detection technologies of gases hazardous to humans and the environment currently on the market. It identifies the advantages and disadvantages of these technologies to allow the user to make a choice based on its context of use. Many applications use this type of detector, but their development requires improving their performance. On the industrial side, the global market for chemical sensors is experiencing very strong growth (+9.6%/year) since the late 2000s with a volume of $15 billion in 2010. Concerning the market for gas detection equipment evaluated in a recent report by Global Industry Analysts Inc., it is estimated at $1.24 billion in 2008 and should reach $1.5 billion in 2012. This market, evolving constantly since the early 90s, is largely shared between the North America (USA and Canada) and Europe. That being said, with the rapid industrialization of emerging Asian and South American market, this market promises a dramatic growth especially with the high demand due to current concerns in terms of environment, security and process control. These sensing devices potentially offer applications to the main areas that are transportation, environment, health, industry and the food sector. |
| Keywords: | détection des gaz, industrialisation, conséquences environnementales |
| JEL: | Q5 O44 L9 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:rii:riidoc:260&r=ene |