nep-ene New Economics Papers
on Energy Economics
Issue of 2013‒06‒09
28 papers chosen by
Roger Fouquet
Basque Climate Change Centre, Bilbao

  1. Emissions trading in China: Principles, design options and lessons from international practice By Frank Jotzo
  2. Development Trajectories, Emission Profile, and Policy Actions : Singapore By Tilak K. Doshi; Neil Sebastian D’Souza
  3. Unilateral Climate Policy: Can OPEC resolve the Leakage Probem? By Christoph Böhringer; Knut Einar Rosendahl; Jan Schneider
  4. The impact of heat waves on electricity spot markets By Anna Pechan; Klaus Eisenack
  5. Alternative Designs for Tariffs on Embodied Carbon:<br>A Global Cost-Effectiveness Analysis By Christoph Böhringer; Brita Bye; Taran Fæhn; Knut Einar Rosendahl
  6. The OURSE model: Simulating the World Refining Sector to 2030 By Frédéric Lantz; Valérie Saint-Antonin; Jean-François Gruson; Wojciech Suwala
  7. Greenhouse Gas Emission Controls and Firm Locations in North-South Trade By ISHIKAWA Jota; OKUBO Toshihiro
  8. Fuel Conservation Effect of Energy Subsidy Reform in Iran By Hossein Mirshojaeian Hosseini; Shinji Kaneko
  9. Output, renewable energy consumption and international trade: Evidence from a panel of 69 countries By Ben Jebli, Mehdi; Ben Youssef, Slim
  10. Evolution of the Global Distribution of Carbon Dioxide: A Finite Mixture Analysis By Michele Battisti; Michael S. Delgado; Christopher F. Parmeter
  11. Efficiency and Equity Implications of Alternative Instruments to Reduce Carbon Leakage By Christoph Böhringer; Jared C. Carbone; Thomas F. Rutherford
  12. A Theory of Energy Use By Luis Puch; Antonia Díaz
  13. Energy and Capital in a New-Keynesian Framework By Verónica Acurio Vasconez; Gaël Giraud; Florent Mc Isaac; Ngoc Sang Pham
  14. Brasil: gobernanza regulatoria del sector energético y desarrollo social By Vanesa Valverde Camiña
  15. Output, renewable energy consumption and trade in Africa By Ben Jebli, Mehdi; Ben Youssef, Slim
  16. The Economic Impact of Oil on Industry Portfolios By Jaime Casassus; Freddy Higuera
  17. Working Paper 05-13 - Does Offshoring Contribute to Reducing Air Emissions? Evidence from Belgian Manufacturing By Bernhard Klaus Michel
  18. Clean-Development Investments: An Incentive-Compatible CGE Modelling Framework By Christoph Böhringer; Thomas F. Rutherford; Marco Springmann
  19. Environmental Policy to Foster a Green Differentiated Energy Market By Gutierrez-Hita, Carlos; Martinez-Sanchez, Francisco
  20. Measuring Capital Services by Energy Use: An Empirical Comparative Study By Jürgen Bitzer; Erkan Gören
  21. L'approche économique des transitions énergétiques et l'innovation environnementale : une application au CCS et au BCCS By Xavier Galiègue
  22. Biofuel Taxes, Subsidies, and Mandates: Impacts on US and Brazilian Markets By Bruce A. Babcock; Marcelo Moreira; Yixing Peng
  23. How consumers’ socio-economic background influences satisfaction: Insights for better utility regulation By Clifton, Judith; Díaz-Fuentes, Daniel; Fernández-Gutiérrez, Marcos
  24. Demand externalitites and price cap regulation: Learning from a two-sided market By Zhu Wang
  25. Politiques de soutien à la capture et au stockage du carbone en France : un modèle d'équilibre général calculable By Olivia Ricci
  26. Energie et compétitivité. By Martin, Philippe; Bureau, Dominique; Fontagné, Lionel
  27. Dutch disease et désindustrialisation en Algérie, une approche critique. By Samir Bellal
  28. La sûreté nucléaire : analyse économique des régulations américaine, française et japonaise By François Lévêque

  1. By: Frank Jotzo
    Abstract: China is considering a national emissions trading scheme, to follow several pilot schemes, as part of the suite of policies to reduce the growth of greenhouse gas emissions. A carbon tax or tax-like scheme could be an alternative. However there are special challenges in a fast-growing economy where the energy sector is heavily regulated. This paper analyses policy design options based on principles, China’s circumstances, and Australian and European experiences. The main findings are the following. (1) Features such as variable permit supple, price floor/ceiling or a fixed permit price are desirable to provide a stable price signal, especially in China’s case. A carbon tax can be a viable alternative or complement to emissions trading. (2) Any free permits or other assistance to industry should be carefully designed to preserve incentives to cut emissions, limited so that governments can use carbon revenue to support households or pay for other policy measures, and regularly reviewed to avoid lock-in of unnecessary payments. (3) Broad coverage of emissions pricing is necessary for effectiveness, including in electricity supply and demand. Carbon pricing can be partly effective in the electricity sector ahead of comprehensive energy sector reform, ultimately however market-based energy pricing is needed. (4) Carbon pricing should be seen in the broader context of economic policy reform. It offers opportunities to support broader goals of fiscal, energy and environmental policy.
    Keywords: Instrument China, emissions trading, carbon tax
    JEL: Q48 Q52 Q54 Q56 Q58 O12
    Date: 2013–05
  2. By: Tilak K. Doshi (Asian Development Bank Institute (ADBI)); Neil Sebastian D’Souza
    Abstract: Singapore is the most industrialized and urbanized country in Southeast Asia and is totally dependent on oil and natural gas imports to satisfy its energy needs. Its national energy policy framework seeks to find a balance between maintaining Singapore’s competitiveness, improving energy security, and enhancing environmental sustainability. In this paper, we discuss where Singapore stands with regard to its energy consumption and CO2 emissions, its energy policies to date, and those that will be implemented in the near future. We use a Singapore Energy- Economy model based on the Long Range Energy Alternatives Planning (LEAP) framework to assess the impact of energy efficiency and conservation policies on Singapore’s energy intensity and CO2 emissions through to 2050. We also discuss the challenges that Singapore will face on account of climate change policies affecting key sectors of its economy. We find that Singapore has achieved much progress over the past four decades. Prudent energy policies and a changing economic structure have led to more efficient use of energy as evidenced by Singapore’s declining energy intensity. There is considerable uncertainty as to the evolution of a global agreement on CO2 emissions reductions and the exact nature of the commitments that countries will be held to. Given Singapore’s status as a preeminent shipping center and global oil refining center, CO2 emissions policies that will affect these industries will impact Singapore’s economy if issues of “carbon leakage†are not adequately addressed.
    Keywords: Singapore, national energy policy, energy demand, Energy Consumption, vironment, emission, climate change policy
    JEL: O53 Q38 Q48
    Date: 2013–05
  3. 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
  4. By: Anna Pechan (University of Oldenburg, Department of Economics); Klaus Eisenack (University of Oldenburg, Department of Economics)
    Abstract: Thermoelectric power plants depend on cooling water drawn from water bodies. Low river run-off and/or high water temperatures limit a plant’s production capacity. This problem may intensify with climate change. To what extent do such capacity reductions affect electricity spot markets? Who bears the consequent costs? How is this influenced by climate change and a change in the electricity generation system? We quantify these effects by means of a bottom-up power generation system model. First, we simulate the German electricity spot market during the heat wave in 2006, and then conduct a sensitivity study that accounts for future climatic and technological conditions. We find an average price increase of 11%, which is even more pronounced during times of peak demand. Production costs accumulate to additional but moderate e15.9 m during the two week period. Due to the price increase producers gain from the heat wave and consumers disproportionately bear the costs. Carbon emissions increase during the heat wave. The price and cost effects are more pronounced and significantly increase if assumptions on heat-sensitive demand, hydro power capacity, net exports and capacity reductions are tightened. These are potential additional effects of climate change. Hence, if mitigation fails or is postponed<br>globally, the impacts on the current energy system are very likely to rise. Increases in feed-in from renewable resources and demand-side management can counter the effects to a considerable degree. Countries with a shift to renewable energy supply can be expected to be much less susceptible to water scarcity than those with a high share of nuclear and coal-fired power plants.
    Keywords: Electricity Market, Heat Wave, Germany, Climate Change
    JEL: Q41 Q54
    Date: 2013–06
  5. By: Christoph Böhringer (University of Oldenburg, Department of Economics, Germany); Brita Bye (Statistics Norway, Oslo, Norway); Taran Fæhn (Statistics Norway, Oslo, Norway); Knut Einar Rosendahl (Statistics Norway, Oslo, Norway)
    Abstract: In the absence of effective world-wide cooperation to curb global warming, import tariffs on embodied carbon have been proposed as a potential supplement to unilateral emissions pricing. We consider alternative designs for such tariffs, and analyze their effects on global welfare within a multi-region, multi-sector computable general equilibrium (CGE) model of global trade and energy. Our analysis suggests that the most cost-efficient policy could be region-specific tariffs on all products, based on direct plus electricity emissions. In the end, however, the potential cost savings through carbon tariffs must be weighed against the administrative costs as well as legal issues and political considerations.
    Keywords: carbon leakage, embodied carbon, border tariffs
    JEL: Q43 Q54 H2 D61
    Date: 2012–06
  6. By: Frédéric Lantz (IFP Energies nouvelles); Valérie Saint-Antonin (IFP Energies nouvelles); Jean-François Gruson (IFP Energies nouvelles); Wojciech Suwala (MEERI)
    Abstract: The development of a model of the World Refining for the POLES model aims to represent the oil product's supply at a world-wide level in a global energy model. The World oil refining industry faces to several challenges such as the increasing oil derivatives demand in the transport sector, the improvement of the specifications of these products, the crude oil availability and the limitation of carbon emissions. An aggregated refining model linked to the POLES energy model has been developed to study these questions. The OURSE (Oil is Used in Refineries to Supply Energy) model is a world-wide aggregated refining model which is designed to simulate the world oil product supply for the POLES (Prospective Outlook for the Long-term Energy System) model. OURSE is able to simulate the impact on the world refining industry of changes in the crude oil supply (in costs and qualities) as well as in the oil product demand (in terms of level, structure and specifications). OURSE also enables to assess the consequences of a carbon emission regulation (caps and taxes) as the adoption of various kinds of alternative fuel policies. More precisely, these impacts are evaluated as regards the world refining structure (investments), but also its balance (production and trade of petroleum products), its pollutant emissions (CO2 and SO2) and its costs (of production, investments, etc.). The OURSE model is based on a linear programming (LP) model, that is frequently used in the refining industry, both for refinery management and investment analysis, since a marginal cost pricing is relevant for the oil products. Designed to represent the world-wide refining industry into the POLES model, the OURSE model has to contain a restricted number of equations. This justifies that OURSE includes a representative upgrading refinery defined for nine aggregated refining regions in the world that are North and central America, Latin America, North and South Europe, CIS, Africa, Middle East, China, Other Asia and Oceania. Similarly, since directly linked to the number of crude oils considered, the model size is also reduced by considering, for each world refining area, an aggregated crude oil supply based on five representative crude oil qualities in the model. Lastly, a multi-plant approach is considered to make the OURSE model able to represent the oil product exchanges between the main regions in the world. Simulations for 2030 were performed. Thus, the paper presents the results of a prospective exercise for the oil refining industry which has been carried out with the worldwide refining model OURSE according to the oil product demand projections of European Commission for Europe with the PRIMES model (European Commission, 2010) and the IFP projections for the rest of the World. According to the European Commission's projections, the European oil product demand will slowdown by 14% between 2005 to 2030, reaching 566 Mtoe in 2030 (reference scenario). During the same period, the worldwide oil product demand will have increased by 23% up to 4411 Mtoe in 2030. The share of light, medium and heavy oil products will change with a decreasing share of heavy products and a more important consumption of medium distillates. Nevertheless, in the PRIMES European projections, the respective share of gasoline and diesel oil in the automotive fuel consumption are not strongly affected during the next two decades. However, the specification of the products will be more severe, especially for the marine bunkers (future IMO specifications as mentioned in the first part of the report which is dedicated to oil products). On the supply side, the crude oil supply has been estimated until 2030. This analysis is based on IFP geosciences expertises. In 2030, the API degree of the conventional crude oil will slowly decrease. However, this will be balanced by the increasing share of condensates in the refinery supply and the availability of upgraded crude oil from the extra-heavy oil. Finally, the API degree of the refineries supply should remain quite unchanged.
    Keywords: Oil sector, Refinery sector, greenhouse gasses, energy modelling
    JEL: Q40
    Date: 2012–02
  7. By: ISHIKAWA Jota; OKUBO Toshihiro
    Abstract: This paper studies greenhouse gas (GHG) emission controls in the presence of international carbon leakage through international firm relocation. In a trade and geography framework with two countries ("North" and "South"), only North sets a target for GHG emissions. We compare the consequences of emission quotas, emission taxes, and emission standards under trade liberalization for the location of pollution-intensive and less pollution-intensive sectors and the degree of carbon leakage. With low trade costs, further trade liberalization increases global emissions by facilitating carbon leakage. Regulation by quotas leads to spatial sorting with less carbon leakage and less global emissions than regulation by taxes and standards.
    Date: 2013–05
  8. 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
  9. By: Ben Jebli, Mehdi; Ben Youssef, Slim
    Abstract: This paper uses panel cointegration techniques to examine the causal relationship between output, renewable energy consumption and international trade for a sample of 69 countries during the period 1980-2007. In the short-run, Granger causality tests show that there is evidence of bidirectional causality relationship between output and trade (exports or imports), and a unidirectional causality relationship running from renewable energy consumption to trade. However, in the short-run, there is evidence of no causality running from trade to renewable energy consumption. In the long-run, the error correction term provides that there is evidence of bidirectional causality relationship between output, trade and renewable energy consumption. Long-run estimations show that all coefficients are positive and statistically significant. Policies recommendations are that, in the long-run, international trade enables countries to benefit from technology transfer and to build the human and physical capacities needed to produce more renewable energies, while increasing their output. Therefore, more trade openness could be a good policy for combating global warming as it incites the use of renewable energies.
    Keywords: Renewable electricity consumption; Trade openness; Panel cointegration.
    JEL: C33 F14 Q42 Q43
    Date: 2013–05
  10. By: Michele Battisti (Department of Law, Politics and Society, University of Palermo); Michael S. Delgado (Department of Agricultural Economics, Purdue University); Christopher F. Parmeter (Department of Economics, University of Miami)
    Abstract: Economists and environmental policymakers have recently begun advocating a bottom-up approach to climate change mitigation, focusing on reduction targets for groups of nations, rather than large scale global policies. We advance this discussion by taking a quantitative perspective, focusing on econometric identification of groups of countries that have statistically similar distributions of carbon emissions using a broad range of finite mixture models. Nearly all of our results yield a consistent pattern: after 1980, there are two distinct emissions distributions, and that these distributions continue to evolve over time. We provide a rigorous analysis of these distributional differences along several important dimensions: polarization, mobility, and volatility. We discuss how this robust quantitative evidence may aid policymakers in forging a heterogeneous carbon abatement policy.
    Keywords: Carbon emissions; Emissions groups; Heterogeneity; Abatement policy; Finite mixture models
    JEL: C30 C38
    Date: 2013–05–08
  11. By: Christoph Böhringer (University of Oldenburg, Department of Economics, Germany); Jared C. Carbone (University of Calgary, Canada); Thomas F. Rutherford (University of Wisconsin, USA)
    Abstract: The cost-effectiveness of unilateral emission abatement can be seriously hampered by emission leakage. We assess three widely-discussed proposals for leakage reduction targeted at energy-intensive and trade-exposed industries: border tax adjustments, output-based allocation and industry exemptions. We find that none of these measures amounts to a “magic bullet” when both efficiency and equity criteria matter. Border tax adjustments reduce leakage and provide global cost savings but exacerbate regional inequality. Exemptions produce very little leakage reduction and run the risk of increasing efficiency cost of climate policy. Output-based allocation does no harm but also does relatively little good by our outcome measures.
    Keywords: Unilateral Climate Policy, Leakage, Efficiency, Equity
    Date: 2012–06
  12. By: Luis Puch (Univ. Complutense); Antonia Díaz (University Carlos III)
    Abstract: The evidence shows that the short run elasticity of energy use is smaller than its long run elasticity. The recent evidence on energy use and energy prices suggests, though, that the short run response of energy use to energy prices has changed over time. Existing theories of energy use, namely, complementarity between capital and energy at the aggregate level, or putty-clay models of energy use, cannot account for this change in the short run elasticity of energy use. Here we propose a theory where, as in the data, the short run elasticity of energy use is smaller than the long run elasticity but it also may change depending on the rate of embodied technological progress, accounting for its increase in the recent years.
    Date: 2012
  13. By: Verónica Acurio Vasconez (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne); Gaël Giraud (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Florent Mc Isaac (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne); Ngoc Sang Pham (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)
    Abstract: The economic implications of oil price shocks have been extensively studied since the oil price shocks of the 1970s'. Despite this huge literature, no dynamic stochastic general equilibrium model is available that captures two well-known stylized facts: 1) the stagflationary impact of an oil price shock, together with 2) two possible reactions of real wages: either a decrease (as in the US) or an increase (as in Japan). We construct a New-Keynesian DSGE model, which takes the case of an oil-importing economy where oil cannot be stored and where fossil fuels are used in two different ways: One part of the imported energy is used as an additional input factor next to capital and labor in the intermediate production of manufactured goods, the remaining part of imported energy is consumed by households in addition to their consumption of the final good. Oil prices, capital prices and nominal government spendings are exogenous random processes. We show that, without capital accumulation, the stagflationary effect is accounted for in general, and provide conditions under which a rise (resp. a declinr) of real wages follows the oil price shock.
    Keywords: New-Keynesian model; DSGE; oil; capital accumulation; stagflation
    Date: 2012–12
  14. By: Vanesa Valverde Camiña (EEHA - Escuela de Estudios Hispano Americanos - Consejo Superior de Investigaciones Científicas - CSIC (SPAIN))
    Abstract: The discovery of new oil fields and the bid for ecological fuels make Brazil world energy leader. However, this achievement cannot only be maintained thanks to the country's wealth of natural resources but rather it requires a model based on efficient and sustainable energy policies. Brazil's energy model seems to meet these criteria, on the one hand with a new hydrocarbons law that gives the government control of these resources and on the other hand with the production of biofuels and ethanol. Although we could consider that the cause of success in the case of Brazil is the availability of natural resources, in this study we argue that the regulatory governance of the energy sector developed in the 1990s in Brazil is a direct, explicative factor, giving the country a strategic position in Latin America. Finally, we will try to explain how energy development can influence the social development through one of the most unequal countries in Latin America.
    Keywords: Regulatory governance, Energy sector, Social development, Universalization, Efficiency
    Date: 2012
  15. By: Ben Jebli, Mehdi; Ben Youssef, Slim
    Abstract: We use panel cointegration techniques to examine the relationship between renewable energy consumption, trade and output in a sample of 11 African countries covering the period 1980-2008. The results from panel error correction model reveal that there is evidence of bidirectional causality between output and exports and between output and imports in both the short-run and the long-run. However, in the short-run, there is no evidence of causality between output and renewable energy consumption and between trade (exports or imports) and renewable energy consumption. In the long-run, the FMOLS panel approach estimation shows that renewable energy consumption and trade (exports or imports) have a statistically significant and positive impact on output. Policies recommendations are that, in the long-run, international trade enables African countries to benefit from technology transfer and to build the human and physical capacities needed to produce more renewable energies, which in turn increases their output.
    Keywords: Renewable energy consumption; International trade; Africa; Panel cointegration.
    JEL: C33 F14 Q42 Q43
    Date: 2013–04
  16. By: Jaime Casassus; Freddy Higuera
    Abstract: We build an equilibrium model to disentangle industry-speciï¬c from business cycle effects of oil on stock returns. In our model oil is considered as an input factor for production and also as a macro variable. We estimate the model for 13 industries, including the oil industry. Our results suggest that the value of all non-oil industries decreases with an oil price shock. This result is explained by the effect of oil on the price-dividend ratios of the industries, in particular, by the signiï¬cant negative effect of oil on their growth opportunities. The high persistence of the real oil price shocks makes these effects to be long-lived. The effect of oil on the current cash-flows is negative but small. This explains why the oil price shocks can produce such a signiï¬cant effects on the US ï¬nancial market despite the low US economy's oil intensity. The conditional expected portfolio returns decrease with the oil price because of the negative effect of oil on the market price of risk and interest rates. Moreover, industries with higher systematic risk have expected returns that are more affected by the oil price. We ï¬nd that most of the systematic risk of the ï¬rms is explained by their output rather than by effect of oil on the cash-flows.
    Keywords: oil price, business cycle, asset pricing, time-varying risk premia, industry stock returns, conditional CAPM
    JEL: G12 G17 Q43 E44 E32
    Date: 2013
  17. By: Bernhard Klaus Michel
    Abstract: Since the mid-90's, production-related air emissions in Belgian manufacturing have been reduced substantially and it can be shown that the pace of the reduction has been fastest for domestic intermediates. It is widely debated whether offshoring has played a role in this reduction by replacing domestic intermediates by imported intermediates. This paper develops a decomposition analysis to measure the contribution of offshoring – the share of imported intermediates in total intermediates – to the fall in air emission intensities for domestic intermediates. This decomposition analysis reveals that 27% of the fall in the intensity of greenhouse gas emissions, 20% of the fall in the intensity of acidifying emissions and 20% of the fall in the intensity of tropospheric precursor emissions in Belgian manufacturing between 1995 and 2007 can be attributed to offshoring.
    JEL: F18 Q53
    Date: 2013–05–24
  18. 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
  19. By: Gutierrez-Hita, Carlos; Martinez-Sanchez, Francisco
    Abstract: Many products are made by technological processes that cause environmental damage. Current environmental concerns are affecting firms' technological processes as a result of government intervention in markets but also due to environmental awareness on the part of consumers. This paper assumes a spatial competition model where two firms sell a homogeneous product with input differentiation: the product is made by green and polluting inputs. In a two-stage game firms first decide what technology bundle to use (the ratio of green and polluting inputs) and then Bertrand competition takes place. First, it is shown that in the absence of government intervention both firms prefer to produce by using a bundle of green and polluting technologies which is not welfare maximizing. Second, the option of subsidizing green technology and the existence of a publicly-owned firm are analyzed. Overall, both policies yield a more environmentally-friendly technology bundle, except when costs of green energy technologies are high enough. Moreover, environmental social welfare is enhanced.
    Keywords: Differentiated inputs · Environmental policy · Green market · Mixed duopoly · Subsidy
    JEL: D11 D43 L11
    Date: 2013–05–29
  20. 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
  21. By: Xavier Galiègue (LEO - Laboratoire d'économie d'Orleans - CNRS : UMR7322 - Université d'Orléans)
    Abstract: Si les innovations environnementales vont être amenées à jouer un rôle décisif dans les transitions énergétiques, leur mise en oeuvre n'a rien de spontané et nécessite de faire appel à des schémas incitatifs crédibles et des mesures réglementaires fortes. Les techniques en jeu sont en effet lourdes, engageant des externalités de réseau et des économies d'échelle, avec une forte incertitude technique et économique. Dans le domaine des transitions énergétiques le progrès technique peut aboutir ainsi à des " effets de rebond ", l'amélioration de l'efficience énergétique d'une technique pouvant prolonger son utilisation et retarder l'adoption de techniques permettant de réduire plus drastiquement l'intensité en carbone de l'économie. Les techniques de capture et de stockage de carbone, à partir d'énergie fossile (CCS) ou de biomasse (BECCS) apparaissent de ce point de vue comme un moyen de rendre compatible l'utilisation des énergies fossiles avec la réduction des émissions de gaz à effet de serre. Elles n'échappent aux contraintes décrites précédemment, auxquelles il faut ajouter celles pesant sur le prix du carbone évité, sur leur statut réglementaire, et leur acceptabilité. En tout état de cause l'intégration de ces techniques reste une priorité pour les systèmes nationaux d'innovation.
    Keywords: Economie de l'environnement, Economie de l'innovation, Economie de l'énergie, Capture et Stockage du CO2 , Capture et Stockage du CO2 à partir de la Biomasse.
    Date: 2012–02–16
  22. By: Bruce A. Babcock (Center for Agricultural and Rural Development (CARD)); Marcelo Moreira; Yixing Peng
    Abstract: Future prospects for biofuels in the United States and Brazil depend on government policies, the prices of gasoline and feedstocks, and the ability of each country’s fleet of vehicles to use ethanol. Because trade barriers between the two countries are low, the prospects for biofuels in each country are dependent on what goes on in the other. To help sort out the complex web of interrelated markets and fuels requires a model of the markets in which the fuels are traded. In this paper we present an updated and expanded market model of biofuels in Brazil and the United States and use the model to help understand the economic impacts of the US biodiesel tax credit and a recent reduction in the tax on ethanol in Brazil. The model looks ahead to the 2013/14 corn marketing year in the United States that begins on September 1, 2013. Crop acreage is assumed known and fixed. For 500 different yield levels of US corn and soybeans, Brazilian soybean, sugarcane and recoverable sugar yields, Argentine soybean yields, gasoline prices and demand for Brazilian exports, the model solves for market-clearing prices and quantities of US corn ethanol and biodiesel, Brazilian sugarcane ethanol, and world prices of corn, soybeans, soybean oil and meal, and sugar. US biofuel mandates are a major driver of the market solutions. The competition between biodiesel and sugarcane ethanol to meet the US advanced mandate and the competition between sugarcane ethanol and corn ethanol to meet the US conventional mandate as well as ethanol demand in Brazil are what determine model solutions. The outcome of this competition is a set of equilibrium RIN (Renewable Identification Number) prices that reflect underlying biofuel supply and demand conditions. The model is calibrated to USDA’s May 2013 WASDE projections and to Brazil’s latest CONAB projections. Both sets of projections indicate that corn and sugarcane supplies are likely to increase from recent levels, lowering the cost of producing ethanol. This lower cost helps to hold down conventional biofuel RIN prices, which still must be high enough to induce ethanol consumption beyond the 10 percent blend wall in the United States. In Brazil, more abundant sugarcane supplies will result in increased ethanol production and consumption, but because the demand for ethanol in Brazil is price elastic, market prices will not drop much from recent levels. The biodiesel tax credit increases the competitiveness of US biodiesel relative to sugarcane ethanol. Thus, biodiesel production will likely exceed levels needed to meet the biomass-based diesel mandate and will result in lower imports of sugarcane ethanol. The decline in Brazilian ethanol exports decreases Brazilian domestic demand for imported US corn ethanol so the extent of two-way trade in ethanol is reduced under the tax credit. However, demand for ethanol in Brazil is strong enough, and the cost of producing corn ethanol will likely be low enough, to induce strong exports of corn ethanol to Brazil even with the tax credit. The strong demand for ethanol in Brazil due to its large fleet of flex vehicles is further boosted by the reduction in one of Brazil’s ethanol taxes. Because of the availability of corn ethanol, much of the ethanol consumption increase in Brazil caused by the lower tax is met by increased imports of US corn ethanol.
    Date: 2013–05
  23. By: Clifton, Judith; Díaz-Fuentes, Daniel; Fernández-Gutiérrez, Marcos
    Abstract: Augmenting consumer welfare was a key justification behind the reform of utilities from the 1980s. But, three decades later, evidence is mounting that consumer satisfaction with household utilities is quite uneven. Moreover, governments, regulators and international organizations are increasingly recognizing that consumers from specific socio-economic backgrounds may be less satisfied than those from other backgrounds. To attend to this, instances of demand-side regulation have been implemented, but there remains a lack of empirical research on the precise links between consumers’ socio-economic background and their satisfaction. This article contrasts consumers’ stated and revealed preferences for three major household utility services (electricity, gas and telecommunications, including internet) across twelve European countries. Contrasting stated and revealed preferences has been applied to policy on transportation, marketing and the environment: this article pioneers the application of this technique to the analysis of satisfaction with household utilities across multiple countries. We find strong evidence that consumers’ socio-economic category matters: consumers with lower levels of education, the elderly and those who are not employed exhibit particular expenditure patterns and lower satisfaction levels vis-à-vis some of or all the services under analysis. We conclude by highlighting how our findings may be of use to regulators in the ongoing quest to improve the quality of utility regulation.
    Keywords: Utilities, regulation, satisfaction, socio-economic background, consumers, stated and revealed preferences.
    JEL: D12 D18 L9 L97 L98
    Date: 2013–05–29
  24. By: Zhu Wang
    Abstract: This paper studies unintended consequences of price cap regulation in the presence of demand externalities in the context of payment cards. The recent U.S. debit card regulation was intended to lower merchant card acceptance costs by capping the maximum interchange fee. However, small-ticket merchants found their fees instead higher after the regulation. To address this puzzle, I construct a two-sided market model and show that card demand externalities across merchant sectors rationalize card networks’ pricing response. Based on the model, I study socially optimal card fees and an alternative cap regulation that may avoid the unintended consequence on small-ticket merchants.
    Keywords: Financial markets ; Payment systems ; Law and legislation
    Date: 2013
  25. By: Olivia Ricci (LEO - Laboratoire d'économie d'Orleans - CNRS : UMR7322 - Université d'Orléans)
    Abstract: La France s'est fixée comme objectif de diviser par quatre ses émissions de gaz à effet de serre d'ici 2050 par rapport au niveau de 1990. L'objectif de l'étude est de déterminer les politiques publiques à mettre en oeuvre pour atteindre ce Facteur 4 compte tenu de la disponibilité de la capture et du stockage du carbone issu d'énergie fossile (CSC) et de biomasse (BCSC). Nous évaluons les effets de l'introduction de la contribution climat-énergie (CCE) envisagée par le Grenelle de l'environnement et nous comparons l'efficacité économique d'une panoplie d'instruments grâce à un modèle d'équilibre général calculable. L'étude montre que la CCE proposée engendre un ralentissement de l'activité économique et que les instruments les plus économiquement efficaces sont ceux qui permettent également de développer la CSC et la BCSC, notamment la taxe carbone dont les revenus sont recyclés pour subventionner la BCSC.
    Keywords: Capture et stockage du carbone ; biomasse ; taxe carbone ; instruments économique ; Facteur 4 ; modèle d'équilibre général calculable
    Date: 2012–10–03
  26. By: Martin, Philippe (Département d'économie); Bureau, Dominique (MEEDDAT); Fontagné, Lionel (Maison des Sciences Economiques)
    Abstract: Dans un contexte de renchérissement prévisible de l’énergie au cours des vingt prochaines années, orienter l’effort d’innovation industrielle et l’offre de biens et services vers des technologies économes en énergie est une nécessité. Toutefois, une hausse des prix de l’énergie plus marquée en France que chez nos concurrents pénaliserait la compétitivité à court terme de l’industrie française. Cette Note expose les termes de l’arbitrage que doit affronter la France entre la préservation d’un élément significatif de sa compétitivité à court terme (le coût relativement faible de son énergie en particulier électrique) et la nécessaire transformation de ses avantages comparatifs à moyen-long terme (sous l’effet d’une vérité des prix énergétiques). À partir d’un travail économétrique original portant sur les exportations des entreprises françaises, nous estimons qu’une hausse de 10 % des prix de l’électricité en France réduirait la valeur des exportations en moyenne de 1,9 % et qu’une même augmentation du prix du gaz les réduirait de 1,1 %. La perte de compétitivité est sensiblement plus marquée pour les plus gros exportateurs, parti- culièrement dans les secteurs fortement dépendants de l’énergie. Cet effet négatif de court terme est à mettre en regard de l’effet de signal d’une hausse des prix de l’énergie sur les spécialisations à moyen-long terme, afin que la France ne reste pas en arrière dans la course à l’innovation « verte ». Nous tirons de cette analyse plusieurs enseignements. Tout d’abord, il convient d’annoncer la hausse des prix de l’énergie, de manière crédible, afin que les agents économiques l’intègrent dans leurs calculs et réorientent leurs choix de consommation et de production. Afin de limiter les effets négatifs d’un renchérissement de l’énergie sur la compétitivité à court terme, nous recommandons que la taxation supplémentaire de l’énergie soit utilisée pour réduire le coût du travail, une grande prudence quant au rythme de déclassement des équipements nucléaires historiques, dont le coût au kWh est particulièrement performant, une imputation différenciée de la charge de service public en fonction de l’intensité énergétique (comme en Allemagne) et une convergence des approches au niveau européen pour ce qui concerne les coûts de réseau.
    Date: 2013–05
  27. By: Samir Bellal (Faculté des Sciences Economiques - Université de Guelma)
    Abstract: Dans cet article, on se propose de traiter de l'opportunité de recourir à la théorie du " syndrome hollandais " pour analyser le phénomène de la désindustrialisation qui caractérise la trajectoire économique de l'Algérie durant ces dernières années. Après un exposé succinct sur le contenu et le statut théorique des modèles du dutch disease, nous procèderons, sur la base d'une vérification empirique, à une analyse critique de la théorie, ce qui nous amènera à nous interroger sur les facteurs à même d'expliquer les blocages auxquels l'industrialisation est confrontée.
    Keywords: dutch disease, industrialisation, régime rentier, taux de change.
    Date: 2013–05–28
  28. By: François Lévêque (CERNA - Centre d'économie industrielle - MINES ParisTech - École nationale supérieure des mines de Paris)
    Abstract: L'accident de Fukushima Daiichi a jeté une lumière crue sur les défauts de la régulation de sûreté. Comment inspirer la confiance des citoyens pour l'énergie nucléaire si les normes de sûreté sont mal conçues ou inappliquées? Le drame japonais résulte d'une conjonction de facteurs naturels, mais il n'aurait vraisemblablement pas entraîné de tels dommages si la collusion n'avait pas régné entre les autorités de sûreté et ceux qu'elles devaient en principe contrôler. Comment réguler la sûreté de façon efficace ? En l'absence d'autorités nationales fortes, indépendantes et compétentes, l'énergie nucléaire ne pourra pas progresser dans le monde.
    Date: 2013–05

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