nep-ene New Economics Papers
on Energy Economics
Issue of 2013‒09‒24
24 papers chosen by
Roger Fouquet
London School of Economics

  1. How Does the Oil Price Shock Affect Consumers? By Gao, Liping; Kim, Hyeongwoo; Saba, Richard
  2. Forecasting the Real Price of Oil in a Changing World: A Forecast Combination Approach By Baumeister, Christiane; Kilian, Lutz
  3. Stability analysis of a model for the market dynamics of a smart grid By F. Sorrentino; D. Tolic; R. Fierro; J. R. Gordon; A. Mammoli
  4. Back to the Future of Green Powered Economies By M. Scott Taylor; Juan Moreno Cruz
  5. China's new energy vehicles: value and innovation By Chris Kimble; Hua Wang
  6. Can Uncertainty Justify Overlapping Policy Instruments to Mitigate Emissions? By Oskar Lecuyer; Philippe Quirion
  7. Energy Subsidies and Energy Consumption—A Cross-Country Analysis By Joshua Charap; Arthur Ribeiro da Silva; Pedro C Rodriguez
  8. Optimal Power Generation Investment: Impact of Technology Choices and Existing Portfolios for Deploying Low-Carbon Coal Technologies By Rohlfs, Wilko; Madlener, Reinhard
  9. RFS Compliance Costs and Incentives to Invest in Ethanol Infrastructure By Bruce A. Babcock
  10. The Fiscal and Welfare Impacts of Reforming Fuel Subsidies in India By Rahul Anand; David Coady; Adil Mohommad; Vimal V Thakoor; James P Walsh
  11. Modeling of Emission Allowance Markets: A Literature Review By Vincent Bertrand
  12. The Supply of Environmentalism By Edward L. Glaeser
  13. Melting-pots and salad bowls: the current debate on electricity market design for RES integration By Arthur HENRIOT; Jean-Michel GLACHANT
  14. Statistical description of the error on wind power forecasts via a Lévy α-stable distribution By Kenneth Bruninx; Erik Delarue; William D’haeseleer
  15. Structural Changes in Commodity Prices: The Role of Policies By DeGorter, Harry; Just, David; Mugera, Harriet Kasidi
  16. CCS – Failing to pass decision gates By Emhjellen, Magne; Osmundsen, Petter
  17. Private Property Rights and Pollution in Emerging Market Economies By Yang, Zhenzeng
  18. Fiscal Sustainability, Public Investment, and Growth in Natural Resource-Rich, Low-Income Countries: The Case of Cameroon By Issouf Samaké; Priscilla S. Muthoora; Bruno Versailles
  19. Bootstraps for Meta-Analysis with an Application to the Impact of Climate Change By Richard S.J. Tol
  20. The Political Economy of Migration Policies in Oil-rich Gulf Countries By Mehlum, Halvor; Østenstad, Gry
  21. The Entropy Law and the impossibility of perpetual economic growth By Henrique N. S\'a Earp; Ademar R. Romeiro
  22. Carbon Taxes, Agricultural Competitiveness and Trade By Nicholas Rivers; Brandon Schaufele
  23. Do the Laws of Tax Incidence Hold? Point of Collection and the Pass-through of State Diesel Taxes By Wojciech Kopczuk; Justin Marion; Erich Muehlegger; Joel Slemrod
  24. Abschätzung der Politikfolgen eines Belohnungs- und Bestrafungsszenarios zur Förderung des Blühstreifenanbaus – ein Framed Field Experiment By Holst, Gesa Sophie; Mußhoff, Oliver; Dörschner, Till

  1. By: Gao, Liping; Kim, Hyeongwoo; Saba, Richard
    Abstract: This paper evaluates the degree of the pass-through effect of the oil price shock to six CPI sub-indices in the US. We report substantially weaker pass-through effects in less energy-intensive sectors compared with those in more energy-intensive sectors. We attempt to find an explanation for this from the role of spending adjustments when there’s an unexpected change in the oil price. Using linear and nonlinear framework, we find substantial decreases in the relative price in less energy-intensive sectors, but not in energy-intensive sectors, which may be due to a substantial decrease in the demand for goods and services in those CPI sub-baskets. Our findings are consistent with those of Edelstein and Kilian (2009) in the sense that spending adjustments play an important role in price dynamics in response to unexpected changes in the oil price.
    Keywords: Oil Price Shocks; Pass-Through Effect; Consumer Price Sub-Index; Income Effect; Threshold Vector Autoregressive Model
    JEL: E21 E31 Q43
    Date: 2013–09–06
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:49565&r=ene
  2. By: Baumeister, Christiane; Kilian, Lutz
    Abstract: The U.S. Energy Information Administration regularly publishes short-term forecasts of the price of crude oil. Traditionally, such out-of-sample forecasts have been largely judgmental, making them difficult to replicate and justify, and not particularly successful when compared with naïve no-change forecasts, as documented in Alquist et al. (2013). Recently, a number of alternative econometric oil price forecasting models has been introduced in the literature and shown to be more accurate than the no-change forecast of the real price of oil. We investigate the merits of constructing real-time forecast combinations of six such models with weights that reflect the recent forecasting success of each model. Forecast combinations are promising for four reasons. First, even the most accurate forecasting models do not work equally well at all times. Second, some forecasting models work better at short horizons and others at longer horizons. Third, even the forecasting model with the lowest MSPE may potentially be improved by incorporating information from other models with higher MSPE. Fourth, one can think of forecast combinations as providing insurance against possible model misspecification and smooth structural change. We demonstrate that over the last 20 years suitably constructed real-time forecast combinations would have been more accurate than the no-change forecast at every horizon up to two years. Relative to the no-change forecast, forecast combinations reduce the mean-squared prediction error by up to 18%. They also have statistically significant directional accuracy as high as 77%. We conclude that suitably constructed forecast combinations should replace traditional judgmental forecasts of the price of oil.
    Keywords: Forecast combination; Model misspecification; Oil price; Real-time data; Structural change
    JEL: C53 E32 Q43
    Date: 2013–07
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9569&r=ene
  3. By: F. Sorrentino; D. Tolic; R. Fierro; J. R. Gordon; A. Mammoli
    Abstract: We consider the dynamics of a smart grid system characterized by widespread distributed generation and storage devices. We assume that agents are free to trade electric energy over the network and we focus on the emerging market dynamics. We consider three different models for the market dynamics for which we present a stability analysis. We see that stability depends on the specific form of the market dynamics and it may depend on the structure of the underlying network topology. We run numerical simulations that confirm our theoretical predictions. As an example, we test our model for the market dynamics over a real network topology, namely, the Tramway 11 Feeder from New Mexico's power network.
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1309.2970&r=ene
  4. By: M. Scott Taylor (University of Calgary); Juan Moreno Cruz
    Date: 2013–08–31
    URL: http://d.repec.org/n?u=RePEc:clg:wpaper:2013-19&r=ene
  5. By: Chris Kimble (MRM - Montpellier Recherche en Management - Université Montpellier II - Sciences et techniques : EA4557 - Université Montpellier I - Université Paul Valéry - Montpellier III - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School, Euromed Marseille - École de management - Association Euromed Management - Marseille); Hua Wang (Euromed Marseille - École de management - Association Euromed Management - Marseille)
    Abstract: Purpose The overarching theme is the importance of innovations that are created within the emerging economies. More specifically, the article looks at the development of various alternatives to vehicles powered by the internal combustion engine, new energy vehicles (NEVs) within China. Design/methodology/approach The broad strategic approach of two sectors within the NEV sector in China, the pure electric vehicle (EV) and the low-speed electric vehicle (LSEV) sectors, are compared using recent data and conclusions are drawn. Findings The EV sector is viewed by the central government as a key sector for China's future industrial growth and is heavily supported. In contrast, the LSEV sector receives no support from central government and yet clearly outstrips the sales of EVs. The article argues that the latter's success is a reflection of the LSEV sector's focus on business model rather than technological innovation. Practical implications The article highlights the importance of monitoring innovations that come from within emerging economies and also illustrates the benefits that can come from commercially focused innovations rather than those based on technology. Social implications Finding alternatives to vehicles powered by fossil fuels is one of the most important challenges facing the world today. This article looks at the search for one alternative and examines its implications. What is original/of value? The article examines a business sector that is peculiarly Chinese and yet has potential implications far beyond China. It also contains recent sales figures and other data collected directly from sources in China.
    Keywords: Business models; China; Electric vehicles; Emergent strategy; Emerging economies; Innovation; Innovation; New energy vehicles
    Date: 2013–08–01
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00859484&r=ene
  6. By: Oskar Lecuyer; Philippe Quirion
    Abstract: This article constitutes a new contribution to the analysis of overlapping instruments to cover the same emission sources. Using both an analytical and a numerical model, we find that when the risk that the CO2 price drops to zero and the political unavailability of a CO2 tax (at least in the European Union) are taken into account, it can be socially beneficial to implement an additional instrument encouraging the reduction of emissions, for instance a renewable energy subsidy. Our analysis has both a practical and a theoretical purpose. It aims at giving economic insight to policymakers in a context of increased uncertainty concerning the future stringency of the European Emission Trading Scheme. It also gives another rationale for the use of several instruments to cover the same emission sources, and shows the importance of accounting for corner solutions in the definition of the optimal policy mix
    Keywords: Uncertainty, Policy overlapping, Mitigation policy, Energy policy, EU-ETS, Renewable energy, Corner solutions, Nil CO2 price, European Union
    JEL: Q28 Q41 Q48 Q58
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:cec:wpaper:1301&r=ene
  7. By: Joshua Charap; Arthur Ribeiro da Silva; Pedro C Rodriguez
    Abstract: The economic and environmental implications of energy subsidies have received renewed attention from policymakers and economists in recent years. Nevertheless there remains significant uncertainty regarding the magnitude of the impact of energy subsidies on energy consumption. In this paper we analyze a panel of cross-country data to explore the responsiveness of energy consumption to changes in energy prices and the implications of our findings for the debate on energy subsidy reform. Our findings indicate a long-term price elasticity of energy demand between -0.3 and -0.5, which suggests that countries can reap significant long-term benefits from the reform of energy subsidies. Our findings also indicate that short-term gains from subsidy reform are likely to be much smaller, which suggests the need for either a gradual approach to subsidy reform or for more generous safety nets in the short term.
    Keywords: Energy;Subsidies;Energy prices;Consumption;Demand;Price elasticity;Cross country analysis;Energy, subsidy, price elasticity, income elasticity
    Date: 2013–05–16
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:13/112&r=ene
  8. By: Rohlfs, Wilko (RWTH Aachen University); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))
    Abstract: In this paper we identify optimal strategies for the investment in power generation assets. The investments are characterized by multiple available technologies whose economic value is driven by a technology-specific combination of several underlying assets, such as the price of fuel, electricity, and CO2. The correlation between the development of those underlying assets allows for diversification and thus to reduce the overall risk by holding a portfolio of different technologies. This yields an investor-dependent strategy for the deployment of new energy generation assets. The modeling framework developed is based on stochastic real options analysis that enables to account for the additional value of waiting which arises from uncertain commodity price development. In the presentation, we increase the model’s complexity stepwise, in order to depict the influences of various aspects, as for instance the interaction of technologies, value of waiting, or modification of an existing power plant portfolio. We find that including the value of waiting in the decision process not only delays the investment but also leads to an asymmetric risk distribution which features a much lower probability for losses. In addition, the results where the value of waiting is incorporated are more robust with respect to a variation of the investor’s risk- and time-preferences compared to the results gained with the classical net present value model. Finally, we investigate the required market conditions needed for the deployment of carbon capture and storage (CCS) technologies. We find that a carbon dioxide price of 60 e/tCO2 and an electricity price of 70 e/MWh is required in the year 2015 in order to reach a probability of at least 50% for the deployment of CCS in 2022.
    Keywords: CCS; Real options; Retrofit; Renewable energies
    Date: 2013–08
    URL: http://d.repec.org/n?u=RePEc:ris:fcnwpa:2013_012&r=ene
  9. By: Bruce A. Babcock (Center for Agricultural and Rural Development (CARD))
    Abstract: At the request of the oil industry and livestock groups, Congress and the Environmental Protection Agency (EPA) are considering whether to reduce biofuel blending mandates. Livestock groups want lower corn prices and the oil industry claims that it simply cannot blend more biofuels than current levels. The oil industry argues that its only compliance option is to reduce domestic gasoline and diesel sales if mandates are not reduced; however, an alternative compliance path is to increase the demand for ethanol by investing in E85 fueling capabilities. Ethanol demand would increase by between 800 million and one billion gallons per year for each 2,500 stations with E85 fueling capabilities given the existing fleet of flex vehicles. The cost of investing in E85 at existing stations depends on whether a new tank needs to be installed or whether an existing tank can be converted. If new tanks need to be installed then the cost of 2,500 stations would be at least $325 million. If no new tanks need to be installed then the cost would be approximately $87.5 million. With the price of the tradable ethanol credits trading between $0.60 and $0.70 per gallon, and with at least 14 billion credits needed under current mandates, it seems that the reduction in compliance costs could be greater than the costs of investing in E85 infrastructure, which would create an incentive for investment. Simulation results show that this is indeed the case if EPA sets mandates that are attainable with investment. If EPA sets 2014 mandates that can be met with 13.9 billion gallons, then investment in 2,500 E85 stations would reduce oil company compliance costs $ from $3.5 billion to $1.2 billion. If EPA sets 2015 requirements that can be met with 14.7 billion gallons, then 2015 compliance costs would be reduced by more than $3.2 billion dollars from investment in an additional 2,500 E85 stations. Taxpayers, gas station owners, or oil companies could pay for the investment. Congress could divert farm subsidies to pay for E85 investment with a justification that an important beneficiary of ethanol is land-owning farmers. Gas station owners will have an incentive to make the investment if the wholesale price of E85 drops enough to generate fuel cost savings to drivers as well as higher wholesale-retail margins to station owners. Oil companies might find it more efficient to make the investment themselves if the required price of ethanol credits rises too high for too long.
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:ias:cpaper:13-pb13&r=ene
  10. By: Rahul Anand; David Coady; Adil Mohommad; Vimal V Thakoor; James P Walsh
    Abstract: Rising fuel subsidies have contributed to fiscal pressures in India. A key policy concern regarding subsidy reform is the adverse welfare impact on households, in particular poor households. This paper evaluates the fiscal and welfare implications of fuel subsidy reform in India. Fuel subsidies are found to be badly targeted, with the richest ten percent of households receiving seven times more in benefits than the poorest ten percent. Although subsidy reform would generate substantial fiscal savings, the associated increases in fuel and other prices would lower household real incomes of all income groups. Better targeting of fuel subsidies would fully protect lower income households while still generating substantial net fiscal savings. Lessons from subsidy reforms in other countries are identified and discussed.
    Keywords: Fiscal reforms;India;Energy sector;Oil;Subsidies;Welfare;Fuel pricing, subsidy reform, distributional impact, compensating transfers, India
    Date: 2013–05–29
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:13/128&r=ene
  11. By: Vincent Bertrand
    Abstract: This paper reviews the development of emission trading models from the earliest to recent contributions. First, we introduce the economics of pollution control and the origins of emission trading. We give a brief description of policy instruments for the control of pollution, and explain why economic instruments (Pigouvian tax and emission trading) produce better results than “command-and-control” approaches. Second, we review several papers on modeling of emission trading systems, with a focus on dynamic models in case of perfect competition. We begin with the earliest static models, investigating a number of factor that can affect the effectiveness of emission trading (e.g. market power, transaction-costs, political pressures, etc). Next, we present dynamic models of permit markets, analysing questions such as banking/borrowing, relationship between spot and future markets, exogenous factors influencing the marginal abatement cost, etc. Finally, we end the paper with recent studies that model the main features of the European Emission Trading Scheme (EU ETS) in a dynamic framework with stochastic emissions.
    Keywords: Emission Trading, EU ETS, Partial Equilibrium Modeling
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:cec:wpaper:1304&r=ene
  12. By: Edward L. Glaeser
    Abstract: Long before economics turned to psychology, environmentalists were nudging and framing and pushing their cause like highly gifted amateur psychologists. Their interventions seem to have changed behavior by altering beliefs, norms and preferences, but because psychological interventions are often coarse, inadvertent, offsetting side effects occur. After discussing the interplay between environmental preference-making and economics, I turn to three areas where strong, simple views have spread—electric cars, recycling and local conservation efforts. In all three areas, environmental rules of thumb can lead to significant, adverse environmental side effects. Local environmentalism, for example, may increase carbon emissions by pushing development from low emission areas, like coastal California, to high emissions areas elsewhere. I end by discussing how economic analysis of the political market for ideas can make sense of the remarkable disparity of views on global warming.
    JEL: Q0 Q5
    Date: 2013–08
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19359&r=ene
  13. By: Arthur HENRIOT; Jean-Michel GLACHANT
    Abstract: This paper discusses a series of Numbers regarding the economic integration of intermittent renewables into European electricity markets. This debate has gained in importance following the large-scale deployment of wind farms and photovoltaic panels. As intermittent renewables constitute a significant share of the installed generation capacity, they cannot be kept isolated from the electricity markets. We argue that RES integration is first and foremost an Number of economic efficiency, and we review the main debates and frameworks that have emerged in the literature. We first consider to what extent intermittent resources should be treated the same way as dispatchable resources. We then analyse the different tools that have been proposed to ensure the required flexibility will be delivered: finer temporal granularity and new price boundaries, integration of a complex set of balancing markets, and introduction of tailor-made capacity remuneration mechanisms. Finally we introduce the topic of space redistribution, confronting cross-continental markets integration to the emergence of a mosaic of local markets.
    Keywords: Electricity market design, large-scale renewables, intermittency
    Date: 2013–07
    URL: http://d.repec.org/n?u=RePEc:rsc:rsceui:2013/55&r=ene
  14. By: Kenneth Bruninx; Erik Delarue; William D’haeseleer
    Abstract: As the share of wind power in the electricity system rises, the limited predictability of wind power generation becomes increasingly critical for operating a reliable electricity system. In most operational & economic models, the wind power forecast error (WPFE) is often assumed to have a Gaussian or so-called ï¢-distribution. However, these distributions are not suited to fully describe the skewed and heavy-tailed character of WPFE data. In this paper, the Lévy ï¡-stable distribution is proposed as an improved description of the WPFE. Based on 6 years of historical wind power data, three forecast scenarios with forecast horizons ranging from 1 to 24 hours are simulated via a persistence approach. The Lévy ï¡-stable distribution models the WPFE better than the Gaussian or so-called ï¢-distribution, especially for short term forecasts. In a case study, an analysis of historical WPFE data showed improvements over the Gaussian and ï¢-distribution between 137 and 567% in terms of cumulative squared residuals. The method presented allows to quantify the probability of a certain error, given a certain wind power forecast. This new statistical description of the WPFE can hold important information for short term economic & operational (reliability) studies in the field of wind power.
    Keywords: Error analysis, Lévy a-stable distribution, Statistical analysis, Stable process, Wind power forecasting, Wind power generation
    Date: 2013–07
    URL: http://d.repec.org/n?u=RePEc:rsc:rsceui:2013/50&r=ene
  15. By: DeGorter, Harry; Just, David; Mugera, Harriet Kasidi
    Abstract: Food commodity prices have recently increased sharply and become more volatile, highlighting greater uncertainty in markets and serious implications for food security among the poor globally. High fuel prices combined with legislative policies have increased biofuel production causing high food prices and establishing a link between fuel and agricultural prices. This research analyses the role of biofuel, agricultural and energy policies in affecting the relationships between agricultural and energy commodity prices over the last decade. The presence and the nature of structural breaks are empirically. This research finds that structural changes in the prices and price relationships are policy-driven.
    Keywords: Agricultural commodity prices, energy prices, biofuels, policies, structural break analysis, Agricultural and Food Policy,
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:ags:gewi13:156255&r=ene
  16. By: Emhjellen, Magne (Petoro); Osmundsen, Petter (UiS)
    Abstract: .
    Keywords: Climate Projects; Decision Analysis; CO2
    JEL: A10
    Date: 2013–09–11
    URL: http://d.repec.org/n?u=RePEc:hhs:stavef:2013_007&r=ene
  17. By: Yang, Zhenzeng
    Abstract: I use cross-country panel data to show that strengthening of private property rights protection lowers pollution emission intensity. The finding is robust to the inclusion of many controls and use of different independent variables. This paper provides preliminary empirical evidence for property rights theory of environmental goods, and suggests that completely specifying property rights is an important approach to response to environmental degradation.
    Keywords: Private Property Rights, Pollution, Emerging Market, CO2 Emission
    JEL: Q28 Q56
    Date: 2013–07–30
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:48717&r=ene
  18. By: Issouf Samaké; Priscilla S. Muthoora; Bruno Versailles
    Abstract: This paper assesses the implications of the use of oil revenue for public investment on growth and fiscal sustainability in Cameroon. We develop a dynamic stochastic general equilibrium model to analyze the effects of such investment on growth and on the path of key fiscal indicators, such as the non-oil primary deficit and public debt. Policy scenarios show that Cameroon’s large infrastructural needs and relatively low current debt levels could justify a temporary deviation from traditional policy advice that suggests saving part of the oil revenue to smooth expenditure over time. Model simulations show that a relatively high degree of efficiency of public investment is needed for scaled-up public investment to make a significant contribution to growth, while maintaining fiscal sustainability.
    Keywords: Fiscal sustainability;Cameroon;Economic growth;Oil revenues;Fiscal policy;Public investment;Natural resources;Low-income developing countries;Economic models;Cameroon, fiscal policy, DSGE, natural resource-rich countries, low-income countries, public investment, growth.
    Date: 2013–06–11
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:13/144&r=ene
  19. By: Richard S.J. Tol (Department of Economics, University of Sussex; Institute for Environmental Studies, Vrije Universiteit, Amsterdam, The Netherlands; Department of Spatial Economics, Vrije Universiteit, Amsterdam, The Netherlands; Tinbergen Institute, Amsterdam, The Netherlands)
    Abstract: Bootstrap and smoothed bootstrap methods are used to estimate the uncertainty about the total impact of climate change, and to assess the performance of commonly used impact functions. Kernel regression is extended to include restrictions on the functional form. Impact functions do not describe the primary estimates of the economic impacts very well, and monotonic functions do particularly badly. The impacts of climate change do not significantly deviate from zero until 2.5-3.5°C warming. The uncertainty is large, and so is the risk premium. The ambiguity premium is small, however. The certainty equivalent impact is a negative 1.5% of income for 2.5°C, rising to 15% (50%) for 5.0°C for a rate of risk aversion of 1 (2).
    Keywords: impacts of climate change, kernel regression, bootstrap, risk aversion, ambiguity aversion
    JEL: C14 Q54
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:sus:susewp:6413&r=ene
  20. By: Mehlum, Halvor (Dept. of Economics, University of Oslo); Østenstad, Gry (Dept. of Economics, University of Oslo)
    Abstract: We study the political economy of migration policies in oil-rich Gulf countries focusing on two policy dimensions: a) the number of migrants allowed into the country and b) the assimilation of migrants, where less assimilated migrants on short-term contracts remit more. We develop a two goods macro model with traded and non-traded goods. The migration of guest workers leads to a wage drop hurting citizen workers, while capitalists and oil rent earners benefit. When foreign exchange is remitted out of the economy, the real exchange rate depreciates. The remittance outflow benefits oil rent earners while capitalists and workers lose. Hence the three classes of domestic agents have diverging interests with regard to their preferred policy mix. The results are important for understanding the changes in migration policy in the Gulf, in particular in relation to the sharing of oil rents and on the political influence of the working class and the capitalists.
    Keywords: Migration; Natural Resources; Gulf countries
    JEL: F22 O15 P16
    Date: 2013–05–31
    URL: http://d.repec.org/n?u=RePEc:hhs:osloec:2013_018&r=ene
  21. By: Henrique N. S\'a Earp; Ademar R. Romeiro
    Abstract: Every production-recycling iteration accumulates an inevitable proportion of its matter-energy in the environment, lest the production process itself would be a system in perpetual motion, violating the second law of Thermodynamics. Such high-entropy matter depletes finite stocks of ecosystem services provided by the ecosphere, hence are incompatible with the long-term growth in the material scale of the economic process. Moreover, the complex natural systems governing such stocks respond to depletion by possibly sudden environmental transitions, thus hindering markets' very ability to adapt to the new equilibrium conditions. Consequently, uncertainty of critical resilience thresholds constrains material economic growth.
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1309.2274&r=ene
  22. By: Nicholas Rivers (Graduate School for Public and International Affairs, University of Ottawa, Ottawa, ON); Brandon Schaufele (Department of Economics and Institute of the Environment, University of Ottawa, Ottawa ON)
    Abstract: This study evaluates the implications of an actual carbon tax on the international competitiveness of the agricultural sector. Applying uniformly to all fossil fuels combusted within its borders, the province of British Columbia unilaterally introduced a carbon tax on July 1, 2008. Using commodity-specific trade flows and exploiting cross-provincial and inter-temporal variation, we find little evidence that the implementation of the carbon tax is associated with any meaningful effects on agricultural exports despite the sector being singled out as “at risk” by the provincial government. Allowing for heterogeneous responses by commodity, some statistically insignificant negative effects are shown for specific exports. Discussion of potential policy remedies to address the potential impacts of the tax on firm profitability and international competitiveness is also included.
    Keywords: Agricultural trade; British Columbia; carbon tax; competitiveness; unilateral climate policy.
    JEL: H23 Q17 Q5
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:ott:wpaper:1302e&r=ene
  23. By: Wojciech Kopczuk; Justin Marion; Erich Muehlegger; Joel Slemrod
    Abstract: The canonical theory of taxation holds that the incidence of a tax is independent of the side of the market which is responsible for remitting the tax to the government. However, this prediction does not survive in certain circumstances, for example when the ability to evade taxes differs across economic agents. In this paper, we estimate in the context of state diesel fuel taxes how the incidence of a quantity tax depends on the point of tax collection, where the level of the supply chain responsible for remitting the tax varies across states and over time. Our results indicate that moving the point of tax collection from the retail station to higher in the supply chain substantially raises the pass-through of diesel taxes to the retail price. Furthermore, tax revenues respond positively to collecting taxes from the distributor or prime supplier rather than from the retailer, suggesting that evasion is the likely explanation for the incidence result.
    JEL: H22 H26 H71 Q48
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19410&r=ene
  24. By: Holst, Gesa Sophie; Mußhoff, Oliver; Dörschner, Till
    Abstract: Die Maisanbaufläche in Deutschland ist in den vergangenen Jahren aufgrund der steigenden Anzahl Biogasanlagen und der guten Eigenschaften von Mais als Biogassubstrat stark ausgedehnt worden. Zur Begrenzung des Maisanbaus hat die Politik bereits Maßnahmen eingeleitet. Dazu zählt z.B. die Begrenzung des Maiseinsatzes in Biogasanlagen auf 60 Masseprozent und eine Förderung alternativer Biogassubstrate. Ein zurzeit viel diskutiertes Biogassubstrat sind spezielle Blühstreifenmischungen. Diese liefern eine hohe Methanausbeute je Hektar und weisen einen Zusatznutzen für die Umwelt auf. Mit einem Unternehmensplanspiel wird untersucht, ob Landwirte durch eine Belohnungs- und Bestrafungspolitik Blühstreifen in das Anbauprogramm aufnehmen. Die Ergebnisse zeigen, dass die Implementierung von Bestrafungs- und Belohnungspolitiken auf die Blühstreifenfläche eine anbaufördernde Wirkung hat. Außerdem zeigt sich, dass die Bestrafungspolitik eine stärkere verhaltenssteuernde Wirkung als die Belohnungspolitik hat, obwohl sich die Politikmaßnahmen nicht in ihrer Gewinnwirksamkeit unterscheiden. Des Weiteren weisen die Ergebnisse darauf hin, dass der Blühstreifenanbau durch soziodemografische Parameter in unterschiedlicher Weise beeinflusst wird.
    Keywords: Politikfolgenabschätzung, Blühstreifen, Experimentelle Ökonomik, Unternehmensplanspiele, Landwirtschaft, Environmental Economics and Policy, Resource /Energy Economics and Policy,
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:ags:gewi13:156114&r=ene

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