|
on Energy Economics |
| By: | A. Denny Ellerman |
| Abstract: | Incentives for the development of renewable energy have increasingly become an instrument of climate policy, that is, as a means to reduce GHG emissions. This research analyzes the German experience in promoting renewable energy over the past decade to identify the ex-post cost of reducing CO2 emissions in the power sector through the promotion of renewable energy, specifically, wind and solar. A carbon surcharge and an implicit carbon price due to the renewable energy incentives for the years 2006-2010 are calculated. The carbon surcharge is the ratio of the net cost of the renewable energy over the CO2 emission reductions resulting from actual renewable energy injections. The net cost is the sum of the costs and cost savings due to these injections into the electric power system. The implicit carbon price is the sum of the carbon surcharge and the EUA price and it can be seen as a measure of the CO2 abatement efficiency of the renewable energy incentives. Results show that both the carbon surcharge and he implicit carbon price of wind are relatively low, on the order of tens of euro per tonne of O2, while the same measures for solar are very high, on the order of hundreds of euro per tonne of CO2. |
| Date: | 2014–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:erp:euirsc:p0376&r=ene |
| By: | Geraldine Henningsen (Department of Management Engineering, Technical University of Denmark); Arne Henningsen (Department of Food and Resource Economics, University of Copenhagen); Sascha T. Schröder (Department of Management Engineering, Technical University of Denmark); Simon Bolwig (Department of Management Engineering, Technical University of Denmark) |
| Abstract: | The Danish “Klima 2020” plan sets an ambitious target for the complete phasing-out of fossil fuels by 2050. The Danish energy sector currently accounts for 40% of national CO2 emissions. Based on an extended Farrell input distance function that accounts for CO2 as an undesirable output, we estimate the environmental productivity of individual generator units based on a panel data set for the period 1998 to 2011 that includes virtually all fuel-fired generator units in Denmark. We further decompose total productivity into technical efficiency, best practice ratio, and scale efficiency and use a global Malmquist index to calculate the yearly changes. By applying time series clustering, we can identify high, middle, and low performance groups of generator units in a dynamic setting. Our results indicate that the sectoral productivity only slightly increased over the fourteen years. Furthermore, we find that there is no overall high achiever group, but that the ranking, although time consistent, varies between the different productivity measures. However, we identify steam turbines and combustion engines for combined heat and power production as potential high performers, while combustion engines that only produce electricity are clearly low performers. |
| Keywords: | Environmental productivity, energy sector, productivity analysis, CO2 mitigation, renewable energy, transition |
| JEL: | C50 D22 D24 O30 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2014_04&r=ene |
| By: | Radoslaw Stefanski |
| Abstract: | I develop a unique database of international fossil-fuel subsidies by examining country-specific patterns in carbon emission-to-GDP ratios, known as emission-intensities. For most - but not all - countries, intensities tend to be hump-shaped with income. I construct a model of structural-transformation that generates this hump-shaped intensity and then show that deviations from this pattern must be driven by distortions to sectoral-productivity and/or fossil-fuel prices. Finally, I use the calibrated model to measure these distortions for 170 countries for 1980-2010. This methodology reveals that fossil-fuel price-distortions are large, increasing and often hidden. Furthermore, they are major contributors to higher carbon-emissions and lower GDP |
| Keywords: | fossil-fuel, hump-shaped, carbon-emissions, GDP, international fossil-fuel subsidies, |
| JEL: | O13 O4 Q4 Q5 H2 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:134&r=ene |
| By: | Wei, Wenjie |
| Abstract: | A two-country, three-good general equilibrium model is developed to examine the welfare and environmental effects for countries (North and South) of demand subsidies (a feed-in tariff) to renewable energy equipment, as well as tariffs on renewable energy equipment imports. Both North and South renewable energy equipment producers engage in Cournot duopoly competition with a homogeneous product in both countries. Both countries also produce polluting fossilfuel- generated electricity and a numeraire good. We show, inter alia, that an endogenous Northern import tariff is increasing in (independent of) a Northern (Southern) feed-in tariff premium, even if the North government does not internalize any pollution harm. A Northern feed-in tariff premium may hurt domestic environment due to a rebound effect and it may also hurt Southern welfare.1 |
| Keywords: | Renewable energy equipment, Environmental goods, Environmental subsidies, Trade and environment, Feed-in tariff, Pollution, North-South Trade , International Relations/Trade, Resource /Energy Economics and Policy, F12, F18, H23, Q58, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare14:165887&r=ene |
| By: | Gerard van der Meijden; Frederick van der Ploeg; Cees Withagen |
| Abstract: | In partial equilibrium a rapidly rising carbon tax encourages oil producers to extract fossil fuels more quickly, giving rise to the Green Paradox. General equilibrium analysis for a closed economy shows that a rapidly rising carbon tax negatively affects the interest rate, which tends to weaken the Green Paradox. However, in a two-country world with an oil-importing and an oil-exporting region the Green Paradox may be amplified in general equilibrium if exporters are relatively patient. On the contrary, if oil exporters are relatively impatient, the Green Paradox might be reversed. Furthermore, general equilibrium effects tend to weaken the link between a capital asset tax and the time profile of resource extraction so that the capital asset tax becomes less useful as an instrument to offset the Green Paradox effect associated with the announcement of a future carbon tax. Taking exploration costs into account, we show that the effect of both policy instruments on cumulative extraction is of opposite sign as the effect on current extraction. Moreover, if the change in current extraction is amplified or reversed in general equilibrium, so will be the change in cumulative extraction. |
| Keywords: | Green Paradox, Hotelling rule, oil importers, oil producers, investment, capital markets, carbon tax, asset holding tax |
| JEL: | D81 H20 Q31 Q38 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:130&r=ene |
| By: | Ma, Chunbo; Burton, Michael |
| Abstract: | Green electricity products are increasingly made available to consumers in many countries in an effort to address a number of environmental and social concerns. Most of the existing literature on this green electricity market focuses on consumer's characteristics and product attributes that could affect participation. However, the contribution of this environmental consumerism to the overall environmental good does not depend on participation alone. The real impact made relies on market penetration for green consumers (the proportion of green consumers) combined with the level of green consumption intensity-the commitment levels, or proportion of consumption that is green. We design an online interface that closely mimics the real market environment for electricity consumers in Western Australia and use an error component model to analyze consumers' choice of green electricity products is much more strongly influenced by consumer characteristics than product attributes. When green products are selected, the vast majority select the minimum commitment possible, and this is insensitive to the premium being charged on green power, suggesting that we are largely observing a "warm glow" for carbon mitigation. |
| Keywords: | Green Electricity, Choice Modeling, Error Components Model, Warm Glow, Environmental Economics and Policy, Resource /Energy Economics and Policy, D11, Q42, Q51, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare14:165858&r=ene |
| By: | Raúl Alberto Jiménez; Jorge Enrique Mercado Díaz |
| Abstract: | This paper investigates trends in energy intensity in Latin American countries over the last 40 years. It applies the Fisher Ideal Index to decompose the energy intensity into the relative contributions of energy efficiency and the activity mix, and then analyzes the determinants of these energy indexes through panel data regression techniques. Finally, the paper compares the performance of Latin American countries to that of a similar set of countries chosen through the synthetic control method. The authors find that the energy intensity in Latin American countries has decreased about 20 percent, closing the gap with respect to its synthetic counterfactual. In both Latin American countries and its synthetic control, efficiency improvements drive these changes, while the activity mix component does not represent a clear source of change. The regression analysis shows that per capita income, petroleum prices, fuel-energy mix, and GDP growth are main determinants of energy intensity and efficiency, while there are no clear correlations with the activity component. |
| Keywords: | Energy policy, Energy efficiency, energy intensity; energy policy; synthetic control |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:82018&r=ene |
| By: | KARGI, Bilal |
| Abstract: | In this study, the analysis was that the capacity of creating inflation depends on oil prices as the one of energy types that is a major input of aggregate output which becomes a source of economic growth with increasing in costs. The aggregate output is also a function of energy that is the one of production inputs. Moreover, energy is an imported by several countries because it is acquired from the limited sources around the world. It causes inflation of importing countries to exporting countries through oil prices. At the same time, the rises of oil prices causes inflation because it increases the product costs. The second argument is that the increasing of aggregate output is generally affected by energy use, and is privately affected by oil use. In that case, oil import is both efficient on inflation and on growth. Tested hypothesis in the study is that oil prices have an inflationary effect because of its effect on costs, and is that this activity will negatively affect the growth because of its effect on expectations. In this study, the effects of the crude oil import of Turkey for inflation and growth are analysed over the long term. The committed analyses show that GDP was affected by oil imports, and it also caused inflation in the Turkish economy. |
| Keywords: | Oil Import, Inflation, Economic Growth |
| JEL: | C32 E31 Q43 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55704&r=ene |
| By: | Pellen, Alistair |
| Keywords: | Consumer/Household Economics, Resource /Energy Economics and Policy, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare14:165870&r=ene |
| By: | Ahdi Noomen Ajmi; Ghassen El Montasser; Duc Khuong Nguyen |
| Abstract: | Knowing the real causal links between energy consumption and national |
| Keywords: | energy consumption; GDP; nonlinear causality |
| Date: | 2014–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-299&r=ene |
| By: | Cullen, Ross |
| Abstract: | Oil and gas have been produced on the Norwegian continental shelf since 1971. Exploration rates, extraction rates, employment, expertise levels, exports of oil and gas have all increased many fold during 1971-‐2013. The State has several roles in the Norwegian petroleum sector including basic research provider, allocator of exploration rights, investor, infrastructure owner, taxation collector, Sovereign Wealth Fund owner. In this paper I review the development of the petroleum sector in Norway, and highlight the various roles of the State in the development of the sector. The paper provides an overview of the macroeconomic importance of oil and gas in the Norwegian economy and critiques selected petroleum related policies. |
| Keywords: | petroleum sector, oil and gas, Norway, State roles, policy, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q32, Q38, Q43, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare14:165816&r=ene |
| By: | KARGI, Bilal |
| Abstract: | Energy and especially electricity consumption is a variable that can be also considered as the indication of the social development as far as economic growth is concerned. Energy, as the input of the industry and other production branches, is an indication for the production increase; and also for consumption with regards to raising the living standards of the consumers. In literature with its situation, it is argued that the electricity consumption is included the mutual causality relation with the growth data in a long-term. As there are several empirical studies that support this hypothesis, in some economies, especially it may sometimes be concluded that the data of the energy utilization in the production area can negatively affect growth in the long-term. Therefore, the literature does not come to the agreed results for the relation between these two variables. In this study, the causality relations have been analyzed by dividing the electricity consumption into three categories; residential, industrial and others, based on the data of the Turkish economy. In the lights of the obtained findings, it is concluded that in long term, there is at most one long-term co-integrating vector between GDP and electricity consumed in residential and industrial areas and also two-way causality relation between GDP and electricity consumed in these sectors. In this case, electricity consumption can be considered as an indicator for both growth and social development. |
| Keywords: | economic growth, electricity consumption, industrial consumption, residential consumption |
| JEL: | C22 O40 Q43 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55699&r=ene |
| By: | Gonand, Frédéric |
| Abstract: | A rising share of renewables in the energy mix push es up the average price of energy - and so does a carbon tax. However the former bolsters the accumulation of capital whereas the latter, if fully recycled, does not. Thus, in general equilibrium, the effects on growth and intertemporal welfare of these two environmental po licies differ. The present article assesses and compares these effects. It relies on a computable general equilibrium model with overlapping generations, an energy module and a pub lic finance module. The main result is that an increasing share of renewables in the energy mix and a fully recycled carbon tax have opposite (though limited) impacts on activity and i ndividuals’ intertemporal welfare in the long run. The recycling of a carbon tax fosters consumption and labour supply, and thus growth and welfare, whereas an increasing share of renewables does not. Results also suggest that a higher share of renewables and a recycled carbon tax trigger intergenerational redistributive effects, with the former being relat ively detrimental for young generations and the latter being pro-youth. The policy implication is that a social planner seeking to modify the structure of the energy mix while achieving some ne utrality as concerns the GDP and triggering some proyouth intergenerational equity, could usefully contemplate the joint implementation of higher quantitative targets for the future development of renewables and a carbon tax fully recycled through lower proportional taxes. |
| Keywords: | Energy transition; intergenerational redistribution; overlapping generations; carbon tax; general equilibrium; |
| JEL: | D58 D63 E62 L7 Q28 Q43 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:dau:papers:123456789/13361&r=ene |
| By: | Brock Smith |
| Abstract: | This paper examines the impact of the oil price boom in the 1970s and the subsequent bust on non-oil economic activity in oil-dependent countries. During the boom, manufacturing value added and exports increased significantly relative to non-oil dependent countries, along with wages, employment and investment. These measures decreased, though to a lesser extent, during the bust, displaying a positive relationship with oil prices In contrast with the Dutch Disease model, exportable manufacturing sectors grew faster than non-exportable ones. However, exports of non-hydrocarbon natural resources and agricultural products displayed a strongly negative relationship to prices. The results suggest a push towards industrialization induced by the oil revenue windfall. |
| Keywords: | Dutch disease, oil price boom, non-oil dependent countries, non-hydrocarbon natural resources, oil revenue windfall |
| JEL: | Q3 Q4 Q54 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:133&r=ene |
| By: | Wei Jin; ZhongXiang Zhang |
| Abstract: | As a useful complement to numerous innovation policy studies from a normative perspective, this paper provides a positive framework to analyze the basic economic mechanism of energy technological innovation and explain its slow pace of technological progress. We find that the capital-intensiveness of energy technology is an inhibiting factor to catalyze market size effect and slows innovations and diffusions of energy technology in the market. We also show that the substantial homogeneity of energy products leads to both a monopolistic market structure on the supply side and a weak level of positive pecuniary externality on the demand side, both dampening the incentive of innovation. On the basis of our economic analysis, we recommend that a package of policy responses to accelerating energy innovation should include 1) downsizing â"heavy" assets of energy technologies; 2) deregulating monopolistic energy-supplying markets; and 3) differentiating the homogenous energy products. |
| Keywords: | The Economics of Technological Innovation, Market Size Effect, Love-for-variety effect, Energy Technology, IT Technology |
| JEL: | Q55 Q58 Q43 Q48 O31 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1401&r=ene |
| By: | Jiranyakul, Komain |
| Abstract: | The main objective of this paper is to examine the relationship between energy use, exports, and imports in Thailand. The annual data from 1979 to 2012 are employed. The results from bounds testing for cointegration reveal that energy use is the main determinant of exports and imports. The results from short-run dynamics indicate that there is long-run causality running from energy use to exports and imports. Policy implication based upon the results of this study is that energy policy should be designed so as to generate sufficient energy for production in the exported and energy-intensive imported goods. |
| Keywords: | Energy use, exports, imports, cointegration, causality |
| JEL: | C22 Q43 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55984&r=ene |
| By: | Rodriguez-Oreggia, Eduardo; Yepez-Garcia, Rigoberto Ariel |
| Abstract: | The analysis of household energy consumption patterns is critical for evaluating public mechanisms, such as subsidies and social tariffs that aim to provide lower income earners with better access to energy sources. This paper focuses on Mexican households to analyze the relations between their levels of income, consumption of different forms of energy, and the role played by different household characteristics. Using microdata from the Mexican Income Expenditure Surveys, the paper first relate income and energy expenditure to determine the shape of this relation. It then applies OLS and Tobit models to determine how income levels affect energy consumption in relation to other covariates. The results show a positive relation for income deciles and energy consumption and some household characteristics -- pointing to differentiated mechanisms for improving energy use. |
| Keywords: | Energy Production and Transportation,Environment and Energy Efficiency,Energy and Environment,Transport and Environment,Energy Demand |
| Date: | 2014–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6864&r=ene |
| By: | Ahdi Noomen Ajmi; Ghassen El Montasser; Duc Khuong Nguyen |
| Abstract: | This article revisits the C02 emissions-GDF causal relationships in the Middle East |
| Keywords: | income, CO2 emissions, robust causality. |
| Date: | 2014–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-296&r=ene |
| By: | Dr. Kirsten S. Wiebe (GWS - Institute of Economic Structures Research); Dr. Christian Lutz (GWS - Institute of Economic Structures Research) |
| Abstract: | In Germany, the large growth in renewable power generation (RPG) capacities in the past has been mainly due to demand supporting policy measures (demand pull). Globally, increasing deployment also is accelerated by strongly decreasing costs of these technologies. Deployment, on the other hand leads to cost decreases via scale effects and this interdependence can be captured in learning curves, which is a concept used to model technological change. Using this concept it is possible to – at least partly – endogenize technological change in economic models. Introducing endogenous technological change is necessary to adequately analyse not only the direct effects of technological change, but also the indirect effects on important macro-economic indicators such as growth, employment, welfare and trade as well as their feedback to the electricity sector. In this paper a renewable power generation module for the INFORUM type econometric input-output models (see Eurostat, 2008, for more details) such as GINFORS (Lutz & Wiebe, 2012) and PANTA RHEI (Lehr et al., 2012) is developed. This is a first step to endogenize technological change in the model. Wind (onshore) and PV generation technologies have been selected for further analysis. Their representation in the model is based on learning curves, which may, among other factors, depend on capacity installed, investment, R&D. We test both one factor and two factor learning curves (Wiesenthal et al., 2012) with learning rates estimated from the data and compared to existing studies. This RPG extension of the econometric input-output model will contribute to a better understanding of the interaction between the deployment of renewable energy technologies and macro-economic indicators such as employment, GDP and sectoral production. The learning curves reflect both learning-by-doing and learning-by-searching. All of these factors develop endogenously in the model, but may also be influenced by policy measures. This approach contributes to endogenously determining the national investments in RPG technologies, electricity generation costs and global feedback loops of national policy measures (incl. export of policy measures) on RE investment and electricity production costs. |
| Keywords: | Deployment, endogenous technological change, renewable power generation, econometric input-output model |
| JEL: | C51 O30 Q41 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:gws:dpaper:13-7&r=ene |
| By: | Mohammadi, Teymour; Jahangard, Fateme; Khani Hoolari, Seyed Morteza |
| Abstract: | This research investigated the effective economic growth determinants using a panel data set over the period 1995 to 2010 in oil-rich countries divided by the level of democracy into two groups: countries with low and high democracy. The result of OLS method rejects the curse hypothesis; however, TSLS method reveals the reserves of oil endowment has a negative effect on economic growth of low democracy countries and the curse hypothesis is approved. |
| Keywords: | Resource curse, Economic growth, Reserves of oil endowment, Panel data set |
| JEL: | O13 P28 Q43 |
| Date: | 2014–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56092&r=ene |
| By: | Hackbarth, André (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | In the light of European energy efficiency and clean air legislations, as well as an ambitious electric mobility goal of the German government, we examine consumer preferences for alternative fuel vehicles (AFVs), based on a Germany-wide discrete choice experiment among 711 potential car buyers. We estimate consumers’ willingness-to-pay (WTP) and contingent variation (CV) for improvements in vehicle purchase price, fuel cost, driving range, refueling infrastructure, CO2 emissions and governmental monetary and non-monetary incentives, hereby accounting for diminishing marginal returns for some of the attributes and taking taste differences in the population into account by applying a latent class model with 6 distinct consumer segments. Our results indicate that almost 36% of the consumers are open-minded towards at least one AFV option, with 15% being AFV-affine insomuch that they show a high probability of choosing AFVs despite their current shortcomings. Our results suggest that German car buyers’ WTP for improvements of the various vehicle attributes varies considerably across consumer segments and that the vehicle features have to meet some minimum requirements so that AFVs are shortlisted. Furthermore, the CV values show that decision-makers in the administration and industry should focus on the most promising consumer group of ‘AFV aficionados’ and their needs, that some vehicle attribute improvements could increase AFV demand rather cost-effectively, and that consumers would accept surcharges for some vehicle attributes at a level, which could enable their economic provision and operation (e.g. fast-charging infrastructure), while others might need governmental subsidies to substitute the insufficient consumer WTP (e.g. battery capacity). |
| Keywords: | Discrete choice; Stated preferences; Latent class model; Alternative fuel vehicles; Germany; Electric mobility; Willingness-to-pay; Contingent variation |
| JEL: | C25 D12 M38 Q58 R48 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2013_020&r=ene |
| By: | Csereklyei, Z. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare14:165825&r=ene |
| By: | Phiri, Andrew; Nyoni, Botha |
| Abstract: | This study undertakes an examination of asymmetric adjustment effects between electricity consumption and economic growth in South Africa using quarterly data collected from 1983Q1 to 2013:Q4. In our study, we employ a momentum-threshold co-integration method to examine the long-run equilibrium relationship between electricity consumption and economic growth. Our empirical results reveal significant nonlinear co-integration behavior between the time series variables with uni-directional causality running from electricity consumption to economic growth and no causal effects in the short-run. This implies that energy authorities in South Africa should avoid implementing conservative electricity policies as this may hamper long-run economic growth. We further extend our empirical analysis by decomposing the time series into their trend and cyclical components and our estimations also depict stronger nonlinear behavior among the de-trended components with bi-directional causality existing between the variables in both the short and long-run. Generally, our study highlights that co-integration and causal effects between electricity usage and output growth is related with the business cycle. Therefore, ignoring the cyclical components of the variables could prove to be quite costly for South African policymakers. |
| Keywords: | Electricity consumption; Economic growth; Threshold co-integration; Nonlinear granger causality; South Africa |
| JEL: | C32 C51 Q43 |
| Date: | 2014–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56145&r=ene |
| By: | Zhu, Liangxu |
| Keywords: | Environmental Economics and Policy, Marketing, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare14:165892&r=ene |
| By: | Yildiz, Özgür; Rommel, Jens; Debor, Sarah; Holstenkamp, Lars; Mey, Franziska; Müller, Jakob R.; Radtke, Jörg; Rognli, Judith |
| Abstract: | Transformation of energy systems is influencing economic policy agendas all over the world, particularly so in industrialized countries. In this process, Germany has taken a pioneering role. Technical innovations, institutional frameworks, and business models established there are of interest for other countries trying to achieve broader use of renewable energies. Energy cooperatives have been an important building block of the energy transition in Germany, though their practical importance is neither quantitatively nor qualitatively reflected in the academic literature. Drawing on recently collected data, this paper presents an overview of German energy cooperatives in terms of their (1) organization, (2) membership, and (3) financing. We then review theories from economics and the social sciences that, on various levels, have been used to analyze cooperatives in other fields or other forms of community-driven organization. We discuss how these theories could be applied for a better understanding of energy cooperatives, derive a preliminary research agenda and assess the scope for interdisciplinary work among economists, sociologists, and other related disciplines. |
| Keywords: | Business models; Decentralization; Energy cooperatives; Energy transition; |
| JEL: | D23 L22 L32 L94 Q42 |
| Date: | 2014–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55931&r=ene |
| By: | Paul Collier; Anthony J Venables |
| Abstract: | Climate policy requires that much of the world’s reserves of fossil fuels remain unburned. This paper makes the case for implementing this directly through policy to close the global coal industry. Coal is singled out because of its high emissions intensity, low rents per unit value, local environmental costs and sheer scale. Direct supply policy – such as the sequenced closure of countries’ coal mines – may lead to less policy leakage (across countries and time) than other policies based on demand or price management. It also has the advantage of involving relatively few players and leading to clear-cut and observable outcomes. It is therefore better able to create the moral force needed to mobilize the collective international action that is required. |
| Keywords: | climate change, coal, cap and trade, supply policy |
| JEL: | Q3 Q4 Q54 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:132&r=ene |
| By: | Joachim Schleich (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM), ISI - Fraunhofer Institute for Systems and Innovation Research - a Fraunhofer Institute for Systems and Innovation Research); Bradford Mills (Virginia Polytechnic Institute and State University [Blacksburg] - Virginia Polytechnic Institute and State University); Elisabeth Dütschke (ISI - Fraunhofer Institute for Systems and Innovation Research - a Fraunhofer Institute for Systems and Innovation Research) |
| Abstract: | Abstract: This paper quantifies the direct rebound effects associated with the switch from incandescent lamps (ILs) or halogen bulbs to more energy efficient compact fluorescent lamps (CFLs) or light emitting diodes (LEDs) using a large nationally representative survey of German households. The direct rebound effect is measured as the elasticity of useful lighting demand with respect to changes in energy efficient lamps. In particular, the rebound effect is decomposed into changes in lamp luminosity and burn time. On average, more efficient replace-ment bulbs are 23% brighter and burn about 6.5 minutes per day longer than replaced bulbs. For the most frequent (modal) bulb switch, i.e. the replacement of the main bulb in the living or dining room, luminosity increases by 10% and burn time increases by 9 minutes per day. For the average bulb, the associated total direct rebound effect is estimated at 6.3%. The larger part (around 60%) of this rebound effect results from increases in bulb luminosity. For the modal bulb the total direct rebound effect is smaller at 2.6%, with around 60% attributable to an increase in burn time. Average and modal bulb differences suggest that the magnitude to the rebound effect may decrease with intensity of initial bulb use. The magnitude of the direct rebound and the relative contributions of changes in luminosity and burn time also tend to differ by initial bulb type and by replacement bulb type. Finally, about a third of the bulb switches entail a nega-tive rebound effect, i.e. energy savings are larger than expected if luminosity and burn time remained unchanged, highlighting significant heterogeneity in household responses to the adoption of energy efficient bulbs. |
| Keywords: | rebound effect; lighting; energy efficiency; energy demand |
| Date: | 2014–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemwpa:hal-00991732&r=ene |
| By: | Philip D. Adams; Brian R. Parmenter; George Verikios |
| Abstract: | Computable general equilibrium modelling in Australia is oriented towards providing inputs to the policy-formation process, a process that requires detail. We explain how the necessary level of detail can be provided using analysis of the potential economic impacts of a carbon price on the Australian economy that operates as part of a global emissions trading scheme. The global scheme sets the price and allocation of permits across countries. We find that domestic abatement falls well short of targeted abatement, Australia's GDP is 1.1% lower relative to the basecase, and some industries and regions are vulnerable to employment losses. |
| Keywords: | carbon pricing, computable general equilibrium modelling, emissions trading |
| JEL: | C68 Q52 Q58 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-243&r=ene |
| By: | Kwok Ping Tsang; Gregory S. Amacher; Olli-Pekka Kuuselaa |
| Abstract: | Tradable permit markets for carbon dioxide (C02) emissions respond to short-run fluctuations in economic activity. To provide stability, both price and quantity interventions have been proposed. This paper focuses on the relative performance of fixed versus intensity allowances in the presence of both productivity and energy price uncertainty. Both instruments achieve the same steady-state emissions reduction target of 20 percent, which is similar to the current policy proposals, and the regulator then chooses the allowance policy that has the lowest expected abatement cost. A standard real business cycle (RBC) model is used to solve for the expected abatement cost under both policies. Expected cost outcomes are compared using data from the U. S. economy as the baseline scenario. Unlike previous studies, this paper's results show that, under a reasonable model calibration, fixed allowances outperform intensity allowances by a cost difference of as much as 30 percent. |
| Keywords: | Climate Finance, Productivity, IDB-WP-450 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:83016&r=ene |
| By: | Robert J R Elliott; Puyang Sun; Tong Zhu |
| Abstract: | In March 2014 China announced its long awaited plan for managing the migration of the rural population into already overcrowded urban areas. The so called "new style" of urbanization has potentially important implications for China's energy use although the relationship between urbanization and energy intensity is not straight-forward. In this paper we investigate the impact of urbanization and industrialization on the intensity of energy use in China using a balanced panel of 29 provinces for the period 1997 to 2010. Our empirical approach is to use three alternative measures of urbanization and employ augmented mean group (AMG) estimators to allow for heterogeneity in the estimation of the slope coefficients and cross sectional dependence. We demonstrate that the impact of urbanization on energy intensity is sensitive to the econometric modelling approach. Our preferred AMG results show, in contrast to earlier studies, that for this time period urbanization appears to have little or no short or long run impact on energy intensity athough in further results we find that urbanization does appear to have a negative impact on energy intensity in the more developed east but a sometimes positive effect for the western and central regions. Our results suggest that China's recent policy to encourage greater urbanization may not necessarily lead to a significant increase in province level energy intensities but nor will it lead to some of the energy efficiency gains some expect. |
| Keywords: | Energy intensity, Income per capita, Industrialization, Urbanization |
| JEL: | Q43 R11 O14 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:bir:birmec:14-05&r=ene |
| By: | Anjum, Zeba; Burke, Paul J.; Gerlagh, Reyer; Stern, David I. |
| Abstract: | The long-run average growth rates of per capita carbon dioxide emissions and GDP per capita are positively correlated, though the rate of emissions intensity reduction varies widely across countries. The conventional approach to investigating these relationships involves panel regression models of the levels of the variables, which are plagued by unit root and cointegration issues as well as the difficulty of identifying time effects. In this paper, we adopt a new representation of the data in terms of long-run growth rates, which allows us to test multiple hypotheses about the drivers of per capita emissions of pollutants in a single framework. It avoids the econometric issues associated with previous approaches and allows us to exploit the differences in growth performance across countries. We also apply our new approach to sulfur emissions. The results show that scale, environmental Kuznets, convergence, and, for sulfur, time effects are important in explaining emissions growth. Though the elasticity of emissions with respect to income declines with increased income, for carbon the effect of growth is monotonic. For sulfur, most of our specifications find an in sample turning point, but for our preferred specification the turning point is three times mean income. We also found that the Green Solow Model convergence effect is more important than GDP growth or the EKC effect in explaining sulfur emissions but that the latter is true for carbon emissions. |
| Keywords: | Economic growth, environmental Kuznets curve, decoupling, Environmental Economics and Policy, Q56, O44, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare14:165876&r=ene |
| By: | Dietz, Simon; Matei, Anca N. |
| Abstract: | Economic evaluation of climate policy is notoriously dependent on assumptions about time and risk preferences, since reducing greenhouse gas emissions today has a highly uncertain payoff, far into the future. These assumptions have always been much debated. Rather than occupy a position in this debate, we take a non-parametric approach here, based on the concept of Time-Stochastic Dominance. Using an integrated assessment model, we apply Time-Stochastic Dominance analysis to climate change, asking are there global emissions abatement targets that everyone who shares a broad class of time and risk preferences would agree to prefer? Overall we find that even tough emissions targets would be chosen by almost everyone, barring those with arguably `extreme' preferences. |
| Keywords: | almost stochastic dominance, climate change, discounting, integrated assessment, risk aversion, stochastic dominance, time dominance, time-stochastic dominance, Environmental Economics and Policy, Q54, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare14:165822&r=ene |
| By: | Mohajan, Haradhan |
| Abstract: | During the last 30 years Chinese economy has increased rapidly. The pollution of air in many Chinese cities exceeds both national and international standards due to rapid urbanization, industrialization and increased energy consumption. At present China becomes the highest sulphur dioxide emitter in the world due to its reliance on coal for energy generation. The Government of China has taken different steps to reduce sulphur dioxide and succeeded from the 11th Five-Year Plan. Breathing in sulphur dioxide can irritate the nose, throat and the lungs, causing phlegm, coughing, shortness of breath, development of bronchitis and other respiratory diseases, as well as aggravation of existing cardiovascular disease. Long-term contact to sulphur dioxide at lower concentrations can cause temporary loss of smell, headache, nausea and dizziness. In this paper an attempt has been taken to discuss sulphur dioxide emissions of China and stresses on desulphurization processes. |
| Keywords: | SO2 control policy, Human health, Acid rain, Desulphurization. |
| JEL: | I15 |
| Date: | 2014–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55953&r=ene |
| By: | Nazir, Sidra; Qayyum, Abdul |
| Abstract: | Oil is becoming the most prominent indicator of economic growth in Pakistan with increase of its demand. Also oil prices are doing their main contribution to impact the GDP of Pakistan including different shock dummies in data. In this study, Cobb-Douglas production function has used to construct model by introducing total oil consumption and Pakistan’s oil price variable to investigate the impact on GDP. ADF (1979), Johansen Maximum Likelihood method of cointegration (1988) and Granger causality test by applying restriction on dynamic model are used to test the order of integration, Long run and short run dynamics and causal relationship between variable using annual data since 1972-2011 in context of Pakistan. Through examining the results the long run and dynamic relationship has detected for all the variables except total and oil price variables for model has no short run impact on GDP. Oil prices impacting real GDP negatively in long run but positively in short run (Rasmussen and Roitman, 2011). There is evidence of causality between Oil consumption (including sectors) and economic growth. |
| Keywords: | Oil Prices, Oil Consumption of Pakistan, Oil Shocks, Economic Growth Cointegration, Error Correction Model |
| JEL: | C1 C13 O40 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55929&r=ene |
| By: | Rangga Handika; Chi Truong; Stefan Trueck; Rafal Weron |
| Abstract: | We examine the impact of explanatory variables such as load, weather and capacity constraints on the occurrence and magnitude of price spikes in regional Australian electricity markets. We apply the so-called Heckman correction, a two-stage estimation procedure that allows us to investigate the impact of the considered variables on extreme price observations only, while correcting for a selection bias due to non-random sampling in the analysis. The framework is applied to four regional electricity markets in Australia and it is found that for these markets, load, relative air temperature and reserve margins are significant variables for the occurrence of price spikes, while electricity loads and relative air temperature are significant variables to impact on the magnitude of a price spike. The Heckman selection model is also found to outperform standard OLS regression models with respect to forecasting the magnitude of electricity price spikes. |
| Keywords: | Electricity markets, Price spikes, Selection bias, Inverse Mills ratio, Heckman selection model |
| JEL: | C22 C51 C53 Q41 Q47 |
| Date: | 2014–05–16 |
| URL: | http://d.repec.org/n?u=RePEc:wuu:wpaper:hsc1408&r=ene |
| By: | Sahbi Farhani; Sana Mrizak; Anissa Chaibi; Christophe Rault |
| Abstract: | In recent years, sustainability has represented one of the most important policy goals explored in the environmental Kuznets curve (EKC) literature. But related hypotheses, performance measures and results continue to present a challenge. The present paper contributes to this ongoing literature by studying two different EKC specifications for 10 Middle East and North African (MENA) countries over the period 1990–2010 using panel data methods. For the first specification, namely EKC, we show that there is an inverted U- shape relationship between environmental degradation and income; while for the second specification, namely modified EKC (MEKC), we show that there is an inverted U-shape relationship between sustainability and human development (HD). The relationships are shaped by other factors such as energy, trade, manufacture added value and the role of law. More interestingly, findings from the estimation show that EKC hypothesis, HD and sustainability are crucial to build effective environmental policies. |
| Keywords: | Environmental Kuznets Curve; Sustainability; Panel data analysis. |
| Date: | 2014–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-300&r=ene |
| By: | Agneta Forslund; Alexandre Gohin; Chantal Le Mouël; Fabrice Levert |
| Abstract: | Available estimates of biofuel-induced land use change (LUC) and corresponding greenhouse gas (GHG) emissions vary on a wide range while estimations obtained from each model are highly sensitive to certain assumptions and key parameter values. Available studies often suggest that biodiesel and ethanol and/or EU and US biofuels would lead to different LUC and GHG emissions but they don’t agree on the type and/or the origin of the biofuel which would induce the least LUC and GHG emissions. In this paper we investigate the reasons behind this feature. We show that the Armington modeling of trade flows, which is currently used in models, contributes to this pattern. Using both observed data and the partial equilibrium model MATSIM-LUCA, we show that LUC stemming from the development of biofuels is highly dependent on assumptions made on trade: the Integrated World Market (IWM) approach, which relies on the homogenous product assumption, tends to erase differences in estimates of induced LUC from biodiesel and ethanol and from EU and US biofuels as compared to the Armington approach, that postulates that product are differentiated according to their origin and thus less substitutable. |
| Keywords: | biofuel, LUC, model, Armington |
| JEL: | Q11 Q15 Q17 Q48 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:rae:wpaper:201404&r=ene |
| By: | Rafal Weron |
| Abstract: | A variety of methods and ideas have been tried for electricity price forecasting (EPF) over the last 15 years, with varying degrees of success. This review article aims at explaining the complexity of available solutions, their strengths and weaknesses, and the opportunities and treats that the forecasting tools offer or that may be encountered. The paper also looks ahead and speculates on the directions EPF will or should take in the next decade or so. In particular, it postulates the need for objective comparative EPF studies involving (i) the same datasets, (ii) the same robust error evaluation procedures and (iii) statistical testing of the significance of the outperformance of one model by another. |
| Keywords: | Electricity price forecasting, Day-ahead market, Seasonality, Autoregression, Neural network, Factor model, Forecasts combination, Probabilistic forecast |
| JEL: | C22 C24 C38 C53 Q47 |
| Date: | 2014–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:wuu:wpaper:hsc1407&r=ene |
| By: | Halkos, George; Paizanos, Epameinondas |
| Abstract: | This paper examines the effect of economic growth and government spending on the environment using a panel of 71 countries for the time period 1970-2008. In particular, we test the hypothesis of the existence of an inverted U-shaped relationship between economic performance and pollution, as well as the hypothesis of a negative direct relationship between fiscal spending and pollution. To take into account that environmental degradation may respond to changes in income and government spending with a time lag, due to technological and institutional reasons, we apply appropriate dynamic econometric methods. We report the estimates for both the short-run and long-run effects on two different air pollutants, namely SO2 and CO2, distinguishing the results for different levels of economic development. Policy implications range depending on the level of income of the considered countries. |
| Keywords: | Government expenditure; economic growth; environment; dynamics. |
| JEL: | E60 H50 Q53 Q54 Q56 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56084&r=ene |
| By: | Yue-Hua Dai (ECUST); Wen-Jie Xie (ECUST); Zhi-Qiang Jiang (ECUST); George J. Jiang (WSU); Wei-Xing Zhou (ECUST) |
| Abstract: | This article investigates the correlation structure of the global crude oil market using the daily returns of 71 oil price time series across the world from 1992 to 2012. We identify from the correlation matrix six clusters of time series exhibiting evident geographical traits, which supports Weiner's (1991) regionalization hypothesis of the global oil market. We find that intra-cluster pairs of time series are highly correlated while inter-cluster pairs have relatively low correlations. Principal component analysis shows that most eigenvalues of the correlation matrix locate outside the prediction of the random matrix theory and these deviating eigenvalues and their corresponding eigenvectors contain rich economic information. Specifically, the largest eigenvalue reflects a collective effect of the global market, other four largest eigenvalues possess a partitioning function to distinguish the six clusters, and the smallest eigenvalues highlight the pairs of time series with the largest correlation coefficients. We construct an index of the global oil market based on the eigenfortfolio of the largest eigenvalue, which evolves similarly as the average price time series and has better performance than the benchmark $1/N$ portfolio under the buy-and-hold strategy. |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1405.5000&r=ene |
| By: | Sebastián J. Miller; Sebastián Galiani; Omar O. Chisari |
| Abstract: | This paper compares the optimal dynamic choices between policies of mitigation and adaptation for three economies: Brazil, Chile and the United States. The focus is on the optimal role of mitigation and adaptation for "environmentally small economies", i. e. , economies that are witnessing an exogenous increase in emissions to which they are contributing very little. The simulations lead to three main conclusions. First, small economies should concentrate their environmental efforts, if any, on adaptation. This is not a recommendation that such economies indulge in free-riding. Instead, it is based on considerations of cost effectiveness, ceteris paribus. Second, small economies that are unable to spend enough on adaptation may end up spending less on mitigation owing to their impoverishment as a result of negative climate shocks. Third, higher mitigation expenditures may arise not only as a result of greater optimal adaptation expenditures, but also because of increased adaptation to the incentives for mitigation provided by richer countries. |
| Keywords: | Environmental Policy, Climate Change, adaptation policies, IDB-WP-417 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:83017&r=ene |
| By: | Regnier Camille; Sophie Legras |
| Abstract: | The objective of this paper is to analyze policy design for air pollution management in the spatial context of urban development. We base our analysis on the paper of Ogawa and Fujita (1982), which offers a proper theoretical framework of non-monocentric urban land use using static microeconomic theory where the city structure is endogenous. First, we show that when households internalize industrial pollution in their residential location choice, spatialization within the city is reinforced. This impacts directly the emissions of greenhouse gases from commuting. Then, we analyze policy instruments in order to achieve optimal land use pattern when the policy maker has to manage both industrial and commuting related polluting emissions, that interact through the land market. |
| Keywords: | Environmental externalities, Land use pattern, Air pollution |
| JEL: | Q53 D62 R14 |
| Date: | 2014–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:ceo:wpaper:48&r=ene |
| By: | Ghisetti, Claudia; Quatraro, Francesco (University of Turin) |
| Abstract: | This paper provides empirical investigation of the effects of environmental innovations (EIs)on environmental performances, as proxied by the environmental productivity (EP) measure. We focused on sectoral environmental productivity of Italian Regions by exploiting the Regional Accounting Matrix including Environmental Accounts (Regional NAMEA). Patent applications have been extracted by the Patstat Database and assigned to the environmental domain by adopting three international classifications of green technologies:the WIPO IPC green inventory, the European Patent Office climate change mitigation technologies classification (Y02) and the OECD ENV-Tech indicators. Econometric results outline that regions -sectors characterized by higher levels of green technologies (GTs) are actually those facing better environmental performance. These positive effects directlys tem from the introduction of GT in the same sector, as well as from the introduction of GT in vertically related sectors. |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201404&r=ene |
| By: | Michel Damian (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I) |
| Abstract: | Le climat ne semble pas au plus haut de l'agenda du gouvernement français et de sa diplomatie. C'est pourtant le Président François Hollande qui a proposé, en septembre 2012, que la réunion censée conclure un nouvel accord global sur le climat se tienne à Paris en décembre 2015. Les Etats-Unis, eux, ont déjà soumis - premier pays à l'avoir fait - leurs propositions clés pour la conférence. Tout reste à négocier. Les grandes orientations de l'accord qui devrait être signé à Paris sont cependant déjà connues : 1) pas d'accord international contraignant, mais seulement des " politiques nationales ", 2) pas d'engagement des Etats, mais seulement des " contributions " et, 3) fin de l'approche à deux vitesses ("bifurcated approach", selon les termes de la proposition américaine) de feu le Protocole de Kyoto, où seuls les pays développés s'étaient engagés, avec les résultats que l'on sait, à réduire leurs émissions. Cette fois, des contributions volontaires, de nature variable, sont attendues de la plupart des pays, y compris émergents et en développement. Mais les objectifs concrets de réduction des émissions de gaz à effet de serre que l'on peut déjà anticiper ne produiront pas, hélas, de miracle en matière de stabilisation des émissions. Pour qu'un compromis soit acceptable par le plus grand nombre, et sauvegarde la solidarité avec les pays et communautés les plus vulnérables, il y faudrait au minimum une diplomatie active bien en amont de décembre 2015. |
| Keywords: | CHANGEMENT CLIMATIQUE ; ACCORD INTERNATIONAL ; COP21 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00990907&r=ene |
| By: | Sebastián J. Miller; Mauricio A. Vela |
| Abstract: | In addition to the morbidity and mortality concerns of outdoor air pollution, studies have shown that air pollution also generates problems for children`s cognitive performance and human capital formation. High concentrations of pollutants can affect children`s learning process by exacerbating respiratory illnesses, fatigue, absenteeism and attention problems. The purpose of this work is to analyze the possible contemporary effects of PM10 and other different air pollutants on standardized test scores in Chile. It examines results for 3,880 schools in the Metropolitan, Valparaiso and O'Higgins regions for children in fourth, eight and tenth grades between 1997 and 2012. Data for particulate matter (PM10 and PM2. 5), carbon monoxide (CO), nitrogen oxide (NOx) and ozone (O3) were interpolated at school level using a kriging methodology. The results suggest that higher annual P M10 and O3 levels are clearly associated with a reduction in test scores. Nonetheless, as of 2012 many municipalities in these Chilean regions are still exceeding the annual P M10 international standard quality norm (50 micrograms per cubic meter) by 15 micrograms per cubic meter on average. Efforts to reduce pollution below this norm in the most polluted municipalities would account for improvements in reading and math test scores of 3.5 percent and 3.1 percent of a standard deviation, respectively. |
| Keywords: | Environmental Policy, Pollution, Educational Assessment |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:83094&r=ene |
| By: | Joschka Gerigk (Institute for Environmental Decisions, ETH Zurich); Ian A. MacKenzie (School of Economics, The University of Queensland); Markus Ohndorf (Institute for Environmental Decisions, ETH Zurich) |
| Abstract: | The conventional economic argument favors the use of market-based instruments over ‘command-and-control’ regulation. This viewpoint, however, is often limited in the description and characteristics of the latter; namely, environmental standards are often portrayed as lacking structured abatement incentives. Yet contemporary forms of command-and-control regulation, such as standards stipulated via benchmarking, have the potential to be efficient. We provide a first formal analysis of environmental standards based on performance benchmarks. We show, in a variety of contexts, that standards can provide efficient incentives to improve environmental performance. |
| Date: | 2014–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:519&r=ene |
| By: | Sjak Smulders; Michael Toman; Cees Withagen |
| Abstract: | The relatively new and still amorphous concept of "Green Growth" can be understood as a call for balancing longer-term investments in sustaining environmental wealth with nearer-term income growth to reduce poverty. We draw on a large body of economic theory available for providing insights on such balancing of income growth and environmental sustainability. We show that there is a no a priori assurance of substantial positive spillovers from environmental policies to income growth, or for a monotonic transition to a "green steady state" along an optimal path. The greenness of an optimal growth path can depend heavily on initial conditions, with a variety of different adjustments occurring concurrently along an optiaml path. Factor-augmenting technical change targeting at offsetting resource depletion is critical to sustaining long-term growth within natural limits on the availability of natural resources and environmental services. |
| Keywords: | growth, environment, natural resources, innovatoin, R&D spillovers, sustainable development, natural capital |
| JEL: | O1 O3 O4 Q2 Q3 Q4 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:135&r=ene |
| By: | Malina, Christiane; Fischer, Frauke |
| Abstract: | A common policy for reducing particulate matter concentrations in the European Union is the introduction of Low Emission Zones (LEZs), which may only be entered by vehicles meeting predefined emission standards. This paper examines the effectiveness of LEZs for reducing PM10 levels in urban areas in Germany and quantifies the associated health impacts from reduced air pollution within the zones. We employ a fixed effects panel data model for daily observations of PM10 concentrations from 2000 to 2009 and control, inter alia, for local meteorological conditions and traffic volume. We apply the regression outputs to a concentration response function derived from the epidemiological literature to calculate associated health impacts of the introduction of LEZs in 25 German cities with a population of 3.96 Mio. Associated uncertainties are accounted for in Monte-Carlo simulations. It is found that the introduction of LEZs has significantly reduced inner city PM10 levels. We estimate the total mean health impact from reduced air pollution in 2010 due to the introduction of stage 1 zones to be ~700 Mio. EUR in the 25 LEZ-cities in the sample, whereas total mean health benefits are ~2.4 Billion EUR for the more stringent stage 2 zones when applied to the same cities. -- |
| Keywords: | Environmental policy,Germany,low emission zones,road transport,particulate matter,health effects |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:68&r=ene |