nep-ene New Economics Papers
on Energy Economics
Issue of 2015‒01‒14
28 papers chosen by
Roger Fouquet
London School of Economics

  1. Inferring Carbon Abatement Costs in Electricity Markets: A Revealed Preference Approach using the Shale Revolution By Joseph A. Cullen; Erin T. Mansur
  2. Abating CO2 emissions in the Greek energy and industry sectors By Halkos, George; Tzeremes, Nickolaos; Kourtzidis, Stavros
  3. How Much Energy Do Building Energy Codes Really Save? Evidence from California By Arik Levinson
  4. Greenhouse gas emissions and marginal abatement cost curves for the road transport in Greece By Halkos, George; Kevork, Ilias; Tziourtzioumis, Chris
  5. Determining the Success of Carbon Capture and Storage Projects By Dominique Thronicker; Ian Lange
  6. The merit-order effect in the Italian Power Market: the impact of solar and wind generation on national wholesale electricity prices By Alessandra Cataldi; Stefano Clò; Pietro Zoppoli
  7. Optimal Profits under Environmental Regulation: The Benefits from Emission Intensity Averaging By Hampf , Benjamin; Rødseth , Kenneth Løvold
  8. Canada – renewable energy: implications for WTO law on green and not-so-green subsidies By Steve Charnovitz; Carolyn Fischer
  9. Forecasting day ahead electricity spot prices: The impact of the EXAA to other European electricity markets By Florian Ziel; Rick Steinert; Sven Husmann
  10. Is the German Retail Gas Market Competitive? A Spatial-temporal Analysis Using Quantile Regression By Alexander Kihm; Nolan Ritter; Colin Vance
  11. The Macroeconomic Effects of Oil Price Fluctuations in ASEAN Countries: Analysis Using a VAR with Block Exogeneity By Vu, Tuan Khai; Nakata, Hayato
  12. What is the social value of second-generation biofuels ? By Hertel, Thomas W.; Steinbuks, Jevgenijs; Tyner, Wallace E.
  13. Enhancing flexibility and ensuring efficiency and security: Improving the electricity market in Brazil via a virtual reservoir model By Jean-Michel Glachant
  14. Перспективы и проблемы развития "зеленых" инвестиций в России By Yakovleva, Natalia
  15. Long- and short-run price asymmetries in the Italian energy market: the case of gasoline and heating gasoil By Alberto Bagnai; Christian Alexander Mongeau Ospina
  16. Inventor Networks in Renewable Energies: The Influence of the Policy Mix in Germany By Uwe Cantner; Holger Graf; Johannes Herrmann; Martin Kalthaus
  17. Greening Household Behaviour and Energy By Bengt Kriström; Chandra Kiran
  18. Investigating the impacts of technological position and European environmental regulation on green automotive patent activity By Nicolò Barbieri
  19. Greenhouse gas intensity of three main crops and implications for low-carbon agriculture in China By Wang, Wen; Guo, Liping; Li, Yingchun; Su, Man; Lin, Yuebin; De Perthuis, Christian; Ju, Xiaotang; Lin, Erda; Moran, Dominic
  20. Policy packages for modal shift and CO2 reduction in Lille, France By Hakim Hammadou; Claire Papaix
  21. Allocating shadow prices in a multiobjective chance constrained model By C. Caldeira; L. Dias; F. Freire; D. Kremmydas; S. Rozakis
  22. Taxing Fossil Fuels under Speculative Storage By Semih Tumen; Deren Unalmis; Ibrahim Unalmis; D. Filiz Unsal
  23. A note on the spot-forward no-arbitrage relations in an investment-production model for commodities By Ren\'e A\"id; Luciano Campi; Delphine Lautier
  24. Greening Household Behaviour: A review for Policy Makers By OECD
  25. Implicit Regulatory Barriers in the EU Single Market: New Empirical Evidence from Gravity Models By Jean-Marc Fournier; Aurore Domps; Yaëlle Gorin; Xavier Guillet; Délia Morchoisne
  26. Greening Household Behaviour: Cross-domain Comparisons in Environmental Attitudes and Behaviours Using Spatial Effects By Zachary Brown
  27. Technology & environment : some possible damaging effects of technological change in advanced and opulent societies By Coccia M.
  28. FDI and Economic Growth: The Role of Natural Resources By Arshad Hayat

  1. By: Joseph A. Cullen; Erin T. Mansur
    Abstract: This paper examines how much carbon emissions from the electricity industry would decrease in response to a carbon price. We show how both carbon prices and cheap natural gas reduce, in a nearly identical manner, the historic cost advantage of coal-fired power plants. The shale revolution has resulted in unprecedented variation in natural gas prices that we use to estimate the short-run price elasticity of abatement. Our estimates imply that a price of $10 ($60) per ton of carbon dioxide would reduce emissions by 4% (10%). Furthermore, carbon prices are much more effective at reducing emissions when natural gas prices are low. In contrast, modest carbon prices have negligible effects when gas prices are at levels seen prior to the shale revolution.
    JEL: Q4 Q5
    Date: 2014–12
  2. By: Halkos, George; Tzeremes, Nickolaos; Kourtzidis, Stavros
    Abstract: The purpose of this paper is to construct the abatement cost curve for the Greek Energy and Industry sectors. To achieve our goal we present and analyze the abatement options available in the sector of energy and in the industrial subsectors of petroleum and gas refinery, cement and iron and steel. Next, we estimate and present the costs and abatement potentials for each abatement option in each sector. We also present the cost-effective options for individual energy and industrial sources. Finally, the marginal abatement cost curve is constructed and the policy implications are discussed. Our analysis reveals a promising potential for pollution reduction and a wide range of cost-effective abatement options.
    Keywords: Abatement cost curve; air pollution; energy and industry sectors.
    JEL: Q42 Q52 Q53 Q54
    Date: 2014–12
  3. By: Arik Levinson
    Abstract: Construction codes that regulate the energy efficiency of new buildings have been a centerpiece of US environmental policy for 40 years. California enacted the nation’s first energy building codes in 1978, and they were projected to reduce residential energy use—and associated pollution—by 80 percent. How effective have the building codes been? I take three approaches to answering that question. First, I compare current electricity use by California homes of different vintages constructed under different standards, controlling for home size, local weather, and tenant characteristics. Second, I examine how electricity in California homes varies with outdoor temperatures for buildings of different vintages. And third, I compare electricity use for buildings of different vintages in California, which has stringent building energy codes, to electricity use for buildings of different vintages in other states. All three approaches yield the same answer: there is no evidence that homes constructed since California instituted its building energy codes use less electricity today than homes built before the codes came into effect.
    JEL: Q48
    Date: 2014–12
  4. By: Halkos, George; Kevork, Ilias; Tziourtzioumis, Chris
    Abstract: In the current technical report, we consider for the Greek road transport various policies of emission control for the period 2014-2030, and for the first time we estimate the related greenhouse gas emissions expressed in CO2 equivalent and the total costs. These policies result from the high penetration rate of the most recent Euro standards (e.g. Euro 5,6) to the fleet of various vehicle classifications which will be in circulation at the end of each year for the specific period. For each vehicle classification, the shares of vehicles with different technology standards result from the continuation of 2000-2013 trends regarding the number of vehicles adjusted according to a conservative scenario of GDP growth after 2014. The vehicle classifications are differentiated according to (a) engine capacity for passenger cars and motorcycles-mopeds and maximum weight for trucks and buses, and (b) type of fuel (gasoline, diesel, liquefied petroleum gas). To calculate the greenhouse gas emissions, we adopt the Tier 2 method, which uses for each vehicle classification the number of vehicles, the annual average mileage per vehicle and the emission factors of each pollutant. For the calculation of total cost we consider four elements: capital, operation, maintenance and fuel costs. Having available the reductions in CO2 emissions and the increases/decreases in the corresponding costs, marginal abatement cost curves are constructed first for specific vehicle classifications and second for general vehicle categories.
    Keywords: Transport sector; passenger cars; tier 2 method; abatement costs; emissions.
    JEL: C53 M21 Q50 Q53 Q54 Q58 R40
    Date: 2014–12
  5. By: Dominique Thronicker (Division of Economics, University of Stirling); Ian Lange (Division of Economics and Business, Colorado School of Mines)
    Abstract: Carbon Capture and Storage (CCS) is regarded as one of the most important technologies to mitigate climate change while providing fossil-fuel based energy security. During the past decade, projects in support of the development and deployment of the technology have been initiated across the globe. However, a considerable number of these projects have later been put on hold or cancelled. Currently, there is little understanding of what characteristics may have led to these undesirable outcomes. Using data on planned, cancelled and operational CCS projects to date, this paper aims to elicit technological, economic and policy characteristics that render CCS projects more or less likely to become operational. The results consistently find that confirmation of storage site and capture processes that are pre-combustion, industrial separation, or natural gas separation increase the probability of project success, while presence of a carbon policy and non-commercial storage of CO2 are negatively linked to project success.
    Keywords: Carbon Capture and Storage, Regression Analysis, Carbon Policy, Technological Change
    JEL: L51 Q5 H3
    Date: 2014–12
  6. By: Alessandra Cataldi; Stefano Clò; Pietro Zoppoli
    Abstract: Italy promoted one of the most generous renewable support schemes worldwide which resulted in a high increase of solar power generation. We analyze the Italian day-ahead wholesale electricity market, finding empirical evidence of the merit-order effect. Over the period 2005-2013 an increase of 1 GWh in the hourly average of daily production from solar and wind sources has, on average, reduced wholesale electricity prices by respectively 2.3 €/MWh and 4.2 €/MWh and has amplified their volatility. The impact on prices has decreased over time in correspondence with the increase in solar and wind electricity production. We estimate that, over the period 2009-2013, solar production has generated higher monetary savings than wind production, mainly because the former is more prominent than the latter. However, in the solar case, monetary savings are not sufficient to compensate the cost of the related supporting schemes which are entirely internalized within end-user tariffs, causing a reduction of the consumer surplus, while the opposite occurs in the case of wind.
    Keywords: Renewables, electricity price, merit-order effect, feed-in tariff, Italian wholesale power market
    JEL: Q41 Q42 Q48
    Date: 2014–12
  7. By: Hampf , Benjamin; Rødseth , Kenneth Løvold
    Abstract: In this paper we analyze the economic effects of implementing EPA’s newly proposed regulations for carbon dioxide (CO2) on existing U.S. coal-fired power plants using nonparametric methods on a sample of 144 electricity generating units. Moreover, we develop an approach for evaluating the economic gains from averaging emission intensities among the utilities’ generating units, compared to implementing unit-specific performance standards. Our results show that the implementation of flexible standards leads to up to 2.7 billion dollars larger profits compared to the uniform standards. Moreover, we find that by adopting best practices, current profits can be maintained even if an intensity standard of 0.88 tons of CO2 per MWh is implemented. However, our results also indicate a trade-off between environmental and profit gains, since aggregate CO2 emissions are higher with emission intensity averaging than with uniform standards.
    Keywords: JEL classification: D24, L50, Q54; Environmental regulation, profit maximization, emission intensity averaging, nonparametric effciency analysis
    Date: 2014–12–10
  8. By: Steve Charnovitz; Carolyn Fischer
    Abstract: In the first dispute on renewable energy to come to WTO dispute settlement, the domestic content requirement of Ontario’s feed-in tariff was challenged as a discriminatory investment-related measure and as a prohibited import substitution subsidy. The panel and Appellate Body agreed that Canada was violating the GATT and the TRIMS Agreement. But the SCM Article 3 claim by Japan and the European Union remains unadjudicated, because neither tribunal made a finding that the price guaranteed for electricity from renewable sources constitutes a ‘benefit’ pursuant to the SCM Agreement. Although the Appellate Body provides useful guidance to future panels on how the existence of a benefit could be calculated, the most noteworthy aspect of the new jurisprudence is the Appellate Body’s reasoning that delineating the proper market for ‘benefit’ analysis entails respect for the policy choices made by a government. Thus, in this dispute, the proper market is electricity produced only from wind and solar energy.
    Keywords: renewable energy, subsidies, environment, WTO, dispute settlement
    Date: 2014–12
  9. By: Florian Ziel; Rick Steinert; Sven Husmann
    Abstract: In our paper we analyze the relationship between the day-ahead electricity price of the Energy Exchange Austria (EXAA) and other day-ahead electricity prices in Europe. We focus on markets, which settle their prices after the EXAA, which enables traders to include the EXAA price into their calculations. For each market we employ econometric models to incorporate the EXAA price and compare them with their counterparts without the price of the Austrian exchange. By employing a forecasting study, we find that electricity price models can be improved when EXAA prices are considered.
    Date: 2015–01
  10. By: Alexander Kihm; Nolan Ritter; Colin Vance
    Abstract: We explore whether non-competitive pricing prevails in Germany’s retail gasoline market by examining the influence of the crude oil price on the retail gasoline price, focusing specifically on how this influence varies according to the brand and to the degree of competition in the vicinity of the station. Our analysis identifies several factors other than cost – including the absence of nearby competitors and regional market concentration – that play a significant role in mediating the influence of the oil price on the retail gas price, suggesting price setting power among stations.
    Keywords: Panel data; quantile regression; spatial competition; gasoline market
    JEL: C33 Q41 R41
    Date: 2014–12
  11. By: Vu, Tuan Khai; Nakata, Hayato
    Abstract: We use a VAR with block exogeneity to study the effects of oil price fluctuations on the economies of six ASEAN countries. Our method has an advantage over those used in the literature in that it allows us to focus on the effects of oil shocks while avoiding making unnecessary, and often ad hoc and unrealistic, assumptions about the structure of the economies under question. We decompose the factors that drive oil prices into oil supply shocks, oil demand shocks coming from the global real economic activity and oil-market specific demand shocks. We find that, in terms of output and price variabilities, the oil importing countries such as Singapore, Thailand and the Philippines are more sensitive to the situation in the world oil market than the oil exporting countries such as Indonesia, Malaysia. We find evidence that the monetary authorities of ASEAN countries have responded to changes in oil prices due to oil-market specific demand shocks. We also find that much of the surge in world market oil prices in 2007-2008 was mainly due to global aggregate demand shocks and oil-market specific shocks, and by working through oil prices these shocks were important factors that caused the high inflation in ASEAN countries in the first half of 2008.
    Keywords: oil price fluctuations, VAR, block exogeneity, ASEAN economies
    JEL: F41 Q43 F33
    Date: 2014–12
  12. By: Hertel, Thomas W.; Steinbuks, Jevgenijs; Tyner, Wallace E.
    Abstract: What is second-generation biofuel technology worth to global society? A dynamic, computable partial equilibrium model (called FABLE) is used to assess changes in global land use for crops, livestock, biofuels, forestry, and environmental services, as well as greenhouse gas emissions, with and without second-generation biofuels technology. The difference in the discounted stream of global valuations of land-based goods and services gives the value of second-generation technology to society. Under baseline conditions, this to amounts to $64.2 billion at today's population or an increase of roughly 0.3 percent in the valuation of the world's land resources. This gain arises despite the fact that, in the baseline scenario, the technology does not become commercially viable until 2035. Alternative scenarios considered include: diminished crop yield growth owing to adverse climate impacts, flat energy prices, low economic growth, and high population growth, as well as greenhouse gas regulation. The most important factor driving second-generation valuation is greenhouse gas regulation, which more than doubles the social value of this technology. Flat energy prices essentially eliminate the value of second-generation technology to society, and high population growth reduces its value because of the heightened competition for land for food production.
    Keywords: Environmental Economics&Policies,Climate Change Mitigation and Green House Gases,Climate Change Economics,Energy Production and Transportation,Energy and Environment
    Date: 2014–12–01
  13. By: Jean-Michel Glachant
    Abstract: The Brazilian electricity market has certain particularities that contribute to considerably distinguish it from other markets. With a continental interconnected transmission system in which around 70% of the total installed capacity comes from hydropower plants, this electricity market recently passed through two large institutional reforms and it currently contains a number special features together with other usual market instruments. Nevertheless, the conciliation between the commercial commitments of the market participants and the physical dispatch is not smooth. Moreover, the Brazilian short-term market is a mechanism to settle differences rather than a market, and the electricity short-term market price and the schedule dispatch are not determined through the interaction between market participants. This paper focuses on these problems, discusses some dilemmas that have to be faced if a more conventional market oriented approach is to be adopted, and proposes a solution in order to address these issues. Pointing towards the enhancing of the flexibility for market participants to bear their contracts, while still ensuring the efficient use of the energy resources and maintaining the current level of the security of supply, this new framework was designed based on a virtual reservoir model.
    Date: 2014–09–02
  14. By: Yakovleva, Natalia
    Abstract: The article describes the situation in the industry of the «green» technologies in the world, the perspectives of the development of the «green» investments in Russia, the main problems of implementation and use environmentally friendly technologies, and provides solutions to these problems.
    Keywords: «green» technologies, investment, «green» investments, environmental investments, alternative energy, renewable energy, innovations.
    JEL: Q57
    Date: 2014–12–23
  15. By: Alberto Bagnai (Department of Economics, Gabriele d'Annunzio University); Christian Alexander Mongeau Ospina (Italian Association for the Study of Economic Asymmetries)
    Abstract: Using monthly data from 1994 to 2012 we study the long-run relation between the pre-tax retail prices of petrol and heating gasoil with crude price and the nominal exchange rate. We find a strongly significant long-run relation. We then use the nonlinear ARDL (NARDL) model to assess the asymmetries on both the short- and long-run elasticities. The estimation results confirm the presence of a strong asymmetry in the long-run elasticities.
    Keywords: energy prices, asymmetric cointegration.
    JEL: C53 F32 H62
    Date: 2014–12
  16. By: Uwe Cantner (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Holger Graf (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Johannes Herrmann (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Martin Kalthaus (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: Technological change and gains in efficiency of renewable power generation technologies are to a large extent driven by governmental support. Various policies that can broadly be categorized as technology push, demand pull or systemic constitute a policy mix for renewable energies. Our goal is to gain insights on the influence of this policy mix on the intensity and organization of inventive activities within the technological innovation systems for wind power and photovoltaic in Germany since the 1980s. We examine the effect of different instruments on the size and structure of co-inventor networks based on patent data. Our results indicate notable differences between the technologies: The network size for wind power is driven by technology push and systemic instruments, while in photovoltaic demand pull is decisive for network growth. The instruments complement each other and form a consistent policy mix. The structure of the networks is driven by demand pull for both technologies. Systemic instruments increase interaction especially in the wind power network and are complementary to demand pull in fostering collaboration.
    Keywords: Renewable Energy, Inventor Network, Policy Mix, Systemic Instrument, Technology Push, Demand Pull
    JEL: Q42 Q55 L14 O38
    Date: 2014–12–23
  17. By: Bengt Kriström; Chandra Kiran
    Abstract: This report focuses on demand for renewable energy and energy efficiency. It presents the results of follow-up of econometric analysis of the 2011 OECD Survey on Environmental Policy and Individual Behaviour Change (EPIC). The report complements the overview of the survey data provided in the 2014 OECD publication “Greening Household Behaviour: Overview from the 2011 Survey”...<BR>Ce rapport porte sur la demande d’énergie renouvelable et d’efficacité énergétique. Il présente les résultats de travaux d’analyse économétrique qui s’inscrivent dans le prolongement de l’enquête sur la politique de l’environnement et le comportement individuel (EPIC) réalisée par l’OCDE en 2011. Ce rapport complète la synthèse des données de l’enquête présentée dans l’ouvrage « Vers des comportements plus environnementaux: vue d'ensemble de l'enquête 2011 », OCDE (2014).
    Date: 2014–12–16
  18. By: Nicolò Barbieri (University of Bologna, Italy; Ingenio CSIC-UPV, Valencia, Spain.)
    Abstract: Using patent data on 355 applicants patenting to the European patent offices from 1998 to 2010 on environmental road transport technologies, we investigate under what conditions the European environmental transport policy portfolio and the intrinsic characteristics of assignees’ knowledge boost worldwide green patent production. Our findings suggest that post-tax fuel prices, environmental vehicle taxes, CO2 standards and European emission standards, introduced in the empirical model through an innovative methodology based on Self-Organising Maps (SOM) (Kohonen, 1990; 2001), positively influence the creation of environmental inventions. Most importantly, we advocate that assignees anticipate the introduction of those emission standards, filing patents before the effective implementation of regulations when legislations are announced. Furthermore, we provide evidence that in a technological space (which measures the applicants’ technological proximity), closely located organisations enhance their patent output through the exploitation of technological knowledge produced by others. This means that the greater the proximity between assignees, the higher their likelihood of taking advantage of the knowledge produced by others. Finally, we observe that dynamic changes (both in quantity and in the number of technological fields engaged) in assignees’ patent portfolios spur inventive performances.
    Keywords: Environmental patents, environmental policies, Self-Organising Maps, road transport technologies, European emission standards, fuel prices
    JEL: O31 O38 Q55 L62
    Date: 2014–12
  19. By: Wang, Wen; Guo, Liping; Li, Yingchun; Su, Man; Lin, Yuebin; De Perthuis, Christian; Ju, Xiaotang; Lin, Erda; Moran, Dominic
    Abstract: China faces significant challenges in reconciling food security goals with the objective of becoming a low-carbon economy. Agriculture accounts for approximately 11 % of China’s national greenhouse gas (GHG) emissions with cereal production representing a large proportion (about 32 %) of agricultural emissions. Minimizing emissions per unit of product is a policy objective and we estimated the GHG intensities (GHGI) of rice, wheat and maize production in China from 1985 to 2010. Results show significant variations of GHGIs among Chinese provinces and regions. Relative to wheat and maize, GHGI of rice production is much higher owing to CH4 emissions, and is more closely related to yield levels. In general, the south and central has been the most carbon intensive region in rice production while the GHGI of wheat production is highest in north and northwest provinces. The southwest has been characterized by the highest maize GHGI but the lowest rice GHGI. Compared to the baseline scenario, a 2 % annual reduction in N inputs, combined with improved water management in rice paddies, would mitigate 17 % of total GHG emissions from cereal production in 2020 while sustaining the required yield increase to ensure food security. Better management practices will entail additional gains in soil organic carbon further decreasing GHGI. To realize the full mitigation potential while maximizing agriculture development, the design of appropriate policies should accommodate local conditions.
    Keywords: food security; low-carbon agriculture; greenhouse gas intensity; China;
    JEL: Q15 Q24 Q54 Q18
    Date: 2015
  20. By: Hakim Hammadou; Claire Papaix
    Abstract: This paper proposes a second-best approach to cutting CO2 emissions caused by the urban mobility of passengers. We develop policy scenarios that compare the first-best tool of carbon tax, to a combination of second-best tools, not originally aimed at reducing CO2 (i.e. congestion charging, parking charges, and public transport services). We study their efficiency in attaining a CO2 target, through a change in the modal split. In our model, modal choices depend on individual characteristics, journey features (including the effects of policy tools), and land use at origin and destination zones. Personal “CO2 emissions budgets” resulting from the journeys observed in the metropolitan area of Lille (France) in 2006 are calculated and compared to the situation related to the different policy scenarios. We find that an increase of 50% in parking charges combined with a cordon toll of €1.20 and a 10% travel time decrease in public transport services (made after recycling toll-revenues) is the winning scenario. The combined effects of all the policy scenarios are superior to their separate effects.
    Keywords: CO2, urban mobility, second-best instruments, cost-efficiency, mode choice model.
    Date: 2014
  21. By: C. Caldeira (Department of Mechanical Engineering, Faculty of Sciences and Technology, University of Coimbra, Portugal); L. Dias (Faculty of Economics, University of Coimbra, Portugal); F. Freire (Department of Mechanical Engineering, Faculty of Sciences and Technology, University of Coimbra, Portugal); D. Kremmydas (Department of Agricultural Economics and Rural Development, Agricultural University of Athens); S. Rozakis (Department of Agricultural Economics and Rural Development, Agricultural University of Athens)
    Abstract: Biodiesel production sustainability relates to decision making on blending involving economic and environmental criteria. Several feedstocks candidate in European countries biodiesel industry, namely different vegetable origin oils. The present research aims at assessing the impact of technological constraints allocated to the decision objectives taking into account inherent uncertainty. For this purpose chance?constrained programming is used in order to maintain tolerance towards fuel quality.
    Keywords: Biodiesel blends, Uncertainty, Chance constrained programming, Shadow prices, Multiobjective programming, GHG emissions
    JEL: C61 Q29 Q42
    Date: 2014
  22. By: Semih Tumen; Deren Unalmis; Ibrahim Unalmis; D. Filiz Unsal
    Abstract: This paper investigates the mechanisms through which environmental taxes on fossil fuel usage can affect the main macroeconomic variables in the short-run. We concentrate on a particular mechanism: speculative storage. The existence of forward-looking speculators in the model improves the effectiveness of tax policies in reducing fossil fuel usage. Improved policy effectiveness, however, is costly: it drives inflation and interest rates up, while impeding output. Based on this tradeoff, we seek an answer to the question how monetary policy should interact with environmental tax policies in our DSGE model of fossil fuel storage.
    Keywords: Fossil fuels;Environmental taxes;Tax policy;General equilibrium models;Fossil fuel; environmental taxes; speculative storage; DSGE
    Date: 2014–12–18
  23. By: Ren\'e A\"id; Luciano Campi; Delphine Lautier
    Abstract: Because of storability constraints, standard no-arbitrage arguments cannot be safely applied in markets of commodities such as energy. In this paper, we propose an alternative approach to justify the convergence of forward towards spot prices as time-to-maturity goes to zero. We show that the classical no-arbitrage relationship between spot and forward prices holds through the well-posedness of an expected profit maximization problem for an agent producing and storing a commodity while trading in forward contracts. A consequence of this is that the forward price of energy can be seen as risk-neutral expectation of the spot price at maturity. Moreover, we obtain an explicit formula for the forward volatility and provide a heuristic analysis of the optimal solution for the production/storage/investment problem in a Markovian setting.
    Date: 2015–01
  24. By: OECD
    Abstract: Personal behaviour and choices in daily life, from what we eat to how we get to work or heat our homes, have a significant – and growing – effect on the environment. But why are some households greener than others? And what factors motivate green household choices? <P>Answering these questions is vital for helping governments design and target policies that promote “greener” behaviour. The OECD’s Environmental Policy and Individual Behaviour Change (EPIC) survey is designed to do just that. This large-scale household survey explores what drives household environmental behaviour and how policies may affect household decisions. It focuses on five areas in which households have significant environmental impact: energy, food, transport, waste and water. This policy paper is based on the second round of the EPIC survey, carried out in 2011 (the first was in 2008). The survey collected information from more than 12 000 households in Australia, Canada, Chile, France, Israel, Japan, Korea, the Netherlands, Spain, Sweden and Switzerland.
    Date: 2014–12–17
  25. By: Jean-Marc Fournier; Aurore Domps; Yaëlle Gorin; Xavier Guillet; Délia Morchoisne
    Abstract: Gravity models are used to explore the determinants of trade, making use of fixed effect linear estimators and a Poisson estimator (as in Santos Silva and Tenreyro, 2006) with fixed effects. Beyond usual determinants of trade such as GDP, distance, contiguity, free trade areas and language, this analysis mainly focuses on the role of product market regulation stringency and heterogeneity, and on the role of employment protection. The Single Market has a large positive impact on trade. A broad reform package that would align Product Market Regulation (PMR) indicators to the average of the top half of the best performers and would cut regulatory heterogeneity by one fifth could increase trade intensity within the EU by more than 10%. This analysis also makes use of subcomponents of the PMR indicator (by field of regulation) and the OECD Energy, Transport and Communications Regulation (ETCR) indicator (by sector) to focus on elements on the regulatory issues that matter most for trade. In particular, the stringency of airline and telecom regulations has an adverse effect on trade intensity. Empirical findings on the impact of employment protection legislation on trade intensity are somewhat mixed. This Working Paper relates to the 2014 OECD Economic Survey of the European Union (<P>Barrières réglementaires implicites dans le marché unique de l'UE : Nouveaux résultats de modèles de gravité<BR>Les modèles de gravité sont utilisés pour explorer les déterminants du commerce, avec des estimateurs linéaires avec effets fixes et un estimateur de Poisson (comme dans Santos Silva et Tenreyro, 2006) avec des effets fixes. Au-delà des déterminants habituels du commerce tels que le PIB, la distance, la contiguïté, les zones de libre-échange et la langue, cette analyse se concentre principalement sur le rôle de la réglementation des marchés de produits et de son hétérogénéité, et sur le rôle de la protection de l'emploi. Le marché unique a un impact positif important sur le commerce. Un ensemble large de réformes qui alignerait les indicateurs de réglementation des marchés de produits (RMP) à la moyenne de la moitié des pays les plus performants et qui réduirait l'hétérogénéité des réglementations par un cinquième pourrait augmenter l'intensité des échanges au sein de l'UE de plus de 10%. Cette analyse utilise également des sous-composantes de l’indicateur RMP (par domaines de réglementation) et de l’indicateur OCDE de la réglementation dans les secteurs de l'énergie, des transports et des communications (ETCR) (par secteur) pour se concentrer sur les éléments de réglementation qui comptent le plus pour le commerce. En particulier, la rigueur de la réglementation aérienne et des télécommunications a un effet négatif sur l'intensité des échanges. Les résultats empiriques sur l'impact de la législation de protection de l'emploi sur l'intensité des échanges sont quelque peu mitigés. Ce Document de travail a trait à l’Étude économique de l’OCDE de l’Union européenne, 2014 ( ique-union-europeenne.htm).
    Keywords: product market regulation, trade, gravity model, EU single market, marché unique de l’UE, réglementation des marchés de produits, commerce, modèle de gravité
    JEL: F10 F14 F15 K20
    Date: 2015–01–05
  26. By: Zachary Brown
    Abstract: Discussions of the importance of public attitudes in shaping policy often lack clear evidence on causal relations between stated attitudes and observed behaviours. The 2011 OECD Survey of over 12,000 households allows analysing households’ environmental attitudes and behaviours in five different domains (electricity, food, transport, waste and water). Using econometric analysis, we investigate the relationship between stated environmental attitudes and indicators of civic engagement, such as voting in local elections, charity membership and membership in environmental organisations...<BR>La réflexion sur le rôle des attitudes du public dans l’élaboration des politiques manque souvent d’éléments probants au sujet du lien de causalité existant entre les attitudes déclarées et les comportements observés. L’enquête réalisée par l’OCDE en 2011 auprès de plus de 12 000 ménages permet d’analyser leurs attitudes et comportements environnementaux dans cinq domaines distincts (électricité, alimentation, transports, déchets et eau). Sur la base d’une analyse économétrique, on étudie ce qui lie les attitudes environnementales déclarées à différentes formes d’engagement civique, telles que voter aux élections locales, s’impliquer au sein d’une oeuvre caritative et être membre d’une association de défense de l’environnement.
    Keywords: household survey, behavioural economics, GIS, environmental attitudes, civic engagement, engagement civique, enquête auprès des ménages, attitudes envers l'environnement, SIG, économie comportementale
    JEL: C51 D10 D11 D12 D64 D71 H89 Q50 Q58
    Date: 2014–12–10
  27. By: Coccia M. (UNU-MERIT)
    Abstract: An interesting problem is the analysis of effects of the predominant impact of technological change on the health of societies. This study considers technological change as the human activity that generates a huge impact on societies and causes environmental disorders affecting the health of population. In particular, technical innovations support the industrialisation and human development, which by a social change based on population growth, mass production and consumption, and resources depletion, engenders pollution and several environmental carcinogens. This study shows that a main effect of the critical impact of technological change on societies is the high cancer incidence of population living in industrialised areas of opulent and advanced countries. Vital empirical evidence and linkages between observed facts endeavour to explain the major relationships concerning the interactions among technology, ecosystems and the health of societies.
    Keywords: Health and Economic Development; Technological Change: Choices and Consequences; Diffusion Processes; Environment and Growth; Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling;
    JEL: O33 O44 I15 Q53
    Date: 2014
  28. By: Arshad Hayat (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic)
    Abstract: In the paper, I explored links between inflow of FDI, natural resource abundance and economic growth. The paper is an attempt to analyze a lager sample of 106 countries and investigate the impact of FDI inflow on the economic growth of the host country. Further, natural resource abundance is considered to slow down the economic growth. The paper explores if the natural resource abundance affect the FDI-growth relationship. Using panel data for a sample the period 1993-2012, the paper uses fixed effects model and conclude that FDI inflow accelerates economic growth of the host country. However, the presence of natural resources slows down the FDI induced growth. The same results hold after controlling for endogeneity.
    Keywords: Foreign Direct Investment, Economic Growth, Natural Resources, Resource Curse, Hausman Test
    JEL: F23 F43 O4 Q0
    Date: 2014–12

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