nep-ene New Economics Papers
on Energy Economics
Issue of 2015‒06‒27
forty-two papers chosen by
Roger Fouquet
London School of Economics

  1. Do improved biomass cookstoves reduce fuelwood consumption and carbon emissions ? evidence from rural Ethiopia using a randomized treatment trial with electronic monitoring By Beyene,Abebe; Bluffstone,Randy; Gebreegzhiaber,Zenebe; Martinsson,Peter; Mekonnen,Alemu; Vieider,Ferdinand
  2. Cross-border electricity cooperation in South Asia By Singh,Anoop; Jamasb,Tooraj; Nepal,Rabindra; Toman,Michael A.
  3. China?s Carbon Emissions Report 2015 By Zhu Liu
  4. Environmental Benefits from Driving Electric Vehicles? By Stephen P. Holland; Erin T. Mansur; Nicholas Z. Muller; Andrew J. Yates
  5. Economic Incentives for Carbon Dioxide Storage under Uncertainty: A Real Options Analysis By Daiju Narita; Gernot Klepper
  6. An Economy-Wide Evaluation of New Power Generation in South Africa: The Case of Kusile and Medupi By J. A.Bohlmann., H. R. Bohlmann, and R. Inglesi-Lotz
  7. Do energy natural endowments matter? New Zealand and Uruguay in a comparative approach (1870-1940) By Reto Bertoni; Henry Willebald
  8. Determinants of Residential end-use electricity demand: Evidence from Sweden By Vesterberg, Mattias; Kiran B. Krishnamurthy, Chandra; Bayrak, Oben
  9. Climate policy: Steps to China's carbon peak By Zhu Liu; Dabo Guan; Moore, Scott; Henry Lee; Su, Jun; Qiang Zhang
  10. Quantitative effects of the shale oil revolution By Galo Nuño; Cristiana Belu Manescu
  11. Islamic versus conventional stock market and its co-movement with crude oil: a wavelet analysis By Kamarudin, Eka Azrin; Masih, Mansur
  12. A dynamic conduct parameter model of electricity marketer pricing behavior in the California power exchange By Carol A. Dahl; Tyler Hodge
  13. Identifying Business Models for Photovoltaic Systems with Storage in the Italian Market: A Discrete Choice Experiment By Galassi, Veronica; Madlener, Reinhard
  14. Sustainable energy for Development: Access to finance on renewable energy and energy efficiency technologies for Bangladesh By Kundu, Nobinkhor
  15. A quarter century effort yet to come of age : a survey of power sector reforms in developing countries By Jamasb,Tooraj; Nepal,Rabindra; Timilsina,Govinda R.
  16. A Study on the Factors Impacting Managers’ Green IT Perceptions By Serkan Ada; Sümeyra Ceyhan
  17. Pushing the Tipping in International Environmental Agreements By Lorenzo Cerda Planas
  18. Self-Protection Investment Exacerbates Air Pollution Exposure Inequality in Urban China By Siqi Zheng; Cong Sun; Matthew E. Kahn
  19. The socioeconomic impacts of energy reform in Tunisia : a simulation approach By Cuesta Leiva,Jose Antonio; El Lahga,Abdelrahmen; Lara Ibarra,Gabriel
  20. Equitable and effective climate policy: Integrating less developed countries into a global climate agreement By Lucas Bretschger; Alexandra Vinogradova
  21. How Natural Disasters Can Affect Environmental Concerns, Risk Aversion, and Even Politics: Evidence from Fukushima and Three European Countries By Jan Goebel; Christian Krekel; Tim Tiefenbach; Nicolas R. Ziebarth
  22. Green Cities? Urbanization, Trade and the Environment By Borck, Rainald; Pflüger, Michael P.
  23. Is Global Gasoline Demand Still as Responsive to Price? By Nasser Al Dossary; Carol A. Dahl
  24. Oil and macroeconomic (in)stability By Hilde C. Bjørnland; Vergard H. Larsen
  25. The international transfer of wind power technology to Brazil and China By Gandenberger, Carsten; Unger, Daniel; Strauch, Manuel; Bodenheimer, Miriam
  26. Cournot Competition and “Green” Innovation: An Inverted-U Relationship By Luca Lambertini; Joanna Poyago-Theotoky; Alessandro Tampieri
  27. Commodity prices and fiscal policy design: Procyclical despite a rule By Hilde C. Bjørnland; Leif Anders Thorsrud
  28. Identifying and inducing breakthrough inventions: An application related to climate change mitigation By Florian Egli; Nick Johnstone; Carlo Menon
  29. Energy subsidies reform in Jordan : welfare implications of different scenarios By Atamanov,Aziz; Jellema,Jon Robbert; Serajuddin,Umar
  30. Labor Market Distortions and Welfare-Decreasing International Emissions Trading By Shiro Takeda; Toshi H. Arimura; Makoto Sugino
  31. What do we learn from public good games about voluntary climate action? Evidence from an artefactual field experiment By Goeschl, Timo; Kettner, Sara Elisa; Lohse, Johannes; Schwieren, Christiane
  32. Joint Design of Emission Tax and Trading Systems By Caillaud, Bernard; Demange, Gabrielle
  33. Macro and micro level impulse responses: A survey experimental identification procedure By Dirk Drechsel; Heiner Mikosch; Samad Sarferaz; Matthias Bannert
  34. Braving the Tempest: Methodological foundations of policy-making in sustainability transitions By J. -F. Mercure; H. Pollitt; A. M. Bassi; J. E Vi\~nuales; N. R. Edwards
  35. Privatization and Nationalization Cycles By Roberto Chang; Constantino Hevia; Norman Loayza
  36. Meta-Granger causality testing By Stephan B. Bruns; David I. Stern
  37. Before ratification: understanding the timing of international treaty effects on domestic policies By Leonardo Baccini; Johannes Urpelainen
  38. The Role of the 2015 Agreement in Mobilising Climate Finance By Takayoshi Kato; Jane Ellis; Christa Clapp
  39. Comparing Nuclear Power Trajectories inGermany And the UK: From ‘Regimes’ to ‘Democracies’ in Sociotechnical Transitions and Discontinuities By Phil Johnstone; Andy Stirling
  40. The Use of Patent Statistics for International Comparisons and Analysis of Narrow Technological Fields By Ivan Haščič; Jérôme Silva; Nick Johnstone
  41. Understanding the demand for REDD+ credits By Tim Laing; Luca Taschini; Charles Palmer; Johanna Wehkamp; Sabine Fuss; Wolf Heinrich Reuter
  42. Die Auswirkungen des Klimawandels auf die Energiewirtschaft: Welche Folgen hat die Er-wärmung auf die Energieerzeugung und –verteilung? By Loreto Bieritz

  1. By: Beyene,Abebe; Bluffstone,Randy; Gebreegzhiaber,Zenebe; Martinsson,Peter; Mekonnen,Alemu; Vieider,Ferdinand
    Abstract: This paper uses a randomized experimental design with real-time electronic stove temperature measurements and controlled cooking tests to estimate the fuelwood and carbon dioxide savings from an improved cookstove program in the process of being implemented in rural Ethiopia. Knowing more about how households interact with improved cookstoves is important, because cooking uses a majority of the fuelwood in the country and therefore is an important determinant of greenhouse gas emissions and indoor air pollution. Creating local networks among stove users generally appears to increase fuelwood savings, and among monetary treatments the most robust positive effects come from free distribution. The paper estimates that on average one improved stove saves approximately 634 kilograms of fuelwood per year or about 0.94 tons of carbon dioxide equivalent per year, which is about half of previous estimates. Using the May 2015 California auction price of $13.39/ton, the carbon sequestration from each stove deployed is worth about $12.59. Such carbon market offset revenues would be sufficient to cover the cost of the stove within one year.
    Keywords: Oil Refining&Gas Industry,Urban Environment,Energy Production and Transportation,Energy Conservation&Efficiency,Climate Change Mitigation and Green House Gases
    Date: 2015–06–22
  2. By: Singh,Anoop; Jamasb,Tooraj; Nepal,Rabindra; Toman,Michael A.
    Abstract: South Asian countries, facing challenges in efficiently meeting growing electricity demand, can benefit from increased cross-border electricity cooperation and trade by harnessing complementarities in electricity demand patterns, diversity in resource endowments for power generation, and gains from larger market access. The region has witnessed slow progress in expanding regional electricity cooperation and trade, and undertaking needed domestic sector reforms. Although bilateral electricity sector cooperation in the region is increasing, broader regional cooperation and trade initiatives have lagged in the face of regional barriers and domestic sector inefficiencies. Deeper electricity market reforms are not a necessity for further development of cross-border electricity trade, but limited progress in overcoming regional and domestic barriers will limit the scope of the regional market and the benefits it can provide.
    Keywords: Energy Production and Transportation,Energy Technology&Transmission,Climate Change Mitigation and Green House Gases,Energy and Poverty Alleviation,Electric Power
    Date: 2015–06–23
  3. By: Zhu Liu
    Abstract: In 2012 China was the largest contributor to carbon emissions from fossil fuel burning and from cement production. With 8.50 Gt CO2 in in carbon emissions from fossil burning and cement production in 2012, China was responsible for 25% of global carbon emissions. China?s cumulative emissions from fossil fuel burning and cement production from 1950-2012 were 130 Gt CO2. The magnitude and growing annual rate of growth of China?s carbon emissions make this country the major driver of global carbon emissions and thus a key focus for efforts in emissions mitigation. This report presents independent data on China?s carbon emissions from 1950-2012, and provides a basis to support mitigation efforts and China?s low-carbon development plan.
    Date: 2015–01
  4. By: Stephen P. Holland; Erin T. Mansur; Nicholas Z. Muller; Andrew J. Yates
    Abstract: Electric vehicles offer the promise of reduced environmental externalities relative to their gasoline counterparts. We combine a theoretical discrete-choice model of new vehicle purchases, an econometric analysis of the marginal emissions from electricity, and the AP2 air pollution model to estimate the environmental benefit of electric vehicles. First, we find considerable variation in the environmental benefit, implying a range of second-best electric vehicle purchase subsidies from $3025 in California to -$4773 in North Dakota, with a mean of -$742. Second, over ninety percent of local environmental externalities from driving an electric vehicle in one state are exported to others, implying that electric vehicles may be subsidized locally, even though they may lead to negative environmental benefits overall. Third, geographically differentiated subsidies can reduce deadweight loss, but only modestly. Fourth, the current federal purchase subsidy of $7500 has greater deadweight loss than a no-subsidy policy.
    JEL: D62 H23 Q53 Q54
    Date: 2015–06
  5. By: Daiju Narita; Gernot Klepper
    Abstract: Carbon dioxide capture and storage (CCS) is considered to be an important option for reducing carbon dioxide (CO2) emissions. However, there are still concerns about its economic viability, especially if the risk of leakage in the storage site is taken into account. We use a real options approach for assessing the impact of uncertainty on the timing and the profitability of CO2 storage projects. We model an investment decision for a storage site under uncertainty about CO2 leaking from the storage site, about the development of carbon prices, and about the cost of investment. The numerical model results show that investment under these uncertainties requires a much larger price for carbon credits for storage than an investment plan ignoring uncertainty would suggest. We also show under reasonable parameter assumptions that the risk for investing in CO2 storage is dominated by the uncertain development of carbon prices, whereas the risk of carbon leakage has little influence on the investment decision
    Keywords: Carbon dioxide capture and storage (CCS), real options analysis, climate policy
    JEL: D81 Q49 Q54
    Date: 2015–06
  6. By: J. A.Bohlmann., H. R. Bohlmann, and R. Inglesi-Lotz
    Abstract: The South African economy has suffered over the past decade due to a lack of adequate electricity supply. With two new coal-fired power stations, Kusile and Medupi, scheduled to come online over a six year period (2014-2019), their additional generation capacity is expected to restore electricity reserve margins and facilitate increased growth and investment in the local economy. In this paper, we use a dynamic CGE model for South Africa to evaluate the economy-wide impact that the additional power generation from these two stations will have across a broad range of macroeconomic and industry variables.In terms of the new power generation capacity, our findings suggest that the macroeconomic impact of Kusile and Medupi will be a definite positive. Results show that, in the medium term, investment expenditure is particularly sensitive to the building of these new power plants. Additional costly blackouts are also likely to be avoided, further promoting economic growth and investment. Once Kusile and Medupi are fully operational and able to provide its projected 9600MW of base load electricity supply, old coal-fired power plants may be decommissioned and replaced by cleaner and more efficient generation sources as outlined in the Department of Energy’s Integrated Resource Plan. Our analysis also suggests that this outcome provides a good balance between utilising modern clean coal technologies that are cost-effective while laying the foundation to improving our generation-mix and carbon emissions profile.
    Keywords: computable general equilibrium, UPGEM, electricity supply, Kusile, Medupi
    JEL: C68 Q41 Q43
    Date: 2015
  7. By: Reto Bertoni (Programa de Historia Económica y Social, Facultad de Ciencias Sociales, Universidad de la República); Henry Willebald (Instituto de Económia, Facultad de Ciencias Económicas y de Administración, Universidad de la República)
    Abstract: Settler economies are characterized by abundant natural resources, but natural capital is not homogeneous between countries and it can produce different consequences in terms of economic performance. This paper discusses the effect of natural resources on economic performance as part of the debate about the “curse of natural resources hypothesis”. We consider energy natural resources and focus on two settler societies, New Zealand and Uruguay. There is very little literature about the economic development of settler economies that identifies differences within the “club” countries that have different natural resources. We look for differences in energy natural endowments, basically coal and suitable conditions for hydroelectric generation, to explain at least partially the different welfare levels between the two economies. In the nineteenth century and the early decades of the twentieth century, New Zealand and Uruguay were similar in many ways such as production structure, movements in production factors and insertion in international markets, but there were huge differences in income per capita levels. To explain this, we need to study other aspects of the economic system. The analytical framework associated with the curse of natural resources offers some interesting lines of argument for our inquiry. The conformation of a “modern” production structure requires there to be sufficient energy supply at competitive costs, to justify exploiting the corresponding natural resources. Our analysis shows that New Zealand’s better performance in coal production and better natural conditions to generate electric energy at low cost –thus offering energy at low prices– explain those differences. New Zealand's advantage in energy endowments at least partially explains the development of a dairy sector, certain energy-intensive manufactures and a more efficient use of railways
    Keywords: settler economies, curse of the natural resources hypothesis, coal production, hydroelectric generation.
    JEL: N50 N70 Q41
    Date: 2015–04
  8. By: Vesterberg, Mattias (Department of Economics, Umeå School of Business and Economics); Kiran B. Krishnamurthy, Chandra (Beijer Institute of Ecological Economics, The Royal Academy of Sciences); Bayrak, Oben (Department of Forest Economics, SLU)
    Abstract: Using a household appliance metering data set from the Swedish Energy Agency, this paper focuses on understanding the determinants of end-use electricity demand for Sweden. The focal point of the analysis is the estimation of end-use-specific income elasticity of electricity demand, for the first time for Sweden. A seemingly unrelated regression framework is used for understanding the determinants of end-use demand, with the end-uses being heating, kitchen, lighting, and residual. The main results of the analysis are: high aggregate elasticity (above 0.6), and very high income elasticity of electric heating (above 0.8). Other size-related variables (size of home, number of people) do not appear to have significant explanatory power. Overall, our analysis indicates that income is a key factor determining the demand for electricity, and to a much larger extent than usually considered.
    Keywords: Direct Metering; Residential Electricity Demand; income elasticity
    JEL: C30 D12 Q40 Q41
    Date: 2015–06–16
  9. By: Zhu Liu; Dabo Guan; Moore, Scott; Henry Lee; Su, Jun; Qiang Zhang
    Abstract: Regional targets and improved market mechanisms could enable the nation's carbon dioxide emissions to peak by 2030, say Zhu Liu and colleagues
  10. By: Galo Nuño (Banco de España); Cristiana Belu Manescu (European Commission)
    Abstract: The aim of this paper is to analyse the impact of the so-called «shale oil revolution» on oil prices and economic growth. We employ a general equilibrium model of the world oil market in which Saudi Arabia is the dominant firm, with the rest of the producers as a competitive fringe. Our results suggest that most of the expected increase in US oil supply due to the shale oil revolution has already been incorporated into prices and that it will produce an additional increase of 0.2 percent in the GDP of oil importers in the period 2010-2018. We also employ the model to analyse the collapse in oil prices in the second half of 2014 and conclude that it was mainly due to positive unanticipated supply shocks.
    Keywords: Saudi Arabia, general equilibrium, shale oil
    JEL: Q41 Q47 E17
    Date: 2015–06
  11. By: Kamarudin, Eka Azrin; Masih, Mansur
    Abstract: Crude oil market plays an important role in economic development and its price changes give huge impact to the financial markets. In this paper, the relationships between crude oil and stock markets are examined. This study has selected Malaysian Islamic and conventional stock markets as a case study. Financialisation of crude oil and its frequent inclusion into investment portfolios warrant an analysis of the relationship between crude oil and stock market indices at various time scales or investment horizons. Therefore, this paper applies wavelet decompositions to unveil the multi-horizon nature of co-movement and employ daily closing price data of Brent crude oil index and Malaysian Shariah and conventional stock market indices. The results mainly show an evidence of a low degree of co-movement between crude oil prices and Malaysian stock market returns for short term and medium term. However, for the long term, it shows that there is a significant co-movement for crude oil – stock market relationship. Interestingly, Malaysia Islamic stock market and conventional stock market are highly correlated and both show similar patterns for crude oil price comovements. The findings of this study are of crucial importance for the investors for exploring their diversification benefits as well as for the timing of their investment and disinvestment purposes.
    Keywords: Islamic stock markets, crude oil, wavelets
    JEL: C22 C58 Q43
    Date: 2015–06–25
  12. By: Carol A. Dahl (Division of Economics and Business, Colorado School of Mines); Tyler Hodge (U.S. Energy Information Administration)
    Abstract: This paper contains a dynamic conduct parameter model to look at the pricing behavior of five power marketers in the California Power Exchange (CalPX) on daily data for 2000. Only our previous paper Hodge and Dahl (2012) specifically focused on just the electric power marketers. In this paper we compare a dynamic conduct parameter with that of our earlier static model to test whether the static estimates are biased downwards or towards not rejecting the null hypothesis of no market power. We estimate the model using generalized methods of moments on data for each marketer. We find more evidence of collusive behavior with the dynamic than the earlier static model estimates.
    Keywords: Electricity, Conduct Parameter, Dynamic, Marketer
    JEL: L10 L94 Q40 Q41
    Date: 2015–06
  13. By: Galassi, Veronica (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: The future diffusion of photovoltaic systems relies heavily on the ability of utilities and policy-makers to properly valorize such volatile renewable energy-sources technologies. We conduct a discrete choice experiment to investigate which types of business models for photovoltaic systems could bring the highest utility to the Italian households. Our focus is not just on the costs and benefits of a photovoltaic system, but also on features like system control and maintenance, the duration of the electricity supply contract, as well as preferred channels of purchase and installation. Most importantly, we also include alternatives with battery storage. The data analysis – based on the Hierarchical Bayes estimation technique – reveals credible preferences for PV photovoltaic systems with battery storage facilities controlled by the utility or solutions characterized by lower investment costs. Multivariate analysis of variance coupled with the estimation of a random effects model with mixture of normal distributions suggests the presence of some heterogeneity across adopters and knowledgeable non-adopters, the latter particularly involving risk perception. Sensitivity analysis provides additional evidence in favor or these findings. On the basis of the results, we provide utilities and policy-makers with final recommendations.
    Keywords: DCE; Residential PV; Energy storage; Feed-in tariff
    JEL: C25 D12 O33 Q42
    Date: 2014–12
  14. By: Kundu, Nobinkhor
    Abstract: Bangladesh will achieve considerable success in acceleration of economic growth of course need for sustainable energy for development (SED). Renewable or ‘green’ energy is now at forefront of the country’s priorities for environmentally sustainable economic progress. The Power Division under the Ministry of Power, Energy & Mineral Resources (MPEMR) has declared a “Renewable Energy Policy of Bangladesh” and under the Companies Act, 1994, the GoB, is establishing an institution named “Sustainable Energy Development Authority” (SEDA). At present Bangladesh takes the different financing models that have been developed and tested for renewable energy projects in urban and rural communities and energy efficiency improvement projects. Bangladesh Bank (BB) has developed an incentive scheme for concessional refinancing for small solar energy, bio-gas plants and Effluent Treatment Plants (ETP). These are recent initiatives on their part and Banks are yet to take full advantage of such concessional refinance. To analysis primary data collected for used cross sectional study to be considered about allied factors for renewable energy especially solar energy. A structured questionnaire was prepared in the light of the objectives of the study that was filled up by direct interview. The multivariate techniques viz., multiple logistic regression models, will be used to identify the inputs significant for sustainable energy for development in Bangladesh that is accelerating economic growth of a nation. Software packages Eviews - 5.1 have built-in routines to estimate the logit model at the individual level. Logistic regressions have been presented with the dependent variable as an indicator of the probability of being in generate RE and EE. Dependent variables dummy of RE and EE (= 1, if a generate RE and EE is full, otherwise under) have been included. The expected sign of explanatory variables coefficients are positive and or negative respectively. Thus, other things remaining same, if high cost RE/EE technologies up to become low cost, each stakeholder will purchase RE/EE technologies. However, together all the regressors have a significant impact on the log of RE/EE, whose p-value is about 0.0000, which is statistically significant. We are looking at different sources of financing on both RE and EE investment decisions. Overall, financial institutions will aim to create a package that includes the total finance amount and the repayment terms, the interest rate, the repayment schedule and any guarantees or securities. When successful, these new approaches could be capable of triggering the involvement of commercial banks. Point of view of banking and financing institutions and risks associated with renewable energy (RE) and energy efficiency (EE) technologies for sustainable energy for development (SED).
    Keywords: Renewable Energy, Energy Efficiency, Sustainable Development
    JEL: Q26 Q56
    Date: 2014–03–12
  15. By: Jamasb,Tooraj; Nepal,Rabindra; Timilsina,Govinda R.
    Abstract: It has been more than two decades since the widespread initiation of global power sector reforms and restructuring. However, empirical evidence on the intended microeconomic, macroeconomic, and quality-related impacts of reforms across developing countries is lacking. This paper comprehensively reviews the empirical and theoretical literature on the linkages between power sector reforms, economic and technical efficiency, and poverty reduction. The review finds that the extent of power sector reforms has varied across developing countries in terms of changes in market structures, the role of the state, and the regulation of the sector. Overall, the reforms have improved the efficiency and productivity in the sector among many reforming countries. However, the efficiency gains have not always reached the end consumers because of the inability of sector regulators and inadequate regulatory frameworks. Reforms alleviate poverty and promote the welfare of the poor only when the poor have access to electricity. From a policy-making perspective, this implies that the reforms need to be supplemented with additional measures for accelerating electrification to help the poor.
    Keywords: Energy Production and Transportation,Infrastructure Regulation,Climate Change Mitigation and Green House Gases,Electric Power,Infrastructure Economics
    Date: 2015–06–23
  16. By: Serkan Ada (Selcuk University); Sümeyra Ceyhan (Bingöl University)
    Abstract: Recently, concerns with environmental issues enabled businesses to transform their practices to become more environmentally sensitive. It is widely accepted that carbon emissions have an increasing impact on the climate and environmental problems. It is further known that information technology (IT) makes a significant contribution to carbon emissions, albeit not being directly perceptible to the general public. That’s why, a new term called green IT emerged recently to create a positive and environmentally sensitive movement in IT field. Green IT is defined as the practices and technologies for designing, manufacturing, using, and disposing of computers, servers, and associated devices such as monitors, printers, storage devices, and networking and communication systems to minimize impact on the environment. Businesses have recently become aware of the issues related to green IT, as practicing green IT has a positive impact not only on the environment and global warming, but also on the profits through decreasing energy consumption costs. For this reason, it is necessary to study green IT practices and perceptions of businesses and managements as well as the factors influencing it. This study examines the impact of environmentally sensitive management and human resources on green IT practices. The current study used the data collected via a structured survey conducted in Kahramanmara
    Keywords: Green IT, environment, environmental sensitivity, environmentally sensitive management, environmentally sensitive human resources
    JEL: M15 C12 C83
    Date: 2015–06
  17. By: Lorenzo Cerda Planas (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics)
    Abstract: This paper intends to provide an alternative approach to the formation of International Environmental Agreements (IEA). The existing consensus within the literature is that there are either too few signatories or that the emissions of signatories are almost the same as business as usual (BAU). I start from a well-known model (Barrett 1997), adding heterogeneity in countries' marginal abatement costs (low and high) and in damages suffered (or corresponding environmental concern). I also allow for technological transfers and border taxes. I show that using either mechanism one at a time, does not change the results. But if both are used in a strategic manner, a grand (and abating) coalition can be reached, while minimizing transfers.
    Date: 2015–03
  18. By: Siqi Zheng; Cong Sun; Matthew E. Kahn
    Abstract: Urban China’s high levels of ambient air pollution both lowers quality of life and raises mortality risk. China’s wealthy have the purchasing power to purchase private products such as air filters that allows them to offset some of the pollution exposure risk. Using a unique data set of Internet purchases, we document that households invest more in masks and air filter products when ambient pollution levels exceed key alert thresholds. Richer people are more likely to invest in air filters, which are much more expensive than masks. Our findings have implications for trends in inequality in human capital accumulation and in quality of life inequality in urban China.
    JEL: Q53 Q55 R21
    Date: 2015–06
  19. By: Cuesta Leiva,Jose Antonio; El Lahga,Abdelrahmen; Lara Ibarra,Gabriel
    Abstract: Tunisian social development policy making has always counted on energy subsidies to play a pivotal role. Due to the increasingly unsustainable budget implications, a new strategy has begun to reform the subsidy system in the energy sector while striking a balance between improving fiscal and equity considerations without increasing social tensions. This paper presents an analysis of the fiscal and distributive consequences of the changes to the subsidy setup announced by the government at the end of 2014. The results show that raising electricity prices for consumers and removing subsidies for other energy sources would lead to a short-term increase in the poverty rate of 2.5 percentage points. In addition, compensation mechanisms that could be readily implemented (such as universal coverage or building on the existing health cards system) will not bring substantive counterweight to the increased poverty, even if all savings of reforms could be perfectly channeled as cash transfers. The analysis suggests that bold reforms of energy subsidies need to be accompanied by equally bold improvements to the targeting schemes of public spending if poverty and disparities are to be substantively reduced.
    Keywords: Transport Economics Policy&Planning,Energy Production and Transportation,Economic Theory&Research,Emerging Markets,Taxation&Subsidies
    Date: 2015–06–17
  20. By: Lucas Bretschger (ETH Zurich, Switzerland); Alexandra Vinogradova (ETH Zurich, Switzerland)
    Abstract: The paper derives general rules for equitable burden sharing in international climate policy. The focus is on a new social climate contract between developed and less developed countries (LDCs) which preserves competitiveness of the former and the ”right to development” of the latter. We formally derive conditions under which an LDC keeps the ”right to development” but voluntarily agrees to participate in stringent international climate policy. Two types of policies are analyzed, one with a predefined transfer and the other with a transfer that is tied to emissions-control efforts. We show that offering only one or the other option is inefficient. Chances for a comprehensive agreement are higher when a menu of policy options is available. The number and diversity of LDCs willing to join a global climate treaty is higher when a variety of policy alternatives is available.
    Keywords: Climate policy, less developed countries, equitable burden sharing, right to development, international climate agreement.
    JEL: Q43 O47 Q56 O41
    Date: 2015–06
  21. By: Jan Goebel; Christian Krekel; Tim Tiefenbach; Nicolas R. Ziebarth
    Abstract: We study the impact of the Fukushima disaster on environmental concerns, well-being, risk aversion, and political preferences in Germany, Switzerland, and the UK. In these countries, overall life satisfaction did not significantly decrease, but the disaster significantly increased environmental concerns among Germans. One underlying mechanism likely operated through the perceived risk of a similar meltdown of domestic reactors. After Fukushima, more Germans considered themselves as “very risk averse”. However, drastic German policy action shut down the oldest reactors, implemented the phaseout of the remaining ones, and proclaimed the transition to renewables. This shift in energy policy contributed to the subsequent decrease in environmental concerns, particularly among women, Green party supporters, and people living in close distance to the oldest reactors. In Germany, political support for the Greens increased significantly, whereas in Switzerland and the UK, this increase was limited to people living close to reactors.
    Keywords: Fukushima, nuclear phase-out, environmental concerns, well-being, risk aversion, Green party
    JEL: I18 I31 Q54
    Date: 2015
  22. By: Borck, Rainald (University of Potsdam); Pflüger, Michael P. (University of Würzburg)
    Abstract: This paper establishes a simple theoretical framework which comprises key forces that shape the structure and interrelation of cities to study the interdependencies between urban evolution and the environment. We focus on the potential of the unfettered market forces to economize on emissions. A key finding is that these forces alone may suffice to generate an urban Environmental Kuznets Curve. In particular, reducing trade costs increases per capita incomes and generates a U-shaped evolution of emissions in the process of agglomeration and redispersion. Another key result is that agglomeration per se is typically not a boon for the environment, as total emissions in the total city system are likely to rise.
    Keywords: city structure, city systems, environmental pollution, global warming, Environmental Kuznets Curve, trade costs, commuting costs, housing
    JEL: F18 Q50 R11 R12
    Date: 2015–06
  23. By: Nasser Al Dossary (Saudi Aramco); Carol A. Dahl (Division of Econmics and Business, Colorado School of Mines)
    Abstract: The popular perception among the lay community seems to be that gasoline consumption does not respond to price. However, numerous econometric studies have been done on gasoline demand elasticities and at least thirteen studies have been devoted to surveying this work. (See Dahl (2006).) All of these surveys conclude that gasoline consumption does respond to price, and most of them come to a quantitative conclusion about the values for the price elasticity. The majority conclude that the short-run price elasticity (annual) is between -0.2 and -0.3, and the long-run elasticity is between -0.6 and -0.9. However, over time gasoline expenditures have become a smaller percent of consumer budgets and vehicles have become more durable. These changes might have implications for both short- and long-run responsiveness to price. We have found five recent econometric studies for transport fuel demand on three countries that have data beyond 2000. Of these recent studies only Hughes et al. (2006) tested whether recent price and income elasticities are statistically similar to an earlier period for the U.S. They used monthly data and found a smaller price response recently compared to the 1970s. We build upon Hughes et al. and other studies by examining whether gasoline demand elasticities are stable using an Autoregressive Distributed Lag model (ARDL) for the U.S., 13 other OECD countries, and 9 other non-OECD countries representing the majority of current and potential future key consumers. Our results support those of Hughes et al. and find the U.S. price responsiveness is lower now than in the 1970's. Surprisingly, however, we find that price elasticities have been stable for the majority of other countries in our investigation. We also find gasoline tends to have inelastic short- and long-run price elasticities that are smaller in absolute value than income elasticities for most countries.
    Keywords: Gasoline Demand, ARD, General to Specific, Elasticities
    JEL: C13 Q41
    Date: 2015–06
  24. By: Hilde C. Bjørnland; Vergard H. Larsen
    Abstract: We analyze the role of oil price volatility in reducing U.S. macroeconomic instability. Using a regime-switching structural model we revisit the timing of the Great Moderation and the sources of changes in the volatility of macroeconomic variables. We find that smaller or fewer oil price shocks did not play a major role in explaining the Great Moderation. Instead oil price shocks are recurrent sources of macroeconomic fluctuations. The most important factor reducing macroeconomic variability is a decline in the volatility of other structural shocks (demand and supply). A change to a more responsive monetary policy regime also played a role.
    Date: 2015–06
  25. By: Gandenberger, Carsten; Unger, Daniel; Strauch, Manuel; Bodenheimer, Miriam
    Abstract: Enhancing developing countries' access to climate technologies is an important contribution to effectively addressing climate change at the global level. In this study, we analyses the drivers and barriers for the transfer of wind power technology from the perspective of multinational technology suppliers. The findings and comparison of two case studies on the transfer of wind power technology to China and Brazil are presented, focusing on which transfer channels were chosen and why, as well as what kind of impact this choice had on the local diffusion of the transferred technology. While the case study on China arrives at the conclusion that a variety of transfer channels are used and hybrid governance modes, such as licensing and joint ventures, are favored in particular, the Brazilian case revealed that transfers within multinational companies to their subsidiaries are by far the dominant transfer channel. Both case studies revealed that government restrictions have a considerable impact on the choice of transfer channel, which is due both to the strong involvement of the receiving countries' governments in market creation activities for renewable energies and to their control over energy markets and infrastructures. [...]
    Keywords: International Technology Transfer,Transfer Channel,Wind Power,Knowledge Spillover,Transaction Costs Economics
    Date: 2015
  26. By: Luca Lambertini (Department of Economics, University of Bologna, Italy; The Rimini Centre for Economic Analysis, Italy); Joanna Poyago-Theotoky (School of Economics, La Trobe University, Australia; The Rimini Centre for Economic Analysis, Italy); Alessandro Tampieri (Faculty of Law, Economics and Finance, University of Luxembourg, Luxembourg)
    Abstract: We examine the relationship between competition and innovation in an industry where production is polluting and R&D aims to reduce emissions (“green” innovation). We present an n-firm oligopoly where firms compete in quantities and decide their investment in “green” R&D. When environmental taxation is exogenous, aggregate R&D investment always increases with the number of firms in the industry. Next we analyse the case where the emission tax is set endogenously by a regulator (committed or time-consistent) with the aim to maximize social welfare. We show that an inverted-U relationship exists between aggregate R&D and industry size under reasonable conditions, and is driven by the presence of R&D spillovers.
    Date: 2015–06
  27. By: Hilde C. Bjørnland; Leif Anders Thorsrud
    Abstract: We analyse if the adoption of a fiscal spending rule insulates the domestic economy from commodity price fluctuations in a resource-rich economy. To do so we develop a time-varying Dynamic Factor Model, in which we allow both the volatility of structural shocks and the systematic fiscal policy responses to change over time. We focus on Norway, a country that is put forward as exemplary with its handling of resource wealth. Unlike most oil exporters, Norway has devised a fiscal framework with the view to shield the domestic economy from oil price fluctuations. By transferring its petroleum revenues to a sovereign wealth fund, and then consuming only the expected real return on the fund, fiscal policy allows for a gradual phasing in of the petroleum revenue, unrelated to movements in oil prices. We find that, contrary to common perception, fiscal policy has been more (not less) procyclical with commodity prices since the adoption of the fiscal rule in 2001. Fiscal policy has thereby worked to exacerbate the commodity price fluctuations on the domestic economy. Large inflows of money to the fund during a period of rapidly increasing oil prices is part of the explanation. Still, Norway has managed to save a large share of its petroleum income for future generations. Compared to many other resource-rich economies practising a more spend-as-you-go strategy, this is a great success.
    Keywords: Commodity prices, fiscal policy, Time-varying Dynamic Factor Model
    Date: 2015–06
  28. By: Florian Egli; Nick Johnstone; Carlo Menon
    Abstract: Most of the projections of the cost of meeting climate change mitigation targets hinge crucially upon assumptions made about the cost and timing of the development of breakthrough technologies. However, very little is known about the conditions which are likely to give rise to breakthrough technologies. This paper seeks to uncover attributes of inventions – as reflected in patent data – which serve as “leading indicators” of subsequent technological and market development in climate change mitigation technologies. The role of industrial generality emerges as being robustly correlated with subsequent technological diffusion, whether measured as subsequent patent counts, commercial applicability, or attractiveness to risk finance. The indicator of closeness to science shows also a positive association with later technological diffusion. Originality and radicalness have more ambiguous results. This work can be seen as a foundation for the future development of a methodology providing guidance to policymakers in the choices made with respect to public support for different technological fields.
    Keywords: green growth, climate change mitigation policy
    JEL: O31 O33 Q54 Q55
    Date: 2015–06–24
  29. By: Atamanov,Aziz; Jellema,Jon Robbert; Serajuddin,Umar
    Abstract: Facing a fiscal crisis, Jordan initiated substantial petroleum subsidy reforms in 2012. The government has also long contemplated how to cut electricity subsidies, which surpass the fiscal burdens imposed by the petroleum subsidies. This paper estimates the impacts of the 2012 petroleum subsidies reform on household welfare and government revenues. It also simulates the distributional and fiscal impacts from ending subsidies in the electricity sector, where the pricing structure is more complex than petroleum prices. The paper looks at the direct and indirect impacts of reform. Moreover, the paper discusses the political economy considerations of reform. While the full removal of petroleum subsidies would have increased poverty, the compensatory cash transfer program the government instituted is estimated to have fully offset the negative impact for the poorer population. The impact of reforms in the electricity sector will depend significantly on the implementation method chosen. A flat increase of tariffs toward cost recovery will put a huge burden on the poorest households. However, a progressive increase in tariffs will generate substantial savings for the government, even with compensatory mechanisms to mitigate the strong negative impact on the vulnerable population. The immediate compensation of the losers from reform appears to be a crucial factor in the successful implementation of reforms in Jordan.
    Keywords: Transport Economics Policy&Planning,Energy Production and Transportation,Economic Theory&Research,Emerging Markets,Markets and Market Access
    Date: 2015–06–17
  30. By: Shiro Takeda (Kyoto Sangyo University); Toshi H. Arimura (Waseda University); Makoto Sugino (Yamagata University)
    Abstract: International emissions trading (IET) has been widely recognized as a preferred approach for tackling the climate change because it would equalize total abatement costs and generates gains for all participants. However, this argument is heavily premised on the notion of partial equilibrium and ignores general equilibrium effects of IET. Using a multi-region, multi-sector CGE model, this paper analyzes effects of IET with focus on labor market distortions. We construct four separate models with several different labor market specifications: i) a model without labor market distortions (i.e. where the labor supply is determined exogenously and wages are flexible); ii) a model with tax-interaction effects in the labor market (i.e. where the labor supply is endogenously determined and a labor tax exists); iii) a model with a minimum wage; and iv) the final model is one in which a wage curve determines wages. We use these models to analyze how the effects of IET change according to model specification. The main results from the analysis are as follows. First, we found that IET generates gains for all participants in the model without labor market distortions. Second, even in the models with labor market distortions, importers of emissions permits are highly likely to benefit. Conversely, we show that the possibility of a welfare loss from IET is not as small for exporters of permits. In particular, in the minimum wage and wage curve models, we found that the exporters of emissions permits are likely to be disadvantaged. However, this also depends on the region in question. For example, China is likely to suffer under IET, whereas Russia, also an exporter, is likely to benefit. We also make clear that if policies are employed to correct (i.e. reduce) labor market distortions when emissions regulation is introduced, all participants will benefit from IET in almost all cases. It is generally recognized that IET is a desirable policy that benefits all participating regions. However, we show that an analysis that does not take account of such labor market distortions will likely overestimate the benefits of IET for permit exporters.
    Keywords: international emissions trading, labor market, computable general equilibrium analysis, tax-interaction effect, minimum wage, wage curve
    Date: 2015–03
  31. By: Goeschl, Timo; Kettner, Sara Elisa; Lohse, Johannes; Schwieren, Christiane
    Abstract: Evidence from public good game experiments holds the promise of instructive and cost-effective insights to inform environmental policy-making, for example on climate change mitigation. To fulfill the promise, such evidence needs to demonstrate generalizability to the specific policy context. This paper examines whether and under which conditions such evidence generalizes to voluntary mitigation decisions. We observe each participant in two different decision tasks: a real giving task in which contributions are used to directly reduce CO2 emissions and a public good game. Through two treatment variations, we explore two potential shifters of generalizability in a within-subjects design: the structural resemblance of contribution incentives between the tasks and the role of the subject pool, students and non-students. Our findings suggest that cooperation in public good games is linked to voluntary mitigation behavior, albeit not in a uniform way. For a standard set of parameters, behavior in both tasks is uncorrelated. Greater structural resemblance of the public goods game leads to sizable correlations, especially for student subjects.
    Date: 2015–06–19
  32. By: Caillaud, Bernard; Demange, Gabrielle
    Abstract: This paper analyzes the joint design of fiscal and cap-and-trade instruments in climate policies under uncertainty. Whether the optimal mechanism is a mixed policy (with some firms subject to a tax and others to a cap-and-trade) or a uniform one (with all firms subject to the same instrument) depends on parameters reflecting preferences, production, and, most importantly, the stochastic structure of the shocks affecting the economy. This framework is then used to address the issue of the non-cooperative design of ETS in various areas worldwide and to characterize the resulting inefficiency and excess in emission. We provide a strong Pareto argument in favor of merging ETS of different regions in the world and evaluate the welfare gains in each region.
    Keywords: cap-and-trade mechanisms; climate policies; tax
    JEL: D62 H23 Q54
    Date: 2015–06
  33. By: Dirk Drechsel (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Heiner Mikosch (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Samad Sarferaz (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Matthias Bannert (KOF Swiss Economic Institute, ETH Zurich, Switzerland)
    Abstract: This paper analyzes the effects of macroeconomic shocks on prices and output at different levels of aggregation using a bottom up approach. We show how to generate firm level impulse responses by incorporating experimental settings into surveys and by exposing firm executives to treatment scenarios. Aggregation then results in industry level and economy wide impulse responses. We further show that the effects obtained from survey experiments can be mapped into impulse responses retrieved from VARs. We apply the procedure to study the effects of oil price shocks using a representative sample of over 1000 Swiss firms. At the aggregate and industry level our findings confirm, with some notable exceptions, results from a standard VAR. At the micro level we analyze the driving forces behind firm specific impulse responses, controlling for several firm characteristics via panel data analysis and thereby solving existing puzzles.
    Keywords: Survey based impulse responses, survey experiments, macroeconomic shock identification, firm level data, oil price shock
    JEL: C32 C83 C99 E31
    Date: 2015–06
  34. By: J. -F. Mercure; H. Pollitt; A. M. Bassi; J. E Vi\~nuales; N. R. Edwards
    Abstract: Policy-makers currently face unprecedented challenges and uncertainty when taking decisions that simultaneously affect economic development, technology and the environment. It is not clear to policy-makers how to reconcile economic policy supporting growth with climate change mitigation, and it is not clear how effective policies are likely to be. This paper argues that informing policy-making using conventional equilibrium or optimisation modelling of technology and economics is not fine-grained enough to capture the complexities of real-world human behaviour and its diversity, leaving a wide uncertainty gap for policy-making. We suggest that the use of a dynamical methodology involving complexity science coupled to behavioural science with sophisticated uncertainty analysis can provide appropriate tools to better understand policy issues in sectors that involve a high degree of interaction (collective effects) or differentiation (agent heterogeneity/diversity) between agents. We argue that a better representation in models of these complex feedbacks between three critical interrelated areas could enable a paradigm shift for our understanding of how these aspects work together: technological change, the macroeconomy, and the natural environment. We identify four areas of environmental policy where the high degree of agent interactions and/or behavioural diversity makes their analysis impractical/inconsistent. These are (1) the effectiveness of policy for emissions reductions in consumer based sectors (2) the analysis of green growth, (3) cascading uncertainty across models and (4) cross-sectoral impacts of sector specific policies (e.g. biofuels). We suggest how a wider adoption of this approach could lead to a step change in our ability to address the complex policy problems raised by sustainability transitions.
    Date: 2015–06
  35. By: Roberto Chang (Rutgers University and NBER); Constantino Hevia (Universidad di Tella); Norman Loayza (World Bank)
    Abstract: This paper studies the cycles of nationalization and privatization in resource-rich economies. It starts with a discussion of available evidence on the drivers and consequences of privatization and nationalization. Then it develops a static and dynamic model of the choice between private and national regimes for the ownership of natural resources. In the model, the choice is driven by a basic equality-efficiency tradeoff: national ownership results in more redistribution of income and more equality but undermines incentives for effort. The resolution of the tradeoff depends on external and domestic conditions that affect social welfare under each regime. We characterize how external variables –such as the commodity price– and domestic ones –such as the tax system– affect the choice of private vs. national regimes. Our analysis therefore identifies the determinants of the observed cycles of privatization and nationalization and is consistent with key stylized facts.
    Keywords: Privatization, Nationalization, Institutions, Natural Resources, Oil
    Date: 2015–06
  36. By: Stephan B. Bruns; David I. Stern
    Abstract: Understanding the (causal) mechanisms at work is important for formulating evidence-based policy. But evidence from observational studies is often inconclusive with many studies finding conflicting results. In small to moderately sized samples, the outcome of Granger causality testing heavily depends on the lag length chosen for the underlying vector autoregressive (VAR) model. Using the Akaike Information Criterion, there is a tendency to overfit the VAR model and these overfitted models show an increased rate of false-positive findings of Granger causality, leaving empirical economists with substantial uncertainty about the validity of inferences. We propose a meta-regression model that explicitly controls for this overfitting bias and we show by means of simulations that, even if the primary literature is dominated by false-positive findings of Granger causality, the meta-regression model correctly identifies the absence of genuine Granger causality. We apply the suggested model to the large literature that tests for Granger causality between energy consumption and economic output. We do not find evidence for a genuine relation in the selected sample, although excess significance is present. Instead, we find evidence that this excess significance is explained by overfitting bias.
    Keywords: Granger causality, vector autoregression, information criteria, meta-analysis, meta-regression, bias, publication selection bias
    Date: 2015–06
  37. By: Leonardo Baccini; Johannes Urpelainen
    Abstract: When do international treaties cause domestic policy adjustments? While previous research emphasizes the consequences of treaty ratification, we argue that the need to secure entry into force can induce states to change their policies already before ratification. If a state expects benefits from a treaty, it can increase the probability of foreign ratification by implementing policies that benefit pivotal domestic players within its partner country. Accordingly, studies that focus on policy change after ratification underestimate the importance of treaties and partly misconstrue the causal connection between treaties and policies. We test the theory against data on the relationship between North-South preferential trading agreements (PTAs) and automobile emission standards, finding that developing countries adopt automobile emission standards between the signature and ratification of North-South PTAs.
    JEL: L91 L96
    Date: 2014–03
  38. By: Takayoshi Kato; Jane Ellis; Christa Clapp
    Abstract: Shifting public and private investment from “brown” to “green” is an essential part of climate change. The post-2020 climate agreement to be agreed at COP 21 in December 2015 has the potential to play a significant role in signalling the importance of such a shift. This paper explores how the 2015 agreement could spur further mobilisation of climate finance by examining the current state of play regarding existing financing environments and mechanisms. These include examining the existing international institutional arrangements under the UNFCCC to see how balanced financing, co-ordination, streamlining and complementarity between institutions could be achieved. The paper also highlights the key role that in-country enabling environments can play in further mobilising public and private climate finance, and discusses how the 2015 agreement could enhance both “pull” and “push” factors for mobilisation. In addition, the paper also discusses how the agreement could facilitate the broad use of a spectrum of financial instruments and the further development of an enhanced system for measurement, reporting and verification of climate finance.<P>Le rôle de l'accord de 2015 dans la mobilisation de financements climatiques<BR>Faire passer les investissements publics et privés du « brun » au vert » est un aspect essentiel de la lutte contre le changement climatique. L’accord sur le climat post-2020 qui doit être adopté à la COP21, en décembre 2015, peut jouer un grand rôle dans ce contexte en mettant en lumière l’importance d’une telle réorientation des investissements. Ce rapport étudie comment l’accord de 2015 pourrait stimuler une mobilisation accrue de financements climatiques. Pour ce faire, il dresse un état des lieux des environnements et des mécanismes de financement existants, en passant en revue les dispositifs institutionnels internationaux en vigueur dans le cadre de la CCNUCC afin de déterminer comment obtenir des financements équilibrés, une coordination, une organisation efficace et une complémentarité entre les institutions. Le rapport met également en évidence l’importance d’un environnement propice à l’intérieur des pays pour intensifier la mobilisation de financements climatiques publics et privés, et examine dans quelle mesure l’accord de 2015 pourrait renforcer les facteurs d’attraction et d’incitation en matière de mobilisation des capitaux. Le rapport décrit également comment l’accord pourrait faciliter un large recours à toute une panoplie d’instruments financiers et faire progresser la mise au point d’un système amélioré de mesure, de notification et de contrôle des financements climatiques.
    Keywords: climate change, UNFCCC, 2015 agreement, mobilisation, climate finance, accord de 2015, mobilisation, financement climatique, CCNUCC, changement climatique
    JEL: F53 O44 Q54 Q56 Q58
    Date: 2014–11
  39. By: Phil Johnstone (Room 325, Jubilee Building Science Policy Research Unit (SPRU) University of Sussex); Andy Stirling (Room 389, Jubilee BuildingScience Policy Research Unit (SPRU)University of Sussex)
    Abstract: This paper focuses on arguably the single most striking contrast in contemporary major energy politics in Europe (and even the developed world as a whole): the starkly differing civil nuclear policies of Germany and the UK. Germany is seeking entirely to phase out nuclear power by 2022. Yet the UK advocates a ‘nuclear renaissance’, promoting the most ambitious new nuclear construction programme in Western Europe. Here, this paper poses a simple yet quite fundamental question: what are the particular divergent conditions most strongly implicated in the contrasting developments in these two countries. With nuclear playing such an iconic role in historical discussions over technological continuity and transformation, answering this may assist in wider understandings of sociotechnical incumbency and discontinuity in the burgeoning field of ‘sustainability transitions’. To this end, an ‘abductive’ approach is taken: deploying nine potentially relevant criteria for understanding the different directions pursued in Germany and the UK. Together constituted by 30 parameters spanning literatures related to socio-technical regimes in general as well as nuclear technology in particular, the criteria are divided into those that are ‘internal’ and ‘external’ to the ‘focal regime configuration’ of nuclear power and associated ‘challenger technologies’ like renewables. It is ‘internal’ criteria that are emphasised in conventional sociotechnical regime theory, with ‘external’ criteria relatively less well explored. Asking under each criterion whether attempted discontinuation of nuclear power would be more likely in Germany or the UK, a clear picture emerges. ‘Internal’ criteria suggest attempted nuclear discontinuation should be more likely in the UK than in Germany – the reverse of what is occurring. ‘External’ criteria are more aligned with observed dynamics – especially those relating to military nuclear commitments and broader ‘qualities of democracy’. Despite many differences of framing concerning exactly what constitutes ‘democracy’, a rich political science literature on this point is unanimous in characterising Germany more positively than the UK. Although based only on a single case, a potentially important question is nonetheless raised as to whether sociotechnical regime theory might usefully give greater attention to the general importance of various aspects of democracy in constituting conditions for significant technological discontinuities and transformations. If so, the policy implications are significant. A number of important areas are identified for future research, including the roles of diverse understandings and specific aspects of democracy and the particular relevance of military nuclear commitments – whose under-discussion in civil nuclear policy literatures raises its own questions of democratic accountability.
    Keywords: democracy; transitions; nuclear power; UK; Germany; sustainability transitions
    Date: 2015–06
  40. By: Ivan Haščič; Jérôme Silva; Nick Johnstone
    Abstract: Patent data provide an increasingly used means to analyse innovation performance worldwide including in countries with incomplete data coverage, such as some developing countries. This paper discusses the specific issues associated with using patent data for measuring and analysing innovation in narrow technological fields, such as many environment-related technologies. To improve cross-country comparability of patent statistics, the paper advocates the use of indicators based on patent family size because they are more flexible and can be adapted to various applications. The paper also examines certain idiosyncratic characteristics of patent databases and proposes approaches to mitigate potential biases in empirical cross-country analyses. While doing so is particularly important for analyses of narrow technological fields such as many environment- and climate-related technologies, some of these issues are relevant for patent analysis more broadly.
    Keywords: innovation, indicators, environmental technologies
    JEL: O3 O31 O34 Q2 Q4 Q5
    Date: 2015–06–24
  41. By: Tim Laing; Luca Taschini; Charles Palmer; Johanna Wehkamp; Sabine Fuss; Wolf Heinrich Reuter
    Abstract: REDD (Reducing emissions from deforestation and forest degradation), broadened to REDD+, has recently emerged as a potentially important component of the global policy mix to mitigate climate change. In this context, it has been the hope of policy-makers that private sector stakeholders will turn into novel and active actors in many of the different components of REDD+ such as forest conservation and many have expected them to play a central role in providing funding for forest protection. However, even as REDD+ credits have become increasingly available on the voluntary market – private sector stakeholders seem to have lost interest REDD+ carbon credits. In order to better understand possible models of private sector engagement in REDD+ in the future, this report analyzes the motivation of a sample of private sector stakeholders to engage in REDD+, the perception of the potential of REDD+, the critical obstacles to making REDD+ functional and finally how private sector actors perceive themselves as part of future REDD+ scenarios. Based on a range of qualitative engagements with a wide grouping of private sector actors, we find that few seem to expect a regulatory market for REDD+ to emerge and that credits from the voluntary market have to be more tailor-made to their specific needs (ranging from demands based on Corporate Social Responsibility, to portfolio diversification and hedging strategies against stranded assets). The carbon value alone is currently not sufficient for many private actors. For REDD+ to become more attractive for most surveyed private sector stakeholders, the main problem is the uncertainty about how REDD+ will be designed in the future, along with building understanding of the values, barriers and risks that accompany REDD+.
    Date: 2015–05
  42. By: Loreto Bieritz (GWS - Institute of Economic Structures Research)
    Abstract: Die Energiewirtschaft, die zu einem Fünftel zu unserem BIP beiträgt, wird von den Klimaveränderungen auf unterschiedliche Weise beeinflusst. Dieses Discussion Paper konzentriert sich auf die Wirkungen, die von der globalen Erwärmung auf den Energiesektor in Deutschland und schließlich auf die Gesamtwirtschaft ausgehen. Dabei steht insbesondere die Drosselung der Kraftwerkskapazität infolge gesunkener Pegelstände und erhöhter Wassertemperaturen im Vordergrund. Eine Lokalisierung der entstehenden Umsatzausfälle bei den Stromabnehmerbranchen sowie die Ermittlung der Sekundäreffekte auf die Beschäftigung könnten mittels makroökonomischer Input-Output-Modelle erfolgen.
    Keywords: Klimawandel, Energiewirtschaft, Effekte, Wirkungskanäle
    JEL: Q54 Q41
    Date: 2015

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