nep-ene New Economics Papers
on Energy Economics
Issue of 2015‒08‒19
thirty-six papers chosen by
Roger Fouquet
London School of Economics

  1. Assessing greenhouse gas emissions in Estonia's energy system By Halkos, George; Tzeremes, Panagiotis
  2. Modification of the LCOE model to estimate a cost of heat and power generation for Russia By Bratanova, Alexandra; Robinson, Jacqueline; Wagner, Liam
  3. Renewable Energy Incentives and CO2 Abatement in Italy By Claudio Marcantonini; Vanessa Valero
  4. Energy efficiency determinants: An empirical analysis of Spanish innovative firms By Costa, M. Teresa (Maria Teresa), 1951-; García, José, 1963-; Segarra Blasco, Agustí, 1958-
  5. Distributional impacts of energy cross-subsidization in transition economies : evidence from Belarus By Grainger,Corbett Alden; Zhang,Fan; Schreiber,Andrew William
  6. Regionale Verteilung umwelt- und energiepolitischer Fördermittel des Bundes im Zeitraum 1999 bis 2012 By Plankl, Reiner
  7. The Costs of Climate Change for the European Energy System, an Assessment with the POLES Model By Silvana Mima; Patrick Criqui
  8. US Climate Policy: A Critical Assessment of Intensity Standards By Christoph Böhringer; Xaquín Garcia-Muros; Mikel Gonzalez-Eguino; Luis Rey
  9. Heterogeneous policies, heterogenous technologies : the case of renewable energy By Francesco Nicolli; Francesco Vona
  10. EU-Russia trading relations: the challenges of a new gas architecture By Catherine Locatelli
  11. Perspective of CO2 capture & storage (CCS) development in Vietnam: Results from expert interviews By Hoang Anh Nguyen Trinh; Minh Ha-Duong
  12. Global Implications of Lower Oil Prices By Aasim M. Husain; Rabah Arezki; Peter Breuer; Vikram Haksar; Thomas Helbling; Paulo A. Medas; Martin Sommer
  13. Measuring Renewable Energy Externalities: Evidence from Subjective Well-Being Data By Charlotte von Möllendorff; Heinz Welsch
  14. Oil, Volatility and Institutions:Cross-Country Evidence from Major Oil Producers By Amany El-Anshasy, Kamiar Mohaddes, and Jeffrey B. Nugent
  15. Allowance Trading and Energy Consumption Under a Personal Carbon Trading Scheme: A Dynamic Programming Approach By Jin Fan; Yao Li; Yanrui Wu; Shanyong Wang; Dingtao Zhao
  16. An Analysis of Allowance Banking in the EU ETS By Denny Ellerman; Vanessa Valero; Aleksandar Zaklan
  18. Climate-informed decisions: the capital investment plan as a mechanism for lowering carbon emissions By Whittington,Jan; Lynch,Catherine
  19. Using Scientific Publications to Evaluate Government R&D Spending: The Case of Energy By David Popp
  20. Scope of Economic Incentives and Abatement Technologies to Regulate a Natural System's Resilience in a General Equilibrium Model By David Tobón Orozco; Carlos Andrés Vasco Correa; Carlos Andrés Molina Guerra
  21. Regional efforts to mitigate climate change in China: A multi-criteria assessment approach By Zhi-Fu Mi; Yi-Ming Wei; Chen-Qi He; Hua-Nan Li; Xiao-Chen Yuan; Hua Liao
  23. Would border carbon adjustments prevent carbon leakage and heavy industry competitiveness losses? Insights from a meta-analysis of recent economic studies By Frédéric Branger; Philippe Quirion
  24. Reconcile the fight against transboundary pollution and economic convergence into an union ? By Théophile Bassene; Albert Millogo
  25. Rethinking the role of scenarios: Participatory scripting of low-carbon scenarios for France By Sandrine Mathy
  26. Oil Price and Stock Returns of Consumers and Producers of Crude Oil By Dinh H B Phan; Susan S Sharma; Paresh K Narayan
  27. Efectos espaciales en la formación de precios en mercados minoristas de Gas Natural Vehicular By John J. García; Carlos Mauricio Montenegro; Hermilson Velásquez
  28. Research on comprehensive carrying capacity of Beijing-Tianjin-Hebei region based on state-space method By Baojun Tang; Yujie Hu; Huanan Li; Dongwei Yang; Jiangpeng Liu
  29. LA POLITIQUE CLIMATIQUE ENTRE CHOIX NATIONAUX ET SCENARIOS MONDIAUX Implications des positionnements cognitifs et éthiques By Olivier Godard
  30. Oil Rent and Income Inequality in Developing Economies: Are They Friends or Foes? By Douzounet MALLAYE; Gaëlle Tatiana TIMBA; Urbain Thierry YOGO
  31. Environmental quality, public debt and economic development By Mouez Fodha; Thomas Seegmuller
  32. Overview of bamboo biomass for energy production By An Ha Truong; Thi My Anh Le
  33. What Factors Drive Energy Consumption in Ghana? By Ackah, Ishmael; Appiah-Adu, Kwaku; Ahunu, Linda
  34. Spatial-Temporal Variations of Embodied Carbon Emission in Global Trade Flows: 41 Economies and 35 Sectors By Jing Tian; Hua Liao; Ce Wang
  35. Liquidity and resolution of uncertainty in the European carbon futures market By Iordanis Angelos Kalaitzoglou; Boulis Maher Ibrahim
  36. A Conditional Markov Regime Switching Model to Study Margins: Application to the French Fuel Retail Markets By Raphaël Homayoun Boroumand; Stéphane Goutte; Simon Porcher; Thomas Porcher

  1. By: Halkos, George; Tzeremes, Panagiotis
    Abstract: This paper investigates Estonia’s prospects in meeting the new European Union climate commitments to reduce greenhouse gas (GHG) emissions till 2030 by 40% and 2050 by 80-95% compared to 1990 emission levels. The contribution of this study is twofold. In a first stage, based on organizations reports and using the Long range Energy Alternatives Planning system (LEAP) it constructs seven long-term scenarios to examine Estonia's energy system till 2050. In a second stage, using the Data Envelopment Analysis (DEA) nonparametric approach it evaluates the efficiency of renewable energy commitments in reducing GHG emissions. The findings show that the main challenge for the Estonia policy makers will be the energy policies associated with the renewable energy usage. It appears that under the seven different energy policy scenarios the higher the participation of renewable energy the higher the reduction of greenhouse gas emissions.
    Keywords: LEAP software; Renewable energy sources; Scenarios analysis; Data Envelopment Analysis; Estonia.
    JEL: Q20 Q40 Q41 Q42 Q50 Q54 Q58
    Date: 2015–08
  2. By: Bratanova, Alexandra; Robinson, Jacqueline; Wagner, Liam
    Abstract: The Russian heat sector faces crucial problems including underinvestment, below cost pricing, generation capacity and infrastructure depletion. While the Russian electricity sector has gradually progressed through liberalization, the heat sector is still waiting for similar reforms to occur. The modernisation of the sector requires analysis of energy generation costs to suggest feasible technological solutions and secure an increase of investment in the industry. This study presents a modification of a levelised cost of energy (LCOE) model with cost separation coefficients based on Ginter triangles. The modified LCOE model is applied to a regional case study (Moscow, Russia) providing a comparison of generation technology according to cost estimates for electricity and heat under regionally specific economic and technological conditions. We consider five combined heat and power (CHP) generation technology types for two natural gas price scenarios. The modelling outcomes demonstrate cost competitiveness of gas based CHP technology and provide valuable information to assist decision making for the management of the energy sector in Russia.
    Keywords: cogeneration, levelised cost, heat generation, Ginter triangle, Russia, Moscow
    JEL: C52 Q41 Q47
    Date: 2015–08–01
  3. By: Claudio Marcantonini; Vanessa Valero
    Abstract: In order to combat global warming, Italy has committed to clear environmental goals by reducing its CO2 emissions. To this purpose, it has notably encouraged renewable energy development through a variety of support schemes, ranging from green certificates to feed-in and premium tariffs. As a result, during the last years, the production of electricity from renewable energy sources, especially from wind and solar energy, has experienced a considerable surge. In this paper we estimate the cost of reducing CO2 emissions in the power sector by deploying wind and solar energy in Italy from 2008 to 2011. The results show that, for the period analyzed, the average costs for wind are in the order of 150 €/tCO2, while for solar are much higher, above 1000 €/tCO2. This is because solar energy generators receive much higher remunerations per MWh of generated electricity than wind energy generators. These costs are about twice as high as in Germany. This is due to the difference between the incentive schemes and the power system in the two countries.
    Keywords: Abatement Cost, Renewable Energy, Wind Energy, Solar Energy, Italy
    Date: 2015–03
  4. By: Costa, M. Teresa (Maria Teresa), 1951-; García, José, 1963-; Segarra Blasco, Agustí, 1958-
    Abstract: This paper examines the extent to which innovative Spanish firms pursue improvements in energy efficiency (EE) as an objective of innovation. The increase in energy consumption and its impact on greenhouse gas emissions justifies the greater attention being paid to energy efficiency and especially to industrial EE. The ability of manufacturing companies to innovate and improve their EE has a substantial influence on attaining objectives regarding climate change mitigation. Despite the effort to design more efficient energy policies, the EE determinants in manufacturing firms have been little studied in the empirical literature. From an exhaustive sample of Spanish manufacturing firms and using a logit model, we examine the energy efficiency determinants for those firms that have innovated. To carry out the econometric analysis, we use panel data from the Community Innovation Survey for the period 2008â€2011. Our empirical results underline the role of size among the characteristics of firms that facilitate energy efficiency innovation. Regarding company behaviour, firms that consider the reduction of environmental impacts to be an important objective of innovation and that have introduced organisational innovations are more likely to innovate with the objective of increasing energy efficiency. Keywords: energy efficiency, corporate targets, innovation, Community Innovation Survey. JEL Classification: Q40, Q55, O31
    Keywords: Energia, Economia ambiental, Tecnologia -- Innovacions, Empreses -- Espanya -- Aspectes ambientals, 33 - Economia, 504 - Ciències del medi ambient,
    Date: 2015
  5. By: Grainger,Corbett Alden; Zhang,Fan; Schreiber,Andrew William
    Abstract: Subsidies and cross-subsidies in the energy sector are common throughout Eastern Europe and Central Asia. In Belarus, revenues from an industrial tariff on electricity are used to cross-subsidize heating for households. Input-output (IO) data and a household consumption survey are used to analyze the distributional impacts of this cross-subsidization. This paper illustrates cost shares and electricity-intensity of different sectors and consumption categories and uses the IO data to obtain first-order estimates of the distributional incidence of policy reform. The paper then analyzes distributional impacts of subsidy reform with a Computable General Equilibrium model. Although poorer households benefit from reduced heating costs, the increase in prices of other consumer goods due to higher electricity prices more than offsets the benefits they receive from the subsidies. The analysis finds that the current cross-subsidies are regressive, and policy reform would be highly progressive.
    Keywords: Transport Economics Policy&Planning,Energy Production and Transportation,Economic Theory&Research,Emerging Markets,Markets and Market Access
    Date: 2015–08–06
  6. By: Plankl, Reiner
    Abstract: In dieser Untersuchung wird die regionale Verteilung der Fördermittel des Bundes für Maßnahmen der Energieeinsparung und Verbesserung der Energieeffizienz in Deutschland im Durchschnitt für den Zeitraum 1999 bis 2012 dargestellt und es wird ein Vergleich mit der regionalen Verteilung der EEG-Vergütungen vorgenommen. Räumliche Betrachtungseinheiten sind die Bundesländer, Bundesländergruppen, Landkreise und siedlungsstrukturelle Kreistypen. Es werden sowohl die regionalen Unterschiede der absoluten Fördermittel wie auch Unterschiede in der Fördermittelintensität analysiert. Die Untersuchung kommt zu dem Ergebnis, dass für die EEG-Vergütungen zur Erzeugung erneuerbaren Stroms knapp das 6-fache an Fördergeldern ausgegeben wurde als für Maßnahmen, die der Energieeinsparung und Verbesserung der Energieeffizienz dienen. An der Stromerzeugung aus erneuerbaren Energien sind die ländlichen Regionen maßgeblich beteiligt und erhalten 68,5 % der EEG-Vergütungen. Auf die Einwohner umgerechnet erhalten unter den ländlichen Regionen die dünn besiedelten ländlichen Kreise mit rund 530 Euro je Einwohner die höchsten EEG-Vergütungszahlungen im Jahr 2011. Aus Fördertöpfen des Bundes für Energiespar- und Energieeffizienzprogramme sowie für investive Maßnahmen der Erzeugung erneuerbarer Energie erhalten die ländlichen Regionen einen Fördermittelanteil von rund 38 %. Die jahresdurchschnittlichen Fördermittel liegen für die dünn besiedelten ländlichen Kreise bei rund 21 Euro je Einwohner. Ländliche Kreise mit Verdichtungsansätzen kommen ebenfalls auf knapp 21 Euro, schneiden jedoch mit rund 345 Euro je Einwohner bei den EEG-Vergütungen schlechter ab als die dünn besiedelten ländlichen Kreise. Die Einwohner der nicht ländlichen Kreise erreichen im Durchschnitt bei den investiven Maßnahmen der Erzeugung erneuerbarer Energien sowie den Energiespar- und Energieeffizienzprogrammen eine Förderintensität von rund 15 und bei den EEG-Vergütungen eine Förderintensität von 92 Euro je Einwohner. Betrachtet man die absoluten Fördermittel schneiden die südlichen alten Bundesländern, insbesondere Bayern und Baden-Württemberg, bei den EEG-Vergütungszahlungen wie bei den Fördermitteln für Energiespar- und Energieeffizienzprogramme besser ab als der Durchschnitt der nördlichen Bundesländer. Auch im Vergleich zu den neuen Bundesländern stehen sie besser da. Bezieht man die Fördermittel auf die Einwohner holen die nördlichen alten Bundesländer sowie die neuen Bundesländer im Ranking auf.
    Abstract: The study analyses the regional distribution effects of subsidies from the German government for measures to save energy and improve energy efficiency in Germany on average for the years 1999 to 2012. In addition it draws a comparison with the regional distribution of the Renewable Energy Law (EEG) compensation. The spatial units considered are the German federal states, groups of federal German states, counties and district types of counties. Both the regional differences of the absolute subsidies as well as differences in the intensity of subsidies are analysed. The study concludes that slightly more than six times as much funding is provided for the EEG compensation to produce renewable electricity than for measures which serve to save energy and improve energy efficiency. Of the rural regions a significant number is involved in the electricity production and receive 68,5% of the EEG compensation. Based on number of inhabitants, the sparsely populated rural counties received with roughly 530 Euros per inhabitant the highest EEG compensation payments in 2011. Rural regions receive about 38 % of subsidies for energy saving and energy efficiency programs as well as for investment measures from the promotional pools of the German government. The annual average of subsidies for the sparsely populated districts amounts to roughly 21 Euros per inhabitant. In rural districts in agglomerations the annual average subsidies per inhabitant are also amount to roughly 21 Euros. But with roughly 345 Euros concerning the EEG compensation their performance is below that the sparsely population rural areas. With an investment measure for the creation of renewable energy inhabitants of non-rural counties attain, in both the energy saving and energy efficiency programs, a promotional intensity of about 15 Euros, and in the EEG compensation a promotional intensity of about 92 Euros per inhabitant. If one considers the absolute subsidies, the southern old federal states, particularly Bavaria and Baden Wurttemberg, fare better with an EEG compensation payments as well as for the promotional measures for energy savings and efficiency programs than do the average northern federal states. They are also better situated in comparison to the new federal states. However, if the promotional funds are related to the number of inhabitants, both the northern old federal states and the new federal states improve in the ranking.
    Keywords: Energiewende,Erneuerbare Energien,Förderung erneuerbarer Energien,Förderung der Energieeffizienz,Regionale Verteilung von Fördermitteln der Energiewende,Energy transformation,Renewable energies,Promotion of renewable energies,Promotion of measures for energy efficiency,Regional distribution of subsidies for the energy transformation
    JEL: D39 H23 L53 L97 O13 O18 O25 Q42 Q43 R12
    Date: 2015
  7. By: Silvana Mima (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - CNRS - Grenoble 2 UPMF - Université Pierre Mendès France - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - Grenoble 1 UJF - Université Joseph Fourier); Patrick Criqui (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - CNRS - Grenoble 2 UPMF - Université Pierre Mendès France - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - Grenoble 1 UJF - Université Joseph Fourier)
    Abstract: The paper presents a model-based approach describing the impacts of climate change on the European energy system. Existing analyses only estimate a limited range of climate impacts over a limited geographical area. Using the POLES model and the results from several climate models, the present paper quantifies the main impacts of climate change on the European energy sector, country by country, thus achieving progress in this direction. As far as energy demand is concerned, our main finding is that higher temperatures will mean that air-conditioning will consume more energy, reaching about 53 Mtoe by 2100 in a scenario with no strong emissions constraints (A1B). On the other hand less energy will be consumed for heating buildings, falling by about 65 Mtoe per year. This represents a net decrease in energy consumption of about 12 Mtoe by 2100. On the supply side, more constrained and expensive operating conditions for electric power plants will result in lower electricity generation by thermal, nuclear and hydro-power plants, with a maximum decrease of about 200 TWh in 2070 in the A1B scenario and 150 TWh in 2060 and 2080 for a low emissions scenario (E1). These effects vary a great deal across Europe and remain very dependent on the uncertainties affecting the results of the various climate models. This overall uncertainty may inhibit effective decisions. However the study offers insights not otherwise available without the full coverage of the energy system provided by POLES and climate features provided by climate models. The study identifies the main impacts of climate change in a strategic sector and provides an "order of magnitude" or "central trend" for these impacts, which might be useful in an adaptive policy of act, learn and then act again.
    Date: 2015
  8. By: Christoph Böhringer (University of Oldenburg, Department of Economics); Xaquín Garcia-Muros (Basque Centre for Climate Change, Bilbao, Spain); Mikel Gonzalez-Eguino (Basque Centre for Climate Change, Bilbao, Spain); Luis Rey (Basque Country (UPV-EHU), Bilbao, Spain)
    Abstract: Intensity standards have gained substantial momentum as a regulatory instrument in US climate policy. Based on numerical simulations with a large-scale computable general equilibrium model we show that intensity standards may rather increase than decrease counterproductive carbon leakage. Moreover, standards can lead to considerable welfare losses compared to emission pricing via carbon taxation or an emissions trading system. The tradability of standards across industries is a mechanism that can reduce these negative effects.
    Keywords: Unilateral climate policy; carbon leakage, intensity sstandard, computable general equilibrium
    JEL: D21 H23 D58
    Date: 2015–07
  9. By: Francesco Nicolli (Facoltà di Economia (Faculty of Economics) - Università degli Studi di Ferrara); Francesco Vona (Facoltà di Economia (Faculty of Economics) - Università degli Studi di Ferrara)
    Abstract: This paper investigates empirically the effect of market regulation and renewable energy policies on innovation activity in different renewable energy technologies. For the EU countries and the years 1980 to 2007, we built a unique dataset containing information on patent production in eight different technologies, proxies of market regulation and technology-specific renewable energy policies. Our main findings show that lowering entry barriers is a more significant driver of renewable energy innovation than privatisation and unbundling, but its effect varies across technologies, being stronger in technologies characterised by the potential entry of small, independent power producers. Additionally, the inducement effect of renewable energy policies is heterogeneous and more pronounced for wind, which is the only technology that is mature and has high technological potential. Finally, the ratification of the Kyoto protocol – determining a more stable and less uncertain policy framework - amplifies the inducement effect of both energy policy and market liberalisation.
    Date: 2014–07
  10. By: Catherine Locatelli (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - CNRS - Grenoble 2 UPMF - Université Pierre Mendès France - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - Grenoble 1 UJF - Université Joseph Fourier)
    Abstract: Gas security is a key factor in the European Union's energy policy. Contractual relations based on long-term contracts during the 1970s and 1980s led to relative stability in energy trade between the EU and its gas suppliers. But since the mid-1990s, the process of opening up the EU's gas industries to competition and the desire to create a single gas market has led to an in-depth reorganization of the sector. The EU now intends to redefine the way in which it manages its relations with its main suppliers, such as Russia, by attempting to impose a model based on competition, unbundling of network industries and privatization. Russia does not intend to implement this "EU model" in its gas sector, despite the big changes taking place in its domestic market. An approach based on the preferential use of state instruments conflicts with the multilateralism and principles of competition upheld by the EU. The EU's normative power is thus in contradiction with the institutional environment of the Russian energy sector. It is therefore unlikely that energy relations between the EU and Russia will be structured solely on standards stemming from international rules and institutions.
    Date: 2015–04
  11. By: Hoang Anh Nguyen Trinh (CleanED - Clean Energy and Sustainable Development Lab - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM) - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM), Department of Renewable Energy - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM) - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM), Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM) - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM), CIRED - Centre International de Recherche sur l'Environnement et le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - École des Ponts ParisTech (ENPC) - CNRS); Minh Ha-Duong (CleanED - Clean Energy and Sustainable Development Lab - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM) - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM), Department of Renewable Energy - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM) - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM), Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM) - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM), CIRED - Centre International de Recherche sur l'Environnement et le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - École des Ponts ParisTech (ENPC) - CNRS)
    Abstract: This paper summarizes expert opinions regarding crucial factors that may influence Vietnam’s future use of carbon capture and storage (CCS) based on face-to-face interviews in December 2013 with 16 CCS-related experts from the Vietnamese government, research institutes, universities and the energy industrial sector. This study finds that financial incentives and climate policy are the most important factors for the development of CCS technologies in Vietnam in the next two decades. Financial incentives involve direct subsidies from the government, such as tax exemptions for land use and the importation of CCS-related equipment. In addition, all the experts agree that international financial support is important to initiate a large deployment of CCS technologies in Vietnam by implementing demonstrative/pilot projects to prove CCS’s working efficiency.
    Date: 2015
  12. By: Aasim M. Husain; Rabah Arezki; Peter Breuer; Vikram Haksar; Thomas Helbling; Paulo A. Medas; Martin Sommer
    Abstract: The sharp drop in oil prices is one of the most important global economic developments over the past year. The SDN finds that (i) supply factors have played a somewhat larger role than demand factors in driving the oil price drop, (ii) a substantial part of the price decline is expected to persist into the medium term, although there is large uncertainty, (iii) lower oil prices will support global growth, (iv) the sharp oil price drop could still trigger financial strains, and (v) policy responses should depend on the terms-of-trade impact, fiscal and external vulnerabilities, and domestic cyclical position.
    Date: 2015–07–14
  13. By: Charlotte von Möllendorff; Heinz Welsch
    Abstract: Electricity from renewable sources avoids disadvantages of conventional power generation but often meets with local resistance due to visual, acoustic, and odor nuisance. We use representative panel data on the subjective well-being of 46,678 individuals in Germany, 1994-2012, for identifying and valuing the local externalities from solar, wind and biomass plants in respondents’ postcode area and adjacent postcode areas. We find significant well-being externalities of all three technologies that differ with regard to their temporal and spatial characteristics. The monetary equivalent of 1 MW capacity expansion is estimated to be in the range of 0.3-0.7 percent of per capita income.
    Keywords: renewable energy, local externality, subjective well-being, life satisfaction, non-market valuation
    JEL: Q42 D62 I31 Q51
    Date: 2015
  14. By: Amany El-Anshasy, Kamiar Mohaddes, and Jeffrey B. Nugent
    Abstract: This paper examines the long-run effects of oil revenue and its volatility on economic growth as well as the role of institutions in this relationship. We collect annual and monthly data on a sample of 17 major oil producers over the period 1961. 2013, and use the standard panel autoregressive distributed lag (ARDL) approach as well as its cross-sectionally augmented version (CS-ARDL) for estimation. Therefore, in contrast to the earlier literature on the resource curse, we take into account all three key features of the panel: dynamics, heterogeneity and cross-sectional dependence. Our results suggest that (i) there is a significant negative effect of oil revenue volatility on output growth, (ii) higher growth rate of oil revenue significantly raises economic growth, and (iii) better fiscal policy (institutions) can offset some of the negative effects of oil revenue volatility. We therefore argue that volatility in oil revenues combined with poor governmental responses to this volatility drives the resource curse paradox, not the abundance of oil revenues as such.
    Keywords: Economic growth, natural resource curse, institutions, oil price volatility, oil income, macroeconomic policy
    JEL: C23 E02 F43 O13 Q32
    Date: 2015–07–06
  15. By: Jin Fan (School of Management, University of Science and Technology of China, P.R. China); Yao Li (School of Management, University of Science and Technology of China, P.R. China); Yanrui Wu (Business School, University of Western Australia); Shanyong Wang (School of Management, University of Science and Technology of China, P.R. China); Dingtao Zhao (School of Management, University of Science and Technology of China, P.R. China)
    Abstract: In response to the challenge of climate change, personal carbon trading was put forward as a policy instrument to promote low carbon behavior in the household sector. To evaluate the effectiveness of this scheme, it is important to gain insight into the allowance trading and energy consumption behavior in a long emission commitment period. This paper proposes a dynamic programming model to investigate allowance trading and energy consumption. A main feature of the model is its consideration of allowance banking and borrowing activities. Ten simulated scenarios with different allowance prices, price volatility and carbon emission rates are discussed. The findings show that consumers would trade more actively when allowance price is volatile. It is also found that energy consumption and allowance trading will decrease when the carbon emission rate increases. Overall the analysis in this paper implies that personal carbon trading scheme would be an effective policy measure to change consumers’ behavior. Therefore it would be valuable for decision-makers to consider the introduction and implementation of this scheme.
    Date: 2015
  16. By: Denny Ellerman; Vanessa Valero; Aleksandar Zaklan
    Abstract: The existence of some 2 billion unused EU Allowances (EUAs) at the end of Phase II of the EU's Emissions Trading System (EU ETS) has sparked considerable debate about structural shortcomings of the EU ETS. At the same time, there has been a surprising lack of interest in one possible explanation of this accumulation of EUAs: the theory of intertemporal permit trading, i.e. allowance banking. In this paper we adapt basic banking theory to the case of a smoothly declining cap such as that in the EU ETS. We show that it is rational for agents to decrease emissions beyond the constraint imposed by the cap initially, accumulating an allowance bank and then drawing it down in the interest of minimizing abatement cost over time. Having laid out the theory, we carry out a set of simulations for a reasonable range of key parameters, calibrated to the EU ETS, to illustrate the e_ects of intertemporal optimization of abatement decisions on optimal time paths of emissions and allowance prices. We also explore the e_ect of an unexpected change in counterfactual emissions. We conclude that bank accumulation as the result of intertemporal abatement cost optimization should be considered at least a partial explanation when evaluating the current discrepancy between the cap and observed emissions in the EU ETS.
    Keywords: Cap and Trade System, EU ETS, Intertemporal Trading.
    JEL: D92 F18 Q54
    Date: 2015–04
  17. By: Anna Creti (UP9 - Université Paris 9, Dauphine - Université Paris IX - Paris Dauphine, Department of Economics, Ecole Polytechnique - CNRS - Polytechnique - X); Alena Kotelnikova (Department of Economics, Ecole Polytechnique - CNRS - Polytechnique - X); Guy Meunier (INRA-AliSS - UR 1303, Department of Economics, Ecole Polytechnique - CNRS - Polytechnique - X); Jean-Pierre Ponssard (Department of Economics, Ecole Polytechnique - CNRS - Polytechnique - X, CNRS - Centre National de la Recherche Scientifique)
    Abstract: The transition of a sector from a pollutant state to a clean one is studied. A green technology, subject to learning-by-doing, progressively replaces an old one. The notion of abatement cost in this dynamic context is fully characterized. The theoretical, dynamic optimization, perspective is linked to simple implementation rules. The practical "deployment" perspective allows to study sub-optimal trajectories. Moreover, the analysis of the launching date provides a denition of a dynamic abatement cost easy to use for evaluation of real-world policy options. The case of Fuel Cell Electric Vehicles offers an illustration of the proposed methodology.
    Date: 2015–06–01
  18. By: Whittington,Jan; Lynch,Catherine
    Abstract: Global trajectories for reducing carbon emissions depend on the local adoption of alternatives to conventional energy sources, technologies, and urban development. Yet, decisions on which type of capital investments to make, made by local governments as part of the normal budget cycle, typically do not incorporate climate considerations. Furthermore, current academic and professional literature specific to climate change draws attention to decision-making tools that would require access to technical expertise, data, and financial support that may not be practical for cities in low- and middle-income countries. Arguably, the methodologies most able to effect this transformation will be those that are convenient and affordable to administer, and that offer straight-forward low carbon alternatives to traditional forms of infrastructure investment. Current methodologies for capital investment planning that do not take climate change into consideration can result in prioritization of investments that diverge from a low carbon path and a potential missed opportunity to reap financial benefits from efficiency gains. This paper concludes that relatively minor alterations to common procedures can reveal the trade-offs and local benefits of low carbon alternatives in the capital investment planning process. This paper was written as an input to the preparation of the Climate-Informed Capital Investment Planning Guidebook, a how-to guide for local government staff, which will be published in 2015.
    Date: 2015–07–29
  19. By: David Popp
    Abstract: The mix of public and private research funding investments in alternative energy presents a challenge for isolating the effect of government R&D funding. Factors such as energy prices and environmental policy influence both private and public R&D decisions. Moreover, because government R&D is further upstream from the final commercialized product, it may take several years for its effect on technology to be realized. Combining data on scientific publications for alternative energy technologies with data on government R&D support for these technologies, we address these challenges. First, we ask how long it takes for energy R&D to provide successful research outcomes. We both provide information on the lags between research funding and new publication and link these articles to citations in U.S. energy patents. One million dollars in additional government R&D funding leads to 1-2 additional publications, but with lags as long as ten years between initial funding and publication. Second, we ask whether adjustment costs associated with large increases in research funding result in diminishing returns to government R&D. There is no evidence of diminishing returns on the level of publication output, but some evidence that additional funding leads to lower quality publications, using citations as a measure of publication quality.
    JEL: O21 O38 Q42 Q48 Q55
    Date: 2015–07
  20. By: David Tobón Orozco (Universidad de Antioquia); Carlos Andrés Vasco Correa (Universidad de Antioquia); Carlos Andrés Molina Guerra
    Abstract: This paper discusses a general equilibrium model consisting of a productive sector generating externalities on another sector having clean production, and on consumers, affecting the property of resilience of a natural system that feeds the economic system. The scope of efficiency of economic incentives is analyzed simultaneously with production activities in the polluting sector and the use of a pollution abatement technology. Our model predicts a boomerang effect: the polluting sector could find itself in a worse situation in the equilibrium with externalities; this sector initiated the problem, but at the end it is highly affected. In any case, the use of economic incentives helps keep pollution levels to maintain more valuable equilibria of nature.
    Keywords: Isagen, Colombia, Public utility, privatization
    JEL: D50 H23 Q56
    Date: 2015
  21. By: Zhi-Fu Mi; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology); Chen-Qi He; Hua-Nan Li; Xiao-Chen Yuan; Hua Liao
    Abstract: The task of mitigating climate change is usually allocated through administrative regions. In order to put pressure on regions that perform poorly in mitigating climate change and highlight regions with best-practice climate policies, this study explored a method to assess regional efforts on climate change mitigation at the sub-national level. A climate change mitigation index (CCMI) was developed with 15 objective indicators, which were divided into four categories, namely, emissions, efficiency, non-fossil energy, and climate policy. The indicators¡¯ current level and recent development were measured for the first three categories. The index was applied to assess China¡¯s provincial performance in climate protection based on the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. Empirical results show that the middle Yangtze River area and southern coastal area perform better than other areas in mitigating climate change. The average performance of the northwest area in China is the worst. In addition, climate change mitigation performance has a negative linear correlation with energy self-sufficiency ratio but does not have a significant linear correlation with social development level. Therefore, regional resource endowments should be paid much more attention in terms of mitigating climate change, because regions with good resource endowments in China tend to perform poorly.
    Keywords: mitigation efforts, climate policy, carbon efficiency, energy efficiency, non-fossil energy, TOPSIS
    JEL: Q54 Q40
    Date: 2014–09–15
  22. By: Alexis Louaas (Department of Economics, Ecole Polytechnique - CNRS - Polytechnique - X); Pierre Picard (Department of Economics, Ecole Polytechnique - CNRS - Polytechnique - X)
    Abstract: We analyze the optimal insurance coverage for high severity-low probability accidents, both from theoretical and applied standpoints. Such accidents qualify as catastrophic when their risk premium is a non-negligible proportion of the victims’ wealth, although the probability of occurrence is very small. We show that this may be the case when the individual’s absolute risk aversion is very large in the accident case. We characterize the optimal insurance contract firstly for an individual, and secondly for a firm that may be at the origin of an accident that affects the whole population. The optimal indemnity schedule converges to a limit when the probability of the accident tends to zero. In the case of corporate civil liability, this limit schedule is a straight deductible contract that corresponds to an indemnification of victims ranked in order of priority according to the severity of their losses. We also show that the size of the deductible depends on the individuals’ risk aversion and also on the cost of contingent risk capital that is required to sustain the indemnity payment, should an accident occur. The empirical part of the paper is an application of these general principles to the case of nuclear accidents. Large scale nuclear accidents are typical examples of high severity-low probability risks. We calibrate a model on French data in order to estimate the optimal liability ceiling of an electricity producer in the nuclear energy sector. We use data drawn from the cat-bond markets to estimate the cost of contingent capital for low probability events, and we show that the minimal corporate liability adopted in 2004 through the revision of the Paris Convention is probably lower than the level that would correspond to an optimal risk coverage of the population.
    Date: 2014–12–22
  23. By: Frédéric Branger (CIRED - Centre International de Recherche sur l'Environnement et le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - École des Ponts ParisTech (ENPC) - CNRS, AgroParisTech); Philippe Quirion (CNRS, CIRED - Centre International de Recherche sur l'Environnement et le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - École des Ponts ParisTech (ENPC) - CNRS)
    Abstract: The efficiency of unilateral climate policies may be hampered by carbon leakage and competitiveness losses. A widely discussed policy option to reduce leakage and protect competitiveness of heavy industries is to impose border carbon adjustments (BCAs). The estimation of carbon leakage as well as the assessment of different policy options led to a substantial body of literature in energy-economic modeling. In order to give a quantitative overview on the most recent research of the topic, we conduct a meta-analysis on 25 studies, altogether providing 310 estimates of carbon leakage ratio according to different assumptions and models. The typical range of carbon leakage estimates are from 5% to 25% (mean 14%) without policy and from −5% to 15% (mean 6%) with BCAs. A meta-regression analysis is performed to further investigate the impact of different assumptions on the leakage estimates. The decrease of the leakage ratio with the size of the coalition is confirmed and quantified. Among the BCA options, the extension of BCAs to all sectors and the inclusion of export rebates are the most efficient features in the meta-regression model to reduce the leakage ratio. All other parameters being constant, BCAs reduce leakage ratio by 6 percentage points.
    Date: 2014
  24. By: Théophile Bassene (Université de Strasbourg); Albert Millogo (UTLN - Université de Toulon)
    Abstract: In this paper, we focus on the effectiveness of environmental policy in economic union in the presence of transboundary pollution. We seek to determine the environmental policy instrument capable of reconciling effective fight against transboundary pollution and economic convergence. With an overlapping generations modelization, we show that when transboundary pollution emanates from the least developed country of the Union, applying the polluter pays principle leads to a sub-optimal equilibrium from an of view overall. Only a technological cooperation effectively fights against transboundary pollution without compromising the economic convergence process.
    Abstract: Dans cet article, nous nous intéressons à l'efficacité de la politique environnementale dans une union économique en présence d'une pollution transfrontalière. Nous cherchons à déterminer l'instrument de politique environnementale capable de concilier lutte efficace contre la pollution transfrontalière et convergence économique. A l'aide d'une modélisation à générations imbriquées, nous montrons que lorsque la pollution transfrontalière émane du pays le moins avancé de l'union, appliquer le principe du pollueur-payeur conduit à un équilibre sous-optimal d'un point de vue global. Seule une coopération technologique permettrait de lutter efficacement contre la pollution transfrontalière sans compromettre le processus de rattrapage économique.
    Date: 2015–04–24
  25. By: Sandrine Mathy (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - CNRS - Grenoble 2 UPMF - Université Pierre Mendès France - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - Grenoble 1 UJF - Université Joseph Fourier, CIRED - Centre International de Recherche sur l'Environnement et le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - École des Ponts ParisTech (ENPC) - CNRS)
    Abstract: This article considers the usefulness of low-carbon scenarios in public decision-making. They may be useful as a product-oriented trajectory. The scenarios on the agenda of the 2013 Energy Debate in France belong to this category. But a scenario may also be process-oriented, in the sense that its scripting process helps build consensus and a minimum level of agreement. We have scripted scenarios using a codevelopment method, involving about 40 stakeholders from the private and public sectors, and from the state: NGOs, consumer groups, trade unions, banks and local authorities. They selected policies they considered acceptable for achieving 75% greenhouse gases emission reductions in 2050. These policies were then integrated in the Imaclim-R-France technico-economic simulation model, as part of a high or moderate acceptability scenario. In the first case emissions were cut by between 58% and 72% by 2050; in the second case by between 68% and 81%, depending on the energy price assumptions. All these measures benefited jobs and economic growth, swiftly and durably cutting household spending on energy services. This offers a solid basis for gaining acceptability for low carbon trajectories; the process constitutes also a framework for consolidating collective learning centering on the acceptability of climate policies.
    Date: 2015–02
  26. By: Dinh H B Phan (Deakin University); Susan S Sharma (Deakin University); Paresh K Narayan (Deakin University)
    Abstract: In this paper we investigate how differently stock returns of oil producers and oil consumers are affected from oil price changes. We find that stock returns of oil producers are affected positively by oil price changes regardless of whether oil price is increasing or decreasing. For oil consumers, oil price changes do not affect all consumer sub-sectors and where it does, this effect is heterogeneous. We find that oil price returns have an asymmetric effect on stock returns for most sub-sectors. We devise simple trading strategies and find that while both consumers and producers of oil can make statistically significant profits, investors in oil producer sectors make relatively more profits than investors in oil consumer sectors.
    Keywords: Oil Price Returns; Stock Returns; Producer; Consumer; Profits.
  27. By: John J. García; Carlos Mauricio Montenegro; Hermilson Velásquez
    Abstract: The gas distribution system for natural gas vehicles (NGV) in the Service Stations (EDS) in Colombia is highly concentrated, which gives the retail distributors market power. The pricing mechanism appears to approximate a Bertrand type of oligopolistic model, with a dominant firm setting the prices. The geographical location of the EDS generates strategies that influence price formation. In this research, a spatial contiguity matrix is designed, which includes socio-economic and distance characteristics, related to the EDS geographic location. We use a spatial panel model of Durbin type, which includes fundamental variables to explain the GNV price formation.
    Keywords: Gas Natural Vehicular; Mercado Minorista; Panel Espacial; Formación de Precios.
    JEL: D43 C23
    Date: 2015–07–15
  28. By: Baojun Tang; Yujie Hu; Huanan Li; Dongwei Yang; Jiangpeng Liu
    Abstract: Based on state-space method and component analysis, this paper builds a comprehensive evaluation system of carrying capacity for the Beijing-Tianjin-Hebei region from four aspects, namely economy, environment, ecology and energy. The results show that the comprehensive carrying capacity in this region gradually rises in recent years and the economic carrying capacity plays an important role in this situation. Ecological and environmental carrying capacity are gradually enhanced but still affected by water shortages. The energy carrying capacity of this region is low, which is the major factor restricting its sustainable development. Based on the empirical results, following policy suggestions should be adopted: Firstly, local government should accelerate technological progress, promoting the optimization and upgrading of industrial structure; Secondly, the contradiction between supply and demand of water resource should be solved gradually; thirdly, government should develop recycling economy, realizing the coordinated development of economy and environment; last but not least, saving energy and improving energy efficiency.
    Keywords: comprehensive carrying capacity, state-space method, component analysis, Beijing-Tianjin-Hebei region
    JEL: Q58 Q40
    Date: 2014–10–03
  29. By: Olivier Godard (Department of Economics, Ecole Polytechnique - CNRS - Polytechnique - X)
    Abstract: Cet ouvrage analyse la manière dont des stratégies nationales de lutte contre l’effet de serre peuvent se déterminer en fonction des positionnements cognitifs et éthiques des États nationaux au regard de scénarios climatiques mondiaux. Sont ainsi distinguées les approches cognitives de type « prédictif », « thomiste » ou « symétrique », croisées avec des positionnements éthiques désignés comme « égocentrique », « altruiste-dynastique, « solidariste intragénérationnel », « altruiste cosmopolitique » et « universaliste kanto-millien ». Pour évaluer ces configurations on suppose que les choix faits par un État s’appuient sur une évaluation des dommages climatiques associés à différents scénarios de concentration de gaz à effet de serre. Les indicateurs centraux utilisés sont la valeur actuelle du dommage entraîné par l’émission d’une tonne de CO2 et le niveau du taux d’actualisation. Dans ce cadre classique où se met à l’épreuve le concept de dommages pour appréhender des phénomènes de long terme, l’évaluation détermine quelles configurations cognitivo-éthiques justifient la cible du « Facteur 4 » en 2050 : il en existe un nombre réduit, relevant soit d’un « altruisme cosmopolitique (international et intergénérationnel) », soit d’un « universalisme kanto-millien », si cette cible est choisie en fonction du seul problème climatique. En postulant qu’une valeur de 100 € / tCO2 en 2030 est un point de passage obligé vers le « Facteur 4 »en 2050, de tels choix éthiques impliquent la reconnaissance d’une valeur actuelle 2010 d’un niveau élevé pour le dommage entraîné par l’émission d’une tonne de CO2e (au moins 53 € / tCO2, soit un ordre de grandeur supérieur au prix 2013 du carbone sur le marché ETS) et l’adoption d’un taux d’actualisation caractéristique qui, dépendant des configurations étudiées, ne saurait être plus élevé que 3,25 %. De telles valeurs doivent être considérées comme des conditions logiques à respecter pour tous les choix dérivés et en particulier lorsqu’il s’agit de déterminer la meilleure trajectoire intertemporelle de réduction des émissions. Autre résultat : en prenant en compte l’incidence de la date d’émission sur le dommage climatique, il s’avère qu’« altruisme cosmopolitique » et « universalisme kanto-millien » conduisent à des recommandations strictement opposées quant au profil de la meilleure trajectoire temporelle de « consommation » d’un budget d’émissions fixé pour la période 2011-2050 : le premier demande de concentrer les émissions en début de période et le second de débuter par un « choc de réduction ». Au total aucune des configurations justifiant la cible du « Facteur 4 » ne s’accorde avec l’application simple d’une règle de Hotelling qui ferait progresser la valeur de la tonne de CO2 au taux d’actualisation standard pour l’investissement public.
    Date: 2014–12–01
  30. By: Douzounet MALLAYE (University of N’Djamena - University of N’Djamena - University of N’Djamena); Gaëlle Tatiana TIMBA (Université Yaoundé 2); Urbain Thierry YOGO (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: Using the most recent available data on a sample of 40 developing countries, this paper addresses the effects of oil rent on inequality. Mobilizing a dynamic panel data specification over the period 1996–2008, the econometric results yield two important findings. First, there is a non-linear (U-shaped) relationship between oil rent and inequality. Specifically, oil rent lowers inequality in the short run. This effect then diminishes over time as the oil revenues increase. Our complementary finding is that the fall in income inequality as a result of the increase in the oil rent is fully absorbed by the increase in corruption. Further, the paper examines the channels of causality underlying this relationship. The graphical analysis shows the consistency of the data with the hypothesis according to which corruption, military expenditure, and inflation mediate the effect of oil rent on income inequality.
    Date: 2015–01–07
  31. By: Mouez Fodha (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Thomas Seegmuller (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université Paul Cézanne - Aix-Marseille 3 - Université de la Méditerranée - Aix-Marseille 2 - EHESS - École des hautes études en sciences sociales - CNRS - AMU - Aix-Marseille Université)
    Abstract: This article analyzes the consequences on capital accumulation and environmental quality of environmental policies financed by public debt. A public sector of pollution abatement is financed by a tax and/or public debt. We show that if the initial capital stock is high enough, the economy monotonically converges to a long-run steady state. On the contrary, when the initial capital stock is low, the economy is relegated to an environmental-poverty trap. We also explore the implications of public policies on the trap and on the long-run stable steady state. In particular, we find that government should decrease debt and increase pollution abatement to promote capital accumulation and environmental quality at the stable long-run steady state.
    Date: 2014
  32. By: An Ha Truong (USTH - UNIVERSITY OF SCIENCES AND TECHNOLOGIES OF HANOI, CleanED - Clean Energy and Sustainable Development Lab - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM) - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM), Department of Renewable Energy - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM) - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM)); Thi My Anh Le (USTH - UNIVERSITY OF SCIENCES AND TECHNOLOGIES OF HANOI, CleanED - Clean Energy and Sustainable Development Lab - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM) - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM), Department of Renewable Energy - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM) - Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM))
    Abstract: Bamboo biomass energy has great potential to be an alternative for fossil fuel. Bamboo biomass can be processed in various ways (thermal or biochemical conversion) to produce different energy products (charcoal, syngas and biofuels), which can be substitutions for existing fossil fuel products. Bamboo biomass has both advantages and drawbacks in comparison to other energy sources. It has better fuel characteristics than most biomass feed stocks and suitable for both thermal and biochemical pathways. The drawbacks of bamboo biomass includes establishment, logistic and land occupation. It can also impose negative impacts to environment if not well-managed, therefore, selection of bamboo as an energy dedicated feed stocks need to be evaluate carefully to avoid or minimized any possible risks. Bamboo biomass alone cannot fulfill all the demand for energy. It needs to combine with other sources to best exploit their potential and provide sustainable energy supply.
    Date: 2014–07
  33. By: Ackah, Ishmael; Appiah-Adu, Kwaku; Ahunu, Linda
    Abstract: Whilst most countries have drafted energy policies, the desired goals of these policies are not met. One reason may be the failure to distinguish between renewable and non-energy. The purpose of this study is to estimate the impact of economic and non-economic factors on renewable and non-renewable energy demand. The Structural Time Series Model is applied to renewable studies for the first time. The findings indicate that productivity growth and income are the major drivers of renewable and non-renewable energy consumption in Ghana. It is recommended that there should be more investments in productivity to help control non-renewable energy demand.
    Keywords: Renewable energy, non-renewable energy, productivity, energy consumption
    JEL: Q2 Q21 Q30 Q4 Q42 Q43
    Date: 2015–02–02
  34. By: Jing Tian; Hua Liao; Ce Wang
    Abstract: The spatial-temporal variations of embodied carbon emissions in international trade at global scope are still unclear. This paper studies the variations of outflows and inflows of embodied carbon emissions at 35-disaggregated sectors level of 41 countries and regions, and an integrated world input-output model is employed. It also examines what would happen if there were not international trade flows in China, USA and Finland, the representatives of three different levels of the global balance of embodied carbon. We find that: (1) Embodied carbon in global trade increases at about 3% per year since 1995 World Trade Organization founded, and East Asia tends to burden more from the net increase of the balance of embodied carbon. (2) China¡¯s export has the largest and increasing outflow of carbon burden, USA's import the largest and increasing inflow of carbon burden, and Finland¡¯s export and import have the decreasing carbon burden. (3) The global trade structure tends to be not so much carbon-intensive. BRIIAT (Brazil, Russia, India, Indonesia, Australia and Turkey) has the largest embodied carbon intensity in export (about 7.35 kg/$) while NAFTA (the United States, Canada and Mexico) the largest embodied carbon intensity in import (about 10.32 kg/$). (4) There existed some inclination of embodied carbon flows including neighbors-centered outflows and country-centered inflows.
    Keywords: Embodied carbon flow, International trade, Spatial-temporal variations, Input-output analysis
    JEL: Q54 Q40
    Date: 2014–09–16
  35. By: Iordanis Angelos Kalaitzoglou (Audencia Recherche - Audencia); Boulis Maher Ibrahim (Heriot-Watt University - HERIOT-WATT UNIVERSITY)
    Abstract: We investigate whether liquidity introduces or helps resolve uncertainty in Phase I and the first year of Phase II of the European carbon futures market. We propose a distinction between ‘absolute’ or overall liquidity and that which is ‘relative’ to a benchmark. For this purpose, we suggest volume-weighted duration as a natural measure of trading intensity as a proxy for liquidity, and we model it as a rescaled temporal point process. The new model is called Autoregressive Conditional Weighted Duration (ACWD) and is shown to outperform its discrete modelling counterparts. Liquidity is found to play a dual role, with higher relative liquidity introducing uncertainty and higher absolute liquidity accelerating uncertainty resolution, thus, enhancing market efficiency.
    Date: 2015–01
  36. By: Raphaël Homayoun Boroumand (City University London - City University London, ESG Research Lab - ESG Management School); Stéphane Goutte (Banque-Finance - LED - Laboratoire d'Economie Dionysien - Université Paris VIII - Vincennes Saint-Denis, ESG Research Lab - ESG Management School); Simon Porcher (LSE - Department Mathematics [London] - LSE - London School of Economics); Thomas Porcher (Centre d'etudes et de recherches comparatistes - CERC - Centre d'Études et de Recherches Comparatistes - Université Paris III - Sorbonne nouvelle, ESG Research Lab - ESG Management School)
    Abstract: This paper uses a regime-switching model that is built on mean-reverting and local volatility processes combined with two Markov regime-switching processes to understand the market structure of the French fuel retail market over the period 1990-2013. The volatil-ity structure of these models depends on a first exogenous Markov chain, whereas the drift structure depends on a conditional Markov chain with respect to the first one. Our model allows us to identify mean reverting and switches in the volatility regimes of the margins. In the standard model of cartel coordination, volatility can increase competition. We find that cartelization is even stronger in phases of high volatility. Our best explanation is that consumers consider volatility in prices to be a change in market structure and are there-fore less likely to search for lower-priced retailers, thus increasing the market power of the oligopoly. Our findings provide a better understanding of the behavior of oligopolies.
    Date: 2014–11–19

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