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on Energy Economics |
| By: | Kenichi Mizobuchi (Department of Economics, Matsuyama University); Kenji Takeuchi (Graduate School of Economics, Kobe University) |
| Abstract: | By combining the propensity score matching with the difference-in-differences method, we examine the change in household electricity consumption that might be caused by the replacement of air-conditioners. The result suggests that the replacement to energy-efficient air-conditioners might decrease power consumption, especially in spring and summer. Furthermore, based on our estimation result, we calculate the size of the rebound effect monthly. The size of the rebound varies considerably with the seasons. We found positive rebound in summer (8% to 22% in August) and winter (134% to 192% in December and January). On the other hand, negative rebound, implying that the actual power-saving effect is greater than the expected saving effect, was found in mild-climate seasons (?3% to ?129%). The average size of the rebound is positive and ranges between 45% and 58%. |
| Keywords: | Fractal geometry, Hurst exponent, market efficiency, chaos |
| JEL: | C18 E39 G14 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1639&r=ene |
| By: | Sandrine Meyer; Kevin Maréchal |
| Abstract: | Les logements présents sur le marché locatif résidentiel sont globalement de moins bonne qualité que celle des logements occupés par leurs propriétaires. Une des principales raisons invoquées pour expliquer ce phénomène repose sur la notion de ‘split incentive’ (ou non-alignement des intérêts) entre le propriétaire et le locataire. Or, non seulement sur les plans stratégique (moindre dépendance à l’importation de sources d’énergie d’origine fossile) et économique (création d’emploi et d’activités au niveau local), mais surtout sur les plans environnemental (lutte contre le changement climatique) et sociétal (dont lutte contre la précarité énergétique), la rénovation énergétique de l’ensemble du parc de logements existants est reconnue comme une pierre angulaire des politiques à mettre en oeuvre pour atteindre les différents objectifs visés, notamment au niveau de l’Union Européenne. Si, pour ces diverses raisons, l’on cherche à promouvoir la rénovation énergétique des logements loués, tant en nombre qu’en niveau d’ambition, résoudre le ‘split incentive’ est essentiel. Ce document propose donc de faire le point à la fois sur cette thématique particulière du ‘split incentive’ dans le marché locatif résidentiel, et sur les différentes pistes évoquées pour tenter de le solutionner. Nous verrons par ailleurs que certaines réflexions ne s’arrêtent pas uniquement au secteur résidentiel locatif et pourraient également améliorer l’efficience énergétique de logements occupés par leurs propriétaire(s). |
| Date: | 2016–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:sol:ppaper:2013/239157&r=ene |
| By: | Georgios Petropoulos; Bert Willems |
| Abstract: | Coordinating the timing and location of new production facilities is one of the challenges of liberalized power sectors. It is complicated by the presence of transmission bottlenecks, oligopolistic competition, and the unknown prospects of low-carbon technologies. The authors build a model encompassing a late and early investment stage, a clean (green) and dirty (brown) technologies, and a single transmission bottleneck and compare dynamic efficiency of several market designs. Allocating network access on a short-term competitive basis distorts investment decisions as brown firms will pre-empt green competitors by investing early. Compensating early investors for future network congestion, as for instance in the E.U., only exacerbates this problem. Dynamic efficiency is restored with long-term transmission rights that can be traded on a secondary market (iusvendendi). As early investment lowers the resale value of the transmission rights, brown firms will invest optimally. The authors show that dynamic efficiency does not require the existence of physical rights for accessing the transmission line (ius utendi), but financial rights on receiving the scarcity revenues generated by the transmission line (ius fructendi) suffice. |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:bre:wpaper:17317&r=ene |
| By: | Håkon Endresen Normann (TIK Centre, University of Oslo) |
| Abstract: | This paper employs the concept of policy networks to study how interest groups and actors compete over the influence of energy and climate policy. It is argued that the creation of learning arenas is critical for the development of immature technologies. The paper then analyses two large efforts to secure state funding of large-scale demonstration projects for offshore wind and carbon capture and storage technology in Norway. The paper describes a range of similarities between these two technologies in terms of scale, maturity, and costs, and in the way they represent possible solutions to the problem of climate change. However, the paper also describes enormous differences in government support towards full-scale demonstration. These differences are then explained in the analysis, which shows how different network structures facilitate different levels of access to the policy making process. The paper provides insights into how the interests of political parties influence the potency for solutions tied to climate and energy problems. The paper therefore contributes to the discourse on the role of politics in sustainable transitions. |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20161026&r=ene |
| By: | Thomas Rawski |
| Abstract: | Chinese participation in Argentina’s Atucha 3 nuclear power project highlights substantial issues surrounding growing Chinese involvement in infrastructure and manufacturing projects that require high levels of capability in both advanced technologies and systems integration. Rapid Chinese progress in both areas points to the emergence of a two-tiered market for civilian nuclear power projects, with the Chinese alternative offering “good enough†levels of quality and safety, modest cost advantages compared with offerings from U.S., Japanese or Korean rivals, and, crucially, access to attractive financial terms offered by officially-backed Chinese lenders. |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:pit:wpaper:6005&r=ene |
| By: | Heim, Sven |
| Abstract: | Recent theories suggest that consumers' search efforts are a function of prices and prices changes, respectively. This may help to explain the 'rockets and feathers' phenomenon often assigned to collusion - prices rise like rockets when costs increase and fall like feathers when costs decrease. This paper empirically investigates the relation between cost pass-through and consumer search intensity for the German electricity retail market utilizing a unique panel dataset on retail electricity prices and consumer search intensity at online comparison sites for retail electricity, both at the zip code level. The main findings are 1) consumers search non-linear with regard to prices and price changes. They search more when prices are high and they decrease search efforts substantially when prices fall but only increase search efforts slightly when prices rise, 2) costs are passed-through asymmetrically with positive cost shocks causing higher pass-through rates than cost decreases and 3) search intensity significantly impacts price adjustments and controlling for search intensity eliminates large parts of the asymmetry. I compare this finding with a counterfactual - the entrants - where all consumers are fully informed. In this case consumer search does not affect cost pass-through. |
| Keywords: | Information,Cost Pass-through,Consumer Search,Rockets and Feathers |
| JEL: | D83 L11 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16070&r=ene |
| By: | Köhnke Mendonça, Christian (RWTH Aachen University); Oberst, Christian A. (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: | We discuss the expected future needs of the Brazilian electric grid operators for High Voltage Direct Current (HVDC) transmission lines against the background of a changing electricity sector in Brazil. On account of the spatial mismatch between the additional generation potential and the expected future electricity demand, a need for investments in long-distance transmission capacity is postulated. Due to the low losses incurred, HVDC technology is particularly suitable for this. For the analysis, we use different expansion scenarios for the year 2035 that are mainly based on hydropower or alternative renewable energy sources (primarily wind and solar power). Linear optimization is used to determine the optimal HVDC transmission lines to connect regions. The results show that large investments in HVDC transmission are needed, especially in the case of hydropower expansion, and that transmission capacity is a critical factor in the process of expanding the renewable energy generation capacity in Brazil. |
| Keywords: | HVDC transmission lines; Grid planning; Energy transition; Spatial mismatch |
| JEL: | H54 L94 Q40 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2015_014&r=ene |
| By: | Pawel Maryniak; Stefan Trueck; Rafal Weron |
| Abstract: | We investigate the impacts of the carbon tax (effective July 2012 to July 2014) on wholesale electricity prices in the Australian National Electricity Market (NEM). Analyzing spot and futures contracts in four major regional markets, we first compute ex-ante forward risk premiums in the pre-tax period, then use them to derive market-implied carbon premiums and pass-through rates in the carbon tax and post-tax periods. We find that carbon premiums and pass-through rates became increasingly higher, once the Clean Energy Bill had been introduced and subsequently passed in 2011. We also find strong evidence for a quick reaction of the extracted carbon premiums to changes in opinion polls for the Australian federal election in 2013 and the decision to repeal the tax. On the other hand, during periods where market participants could be relatively certain that the tax would be effective, we find expected carbon pass-through rates between 65% and 140%, which seem to be inversely related to emission intensities. |
| Keywords: | Carbon tax; Carbon pass-through rate; Forward risk premium; Electricity market; Spot and futures prices |
| JEL: | C51 C53 G13 Q41 Q58 |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:wuu:wpaper:hsc1610&r=ene |
| By: | Philipp Biermann (University of Oldenburg, Department of Economics) |
| Abstract: | This paper uses panel data on life satisfaction of about 40,000 individuals in Germany from 1994 to 2013 to analyze the relationship of subjective well-being and several measures of fuel poverty. We study fuel poverty and its effects on life satisfaction in terms of incidence, intensity and in comparison to income poverty. We find a negative and significant effect of fuel poverty and subjective well-being. The effects are comparable in magnitude to those of other important factors of life satisfaction. The impact we find is beyond the effect of mere income poverty. We classify measures of fuel poverty into several types and find that there is a difference with respect to the well-being effects depending on the type of measure. Our findings confirm the argument of the recent literature that fuel poverty is an important issue and should be on the agenda of policy makers. |
| Keywords: | fuel poverty; consumer welfare; subjective well-being; Germany |
| JEL: | I3 D12 C2 Q4 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:395&r=ene |
| By: | Bensch, Gunther; Peters, Jörg |
| Abstract: | The use of well-designed improved cookstoves (ICS) in regions devoid of modern energy yields high private and social returns, mostly related to considerable woodfuel savings. Take-up rates are nonetheless often very low when people have to pay costcovering prices. This paper presents main results of a study in rural Senegal where households were individually invited to purchase ICS in their villages. Households' ICS purchases and willingness to pay levels turned out to be unexpectedly high. We therefore explore potential factors behind this surprisingly high adoption, particularly those features of our approach that deviate from common real-world ICS markets. We observe that especially the way we designed our personalized door-to-door sales offer is an important determinant. Based on our findings, we derive insights for the design of future ICS dissemination programs. |
| Abstract: | Die Nutzung verbesserter Kochherde vermag sich in Regionen ohne Zugang zu moderner Energie sehr positiv auf das individuelle wie auch gesellschaftliche Leben auswirken, vor aufgrund direkter wie indirekter Effekte erheblicher Holzeinsparungen. Der Verbreitungsgrad solcher Herde ist jedoch oftmals sehr gering sobald kostendeckende Preise gezahlt werden müssen. Dieses Papier präsentiert zentrale Ergebnisse einer Studie im ländlichen Senegal, im Rahmen derer Preisgebote für zuvor präsentierte verbesserte Kochherde von Haushalten individuell eingeholt wurden. Die beobachtete Zahlungsbereitschaft und die resultierenden Herdverkaufszahl erwiesen sich als unerwartet hoch. Wir untersuchen daher potenzielle Faktoren, die diesem überraschend hohen Annahmeverhalten zugrunde liegen können. Wir betrachten insbesondere jene Merkmale unseres Verbreitungsansatzes, die von üblichen Märkten für Kochherde abweichen. Wir beobachten, dass vor allem bestimmte Details unseres individuellen Verkaufsangebots wichtige Bestimmungsgrößen darstellen. Basierend auf unseren Erkenntnissen leiten wir Empfehlungen für die Gestaltung zukünftiger Kochherd-Verbreitungsprogramme ab. |
| Keywords: | Energy access,technology adoption,willingness to pay,rural Africa |
| JEL: | D12 D83 O13 O33 Q41 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:650&r=ene |
| By: | Franziska Holz; Clemens Haftendorn; Roman Mendelevitch; Christian von Hirschhausen |
| Abstract: | Coal is at the core of the debate about climate change mitigation policies, yet the internationalmarket for it is not well represented in most energy models. This paper presents the COALMODframework which is a model of the international steam coal market that can be readily used toexplore implications of climate policies, but also to analyze market structure or to investigate issue ofsupply security. It features a detailed representation of both domestic and international steam coalsupply, based on endogenously calculated Cost, Insurance, Fright (CIF) costs, and prices that take intoaccount additional rents. It features endogenous investment into production, land transport, andexport capacity, as well as an endogenous mechanism assessing production cost increase due toresource depletion. We provide a detailed model and data description and illustrate the features ofthe model by analyzing to scenarios derived from the IEA World Energy Outlook (New Policies and450ppm scenario), highlighting the functionalities of the model. |
| Keywords: | Future coal markets, Partial equilibrium modeling, International trade |
| JEL: | C72 C69 L11 L71 Q41 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwddc:dd85&r=ene |
| By: | Ana Lucía ARTEAGA ORTEGA |
| Abstract: | El presente trabajo aborda una comparación, entre Colombia y Argentina, en lo concerniente a los incentivos para reducir las regalías del yacimiento no convencional Shale gas. La comparación se hace sobre la regulación de los hidrocarburos y en especial las regalías para el Shale Gas en Argentina, provincia de Neuquén. Este estudio es pertinente en tanto Argentina es el país con mayor potencial de reservas de shale gas en América Latina y expidió una ley de hidrocarburos, ley 27007 de 2014 en la que se otorga un marco legal novedoso para la exploración de hidrocarburos no convencionales y para recursos en off shore; efectuando modificaciones al tratamiento de las regalías en las provincias, promoviendo estímulos a la generación de gas, por lo cual, la hemos tomado como referente de comparación. Un objetivo adicional de este trabajo es buscar otros incentivos para promover la exploración de los proyectos gasíferos en Colombia. Nuestro país no está exento de una amenaza de desabastecimiento de gas. |
| Keywords: | Yacimiento no convencional, hidrocarburo no convencional, regulación de los hidrocarburos y las regalías, estímulos a la generación de gas |
| JEL: | Q3 Q32 Q42 |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:col:000118:015208&r=ene |
| By: | Rabah Arezki; Thiemo Fetzer; Frank Pisch |
| Abstract: | This paper provides novel empirical evidence of the effects of a plausibly exogenous change in relative factor prices on United States manufacturing production and trade. The shale gas revolution has led to (very) large and persistent differences in the price of natural gas between the United States and the rest of the world reflecting differences in endowment of difficult-to-trade natural gas. Guided by economic theory, empirical tests on output, factor reallocation and international trade are conducted. Results show that U.S. manufacturing exports have grown by about 10 percent on account of their energy intensity since the onset of the shale revolution. We also document that the U.S. shale revolution is operating both at the intensive and extensive margins. |
| Keywords: | manufacturing, exports, energy prices, shale gas |
| JEL: | Q33 O13 N52 R11 L71 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1454&r=ene |
| By: | Bagchi, Bhaskar; Chatterjee, Susmita |
| Abstract: | The present study makes an attempt to investigate the effect of sharp continuous falling crude oil prices on stock market indices and exchange rates of India and China. The period of the study spans from July 2009 to May 2016. Multivariate cointegration techniques along with vector error correction mechanism, impulse response functions are employed in this empirical research |
| Keywords: | crude oil prices; new oil price shock; stock indices exchange rates. |
| JEL: | F4 F47 |
| Date: | 2016–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:74836&r=ene |
| By: | Kleine-Möllhoff, Peter; Dürr, Claudio |
| Abstract: | Wie kann der erhöhte Anteil durch Photovoltaik und Windkraft fluktuierend erzeugter Energie im Stromnetz ausgeglichen werden? Biogas- und Biomethananlagen sind interessante technologische Lösungen zur Stabilisierung des Stromnetzes. Die Umsetzung der Biomasse zu Methan erfolgt aber aufgrund von Wasserstoffmangel im Biogasreaktor nicht vollständig. Daher werden derzeit verschiedene Ansätze verfolgt, die verwertbare Gasausbeute zu erhöhen. In der vorliegenden Arbeit wird untersucht, welche Möglichkeiten zur Erhöhung der Methanausbeute von Biogasanlagen bestehen und wie sich diese ökologisch und wirtschaftlich darstellen. Zunächst werden der aktuellen Forschungs- und Entwicklungsstand zur Erhöhung der Methanausbeute in Biogasanlagen dargestellt und die verschiedenen Prozesse der Wasserstoffherstellung und Methanisierung beschrieben. In einem Vergleich werden die vorteilhaftesten Verfahren dargestellt. Diese bilden die Grundlage für die ökologischen und ökonomischen Betrachtungen zu vier ausgewählten Szenarien. Für das wirtschaftlich vorteilhafteste Szenario wird das CO2-Minderungspotential auf den gesamtdeutschen Markt skaliert. Abschließend werden der weitere Forschungs- und Entwicklungsbedarf in dem Themengebiet ermittelt, sowie politische Rahmenbedingungen und deren Auswirkungen auf die Biogastechnologie kritisch beleuchtet. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esbwmm:201601&r=ene |
| By: | V. Kerry Smith; Min Qiang Zhao |
| Abstract: | This paper examines a new strategy for evaluating whether the size of a new environmental regulation requires that benefit cost analyses consider general equilibrium effects. Size in the context refers to both the magnitude and distribution of cost increases across sectors and the benefits attributed to the rules. Rogerson’s [2008] static, general equilibrium model describing how tax policy affects time allocations between market and non-market activities is extended to include air pollution as a non-separable element in the representative household’s preferences. The paper makes three contributions to the literature. First, the calibrated parameters of the model are used to evaluate how the introduction of air quality, as a non-separable, external influence on the household’s non-market activities, affects the conventional explanation for the labor market transition in developed economies. Second, all current CGE assessments of conventional environmental policies in the U.S. and Europe ignore the feedback effects of policies for emissions and behavior. This analysis demonstrates their importance by using an amended version of the Rogerson model to compare calibrations with and without these feedback effects. Finally, a calibrated model is used to gauge the plausibility of the benefit estimates from EPA’s partial equilibrium (PE) assessment of the recent Clean Power Plan. This analysis finds the upper limit of the PE estimates for the annual ancillary benefits of the plan (due to its effects on conventional air pollutants) is implausibly large. |
| JEL: | D58 D61 H41 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22769&r=ene |
| By: | Sunghoon Lim (Department of Economics, The Pennsylvania State University State College, United States); Beomsoo Kim (Department of Economics, Korea University, Seoul, Republic of Korea) |
| Abstract: | This study estimates the effect of positive income shocks on health conditions. We analyze the birth weight and mortalities of babies born in the US states of Kentucky, Ohio, and West Virginia during the early 1970s. Babies who were born in a coal-mining county benefited from the boom of the coal mining industry, whereas other babies did not. During the period, there was a sudden increase in the price of coal, resulting from an increase in the price of oil, which, in turn, resulted from an oil price embargo by the Organization of the Petroleum Exporting Countries. We use per capita personal income, which is the average income of people living in a county, as a measure for income. However, it is well known that there is an endogeneity issue when estimating the effect of income on health. To overcome the problem, we adopted the instrumental variable approach and use coal price as an instrument for income. We find that an exogenous $1,000 (in 1984 dollars) increase in income increases birth weight by 56 g. In addition, low birth weight would decrease by 0.9% point, which is 12% of the sample mean (7.6%). Our study avoids possible bias from compositional change by focusing on the period directly before and after the economic shock. |
| Keywords: | Health Outcome, Birth Weight, Low Birth Weight, Infant Mortality, Income Shock, Endogeneity, Two-stage Least Squares |
| JEL: | I10 I18 I12 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:iek:wpaper:1608&r=ene |
| By: | Stephan Heblich; Alex Trew; Yanos Zylberberg |
| Abstract: | Why are the East sides of former industrial cities like London or New York poorer and more deprived? We argue that this observation is the most visible consequence of the historically unequal distribution of air pollutants across neighborhoods. In this paper, we geolocate nearly 5,000 industrial chimneys in 70 English cities in 1880 and use an atmospheric dispersion model to recreate the spatial distribution of pollution. First, individual-level census data show that pollution induced neighborhood sorting during the course of the nineteenth century. Historical pollution patterns explain up to 15% of within-city deprivation in 1881. Second, these equilibria persist to this day even though the pollution that initially caused them has waned. A quantitative model shows the role of non-linearities and tipping-like dynamics in such persistence. |
| Keywords: | Neighborhood sorting, historical pollution, deprivation, persistence, environmental disamenity |
| JEL: | R23 Q53 N90 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0208&r=ene |
| By: | Anthony Heyes (Department of Economics, University of Ottawa, Ottawa, ON); Nicholas Rivers (Graduate School of Public and International Affairs and Institute of the Environment, University of Ottawa, Ottawa, ON); Brandon Schaufele (Business, Economics and Public Policy, Ivey Business School, University of Western Ontario, London, ON) |
| Abstract: | Applying methods of textual and stylometric analysis to all 119,225 speeches made in the Canadian House of Commons between 2006 and 2011, we establish that air pollution reduces the speech quality of Canadian Members of Parliament (MPs). Exposure to fine particulate matter concentrations exceeding 15µg=m3 causes a 3.1 percent reduction in the quality of MPs speech (equivalent to a 3.6 months of education). For more difficult communication tasks the decrement in quality is equivalent to the loss of 6.5 months of schooling. Our design accounts for the potential endogeneity of exposure and controls for many potential confounders including individual fixed effects. Politicians are professional communicators and as such the analysis provides further evidence of the detrimental impact of air pollution on workplace performance, with an effect size around half that established in recent research for workers engaged in physical work tasks. Insofar as the changed speech patterns reflect diminished mental acuity the results make plausible substantial effects of air pollution on productivity not just in communication-intensive but a wider set of creative and cognitively-intensive work settings. |
| Keywords: | Air Pollution, Analysis of Speech, Non-Health Impacts, Workplace Performance |
| JEL: | Q52 Q53 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ott:wpaper:1616e&r=ene |
| By: | Sakamoto, Tomoyuki; Managi, Shunsuke |
| Abstract: | This article investigates the relationship between the environment-related efficiency and export performance according to the recent international trade theory which has offered to a theoretical model to quantify the Ricardian comparative advantage. We find that the energy and environmental efficiency can be a source of the comparative advantage in industries. The largest magnitude and the smallest of the efficiency on exporting are estimated to be NOx and energy efficiency, respectively. The empirical results further show that the efficiency has a smaller impact on export performance in relatively less footloose industries, and the impact of the efficiency is found to depend on industrial characteristics. |
| Keywords: | Comparative advantage, trade and environment, energy efficiency, pollution emissions per production |
| JEL: | Q40 Q53 Q56 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:74850&r=ene |
| By: | van den Bijgaart, Inge (Tilburg University, School of Economics and Management) |
| Abstract: | The dissertation consists of five chapters in Environmental Economics and Policy. The first three chapters consider (optimal) policy in situations where multiple market failures interact, or there exist restrictions on the type or scope of policy instruments available to the policymaker. The first chapter assesses under what conditions, and what type of, unilateral policy can prevent rising global emission concentrations. The second chapter analyzes second-best optimal environmental policy responses to real and financial shocks when firms are subject to credit constraints. The third chapter explores optimal transitory tax policy when the adjustment to a new consumption bundle is slow due to habit formation and the lack of habit internalization. The last two chapters focus on the size of the environmental externality, and the evaluation of policy effectiveness respectively. The fourth chapter develops a closed-form formula to compute the social cost of carbon (SCC), which explains the parameter-driven SCC variation of a mainstream IAM without systematic bias, and allows for an analytic breakdown and quantification of how different sets of parameters contribute to the SCC distribution. The fifth and final chapter is an empirical assessment of the effect of car registration and road taxes on vehicles average CO2 emissions from new vehicles in the EU15 countries over the period 2001-2010. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:298bee2a-cb08-4173-9fe1-8e258c6cd5a1&r=ene |
| By: | Masaru Ichihashi (Graduate School for International Development and Cooperation, Hiroshima University); Shunsuke Yano (Faculty of Integrated Arts and Sciences, Hiroshima University) |
| Abstract: | This paper examines the impact of introducing an emissions trading scheme (ETS) in Japan using an input-output model. Using demand forecast data from the Ministry of the Environment (2012), we examined the impacts of two cases: one in which emissions were reduced without introducing a scheme (the business as usual (BAU) case) and one in which a scheme was introduced (ETS case). In both cases, the aggregate repercussion effects were negative, but the negative impact was significantly greater in the ETS case (1.3 trillion JPY, which is approximately 0.14% of GDP). The negative repercussion effects are consistent with the results from MOE (2012). However, our study showed positive repercussion effects on employment regardless of employment status. This occurs because the labor absorptive capacity is low in sectors such as steel, where demand will decline due to the introduction of a scheme, so there is a small impact on employment; in contrast, sectors that benefit from the adoption of the scheme have high labor absorptive capacities. Accordingly, the adoption of an ETS in Japan would be positive for jobs but would not have a significant impact in terms of stimulating output. |
| Keywords: | Emissions Trading Scheme; Japanese Economy Growth; Input-Output model; Repercussion Effects; |
| JEL: | Q51 Q56 R11 R15 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:hir:idecdp:6-4&r=ene |
| By: | Gerard van der Meijden (VU University Amsterdam, the Netherlands); Cees Withagen (VU University Amsterdam, the Netherlands) |
| Abstract: | The effects of climate policies are often studied under the assumption of perfectly competitive markets for fossil fuels. In this paper, we allow for monopolistic fossil fuel supply. We show that, if fossil and renewable energy sources are perfect substitutes, a phase will exist during which the monopolist chooses a limit pricing strategy. If limit pricing occurs from the beginning, a renewables subsidy increases initial extraction, whereas a carbon tax leaves initial extraction unaffected. However, if the initially fossil fuels are cheaper than renewables, a renewables subsidy and a carbon tax lower initial extraction, contrary to the case under perfect competition. Both policy instruments lower cumulative extraction. If fossil fuels and renewables are imperfect but good substitutes, the monopolist will exhibit `limit pricing resembling' behavior, by keeping the effective price of fossil close to that of renewables for considerable time. The empirical question whether energy demand is elastic or inelastic has less drastic implications for the fossil price and extraction paths than under perfect substitutability. |
| Keywords: | Limit pricing; non-renewable resource; monopoly; climate policies |
| JEL: | Q31 Q42 Q54 Q58 |
| Date: | 2016–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20160089&r=ene |
| By: | Germá-Bel (Departament of Economic Policy & GiM-IREA, University of Barcelona. Av. Diagonal 696; 08034 Barcelona, Spain.); Stephan Josep (Departament of Economic Policy & GiM-IREA, University of Barcelona. Av. Diagonal 696; 08034 Barcelona, Spain.) |
| Abstract: | The European Union launched a set of policies as part of its 2020 climate and energy package aimed at meeting its 20/20/20 headline targets for smart, sustainable and inclusive growth. This paper evaluates how successful new-to-the-market climate change mitigation technologies (CCMT) are in helping EU member states (MS) to reach these goals and, furthermore, whether there are differences between sectors subject to EU-wide polices. To do so, we seek to relate CCMT patent counts to two specific headline targets: (1) achieving 20% of gross final energy consumption from renewables, and (2) achieving a 20% increase in energy efficiency. Our results provide the first ex-post evaluation of the effectiveness of these technologies for combating climate change. Moreover, our sectoral impact assessment points to significant differences in the way in which these technologies contribute to policy goals across sectors. |
| Keywords: | Environmental Policy; Climate Change; Technological Change; Patent Count Data. JEL classification: O33; O38; Q55; Q58. |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201612&r=ene |
| By: | Bukvić, Rajko; Kartavykh, Marina; Zakharov, Vladimir |
| Abstract: | The article considers the problem of reduction of greenhouse gases emissions, one of the main anthropogenic causes of increasing carbon concentration in the atmosphere, and consequently the global climate change. In the second half of the XX century many schemes for involving market mechanism in solving these problems were proposed. These efforts increased in the last decade of XX century and finally the Kyoto Protocol supported many flexible mechanisms, as a solution for these problems. In spite of all these efforts, during the first period of its implementation (2008–2012) the emissions of carbon increased. This issue has been especially pronounced in Russia, one of the main global emitters. The paper explores the mechanisms and projects in Russia, and its importance for reducing the GHG emissions and fulfilling the commitments of Kyoto Protocol and other international documents. |
| Keywords: | greenhouse gases (GHG), the Kyoto Protocol, flexible mechanisms, Russian actions |
| JEL: | H23 K32 L51 Q53 Q56 Q57 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:74809&r=ene |
| By: | Zhu Liu |
| Abstract: | Climate change driven by anthropengic carbon emissions is one of the most serious challenges facing human development. China is currently the world?s largest developing country, primary energy consumer, and carbon emitter. The nation releases one quarter of the global total of carbon dioxide (9.2 Gt CO2 in 2013), 1.5 times that from the US. Nearly three-quarters (73%) of the growth in global carbon emission between 2010 and 2012 occurred in China. Without mitigation, China?s emissions could rise by more than 50% in the next 15 years. Given the magnitude and growth rate of China?s carbon emissions, the country has become a critical partner in developing policy approaches to reduce global CO2 emissions.China is a country with significant regional differences in terms of technology, energy mix, and economic development. 1 Understanding the characteristics and state of regional carbon emissions within China is critical for designing geographically appropriate mitigation policies, including the provincial cap and trade system that is projected to be lanuched in 2017. In this study, I summarize the key features and drivers of China?s regional carbon emissions and conclude with suggestions for a low carbon policy for China.The principal findings are:Provincial aggregated CO2 emissions increased from 3 billion tons in 2000 to 10 billion tons in 2016. During the period, Shandong province contributed most to national emissions, followed by Liaoning, Hebei, and Shanxi provinces. Most of the CO2 emissions were from raw coal, which is primarily burned in the manufacturing and the thermal power sectors.Significant differences exist among provinces in terms of CO2 emissions. Analyses of per capita emissions and emission intensity indicate that provinces located in the northwest and north had higher per capita. CO2 emissions and greater emission intensities than the central and southeast coastal regions. Developing areas have intensive resource use and their economic structure is dominated by heavy industries with higher sectoral emission intensity. These areas contribute to most of the growth in national emissions and are the main drivers of China?s carbon intensive economic structure.An analysis of the factors that affect China?s CO2 emissions shows that technology heterogeneity is directly connected to China?s carbon growth. The dissimilar rate of adoption of energy efficient technologies among regions is a major barrier to China?s CO2 mitigation, and thus needs more attention from researchers and policy makers. |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:qsh:wpaper:468061&r=ene |
| By: | Ramón E. López; Simón Accorsi; Gino Sturla |
| Abstract: | This study develops and applies a method to calculate sectorial carbon footprint based on the input-output matrix. This method captures in a better way the net emissions attributable to each sector considering sectoral interlinks. This method is applied for the first time to the Chilean economy. We compare the results using this method with those obtained using the conventional methodologies based only on the direct sectoral fuel uses. This comparison shows that the results are dramatically different. It shows that certain sectors which using the conventional approach appear to be quite mild in terms of emissions, are much dirtier (e.g., the mining industry) while other sectors traditionally considered high emitters revealed to be much less dirty (e.g., electricity and gas). These differences entail large implications for carbon reducing policies as the carbon tax burden would have to be quite different depending on the methodology used to estimate sectoral emission footprints. Based on this methodology we analyze the effectiveness of carbon taxes to reduce the CO2 emissions and compared with an alternative regulatory framework that induces a “cleaner” composition of the energy matrix. An international comparison puts Chile as a relatively clean economy but with a trend showing an increase in the emissions per unit of output, mainly due to the use of carbon intensive fuels. |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp431&r=ene |
| By: | Louison Cahen-Fourot (Centre d'Economie de l'Université de Paris Nord (CEPN)) |
| Abstract: | We investigate national greenhouse gases mitigation objectives, labeled as carbon voluntarism, in the context of contemporary globalized finance-led capitalism. Using principal components analysis and clustering, we delineate a typology of OECD and BRICS countries from the standpoint of the assumed underpinnings of carbon voluntarism: the productive structure of the economy, the relative position in global GHG chains, the levels of income and capitalist development, the political demand for the environment, the class structure of GHG emissions and financialization. The least carbon voluntary countries appear to be at the beginning of global GHG chains and to rely heavily on the primary sector. They have a weak political demand for the environment and a more unequal class structure of emissions. The most carbon voluntary countries have a higher political demand for the environment, a more equal class structure of emissions, weaker financialization, and greater reliance on the tertiary sector. These countries are also net importers of GHG emissions. |
| Keywords: | capitalism, carbon voluntarism, climate change, COP21, financialization, global GHG chains, greenhouse gases, political demand for the environment |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:upn:wpaper:2016-02&r=ene |
| By: | Franta, Benjamin |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:qsh:wpaper:466922&r=ene |